0:'volume iparts 1 to 51 federal acquisition regulation issued fiscal year 2019 by the: generalservicesadministration departmentofdefense national aeronautics andspaceadministration title48federal', 1:'acquisition regulations system chapter1 federal acquisition regulation volume i foreword the far is the primary regulation for use by all', 2:'executive agencies in their acquisitionofsupplies andserviceswithappropriatedfunds. it became effective on april 1, 1984, and is issued within applicable laws under', 3:'the joint authorities of the administrator of general services, the secretary of defense, and the administrator for the national aeronautics', 4:'and space administration, under the broad policy guidelines of the administrator, office of federal procurement policy, office of management and', 5:'budget. the far precludes agency acquisition regulations that unnecessarily repeat, paraphrase,orotherwiserestatethefar,limitsagencyacquisitionregulationsto thosenecessarytoimplementfarpoliciesandprocedureswithinanagency,and provides for coordination, simplicity, and uniformity in the', 6:'federal acquisition process. it also provides for agency and public participation in developing the far and agency acquisition regulation. the', 7:'federal acquisition regulation far includes all federal acquisition circularsthrough202501effectivenovember12,2024.beginninginfiscalyear 2019, designation of federal acquisition circulars was changed to reflect the', 8:'fiscal year in the first four digits and the sequence of the issued circular in the last two digits. list', 9:'of sections affected fac202501 november 12, 2024 section description of change case number 4.000 revise section 4.000. far case 2024002', 10:'13.201 m amend section 13.201 by adding paragraph m. far case 2024002 39.101 i amend section 39.101 by adding paragraph', 11:'i. far case 2024002 subpart 40.2 add subpart 40.2. far case 2024002 52.2047, clause date/heading and b 1 amend section', 12:'52.2047 by revising the date of the provision and paragraph b1. far case 2023018 52.2125, clause date/heading , b 63,', 13:'e1xxvi, and alternate ii e 1iiy amend section 52.2125 by— a. revising the date of the clause; b. redesignating paragraphs', 14:'b63 and 64 as paragraphs b64 and 65 and adding a new paragraph b 63; c. redesignating paragraph e1xxvi as', 15:'paragraph e1xxvii and adding a new paragraph e1xxvi; and d. in alternate ii; i. revising the date of the alternate;', 16:'and ii. redesignating paragraph e1iiy as paragraph e1iiz and adding a new paragraph e1ii y. far case 2024002 52.2134, clause', 17:'date/heading , a2 vii and b1xxii amend section 52.2134 by— a. revising the date of the clause and paragraph a2', 18:'vii; and a. revising the date of the clause and paragraph a2 vii; and b. redesignating paragraph b1xxii as paragraph', 19:'b1xxiii and adding a new paragraph b1xxii. far case 2024002 52.2401 add section 52.2401. far case 2024002 52.2446, clause date/heading', 20:'and c 1xxiii amend section 52.2446 by— a. revising the date of the clause; and b. redesignating paragraph c1xxiii as', 21:'paragraph c1xxiv and adding a new paragraph c1xxiii. far case 2024002 2 federal acquisition regulation subchapter a general federalacquisitionregulation general', 22:'structure and subparts subchapter a general part 1 federal acquisition regulations system 1.1 purpose, authority, issuance 1.2 administration 1.3 agency', 23:'acquisition regulations 1.4 deviationsfromthefar 1.5 agency and public participation 1.6 career development, contracting authority, and responsibilities 1.7 determinations and findings', 24:'part 2 definitions of words and terms 2.1 definitions 2.2 definitions clause part 3 improper business practices and personal conflicts', 25:'of interest 3.1 safeguards 3.2 contractor gratuities to government personnel 3.3 reportsofsuspectedantitrustviolations 3.4 contingent fees 3.5 other improper business practices', 26:'3.6 contractswithgovernmentemployeesororganizationsownedorcontrolledbythem 3.7 voiding and rescinding contracts 3.8 limitationsonthepaymentoffundstoinfluencefederaltransactions 3.9 whistleblower protections for contractor employees 3.10 contractor code of business', 27:'ethics and conduct 3.11 preventing personal conflicts of interest for contractor employees performing acquisition functions part 4 administrative and information', 28:'matters 4.1 contract execution 4.2 contract distribution 4.3 [reserved] 4.4 safeguardingclassifiedinformationwithinindustry 4.5 electronic commerce in contracting 4.6 contract reporting 4.7', 29:'contractor records retention 4.8 government contract files 4.9 taxpayeridentificationnumberinformation 4.10 uniform use of line items 4.11 system for award management', 30:'4.12 representations and certifications 4.13 personal identity verification i structure federal acquisition regulation 4.14 reportingexecutivecompensationandfirsttiersubcontractawards 4.15 [reserved] 4.16 unique procurement', 31:'instrument identifiers 4.17 service contracts inventory 4.18 commercial and government entity code 4.19 basic safeguarding of covered contractor information systems', 32:'4.20 prohibition on contracting for hardware, software, and services developed or provided by kaspersky lab 4.21 prohibitiononcontractingforcertaintelecommunicationsandvideosurveillanceservicesorequipment 4.22 prohibition on', 33:'a bytedance covered application. 4.23 federal acquisition security council. subchapter b competition and acquisition planning part 5 publicizing contract actions', 34:'5.1 dissemination of information 5.2 synopses of proposed contract actions 5.3 synopses of contract awards 5.4 release of information 5.5', 35:'paid advertisements 5.6 publicizing multiagency use contracts 5.7 publicizing requirements under the american recovery and reinvestment act of 2009 part', 36:'6 competition requirements 6.1 full and open competition 6.2 full and open competition after exclusion of sources 6.3 other than', 37:'full and open competition 6.4 sealed bidding and competitive proposals 6.5 advocates for competition part 7 acquisition planning 7.1 acquisition', 38:'plans 7.2 planning for the purchase of supplies in economic quantities 7.3 contractor versus government performance 7.4 equipment acquisition 7.5', 39:'inherently governmental functions part 8 required sources of supplies and services 8.1 excess personal property 8.2 [reserved] 8.3 [reserved] 8.4', 40:'federal supply schedules 8.5 [reserved] 8.6 acquisition from federal prison industries, inc. 8.7 acquisition from nonprofit agencies employing people who', 41:'are blind or severely disabled 8.8 acquisition of printing and related supplies 8.9 [reserved] 8.10 [reserved] 8.11 leasing of motor', 42:'vehicles ii federal acquisition regulation structure part 9 contractor qualifications 9.1 responsible prospective contractors 9.2 qualifications requirements 9.3 firstarticletestingandapproval 9.4', 43:'debarment, suspension, and ineligibility 9.5 organizational and consultant conflicts of interest 9.6 contractor team arrangements 9.7 defense production pools and', 44:'research and development pools part 10 market research part 11 describing agency needs 11.1 selecting and developing requirements documents 11.2', 45:'using and maintaining requirements documents 11.3 acceptable material 11.4 delivery or performance schedules 11.5 liquidated damages 11.6 priorities and allocations', 46:'11.7 variation in quantity 11.8 testing part 12 acquisition of commercial products and commercial services 12.1 acquisition of commercial products', 47:'and commercial services 12.2 special requirements for the acquisition of commercial products and commercial services 12.3 solicitation provisions and contract', 48:'clauses for the acquisition of commercial products and commercial services 12.4 uniquerequirementsregardingtermsandconditionsforcommercialproductsandcommercialservices 12.5 applicability of certain laws to the acquisition', 49:'of commercial products, commercial services and commercially available offtheshelf items 12.6 streamlined procedures for evaluation and solicitation for commercial products', 50:'and commercial services subchapter c contracting methods and contract types part 13 simplified acquisition procedures 13.1 procedures 13.2 actions at', 51:'or below the micropurchase threshold 13.3 simplified acquisition methods 13.4 fast payment procedure 13.5 simplified procedures for certain commercial products', 52:'and commercial services part 14 sealed bidding 14.1 use of sealed bidding 14.2 solicitation of bids 14.3 submission of bids', 53:'14.4 openingofbidsandawardofcontract 14.5 twostepsealedbidding iii structure federal acquisition regulation part 15 contracting by negotiation 15.1 source selection processes and techniques', 54:'15.2 solicitation and receipt of proposals and information 15.3 source selection 15.4 contract pricing 15.5 preaward, award, and postaward notifications,', 55:'protests, and mistakes 15.6 unsolicited proposals part 16 types of contracts 16.1 selectingcontracttypes 16.2 fixedprice contracts 16.3 costreimbursement contracts 16.4', 56:'incentive contracts 16.5 indefinitedelivery contracts 16.6 timeandmaterials,laborhour,andlettercontracts 16.7 agreements part 17 special contracting methods 17.1 multiyear contracting 17.2 options 17.3', 57:'[reserved] 17.4 leader company contracting 17.5 interagency acquisitions 17.6 management and operating contracts 17.7 interagency acquisitions: acquisitions by nondefense agencies', 58:'on behalf of the department of defense 17.8 reverse auctions part 18 emergency acquisitions 18.1 availableacquisitionflexibilities 18.2 emergencyacquisitionflexibilities subchapter d', 59:'socioeconomic programs part 19 small business programs 19.1 size standards 19.2 policies 19.3 determination of small business size and status', 60:'for small business programs 19.4 cooperation with the small business administration 19.5 smallbusinesstotalsetasides,partialsetasides,andreserves 19.6 certificates of competency and determinations of', 61:'responsibility 19.7 the small business subcontracting program 19.8 contracting with the small business administration the 8a program 19.9 [reserved] 19.10', 62:'[reserved] 19.11 [reserved] 19.12 [reserved] 19.13 historically underutilized business zone hubzone program iv federal acquisition regulation structure 19.14 servicedisabledveteranownedsmallbusinessprogram 19.15', 63:'womenowned small business program. part 20 reserved part 21 reserved part 22 application of labor laws to government acquisitions 22.1', 64:'basic labor policies 22.2 convict labor 22.3 contractworkhoursandsafetystandardsact 22.4 labor standards for contracts involving construction 22.5 use of project labor', 65:'agreements for federal construction projects 22.6 contracts for materials, supplies, articles, and equipment 22.7 [reserved] 22.8 equal employment opportunity 22.9', 66:'nondiscrimination because of age 22.10 service contract labor standards 22.11 professional employee compensation 22.12 [reserved] 22.13 equal opportunity for veterans', 67:'22.14 employment of workers with disabilities 22.15 prohibition of acquisition of products produced by forced or indentured child labor 22.16', 68:'notification of employee rights under the national labor relations act 22.17 combating trafficking in persons 22.18 employment eligibility verification 22.19', 69:'increasing the minimum wage for contractors 22.20 [reserved] 22.21 establishing paid sick leave for federal contractors part 23 environment, sustainable', 70:'acquisition, and material safety 23.1 sustainable products and services 23.2 energysavingsperformancecontracts 23.3 hazardous material identification, material safety data, and notice', 71:'of radioactive materials 23.4 pollution prevention, environmental management systems, and waste reduction 23.5 greenhouse gas emissions 23.6 reserved 23.7 reserved', 72:'23.8 reserved 23.9 reserved 23.10 reserved part 24 protection of privacy and freedom of information 24.1 protection of individual privacy', 73:'24.2 freedom of information act 24.3 privacy training part 25 foreign acquisition 25.1 buy americansupplies v structure federal acquisition regulation', 74:'25.2 buy americanconstruction materials 25.3 contracts performed outside the united states 25.4 trade agreements 25.5 evaluatingforeignofferssupplycontracts 25.6 american recovery and', 75:'reinvestment actbuy american statuteconstruction materials 25.7 prohibited sources 25.8 other international agreements and coordination 25.9 customs and duties 25.10 additional', 76:'foreign acquisition regulations 25.11 solicitation provisions and contract clauses part 26 other socioeconomic programs 26.1 indian incentive program 26.2 majordisasteroremergencyassistanceactivities', 77:'26.3 historically black colleges and universities and minority institutions 26.4 food donations to nonprofit organizations 26.5 drugfree workplace 26.6 encouragingcontractorpoliciestobantextmessagingwhiledriving', 78:'subchapter e general contracting requirements part 27 patents, data, and copyrights 27.1 general 27.2 patents and copyrights 27.3 patent rights', 79:'under government contracts 27.4 rights in data and copyrights 27.5 foreignlicenseandtechnicalassistanceagreements part 28 bonds and insurance 28.1 bonds and other', 80:'financial protections 28.2 sureties and other security for bonds 28.3 insurance part 29 taxes 29.1 general 29.2 federalexcisetaxes 29.3 stateandlocaltaxes', 81:'29.4 contract clauses part 30 cost accounting standards administration 30.1 general 30.2 cas program requirements 30.3 cas rules and regulations', 82:'[reserved] 30.4 cost accounting standards [reserved] 30.5 cost accounting standards for educational institutions [reserved] 30.6 cas administration vi federal acquisition', 83:'regulation structure part 31 contract cost principles and procedures 31.1 applicability 31.2 contracts with commercial organizations 31.3 contracts with educational', 84:'institutions 31.4 [reserved] 31.5 [reserved] 31.6 contracts with state, local, and federally recognized indian tribal governments 31.7 contracts with nonprofit', 85:'organizations part 32 contract financing 32.1 financing for other than a commercial purchase 32.2 commercial product and commercial service purchase', 86:'financing 32.3 loan guarantees for defense production 32.4 advance payments for other than commercial acquisitions 32.5 progress payments based on', 87:'costs 32.6 contract debts 32.7 contract funding 32.8 assignment of claims 32.9 prompt payment 32.10 performancebased payments 32.11 electronic funds', 88:'transfer part 33 protests, disputes, and appeals 33.1 protests 33.2 disputes and appeals subchapter f special categories of contracting part', 89:'34 major system acquisition 34.1 testing,qualificationanduseofindustrialresourcesdevelopedundertitleiii,defenseproductionact 34.2 earnedvaluemanagementsystem part 35 research and development contracting part 36 construction and architectengineer contracts', 90:'36.1 general 36.2 special aspects of contracting for construction 36.3 twophase designbuild selection procedures 36.4 [reserved] 36.5 contract clauses 36.6', 91:'architectengineer services 36.7 standard and optional forms for contracting for construction, architectengineer services, and dismantling, demolition, or removal of improvements', 92:'part 37 service contracting 37.1 service contractsgeneral vii structure federal acquisition regulation 37.2 advisory and assistance services 37.3 dismantling, demolition,', 93:'or removal of improvements 37.4 nonpersonal health care services 37.5 management oversight of service contracts 37.6 performancebased acquisition part 38', 94:'federal supply schedule contracting 38.1 federal supply schedule program 38.2 establishing and administering federal supply schedules part 39 acquisition of', 95:'information technology 39.1 general 39.2 information and communication technology part 40 information security and supply chain security 40.1 [reserved] 40.2', 96:'marker[casenumber]farcase2024002securityprohibitionsandexclusionsmarker[why]add subpart 40.2. 40.3 [reserved] part 41 acquisition of utility services 41.1 general 41.2 acquiring utility services 41.3 requests for', 97:'assistance 41.4 administration 41.5 solicitation provision and contract clauses 41.6 forms 41.7 formats subchapter g contract management part 42 contract', 98:'administration and audit services 42.1 contract audit services 42.2 contract administration services 42.3 contractadministrationofficefunctions 42.4 correspondence and visits 42.5 postaward', 99:'orientation 42.6 corporate administrative contracting officer 42.7 indirect cost rates 42.8 disallowance of costs 42.9 bankruptcy 42.10 [reserved] 42.11 production', 100:'surveillance and reporting 42.12 novation and changeofname agreements 42.13 suspension of work, stopwork orders, and government delay of work 42.14', 101:'[reserved] 42.15 contractor performance information viii federal acquisition regulation structure 42.16 small business contract administration 42.17 forward pricing rate agreements', 102:'part 43 contract modifications 43.1 general 43.2 change orders 43.3 forms part 44 subcontracting policies and procedures 44.1 general 44.2', 103:'consent to subcontracts 44.3 contractors’ purchasing systems reviews 44.4 subcontracts for commercial products and commercial services part 45 government property', 104:'45.1 general 45.2 solicitation and evaluation procedures 45.3 authorizing the use and rental of government property 45.4 titletogovernmentproperty 45.5 support', 105:'government property administration 45.6 reporting, reutilization, and disposal part 46 quality assurance 46.1 general 46.2 contract quality requirements 46.3 contract', 106:'clauses 46.4 government contract quality assurance 46.5 acceptance 46.6 material inspection and receiving reports 46.7 warranties 46.8 contractor liability for', 107:'loss of or damage to property of the government part 47 transportation 47.1 general 47.2 contracts for transportation or for', 108:'transportationrelated services 47.3 transportation in supply contracts 47.4 air transportation by u.s.flag carriers 47.5 oceantransportationbyu.s.flagvessels part 48 value engineering 48.1', 109:'policies and procedures 48.2 contract clauses part 49 termination of contracts 49.1 general principles 49.2 additionalprinciplesforfixedpricecontractsterminatedforconvenience ix structure federal acquisition', 110:'regulation 49.3 additionalprinciplesforcostreimbursementcontractsterminatedforconvenience 49.4 terminationfordefault 49.5 contractterminationclauses 49.6 contractterminationformsandformats part 50 extraordinary contractual actions and the safety act 50.1 extraordinary', 111:'contractual actions 50.2 supportantiterrorismbyfosteringeffectivetechnologiesactof2002 part 51 use of government sources by contractors 51.1 contractor use of government supply sources 51.2', 112:'contractoruseofinteragencyfleetmanagementsystemifmsvehicles subchapter h clauses and forms part 52 solicitation provisions and contract clauses 52.1 instructions for using provisions and clauses', 113:'52.2 textofprovisionsandclauses part 53 forms 53.1 general 53.2 prescription of forms 53.3 forms used in acquisitions x part 1 federal', 114:'acquisition regulations system sec. 1.000 scope of part. subpart 1.1 purpose, authority, issuance 1.101 purpose. 1.102 statement of guiding principles', 115:'for the federal acquisition system. 1.1021 discussion. 1.1022 performance standards. 1.1023 evaluating agency acquisition processes. 1.1024 acquisition team. 1.1025 role', 116:'of the acquisition team. 1.103 authority. 1.104 applicability. 1.105 issuance. 1.1051 publication and code arrangement. 1.1052 arrangement of regulations. 1.1053', 117:'copies. 1.106 omb approval under the paperwork reduction act. 1.107 certifications. 1.108 far conventions. 1.109 statutory acquisition–related dollar thresholdsadjustment for', 118:'inflation. 1.110 positive law codification. subpart 1.2 administration 1.201 maintenanceofthefar. 1.2011 the two councils. 1.2012 far secretariat. 1.202 agency compliance', 119:'with the far. subpart 1.3 agency acquisition regulations 1.301 policy. 1.302 limitations. 1.303 publication and codification. 1.304 agency control and', 120:'compliance procedures. subpart 1.4 deviationsfromthe far 1.400 scope of subpart. 1.401 definition. 1.402 policy. 1.403 individual deviations. 1.404 class deviations.', 121:'1.405 deviations pertaining to treaties and executive agreements. subpart 1.5 agency and public participation 1.501 solicitation of agency and public', 122:'views. 1.5011 definition. 1.5012 opportunity for public comments. 1.5013 exceptions. 1.502 unsolicited proposed revisions. 1.503 public meetings. subpart 1.6 career', 123:'development, contracting authority, andresponsibilities 1.601 general. 1.602 contracting officers. 1.6021 authority. 1.6022 responsibilities. 1.6023 ratification of unauthorized commitments. 1.603 selection,', 124:'appointment, and termination of appointment for contracting officers. 1.6031 general. 1.6032 selection. 1.6033 appointment. 1.6034 termination. 1.604 contractingofficer’srepresentativecor. subpart 1.7', 125:'determinations and findings 1.700 scope of subpart. 1.701 definition. 1.702 general. 1.703 class determinations and findings. 1.704 content. 1.705 supersession', 126:'and modification. 1.706 expiration. 1.707 signatory authority. this page intentionally left blank. subpart 1.1 purpose, authority, issuance 1.1022 1.000scope of', 127:'part. this part sets forth basic policies and general information about the federal acquisition regulations system including purpose,authority, applicability, issuance,', 128:'arrangement, numbering,dissemination,implementation,supplementation, maintenance, administration, and deviation. subparts 1.2,1.3, and 1.4 prescribe administrative procedures for maintaining the far system. subpart 1.1', 129:'purpose, authority, issuance 1.101purpose. the federal acquisition regulations system is established for the codification and publication of uniform policies and', 130:'procedures for acquisition by all executive agencies. the federal acquisition regulations system consists of the federal acquisition regulationfar,which is the', 131:'primary document, and agency acquisition regulationsthat implement or supplement the far. the far system does not include internal agency guidance', 132:'of the type described in 1.301a2. 1.102statement of guiding principles for the federal acquisition system. a the vision for the', 133:'federal acquisition system is to deliver on a timely basis the best value product or service to the customer,while maintaining', 134:'the public’s trustand fulfilling public policy objectives. participants in the acquisition process should work together as a team and should', 135:'be empowered tomakedecisions within their areaof responsibility. b the federal acquisition system will 1 satisfy the customer in terms of', 136:'cost, quality,andtimeliness of thedelivered product orservice by, for example i maximizing the use of commercial products and commercial services; ii', 137:'using contractors who have a track record of successful past performance or who demonstrate a current superior ability to perform;', 138:'and iii promoting competition; 2 minimize administrative operating costs; 3 conduct business with integrity, fairness, and openness; and 4 fulfill', 139:'public policy objectives. c theacquisition team consists of all participants in government acquisition including notonly representatives of thetechnical,supply, and procurement', 140:'communitiesbut also the customersthey serve, and the contractors who provide the products and services. d the roleof each member of', 141:'the acquisition team isto exercisepersonalinitiative and sound business judgment in providing the best value productor service to meet the customer’sneeds.', 142:'in exercising initiative, government members of the acquisition team may assume if a specific strategy, practice, policy or procedure is', 143:'inthe best interests of the government and isnot addressed inthe far,nor prohibitedby law statute or case law, executive order or', 144:'otherregulation, that the strategy, practice, policy or procedure is a permissible exercise of authority. 1.1021 discussion. a introduction. the statement', 145:'of guiding principles for the federal acquisition system system represents a concise statement designed to be userfriendly for all participants', 146:'in government acquisition. the following discussion of the principles is provided in order to illuminate the meaning of the terms', 147:'and phrases used. the framework for the system includes the guiding principles for the system and thesupporting policies and proceduresin', 148:'the far. b vision. all participants in the system are responsible for making acquisition decisions that deliver the best value', 149:'product orservice to the customer. best value must be viewed from a broad perspectiveandis achievedby balancing the many competing interests', 150:'in the system. the result is a system which works better and costs less. 1.1022 performance standards. a satisfy the', 151:'customer interms ofcost, quality, and timeliness of the delivered productor service. 1 the principal customers for the product or service', 152:'provided by the system are the users and line managers, acting on behalf of the american taxpayer. 2 the system', 153:'must be responsive and adaptive to customer needs, concerns, and feedback. implementation of acquisition policies and procedures, as well as', 154:'consideration of timeliness, quality,andcostthroughout the process, musttake into account the perspective of the user of the product or service. federal', 155:'acquisition regulation 3 when selecting contractors to provide products or perform services, the government will use contractors who have a', 156:'track record of successful past performance or who demonstrate a current superior ability to perform. 4 the government must not', 157:'hesitate to communicate with industry as early as possible in the acquisition cycle to help the government determine the capabilities', 158:'available in the marketplace. government acquisition personnel are permitted and encouraged to engage in responsible and constructive exchanges with industry', 159:'e.g., see 10.002 and 15.201, so long as those exchanges are consistent with existing laws and regulations, and do not', 160:'promote an unfair competitive advantage to particular firms. 5 the government will maximize its use of commercial products and commercial', 161:'services in meeting government requirements. 6 it is the policy of the system to promote competition in the acquisition process.', 162:'7 the system must perform in atimely, high quality, and costeffective manner. 8 all members ofthe teamare required to employ', 163:'planningas an integral part of the overall process of acquiring products or services. although advance planning is required, each member', 164:'ofthe teammust be flexible in order to accommodate changing or unforeseen mission needs. planning is a tool for the accomplishment', 165:'of tasks, and application of its discipline should be commensurate with the size and nature of a given task. b', 166:'minimize administrative operating costs. 1 in order to ensure that maximum efficiency is obtained, rules,regulations, and policies should be promulgated', 167:'only when their benefits clearly exceed the costs of their development, implementation, administration, and enforcement. this applies to internal administrative', 168:'processes, including reviews, and to rules and procedures applied to the contractor community. 2 the system must provide uniformity whereitcontributes', 169:'to efficiency or where fairness or predictability is essential. thesystemshouldalso, however, encourage innovation, and local adaptation where uniformity is not', 170:'essential. c conduct business with integrity,fairness, and openness. 1 an essential consideration in every aspect of the system is maintaining', 171:'the public’s trust. not only must the system have integrity, but theactions of eachmember of the team must reflect integrity,', 172:'fairness, and openness. thefoundation ofintegrity within the system is acompetent, experienced,and welltrained, professional workforce. accordingly, each member of the team', 173:'isresponsible and accountable for thewise use of public resources aswellas acting ina manner which maintainsthe public’strust. fairnessandopenness require open communication', 174:'among team members, internal and external customers, and the public. 2 to achieveefficient operations,the system must shift its focus from', 175:'risk avoidance to one of risk management. the cost to the taxpayer of attempting to eliminate all risk is prohibitive.', 176:'the executive branch will accept and manage the risk associated withempoweringlocal procurement officials to take independent actionbased on theirprofessional judgment.', 177:'3 the government shall exercise discretion, use sound business judgment, and comply with applicable laws and regulations in dealing with', 178:'contractors and prospective contractors. all contractors and prospective contractors shall be treated fairly and impartially but need not be treated', 179:'the same. d fulfill public policy objectives. the system must support the attainment of public policy goals adopted by the', 180:'congress and thepresident. in attaining these goals,andin itsoveralloperations, theprocess shall ensure the efficient use of public resources. 1.1023 evaluating agency', 181:'acquisition processes. a agencies are encouraged to develop internal procedures seeking voluntary feedback from interested parties in an acquisition to', 182:'assess process strengths and weaknessesandimprove effectiveness and efficiency of theacquisitionprocess. agencies may— 1 utilize a variety of feedback mechanisms available', 183:'to the public e.g., surveys, inperson, and/or group exchanges; 2 utilize the core preaward and debriefing survey questions at https://www.acquisition.gov/360;', 184:'and 3 seek additional feedback on targeted aspects ofan acquisition throughoutits lifecycle e.g., performance standards at 1.1022 or postaward contract', 185:'administration responsibilities at 42.302. b contracting officersare encouragedto insert the provision 52.2011, acquisition 360: voluntary survey,in accordance with agency procedures.', 186:'c contracting officers shall not review information until after contract award and shall not consider it in the award decision.', 187:'1.1024 acquisition team. the purpose of definingthe federal acquisition team team in the guiding principles is to ensure thatparticipants in', 188:'the system are identified beginning with the customer and ending with the contractor of the product or service. by identifying', 189:'subpart 1.1 purpose, authority, issuance 1.1052 theteam members in this manner, teamwork, unity ofpurpose, and open communicationamong themembersof the team', 190:'in sharing the vision and achieving the goal of the system are encouraged. individual team members will participate in the', 191:'acquisition process at the appropriate time. 1.1025 roleof theacquisitionteam. a government members of the team must be empowered to make', 192:'acquisition decisionswithin their areas of responsibility, including selection, negotiation,and administration ofcontracts consistentwith the guiding principles. in particular, the contracting officer', 193:'must have the authority to the maximum extentpracticable and consistent with law, to determine the application of rules, regulations, and', 194:'policies, on a specific contract. b the authority to make decisions and the accountability for the decisions made will be', 195:'delegated to the lowest level within the system, consistent withlaw. c theteam must be prepared to perform thefunctions and duties', 196:'assigned. the government is committed to provide training, professional development, and other resources necessary for maintaining and improving the knowledge,', 197:'skills, and abilities for all government participants onthe team, both with regardto theirparticular areaof responsibility within the system, and their', 198:'respectiverole as a team member. the contractorcommunityis encouragedto do likewise. d the system will foster cooperative relationships between the government', 199:'and its contractors consistent with its overriding responsibility to the taxpayers. e thefar outlines procurement policies and procedures that are', 200:'used by members of theacquisition team. ifa policy or procedure, or a particular strategy or practice, is in the best', 201:'interest of the government and is not specifically addressed in thefar, nor prohibited by law statute or case law, executive', 202:'order or other regulation, government members of the team should not assume it isprohibited. rather, absence of direction should be', 203:'interpretedas permitting the team to innovate and use sound business judgment that is otherwise consistent with law and within the', 204:'limits of their authority. contracting officers should take the lead in encouraging business process innovations and ensuring that business decisions', 205:'are sound. 1.103 authority. a thedevelopment of the far system is in accordance with the requirementsof 41 u.s.c. chapter 13,', 206:'acquisition councils. b the far is prepared, issued, and maintained,and the far system is prescribed jointly by thesecretary of defense,', 207:'theadministratorof general services, and the administrator, national aeronautics and space administration,under their several statutory authorities. 1.104 applicability. thefarappliestoallacquisitionsasdefinedin part 2ofthefar,exceptwhereexpresslyexcluded.', 208:'1.105issuance. 1.1051 publication and code arrangement. a thefar ispublished in— 1 the daily issue of the federal register; 2 cumulated', 209:'form in the code of federal regulations cfr; and 3 a separate edition available at https://www.acquisition.gov/browse/index/far. b the far is', 210:'issued aschapter 1 oftitle48,cfr. subsequent chaptersare reserved for agency acquisition regulations thatimplementorsupplementthefarsee subpart 1.3. thecfrstaffwillassignchapternumberstorequestingagencies. c each numbered unit or', 211:'segment e.g., part, subpart, section, etc. of an agency acquisition regulation that is codified in thecfr shall beginwith the chapter', 212:'number. however, the chapter number assigned to the farwill not beincluded inthe numbered units or segmentsof the far. 1.1052 arrangement', 213:'of regulations. a general. the far is divided into subchapters, parts each of which covers a separate aspect of acquisition,', 214:'subparts, sections, and subsections. b numbering. 1 the numbering system permitsthe discrete identification of every far paragraph. the digitsto the', 215:'left of thedecimal point representthe part number. the numbers to the right of the decimal point and tothe left of', 216:'the dash represent, in order,the subpart one or two digits, and the section two digits. thenumber to the right of', 217:'the dash represents federal acquisition regulation the subsection. subdivisions may be used at the section and subsection level to identify', 218:'individual paragraphs. the following example illustrates the makeup of a farnumber citation note thatsubchaptersare not used withcitations: 2 subdivisions below', 219:'the section or subsection level consist of parenthetical alpha numerics using the following sequence: a1ia1i c references and citations. 1', 220:'unless otherwise stated, crossreferences indicate parts, subparts, sections, subsections, paragraphs, subparagraphs, or subdivisions of this regulation. 2 this regulation may', 221:'be referred to as the federal acquisition regulation or the far. 3 using the far coverage at 9.1064d as a', 222:'typical illustration, reference to the– ipartwouldbe far part 9outsidethefarand part9 withinthefar. iisubpartwouldbe far subpart 9.1 outside thefar and subpart 9.1', 223:'within the far. iii section would be far 9.106 outside thefar and 9.106 within the far. iv subsection wouldbe far', 224:'9.1064 outside the far and 9.1064 within the far. v paragraphwouldbe far 9.1064d outside the far and 9.1064d within the', 225:'far. 4 citations of authority e.g., statutes or executive orders in the farshallfollow the federal register form guides. 1.1053 copies.', 226:'copies of the farin cfr form may be purchased from the bookstoreof the government publishingoffice gpo, washington,dc 20402. 1.106 omb', 227:'approval under the paperwork reduction act. the paperwork reduction act of 1980 44 u.s.c. chapter 35 imposes a requirement on', 228:'federal agencies to obtain approval from theoffice of management and budgetombbefore collecting information from 10 or more members of the', 229:'public. the information collection and recordkeeping requirements contained in this regulation have been approved by the omb. the following omb', 230:'control numbers apply: far segment omb control number far segment omb control number 14.205 90000037 subpart 49.6 contract 90000012 15.201c', 231:'90000037 termination forms and 15.305a2ii 90000142 formats 15.4072e 90000048 50.1033 90000029 19.301 90000163 50.1034 90000029 22.8 12500003 50.1043 90000029 22.14', 232:'12500005 51.202 90000032 22.16 12450004 51.203 90000032 31.20546 90000079 52.2011 90000204 32.408b 90000073 52.2032 90000018 33.2 90000035 52.2037 90000018 36.2132', 233:'90000037 52.20313 90000018 42.1203a 90000076 52.20316 90000018 42.1204e and f 90000076 52.2043 90000189 42.1205a 90000076 52.2046 90000189 42.1503d 90000142 52.2047', 234:'90000189 47.303 90000061 52.20410d2 and 3 30900292 52.20412 90000189 subpart 1.1 purpose, authority, issuance 1.106 far segment omb control number', 235:'52.20413 90000189 52.20414 90000189 52.20415 90000189 52.20420 90000189 52.20423 90000189 52.20424 90000199 52.20425 90000199 52.20426 90000199 52.20429 90000205 52.20430 90000205', 236:'52.2073 90000082 52.2074 90000082 52.2091 90000198 52.2092 90000198 52.2095 90000198 52.2096 90000198 52.2097 90000198 52.2099 90000198 52.20910 90000198 52.20911 90000198', 237:'52.20912 90000198 52.20913 90000198 52.2117 90000153 52.2118 90000153 52.2119 90000153 52.212110 90000142 52.2121j 90000189 52.2123b 90000189 52.2123b2 90000136 52.2123h 90000198', 238:'52.2123l 90000189 52.2123n 90000198 52.2123q 90000198 52.2125d 90000034 52.21414 90000047 52.21426 90000034 52.21428 90000013 52.2151c2iv 90000048 52.2152 90000034 52.2156 90000047', 239:'52.2159 90000048 52.21512 90000013 52.21513 90000013 52.21514 90000048 52.21519 90000048 52.21520 90000013 52.21521 90000013 52.21522 90000048 52.21523 90000048 52.2162 90000067', 240:'52.2163 90000067 52.2164 90000067 far segment 52.2165 52.2166 52.2167 52.21615 52.21616 52.21617 52.2199 52.21928 52.21929 52.21930 52.2222 52.2224 52.2226 52.2228', 241:'52.22211 52.22218 52.22221 52.22222 52.22223 52.22225 52.22226 52.22227 52.22232 52.22233 52.22234 52.22235 52.22236 52.22237 52.22238 52.22240 52.22241 52.22246 52.22250 52.22254', 242:'52.22255 52.22256 52.22262 52.2232 52.2235 52.2237 52.2239 52.22311 52.22312 52.22322 52.2243 52.2252 52.2254 52.2256 52.2258 52.2259 52.22510 omb control number', 243:'90000067 90000067 90000069 90000069 90000067 90000067 90000007 90000163 32450374 32450374 90000066 12350023 12350023 and 90000066 12350008 and 12350018 90000066 90000066', 244:'12500003 12500003 12500003 12500003 12500001 and 12500003 12500003 90000154 90000066 90000066 12500004 12500005 12500004 12930005 12450004 12350007 and 12350018 90000066', 245:'90000188 16150092 12350018 90000188 12350018, 12350021 and 12350029 90000107 90000107 90000107 90000107 90000107 90000107 90000107 90000182 90000024 90000024 90000024 90000024', 246:'90000024 90000024 federal acquisition regulation far segment omb control number 52.22511 90000024 52.22512 90000024 52.22518 90000161 52.22521 90000024 52.22523 90000024', 247:'52.22526 90000184 52.2267 90000207 52.2272 90000095 52.2276 90000095 52.2279 90000095 52.22711 90000095 52.22713 90000095 52.22714 90000095 52.22715 90000095 52.22716 90000095', 248:'52.22717 90000095 52.22718 90000095 52.22719 90000095 52.22720 90000095 52.22721 90000095 52.22723 90000095 52.2281 90000001 52.2282 90000001 52.22811 90000001 52.22812 90000135', 249:'52.22813 90000001 52.22814 90000001 52.22815 90000001 52.22816 90000001 52.22817 90000001 52.2292 90000059 52.22911 15452263 52.22912 15452263 52.2306 90000129 52.2321 90000073', 250:'52.2322 90000073 52.2323 90000073 52.2324 90000073 52.2325 90000073 52.2326 90000073 52.2327 90000073 52.23210 90000073 52.23212 90000073 52.23216 90000010 52.23220 90000073', 251:'52.23222 90000073 52.23227 90000073 52.23228 90000138 52.23229 90000138 52.23230 90000138 52.23231 90000138 52.23232 90000138 far segment 52.23234 52.2331 52.2365 52.23613', 252:'alt.i 52.23615 52.23619 52.23710 52.2424 52.2425 52.24213 52.2434 52.2436 52.2437 52.2442 52.2451f and j 52.2459d1 52.2462 52.2463 52.2464 52.2465 52.2466', 253:'52.2467 52.2468 52.24612 52.24615 52.24626 52.2471 52.2472 52.2476 52.24729 52.24730 52.24731 52.24732 52.24733 52.24734 52.24735 52.24736 52.24737 52.24738 52.24741 52.24742', 254:'52.24743 52.24744 52.24748 52.24751 52.24752 52.24753 52.24757 52.24760 52.24763 52.24764 52.24765 omb control number 90000073 90000035 90000064 90000064 90000064 90000064', 255:'90000152 90000069 90000069 90000069 90000026 90000026 90000026 90000149 90000075 90000075 90000077 90000077 90000077 90000077 90000077 90000077 90000077 90000077 90000077 90000077', 256:'90000061 90000061 90000061 90000061 90000061 90000061 90000061 90000061 90000061 90000061 90000061 90000061 90000061 90000061 90000061 90000061 90000061 90000061 90000061 90000061', 257:'90000061 90000061 90000061 90000061 90000061 90000061 subpart 1.1 purpose, authority, issuance 1.108 far segment omb control number far segment omb', 258:'control number 52.24767 90000061 sf1405 90000011 52.24768 90000061 sf1406 90000011 52.2481 90000027 sf1407 90000011 52.2482 90000027 sf1408 90000011 52.2483 90000027', 259:'sf1413 90000066 52.2501 90000029 sf1414 90000001 sf24 90000001 sf1415 90000001 sf25 90000001 sf1416 90000001 sf25a 90000001 sf1418 90000001 sf25b 90000001', 260:'sf1428 90000075 sf28 90000001 sf1429 90000075 sf34 90000001 sf1435 90000012 sf35 90000001 sf1436 90000012 sf273 90000001 sf1437 90000012 sf274 90000001', 261:'sf1438 90000012 sf275 90000001 sf1439 90000012 sf294 90000007 sf1440 90000012 sf330 90000157 sf1443 90000012 sf1403 90000011 sf1444 90000066 sf1404 90000011', 262:'dd form 254 07040567 1.107certifications. in accordance with 41 u.s.c. 1304, a new requirement for a certification by a contractor', 263:'or offeror may not be included in this chapter unless a the certification requirement is specifically imposed by statute; or', 264:'b written justification for suchcertification is providedto the administratorforfederal procurement policy by the federal acquisition regulatory council, and the administrator', 265:'approves in writing the inclusion of such certification requirement. 1.108 far conventions. the following conventions provideguidance for interpreting thefar: a', 266:'words and terms. definitions in part 2 apply to the entire regulation unless specifically defined in another part, subpart, section,', 267:'provision, or clause. words or terms defined in aspecific part, subpart, section,provision, or clause have that meaning when used in', 268:'that part, subpart, section, provision, or clause. undefined words retain their common dictionary meaning. b delegation of authority. each authority', 269:'is delegable unless specifically stated otherwise see 1.1025b. c dollar thresholds. unless otherwise specified, a specific dollar threshold for the', 270:'purpose of applicability is the final anticipated dollar value of the action, including the dollar value of all options. if', 271:'the action establishes a maximum quantity of supplies or services to be acquired or establishes a ceiling price or establishes', 272:'the final price to be based on future events, the final anticipated dollar value must be the highest final priced', 273:'alternative to the government, including the dollar value of all options. d application of far changes to solicitations and contracts.', 274:'unless otherwise specified 1 far changes applyto solicitations issued on orafter the effective date of the change; 2 contracting officersmay,', 275:'at their discretion, include thefar changes in solicitations issued before the effective date, provided awardof the resulting contracts occurs onor', 276:'after theeffective date; and 3 contracting officersmay, at their discretion, include thechangesin any existing contractwith appropriate consideration. e citations. when', 277:'the far cites a statute, executiveorder,officeof management and budgetcircular, office of federal procurement policy policy letter, or relevant portionof the', 278:'code of federal regulations, the citation includes all applicable amendments, unless otherwise stated. federal acquisition regulation f imperative sentences. when', 279:'an imperative sentence directs action, the contracting officer is responsible for the action, unless another party is expressly cited. 1.109', 280:'statutory acquisition–related dollar thresholdsadjustment for inflation. a 41 u.s.c. 1908 requires that the far councilperiodically adjustall statutoryacquisitionrelated dollar thresholds in', 281:'thefar for inflation, except as provided inparagraph cof this section. this adjustment iscalculatedevery 5 years, starting in october 2005, using', 282:'the consumer price index for all urban consumers cpiu, and supersedes the applicability of any other provision of law that', 283:'provides for the adjustment of such acquisitionrelated dollar thresholds. b the statute defines an acquisitionrelated dollar threshold as a dollar', 284:'threshold that is specified in law as a factor in defining thescope of the applicability of a policy, procedure, requirement,', 285:'orrestriction provided in that law to the procurement of supplies or services by an executive agency, as determinedby the far', 286:'council. c the statute does not permit escalation of acquisitionrelated dollar thresholds established by: 1 40 u.s.c. chapter 31— i', 287:'subchapter iii, bonds; and iisubchapter iv, wage rate requirementsconstruction; 2 41 u.s.c. chapter 67, service contract labor standards; or 3', 288:'the united states trade representative pursuant to the authority of thetradeagreements act of 1979 19 u.s.c. 2511 et seq.. d', 289:'the statute, as amended by section 821 ofthe national defense authorization act for fiscal year 2018pub. l. 11591,requiresthe adjustment described', 290:'inparagraph aof this section be applied to contractsandsubcontractswithout regard to the date of award of the contract or subcontract. therefore,', 291:'if a threshold is adjusted for inflation as set forth in paragraph a of this section, then the changed threshold', 292:'applies throughout the remaining term of the contract, unless there is a subsequent threshold adjustment. e a matrix showing calculation', 293:'of the most recent escalation adjustments of statutory acquisitionrelated dollar thresholds is available via the internet at http://www.regulations.gov search far', 294:'case 2019013, open the docket folder, and go to the supporting documents file. 1.110positive law codification. a public law 107217', 295:'revised, codified, and enacted as title 40, united states code, public buildings,property, and works, certain general and permanent laws of', 296:'theunited states. b public law 111350 revised, codified, and enacted astitle41,united statescode, publiccontracts, certain general and permanent laws of the', 297:'united states. c the following table provides cross references between the historical titles of the acts, and the current reference', 298:'in title 40 or title 41. table1 to paragraph c historical title of act division/ chapter/ subchapter title antikickback act', 299:'41 u.s.c. chapter 87 kickbacks brooks architect engineer act 40 u.s.c. chapter 11 selection of architects and engineers buy american', 300:'act 41 u.s.c. chapter 83 buy american contract disputes act of 1978 41 u.s.c. chapter 71 contract disputes contract work', 301:'hours and safety standards act 40 u.s.c. chapter 37 contract work hours and safety standards davisbacon act 40 u.s.c. chapter', 302:'31, subchapter iv wage rate requirements construction drugfree workplace act 41 u.s.c. chapter 81 drugfree workplace federal property and administrative', 303:'services act of 1949, title iii. 41 u.s.c. div. c of subtitle i procurement subpart 1.1 purpose, authority, issuance 1.110', 304:'historical title of act division/ chapter/ subchapter title javitswagneroday act 41 u.s.c. chapter 85 committee for purchase from people who', 305:'are blind or severely disabled miller act 40 u.s.c. chapter 31, subchapter iii bonds office of federal procurement policy act', 306:'41 u.s.c. div. b of subtitle i office of federal procurement policy procurement integrity act 41 u.s.c. chapter 21 restrictions', 307:'on obtaining and disclosing certain information service contract act of 1965 41 u.s.c. chapter 67 service contract labor standards truth', 308:'in negotiations act 41 u.s.c. chapter 35 truthful cost or pricing data walshhealey public contracts act 41 u.s.c. chapter 65', 309:'contracts for materials, supplies, articles, and equipment exceeding $10,000. exceptsections3302, 3501b, 3509, 3906, 4710, and 4711. except sections 1704 and', 310:'2303. this page intentionally left blank. 1.110 subpart 1.2 administration 1.202 subpart 1.2 administration 1.201 maintenance of the far. 1.2011', 311:'the two councils. a subject to the authorities discussed in 1.103, revisions to the far will be prepared and issued', 312:'through the coordinated action of two councils, the defense acquisition regulations council dar council and the civilian agency acquisition council', 313:'caa council. members of these councils shall 1 represent their agencies on a fulltime basis; 2 be selected for their', 314:'superior qualifications in terms of acquisition experience and demonstrated professional expertise; and 3 be funded by their respective agencies. b', 315:'the chairperson of the caa council shall be the representative of the administrator of general services. the other members of', 316:'this council shall be one each representative from the 1 departments ofagriculture, commerce, education, energy, health and human services, homeland', 317:'security, housing and urban development,interior,justice, labor, state, transportation, treasury, and veterans affairs; and 2 environmental protection agency, national aeronauticsandspace administration,', 318:'social security administration, small business administration, and u.s. agency for international development. c the director of the dar council shall', 319:'be the representative of the secretary of defense. the operation of the dar council will be as prescribed by the', 320:'secretary of defense. membership shall include representatives of the military departments,the defense logistics agency, and thedefense contractmanagement agency. d responsibility', 321:'for processing revisions to thefar isapportioned by the twocouncils so that eachcouncil has cognizance over specified parts or subparts. e', 322:'each council shall be responsible for 1 agreeing on all revisions with the other council; 2 submitting tothe far secretariat', 323:'see 1.2012 the information required under paragraphs 1.5012b and e for publication in the federal register of a notice soliciting', 324:'comments on a proposed revision tothe far; 3 considering all comments received in response to notice of proposed revisions; 4', 325:'arranging for public meetings; 5 preparing any final revision in the appropriate far formatand language; and 6 submitting any final', 326:'revisionto thefar secretariat for publication in the federal register. 1.2012 far secretariat. a thegeneral services administrationis responsible for establishingandoperating the', 327:'far secretariatto publish and distribute the farthroughthe code of federal regulations system including a separate online edition with periodic updates.', 328:'b additionally, the far secretariat shall provide the two councils withcentralized services for 1 keeping a synopsisof current far casesandtheir', 329:'status; 2 maintaining official files; 3 assisting parties interested in reviewing the files on completed cases; and 4 performing miscellaneousadministrativetasks', 330:'pertaining to the maintenanceof the far. 1.202 agency compliance with the far. agency compliance with the far see 1.304 is', 331:'the responsibility of the secretary of defense for the military departments and defense agencies, the administrator of general services for', 332:'civilian agencies other than nasa, and the administrator of nasa for nasa activities. this page intentionally left blank. subpart 1.3', 333:'agency acquisition regulations 1.304 subpart 1.3 agency acquisition regulations 1.301 policy. a 1subjecttotheauthoritiesinparagraphcofthissectionandotherstatutoryauthority,anagencyheadmayissueor authorizethe issuance of agency acquisition regulationsthat implement', 334:'or supplement the far and incorporate, together with thefar, agency policies, procedures, contract clauses, solicitationprovisions, and formsthat govern the contracting', 335:'process or otherwise controlthe relationship between theagency,including any of its suborganizations, and contractors or prospective contractors. 2 subjectto the authorities', 336:'in paragraph c of this section and other statutoryauthority, an agency head mayissue or authorizethe issuance of internal agency guidance', 337:'at any organizational level e.g., designations and delegations of authority, assignments of responsibilities, workflow procedures, and internal reporting requirements. b', 338:'agency heads shall establish procedures to ensure that agency acquisition regulations are published for comment in the federal register in', 339:'conformance with the procedures in subpart 1.5 and as required by 41 u.s.c. 1707, and other applicable statutes, when theyhavea', 340:'significant effect beyond the internal operating procedures of the agency or have a significant cost or administrative impacton contractors or', 341:'offerors. however, publication is not required for issuancesthat merely implement or supplement higher level issuances thathavepreviously undergone the public comment', 342:'process, unless such implementation or supplementation results in an additional significant cost or administrative impact on contractors or offerors or', 343:'effect beyond theinternaloperating procedures of the issuingorganization. issuances under 1.301a2 need not be publicized for public comment. c when adopting', 344:'acquisition regulations, agencies shall ensure that they comply with the paperwork reduction act 44 u.s.c. 3501, et seq. as implemented', 345:'in 5 cfr 1320 see 1.106 and the regulatory flexibility act 5 u.s.c. 601, et seq.. normally,when alawrequirespublication of a', 346:'proposed regulation, the regulatoryflexibility act applies and agencies must preparewritten analyses, or certifications as provided in the law. d agency', 347:'acquisition regulations implementing or supplementing the far are, for 1 the military departments and defense agencies, issued subject to the', 348:'authority of the secretary of defense; 2 nasa activities, issued subject to the authorities of the administrator of nasa; and', 349:'3 the civilian agencies other than nasa, issued by the heads of those agencies subject to the overall authority of', 350:'the administrator of general services or independent authority the agency may have. 1.302limitations. agency acquisition regulations shall be limited to', 351:'a those necessary to implement far policies and procedures withinthe agency; and b additional policies,procedures,solicitation provisions, or contract clauses that', 352:'supplement the farto satisfy the specific needs of the agency. 1.303publication and codification. a agencywide acquisition regulations shall be published', 353:'in the federal register as required by law, shall be codified underan assignedchapter in title 48, code of federal regulations,', 354:'and shall parallel thefar in format, arrangement, and numbering system but see 1.1051c. coverage in an agency acquisition regulation that', 355:'implements a specific part, subpart, section, orsubsection of the far shall be numberedand titled to correspond tothe appropriate farnumber and', 356:'title. supplementary material for whichthere is no counterpart in the far shall be codified using chapter,part,subpart, section, or subsection numbers', 357:'of 70 and up e.g., for thedepartment ofinterior,whose assigned chapternumber in title 48 is 14, part 1470, subpart 1401.70, section', 358:'1401.370, or subsection 1401.30170. b issuances under 1.301a2 need not be published in the federal register. 1.304 agency controland compliance', 359:'procedures. a under the authorities of 1.301d, agencies shall control and limit issuance of agency acquisition regulations and, in particular,', 360:'local agency directives that restrain the flexibilities found in the far, and shall establish formal procedures for the review of', 361:'these documents to assure compliance with this part 1. b agency acquisition regulations shall not 1 unnecessarilyrepeat, paraphrase, or otherwise', 362:'restate material contained in the far or higherlevel agency acquisition regulations; or 2 except as required by law or as', 363:'provided in subpart 1.4,conflictorbeinconsistentwithfarcontent. federal acquisition regulation c agencies shall evaluate all regulatory coverage in agency acquisition regulations to determine', 364:'if it could apply to other agencies. coverage that is not peculiar to one agency shall be recommended for inclusion', 365:'in the far. subpart 1.4 deviations from the far 1.404 subpart 1.4 deviations from the far 1.400scope of subpart. this', 366:'subpart prescribes the policies andprocedures for authorizing deviations from the far. exceptions pertainingto the useofformsprescribedbythefararecoveredin part 53 rather than in', 367:'this subpart. 1.401definition. deviation means any one or combination of the following: a theissuance or useof apolicy, procedure,solicitation provisionsee definition', 368:'in 2.101, contract clause see definition in 2.101, method, or practice of conducting acquisition actions of any kind at any', 369:'stage of the acquisition process that is inconsistentwith the far. b the omission of any solicitation provision or contract clause', 370:'when its prescription requires its use. c the use of any solicitation provision or contract clause with modified or alternate', 371:'language that is not authorized by the far seedefinition of modification in 52.101a and definition of alternate in 2.101. d', 372:'the use of a solicitation provision orcontract clause prescribed by the far on a substantiallyas follows or substantially the same', 373:'as basis see definitions in 2.101 and 52.101a, if such use is inconsistent with the intent, principle, or substance of', 374:'theprescription or relatedcoverage on the subject matter in the far. e theauthorizationof lesser or greater limitations on the useof any', 375:'solicitation provision, contractclause, policy,or procedure prescribed bythe far. f the issuance of policies or procedures that govern the contracting process', 376:'or otherwise control contracting relationships that are not incorporated into agency acquisition regulations in accordance with 1.301a. 1.402 policy. unlessprecluded', 377:'by law, executive order, or regulation,deviationsfrom the far maybe grantedas specified inthis subpart when necessary to meet the specific needs', 378:'and requirements of each agency. the developmentandtesting ofnew techniques and methods of acquisition should notbe stifled simply becausesuch action would', 379:'require a far deviation. the fact that deviation authority is required should not, of itself, deter agencies in their development', 380:'and testing of new techniques and acquisition methods. refer to 31.101 for instructions concerning deviations pertaining to the subject matter', 381:'of part 31, contract cost principles and procedures. deviations are not authorized with respect to 30.2013 and 30.2014, or the', 382:'requirements of the cost accounting standards board casb rules and regulations 48 cfr chapter 99. refer to 30.2015 for instructions', 383:'concerning waivers pertaining to cost accounting standards. 1.403individual deviations. individual deviations affect only one contract action, and,unless 1.405e is applicable,', 384:'may be authorized by the agency head. the contracting officermust documentthe justification and agency approval in the contract file. 1.404class', 385:'deviations. class deviations affect more than one contract action. whenan agencyknows thatitwill require a class deviation ona permanent basis, it', 386:'should propose a far revision, if appropriate. civilian agencies, other than nasa, must furnish a copy of eachapproved class deviationto', 387:'thefar secretariat. a for civilian agencies except nasa, class deviations may be authorized by agency heads or their designees, unless', 388:'1.405e is applicable. delegation of this authorityshallnot be made belowthe head of a contracting activity. authorization of class deviations by', 389:'agency officials is subjectto the following limitations: 1 an agency official who may authorize a class deviation, before doing so,shallconsult', 390:'with the chairperson of the civilian agency acquisition councilcaa council, unless thatagency official determines that urgency precludes such consultation. 2', 391:'recommended revisions to the farshallbe transmitted to the far secretariat byagency headsor their designees for authorizing class deviations. b for', 392:'dod, class deviations shall be controlled,processed,andapproved in accordance with the defense far supplement. c for nasa, class deviations shall be', 393:'controlled and approved by the assistant administrator for procurement. deviations shall be processed in accordance with agency regulations. federal acquisition', 394:'regulation 1.405 deviations pertaining to treaties and executive agreements. a executive agreements, as used in this section, means governmenttogovernment agreements,', 395:'including agreements with international organizations, towhich the united states is aparty. b any deviation from the far required to comply', 396:'with a treaty to which theunited statesis a partyis authorized, unless thedeviation would be inconsistent with far coverage based ona', 397:'law enacted after the execution ofthe treaty. c any deviation from thefar required to complywith an executiveagreement is authorized unless', 398:'the deviationwould beinconsistent with farcoverage based on law. d for civilian agencies other than nasa, a copy of the text', 399:'deviation authorized under paragraph b or c of this section shall be transmitted to the far secretariatthrougha centralagency control point.', 400:'e for civilian agencies other than nasa, if a deviation required to comply with a treaty or an executive agreement', 401:'is not authorized by paragraph b or c ofthissection, then the request for deviationshallbe processed through thefar secretariat to the', 402:'civilian agency acquisition council. subpart 1.5 agency and public participation 1.503 subpart 1.5 agency and public participation 1.501solicitation of agency', 403:'and public views. 1.5011 definition. significant revisions, as used in this subpart, means revisions that alter the substantive meaning of', 404:'any coverage in the far system and which have a significant cost or administrative impact oncontractors orofferors, orsignificant effect beyond', 405:'the internal operating procedures of the issuing agency. thisexpression, for example, doesnot includeeditorial, stylistic, or other revisions that have no', 406:'impact on the basic meaning of the coverage being revised. 1.5012 opportunity for public comments. a views of agenciesandnongovernmental parties', 407:'or organizations will beconsidered in formulatingacquisition policies and procedures. b the opportunity to submit written comments on proposed significant revisions', 408:'shall be provided by placing a notice in the federal register. each of these notices shall include 1 the text', 409:'of the revision or,if it isimpracticable to publish the full text, a summaryof the proposal; 2 the address and telephone', 410:'number of the individual from whom copies of the revision, in full text, can be requested and to whom comments', 411:'thereon should be addressed; and 3 when 1.5013b is applicable,a statement thatthe revision iseffective on a temporary basis pending completionof', 412:'the public comment period. c a minimum of 30 days and, normally, atleast 60 days will be given for the', 413:'receiptof comments. 1.5013 exceptions. a comments need not be solicited when the proposed coverage does not constitute a significant revision.', 414:'b advance comments need not besolicited whenurgentand compelling circumstances make solicitation of comments impracticable prior to theeffective date ofthe coverage,', 415:'suchas when a new statute must beimplemented in a relatively short period of time. in such case, the coverage shall', 416:'be issued on a temporary basis and shall provide for at least a 30 day public comment period. 1.502 unsolicited', 417:'proposed revisions. consideration shall also be given to unsolicited recommendations for revisions that have been submitted in writing with sufficient', 418:'data and rationale to permit their evaluation. 1.503public meetings. public meetings may beappropriatewhen adecision to adopt, amend,or delete far coverage', 419:'islikely to benefit from significant additional views and discussion. this page intentionally left blank. subpart 1.6 career development, contracting authority,', 420:'and responsibilities 1.6022 subpart 1.6 career development, contracting authority, and responsibilities 1.601general. a unless specifically prohibited by another provision of', 421:'law, authorityand responsibility to contract for authorized supplies and services are vested in the agency head. the agency head may', 422:'establish contracting activities and delegate broad authorityto manage the agency’s contracting functions to heads of such contracting activities. contracts may', 423:'be enteredinto and signed onbehalf of the government only by contractingofficers. in some agencies, a relatively small number of high', 424:'levelofficialsare designated contracting officers solely byvirtueof their positions. contracting officers below the level ofa head of a contracting activity shall', 425:'be selected and appointed under 1.603. b agency heads may mutually agree to 1 assign contracting functions and responsibilities from', 426:'one agency to another; and 2 create joint or combined offices to exercise acquisition functionsandresponsibilities. 1.602contracting officers. 1.6021 authority. a', 427:'contracting officers have authority to enter into, administer, or terminate contracts and make relateddeterminations and findings. contracting officers may bind', 428:'the government only to the extent of the authority delegated tothem. contracting officers shall receive from the appointing authority see', 429:'1.6031 clear instructions in writing regarding the limits of their authority. informationon the limitsof the contractingofficers’ authority shall be readily', 430:'available to the public and agency personnel. b no contractshallbe entered into unless thecontracting officer ensuresthat all requirementsof law, executive', 431:'orders, regulations, and all other applicable procedures, including clearances and approvals, have been met. 1.6022 responsibilities. contracting officersare responsible for', 432:'ensuring performance of all necessary actions for effective contracting, ensuring compliance with the terms of the contract, and safeguarding the', 433:'interests of the united states in its contractual relationships. in order toperformthese responsibilities, contracting officers should be allowed wide latitude', 434:'to exercise business judgment. contracting officersshall a ensure that the requirements of 1.6021b have been met,andthat sufficient funds are available', 435:'for obligation; b ensure that contractors receive impartial, fair, and equitable treatment; c request and consider the advice of specialists', 436:'inaudit,law, engineering, information security,transportation,and other fields, as appropriate; and d designate and authorize, in writing and in accordance with agency', 437:'procedures, a contracting officer’s representative cor on all contracts and orders other than those that are firmfixed price, and for', 438:'firmfixedprice contracts and orders as appropriate, unless the contractingofficer retains andexecutes the cor duties. see 7.104e. ×cor 1 shall be', 439:'a government employee, unless otherwise authorized in agency regulations; 2 shall be certified andmaintaincertification in accordance with the current office', 440:'of management andbudget memorandum onthe federalacquisition certification for contracting officer representatives faccorguidance, or for dod, in accordance with the current', 441:'applicable dod policy guidance; 3 shall be qualified by training and experience commensurate with the responsibilities to be delegated in', 442:'accordance with agency procedures; 4 may not be delegated responsibility to perform functions that have been delegated under 42.202 to', 443:'a contract administration office, but may be assigned some duties at 42.302by the contracting officer; 5 has noauthority tomake any', 444:'commitments or changes thataffect price, quality, quantity, delivery, or other terms and conditions of the contract nor in any way', 445:'direct the contractor or its subcontractors to operate in conflict with the contract terms and conditions; 6 shall be nominated', 446:'either by the requiring activity or in accordance with agency procedures; and 7 shall be designated in writing, with copies', 447:'furnished to the contractor and the contractadministration office ispecifying theextent of thecor’s authorityto act on behalf of thecontracting officer; iiidentifying', 448:'the limitations on the cor’s authority; iii specifying the period covered by the designation; iv stating the authority is not', 449:'redelegable; and federal acquisition regulation v stating that the cor may be personally liable for unauthorized acts. 1.6023 ratification of', 450:'unauthorized commitments. a definitions. ratification, as used in this subsection, means the act of approving an unauthorized commitment by an', 451:'official who hasthe authority to do so. unauthorized commitment, as used in this subsection, means an agreement that is not', 452:'binding solely because the government representative who made it lacked the authority to enter into that agreement on behalf of', 453:'the government. b policy. 1 agencies should take positive action to preclude, to the maximum extent possible, the need for', 454:'ratification actions. although procedures are provided in this section for use in those cases where the ratification of an unauthorized', 455:'commitmentis necessary, these procedures may not be used in amanner thatencourages such commitments being made by government personnel. 2 subjectto', 456:'the limitations in paragraph c of this subsection,the head of the contracting activity, unless ahigher levelofficial isdesignated bythe agency, may', 457:'ratify an unauthorized commitment. 3 the ratification authority in paragraph b2 of this subsection may be delegated in accordance with', 458:'agency procedures, but in no case shall theauthority be delegated below the level of chief of thecontracting office. 4 agencies', 459:'should process unauthorized commitments using the ratification authority of this subsection instead of referring such actions to the government accountability', 460:'office for resolution. see 1.6023d. 5 unauthorized commitments that would involve claims subject to resolution under 41 u.s.c. chapter 71,', 461:'contract disputes, should be processed in accordance with subpart 33.2, disputes and appeals. c limitations. the authority in paragraph b2', 462:'of this subsection may be exercised only when 1 supplies or services have been provided to and accepted by the', 463:'government, or the government otherwise has obtained or will obtain a benefit resulting from performance of the unauthorized commitment; 2', 464:'the ratifying official has the authority to enter into a contractualcommitment; 3 the resultingcontract would otherwise have been proper if', 465:'made by anappropriate contracting officer; 4 the contractingofficer reviewingthe unauthorizedcommitment determines theprice to be fair and reasonable; 5 the contractingofficer', 466:'recommends paymentandlegal counsel concurs in the recommendation, unless agency procedures expressly do not require such concurrence; 6 funds are available', 467:'and were available at the time the unauthorized commitment was made; and 7 the ratification is in accordance with any', 468:'other limitations prescribed under agency procedures. d nonratifiable commitments. cases that are not ratifiable under this subsection may be subject', 469:'to resolution as recommendedby the government accountability office under itsclaim procedure gao policyand proceduresmanual for guidanceoffederalagencies,title4,chapter2,orasauthorizedbyfar subpart 50.1. legal advice', 470:'should be obtained in these cases. 1.603selection, appointment, and termination of appointment for contracting officers. 1.6031 general. 41 u.s.c. 1702b3g', 471:'requires agency heads to establish and maintain a procurement career management program and a system for theselection, appointment, and termination', 472:'ofappointmentof contracting officers. agency heads or their designeesmay select and appointcontracting officers andterminatetheir appointments. these selections and appointments shall beconsistent', 473:'with office of federal procurement policy’s ofppstandards for skillbased training in performing contracting and purchasing duties as published in ofpp', 474:'policy letter no. 0501, developing and managing the acquisition workforce, april 15, 2005. 1.6032 selection. in selecting contracting officers,the appointing', 475:'official shall considerthe complexity anddollarvalueof the acquisitions to be assigned and the candidate’sexperience,training, education, businessacumen, judgment, character, and reputation. examples', 476:'of selection criteria include a experience in government contracting and administration, commercial purchasing, or related fields; b education or specialtraining', 477:'in business administration, law, accounting, engineering,or related fields; c knowledge of acquisition policies and procedures, including this and other applicable', 478:'regulations; d specialized knowledge in the particular assigned field of contracting; and subpart 1.6 career development, contracting authority, and responsibilities', 479:'1.604 e satisfactory completion of acquisition training courses. 1.6033 appointment. a contracting officers shall be appointed in writing on an', 480:'sf 1402, certificate of appointment, which shall state any limitations on the scope of authority to be exercised, other than', 481:'limitations contained in applicable law or regulation. appointing officials shall maintain files containing copies of all appointments that have notbeenterminated.', 482:'b agency heads are encouraged to delegate micropurchase authority to individuals who are employees of an executive agency or members', 483:'of the armed forces of the united states who will be using the supplies or services being purchased. individuals delegated', 484:'this authority are not required to be appointed on an sf 1402, but shall be appointed in writing in accordance', 485:'with agency procedures. 1.6034 termination. terminationof acontracting officer appointment will be by letter, unless thecertificate ofappointment contains other provisions for', 486:'automatic termination. terminations may be for reasons such as reassignment, termination of employment,or unsatisfactory performance. no termination shall operate retroactively.', 487:'1.604 contractingofficer’s representative cor. a contracting officer’s representative cor assists in the technical monitoring or administration of a contract see', 488:'1.6022d. the cor shall maintain a file for each assigned contract. the file must include, at a minimum– a a', 489:'copy of the contracting officer’s letterof designationandotherdocuments describing the cor’s dutiesand responsibilities; b a copy of thecontract administration functions delegatedto', 490:'a contract administration office which may notbe delegated to the cor see 1.6022d4; and c documentation of cor actions taken', 491:'in accordance with the delegation of authority. this page intentionally left blank. subpart 1.7 determinations and findings 1.706 subpart 1.7', 492:'determinations and findings 1.700scope of subpart. this subpart prescribes general policies and procedures for the use ofdeterminations and findings d&f’s.', 493:'requirements for specific types ofd&f’s canbe found with theappropriate subject matter. 1.701definition. determination and findings means aspecial form of written', 494:'approval by an authorized official that is requiredby statute or regulation as a prerequisite to taking certain contract actions. the', 495:'determination is a conclusion or decision supported by the findings.’’ the findings are statements offact or rationale essentialto support the', 496:'determinationandmust cover each requirement of the statute or regulation. 1.702general. a a d&f shall ordinarilybe for an individual contract action.', 497:'unless otherwise prohibited,class d&f’s may be executed for classes of contract actions see 1.703. the approval granted by a d&f', 498:'is restricted to the proposed contract actions reasonably describedin that d&f. d&f’smay provide for a reasonabledegree of flexibility. furthermore, in', 499:'their application, reasonable variations in estimated quantities or prices are permitted, unless the d&f specifies otherwise. b when an option', 500:'is anticipated, the d&f shall state the approximate quantity to be awarded initially and the extent of the increase to', 501:'be permitted by the option. 1.703class determinations and findings. a a class d&f provides authority for a class of contract', 502:'actions. a class may consist of contract actions for the same or related supplies or services or other contract actions', 503:'that require essentially identical justification. b the findings in a class d&f shall fully support the proposed action either for', 504:'the class as a whole or for each action. a class d&f shall be for a specified period, with the', 505:'expiration date stated in the document. c thecontracting officer shall ensure that individual actions taken pursuantto theauthority of a classd&f', 506:'are within the scopeof the d&f. 1.704content. each d&f shall set forth enough facts and circumstances to clearly and convincingly', 507:'justify the specific determination made. as a minimum, each d&f shall include, in the prescribed agency format, the following information:', 508:'a identification of the agency and of the contracting activity and specific identification of the document as a determination and', 509:'findings. b nature and/or description of the action being approved. c citation of the appropriate statute and/or regulation upon which', 510:'the d&f is based. d findings that detail the particular circumstances, facts, or reasoning essential to support the determination. necessary', 511:'supporting documentation shall be obtained from appropriate requirements and technical personnel. e a determination, based on the findings, that the', 512:'proposed action is justified under the applicable statute or regulation. f expiration date of thed&f, ifrequired see 1.706. g the', 513:'signature ofthe official authorized to sign thed&f see 1.707 and the date signed. 1.705supersession and modification. a if a d&fis', 514:'superseded by another d&f,that action shall notrender invalid any action taken under the original d&f prior to the date of', 515:'its supersession. b the contractingofficer need not cancel the solicitation if thed&f, as modified, supports the contract action. 1.706expiration. expiration', 516:'dates arerequired for class d&f’s and areoptional for individual d&f’s. authority to act under an individual d&f expires when it', 517:'is exercised or on an expiration date specified in the document, whichever occurs first. authority to act under a class', 518:'d&f expires on the expiration date specified in the document. when a solicitation has been furnished to prospective offerors before', 519:'the expiration date, the authority under the d&f willcontinue until award of the contracts resulting from the solicitation. federal acquisition', 520:'regulation 1.707 signatory authority. when ad&fis required, it shall be signed by the appropriate official in accordancewith agency regulations. authority', 521:'to sign or delegate signature authority for the various d&f’sis as shownin theapplicable far part. part 2 definitions of words', 522:'and terms sec. 2.000 scope of part. subpart 2.2 definitions clause 2.201 contract clause. subpart 2.1 definitions 2.101 definitions. this', 523:'page intentionally left blank. subpart 2.1 definitions 2.101 2.000scope of part. a this part 1 defines words and terms that', 524:'are frequently used in the far; 2 provides crossreferences to otherdefinitionsin thefar ofthe same word or term;and 3 provides for', 525:'the incorporation of these definitions in solicitations and contracts by reference. b other parts, subparts, and sections of this regulation', 526:'48 cfr chapter 1 may define other words or terms and those definitions only apply to the part, subpart, or', 527:'section where the word or term is defined. subpart 2.1 definitions 2.101definitions. a word or a term, defined in this', 528:'section, has the same meaning throughout this chapter the federal acquisition regulation far unless thecontext in which the word or', 529:'termis used clearlyrequiresa different meaning or another far part, subpart, or section providesa different definition for the particular part or', 530:'portion of thepart. if a word or term that is definedin this section is defined differently in another part,subpart, orsection', 531:'of thischapter, the definition in this section includes a crossreference to the other definitions and that part, subpart, or section', 532:'applies to the word or term when used in that part, subpart, or section. acquisition means the acquiring by contract', 533:'with appropriated funds of supplies or services including construction by and for the use of the federal government through purchase', 534:'or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. acquisition', 535:'begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation', 536:'and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly', 537:'related to the process of fulfilling agency needs by contract. acquisition planning meansthe process by which the efforts ofallpersonnel responsible', 538:'for anacquisition are coordinated and integrated through a comprehensive plan for fulfilling the agency need in a timely manner and', 539:'at a reasonable cost. it includes developing the overall strategy for managing the acquisition. activity address code aac means a', 540:'distinct sixposition code consisting of a combination of alpha and/or numeric characters assigned to identify specific agency offices, units,activities, or', 541:'organizationsby the general services administration for civilian agencies and by the department of defense for defense agencies. adequate evidence means', 542:'informationsufficient to supportthe reasonable belief that a particular act or omission has occurred. advisory and assistance services means those services', 543:'provided under contract by nongovernmental sources to support or improve: organizational policy development; decisionmaking; management and administration; program and/or project', 544:'management and administration; or r&d activities. it can also mean the furnishing of professional advice or assistance rendered to improve', 545:'theeffectiveness offederal management processes or procedures includingthose of an engineering and technical nature. in rendering the foregoing services, outputs may', 546:'take the form of information, advice, opinions, alternatives, analyses, evaluations, recommendations, training and the daytoday aid of support personnel needed', 547:'for the successful performance of ongoing federal operations. all advisory and assistance services are classified in one of the following', 548:'definitional subdivisions: 1 management and professional support services, i.e., contractual services that provide assistance, advice or training for theefficient and', 549:'effectivemanagementand operation of organizations, activities including management and support services for r&d activities, or systems. these services are normally closely', 550:'related to the basic responsibilities and mission of the agency originatingthe requirement for theacquisition of services by contract. included are', 551:'efforts thatsupport or contribute to improved organization of program management,logistics management, project monitoringand reporting,data collection, budgeting, accounting, performance auditing, and', 552:'administrative technical support for conferences and training programs. 2 studies, analyses and evaluations, i.e., contracted services that provide organized,analytical assessments/', 553:'evaluations in support of policy development, decisionmaking, management, or administration. included are studies in support of r&d activities. also included', 554:'are acquisitions of models, methodologies, and related software supporting studies, analyses or evaluations. 3 engineering and technical services, i.e., contractualservicesused', 555:'tosupport the program office duringthe acquisition cycle by providing such services as systems engineering and technical direction see 9.5051b to', 556:'ensure the effective operation and maintenance of a weapon system or major system asdefined inomb circular no.a109 or to federal', 557:'acquisition regulation provide direct support of a weapon system that is essential to research, development, production, operation or maintenance of', 558:'the system. affiliates means associated business concerns or individuals if, directly or indirectly either one controls or can control the', 559:'other; or third party controls or can control both, except as follows: 1 for use in subpart 9.4, see the', 560:'definition at 9.403. 2 for useof affiliates in size determinations, see the definition of smallbusiness concern inthis section. agency head', 561:'or head of theagency means the secretary, attorneygeneral, administrator, governor, chairperson, or other chief official of an executive agency, unless', 562:'otherwise indicated, including any deputy orassistant chiefofficial of an executive agency. alternate means a substantive variation of a basic provision', 563:'or clause prescribed for use in a defined circumstance. it adds wording to, deletes wording from, or substitutes specified wording', 564:'for a portion of the basic provision or clause. the alternate version of a provision or clause is the basic', 565:'provision or clause as changed by the addition, deletion, or substitution see 52.105a. architectengineer services, as defined in 40 u.s.c.', 566:'1102, means— 1 professionalservicesof an architectural or engineering nature,as defined by statelaw, if applicable, that are required to be performed', 567:'or approved by a person licensed, registered, or certified to provide those services; 2 professional services of an architectural or', 568:'engineering nature performed by contract that are associated with research, planning, development, design, construction, alteration, or repair of real property;', 569:'and 3 those other professional services of an architectural or engineering nature, or incidental services, that members of the architectural', 570:'and engineering professions and individuals in their employ may logically or justifiably perform, including studies, investigations, surveying and mapping, tests,', 571:'evaluations, consultations, comprehensive planning, program management, conceptual designs, plans and specifications, value engineering, construction phase services, soils engineering, drawing reviews,', 572:'preparation of operating and maintenance manuals, and other related services. assignment of claims means thetransfer or makingover bythe contractor to', 573:'abank, trust company,or other financing institution, assecurity for aloan to the contractor,of its right to be paidby the government for', 574:'contract performance. assisted acquisition means a type of interagency acquisition where a servicing agency performs acquisition activities on a requesting', 575:'agencys behalf, such as awarding and administering a contract, task order, or delivery order. basic research means that research directed', 576:'toward increasing knowledge in science. the primary aim of basic research is a fuller knowledge or understanding of the subject', 577:'under study, rather than any practical application of thatknowledge. best value means the expected outcome of an acquisition that, in', 578:'the governments estimation, provides the greatest overall benefit in response to the requirement. bid sample means aproduct sample requiredto besubmitted', 579:'by an offeror toshow characteristics of the offered products that cannot adequately be described by specifications, purchase descriptions, or the', 580:'solicitation e.g., balance, facility of use, or pattern. biobased product means a product determined by the u.s. department of agriculture', 581:'to be a commercial product or industrial product other than food or feed that is composed, in whole or in', 582:'significant part, of biological products, including renewable domestic agricultural materials and forestry materials, or that is an intermediate ingredient or', 583:'feedstock. the term includes, with respect to forestry materials, forest products that meet biobased content requirements, notwithstanding the market sharethe', 584:'product holds, the age ofthe product, or whether the market for the productis new or emerging. 7 u.s.c. 8101 7', 585:'cfr 3201.2. broad agency announcement means a general announcementof an agency’s research interest includingcriteria for selecting proposals and soliciting the', 586:'participation ofallofferorscapable of satisfying the government’s needs see 6.102d 2. building or work means construction activity as distinguished from manufacturing,', 587:'furnishing of materials, or servicing and maintenance work. the terms include, without limitation, buildings, structures, and improvements of all types,', 588:'such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, pumping stations, heavy generators, railways, airports,', 589:'terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals, dredging, shoring, rehabilitationandreactivation of plants, scaffolding, drilling, blasting, excavating,', 590:'clearing,and landscaping. the manufacture or furnishing of materials, articles, supplies, or equipment whether or not a federal or state agency', 591:'acquires title to such materials, articles, supplies, or equipment during the course of the manufacture or furnishing, or owns the', 592:'materials from which they are manufactured or furnished is not building or work within the meaning of this definition unless', 593:'conducted in connection with and at the site of such building or work as is described in the foregoing subpart', 594:'2.1 definitions 2.101 sentence, or under the united states housing act of 1937 and the housing act of 1949 in', 595:'the construction or development of the project. bundling— 1 means a subset of consolidation that combines two or more requirements', 596:'for supplies or services, previously provided or performed under separate smaller contracts see paragraph 2 of this definition, into a', 597:'solicitation for a single contract, a multipleaward contract, or a task or delivery order that is likely to be unsuitable', 598:'for award to a small business concern even if it is suitable for award to a smallbusinesswith a small business', 599:'teaming arrangement due to— ithe diversity, size, or specialized nature of the elements ofthe performancespecified; ii the aggregate dollar value', 600:'of the anticipated award; iii the geographical dispersion of the contract performance sites; or iv any combination of the factors', 601:'described in paragraphs 1i, ii, and iii of this definition. 2 separate smaller contract as used in this definition, means', 602:'a contract that has been performed by one or more small business concerns or that was suitable for award to', 603:'one or more small business concerns. business unit means any segmentof an organization, or an entire business organization that is', 604:'not dividedinto segments. certified cost or pricing data means cost or pricing data that were required tobe submitted in accordance', 605:'withfar 15.4034 and 15.4035 and have been certified, or is required to be certified, in accordance with 15.4062. this certification', 606:'states that, to the best of the person’s knowledge and belief, the cost orpricing datais accurate, complete, and current as', 607:'of a date certain before contract award. cost or pricing data is required to be certified in certain procurements 10', 608:'u.s.c. chapter 271 and 41 u.s.c. chapter 35. changeofname agreement means a legal instrument executed by the contractor and the', 609:'government that recognizes the legal change of name of the contractor without disturbing the original contractual rights and obligations of', 610:'the parties. change order means a written order, signed by the contracting officer,directing the contractor tomake a change thatthe changes', 611:'clause authorizes the contracting officer to order without the contractor’s consent. chief acquisition officer means anexecutive level acquisition official responsibleforagency', 612:'performanceof acquisition activities and acquisition programs created pursuant to 41 u.s.c. 1702. chief of mission meansthe principal officer incharge of', 613:'a diplomatic mission ofthe unitedstates or ofa united states officeabroad which isdesignated bythe secretary of stateas diplomaticin nature, including any', 614:'individualassigned under section 502c of the foreignservice act of 1980 public law 96465to betemporarily in charge of such a mission', 615:'or office. claim means a written demand or written assertion by one of the contracting parties seeking, as a matter', 616:'of right, the payment of money in a sum certain, the adjustment or interpretation of contract terms, or other relief', 617:'arising under or relating to the contract. however, a written demand or written assertion by the contractor seeking the payment', 618:'of moneyexceeding $100,000 is not a claim under 41 u.s.c. chapter 71, contractdisputes,until certified as required bythe statute. a voucher,', 619:'invoice, or other routine request for payment that is not in dispute when submitted is not a claim. the submission', 620:'may be converted to aclaim, by written notice to the contracting officer asprovided in 33.206a, if it is disputed either', 621:'as to liability or amount or is not acted upon in a reasonable time. classified acquisition means anacquisition in whichofferorsmust', 622:'have access to classified information to properly submitan offer or quotation,to understand the performance requirements, or toperformthe contract. classified contract', 623:'means any contract in which the contractor or its employees must have access to classified information during contract performance. a', 624:'contract may be a classified contract even though the contract document itself is unclassified. classified information means any knowledge that', 625:'can be communicated or any documentary material, regardless of its physical form or characteristics, that— 1 iisownedby,isproducedbyorfor,orisunderthecontroloftheunitedstatesgovernment;or iihas been classified', 626:'by the department of energyas privately generated restricted datafollowing the procedures in 10 cfr 1045.21; and 2 must be protected', 627:'against unauthorized disclosure according to executive order12958, classified national security information,april 7,1995, or classified in accordance with the atomic energyactof', 628:'1954. cognizant federal agency means the federal agency that, on behalf of all federal agencies, is responsible for establishing final', 629:'indirect cost rates and forward pricing rates, if applicable, and administering cost accounting standards for all contracts in a business', 630:'unit. combatant commander means the commander of a unified or specified combatant command established in accordance with 10 u.s.c. 161.', 631:'federal acquisition regulation commercial and government entity cage code means— 1 an identifier assigned to entities located in the united', 632:'states or its outlying areas by the defense logistics agency dla commercial and government entity cage branch to identify a', 633:'commercial or government entity by unique location; or 2 an identifierassigned by a member of the northatlantic treatyorganization nato or', 634:'by the nato supportand procurement agency nspa toentitieslocated outside theunited statesandits outlying areas that the dla commercial and government entity', 635:'cage branch records and maintains in the cage master file. this type of code is known as a natocage ncage', 636:'code. commercial component means any component that is a commercial product. commercial computer software means any computer software that is', 637:'a commercial product or commercial service. commercial product means— 1 a product, other than real property, that is of a', 638:'type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes, and– i has', 639:'been sold, leased, or licensed to the general public; or iihas been offered for sale, lease,or license to the generalpublic;', 640:'2 a product that evolved from a product described in paragraph 1 of this definition through advances in technology or', 641:'performance and that is not yet available in the commercial marketplace, but will be available in the commercial marketplace in', 642:'time to satisfy the delivery requirements under a government solicitation; 3 a product that would satisfy a criterion expressed in', 643:'paragraph 1 or 2 of this definition, except for i modifications of a type customarily available in the commercial marketplace;', 644:'or ii minor modifications of a type not customarily available in the commercial marketplace made to meet federal government requirements.', 645:'“minor modifications” means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or', 646:'component, or change the purpose of a process. factors to be considered in determining whether a modification is minor include', 647:'the value and size of the modification and the comparative value and size of the final product. dollar values and', 648:'percentages may be used as guideposts, but are not conclusive evidence that a modification is minor; 4 any combination of', 649:'products meeting the requirements of paragraph 1, 2, or 3 of this definition that are of a type customarily combined', 650:'and sold in combination to the general public; 5 a product, or combination of products, referred to in paragraphs 1', 651:'through 4 of this definition, even though theproduct, or combination of products, is transferred betweenor among separate divisions, subsidiaries, or', 652:'affiliatesof a contractor; or 6 a nondevelopmental item, if the procuring agency determines the product was developed exclusively at private', 653:'expense and sold in substantial quantities, on a competitive basis, to multiple state and local governments or to multiple foreign', 654:'governments. commercial service means— 1 installation services, maintenance services, repair services, training services, and other services if– i such services', 655:'are procured for support of a commercial product as defined in this section, regardless of whether such services are provided', 656:'by the same source or at the same time as the commercial product; and ii the source of such services', 657:'provides similar services contemporaneously to the general public under terms and conditions similar to those offered to the federal government;', 658:'2 services of a type offered and soldcompetitively insubstantial quantities in the commercialmarketplace based on established catalog or market prices', 659:'for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions. for purposes of', 660:'these services– i catalog price means a price included in a catalog, price list, schedule, or other form that is', 661:'regularly maintained by the manufacturer orvendor, iseither publishedor otherwise available for inspection bycustomers, and statesprices at which sales are currently,', 662:'orwere last, made to a significant number of buyers constituting the general public; and ii market prices means current prices', 663:'that are established in the course of ordinary trade between buyers and sellers free to bargain and thatcan be substantiated', 664:'through competition or from sources independent of the offerors; or 3 a service referred to in paragraph 1 or 2', 665:'of this definition, even though the service is transferred between or amongseparate divisions, subsidiaries, or affiliates of a contractor. commercially', 666:'available offtheshelf cots item — 1 means any item of supply including construction material that is– i a commercial product', 667:'as defined in paragraph 1 of the definition of “commercial product” in this section; subpart 2.1 definitions 2.101 ii sold', 668:'in substantial quantities in the commercial marketplace; and iii offered tothe government, under a contract or subcontract at any tier,', 669:'without modification, in the same form in which it is sold in the commercial marketplace; and 2 does not include', 670:'bulk cargo, as defined in 46 u.s.c. 401024, such as agricultural products and petroleum products. common item means material that', 671:'is common to the applicable government contract and the contractors other work, except that for use in the clause at', 672:'52.24626, see the definition in paragraph a of that clause. component means any item supplied to the government as part', 673:'of an end item or of another component, except that for use in— 1 part 25, see the definition in', 674:'25.003; 2 52.2251 and 52.2253, see the definition in 52.2251a and 52.2253a; 3 52.2259 and 52.22511, see the definition in', 675:'52.2259a and 52.22511a; and 4 52.22521 and 52.22523, see the definition in 52.22521a and 52.22523a. computer database or database means', 676:'a collection of recorded information in a form capable of, and for the purpose of, being stored in, processed, and', 677:'operated on bya computer. the term does not include computer software. computer software — 1 means i computer programs that', 678:'comprise a series of instructions, rules, routines, or statements, regardless of the media in which recorded, that allow or cause', 679:'a computer to perform a specific operation or series of operations; and ii recorded information comprising source code listings, design', 680:'details, algorithms, processes, flow charts, formulas, and related material that would enable the computer program to be produced, created, or', 681:'compiled. 2 does not include computer databases or computer software documentation. computer software documentation means owner’s manuals,user’s manuals, installation instructions,operating', 682:'instructions, and other similar items, regardless of storage medium, that explain the capabilities of the computer software or provide instructions', 683:'for using the software. consent to subcontract means the contracting officer’swritten consent for the prime contractor toenter into a particular', 684:'subcontract. consolidation or consolidated requirement— 1 means a solicitation for a single contract, a multipleaward contract, a task order, or', 685:'a delivery order tosatisfy itwo ormore requirements of thefederal agencyforsupplies orservicesthat have been provided toor performed for the federal agency', 686:'under two or more separate contracts, each of which was lower in cost than the total cost of the contract', 687:'for which offers are solicited; or ii requirements of the federal agency for construction projects to be performed at two', 688:'or more discrete sites. 2 separate contract as used in this definition, means a contract that has been performed by', 689:'any business, including small and other than small business concerns. construction means construction, alteration, or repair including dredging, excavating, and', 690:'painting of buildings, structures, or otherreal property. for purposes of thisdefinition, the terms buildings, structures, or other real property include,', 691:'but are not limited to, improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers,', 692:'mains, power lines, cemeteries, pumping stations, railways, airport facilities, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals,', 693:'and channels. construction does not include the manufacture, production, furnishing, construction,alteration, repair, processing, or assembling ofvessels, aircraft, or other kinds', 694:'of personal property except that for use in subpart 22.5, see the definition at 22.502. contiguous united states conus means', 695:'the 48 contiguous states and the district of columbia. contingency operation 10 u.s.c. 101a13 means a military operation that 1', 696:'is designated by the secretary of defense as an operation in which members of the armed forces are or may', 697:'become involved in military actions, operations, or hostilities against an enemy of the united states or against an opposing military', 698:'force; or 2 results in the call or order to, or retention on, active duty of members of the uniformed', 699:'services under sections 688, 12301a, 12302, 12304, 12304a, 12305, or 12406 of title 10 of the united states code, chapter', 700:'13 of title 10 of the united states code, and section 3713 of title 14 of the united states code,', 701:'or any other provision of law during a war or during a national emergencydeclared by the presidentor congress. continued portion', 702:'of the contract means the portion of a contract that the contractor must continue to perform following a partial termination.', 703:'federal acquisition regulation contract means a mutually binding legal relationship obligating the seller to furnish the supplies or services including', 704:'construction and the buyer to pay for them. it includes all types of commitments that obligate the government to an', 705:'expenditure of appropriated funds and that, except as otherwise authorized, are in writing. in addition to bilateral instruments, contracts include', 706:'but are not limited to awards and notices of awards; job orders or task letters issued under basic ordering agreements;', 707:'letter contracts; orders, such aspurchase orders, underwhich the contract becomes effective by written acceptance or performance; and bilateral contract modifications.', 708:'contracts do not include grants and cooperative agreements covered by 31 u.s.c.6301, et seq. for discussion of various types of', 709:'contracts, see part 16. contract administration office means an office that performs 1 assigned postaward functions related to the administration', 710:'of contracts; and 2 assigned preaward functions. contract clause or clause means a term or condition used in contracts or', 711:'in both solicitations and contracts, and applying after contract award or both before and after award. contract modification means any', 712:'written change in the terms of a contract see 43.103. contracting means purchasing, renting, leasing, or otherwise obtaining supplies or', 713:'services from nonfederal sources. contracting includes description but not determination of supplies and services required, selection and solicitation of sources,', 714:'preparation and award of contracts, and all phases of contract administration. it does not include making grants or cooperative agreements.', 715:'contracting activity means an element of an agency designated by the agency head and delegated broad authority regarding acquisition functions.', 716:'contracting office means an office that awardsor executes a contract for supplies or servicesand performs postaward functions not assigned to', 717:'a contract administrationoffice except for usein part 48, see also 48.001. contracting officer means apersonwith the authority to enter into,', 718:'administer, and/or terminate contracts and make related determinations and findings. the term includes certainauthorized representatives of the contracting officer acting', 719:'within the limitsof their authorityas delegated bythe contracting officer. administrative contracting officer aco refers to a contracting officer who isadministering', 720:'contracts. termination contracting officer tco refers to acontracting officer who is settlingterminated contracts. a single contracting officer maybe responsible for', 721:'duties in any or allof these areas. reference in this regulation 48 cfr chapter 1 to administrative contracting officer or', 722:'termination contracting officer does not 1 require that a duty be performed ata particular office or activity; or 2 restrict', 723:'in any way a contracting officer in the performance of any duty properly assigned. contracting officer’s representative cor means an', 724:'individual, including a contracting officer’s technical representative cotr, designated and authorized in writing by the contracting officer to perform specifictechnical', 725:'or administrative functions. conviction means a judgment or conviction ofa criminal offense by any court of competent jurisdiction,whetherentered upon a', 726:'verdict or a plea, and includes a conviction entered upon a plea of nolo contendere. for use in subpart 26.5,', 727:'see the definition at 26.503. cost or pricing data 10 u.s.c. 37011 and 41 u.s.c. chapter 35 means all facts', 728:'that, as of the date of price agreement, or, ifapplicable, anearlier date agreed upon betweenthe parties that isas closeas practicableto', 729:'thedate of agreement on price, prudent buyers and sellers would reasonably expect to affectprice negotiationssignificantly. cost or pricing data are', 730:'factual, not judgmental; and are verifiable. while they do notindicate the accuracy of the prospective contractor’s judgment about estimated future', 731:'costs or projections, they do include the data forming the basis for that judgment. cost or pricing data are more', 732:'than historical accounting data; they are all the facts that can be reasonably expected to contribute to the soundness of', 733:'estimates of future costs and to the validity of determinations of costs already incurred. they also include, but are not', 734:'limited to, such factors as 1 vendorquotations; 2 nonrecurring costs; 3 information on changes in production methods and in production', 735:'or purchasing volume; 4 data supporting projections of business prospects and objectives and related operations costs; 5 unitcost trends suchas', 736:'those associated with labor efficiency; 6 makeorbuy decisions; 7 estimated resources to attain business goals; and 8 information on management', 737:'decisions that could have a significant bearing on costs. cost realism meansthat the costs inan offeror’s proposal subpart 2.1 definitions', 738:'2.101 1 are realistic for the work to be performed; 2 reflect a clear understanding of the requirements; and 3', 739:'are consistentwith the various elements of the offeror’s technicalproposal. cost sharing means an explicit arrangement under which the contractor bears', 740:'some of the burden of reasonable, allocable, and allowable contract cost. customs territory of the united states means the 50', 741:'states, the district of columbia, and puerto rico. data other than certified cost or pricing data means pricing data, cost', 742:'data, and judgmental information necessary for the contracting officerto determine a fair and reasonableprice or todetermine cost realism. such datamay', 743:'includethe identical types of data ascertifiedcost or pricing data,consistent with table 152 of 15.408, but without the certification. the data', 744:'may also include, for example, sales data andanyinformationreasonably required to explain the offeror’s estimating process, including, but not limited to–', 745:'1 the judgmental factors applied and the mathematical or other methods used in the estimate, including those used in projecting', 746:'from known data; and 2 the nature and amount of any contingencies included in the proposed price. day means, unless', 747:'otherwisespecified,a calendar day. debarment means action taken bya debarring official under 9.406 to exclude a contractor from government contracting and', 748:'governmentapproved subcontracting for a reasonable, specified period; a contractor that is excluded is debarred. delivery order means an order for', 749:'supplies placed against an established contract or with government sources. depreciation meansa chargeto current operations that distributesthe cost of a', 750:'tangible capital asset, lessestimated residual value, over the estimated useful life ofthe asset in a systematic and logical manner. it', 751:'does notinvolve a process of valuation. usefullife refersto the prospective period of economicusefulness in aparticular contractor’s operations as distinguished from', 752:'physical life; it is evidenced by the actual or estimated retirement and replacement practice of the contractor. descriptive literature means', 753:'information provided by anofferor,such as cuts, illustrations, drawings, and brochures, that shows aproduct’s characteristics or construction of a product or', 754:'explainsits operation. the termincludes only that information needed to evaluate the acceptability of the product and excludes other information for', 755:'operating or maintaining the product. designtocost means a concept that establishes cost elements as management goals to achieve the best', 756:'balance between lifecycle cost, acceptable performance, and schedule. under this concept, cost is a design constraint during the design and', 757:'development phases and a management discipline throughout the acquisition and operation of the system or equipment. designated operational area means', 758:'a geographic area designated by the combatant commander or subordinate joint force commander for the conduct or support of specified', 759:'military operations. direct acquisition means a type of interagency acquisition where a requesting agency places an order directly against a', 760:'servicing agency’s indefinitedeliverycontract. the servicing agency manages theindefinitedelivery contract but does not participate inthe placement or administration of an order.', 761:'direct cost means any cost that is identified specifically with a particular final cost objective. direct costs are not limited', 762:'to items that are incorporated in the endproduct as material orlabor. costsidentified specifically witha contract aredirect costs of that contract.', 763:'all costs identified specifically with other final cost objectives of the contractor are direct costs of those cost objectives. disaster', 764:'response registry means a voluntary registry of contractors who are willing to perform debris removal, distribution of supplies, reconstruction,and otherdisaster', 765:'or emergency relief activities establishedin accordance with 6 u.s.c. 796, registry of disaster response contractors. the registry contains information on', 766:'contractors who are willing to perform disaster oremergency relief activities within theunited statesandits outlying areas. the registry isaccessed via the', 767:'internet at https://www.sam.gov, search records, advanced search, disaster response registry search. see 26.205. drugfree workplace means the sites for the', 768:'performance of work done by the contractor in connection with a specific contract where employees of the contractor are prohibited', 769:'from engaging in the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance. earned value management system means', 770:'aprojectmanagementtool thateffectivelyintegrates the project scope of work with cost, schedule and performance elements for optimum project planning and control. the', 771:'qualities and operating characteristics of an earned value management system are described in electronic industries alliance standard 748 eia748, earned', 772:'value management systems. see omb circular a11, part 7. economically disadvantaged womenowned small business edwosb concernsee definition of womenowned small', 773:'business wosb program in this section. federal acquisition regulation effective date of termination means the date on which the notice', 774:'of termination requires the contractor to stop performance underthe contract. if thecontractor receives the termination notice after the datefixedfortermination, then', 775:'theeffective date of termination means the date the contractor receives the notice. electronic commerce means electronic techniques for accomplishing business', 776:'transactions including electronic mail or messaging, world wide web technology,electronic bulletinboards, purchase cards, electronic funds transfer, and electronic data interchange.', 777:'electronic data interchange edi means a technique for electronically transferring and storing formatted information between computers utilizing established and published', 778:'formats and codes, as authorized by the applicable federal information processing standards. electronic funds transfer eft means any transfer of', 779:'funds, other than a transaction originated by cash, check, or similar paper instrument,that isinitiated through an electronic terminal, telephone, computer,', 780:'or magnetic tape, for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit an account.', 781:'the term includes automated clearing house transfers, fedwire transfers, and transfers made at automatic teller machines and pointofsale terminals. for', 782:'purposes of compliance with 31 u.s.c.3332 and implementing regulations at 31 cfr part 208, the term electronic funds transfer includes', 783:'a governmentwide commercial purchase card transaction. electronic funds transfer eft indicator meansa fourcharactersuffix to the unique entity identifier. thesuffix is', 784:'assigned atthe discretion of the commercial, nonprofit, or government entityto establish additional system for award management records for identifying alternative', 785:'eft accounts see subpart 32.11 for the sameentity. emergency, as used in 6.208, 13.201, 13.500, 18.001, 18.202, 18.203, and subpart', 786:'26.2, means any occasion or instance for which, in the determination of the president, federal assistance is neededto supplement state', 787:'and localefforts and capabilities to save lives and to protect property and public health and safety, or to lessen or', 788:'avertthe threat ofa catastrophe in any part of the united states 42 u.s.c. 5122. end product means supplies delivered under', 789:'a line item of a government contract, except for use in part 25 and the associated clauses at 52.2251, 52.2253,', 790:'and 52.2255, see the definitions in 25.003, 52.2251a, 52.2253a, and 52.2255a. energyefficient product— 1 means a product that– imeets departmentof', 791:'energyand environmental protection agency criteria for use ofthe energy star trademark label; or iiisin the upper 25 percent of efficiency', 792:'for all similar products as designated by thedepartment ofenergy’s federalenergy management program. 2 asused inthis definition, theterm product doesnot include', 793:'any energyconsuming product or systemdesigned or procured for combat or combatrelated missions 42 u.s.c. 8259b. energyefficient standby power devices means', 794:'products that use— 1 external standby power devices, or that contain an internal standby power function; and 2 no more', 795:'than one watt of electricity in their standby power consuming mode or meet recommended low standby levels as designated by', 796:'the department of energyfederal energy management program. energy savings performance contract, pursuant to 42 u.s.c. 8287 and 10 cfr 436.31,', 797:'means a contract that requires the contractor to— 1 perform services for the design, acquisition, financing, installation, testing, operation, and', 798:'where appropriate, maintenance andrepair, of anidentified energy conservationmeasure or series ofmeasures at one or more locations; 2 incur the costsof', 799:'implementing the energy savings measures, including atleast the cost if anyincurred in making energy audits,acquiring and installing equipment,andtraining personnel inexchange', 800:'for a predetermined shareof the value of the energy savings directly resultingfrom implementationof such measures during the term of the', 801:'contract; and 3 guarantee futureenergyandcostsavings to the government. environmentally preferable means,in thecaseof aproduct or service, having a lesser or reducedeffect', 802:'on human health and the environment when compared with competing products or services that serve the same purpose. this comparison', 803:'may consider raw materials acquisition, production, manufacturing, packaging, distribution, reuse, operation, maintenance, or disposal of the product or service. section', 804:'314 of pub. l. 107314, 10 u.s.c. chapter 223 note excess personal property means any personal property under the control', 805:'of a federal agency that the agency head determines is not required for its needs or for thedischarge of itsresponsibilities.', 806:'subpart 2.1 definitions 2.101 executive agency means an executive department, a military department, or any independent establishment within the meaning', 807:'of 5 u.s.c.101,102, and 1041, respectively,andany wholly owned government corporationwithin themeaning of 31 u.s.c. 9101. facilities capital cost of money', 808:'means cost of money as an element of the cost of facilities capital as used at 48 cfr 9904.414cost accounting', 809:'standardcost of money as an element of the cost of facilities capital. federal agency means any executive agency or any', 810:'independent establishment in the legislative or judicial branch of the government except the senate, the house of representatives, the architect', 811:'of the capitol, and any activities under the architect’s direction. federallycontrolled facilities means— 1 federallyowned buildings or leased space, whether', 812:'for single or multitenant occupancy, and its grounds and approaches, all or any portion of which is under the jurisdiction,', 813:'custody or control of a department or agency; 2 federallycontrolled commercial space shared with nongovernment tenants. for example, if a', 814:'department or agency leased the 10th floor of a commercial building, the directive applies to the 10th floor only; 3', 815:'governmentowned, contractoroperated facilities, including laboratories engaged in national defense research and production activities; and 4 facilities under a management and', 816:'operating contract, such as for the operation, maintenance, or support of a governmentowned or governmentcontrolled research, development, special production, or', 817:'testing establishment. federallycontrolled information system means an information system 44 u.s.c. 35028 used or operated by a federal agency, or', 818:'a contractor or otherorganization on behalf of the agency 44 u.s.c. 3544a1a. federally funded research and development centers ffrdc’s means', 819:'activities that are sponsored under a broad charter by a government agency or agencies for the purpose of performing, analyzing,', 820:'integrating, supporting, and/or managing basic or applied research and/or development, and that receive 70 percent or more of their financial', 821:'support from the government; and 1 a longterm relationship is contemplated; 2 most or all of the facilities are owned', 822:'or funded by the government; and 3 the ffrdc has access to government and supplier data, employees, and facilities beyond', 823:'that common in a normal contractual relationship. final indirect cost rate means the indirect cost rate established and agreed upon', 824:'by the government and the contractor as notsubject to change. it is usually established after the close of the contractor’s', 825:'fiscal year unless the parties decide upona different periodto whichitapplies. forcostreimbursementresearchand developmentcontracts witheducational institutions, it may be predetermined; that is,', 826:'established for a future period on the basis of cost experience with similar contracts, together with supporting data. first article', 827:'means a preproduction model, initial production sample, test sample, first lot, pilot lot, or pilot models. first article testing means', 828:'testing and evaluating the first article for conformance with specified contract requirements before or in the initial stage of production.', 829:'f.o.b. means free on board. this term is used in conjunction with a physical point to determine 1 the responsibility', 830:'andbasis for payment offreight charges; and 2 unless otherwise agreed, the point where title for goods passes to the buyer', 831:'or consignee. f.o.b. destination means free on board at destination; i.e., the seller or consignordelivers the goods on seller’s or', 832:'consignor’s conveyance at destination. unless thecontract provides otherwise, the seller or consignoris responsible for the cost of shipping and risk', 833:'of loss. for use in the clause at 52.24734, see the definition at 52.24734a. f.o.b. origin means free on board', 834:'at origin; i.e., the seller or consignor places the goods on the conveyance. unless the contract provides otherwise, the buyer', 835:'or consignee is responsible for the cost of shipping and risk of loss. for use in the clause at 52.24729,', 836:'see the definition at 52.24729a. f.o.b for other types of f.o.b., see 47.303. forward pricing rate agreement means a written', 837:'agreement negotiated between a contractor and the government to make certain rates available during a specified period for use in', 838:'pricing contracts or modifications. these rates represent reasonable projections of specific costs thatare not easily estimated for, identified with, or', 839:'generated bya specific contract,contract end item,or task. these projections may include rates for such things as labor, indirect costs,material obsolescence', 840:'and usage, spare parts provisioning, and material handling. forward pricing rate recommendation means a rate set unilaterally bythe administrative contracting', 841:'officer for use by the government in negotiations or other contract actions when forward pricing rate agreement negotiations have not', 842:'been completed or when the contractor will not agree to a forward pricing rate agreement. federal acquisition regulation freight means', 843:'supplies,goods, and transportable property. full and open competition, when used with respect to a contract action, means that all responsible', 844:'sources are permitted to compete. general and administrative g&a expense means any management, financial, and other expense which is incurred', 845:'by or allocated to a business unit and which is for the general management and administration of the business unit', 846:'as a whole. g&a expense does not include those management expenses whose beneficial or causal relationship to cost objectives can', 847:'be more directly measured by a base other than a cost input base representing the total activity of a business', 848:'unit during a cost accounting period. governmentwide acquisition contract gwac means a taskorder or deliveryorder contract for information technology established', 849:'by one agency for governmentwide use that is operated 1 by anexecutive agent designated by the office of management and', 850:'budget pursuant to 40 u.s.c. 11302e; or 2 under a delegation of procurement authority issued by the general services administration', 851:'gsa prior to august 7,1996, under authority granted gsa by former section 40 u.s.c. 759, repealed by pub. l. 104106.', 852:'the economy act does not apply to orders under a governmentwide acquisition contract. governmentwide point of entry gpe means the', 853:'single point where government business opportunities greater than $25,000, including synopses of proposed contract actions, solicitations, and associated information, can', 854:'be accessed electronically by the public. the gpe is located at https://www.sam.gov. head of the agency see agency head. head', 855:'of the contracting activity means the official whohas overall responsibility for managingthe contracting activity. historically black college or university means', 856:'an institution determined by the secretary of education to meet the requirements of 34 cfr 608.2. hubzone means a historically', 857:'underutilized business zone that is an area located within one or more qualified census tracts, qualified nonmetropolitan counties, lands within', 858:'the external boundaries of an indian reservation, qualified base closure areas, redesignated areas, governordesignated covered areas, or qualified disaster areas,', 859:'as defined in 13 cfr 126.103. hubzone contract means a contract awarded to a small business administration certified hubzone small', 860:'business concern through any of the following procurement methods: 1 a solesource award to a hubzone small business concern. 2', 861:'setaside awards based on competition restricted to hubzone small business concerns. 3 awards to hubzone small business concerns through full', 862:'and open competition aftera priceevaluation preference in favor of hubzone small business concerns. 4 awards based on a reserve for', 863:'hubzone small business concernsin a solicitationfora multipleawardcontract. hubzone small business concern means a small business concern that meets the requirements', 864:'described in 13 cfr 126.200, is certified by the small business administration sba and designated by sba as a hubzone', 865:'small business concern in the dynamic small business search dsbs 13 cfr 126.103. sbas designation also appears in sam. humanitarian', 866:'or peacekeeping operation means a military operation in support of the provision of humanitarian or foreign disaster assistance or in', 867:'support of a peacekeeping operation under chapter vi or vii of the charter of the united nations. the term does', 868:'not include routine training, force rotation, or stationing 10 u.s.c. 30152 and 41 u.s.c. 1532. in writing, writing, or written', 869:'means any worded or numbered expression that can be read, reproduced, and later communicated, and includes electronically transmitted and stored', 870:'information. indirect cost means any cost not directly identified with a single final cost objective, but identified with two or', 871:'more final cost objectives or with at least one intermediate cost objective. indirect cost rate means the percentage or dollar', 872:'factor that expresses the ratio of indirect expense incurred in a given period to direct labor cost, manufacturing cost, or', 873:'another appropriate base for the same period see also final indirect cost rate. ineligible means excluded from governmentcontracting andsubcontracting, if', 874:'appropriate pursuant to statutory, executive order, or regulatory authority other thanthisregulation 48 cfr chapter 1 and itsimplementing and supplementing regulations;', 875:'for example, pursuant to– 1 40 u.s.c. chapter 31, subchapter iv, wage rate requirements construction, and its related statutes and', 876:'implementing regulations; 2 41 u.s.c. chapter 67, service contract labor standards; 3 the equal employment opportunity acts and executive orders;', 877:'4 41 u.s.c. chapter 65, contracts for material, supplies, articles, and equipment exceeding $10,000; subpart 2.1 definitions 2.101 5 41', 878:'u.s.c. chapter 83, buy american; or 6 the environmental protection acts and executive orders. information and communication technology ict means', 879:'information technology and other equipment, systems, technologies,or processes,forwhich the principal function is the creation, manipulation, storage, display, receipt, or transmission', 880:'of electronic data and information, as well as any associated content. examples of ict include but are not limited to', 881:'the following: computers and peripheral equipment; information kiosks and transaction machines; telecommunications equipment;customerpremises equipment;multifunctionoffice machines; software; applications; websites; videos; and', 882:'electronic documents. information security means protecting information and information systems from unauthorized access, use, disclosure, disruption, modification, or destruction in', 883:'order to provide 1 integrity, which means guarding against improperinformation modificationor destruction, andincludes ensuring information nonrepudiation and authenticity; 2 confidentiality,', 884:'which means preservingauthorized restrictions onaccess and disclosure, includingmeans for protecting personal privacy and proprietary information; and 3 availability, which meansensuring', 885:'timely and reliable access to, and use of, information. information technology means any equipment, or interconnected systems or subsystems of', 886:'equipment, that is used in theautomaticacquisition, storage,analysis, evaluation, manipulation,management,movement,control, display, switching, interchange, transmission,or reception ofdata or information by the agency.', 887:'1 for purposes of this definition, equipment is used by an agency if the equipment is used by the agency', 888:'directly or is used by a contractor under a contract with the agency that requires i its use; or iito', 889:'a significant extent, itsuse in the performance of a service or the furnishing of a product. 2 the term information', 890:'technology includes computers, ancillary equipment including imaging peripherals, input, output, and storage devices necessary for security and surveillance, peripheral equipment', 891:'designed to be controlled by the central processing unitof acomputer, software, firmwareand similarprocedures,servicesincludingsupport services, and related resources. 3 the term', 892:'information technology does not include any equipment that i is acquired by a contractor incidental to a contract; or ii', 893:'contains imbedded information technology that is used as an integral part of the product, but the principal function of which', 894:'is not the acquisition, storage, analysis, evaluation, manipulation, management, movement, control, display, switching, interchange, transmission, or receptionof data orinformation. for', 895:'example, hvacheating, ventilation, and air conditioning equipment, such as thermostats or temperature control devices, and medical equipment where information technology', 896:'is integral to its operation, are not information technology. inherently governmental function means,as amatter of policy,a functionthat isso intimatelyrelated to', 897:'the public interest as to mandate performance by government employees. this definition is a policy determination, not a legal determination.', 898:'an inherently governmental function includes activities that require either the exercise of discretion in applying government authority, or the making', 899:'ofvalue judgments in makingdecisions for the government. governmental functionsnormally fall into two categories: the act of governing, i.e., the discretionaryexercise', 900:'of government authority, and monetarytransactions and entitlements. 1 an inherently governmental function involves, among other things, the interpretation and execution', 901:'of the laws of the united states so as to ibind the united states to take or not to take', 902:'some action by contract, policy, regulation, authorization, order, or otherwise; iidetermine,protect, and advance united states economic, political, territorial, property, or', 903:'other interests by military or diplomatic action, civil or criminal judicial proceedings, contract management, or otherwise; iii significantlyaffect the life,', 904:'liberty, or property of private persons; iv commission, appoint, direct, orcontrol officers or employees of the united states; or v', 905:'exert ultimatecontrol over theacquisition,use, or disposition of theproperty, realor personal,tangible or intangible, of the united states, including the collection, control,', 906:'or disbursement of federal funds. 2 inherently governmental functions do not normally include gathering information for or providing advice, opinions,', 907:'recommendations,or ideas to government officials. they also do not include functions thatare primarilyministerial and internal in nature, such as building', 908:'security, mail operations, operation of cafeterias, housekeeping, facilities operations and federal acquisition regulation maintenance, warehouse operations, motor vehicle fleet management', 909:'operations, or other routine electrical or mechanical services. inspection means examining and testing supplies or services including, when appropriate, raw', 910:'materials, components, and intermediate assemblies to determine whether they conform to contract requirements. insurance means a contract that provides that', 911:'for a stipulated consideration, one party undertakes to indemnify another against loss, damage, or liability arising from an unknown or', 912:'contingent event. interagency acquisition means a procedure by which an agency needing supplies or services the requesting agency obtains them', 913:'from another agency the servicing agency, by an assisted acquisition or a direct acquisition. the term includes — 1 acquisitions', 914:'under the economy act 31 u.s.c. 1535; and 2 noneconomy act acquisitions completed under other statutory authorities, e.g., general services', 915:'administration federalsupply schedules in subpart 8.4 andgovernmentwide acquisitioncontracts gwacs. invoice means a contractor’s bill or writtenrequest for payment under the', 916:'contract for supplies delivered or services performed see also proper invoice. irrevocable letter of credit means a written commitment by', 917:'a federally insured financial institution to pay all or part of a stated amount ofmoney,until theexpiration date ofthe letter, upon', 918:'the government’s the beneficiary presentation of a written demand for payment. neither the financial institution northe offeror/contractor canrevoke or conditionthe', 919:'letter of credit. labor surplus area means a geographical area identified by the department of labor in accordance with 20', 920:'cfr part 654, subpart a, as an area of concentrated unemployment or underemployment or an area of labor surplus. labor', 921:'surplus area concern means a concern that together with its firsttier subcontractors will perform substantially in labor surplus areas. performance', 922:'is substantially in labor surplus areas if the costs incurred under the contract on account of manufacturing, production, or performance', 923:'of appropriate services in labor surplus areas exceed 50 percent of the contract price. latent defect means a defect that', 924:'exists at the time of acceptance but cannot be discovered by a reasonable inspection. line item meansthe basic structural element', 925:'in aprocurement instrument thatdescribes and organizesthe required product or service for pricing, delivery, inspection, acceptance, invoicing, and payment. theuse of', 926:'the term line item includes subline item, as applicable. line item number means either a numeric or alphanumeric format to', 927:'identify a line item. major disaster, as used in 6.208, 13.201, 13.500, 18.001, 18.202, 18.203, and subpart 26.2, means any', 928:'natural catastrophe including any hurricane, tornado, storm, highwater, winddriven water, tidal wave, tsunami, earthquake, volcanic eruption, landslide, mudslide, snowstorm, or', 929:'drought, or regardless of cause, any fire, flood, or explosion, in any part of the united states,which, in the determination', 930:'of thepresident, causes damage of sufficient severity and magnitude to warrant major disaster assistance under the stafford act tosupplement the', 931:'efforts andavailableresources of states,local governments, and disaster relieforganizations in alleviating the damage, loss, hardship, or suffering caused thereby 42 u.s.c.', 932:'5122. major system means that combination of elements that will function together to produce the capabilities required to fulfill a', 933:'mission need. the elements may include hardware, equipment, software, or any combination thereof, but exclude constructionor other improvements to real', 934:'property. a systemis amajorsystem if 1 the department of defense is responsible for the system and the total expenditures for', 935:'research, development, test, and evaluation for the system are estimated to be more than $185 million basedon fiscal year2014 constant', 936:'dollars or the eventual totalexpenditure for the acquisition exceeds $835 million based onfiscal year 2014 constant dollarsoranyupdate of these thresholds', 937:'based on a morerecent fiscal year, as specified in the dodinstruction 5000.02, operation of the defense acquisition system; 2 a', 938:'civilian agency is responsible for the system and total expenditures for the system are estimated to exceed $2.5 million orthe', 939:'dollar threshold for a majorsystem established bythe agencypursuant to office of management andbudget circular a109, entitled major system acquisitions, whichever', 940:'is greater; or 3 the system is designated a major system by the head of the agency responsible for the', 941:'system 10 u.s.c. 3041 and 41 u.s.c. 109. makeorbuy program meansthat part of a contractor’s written plan for a contract', 942:'identifying those major itemsto be produced or work efforts to be performedin theprimecontractor’sfacilities and those to be subcontracted. manufactured end', 943:'product means any end product in product and service codes psc 10009999, except 1 psc 5510, lumber and related basicwood', 944:'materials; 2 product or service group psg 87, agricultural supplies; subpart 2.1 definitions 2.101 3 psg 88, live animals; 4', 945:'psg 89, subsistence; 5 psc 9410, crude grades of plant materials; 6 psc 9430, miscellaneous crude animal products, inedible; 7', 946:'psc 9440, miscellaneous crude agricultural and forestry products; 8 psc 9610, ores; 9 psc 9620, minerals, natural and synthetic; and', 947:'10 psc 9630, additive metal materials. market research means collecting and analyzing information about capabilities within the market to satisfy', 948:'agency needs. master solicitation means a document containing special clauses and provisions that have been identified as essential for theacquisition', 949:'of a specific type of supply or service that is acquired repetitively. may denotes thepermissive. however,the words no personmay mean', 950:'thatno person is required, authorized, or permitted to do the act described. micropurchase means an acquisition of supplies or services', 951:'using simplified acquisition procedures, the aggregate amount of which does not exceed the micropurchase threshold. micropurchase threshold means $10,000, except', 952:'it means 1 for acquisitions of construction subject to 40 u.s.c. chapter 31, subchapter iv, wage rate requirements construction, $2,000;', 953:'2 for acquisitions of services subject to 41 u.s.c. chapter 67, service contract labor standards, $2,500; 3 for acquisitions of', 954:'supplies or services that, as determined by the head of theagency, are to be usedto support a contingencyoperation; tofacilitate defense', 955:'against or recovery from cyber, nuclear, biological, chemical or radiological attack; to support a request from the secretary of state', 956:'or the administrator of the united states agency for international development to facilitate provision of international disaster assistance pursuant to', 957:'22 u.s.c. 2292 et seq. ; or to support response to an emergency or major disaster 42 u.s.c. 5122, as', 958:'described in 13.201g1, except for construction subject to 40 u.s.c. chapter 31, subchapter iv, wage rate requirements construction 41 u.s.c.', 959:'1903– i $20,000 in the case of any contract to be awarded and performed, or purchase to be made, inside', 960:'the united states; and ii $35,000 in the case of any contract to be awarded and performed, or purchase to', 961:'be made, outside the united states; and 4 for acquisitions of supplies or services from institutions of higher education 20', 962:'u.s.c. 1001a or related or affiliated nonprofitentities, or from nonprofit research organizations or independent research institutes— i $10,000; or ii', 963:'a higher threshold, as determined appropriate by the head of the agency and consistent with clean audit findings under 31', 964:'u.s.c. chapter 75, requirements for singleaudits;an internal institutional risk assessment; or state law. minority institution means an institution of higher', 965:'education meeting the requirements of section 3653 of the higher education act of 1965 20 u.s.c. 1067k, including a hispanicserving', 966:'institution of higher education, as defined in section 502a of the act 20 u.s.c. 1101a. multiagency contract mac means a', 967:'taskorder or deliveryorder contract established by one agency for use by government agencies to obtain supplies and services, consistent with', 968:'the economy act see 17.5022. multiagency contracts include contracts for information technology established pursuant to 40 u.s.c. 11314a2. multipleaward contract', 969:'means a contract that is— 1 a multipleawardschedulecontract issued bygsa e.g., gsa schedule contract or agencies granted multiple award schedule', 970:'contract authority by gsa e.g.,departmentofveteransaffairsasdescribedinfarpart 38; 2 a multipleaward taskorder or deliveryorder contract issued inaccordance withfar subpart 16.5, including governmentwide', 971:'acquisition contracts; or 3 any other indefinitedelivery, indefinitequantity contract entered into with two or more sources pursuant to the same', 972:'solicitation. must see shall. national defense means any activity related to programs for military or atomicenergyproduction or construction, military assistance', 973:'to any foreign nation, stockpiling, or space, except that for use in subpart 11.6, see the definition in 11.601. neutral', 974:'person means an impartial third party, who serves as amediator, fact finder, or arbitrator, or otherwise functions to assist the', 975:'parties to resolve the issuesin controversy. aneutralperson maybe a permanent or temporary officer oremployee of the federal government orany otherindividual', 976:'who is acceptableto theparties. a neutral person must have no official, federal acquisition regulation financial, or personal conflict of interest', 977:'with respect to the issues in controversy, unless the interestis fully disclosedin writing to all parties and all parties agree', 978:'that the neutral person may serve 5 u.s.c. 583. nondevelopmental item means— 1 any previously developed itemof supply used exclusively', 979:'for governmental purposes by a federal agency, a state or local government, or a foreign government with which the united', 980:'states has a mutual defense cooperation agreement; 2 any item described in paragraph 1 of this definition that requires only', 981:'minor modification or modifications of a type customarily available in the commercial marketplace in order to meet the requirements of', 982:'the procuring department or agency; or 3 any item of supply being produced that does not meet the requirements of', 983:'paragraphs 1 or 2 solely because the item is not yet in use. novation agreement means a legal instrument 1', 984:'executed by the i contractor transferor; ii successor in interest transferee; and iii government; and 2 by which, among other', 985:'things, the transferor guarantees performance of the contract, the transferee assumes all obligations under the contract, and the government recognizes', 986:'the transfer of the contract and related assets. offer means a response to a solicitation that, if accepted, would bind', 987:'the offeror to performthe resultant contract. responsesto invitations for bids sealedbiddingare offerscalled bids or sealed bids; responses to requests for', 988:'proposals negotiation are offers called proposals;however,responses to requestsforquotations simplified acquisition are quotations, not offers. for unsolicited proposals, see subpart 15.6.', 989:'offeror means offeror or bidder. office of small and disadvantaged business utilization means the office ofsmallbusiness programswhen referring to the', 990:'department of defense. omb uniform guidance at 2 cfr part 200 is the abbreviated title for uniform administrative requirements, cost', 991:'principles, and audit requirements for federal awards 2 cfr part 200, which supersedes omb circulars a21, a87, a89, a102,a110, a122,', 992:'and a133, and the guidance in circular a50 onaudit followup. option means a unilateral right in a contract by which,', 993:'for a specified time, the government may elect to purchase additional supplies or services called for by the contract, or', 994:'may elect to extend the term of the contract. organizational conflict of interest means that because of other activities or', 995:'relationships with other persons, a person is unable or potentially unable torender impartial assistance or advice tothe government, or the', 996:'person’s objectivity in performing the contract work is or might be otherwise impaired, or a person has an unfair competitive', 997:'advantage. outlying areas means 1 commonwealths i puerto rico. ii the northern mariana islands; 2 territories. i american samoa. ii', 998:'guam. iii u.s. virgin islands; and 3 minor outlying islands. i baker island. ii howland island. iii jarvis island. iv', 999:'johnston atoll. v kingman reef. vi midway islands. vii navassa island. viii palmyra atoll. ix wake atoll. overtime means time', 1000:'worked bya contractor’s employee in excess ofthe employee’s normal workweek. subpart 2.1 definitions 2.101 overtime premium means the difference between', 1001:'the contractor’s regular rate of pay to an employeeforthe shift involved and the higher rate paid for overtime. it does', 1002:'not include shift premium, i.e., thedifference between the contractorsregular rate of pay to an employee and the higher rate paid', 1003:'for extrapayshift work. partial termination means the termination of a part, but not all, of the work that has not', 1004:'been completed and accepted under a contract. past performance means an offeror’s or contractor’sperformance on active and physically completed contractssee', 1005:'4.8044. performancebased acquisition pba means an acquisition structured around the results to be achieved as opposed to the manner by', 1006:'which the work is to be performed. performance work statement pws means a statement of work for performancebased acquisitions that', 1007:'describes the required resultsin clear, specificand objectiveterms with measurable outcomes. personal property meanspropertyof any kind or interest in it except', 1008:'real property, records ofthe federalgovernment, and naval vessels of the following categories: 1 battleships; 2 cruisers; 3 aircraft carriers; 4', 1009:'destroyers; and 5 submarines. personal services contract means a contract that, by its express terms or as administered, makes the', 1010:'contractor personnel appear to be,in effect, government employeessee 37.104. plant clearance officer means an authorized representative of the contracting officer,appointed', 1011:'in accordance with agency procedures, responsible for screening, redistributing, and disposing ofcontractor inventory froma contractor’s plantor work site. theterm contractor’s', 1012:'plant includes, but is notlimited to, governmentowned contractoroperated plants, federal installations, and federal and nonfederal industrial operations, as may be', 1013:'required under the scope of the contract. pollution prevention means any practice that 1 i reduces the amount of any', 1014:'hazardous substance, pollutant, or contaminant entering any waste stream or otherwise released into the environment including fugitive emissions prior to', 1015:'recycling, treatment, or disposal; and ii reduces the hazards to public health and the environment associated with the release of', 1016:'such substances, pollutants, and contaminants; 2 reduces or eliminates the creation ofpollutants through increased efficiency in the use of rawmaterials,', 1017:'energy, water, orother resources; or 3 protects natural resources by conservation. power of attorney meansthe authoritygiven one person orcorporation to', 1018:'actforand obligateanother,as specified inthe instrument creating the power; in corporate suretyship, an instrument under seal that appoints an attorneyinfact to', 1019:'act in behalf of a surety company in signing bonds see also attorneyinfact at 28.001. preaward survey means an evaluation', 1020:'ofa prospective contractor’s capability to perform a proposed contract. preponderance of the evidence means proof by information that, compared with', 1021:'that opposing it, leads to the conclusion that the fact at issue is more probably true than not. pricing means', 1022:'the process of establishing a reasonable amount or amounts to be paid for supplies or services. principal means an officer,', 1023:'director, owner,partner, or a personhaving primarymanagementor supervisory responsibilities within a business entity e.g., general manager; plant manager; head of a', 1024:'division or business segment; and similar positions. procurement see acquisition. procuring activity means a component of an executive agency having', 1025:'a significant acquisition function and designated as suchby the head ofthe agency. unlessagency regulations specify otherwise,the term procuring activity is', 1026:'synonymous with contracting activity. products has the same meaning as supplies. projected average loss means the estimated longterm average loss', 1027:'per period for periods of comparable exposure to risk of loss. proper invoice means an invoice that meets the minimum', 1028:'standards specified in 32.905b. purchase order, when issued by the government, means an offer by thegovernment to buy supplies or', 1029:'services, including construction and research and development, upon specified terms and conditions, using simplified acquisition procedures. federal acquisition regulation qualification', 1030:'requirement means a government requirement for testing or other quality assurance demonstration that must be completed before award of a', 1031:'contract. qualified products list qpl means a list of products that have been examined, tested, and have satisfied all applicable', 1032:'qualification requirements. qualifying offeror, as used in 13.1061 and 15.304, means an offeror thatis determined to be a responsible source,', 1033:'submits a technically acceptableproposal that conforms to the requirements of the solicitation, and the contracting officer has no reason to', 1034:'believe would be likely to offerother thanfair and reasonable pricing 10 u.s.c. 3206c4. receiving report means written evidence that indicates', 1035:'government acceptance of supplies delivered or services performed see subpart 46.6. receiving reports must meet the requirements of 32.905c. recovered', 1036:'material means waste materials and byproducts recovered or diverted from solid waste, but the term does not include those materials', 1037:'and byproducts generated from, and commonly reused within, an original manufacturing process 42 u.s.c. 6903. registered in the system for', 1038:'award management sam means that— 1 the contractor has entered all mandatory information, including the unique entity identifier and the', 1039:'electronic funds transferindicator if applicable, thecommercial and government entity cage code, as well as data required by thefederal fundingaccountability and', 1040:'transparency act of 2006 see subpart 4.14, into sam; 2 the contractor has completed the core, assertions, representations and certifications,', 1041:'and points of contact sections of the registration in sam; 3 the government has validated all mandatory data fields, toinclude', 1042:'validation of the taxpayer identification number tin with the internal revenue service irs. the contractor will be required to provide', 1043:'consent for tin validation to the government as a part of the sam registration process; and 4 the government has', 1044:'marked the record active. requesting agency means the agency that has the requirement for an interagency acquisition. residual value means', 1045:'the proceeds, lessremoval and disposal costs, if any, realizedupon disposition ofa tangible capital asset. it usually is measured by the', 1046:'net proceeds from the sale or other disposition of the asset, or its fair value if the asset is traded', 1047:'in on another asset. the estimated residual value is a current forecast of the residual value. responsible audit agency means', 1048:'the agency that is responsible for performing all required contract audit services at a business unit. responsible prospective contractor means', 1049:'a contractor that meets the standards in 9.104. reverse auction means the process for obtaining pricing, usuallysupported by anelectronic tool,in', 1050:'which offerors see competing offerors prices, withoutdisclosure of the competing offerors identity,andhavethe opportunityto submit lower priced offersuntil the close ofthe', 1051:'auction. scrap means personal property that has no value except its basicmetallic, mineral, or organic content. segment meansoneof twoor more', 1052:'divisions, product departments, plants, or othersubdivisions of anorganization reporting directly to ahome office,usually identified withresponsibilityforprofit and/or producinga productor service. the', 1053:'term includes 1 governmentowned contractoroperated goco facilities; and 2 joint ventures and subsidiaries domestic and foreign inwhich the organization has', 1054:'i a majority ownership; or ii less than a majority ownership, but over which it exercises control. selfinsurance means the', 1055:'assumption or retention of the risk of loss by the contractor,whethervoluntarily or involuntarily. selfinsurance includes the deductible portion of purchased', 1056:'insurance. senior procurement executive means the individual appointed pursuant to 41 u.s.c. 1702c who is responsible for management direction of', 1057:'theacquisition system of theexecutive agency, includingimplementation of theunique acquisition policies,regulations, and standardsof the executive agency. servicedisabled veteranowned small business sdvosb', 1058:'concern means a small business concern– 1 inotlessthan51percentofwhichisownedandcontrolledbyoneormoreservicedisabledveteransor,inthe case of any publicly owned business, not less than 51 percent of', 1059:'the stock of which is owned by one or more servicedisabled veterans; and ii the management and daily business operations', 1060:'of which are controlled by one or more servicedisabled veterans or, in the case of a servicedisabledveteran with permanent and', 1061:'severe disability, the spouse or permanent caregiver of such veteran; or subpart 2.1 definitions 2.101 2 a small business concern', 1062:'eligible under the sdvosb program in accordance with 13 cfr part 128 see subpart 19.14. 3 servicedisabled veteran, as used', 1063:'in this definition, means a veteran as defined in 38 u.s.c. 1012, with a disability that is serviceconnected, as defined', 1064:'in 38 u.s.c. 10116, and who is registered in the beneficiary identification and records locator subsystem, or successor system that', 1065:'is maintained by the department of veterans affairs’ veterans benefits administration, as a servicedisabled veteran. servicedisabled veteranowned small business sdvosb', 1066:'concern eligible under the sdvosb program means an sdvosb concern that— 1 effective january 1,2024, is designated inthe system for', 1067:'award management sam ascertifiedby the small business administration sba in accordance with 13 cfr 128.300; or 2 has represented that', 1068:'it is an sdvosb concern in sam and submitted a complete application for certification to sba on or before december', 1069:'31, 2023. servicedisabled veteranowned small business sdvosb program means a program that authorizes contracting officers to limit competition, including award', 1070:'on a solesource basis, to sdvosb concerns eligible under the sdvosb program. servicing agency means the agency that will conduct', 1071:'an assisted acquisition on behalf of the requesting agency. shall denotes the imperative. shipment means freight transported or to be', 1072:'transported. shop drawings means drawings submitted by the construction contractor or a subcontractor at any tier or required under a', 1073:'construction contract, showing in detail either or both of the following: 1 the proposed fabrication and assembly of structural elements.', 1074:'2 the installation i.e., form, fit, and attachment details of materials or equipment. should means an expected course of action', 1075:'or policy that is to be followed unless inappropriate for a particular circumstance. signature or signed means the discrete,verifiable symbol', 1076:'ofan individual that, when affixed to awriting with the knowledge and consent of the individual, indicates a present intention to', 1077:'authenticate the writing. this includes electronic symbols. simplified acquisition procedures means the methods prescribed in part 13 for making purchases', 1078:'of supplies or services. simplified acquisition threshold means $250,000, except for— 1 acquisitions of supplies or services that, asdetermined by', 1079:'theheadof the agency, are to be used to supporta contingency operation; to facilitate defenseagainst or recovery from cyber, nuclear, biological,', 1080:'chemical, or radiological attack; to support a request from the secretary of state or the administrator of the united states', 1081:'agency for international development to facilitate provision of international disaster assistance pursuant to 22 u.s.c. 2292 et seq. ; or', 1082:'to support response to an emergency or major disaster 42 u.s.c. 5122, 41 u.s.c. 1903, the term means– i $800,000', 1083:'for any contract to be awarded and performed, or purchase to be made, inside the united states; and ii $1.5', 1084:'million for any contract to be awarded and performed, or purchase to be made, outside the united states; and 2', 1085:'acquisitions of supplies or services that, asdetermined by theheadof the agency, are to be used to supporta humanitarian or peacekeeping', 1086:'operation 10 u.s.c. 3015, the term means $500,000 for any contract to be awarded and performed, or purchase to be', 1087:'made, outside the united states. single, governmentwide point of entry, means the one point of entry to be designated by', 1088:'the administrator of ofpp that will allow the private sector to electronically access procurement opportunities governmentwide. small business concern— 1', 1089:'means a concern, including itsaffiliates, that is independently owned and operated, not dominant inits field of operation, and qualified as', 1090:'a small business under the criteria and size standards in 13 cfr part 121 see 19.102. 2 affiliates, as used', 1091:'in this definition, means business concerns, one of whom directly or indirectly controls or has the power to control the', 1092:'others, or a third party or parties control or have the power to control the others. in determining whether affiliationexists,', 1093:'consideration is given to all appropriate factors including commonownership, commonmanagement, and contractualrelationships. sbadeterminesaffiliation based onthe factors setforth at 13 cfr121.103.', 1094:'small business subcontractor means a concern that does not exceed the size standard for the north american industry classification systems', 1095:'code that the prime contractor determines best describes the product or service being acquired by the subcontract. small business teaming', 1096:'arrangement— 1 means an arrangement where– federal acquisition regulation itwo ormore smallbusinessconcerns have formed a joint venture; or iiasmall business', 1097:'offeror agrees withone or more other small business concerns to have themact as its subcontractorsunder a specified government contract. a', 1098:'small business teamingarrangement between the offeror and its small business subcontractors exists through a written agreement between the parties that–', 1099:'aisspecifically referred to as a small businessteamingarrangement; and b setsforth the different responsibilities, roles, and percentagesorotherallocationsof work as it relates', 1100:'tothe acquisition; 2 i for civilian agencies, may include two business concerns in a mentorprotégé relationship when both the mentor', 1101:'and the protégé aresmall or the protégé is small and the concerns have received an exception to affiliation pursuant to', 1102:'13 cfr 121.103h3ii or iii. ii for dod, may include two business concerns in a mentorprotégé relationship in the dod', 1103:'mentorprotégé program see 10 u.s.c. 4902 when both the mentor and the protégé are small. there is no exception to', 1104:'joint venture size affiliationforoffers received fromteaming arrangements under the dodmentorprotégéprogram; and 3 see 13 cfr 121.103b9 regarding the exception to', 1105:'affiliation for offers receivedfrom small business teaming arrangementsin the case of a solicitation ofoffers for a bundled contract with a', 1106:'reserve. small disadvantaged business concern consistent with 13 cfr 124.1001, means a small business concern under the size standard applicable', 1107:'to the acquisition, that: 1 is at least 51 percent unconditionally and directly owned as defined at 13 cfr 124.105', 1108:'by— i one or more socially disadvantaged as defined at 13 cfr 124.103 and economically disadvantaged as defined at 13', 1109:'cfr 124.104 individuals who are citizens of the united states; and ii each individual claiming economic disadvantage has a net', 1110:'worth not exceeding the threshold at 13 cfr 124.104c2 after taking into account the applicable exclusions set forth at 13', 1111:'cfr 124.104c2; and 2 the management and daily business operations of which are controlled as defined at 13 cfr 124.106', 1112:'by individuals who meet the criteria in paragraphs 1i and ii of this definition. sole source acquisition means a contract', 1113:'for the purchase of supplies or services that is entered into or proposed to be entered into by an agency', 1114:'after soliciting and negotiating with only one source. solicitation means any requestto submitoffers or quotations to the government. solicitations undersealed', 1115:'bidprocedures are called invitations for bids. solicitations under negotiated procedures are called requests for proposals. solicitations undersimplified acquisition procedures may', 1116:'require submissionof either a quotation or an offer. solicitation provision or provision means a term or condition used only in', 1117:'solicitations and applying only before contract award. source selection information means any of the following information that is prepared for', 1118:'use by an agency for the purpose of evaluating a bid or proposal to enter into an agency procurement contract,', 1119:'if that information has not been previously made available to the public or disclosed publicly: 1 bid prices submitted in', 1120:'response to an agency invitation for bids, or lists of those bid prices before bid opening. 2 proposed costs or', 1121:'prices submitted in response to an agency solicitation, or lists of those proposed costs or prices. 3 source selection plans.', 1122:'4 technical evaluation plans. 5 technical evaluations of proposals. 6 cost or price evaluations of proposals. 7 competitive range determinations', 1123:'that identify proposals that have a reasonable chance of being selected for award of a contract. 8 rankings of bids,', 1124:'proposals, or competitors. 9 reports and evaluations of source selection panels, boards, or advisory councils. 10 other information markedas source', 1125:'selection informationsee far 2.101 and 3.104 based on a casebycase determination by the head of theagency or the contracting officer,', 1126:'that its disclosure would jeopardize the integrity or successful completion of the federal agency procurement to which the information relates.', 1127:'special competency means a special or unique capability, including qualitative aspects, developed incidental to the primary functions of the federally', 1128:'funded research and development centers to meet some special need. special test equipment means either single or multipurpose integrated test', 1129:'units engineered, designed, fabricated, or modified to accomplish special purpose testing in performing a contract. it consists of items or', 1130:'assemblies of equipment including foundations and similar improvements necessary for installing special test equipment, and standard or general purpose items', 1131:'or components that are interconnected and interdependent so as to become a new functional entity for special subpart 2.1 definitions', 1132:'2.101 testing purposes. special test equipment doesnot includematerial, specialtooling, real property, and equipmentitemsused for general testing purposes or property that', 1133:'with relatively minor expense can be made suitable for general purpose use. special tooling means jigs, dies, fixtures, molds, patterns,', 1134:'taps, gauges, and all components of these items including foundations and similar improvements necessary for installing special tooling, and which', 1135:'are of such a specialized nature that without substantial modification or alteration their use is limited to the development or', 1136:'production of particular supplies or parts thereof or to the performance of particular services. special tooling does not include material,', 1137:'special test equipment, realproperty, equipment, machine tools,or similar capital items. state and local taxes means taxes levied by the states,', 1138:'the district of columbia, outlying areas of the united states, or their political subdivisions. statement of objectives soo means a', 1139:'governmentprepared document incorporated into the solicitation that states the overall performance objectives. it is used in solicitations when the government', 1140:'intends to provide the maximum flexibility to each offeror topropose aninnovative approach. subline item means a subset of a line', 1141:'item. substantial evidence means information sufficientto support the reasonable belief that a particular act or omission has occurred. substantially as', 1142:'follows or substantially the same as, when used in the prescription and introductory text of a provision or clause, means', 1143:'that authorization is granted to prepare and utilize a variation of that provision or clause to accommodate requirementsthat arepeculiar to', 1144:'an individual acquisition; provided that the variationincludes the salient featuresof the far provisionor clause, andis not inconsistentwith the intent, principle,and', 1145:'substance of the farprovision or clause or related coverage ofthe subject matter. supplemental agreement means a contract modification that is', 1146:'accomplished by the mutual action of the parties. supplies means all property except land or interest in land. it includes', 1147:'but is not limited to public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and', 1148:'description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation', 1149:'of any of the foregoing. supporting a diplomatic or consular mission means performing outside the united states under a contract', 1150:'administered by federal agency personnel who are subject to the direction of a chief of mission. surety means an individual', 1151:'or corporation legally liable for the debt, default, or failure of a principal to satisfy a contractual obligation. the types', 1152:'of sureties referred to are as follows: 1 an individual suretyis one person, as distinguished froma business entity, whois liable', 1153:'for the entire penal amount of the bond. 2 a corporate suretyis licensed under various insurance laws and, underits charter,', 1154:'has legal power to act as surety for others. 3 a cosurety is one of two or more sureties that', 1155:'are jointly liable for the penal sum of the bond. a limit of liability for each surety may be stated.', 1156:'surplus property means excess personal property not required by any federal agency as determined by the administrator of the general', 1157:'services administration gsa. see 41 cfr 10236.40. suspension means action takenby a suspending official under 9.407 to disqualify a contractor', 1158:'temporarily from government contracting and governmentapproved subcontracting; a contractor that is disqualified is suspended. sustainable acquisition means acquiring products and', 1159:'services in order to create and maintain conditions 1 under which humans and nature can exist in productive harmony; and', 1160:'2 that permit fulfilling the social, economic, and other requirements of present and future generations. sustainable products and services means', 1161:'products and services that are subject to and meet the following applicable statutory mandates and directives for purchasing: 1 statutory', 1162:'purchasing programs. i products containing recovered material designated by the u.s. environmental protection agency epa underthe comprehensive procurement guidelines 42', 1163:'u.s.c. 6962 40 cfr part 247 https:// www.epa.gov/smm/comprehensiveprocurementguidelinecpgprogramproducts . iienergyand waterefficient products thatare energystar® certified or federal energy management program', 1164:'fempdesignated products 42 u.s.c. 8259b 10 cfr part 436, subpart c https://www.energy.gov/eere/femp/ searchenergyefficientproducts and https://www.energystar.gov/products?s=mega . iii biobased products meeting', 1165:'the content requirement of the u.s. department of agriculture under the biopreferred® program 7 u.s.c. 8102 7 cfr part 3201', 1166:'https://www.biopreferred.gov . federal acquisition regulation iv acceptable chemicals,products, and manufacturingprocesses listedunder epas significant new alternatives policy snap program, which ensures', 1167:'a safe and smooth transition away from substances that contribute to the depletion of stratospheric ozone 42 u.s.c. 7671l 40', 1168:'cfr part 82, subpart g https://www.epa.gov/snap. 2 required epa purchasing programs. i watersense® labeled waterefficient productsandservices https:// www.epa.gov/watersense/watersenseproducts . ii', 1169:'safer choicecertified products products that contain safer chemical ingredients https://www.epa.gov/ saferchoice/products . iii products and services thatmeet epa recommendations of', 1170:'specifications,standards,and ecolabels ineffect as of october 2023 https://www.epa.gov/greenerproducts/recommendationsspecificationsstandardsandecolabelsfederalpurchasing . system for award management sam means the primary government repository for', 1171:'prospective federal awardee and federal awardee information and the centralized government system for certain contracting, grants, and other assistance related', 1172:'processes. it includes— 1 data collected from prospective federal awardees required for the conduct of business with the government; 2', 1173:'prospective contractorsubmitted annual representations and certifications in accordance with farsubpart 4.12; and 3 identification of those parties excluded from receiving', 1174:'federal contracts, certain subcontracts, and certain types of federal financial and nonfinancial assistance and benefits. task order means an order', 1175:'for services placed against an established contract or with government sources. taxpayer identification number tin means the number required by', 1176:'the irs to be used by the offerorin reporting income taxand otherreturns. the tin maybe either a social security number', 1177:'or an employeridentification number. technical data means recorded information regardless of the form or method of the recording of a', 1178:'scientific or technical nature including computer databases and computer software documentation. this term does not include computer software or financial,', 1179:'administrative, cost or pricing, or management data or other information incidental to contract administration. the term includes recorded information of', 1180:'a scientific or technical nature that is included in computer databases see 41 u.s.c. 116. terminated portion of the contract', 1181:'means the portion of a contract that the contractor is not to perform following a partial termination. for construction contracts', 1182:'that have been completely terminated for convenience, it means the entire contract, notwithstandingthe completion of, andpayment for,individual items of work', 1183:'before termination. termination for convenience means the exerciseof the government’s right to completely orpartiallyterminate performanceof work under a contract when', 1184:'it isin the government’s interest. termination for default meansthe exerciseof the government’s right tocompletely or partiallyterminatea contract because ofthe contractor’s', 1185:'actual or anticipatedfailureto perform itscontractual obligations. termination inventory means any property purchased, supplied, manufactured, furnished, or otherwise acquired for the', 1186:'performance of a contract subsequently terminated and properly allocable to the terminated portion of the contract. it includes governmentfurnishedproperty. it', 1187:'does not include any facilities, material,special test equipment, or special toolingthat are subject to a separate contract or to a', 1188:'special contract requirement governing their use or disposition. unallowable cost meansanycostthat, under the provisions of any pertinent law, regulation,or contract,', 1189:'cannot be included in prices, costreimbursements, or settlements under a government contract to which it is allocable. unique and innovative', 1190:'concept, when used relative to an unsolicited research proposal, means that 1 in the opinion and to the knowledgeof the', 1191:'government evaluator, the meritoriousproposal i is the product of original thinking submitted confidentially by one source; iicontains new,novel, or changed', 1192:'concepts,approaches, or methods; iii was not submitted previouslyby another; and iv is not otherwise available within the federal government. 2', 1193:'in this context, the term does not mean that the source has the sole capability of performing the research. unique', 1194:'entity identifier means a number or other identifier used to identify a specific commercial, nonprofit, or government entity. see www.sam.gov', 1195:'for the designated entity for establishing unique entity identifiers. united states, when used in a geographic sense, means the 50', 1196:'states and the district of columbia, except as follows: 1 for use in subpart 3.10, see the definition at 3.1001.', 1197:'2 for use in subpart 22.8, see the definition at 22.801. 3 for use in subpart 22.10, see the definition', 1198:'at 22.1001. 4 for use in subpart 22.13, see the definition at 22.1301. subpart 2.1 definitions 2.101 5 for use', 1199:'in subpart 22.16, see the definition at 22.1601. 6 for use in subpart 22.17, see the definition at 22.1702. 7', 1200:'for use in subpart 22.18, see the definition at 22.1801. 8 for use in subpart 22.19, see the definition at', 1201:'22.1901. 9 for use in subpart 23.1, see the definition at 23.101. 10 for use in part 25, see the', 1202:'definition at 25.003. 11 for use in part 27, see the definition at 27.001. 12 for use in subpart 47.4,', 1203:'see the definition at 47.401. unsolicited proposal means a written proposal for a new or innovative idea that is submitted', 1204:'to an agency on the initiative of the offeror for the purposeof obtaining a contract withthe government, and thatis not', 1205:'in response toa requestfor proposals, broad agency announcement,smallbusinessinnovation research topic, small business technology transfer research topic, program research and development', 1206:'announcement, or any other governmentinitiated solicitation or program. value engineering means an analysis of the functions of a program, project,', 1207:'system, product, item of equipment, building, facility, service, orsupplyof an executive agency, performed by qualifiedagency or contractorpersonnel, directed at improving', 1208:'performance, reliability, quality,safety,and lifecyclecosts 41 u.s.c. 1711. for usein the clause at 52.2482, see the definition at 52.2482b. value engineering', 1209:'change proposal vecp— 1 means a proposal that– i requires a change to the instant contract to implement; and ii', 1210:'results in reducing the overall projected cost to the agency without impairing essential functions or characteristics, provided, that it does', 1211:'not involve a change– a in deliverable end item quantities only; b in research and development r&d items or r&d', 1212:'test quantities that are due solely to results of previous testing under the instant contract; or c tothe contract type', 1213:'only. 2 for use in the clauses at i 52.2482, see the definition at 52.2482b; and ii 52.2483, see the', 1214:'definition at 52.2483b. veteranowned small business concern means a small business concern— 1 not less than 51 percent of which', 1215:'is owned and controlled by one or more veterans as defined at 38 u.s.c. 1012 or, in the case of', 1216:'any publicly owned business, not less than 51 percent of thestock of which is owned by one or more veterans;', 1217:'and 2 the management and daily business operations of which are controlled by one or more veterans. virgin material means—', 1218:'1 previously unused raw material, including previouslyunused copper, aluminum,lead, zinc, iron, other metal or metal ore; or 2 any undeveloped', 1219:'resource that is, or with new technology will become, a source of raw materials. voluntary consensus standards means common and', 1220:'repeated use of rules, conditions, guidelines or characteristics for products,or related processes and production methods and related management systems. voluntary', 1221:'consensus standards are developed or adopted by domestic and international voluntary consensus standard making bodies e.g., international organization for standardization', 1222:'iso and astminternational. see omb circular a119. warranty means a promise or affirmation given by a contractor tothe government regarding', 1223:'thenature, usefulness, or condition of the supplies or performance of services furnished under the contract. waste reduction means preventing or', 1224:'decreasing the amount of waste being generated through waste prevention, recycling, or purchasing recycled and environmentally preferable products. womenowned small', 1225:'business concern means— 1 a small business concern– ithat is at least 51 percent owned by one ormorewomen;or, in the', 1226:'case of any publicly owned business, at least 51 percent of the stock of which is owned by one or', 1227:'more women; and ii whose management and daily business operations are controlled by one or more women; or 2 a', 1228:'small business concerneligible under the womenowned small business programin accordance with 13 cfr part 127 see subpart 19.15. federal acquisition', 1229:'regulation womenowned small business wosb program. 1 womenowned small business wosb program means a program thatauthorizes contracting officers to limit', 1230:'competition, including award on a solesource basis, to— i economically disadvantaged womenowned small business edwosb concerns eligible under the wosb', 1231:'program for federal contracts assigned a north american industry classification systems naics code in an industry in which the small', 1232:'business administration sba has determined that wosb concerns are underrepresented in federal procurement; and ii wosb concerns eligible under the', 1233:'wosb program for federal contracts assigned a naics code in an industry in which sba has determined that wosb concerns', 1234:'are substantially underrepresented in federal procurement. 2 economically disadvantaged womenowned small business edwosb concern means a small business concern that', 1235:'is at least 51 percent directly and unconditionallyowned by, and the management and daily business operations of which arecontrolled by,oneor', 1236:'more women who arecitizens of the unitedstates and whoare economically disadvantaged in accordance with 13 cfr part 127, and the', 1237:'concern is certified by sba or an approved thirdparty certifier in accordance with 13 cfr 127.300 . it automatically qualifies', 1238:'as a womenowned small business wosb concern eligible under the wosb program. 3 womenowned small business wosb concern eligible under', 1239:'the wosb programmeans a small business concern that is at least 51percent directly and unconditionally owned by, andthe management and', 1240:'daily businessoperations of which are controlled by, one or more women who are citizens of the united states,and the concernis', 1241:'certified by sba or an approved thirdparty certifier in accordance with 13 cfr 127.300. writing or written see in writing.', 1242:'subpart 2.2 definitions clause 2.201 subpart 2.2 definitions clause 2.201contract clause. insert the clause at 52.2021, definitions, in solicitations and', 1243:'contracts that exceed the simplified acquisition threshold. this page intentionally left blank. part 3 improper business practices and personal conflicts', 1244:'of interest sec. 3.000 scope of part. subpart 3.4 contingent fees 3.400 scope of subpart. subpart 3.1 safeguards 3.401 definitions.', 1245:'3.101 standards of conduct. 3.402 statutory requirements. 3.1011 general. 3.403 applicability. 3.1012 solicitation and acceptance of gratuities by 3.404 contract', 1246:'clause. government personnel. 3.405 misrepresentations or violations of the 3.1013 agency regulations. covenant against contingent fees. 3.102 [reserved] 3.406 records.', 1247:'3.103 independent pricing. 3.1031 solicitation provision. subpart 3.5 other 3.1032 evaluating the certification. improper business practices 3.1033 the need for', 1248:'further certifications. 3.501 buyingin. 3.104 procurement integrity. 3.5011 definition. 3.1041 definitions. 3.5012 general. 3.1042 general. 3.502 subcontractor kickbacks. 3.1043 statutory', 1249:'and related prohibitions, 3.5021 definitions. restrictions, and requirements. 3.5022 subcontractor kickbacks. 3.1044 disclosure, protection, and marking of 3.5023 contract clause.', 1250:'contractor bid or proposal information and 3.503 unreasonable restrictions on subcontractor source selection information. sales. 3.1045 disqualification. 3.5031 policy. 3.1046', 1251:'ethics advisory opinions regarding 3.5032 contract clause. prohibitions on a former official’s acceptance of compensation from a contractor. subpart 3.6', 1252:'contracts with 3.1047 violations or possible violations. government employees or organizations 3.1048 criminal and civil penalties, and further owned or', 1253:'controlled by them administrative remedies. 3.601 policy. 3.1049 contract clauses. 3.602 exceptions. 3.603 responsibilities of the contracting officer. subpart 3.2', 1254:'contractor gratuities to government personnel subpart 3.7 voiding and 3.201 applicability. rescinding contracts 3.202 contract clause. 3.700 scope of subpart.', 1255:'3.203 reporting suspected violations of the 3.701 purpose. gratuities clause. 3.702 definition. 3.204 treatment of violations. 3.703 authority. 3.704 policy.', 1256:'subpart 3.3 reports of 3.705 procedures. suspected antitrust violations 3.301 general. subpart 3.8 limitations on the payment 3.302 definitions. of', 1257:'funds to influence federal transactions 3.303 reporting suspected antitrust violations. 3.800 scope of subpart. 3.801 definitions. 3.802 statutory prohibition and', 1258:'requirement. 3.803 exceptions. 3.804 policy. 3.805 exemption. 3.806 processing suspected violations. 3.807 civil penalties. 3.808 solicitation provision and contract clause.', 1259:'subpart 3.9 whistleblower subpart 3.10 contractor code protections for contractor employees of business ethics and conduct 3.900 scope of subpart.', 1260:'3.1000 scope of subpart. 3.901 definitions. 3.1001 definitions. 3.902 classified information. 3.1002 policy. 3.903 policy. 3.1003 requirements. 3.904 complaints. 3.1004', 1261:'contract clauses. 3.9041 procedures for filing complaints. 3.9042 procedures for investigating complaints. subpart 3.11 preventing personal conflicts 3.905 remedies and', 1262:'enforcement of orders. of interest for contractor employees 3.9051 remedies. performing acquisition functions 3.9052 enforcement of orders. 3.1100 scope of', 1263:'subpart. 3.906 contract clause. 3.1101 definitions. 3.907 whistleblower protections under the 3.1102 policy. american recovery and reinvestment act of 3.1103', 1264:'procedures. 2009 the recovery act. 3.1104 mitigation or waiver. 3.9071 definitions. 3.1105 violations. 3.9072 policy. 3.1106 contract clause. 3.9073 procedures', 1265:'for filing complaints. 3.9074 procedures for investigating complaints. 3.9075 access to investigative file of inspector general. 3.9076 remedies and enforcement', 1266:'authority. 3.9077 contract clause. 3.908 [reserved] 3.909 prohibition on providing funds to an entity that requires certain internal confidentiality agreements', 1267:'or statements. 3.9091 prohibition. 3.9092 representation by the offeror. 3.9093 solicitation provision and contract clause. subpart 3.1 safeguards 3.1032 3.000scope', 1268:'of part. this part prescribes policies and procedures for avoiding improper business practices and personal conflicts of interest and for', 1269:'dealing with their apparent or actual occurrence. subpart 3.1 safeguards 3.101standards of conduct. 3.1011 general. government business shall be conducted', 1270:'in a manner above reproach and, except as authorized by statute or regulation, with complete impartiality and with preferential treatment', 1271:'for none. transactions relating to the expenditure of public funds require the highest degree of public trust and an impeccable', 1272:'standard of conduct. the general rule is to avoid strictly any conflict of interest or even the appearance of a', 1273:'conflict of interest in governmentcontractor relationships. while many federallaws and regulations place restrictions on the actions of government personnel, their', 1274:'official conduct must, in addition, be such that they would have no reluctance to make a full public disclosure of', 1275:'their actions. 3.1012 solicitation and acceptance of gratuities by government personnel. asa rule, nogovernmentemployee may solicit oraccept, directly or indirectly,', 1276:'any gratuity,gift, favor, entertainment, loan, or anything of monetary value from anyone who a has or is seeking to obtain', 1277:'government business with the employee’s agency, b conducts activities that are regulatedby the employee’s agency, orc has interests that maybe', 1278:'substantially affected by theperformance or nonperformance of theemployee’sofficial duties. certain limited exceptions are authorized in agency regulations. 3.1013 agency regulations.', 1279:'a agencies are requiredby executive order 11222of may 8,1965, and 5 cfr 735 to prescribe standards of conduct. these agency', 1280:'standards contain 1 agencyauthorized exceptions to 3.1012; and 2 disciplinary measures for persons violating the standards of conduct. b requirements', 1281:'for employee financial disclosure and restrictions on private employment for former government employees are in office of personnel management and', 1282:'agency regulations implementing public law 95521, which amended 18 u.s.c. 207. 3.102[reserved] 3.103independent pricing. 3.1031 solicitation provision. the contractingofficer shall', 1283:'insertthe provisionat 52.2032, certificate of independent price determination, in solicitations when a firmfixedprice contract or fixedprice contract with economic price', 1284:'adjustment is contemplated, unless a the acquisition is to be made under the simplified acquisition procedures in part 13; b', 1285:'[reserved] c the solicitation is a request for technical proposals under twostep sealed bidding procedures; or d the solicitation is', 1286:'for utility services for which rates are set by law or regulation. 3.1032 evaluating the certification. a evaluation guidelines. 1', 1287:'none of the following, in and of itself, constitutes disclosure as it is used in paragraph a 2 of the', 1288:'certificate of independent price determination hereafter,the certificate: ithe fact that afirm haspublished price lists, rates, or tariffs covering itemsbeing acquired', 1289:'by the government. ii the fact that a firm has informed prospective customers of proposed or pending publication of new', 1290:'or revised price lists for items being acquired by the government. iii the fact that a firm has sold the', 1291:'same items to commercial customers at the sameprices being offered to the government. iv participating in a reverse auction see', 1292:'subpart 17.8. federal acquisition regulation 2 for the purpose of paragraph b2 of the certificate, an individual may use a', 1293:'blanket authorization to act as an agent for the personsresponsiblefordetermining the offered pricesif i the proposed contract to which the', 1294:'certificate applies is clearly within the scope of the authorization; and iithe person giving the authorization is the person within', 1295:'the offeror’s organization who is responsible for determining the prices being offered at the time the certification is madein theparticular', 1296:'offer. 3 if an offer is submittedjointly by twoor more concerns, the certificationprovidedby the representative of each concern applies only', 1297:'to the activities of that concern. b rejection of offerssuspected of being collusive. 1 if the offeror deleted or modifiedparagraph', 1298:'a1 or 3 or paragraph b of thecertificate, the contracting officershallreject theofferor’s bid or proposal. 2 if the offerordeletedor modified', 1299:'paragraph a2 of the certificate, the offeror must have furnishedwith its offer a signed statement of the circumstances of the', 1300:'disclosure of prices contained in the bid or proposal. the chief of the contracting officeshallreview the alteredcertificate and the statement', 1301:'and shall determine,in writing, whether the disclosure wasmade for thepurpose or hadthe effect of restricting competition. if the determination is', 1302:'positive, the bid or proposalshallbe rejected; if it is negative, the bid or proposal shall be considered for award. 3', 1303:'whenever an offeris rejected underparagraph b1 or 2of this section,or the certificateis suspected of being false, the contractingofficer shall report', 1304:'the situation to theattorney generalin accordance with 3.303. 4 the determination made under paragraph 2 of this section shall not', 1305:'prevent or inhibit the prosecution of any criminal or civil actions involving the occurrences or transactions to which the certificate', 1306:'relates. 3.1033 the need for further certifications. a contractor that properly executed the certificate before award does not have to', 1307:'submit a separate certificate with each proposal to perform a work order or similar ordering instrument issued pursuant to the', 1308:'terms of the contract, where the government’s requirements cannot be met from another source. 3.104 procurement integrity. 3.1041 definitions. as', 1309:'used in this section— agency ethics official means the designated agency ethicsofficial described in5 cfr 2638.201 or other designated person,', 1310:'including– 1 deputy ethics officials described in 5 cfr 2638.204, to whom authority under 3.1046 has been delegated by the', 1311:'designated agencyethics official; and 2 alternatedesignated agency ethics officials described in 5 cfr 2638.202b. compensation means wages, salaries, honoraria, commissions,', 1312:'professional fees, and any other form of compensation, provided directly or indirectly for services rendered. compensation is indirectly provided if', 1313:'it is paid to an entity other than the individual, specifically in exchange for services provided by the individual. contractor', 1314:'bid or proposal information means any of the following information submitted to a federal agency as part of or in', 1315:'connection with a bid or proposal to enter into a federal agency procurement contract, if that information has not been', 1316:'previously made available to the public or disclosed publicly: 1 cost or pricing data as defined by 10 u.s.c. 37011', 1317:'with respect to procurements subject to that section, and 41 u.s.c. 3501a1, with respect to procurements subject to that section.', 1318:'2 indirect costs and direct labor rates. 3 proprietary information about manufacturing processes, operations, or techniques marked by the contractor', 1319:'in accordance with applicable law or regulation. 4 information marked by the contractor as contractor bid or proposal information in', 1320:'accordance with applicable law or regulation. 5 information marked in accordance with 52.2151e. decision to award a subcontract or modification', 1321:'of subcontract means a decision to designate award to a particular source. federal agency procurement means the acquisition by using', 1322:'competitive procedures and awarding a contract of goods or services including construction from nonfederal sources by a federal agency using', 1323:'appropriated funds. for broad agency announcements and small business innovation research programs, each proposal received by an agency constitutes a', 1324:'separate procurement for purposes of 41 u.s.c. chapter 21. subpart 3.1 safeguards 3.1042 in excess of $10,000,000 means– 1 the', 1325:'value, or estimated value, at the time of award, of the contract, including all options; 2 the total estimated value', 1326:'atthe time of award ofall orders under an indefinitedelivery, indefinitequantity, or requirements contract; 3 any multipleaward schedule contract,unlessthe contracting officerdocuments', 1327:'a lower estimate; 4 the value of a delivery order, task order, or an order under abasic ordering agreement; 5', 1328:'the amount paid or to be paid in settlement of a claim; or 6 the estimated monetary value of negotiated', 1329:'overhead or other rates when applied to the government portion of the applicable allocation base. official means– 1 an officer,', 1330:'asdefined in 5 u.s.c.2104; 2 an employee, as defined in 5 u.s.c.2105; 3 a member of the uniformed services, as', 1331:'defined in 5 u.s.c.21013; or 4 a special government employee, as defined in 18 u.s.c.202. participating personally and substantially in', 1332:'a federal agency procurement means– 1 active and significant involvement of an official in any of the following activities directly', 1333:'relatedto that procurement: i drafting, reviewing, or approving the specification or statement of work for the procurement. : ii preparing', 1334:'or developing the solicitation. iii evaluating bids or proposals, or selecting a source. iv negotiating price or terms and conditions', 1335:'of the contract. v reviewing and approving the award of the contract. 2 participating personally means participating directly, and includesthe', 1336:'direct and active supervision of a subordinates participation in the matter. 3 participating substantially means that the officials involvement is', 1337:'of significance to the matter. substantial participationrequiresmore thanofficial responsibility, knowledge, perfunctory involvement, or involvement on an administrative or peripheral issue.', 1338:'participation may be substantial even though it is not determinative of the outcome of a particular matter. a finding of', 1339:'substantiality should be basednot only on the effortdevoted toa matter, but onthe importance of the effort. while a series of', 1340:'peripheral involvements may be insubstantial, thesingle act of approving or participating in a critical step may besubstantial. however, the review', 1341:'of procurementdocuments solely to determine compliance with regulatory,administrative, orbudgetary procedures, does not constitutesubstantial participation in a procurement. 4 generally,an officialwill', 1342:'not beconsidered tohaveparticipated personally and substantiallyin a procurement solely by participating in the following activities: i agencylevel boards, panels, or', 1343:'other advisory committees that review program milestones or evaluate and make recommendations regarding alternative technologies or approaches for satisfying broad', 1344:'agencylevel missions or objectives. iithe performance ofgeneral, technical, engineering, or scientific effort havingbroad applicationnot directly associated with aparticular procurement,notwithstanding thatsuch', 1345:'general, technical,engineering, orscientific effort subsequently may be incorporated into a particular procurement. iii clerical functions supporting the conduct of a', 1346:'particular procurement. iv for procurements to be conducted under the procedures of omb circular a76, participation in management studies, preparation', 1347:'of inhouse cost estimates, preparation of most efficient organization analyses,andfurnishing of dataor technical support to be used by others in', 1348:'the development of performance standards, statements of work, or specifications. source selection evaluation board means any board, team, council, or', 1349:'other group that evaluates bids or proposals. 3.1042 general. a this section implements 41 u.s.c. chapter 21, restrictions on obtaining', 1350:'and disclosing certain information. agency supplementation of 3.104, including specific definitions to identify individuals who occupy positions specified in 3.1043d', 1351:'1ii, and any clauses required by 3.104 must be approvedby the seniorprocurement executive of theagency, unless a law establishesa higher', 1352:'level ofapproval for that agency. b agency officials are remindedthat there are other statutes and regulations thatdeal with the same', 1353:'or relatedprohibited conduct, for example 1 the offeror acceptance of a bribe orgratuity is prohibited by 18 u.s.c. 201 and', 1354:'10 u.s.c. 4651. the acceptance of a gift, under certain circumstances, is prohibited by 5 u.s.c. 7353 and 5 cfr', 1355:'part 2635; federal acquisition regulation 2 contacts with an offeror during the conduct ofan acquisition may constitute seeking employment, see', 1356:'subpart f of 5 cfr part 2636 and 3.1043c2. government officers and employees employeesare prohibited by 18 u.s.c. 208 and', 1357:'5 cfr part 2635 from participating personally and substantially in any particular matter that would affect the financial interests of', 1358:'any person with whom the employee is seeking employment. an employee who engages in negotiations or is otherwiseseeking employment withan', 1359:'offeroror who has an arrangement concerning future employment withan offeror must comply with the applicable disqualification requirements of 5 cfr', 1360:'2635.604 and 2635.606. the statutory prohibition in 18 u.s.c. 208 also may require an employee’s disqualification from participation in the', 1361:'acquisition even if the employee’s duties may not beconsidered participatingpersonally and substantially, asthisterm is defined in 3.1041; 3 postemployment restrictions', 1362:'are covered by 18 u.s.c. 207 and 5 cfr parts 2637 and 2641, that prohibit certain activities by former government', 1363:'employees, including representation of a contractor before the government in relation to any contract or other particular matter involving specific', 1364:'parties on which the former employee participated personally and substantially while employed by the government. additional restrictions apply to certain', 1365:'senior government employees and for particular mattersunder an employee’s official responsibility; 4 parts 14 and 15 place restrictions on the', 1366:'release of information related to procurements and other contractor information that must be protected under 18 u.s.c. 1905; 5 release', 1367:'of information both before and after award see 3.1044 may be prohibited by the privacy act 5 u.s.c. 552a, thetradesecrets', 1368:'act 18u.s.c. 1905, and other laws;and 6 using nonpublic information to further an employee’s private interest or that of another', 1369:'andengagingin a financial transaction using nonpublic information are prohibited by 5 cfr 2635.703. 3.1043 statutoryand relatedprohibitions, restrictions, and requirements. a', 1370:'prohibition on disclosing procurement information41 u.s.c. 2102. 1 a person described in paragraph a2 of this subsectionmust not, other than', 1371:'asprovidedby law, knowingly disclose contractorbid or proposal information or source selection information before the award of a federal agency procurement', 1372:'contract to which the information relates. see 3.1044a. 2 paragraph a1 of this subsection applies to any person who iisa', 1373:'presentor former official of theunited states, ora person whois acting or has actedforor on behalf of, or who is advising', 1374:'or has advised the united states with respect to, a federal agency procurement; and iibyvirtueof that office, employment,or relationship, has', 1375:'orhadaccess tocontractor bid or proposal information or source selection information. b prohibition on obtaining procurement information 41 u.s.c. 2102. a', 1376:'person must not, other than as provided by law,knowingly obtain contractor bid or proposal information or source selection information before', 1377:'the award of a federal agency procurement contract to which the information relates. c actions required when an agency official', 1378:'contacts or is contacted by anofferor regarding nonfederal employment 41 u.s.c. 2103. 1 if an agency official, participatingpersonally and substantially', 1379:'ina federal agency procurement for a contract inexcessof the simplified acquisition threshold, contacts or is contacted by a person who', 1380:'isan offerorin that federal agency procurement regarding possible nonfederal employment for that official, theofficial must ipromptly report thecontactin writingto theofficial’s', 1381:'supervisorand to the agency ethics official; and ii either reject the possibility of nonfederal employment or disqualify himself or herself', 1382:'from further personal and substantial participation in that federal agency procurement see 3.1045 until such time as the agency authorizes', 1383:'the official to resume participation in that procurement, in accordance with the requirements of 18 u.s.c. 208 and applicable agency', 1384:'regulations, because athe person is no longer an offeror in that federal agency procurement; or b all discussions with the', 1385:'offeror regarding possible nonfederal employment have terminated without an agreement or arrangement for employment. 2 a contact is any of', 1386:'the actions included as seeking employment in 5 cfr 2635.603b. in addition, unsolicited communications from offerors regarding possibleemploymentare consideredcontacts. 3', 1387:'agencies must retain reports of employment contacts for 2 years from the date the report was submitted. 4 conduct that', 1388:'complies with 41 u.s.c. 2104 may be prohibited by other criminal statutes and the standards of ethical conduct for employees', 1389:'of the executive branch. see 3.1042b2. d prohibition on former officials acceptance of compensation from a contractor 41 u.s.c. 2104.', 1390:'1 a former official of a federal agency may not accept compensation from a contractor that has been awarded a', 1391:'competitive or sole source contract, as an employee,officer, director, or consultant of the contractor within a periodof 1 year after', 1392:'such formerofficial subpart 3.1 safeguards 3.1044 iserved, at the time of selection ofthe contractor orthe award ofa contract to that', 1393:'contractor, as the procuring contracting officer, thesource selection authority, a memberof asource selection evaluation board, or the chief of a', 1394:'financial or technical evaluation team in a procurement in which that contractor was selected for award of a contract in', 1395:'excess of $10,000,000; iiserved as the program manager, deputy program manager, or administrative contracting officer for a contract in excess', 1396:'of $10,000,000 awarded to that contractor; or iii personally made for the federal agency a decision to aawarda contract, subcontract,', 1397:'modificationof acontract orsubcontract, or a task orderor delivery order in excess of $10,000,000 to that contractor; b establish overhead or', 1398:'other rates applicable to a contract or contracts for that contractor that are valued in excess of $10,000,000; c approve', 1399:'issuance of a contract payment or payments in excess of $10,000,000 to that contractor; or dpay orsettle a claim in', 1400:'excess of $10,000,000 withthat contractor. 2 the 1year prohibition begins on the date i of contract award for positions described', 1401:'in paragraph d1i of this subsection, or the date of contractor selection if the official was not serving inthe position', 1402:'on the date ofaward; iithe official last served inoneof the positions described in paragraph d1ii of this subsection; or iii', 1403:'the officialmadeone of the decisions described inparagraph d1iii of thissubsection. 3 nothing inparagraph d1 of this subsection may be construed', 1404:'to prohibit a formerofficial of a federalagency from acceptingcompensation fromanydivision or affiliate of a contractor that does notproducethe same or', 1405:'similar products or services as the entity of the contractor that is responsible for the contract referred to in paragraph', 1406:'d1 of this subsection. 3.1044 disclosure, protection, andmarking of contractor bid or proposal information andsource selection information. a except as', 1407:'specifically provided for in this subsection, no person or other entity may disclose contractor bid or proposal information or source', 1408:'selection information to any person other than a person authorized, in accordance with applicable agency regulations or procedures, by the', 1409:'agency head or the contracting officer to receive such information. b contractor bid or proposal information and source selection information', 1410:'must be protected from unauthorized disclosure in accordance with 14.401, 15.207, applicable law, and agencyregulations. c individuals unsure if particular', 1411:'information is source selection information, as defined in 2.101, should consult with agency officials as necessary. individuals responsible for preparing', 1412:'materialthat may be source selectioninformation as described at paragraph 10 of the source selection information definition in 2.101 must mark', 1413:'the cover page and each page that the individual believes contains source selection information with the legend source selection informationsee', 1414:'far 2.101 and 3.104. although the information in paragraphs 1 through 9 of the definition in 2.101 is considered to', 1415:'be source selection informationwhetheror not marked, all reasonable efforts mustbe made tomarksuch material with the samelegend. d except as provided', 1416:'in paragraph d3of this subsection, thecontracting officer must notifythe contractor in writing if thecontracting officer believesthat proprietary information,contractor bid or', 1417:'proposal information, or information marked in accordance with 52.2151e has been inappropriately marked. the contractor thathas affixed the marking must', 1418:'be given an opportunity to justify the marking. 1 if the contractor agrees that the marking is not justified, or', 1419:'does not respond within the time specified in the notice, thecontracting officer may remove the markingandrelease the information. 2 if,', 1420:'afterreviewing the contractor’s justification, the contractingofficer determines that the marking isnot justified, thecontracting officer must notifythe contractor in writing before', 1421:'releasing the information. 3 for technical data marked as proprietaryby acontractor, the contracting officer must follow the procedures in 27.4045.', 1422:'e this section does not restrict or prohibit 1 a contractor from disclosing its own bid or proposal information or', 1423:'the recipient from receiving that information. during reverse auctions, agenciesmay reveal to all offerors the offeredprices, but shall not reveal', 1424:'any offerors identity except for the awardees identity subsequent to an award resulting from the auction see subpart 17.8; 2', 1425:'the disclosure or receipt of information, not otherwise protected, relating to a federal agency procurement after it has been canceled', 1426:'by the federal agency, before contract award, unless the federal agency plans to resume the procurement; federal acquisition regulation 3', 1427:'individual meetingsbetween a federal agency official and anofferor or potential offeror for, or a recipient of, a contract or subcontract', 1428:'under a federal agency procurement, provided that unauthorized disclosure or receipt of contractor bid or proposal information or source selection', 1429:'information does not occur; or 4 the government’s use of technical datain a manner consistent with thegovernment’s rights in the', 1430:'data. f this section does not authorize 1 the withholding of any information pursuant to a proper request from the', 1431:'congress, any committee or subcommittee thereof, a federal agency,the comptroller general, or aninspector general of a federal agency, except as', 1432:'otherwise authorized by law or regulation. any release containing contractor bid or proposal information or source selection information must clearly', 1433:'identify the information as contractor bid or proposal information or source selection information related to the conduct of a federal', 1434:'agency procurement and notify the recipient that the disclosure of the information is restricted by 41 u.s.c. chapter 21; 2', 1435:'the withholding of information from, or restricting its receiptby, the comptroller general in the course of a protest against the', 1436:'award or proposed award of a federal agency procurement contract; 3 the release of information after award of a contract', 1437:'or cancellation of a procurement if such information is contractor bid or proposal information or source selection information that pertains', 1438:'to another procurement; or 4 the disclosure, solicitation, or receipt of bid or proposal information or source selection information after', 1439:'award if disclosure,solicitation,orreceiptisprohibitedbylaw. see 3.1042b5 and subpart 24.2. 3.1045 disqualification. a contacts through agents or other intermediaries. employmentcontacts between the', 1440:'employee and the offeror, that are conducted through agents, or other intermediaries, may require disqualification under 3.1043c1. these contacts may', 1441:'also require disqualification under other statutes and regulations. see 3.1042b2. b disqualification notice. in addition to submitting the contact report', 1442:'required by 3.1043c1, an agency official who must disqualify himself or herself pursuant to 3.1043c1ii must promptly submit written notice', 1443:'of disqualification from furtherparticipation inthe procurementto the contracting officer,the source selection authority if other than thecontracting officer, and the agency', 1444:'official’s immediate supervisor. asa minimum, the notice must 1 identify the procurement; 2 describe the nature of the agency official’sparticipation', 1445:'inthe procurement and specify theapproximate dates or time period of participation; and 3 identifythe offerorand describe its interest inthe procurement.', 1446:'c resumption of participation in a procurement. 1 the official mustremaindisqualified until such time as theagency, at its sole and', 1447:'exclusivediscretion, authorizes the official to resume participation in the procurement in accordance with 3.1043c1ii. 2 after the conditions of 3.1043c1iia', 1448:'or b have been met, the head of the contracting activity hca, after consultation with the agency ethics official, may', 1449:'authorize the disqualified official to resumeparticipation inthe procurement, or may determine that an additional disqualification period is necessary to protect', 1450:'the integrity of the procurement process. in determining the disqualification period, the hca must consider any factors that create an', 1451:'appearance that the disqualified official acted without complete impartiality in the procurement. the hca’s reinstatement decision should be in writing.', 1452:'3 government officer oremployee must also comply with theprovisionsof 18 u.s.c.208 and 5 cfr part 2635 regarding any resumed participation', 1453:'in a procurement matter. government officer or employee may not be reinstated to participatein a procurementmatter affecting the financial interest', 1454:'of someone with whom theindividual is seeking employment, unless the individual receives i a waiver pursuant to 18 u.s.c. 208b1', 1455:'or b3; or ii an authorization in accordance with the requirements of subpart f of 5 cfr part 2635. 3.1046', 1456:'ethics advisory opinions regardingprohibitions on a formerofficial’sacceptance of compensation from a contractor. a an officialor former official of a federal', 1457:'agency who does not know whether he orshe is or would beprecludedby 41 u.s.c. 2104 see 3.1043d from accepting compensation', 1458:'from a particular contractor may request advice from the appropriate agencyethicsofficial beforeaccepting such compensation. b the request for an advisory', 1459:'opinion must be in writing, include all relevant information reasonably available to the official or former official, and be dated', 1460:'and signed. the request must includeinformationabout the subpart 3.1 safeguards 3.1047 1 procurements, or decisions on matters under 3.1043d1iii,involving the', 1461:'particular contractor,in whichthe individual was or is involved, including contract or solicitation numbers, dates of solicitation or award, a description', 1462:'of the supplies or services procured or to be procured, and contract amount; 2 individual’s participation in the procurement or', 1463:'decision, includingthe dates or time periods of thatparticipation, and the natureof the individual’s duties, responsibilities, or actions; and 3 contractor,', 1464:'including adescription ofthe products or services producedby the division or affiliateof the contractor from whom the individual proposes to accept', 1465:'compensation. c within 30 days after receipt of a request containingcomplete information, or assoon thereafter aspracticable, the agency ethicsofficial should', 1466:'issuean opinion on whether the proposed conductwould violate 41 u.s.c. 2104. d 1ifcompleteinformationisnotincludedintherequest,theagencyethicsofficialmayasktherequestertoprovide more information or request information from other', 1467:'persons, includingthe source selection authority, the contracting officer, or the requester’s immediate supervisor. 2 in issuing anopinion, the agency ethics', 1468:'official mayrely upon the accuracy ofinformation furnished by the requester or other agency sources, unless he or she has reason', 1469:'to believe that the information is fraudulent, misleading, or otherwise incorrect. 3 if the requester is advised in a written', 1470:'opinionby the agency ethics official that the requester mayaccept compensation from a particularcontractor, and accepts suchcompensation in good faith reliance', 1471:'on that advisory opinion, then neither the requester nor the contractor will be found to have knowingly violated 41 u.s.c.', 1472:'2104. if the requester or the contractor has actual knowledge or reason to believe that the opinion is based upon', 1473:'fraudulent, misleading, or otherwise incorrect information, their reliance upon the opinion will not be deemed to be in good faith.', 1474:'3.1047 violationsor possible violations. a a contractingofficer who receivesor obtains information of a violation or possible violationof 41 u.s.c. 2102,', 1475:'2103, or 2104 see 3.1043 must determine if the reported violation or possible violation has any impact on the pending', 1476:'award or selection of the contractor. 1 if the contracting officer concludes that there is no impacton the procurement, the', 1477:'contracting officermust forward the information concerning the violation or possible violation and documentation supporting a determination that there is no', 1478:'impact on the procurement to an individual designated in accordance with agency procedures. iif that individual concurs,the contracting officer mayproceed', 1479:'with the procurement. iiif thatindividual does not concur,the individualmust promptly forward the information and documentation to thehca and advise the', 1480:'contractingofficer to withhold award. 2 if the contracting officer concludes that the violation or possible violation impacts the procurement, the', 1481:'contracting officer must promptly forward the information to the hca. b the hca must review all information available and, in', 1482:'accordance with agency procedures, take appropriate action, such as— 1 advise the contractingofficer to continue with the procurement; 2 begin', 1483:'an investigation; 3 refer the information disclosed to appropriate criminal investigative agencies; 4 conclude that a violation occurred; or 5', 1484:'recommend that the agency head determine thatthe contractor, or someone acting for thecontractor, has engaged in conduct constituting an offense', 1485:'punishable under 41 u.s.c. 2105, for the purpose of voiding or rescinding the contract. c before concludingthat anofferor,contractor, orpersonhas violated', 1486:'41 u.s.c. chapter 21, the hca may consider that the interests of the government are best served by requesting information', 1487:'from appropriate parties regarding the violation or possible violation. d if the hca concludes that 41 u.s.c. chapter 21 has', 1488:'been violated, the hca may directthe contracting officer to 1 if a contract has not been awarded– i cancel the', 1489:'procurement; iidisqualify an offeror; or iii take any other appropriate actionsin the interests of thegovernment. 2 if a contract has', 1490:'been awarded ieffect appropriate contractualremedies,including profit recapture under the clause at 52.20310, price or fee adjustment for illegal or improper', 1491:'activity, or,if the contracthas been rescinded under paragraphd2ii ofthis subsection, recovery of the amount expended under the contract; federal acquisition', 1492:'regulation iivoid orrescind the contract with respectto which– athe contractor or someone acting for the contractor has been convicted for', 1493:'an offense where the conduct constitutes a violation of 41 u.s.c. 2102 for the purpose of either 1 exchanging the', 1494:'information covered by the subsections for anything of value; or 2 obtaining or giving anyone a competitive advantage in the', 1495:'award of a federal agency procurement contract; or b the agency head has determined, based upon a preponderance of the', 1496:'evidence, that the contractor or someone acting for the contractor has engaged in conduct constituting an offense punishable under 41', 1497:'u.s.c. 2105a; or iii take any other appropriate actionsin the bestinterests of thegovernment. 3 refer the matterto the agency suspending', 1498:'or debarring official. e the hca should recommend or direct an administrative or contractual remedy commensurate with the severity and', 1499:'effect of theviolation. f ifthe hca determines that urgent and compelling circumstances justifyan award, or awardis otherwise in theinterests of', 1500:'the government, the hca, in accordance with agency procedures, may authorizethe contracting officer to award the contract or execute the', 1501:'contract modification after notifying the agency head. g the hca may delegate his or herauthority underthissubsection toan individual at least', 1502:'oneorganizational level above the contractingofficer and of general officer, flag, senior executive service, or equivalent rank. 3.1048 criminal andcivil penalties,', 1503:'andfurther administrative remedies. criminal and civil penalties, and administrative remedies, may apply to conduct that violates 41 u.s.c. chapter 21', 1504:'see 3.1043. see 33.102f for special rules regarding bid protests. see 3.1047 for administrative remedies relating to contracts. a an', 1505:'officialwho knowingly fails to comply with the requirements of 3.1043 is subject to the penalties and administrative action set forth', 1506:'in 41 u.s.c. 2105. b an offeror who engages in employment discussion with an official subjectto therestrictions of 3.1043, knowing', 1507:'that theofficial has not complied with 3.1043c1, is subject to the criminal, civil, or administrative penalties set forth in 41', 1508:'u.s.c. 2105. c an officialwho refusesto terminate employment discussions see 3.1045 may be subject to agency administrative actions under 5', 1509:'cfr 2635.604d if theofficial’s disqualification from participation in a particular procurement interferes substantially withthe individual’s ability to perform assigned duties.', 1510:'3.1049 contract clauses. in solicitations and contracts that exceed the simplified acquisition threshold, other than those for commercial products or', 1511:'commercial services, insert the clauses at— a 52.2038, cancellation, rescission, and recovery of funds for illegal or improper activity; and', 1512:'b 52.20310, price or fee adjustment for illegal or improper activity. subpart 3.2 contractor gratuities to government personnel 3.204 subpart', 1513:'3.2 contractor gratuities to government personnel 3.201 applicability. this subpart applies to all executive agencies, except that coverage concerning exemplary', 1514:'damages applies only to the department of defense 10 u.s.c. 4651. 3.202contract clause. the contractingofficer shall insertthe clause at 52.2033,', 1515:'gratuities, in solicitations and contracts with a value exceeding the simplified acquisition threshold, except those for personal services and those', 1516:'between military departments or defense agencies and foreign governments that do not obligate any funds appropriated to the department of', 1517:'defense. 3.203reporting suspected violations of the gratuities clause. agency personnelshallreport suspected violations of thegratuitiesclause to the contracting officer or other', 1518:'designated official in accordance with agency procedures. the agencyreporting procedures shall be published as animplementation of this section 3.203 and', 1519:'shall clearly specify a what to report and how to report it; and b the channels through which reports mustpass,', 1520:'including thefunction and authority ofeach official designated to review them. 3.204 treatment of violations. a before takingany action against a', 1521:'contractor, the agency head or a designee shall determine,after notice and hearing underagency procedures, whether the contractor, its agent, or', 1522:'anotherrepresentative, under a contract containing the gratuities clause 1 offered orgavea gratuity e.g., an entertainmentor gift toan officer,official, or employee', 1523:'of the government;and 2 intended by the gratuity to obtain a contract or favorable treatment under a contract intent generally', 1524:'must be inferred. b agency procedures shall afford the contractor an opportunityto appear with counsel, submit documentary evidence, present witnesses,', 1525:'and confront any person the agency presents. the procedures should be as informal as practicable, consistent with principles of fundamental', 1526:'fairness. c when the agency head or designee determines that a violation has occurred, the government may 1 terminate thecontractor’srightto', 1527:'proceed; 2 initiate debarment or suspension measures as set forth in subpart 9.4; and 3 assess exemplary damages, if the', 1528:'contract uses money appropriated to the department of defense. this page intentionally left blank. subpart 3.3 reports of suspected antitrust', 1529:'violations 3.303 subpart 3.3 reports of suspected antitrust violations 3.301general. a practices that eliminate competition or restrain trade usually lead', 1530:'to excessive prices and may warrant criminal, civil, or administrative action against the participants. examples of anticompetitive practices are collusive', 1531:'bidding, followtheleader pricing, rotated low bids, collusive price estimating systems, and sharing of the business. b contracting personnel are an', 1532:'important potential source of investigative leads for antitrust enforcement and should therefore be sensitive to indicationsof unlawfulbehavior by offerors and', 1533:'contractors. agency personnel shall report, in accordance with agency regulations, evidence of suspected antitrust violations in acquisitions for possible referral', 1534:'to 1 the attorney general under 3.303; and 2 the agency office responsible for contractor debarment and suspension under subpart', 1535:'9.4. 3.302definitions. as used in this subpart identical bids means bids for the same line item that are determined to', 1536:'be identical as to unit price or total line item amount, with or without the application of evaluation factors e.g.,', 1537:'discount or transportation cost. 3.303reporting suspected antitrust violations. a agencies are required by 41 u.s.c.3707 and 10 u.s.c. 3307 to', 1538:'report to the attorney general any bids or proposals that evidence a violation of the antitrust laws. these reports are', 1539:'in addition to those required by subpart 9.4. b the antitrust laws are intended to ensure thatmarkets operate competitively. any', 1540:'agreement ormutualunderstanding among competing firms that restrains the natural operation of market forces is suspect. paragraph c of this section', 1541:'identifies behavior patterns that are often associated with antitrust violations. activities meeting the descriptions in paragraph c are not necessarily', 1542:'improper,but they are sufficiently questionable to warrant notifying the appropriateauthorities,in accordance with agency procedures. c practices or events that may', 1543:'evidence violations of the antitrust laws include 1 the existence of an industry price list or price agreement to which', 1544:'contractors refer in formulating their offers; 2 a sudden change from competitive bidding to identical bidding; 3 simultaneous price increases', 1545:'or followtheleader pricing; 4 rotationof bidsor proposals, sothat each competitor takes a turn in sequence as low bidder, or so', 1546:'that certain competitors bid low only on some sizes of contracts and high on other sizes; 5 division of the', 1547:'market, so that certain competitors bid low only for contracts awarded by certain agencies, or for contracts in certain geographical', 1548:'areas, or on certain products, and bid high on all other jobs; 6 establishment by competitors of a collusive price', 1549:'estimating system; 7 the filingof ajoint bid by two or more competitors when at least oneof the competitors has sufficienttechnical', 1550:'capability and productive capacity for contract performance; 8 any incidents suggesting direct collusion among competitors, such as the appearance of', 1551:'identical calculation or spellingerrorsin two or more competitive offers orthe submission by one firm of offers for other firms;and 9', 1552:'assertionsby the employees, former employees, or competitors of offerors, that an agreementto restraintrade exists. d identical bids shall be reported', 1553:'under this section if the agency has some reason to believe that the bids resulted from collusion. e for offersfrom', 1554:'foreigncontractors for contractsto beperformed outsidethe united states and itsoutlying areas, contracting officers may refer suspectedcollusive offers to theauthorities of the', 1555:'foreign government concerned for appropriate action. f agency reports shall be addressed to the attorney general u.s. department of justice', 1556:'washington dc 20530 attention: assistant attorney general antitrust division and shall include 1 a brief statement describing the suspected practice', 1557:'and the reason for the suspicion; and federal acquisition regulation 2 the name, address, and telephone number of an individual', 1558:'in the agency who can be contacted for further information. g questions concerning this reporting requirement may becommunicated bytelephone directly', 1559:'tothe office of the assistant attorney general, antitrust division. subpart 3.4 contingent fees 3.405 subpart 3.4 contingent fees 3.400scope of', 1560:'subpart. this subpart prescribes policies and procedures that restrict contingent fee arrangements for soliciting or obtaining government contracts to those', 1561:'permitted by 10 u.s.c. 3321b1 and 41 u.s.c. 3901. 3.401definitions. as used in this subpart bona fide agency means an', 1562:'establishedcommercial or selling agency, maintained by a contractor for the purpose of securing business, that neither exerts nor proposes to', 1563:'exert improper influence to solicit or obtain government contracts nor holds itself out as being able to obtain any government', 1564:'contract or contracts through improper influence. bona fide employee means a person, employedby acontractor and subject to thecontractor’s supervision and', 1565:'control as to time, place, and manner of performance, who neither exerts nor proposes to exert improper influence to solicit', 1566:'or obtain government contracts nor holds out as being able to obtain any government contract or contracts through improper influence.', 1567:'contingent fee means any commission, percentage, brokerage, or other fee that is contingent upon the success that a person or', 1568:'concern has in securing a government contract. improper influence means any influence that induces or tends toinduce a government employeeor', 1569:'officer togive consideration or to act regarding a government contracton any basis other than the meritsof the matter. 3.402 statutory', 1570:'requirements. contractors’ arrangements to pay contingent fees for soliciting or obtaining government contracts have long been considered contrary to public', 1571:'policy because such arrangements may lead to attempted or actual exercise of improper influence. in 10 u.s.c. 3321b and 41', 1572:'u.s.c.3901, congress affirmed this public policybut permittedcertain exceptions. these statutes a require in every negotiated contract a warranty by the', 1573:'contractor against contingent fees; b permit, as an exception to the warranty, contingent fee arrangements between contractors and bonafide employees', 1574:'or bona fide agencies; and c provide that, for breach orviolation ofthe warranty by thecontractor, the government may annul the', 1575:'contract without liability or deduct from the contract price or consideration, orotherwise recover, thefull amountof the contingentfee. 3.403 applicability. this', 1576:'subpart appliesto all contracts. statutory requirementsfornegotiated contracts are,as amatter of policy,extended to sealed bid contracts. 3.404contract clause. the contractingofficer shall', 1577:'insertthe clause at 52.2035, covenant against contingent fees, in all solicitations and contracts exceeding the simplified acquisition threshold, other than', 1578:'those for commercial products or commercial services see parts 2 and 12. 3.405 misrepresentations or violations ofthe covenant against contingentfees.', 1579:'a government personnel who suspect or have evidence of attempted or actual exercise of improper influence, misrepresentation of a contingent', 1580:'fee arrangement, or other violation of the covenant against contingent fees shall report thematter promptly to the contracting officeror appropriate', 1581:'higher authority in accordance with agency procedures. b when there is specific evidence or other reasonable basis to suspect one', 1582:'or more of the violations in paragraph a of this section, the chiefof the contractingoffice shall review the facts and,if', 1583:'appropriate, take or direct one or more of the following,or other, actions: 1 if before award, reject the bid or', 1584:'proposal. 2 if after award, enforce the government’s right to annul the contract or to recover the fee. 3 initiate', 1585:'suspension or debarment action under subpart 9.4. 4 refer suspected fraudulent or criminal matters to the department of justice, as', 1586:'prescribed in agency regulations. federal acquisition regulation 3.406records. for enforcement purposes, agencies shall preserve any specific evidence of one or', 1587:'more of the violations in 3.405a, together withall other pertinent data, includinga record of actions taken. contracting offices shall notretire', 1588:'or destroy these records until it is certain that they are no longer needed for enforcement purposes. if the original', 1589:'record is maintained in a central file, a copy must be retained in the contract file. subpart 3.5 other improper', 1590:'business practices 3.5022 subpart 3.5 other improper business practices 3.501buyingin. 3.5011 definition. buyingin, as used in this section, means submitting', 1591:'an offer below anticipated costs, expecting to 1 increase the contract amount after award e.g., through unnecessary or excessively priced', 1592:'change orders; or 2 receive followon contracts at artificially high prices to recover losses incurred on the buyin contract. 3.5012', 1593:'general. a buyingin may decrease competition or result in poor contract performance. the contractingofficer musttake appropriate action to ensure buyingin', 1594:'losses are not recovered by the contractor through the pricing of 1 change orders; or 2 followon contracts subject to', 1595:'cost analysis. b the government should minimize the opportunity for buyingin by seeking a price commitment covering as much of', 1596:'the entire program concerned as is practical by using 1 multiyear contracting, with a requirement in the solicitation that a', 1597:'price be submitted only for the total multiyear quantity; or 2 pricedoptions for additional quantities that, together withthe firm contract', 1598:'quantity, equal the program requirements see subpart 17.2. c other safeguards are available to the contractingofficer to preclude recovery of', 1599:'buyingin lossese.g., amortization of nonrecurring costs see 15.408, table 151, paragraph a, column 2 under formats for submission of line', 1600:'item summaries and treatment of unreasonable price quotations see 15.405. 3.502subcontractor kickbacks. 3.5021 definitions. as used in this section— kickback', 1601:'means any money, fee, commission, credit,gift, gratuity, thing of value, or compensation of any kind which is provided to any', 1602:'prime contractor, prime contractor employee, subcontractor, or subcontractor employee for the purpose of improperly obtaining or rewarding favorable treatment in', 1603:'connection with a prime contract or in connection with a subcontract relating to a prime contract. person means a corporation,partnership,', 1604:'business associationof any kind, trust, jointstock company, or individual. prime contract means a contract or contractual action entered into by', 1605:'the united states for the purpose of obtaining supplies, materials, equipment, or services of any kind. prime contractor means a', 1606:'person who has entered into a prime contract with the united states. prime contractor employee, as used in thissection, means', 1607:'anyofficer, partner, employee,or agent of a prime contractor. subcontract means a contract or contractual action entered into by a prime', 1608:'contractor or subcontractor for the purpose of obtaining supplies, materials, equipment, or services of any kind under a prime contract.', 1609:'subcontractor— 1 means any person, other than the prime contractor, who offers tofurnish or furnishes any supplies,materials, equipment, or services', 1610:'of any kind under a prime contract or a subcontract entered into in connection with such prime contract; and 2', 1611:'includes any person who offers tofurnish orfurnishes generalsupplies to the prime contractoror ahigher tier subcontractor. 3.5022 subcontractor kickbacks. the antikickback', 1612:'act of 1986 now codified at 41 u.s.c. chapter 87, kickbacks, was passed to deter subcontractors from making payments and', 1613:'contractors from accepting payments for the purpose of improperly obtaining or rewarding favorable treatment in connection with a prime contract', 1614:'or a subcontract relating to a prime contract. the kickbacks statute a prohibits any person from 1 providing, attempting to', 1615:'provide, or offeringto provide anykickback; 2 soliciting, accepting, or attempting to accept any kickback; or federal acquisition regulation 3 including,', 1616:'directly or indirectly, the amountof any kickback in the contract price charged by a subcontractor toa prime contractor ora higher', 1617:'tiersubcontractoror in the contract price charged by a prime contractor tothe united states. b imposes criminal penalties on any person', 1618:'who knowingly and willfully engages in the prohibited conduct addressed in paragraph a of this section. c provides for the', 1619:'recovery of civil penalties by the united states from any person who knowingly engages in such prohibited conductand from anyperson', 1620:'whose employee, subcontractor, or subcontractor employeeprovides, accepts,or charges a kickback. d provides that 1 the contractingofficer may offset the amount', 1621:'of a kickback against monies owed bythe unitedstates to the prime contractor under the prime contract to which such kickback', 1622:'relates; 2 the contractingofficer may direct a prime contractor to withhold from anysumsowed to a subcontractor under a subcontract of', 1623:'the prime contract the amount ofany kickback which was or may beoffset against theprimecontractor under paragraph d1 of this section;', 1624:'and 3 an offset under paragraph d1 or a direction under paragraph d2 of thissection is a claim by the', 1625:'government for the purposes of 41 u.s.c. chapter 71, contract disputes. e authorizescontracting officers to orderthat sums withheld under paragraphd2', 1626:'of this section be paid to the contracting agency, or if the sumhas already been offset againstthe prime contractor, that', 1627:'it be retained by the prime contractor. f requires the prime contractor to notify thecontracting officer when the withholding underparagraph', 1628:'d2 of this section has been accomplished unless the amount withheld has been paid to the government. g requires aprimecontractor', 1629:'or subcontractor to report in writing to the inspector general of the contracting agency, the head of the contracting agency', 1630:'if the agency does not have an inspector general, or the attorney general any possible violation of the kickbacks statute', 1631:'when the prime contractor or subcontractor has reasonable grounds to believe such violation may have occurred. h provides that, for', 1632:'the purpose of ascertaining whether there has been a violation of the kickbacks statute with respect to any prime contract,', 1633:'the government accountabilityoffice andthe inspector general of thecontracting agency, or a representative of such contracting agency designated by the head', 1634:'of the agency if the agency does not have an inspector general, shall have access to and may inspect the', 1635:'facilities and audit the books and records, including any electronic data or records, of any prime contractor or subcontractor under', 1636:'a prime contract awardedby such agency. i requires each contracting agency to include in each prime contract, other than for', 1637:'commercial products or commercial services, exceeding $150,000, a requirement that the prime contractor shall– 1 have in place and follow', 1638:'reasonable procedures designed to prevent and detect violations of the kickbacks statute in its own operations and direct business relationships', 1639:'e.g., company ethics rules prohibiting kickbacks by employees, agents, or subcontractors; education programs for new employees and subcontractors, explaining policies', 1640:'about kickbacks, related company procedures and the consequences of detection; procurement procedures to minimize the opportunity for kickbacks; audit procedures', 1641:'designed to detect kickbacks; periodic surveys of subcontractors to elicit information about kickbacks; procedures toreport kickbacks tolawenforcement officials; annual declarations', 1642:'by employees of gifts or gratuities received from subcontractors; annual employee declarations that they have violated no company ethics rules;', 1643:'personnel practices that document unethical or illegal behavior and make such information available to prospective employers; and 2 cooperate fully', 1644:'with any federal agency investigating a possible violation of the kickbacks statute. j notwithstanding paragraph i of this section, a', 1645:'prime contractor shall cooperate fully with any federal government agency investigating a violation of 41 u.s.c. 8702 see 41 u.s.c.', 1646:'8703b. 3.5023 contract clause. the contractingofficer shall insertthe clause at 52.2037, antikickback procedures, in solicitations and contracts exceeding $150,000, other', 1647:'than those for commercial products or commercial services see part 12. subpart 3.5 other improper business practices 3.5032 3.503 unreasonable', 1648:'restrictions onsubcontractor sales. 3.5031 policy. 10 u.s.c. 4655 and 41 u.s.c. 4704 require that subcontractors not be unreasonably precluded from', 1649:'making direct sales to thegovernment of any supplies or services made or furnished under a contract. however, this does not', 1650:'preclude contractors from asserting rights that are otherwise authorized by law or regulation. 3.5032 contract clause. the contractingofficer shall insertthe', 1651:'clause at 52.2036, restrictions on subcontractor sales to the government, in solicitations and contracts exceeding the simplified acquisition threshold. for', 1652:'the acquisition of commercial products or commercial services, the contracting officer shall use the clause with its alternate i. this', 1653:'page intentionally left blank. subpart 3.6 contracts with government employees or organizations owned or controlled by them 3.603 subpart 3.6', 1654:'contracts with government employees or organizations owned or controlled by them 3.601 policy. a except as specified in 3.602, a', 1655:'contracting officershallnot knowingly award a contract to a government employee or to a business concern or other organization ownedor substantially', 1656:'owned orcontrolled by one or more government employees. this policy is intended to avoid any conflict of interest that might', 1657:'arise between the employees’ interests and their government duties, and to avoid the appearance of favoritism or preferential treatment by', 1658:'the government toward its employees. b for purposes of this subpart, special government employees as defined in 18 u.s.c. 202', 1659:'performing services as experts, advisors, or consultants, or as members of advisory committees, are not considered government employees unless 1', 1660:'the contract arisesdirectlyout of theindividual’sactivity as a specialgovernment employee; 2 in the individual’s capacity as a specialgovernment employee, the individual', 1661:'is in aposition to influence the award of the contract; or 3 another conflict of interest is determined to exist.', 1662:'3.602exceptions. the agency head, or a designee not below the level of the head of the contracting activity, may authorize', 1663:'an exception to the policy in 3.601 only ifthere is a mostcompelling reason to do so,such as whenthe government’s needs', 1664:'cannot reasonably be otherwise met. 3.603 responsibilities ofthe contracting officer. a before awarding a contract, the contractingofficer shall obtainan authorization', 1665:'under 3.602 if 1 the contractingofficer knows, or has reason to believe, that a prospective contractor is one to which', 1666:'awardis otherwise prohibited under 3.601; and 2 there is a most compelling reason to make an award to that prospective', 1667:'contractor. bthecontractingofficershallcomplywiththerequirementsandguidancein subpart 9.5 before awarding a contract to anorganization owned or substantially ownedor controlled by government employees. this page', 1668:'intentionally left blank. subpart 3.7 voiding and rescinding contracts 3.704 subpart 3.7 voiding and rescinding contracts 3.700scope of subpart. a', 1669:'this subpart prescribes governmentwide policies and procedures for exercising discretionary authority to declare void and rescind contracts in relation to', 1670:'which 1 there has been afinal conviction for bribery, conflict of interest, disclosure orreceipt of contractor bid or proposal information', 1671:'or source selection information in exchange for a thing of value or to give anyone a competitive advantage in the', 1672:'award of a federal agency procurement contract, or similar misconduct; or 2 there has been an agency head determination that', 1673:'contractor bid or proposal information or source selection information has been disclosed or received in exchange for a thing of', 1674:'value, or for the purpose of obtaining or giving anyone a competitive advantage in the award of a federal agency', 1675:'procurement contract. b this subpart does not prescribepolicies orprocedures for, or governthe exerciseof,any otherremedy available to the government with respect', 1676:'to such contracts, including but not limited to, the common law right of avoidance, rescission, or cancellation. 3.701purpose. this subpart', 1677:'provides a an administrative remedy with respect to contracts in relation to which there has been 1 a final conviction', 1678:'for bribery,conflictof interest, disclosure or receipt of contractor bid or proposal information or source selection information in exchange for a', 1679:'thing of value or to give anyone a competitive advantage in the award of a federal agency procurement contract, or', 1680:'similar misconduct; or 2 an agency head determination that contractor bid or proposal information or source selection information has been', 1681:'disclosed or received in exchange for a thing of value, or for the purpose of obtaining or giving anyone a', 1682:'competitive advantage in the award of a federal agency procurement contract; and b a means to deter similar misconduct in', 1683:'the future by those who are involved in the award, performance, and administration of government contracts. 3.702definition. final conviction means', 1684:'a conviction, whether entered on a verdict or plea, including a plea of nolo contendere, for which a sentence has', 1685:'been imposed. 3.703 authority. a section 1e of public law 87849, 18 u.s.c.218 the act, empowers the president or the', 1686:'heads of executive agencies acting under regulations prescribed by the president, to declare void and rescind contracts and other transactions', 1687:'enumerated in the act, in relation to whichthere hasbeena final conviction for bribery, conflict of interest,or any other violation of', 1688:'chapter 11of title 18 of theunited statescode 18 u.s.c. 201224. executive order 12448, november 4,1983, delegates the president’s authorityunder theactto', 1689:'theheads of the executive agencies and military departments. b 41 u.s.c. 2105crequiresa federal agency, upon receiving information that a contractor', 1690:'ora person has violated 41 u.s.c. 2102, to consider rescission of a contract with respect to which 1 the contractoror', 1691:'someone acting for the contractorhas been convicted for an offense punishable under 41 u.s.c. 2105a; or 2 the head ofthe', 1692:'agency, or designee, has determined, based upon a preponderance of theevidence, thatthe contractor orsomeone actingforthe contractor has engaged in conduct', 1693:'constituting such an offense. 3.704 policy. a in cases in which there is a final conviction for any violation of', 1694:'18 u.s.c. 201224 involving or relating to contracts awarded by anagency,the agency head or designee, shall consider the facts available', 1695:'and, if appropriate,may declare void and rescind contracts, and recover the amounts expended and property transferred by the agency in', 1696:'accordance with the policies and procedures of this subpart. b since a final conviction under 18 u.s.c. 201224 relating to', 1697:'a contract also may justify the conclusion that the party involved is not presently responsible, the agency should consider initiating', 1698:'debarment proceedings in accordance with subpart 9.4,debarment, suspension, and ineligibility,if debarment has notbeeninitiated, or is notin effect at the time', 1699:'the final conviction is entered. federal acquisition regulation c if there is a final convictionforan offense punishable under 41 u.s.c.', 1700:'2105, orif the head of the agency,or designee, has determined, based upon a preponderance of the evidence, that the contractor', 1701:'or someone acting for the contractor has engaged in conduct constituting such an offense, thenthe head of the contracting activity', 1702:'shall consider, in addition to any other penalty prescribed by law or regulation 1 declaring void and rescinding contracts, as', 1703:'appropriate, and recovering the amounts expended under the contracts by using the procedures at 3.705 see 3.1047; and 2 recommending', 1704:'the initiation of suspension or debarment proceedings in accordance with subpart 9.4. 3.705 procedures. a reporting. the facts concerning any', 1705:'final conviction for any violation of 18 u.s.c. 201224 involving or relating to agency contracts shall be reportedpromptly to the', 1706:'agency head or designee for that official’sconsideration. the agencyhead or designee shall promptly notify the civil division, department of justice,', 1707:'that the action is being considered under this subpart. b decision. following an assessment of the facts, the agency head', 1708:'or designee may declare void and rescind contracts with respect to which a final conviction has been entered, and recover', 1709:'the amounts expended and the property transferred by the agency under the terms of the contracts involved. c decisionmaking process.', 1710:'agency procedures governing the voiding and rescinding decisionmaking process shall be as informal as practicable,consistent with theprinciples of fundamental fairness.', 1711:'as aminimum, however, agencies shall provide the following: 1 a notice of proposed action to declare void and rescind the', 1712:'contract shall be made in writing and sent by certified mail, return receipt requested. 2 a thirty calendar day period', 1713:'after receipt of the notice, for the contractor to submit pertinent information before any final decision is made. 3 upon', 1714:'request made within theperiod for submission of pertinent information, an opportunity shall be afforded for a hearingat which witnesses may', 1715:'be presented, and any witness the agency presents maybe confronted. however, no inquiry shall be made regarding the validity of', 1716:'a conviction. 4 if the agencyheador designee decides to declare void and rescind thecontracts involved, thatofficial shall issue a written', 1717:'decision which i states that determination; ii reflects consideration of the fair value of any tangible benefits received and retained', 1718:'by the agency; and iii states the amount due andthe property tobe returned to the agency. d notice of proposed', 1719:'action. the notice of proposed action, as a minimum shall 1 advise that consideration is being given to declaring void', 1720:'and rescindingcontracts awardedby the agency, and recovering the amounts expended and property transferred therefor, under the provisionsof 18 u.s.c. 218;', 1721:'2 specifically identify thecontracts affected by the action; 3 specifically identify theoffense or finalconviction on which the action is based;', 1722:'4 state the amounts expended and property transferred under each of the contracts involved, and the money and the property', 1723:'demanded to be returned; 5 identify any tangible benefits received and retained by the agency under the contract, and the', 1724:'value of those benefits, as calculated by the agency; 6 advise that pertinent information may be submitted within 30 calendar', 1725:'days after receipt of the notice, and that, if requested within that time, a hearing shall be held at which', 1726:'witnesses may be presented and any witness the agency presents may be confronted; and 7 advise that action shall be', 1727:'taken only after the agency head or designee issues a final written decision on the proposed action. e final agency', 1728:'decision. the final agency decision shall be based on the information available to the agency head or designee, including any', 1729:'pertinent information submitted or, ifa hearing was held, presented at the hearing. if theagency decision declares void and rescinds the', 1730:'contract, the final decision shall specify the amounts due and property to be returned to the agency, and reflectconsideration of', 1731:'the fair value of any tangible benefits received and retained by the agency. notice of the decision shall be sent', 1732:'promptly by certified mail, return receipt requested. rescission of contracts under the authority of the act and demand for recovery', 1733:'of the amounts expended and property transferredtherefor, is not a claim within the meaning of 41 u.s.c. chapter 71, contract', 1734:'disputes, or part 33. therefore, the procedures required by the statute and the subpart 3.7 voiding and rescinding contracts 3.705', 1735:'far for the issuance of a final contracting officer decision arenot applicableto final agency decisions under this subpart, and shall', 1736:'not be followed. this page intentionally left blank. subpart 3.8 limitations on the payment of funds to influence federal transactions', 1737:'3.801 subpart 3.8 limitations on the payment of funds to influence federal transactions 3.800scope of subpart. this subpart prescribes policies', 1738:'and procedures implementing 31 u.s.c. 1352, limitation on use of appropriated funds to influence certain federal contracting and financial transactions.', 1739:'3.801definitions. as used in this subpart agency means executive agency as defined in 2.101. covered federal action means any of', 1740:'the following actions: 1 awarding anyfederal contract. 2 making any federal grant. 3 making any federal loan. 4 entering into', 1741:'any cooperative agreement. 5 extending, continuing, renewing, amending, or modifying any federal contract, grant, loan, or cooperative agreement. indian tribe', 1742:'and tribal organization have the meaning provided in section 4 of the indian selfdetermination and education assistance act 25 u.s.c.', 1743:'450b and include alaskan natives. influencing or attempting to influence means making, with the intent to influence, any communication to', 1744:'or appearance beforean officer or employee of any agency, a member of congress, an officer or employee of congress, or', 1745:'an employee of a member of congress in connection with any covered federal action. local government means a unit of', 1746:'government in a state and, if chartered, established, or otherwise recognized by a state for the performance ofa governmental duty,', 1747:'includinga local public authority, a special district, an intrastate district, a council of governments, a sponsor group representative organization, and', 1748:'any other instrumentality of a local government. officer or employee of an agency includes the following individuals who are employed', 1749:'by an agency: 1 an individual whois appointed toa positionin thegovernment under title 5, united states code, including a position', 1750:'under a temporary appointment. 2 a member of the uniformed services, as definedin subsection1013, title 37, united states code. 3', 1751:'a special government employee, as defined insection 202, title 18, united states code. 4 an individual who is a member', 1752:'of a federal advisory committee, as defined by the federal advisory committee act, title 5, unitedstates code,appendix 2. person means', 1753:'an individual, corporation,company, association,authority,firm,partnership, society, state, and local government, regardless of whether such entity is operated for profit or not', 1754:'for profit. this term excludes an indian tribe, tribal organization, orany otherindian organizationeligible toreceivefederal contracts, grants, cooperative agreements, or loans', 1755:'from an agency, butonlywith respect to expenditures by such tribe or organization that are made for purposes specified in paragraph', 1756:'3.802aand are permitted by other federal law. reasonable compensation means, with respectto a regularly employed officeror employee of anyperson, compensation', 1757:'that is consistent withthe normal compensation for suchofficer or employee for work that is notfurnished to, not funded by, or', 1758:'not furnished in cooperation with the federal government. reasonable payment means, with respect to professional and other technical services, a', 1759:'payment in an amount that is consistent with the amount normally paid for such services in the private sector. recipient', 1760:'includes the contractor and all subcontractors. this termexcludesan indiantribe, tribal organization, or any other indianorganization eligible to receive federal contracts,', 1761:'grants,cooperative agreements, orloans from an agency, but only with respect to expenditures by such tribe or organization that are made', 1762:'for purposes specified in paragraph 3.802a and arepermitted by other federal law. regularly employed means, with respect to an officer', 1763:'or employeeof aperson requesting or receiving afederal contract, anofficer or employee who is employed by such person for atleast 130', 1764:'working days within 1 year immediatelypreceding thedate of the submission that initiates agency consideration of such person for receipt of', 1765:'such contract. an officer or employee who is employed by such person for less than 130 working days within 1', 1766:'year immediately preceding the date of the submission that initiates agency consideration of such person shall be considered to be', 1767:'regularly employed as soon as he or she is employed by such person for 130 working days. state means a', 1768:'state of the united states, the district of columbia, an outlying area of the united states, an agency or instrumentality', 1769:'of a state, and multistate, regional, or interstate entity having governmental duties and powers. federal acquisition regulation 3.802 statutory prohibition', 1770:'and requirement. a 31 u.s.c.1352 prohibits a recipient of a federal contract, grant, loan, or cooperative agreement from using appropriated', 1771:'funds to pay any person for influencing orattempting to influence an officer or employee of any agency, a member of', 1772:'congress, an officeror employee of congress, or an employee of a member of congress in connection with any covered federal', 1773:'actions. 1 for purposes of this subpart the term appropriated funds does not include profit or fee from a covered', 1774:'federal action. 2 to the extent a person can demonstrate thatthe person has sufficientmonies, otherthan federal appropriated funds, the government', 1775:'shall assume that these other monies were spent for any influencing activities that would be unallowable if paid for with', 1776:'federal appropriated funds. b 31 u.s.c.1352 also requires offerors to furnisha declaration consisting ofbotha certification and a disclosure, with periodic', 1777:'updates of the disclosure after contract award. these requirements are contained in the provision at 52.20311, certification anddisclosure regarding payments', 1778:'to influence certain federaltransactions, and the clause at 52.20312, limitation on payments toinfluence certain federal transactions. 3.803exceptions. a the prohibition', 1779:'of paragraph 3.802a does not apply under the following conditions: 1 agency and legislative liaison by own employees. i payment', 1780:'of reasonable compensation made to an officer or employee of a person requesting or receiving a covered federal action if', 1781:'the payment is for agency and legislative liaison activities not directly related to a covered federal action. for purposes of', 1782:'this paragraph, providing any information specifically requested by an agency or congress is permitted at any time. ii participating with', 1783:'an agency in discussions that are not related to a specific solicitation for any covered federal action, but that concern', 1784:'athe qualitiesand characteristics including individual demonstrations of the person’s products or services, conditions or terms of sale, and service capabilities;', 1785:'or b the application or adaptationof the person’s products or servicesforan agency’s use. iii providing prior to formal solicitation of', 1786:'any covered federal action any information not specifically requested but necessary for an agency to make an informed decision about', 1787:'initiation of a covered federal action. iv participating in technical discussions regarding thepreparationof an unsolicited proposal prior to its official', 1788:'submission. v making capability presentations prior to formal solicitation of any covered federal action when seeking an award from an', 1789:'agency pursuant to the provisions of the small business act, as amended by pub. l. 95507, and subsequent amendments. 2', 1790:'professional and technical services.i payment of reasonable compensation made to an officeror employee ofa person requesting or receiving a covered', 1791:'federal action, if payment is for professional or technical services rendered directly in the preparation, submission, or negotiation of any', 1792:'bid, proposal, or application for that federal action or for meeting requirements imposed by or pursuant to law as a', 1793:'condition for receiving that federal action; iiany reasonable payment to aperson, other than an officer or employeeof apersonrequesting or receiving', 1794:'a covered federal action, if the payment is for professional or technical services rendered directly in the preparation, submission, or', 1795:'negotiation of any bid, proposal, or application for that federal action, or for meeting requirements imposed by orpursuant to law', 1796:'as a condition for receivingthat federalaction. personsother thanofficers or employees ofa person requesting or receiving a covered federal action include', 1797:'consultants and trade associations. iii as used in paragraph a2 of this section professional and technical services are limited to', 1798:'advice and analysis directly applying any professional or technical discipline. for example, drafting of a legal document accompanying a bid', 1799:'or proposal by a lawyer isallowable. similarly, technical advice provided by an engineer on theperformance or operational capability ofa pieceof', 1800:'equipment rendered directly in the negotiationof acontract is allowable. however, communications with the intent to influence made by a professional', 1801:'or a technical person are not allowable under this section unless they provide advice and analysis directly applying their professional', 1802:'or technical expertise and unless the advice or analysis is rendered directly and solely in the preparation, submission or negotiation', 1803:'of a covered federal action. thus, for example, communications with the intent to influence made by a lawyer that do', 1804:'not provide legal advice or analysis directly and solely related tothe legalaspects of his or her client’sproposal, but generally advocate', 1805:'oneproposal over another, are not allowable under this section because thelawyer is notproviding professional legalservices. similarly, communications with the intent', 1806:'to influence made by an engineer providing an engineering analysis prior to the preparation or submission of subpart 3.8 limitations', 1807:'on the payment of funds to influence federal transactions 3.808 a bid or proposal are not allowable under this section', 1808:'since the engineer is providing technical services but not directly in the preparation, submission or negotiation of a covered federal', 1809:'action. iv requirements imposed by or pursuant to law as a condition for receiving a covered federal award include those', 1810:'required by law or regulation and any other requirements in the actual award documents. b only those communications and services', 1811:'expressly authorized by paragraph a of this section are permitted. c the disclosure requirements of paragraph 3.802b do not apply', 1812:'with respect to payments of reasonable compensation made to regularly employed officers or employees of a person. 3.804 policy. the', 1813:'contractingofficer shall obtain certifications and disclosures as required by the provision at 52.20311, certification and disclosure regarding payments to influence', 1814:'certain federal transactions, prior to the award of any contractexceeding $150,000. 3.805exemption. the secretary of defense may exempt, on a', 1815:'casebycase basis, a covered federal action from the prohibitions of this subpart whenever the secretary determines, in writing, that such', 1816:'an exemption is in the national interest. the secretary shall transmit a copy of the exemption to congress immediately after', 1817:'making the determination. 3.806 processing suspected violations. the contractingofficer shall report suspected violations of the requirements of 31 u.s.c.1352 in', 1818:'accordance with agency procedures. 3.807civil penalties. agencies shall impose and collect civil penalties pursuant to the provisions of the program', 1819:'fraud and civil remedies act,31 u.s.c.3803 except subsectionc, 38043808, and 3812, insofar as the provisions therein are not inconsistent with', 1820:'the requirements of this subpart. 3.808 solicitation provision and contract clause. a insert the provision at 52.20311, certification and disclosure', 1821:'regarding payments to influence certain federal transactions, in solicitations expected to exceed $150,000. b insert the clause at 52.20312,limitationon payments', 1822:'to influence certain federal transactions, in solicitations and contracts expected to exceed $150,000. this page intentionally left blank. subpart 3.9', 1823:'whistleblower protections for contractor employees 3.903 subpart 3.9 whistleblower protections for contractor employees 3.900scope of subpart. this subpart implements various', 1824:'statutory whistleblower programs. this subpart does not implement 10 u.s.c. 4701, which is applicable only to dod, nasa, and the', 1825:'coast guard. a 41 u.s.c. 4712 is implemented in 3.900 through 3.906. these sections do not apply to— 1 dod,', 1826:'nasa, and the coast guard; or 2 any elementof the intelligence community, as definedin section 34 ofthe nationalsecurity act of', 1827:'194750 u.s.c. 30034. sections 3.900 through 3.906 do not apply to any disclosure made by an employee of a contractor', 1828:'or subcontractor of an element of the intelligence community if such disclosure— i relates to an activity of an element', 1829:'of the intelligence community; or iiwas discovered duringcontract orsubcontract services provided toan element of the intelligence community. b section743 of', 1830:'division e, title vii, of the consolidated and further continuing appropriations act,2015 pub. l. 113–235 and its successor provisions in', 1831:'subsequent appropriations acts and as extended in continuing resolutions, is implemented in 3.909, which is applicable to all agencies. c', 1832:'section 3.907 of this subpart implements section 1553 of the american recovery and reinvestment act of 2009 pub. l. 111–5,', 1833:'and applies to all contracts funded in whole or in part by that act. 3.901definitions. as used in this subpart', 1834:'abuse of authority means an arbitrary and capricious exercise of authority that is inconsistent with the mission of the executive', 1835:'agency concerned orthe successful performanceof acontract ofsuch agency. authorized official of the department of justice means any person responsible for', 1836:'the investigation, enforcement, or prosecution of any law or regulation. inspector general means an inspector general appointed under chapter 4', 1837:'of title 5 of the united states code and any inspector general thatreceives funding from,or has oversight over contractsawarded for,', 1838:'or on behalf of, the executive agency concerned. this definition does not apply to 3.907. internal confidentiality agreement or statement', 1839:'means a confidentiality agreement or any other written statement that the contractor requires any of its employees or subcontractors to', 1840:'sign regarding nondisclosure of contractor information, except that it does not include confidentiality agreements arising out of civil litigation or', 1841:'confidentiality agreements that contractor employees or subcontractorssign at thebehest of a federalagency. subcontract means any contract as defined in subpart', 1842:'2.1 entered into by a subcontractor to furnish supplies or services for performance of a prime contract or a subcontract.', 1843:'it includes but is not limited to purchase orders, and changes and modifications to purchase orders. subcontractor means any supplier,distributor,', 1844:'vendor,or firm including a consultantthat furnishes supplies or services to or for a prime contractor or another subcontractor. 3.902classified information.', 1845:'41 u.s.c. 4712 doesnot provide any right to disclose classified information not otherwiseprovidedby law. 3.903 policy. a 1contractorsandsubcontractorsareprohibitedfromdischarging,demoting,orotherwisediscriminatingagainst an employee', 1846:'as a reprisal for disclosing, to any of the entities listed at paragraph b of this section, information that the', 1847:'employee reasonably believes is— i evidence of gross mismanagement of a federal contract; ii a gross waste of federal funds;', 1848:'iii an abuse of authority relating to a federal contract; iv a substantial and specific danger to public health or', 1849:'safety; or v a violation of law,rule, or regulation related to a federal contract including thecompetition for or negotiation of', 1850:'a contract. 2 a reprisalis prohibited even ifitis undertaken atthe request ofan executivebranch official, unless the request takes theform ofa', 1851:'nondiscretionarydirective andis within the authority ofthe executive branch official making the request. b disclosure may be made to the following', 1852:'entities: federal acquisition regulation 1 a member of congress or a representative of a committee of congress. 2 an inspector', 1853:'general. 3 the government accountability office. 4 a federalemployee responsible for contract oversightor management at the relevant agency. 5 an', 1854:'authorized officialof the department of justiceor other law enforcementagency. 6 a court or grand jury. 7 a management official or', 1855:'other employee ofthe contractor orsubcontractorwho has the responsibility to investigate, discover, or addressmisconduct. c an employee who initiates or provides', 1856:'evidence of contractor or subcontractor misconduct in any judicial or administrative proceeding relating to waste, fraud, or abuse on a', 1857:'federal contract shall be deemed to have made a disclosure. 3.904complaints. 3.9041 procedures for filing complaints. a contractor orsubcontractoremployee who', 1858:'believes that he or she has been discharged,demoted, or otherwise discriminated against contrary to the policy in 3.903 may submit', 1859:'a complaint with the inspector general of the agency concerned. procedures for submitting fraud, waste, abuse, and whistleblower complaints are', 1860:'generally accessible on agency office of inspector general hotline or whistleblower internet sites or the complainant may directly contact the', 1861:'cognizant office of the inspector general for submission instructions. acomplaint by the employee may not be brought under 41 u.s.c.', 1862:'4712 more than three years after the date on which the alleged reprisal took place. 3.9042 procedures for investigating complaints.', 1863:'a investigation of complaints will be in accordance with 41 u.s.c. 4712b. b upon completion of the investigation, the head', 1864:'of the agency shall ensure that the report of findings has been provided by the inspector general to the head', 1865:'of the agency and to— 1 the complainant and any person acting on the complainants behalf; and 2 the contractor', 1866:'and/or subcontractor alleged to have committed the violation. c thecomplainant, contractor, and/or subcontractor shall be afforded the opportunity to submit', 1867:'a written responseto the report of findings to the head of the agency and the office of inspector general ina', 1868:'time and mannerthat permitsthe agency head to take action not later than 30 days after receiving the report, as required', 1869:'by 3.905–1a. 3.905 remedies andenforcement of orders. 3.9051 remedies. a agency response to inspector general report. not later than 30', 1870:'days after receiving a report pursuant to 3.9042, the head of the agency shall— 1 determine whether sufficient basis existsto', 1871:'concludethat thecontractor or subcontractor has subjected the employee who submitted the complaint to a reprisal as prohibited by 3.903; and', 1872:'2 either issue an order denying relief or take one or more of the following actions: iorderthe contractor orsubcontractorto takeaffirmativeaction', 1873:'to abate the reprisal. ii order the contractor or subcontractor to reinstate the complainant employee to the position that the', 1874:'person held before the reprisal, together with compensatory damages including back pay, employment benefits, and other terms and conditions of', 1875:'employment that would apply to the person in that position if the reprisal had not been taken. iii order the', 1876:'contractor or subcontractor to pay the complainant employee an amount equal to the aggregate amount of all costs and expenses', 1877:'including attorneys fees and expert witnesses fees that were reasonably incurred by thecomplainant for, orin connection with, bringing thecomplaint regarding', 1878:'thereprisal, as determined by the head of the agency. iv consider disciplinaryor corrective action against any official of the executive', 1879:'agency, if appropriate. b complainants right to go to court. 1 paragraph b2 of this section applies if— i the', 1880:'head of the agency issues an order denying relief; or ii a the head of the agency has not issued', 1881:'an order— 1 within 210days after the submissionof the complaint; or subpart 3.9 whistleblower protections for contractor employees 3.9071 2', 1882:'within 30 days after the expirationof an extension of time grantedin accordance with 41 u.s.c. 4712b 2b for the submission', 1883:'of the report to those stated in 3.9042b; and b there is no showing that such delay is due to', 1884:'the bad faith of the complainant. 2 if the conditions in either paragraph b1i or ii of this section are', 1885:'met— i the complainant shall be deemed to have exhausted all administrative remedies with respect to the complaint; and ii', 1886:'the complainant may bring a de novo action at law or equity against the contractor or subcontractor to seek compensatory', 1887:'damages and other relief available under 41 u.s.c. 4712 in the appropriate district court of the united states, which shall', 1888:'have jurisdiction over such an action withoutregard to the amount in controversy. asuch an actionshall, at the request of eitherparty', 1889:'to theaction,be tried by the court with a jury. b an action under this authority may not be brought more', 1890:'than 2 years after the date on which remedies are deemed to have been exhausted. c admissibility in evidence. an', 1891:'inspector general determination and an agency head order denying relief under this section shall be admissible in evidence in any', 1892:'de novo action at law or equity brought pursuant to 41 u.s.c. 4712. d no waiver. the rights and remedies', 1893:'provided for in 41 u.s.c. 4712 may not be waived by any agreement, policy, form, or condition of employment. 3.9052', 1894:'enforcementof orders. a whenever a contractor or subcontractor fails to comply with an order issued under 3.905–1a2, the head of', 1895:'the agency concerned shall file an action for enforcement of the order in the u.s. district court for a district', 1896:'in which the reprisal was found to have occurred. in anyaction brought pursuant to this authority, the court maygrant appropriate', 1897:'relief,including injunctive relief, compensatory and exemplary damages, and attorney fees and costs. the complainant employee upon whose behalf an order', 1898:'was issued may also file suchan action or join in an action filed by the head of theagency. b any', 1899:'person adversely affected or aggrieved by an order issued under 3.905–1a2 may obtain review of the orders conformance with 41', 1900:'u.s.c. 4712 and its implementing regulations, in the u.s. court of appeals for a circuit in which the reprisal is', 1901:'alleged in the order to have occurred. no petition seeking such review may be filed more than 60 days after', 1902:'issuance of the order by the head of the agency. filingsuch an appeal shall not act to stay the enforcement', 1903:'ofthe orderof the head of an agency, unless astayis specifically entered by thecourt. 3.906contract clause. the contractingofficer shall insertthe clause', 1904:'at 52.20317, contractor employee whistleblower rights, in all solicitations and contracts, except solicitations and contracts of dod, nasa, the coast', 1905:'guard, or applicable elements of the intelligence community see 3.900a. 3.907 whistleblower protections under the american recovery and reinvestment act', 1906:'of 2009 the recovery act. 3.9071 definitions. as used in this section board meansthe recovery accountability andtransparencyboard establishedby section 1521', 1907:'of the recovery act. covered funds means any contract payment, grant payment, or other payment received by a contractor if', 1908:'1 the federal government provides any portion of the money or property that is provided, requested, or demanded; and 2', 1909:'at least some of the funds are appropriated or otherwise made available by the recovery act. covered information means information', 1910:'that the employee reasonably believes is evidence of gross mismanagement of the contract or subcontract related to covered funds, gross', 1911:'waste of covered funds, a substantial and specific danger to public health or safety related to the implementation or use', 1912:'of covered funds, an abuse of authority related to the implementation or use of coveredfunds, ora violation of law, rule,', 1913:'or regulationrelated to an agency contract including the competition for or negotiation of a contract awarded or issued relating to', 1914:'covered funds. inspector general means an inspector general appointed under the inspector general act of 1978. in the department of', 1915:'defense that is the dod inspector general. in the case of an executive agency that does not have an inspector', 1916:'general, the duties shall be performed by an official designated by theheadof the executive agency. federal acquisition regulation nonfederal employer,', 1917:'as used in this section, means any employer that receives recovery act funds, including a contractor, subcontractor, orotherrecipient of funds', 1918:'pursuant to a contractor other agreement awarded and administered in accordance with the federal acquisition regulation. 3.9072 policy. nonfederal employers', 1919:'are prohibited from discharging, demoting,or otherwise discriminating againstan employee asa reprisal for disclosing covered information to any of the following', 1920:'entities or their representatives: 1 the board. 2 an inspector general. 3 the comptroller general. 4 a member of congress.', 1921:'5 a state orfederal regulatory or law enforcement agency. 6 a person with supervisory authority over the employee or such', 1922:'other person working for the employer who has the authorityto investigate, discover, or terminate misconduct. 7 a court or grand', 1923:'jury. 8 the head ofa federal agency. 3.9073 procedures for filing complaints. a an employee who believes that he or', 1924:'she has been subjected to reprisal prohibited by the recovery act, section 1553 as set forth in 3.9072, may submit', 1925:'a complaint regarding the reprisal to the inspector general of the agency that awarded the contract. b the complaint shall', 1926:'be signed and shall contain 1 the name of the contractor; 2 the contract number, ifknown; if not, a descriptionreasonably', 1927:'sufficient to identify thecontracts involved; 3 the covered information giving rise to the disclosure; 4 the nature of the disclosure', 1928:'giving rise to the discriminatory act; and 5 the specific nature and date of the reprisal. c a contractingofficer who', 1929:'receivesa complaint of reprisalof the typedescribed in 3.9072 shall forward it to the office of inspector general and to other', 1930:'designated officials in accordance with agency procedures e.g., agency legal counsel. 3.9074 procedures for investigating complaints. investigation of complaints will', 1931:'be in accordance with section 1553 of the recovery act. 3.9075 access to investigative file of inspector general. a the', 1932:'employee alleging reprisal under this section shall have access to the investigation file of the inspector general, in accordance with', 1933:'the privacy act, 5 u.s.c. §552a. the investigation of the inspector general shall be deemed closed for the purposes of', 1934:'disclosure under such section when an employee files an appeal to the agency head or a court of competent jurisdiction.', 1935:'b in the event the employee alleging reprisal brings a civil action under section 1553c3 of the recovery act, the', 1936:'employee alleging the reprisal and the nonfederal employer shall have access to the investigative file of the inspector general in', 1937:'accordance with the privacy act. c the inspector general may exclude from disclosures made under 3.9075a or b 1 information', 1938:'protected from disclosure by a provision of law; and 2 any additional information the inspector general determines disclosure of which', 1939:'would impede a continuing investigation, provided that such information is disclosed once such disclosure would no longer impede such investigation,', 1940:'unless the inspector general determines that the disclosure of law enforcement techniques, procedures, or information could reasonably be expected to', 1941:'risk circumvention of the law or disclose the identity of a confidential source. d an inspector general investigating an alleged', 1942:'reprisal under this section may not respond to any inquiry or disclose any information from or about any person alleging', 1943:'such reprisal, except in accordance with 5 u.s.c. 552a or as required by any other applicable federal law. 3.9076 remedies', 1944:'and enforcement authority. a burden of proof. 1 disclosure as contributing factor in reprisal. subpart 3.9 whistleblower protections for contractor', 1945:'employees 3.9077 ian employeealleginga reprisal under this section shall be deemed tohaveaffirmatively established the occurrence of the reprisal if the', 1946:'employee demonstrates that a disclosure described in section 3.9072 was a contributing factor in the reprisal. ii a disclosure may', 1947:'be demonstrated as a contributing factor in a reprisal for purposes of this paragraph by circumstantial evidence, including aevidence that', 1948:'the official undertaking the reprisal knewof the disclosure; or b evidence that the reprisal occurred within a period of time', 1949:'after the disclosure such that a reasonable person could conclude that the disclosure was a contributing factor in the reprisal.', 1950:'2 opportunity for rebuttal. the head of an agency may not find the occurrence of a reprisal with respect to', 1951:'a reprisalthat is affirmatively established under section 3.9076a1 if the nonfederal employer demonstrates by clear and convincing evidence that the', 1952:'nonfederal employer would have taken the action constituting the reprisal in the absence of the disclosure. b no later than', 1953:'30 days after receiving an inspector general report in accordance with section 1553 of the recovery act, theheadof the agency', 1954:'concerned shall determine whether thereis sufficientbasis toconclude that the nonfederal employer has subjected the complainant to a reprisal prohibited by', 1955:'subsection 3.9072 and shall either issue an order denying relief in whole or in part or shall take one or', 1956:'more of the following actions: 1 order the employer totake affirmative action to abate thereprisal. 2 order the employer to', 1957:'reinstate the person to the position that the person held before the reprisal, together with the compensation including back pay,', 1958:'compensatory damages, employment benefits, and other terms and conditions of employment that would apply to the person in that position', 1959:'if the reprisal had not been taken. 3 order the employer to pay the complainant an amount equal to the', 1960:'aggregate amount of all costs and expenses including attorneys’ fees and expert witnesses’ fees thatwere reasonablyincurred by thecomplainant for, orin', 1961:'connection with, bringing the complaint regarding the reprisal. c 1 the complainant shall be deemed to have exhausted all administrative', 1962:'remedies with respect to the complaint, and the complainant may bring a de novo action at law or equity against', 1963:'the employer to seek compensatory damages and other relief available under this section in the appropriate district court of united', 1964:'states, which shall have jurisdiction over such an action without regard to the amount in controversy if i the head', 1965:'of an agency a issues an order denying relief in whole or in part under paragraph a of this section;', 1966:'b has not issued an order within 210 days after the submission of a complaint in accordance with section 1553', 1967:'of the recovery act, or in the case of an extension of time in accordance with section 1553 of the', 1968:'recovery act, within 30 days after the expiration of the extension of time; or c decides in accordance with section', 1969:'1553 of the recovery act not to investigate or to discontinue an investigation; and ii there is no showing that', 1970:'such delay or decision is due to the bad faith of the complainant. 2 suchan action shall, at the requestof', 1971:'either party tothe action, be tried by the court with a jury. d whenever an employer fails to comply with', 1972:'an order issued under this section, the head of the agency shall request the department of justice to file an', 1973:'action for enforcement of such order in the united states district court for a district in which the reprisal was', 1974:'found to have occurred. in any action brought under this section, the court may grant appropriate relief, including injunctive relief,', 1975:'compensatory and exemplary damages, and attorneys fees and costs. e any personadversely affected or aggrieved by anorder issued under paragraph', 1976:'b of this subsection may obtain review of the order’s conformance with the law, and this section, in the united', 1977:'states court of appeals for acircuit in which the reprisal is alleged in the order to have occurred. no petition', 1978:'seeking such review may be filed more than 60 days after issuance of the order by the head of the', 1979:'agency. 3.9077 contract clause. use the clause at 52.20315, whistleblower protections under the american recovery and reinvestment act of 2009,', 1980:'in all solicitations and contracts funded in whole or in part with recovery act funds. federal acquisition regulation 3.908[reserved] 3.909', 1981:'prohibition on providing funds to an entitythat requirescertain internal confidentiality agreements or statements. 3.9091 prohibition. a the government is prohibited', 1982:'from using fiscal year 2015 and subsequent fiscal year funds for a contract with an entity that requires employees or', 1983:'subcontractors of such entity seeking to report waste, fraud, or abuse to sign internal confidentiality agreements or statements prohibiting or', 1984:'otherwise restricting such employees or subcontractors from lawfully reporting such waste, fraud, or abuse to a designated investigative or law', 1985:'enforcement representative of a federal department or agency authorized to receive such information. see section743 ofdivision e, title vii, of', 1986:'the consolidated and further continuing appropriations act,2015 pub. l. 113235 and its successor provisions in subsequent appropriationsacts andas extended in', 1987:'continuing resolutions. b the prohibition in paragraph a of this section does not contravene requirements applicable to standard form 312', 1988:'classified information nondisclosure agreement, form 4414 sensitive compartmented information nondisclosure agreement, or any other form issued by a federal department', 1989:'or agency governing the nondisclosure of classified information. 3.9092 representation by the offeror. a inorder to be eligibleforcontract award, an', 1990:'offeror must represent that it will not require its employees or subcontractors to sign internal confidentiality agreements or statements prohibiting', 1991:'or otherwise restricting such employees or subcontractors from lawfully reporting waste, fraud, or abuse related to the performance of a', 1992:'government contract to a designated investigative or law enforcement representative of a federal department or agency authorized to receive such', 1993:'information e.g., agency office of the inspectorgeneral. any offeror that does not sorepresentis ineligible for award of a contract. b', 1994:'the contractingofficer may rely on an offerors representation unless thecontracting officer has reason toquestionthe representation. 3.9093 solicitation provisionand contractclause. when', 1995:'using funding subject to the prohibitions in 3.9091a, the contracting officershall a 1 include the provision at 52.20318, prohibition on', 1996:'contracting with entities that require certain internal confidentiality agreements or statementsrepresentation, in all solicitations, except as provided in paragraph a2', 1997:'of this section; and 2 do not insert the provision in solicitations for a personal services contract with an individual', 1998:'if the services are to be performed entirely by the individual, ratherthan by an employee of thecontractor or a subcontractor.', 1999:'b 1 include the clause at 52.20319, prohibition on requiring certain internal confidentiality agreements or statements, in all solicitations and', 2000:'resultant contracts, other than personal services contracts with individuals. 2 modify existing contracts, other than personal services contracts with individuals,', 2001:'to include the clause before obligating fy 2015 or subsequent fy funds that are subject to the same prohibition on', 2002:'internal confidentiality agreements or statements. subpart 3.10 contractor code of business ethics and conduct 3.1003 subpart 3.10 contractor code of', 2003:'business ethics and conduct 3.1000 scope of subpart. this subpart a implements 41 u.s.c. 3509, notification of violations of federalcriminal', 2004:'law or overpayments; and b prescribes policies and procedures for the establishment of contractor codes of business ethics and conduct,', 2005:'and display of agency office of inspector general oig fraud hotline posters. 3.1001 definitions. as used in this subpart subcontract', 2006:'means any contract entered into by a subcontractor to furnish supplies or services for performance of a prime contract or', 2007:'a subcontract. subcontractor means any supplier,distributor, vendor,or firm thatfurnished supplies or services to or for a prime contractor oranother subcontractor.', 2008:'united states means the 50 states, the district of columbia, and outlying areas. 3.1002 policy. a government contractors must conduct', 2009:'themselves with the highestdegree ofintegrity and honesty. b contractors should have a written code of business ethics and conduct. to', 2010:'promote compliancewith such code of business ethics and conduct, contractors should have an employee business ethics and compliance training program', 2011:'and an internal control system that 1 are suitable to the size of the company and extent of its involvement', 2012:'in government contracting; 2 facilitate timely discovery and disclosure of improper conduct in connection with government contracts; and 3 ensure', 2013:'corrective measures are promptly instituted and carried out. 3.1003 requirements. a contractor requirements. 1 although the policy at 3.1002 applies', 2014:'as guidance to all government contractors, the contractual requirements set forth in the clauses at 52.20313, contractor code of business', 2015:'ethics and conduct, and 52.20314, display of hotline posters, are mandatory if the contracts meet the conditions specified in the', 2016:'clause prescriptions at 3.1004. 2 whether or not the clause at 52.20313 is applicable, a contractor may be suspended and/or', 2017:'debarred for knowing failure by a principal to timely disclose to the government, in connection with the award, performance, or', 2018:'closeout of a government contract performed by the contractoror asubcontract awarded thereunder, credible evidence of a violationof federalcriminallawinvolving fraud, conflict', 2019:'of interest, bribery, or gratuity violations found in title 18 of theunited states code or a violation of the civil', 2020:'false claims act. knowing failure to timely disclose credible evidence of any of the above violations remains a cause for', 2021:'suspension and/or debarment until 3 years after final payment on a contract see 9.4062b1 vi and 9.4072a8. 3 the paymentclauses', 2022:'atfar 52.2124i5, 52.23225d, 52.23226c, and 52.23227l require that, if the contractor becomes aware that the government has overpaid on a', 2023:'contract financing or invoice payment, the contractor shall remit the overpayment amount to the government. a contractor may be suspended', 2024:'and/or debarred for knowing failure by a principal to timely disclose credible evidence of a significant overpayment, other than overpayments', 2025:'resulting from contract financing payments as defined in 32.001 see 9.4062b1vi and 9.4072a8. b notification of possible contractor violation. if', 2026:'thecontracting officer is notified of possible contractor violation of federal criminal law involving fraud, conflict ofinterest, bribery, or gratuity violations', 2027:'found in title 18 u.s.c. ;or a violation of thecivil false claims act, the contracting officer shall 1 coordinate the', 2028:'matter withthe agencyofficeof the inspector general; or 2 takeaction in accordance with agency procedures. c fraud hotline poster. 1agency oigs', 2029:'are responsible for determining the need for, and content of, their respective agency oig fraud hotline posters. 2 when requestedby', 2030:'the department of homeland security, agencies shall ensure that contracts funded with disaster assistance funds require display of any fraud', 2031:'hotline poster applicable to the specific contract. as established by the agency oig, such posters may be displayedin lieu of,', 2032:'or in addition to, the agency’s standard poster. 3.1004 federal acquisition regulation 3.1004 contract clauses. a insert the clause at', 2033:'far 52.20313, contractor code of business ethics and conduct, in solicitations and contracts if the value of the contract is', 2034:'expected to exceed $6 million and the performance period is 120 days or more. b 1 unless the contract is', 2035:'for the acquisition of a commercial product or commercial service or will be performed entirely outside the united states, insert', 2036:'the clause at 52.20314, display of hotline posters, if– i the contract exceeds $6 million or a lesser amount established', 2037:'by the agency; and ii a the agency has a fraud hotline poster; or b the contract is funded with', 2038:'disaster assistance funds. 2 in paragraph b3 ofthe clause,the contracting officershall– i identify the applicable posters; and ii insert the', 2039:'website links or other contact information for obtaining the agency and/or department of homeland security poster. 3 in paragraph d', 2040:'of the clause, if the agency has established policies and procedures for display of the oig fraud hotline poster at', 2041:'a lesser amount, the contractingofficer shall replace $6 million withthe lesser amount thatthe agency has established. subpart 3.11 preventing personal', 2042:'conflicts of interest for contractor employees performing acquisition functions 3.1102 subpart 3.11 preventing personal conflicts of interest for contractor employees', 2043:'performing acquisition functions 3.1100 scope of subpart. this subpart implements policy on personal conflicts of interest by employees of government', 2044:'contractors as required by 41 u.s.c. 2303. 3.1101 definitions. as used in this subpart acquisition function closely associated with inherently', 2045:'governmental functions means supporting or providing advice or recommendations with regard to the following activities of a federal agency: 1', 2046:'planning acquisitions. 2 determining what supplies or services are to be acquired by the government, including developing statements of work.', 2047:'3 developing or approving any contractual documents, to include documents defining requirements, incentive plans, and evaluation criteria. 4 evaluating contract', 2048:'proposals. 5 awarding governmentcontracts. 6 administering contracts including ordering changes or giving technical direction in contract performance or contract quantities,', 2049:'evaluating contractor performance, and accepting or rejecting contractor products or services. 7 terminatingcontracts. 8 determining whether contract costs are reasonable,', 2050:'allocable, and allowable. a covered employee means an individual who performs an acquisition function closely associated with inherently governmental functions', 2051:'and is 1 an employee of the contractor; or 2 a subcontractor that is a selfemployed individual treated as a', 2052:'covered employee of the contractor because there is no employer to whom such an individual could submit the required disclosures.', 2053:'personal conflict of interest means a situationin whicha coveredemployee has afinancialinterest, personal activity, or relationship that couldimpair the employee’s abilityto', 2054:'act impartially and inthe best interest of the governmentwhen performing under the contract. a de minimis interest that would not', 2055:'impair the employee’s abilityto act impartially and in the best interest of the government is not covered under this definition.', 2056:'1 among the sources of personal conflicts of interest are i financial interests of the covered employee, of close family', 2057:'members, or of other members of the covered employees household; ii other employment or financial relationships including seeking or negotiating', 2058:'for prospective employment or business; and iii gifts, including travel. 2 for example, financial interests referred to in paragraph 1', 2059:'of this definition may arise from i compensation, including wages, salaries, commissions, professional fees, or fees for business referrals; ii', 2060:'consulting relationships including commercial and professional consulting and service arrangements, scientific and technical advisory board memberships, or serving as an', 2061:'expert witness in litigation; iii services provided in exchange for honorariums or travel expense reimbursements; iv research funding or other', 2062:'forms of research support; v investment in the form of stock or bond ownership or partnership interest excluding diversified mutual', 2063:'fund investments; vi real estate investments; vii patents, copyrights, and other intellectual property interests; or viii business ownership and investment', 2064:'interests. 3.1102policy. the government’s policy is to require contractors to a identify and prevent personal conflicts of interest of their', 2065:'covered employees; and 3.1103 federal acquisition regulation b prohibit covered employees who have access to nonpublic information by reason of', 2066:'performance on a government contract from using such information for personal gain. 3.1103procedures. a by use of the contract clause', 2067:'at 52.20316, as prescribed at 3.1106,the contracting officershallrequire each contractor whose employees perform acquisition functions closely associated with inherently government', 2068:'functions to 1 have procedures in place to screen covered employees for potential personal conflicts of interest by i obtaining', 2069:'and maintaining from each covered employee, when the employee is initially assigned to the task underthe contract, adisclosure of interests', 2070:'that might be affected by the task to which the employee has been assigned, as follows: a financial interests of', 2071:'the covered employee, of close family members, or of other members of the covered employee’s household. b other employment or', 2072:'financial relationships of the covered employee including seeking or negotiating for prospective employment or business. c gifts, including travel; and', 2073:'iirequiring each covered employee to update the disclosure statement whenever the employee’s personal or financial circumstances change in such a', 2074:'way that a new personal conflict of interest might occur because of the task the covered employee is performing. 2', 2075:'for each covered employee i prevent personal conflicts of interest, including not assigning or allowing a covered employee to perform', 2076:'any task under the contract for which the contractor has identified a personal conflict of interest for the employee that', 2077:'the contractor or employee cannot satisfactorily prevent or mitigate in consultation with the contracting agency; ii prohibit use of nonpublic', 2078:'information accessed through performance of a government contract for personal gain; and iii obtain a signed nondisclosure agreement to prohibit', 2079:'disclosure of nonpublic information accessed through performance of a government contract. 3 inform covered employees of their obligation ito disclose', 2080:'and prevent personalconflicts of interest; ii not to use nonpublic information accessed through performance of a government contract for personal', 2081:'gain; and iii to avoid even theappearance of personal conflicts ofinterest; 4 maintain effective oversightto verify compliance with personal conflictofinterest', 2082:'safeguards; 5 takeappropriate disciplinary action in thecaseof covered employees who fail tocomply with policiesestablished pursuant to this section; and 6', 2083:'reportto thecontracting officer any personal conflictofinterest violationby acovered employee as soon as identified. this report shall include a description of', 2084:'the violation and the proposed actions to be taken by the contractor in response to the violation, with followup reports', 2085:'ofcorrective actionstaken,as necessary. b if a contractor reportsa personal conflictofinterest violation by a covered employee to thecontracting officer in accordance', 2086:'with paragraph b6 of the clause at 52.20316, preventing personal conflicts ofinterest, the contractingofficer shall 1 review the actions taken', 2087:'by the contractor; 2 determine whether any action taken by the contractor has resolved the violation satisfactorily; and 3 if', 2088:'the contracting officer determines that the contractor hasnot resolved the violation satisfactorily, takeany appropriate action in consultation with agency legal', 2089:'counsel. 3.1104mitigation or waiver. a in exceptional circumstances, if the contractor cannot satisfactorily prevent a personal conflict of interest as', 2090:'required by paragraph b2i of the clause at 52.20316, preventing personal conflicts of interest, the contractor may submit a request,', 2091:'through the contracting officer,forthe head of the contracting activity to 1 agree to a plan to mitigate the personal conflict', 2092:'of interest; or 2 waive the requirement toprevent personal conflicts ofinterest. subpart 3.11 preventing personal conflicts of interest for contractor', 2093:'employees performing acquisition functions 3.1106 b if the head of the contracting activity determines in writing that such action is', 2094:'in the best interest of the government, the head of the contracting activity may impose conditions that provide mitigation of', 2095:'a personal conflict of interest or grant a waiver. c this authority shall not be redelegated. 3.1105violations. if the contracting', 2096:'officer suspects violation bythe contractor ofa requirement ofparagraph b, c3, or d of the clause at 52.20316, preventing personal conflicts', 2097:'of interest,the contracting officer shall contactthe agencylegal counsel for advice and/or recommendations on a course of action. 3.1106 contract clause.', 2098:'a insert the clause at 52.20316, preventing personal conflicts of interest, in solicitations and contracts that 1 exceed the simplified', 2099:'acquisition threshold; and 2 include a requirement for services by contractor employees that involve performance of acquisition functions closely associatedwith', 2100:'inherently governmental functions for,or on behalf of, afederal agencyor department. b if only a portion of a contract is for', 2101:'the performance of acquisition functions closely associated with inherently governmental functions, then the contracting officer shall still insert the clause,', 2102:'but shall limit applicability of the clause to that portion of the contract that is for the performance of such', 2103:'services. c do not insert the clause in solicitations or contracts with a selfemployed individual if the acquisition functions closely', 2104:'associated with inherently governmental functions are to be performed entirely by the selfemployed individual, rather than anemployee of the contractor.', 2105:'this page intentionally left blank. 3.114 fac 202501 november 12, 2024 part 4 administrative and information matters sec. 4.000 scope', 2106:'of part. 4.001 definitions. subpart 4.1 contract execution 4.101 contracting officer’s signature. 4.102 contractor’ssignature. 4.103 contract clause. subpart 4.2 contract', 2107:'distribution 4.201 procedures. 4.202 agency distribution requirements. 4.203 taxpayeridentificationinformation. subpart 4.3 [reserved] subpart 4.4 safeguarding classified information within industry 4.401', 2108:'[reserved] 4.402 general. 4.403 responsibilities of contracting officers. 4.404 contract clause. subpart 4.5 electronic commerce in contracting 4.500 scope of', 2109:'subpart. 4.501 [reserved] 4.502 policy. subpart 4.6 contract reporting 4.600 scope of subpart. 4.601 definitions. 4.602 general. 4.603 policy. 4.604', 2110:'responsibilities. 4.605 procedures. 4.606 reporting data. 4.607 solicitation provisions and contract clause. subpart 4.7 contractor records retention 4.700 scope of', 2111:'subpart. 4.701 purpose. 4.702 applicability. 4.703 policy. 4.704 calculation of retention periods. 4.705 specific retention periods. 4.7051 financial and cost', 2112:'accounting records. 4.7052 pay administration records. 4.7053 acquisition and supply records. subpart 4.8 government contract files 4.800 scope of subpart.', 2113:'4.801 general. 4.802 contract files. 4.803 contents of contract files. 4.804 closeout of contract files. 4.8041 closeoutbytheofficeadministeringthe contract. 4.8042 closeout', 2114:'of the contracting office files if anotheroffice administersthe contract. 4.8043 closeout of paying office contract files. 4.8044 physically completed contracts.', 2115:'4.8045 procedures for closing out contract files. 4.805 storage, handling, and contract files. subpart 4.9 taxpayer identification number information 4.900', 2116:'scope of subpart. 4.901 definition. 4.902 general. 4.903 reporting contract information to the irs. 4.904 reporting payment information to the', 2117:'irs. 4.905 solicitation provision. subpart 4.10 uniform use of line items 4.1000 scope. 4.1001 policy. 4.1002 applicability. 4.1003 establishing line', 2118:'items. 4.1004 establishing subline items. 4.1005 data elements for line items and subline items. 4.10051 required data elements. 4.10052 exceptions.', 2119:'4.1006 modifications. 4.1007 solicitation alternative line item proposal. 4.1008 solicitation provision. subpart 4.11 system for award management 4.1100 scope. 4.1101', 2120:'definition. 4.1102 policy. 4.1103 procedures. 4.1104 disaster response registry. 4.1105 solicitation provision and contract clauses. subpart 4.12 representations and certifications', 2121:'4.1200 scope. 4.1201 policy. 4.1202 solicitation provision and contract clause. subpart4.13 personal identityverification 4.1300 scope of subpart. 4.1301 policy. 4.1302', 2122:'acquisition of approved products and services for personal identity verification. 4.1303 contract clause. subpart 4.14 reporting executive compensation and firsttier', 2123:'subcontract awards 4.1400 scope of subpart. 4.1401 applicability. 4.1402 procedures. 4.1403 contract clause. subpart 4.15 [reserved] 4.1500 [reserved] 4.1501 [reserved]', 2124:'4.1502 [reserved] subpart 4.16 uniqueprocurement instrument identifiers 4.1600 scope of subpart. 4.1601 policy. 4.1602 identifying the piid and supplementary piid.', 2125:'4.1603 procedures. subpart 4.17 service contracts inventory 4.1700 scope of subpart. 4.1701 definitions. 4.1702 applicability. 4.1703 reporting requirements. 4.1704 contracting', 2126:'officer responsibilities. 4.1705 contract clauses. subpart 4.18 commercial and government entity code 4.1800 scope of subpart. 4.1801 definitions. 4.1802 policy.', 2127:'4.1803 verifyingcagecodespriortoaward. 4.1804 solicitation provisions and contract clause. subpart 4.19 basic safeguarding of covered contractorinformation systems 4.1901 definitions. 4.1902 applicability.', 2128:'4.1903 contract clause. subpart 4.20 prohibition on contracting forhardware, software, andservices developedor provided by kaspersky lab 4.2001 definitions. 4.2002 prohibition.', 2129:'4.2003 notification. 4.2004 contract clause. subpart 4.21 prohibition on contracting for certaintelecommunications and video surveillance services or equipment 4.2100 scope', 2130:'of subpart. 4.2101 definitions. 4.2102 prohibition. 4.2103 procedures. 4.2104 waivers. 4.2105 solicitation provisions and contract clause. subpart 4.22 prohibition on', 2131:'a bytedance covered application. 4.2201 definitions. 4.2202 prohibition. 4.2203 contract clause. subpart 4.23 federal acquisition security council. 4.2300 scope of', 2132:'subpart. 4.2301 definitions. 4.2302 sharing supply chain risk information. 4.2303 fascsaorders. 4.2304 procedures. 4.2305 waivers. 4.2306 solicitation provision and contract', 2133:'clauses. fac 202501 november 12, 2024 subpart 4.1 contract execution 4.103 4.000 scope of part. a this part prescribes policies', 2134:'and procedures relating to the administrative aspects of contract execution, contractor submitted paper documents, distribution, reporting, retention, and files. b', 2135:'additionally, this partincludes policiesandprocedures to implement security prohibitions and exclusions that restrict federal agencies from procuring, obtaining, or using certain', 2136:'products, services, or sources. additional security prohibitions and exclusions are found at subparts 25.7 and 40.2. 4.001definitions. as used in', 2137:'this part procurement instrument identifier piid means the governmentunique identifier for each solicitation, contract, agreement, ororder. for example,an agencymay useas', 2138:'its piid for procurementactions, suchas delivery and task orders or basic ordering agreements, the order or agreement number in conjunction', 2139:'with the contract number see 4.1602. supplementary procurement instrument identifier means the nonunique identifier for a procurement action that is', 2140:'used in conjunction with the governmentunique identifier. forexample, anagency may use as its piidforan amended solicitation, the governmentunique identifier for', 2141:'a solicitation number e.g., n0002309r0009 in conjunction with a nonunique amendment number e.g., 0001. the nonunique amendment number represents the', 2142:'supplementary piid. subpart 4.1 contract execution 4.101 contractingofficer’s signature. onlycontracting officers shall sign contracts on behalf ofthe united states. the', 2143:'contracting officer’s name and official title shall betyped, stamped, orprinted on the contract. the contracting officer normally signs the contract', 2144:'after it has been signed bythe contractor. the contracting officer shall ensure that the signers have authority to bindthe contractor', 2145:'see specific requirements in 4.102 of this subpart. 4.102 contractor’ssignature. a individuals. a contract with an individual shall be signed', 2146:'by that individual. a contract with an individual doing business as a firm shall be signed by that individual, and', 2147:'thesignatureshallbe followed by the individual’s typed, stamped, or printed name and the words , an individual doing business as [insert', 2148:'name of firm]. b partnerships. a contract with a partnership shall be signed in the partnership name. before signing for', 2149:'the government, thecontracting officer shall obtain alist of all partners and ensurethat theindividuals signing for the partnership have authority to', 2150:'bind the partnership. c corporations. a contract with a corporation shall be signed in the corporate name, followed by the', 2151:'word by and thesignatureand title of theperson authorizedto sign. the contracting officer shall ensurethat thepersonsigningforthe corporation has authority to bind', 2152:'the corporation. d joint venturers. a contract with joint venturers may involve any combination of individuals, partnerships, or corporations. the', 2153:'contract shall be signed by each participant in the joint venture in the manner prescribed in paragraphs a through c', 2154:'ofthis section for eachtype of participant. when a corporationis participating, thecontracting officer shall verify that the corporation is authorized to', 2155:'participate in the joint venture. e agents. when an agent is to sign the contract, other than as stated in', 2156:'paragraphs a through d of this section, the agent’s authorization to bind the principal must beestablished by evidence satisfactoryto thecontracting', 2157:'officer. 4.103contract clause. the contractingofficer shall insertthe clause at 52.2041 approval of contract, in solicitations and contracts if required by', 2158:'agency procedures. this page intentionally left blank. subpart 4.2 contract distribution 4.203 subpart 4.2 contract distribution 4.201 procedures. contracting officersshalldistribute', 2159:'copies ofcontracts or modificationswithin 10 working days afterexecution by all parties. as a minimum, the contracting officer shall a distribute', 2160:'simultaneously one signed copy or reproduction of the signed contract to the contractor and the paying office; bwhenacontractisassignedtoanotherofficeforcontractadministrationsee subpart 42.2,providetothatoffice', 2161:'1 one copy or reproduction of the signed contract and of each modification; and 2 a copy of thecontract distribution', 2162:'list,showing those offices that should receive copies of modifications, and any changes to the list as they occur; c distribute', 2163:'one copy toeach accounting and finance office funding office whose funds are citedin the contract; d when the contract is', 2164:'not assigned for administration but contains a cost accounting standards clause, provide one copy of thecontract to thecognizant administrative contracting', 2165:'officer and mark the copy for cost accounting standards administration only see 30.601b; e provide one copy of eachcontract or', 2166:'modification that requires audit service to the appropriate fieldaudit office listed in the directory of federal contract audit offices see', 2167:'42.103; and f provide copiesof contracts and modifications to those organizations required toperform contractadministration support functions e.g., whenmanufacturing is performed', 2168:'at multiple sites, the contract administration office cognizant of each location. 4.202 agency distribution requirements. agencies shall limit additional distribution', 2169:'requirements to the minimum necessary for proper performance of essential functions. when contractsare assignedforadministration to acontract administration officelocatedin anagency different', 2170:'fromthatofthecontractingofficesee part 42, the two agencies shall agree on any necessary distribution in addition to that prescribed in 4.201. 4.203', 2171:'taxpayer identificationinformation. a if the contractor has furnished a taxpayer identification number tin when completing the solicitationprovision at 52.2043, taxpayeridentification,or', 2172:'paragraphl of the solicitation provision at 52.2123, offeror representationsand certificationscommercial products and commercialservices, the contracting officer shall, unless otherwise provided', 2173:'in agency procedures, attach a copy of the completed solicitation provision as the last page of the copy of the', 2174:'contract sent to the paymentoffice. b if the tinor type of organizationis derived from a source other than the provision', 2175:'at 52.2043 or 52.2123l, thecontracting officer shall annotate the lastpageof the contract or order forwarded to the payment office to', 2176:'state the contractor’s tinand type of organization, unless this information is otherwise provided to the payment office in accordance with', 2177:'agency procedures. c if the contractor provides itstin or typeof organization to the contractingofficer after award, thecontracting officer shall forwardthe', 2178:'information tothe paymentoffice within7 daysof its receipt. d federal supply schedule contracts. each contracting officer that places an order under', 2179:'a federal supply schedule contract see subpart 8.4shallprovidethetinandtypeoforganizationinformationtothepaymentofficeinaccordance with paragraph b of this section. e basic ordering agreements and indefinitedelivery', 2180:'contracts other than federal supply schedule contracts. 1 each contractingofficer that issues a basicorderingagreement or indefinitedeliverycontract other than a federal', 2181:'supply schedule contract shall provide tocontracting officers placing orders under the agreementor contract if thecontractor is not required to provide', 2182:'this information to the system for award management i a copy of the agreement or contract with a copy of', 2183:'the completed solicitation provision at 52.2043 or 52.2123l as the last page of the agreement or contract; or iithe contractor’s', 2184:'tin and typeof organization information. 2 each contractingofficer that places an order undera basic ordering agreementor indefinitedelivery contract other than', 2185:'a federal supply schedule contract shall provide the tin and typeof organization information to the payment office in accordance with', 2186:'paragraph a or b of this section. this page intentionally left blank. subpart 4.3 [reserved] subpart 4.3 [reserved] this page', 2187:'intentionally left blank. subpart 4.4 safeguarding classified information within industry 4.403 subpart 4.4 safeguarding classified information within industry 4.401[reserved] 4.402general.', 2188:'a executive order12829, january 6, 1993 58 fr3479, january 8, 1993, entitled national industrial security program nisp, establishes a program', 2189:'to safeguard federal government classified information that is released to contractors, licensees, and grantees of the united states government. executive', 2190:'order 12829 amends executive order 10865, february20,1960 25 fr1583, february 25, 1960, entitled safeguarding classifiedinformation within industry, as amended by', 2191:'executive order 10909, january 17, 1961 26 fr508, january 20, 1961. b the national industrial security program operating manual nispom', 2192:'incorporates the requirements of these executive orders. the secretary of defense,in consultation with allaffected agencies and with theconcurrence of the', 2193:'secretary of energy, the chairman ofthe nuclear regulatory commission, the director of national intelligence,andthe secretary of homeland security, is responsible', 2194:'for issuance and maintenanceof this manual. the following publications implement the program: 1 nationalindustrial security program operating manual nispom 32', 2195:'cfrpart 117. 2 dod manual 5220.22,volume 2, national industrial security program: industrialsecurity procedures for government activities. c procedures for the', 2196:'protection of information relating to foreign classified contracts awarded to u.s. industry, and instructions for the protection of u.s. information', 2197:'relating to classified contracts awarded to foreign firms, are prescribed in 32 cfr 117.19. d nondefense agencies that have industrial', 2198:'security services agreements with dod, and dod components, shall use the dd form 254, contract security classification specification, to provide', 2199:'security classification guidance to u.s. contractors, and subcontractorsas applicable, requiring access to information classified as confidential, secret, or top secret.', 2200:'1 provided that the data submittal is unclassified, the dd form 254 shall be completed electronically in the nisp contract', 2201:'classification system nccs, which is accessible at https://www.dcsa.mil/is/nccs/ . nondefense agencies with an existing dd form 254 information system may', 2202:'use that system. 2 iacontractor,orsubcontractorifapplicable,requiringaccesstoclassifiedinformationunderacontractshallbe identified with a commercial and government entity cage code on the dd form 254 see', 2203:'subpart 4.18 for information on obtaining and validating cage codes. ii each location of contractor or subcontractor performance listed on', 2204:'the dd form 254 is required to reflect a corresponding unique cage code for each listed location unless the work', 2205:'isbeing performed at a government facility, in which case the agency location code shall be used. each subcontractor location requiring', 2206:'access to classified information must be listed on the dd form 254. iii contractor and subcontractor performance locations listed on', 2207:'the dd form 254 are not required to be separately registered in the system for award managementsam solely for thepurposesof', 2208:'add form 254 see subpart 4.11 for information on registering in sam. e part 27, patents, data, and copyrights, contains', 2209:'policy and procedures for safeguarding classified information in patent applications and patents. 4.403responsibilities of contracting officers. a presolicitation phase. contractingofficers', 2210:'shall reviewall proposed solicitations to determine whether access to classified information may be required by offerors, or by a contractor', 2211:'during contractperformance. 1 if access to classified information ofanother agency may be required, the contracting officer shall i determine if', 2212:'the agency is covered by the nisp; and iifollow that agency’s procedures for determining the security clearancesof firms to be', 2213:'solicited. 2 if the classified information required isfrom the contracting officer’s agency, the contracting officer shall follow agency procedures. b', 2214:'solicitation phase. contractingofficers shall 1 ensure that the classified acquisition is conducted as required by the nisp or agency procedures,', 2215:'as appropriate; and 2 include i an appropriate security requirements clause in the solicitation see 4.404; and federal acquisition regulation', 2216:'ii as appropriate, in solicitations and contracts when the contract may require access to classified information, a requirement for security', 2217:'safeguards in addition to those provided in the clause 52.2042, security requirements. c award phase.contracting officers shall informcontractors and subcontractors', 2218:'of the security classifications and requirements assigned to the various documents, materials, tasks, subcontracts, and components of the classified contract', 2219:'as identified in the requirement documentation as follows: 1 nondefense agencies that have industrial security services agreements with dod, and', 2220:'dod components, shall use the contract security classificationspecification, dd form 254. the contracting officer,or authorized agency representative,is the approving officialforthe', 2221:'dd form254 associated with theprimecontract and shall ensurethe dd form 254 is properly prepared, distributed by and coordinated with requirements', 2222:'and security personnel in accordance with agency procedures, see 4.402d1. 2 contracting officersin agencies not covered by the nisp shall', 2223:'follow agency procedures. 4.404contract clause. a thecontracting officer shall insert the clause at 52.2042, security requirements, in solicitations and contracts', 2224:'when the contract may require access to classified information, unless the conditions specified in paragraph d of this section apply.', 2225:'b if a cost contract see 16.302 for research and development with an educational institution is contemplated, the contracting officershalluse', 2226:'the clausewith its alternate i. c if a construction or architectengineer contract where employee identification is required for security reasons', 2227:'is contemplated, thecontracting officer shall use the clause with its alternate ii. d if the contracting agency is not covered', 2228:'by the nisp and has prescribed a clause and alternates that are substantially the same as those at 52.2042, the', 2229:'contracting officer shall use theagencyprescribedclause asrequired by agency procedures. subpart 4.5 electronic commerce in contracting 4.502 subpart 4.5 electronic commerce', 2230:'in contracting 4.500scope of subpart. this subpart provides policy and procedures for the establishment and use of electronic commerce in', 2231:'federal acquisition as required by 41 u.s.c. 2301. 4.501[reserved] 4.502 policy. a thefederal government shall use electronic commerce whenever practicable', 2232:'or costeffective. the use of terms commonly associated with paper transactions e.g.,copy, document, page, printed, sealed envelope, and stamped shall', 2233:'not be interpreted to restrictthe use of electronic commerce. contracting officersmay supplement electronic transactionsby using other media to meet the', 2234:'requirements of any contract action governed by the fare.g., transmit hard copy of drawings. b agencies may exercise broad discretion', 2235:'in selecting the hardware and software that will be used in conducting electronic commerce. however, as required by 41 u.s.c.', 2236:'2301, the head of each agency, afterconsulting with the administrator of ofpp, shall ensure that systems, technologies, procedures, andprocesses used', 2237:'by theagency to conduct electronic commerce 1 are implemented uniformly throughout the agency, tothe maximumextent practicable; 2 are implemented only', 2238:'after considering the full or partial use of existing infrastructures; 3 facilitate access to government acquisition opportunities by small business', 2239:'concerns, small disadvantaged business concerns, womenowned, veteranowned, hubzone, and servicedisabled veteranowned small business concerns; 4 include a single means of', 2240:'providing widespread public notice of acquisition opportunities through the governmentwide point of entry and a means of responding to notices', 2241:'or solicitations electronically; and 5 comply with nationally and internationally recognized standards that broaden interoperability and ease the electronic interchange', 2242:'of information, suchas standards established by the national institute ofstandards and technology. c before using electronic commerce, the agency head', 2243:'shall ensure that the agency systems are capable of ensuring authentication and confidentiality commensurate with the risk and magnitude of', 2244:'the harm from loss, misuse, or unauthorized access to or modification of the information. d agencies may accept electronic signatures', 2245:'and records in connection with government contracts. this page intentionally left blank. subpart 4.6 contract reporting 4.602 subpart 4.6 contract', 2246:'reporting 4.600scope of subpart. this subpart prescribes uniform reporting requirements for the federal procurement data system fpds. 4.601definitions. as used', 2247:'in this subpart— contract action means any oral or written action that results in the purchase, rent, or lease of', 2248:'supplies or equipment, services, or construction using appropriated dollars over the micropurchase threshold, or modifications to these actions regardless of', 2249:'dollar value. contract action does not include grants, cooperative agreements, other transactions, real property leases, requisitions fromfederal stock, training authorizations,', 2250:'orothernonfar based transactions. contract action report car means contract action data required to be entered into the federal procurement data', 2251:'system fpds. definitive contract means any contract that must be reported to fpds other than an indefinite delivery vehicle. this', 2252:'definition is only for fpds, and is not intended to apply to part 16. entitlement program means a federal program', 2253:'that guarantees a certain level of benefits to persons or other entities who meetrequirements set by law, such associal security,', 2254:'farm price supports, orunemployment benefits. generic entity identifier means a number or other identifier assigned to a category of vendors', 2255:'and not specific to any individualor entity. indefinite delivery vehicle idv means an indefinite delivery contract or agreement that has', 2256:'one or more of the following clauses: 1 52.21618, ordering. 2 52.21619, order limitations. 3 52.21620, definitequantity. 4 52.21621, requirements.', 2257:'5 52.21622, indefinite quantity. 6 any other clause allowing ordering. 4.602general. a the fpds provides a comprehensive webbased tool for', 2258:'agencies to report contract actions. the resulting data provides 1 a basis for recurring andspecial reports to thepresident, thecongress, the', 2259:'government accountability office, federal executive agencies, and the general public; 2 a meansof measuringandassessing the effectof federal contracting onthe nations', 2260:'economy and theextent to which small, veteranowned small, servicedisabled veteranowned small, hubzone small, small disadvantaged, women owned small business concerns,', 2261:'and abilityone nonprofit agencies operating under 41 u.s.c. chapter 85, committee for purchase from people who are blind or severely', 2262:'disabled, are sharing in federal contracts; 3 a meansof measuringandassessing the effectof federal contracting for promoting sustainable technologies, materials, products,', 2263:'services, and highperformance sustainable buildings. this is accomplished by collecting and reporting agency data on sustainable acquisition, including types of', 2264:'products purchased, the purchase costs, and the exceptions used for other than sustainable acquisition; and 4 a meansof measuringandassessing the', 2265:'effectof other policyand management initiatives e.g., performance based acquisitions and competition. b fpds does not provide reports for certain acquisition', 2266:'information used in the award of a contract action e.g., subcontracting data, funding data, or accounting data. c thefpdsweb site,', 2267:'https://www.fpds.gov, provides instructions for submitting data. it also provides 1 a complete list of departments, agencies, and other entities that', 2268:'submit data to the fpds; 2 technical and enduser guidance; 3 a computerbased tutorial; and 4 information concerning reports not', 2269:'generated in fpds. federal acquisition regulation 4.603 policy. a inaccordance withthe federal funding accountabilityandtransparencyactof 2006 pub. l. 109282, all unclassified', 2270:'federal award data must be publicly accessible. b executive agencies shall use fpds to maintain publicly available information about all', 2271:'unclassified contract actions exceeding the micropurchase threshold, and any modifications to those actions that change previously reported contract action report', 2272:'data, regardless of dollar value. c agencies awarding assisted acquisitions or direct acquisitions must report these actions and identify the', 2273:'program/ funding agencyandofficecodesfrom the applicableagency codesmaintained by eachagency at fpds. these codes represent theagency and officethat has provided the predominant', 2274:'amount of funding for the contract action. for assisted acquisitions, the requesting agency will receive socioeconomic credit for meeting agency', 2275:'small business goals, where applicable. requesting agencies shall provide the appropriate agency/bureau component code as part of the written interagency', 2276:'agreement between the requesting and servicing agencies see 17.5021a1. d agencies awarding contract actions with a mix of appropriated and', 2277:'nonappropriated funding shall only report the full appropriated portion of the contract action in fpds. 4.604responsibilities. a the senior procurement', 2278:'executive in coordination with the head of the contracting activity is responsible for developing and monitoring a process to ensure', 2279:'timely and accurate reporting of contractual actions to fpds. b 1 the responsibility for the completion and accuracy of the', 2280:'individual contract action report car resides with the contracting officerwho awarded the contract action. cars in a draft or error', 2281:'status in fpds are not considered complete. 2 the car must beconfirmedforaccuracy by the contracting officer prior to release of', 2282:'the contract award. the car must then be completed in fpds within three business days after contract award. 3 for', 2283:'any action awarded in accordance with far 6.3022 or pursuant to any of the authorities listed at subpart 18.2, the', 2284:'car must be completed in fpds within 30 days after contract award. 4 when the contractingoffice receives written notification that', 2285:'a contractor has changed itssize status in accordance with the clause at 52.21928, postaward small business program rerepresentation, the contracting', 2286:'officer shall update the size status in fpds within 30 daysafter receipt of contractor’s notificationof rerepresentation. 5 if after award', 2287:'of a contract,the contracting officerreceives writtennotification of sba’sfinal decision on a protest concerning asize determination, the contracting officershallupdate fpds to', 2288:'reflect the final decision. c thechief acquisition officer of eachagency required to reportits contract actions must submit to the general', 2289:'services administration gsa, in accordancewith fpds guidance,within 120 days after the end ofeach fiscal year, an annual certification of whether,and', 2290:'to what degree, agency car data for the preceding fiscal year is complete and accurate. 4.605 procedures. a procurement instrument', 2291:'identifier piid. agencies shall have in place a process that ensures that each piid reported to fpds is unique governmentwide,', 2292:'for all solicitations, contracts, blanket purchase agreements, basic agreements, basic ordering agreements, or orders in accordance with 4.1601 to 4.1603,', 2293:'and will remain so for at least 20 years from the date of contract award. other pertinent piid instructions for', 2294:'fpds reporting can be found at https://www.fpds.gov. b unique entity identifier. thecontracting officer shall identify and reporta unique entity identifier', 2295:'for the successful offeror on acontract action. the unique entityidentifier shall correspond to the successful offerors name andaddress as stated', 2296:'inthe offer and resultant contract, andas registered in the system for award management in accordance withthe provision at 52.2047, system', 2297:'for awardmanagement. the contracting officershallask the offeror to provide its unique entity identifier by using either the provision at 52.2046,', 2298:'unique entity identifier, the provision at 52.2047, system for award management, orthe provisionat 52.2121,instructionsto offerorscommercial products and commercial services. foradiscussionofthecommercialandgovernmententitycagecode,whichisadifferentidentifier,see', 2299:'subpart 4.18. c genericentity identifier. 1 the use of a generic entity identifier should be limited, and only used in', 2300:'the situations described in paragraph c2 of this section. use of a generic entity identifier does not supersede the requirements', 2301:'of provisions 52.2046, unique entity identifier or 52.2047 system for awardmanagement if present in the solicitation for the contractor to', 2302:'have a unique entity identifier assigned. 2 authorizedgeneric entityidentifiers, maintained by the integrated award environment iae program office http:// www.gsa.gov/portal/content/105036,', 2303:'may be used to report contracts in lieu of the contractors actual unique entity identifier only for— i contract actions', 2304:'valued at or below $30,000 that are awarded to a contractor that is subpart 4.6 contract reporting 4.606 a a', 2305:'student; b a dependent of either a veteran, foreign serviceofficer, ormilitary member assigned outside the united states and its outlying', 2306:'areas as defined in 2.101; or c located outside the united states and its outlying areas for work to be', 2307:'performed outside the united states and its outlying areas and the contractor does not otherwise have a unique entity identifier;', 2308:'ii contracts valued above $30,000 awarded to individuals located outside the united states and its outlying areas for work to', 2309:'be performed outside the united states and its outlying areas; or iii contractswhen specific public identification of thecontracted party could', 2310:'endanger the mission, contractor, or recipients of the acquiredgoodsor services. the contracting officer must include awritten determination in the contract', 2311:'file of a decision applicable to authority under this paragraph c2iii. d american recovery and reinvestmentactactions. the contracting officer, when', 2312:'entering data in fpds, shall use the instructions at https://www.fpds.gov to identify any action funded in whole or in part', 2313:'by the american recovery and reinvestmentactof 2009 pub. l. 1115. e office codes. agencies shall by march 31, 2016— 1', 2314:'use the activity address code aac, as defined in 2.101, assigned tothe issuing contracting officeas the contracting office code,and 2', 2315:'use the aacassigned to the program/fundingoffice providing the predominanceof funding for the contract action as the program/funding office code. 4.606reporting', 2316:'data. a actions required to be reported to fpds. 1 as a minimum, agencies must report the following contract actions', 2317:'over the micropurchase threshold, regardless of solicitation process used, and agencies must report any modification to these contract actions that', 2318:'change previously reported contract action data, regardless of dollar value: i definitive contracts, including purchase orders and imprest fund buys', 2319:'over the micropurchase threshold awarded by a contracting officer. ii indefinite delivery vehicle identified as an idv in fpds. examples', 2320:'of idvs include the following: ataskanddeliveryordercontractssee subpart 16.5, including– 1 governmentwide acquisition contracts. 2 multiagency contracts. b gsa federal supply', 2321:'schedules. c blanket purchase agreements see 13.303. d basic ordering agreements see 16.703. e any other agreement or contract against', 2322:'which individual orders or purchases may be placed. iii all calls and orders awarded under the indefinite delivery vehicles identified', 2323:'in paragraph a1ii of this section. 2 the gsa office of charge card management will provide the government purchase card', 2324:'data, at aminimum annually, and gsa will incorporate that data into fpds for reports. 3 agencies may use the fpds', 2325:'express reporting capability for consolidated multiple action reports for a vendor when it would be overly burdensome to reporteach action', 2326:'individually. when used, express reporting should be done at least monthly. b reporting other actions. agencies may submit actions other', 2327:'than those listed at paragraph a1 of this section only if they are able to be segregatedfrom farbased actions and', 2328:'this is approved in writing by the fpds program office. prior to the commencement of reporting, agencies must contact the', 2329:'fpds program office if they desire to submit any of the following types of activity: 1 transactions at or below', 2330:'the micropurchase threshold,exceptas providedin paragraph a2 ofthis section. 2 any nonappropriated fund naf or naf portion of a contract action', 2331:'using a mix of appropriated and non appropriated funding. 3 lease and supplemental lease agreementsforreal property. 4 grants and entitlement', 2332:'actions. c actions not reported. the following types of contract actions are not to be reported to fpds: 1 imprest', 2333:'fund transactions below the micropurchase threshold, including those made via the government purchase card unless specific agency procedures prescribe reporting', 2334:'these actions. 2 orders from gsa stock and the gsa global supply program. federal acquisition regulation 3 purchases made at', 2335:'gsa or abilityone service stores, as these items stocked for resale have already been reported by gsa. 4 purchases made', 2336:'using nonappropriated fund activity cards, chaplain fund cards, individual government personnel training orders, and defense printing orders. 5 actions that,', 2337:'pursuant tootherauthority, will not be entered in fpds e.g., reporting of the information would compromise national security. 6 contract actions', 2338:'in which the required data would constitute classified information. 7 resale activity i.e., commissary or exchange activity. 8 revenue generating', 2339:'arrangements i.e., concessions. 9 training expenditures not issued as orders orcontracts. 10 interagency agreements other than interagency acquisitions required to', 2340:'be reported at 4.606a1. 11 lettersof obligation used in the a76 process. d agencies not subjectto thefar. agencies not subjectto', 2341:'thefar may be required by other authoritye.g., statute, omb,or internal agency policy toreport certain information to fpds. those agencies not', 2342:'subject to the far must first receive approval from thefpdsprogram office prior to reportingto fpds. 4.607 solicitation provisionsand contractclause. a', 2343:'insert the provision at 52.2045, womenowned business other than small business, in all solicitations that 1 are not set aside', 2344:'for small business concerns; 2 exceed the simplified acquisition threshold; and 3 are for contracts that will be performed in', 2345:'the united states or its outlying areas. b insert the provision at 52.2046,uniqueentity identifier, in solicitations that do not contain', 2346:'the provision at 52.2047, system for award management, ormeet a condition at 4.605c2. c insert the clause at 52.20412, unique', 2347:'entity identifier maintenance, in solicitations and resulting contracts that contain the provision at 52.2046, unique entity identifier. subpart 4.7 contractor', 2348:'records retention 4.703 subpart 4.7 contractor records retention 4.700scope of subpart. this subpart provides policies and procedures for retention of', 2349:'records by contractors to meet the records review requirements of the government. in this subpart, the terms contracts and contractors', 2350:'include subcontracts and subcontractors. 4.701purpose. the purpose of this subpart is to generally describe records retention requirements and to allow', 2351:'reductions in the retention period for specific classes of records under prescribed circumstances. 4.702 applicability. a this subpart applies to', 2352:'records generated under contracts that contain one of the following clauses: 1 audit and recordssealed bidding 52.21426. 2 audit and', 2353:'recordsnegotiation 52.2152. b this subpart is notmandatory ondepartment ofenergy contracts for which thecomptroller generalallows alternative records retention periods. apart from', 2354:'this exception, this subpart applies to record retention periods under contracts that are subject to 10 u.s.c. chapter 137 legacy', 2355:'provisions 10 u.s.c. 3064 and 10 u.s.c. 3016 and chapter 203, or 40 u.s.c. 101, et seq. 4.703 policy. a', 2356:'except as stated in 4.703b, contractors shall make available records, which includes books, documents, accounting procedures and practices, and other', 2357:'data, regardless of type and regardless of whether such items are in written form, in the form of computer data,', 2358:'or in any other form, and other supporting evidence to satisfy contract negotiation, administration, and audit requirements of the contracting', 2359:'agencies and the comptroller general for 1 3 years after final payment; or 2 for certain records the period specified', 2360:'in 4.705 through 4.7053, whichever of these periods expires first. b contractors shall make available the foregoing records and supporting', 2361:'evidence for a longer period of time than is required in 4.703a if 1 a retention period longer than that', 2362:'cited in 4.703a is specified in any contract clause; or 2 the contractor, for itsown purposes, retains the foregoingrecords andsupporting', 2363:'evidence for a longerperiod. under this circumstance, the retention periodshallbe theperiod of the contractor’s retention or 3 years after final', 2364:'payment, whichever period expires first. 3 the contractor does not meet the original due date for submission of final indirect', 2365:'cost rate proposals specified in paragraph d2 of the clause at 52.2167, allowable cost and payment. under these circumstances, the', 2366:'retention periods in 4.705 shall be automatically extended one day for each day the proposal is not submitted after the', 2367:'original due date. c nothing in this section shall be construed to preclude a contractor from duplicating or storing original', 2368:'records in electronic form unless they contain significant information not shown onthe recordcopy. original records need not be maintained or', 2369:'produced in an audit if the contractor or subcontractor provides photographic or electronic images of the original records and meets', 2370:'the following requirements: 1 the contractor or subcontractor has established procedures to ensure that the imaging process preserves accurate images', 2371:'of the original records, including signatures and other written or graphic images, and that the imaging process is reliable and', 2372:'secure so as to maintain the integrity of the records. 2 the contractoror subcontractor maintains an effective indexing system to', 2373:'permit timely andconvenientaccess to the imaged records. 3 the contractor or subcontractor retains the original records for a minimum of', 2374:'one year after imaging to permit periodic validation of the imaging systems. d if the information described in paragraph a', 2375:'ofthissection ismaintained on a computer, contractors shall retain the computer data on a reliable medium for the time periods prescribed.', 2376:'contractors may transfer computer data in machine readable formfrom one reliablecomputer mediumto another. contractors’ computer dataretention and transfer procedures shall', 2377:'maintain theintegrity, reliability, and security of the originalcomputer data. contractors shall also retainan audit trail describing the data transfer. forthe', 2378:'recordretention time periods prescribed, contractors shall not destroy, discard, delete, or write over such computer data. federal acquisition regulation 4.704', 2379:'calculation of retention periods. a the retention periods in 4.705 arecalculatedfrom the end of the contractor’sfiscalyear in whichan entry is', 2380:'made charging or allocating a costto a government contract or subcontract. if aspecific record contains a series of entries, the', 2381:'retention period is calculated from the end of the contractor’s fiscal year in which the finalentry is made. the contractor', 2382:'should cutoff therecordsin annual blocks and retain them for blockdisposal under the prescribed retentionperiods. b when records generated during a', 2383:'prior contract are relied upon by a contractor for certified cost or pricing data in negotiating a succeeding contract, the', 2384:'prescribed periods shall run from the date of the succeeding contract. c if two or more of the record categories', 2385:'described in 4.705 are interfiled and screening for disposal is not practical, the contractor shall retain the entire record series', 2386:'for the longest period prescribed for any category of records. 4.705 specificretentionperiods. the contractor shall retain the records identified in', 2387:'4.7051 through 4.7053 for the periods designated, provided retention is required under 4.702. records are identified in this subpart in', 2388:'terms of their purpose or use and not by specific name or form number. although the descriptive identifications may not', 2389:'conform to normal contractor usageor filing practices, these identifications apply to all contractor records that come within the description. 4.7051', 2390:'financial and cost accounting records. a accounts receivable invoices, adjustments to the accounts, invoice registers, carrier freight bills, shipping orders,', 2391:'and other documents which detail the material or services billed on the related invoices: retain 4 years. b material,work order,', 2392:'or serviceorder files, consistingof purchaserequisitions or purchase orders for material or services, or orders for transfer of material or supplies:', 2393:'retain 4 years. c cash advance recapitulations, prepared as posting entries to accounts receivable ledgers for amounts of expense vouchers', 2394:'prepared for employees’ travel and related expenses: retain 4 years. d paid, canceled, and voided checks, other than those issued', 2395:'for the payment of salary and wages: retain 4 years. e accounts payable records to support disbursements of funds for', 2396:'materials, equipment, supplies, and services, containing originals or copies of the following and related documents: remittance advices and statements, vendors’', 2397:'invoices, invoice audits and distribution slips, receiving and inspection reports or comparable certifications of receipt and inspection of material or', 2398:'services, and debit and credit memoranda: retain 4 years. f labor cost distribution cards or equivalent documents: retain 2 years.', 2399:'g petty cash records showing description of expenditures, to whom paid, name of person authorizing payment, and date, including copies', 2400:'of vouchers and other supporting documents: retain 2 years. 4.7052 pay administration records. a payroll sheets, registers, or their equivalent,', 2401:'of salaries and wages paid to individual employees for each payroll period; change slips; and tax withholding statements: retain 4', 2402:'years. b clock cards or other time and attendance cards: retain 2 years. c paid checks, receipts for wages paid', 2403:'in cash, or other evidence of payments for services rendered by employees: retain 2 years. 4.7053 acquisition and supply records.', 2404:'a store requisitions for materials, supplies, equipment, and services: retain 2 years. b work orders for maintenance and other services:', 2405:'retain 4 years. c equipment records, consisting of equipment usage and status reports and equipment repair orders: retain 4 years.', 2406:'d expendable property records, reflecting accountability for the receipt and use of material in the performance of a contract: retain', 2407:'4 years. e receiving and inspection report records, consisting of reports reflecting receipt and inspection of supplies, equipment, and materials:', 2408:'retain 4 years. f purchase order files for supplies, equipment, material, or services used in the performance of a contract;', 2409:'supporting documentation and backup files including, but not limited to, invoices, and memoranda; e.g., memoranda of negotiations showing the principal', 2410:'elements of subcontract price negotiations see 52.2442: retain 4 years. g production records ofqualitycontrol, reliability, and inspection: retain 4years. h', 2411:'property records seefar 45.101 and 52.2451: retain 4 years. subpart 4.8 government contract files 4.803 subpart 4.8 government contract files', 2412:'4.800scope of subpart. this subpart prescribes requirements for establishing, maintaining, and disposing of contract files. 4.801general. a theheadof each officeperforming', 2413:'contracting, contract administration, or paying functions shall establish files containing the records of all contractual actions. b the documentation in', 2414:'the files see 4.803 shall be sufficient to constitute a complete history of thetransactionforthe purpose of 1 providing a complete', 2415:'background as a basis for informed decisions at each step in the acquisition process; 2 supporting actions taken; 3 providing', 2416:'information for reviews and investigations; and 4 furnishing essential facts in the event of litigation or congressional inquiries. c the', 2417:'files to be established include 1 a file for cancelled solicitations; 2 a file for each contract; and 3 a', 2418:'file such as a contractor general file, containing documents relating, for exampleto i no specific contract; ii more than one', 2419:'contract; or iii the contractor in a general way e.g., contractor’s managementsystems, past performance, or capabilities. 4.802contract files. a a', 2420:'contract file should generally consist of 1 the contractingoffice contract filethat documents the basisforthe acquisition and the award, the assignment', 2421:'of contract administrationincluding payment responsibilities,and any subsequent actions taken bythe contracting office; 2 the contract administration office contract file that', 2422:'documents actionsreflecting the basis for and theperformance of contract administration responsibilities; and 3 the paying office contract file that documents', 2423:'actionsprerequisite to, substantiating, and reflectingcontract payments. b normally,each file should be kept separately; however, if appropriate, any or all of', 2424:'the files may be combined; e.g., if all functions or any combination of the functionsare performed by the same office.', 2425:'c files must be maintained atorganizational levels thatensure 1 effective documentation of contract actions; 2 ready accessibility to principal users;', 2426:'3 minimal establishment of duplicate and working files; 4 the safeguarding of classified documents; and 5 conformance with agency regulations', 2427:'for file location and maintenance. d if the contract files or file segments are decentralized e.g., by type or functionto', 2428:'various organizationalelements or to other outside offices, responsibility for their maintenancemust be assigned. a central control and, ifneeded, a locator', 2429:'system should be established to ensure the ability to locate promptly any contract files. e contents of contract files that', 2430:'are contractor bid or proposal information or source selection information as defined in 2.101 must be protected from disclosure to', 2431:'unauthorized persons see 3.1044. f agencies may retain contract files in any medium paper, electronic, microfilm,etc. or any combination ofmedia,as', 2432:'long as the requirements of this subpart are satisfied. 4.803contents of contract files. the following are examples of the records', 2433:'normally contained, if applicable, in contract files: a contracting officecontract file. 1 purchase request, acquisition planning information, and other presolicitation', 2434:'documents. 2 justifications and approvals, determinations and findings, and associated documents. 3 evidence of availability of funds. 4 synopsis of', 2435:'proposed acquisition as required by part 5 or a reference to the synopsis. federal acquisition regulation 5 the list of', 2436:'sources solicited, and a list of any firms or persons whose requests for copies of the solicitation were denied, together', 2437:'with the reasons for denial. 6 setaside decision see 19.1506 including the type and extent of market research conducted. 7', 2438:'government estimate of contract price. 8 a copy of the solicitation and all amendments thereto. 9 security requirements and evidence', 2439:'of required clearances. 10 a copyof each offer or quotation,the related abstract, and records of determinations concerning late offersor quotations.', 2440:'unsuccessfuloffers or quotations may be maintained separately, ifcrossreferencedto thecontract file. the only portions of the unsuccessful offer or quotation that', 2441:'need be retainedare i completed solicitation sections a, b, and k; iitechnical and management proposals; iii cost/price proposals; and iv', 2442:'anyother pages of thesolicitation that the offeror or quoter hasaltered or annotated. 11 contractor’s representations and certifications see 4.1201c. 12', 2443:'preaward survey reports or reference to previous preaward survey reports relied upon. 13 source selection documentation. 14 contractingofficer’s determinationof the', 2444:'contractor’s responsibility. 15 small business administrationcertificate of competency. 16 records of contractor’scompliance with labor policies including equal employment opportunity policies.', 2445:'17 data and information related to the contracting officer’s determination of a fair andreasonable price. this may include i certified', 2446:'cost or pricing data; ii data other than certified cost or pricing data; iii justification for waiver from the requirement', 2447:'to submit certified cost or pricing data; or iv certificates of current cost or pricing data. 18 packaging and transportation', 2448:'data. 19 cost or price analysis. 20 audit reports orreasons for waiver. 21 record of negotiation. 22 justification for type', 2449:'of contract. 23 authority for deviations from this regulation, statutory requirements, or other restrictions. 24 required approvals ofaward and evidenceof', 2450:'legal review. 25 notice of award. 26 the original of i the signed contract or award; ii all contract modifications;', 2451:'and iii documents supporting modificationsexecuted by the contracting office. 27 synopsis of award or reference thereto. 28 notice to unsuccessful', 2452:'quoters orofferorsand record of anydebriefing. 29 acquisition management reports see subpart 4.6. 30 bid, performance, payment, or other bond documents,', 2453:'or a reference thereto, and notices to sureties. 31 report of postaward conference. 32 notice to proceed, stop orders, and', 2454:'any overtime premium approvals granted at the time of award. 33 documents requesting and authorizing modification in the normal assignment', 2455:'of contract administration functions and responsibility. 34 approvals or disapprovals of requests for waivers or deviations from contract requirements. 35', 2456:'rejected engineering change proposals. 36 royalty, invention, and copyright reports including invention disclosures or referencethereto. 37 contract completion documents. 38', 2457:'documentation regarding termination actions for which the contracting office is responsible. 39 crossreferences to pertinent documents that are filed elsewhere.', 2458:'40 any additional documents onwhich action was taken or that reflectactions by the contracting office pertinent to the contract. subpart', 2459:'4.8 government contract files 4.8041 41 a current chronological list identifyingthe awarding and successor contracting officers, with inclusivedates of responsibility.', 2460:'42 when limiting competition, or awarding on a sole source basis, to economically disadvantaged womenowned small business edwosb concerns or', 2461:'womenowned small business wosb concerns eligible under the wosb program in accordance with subpart 19.15, include documentation i of the', 2462:'type and extent of market research; and ii that the naics code assigned to the acquisition is for an industry', 2463:'that sba has designated as a underrepresented for edwosb concerns; or b substantially underrepresented for wosb concerns. b contractadministration officecontract', 2464:'file. 1 copy ofthe contract and all modifications, together with official record copiesof supporting documentsexecuted by the contract administration office.', 2465:'2 any documentmodifying the normalassignment of contract administration functionsandresponsibility. 3 security requirements. 4 certified cost or pricing data, certificates of', 2466:'current cost or pricing data, or data other than certified cost or pricing data; cost or price analysis; and other', 2467:'documentation supporting contractual actions executed by the contract administration office. 5 preaward survey information. 6 purchasing system information. 7 consent', 2468:'to subcontract or purchase. 8 performance and payment bonds and surety information. 9 postaward conference records. 10 orders issued under', 2469:'the contract. 11 notice to proceed and stop orders. 12 insurance policies or certificates of insurance or references to them.', 2470:'13 documents supporting advance or progress payments. 14 progressing, expediting, and production surveillance records. 15 quality assurance records. 16 property', 2471:'administration records. 17 documentation regarding termination actions for which the contractadministration officeis responsible. 18 cross reference to other pertinent documents', 2472:'that are filed elsewhere. 19 any additional documents onwhich action was taken or that reflectactions by the contractadministration office pertinent', 2473:'to the contract. 20 contract completion documents. c payingoffice contract file. 1 copy of the contract and any modifications. 2', 2474:'bills, invoices, vouchers, and supporting documents. 3 record of payments or receipts. 4 other pertinent documents. 4.804closeout of contract files.', 2475:'4.8041 closeout by the office administering the contract. a except as provided in paragraph c of this section, time standards', 2476:'for closing out contract files are as follows: 1 files for contracts using simplified acquisition procedures should be considered closed', 2477:'whenthe contracting officer receives evidence of receipt of property and final payment, unless otherwise specified by agency regulations. 2 files', 2478:'for firmfixedprice contracts, other than those using simplified acquisition procedures, should be closed within 6 months afterthe date onwhich the', 2479:'contracting officer receives evidence of physical completion. 3 files for contracts requiring settlement of indirect cost rates should be closed', 2480:'within 36 months of the month in which the contracting officer receives evidence ofphysical completion. 4 files for all othercontracts', 2481:'should be closed within 20monthsof the month inwhich the contracting officer receives evidence of physical completion. b when closing out', 2482:'the contract files at 4.8041a2, 3,and 4,the contracting officer shall use the closeout procedures at 4.8045. however, these closeout actions', 2483:'may bemodified toreflect the extent of administration that has been federal acquisition regulation performed. quick closeout procedures see 42.708 should', 2484:'be used, when appropriate, to reduce administrative costs and to enable deobligation of excess funds. c a contract file shall', 2485:'not be closed if 1 the contract is in litigation or under appeal; or 2 in the case of a', 2486:'termination, all termination actions have not been completed. 4.8042 closeout of the contracting office files if another office administers the', 2487:'contract. a contract files for contracts using simplified acquisition procedures should be considered closed when the contracting officer receives evidence', 2488:'ofreceipt of property and final payment, unless otherwise specified byagency regulation. b all other contract files shall beclosed as soon', 2489:'aspracticable afterthe contracting officerreceives a contractcompletion statement fromthe contract administrationoffice. the contracting officer shall ensurethat all contractualactions required have been', 2490:'completedand shall prepare a statementto that effect. this statement is authority to close the contract file and shall bemadea partof', 2491:'the official contract file. 4.8043 closeout of paying office contract files. the paying office shall close thecontract file uponissuance of', 2492:'the finalpayment voucher. 4.8044 physically completed contracts. a except as provided in paragraph b of this section, a contract is', 2493:'considered to be physically completed when 1 i the contractor has completed the required deliveries and the government has inspected', 2494:'and accepted the supplies; ii the contractor has performed all services and the government has accepted these services; and iii', 2495:'all optionprovisions, if any,haveexpired; or 2 the government has given the contractor a notice of complete contract termination. b rental,', 2496:'use, and storage agreements are considered to be physically completed when 1 the government has given the contractor a notice', 2497:'of complete contract termination; or 2 the contract period has expired. 4.8045 procedures for closing outcontract files. a thecontract administration', 2498:'officeis responsible for initiating automated or manual administrative closeout of the contract after receiving evidence ofits physical completion. at the', 2499:'outsetof this process, the contract administration office must review the contractfundsstatus and notify the contractingoffice of any excess funds the', 2500:'contract administration office might deobligate. when complete, the administrative closeout procedures must ensure that 1 disposition of classified material is', 2501:'completed; 2 final patent report is cleared.if a final patent report is required, the contracting officer may proceed withcontract closeout', 2502:'in accordance with the following procedures, or as otherwise prescribed by agency procedures: i final patent reports should be cleared', 2503:'within 60 days of receipt. iiif the final patent reportis not received, the contracting officershallnotify the contractor of the contractor’s', 2504:'obligations and thegovernment’s rights under the applicable patentrights clause, in accordance with 27.303. if the contractor fails to respond to', 2505:'this notification, the contracting officer may proceed withcontract closeout upon consultation with the agency legal counsel responsible for patentmatters regarding', 2506:'the contractor’s failure to respond. 3 final royalty report is cleared; 4 there is no outstanding value engineering change proposal;', 2507:'5 plant clearance report is received; 6 property clearance is received; 7 all interim or disallowed costs are settled; 8', 2508:'price revision is completed; 9 subcontracts are settled by the prime contractor; 10 prior year indirect cost rates are settled;', 2509:'11 termination docket is completed; 12 contract audit is completed; 13 contractor’s closingstatement iscompleted; 14 contractor’s finalinvoice has been submitted;and', 2510:'subpart 4.8 government contract files 4.805 15 contract funds review is completed and excess funds deobligated. b when the actions', 2511:'in paragraph a of this section have been verified, the contractingofficer administering the contract must ensure that a contract completion', 2512:'statement, containing the following information, is prepared: 1 contractadministration officename and address if different from the contracting office. 2 contracting', 2513:'office name andaddress. 3 contractnumber. 4 last modification number. 5 last call or order number. 6 contractor name and address.', 2514:'7 dollaramount of excessfunds, if any. 8 voucher number and date,if finalpayment has been made. 9 invoicenumber and date, if', 2515:'the final approved invoice has been forwarded to adisbursing office of anotheragency or activity and the status of the payment', 2516:'is unknown. 10 a statement that all required contract administration actions have been fully and satisfactorily accomplished. 11 name and', 2517:'signature ofthe contracting officer. 12 date. c when thestatement iscompleted, the contractingofficer mustensure that 1 the signedoriginal is placed in', 2518:'the contracting office contract file or forwarded tothe contracting office for placement in the files if the contract administration office', 2519:'is different from thecontracting office; and 2 a signed copy is placed in the appropriate contract administration file if administration', 2520:'is performed by a contract administration office. 4.805storage, handling, and contract files. a agencies must prescribe procedures for the handling,', 2521:'storing, and disposing of contract files, in accordance with the national archives and records administration nara general records schedule 1.1,', 2522:'financial management and reporting records. the financial management and reporting records can be found at http://www.archives.gov/recordsmgmt/ grs.html. these procedures must', 2523:'take into account documents held in all types of media, including microfilm and various electronic media. agencies may change the', 2524:'original medium to facilitate storage as long as the requirements of thepart, law, and other regulations are satisfied. theprocess used', 2525:'to createand store records must recordandreproduce theoriginal document, including signatures and other written and graphic images completely, accurately, and clearly.', 2526:'data transfer, storage, and retrieval procedures must protect the original data from alteration. unless law or otherregulations require signed originals', 2527:'to be kept, they may be destroyed after the responsible agency official verifies that record copies on alternate media and', 2528:'copies reproduced from the record copy are accurate, complete, and clear representations of the originals. when originaldocuments have been converted', 2529:'to alternate media for storage, the requirements in table 41 of this section also apply to the record copies in', 2530:'the alternate media. b if administrative records are mixed with program records and cannot be economically segregated, the entire file', 2531:'should bekept for the period of time approved for the program records. similarly, if documents described in the followingtable are', 2532:'part of a subject or case file that documents activities that are not described in the table, they should be', 2533:'treated in the same manner as the files of which they are a part. c an agencythat requires a shorter', 2534:'retention period than those identified in table 41 shall request approval from nara through theagency’s records officer. table 41 retentionperiods', 2535:'record retention period 1 contracts and related records or documents, including successful and unsuccessful proposals, except see paragraph c2 of', 2536:'this section regarding contractor payrolls submitted under construction contracts. 6 years after final payment. 2 contractor’s payrolls submitted under construction', 2537:'contracts in accordance with department of labor regulations 29 cfr 5.5a3, with related certifications, antikickback affidavits, and other related records.', 2538:'3 years after contract completion unless contract performance is the subject of an enforcement action on that date see paragraph', 2539:'c8 of this section. federal acquisition regulation record retention period 3 unsolicited proposals not accepted by a department or retain', 2540:'in accordance with agency procedures. agency. 4 files for canceled solicitations. 6 years after cancellation. 5 other copies of procurement', 2541:'file records used for when business use ceases. administrative purposes. 6 documents pertaining generally to the contractor as until superseded', 2542:'or obsolete. described at 4.801c3. 7 data submitted to the federal procurement data system 6 years after submittal to fpds.', 2543:'fpds. electronic data file maintained by fiscal year, containing unclassified records of all procurements exceeding the micropurchase threshold, and information', 2544:'required under 4.603. 8 investigations, cases pending or in litigation including until finalclearance orsettlement, or, ifrelated to a protests, or', 2545:'similar matters including enforcement actions. document identified in paragraphs c1 through 7 of this section, for the retention period specified', 2546:'for the related document, whichever is later. subpart 4.9 taxpayer identification number information 4.905 subpart 4.9 taxpayer identification number information', 2547:'4.900scope of subpart. this subpart provides policies and procedures for obtaining a taxpayer identification number tin information that may be', 2548:'used for debtcollection purposes;and b contractinformation andpayment information for submittalto thepayment officeforinternal revenue service irs reporting purposes. 4.901definition. common parent,', 2549:'as used in this subpart, means that corporate entitythat owns or controls anaffiliated group of corporations that files its federal', 2550:'incometax returns on a consolidatedbasis, and of which the offeroris amember. 4.902general. a debt collection. 31 u.s.c. 7701c requires each', 2551:'contractor doing business with a government agency to furnish itstin to that agency. 31 u.s.c. 3325d requires the government to', 2552:'include, with each certified voucher prepared by thegovernment payment officeand submitted to a disbursing official,the tinof the contractorreceiving paymentunder thevoucher.', 2553:'the tin may be used by thegovernmentto collect and report onany delinquent amounts arising outof the contractor’s relationship with the', 2554:'government. b information reporting to the irs. the tin is also required for government reporting of certain contract information see', 2555:'4.903 and payment information see 4.904 to the irs. 4.903reporting contract information to the irs. a 26 u.s.c. 6050m, as', 2556:'implemented in 26 cfr, requires heads of federal executive agencies to report certain information to the irs. b 1 the', 2557:'required information applies to contract modifications i increasing the amount of a contract awarded before january 1,1989, by $50,000 or', 2558:'more; and ii entered into on or after april 1,1990. 2 the reporting requirement also applies to certain contracts and', 2559:'modifications thereto in excess of $25,000 entered into on or after january 1,1989. c the information to report is 1', 2560:'name, address, and tin of the contractor; 2 name and tin of the common parent if any; 3 date of', 2561:'the contract action; 4 amount obligated on the contract action; and 5 estimated contract completion date. dtransmittheinformationtotheirsthroughthefederalprocurementdatasystemsee subpart 4.6 and', 2562:'implementing instructions. 4.904reporting payment information to the irs. 26 u.s.c. 6041 and 6041 a, as implemented in 26 cfr, in', 2563:'part, require payors, including government agencies, to report to the irs, on form 1099, payments made to certain contractors. 26', 2564:'u.s.c. 6109 requires a contractor to provide its tin if a form 1099 is required. thepayment officeis responsible for submitting', 2565:'reports tothe irs. 4.905 solicitation provision. the contractingofficer shall insertthe provisionat 52.2043,taxpayer identification, insolicitationsthat a do not include the provision', 2566:'at 52.2047, system for award management;and b are not conducted under the procedures of part 12. this page intentionally left', 2567:'blank. subpart 4.10 uniform use of line items 4.1004 subpart 4.10 uniform use of line items 4.1000 scope. this subpart', 2568:'prescribes policies and procedures for assigningline items and subline items and their identifiers. however, in order to provide agencies with', 2569:'time to transition their information systems, agencies have until october 1, 2019, to apply the requirements of 4.1002 through 4.1008.', 2570:'4.1001 policy. in order toimprove the accuracy, traceability, and usability of procurement data,procurement instruments shall identify the supplies or services', 2571:'to be acquired as separately identified line items and, as needed, subline items. a line items are established to define', 2572:'deliverables or organize information about deliverables. each lineitem describes characteristics for the item purchased, e.g., pricing,delivery, and funding information. b', 2573:'each line item may be subdivided into separate unique subsets called subline items to ease administration. if a line item', 2574:'hasdeliverable subline items, the line item is informational. subline itemsdifferentiate betweenor among certain characteristics of theline item,such as colorsor sizes,', 2575:'dates of delivery, destinations, or places of performance. sublineitems areestablished to definedeliverablesor organize informationabout deliverables. 4.1002 applicability. the policies of', 2576:'this subpart shall apply to the following procurement instruments, to include amendments, modifications, and change orders thereto: a solicitations. b', 2577:'contracts, including, but not limited to, governmentwide acquisition contractsgwacs, multiagency contracts macs, federal supply schedule fss contracts, indefinitedelivery contracts, and', 2578:'purchase orders. c agreements that include prepriced supplies or services. d task and delivery orders. 4.1003 establishing line items. establish', 2579:'separate line items for deliverables that have the following characteristics except as provided at 4.10052: a separately identifiable. 1 a', 2580:'supply is separately identifiable if it has its own identification e.g., national stock number nsn, item description, manufacturers part number.', 2581:'2 services are separately identifiable if they have no more than one statement of work or performance work statement. 3', 2582:'if the procurement instrument involves a first article see subpart 9.3, establish a separate line item for each item requiring', 2583:'a separate approval. if the first article consists of a lot composed of a mixture of items that will be', 2584:'approved as a single lot, a single line item may be used. b single unit price or total price. c', 2585:'single accounting classification citation. a single deliverable may be funded by multiple accounting classifications when the deliverable effortcannot be otherwise', 2586:'subdivided. d separate delivery schedule, destination, period of performance, or place of performance. e single contract pricing type e.g., fixedprice', 2587:'or costreimbursement. 4.1004 establishing subline items. subline items may be used to facilitate tracking of performance, deliverables, payment, and contract', 2588:'funds accounting or for other management purposes. subline items may be either deliverable or informational. the list of characteristics at', 2589:'4.1003 applies to deliverable subline items, but it is not applicable to informational subline items. a line item with subline', 2590:'items shall contain only that information that is commonto all subline items thereunder. all subline items underone line item shall', 2591:'be the same contract type as the line item. a deliverable subline items. deliverable subline items may be used for', 2592:'several related items that require separate identification. for example, instead of establishing multiple separate line items, subline items may be', 2593:'established for 1 items that are basically the same, except for minor variations such as– i size or color; ii', 2594:'accounting classification, but see also 4.10051a4; or 4.1005 federal acquisition regulation iii dateof delivery, destination, or period or place ofperformance;', 2595:'2 separately priced collateral functions that relate to the primary product, such as packaging and handling, or transportation; or 3', 2596:'items to be separately identified at the time of shipment or performance. b informational subline items. 1 informational subline items', 2597:'may be used by agencies for administrative purposes. this type of subline item identifies information that relates directly to the', 2598:'line item and is an integral part of it e.g., parts of an assembly or parts of a kit. 2', 2599:'position informational subline items within the line item description, not in the quantity or price fields. 4.1005 data elements for', 2600:'line items and subline items. 4.10051required data elements. a except as provided in 4.10052, each line item or subline item', 2601:'shall include in the schedule described at 12.303b4, 14.2012, or 15.2042, or in a comparable section of the procurement instrument,', 2602:'at a minimum, the following information as separate, distinct data elements: 1 line item or subline item number established in', 2603:'accordance with agency procedures. 2 description of what is being purchased. 3 product or service code psc. 4 accounting classification', 2604:'citation. iline items or deliverable subline items. if multiple accountingclassifications for asingle deliverable apply, include the dollar amount for each', 2605:'accounting classification in the schedule or a comparable section of the procurement instrument. ii informational subline items. an accounting classification', 2606:'citation is not required. see 4.1004. 5 i for fixedprice line items: a unit of measure. b quantity. c unit', 2607:'price. dtotal price. ii for costreimbursement line items: a unit of measure. b quantity. c estimated cost. d fee if', 2608:'any. e total estimatedcostplus any fee. b if a contract contains a combination of fixedprice, timeandmaterials, laborhour, or costreimbursable line', 2609:'items, identify the contract type for each line item in the schedule or a comparable section of the procurement instrument', 2610:'to facilitate payment. c each deliverable line item or deliverable subline item shall have its own delivery schedule, destination, period', 2611:'of performance, or place of performance expressly stated in the appropriate section of the procurement instrument as required constitutes an', 2612:'expressly stated delivery term. when a line item has deliverable subline items, the delivery schedule, destination, period of performance, or', 2613:'place of performance shall be identified at the subline item level, rather than the line item level. d terms and', 2614:'conditions in other sections of the contract such as contract clauses or payment instructions shall also specify applicability to individual', 2615:'line items if not applicable to the contract as a whole. 4.10052 exceptions. a indefinitedelivery contracts 1 general. the following', 2616:'required data elements are not known at time of issuance of an indefinitedelivery contract, but shall be provided in each', 2617:'order at the time of issuance: accounting classification, delivery date and destination, or period and place of performance. subpart 4.10', 2618:'uniform use of line items 4.1008 2 indefinitedelivery indefinitequantity idiq and requirements contracts. i idiq and requirements contracts may omit', 2619:'the quantity at the line item level for the base award provided that the total contract minimum and maximum, or', 2620:'the estimate, respectively, is stated. ii multipleaward idiq contracts awarded using the procedures at 13.1061a2iva or 15.304c1iia may omit price', 2621:'or cost at the line item or subline item level for the contract award, provided that the total contract minimum', 2622:'and maximum is stated see 16.504a1. b item description and psc. these data elements are not required in the line', 2623:'item if there are associated deliverable subline items that include the actual detailed identification. when this exception applies, use a', 2624:'general narrative description for the line item. c single unit price or single total price. the requirement for a single', 2625:'unit price or single total price at the line item level does not apply if any of the following conditions', 2626:'are present: 1 there are associated deliverable subline items that are priced. 2 the line item or subline item is', 2627:'not separately priced. 3 the supplies or services are being acquired on a costreimbursement, timeandmaterials, or laborhour basis. 4 the', 2628:'procurement instrument is for services and firm prices have been established for elements of the total price, but the actual', 2629:'number of the elements is not known until performance e.g., a laborhour contract for maintenance/repair. the contracting officermay structure theseprocurement', 2630:'instrumentsto reflect a firm orestimated total amount for each line item. 4.1006 modifications. a when a new item such as', 2631:'an increased quantity is added to the procurement instrument, assign a new line item number. b if the modification relates', 2632:'to existing line items, the modification shall refer to those items. 4.1007 solicitation alternative line item proposal. solicitations should be', 2633:'structured to allowofferorsto propose alternativeline items see 4.1008 and 52.2121e. for example, when solicitingcertain items using units of measure such', 2634:'as kit, set,or lot, the offeror maynot be ableto group and deliver all items in a single shipment. 4.1008 solicitation', 2635:'provision. insert the provision at 52.20422, alternative line item proposal, in all solicitations. this page intentionally left blank. 4.104 subpart', 2636:'4.11 system for award management 4.1102 subpart 4.11 system for award management 4.1100 scope. this subpart prescribes policies and procedures', 2637:'for requiring contractorregistration in thesystemforaward management sam to— a increase visibility of vendor sources including their geographical locations for specific', 2638:'supplies and services; and b establish a common source of vendor data for the government. 4.1101 definition. as used in', 2639:'this subpart agreement means basic agreement, basic ordering agreement, or blanket purchase agreement. 4.1102policy. a offerors and quoters are requiredto', 2640:'beregisteredin samat the timean offer or quotation is submitted in order to comply with the annual representations and certifications requirements', 2641:'except for— 1 purchases under the micropurchase threshold that use a governmentwide commercial purchase card as both the purchasing and', 2642:'payment mechanism, as opposed to using the purchase card for payment only; 2 classified contracts see 2.101 when registration in', 2643:'sam, or use of sam data, could compromise the safeguarding of classified information or national security; 3 contracts awarded by–', 2644:'ideployed contracting officers inthe course of military operations, including, butnot limited to, contingency operations as defined in 10 u.s.c. 101a13', 2645:'or humanitarian or peacekeeping operations as defined in 10 u.s.c. 30152; iicontracting officers located outside the united states and its', 2646:'outlying areas, asdefined in 2.101, for work to be performed in support of diplomatic or developmental operations, including those performed', 2647:'in support of foreign assistance programs overseas, in an area that has been designated by the department of state as', 2648:'a danger pay post see https:// aoprals.state.gov/;or iii contractingofficers in the conductof emergency operations, such asresponses to natural or environmental', 2649:'disastersor national or civil emergencies, e.g., robert t. stafford disaster relief and emergency assistance act 42 u.s.c. 5121; 4 contracts', 2650:'with individuals for performance outside the united states and its outlying areas; 5 contracts awarded without providing for full and', 2651:'open competition dueto unusual or compellingurgency see 6.3022; 6 contract actions at or below $30,000 awarded to foreign vendors for', 2652:'work performed outside the united states, if it is impractical to obtain sam registration; and 7 micropurchases that do not', 2653:'use the electronic funds transfer eft method for payment and are not required to be reported see subpart 4.6. b', 2654:'if practical, the contracting officer shall modify the contract or agreement awardedunder paragraph a3 ofthis section to require sam registration.', 2655:'c contracting officers shall usethe legalbusiness name or doingbusiness as name and physical address fromthe contractors sam registration for the', 2656:'provided unique entity identifier to identify the contractor in section a of the contract schedule, similar sections of nonuniform contract', 2657:'formats and agreements, and all corresponding forms and data exchanges. contracting officersshallmakeno changes to the data retrieved fromsam. d 1', 2658:'i if a contractor has legally changed its business name or doing business as name whichever is shown on the', 2659:'contract, or has transferred the assets used in performing the contract, but has not completed the necessary requirements regarding novation', 2660:'and changeofname agreements in subpart 42.12, the contractor is required to provide the responsible contracting officera minimum of one business', 2661:'days written notification of itsintention to change the name insam, comply with the requirements of subpart 42.12, and agree in', 2662:'writing to the timeline and procedures specified by the responsible contracting officer. along with the notification,the contractor isrequired to provide', 2663:'the contracting officersufficient documentation to support the legally changed name. ii if the contractor fails to comply with the requirements', 2664:'of paragraph d1i of the clause at 52.20413, system for award management maintenance, or fails to perform the agreement at', 2665:'52.20413, paragraph d1ic, and, in the absence of a properly executed novation or changeofname agreement, the sam information that shows', 2666:'the contractor to 4.1103 federal acquisition regulation be other than the contractor indicated in the contract will be considered to', 2667:'be incorrect information within the meaning of the suspension of payment paragraph of the eft clause of the contract. 2', 2668:'the contractor shall not change the name or address for electronic funds transfer payments eft or manual payments, as appropriate,', 2669:'in the sam record to reflect an assignee for the purpose of assignment of claims see subpart 32.8, assignment of', 2670:'claims. 3 assigneesshallbe separately registered in sam. informationprovidedto thecontractor’ssam record that indicates payments, including those made byeft, to an ultimaterecipient', 2671:'other thanthat contractor willbe consideredto be incorrect information within the meaning of the suspension of payment paragraph of the eft', 2672:'clause of the contract. 4.1103procedures. a unless the acquisition is exempt under 4.1102a, the contracting officer— 1 shall verify that', 2673:'the offeror orquoter isregisteredin samsee paragraph b of this section atthe time an offer or quotation is submitted; 2 should', 2674:'use the unique entity identifier to verify sam registration– ivia https://www.sam.gov; or ii as otherwise provided by agency procedures; or', 2675:'3 need not verify sam registration before placing an order or call if the contract or agreement includes the clause', 2676:'at 52.20413,systemforawardmanagement maintenance, or a similar agency clause,exceptwhen useof the governmentwide commercial purchase card is contemplated as a method of', 2677:'payment. see 32.1108b2. b if the contract action is being awarded in accordance with 4.1102a5, the contractor is required to', 2678:'be registered in sam within 30 days after contract award, or at least three days prior to submission of the', 2679:'first invoice, whichever occurs first. c agencies shall protect against improper disclosure of information contained in sam. d the contractingofficer', 2680:'shall,on contractual documents transmitted to the payment office, provide the unique entity identifier, or, if applicable, the electronic funds transfer', 2681:'indicator, in accordance with agency procedures. 4.1104disaster response registry. contracting officersshallconsult the disaster response registry via https://www.sam.gov, search records, advanced', 2682:'search, disaster response registry search when contracting for debris removal, distribution of supplies, reconstruction, and other disaster or emergency relief', 2683:'activities inside the united states andoutlying areas. see 26.205. 4.1105solicitation provision and contract clauses. a 1 insert the provision at', 2684:'52.2047,systemforawardmanagement,inallsolicitationsexceptwhentheconditionsin 4.1102a apply. 2 insert the provision at 52.2047,systemforawardmanagement, withits alternate i when the solicitation is anticipated to be awarded', 2685:'in accordance with 4.1102a5. b insert the clause at 52.20413,systemforaward management maintenance, in solicitations thatcontain the provision at 52.2047, and', 2686:'resulting contracts. subpart 4.12 representations and certifications 4.1202 subpart 4.12 representations and certifications 4.1200 scope. this subpart prescribes policies and', 2687:'procedures for requiring submission and maintenance of representations and certifications via the system for award managementsamto a eliminatethe administrative burden', 2688:'for contractors of submitting thesame information to various contracting offices; b establish a common source for this information to procurement', 2689:'offices across the government; and c incorporate by reference the contractor’s representationsand certifications in the awarded contract. 4.1201 policy. a', 2690:'offerors and quoters are requiredto complete electronic annualrepresentations and certificationsin samaccessedvia https://www.sam.gov as a part of required registrationsee far 4.1102.', 2691:'b 1 all registrants are required to review and update the representations and certifications submitted to sam as necessary, but', 2692:'at least annually, to ensure they are kept current, accurate, and complete. the representations and certifications areeffective until one year', 2693:'from dateof submissionor updateto sam. 2 a contractors that represented itself as a small business prior to award of a', 2694:'contract must update the representations and certifications in sam in accordance with 52.21928, a contractor that represented itself as other', 2695:'than small business before contract award and qualifies as a small business may update its representations and certifications in sam', 2696:'in accordance with 52.21928. c data in sam is archived and is electronically retrievable. therefore, when a prospective contractor has', 2697:'completed representations and certifications electronically in sam,the contracting officer must referencethe date of sam verification in the contract file to', 2698:'satisfy contract file documentation requirements of 4.803a11. however, if an offeror identifies changes to sam datapursuant to the far provisions', 2699:'at 52.2048d or 52.2123b, the contracting officer mustinclude a copy of the changes in the contract file. d the contractingofficer', 2700:'shall incorporate the representations and certifications by reference in the contractsee 52.20419, or for acquisitions of commercial products or commercial', 2701:'services see 52.2124v. 4.1202 solicitation provision and contract clause. a insert the provision at 52.2048, annual representations and certifications, in', 2702:'solicitations, except for solicitations for commercial products or commercial services issued under part 12. the contracting officershallcheck the applicable provisions', 2703:'at 52.2048c2. use the provision with its alternate i in solicitations issued after october 1, 2028, that will result in', 2704:'a multipleaward contract with more than one north american industry classification system code assigned see 19.102b. when the provision at', 2705:'52.2047,systemforawardmanagement, is includedin the solicitation, do notseparately include the following representations and certifications: 1 52.2032, certificate of independent price determination.', 2706:'2 52.20311, certification and disclosure regarding paymentsto influence certain federal transactions. 3 52.20318, prohibition on contracting with entities that require', 2707:'certain internal confidentiality agreements or statementsrepresentation. 4 52.2043, taxpayer identification. 5 52.2045, womenowned business otherthan small business. 6 52.20417, ownership', 2708:'orcontrol of offeror. 7 52.20420, predecessorof offeror. 8 52.20426, covered telecommunications equipment or servicesrepresentation. 9 52.2092, prohibition on contracting with', 2709:'inverted domestic corporationsrepresentation. 10 52.2095, certification regarding responsibility matters. 11 52.20911,representationby corporations regarding delinquent tax liability or a felony conviction', 2710:'under any federallaw. 12 52.21414, place of performancesealed bidding. 13 52.2156, place of performance. 14 52.2191, small business program representations', 2711:'basic, alternates i, and ii. 15 52.2192, equal low bids. 16 [reserved] 17 52.22218, certification regarding knowledge of child labor', 2712:'for listed end products. 4.1202 federal acquisition regulation 18 52.22222, previous contracts and compliance reports. 19 52.22225, affirmative action compliance.', 2713:'20 52.22238, compliance withveterans’ employment reportingrequirements. 21 52.22248, exemption from application of the service contract labor standards to contracts for', 2714:'maintenance, calibration, or repair of certain equipment–certification. 22 52.22252, exemption from application of the service contract labor standards to contracts', 2715:'for certain servicescertification. 23 52.2231, biobased product certification. 24 52.2234, recovered material certification. 25 52.22322, public disclosure of greenhouse gas', 2716:'emissions and reduction goalsrepresentation. 26 52.2252, buy american certificate. 27 52.2254, buy americanfree trade agreementsisraeli trade act certificate basic, alternates', 2717:'ii, and iii. 28 52.2256, trade agreements certificate. 29 52.22520, prohibition on conducting restricted business operations in sudancertification. 30 52.22525,', 2718:'prohibition on contracting with entities engaging in certain activities or transactions relating to iranrepresentation and certifications. 31 52.2262, historically black', 2719:'college or university and minority institution representation. 32 52.2276, royalty information basic & alternate i. 33 52.22715, representation of limited', 2720:'rights data and restricted computer software. b the contractingofficer shall insertthe clause at 52.20419, incorporation by reference of representations and', 2721:'certifications, in solicitations and contracts. subpart 4.13 personal identity verification 4.1303 subpart 4.13 personal identity verification 4.1300 scope of subpart.', 2722:'this subpart providespolicyandprocedures associatedwith personal identity verificationas required by a federal information processing standards publication fipspub number 201, personal identity', 2723:'verification of federal employees and contractors; and b office of management and budget omb guidance m0524, dated august5, 2005, implementation', 2724:'of homeland security presidential directive hspd 12policy for a common identification standard for federal employees and contractors. 4.1301 policy. a', 2725:'agencies must follow fips pub number 201 and the associated omb implementation guidance for personal identity verificationforall affected contractor and', 2726:'subcontractor personnelwhen contract performance requires contractors to have routine physical access to a federallycontrolled facility and/or routine access to a', 2727:'federallycontrolled information system. b agencies must include their implementation of fips pub 201 and omb guidance m0524 in solicitations and', 2728:'contracts that require the contractor to have routine physical access to a federallycontrolled facility and/or routine access to a federallycontrolled', 2729:'information system. c agencies must designate an official responsible for verifying contractor employee personalidentity. d 1 agency procedures for the', 2730:'return of personal identity verification piv products shall ensure that government contractors account for all forms of governmentprovided identification issued', 2731:'to government contractor employees under a contract, i.e., the piv cards or other similar badges, and shall ensure that contractors', 2732:'return such identification to the issuing agency as soon as any of the following occurs, unless otherwise determined by the', 2733:'agency: i when no longer needed for contract performance. iiuponcompletion of a contractor employee’s employment. iii upon contract completion or', 2734:'termination. 2 the contractingofficer may delay final payment under a contract ifthe contractor fails to complywith these requirements. 4.1302 acquisition', 2735:'of approvedproductsand services for personal identity verification. a in order to comply with fips pub 201, agencies must purchase only', 2736:'approved personal identity verification products and services. b agencies may acquire the approved products and services from the gsa, federal', 2737:'supply schedule 70, special item number sin 13262, hspd12 product and servicecomponents, in accordance with ordering procedures outlinedin far subpart', 2738:'8.4. c when acquiring personal identity verification products and services not using the process in paragraph b of this section,', 2739:'agencies must ensure that the applicable products and services are approved as compliant with fips pub 201 including 1 certifying', 2740:'the products and services procured meet all applicable federal standards and requirements; 2 ensuring interoperability and conformance to applicable federal', 2741:'standards for the lifecycle of the components; and 3 maintaining a written plan for ensuring ongoing conformance to applicable federal', 2742:'standards for the lifecycle of the components. d for more information on personal identity verification products and services see http://www.idmanagement.gov.', 2743:'4.1303 contract clause. the contractingofficer shall insertthe clause at 52.2049, personal identity verification of contractor personnel, in solicitations and contracts', 2744:'when contract performance requires contractors to have routine physical access to a federally controlled facility and/or routine access to a', 2745:'federallycontrolled information system. the clause shall not be used when contractors require only intermittent access to federallycontrolled facilities. this page', 2746:'intentionally left blank. 4.132 subpart 4.14 reporting executive compensation and firsttier subcontract awards 4.1403 subpart 4.14 reporting executive compensation and', 2747:'firsttier subcontract awards 4.1400 scope of subpart. this subpart implements section 2 of the federal funding accountability andtransparencyactof 2006 pub.l.109282,', 2748:'as amendedby section 6202 of thegovernment funding transparency act of2008 pub. l. 110252, which requires contractors to report subcontract award', 2749:'data and the total compensation of the five most highly compensated executives of the contractor and subcontractor. the public may', 2750:'view firsttier subcontract award data at http://www.usaspending.gov. 4.1401 applicability. a this subpart applies to all contracts with a value of', 2751:'$30,000 or more. nothing in this subpart requires the disclosure of classified information. b reporting of subcontract information will be', 2752:'limited to the firsttier subcontractor. 4.1402 procedures. a agencies shall ensure that contractors comply with the reporting requirements of 52.20410,', 2753:'reporting executive compensation and firsttier subcontract awards. agencies shall reviewcontractor reports on a quarterly basis to ensure the information is', 2754:'consistent with contract information. the agency is not required to address data for which the agency would not normally have', 2755:'supporting information, such as the compensation information required of contractors and first tier subcontractors. however,the agency shall inform the contractor', 2756:'of any inconsistencies with the contract information and require that the contractor correct the report, or provide a reasonable explanation', 2757:'as to why it believes the information is correct. agencies may review the reports at http://www.fsrs.gov. b when contracting officersreport', 2758:'the contractaction to the federal procurementdata system fpds inaccordance withfar subpart 4.6, certain data will then prepopulate from fpds, to', 2759:'assist contractors in completing and submitting their reports. if data originating from fpds is found by the contractor to be', 2760:'in error when the contractor completes the subcontract report,the contractor should notify thegovernment contracting officer,who is responsible for correctingthe datain', 2761:'fpds. contracts reported usingthe generic entity identifier allowed at far 4.605c2 will interferewith the contractor’s ability to comply with this', 2762:'reporting requirement, because the data will not prepopulate from fpds. c if the contractor failsto comply withthe reporting requirements, the', 2763:'contracting officer shall exercise appropriate contractualremedies. in addition, the contracting officer shall make the contractor’s failure to comply with the', 2764:'reporting requirementsapartofthecontractor’sperformanceinformationunder subpart 42.15. d there is a reporting exception in 52.20410g for contractors and subcontractors who had gross income', 2765:'in the previous tax year under $300,000. 4.1403 contract clause. a except as provided in paragraph b of this section,', 2766:'the contracting officer shall insert theclause at 52.20410, reporting executivecompensation and firsttier subcontract awards, inallsolicitationsandcontracts of $30,000 or more. b', 2767:'the clause is not prescribed for contracts that are not required to be reported in the federal procurement data system', 2768:'fpds see subpart 4.6. this page intentionally left blank. 4.142 subpart 4.15 [reserved] 4.1502 subpart 4.15 [reserved] 4.1500 [reserved] 4.1501', 2769:'[reserved] 4.1502 [reserved] this page intentionally left blank. 4.152 subpart 4.16 unique procurement instrument identifiers 4.1602 subpart 4.16 unique procurement', 2770:'instrument identifiers 4.1600 scope of subpart. this subpart prescribes policies and procedures for assigning unique procurement instrument identifiers piid for', 2771:'each solicitation, contract, agreement, or order and related procurement instrument. 4.1601 policy. a establishment of a procurement instrument identifier piid.', 2772:'agencies shall have in place a process that ensures that each piid used to identify a solicitation or contract action', 2773:'is unique governmentwide, and will remain so for at least 20 years from the date of contract award. the piid', 2774:'shall be used to identify all solicitation and contract actions. the piid shall also be used to identify solicitation and', 2775:'contract actions in designated support and reporting systems e.g., federal procurement data system, system for award management, in accordance with', 2776:'regulations, applicableauthorities,and agency policies and procedures. b transition of piid numbering. no later than october 1,2017, agencies shall comply withparagraph', 2777:'aof this section and use the requirements in 4.1602 and 4.1603forallnew solicitations and contract awards. until an agency’s transition is', 2778:'complete, it shall maintain its2013 piid formatthat ison record with thegeneral servicesadministration’s integrated award environmentprogram office which maintains a registryof', 2779:'the agency unique identifier scheme. the2013 piid format consistedof alpha characters inthe first positionsto indicate the agency, followed by alphanumeric', 2780:'characters;the 2017 format instead has the aac in the beginning 6 positions. c change in the procurement instrument identifier after', 2781:'its assignment. 1 agencies shall not change the piid unless one of the following two circumstances apply: ithe piidserialnumbering system', 2782:'is exhausted. inthisinstance, the contracting officer may assign a new piid by issuing a contract modification. ii continued use of', 2783:'a piid is administratively burdensome e.g., for implementations of new agency contract writing systems. in this instance, the contracting officer', 2784:'may assign a newpiid byissuing a contract modification. 2 the modification shall clearly identify both the original and the newly', 2785:'assigned piid. issuance of a new piid is an administrative change see 43.101. 4.1602 identifying the piid and supplementary piid.', 2786:'a identifying the piid in solicitation and contract award documentation including forms and electronic generated formats. agencies shall include all', 2787:'piids for all related procurement actions as identified in paragraphs a1 through 5 of this section. 1 solicitation. identify the', 2788:'piid for all solicitations. for amendments to solicitations, identify a supplementary piid, in conjunction with the piid for the solicitation.', 2789:'2 contracts and purchase orders. identify the piid for contracts and purchase orders. 3 delivery and task orders. for delivery', 2790:'and task orders placed by an agency under a contract e.g., indefinite delivery indefinite quantityidiq contracts, multiagency contracts mac, governmentwide', 2791:'acquisition contracts gwacs, or multipleawardschedulemas contracts, identify thepiid for the delivery andtask order and thepiid for the contract. 4 blanket', 2792:'purchase agreements and basic ordering agreements. identify the piid for blanket purchase agreements issued in accordance with 13.303, and for', 2793:'basic agreements and basic ordering agreements issued in accordance with subpart 16.7. for blanket purchase agreements issued in accordance with', 2794:'subpart 8.4 under a mas contract, identify the piid for the blanket purchase agreement and the piid for the mas', 2795:'contract. i orders. for orders against basic ordering agreements or blanket purchase agreements issued in accordance with 13.303, identify the', 2796:'piid for the order and the piid for the blanket purchase agreement or basic ordering agreement. ii orders under subpart', 2797:'8.4. for orders against a blanket purchase agreement established under a mas contract, identify the piid for the order, the', 2798:'piid for theblanket purchase agreement, andthe piid for the mas contract. 5 modifications. for modifications to actions described in paragraphs', 2799:'a2 through 4 of this section, and in accordance with agency procedures, identify a supplementary piid for the modification in', 2800:'conjunction with the piid for the contract, order, or agreementbeing modified. b placement of the piid on forms. when the', 2801:'form including electronic generated format does not provide spaces or fields for the piid or supplementary piid required in paragraph', 2802:'a of this section, identify the piid in accordance with agency procedures. 4.1603 federal acquisition regulation c additional agency specific', 2803:'identification information. if agency procedures require additional identification information in solicitations, contracts, or other related procurement instruments for administrative purposes,', 2804:'separate and clearly identify the additional information from the piid. 4.1603 procedures. a elements of a piid. the piid consists', 2805:'of a combination of thirteen to seventeen alpha and/or numeric characters sequenced to convey certain information. do not use special', 2806:'characters such as hyphens, dashes, or spaces. 1 positions 1 through 6. thefirst six positions identify the department/agency and office', 2807:'issuing the instrument. use theaac assigned to the issuing office for positions 1 through 6. civilianagency pointsof contact for obtaining', 2808:'anaac are on the aac contact list maintained by the general services administration and can be found at https://community.max.gov/ x/24fol.', 2809:'for department of defense dod inquiries, contact the service/agency central service point or dod aac monitor, or if unknown, email', 2810:'dodaadhq@dla.mil for assistance. 2 positions 7 through 8. the seventh and eighth positions are the last two digits of the', 2811:'fiscal year in which the procurement instrumentis issued or awarded. this is thedate the actionis signed, not the effective dateif', 2812:'the effective date is different. 3 position 9. indicate the type of instrument by entering one of the following upper', 2813:'case letters in position nine. departments and independent agencies may assign those letters identified for department use below in accordance', 2814:'with their agency policy; however, any use must be applied to the entire department oragency. instrumentletterdesignationi blanket purchase agreementsaii invitations', 2815:'for bidsbiiicontracts of all types except indefinitedelivery contracts see subpart 16.5civ indefinitedelivery contracts including federal supply schedules, governmentwide acquisitioncontractsgwacs,andmultiagencycontracts dv', 2816:'reserved for future federal governmentwide useevitaskorders,deliveryordersorcallsunder– indefinitedelivery contracts including federal supply schedules, governmentwide acquisition contractsgwacs,andmultiagencycontracts; blanket purchase agreements; orbasic ordering', 2817:'agreementsfvii basic ordering agreements.gviii agreements, including basic agreements and loan agreements, but excluding blanket purchaseagreements, basic ordering agreements, and leases.', 2818:'do not use this code for contracts or agreements withprovisions for orders or callshix do not use this letterix reserved', 2819:'for future federal governmentwide usejxi reserved for departmental or agency usekxii lease agreementslxiii reserved for departmental or agency usemxiv reserved', 2820:'for departmental or agency usenxv do not use this letteroxvi purchase orders assign v if numbering capacity of p is', 2821:'exhausted during a fiscal yearp subpart 4.16 unique procurement instrument identifiers 4.1603 instrument letter designation xvii requests for quotations assign', 2822:'u if numbering capacity of q is exhausted during a fiscal year q xviii requests for proposals r xix reserved', 2823:'for departmental or agency use s xx reserved for departmental or agency use t xxi see q, requests for quotations', 2824:'u xxii see p, purchase orders v xxiii reserved for future federal governmentwide use w xxiv reserved for future federal', 2825:'governmentwide use x xxv imprest fund y xxvi reserved for future federal governmentwide use z 4 positions 10 through 17.', 2826:'enter the number assigned by the issuing agency in these positions. agencies may choose a minimum of four characters up', 2827:'to a maximum of eight characters to be used, but the same number of characters must be used agencywide. if', 2828:'a number less than the maximum is used, do not use leading or trailing zeroes to make it equal the', 2829:'maximum in any system or data transmission. a separate series of numbers may be used for any type of instrument', 2830:'listed in paragraph a3 of this section. an agency may reserve blocks of numbers or alphanumeric numbers for use by', 2831:'its various components. 5 illustration of piid. the following illustrates a properly configured piid using four characters in the final', 2832:'positions: b elements of a supplementary piid. use the supplementary piid to identify amendments to solicitations and modifications to contracts,', 2833:'orders, and agreements. the supplementary piid is reported as a separate data element used in conjunction with, but not appended', 2834:'to, the piid. 1 amendments to solicitations. number amendments to solicitations sequentially using a four position numeric serial number added', 2835:'to the 1317 character piid beginning with 0001. 2 modifications to contracts, orders, and agreements. number modifications to contracts, orders,', 2836:'and agreements using a six position alpha or numeric, or a combination thereof, added to the 1317 character piid. for', 2837:'example, a modification could be numbered p00001. this would be added to the end of the 1317 character piid illustrated', 2838:'in a5 of this section. iposition 1. identify theoffice issuing the modification. theletter p shall be designated for modifications issued', 2839:'by the procuring contracting office. the letter a shall be used for modifications issued bythe contract administrationoffice ifother thanthe procuring', 2840:'contracting office. 4.1603 federal acquisition regulation ii positions 2 through 6. these positions may be alpha, numeric, or a combination', 2841:'thereof, in accordance with agency procedures. iii each office authorized to issue modifications shall assign the supplementary identification numbersin sequence', 2842:'unless provided otherwise in agency procedures. do not assign the numbers until it has been determined that a modification is', 2843:'to be issued. subpart 4.17 service contracts inventory 4.1703 subpart 4.17 service contracts inventory 4.1700 scope of subpart. this subpart', 2844:'implements section 743a of division c of the consolidated appropriations act, 2010pub. l. 111117, which requires agencies to report annuallyto', 2845:'theofficeof management and budgetomb on activities performedby service contractors. section 743a applies to executive agencies, other than the department of', 2846:'defense dod, covered by thefederal activities inventory reform act pub. l. 105270 fair act. the information reported in the inventory', 2847:'willbe publicly accessible. 4.1701 definitions. as used in this subpart– fair act agencies means the agenciesrequired under the fair act', 2848:'to submit inventories annuallyof the activities performed by government personnel. firsttier subcontract means a subcontract awarded directly by the contractor', 2849:'for the purpose of acquiring supplies or services including construction for performance of a prime contract. it doesnot include the', 2850:'contractor’s supplier agreements with vendors, such as longterm arrangements for materials or supplies that benefit multiple contracts and/or the costs', 2851:'of which are normally applied to a contractor’s general and administrative expensesor indirect costs. 4.1702 applicability. a this subpart applies', 2852:'to– 1 all fair act agencies, except dod as specified in 4.1705; 2 solicitations, contracts, and orders for services including', 2853:'construction that meet or exceed the thresholds at 4.1703; and 3 contractors and firsttier subcontractors. b procedures for compiling and', 2854:'submitting agency service contract inventories are governed by section 743a3 of division c of pub. l. 111117andofficeof federal procurement policy', 2855:'ofppguidance. the guidance isavailable atthe following web site: https://www.whitehouse.gov/wpcontent/uploads/legacydrupalfiles/omb/memoranda/2017/service contractinventories.pdf. c this subpart addresses requirementsforobtaining information from, and reportingby, agency', 2856:'service contractors. 4.1703 reporting requirements. a thresholds. 1 except as exempted by ofpp guidance, service contractor reporting shall be required', 2857:'for contracts and firsttier subcontracts for services based on type of contract and estimated total value. for indefinitedelivery contracts, reporting', 2858:'shall be determined based on the type and estimated total value of each order under the contract. indefinitedelivery contracts include,', 2859:'but are not limited to, contracts such as indefinitedelivery indefinitequantity idiq contracts, federal supply schedule contracts fsss, governmentwide acquisition contracts', 2860:'gwacs, and multiagency contracts. 2 reporting is required according to the following thresholds: i all costreimbursement, timeandmaterials, and laborhour service', 2861:'contracts and orders with an estimated total value above the simplified acquisition threshold. ii all fixedprice service contracts awarded and', 2862:'orders issued according to the following thresholds: aawarded or issued in fiscalyear 2014, with an estimated total value of $2.5', 2863:'million or greater. b awarded or issued in fiscal year 2015, with an estimated total value of $1million or greater.', 2864:'c awarded or issued in fiscal year 2016, andsubsequent years, withan estimated total value of $500,000 or greater. 3 reporting', 2865:'is required for all firsttier subcontracts for services as prescribed in paragraphs a2i and ii of this section. b agency', 2866:'reporting responsibilities. 1 agencies shall ensure that contractors comply with the reporting requirements of 52.20414, service contract reporting requirements and', 2867:'52.20415, service contract reporting requirements for indefinitedelivery contracts. agencies shall review contractor reported information for reasonableness and consistency with available', 2868:'contract information. the agency is not required to address data for which the agency would not normally have supporting information.', 2869:'in the event the agency believes that revisions to the contractor reported information are warranted, the agency shall notify the', 2870:'contractor no later than november 15. by november 30, the contractor shall revise the report, or document its rationaleforthe agency.', 2871:'authorizedagency officials may review the reports at www.sam.gov. 4.1704 federal acquisition regulation 2 agencies are required to compile annually an', 2872:'inventory of servicecontracts performed for, or on behalf of, the agency during theprior fiscal year in orderto determine the extent', 2873:'ofthe agency’s reliance onservice contractors. agencies shall submita service contract inventory to omb by january 15 annually. then, each agencymust', 2874:'post theinventoryon its web site and publish a federal register notice of availability byfebruary 15 annually. 3 most of the', 2875:'required information is already collected in the federal procurement data system fpds. information not collected in fpds will be providedby', 2876:'the contractor, as specified in 52.20414, service contract reporting requirements and 52.20415, service contract reporting requirements for indefinitedelivery contracts. 4.1704', 2877:'contracting officer responsibilities. a for other than indefinitedelivery contracts, the contracting officer shall ensure that 52.20414, service reporting requirement, is', 2878:'included in solicitations, contracts, and orders as prescribed at 4.1705. for indefinitedelivery contracts, thecontracting officer who awarded the contractshallensure that', 2879:'52.20415 service contract reporting requirements for indefinitedelivery contracts, is included in solicitations and contracts as prescribed at 4.1705. thecontracting officer', 2880:'at the order level shall verify the clause’s inclusion in the contract. b if the contractor fails to submit a', 2881:'report in a timelymanner,the contracting officer shall exercise appropriate contractualremedies. in addition, the contracting officer shall make the contractor’s failure', 2882:'to comply with the reporting requirementsapartofthecontractor’sperformanceinformationunder subpart 42.15. 4.1705 contract clauses. a thecontracting officer shall insert the clause at 52.20414,', 2883:'service contract reporting requirements, in solicitations and contracts for services including construction that meet or exceed the thresholds at 4.1703,', 2884:'except for indefinitedelivery contracts. this clause is not requiredforactions entirely funded bydod, contracts awarded with a genericentity identifier, or in', 2885:'classified solicitations, contracts, or orders. b the contractingofficer shall insertthe clause at 52.20415, service contract reporting requirements for indefinite delivery', 2886:'contracts, in solicitations and indefinitedelivery contracts for services including construction where one or more orders issued thereunder are expected to', 2887:'each meet or exceed the thresholds at 4.1703. this clause is not required for actions entirely funded by dod, contracts', 2888:'awarded with a genericentity identifier, or in classified solicitations, contracts, or orders. subpart 4.18 commercial and government entity code 4.1804', 2889:'subpart 4.18 commercial and government entity code 4.1800 scope of subpart. a this subpart prescribes policies and procedures for identification', 2890:'of commercial and government entities. the commercial and government entity cage code system may be used, among other things, to–', 2891:'1 exchange datawith another contracting activity, including contract administration activities and contract payment activities. 2 exchange data with another system', 2892:'that requires the unique identification of a contractor entity; or 3 identifywhen offerors are owned or controlled by another entity.', 2893:'b for informationon the unique entity identifier, which is a different identifier, see 4.605 and the provisions at 52.2046, unique', 2894:'entity identifier, and 52.2047, system for awardmanagement. 4.1801 definitions. as used in this part– highestlevel owner means theentity thatowns orcontrolsan', 2895:'immediate owner of the offeror, or that owns or controls one or more entities that control an immediate owner of', 2896:'the offeror. no entity owns or exercisescontrol of the highest level owner. immediate owner means an entity, other than the', 2897:'offeror, that has direct control of the offeror. indicators of control include, but are not limited to, one or more', 2898:'of the following: ownership or interlocking management, identity of interests among family members, shared facilities and equipment, and the common', 2899:'use of employees. 4.1802 policy. a commercial and government entity code. 1 offerors shall providethe contracting officer the cage code', 2900:'assigned to that offerors locationprior to the award of a contractaction above the micropurchasethreshold, when thereis arequirement to be registered', 2901:'in the system for award managementsam or a requirement to have a unique entityidentifier in the solicitation. 2 the contractingofficer', 2902:'shall includethe contractor’s cagecodein thecontract andin any electronic transmissions of the contract data to other systems when it is provided', 2903:'in accordance with paragraph a1 of this section. b ownership or control ofofferor. offerors, if owned orcontrolled by anotherentity, shall', 2904:'provide the contracting officer with the cage code and legal name of that entity prior to the award of a', 2905:'contract action above the micropurchase threshold, when there is a requirement to be registered in sam or a requirement to', 2906:'have a unique entity identifier in the solicitation. 4.1803 verifying cage codes prior to award. a contracting officers shall verify', 2907:'the offeror’s cage code by reviewingthe entity’s registration inthe system for award management sam. active registrations in sam have had', 2908:'the associatedcage codesverified. b for entities not required to be registered in sam, thecontracting officer shall validate the cage code', 2909:'usingthe cage code search feature at https://cage.dla.mil. 4.1804 solicitation provisions and contract clause. a insert the provision at 52.20416, commercial', 2910:'and government entity code reporting, in all solicitations that include– 1 52.2046, unique entity identifier; or 2 52.2047, system for', 2911:'award management. b insert the provision at 52.20417, ownershipor control of offeror, inall solicitations that include the provision at 52.20416,', 2912:'commercial and government entity code reporting. c insert the clause at 52.20418, commercial and government entity code maintenance, in all', 2913:'solicitations and contracts when the solicitation contains the provision at 52.20416, commercial and government entity code reporting. d insert the', 2914:'provision at 52.20420, predecessor of offeror,in all solicitations that includethe provisionat 52.20416, commercial and government entity code reporting. this page', 2915:'intentionally left blank. 4.182 subpart 4.19 basic safeguarding of covered contractor information systems 4.1903 subpart 4.19 basic safeguarding of covered', 2916:'contractor information systems 4.1901 definitions. as used in this subpart– covered contractor information system means an information system that is', 2917:'owned or operated by a contractor that processes, stores, or transmits federal contract information. federal contract information means information, not', 2918:'intended for public release, that is provided by or generated for the government under a contract to develop or deliver', 2919:'a product or service to the government, but not including information provided by the government to the public such as', 2920:'that on public web sites or simple transactional information, such as that necessary to process payments. information means any communication', 2921:'or representation of knowledge such as facts, data, or opinions in any medium or form, including textual, numerical, graphic, cartographic,', 2922:'narrative, or audiovisual committee on national security systems instruction cnssi 4009. information system means a discrete set of information resources', 2923:'organized for the collection, processing, maintenance, use, sharing, dissemination, or disposition of information 44 u.s.c. 3502. safeguarding means measures or', 2924:'controls that are prescribed to protect information systems. 4.1902 applicability. this subpart applies to all acquisitions, including acquisitions of commercial', 2925:'products or commercial services other than commercially availableofftheshelf items, when a contractorsinformationsystemmay containfederal contract information. 4.1903 contract clause. the contractingofficer', 2926:'shall insertthe clause at 52.20421, basic safeguarding of covered contractor information systems, in solicitations and contracts when the contractor or', 2927:'a subcontractor at any tier may have federal contract information residing in or transiting through its information system. this page', 2928:'intentionally left blank. 4.192 4.2004 subpart 4.20 prohibition oncontractingfor hardware, software,and services developedor provided by kaspersky lab 4.2001 definitions. as', 2929:'used in this subpart— kaspersky lab covered article means any hardware, software, or service that– 1 is developed or provided', 2930:'by a kaspersky lab covered entity 2 includes any hardware, software, or service developed or provided in whole or in', 2931:'part by a kaspersky lab covered entity; or 3 contains components using any hardware or software developed in whole or', 2932:'in part by a kaspersky lab covered entity. kaspersky lab covered entity means– 1 kaspersky lab; 2 any successor entity', 2933:'to kaspersky lab, including any change in name, e.g., “kaspersky”; 3 any entity that controls, iscontrolled by,or is under common', 2934:'controlwith kaspersky lab; or 4 any entity of which kaspersky lab has a majority ownership. 4.2002 prohibition. section1634 of division', 2935:'a of the national defense authorization act for fiscalyear 2018 pub. l. 11591prohibits government use on or after october 1,', 2936:'2018, of any hardware, software, or services developed or provided, in whole or in part, by a covered entity. contractorsare', 2937:'prohibited from— a providing any kaspersky lab covered article that the government will use on or after october 1, 2018;', 2938:'and b using any kaspersky lab covered article on or after october 1, 2018, in the development of data or', 2939:'deliverables first produced in the performance of the contract. 4.2003 notification. when a contractor provides notification pursuant to 52.20423, follow', 2940:'agency procedures. 4.2004 contract clause. the contractingofficer shall insertthe clause at 52.20423, prohibition on contracting for hardware, software, and services', 2941:'developed or provided by kaspersky lab covered entities, in all solicitations and contracts. this page intentionally left blank. 4.192 4.2101', 2942:'subpart 4.21 prohibition oncontractingfor certain telecommunications and video surveillance services or equipment 4.2100 scope of subpart. this subpart implements paragraphs', 2943:'a1a and a1b of section 889 of the john s. mccain national defense authorization act for fiscal year 2019 pub.', 2944:'l. 115232. 4.2101 definitions. as used in this subpart— backhaul means intermediate links between the core network, or backbone network,', 2945:'and the small subnetworks at the edge of the network e.g., connecting cell phones/towers to the core telephone network. backhaul', 2946:'can be wireless e.g., microwave or wired e.g., fiber optic, coaxial cable, ethernet. covered foreign country means the people’s republic', 2947:'ofchina. covered telecommunications equipment or services means– 1 telecommunications equipment produced by huawei technologies company orzte corporation, or any subsidiary', 2948:'oraffiliate of such entities; 2 for the purpose of public safety, security ofgovernment facilities, physical security surveillance of critical infrastructure,', 2949:'and other national security purposes, video surveillance and telecommunications equipment produced by hytera communications corporation, hangzhou hikvision digitaltechnology company,or dahua', 2950:'technology company or any subsidiary oraffiliateof such entities; 3 telecommunications or video surveillance services provided by such entities or using', 2951:'such equipment; or 4 telecommunications or video surveillance equipment or servicesproduced orprovidedby an entity that the secretary of defense, in', 2952:'consultation with the director of national intelligence or the director of the federal bureau of investigation, reasonably believes to be', 2953:'an entity owned or controlled by, orotherwise connected to, the government of a covered foreign country. critical technology means– 1', 2954:'defense articles or defense services included on the united states munitions list set forth in the international trafficin arms regulationsunder', 2955:'subchapterm of chapter i of title 22, code of federalregulations; 2 items included on the commerce control list set forth', 2956:'in supplement no. 1 to part 774 of the export administration regulations under subchapter c of chapter vii of title', 2957:'15, code of federal regulations, and controlled ipursuant to multilateral regimes, including for reasons relating to national security, chemical and', 2958:'biological weapons proliferation, nuclear nonproliferation, or missile technology; or ii for reasons relating to regional stability or surreptitious listening; 3', 2959:'specially designed and prepared nuclear equipment, parts and components, materials, software, and technology covered bypart 810 of title 10, codeof', 2960:'federal regulations relatingto assistance to foreignatomic energy activities; 4 nuclear facilities, equipment, andmaterial covered by part110 oftitle 10, code offederal', 2961:'regulations relating to export and import of nuclear equipment and material; 5 select agents and toxins covered by part 331', 2962:'of title 7, code of federal regulations, part 121 of title 9 of such code, or part 73 of title', 2963:'42 of such code; or 6 emerging and foundationaltechnologies controlled pursuant to section 1758 of theexport control reform act of', 2964:'2018 50 u.s.c. 4817. interconnection arrangements means arrangements governing the physical connection of two or more networks to allow theuse', 2965:'of anothersnetwork to hand off traffic where it is ultimatelydelivered e.g., connection of a customer of telephone provider a to', 2966:'a customer of telephone company b or sharing data and other information resources. reasonable inquiry means an inquiry designed to', 2967:'uncover any information in the entitys possession about the identity of the producer or provider of covered telecommunications equipment or', 2968:'services used by the entity that excludes the need to include an internal or thirdparty audit. roaming means cellular communications', 2969:'services e.g., voice, video, data received from a visited network when unable to connect to the facilities of the homenetwork', 2970:'eitherbecause signalcoverage is too weak or because traffic is toohigh. substantial or essential component means any component necessary for the', 2971:'proper function or performance of a piece of equipment, system, or service. 4.2102 federal acquisition regulation 4.2102 prohibition. a prohibited', 2972:'equipment, systems, or services. 1 on or after august 13, 2019, agencies are prohibited from procuring or obtaining, or extending', 2973:'or renewing a contract to procure or obtain, any equipment, system, or service that uses covered telecommunications equipment or services', 2974:'as a substantial or essential component of any system, or as critical technology as part of any system, unless an', 2975:'exception at paragraph b of this section applies or the covered telecommunications equipment or services are covered by a waiver', 2976:'described in 4.2104. 2 on or after august 13, 2020, agencies are prohibited from entering into a contract, or extending', 2977:'or renewing a contract, with an entity that uses any equipment, system, or service that uses covered telecommunications equipment or', 2978:'services as a substantial or essential component of any system, or as critical technology as part of any system, unless', 2979:'an exception at paragraph b of this section applies or the covered telecommunications equipment or services are covered by a', 2980:'waiver described in 4.2104. this prohibition applies to the use of covered telecommunications equipment or services, regardless of whether that', 2981:'use is in performance of work under a federal contract. b exceptions. this subpart does not prohibit agencies from procuring', 2982:'or contractors from providing 1 a servicethat connects to the facilitiesof athirdparty, such asbackhaul, roaming, or interconnection arrangements; or 2', 2983:'telecommunications equipment that cannot route or redirect user data traffic or permit visibilityinto any userdata or packets that such equipment', 2984:'transmits or otherwise handles. c contracting officers. unless an exception at paragraph b of this section applies or the covered', 2985:'telecommunications equipment or service is covered by a waiver described in 4.2104, contracting officers shall not— 1 procure or obtain,', 2986:'or extend or renew a contract e.g., exercise an option to procure or obtain, any equipment, system, or service that', 2987:'uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as', 2988:'part of any system; or 2 enter into a contract, or extend or renew a contract, with an entity that', 2989:'uses any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of', 2990:'any system, or as critical technology as part of any system. d recording prohibitions in the system for award management', 2991:'sam. 1 prohibitions on purchases of products or services produced or provided by entities identified in paragraphs 1 and 2', 2992:'of the definition of covered telecommunications equipment orservices includingknown subsidiaries or affiliates at 4.2101 will be recorded in sam see', 2993:'9.404. 2 prohibitions on purchases of products or services produced or provided by entities identified pursuant to paragraph 4 of', 2994:'the definition of covered telecommunications equipment orservices includingknown subsidiaries or affiliates at 4.2101 are recorded by the department of defense', 2995:'in sam see 9.404. 4.2103 procedures. a representations. 1 iiftheofferorselects doesnot inparagraphsc1and/orc2oftheprovisionat 52.20426 or in paragraphs v2i and/or v2ii of', 2996:'the provision at 52.2123,the contracting officermay rely on the does not representations, unless thecontracting officer has reason toquestionthe representation. ifthe', 2997:'contracting officerhas a reason to question the representation, the contracting officer shall follow agency procedures. iiif the offeror selects does', 2998:'in paragraph c1 of theprovision at 52.20426 or paragraph v2i of the provision at 52.2123, the offeror will be required', 2999:'to complete therepresentation inparagraph d1 of the provision at 52.20424. iii if theofferor selects does in paragraphc2 of the provision', 3000:'at 52.20426 or paragraph v2ii of the provision at 52.2123, the offeror will be required to complete therepresentation inparagraph d2', 3001:'of the provision at 52.20424. 2 iiftheofferorselects willnot inparagraphd1oftheprovisionat 52.20424 or does not in paragraph d 2 of the provision', 3002:'at 52.20424, thecontracting officer may rely onthe representations, unless the contracting officerhas reason to question the representations. if the contracting', 3003:'officer has a reason toquestionthe representations,the contracting officer shall followagency procedures. iiif an offeror selects will in paragraph d1 ofthe', 3004:'provisionat 52.20424, the offeror must provide the information required by paragraph e1 of the provision at 52.20424,and the contracting officershallfollow', 3005:'agency procedures. 4.2104 iii if an offeror selects does in paragraph d2of the provision at 52.20424,the offeror must complete the', 3006:'disclosure at paragraph e2 of the provision at 52.20424,andthe contracting officershallfollow agency procedures. b reporting. if a contractor provides a', 3007:'report pursuant to paragraph d of the clause at 52.20425, prohibition on contracting for certain telecommunications and video surveillance services', 3008:'or equipment, follow agency procedures. 4.2104 waivers. a executive agencies. theheadof an executive agencymay, on a onetime basis, waivethe prohibition', 3009:'at 4.2102a with respect to a government entity e.g., requirements office, contracting office that requests such awaiver. 1 waiver. the', 3010:'waiver may be provided, for a period not to extend beyond august 13, 2021 for the prohibition at 4.2102a1,or beyond', 3011:'august 13, 2022 for the prohibition at 4.2102a2,if the government official, on behalf of the entity, seeking thewaiver submits to', 3012:'the head of the executive agency– i a compelling justification for the additional time to implement the requirements under 4.2102a,', 3013:'as determined by the head of the executive agency; and ii a full and complete laydown or description of the', 3014:'presences of covered telecommunications or video surveillance equipment or services in the relevant supply chain and a phaseout plan to', 3015:'eliminate such covered telecommunications or video surveillance equipment or services from the relevant systems. 2 executive agency waiver requirements for', 3016:'the prohibition at 4.2102a2. before the head of an executive agency can grant a waiver to the prohibition at 4.2102a2,', 3017:'the agency must— ihave designated asenior agencyofficial for supply chain risk management, responsible for ensuringthe agency effectively carries out thesupplychainrisk', 3018:'management functions and responsibilities described inlaw, regulation, and policy; ii establish participation in an informationsharing environment when and as required', 3019:'by the federal acquisition security council fasc to facilitateinteragencysharingof relevant acquisition supply chain riskinformation; iii notify and consult with the', 3020:'officeof the directorof national intelligence odni onthe waiver requestusing odni guidance, briefings, best practices, ordirect inquiry, as appropriate; and iv', 3021:'notify the odni and thefasc15 days prior togranting the waiver that it intends to grant the waiver. 3 waivers for', 3022:'emergency acquisitions. iin the case ofan emergency, including a declarationof major disaster, in which prior notice and consultation with the', 3023:'odniandprior noticeto thefascis impracticableandwould severely jeopardize performance of mission critical functions, the head of an agency may grant a waiver', 3024:'without meeting the notice and consultation requirements under 4.2104a2iii and 4.2104a2iv to enable effective mission critical functionsor emergency responseand recovery.', 3025:'iiin the case ofa waiver granted in response toan emergency, theheadof an agency granting thewaiver must— amake a determination that', 3026:'the notice and consultation requirements are impracticable due to an emergency condition; and b within30 days ofaward,notify the odni and', 3027:'thefascof the waiverissuedunder emergencyconditions in addition to the waiver notice to congress under 4.2104a4. 4 waiver notice. i for waivers', 3028:'to the prohibition at 4.2102a1, the head of the executive agency shall, not later than 30 days after approval— a', 3029:'submit in accordance with agency procedures to the appropriate congressional committees the full and complete laydown of the presences of', 3030:'covered telecommunications or video surveillance equipment or services in the relevant supply chain; and b the phaseout plan to eliminate', 3031:'such covered telecommunications or video surveillance equipment or services from the relevant systems. ii for waivers to the prohibition at', 3032:'4.2102a2, the head of the executive agency shall, not later than 30 days after approval submit in accordance with agency', 3033:'procedures to the appropriate congressional committees— a an attestation by the agency that granting of the waiver would not, to', 3034:'the agencys knowledge having conducted the necessary due diligence as directed by statute and regulation, present a material increase in', 3035:'risk to u.s. national security; b the full and complete laydown of the presences of covered telecommunications or video surveillance', 3036:'equipment or services in the relevant supply chain, to include a description of each category of covered technology equipment orservicesdiscovered', 3037:'after a reasonable inquiry, as well as each category of equipment, system, or service used by the entity in which', 3038:'such covered technology is found after conducting a reasonable inquiry; and 4.2105 federal acquisition regulation c the phaseout plan to', 3039:'eliminate such covered telecommunications or video surveillance equipment or services from the relevant systems. b director of national intelligence. the', 3040:'director of national intelligence may provide a waiver if the director determines the waiver is in the national security interests', 3041:'of the united states. 4.2105 solicitation provisions and contract clause. a thecontracting officer shall insert the provision at 52.20424,representationregarding certain', 3042:'telecommunications and videosurveillance services or equipment– 1 in all solicitations for contracts; and 2 under indefinite delivery contracts,in all noticesof', 3043:'intent to place anorder,or solicitations for an order e.g., subpart 8.4 and 16.505. b the contractingofficer shall insertthe clause at', 3044:'52.20425,prohibition on contracting for certain telecommunications and videosurveillance services or equipment, in all solicitations and contracts. c thecontracting officer shall', 3045:'insert the provision at 52.20426,covered telecommunicationsequipment or services representation, in all solicitations. 4.2203 subpart 4.22 prohibition ona bytedance coveredapplication. 4.2201', 3046:'definitions. as used in this subpart— covered application means the social networking servicetiktok or any successor application orservice developed or', 3047:'provided by bytedance limited or an entity owned by bytedance limited. information technology, as defined in 40 u.s.c. 111016— 1', 3048:'means any equipment or interconnected system or subsystem of equipment, used in the automatic acquisition, storage, analysis, evaluation, manipulation, management,', 3049:'movement, control, display,switching, interchange, transmission, or reception of dataor information by the executive agency, if the equipmentis used bythe executive', 3050:'agency directly oris used by a contractor under a contract with the executive agency that requires the use— i of', 3051:'that equipment; or ii of that equipment to a significant extent in the performance of a service or the furnishing', 3052:'of a product; 2 includes computers, ancillary equipment including imaging peripherals, input, output, and storage devices necessary for security and', 3053:'surveillance, peripheral equipment designed to be controlled by the central processing unit of a computer, software, firmware and similar procedures,', 3054:'services including support services, and relatedresources; but 3 does not include any equipment acquired by a federal contractor incidental to', 3055:'a federal contract. 4.2202 prohibition. a section 102 of divisionr of the consolidated appropriations act, 2023 pub. l. 117328, the', 3056:'no tiktok on government devices act, and its implementingguidance under office ofmanagement and budget ombmemorandum m2313, dated february27,2023, “notiktok ongovernment', 3057:'devices” implementation guidance, collectively prohibit the presence or use of a coveredapplication on information technology,including certain equipment used by federal', 3058:'contractors. b this prohibition applies to the presence or use of a covered application on any information technology owned or', 3059:'managed by the government, or on any information technology used or provided by the contractor under a contract, including equipment', 3060:'providedby the contractor’s employees, unless an exception is grantedin accordance with omb memorandum m2313. 4.2203 contract clause. the contractingofficer shall', 3061:'insertthe clause at 52.20427, prohibition on a bytedance covered application, in all solicitations and contracts, unless an exception is granted', 3062:'in accordance with omb memorandum m2313. this page intentionally left blank. 4.192 4.2301 subpart 4.23 federal acquisition security council. 4.2300', 3063:'scope of subpart. this subpart implements the federal acquisition supply chain security act of 2018 title ii of pub. l.', 3064:'115–390 and the federalacquisition security councilfasc regulation at 41 cfr part 201–1. the authority provided in this subpart expires on', 3065:'december 31, 2033 see 41 u.s.c. 1328. 4.2301 definitions. as used in this subpart— covered article as defined in 41', 3066:'u.s.c. 4713k, means— 1 information technology, as defined in 40 u.s.c. 11101, including cloud computing services of all types; 2', 3067:'telecommunications equipment or telecommunications service, as those termsare definedin section 3 of the communications act of 1934 47 u.s.c. 153;', 3068:'3 the processing of information on a federal or nonfederal information system, subject to the requirements of the controlled unclassified', 3069:'information program see 32 cfr part 2002; or 4 hardware, systems, devices,software, or services that includeembeddedor incidental informationtechnology. fascsa order', 3070:'means any of the following orders issued under the federal acquisition supply chain security act fascsa requiring the removal ofcovered', 3071:'articles fromexecutive agency information systems orthe exclusion of one or more named sources or named covered articles from executive agency', 3072:'procurement actions, as described in 41 cfr 201– 1.303d and e: 1 the secretary of homeland securitymay issue fascsaordersapplicable to', 3073:'civilian agencies, to theextent not covered by paragraph2or 3 of this definition. this typeof fascsa order may be referred to', 3074:'as a department of homeland security dhs fascsaorder. 2 the secretary of defense may issue fascsa orders applicable tothe department', 3075:'of defense dod and national security systems other than sensitive compartmented informationsystems. this type of fascsa order may be referred', 3076:'to as a dod fascsa order. 3 the directorof national intelligence dni may issue fascsa orders applicable tothe intelligence community', 3077:'and sensitive compartmented information systems, to the extent not covered by paragraph 2 of this definition. this type of fascsaorder', 3078:'may be referred toas adni fascsa order. federal acquisition security council fasc means the council established pursuant to 41 u.s.c.', 3079:'1322a. intelligence community, as defined by 50 u.s.c. 30034, means the following— 1 the office ofthe director of national intelligence;', 3080:'2 the central intelligence agency; 3 the national security agency; 4 the defense intelligence agency; 5 the national geospatialintelligence agency;', 3081:'6 the national reconnaissance office; 7 otheroffices within the department of defense for thecollection of specialized national intelligence through reconnaissance', 3082:'programs; 8 the intelligence elements of thearmy, the navy,the air force, themarine corps,the coast guard, the federal bureau ofinvestigation, the', 3083:'drugenforcement administration, and thedepartment ofenergy; 9 the bureau of intelligence and research of the department of state; 10 the office', 3084:'of intelligence and analysis of the departmentof the treasury; 11 the office of intelligence and analysis of the departmentof homeland', 3085:'security; or 12 such other elements of any department or agency as may be designated by the president, or designated', 3086:'jointly by the director of national intelligence and the head of the department or agency concerned, as an element of', 3087:'the intelligence community. national security system, as defined in 44 u.s.c. 3552, means any information system including any telecommunications system', 3088:'used or operated by an agency orby a contractor of an agency, or otherorganization on behalf of an agency— 1', 3089:'the function, operation, or use of which involves intelligence activities; involves cryptologic activities related to national security; involves command and', 3090:'control of military forces; involves equipment that is an integral part of a weapon or weapons system; or is critical', 3091:'to the direct fulfillment of military or intelligence missions, but does not include a system 4.2302 federal acquisition regulation that', 3092:'is to be used for routine administrative and business applications including payroll, finance, logistics, and personnel management applications; or 2', 3093:'is protected at all times by procedures established for information that have been specifically authorized under criteria established by an', 3094:'executive order or an act of congress to be kept classified in the interest of national defense or foreign policy.', 3095:'reasonable inquiry means an inquiry designed to uncover any information in the entitys possession about the identity of any covered', 3096:'articles, or any products or services produced or provided by a source. this applies when the covered article or thesource', 3097:'is subject to an applicable fascsa order. a reasonableinquiry excludes theneedto include an internal orthirdparty audit. sensitive compartmented information means', 3098:'classified information concerning or derived from intelligence sources, methods, or analytical processes, which is required to be handled within formal', 3099:'access control systems established by the director of national intelligence. sensitive compartmented information system means a national security system authorized', 3100:'to process or store sensitive compartmented information. source meansa nonfederalsupplier, or potential supplier, of products or services, at any tier.', 3101:'supply chain risk, as defined in 41 u.s.c. 4713k, means the risk that any person may sabotage, maliciously introduce unwanted', 3102:'functionality, extractdata, or otherwisemanipulate thedesign, integrity, manufacturing, production, distribution, installation,operation,maintenance, disposition, or retirement of coveredarticlesso asto surveil, deny, disrupt, or', 3103:'otherwise manipulate the function, use, or operation of the covered articles or information stored or transmitted on the covered articles.', 3104:'supply chain risk information includes, but is not limited to, information that describes or identifies: 1 functionality and features of', 3105:'covered articles, including access to data and information system privileges; 2 the user environment where a covered article is used', 3106:'or installed; 3 the ability of a source to produce and deliver covered articles as expected; 4 foreign control of,', 3107:'or influenceover, asource or covered article e.g., foreign ownership, personal and professional ties betweena sourceandany foreign entity, legal regime ofanyforeign', 3108:'country in which a source is headquartered or conducts operations; 5 implications togovernment missions or assets, national security, homeland security,', 3109:'or critical functions associated with use of a covered source or covered article; 6 vulnerability of federal systems, programs, or', 3110:'facilities; 7 market alternatives to the covered source; 8 potential impact or harm caused by the possible loss, damage, or', 3111:'compromise of a product, material, or service to an organizations operationsor mission; and 9 likelihood of a potential impact or', 3112:'harm, or the exploitability of a system; 10 security,authenticity, and integrityof covered articles and theirsupplyand compilation chain; 11 capacity to', 3113:'mitigate risks identified; 12 factors that may reflect upon the reliability of other supply chain risk information; and 13 any', 3114:'other considerations that would factor into an analysis of the security, integrity, resilience, quality, trustworthiness, or authenticity of covered articles', 3115:'or sources. 4.2302 sharing supply chain risk information. a executive agencies are required toshare relevant supply chain risk informationwith the', 3116:'fasc ifthe executive agency has determined there is a reasonable basis to conclude a substantial supply chain risk associated with', 3117:'a source or covered article exists see 41 cfr 201–1.201. b in support of information sharing described in paragraph a', 3118:'of this section, the contracting officer shall work with the program officeor requiring activity in accordance with agency procedures regarding', 3119:'the sharing of relevant information on actual or potential supply chain risk determined to exist during the procurement process. 4.2303', 3120:'fascsa orders. a executive agencies are prohibited from procuring or obtaining, or extending or renewing a contract to procure or', 3121:'obtain, any covered article, or any products or services produced or provided by a source, including contractor use of covered', 3122:'articles or sources, if that prohibition is established by anapplicable fascsa order issued bythe director of national intelligence,secretaryof defense, orsecretaryof', 3123:'homelandsecurity the “issuing official”see 41 cfr 201–1.304a. 4.2304 b if a coveredarticle or the source is subject toan applicable governmentwidefascsa', 3124:'order issued collectively by the director of nationalintelligence, secretary of defense, and secretary of homeland security,executive agencies responsible for management', 3125:'of the federal supply schedules, governmentwide acquisition contracts, and multiagency contracts shall facilitate implementation of a collective fascsa order byremovingthe', 3126:'covered articles or sources identified in the fascsa order from suchcontracts see 41 cfr 201–1.303g. c 1fascsaordersregardingsourcesorcoveredarticleswillbefoundinthesystemforawardmanagementsam, by searching for', 3127:'thephrase “fascsa order”. sam may beupdated as new fascsa orders areissued. 2 somefascsa orders will notbe identified in sam and', 3128:'will need to be identified in the solicitationto beeffective for that acquisition. the requiring activity orprogramoffice will identify these fascsa', 3129:'orders to the contractingofficer see 4.2304d. 3 the contractingofficer shall work with the program officeor requiring activity to identifywhich fascsa', 3130:'orders apply to the acquisition. 4.2304 procedures. a identifying applicable fascsa orders. the applicabilityof fascsa orders to a particular acquisition', 3131:'depends on the contracting offices agency, the scope of the fascsa order,the funding, and whether the requirement involves certaintypes of', 3132:'information systems seethe definitionof fascsa order at 4.2301. thecontracting officer shall coordinate with the program officeor requiring activity to identifythe', 3133:'fascsaorders thatapply to theacquisitionas follows: 1 unlessthe program officeor requiring activity instructs thecontracting officer otherwise, fascsa orders apply as follows:', 3134:'contracts awarded by civilianagencies will besubject to dhs fascsa orders,and contracts awarded by the department of defense will be subject', 3135:'todod fascsa orders. see paragraph b of 52.20430, federal acquisition supply chain security act ordersprohibition. 2 for acquisitions where the', 3136:'program office orthe requiring activityinstructs the contracting officer to select specific fascsaorders, the contracting officer must select “yes” or “no”', 3137:'for each applicable type offascsa order i.e., “dhs fascsaorder” “dod fascsa order” or “dni fascsa order”. see paragraph b1 of', 3138:'52.20430, federal acquisition supply chain security act orders—prohibition, with its alternate i. b federal supply schedules, governmentwide acquisition contracts, multiagency', 3139:'contracts specific procedures— 1 applyingfascsa orders. anagency awarding this type of contract may choose to apply fascsa orders in accordance', 3140:'with agency policy as follows: i application at the contract level. the agencyawarding the basiccontract maychooseto apply fascsaorders to the', 3141:'basic contract award. this is the preferred method, especially if small value orders or orders without a request for quotation', 3142:'rfq are expected. ordering activity contracting officers may use this contract vehicle withouttaking further steps to identify applicable fascsa orders', 3143:'in the order. the contracting officer awarding the basic contract would select “yes” for all fascsaorders i.e., “dhs fascsa order”', 3144:'“dod fascsaorder” and “dnifascsa order” seeparagraph b1 of 52.20430, federal acquisition supply chain security act orders—prohibition, with its alternate i.', 3145:'if the contracting officer becomes aware of a newly issued applicable fascsa order,then the agency awarding the basic contractshallmodify the', 3146:'basic contract to remove any covered article, or any products or services produced or provided by a source, prohibited by', 3147:'thenewly issued fascsa order. ii application at the order level. theagency awarding the basic contract may choose to apply fascsa', 3148:'orders at theorder level,as implemented by the ordering activity contracting officer. 2 collective fascsa orders. if a new fascsa order', 3149:'is issued collectively by the secretary of homeland security, secretary of defense, and director of national intelligence, then the contracting', 3150:'officer shall modify the basic contract based uponthe requirementsof the order, removing any covered article, or anyproducts or services produced', 3151:'or provided by a source see 4.2303b. 3 interagency acquisitions. for an interagency acquisition see subpart 17.5 where the funding', 3152:'agency differs from theawarding agency, the funding agency shall determine theapplicable fascsa orders. 4 inconsistencies. if any inconsistency is identified', 3153:'between thebasic contract and the order, then thefascsa orders identified in the order will take precedence. c updating the solicitation', 3154:'or contract for new fascsa orders. thecontracting officer shall update asolicitation or contract ifthe program officeor requiring activity determines it', 3155:'isnecessary to: 1 amend thesolicitation to incorporate fascsa orders in effect after the datethe solicitation was issued but prior to', 3156:'contract award; or 2 modify the contract to incorporate fascsa orders issued after the date ofcontract award. 4.2305 federal acquisition', 3157:'regulation i any such modification should take place within a reasonable amount of time, but no later than 6 months', 3158:'from the determination of the program office orrequiring activity. ii if the contract is not modified within the time specified', 3159:'in paragraph c2i of this section, then the contract file shall be documented providing rationale why the contract could not', 3160:'be modified within this timeframe. d agency specific procedures. the contracting officershallfollow agency proceduresforimplementing fascsa orders not identified in sam', 3161:'see 4.2303c2. e disclosures. if an offeror provides a disclosure pursuant toparagraph eof 52.20429, federal acquisition supply chain security act', 3162:'orders—representation and disclosures, the contracting officer shall engage with the program officeor requiring activityto determine whether to pursue a waiver,', 3163:'if available, in accordance with 4.2305 and agency procedures or not awardto that offeror. for fascsa orders handled at the', 3164:'order level, the disclosures language is foundat paragraph b5 of 52.20430, federal acquisition supply chain security act orders—prohibition, with its', 3165:'alternate ii. f waiver. an acquisition may be either fully or partiallycovered by a waiver. partial waiver coverage occurs when', 3166:'only portions of theproducts orservices being procured or provided by a source are covered by an applicable waiver. if the', 3167:'requiring activitynotifies thecontracting officer thatthe acquisition is partiallycovered by an approved individualwaiver or class waiver under 4.2305,then the contractingofficer shall', 3168:'work withthe program officeor requiring activity to identify in the solicitation,rfq, ororder,the covered articles or servicesproduced byor provided by asource', 3169:'that are subject to the waiver see 41 cfr 201–1.304b. g reporting. if a contractor provides a report pursuant to', 3170:'paragraph c of 52.20430, federal acquisition supply chain security act orders—prohibition, the contractingofficer shall engage with theagency supply chain risk', 3171:'management program in accordance with agency procedures. 4.2305 waivers. a an executive agency requiredto comply witha fascsa order maysubmit a', 3172:'request thatthe order or someof its provisions not apply to— 1 the agency; 2 specific actions of the agency or', 3173:'a specific class of acquisitions; 3 actions of the agency for a period of time before compliance with the order', 3174:'is practicable; or 4 other activities, as appropriate, that the requesting agency identifies. b a request for waiver shall be', 3175:'submitted by the executiveagency in writing to the official that issued the order, unless other instructions for submission are provided', 3176:'bythe applicable fascsa order. c therequest for waiver shall provide the followinginformationforthe issuing official to review and evaluate the request,', 3177:'including— 1 identification ofthe applicable fascsa order; 2 a description of theexception sought, including, if limited to only a portion', 3178:'of theorder, a description of the order provisions from which an exception is sought; 3 the name or a description', 3179:'sufficient to identify the covered articleor the productor service provided by a source that is subject to the order from', 3180:'which an exception is sought; 4 compelling justification for why an exception should be granted, such as the impact of', 3181:'the order on the agencys ability to fulfill its missioncritical functions, or considerations related to the national interest, including national', 3182:'security reviews, national security investigations, or national security agreements; 5 any alternative mitigations to be undertaken to reduce the risks', 3183:'addressedby the fascsa order; and 6 any other information requested by the issuingofficial. d the contractingofficer, in accordance with agency', 3184:'proceduresandworking with the program office or requiring activity, shall decide whether topursue a waiveror to make award to an offeror', 3185:'that does notrequire a waiver in accordance with the procedures at 4.2304f. if awaiver is being pursued,then the contracting officermay', 3186:'not make anaward until written approval is obtained that the waiver has been granted. 4.2306 solicitation provision and contract clauses.', 3187:'a inallfederal supply schedules, governmentwide acquisition contracts, and multiagency contractswhere fascsa orders areapplied at the order level,the contracting officershallinsert the', 3188:'clauseat 52.20428, federal acquisition supply chain security act orders—federal supply schedules, governmentwide acquisition contracts, and multiagency contracts, in the basic', 3189:'contract solicitation and resultant contract see 4.2304b1ii. 4.2306 b the contractingofficer shall insertthe provisionat 52.20429, federal acquisition supply chain security', 3190:'act orders —representation and disclosures— 1 in all solicitations, except for federal supply schedules, governmentwide acquisition contracts, and multiagency contracts.', 3191:'2 in all solicitations for federal supply schedules, governmentwide acquisition contracts, and multiagency contracts, if fascsa orders are appliedat the', 3192:'contract level see 4.2304b1i. c thecontracting officer shall insert the clause at 52.20430, federal acquisition supply chain security act orders—', 3193:'prohibition— 1 in solicitations and contracts if the conditions specified at 4.2304a1 apply,exceptforfederal supply schedules, governmentwide acquisition contracts, and multiagency', 3194:'contracts. for acquisitions where conditions specified at 4.2304a 2 apply, thenthe contracting officershalluse the clausewith its alternate i. 2 in', 3195:'federal supply schedules, governmentwide acquisition contracts, and multiagency contracts— iwhere fascsa orders are applied at the contract level, with its', 3196:'alternate i in all solicitations and resultant contracts. see 4.2304b1i. iiwhere fascsa orders are applied at the order level, with', 3197:'itsalternate ii in all rfqs, or in allnotices of intent to place an order. see 4.2304b1ii. this page intentionally left', 3198:'blank. 4.196 part 5 publicizing contract actions sec. 5.000 scope of part. 5.001 definition. 5.002 policy. 5.003 governmentwide point of', 3199:'entry. subpart 5.1 dissemination of information 5.101 methods of disseminating information. 5.102 availabilityofsolicitations. subpart 5.2 synopses of proposed contract actions', 3200:'5.201 general. 5.202 exceptions. 5.203 publicizing and response time. 5.204 presolicitation notices. 5.205 special situations. 5.206 notices of subcontracting opportunities.', 3201:'5.207 preparation and transmittal of synopses. subpart 5.3 synopses ofcontractawards 5.301 general. 5.302 preparation and transmittal of synopses of awards.', 3202:'5.303 announcement of contract awards. 5.401 5.402 5.403 5.404 5.4041 5.4042 5.405 5.406 5.501 5.502 5.503 5.504 5.601 5.701 5.702', 3203:'5.703 5.704 5.705 subpart 5.4 release of information general. general public. requests from members of congress. release of longrange acquisition', 3204:'estimates. release procedures. announcements of longrange acquisition estimates. exchange of acquisition information. public disclosure of justification documents for certain contract', 3205:'actions. subpart 5.5 paid advertisements definitions. authority. procedures. use of advertising agencies. subpart 5.6 publicizing multiagency use contracts governmentwide database', 3206:'of contracts. subpart 5.7 publicizing requirements under the american recovery and reinvestment act of 2009 scope. applicability. definition. publicizing preaward.', 3207:'publicizing postaward. this page intentionally left blank. subpart 5.1 dissemination of information 5.101 5.000scope of part. this part prescribes policies', 3208:'and procedures for publicizing contract opportunities and award information. 5.001definition. contract action, as used in this part, means an action', 3209:'resulting in a contract, as defined in subpart 2.1, including actions for additional supplies or services outside the existing contract', 3210:'scope, but not including actions that are within the scope and under the terms of the existing contract, such as', 3211:'contract modifications issued pursuant to the changes clause, or funding and other administrative changes. 5.002 policy. contracting officersmust publicize contract', 3212:'actionsin order to a increase competition; b broaden industry participation in meeting government requirements; and c assist small business concerns,', 3213:'veteranowned small business concerns, servicedisabled veteranowned small business concerns, hubzone small business concerns, small disadvantaged business concerns, and womenowned small', 3214:'business concerns in obtaining contracts and subcontracts. 5.003 governmentwide point of entry. for any requirement in the farto publish a', 3215:'notice, the contracting officer musttransmit the notices to the gpe. subpart 5.1 dissemination of information 5.101methods of disseminating information. a', 3216:'as required by the small business act 15 u.s.c. 637e and the office offederal procurement policy act 41 u.s.c. 1708,contracting', 3217:'officers must disseminate information on proposed contract actionsas follows: 1 for proposed contract actions expected to exceed $25,000, by synopsizing', 3218:'in the gpe see 5.201. 2 for proposed contract actions expected to exceed $15,000, but not expected to exceed $25,000,', 3219:'by displaying in a public place, or by any appropriate electronic means, an unclassified notice of the solicitation or a', 3220:'copy of the solicitation satisfying the requirements of 5.207c. the notice must include a statement that all responsible sources may', 3221:'submit a response which,if timelyreceived, must be considered by the agency. the information must be posted not later than thedate', 3222:'the solicitation is issued, and must remain posted for at least 10 days or until after quotations have been opened,', 3223:'whichever is later. iif solicitations are postedinstead of a notice, thecontracting officer may employ various methods of satisfying the requirements', 3224:'of 5.207c. for example, thecontracting officer may meetthe requirementsof 5.207c by stamping the solicitation, by a cover sheet to the', 3225:'solicitation, or by placing a general statement in the display room. iithe contracting officer need notcomply with the display requirements', 3226:'of thissection when the exemptionsat 5.202a1, a4 through a9,or a11 apply, when oralsolicitationsare used, orwhen providingaccess toa notice of proposed', 3227:'contract action and solicitation through the gpe and the notice permits the public to respond to the solicitation electronically. iii', 3228:'contractingofficers may use electronic posting of requirements in a place accessible bythe general public at thegovernment installation to satisfy thepublic', 3229:'display requirement. contracting offices usingelectronic systems for public posting that are not accessible outside the installation must periodically publicize the', 3230:'methods for accessing the information. b in addition, one or more of the following methods may be used: 1 preparing', 3231:'periodic handouts listing proposed contracts, and displaying them as in 5.101a2. 2 assisting local trade associations in disseminating information to', 3232:'their members. 3 making brief announcements of proposed contracts to newspapers, trade journals, magazines, or other mass communication media for', 3233:'publication without cost to the government. 4 placing paid advertisements in newspapers or other communications media, subject to the following', 3234:'limitations: icontracting officers shall place paid advertisementsof proposed contracts only when it is anticipatedthat effective competition cannotbe obtainedotherwise see 5.205d.', 3235:'iicontracting officers shall not placeadvertisements of proposed contracts in a newspaper published and printed in the district of columbia unless', 3236:'the supplies or services will be furnished, or the labor performed, in the district of columbia or adjoining counties inmaryland', 3237:'or virginia 44 u.s.c. 3701. federal acquisition regulation iii advertisements published in newspapers must be under proper written authority in', 3238:'accordance with 44 u.s.c.3702 see 5.502a. 5.102 availability of solicitations. a 1exceptasprovidedinparagrapha5ofthissection,thecontractingofficermustmakeavailablethroughthegpe solicitations synopsized through the gpe, including specifications, technical', 3239:'data, and other pertinent information determined necessaryby the contracting officer. transmissions to the gpe must be in accordance with the', 3240:'interface description available via the internet at https://www.sam.gov. 2 the contractingofficer is encouraged,when practicableandcosteffective,to make accessible through the gpe additional', 3241:'information related to a solicitation. 3 the contractingofficer mustensure that solicitations transmittedusing electronic commerce areforwardedto the gpe to satisfy the', 3242:'requirements of paragraph a1 of this section. 4 when an agency determines that a solicitation contains information that requires additional', 3243:'controls to monitor access and distribution e.g., technical data, specifications, maps, building designs, schedules, etc., the information shall be made', 3244:'available through the enhanced controls of the gpe, unless an exception in paragraph a5 of this section applies. the gpe', 3245:'meets the synopsis and advertising requirements of this part. 5 the contractingofficer need not make a solicitation availablethroughthe gpe as', 3246:'requiredin paragraph a4 of this section, when i disclosure would compromise the national security e.g., would result in disclosure of', 3247:'classified information, or information subject to export controls or create other security risks. the fact that access to classified matter', 3248:'may be necessary to submit a proposal or perform the contract does not, in itself, justify use of this exception;', 3249:'ii the nature of the file e.g., size, format does not make it costeffective orpracticable for contractingofficers to provide access', 3250:'to the solicitation through the gpe; or iii the agency’s senior procurement executive makes a writtendeterminationthat accessthroughthe gpe isnot in', 3251:'thegovernment’s interest. 6 when an acquisition containsbrand name specifications, the contracting officer shall include with the solicitation the justification or', 3252:'documentation required by 6.3021c, 13.1061b, or 13.501, redacted as necessary see 6.305. b when the contractingofficer does not makea solicitation', 3253:'available through the gpepursuant to paragrapha5 of this section,the contracting officer 1 should employ other electronic means e.g., cdromor electronicmail', 3254:'wheneverpracticable and costeffective. when solicitations are provided electronically on physical media e.g., disks or inpaper form, the contracting officer must', 3255:'i maintain a reasonable number of copies of solicitations, including specifications and other pertinent information determined necessary by the contracting', 3256:'officer upon request, potential sources not initiallysolicited should be mailed or provided copies of solicitations, if available; iiprovidecopies on a', 3257:'firstcomefirstserved basis, for pickup at the contracting office, to publishers, trade associations, information services, and other members of the public', 3258:'having a legitimate interest for construction, see 36.211; and iii retain a copy of the solicitation and other documents for', 3259:'review by and duplication for those requesting copies after the initial number of copies is exhausted; and 2 may require', 3260:'payment of a fee, not exceeding the actual cost of duplication, for a copy of the solicitation document. c in', 3261:'addition to the methods of disseminating proposed contract information in 5.101a and b, provide, upon request to small business concerns,', 3262:'as required by 15 u.s.c. 637b 1 a copy of the solicitation and specifications. in the case of solicitations disseminated', 3263:'by electronic data interchange, solicitations may be furnished directly to the electronic address of the small business concern; 2 the', 3264:'name andtelephone number of an employee ofthe contracting office who will answer questions onthe solicitation; and 3 adequate citations to', 3265:'each applicable major federal law or agency rule with which small business concerns must comply in performing the contract. d', 3266:'when electronic commerce see subpart 4.5 is used in the solicitation process, availability of the solicitation may be limited to', 3267:'the electronic medium. e provide copies of a solicitation issued under other than full and open competition to firms requesting', 3268:'copies that were not initially solicited, but only after advising the requester of the determination to limit the solicitation to', 3269:'a specified firm or firms as authorized under part 6. subpart 5.1 dissemination of information 5.102 f this section 5.102', 3270:'applies to classified contracts to the extent consistent with agency security requirements see 5.202a1. this page intentionally left blank. subpart', 3271:'5.2 synopses of proposed contract actions 5.202 subpart 5.2 synopses of proposed contract actions 5.201general. a as required by the', 3272:'small business act 15 u.s.c. 637e and the office offederal procurement policy act 41 u.s.c. 1708, agencies must make notices', 3273:'of proposed contract actions available as specified in paragraph b of this section. b 1 for acquisitions of supplies and', 3274:'services, other than those covered by the exceptions in 5.202 and the special situations in 5.205, the contractingofficer must transmit', 3275:'a notice tothe gpe, for each proposed i contract action meeting the threshold in 5.101a1; ii modification to an existing', 3276:'contract for additional supplies or services that meets the threshold in 5.101a1; or iii contract action in any amount when', 3277:'advantageous to the government. 2 when transmitting notices using electroniccommerce, contracting officers must ensurethe notice isforwarded to the gpe. c', 3278:'the primary purposes of the notice are to improve small business access to acquisition information and enhance competition by identifying', 3279:'contracting and subcontracting opportunities. d the gpe may be accessed via the internet at https://www.sam.gov. 5.202exceptions. the contractingofficer need not', 3280:'submitthe notice required by 5.201 when a thecontracting officer determines that 1 the synopsis cannot be worded topreclude disclosure of', 3281:'an agency’s needs and such disclosure would compromise the national security e.g., would result in disclosure of classified information. the', 3282:'fact that a proposed solicitation or contract action contains classified information, or that access to classified matter may be necessary', 3283:'to submit a proposal or perform the contract does not, in itself, justify use of this exception to synopsis; 2', 3284:'the proposed contract action is made under the conditions described in 6.3022 or, for purchasesconducted using simplified acquisition procedures, ifunusual', 3285:'andcompelling urgency precludes competition to the maximum extent practicable and the government would be seriously injured if the agency complies', 3286:'with the time periods specified in 5.203; 3 the proposed contract action is one for which either the written direction', 3287:'of a foreign government reimbursing the agency for the cost of the acquisition of the supplies or services for such', 3288:'government, or the terms of an international agreementor treaty between the united states and aforeign government, orinternational organizations,has the effectof', 3289:'requiring that the acquisition shall be from specified sources; 4 the proposed contract action is expressly authorized or required by', 3290:'a statute to be made through another government agency, includingacquisitions from the small business administration sbausing the authority of section8a', 3291:'of the small business act but see 5.205f, or from a specific source such as a workshop for the blind', 3292:'under the rules of the committee for purchase from people who are blind or severely disabled; 5 the proposed contract', 3293:'action is for utility services other than telecommunications services and only one source is available; 6 the proposed contract action', 3294:'is an order placed under subpart 16.5. when the order contains brandname specifications, see especially 16.505a4; 7 the proposed contract', 3295:'action results from acceptance of a proposal under the small business innovation development act of1982 pub.l.97219; 8 the proposed contract', 3296:'action results from the acceptance of an unsolicited research proposal that demonstrates a unique and innovative concept see 2.101 and', 3297:'publication of any notice complying with 5.207 would improperly disclose the originality of thought or innovativeness of the proposed research,', 3298:'or would disclose proprietary information associated with the proposal. this exception does not apply if the proposed contract action results', 3299:'from an unsolicited research proposal and acceptance is based solely upon the unique capability of the source to perform the', 3300:'particular research services proposed see 6.3021a2i; 9 the proposed contract action is made for perishable subsistence supplies, and advance notice', 3301:'is not appropriate or reasonable; 10 the proposed contract action is made under conditions described in 6.3023, or 6.3025 with', 3302:'regard to brand name commercial products for authorized resale, or 6.3027, and advance notice is not appropriate or reasonable; 11', 3303:'the proposed contract action ismadeunder theterms ofan existing contract that was previouslysynopsizedin sufficient detail to complywith the requirements of 5.207', 3304:'with respect to the current proposed contract action; federal acquisition regulation 12 the proposed contract action is by a defense', 3305:'agency and the proposed contract action will be made and performed outside the united states and its outlying areas, and', 3306:'only local sources will be solicited. this exception does not apply to proposed contract actions covered by the world trade', 3307:'organizationgovernment procurement agreementor afree trade agreement see subpart 25.4; 13 the proposed contract action i is for an amount not', 3308:'expected to exceed the simplified acquisition threshold; iiwill be made through a means that provides access to the noticeof proposed', 3309:'contract action through thegpe; and iii permits the public to respond to the solicitation electronically; or 14 the proposed contract', 3310:'action is made under conditions described in 6.3023 with respect to the services of an expert to support the federal', 3311:'government in any current or anticipated litigation or dispute. b the head of the agency determines in writing, after consultation', 3312:'with the administrator for federal procurement policy and the administrator of the small business administration, that advance notice is not', 3313:'appropriate or reasonable. 5.203 publicizing and response time. whenever agencies are required to publicize notice of proposed contract actions under', 3314:'5.201, they must proceed as follows: a an agency must transmit a notice of proposed contract action to the gpe', 3315:'see 5.201. all publicizing and response times are calculated based on the date of publication. the publication date is the', 3316:'date the notice appears on the gpe. the notice must be published at least 15 days before issuance of a', 3317:'solicitation, or a proposed contract action the government intends to solicit and negotiate with only one source under the authority', 3318:'of 6.302, except that, for acquisitions of commercial products or commercialservices, the contracting officer may 1 establish a shorter period', 3319:'for issuance of the solicitation; or 2 use the combined synopsis and solicitation procedure see 12.603. b the contractingofficer mustestablisha', 3320:'solicitation response time that will affordpotentialofferorsa reasonable opportunity to respond to each proposed contract action, including actions where the notice', 3321:'of proposed contract action and solicitation information is accessible through the gpe, in an amount estimated to be greater than', 3322:'$25,000, but not greater than the simplified acquisition threshold; or each contract action for the acquisition of commercial products or', 3323:'commercial services inan amountestimated to be greater than $25,000. the contracting officer should consider the circumstances of the individualacquisition, such', 3324:'as thecomplexity, commerciality, availability, and urgency, when establishing the solicitation response time. c except for the acquisition of commercial products', 3325:'or commercial services see 5.203b, agencies shall allow at least a 30day response time for receipt of bids or proposals', 3326:'from the date of issuance of a solicitation, if the proposed contract action is expected to exceed the simplified acquisition', 3327:'threshold. d agencies shall allow at least a 30 day response time from the date of publication of a proper', 3328:'notice of intent to contract for architectengineer services or before issuance of an order under a basic ordering agreement or', 3329:'similar arrangement if the proposed contract action is expected to exceed the simplified acquisition threshold. e agencies must allow at', 3330:'least a 45day response time for receipt of bids or proposals from the date of publication of the notice required', 3331:'in 5.201 for proposed contract actions categorized as research and development if the proposed contract action is expected to exceed', 3332:'the simplified acquisition threshold. f nothing inthis subpart prohibitsofficers or employees ofagencies fromrespondingto requests for information. g contracting officersmay, unless', 3333:'they have evidence tothe contrary, presume the notice was published oneday after transmission to the gpe. this presumption does not', 3334:'negate the mandatory waiting or response times specified in paragraphs a through d of this section. upon learning that a', 3335:'particular notice has not in fact been published within the presumed timeframes, contracting officersshouldconsider whether the date for receiptof offers', 3336:'can be extended or whether circumstances have become sufficiently compelling to justify proceeding withthe proposed contract action under the authority', 3337:'of 5.202a2. h in addition tootherrequirements set forth inthissection, for acquisitionscovered by theworld trade organization governmentprocurementagreementorafreetradeagreementsee subpart 25.4, the period', 3338:'of time between publication of the synopsis notice and receipt of offers must be no less than 40 days. however,', 3339:'if the acquisition fallswithin a general categoryidentified in an annual forecast, theavailability of which ispublished, thecontracting officer may reduce this', 3340:'time period to as few as 10 days. subpart 5.2 synopses of proposed contract actions 5.205 5.204 presolicitation notices. contracting', 3341:'officersmust provideaccess to presolicitation notices through the gpesee 15.201 and 36.2132. the contracting officermust synopsizea proposedcontract actionbefore issuing any resulting', 3342:'solicitation see 5.201 and 5.203. 5.205special situations. a research and development r&d advance notices. contracting officers maytransmit to the gpe', 3343:'advance notices of their interest in potential r&d programs whenever market research does not produce a sufficient number of concerns', 3344:'to obtain adequate competition. advance notices must not be used where security considerations prohibit such publication. advance notices will enable', 3345:'potential sources to learn of r&d programs and provide these sources with an opportunity to submit information which will permit', 3346:'evaluation oftheir capabilities. contracting officers mustconsider potential sources which respond to advance notices for a subsequent solicitation. advanced notices must', 3347:'be entitled research and development sources sought and include the name and telephone number of the contracting officer orother contracting', 3348:'activity official from whom technical details of the projectcan be obtained. thiswill enable sources to submit information for evaluationof their', 3349:'r&d capabilities. contracting officers must synopsize see 5.201 all subsequent solicitations for r&d contracts, including those resulting from a previously', 3350:'synopsized advance notice, unless one of the exceptions in 5.202 applies. b federally funded research and development centers. before establishing', 3351:'a federally funded research and development center ffrdc see part 35 or before changing its basic purpose and mission, the', 3352:'sponsor must transmit at least three notices over a 90day period to the gpe and the federal register,indicating the agency’s', 3353:'intention to sponsor an ffrdc or changethe basic purposeandmissionof an ffrdc. the notice must indicate thescope and nature of theeffort', 3354:'to beperformed and requestcomments. notice is notrequired where theaction is required bylaw. c special notices.contracting officers may transmit to the', 3355:'gpe special notices of procurement matters suchas business fairs, longrange procurement estimates, prebid or preproposal conferences, meetings, and the availability', 3356:'of draft solicitations or draft specifications for review. d architectengineering services. contracting officers must publish notices of intent to contract', 3357:'for architectengineering services as follows: 1 except when exempted by 5.202, contracting officers musttransmit to the gpe a synopsis of', 3358:'eachproposed contract action for which the total fee including phases and options is expected to exceed $25,000. 2 when the', 3359:'total fee is expected to exceed $15,000 butnot exceed $25,000, the contracting officer must comply with 5.101a2. when the proposed', 3360:'contract action is not required to be synopsized under paragraph d1 of this section, the contracting officermust displaya noticeof the', 3361:'solicitation or a copyof the solicitation ina public placeat the contracting office. other optional publicizing methods are authorized in accordance', 3362:'with 5.101b. e publicprivate competitions under omb circular a76. 1 the contractingofficer shall make aformal public announcement for each streamlined', 3363:'or standard competition. the public announcement shall include, at a minimum, the agency, agency component, location, type ofcompetition streamlined or', 3364:'standard,activity being competed, incumbent serviceproviders, number of government personnel performingthe activity, name of the competitive sourcingofficial, name of the contracting', 3365:'officer, name of the agencytender official, and projected end date ofthe competition. 2 the contractingofficer shall announce the end ofthe', 3366:'streamlined or standard competition by making a formal public announcement of the performance decision. see omb circular a76. f section8a', 3367:'competitive acquisition. when a requirement is being considered for competitive acquisition limited to eligible 8a participants under subpart 19.8,thecontractingofficermusttransmitasynopsisoftheproposedcontractaction to', 3368:'the gpe. the synopsis may be transmitted to the gpe concurrent with submission of the agency offeringsee 19.8042 to the', 3369:'small business administration sba. the synopsis should also include information 1 advising that the acquisitionis being offered for competition limited', 3370:'to eligible 8a participants; 2 specifying the north american industry classification system naics code; 3 advising that eligibility to participate', 3371:'may be restricted to 8a participants in either the developmental stage or the developmental and transitional stages; and 4 encouraging', 3372:'interested 8a participants to request a copy of the solicitation as expeditiously as possible since the solicitation will be issued', 3373:'without further notice upon sba acceptance of the requirement for the section 8a program. g notifications to the public regarding', 3374:'consolidation, bundling, or substantial bundling. 1 for the requirement to publish a notification of consolidation or substantial bundling of contract', 3375:'requirements, see 7.1075c and d. 2 the agency is encouraged to provide notification of the rationale for any bundled requirement', 3376:'to the gpe before issuing the solicitation of any bundled requirement see 7.1075b. federal acquisition regulation h notice regarding timely', 3377:'definitization of equitable adjustments for change orders under construction contracts. when thecontracting officer anticipatesaward of a contract to a small', 3378:'business pursuant to a solicitation for construction, the contracting officermust transmit in the solicitationnotice on the gpeinformation regarding definitization of', 3379:'equitable adjustments for change orders under construction contracts see 36.211. 5.206notices of subcontracting opportunities. a the following entities may transmit', 3380:'a notice to the gpe to seek competition for subcontracts, to increase participation by hubzone small business, small, small disadvantaged,', 3381:'womenowned small business, veteranowned small business and servicedisabled veteranowned small business concerns, and to meet established subcontracting plan goals: 1', 3382:'a contractor awarded a contract exceeding the simplified acquisition threshold that is likely to result in the award of any', 3383:'subcontracts. 2 a subcontractor or supplier, at any tier, undera contract exceeding the simplified acquisition threshold, that has a subcontracting', 3384:'opportunity exceeding $15,000. b the notices must describe 1 the business opportunity; 2 any prequalification requirements; and 3 where to', 3385:'obtain technical data needed to respond to the requirement. 5.207 preparation and transmittal of synopses. a content. each synopsis transmitted', 3386:'to the gpe must address the following data elements, as applicable: 1 action code. 2 date. 3 year. 4 contracting', 3387:'office zipcode. 5 product or service code. 6 contracting office address. 7 subject. 8 proposed solicitationnumber. 9 closing response date.', 3388:'10 contact point or contracting officer. 11 contract award and solicitationnumber. 12 contract award dollaramount. 13 line item number. 14', 3389:'contract award date. 15 contractor. 16 description. 17 place of contract performance. 18 setaside status. b transmittal. transmissions to the', 3390:'gpe must be in accordance with the interface description available via the internetat https://www.sam.gov. c general format for description. prepare', 3391:'a clear and concise description of the supplies or services that is not unnecessarily restrictiveof competition and willallow a prospectiveofferor', 3392:'to make an informed business judgment as to whether a copy of the solicitation should be requested including the following,', 3393:'as appropriate: 1 national stock number nsn if assigned. 2 specification and whether anofferor,its product, or service mustmeet a qualification', 3394:'requirement in order to be eligible for award,andidentification of the office from which additional information about the qualification requirement may', 3395:'be obtained see subpart 9.2. 3 manufacturer,including part number, drawingnumber, etc. 4 size, dimensions, or other form, fit or functional', 3396:'description. 5 predominant material of manufacture. 6 quantity, including any options for additional quantities. 7 unit of issue. 8 destination', 3397:'information. subpart 5.2 synopses of proposed contract actions 5.207 9 delivery schedule. 10 duration of the contract period. 11 sustainable', 3398:'acquisition requirements,such as a description of highperformance sustainable building practices required, if for design, construction, renovation, repair, ordeconstructionsee part 23', 3399:'and 36.104. 12 for a proposed contract action in an amount estimated to be greater than $25,000 but not greater', 3400:'than the simplified acquisition threshold, enter i a description of the procedures to be used in awarding the contract e.g.,', 3401:'request for oral or written quotation or solicitation; and ii the anticipated award date. 13 for architectengineer projects and other', 3402:'projects for which theproduct or servicecodes are insufficient,provide brief details with respect to: location, scope of services required, cost range', 3403:'and limitations, type of contract, estimated starting and completion dates, and any significant evaluation factors. 14 iifthesolicitationwillincludethefarclauseat 52.2253,buyamericanfreetradeagreementsisraeli trade act,', 3404:'or anequivalent agency clause, insert thefollowing notice in the synopsis: one or more of the items under this acquisition issubject', 3405:'to free trade agreements. iiif the solicitation will include thefar clause at 52.2255, trade agreements, or an equivalent agency clause,', 3406:'insert the following notice in the synopsis: one or more of the items under this acquisition is subject to the', 3407:'world trade organization government procurement agreement and free trade agreements. iii if thesolicitation will include the far clause at 52.22511,', 3408:'buy americanconstruction materials under trade agreements, 52.22523, required use of american iron, steel, and manufactured goodsbuy american statute construction materials', 3409:'under trade agreements,or an equivalent agency clause, insert the following notice inthe synopsis: one or more of theitems under this', 3410:'acquisition is subject to the world trade organization government procurement agreement and freetradeagreements. 15 in the case of noncompetitive contract', 3411:'actions including those that do not exceed the simplified acquisition threshold, identify the intended source and insert a statement of', 3412:'the reason justifying the lack of competition. 16 i except when using the sole source authority at 6.3021, insert a', 3413:'statement that all responsible sources may submita bid, proposal, or quotationwhich shall be considered by the agency. ii when using', 3414:'the sole source authority at 6.3021, insert a statement that all responsible sources may submit a capability statement,proposal, or quotation,', 3415:'which shall be considered by the agency. 17 if solicitations synopsized through the gpe will not be made available through', 3416:'the gpe, provide information on how to obtain the solicitation. 18 if the solicitation will be made available to interested', 3417:'parties through electronic data interchange, provide any information necessary to obtain and respondto the solicitation electronically. 19 if the technical', 3418:'data required to respond to the solicitation will not be furnished as part of such solicitation, identify the source in', 3419:'the government, such as https://www.sam.gov, from which the technical data may be obtained. d setasides. when the proposed acquisition provides', 3420:'for a total or partial small business program setaside, or when the proposed acquisition provides for a local area setaside', 3421:'see subpart 26.2,thecontractingofficershallidentifythetypeof setaside in the synopsis and in the solicitation. e codes to be used in synopses to identify', 3422:'services or supplies. contracting officers must use one of the classification codes identified at https://www.sam.gov to identify services or supplies', 3423:'in synopses. f notice of solicitation cancellation. contracting officersmay publish notices of solicitation cancellations or indefinite suspensions of proposed contract', 3424:'actions in the gpe. this page intentionally left blank. subpart 5.3 synopses of contract awards 5.303 subpart 5.3 synopses of', 3425:'contract awards 5.301general. a except for contract actions described in paragraph b of this section and as provided in 5.003,', 3426:'contracting officers must synopsize through the gpe the following: 1 contract awards exceeding $25,000 that are icovered bythe world trade', 3427:'organization government procurement agreement or a free trade agreement see subpart 25.4; or iilikely to result inthe award ofany subcontracts.', 3428:'however, thedollarthreshold is not a prohibitionagainst publicizing an award of a smaller amount when publicizing would be advantageous to industry', 3429:'or to the government. 2 certain contract actions greater than the simplified acquisition threshold as follows i federal supply schedule', 3430:'fss orders or blanket purchase agreements supported by a limitedsource justification excluding brand name in accordance with 8.4056; or iitaskor', 3431:'delivery orders awarded without providing fairopportunity inaccordance with 16.505b2. 3 a notice isnot required underthis section if the noticewould disclose', 3432:'the executive agency’s needs andthe disclosureof such needs would compromise the nationalsecurity. b a notice is not required under paragraph', 3433:'a1 of this section if 1 the award results from acceptance of an unsolicited research proposal that demonstrates a unique', 3434:'and innovative research concept and publication of any notice would disclose the originality of thought or innovativeness of the proposed', 3435:'research or would disclose proprietary information associated with the proposal; 2 the award results from a proposal submitted under the', 3436:'small business innovation development act of 1982 pub. l. 97219; 3 the contract action is an order placed under subpart', 3437:'16.5 or 8.4, except see paragraph a2 of this section; 4 the award is made for perishable subsistence supplies; 5', 3438:'the award is for utility services, other than telecommunications services, and only one source is available; 6 the contract action', 3439:'i is for an amount not greater than the simplified acquisition threshold; iiwas made through ameans where accessto the notice', 3440:'of proposed contract action was providedthroughthe gpe; and iii permitted the public to respond to the solicitation electronically; or 7', 3441:'the award is for the services of an expert to support the federal government in any current or anticipated litigation', 3442:'or dispute pursuant to the exception to full and open competition authorized at 6.3023. c with respect to acquisitions covered', 3443:'by the world trade organization government procurement agreement or a free trade agreement,contracting officers must submit synopses in sufficienttime to', 3444:'permit their publicationin the gpe not later than 60 days after award. d posting is required of the justifications for', 3445:'1 contracts awarded using other than full and open competition in accordance with 6.305; 2 fss orders or blanket purchase', 3446:'agreements with an estimated value greater than the simplified acquisition threshold and supported by a limitedsources justification see 8.4056a; or', 3447:'3 task or delivery orders greater than the simplified acquisition thresholdandawarded without providing for fair opportunity in accordance with 16.505b2iib', 3448:'and d. 5.302 preparation and transmittal of synopses of awards. contracting officersshalltransmit synopses of contract awardsin thesame manner as prescribed', 3449:'in 5.207. 5.303announcement of contract awards. a public announcement. contractingofficers shall make information available on awards over $4.5million unless anotherdollaramount', 3450:'isspecified in agency acquisition regulationsin sufficient time for the agencyconcerned to announce it by 5 p.m. washington, dc, time on', 3451:'the day of award. agencies shall not release information on awardsbefore thepublic release timeof 5 p.m. washington,dc time. contracts excluded', 3452:'fromthisreporting requirement include 1 those placed with the small business administration under section 8a of the small business act; 2', 3453:'those placed with foreign firms when the place of delivery or performance is outside the united states and its outlying', 3454:'areas; and federal acquisition regulation 3 those for which synopsis was exempted under 5.202a1. b local announcement. agencies may also', 3455:'release information on contract awards to the local press or other media. when local announcements are made for contract awards', 3456:'in excess of the simplified acquisition threshold, they shall include 1 for awards after sealed bidding, a statement that the', 3457:'contract was awarded after competition by sealed bidding, the number ofoffers solicited and received,andthe basis for selection e.g., the lowest', 3458:'responsible bidder; or 2 for awards after negotiation, the information prescribed by 15.503b, and after competitive negotiation either price ordesign', 3459:'competition, astatement to this effect, and in general termsthe basis for selection. subpart 5.4 release of information 5.4041 subpart 5.4', 3460:'release of information 5.401general. a a high level of business security must be maintained in order to preserve the integrity', 3461:'of the acquisition process. when it is necessary to obtain information from potential contractors and others outside the government for', 3462:'use in preparing government estimates, contracting officers shall ensure that theinformation is not publicizedor discussed withpotential contractors. b contracting officersmay', 3463:'make available maximum information to the public, except information 1 on plans that would provide undue or discriminatory advantage to', 3464:'private or personal interests; 2 receivedin confidence from an offeror; 3 otherwise requiring protection under freedom of information act see', 3465:'subpart 24.2 or privacy act see subpart 24.1; or 4 pertaining to internal agency communications e.g., technical reviews, contracting authority', 3466:'or other reasons, or recommendations referring thereto. c this policy applies to all government personnel who participate directly or indirectly', 3467:'in any stage of the acquisition cycle. 5.402general public. contracting officersshallprocess requests for specific information from thegeneral public, including suppliers,', 3468:'in accordance with subpart 24.1 or 24.2, as appropriate. 5.403 requestsfrommembers of congress. contracting officersshallgive members of congress, upon their', 3469:'request, detailed information regarding any particular contract. when responsiveness would result in disclosure of classified matter, business confidential information, or', 3470:'information prejudicial to competitive acquisition, the contractingofficer shall refer the proposed reply, with full documentation,to theagency head and inform the', 3471:'legislative liaison office of the action. 5.404release of longrange acquisition estimates. to assist industry planning and tolocate additional sources ofsupply,', 3472:'it may bedesirable to publicize estimates of unclassified longrange acquisition requirements. estimates may be publicized as far in advance as', 3473:'possible. 5.4041 release procedures. a application. the agency head, or a designee, may release longrange acquisition estimates if the information', 3474:'will 1 assist industry in its planning and facilitate meeting the acquisition requirements; 2 not encourage undesirable practices e.g., attempts', 3475:'to corner the market or hoard industrial materials; and 3 not indicate the existing or potential mobilization of the industry', 3476:'as a whole. b conditions. the agency head shall ensure that 1 classified information is released through existing security channels', 3477:'in accordance with agency security regulations; 2 the information is publicized as widely as practicable to all parties simultaneously by', 3478:'any of the means described in this part; 3 each release states that i the estimate is based on the', 3479:'best information available; ii the information is subject to modification and is in no way binding on the government; and', 3480:'iii more specific information relating to any individual item or class of items will not be furnished until the proposed', 3481:'action is synopsized through the gpe or the solicitation is issued; 4 each release contains the name and addressof the', 3482:'contractingofficer that willprocess theacquisition; 5 modifications to the original release are publicized as soon as possible, in the same manner', 3483:'as the original; and 6 each release i is coordinated in advance with small business, public information, and public relations', 3484:'personnel, as appropriate; ii contains, if applicable, a statement that small business setasides may be involved, but that a determination', 3485:'can be made only when acquisition action is initiated; and federal acquisition regulation iii containsthe name or description of the', 3486:'item, and the estimatedquantity to be acquired by calendarquarter, fiscal year, or other period. it may also contain such additional', 3487:'information as thenumber of units last acquired, the unit price, and the name of thelast supplier. 5.4042 announcements of longrange', 3488:'acquisition estimates. further publicizing, consistent with the needs of the individual case, may be accomplished by announcing through the gpe', 3489:'that longrange acquisitionestimates have been publishedand are obtainable, upon request, from the contractingofficer. 5.405exchange of acquisition information. a when thesame', 3490:'item or class of items isbeing acquired by more than one agency, or bymorethan one contracting activity within an agency,the', 3491:'exchange and coordination of pertinent information,particularly cost and pricing data, between these agencies or contracting activities is necessary to promote', 3492:'uniformity of treatment of major issues and the resolution of particularlydifficult or controversialissues. the exchangeand coordination ofinformationis particularly beneficial during', 3493:'theperiod of acquisitionplanning,presolicitation, evaluation, and preaward survey. b when substantial acquisitions of major items are involved or when the contracting', 3494:'activity deems it desirable, the contracting activity shall request appropriate information on both the end item and on major subcontracted', 3495:'components from other agencies or contracting activities responsible for acquiring similar items. each agency or contracting activity receivingsuch a request', 3496:'shall furnish the information requested. the contractingofficer, early in a negotiation of a contract, or in connection with the review', 3497:'of a subcontract, shall request the contractor to furnishinformation asto the contractor’sor subcontractor’s previous governmentcontracts and subcontracts for the same', 3498:'or similar end itemsandmajorsubcontractor components. 5.406 public disclosure ofjustification documents for certain contract actions. a justifications and approvals for other', 3499:'than full and open competition must be posted in accordance with 6.305. b limitedsource justifications excluding brand name for fss', 3500:'orders or blanket purchase agreements with an estimated value greater than the simplified acquisition threshold must be posted in accordance', 3501:'with 8.4056a2. c justifications for task or delivery orders greater than the simplified acquisition threshold and awarded without providing for', 3502:'fair opportunity must be posted in accordance with 16.505b2iid. subpart 5.5 paid advertisements 5.504 subpart 5.5 paid advertisements 5.501definitions. as', 3503:'used in this subpart advertisement means any single message prepared for placement in communication media, regardless of the number of', 3504:'placements. publication means– 1 the placement of an advertisement in a newspaper, magazine, trade or professional journal, or any other', 3505:'printed medium; or 2 the broadcasting of an advertisement over radio or television. 5.502 authority. a newspapers. authority to approve', 3506:'the publication of paid advertisements in newspapers is vested in the head of each agency 44 u.s.c. 3702. this approval', 3507:'authority may be delegated 5 u.s.c. 302b. contracting officers shall obtain written authorization in accordance with policy procedures before advertising', 3508:'in newspapers. b other media. unless the agency head determines otherwise, advance written authorization is not required to place advertisements', 3509:'in media other than newspapers. 5.503 procedures. a general. 1 orders for paid advertisements may be placed directly withthe media', 3510:'orthroughan advertising agency. contracting officersshallgive small,small disadvantaged,womenowned, veteranowned, hubzone, and servicedisabled veteranowned small business concerns maximum opportunity to participate in', 3511:'these acquisitions. 2 the contractingofficer shall usethe sf 1449 for paper solicitations. the sf 1449 shall be used to make', 3512:'awards or place orders unless the award/order is made by using electronic commerce or by using the governmentwide commercial purchase', 3513:'card for micropurchases. b rates. advertisements may bepaid for atratesnot overthe commercial ratescharged private individuals, with the usual discounts 44', 3514:'u.s.c. 3703. c proof of advertising. every invoice for advertising shall be accompanied by a copy of theadvertisement oran affidavit', 3515:'of publication furnished by the publisher, radio or televisionstation, or advertising agency concerned 44u.s.c. 3703. paying offices shall retain the', 3516:'proof of advertising untilthe government accountability officesettles the paying office’s account. d payment. upon receipt of an invoice supported by', 3517:'proofof advertising, the contracting officer shall attach a copy of the written authority see 5.502a and submit the invoice for', 3518:'payment under agency procedures. 5.504use of advertising agencies. a general. basic ordering agreements may be placed with advertising agencies for', 3519:'assistance in producing and placing advertisements when a significant number will be placed in several publications and in national media.', 3520:'services of advertising agencies include, but are not limited to, counseling as to selection of the media for placement of', 3521:'the advertisement,contacting themedia in the interestof the government, placing orders, selectingandorderingtypography, copywriting, and preparing rough layouts. b use of commissionpaying', 3522:'media. the services of advertising agencies in placing advertising with media often can be obtained at no cost to the', 3523:'government, over and above the space cost, as many media give advertising agencies a commission or discount on the space', 3524:'cost that is not given to the government. c use of noncommissionpaying media. some media do not grant advertising agencies', 3525:'a commission or discount, meaningthe government canobtain the same rate as the advertising agency. if theadvertising agency agrees to place', 3526:'advertisements in noncommissionpaying media as a nocost service, the basic ordering agreement shall so provide. if the advertising agency will', 3527:'not agree to place advertisements at no cost, the agreement shall 1 provide that the government may place orders directly', 3528:'with the media; or 2 specify an amount that the government will pay if the agency places the orders. d', 3529:'art work, supplies, and incidentals. the basic ordering agreement also may provide for the furnishing by the advertising agency of', 3530:'art work, supplies, and incidentals, including brochures and pamphlets, but not their printing. incidentals may include telephone calls, and postage', 3531:'incurred by the advertising agency on behalf of the government. this page intentionally left blank. subpart 5.6 publicizing multiagency use', 3532:'contracts 5.601 subpart 5.6 publicizing multiagency use contracts 5.601governmentwide database of contracts. a a governmentwide database of contracts and other', 3533:'procurement instruments intended for use by multiple agencies is available via the internet at https://www.contractdirectory.gov/contractdirectory/. this searchable database is a', 3534:'tool that may be used to identify existing contracts and other procurement instruments that may be used to fulfill government', 3535:'needs. b the contracting activity shall 1 enter the information specified at https://www.contractdirectory.gov/contractdirectory/, in accordance with the instructions onthat website,', 3536:'within ten days of award of a governmentwide acquisition contract gwac, multiagency contract, federal supply schedule contract, or any other', 3537:'procurement instrument intended for use by multiple agencies, including blanket purchase agreements bpas underfederal supply schedule contracts. 2 enter the', 3538:'information specified at https://www.contractdirectory.gov/contractdirectory/ in accordance with the instructions on that website by october 31, 2003, for all contracts and', 3539:'other procurement instruments intended for use by multiple agencies that were awarded before july 24, 2003. this page intentionally left', 3540:'blank. subpart 5.7 publicizing requirements under the american recovery and reinvestment act of 2009 5.705 subpart 5.7 publicizing requirements under', 3541:'the american recovery and reinvestment act of 2009 5.701scope. this subpart prescribes posting requirements for presolicitation and award notices for', 3542:'actions funded in whole or in part by the american recoveryand reinvestment act of 2009 pub. l. 1115 recovery act.', 3543:'the requirements of thissubpart enhance transparency to the public. 5.702 applicability. this subpart applies to all actions expected to exceed', 3544:'$25,000 funded in whole or in part by the recovery act. unlike subparts 5.2 and 5.3, this subpart includes additional', 3545:'requirements for orders and for actions that are not both fixedprice and competitive. 5.703definition. as used in this subpart task', 3546:'or delivery order contract means a delivery order contract, and a task order contract, as defined in 16.5011. for example,', 3547:'it includes governmentwide acquisition contracts gwacs, multiagency contracts macs, andother indefinite delivery/indefinitequantity contracts, whether single award or multiple award. it', 3548:'also includes federal supply schedule contracts including blanket purchase agreements under subpart 8.4. 5.704 publicizing preaward. a 1 follow the', 3549:'publication procedures at 5.201. 2 in addition, notices of proposed contract actions are required for orders exceeding $25,000, funded in', 3550:'whole or in part by the recovery act, which are issued under task or delivery order contracts. this does not', 3551:'include modifications to existing orders, but these modifications are covered postaward, see 5.705. these notices are for informational purposes only,', 3552:'therefore, 5.203 does not apply. contracting officers should concurrently use their usual solicitation practice e.g., ebuy. b contracting officersshallidentify proposedcontract', 3553:'actions, funded inwhole or in part by therecovery act, by using thefollowing instructionswhich are also available in the recovery faqs', 3554:'under buyers/engineers at thegovernmentwide point of entry gpe https://www.sam.gov : 1 if submitting notices electronically via ftp or email, enter', 3555:'the word recovery as the first word in the title field. 2 if using the gpe directly, select the yes', 3556:'radio button for the isthisa recovery and reinvestment act action field on the notice details form step 2 located below', 3557:'the naics code field. in addition, enter the word recovery as the first word in the title field. c in', 3558:'preparing the description required by 5.207a16, use clear and concise language to describe the planned procurement. use descriptions of the', 3559:'goods and services including construction, that can be understood by the general public. avoid the use of acronyms or terminology', 3560:'thatis not widelyunderstoodby the general public. 5.705publicizing postaward. follow usual publication procedures at 5.301, except that the following supersede the', 3561:'exceptions at 5.301b2 through 7: a 1 publicize the award notice for any action exceeding $500,000, funded in whole or', 3562:'in part by the recovery act, including i contracts; ii modifications to existing contracts; iii orders which are issued under', 3563:'task or delivery order contracts; and iv modifications to orders under task or delivery order contracts. 2 contracting officersshallidentify contract', 3564:'actions,funded in wholeor in part by the recovery act, by usingthe following instructions which are also available in the recovery', 3565:'faqs under buyers/engineers atthe governmentwide point of entry gpe https://www.sam.gov : i if submitting notices electronically via ftp or email,', 3566:'enter the word recovery as the first word in the title field. federal acquisition regulation iiif using the gpe directly,', 3567:'selectthe yes radio buttonforthe is this a recovery and reinvestment act action field on the notice details form step 2', 3568:'located below the naics code field. in addition, enter the word recovery as the first word in the title field.', 3569:'3 in preparing the description required by 5.207a16, use clear and concise language to describe the planned procurement. use descriptions', 3570:'of the goods and services including construction, that can be understood by the general public. avoid the use of acronyms', 3571:'or terminology thatis not widelyunderstoodby the general public. b regardless of dollar value, if the contract action, including all modifications', 3572:'and orders under task or delivery order contracts, is not both fixedprice and competitively awarded, publicize the award notice and', 3573:'include in the description the rationale for using other than a fixedpriced and/or competitive approach. include in the description a', 3574:'statement specifically noting if the contract action was notawarded competitively, orwas not fixedprice, or wasneither competitive nor fixed price. these', 3575:'notices and the rationale will be available to the public at the gpe, so do not include any proprietary information', 3576:'or information that would compromise national security. the following tableprovides examples for whena rationale is required. posting of rationale examples', 3577:'description of contract action rationale required 1 a contract is competitively awarded and is fixedprice. not required. 2 a contract', 3578:'is awarded that is not fixedprice. required. 3 a contract is awarded without competition. required. 4 an order is issued', 3579:'under a new or existing single award idiq contract. required if order is made under a contract described in paragraph', 3580:'b2 or 3 of this section. 5 an order is issued under a new or existing multiple award idiq contract.', 3581:'required if one or both of the following conditions exist: i the order is not fixedprice. ii the order is', 3582:'awarded pursuant to an exception to the competition requirements applicable to the underlying vehicle e.g., award is made pursuant to', 3583:'an exception to the fair opportunity process. 6 a modification is issued. required if modification is madei to a contract', 3584:'described in b2 or 3 of this section; or ii to an order requiring posting as described in b4 or', 3585:'5 of this section. 7 a contract or order is awarded pursuant to a small business contracting authority e.g., sba’s', 3586:'section 8a program. required if one or both of the following conditions exist: i the contract or order is not', 3587:'fixedprice; ii the contract or order was not awarded using competition e.g., a noncompetitive 8a award. c contracting officers shall', 3588:'usethe instructions availablein therecovery faqs under buyers/engineers at the gpe https://www.sam.gov to identify actions funded in whole or in part', 3589:'by the recovery act. part 6 competition requirements sec. 6.000 scope of part. 6.001 applicability. 6.002 limitations. 6.003 [reserved] subpart', 3590:'6.1 full and open competition 6.100 scope of subpart. 6.101 policy. 6.102 use of competitive procedures. subpart 6.2 full and', 3591:'open competition after exclusion of sources 6.200 scope of subpart. 6.201 policy. 6.202 establishing or maintaining alternative sources. 6.203 setasides', 3592:'for small business concerns. 6.204 section 8a competition. 6.205 setasides for hubzone small business concerns. 6.206 setasides for servicedisabled veteran', 3593:'owned small business sdvosb concerns eligible under the sdvosb program. 6.207 setasides for economically disadvantaged womenowned small business edwosb concerns', 3594:'or womenowned small business wosb concerns eligible under the wosb program. 6.208 setasides for local firms during a major disaster', 3595:'or emergency. 6.300 6.301 6.302 6.3021 6.3022 6.3023 6.3024 6.3025 6.3026 6.3027 6.303 6.3031 6.3032 6.304 6.305 6.401 6.501 6.502', 3596:'subpart 6.3 other than full and open competition scope of subpart. policy. circumstances permitting other than full and open competition.', 3597:'only one responsible source and no other supplies or services will satisfy agency requirements. unusualandcompelling urgency. industrial mobilization; engineering, developmental,', 3598:'or research capability; or expert services. international agreement. authorized or required by statute. nationalsecurity. public interest. justifications. requirements. content. approval', 3599:'of the justification. availability ofthe justification. subpart 6.4 sealed bidding and competitive proposals sealed bidding and competitive proposals. subpart 6.5', 3600:'advocates for competition requirement. duties and responsibilities. this page intentionally left blank. subpart 6.1 full and open competition 6.102 6.000scope', 3601:'of part. this part prescribes policies and procedures to promote full and open competition in the acquisition process and to', 3602:'provide for full and open competition, full and open competition after exclusion of sources, other than full and open competition,', 3603:'and advocates for competition. this part does not deal with the results of competition e.g., adequate price competition, that are', 3604:'addressed in other parts e.g., part 15. 6.001 applicability. this part applies to all acquisitions except— a contracts awarded using', 3605:'the simplified acquisition procedures of part 13 but see 13.501 for requirements pertaining to sole source acquisitions of commercial products', 3606:'or commercial services, under subpart 13.5; b contracts awarded using contracting procedures other than those addressed in this part that', 3607:'are expressly authorized by statute; c contract modifications, that are within the scope of the contract, including the exercise of', 3608:'priced options that were evaluated as part of the original competition see 17.207f; d orders placed under requirements contracts or', 3609:'definitequantity contracts; e orders placed under indefinitequantity contracts that were entered into pursuant to this part when 1 the contract', 3610:'was awarded under subpart 6.1 or 6.2 and all responsible sources were realistically permitted to compete for the requirements contained', 3611:'in the order; or 2 the contract was awarded under subpart 6.3 and the required justification and approval adequately covers', 3612:'the requirements contained in the order; or f orders placed against task order and delivery order contracts entered into pursuant', 3613:'to subpart 16.5. 6.002limitations. no agency shall contract for supplies or services from another agency for the purpose of avoiding', 3614:'the requirements of this part. 6.003[reserved] subpart 6.1 full and open competition 6.100scope of subpart. this subpart prescribes the policy', 3615:'and procedures that are to be used to promote and provide for full and open competition. 6.101 policy. a 10', 3616:'u.s.c. 3201 and 41 u.s.c.3301 require, with certain limited exceptions see subpart 6.2 and 6.3, that contracting officers shall promote', 3617:'and provide for full and opencompetition insoliciting offers and awardinggovernmentcontracts. b contracting officersshallprovide for full and open competition through use', 3618:'ofthe competitive procedures contained in this subpart that are best suited to the circumstances of the contract action and consistent', 3619:'with the need to fulfill the government’s requirements efficiently 10 u.s.c. 3201 and 41 u.s.c. 3301. 6.102 use of competitive', 3620:'procedures. the competitive procedures available for use in fulfilling the requirement for full and open competition are as follows: a', 3621:'sealed bids. see 6.401a. b competitive proposals. see 6.401b. if sealed bids are not appropriate under paragraph a of this', 3622:'section, contracting officers shall request competitive proposals or use theother competitive procedures under paragraphc or d of this section. c', 3623:'combination of competitive procedures. ifsealed bids are notappropriate, contractingofficers may use any combination of competitive procedures e.g., twostep sealed bidding.', 3624:'d other competitive procedures. 1 selection of sources for architectengineer contracts in accordance with the provisions of 40 u.s.c. 1102', 3625:'et seq. is a competitive procedure see subpart 36.6 for procedures. 2 competitive selection of basic and applied research and', 3626:'that part of development not related to the development of a specific system or hardware procurement is a competitive procedure', 3627:'if award results from federal acquisition regulation i a broad agency announcement that is general in nature identifying areas of', 3628:'research interest, including criteria for selecting proposals,and soliciting the participation of all offerors capable ofsatisfying thegovernment’s needs; and iiapeer or', 3629:'scientific review. 3 use of multiple award schedules issued under the procedures established by the administrator of general services consistent', 3630:'with the requirement of 41 u.s.c. 1523a for the multiple award schedule program of the general services administration is a', 3631:'competitive procedure. subpart 6.2 full and open competition after exclusion of sources 6.205 subpart 6.2 full and open competition after', 3632:'exclusion of sources 6.200scope of subpart. this subpart prescribes policies and procedures for providing for full and open competition after', 3633:'excluding one or more sources. 6.201 policy. acquisitions made under this subpart require use of the competitive procedures prescribed in', 3634:'6.102. 6.202 establishing or maintainingalternative sources. a agencies may exclude a particular source from a contract action in order to', 3635:'establish or maintain an alternative source or sources for the supplies or services being acquired if the agency head determines', 3636:'that to do so would 1 increase or maintain competition and likely result in reduced overall costs for the acquisition,', 3637:'or for any anticipated acquisition; 2 be in the interest of national defense in havinga facility or a producer, manufacturer,', 3638:'or other supplier available for furnishing the suppliesor services in case ofa national emergency or industrial mobilization; 3 be in', 3639:'the interest of national defense in establishing or maintaining an essential engineering, research, or development capability to be provided by', 3640:'an educational or other nonprofit institution or a federally funded research and development center; 4 ensure the continuous availability of', 3641:'a reliable source of supplies or services; 5 satisfy projected needs based on a history of high demand; or 6', 3642:'satisfy a criticalneedformedical,safety, or emergency supplies. b 1 every proposed contract action under the authority of paragraph a of this', 3643:'section shall be supported by a determination and findings d&f see subpart 1.7 signed by the head of the agency', 3644:'or designee. this d&f shall not be made on a class basis. 2 technical and requirements personnel are responsible for', 3645:'providingall necessary data to supporttheir recommendation to exclude a particular source. 3 when the authority in paragraph a1 of this', 3646:'section is cited, the findings shall include a description of the estimated reduction in overall costs and how the estimate', 3647:'was derived. 6.203setasides for small business concerns. a to fulfill the statutory requirements relating to small business concerns, contracting officersmay', 3648:'set aside solicitations to allow only such business concerns to compete. this includes contract actions conducted under the small business', 3649:'innovation research program established under pub.l.97219. b no separate justification or determination and findings is required under this part to', 3650:'set aside a contract action for small business concerns. c subpart 19.5 prescribes policies and procedures that shall be followed', 3651:'with respect to setasides. 6.204section 8a competition. a to fulfill statutory requirements relating to section 8a of the small businessact,', 3652:'asamended by public law 100656, contracting officers may limit competition to eligible 8a participants see subpart 19.8. b no separate', 3653:'justification or determination and findings is required under this part to limit competition to eligible 8a participants. but see 6.3025', 3654:'and 6.3031 for sole source 8a awards over $25 million. 6.205setasides for hubzone small business concerns. a to fulfill the', 3655:'statutory requirements relating to the hubzone act of 1997 15 u.s.c. 631 note, contracting officers may set aside solicitations to', 3656:'allow only hubzone small business concerns to compete see 19.1305. b no separate justification or determination and findings is required', 3657:'under this part to set aside a contract action for hubzone small business concerns. federal acquisition regulation 6.206 setasides for', 3658:'servicedisabledveteranowned small business sdvosb concernseligibleunder the sdvosb program. a to fulfill the statutory requirements relating to the veterans benefits act', 3659:'of2003 15 u.s.c. 657f, contracting officers may setaside solicitations to allow only servicedisabled veteranowned small business concerns eligible under the', 3660:'sdvosb program to compete see 19.1405. b no separate justification or determination and findings are required under this part to', 3661:'set aside a contract action for servicedisabled veteranowned small business concerns eligible under the sdvosb program. 6.207setasides for economically disadvantaged', 3662:'womenowned small business edwosb concerns or womenowned smallbusiness wosb concerns eligible under the wosb program. a to fulfill the statutory', 3663:'requirements relating to 15 u.s.c. 637m, contractingofficers may setaside solicitations for only edwosb concerns or wosb concerns eligible under the', 3664:'wosb program see 19.1505. b no separate justification or determination and findings is required under this part to set aside', 3665:'a contract action for edwosb concerns or wosb concerns eligible under the wosb program. 6.208 setasides for local firms during', 3666:'a major disaster or emergency. a to fulfill the statutory requirements relating to 42 u.s.c. 5150, contracting officersmay set aside', 3667:'solicitations to allow only offerors residing or doing business primarilyin the area affected by such major disaster or emergency to', 3668:'compete see subpart 26.2. b no separate justification or determination and findings is required under this part to set aside', 3669:'a contract action. the setaside area specified by the contractingofficer shall be a geographic area withinthe area identified in apresidential', 3670:'declarationsof major disaster or emergencyand any additional geographic areas identified by the department of homeland security. subpart 6.3 other than', 3671:'full and open competition 6.3021 subpart 6.3 other than full and open competition 6.300scope of subpart. this subpart prescribes policies', 3672:'and procedures, and identifies the statutory authorities, for contracting without providing for full and open competition. 6.301 policy. a 41', 3673:'u.s.c.3304 and 10 u.s.c. 3204 each authorize, under certain conditions, contracting without providing for full and open competition. the department', 3674:'of defense, coast guard, and national aeronautics and space administration are subject to “ 10 u.s.c. 3204. other executive agencies', 3675:'are subject to 41 u.s.c. 3304. contracting without providing for full and open competition or full and open competition after', 3676:'exclusion of sources is a violation of statute, unless permitted by one of the exceptions in 6.302. b each contract', 3677:'awarded without providing for full and open competition shall contain a reference to the specific authorityunder which it was soawarded.', 3678:'contracting officers shall usethe u.s. codecitation applicable to theiragency. see 6.302. c contracting without providing for full and open competition', 3679:'shall not be justified on the basis of 1 a lack of advance planning by the requiring activity; or 2', 3680:'concerns related to the amount of funds available e.g., funds will expire to the agency or activity for the acquisition', 3681:'of supplies or services. d when not providing for full and open competition, the contracting officer shall solicit offers from', 3682:'as many potential sources as is practicable under the circumstances. e for contracts under this subpart,the contracting officershalluse the contracting', 3683:'procedures prescribed in 6.102a or b, if appropriate, or any other procedures authorized by this regulation. 6.302 circumstances permitting otherthan', 3684:'fulland open competition. the following statutory authorities including applications and limitations permit contracting without providing for full and open competition.', 3685:'requirements for justifications to support the use of these authorities are in 6.303. 6.3021 onlyone responsible sourceand noother supplies or', 3686:'services will satisfy agency requirements. a authority. 1 citations: 10 u.s.c. 3204a1 or 41 u.s.c. 3304a1. 2 when the supplies', 3687:'or services required bythe agency are available from only one responsible source, or, for dod, nasa, and the coast guard,', 3688:'from only one or a limited number of responsible sources, and no other type of supplies or services will satisfy', 3689:'agency requirements, full and opencompetition need not beprovidedfor. i supplies or services may be considered to be available from only', 3690:'one source if the source has submitted an unsolicited research proposal that a demonstrates a unique and innovative concept see', 3691:'definition at 2.101,or, demonstrates a uniquecapability of the source to provide the particular research services proposed; b offers a concept', 3692:'or servicesnot otherwise available to thegovernment; and c does not resemble the substance of a pending competitive acquisition. see 10', 3693:'u.s.c. 3204ba and 41 u.s.c. 3304b1. ii supplies may be deemed to be available only from the original source in', 3694:'the case of a followon contract for the continued development or production of a major system or highly specialized equipment,', 3695:'including major components thereof, when it is likely that award to any other source would result in a substantial duplication', 3696:'of cost to the government that is not expected to be recovered through competition; or b unacceptabledelays in fulfilling the', 3697:'agency’s requirements. see 10 u.s.c. 3204bb or 41 u.s.c. 3304b 2. iii for dod, nasa, and the coast guard, services', 3698:'may be deemed to be available only from the original source in the case of followon contracts for the continued', 3699:'provision of highly specialized services when it is likely that award to any other source would result in a substantial', 3700:'duplication of cost to the government that is not expected to be recovered through competition; or b unacceptabledelays in fulfilling', 3701:'the agency’s requirements. see 10 u.s.c. 3204bb. federal acquisition regulation b application. this authority shall be used, if appropriate, in', 3702:'preference to the authority in 6.3027; it shall not be used when any of the other circumstances is applicable. use', 3703:'of this authority may be appropriate in situations such as the following these examples are not intended to be all', 3704:'inclusive and do not constitute authority in and of themselves: 1 when there is a reasonable basis to conclude thatthe', 3705:'agency’s minimum needs canonlybe satisfied by i unique supplies or services available from only one source or only one supplier', 3706:'with unique capabilities; or ii for dod, nasa, and the coast guard, unique supplies or services available from only one', 3707:'or a limited number of sources or from only one or a limited number of suppliers with unique capabilities. 2', 3708:'the existence of limited rights in data, patent rights, copyrights, or secret processes; the control of basic raw material;or similar', 3709:'circumstances, make the supplies and services available from only one source however, the mere existence of such rights or circumstances', 3710:'does not in and of itself justify the use of these authorities see part 27. 3 when acquiring utility services', 3711:'see 41.101, circumstances may dictate that only one supplier can furnish the service see 41.202; or when the contemplated contract', 3712:'is for construction of a part of a utility system and the utility company itself is the only source available', 3713:'to work on the system. 4 when the agency head has determined inaccordancewith the agency’s standardization program that only specified', 3714:'makesand models of technical equipmentand parts willsatisfy the agency’s needs for additionalunits orreplacement items, and only one source is available.', 3715:'c application for brandname descriptions. 1 an acquisition or portion of an acquisition that uses a brandname description or other', 3716:'purchase description to specify a particular brandname, product, or feature of a product, peculiar to one manufacturer i does not', 3717:'provide for full and open competition, regardless of the number of sources solicited; and ii shall be justified and approved', 3718:'in accordance with 6.303 and 6.304. aif only aportion of the acquisition is for a brandname product or itempeculiar to', 3719:'one manufacturer, the justification andapproval is tocover only the portion of the acquisition which is brandname or peculiar to one', 3720:'manufacturer. the justification should state it is covering only the portion of the acquisition which is brandname or peculiar to', 3721:'one manufacturer, and the approval level requirements will then only apply tothat portion; b the justification should indicate that the', 3722:'use of such descriptions in the acquisition or portion of an acquisition isessential to the government’srequirements, thereby precluding considerationof aproduct', 3723:'manufactured by another company; and c the justification shall be posted with the solicitation see 5.102a6. 2 brandname or equal', 3724:'descriptions, and other purchasedescriptions that permit prospective contractorsto offer products other than those specifically referenced by brandname, provide for full', 3725:'and open competition and do not require justifications and approvals to support their use. d limitations. 1 contracts awarded using', 3726:'this authority shall be supported by the written justifications and approvals described in 6.303 and 6.304. 2 for contracts awarded', 3727:'using this authority, thenotices required by 5.201 shall have been published and any bids, proposals, quotations, or capability statements must', 3728:'have been considered. 6.3022 unusual and compellingurgency. a authority. 1 citations: 10 u.s.c. 3204a2 or 41 u.s.c. 3304a2. 2 when', 3729:'the agency’s need for the supplies or services is of such an unusual and compelling urgency that the government would', 3730:'be seriously injured unless the agency is permitted to limit the number of sources from which it solicits bids or', 3731:'proposals, full and open competitionneednot be provided for. b application. this authority applies in those situations where 1 an unusual', 3732:'and compelling urgency precludesfull and open competition; and 2 delay in awardof acontract would result in seriousinjury, financial or other,', 3733:'to the government. c limitations. 1 contracts awarded using this authority shall be supported by the written justifications and approvals', 3734:'described in 6.303 and 6.304. these justifications may be made and approved after contract award when preparation and approval prior', 3735:'to award would unreasonably delay the acquisition. 2 this statutory authorityrequiresthat agencies shall request offers from as many potential sourcesas', 3736:'is practicable under the circumstances. d period of performance. 1 the total period of performance of a contract awarded or', 3737:'modified using this authority i may not exceed the time necessary ato meet the unusual and compellingrequirements of the work', 3738:'to be performed under the contract; and subpart 6.3 other than full and open competition 6.3023 b for the agency', 3739:'to enter into another contract for the required goods and services through the use of competitive procedures; and iimay not', 3740:'exceed one year, including all options, unless theheadof the agency determines that exceptional circumstances apply. thisdeterminationmust be documentedin thecontract file.', 3741:'2 ianysubsequentmodificationusingthisauthority,whichwillextendtheperiodofperformancebeyondoneyear underthis sameauthority, requires a separatedetermination. this determination is only required ifthe cumulative period of performanceusing this authority exceeds', 3742:'one year. this requirement does not applyto theexercise of options previously addressed in the determination required at paragraph d1ii of', 3743:'this section. ii the determination shall be approved at the same level as the level to which the agency head', 3744:'authority in paragraph d1iiof this section is delegated. 3 the requirements in paragraphs d1 and 2 of this section shall', 3745:'apply to any contract in an amount greater than the simplified acquisition threshold. 4 the determination of exceptional circumstances is', 3746:'in addition to the approval of the justification in 6.304. 5 the determination may be made after contract award when', 3747:'making the determination prior to award would unreasonably delay the acquisition. 6.3023 industrial mobilization; engineering,developmental, or researchcapability; or expert services.', 3748:'a authority. 1 citations: 10 u.s.c. 3204a3 or 41 u.s.c. 3304a3. 2 full and open competition need not be provided', 3749:'for when it is necessary to award the contract to a particular source or sources in order ito maintain a', 3750:'facility, producer, manufacturer, or other supplier availableforfurnishing suppliesor services in case of a national emergencyor to achieve industrialmobilization; iito establish', 3751:'ormaintainan essential engineering, research, or development capability to be provided by an educational or other nonprofit institution or a federally', 3752:'funded research and development center; or iii to acquire theservices of an expert or neutral person for any current or', 3753:'anticipated litigation or dispute. b application. 1 use of the authority in paragraph a2i of this section may be appropriate', 3754:'when it is necessary to ikeep vital facilities or suppliersin business ormakethem available inthe event of a national emergency; iitrain', 3755:'aselected supplier in the furnishing of criticalsupplies orservices, prevent the loss of a suppliers ability and employees skills, or maintain', 3756:'active engineering, research, or development work; iii maintain properly balanced sources of supply for meeting the requirements of acquisition programs', 3757:'in the interest of industrial mobilization when the quantity required issubstantially largerthan the quantity thatmust be awardedin order to meet', 3758:'the objectivesof this authority, that portion not required to meet such objectives will be acquired by providing for full and', 3759:'open competition, as appropriate, under this part; iv create or maintain the required domestic capability for production of critical supplies', 3760:'by limiting competition to items manufactured in a the united states or its outlying areas; or b the united states,', 3761:'its outlying areas, or canada. v continue in production, contractors that are manufacturing critical items, where there would otherwise be', 3762:'a break in production; or vi divide current production requirements among two or more contractors to provide for an adequate', 3763:'industrial mobilization base. 2 use of the authority in paragraph a2ii of this section may be appropriate when it is', 3764:'necessary to i establish or maintain an essential capability for theoretical analyses, exploratory studies, or experiments in any field of', 3765:'science or technology; ii establish or maintain an essential capability for engineering or developmental work calling for the practical application', 3766:'of investigative findings and theories of a scientific or technical nature; or iii contract for supplies or services as are', 3767:'necessary incident to paragraph b2i or ii of this section. 3 use of the authority in paragraph a2iii of this', 3768:'subsection may be appropriate when it is necessary to acquire the services of either i an expert to use, in', 3769:'any litigation or dispute including any reasonably foreseeable litigation or dispute involving thegovernment in any trial, hearing, orproceeding before any', 3770:'court,administrativetribunal, or agency, whether or not the expert is expected to testify. examples of suchservicesinclude, but are not limitedto: federal', 3771:'acquisition regulation a assisting the government in the analysis, presentation, or defense of any claim or request for adjustment to', 3772:'contract terms and conditions, whether asserted by a contractor or the government, which is in litigation or dispute, or is', 3773:'anticipated to result in dispute or litigation before any court, administrative tribunal, or agency; or b participating in any part', 3774:'of an alternative dispute resolution process, including but not limited to evaluators, fact finders, or witnesses, regardless of whether the', 3775:'expert is expected to testify; or ii a neutral person, e.g., mediators or arbitrators, to facilitate the resolution of issues', 3776:'in an alternative dispute resolution process. c limitations. contracts awarded using this authority shall be supported by the written justifications', 3777:'and approvals described in 6.303 and 6.304. 6.3024 internationalagreement. a authority. 1 citations: 10 u.s.c. 3204a4 or 41 u.s.c. 3304a4.', 3778:'2 full and open competition need not be provided for when precluded by the terms of an international agreement or', 3779:'a treaty betweenthe united states and a foreign government or international organization, or the written directions of a foreign government', 3780:'reimbursing the agency for the cost of the acquisition of the supplies or services for such government. b application. this', 3781:'authority may be used in circumstances such as 1 when a contemplated acquisition is to be reimbursed by a foreign', 3782:'country that requires that the product be obtained from aparticular firm asspecified in official writtendirection such as a letter of', 3783:'offer and acceptance; or 2 when a contemplated acquisition is for services to be performed, or supplies to be used,', 3784:'in the sovereign territory of another country and the terms of a treaty or agreement specify or limit the sources', 3785:'to be solicited. c limitations. except for dod, nasa, and the coast guard, contracts awarded using this authority shall be', 3786:'supported by written justifications and approvals described in 6.303 and 6.304. 6.3025 authorized orrequired by statute. a authority. 1 citations:', 3787:'10 u.s.c. 3204a5 or 41 u.s.c. 3304a5. 2 full and open competition need not be provided for when– i a', 3788:'statute expressly authorizes or requires that the acquisition be made through another agency or from a specified source; or iithe', 3789:'agency’s need is for a brandname commercial productforauthorized resale. b application. this authority may be used when statutes, such as', 3790:'the following, expressly authorize or require that acquisition be made from a specified source or through another agency: 1 federal', 3791:'prison industries unicor 18 u.s.c. 4124 see subpart 8.6. 2 qualified nonprofit agencies for the blind or other severely disabled', 3792:'41 u.s.c. chapter 85, committee for purchase from people who are blind or severely disabled see subpart 8.7. 3 government', 3793:'printing and binding 44 u.s.c. 501504,1121see subpart 8.8. 4 sole source awards under the 8a program 15 u.s.c. 637, but', 3794:'see 6.303 for requirements for justification and approval of solesource 8a awards over $25 million. see subpart 19.8. 5 sole', 3795:'source awards under the hubzone act of 199715 u.s.c. 657a see 19.1306. 6 sole source awards under the veterans benefits', 3796:'act of 2003 15 u.s.c. 657f. 7 sole source awards under the wosb program– 15 u.s.c. 637m see 19.1506. c', 3797:'limitations. 1 this authority shall not be used when a provision of law requires an agency to award a new', 3798:'contract to a specified nonfederal government entity unless the provision of law specifically— i identifies the entity involved; ii refers', 3799:'to 10 u.s.c. 3201e for armed services acquisitions or 41 u.s.c. 3105 for civilian agency acquisitions; and iii states that', 3800:'award to that entity shall be made in contravention of the meritbased selection procedures in 10 u.s.c. 2304k or 41', 3801:'u.s.c. 3105, as appropriate. however, this limitation doesnot apply– a when the work provided for in the contract is a', 3802:'continuation of the work performed by the specified entity under a preceding contract; or b toanycontract requiringthe national academy ofsciencesto', 3803:'investigate, examine, or experiment upon any subject of science or art of significance to an executive agency and to report', 3804:'on those matters to the congress or any agency of the federal government. subpart 6.3 other than full and open', 3805:'competition 6.3031 2 contracts awarded using this authority shall be supported by the written justifications and approvals described in 6.303', 3806:'and 6.304, except for– i contracts awarded under a2ii or b2 of this section; ii contracts awarded under a2i of', 3807:'this section when the statute expressly requires that the procurement be made from a specified source. justification and approval requirements', 3808:'apply when the statute authorizes, but does not require, that the procurement be made from a specified source; or iii', 3809:'contracts less than or equal to $25 million awarded under b4 of this section. 3 the authority in a2ii of', 3810:'this section may be used only for purchases of brand name commercial products for resale through commissaries or other similar', 3811:'facilities. ordinarily, these purchases will involve articles desired or preferred by customers of the selling activities but see 6.301d. 6.3026', 3812:'national security. a authority. 1 citations: 10 u.s.c. 3204a6 or 41 u.s.c. 3304a6. 2 full and open competition need notbe', 3813:'provided for when the disclosure of the agency’s needs wouldcompromise the national security unless the agency is permitted to limit', 3814:'the number of sources from which it solicits bids or proposals. b application. this authority maybe usedforanyacquisition when disclosure ofthe', 3815:'government’s needs would compromise the national security e.g., would violate security requirements; it shall not be used merely because the', 3816:'acquisition is classified, or merely because access to classified matter will be necessary to submit a proposal or to perform', 3817:'the contract. c limitations. 1 contracts awarded using this authority shall be supported by the written justifications and approvals described', 3818:'in 6.303 and 6.304. 2 see 5.202a1 for synopsis requirements. 3 this statutory authorityrequiresthat agencies shall request offers from as', 3819:'many potential sourcesas is practicable under the circumstances. 6.3027 public interest. a authority. 1 citations: 10 u.s.c. 3204a7 or 41', 3820:'u.s.c. 3304a7. 2 full and open competition need not be provided for when the agency head determines that it is', 3821:'not in the public interest in the particular acquisition concerned. b application. this authority may be used when none of', 3822:'the other authorities in 6.302 apply. c limitations. 1 a written determination to use this authority shall be made in', 3823:'accordance with subpart 1.7, by ithe secretary of defense,the secretary of the army,the secretary of the navy,the secretary of the', 3824:'air force, the secretary of homeland security for the coast guard, or the administrator of the national aeronautics and space', 3825:'administration; or iithe head of any other executive agency. this authority may notbe delegated. 2 the congress shall be notified', 3826:'in writing of such determination not less than 30 days before award of the contract. 3 if required by the', 3827:'head ofthe agency, the contracting officer shall preparea justificationto support the determination under paragraph c1 of this subsection. 4 this', 3828:'determination and finding d&f shall not be made on a class basis. 6.303justifications. 6.3031 requirements. a a contractingofficer shall not', 3829:'commence negotiations for a sole source contract,commence negotiations for a contract resulting from an unsolicited proposal, or award any other', 3830:'contract without providing for full and open competition unless the contracting officer 1 justifies, if required in 6.302, the use', 3831:'of such actions in writing; 2 certifies the accuracy and completeness of the justification; and 3 obtains the approval required', 3832:'by 6.304. b the contractingofficer shall not award a solesource contract under the 8a authority 15 u.s.c. 637a for an', 3833:'amount exceeding $25 million unless 1 the contractingofficer justifies theuse of a solesource contract in writing in accordance with 6.3032;', 3834:'2 the justification is approved by the appropriate official designated at 6.304; and federal acquisition regulation 3 the justification and', 3835:'related information are made public after award in accordance with 6.305. c technical andrequirements personnelare responsible for providing and certifying', 3836:'as accurate and complete necessary data to support their recommendation for other than full and open competition. d justifications required', 3837:'by paragraph a of this section may be made on an individual or class basis. any justification for contracts awarded', 3838:'under the authority of 6.3027 shall only be made on an individual basis. whenever a justification is madeandapproved ona class', 3839:'basis, thecontracting officer must ensure that each contractaction taken pursuant to the authority of the class justification and approval is', 3840:'within the scope of the class justification and approval and shall document thecontract file for each contract action accordingly. e', 3841:'the justifications for contracts awarded under the authority cited in 6.3022 may be prepared and approved within a reasonable time', 3842:'after contract award when preparation and approval prior to award would unreasonably delay the acquisitions. 6.3032 content. a eachjustification shall', 3843:'contain sufficient facts and rationale to justify the use of thespecific authoritycited. b as a minimum, each justification, except those', 3844:'for solesource 8a contracts over $25 million see paragraph d of this section, shall include the following information: 1 identification', 3845:'ofthe agencyand the contracting activity, and specific identification of the document asa justification for other than full and open competition.', 3846:'2 nature and/or description of the action being approved. 3 a description of thesupplies orservicesrequired to meet the agency’sneeds including', 3847:'theestimated value. 4 an identification of the statutory authority permitting other than full and open competition. 5 a demonstration that', 3848:'the proposedcontractor’sunique qualifications or thenature of the acquisition requires use of the authority cited. 6 a description of efforts made', 3849:'to ensurethat offers are solicited from as many potential sources as is practicable, including whether a notice was or will', 3850:'be publicized as required by subpart 5.2 and, if not, which exception under 5.202 applies. 7 a determination by the', 3851:'contracting officer that the anticipated cost to the government willbe fair and reasonable. 8 a description of the market research', 3852:'conducted see part 10 and the results or a statement of the reason market research was not conducted. 9 any', 3853:'other facts supporting the use of other than full and open competition, such as: i explanation of why technical data', 3854:'packages, specifications, engineering descriptions, statements of work, or purchase descriptions suitable for full and open competition have not been developed', 3855:'or are not available. ii when 6.3021 is cited for followon acquisitions as described in 6.3021a2ii, an estimate of the', 3856:'cost to the government that would be duplicated and how the estimate was derived. iii when 6.3022 is cited, data,', 3857:'estimated cost, or other rationale as to the extent and nature of the harm to the government. 10 a listing', 3858:'of the sources, ifany, that expressed, in writing, an interestin the acquisition. 11 a statement ofthe actions,if any, the agency', 3859:'may take to removeor overcome any barriers tocompetition before any subsequent acquisition for the supplies or services required. 12 contractingofficer', 3860:'certificationthat thejustification is accurate and complete to the best of the contracting officer’s knowledge and belief. c each justification shall', 3861:'include evidence that any supporting data that is the responsibility of technical or requirements personnel e.g., verifying the government’sminimum needsor', 3862:'schedule requirements orotherrationale for other thanfull and open competition and which form a basis for the justification have been certified', 3863:'as complete and accurate by the technical or requirements personnel. d as a minimum, each justification for a solesource 8a', 3864:'contract over $25 million shall include the following information: 1 a description of the needs of the agency concerned for', 3865:'the matters covered by the contract. 2 a specification of the statutory provision providing the exception from the requirement to', 3866:'use competitive procedures in entering into the contract see 19.8051. 3 a determination that the use of a solesource contract', 3867:'is in the best interest of the agency concerned. 4 a determination that the anticipated cost of the contract will', 3868:'be fair and reasonable. 5 such other matters as the head of the agency concerned shall specify for purposes of', 3869:'this section. subpart 6.3 other than full and open competition 6.305 6.304 approvalof the justification. a except for paragraph b', 3870:'of this section, the justification for other than full and open competition shall be approved in writing 1 for a', 3871:'proposed contractnot exceeding $750,000, the contracting officer’s certificationrequired by 6.3032b12 will serve as approval unless a higher approving level is', 3872:'established in agency procedures. 2 for a proposed contract over $750,000 but not exceeding $15 million, by the advocate for', 3873:'competition for the procuring activity designated pursuant to 6.501or an official describedin paragraph a3 or4of this section. this authority is', 3874:'not delegable. 3 for a proposed contractover $15 million, butnot exceeding $75 million, or, for dod, nasa, and the coast', 3875:'guard, not exceeding$100 million, by the head of theprocuring activity, or a designee who iif amember of the armed forces,', 3876:'is a general or flag officer; or ii if a civilian, is serving in a position in a grade above', 3877:'gs15 under the general schedule or in a comparable or higher position under another schedule. 4 for a proposed contractover', 3878:'$75 million or, for dod, nasa, and the coast guard, over $100million,by the senior procurement executive of the agency designated', 3879:'pursuant to 41 u.s.c. 1702c in accordance with agency procedures.this authority is not delegable except in the case of the', 3880:'under secretary of defense for acquisition and sustainment, acting as the senior procurement executive for the department of defense. b', 3881:'any justification for a contract awarded under the authority of 6.3027, regardless of dollar amount, shall be considered approved when', 3882:'the determination required by 6.3027c1 is made. c a class justification for other than full and open competition shall be', 3883:'approved in writing in accordance with agency procedures. the approval level shall be determined by the estimated total value of', 3884:'the class. d the estimated dollar value of all options shall be included in determining the approval level of a', 3885:'justification. 6.305 availability of thejustification. a the agency shall make publicly available the justification required by 6.3031 as required by', 3886:'10 u.s.c. 3204f and 41 u.s.c. 3304f. except for the circumstances in paragraphs b and c of this section, the', 3887:'justification shall be made publicly available within 14 days after contract award. b in the case of a contract award', 3888:'permitted under 6.3022, the justification shall be posted within 30 days after contract award. c in the case of a', 3889:'brand name justification under 6.3021c, the justification shall be posted with the solicitation see 5.102a6. d the justifications shall be', 3890:'made publicly available 1 at the government point of entry gpe https://www.sam.gov. 2 on the website ofthe agency, whichmay provide', 3891:'access to the justifications by linking tothe gpe; and 3 must remain posted for a minimum of 30 days. e', 3892:'contracting officers shall carefully screen all justifications for contractor proprietary data and remove all such data, and such references and', 3893:'citations as are necessary to protect the proprietary data, before making the justifications available for public inspection. contracting officers shall', 3894:'also beguided by the exemptions to disclosure of informationcontained in the freedom of information act 5 u.s.c. 552 and the', 3895:'prohibitions against disclosure in 24.202 in determining whether the justification, or portions of it, are exempt from posting. although the', 3896:'submitter notice process set out in eo 12600, entitled predisclosurenotificationprocedures for confidential commercial information, does notapply, ifthe justification appears to', 3897:'containproprietary data,the contracting officer should provide the contractor that submitted the informationan opportunity to review the justification for proprietary data,', 3898:'before making the justification available for public inspection, redacted as necessary. this process must not prevent or delay the posting', 3899:'of thejustification inaccordancewith the timeframes required in paragraphs a through c. f the requirements of paragraphs a through d do', 3900:'not apply if posting the justification would disclose the executive agency’s needs and disclosure of such needs would compromise national', 3901:'security or create othersecurity risks. this page intentionally left blank. subpart 6.4 sealed bidding and competitive proposals 6.401 subpart 6.4', 3902:'sealed bidding and competitive proposals 6.401 sealedbiddingand competitive proposals. sealed bidding and competitive proposals, as described in parts 14 and', 3903:'15, are both acceptable procedures for use under subparts 6.1,6.2; and, when appropriate, under subpart 6.3. a sealed bids. see', 3904:'part 14forprocedures.contractingofficersshallsolicitsealedbidsif 1 timepermits thesolicitation, submission,andevaluation of sealed bids; 2 the award will be made on the basis of price', 3905:'and other pricerelated factors; 3 it is not necessary to conduct discussions with the responding offerors about theirbids; and 4', 3906:'there is a reasonable expectation of receiving more than one sealed bid. b competitive proposals. see part 15 for procedures.1contractingofficersmayrequestcompetitiveproposalsif', 3907:'sealed bids are not appropriate under paragraph a of this section. 2 because of differencesin areas such aslaw, regulations,and business', 3908:'practices, it is generally necessary to conduct discussions with offerors relative to proposed contractsto bemadeand performed outside the unitedstates and', 3909:'its outlying areas. competitive proposals will therefore be used for these contracts unless discussions are not required and the use', 3910:'of sealed bids is otherwise appropriate. this page intentionally left blank. subpart 6.5 advocates for competition 6.502 subpart 6.5 advocates', 3911:'for competition 6.501 requirement. as required by 41 u.s.c. 1705, the head of each executive agency shall designate an advocate', 3912:'for competition for the agency and for each procuring activity of the agency. the advocates for competitionshall a be in', 3913:'positions other than that of the agency senior procurement executive; b not be assigned any duties or responsibilities that are', 3914:'inconsistent with 6.502; and c beprovidedwith staffor assistance e.g., specialists in engineering, technical operations, contract administration, financial management, supply management,', 3915:'and utilization of small business concerns, as may be necessary to carry out the advocate’s duties and responsibilities. 6.502 duties', 3916:'and responsibilities. a agency and procuring activity advocates for competition are responsible for— 1 promoting the acquisition of commercial products', 3917:'and commercial services; 2 promoting full and open competition; 3 challenging requirements that are not stated in terms of functions', 3918:'to be performed, performance required, or essential physical characteristics; 4 challenging barriers to the acquisition of commercial products and commercial', 3919:'services; and 5 challenging barriers to full and open competition such as unnecessarily restrictive statements of work, unnecessarily detailed specifications,', 3920:'and unnecessarily burdensome contract clauses. b agency advocates for competition shall— 1 review the contracting operations of the agency and', 3921:'identify and report to the agency senior procurement executive and the chief acquisition officer– i opportunities and actions taken to', 3922:'acquire commercial products and commercial services to meet the needs of the agency; ii opportunities and actions taken to achieve', 3923:'full and open competition in the contracting operations of the agency; iii actions taken to challenge requirements that are not', 3924:'stated in terms of functions to be performed, performance required or essential physical characteristics; iv anycondition or action that has', 3925:'the effect of unnecessarily restricting the acquisition of commercial products or commercial services or unnecessarily restricting competition in the contract', 3926:'actions of the agency; 2 prepare and submit an annual reportto the agency seniorprocurement executive and the chiefacquisition officer in', 3927:'accordance with agency procedures, describing– isuch advocate’s activities under this subpart; ii new initiatives required to increase the acquisition of', 3928:'commercial products and commercial services; iii new initiatives required to increase competition; iv new initiatives to ensure requirements are stated', 3929:'in terms of functions to be performed, performance required or essential physical characteristics; v any barriers to the acquisition of', 3930:'commercial products, commercial services, or competition that remain; vi other ways in which the agency has emphasized the acquisition of', 3931:'commercial products, commercial services, and competition in areas such as acquisition training and research; and vii initiatives that ensure task', 3932:'and delivery orders over $1,000,000 issued under multiple award contracts are properly planned, issued, and comply with 8.405 and 16.505.', 3933:'3 recommend goals and plans for increasing competition on a fiscal year basis to the agency senior procurement executive and', 3934:'the chiefacquisitionofficer; and 4 recommend to the agency senior procurement executive and thechief acquisition officer a system of personal and', 3935:'organizationalaccountability for competition, which mayinclude the use of recognition and awards to motivate program managers, contracting officers, andothers in authority', 3936:'to promote competition in acquisition. this page intentionally left blank. part 7 acquisition planning sec. 7.000 scope of part. subpart', 3937:'7.3 contractor versus government performance subpart 7.1 acquisition plans 7.300 [reserved] 7.101 definitions. 7.301 definitions. 7.102 policy. 7.302 policy. 7.103', 3938:'agencyhead responsibilities. 7.303 [reserved] 7.104 general procedures. 7.304 [reserved] 7.105 contents of written acquisition plans. 7.305 solicitation provisions and contract', 3939:'clause. 7.106 additional requirements for major systems. 7.107 additional requirements for acquisitions subpart 7.4 equipment acquisition involving consolidation, bundling, or', 3940:'7.400 scope of subpart. substantial bundling. 7.401 acquisition considerations. 7.1071 general. 7.402 acquisition methods. 7.1072 consolidation. 7.403 general services administration', 3941:'assistance 7.1073 bundling. and omb guidance. 7.1074 substantial bundling. 7.404 contract clause. 7.1075 notifications. 7.1076 solicitation provision. subpart 7.5 inherently', 3942:'7.108 additional requirements for telecommuting. governmental functions 7.500 scope of subpart. subpart 7.2 planning for the purchase 7.501 [reserved] of', 3943:'supplies in economic quantities 7.502 applicability. 7.200 scope of subpart. 7.503 policy. 7.201 [reserved] 7.202 policy. 7.203 solicitation provision. 7.204', 3944:'responsibilities of contracting officers. this page intentionally left blank. subpart 7.1 acquisition plans 7.103 7.000scope of part. this part prescribes', 3945:'policies and procedures for a developing acquisition plans; b determining whether to use commercial or government resources for acquisition of', 3946:'supplies or services; c deciding whether it is more economical to lease equipment rather than purchase it; and d determining', 3947:'whether functions are inherently governmental. subpart 7.1 acquisition plans 7.101definitions. as used in this subpart acquisition streamlining means any effortthat', 3948:'results in more efficient and effective useof resources to design and develop, orproduce quality systems. this includes ensuring that only', 3949:'necessary and costeffective requirements are included, at the most appropriate time in the acquisition cycle, in solicitations and resulting contracts', 3950:'for the design, development, and production of new systems, or for modifications to existing systems that involve redesign of systems', 3951:'or subsystems. lifecycle cost means the total cost to the government of acquiring, operating, supporting, and if applicable disposing of', 3952:'the items being acquired. order means an order placed under a 1 federal supply schedule contract; or 2 taskordercontract ordeliveryorder', 3953:'contractawarded byanother agency, i.e., governmentwide acquisition contract or multiagency contract. planner means the designated person or officeresponsible for developingandmaintaining a', 3954:'written plan, orforthe planning function in those acquisitions not requiring a written plan. 7.102 policy. a agencies shall perform acquisition', 3955:'planning and conduct market research see part 10 for all acquisitions in order to promote and provide for— 1 acquisition', 3956:'of commercial products or commercial services, or to the extent that commercial products suitable to meetthe agency’s needs are not', 3957:'available, nondevelopmental items, tothe maximumextent practicable 10 u.s.c. 3453 and 41 u.s.c. 3307; and 2 full and open competition see', 3958:'part 6or,whenfullandopencompetitionisnotrequiredinaccordancewith part 6, to obtain competition to the maximum extent practicable, with due regard to the nature of the', 3959:'supplies or services to be acquired 10 u.s.c. 3206a1 and 41 u.s.c. 3306a1. 3 selection of appropriate contract type in', 3960:'accordance with part 16; and 4 appropriate consideration of the use of preexisting contracts, including interagency and intraagency contracts, to', 3961:'fulfill the requirement, before awarding new contracts. see 8.002 through 8.004 and subpart 17.5. b this planning shall integrate theefforts', 3962:'ofall personnel responsible for significant aspects of the acquisition. the purpose of this planning isto ensure that the governmentmeets its', 3963:'needs in the most effective, economical,andtimely manner. agencies that have a detailed acquisition planning system in place that generally meets', 3964:'the requirements of 7.104 and 7.105 need not revise their system to specifically meet all of these requirements. 7.103 agencyhead', 3965:'responsibilities. the agency head or a designee shall prescribe procedures f or the following: a promoting and providing for full', 3966:'and open competition see part 6or,whenfullandopencompetitionisnotrequired in accordance with part 6, for obtaining competition to the maximum extent practicable, with', 3967:'due regard to the nature of the supplies and services to be acquired 10 u.s.c. 3206a1 and 41 u.s.c. 3306a1.', 3968:'b encouraging offerors to supply commercialproducts orcommercial services, or to the extent that commercialproducts suitable, to meet the agency needs', 3969:'are not available, nondevelopmental items in response to agency solicitations 10 u.s.c. 3453 and 41 u.s.c. 3307. c ensuring thatacquisitionplannersaddress', 3970:'therequirementto specify needs, develop specifications, and to solicit offers in such a manner to promote and provide for full and', 3971:'open competition with due regard to the nature of the supplies and services to be acquired 10 u.s.c. 3206a1 and', 3972:'41 u.s.c. 3306a1. see part 6 and 10.002. federal acquisition regulation d ensuring that acquisition planners document the file to', 3973:'support the selection of the contract type in accordance with subpart 16.1. e establishing criteria and thresholds at which increasingly', 3974:'greater detail and formality in the planning process is required asthe acquisition becomes more complexand costly, including for costreimbursement and', 3975:'other highrisk contracts e.g., other than firmfixedprice contracts requiring a written acquisition plan. a written plan shall be prepared for', 3976:'cost reimbursement and other highrisk contracts other than firmfixedprice contracts, although written plans may be required for firmfixedprice contracts as', 3977:'appropriate. f ensuring that the statement of work is closely aligned with performance outcomes and cost estimates. g writingplans either', 3978:'ona systems basis, on anindividual contract basis, or on an individual order basis, depending upon the acquisition. h ensuring that', 3979:'the principles of this subpart are used, as appropriate, for those acquisitions that do not require a written plan as', 3980:'well as for those that do. i designating planners for acquisitions. jreviewing and approving acquisition plans and revisions tothese plans', 3981:'toensure compliance with farrequirements including 7.104 and part 16. for other than firmfixedprice contracts, ensuring that the plan is approved', 3982:'and signed at least one level above the contracting officer. k establishing criteria and thresholds at which designtocost and lifecyclecost', 3983:'techniques will be used. l establishing standard acquisition plan formats, if desired, suitable to agency needs. m waiving requirements of', 3984:'detail and formality, asnecessary,in planning for acquisitions having compressed delivery or performanceschedules because ofthe urgency of the need. n assuring', 3985:'that the contracting officer, priorto contracting, reviews: 1 the acquisition history of the supplies and services; and 2 a description', 3986:'of the supplies, including, when necessary for adequate description, a picture, drawing, diagram, or other graphic representation. o ensuring that', 3987:'agency planners include use of the metric system of measurement in proposed acquisitions in accordance with 15 u.s.c. 205b see', 3988:'11.002b and agency metric plans and guidelines. p ensuring that agency planners 1 comply with the policy in 11.002d regarding', 3989:'procurement of sustainable products and services as defined in 2.101 in accordance with subpart 23.1; 2 comply with the guiding', 3990:'principles for sustainable federal buildings and associated instructions guiding principles, for the design, construction, renovation, repair, or deconstruction of federal', 3991:'buildings see 36.104. the guiding principles can be accessed at https://www.sustainability.gov/pdfs/guidingprinciplesforsustainablefederalbuildings.pdf; and 3 require contractor compliance with federal environmental requirements,', 3992:'when the contractor is operating governmentowned facilities or vehicles, to the same extent as the agency would be required to', 3993:'comply if the agency operated the facilities or vehicles. q ensuring that acquisition planners specify needs and develop plans, drawings,', 3994:'work statements, specifications, or other product or service requirements e.g., help desks, call centers, training services, and automated selfservice technical', 3995:'support descriptions that address information and communication technology ict accessibility standards see 36 cfr 1194.1 in proposed acquisitions and that', 3996:'these standards are included in requirements planning see subpart 39.2. r making a determination, prior to issuance of a solicitation', 3997:'for advisory and assistance services involving the analysis and evaluation of proposals submitted in response toa solicitation, that a sufficient', 3998:'number of coveredpersonnel with the training and capability to perform an evaluation and analysis of proposals submitted in response to', 3999:'a solicitation are not readily available within the agency or from another federal agency in accordance with the guidelines at', 4000:'37.204. s ensuring that no purchase request is initiated or contract entered into that would result in the performance of', 4001:'an inherently governmental function by a contractor and that all contracts or orders are adequately managed so as to ensure', 4002:'effective official control overcontract ororder performance. t ensuring that knowledge gained from prior acquisitions is used to further refine requirements', 4003:'and acquisition strategies. for services, greater use of performancebased acquisition methods should occur for followon acquisitions. u ensuring that acquisition', 4004:'planners, to the maximum extent practicable 1 structure contract requirements to facilitate competition by and among small business concerns; and', 4005:'2 avoid unnecessary and unjustified bundling that precludes small business participation as contractorssee 7.107 15 u.s.c. 631j. subpart 7.1 acquisition', 4006:'plans 7.105 v ensuring that agency planners on information technology acquisitions comply with the capital planning and investment control requirements', 4007:'in 40 u.s.c. 11312 and omb circulara130. w ensuring that agency planners on information technology acquisitions comply with the information', 4008:'technology security requirements in the federal information security managementact44u.s.c. 3544, omb’s implementing policies including appendix iii of omb circular a130,', 4009:'and guidance and standardsfrom the departmentof commerce’s national institute of standards and technology. x ensuring that agency planners use project', 4010:'labor agreements when required see subpart 22.5 and 36.104 policy.. y ensuring that contractingofficers consult the disasterresponseregistry via https://www.sam.gov, search', 4011:'records, advanced search, disaster response registry search as a part of acquisition planning for debris removal, distribution of supplies, reconstruction,and', 4012:'otherdisaster or emergency relief activities insidethe united states and outlyingareas. see 26.205. 7.104 general procedures. a acquisition planning should begin', 4013:'as soon as the agency need is identified, preferably well in advance of the fiscal year in which contract award', 4014:'or order placement is necessary. in developing theplan,the plannershallform a teamconsisting of all those who will be responsible for significant', 4015:'aspects of the acquisition, such as contracting, small business, fiscal, legal, and technical personnel. if contract performance is to be', 4016:'in a designated operational area or supporting a diplomatic or consular mission, the planner shall also consider inclusion of the', 4017:'combatant commander or chief of mission, as appropriate. the planner should review previous plans for similar acquisitions and discuss them', 4018:'with the key personnel involved in those acquisitions. atkeydates specified in the plan or whenever significant changes occur, and no', 4019:'less often than annually, the planner shall review the plan and, if appropriate, revise it. b requirements and logisticspersonnel should', 4020:'avoid issuing requirements on an urgent basis orwith unrealistic delivery or performance schedules, since it generally restricts competition and increases', 4021:'prices. early in the planning process, theplanner should consult with requirements and logistics personnelwho determinetype,quality, quantity, and delivery requirements. c', 4022:'theplanner shall coordinate with and securethe concurrence of the contracting officer in all acquisition planning. if the plan proposes using', 4023:'other than full and open competition when awarding a contract, the plan shall also be coordinated with the cognizant advocate', 4024:'for competition. d the planner shall coordinate the acquisition plan or strategy with the cognizant small business specialist when the', 4025:'strategy contemplates an acquisition meeting the thresholds in 7.1074 for substantial bundling unless the contract or task order or delivery', 4026:'order is totally setaside for small business under part 19. the small business specialist shall notify the agency officeof small', 4027:'and disadvantagedbusiness utilization or the office of small business programs if the strategy involves 1 bundling that is unnecessary or', 4028:'unjustified; or 2 bundled or consolidated requirements not identified as such by the agency see 7.107. e the planner shall', 4029:'ensure that a cor is nominated as early as practicable in the acquisition process by the requirements official or inaccordancewith', 4030:'agency procedures. the contractingofficer shall designate and authorize a cor as earlyas practicable after the nomination. see 1.6022d. 7.105contents of', 4031:'written acquisition plans. in order to facilitate attainment of the acquisition objectives, the plan must identify those milestones at which', 4032:'decisions should be made see paragraph b21 of this section. the plan must address all the technical, business, management, and', 4033:'other significant considerations thatwill control the acquisition. the specific contentof plans willvary, depending on the nature, circumstances, and stage of', 4034:'the acquisition. in preparing the plan, the planner must follow the applicable instructions in paragraphs a and b of thissection,', 4035:'togetherwith the agency’s implementing procedures. acquisitionplans for service contracts or orders must describe the strategies for implementing performancebased acquisition methods', 4036:'or must provide rationale for not using those methods see subpart 37.6. a acquisition background and objectives1 statement of need.', 4037:'introduce the plan by a brief statement of need. summarize the technical and contractual history of the acquisition. discuss feasible', 4038:'acquisition alternatives, the impact of prior acquisitions onthose alternatives, and any relatedinhouse effort. 2 applicable conditions. state all significant conditions', 4039:'affecting the acquisition,such as i requirements for compatibility with existing or future systems or programs; and ii any known cost,', 4040:'schedule, and capability or performance constraints. federal acquisition regulation 3 cost. set forth the established cost goals for the acquisition', 4041:'and the rationale supporting them, and discuss related cost concepts to be employed, including, as appropriate, the following items: i', 4042:'lifecycle cost. discuss how lifecycle cost will be considered. if it is not used, explain why. if appropriate, discuss the', 4043:'cost model used to develop lifecyclecost estimates. ii designtocost. describe the designtocost objectives and underlying assumptions, including the rationale for', 4044:'quantity, learningcurve, and economic adjustment factors. describe how objectives are to be applied, tracked, and enforced. indicate specific related solicitation', 4045:'and contractual requirements to be imposed. iii application of shouldcost. describe the application of shouldcost analysis to the acquisition see', 4046:'15.4074. 4 capability or performance. specify the required capabilities or performance characteristics of the supplies or the performance standards of', 4047:'the services being acquired and state how they are related to the need. 5 delivery or performanceperiod requirements. describe the', 4048:'basis for establishing delivery or performanceperiod requirements see subpart 11.4. explainandprovidereasonsforanyurgencyifitresultsinconcurrencyofdevelopmentand production or constitutes justification for not providing for full', 4049:'and open competition. 6 tradeoffs. discuss theexpected consequences of tradeoffs amongthe various cost, capability or performance, and schedule goals. 7', 4050:'risks. discuss technical, cost, and schedule risks and describewhat efforts are planned or underway to reducerisk and the consequences offailureto', 4051:'achieve goals. if concurrency of development and production is planned,discuss its effects on cost and schedule risks. 8 acquisition streamlining.', 4052:'if specifically designated by the requiring agency as a program subject to acquisition streamlining, discuss plans and procedures to i', 4053:'encourage industry participation by using draft solicitations, presolicitation conferences, and other means of stimulating industry involvement during design and development', 4054:'in recommending the most appropriate application and tailoring of contract requirements; iiselect and tailor only thenecessary and costeffective requirements; and', 4055:'iii state the timeframe for identifying which of those specifications and standards, originally provided for guidance only,shallbecome mandatory. b plan', 4056:'of action— 1 sources. i indicate the prospective sources of supplies or services that can meet the need. ii consider', 4057:'required sources of supplies or services see part 8 and sources identifiable through databases including the governmentwide database of contracts', 4058:'and other procurement instruments intended for use by multiple agencies available at https://www.contractdirectory.gov/contractdirectory/. iii include consideration of small business, veteranowned', 4059:'small business, servicedisabled veteranowned small business, hubzone small business, small disadvantaged business, and womenowned small business concerns see part 19.', 4060:'iv consider the impact of any consolidation or bundling that might affect participation of smallbusinesses inthe acquisition see 7.107 15', 4061:'u.s.c. 644e and 15 u.s.c. 657q. when the proposed acquisition strategy involves bundling, identify the incumbentcontractors and contractsaffected by thebundling.', 4062:'v address the extent and results of the market research and indicate their impact on the various elements of the', 4063:'plan see part 10. 2 competition. i describe how competition will be sought, promoted, and sustained throughout the course of', 4064:'the acquisition. if full and open competition is not contemplated, cite the authority in 6.302, discuss the basis for the', 4065:'application of that authority, identifythe sources, and discusswhy full and open competitioncannot be obtained. ii identify the major components or', 4066:'subsystems. discuss component breakout plans relative to these major components or subsystems. describe how competition will be sought, promoted, and', 4067:'sustained for these components or subsystems. iii describe how competition will be sought, promoted, and sustained for spares and repair', 4068:'parts. identify the key logistic milestones, such as technical data delivery schedules and acquisition method coding conferences, that affect competition.', 4069:'iv when effective subcontract competition isboth feasible and desirable, describe how such subcontract competition will be sought, promoted, and sustained', 4070:'throughout the course of the acquisition. identify any known barriers to increasing subcontract competition and address how to overcome them.', 4071:'3 contract type selection. discuss the rationale for the selection of contract type. for other than firmfixedprice contracts, see 16.103d', 4072:'for additional documentation guidance. acquisition personnel shall document the acquisition plan with findings that detail the particular facts and circumstances,', 4073:'e.g., complexity of the requirements, uncertain duration subpart 7.1 acquisition plans 7.105 of the work, contractor’s technical capability and financial', 4074:'responsibility, oradequacy of the contractor’s accounting system, and associated reasoning essentialto support the contract type selection. the contracting officershallensure that', 4075:'requirements and technical personnel provide the necessary documentation to support the contract type selection. 4 sourceselection procedures. discuss the source', 4076:'selection procedures for the acquisition, including the basis for using a reverse auction when applicable, the timing for submission and', 4077:'evaluation of proposals, and the relationship of evaluation factors to the attainment of the acquisition objectives see subpart 15.3. whenanevmsisrequiredseefar', 4078:'34.202a and a preaward ibr is contemplated, the acquisition plan must discuss i how the preaward ibr will be considered', 4079:'in the source selection decision; iihow it will be conducted in the source selection processsee far 15.306; and iii whether', 4080:'offerors will be directly compensated for the costs of participating in a preaward ibr. 5 acquisition considerations. i for each', 4081:'contract contemplated, discuss use of multiyear contracting, options, or other special contracting methods see part 17;anyspecialclauses,specialsolicitationprovisions,orfardeviations required see subpart 1.4;', 4082:'whether sealed bidding or negotiation will be used and why; whether equipment will be acquired by lease or purchase see', 4083:'subpart 7.4 and why; and any other contracting considerations. provide rationale if a performance based acquisition will not be used', 4084:'or if a performancebased acquisition for services is contemplated on other than a firm fixedprice basis see 37.102a, 16.103d, and', 4085:'16.505a3. ii for each order contemplated, discuss a for information technology acquisitions, how the capital planning and investment control requirements', 4086:'of 40u.s.c. 11312andombcirculara130willbemetsee 7.103v and part 39; and b why this action benefits the government, such as when 1 the', 4087:'agency can accomplish itsmissionmore efficiently and effectively e.g., take advantage of the servicing agency’s specialized expertise; or gain access to', 4088:'contractors with needed expertise;or 2 ordering through an indefinite delivery contract facilitates access to small business concerns, including small disadvantaged', 4089:'business concerns, 8a contractors, womenowned small business concerns, hubzone small business concerns, veteranowned small business concerns, or servicedisabled veteranowned small', 4090:'business concerns. iii for information technology acquisitions using internet protocol, discuss whether the requirements documents include the internet protocol compliance', 4091:'requirements specified in 11.002g or a waiver of these requirements has been grantedby the agency’s chief information officer. iv for', 4092:'information technology acquisitions, identify the applicable ict accessibility standards. when an exception or an exemption to the standards applies, the', 4093:'plan must list the exception and/or exemption, and the items to which it applies. for those items listing 39.204 or', 4094:'39.205a1 or 2, the corresponding accessibility standard does not need to be identified. see subpart 39.2 and 36cfr1194.1. v for', 4095:'each contract and order contemplated, discuss the strategy to transition to firmfixedprice contracts to the maximum extent practicable. during the', 4096:'requirements development stage, consider structuring the contract requirements, i.e., line items, in a manner that will permit some, if not', 4097:'all, of the requirements to be awarded on a firmfixedprice basis, either in the current contract, future option years, or', 4098:'followon contracts. this will facilitate an easier transition to a firmfixedprice contract, because a cost history will be developed for', 4099:'a recurring definitive requirement. 6 budgeting and funding. include budget estimates, explain how they were derived, and discuss the schedule', 4100:'for obtaining adequate funds at the time they are required see subpart 32.7. 7 product or service descriptions. explain the', 4101:'choice of product or service description types including performance based acquisition descriptions to be used in the acquisition. 8 priorities,', 4102:'allocations, and allotments. when urgency of the requirement dictates a particularly short delivery or performanceschedule,certain priorities may apply. if so,specify', 4103:'the method for obtaining and using priorities, allocations, and allotments, and the reasons for them see subpart 11.6. 9 contractor', 4104:'versus government performance. address the consideration given to omb circularno.a76 see subpart 7.3. 10 inherently governmental functions. address the consideration', 4105:'given to subpart 7.5. 11 management information requirements. discuss, as appropriate, what management system will be used by thegovernment to', 4106:'monitor the contractor’s effort. ifan earnedvalue management system is to be used, discussthe methodology the government will employ to analyze', 4107:'and use the earned value data to assess and monitor contract performance. in addition, discusshow the offeror’s/contractor’s evms will be', 4108:'verified for compliance with the electronic industries alliance standard 748 eia748, earned value management systems, and thetiming and conduct ofintegrated', 4109:'baseline reviews whether prior to or post award. see 34.202. federal acquisition regulation 12 make or buy. discuss any consideration', 4110:'given to makeorbuy programs see 15.4072. 13 test and evaluation. to the extent applicable,describe the testprogramof the contractorandthe government. describe', 4111:'the test program for each major phase of a major system acquisition. if concurrency is planned, discuss the extent of', 4112:'testing to be accomplished before production release. 14 logistics considerations. describe i the assumptions determining contractor or agency support, both', 4113:'initially and over the life of the acquisition, including consideration of contractor or agency maintenance and servicing see subpart 7.3,', 4114:'support for contracts to be performed in a designated operational area or supporting a diplomatic or consular mission see 25.3013;', 4115:'and distribution of commercial products or commercial services; iithe reliability,maintainability, and quality assurance requirements, including any planned use of warranties', 4116:'see part 46; iii the requirements for contractor data including repurchase data and data rights, their estimated cost, and the', 4117:'use to be made of the data see part 27; and iv standardization concepts, including the necessity to designate, in', 4118:'accordance with agency procedures, technical equipment as standard so that future purchases of the equipment can be made from the', 4119:'same manufacturing source. 15 governmentfurnished property. indicate any government property to be furnished to contractors, and discuss any associated considerations,', 4120:'such as its availability or the schedule for its acquisition see 45.102. 16 governmentfurnished information. discuss any government information, such', 4121:'as manuals, drawings, and test data, to be provided to prospective offerors andcontractors. indicate which information that requires additional controls', 4122:'to monitor access and distribution e.g., technical specifications, maps, building designs, schedules, etc., as determined by the agency, isto beposted', 4123:'via the enhanced controls of the governmentwide point of entry gpeat https://www.sam.gov see 5.102a. 17 environmental and energy conservation objectives.', 4124:'discuss— iallapplicableenvironmentalandenergyconservationobjectivesassociatedwiththeacquisitionsee part 23; ii the applicability of an environmental assessment or environmental impact statement see 40 cfr part 1502;', 4125:'iii the proposed resolution of environmental issues; and iv any sustainable acquisition requirements to be included in the solicitation and', 4126:'contract see 11.002 and 23. 18 security considerations. i for acquisitions dealing with classified matters, discuss how adequate security will', 4127:'be established, maintained, and monitored see subpart 4.4. ii for information technology acquisitions, discuss how agency information security requirements will', 4128:'be met. iii for acquisitions requiring routine contractor physical access to a federallycontrolled facility and/or routine access to a federallycontrolled', 4129:'information system, discuss how agency requirements for personal identity verification of contractors will be met see subpart 4.13. iv for', 4130:'acquisitions that may require federal contract information to reside in or transit through contractor information systems, discuss compliance with subpart', 4131:'4.19. 19 contract administration. describe how the contract will be administered. in contracts for services, include how inspection and acceptance', 4132:'corresponding to the work statement’sperformance criteria will be enforced. in contractsfor supplies or service contracts that include supplies, address whether', 4133:'higherlevel quality standards are necessary 46.202 and whether the supplies to be acquired are critical items 46.101. 20 other considerations.', 4134:'discuss, as applicable: i standardization concepts; ii the industrial readiness program; iii the defense production act; iv the occupational safety', 4135:'and health act; vsupportantiterrorismbyfosteringeffectivetechnologiesactof2002safetyactsee subpart 50.2; vi foreign sales implications; vii special requirements for contracts to be performed in a', 4136:'designated operational area or supporting a diplomatic or consular mission; and viii any other matters germane to the plan not', 4137:'covered elsewhere. 21 milestones for the acquisition cycle. address the following steps and any others appropriate: acquisition plan approval. statement', 4138:'of work. specifications. subpart 7.1 acquisition plans 7.1072 data requirements. completion of acquisitionpackage preparation. purchase request. justification and approval for', 4139:'other than full and open competition where applicable and/or any required d&f approval. issuance of synopsis. issuance of solicitation. evaluation', 4140:'of proposals, audits, and field reports. beginning and completion of negotiations. contractpreparation, review, and clearance. contract award. 22 identification of', 4141:'participants in acquisition plan preparation. list the individuals who participated in preparing the acquisition plan, giving contact information for each.', 4142:'7.106 additional requirements for major systems. a in planning for the solicitation of a major system see part 34 development', 4143:'contract, planners shall consider requiring offerors to include, in their offers, proposals to incorporate in the designof amajorsystem 1 items', 4144:'which are currently available within the supply system of the agency responsible for the major system, available elsewhere in the', 4145:'national supply system, or commercially available from more than one source; and 2 items which the government will be able', 4146:'to acquire competitively in the future if they are likely to be needed in substantial quantities during the system’s service', 4147:'life. b in planning for the solicitation of a major system see part 34 production contract, planners shall consider requiring', 4148:'offerors to include, in their offers, proposals identifying opportunities to assure that the government will beable toobtain, on a competitive', 4149:'basis, items acquired in connection with the system that are likely to be acquired in substantial quantities during the service', 4150:'life of the system. proposals submitted in response to such requirements may include the following: 1 proposals to provide the', 4151:'government the right to use technical data to be provided under the contract for competitive future acquisitions, together with the', 4152:'costto the government,if any, of acquiring such technical data and the right to use such data. 2 proposals for the', 4153:'qualification or development of multiple sources of supply for competitive future acquisitions. c in determining whether to apply paragraphs a', 4154:'and b of this section, planners shall consider the purposes for which thesystem is being acquired and the technology necessary', 4155:'to meet the system’s requiredcapabilities. if such proposals are required, the contracting officer shall consider them in evaluating competingoffers. in', 4156:'noncompetitive awards, the factors in paragraphs aandbof this section, maybe considered bythe contracting officeras objectives innegotiating the contract. 7.107 additional', 4157:'requirements for acquisitions involving consolidation, bundling, orsubstantial bundling. 7.1071 general. a if the requirement is considered both consolidated and bundled,', 4158:'the agency shall follow the guidance regarding bundling in 7.1073, 7.1074, and 7.1075. b the requirements of this section 7.107', 4159:'do not apply 1 if a cost comparison analysis will be performed in accordance with omb circular a76 except 7.1074', 4160:'still applies; 2 to orders placed under singleagency taskorder contracts or deliveryorder contracts, when the requirement was considered in determining', 4161:'that the consolidation or bundling of the underlying contract was necessary and justified; or 3 to requirements for which thereis', 4162:'a mandatorysource see 8.002 or 8.003, including supplies and services that are on the procurement list maintained by the committee', 4163:'for purchase from people who are blind or severely disabled or the schedule of products issued by federal prison industries,', 4164:'inc. this exception does not apply– i when the requiring agency obtains a waiver in accordance with 8.604 or an', 4165:'exception in accordance with 8.605 or 8.706; or ii when optional acquisitions of supplies and services permitted under 8.713 are', 4166:'included. 7.1072 consolidation. a consolidation mayprovide substantialbenefits tothe government. however,because of thepotentialimpact on small business participation, before conducting an acquisition', 4167:'that is a consolidation of requirements with an estimated total dollar federal acquisition regulation value exceeding $2million, the seniorprocurement executive', 4168:'speor chief acquisition officer cao shall makea written determination that the consolidation is necessary and justified in accordance with 15', 4169:'u.s.c. 657q, after ensuring that 1 market research has been conducted; 2 any alternative contracting approaches that would involve a', 4170:'lesser degree of consolidation have been identified; 3 the determination is coordinatedwith the agencys office of small disadvantaged businessutilization orthe', 4171:'office of small business programs; 4 any negative impact by the acquisition strategy on contracting with small business concerns has', 4172:'been identified; and 5 steps are taken to include small business concerns in the acquisition strategy. b the spe or', 4173:'cao may determine that the consolidation is necessary and justified if the benefits of the acquisition would substantially exceed the', 4174:'benefits that would be derived from each of the alternative contracting approaches identified under paragraph a2 of this section, including', 4175:'benefits that are quantifiable in dollar amounts as well as any other specifically identified benefits. c such benefits may include', 4176:'cost savings or price reduction and, regardless of whether quantifiable in dollar amounts 1 qualityimprovements that willsave time or improveor', 4177:'enhance performance or efficiency; 2 reduction in acquisition cycle times; 3 better terms and conditions; or 4 any other benefit.', 4178:'d benefits. 1 benefits that are quantifiablein dollar amounts aresubstantial if individually, in combination, or in theaggregate the anticipated financial', 4179:'benefits are equivalent to iten percent of theestimated contract or order value including options ifthe value is $94 millionor less;or', 4180:'iifive percent of the estimatedcontract or order value including options or$9.4 million, whichever is greater,if the value exceeds $94 million.', 4181:'2 benefits that are not quantifiable in dollar amounts shall be specifically identified and otherwise quantified to the extent feasible.', 4182:'3 reduction of administrative orpersonnel costs aloneis not sufficient justification for consolidationunlessthe cost savings are expected to be at least', 4183:'10 percent of the estimated contract or order value including options of the consolidated requirements, as determined by the spe', 4184:'or cao 15 u.s.c. 657qc2b. e 1 notwithstanding paragraphs a through d of this section, the approving authority identified in', 4185:'paragraph e2 of this section may determine that consolidation is necessary and justified when i the expected benefits do not', 4186:'meet the thresholds for a substantial benefit at paragraph d1 of this section but are critical to the agencys mission', 4187:'success; and ii the procurement strategy provides for maximum practicable participation by small business. 2 the approving authority is– i', 4188:'for the department of defense, the spe: or ii for the civilian agencies, the deputy secretary or equivalent. f ifa', 4189:'determination is made that consolidation is necessaryandjustified, thecontracting officer shall include it in the acquisition strategy documentation and provide it', 4190:'to the small business administration sba upon request. 7.1073 bundling. a bundling may providesubstantial benefits to the government. however, becauseof', 4191:'the potential impacton small business participation, before conducting an acquisition strategy that involves bundling, the agency shall make a written', 4192:'determination that the bundling is necessary and justified in accordance with 15 u.s.c. 644e. a bundled requirement is considered necessary', 4193:'and justified if the agency would obtain measurably substantial benefits as compared to meeting its agencys requirements through separate smaller', 4194:'contracts or orders. b the agency shall quantify the specific benefits identified through the use of market research and other', 4195:'techniques to explain how their impact would be measurably substantial see 10.001a2iv and a3vii. c such benefits may include, but', 4196:'are not limited to 1 cost savings; 2 price reduction; 3 qualityimprovements that willsave time or improveor enhance performance or', 4197:'efficiency; 4 reduction in acquisition cycle times, or subpart 7.1 acquisition plans 7.1075 5 better terms and conditions. d benefits', 4198:'are measurably substantial if individually, in combination, or in the aggregatethe anticipated financial benefits are equivalent to 1 tenpercent ofthe', 4199:'estimated contractor order valueincludingoptions if thevalue is $94 million or less; or 2 five percent of the estimated contract or', 4200:'order value including options or $9.4 million, whichever is greater, if the value exceeds $94 million. e reduction ofadministrativeor personnel', 4201:'costs alone is not sufficient justification for bundling unless the cost savings are expected to be at least ten percent', 4202:'of the estimated contract or order value including options of the bundled requirements. f 1 notwithstanding paragraphs a through e', 4203:'of this subsection, the approving authority identified in paragraph f2 of this subsection may determine that bundling is necessary and', 4204:'justified when i the expected benefits do not meet the thresholds for a substantial benefit but are critical to the', 4205:'agencys mission success; and ii the acquisition strategy provides for maximum practicable participation by small business concerns. 2 the approving', 4206:'authority, without power of delegation, is– i for the department of defense, the senior procurement executive; or ii for the', 4207:'civilian agencies is the deputy secretary or equivalent. g in assessing whether cost savings and/or price reduction would be achieved', 4208:'through bundling, the agency and sba shall 1 compare theprice that has been charged by small businesses for the work', 4209:'that they have performed; or 2 where previous prices are not available, compare the price, based on market research, that', 4210:'could have been or could becharged bysmallbusinesses for theworkpreviously performed by other than a small business. h if a determination', 4211:'ismade that bundling isnecessary and justified,the contracting officer shall include it in the acquisition strategy documentation and provide it to', 4212:'sba upon request. 7.1074 substantial bundling. a 1 substantial bundling is any bundling that results in a contract or task', 4213:'or delivery order with an estimated value of— i $8 million or more for the department of defense; ii $6', 4214:'million or more for the national aeronautics and space administration, the general services administration, and the department of energy;or iii', 4215:'$2.5 million or more for all other agencies. 2 these thresholds apply to the cumulative estimated dollar value including options', 4216:'of– i multipleaward contracts; iitaskordersor delivery orders issued against a gsa schedule contract; or iii taskordersor delivery orders issued against', 4217:'a taskorder or deliveryordercontract awarded by another agency. b in addition to addressing the requirements for bundling see 7.1073, when', 4218:'the proposed acquisition strategy involves substantial bundling, the agency shall document in its strategy— 1 the specific benefits anticipated to', 4219:'be derived from substantial bundling; 2 an assessment of the specific impediments to participation by small business concerns as contractors', 4220:'that result from substantial bundling; 3 actions designed to maximize small business participation as contractors, including provisions that encourage small', 4221:'business teaming; 4 actions designed to maximize small business participation as subcontractors including suppliers at any tier under thecontract, ororder,that', 4222:'may be awardedto meet the requirements; 5 the determination that the anticipated benefits of the proposed bundled contract or order', 4223:'justify its use; and 6 alternative strategies that would reduce or minimize the scope of the bundling, and the rationale', 4224:'for not choosing those alternatives. 7.1075 notifications. a notifications to current small business contractors of agencys intent to bundle. 1', 4225:'the contractingofficer shall notifyeach small business performing a contract thatitintends tobundle the requirement at least 30 days prior to the', 4226:'issuance of the solicitation for the bundled requirement. federal acquisition regulation 2 the notification shall provide the name, phone number', 4227:'and address of the applicable sba procurement center representative pcr, or if ansba pcris not assigned to the procuring activity,', 4228:'the sbaofficeof government contracting area officeservingthe area in which the buying activity is located. 3 this notification shall be documented', 4229:'in the contract file. b notification to public of rationale for bundled requirement. the agency is encouraged to provide notification', 4230:'of the rationale for any bundled requirement to the gpe, before issuance of the solicitation see 5.201. c notification to', 4231:'the public of consolidation of contract requirements. the spe or cao shall publish in the gpe— 1 a notice that', 4232:'the agency has determined a consolidation of contract requirements is necessary and justified see 7.1072 no later than 7 days', 4233:'after making the determination; the solicitation may not be publicized prior to 7 days after publication of the notice of', 4234:'the agency determination; and 2 the determination that consolidation is necessary and justified with the publication of the solicitation. see', 4235:'7.1072 for the required content of the determination. d notification to the public of substantial bundling of contract requirements. the', 4236:'head of the agency shall publish in the gpe— 1 a notice that the agency has determined that a procurement', 4237:'involves substantial bundling see 7.1074 no later than 7 days after such determination has been made; the solicitation may not', 4238:'be publicized prior to 7 days after the publication of the notice of the determination; and 2 the rationale for', 4239:'substantial bundling with the publication of the solicitation. the rationale is the information required for inclusion in the acquisition strategy', 4240:'at 7.1074b. e notification to sba of followon bundled or consolidated requirements. for each followon bundled or consolidated requirement, the', 4241:'contracting officer shall obtain the following from the requiring activityand notify the sba pcr no later than 30 days prior', 4242:'to issuance of the solicitation: 1 the amount of savings and benefits achieved under the prior consolidation or bundling. 2', 4243:'whether such savings and benefits will continue to be realized if the contract remains consolidated or bundled. 3 whether such', 4244:'savings and benefits would be greater if the procurement requirements were divided into separate solicitations suitable for award to small', 4245:'business concerns. 4 list of requirements that have been added or deleted for the followon. f annual notification to the', 4246:'public of the rationale for bundled requirements. the agency shall publish on its website a listand rationaleforany bundled requirement for', 4247:'which the agency solicited offersor issued an award. thenotification shall be made annually within 30 days of the agencys data', 4248:'certification regarding the validity and verification of data entered in thefederal procurement data system to the office of federal procurement', 4249:'policy see 4.604. g notification to public of bundling policy. in accordance with 15 u.s.c. 644q2aii, agencies shall publish the', 4250:'governmentwide policy regarding contract bundling, including regarding the solicitation of teaming and joint ventures, on their agency website. 7.1076 solicitation', 4251:'provision. the contractingofficer shall insertthe provisionat 52.2076,solicitation of offers from small business concerns and small business teaming arrangements or joint', 4252:'ventures multipleaward contracts, in solicitations for multipleaward contracts above the substantial bundling threshold of the agency see 7.1074a. 7.108 additional', 4253:'requirements for telecommuting. in accordance with 41 u.s.c. 3306f, an agency shall generally not discourage a contractor from allowing its', 4254:'employees to telecommute in the performance of government contracts. therefore, agencies shall not a include in a solicitation arequirementthat prohibits', 4255:'an offeror from permitting its employeesto telecommute unless thecontracting officer first determines thatthe requirements of the agency, includingsecurity requirements, cannot', 4256:'be met if telecommuting ispermitted. the contractingofficer shall document the basis for the determination in writing and specifythe prohibition in', 4257:'the solicitation; or b when telecommuting is not prohibited, unfavorablyevaluatean offer because it includes telecommuting,unlessthe contracting officerfirst determines that therequirements', 4258:'of the agency, including security requirements, would be adversely impacted iftelecommuting is permitted. the contracting officer shall document the basis', 4259:'for the determination in writing and address the evaluation procedures in the solicitation. subpart 7.2 planning for the purchase of', 4260:'supplies in economic quantities 7.204 subpart 7.2 planning for the purchase of supplies in economic quantities 7.200scope of subpart. this', 4261:'subpart prescribes policies and procedures for gathering information from offerors to assist the government in planning the most advantageous quantities', 4262:'in which supplies should be purchased. 7.201[reserved] 7.202 policy. a agencies are required by 10 u.s.c. 3242 and 41 u.s.c.3310', 4263:'to procure supplies in such quantity as 1 will result in the total cost and unit cost most advantageous tothe', 4264:'government, where practicable; and 2 does not exceed the quantity reasonably expected to be required by the agency. b each', 4265:'solicitation for acontract for supplies isrequired,if practicable, to include a provisioninviting eachofferor responding to the solicitation 1 to state an', 4266:'opinion on whether the quantity of the suppliesproposed to be acquired iseconomically advantageous to the government; and 2 if applicable,', 4267:'to recommend a quantity or quantities which would be more economically advantageous to the government. each such recommendation is required', 4268:'to include a quotation of the total price and the unit price for supplies procured ineach recommended quantity. 7.203 solicitation', 4269:'provision. contracting officersshallinsert the provision at 52.2074, economic purchase quantitysupplies, in solicitations for supplies. the provision need not be inserted', 4270:'if thesolicitation isfora contract underthe general services administration’s multiple awardschedulecontract program, orif the contracting officer determines that a the government', 4271:'already has the data; b the data is otherwise readily available; or c it is impracticable for the government to', 4272:'vary its future requirements. 7.204responsibilities of contracting officers. a contracting officers are responsible for transmitting offeror responsesto the solicitation provision', 4273:'at 52.2074 to appropriate inventory management/requirements development activities in accordance with agency procedures. the economic purchase quantity data so obtained', 4274:'are intended to assist inventory managers in establishing and evaluating economic order quantities for supplies under their cognizance. b in', 4275:'recognition ofthe factthat economicpurchase quantity data furnished by offerors are only one of manydata inputs required for determining the most', 4276:'economical order quantities, contracting officers should generally take no action torevise quantitiesto beacquired inconnectionwith the instant procurement. however, if a', 4277:'significant price variation is evident from offeror responses, and thepotentialforsignificant savings is apparent, the contracting officer shall consult with the', 4278:'cognizant inventory manager or requirements development activity before proceeding with an award or negotiations. if this consultation discloses that the', 4279:'government should be ordering an item of supply in different quantities and the inventory manager/requirements development activity concurs, the solicitation', 4280:'for the item should be amended or canceled and a new requisition should be obtained. this page intentionally left blank.', 4281:'subpart 7.3 contractor versus government performance 7.305 subpart 7.3 contractor versus government performance 7.300[reserved] 7.301definitions. definitions of inherently governmental activity', 4282:'and other terms applicable to this subpart are set forth at attachment d of the office of management andbudget circular', 4283:'no. a76 revised, performance of commercial activities, dated may29, 2003 the circular. 7.302 policy. a the circular provides that it', 4284:'is the policy of the government to 1 perform inherently governmental activities with government personnel; and 2 subject commercial activities', 4285:'to the forces of competition. b asprovided in thecircular,agencies shall 1 not use contractors to perform inherently governmental activities; 2', 4286:'conduct publicprivate competitions in accordance with the provisions of the circular and, as applicable, these regulations; 3 give appropriate consideration', 4287:'relative to cost when making performance decisions between agency and contractor performance in publicprivate competitions; 4 considerthe agency tender official', 4288:'an interestedpartyin accordance with 31 u.s.c. 3551 to 3553 for purposes of filing a protest at the government accountability office;', 4289:'and 5 hear contests in accordance with omb circular a76, attachment b, paragraph f. c when using sealed bidding in', 4290:'publicprivate competitionsunder omb circular a76, contracting officers shall not hold discussions to correct deficiencies. 7.303[reserved] 7.304[reserved] 7.305 solicitation provisionsand contractclause.', 4291:'a thecontracting officer shall, when soliciting offers and tenders, insert in solicitations issued for standard competitions the provision at 52.2071,', 4292:'notice of standard competition. b the contractingofficer shall,when soliciting offers, insertin solicitations issued for streamlined competitions the provision at 52.2072,', 4293:'notice of streamlined competition. c thecontracting officer shall insert the clause at 52.2073, right of first refusal of employment, in', 4294:'all solicitations which may result in a conversion from inhouse performance to contract performance of work currently being performed by', 4295:'the government and in contracts that result from the solicitations, whether or not a publicprivate competition is conducted. the 10dayperiod', 4296:'in the clause may bevaried bythe contracting officer upto a periodof 90 days. this page intentionally left blank. subpart 7.4', 4297:'equipment acquisition 7.402 subpart 7.4 equipment acquisition 7.400scope of subpart. this subpart— a implements section 555of the faa federal aviation', 4298:'administrationreauthorization act of 2018 pub. l. 115254; b provides guidance when acquiring equipment and more than one method of acquisition', 4299:'is available for use; and c applies to both the initial acquisition of equipment and the renewal or extension of', 4300:'existing equipment leases or rental agreements. 7.401acquisition considerations. a 1 agencies shall acquire equipment using the method of acquisition most', 4301:'advantageous to the government based on a casebycase analysis of comparative costs and other factors in accordance with this subpart', 4302:'and agency procedures. 2 the methods of acquisition to be compared in the analysis shall include, at a minimum— i', 4303:'purchase; ii shortterm rental or lease; iii longterm rental or lease; iv interagency acquisition see 2.101; and v agency acquisition', 4304:'agreements, if applicable, with a state or local government. b 1 the factors to be compared in the analysis shall', 4305:'include, at a minimum: i estimated length of the period the equipment is to be used and the extent of', 4306:'use within that period; ii financial and operating advantages of alternative types and makes of equipment; iii cumulative rent, lease,', 4307:'or other periodic payments, however described, for the estimated period of use; iv net purchase price; v transportation, installation, andstorage', 4308:'costs; vi maintenance, repair, and other servicecosts; and vii potential obsolescence of the equipment because of imminent technological improvements. 2', 4309:'the following additional factors should be considered, as appropriate, depending onthe type, cost, complexity, and estimated period of use of', 4310:'the equipment: iavailability of purchase options. ii cancellation, extension, and early return conditions and fees. iii ability to swap out', 4311:'or exchange equipment. iv available warranties. v insurance, environmental, or licensing requirements. vi potential for use of the equipment by', 4312:'other agencies after its use by the acquiring agency is ended. vii tradein or salvage value. viii imputed interest. ix', 4313:'availability ofa servicing capability, especially for highly complex equipment; e.g., can the equipment be serviced by the government or other', 4314:'sources if it is purchased? c the analysis in paragraph a is not required— 1 when the president has issued', 4315:'an emergency declaration or a major disaster declaration pursuant to therobert t. stafford disaster relief and emergencyassistance act 42 u.s.c.', 4316:'5121 et seq. ; 2 in other emergency situations if the agency head makes a determination that obtaining such equipment', 4317:'is necessary in order to protect human life or property; or 3 when otherwise authorized bylaw. 7.402acquisition methods. a purchase', 4318:'method. 1 generally, the purchase methodis appropriate if the equipment will be used beyond the point in time when cumulative', 4319:'rental or leasing costs exceed the purchase costs. 2 agencies should not rule out the purchase method of equipment acquisition', 4320:'in favor of renting or leasing merely because of the possibility that future technological advances might make the selected equipment', 4321:'less desirable. b rent or lease method. 1 the rent or lease method is appropriate if it is to the', 4322:'governments advantage under the circumstances. the rent or lease method may also serve as a shortterm measure when the circumstances—', 4323:'i require immediate use of equipment to meet program or system goals; but federal acquisition regulation ii do not currently', 4324:'support acquisition by purchase. 2 if a rent or lease method is justified, a rental or lease agreement with option', 4325:'to purchase is preferable. 3 generally,a long termrental or lease agreementshouldbe avoided, butmay be appropriate if an option to purchase', 4326:'or other favorable terms are included. 4 if a rental or lease agreement with option to purchase is used, the', 4327:'contract shall state the purchase price or provide a formula which shows how the purchase price will be established at', 4328:'the time of purchase. 7.403general services administration assistance and omb guidance. a when requested by an agency,the general services administration', 4329:'gsa will assist in rent, lease, or purchase decisions by providing information such as 1 pending price adjustments to federal', 4330:'supply schedule contracts; 2 recent or imminent technological developments; 3 new techniques; and 4 industry or market trends. b for', 4331:'additional gsa assistance and guidance, agencies may— 1 request information from the gsa fas national customer service center byphone at', 4332:'18004883111 or by email at ncsccustomer.service@gsa.gov; and 2 see gsa website, schedule 51 v hardware superstoreequipment rental, https://www.gsa.gov/buyingselling/ productsservices/industrialproductsservices/rentalofindustrialequipment. c', 4333:'for additional omb guidance, see— 1 section 13, special guidance for leasepurchase analysis, and paragraph 8.c.2, leasepurchase analysis, of omb', 4334:'circular a94, guidelines and discount rates for benefitcost analysis of federal programs, https:// www.whitehouse.gov/wpcontent/uploads/legacydrupalfiles/omb/circulars/a94/a094.pdf; and 2 appendix b,budgetary treatment of', 4335:'leasepurchases and leases ofcapitalassets, of ombcircular a11, preparation, submission, and execution of the budget, https://www.whitehouse.gov/wpcontent/uploads/2018/06/ appb.pdf. 7.404contract clause. the contractingofficer', 4336:'shall inserta clause substantiallythe same as theclause in 52.2075, option to purchase equipment, in solicitations and contracts involving a rental', 4337:'or lease agreement with option to purchase. subpart 7.5 inherently governmental functions 7.503 subpart 7.5 inherently governmental functions 7.500scope of', 4338:'subpart. the purpose of this subpart is to prescribe policies and procedures to ensure that inherently governmental functions are not', 4339:'performed by contractors. 7.501[reserved] 7.502 applicability. the requirements of this subpart apply to all contracts for services. this subpart does', 4340:'not apply to services obtained through either personnel appointments, advisory committees, or personal services contracts issued under statutory authority. 7.503', 4341:'policy. a contracts shall not be used for the performance of inherently governmental functions. b agency decisions which determine whether', 4342:'a function is or is not an inherently governmental function may be reviewed and modifiedby appropriateofficeof management and budgetofficials. c', 4343:'the following is a list of examples of functions considered to be inherently governmental functions or which shall be treated', 4344:'as such. this list is not all inclusive: 1 the direct conduct of criminal investigations. 2 the control of prosecutions', 4345:'and performance of adjudicatory functions other than those relating to arbitration or other methods of alternative dispute resolution. 3 the', 4346:'command of military forces, especially the leadership of military personnel who are members of the combat, combat support, or combat', 4347:'service support role. 4 the conduct of foreign relations and the determination of foreign policy. 5 the determination of agency', 4348:'policy, such as determining the content and application of regulations, among other things. 6 the determination of federal program priorities', 4349:'for budget requests. 7 the direction and control of federal employees. 8 the direction and control of intelligence and counterintelligence', 4350:'operations. 9 the selection or nonselection of individuals for federal government employment, including the interviewing of individuals for employment. 10', 4351:'the approval of position descriptions and performance standards for federal employees. 11 the determination of what government property is to', 4352:'be disposed of and on what termsalthoughan agencymay give contractors authority to dispose of property at prices within specified ranges', 4353:'and subject to other reasonable conditions deemed appropriate by the agency. 12 in federal procurement activities with respect to prime', 4354:'contracts i determining what supplies or services are to be acquired by the government although an agency may give contractors', 4355:'authority to acquire supplies at prices within specified ranges and subject to other reasonable conditions deemed appropriate by the agency;', 4356:'ii participating as a voting member on any source selection boards; iii approving any contractual documents, to include documents defining', 4357:'requirements, incentive plans, and evaluation criteria; iv awardingcontracts; v administering contracts including ordering changes in contract performance or contract quantities,', 4358:'taking action based on evaluations of contractor performance, and accepting or rejecting contractor products or services; vi terminating contracts; vii', 4359:'determining whether contract costs are reasonable, allocable, and allowable; and viii participating as a voting member on performance evaluation boards.', 4360:'13 the approval of agency responses to freedom of information act requests other than routine responses that, because ofstatute, regulation,or', 4361:'agency policy, do not require the exercise of judgment in determining whether documents are to be released or withheld, and', 4362:'the approval of agency responses to the administrative appeals of denials of freedom of information act requests. federal acquisition regulation', 4363:'14 the conduct of administrative hearings to determine the eligibility of any person for a security clearance, or involving actions', 4364:'that affect matters of personal reputation oreligibility to participate in government programs. 15 the approval of federal licensing actions and', 4365:'inspections. 16 the determination of budget policy, guidance, andstrategy. 17 the collection, control, and disbursement of fees, royalties, duties, fines,', 4366:'taxes, and other public funds, unless authorized by statute, such as 31 u.s.c. 3718 relating to private attorney collection services,', 4367:'but not including icollection of fees, fines, penalties, costs, or other charges fromvisitorsto or patrons ofmess halls, post or base', 4368:'exchange concessions, national parks, and similar entities or activities, or from other persons, where the amount to be collected is', 4369:'easily calculated or predetermined and the funds collected can be easily controlled using standard case management techniques; and ii routine', 4370:'voucher and invoice examination. 18 the control of the treasury accounts. 19 the administration of public trusts. 20 the drafting', 4371:'of congressional testimony,responses to congressional correspondence, oragency responses to audit reports from the inspector general, the government accountability office, or', 4372:'other federalaudit entity. d the following is a list of examples of functions generally not considered to be inherently governmental', 4373:'functions. however, certain services and actions that are not considered to be inherentlygovernmental functions may approach being in that category', 4374:'because of the nature of the function, the manner in which the contractor performs the contract, or the manner in', 4375:'which the government administers contractor performance. this list is not all inclusive: 1 services thatinvolve or relate to budget preparation,', 4376:'including workload modeling,fact finding, efficiency studies, and shouldcost analyses, etc. 2 services thatinvolve or relate to reorganizationandplanning activities. 3 services', 4377:'that involve or relate to analyses, feasibility studies, and strategy options to be used by agency personnel in developing policy.', 4378:'4 services that involve or relate to the development of regulations. 5 services thatinvolve or relate to the evaluation of', 4379:'another contractor’s performance. 6 services in support of acquisition planning. 7 contractors providing assistance in contract management such aswhere the', 4380:'contractormight influence official evaluations of other contractors. 8 contractors providing technical evaluation of contract proposals. 9 contractors providing assistance in', 4381:'the development of statements of work. 10 contractors providing support in preparing responses to freedom of information act requests. 11', 4382:'contractors working in any situationthat permits or might permit them to gain access to confidential business information and/or any other', 4383:'sensitive information other than situations covered by the national industrial security program described in 4.402b. 12 contractors providing information regarding', 4384:'agency policies or regulations, such as attending conferences on behalf of anagency, conductingcommunityrelations campaigns, or conducting agency training courses. 13', 4385:'contractors participating in any situation where it might be assumed that they are agency employees or representatives. 14 contractors participating', 4386:'as technical advisors to a source selection board or participating as voting or nonvoting members of a source evaluation board.', 4387:'15 contractors serving as arbitrators or providing alternative methods of dispute resolution. 16 contractors constructing buildings or structures intended to', 4388:'be secure from electronic eavesdropping or other penetration by foreign governments. 17 contractors providing inspection services. 18 contractors providing legal', 4389:'advice and interpretations of regulations and statutes to government officials. 19 contractors providing special nonlaw enforcement, security activities that do', 4390:'not directly involve criminal investigations, such as prisoner detention or transport and nonmilitary national security details. e agency implementation shall', 4391:'include procedures requiring the agencyheador designatedrequirements official to provide the contracting officer, concurrent with transmittal of the statement of work', 4392:'or anymodification thereof, a written determination that none of the functions to be performed are inherently governmental. this assessment should', 4393:'place emphasis on the degree to which conditions and facts restrictthe discretionaryauthority, decisionmaking responsibility, subpart 7.5 inherently governmental functions 7.503', 4394:'or accountabilityof government officials using contractorservices or work products. disagreements regarding the determination will be resolved in accordance with agency', 4395:'procedures before issuance of a solicitation. this page intentionally left blank. part 8 required sources of supplies and services sec.', 4396:'8.000 scope of part. 8.001 general. 8.002 priorities for use of mandatory government sources. 8.003 use of other mandatory sources.', 4397:'8.004 use of other sources. 8.005 contract clause. subpart 8.1 excess personalproperty 8.101 [reserved] 8.102 policy. 8.103 information on available', 4398:'excess personal property. 8.104 obtaining nonreportable property. subpart 8.2 [reserved] subpart 8.3 [reserved] subpart 8.4 federal supply schedules 8.401 definitions.', 4399:'8.402 general. 8.403 applicability. 8.404 use of federal supply schedules. 8.405 ordering procedures for federal supply schedules. 8.4051 ordering procedures', 4400:'for supplies, and services not requiring a statement of work. 8.4052 ordering procedures for services requiring a statement of work.', 4401:'8.4053 blanketpurchaseagreementsbpas. 8.4054 price reductions. 8.4055 small business. 8.4056 limiting sources. 8.4057 payment. 8.406 ordering activity responsibilities. 8.4061 order placement.', 4402:'8.4062 inspection and acceptance. 8.4063 remedies for nonconformance. 8.4064 terminationforcause. 8.4065 terminationforthegovernment’s convenience. 8.4066 disputes. 8.4067 contractor performance evaluation. subpart', 4403:'8.5 [reserved] 8.601 8.602 8.603 8.604 8.605 8.606 8.607 8.608 8.700 8.701 8.702 8.703 8.704 8.705 8.7051 8.7052 8.7053 8.7054', 4404:'8.706 8.707 8.708 8.709 8.710 8.711 8.712 8.713 8.714 8.715 8.716 8.800 8.801 8.802 subpart 8.6 acquisitionfrom federal prison industries,', 4405:'inc. general. policy. purchase priorities. waivers. exceptions. evaluating fpi performance. performance as a subcontractor. protection of classified and sensitive information.', 4406:'subpart 8.7 acquisitionfrom nonprofit agencies employing people who are blind or severelydisabled scope of subpart. definitions. general. procurement list. purchase', 4407:'priorities. procedures. general. directorder process. allocation process. compliance with orders. purchase exceptions. prices. shipping. payments. quality of merchandise. quality complaints.', 4408:'specification changes. optional acquisition of supplies and services. communications with the central nonprofit agencies and the committee. replacement commodities. changeofname', 4409:'and successor in interest procedures. subpart 8.8 acquisition of printing and related supplies scope of subpart. definitions. policy. subpart 8.9', 4410:'[reserved] subpart 8.10 [reserved] subpart 8.11 leasing of motor vehicles 8. scope of subpart. 8. definitions. 8. presolicitation requirements. 8.', 4411:'contract requirements. 8. contract clauses. 8.000scope of part. this part deals with prioritizing sources of supplies and services for use', 4412:'by the government. 8.001general. regardless of the source of supplies or services to be acquired, information technology acquisitions shall comply', 4413:'with capital planning and investment control requirements in 40 u.s.c.11312 and omb circulara130. 8.002 priorities for useof mandatory governmentsources. a', 4414:'except as required by 8.003, or as otherwise provided by law,agencies shall satisfy requirements for supplies and services from or', 4415:'through the mandatory government sources and publications listed below in descending order of priority: 1 supplies. iinventories of the requiring', 4416:'agency. ii excess from other agencies see subpart 8.1. iii federal prison industries, inc. see subpart 8.6. iv supplies which', 4417:'are on the procurement list maintained by the committee for purchase from people who are blind or severely disabled see', 4418:'subpart 8.7. v wholesale supply sources, such as stock programs of the general services administration gsa see 41 cfr 10126.3,', 4419:'the defense logistics agency see 41 cfr 10126.6, the departmentof veterans affairssee 41 cfr 10126.704, and military inventory control points.', 4420:'2 services. services that are on the procurement list maintained by the committee for purchase from people who are blind', 4421:'or severely disabled see subpart 8.7. b sources other than those listed in paragraph a of this section may be', 4422:'used as prescribed in 41 cfr 10126.301 and in anunusual andcompelling urgency asprescribed in 6.3022 and in 41 cfr 10125.1015.', 4423:'c the statutory obligation for government agencies to satisfy their requirements for supplies or services available from the committee for', 4424:'purchase from people who are blind or severely disabled also applies when contractors purchase the supplies or services for government', 4425:'use. 8.003 use of other mandatory sources. agencies shall satisfy requirements for the following supplies or services from or through', 4426:'specified sources, as applicable: a public utility services see part 41. b printing and related supplies see subpart 8.8. c', 4427:'leased motor vehicles see subpart 8.11. d strategic and critical materials e.g., metals and ores from inventories exceeding defense national', 4428:'stockpile requirements detailed information is available from the dla strategic materials, 8725 john j. kingman rd., suite 3229, fort belvoir,', 4429:'va 220606223. 8.004 use of other sources. if an agency is unable to satisfy requirements for supplies and services from', 4430:'the mandatory sources listed in 8.002 and 8.003, agencies are encouraged to consider satisfying requirements from or through the nonmandatory', 4431:'sources listed in paragraph a of this section not listed in any order of priority before considering the nonmandatory source', 4432:'listed in paragraph b of this section. when satisfying requirements from nonmandatory sources, see 7.105b and part 19 regarding consideration', 4433:'of small business, veteranowned small business, servicedisabled veteranowned small business, hubzone small business, small disadvantaged business including 8a participants, and', 4434:'womenowned small business concerns. a 1 supplies. federal supply schedules, governmentwide acquisition contracts, multiagency contracts, and any other procurement instruments', 4435:'intendedforuse bymultiple agencies, including blanket purchase agreementsbpas under federal supply schedule contracts e.g., federal strategic sourcing initiative fssi agreements accessible', 4436:'at http://www.gsa.gov/fssi see also 5.601. 2 services. agencies are encouraged to consider federal prison industries, inc., as well as the', 4437:'sources listed in paragraph a1 of this section see subpart 8.6. b commercial sources including educational and nonprofit institutions in', 4438:'the open market. federal acquisition regulation 8.005contract clause. insert the clause at 52.2089, contractor use of mandatory sources of supply', 4439:'and services, in solicitations and contracts that require a contractor to provide supplies or services for government use that are', 4440:'on the procurement list maintained by thecommittee for purchasefrom people who are blindor severely disabled. the contracting officer shall identify', 4441:'inthe contract schedule the supplies or services that shall be purchased from a mandatory source and the specific source. subpart', 4442:'8.1 excess personal property 8.101[reserved] 8.102 policy. when practicable, agencies shall use excess personal property as the first source of', 4443:'supply for agency and cost reimbursement contractorrequirements. agencypersonnel shall make positive efforts to satisfy agency requirements by obtaining and using', 4444:'excess personal property including that suitable for adaptation or substitution before initiating a contract action. 8.103 information on available excess', 4445:'personal property. information regarding the availability of excess personal property can be obtained through— a reviewing and requesting available excess', 4446:'personal property in gsaxcess® see https://gsaxcess.gov; and b personal contact withgsa or the activity holdingthe property. 8.104 obtaining nonreportable property.', 4447:'gsa will assist agencies in meeting their requirements for supplies of the types excepted from reporting as excess by the', 4448:'federal management regulations 41 cfr 10236.220. federal agencies requiring such supplies should contact the appropriate gsapersonal property management office. visit', 4449:'www.gsa.gov/ppmo for contact information. subpart 8.2 [reserved] subpart 8.2 [reserved] this page intentionally left blank. subpart 8.3 [reserved] subpart 8.3', 4450:'[reserved] this page intentionally left blank. subpart 8.4 federal supply schedules 8.402 subpart 8.4 federal supply schedules 8.401definitions. as used', 4451:'in this subpart ordering activity means an activity that isauthorized to place orders,or establish blanket purchase agreements bpa, against the', 4452:'general services administration’s gsa multiple award schedule contracts. a list of eligible ordering activities is available at http://www.gsa.gov/schedules click for', 4453:'customers ordering from schedules and then eligibility to use gsa sources. multiple award schedule mas means contractsawarded bygsa or the', 4454:'departmentof veterans affairs va for similar or comparable supplies, or services, establishedwith more thanonesupplier, at varying prices. the primary statutory', 4455:'authorities for the mas program are 41 u.s.c. 1523, competitive procedures, and 40 u.s.c. 501, services for executive agencies. requiring', 4456:'agency means the agency needing the supplies or services. schedules elibrary means the onlinesource for gsa and va federal supply', 4457:'schedule contract award information. schedules elibrary may be accessed at http://www.gsa.gov/elibrary. special item number sin means a group of generically', 4458:'similar but not identical supplies or services that are intended to serve the same general purpose or function. 8.402general. a', 4459:'thefederal supply schedule program is also known as thegsa schedules program or the multiple award schedule program. the federal supply', 4460:'schedule program is directed and managed by gsa and provides federal agencies see 8.004 with a simplified process for obtaining', 4461:'commercial supplies and commercial services at prices associated with volume buying. indefinite delivery contracts are awarded to provide supplies and', 4462:'services at stated prices for given periods of time. gsa may delegate certain responsibilities to other agencies e.g., gsa hasdelegated', 4463:'authority to the va to procure medical supplies under the va federal supply schedules program. orders issued under the va', 4464:'federal supply schedule program arecovered by this subpart. additionally, thedepartment ofdefense dodmanagessimilarsystems of scheduletype contracting for militaryitems; however, dod systems', 4465:'arenot covered by this subpart. b gsa schedule contracts require all schedule contractors to publish an authorized federal supply schedule', 4466:'pricelist pricelist. the pricelist contains all supplies and services offeredby a schedulecontractor. in addition, each pricelist contains the pricing and', 4467:'the terms and conditions pertaining to each special item number that is on schedule. the schedule contractor is required to', 4468:'provide one copy of its pricelist to any ordering activity upon request. also, a copy of the pricelist may be', 4469:'obtained from the federal supply service by submitting a written email request to schedules.infocenter@gsa.gov orby telephone at 18004883111. this subpart,', 4470:'together with the pricelists, contain necessary information for placing delivery or task orders with schedule contractors. in addition, the gsa', 4471:'schedule contracting office issuesfederal supply schedules publications thatcontain a general overviewof the federal supply schedule fss program and address pertinent', 4472:'topics. ordering activities may request copies of schedules publications by contacting the centralized mailing list service through the internet at', 4473:'http://www.gsa.gov/cmls, submitting written email requests to cmls@gsa.gov; or by completing gsa form 457, fss publications mailing list application, and mailing', 4474:'it to thegsa centralized mailing list service7 sm,p.o. box 6477, fort worth, tx 76115. copies of gsa form 457may also', 4475:'be obtained from the abovereferenced points of contact. c 1gsaoffersanonlineshoppingservicecalled gsaadvantage! throughwhichorderingactivitiesmayplace orders against schedules. ordering activities may also use', 4476:'gsa advantage! toplace orders through gsa’s global supply system, a gsa wholesale supply source, formerly known as gsa stock or', 4477:'the customer supply center. far subpart 8.4 is not applicable to orders placed through the gsa global supply system. ordering', 4478:'activities may access gsa advantage! through the gsa federal supply service home page http://www.gsa.gov/fas or the gsa federal supply schedule', 4479:'home page at http://www.gsa.gov/schedules. 2 gsa advantage! enables ordering activities to search specific information i.e., national stock number, part number,', 4480:'common name, review delivery options, place orders directly with schedule contractors except see 8.4056 and pay for orders using the', 4481:'governmentwide commercial purchase card. d 1 ebuy, gsas electronic request for quotation rfq system, is a part of a suite', 4482:'of online tools which complement gsaadvantage!. gsasebuy allows ordering activities to post requirements, obtain quotes, and issue orders electronically. posting', 4483:'an rfq on ebuy— federal acquisition regulation iisonemedium for providing fair noticeto all schedule contractors offering such suppliesand servicesas required', 4484:'by, 8.4052, and 8.4053; and ii is required when an order contains brandname specifications see 8.4056. 2 ordering activities may', 4485:'access ebuy at https://www.ebuy.gsa.gov. for more information or assistance on either gsaadvantage! or ebuy, contact gsa by emailat gsa.advantage@gsa.gov. e', 4486:'for more information or assistance regarding the federal supply schedule program, review the following website: http://www.gsa.gov/schedules. additionally, for online training', 4487:'courses regarding the schedules program,review the following website: http://www.gsa.gov/training. f for administrative convenience, an ordering activity contracting officermay add items', 4488:'not on the federal supply schedule also referred toas openmarket items to afederal supply schedule blanket purchaseagreement bpa or an', 4489:'individual task or delivery order only if 1 all applicable acquisition regulations pertaining to the purchase of the items not', 4490:'on the federal supply schedule have been followed e.g., publicizing part 5, competition requirements part 6, acquisition of commercial products', 4491:'or commercial services part 12, contracting methods parts 13, 14, and 15, and small business programs part 19; 2 the', 4492:'ordering activity contracting officer has determined the price for the items not on the federal supply schedule is fair and', 4493:'reasonable; 3 the items are clearly labeled on the order as items not on the federal supply schedule and they', 4494:'conform to the rules for numbering line items at subpart 4.10; and 4 all clauses applicable to items not on', 4495:'the federal supply schedule areincluded inthe order. g when using the governmentwide commercial purchase card as a method of payment,', 4496:'orders at or below the micro purchase thresholdare exempt fromverification inthe system for award management asto whether the contractor has', 4497:'a delinquent debtsubject to collectionunder thetreasury offset programtop. 8.403 applicability. a procedures in this subpart apply to— 1 individual orders', 4498:'for supplies or services placed against federal supply schedules contracts; and 2 bpas established against federal supply schedule contracts. b', 4499:'gsa may establish special ordering procedures for a particular schedule. in this case, that schedule will specify those special ordering', 4500:'procedures. unless otherwise noted, special ordering procedures established for a federal supply schedule take precedence over the procedures in 8.405.', 4501:'note: gsaestablished ordering procedures for orderlevel materials can be found at gsar subpart 53872 . c in accordance with section', 4502:'1427b of public law 108136 40 u.s.c. 1103 note, for requirements that substantially or to a dominant extent specify performance', 4503:'of architectengineer services as defined in 2.101, agencies— 1 shall use the procedures at subpart 36.6; and 2 shall not', 4504:'place orders for such requirements under a federal supply schedule. 8.404use of federal supply schedules. a general. parts 13 except', 4505:'13.3032c3, 14, 15, and 19 except for the requirements at 19.102b3 and 19.2021e 1iiido not apply to bpas or orders', 4506:'placed against federal supply schedules contracts but see 8.4055. bpas and orders placed against a mas, using the procedures in', 4507:'this subpart, are considered to be issued using full and open competition see 6.102d3. therefore, when establishing a bpa as', 4508:'authorized by 13.3032c3, or placing orders under federal supply schedule contracts using the procedures of 8.405, ordering activities shall not', 4509:'seek competition outside of the federal supply schedules or synopsize the requirement; but see paragraph g of this section. b', 4510:'1thecontractingofficer,whenplacinganorderorestablishingabpa,isresponsibleforapplyingtheregulatoryand statutory requirements applicable to theagency for which the orderis placed or thebpa is established. the requiring agency shall provide', 4511:'the information on the applicable regulatory and statutory requirements to the contracting officer responsible for placing the order. 2 for', 4512:'orders over $600,000, see subpart 17.5 for additional requirements for interagency acquisitions. c acquisition planning. orders placed under a federal', 4513:'supply schedule contract 1 are not exempt from the development of acquisition plans see subpart 7.1, and an information technology', 4514:'acquisition strategy see part 39; 2 shall complywith all far requirements for a consolidated or bundled contract when the order', 4515:'meets the definition at 2.101 of consolidation or bundling; and subpart 8.4 federal supply schedules 8.404 3 must, whether placed', 4516:'by the requiring agency, or on behalf of the requiring agency, be consistent with therequiring agency’s statutory andregulatoryrequirements applicable to', 4517:'the acquisition of thesupplyor service. d pricing. supplies offered on thescheduleare listed at fixed prices. services offered on thescheduleare priced', 4518:'either at hourly rates, or at a fixed price for performance of a specific task e.g., installation, maintenance, and repair.', 4519:'gsa has already determined theprices of supplies and fixedprice services, and rates for services offered athourly rates,under schedule contracts to', 4520:'be fair and reasonable. therefore, ordering activities are not required to make a separate determination of fair and reasonable pricing,', 4521:'except for a price evaluation as required by 8.4052d. by placing an order against a schedule contract using the procedures', 4522:'in 8.405, the ordering activity has concluded that the order represents the best value as defined in far 2.101 and', 4523:'results in the lowest overall cost alternative considering price, special features, administrative costs, etc. to meet the government’s needs. although', 4524:'gsahas already negotiated fair and reasonable pricing, ordering activities may seek additional discounts before placing an order see 8.4054. e', 4525:'the procedures under subpart 33.1 are applicable to the issuance of an order orthe establishmentof abpa against a schedule contract.', 4526:'f if the ordering activity issues an rfq, the ordering activity shall provide the rfq to any schedule contractor that', 4527:'requests a copy of it. g 1 ordering activities shall publicize contract actions funded in whole or in part by', 4528:'the american recovery and reinvestmentactof 2009 pub. l. 1115: inoticesof proposed masordersincludingordersissuedunder bpasthat arefor informational purposes only exceeding $25,000 shall', 4529:'follow the procedures in 5.704 for posting orders. iiawardnotices for masordersincludingordersissuedunder bpasshallfollow the procedures in 5.705. 2 when an order', 4530:'is awarded or a blanket purchase agreement is established with an estimated value greater than the simplified acquisition threshold and', 4531:'supported by a limitedsource justification at 8.4056 a, the ordering activity contracting officermust i publicize the action see 5.301; and', 4532:'ii post the justification in accordance with 8.4056 a2. h typeoforder preference for services. 1 the ordering activity shall specify', 4533:'the order type i.e., firmfixed price, timeand materials, or laborhour for theservicesoffered on the schedule priced at hourly rates. 2', 4534:'agencies shall use fixedprice orders for the acquisition of commercial services to the maximum extent practicable. 3 i a timeandmaterials', 4535:'or laborhour order may be used for the acquisition of commercial services only when it is not possible at the', 4536:'time of placing the order to estimate accurately the extent or duration of the work or to anticipate costs with', 4537:'any reasonable degree of confidence. iiprior tothe issuance of a timeandmaterials orlaborhour order, thecontracting officer shall aexecute a determination and', 4538:'findings d&f for the order, in accordance with paragraphh3iiiof this section that a fixedprice order is not suitable; b include', 4539:'a ceiling price in the order that the contractor exceeds at its own risk; and c when the total performance', 4540:'period, including options, is more than three years, the d&f prepared in accordance with this paragraph shall be signedby the', 4541:'contracting officerand approved bythe head of the contracting activity prior to the execution of the base period. iii the d&f', 4542:'required by paragraph h3iia of this sectionshallcontain sufficient facts and rationale tojustify that a fixedprice order is not suitable. at', 4543:'a minimum, the d&f shall a include a description of the market research conducted see 8.404c and 10.002e; b establish', 4544:'that it is not possible at the time of placing the order to accurately estimate the extent or duration of', 4545:'the work or anticipate costs with any reasonable degree of confidence; c establish that the current requirement has been structured', 4546:'to maximize the use of fixedprice orders e.g., by limitingthe value or length ofthe timeandmaterials/laborhour order; or,establishing fixed pricesforportions ofthe', 4547:'requirement on future acquisitions for the same or similar requirements; and d describe actions to maximize the use of fixedprice', 4548:'orders on future acquisitions for the same requirements. iv priorto anincrease inthe ceiling priceof atimeandmaterials or laborhourorder,the ordering activity shall', 4549:'a conduct an analysis of pricing and other relevant factors to determine if the action is in the best interest', 4550:'of the government and document the order file; b follow the procedures at 8.4056 for a change that modifies the', 4551:'general scope of the order; and c comply with the requirements at 8.402f when modifying an order to add open', 4552:'market items. federal acquisition regulation i ensure that service contractor reporting requirements are met in accordance with subpart 4.17, service', 4553:'contracts inventory. jline items. when placing orders orestablishing bpas,orderingactivitiesshallreference the special item number and the corresponding line or subline item', 4554:'awarded established per 4.1005 in the schedule. if an ordering activity contracting officer adds an item not on the federal', 4555:'supply schedule in accordance with 8.402f, establish a new line item in accordance with subpart 4.10. 8.405 ordering procedures for', 4556:'federal supply schedules. orderingactivities shall usethe ordering procedures of thissection when placing anorder or establishing a bpa for supplies or', 4557:'services. the procedures in this sectionapply to all schedules. for establishing bpas and for orders underbpas see 8.4053. 8.4051 orderingprocedures', 4558:'for supplies, and services not requiringa statement of work. a ordering activities shall use the procedures of this subsection when', 4559:'ordering supplies and services that are listed in the schedules contracts at a fixed price for the performance of a', 4560:'specific task, where a statement of work is not required e.g., installation,maintenance, and repair. for establishing bpas and for orders', 4561:'underbpas see 8.4053. b orders at or below the micropurchase threshold. ordering activities may place orders at, or below,the micropurchase', 4562:'threshold with any federal supply schedule contractor that can meet the agency’s needs. although not required to solicit from a', 4563:'specific number of schedule contractors, ordering activities should attempt to distribute orders among contractors. c orders exceeding the micropurchase threshold', 4564:'but not exceeding the simplified acquisition threshold. ordering activities shall place orders with the schedule contractor that can provide the', 4565:'supply or service that represents the best value. before placing an order, an ordering activityshall: 1 considerreasonably available information about', 4566:'the supply or service offered under mas contracts by surveyingat least three schedule contractors through the gsa advantage! online shopping', 4567:'service, by reviewing the catalogs or pricelists of at least three schedule contractors, or by requesting quotations from at least', 4568:'three schedule contractors see 8.4055 ; or 2 document the circumstances for restricting consideration to fewer than three schedule contractors', 4569:'based on one of the reasons at 8.4056 a; d for proposed orders exceeding the simplified acquisition threshold. 1 each', 4570:'order shall be placed on a competitive basis in accordance with d2 and 3 of this section, unless this requirement', 4571:'is waived on the basis of a justification that is prepared and approved in accordance with 8.4056 . 2 the', 4572:'ordering activity contracting officer shall provide an rfqthat includes a description of the supplies to be delivered or the services', 4573:'to be performed and the basis upon which the selection will be made see 8.4051f. 3 the ordering activity contracting', 4574:'officer shall ipost the rfq on ebuy toafford all schedule contractors offeringthe required supplies or services under the appropriate multiple', 4575:'award schedules an opportunity to submit a quote; or ii provide the rfq to as many schedule contractors as practicable,', 4576:'consistent with market research appropriate to the circumstances, to reasonably ensure that quotes will be received from at least three', 4577:'contractors that can fulfill the requirements. when fewer than three quotes are received from schedule contractors that can fulfill the', 4578:'requirement, the contracting officershallprepare a written determination explainingthat no additional contractors capableof fulfillingthe requirement could be identified despite reasonable efforts', 4579:'to do so. the determination must clearly explain efforts made to obtain quotes from at least three schedule contractors. 4', 4580:'the ordering activity contracting officer shall ensure that all quotes received are fairly considered and award is made in accordance', 4581:'with the basis for selection in the rfq. e when an order contains brandname specifications, thecontracting officer shall postthe rfq', 4582:'on ebuy alongwith the justification or documentation, as required by 8.4056. an rfq is required when a purchase description specifies', 4583:'a brand name. f in addition to price see 8.404 d and 8.4054, when determining best value,the ordering activity mayconsider,', 4584:'among other factors, the following: 1 past performance. 2 special features of the supply or servicerequired for effective program performance.', 4585:'3 tradeinconsiderations. 4 probable life of the item selected as compared with that of a comparable item. 5 warrantyconsiderations. subpart', 4586:'8.4 federal supply schedules 8.4052 6 maintenance availability. 7 environmental and energy efficiency considerations. 8 delivery terms. g minimum documentation.', 4587:'the ordering activity shall document 1 the schedule contracts considered, noting the contractor from which the supply or service was', 4588:'purchased; 2 a description of the supply or service purchased; 3 the amount paid; 4 when an order exceeds the', 4589:'simplified acquisition threshold, evidence of compliance with the ordering procedures at 8.4051d; and 5 the basis for the award decision.', 4590:'8.4052 orderingprocedures for services requiring a statementof work. a general. ordering activities shall use the procedures in this subsection when', 4591:'ordering services priced at hourly rates as established by the schedule contracts. the applicable services will be identified in the', 4592:'federal supply schedule publications and the contractor’spricelists. for establishing bpas andforordersunder bpas see 8.4053. b statements of work sows. all', 4593:'statements of work shall include adescription ofworkto beperformed; location of work; period of performance; deliverable schedule; applicable performance standards; and', 4594:'any special requirements e.g., security clearances, travel, special knowledge. tothe maximum extentpracticable, agency requirements shall be performancebased statements see subpart', 4595:'37.6. c request for quotation procedures. the ordering activity must provide the request for quotation rfq, which includes the statement', 4596:'of work and evaluation criteria e.g., experience andpast performance,to schedule contractors that offer services thatwill meet the agency’s needs. therfq', 4597:'maybe posted to gsa’s electronicrfq system, ebuy see 8.402d. 1 orders at, or below, the micropurchase threshold. ordering activities may', 4598:'place orders at, or below, themicropurchase thresholdwith anyfederal supply schedule contractor that can meetthe agency’s needs. the ordering activity should', 4599:'attempt to distribute orders among contractors. 2 for orders exceeding the micropurchase threshold, but not exceeding the simplified acquisition threshold.', 4600:'i the ordering activity shall develop a statement of work, in accordance with 8.4052b. ii the ordering activity shall provide', 4601:'the rfq including the statement of work and evaluation criteria to at least three schedule contractors thatoffer services that willmeet', 4602:'theagency’s needs or documentthe circumstances for restricting consideration to fewer than three schedule contractors based on one of the reasons', 4603:'at 8.4056 a. iii the ordering activity shall specify the type of order i.e., firmfixedprice, laborhour for the services identified', 4604:'in the statement of work. the contractingofficer should establish firmfixedprices, as appropriate. 3 for proposed orders exceeding the simplified acquisition', 4605:'threshold. in addition to meeting the requirements of 8.4052c2i and iii, the following procedures apply: i each order shall be', 4606:'placed on a competitive basis in accordance with c3ii and iii of this section, unless this requirement is waived on', 4607:'the basis of a justification that is prepared and approved in accordance with 8.4056 . iithe ordering activity contracting officershallprovide', 4608:'an rfq that includes a statement ofwork and the evaluation criteria. iii the ordering activity contractingofficer shall apost the rfq', 4609:'on ebuy toafford all schedule contractors offering the required services under the appropriate multipleaward schedules an opportunity to submit a', 4610:'quote; or b provide the rfq to as many schedule contractors as practicable, consistent with market research appropriate to the', 4611:'circumstances, to reasonably ensure that quotes will be received from at least three contractors that can fulfill the requirements. when', 4612:'fewer than three quotes are received from schedule contractors that can fulfill the requirements, the contracting officershallprepare a written determination', 4613:'to explain that noadditional contractors capable of fulfilling the requirementscould be identifieddespite reasonable effortsto do so. the determination must clearly', 4614:'explain efforts made to obtain quotes from at least three schedule contractors. c ensure all quotes received are fairly considered', 4615:'and award is made in accordance with the evaluation criteria in the rfq. 4 the ordering activity shall provide the', 4616:'rfq including the statement of work and the evaluation criteria to any schedule contractor who requests a copy of it.', 4617:'d evaluation. the ordering activity shall evaluate all responses received using the evaluation criteria provided to the schedule contractors. the', 4618:'ordering activity isresponsible for considering thelevel of effortandthe mix of laborproposed to federal acquisition regulation perform a specific task being', 4619:'ordered, and for determining that the total price is reasonable. place the order with the schedule contractor that represents the', 4620:'best value see 8.404d and 8.4054. after award, ordering activities should provide timely notificationto unsuccessfulofferors. if an unsuccessful offeror requests', 4621:'informationon an award that was based on factors other than price alone, a brief explanation of the basis for the', 4622:'award decision shall be provided. e use of timeandmaterials and laborhour orders for services. when placing a timeandmaterials or laborhour', 4623:'order for services, see 8.404h. f minimum documentation. the ordering activity shall document 1 the schedule contracts considered, noting the', 4624:'contractor from which the service was purchased; 2 a description of the service purchased; 3 the amount paid; 4 the', 4625:'evaluation methodology used in selecting the contractor to receive the order; 5 the rationale for any tradeoffsin making the selection;', 4626:'6 the price reasonableness determination required by paragraph d of this subsection; 7 the rationale for using other than i', 4627:'a firmfixed price order; or ii a performancebased order; and 8 when an order exceeds the simplified acquisition threshold, evidence', 4628:'of compliance with the ordering procedures at 8.4052c. 8.4053 blanket purchase agreements bpas. a establishment. 1 ordering activities mayestablishbpas under', 4629:'any schedule contract to fill repetitive needsfor supplies or services. ordering activities shall establishthe bpa with theschedule contractors that can', 4630:'provide thesupplyor service that represents the best value. 2 in addition to price see 8.404d and 8.4054,when determining best value,', 4631:'the ordering activitymay consider, among other factors, the following: i past performance. iispecial featuresof the supply orservice required for effective', 4632:'program performance. iii tradein considerations. iv probable life of the item selected as compared with that of a comparable item.', 4633:'v warrantyconsiderations. vi maintenance availability. vii environmental and energy efficiency considerations. viii delivery terms. 3 itheorderingactivitycontractingofficershall,tothemaximumextentpracticable,givepreferenceto establishingmultipleaward bpas, rather thanestablishing', 4634:'a singleawardbpa. iino singleaward bpa with anestimated value exceeding$100 million including anyoptions, may be awarded unless the head of the', 4635:'agency determines in writing that athe orders expected under the bpa are so integrally related thatonly a single source can', 4636:'reasonably perform the work; b the bpa provides only for firmfixed priced orders for 1 products with unitprices established in', 4637:'the bpa; or 2 services with prices established inthe bpa for specific tasks to be performed; c only one source', 4638:'is qualified and capable of performing the work at a reasonable price to the government; or dit isnecessary inthe public', 4639:'interest to awardthe bpa to a single sourceforexceptional circumstances. iii the requirement for a determination for asingleaward bpagreater than$100 million', 4640:'is in addition toany applicable requirement for a limitedsource justification at 8.4056. however,the two documents maybe combined into one document.', 4641:'iv in determininghow many multipleaward bpas to establish orthat a singleaward bpa is appropriate, the contracting officershouldconsider the followingfactors and', 4642:'document the decision inthe acquisition plan orbpa file: a the scope and complexity of the requirements; b the benefits of', 4643:'ongoing competition and the need to periodically compare multiple technical approaches or prices; c the administrative costs of bpas; and', 4644:'subpart 8.4 federal supply schedules 8.4053 d the technical qualifications of the schedule contractors. 4 bpas shall address the frequencyof', 4645:'ordering, invoicing, discounts, requirementse.g., estimated quantities, work to be performed, delivery locations, and time. 5 when establishing multipleawardbpas, theorderingactivity shall', 4646:'specify the procedures for placing orders under thebpas in accordance with 8.4053c2. 6 establishmentof amultiagencybpa against a federalsupply schedule contract', 4647:'ispermitted if themultiagency bpa identifies the participating agencies and theirestimated requirementsat the timethe bpa is established. 7 minimum documentation. the', 4648:'ordering activity contractingofficer shall includein the bpa filedocumentation the ischedulecontracts considered, noting the contractorto which the bpa wasawarded; ii description', 4649:'of the supply or service purchased; iii price; iv required justificationfora limitedsource bpa see 8.4056, if applicable; v determination for', 4650:'a singleaward bpaexceeding $100 million, if applicable seea3ii of this section; vi documentation supporting the decision to establish multipleaward bpas', 4651:'or a singleaward bpa see a3iv; vii evidence of compliance with paragraph b of this section, for competitively awarded bpas,if', 4652:'applicable; and viii basis for the award decision. this should includethe evaluationmethodology used in selectingthe contractor, therationaleforanytradeoffs in making theselection,', 4653:'and a price reasonableness determination for services requiring a statement of work. b competitive procedures for establishing a bpa.this paragraph', 4654:'applies to the establishment ofa bpa, in addition to applicable instructions in paragraph a. 1 for supplies, and for services', 4655:'not requiring a statement of work. the procedures of this paragraph apply when establishinga bpaforsupplies and services that are listed', 4656:'in theschedulecontract at a fixed price for theperformance of a specific task, where a statement of work is not required', 4657:'e.g., installation, maintenance, and repair. i if the estimated value of the bpa does not exceed the simplified acquisition threshold.', 4658:'a the ordering activity shall: 1 considerreasonably available information about the supply or service offered under mas contracts by surveying', 4659:'at least three schedule contractors through the gsa advantage! online shopping service, by reviewing the catalogs or pricelists of at', 4660:'least three schedule contractors, or by requesting quotations from at least three schedule contractors see 8.4055; or 2 document the', 4661:'circumstances for restricting consideration to fewer than three schedule contractors based on one of the reasons at 8.4056a. b the', 4662:'ordering activityshallestablishthe bpa with the schedule contractors thatcan provide thebestvalue. ii if the estimated value of the bpa exceeds the', 4663:'simplified acquisition threshold. the ordering activity contracting officer: a shall provide an rfq that includes a description of the supplies', 4664:'to be delivered or the services to be performed and the basis upon which the selection will be made. b', 4665:'1 shall postthe rfq on ebuyto afford all schedule contractors offering the required supplies or services under the appropriate multiple', 4666:'award schedules an opportunity to submit a quote; or 2 shall provide the rfq to as many schedule contractors as', 4667:'practicable, consistent with market research appropriate to the circumstances, to reasonably ensure that quotes will be received from at least', 4668:'three contractors that can fulfill the requirements. when fewer than three quotes are received from schedule contractors that can fulfill', 4669:'the requirements, the contracting officershallprepare a written determination explainingthat no additional contractors capableof fulfillingthe requirementscould be identifieddespite reasonable effortsto do', 4670:'so. the determination must clearly explain efforts made to obtain quotes from at least three schedule contractors. c shall ensure', 4671:'all quotes received are fairly considered and award is made in accordance with the basis for selection in the rfq.', 4672:'after seeking price reductions see 8.4054, establish the bpa with the schedule contractorsthat provides the best value. dthe bpa must', 4673:'be established inaccordancewith paragraphsb1iib andc ofthis section, unless the requirement is waived on the basis of a justification that is', 4674:'prepared and approved in accordance with 8.4056. 2 for services requiring a statement of work. this applieswhen establishing a bpa', 4675:'that requires services pricedat hourly rates, as provided by the schedule contract. the applicable services will be identified in the', 4676:'federal supply schedule publications and the contractor’s pricelists. federal acquisition regulation i statements of work sows. the ordering activity shall', 4677:'develop a statementof work. all statements of work shall include a description of work to be performed; location of work;', 4678:'period of performance; deliverable schedule; applicable performance standards; and any special requirements e.g., security clearances, travel, and special knowledge. to', 4679:'the maximum extent practicable, agency requirements shall be performancebased statements see subpart 37.6. ii typeoforder preference. the ordering activity shall', 4680:'specify the order type i.e., firmfixed price, timeandmaterials, or laborhour for theservicesidentified in the statement of work. the contracting officer', 4681:'should establish firm fixed priced orders to the maximum extentpracticable. for timeandmaterials and laborhourorders, the contracting officer shall follow the', 4682:'procedures at 8.404h. iii request for quotation procedures. the ordering activity must provide a rfq, which includes the statement of', 4683:'work and evaluation criteria e.g., experience and past performance, to schedule contractors that offer services that will meet theagency’s needs.', 4684:'the rfq may be posted togsa’s electronic rfq system, ebuy see 8.402d. iv if the estimated value of the bpa', 4685:'does not exceed the simplified acquisition threshold. the ordering activity shall provide the rfq including the statement of work and', 4686:'evaluation criteria toat leastthree schedule contractorsthat offer services thatwill meet the agency’s needs. v if estimated value of the bpa', 4687:'exceeds the simplified acquisition threshold. the ordering activity contracting officer ashallpost the rfqon ebuy to afford allschedule contractors offering the', 4688:'required supplies or servicesunder the appropriate multipleaward schedule an opportunity to submit a quote; or b shall provide the rfq,', 4689:'which includes the statement of work and evaluation criteria, to as many schedule contractors as practicable, consistent with market research', 4690:'appropriate to the circumstances, to reasonably ensure that quotes will be received from at least three contractors that can fulfill', 4691:'the requirements. when fewer than three quotes are received from schedule contractorsthat canfulfill the requirements,the contracting officershalldocument the file. the', 4692:'contracting officer shall prepare a written determination explaining that no additional contractors capable offulfilling the requirements could be identified despite', 4693:'reasonable efforts to do so. the determination must clearly explain efforts made to obtain quotes from at least three schedule', 4694:'contractors. vi the ordering activity contracting officer shall ensure all quotesreceived arefairly considered and awardis made in accordance withthe basis', 4695:'for selection inthe rfq. the ordering activity is responsible for considering thelevel of effort and the mix of labor proposed', 4696:'to perform, and for determining that the proposed price is reasonable. vii thebpa mustbe establishedin accordance with paragraph b2iv orv,', 4697:'and with paragraph b2vi of this section, unless the requirement is waived on the basis of a justification that is', 4698:'prepared and approved in accordance with 8.4056. viii theorderingactivity contracting officer shall establish the bpa with theschedulecontractors that represents the', 4699:'best value see 8.404d and 8.4054. 3 afteraward, ordering activities should provide timely notification tounsuccessful offerors. if an unsuccessful offeror', 4700:'requests information on an award that was based onfactors other than price alone, a brief explanation of the basis for', 4701:'the award decision shall be provided. c ordering from bpas. the proceduresin this paragraph c arenot required for bpas established', 4702:'onor before may 16, 2011. however, ordering activities are encouraged touse the procedures for suchbpas. 1 singleaward bpa. if the', 4703:'ordering activity establishes a singleaward bpa, authorizedusersmay place theorder directly underthe established bpa when the need for the supply orservice', 4704:'arises. 2 multipleaward bpas. i orders at or below the micropurchase threshold. the ordering activity may place orders at or', 4705:'belowthe micropurchase threshold with any bpaholder that can meetthe agency needs. the ordering activityshould attempt to distribute any such orders', 4706:'among the bpa holders. ii orders exceeding the micropurchase threshold but not exceeding the simplified acquisition threshold. a the ordering', 4707:'activity must provide each multipleaward bpaholder a fair opportunity to be considered for each order exceeding the micropurchase threshold, but', 4708:'not exceeding the simplified acquisition threshold unless one of the exceptions at 8.4056a1i applies. b the ordering activityneednot contact each', 4709:'of the multipleaward bpa holders before placing an order if information is available to ensure that each bpa holder is', 4710:'provided a fair opportunity to be considered for each order. c the ordering activitycontracting officer shall document thecircumstances when restricting', 4711:'consideration to less than all multipleaward bpa holders offering therequired suppliesandservices. subpart 8.4 federal supply schedules 8.4055 iii orders exceeding', 4712:'the simplified acquisition threshold. a the ordering activity shall place an order in accordance with paragraphs c2iiia1, 2 and 3', 4713:'of this paragraph, unless the requirement is waived on the basis of a justification that is prepared and approved in', 4714:'accordance with 8.4056. the ordering activity shall 1 provide an rfq to all bpa holders offeringthe required supplies or services', 4715:'under the multipleaward bpas,to include a descriptionof the supplies tobe deliveredor the services to be performed and the basis upon', 4716:'whichthe selection will be made; 2 afford all bpa holders responding to the rfq an opportunity to submit a quote;', 4717:'and 3 fairly consider all responses received and make award in accordance with the selection procedures. b the ordering activity', 4718:'shall document evidence of compliance with these procedures and the basis for the award decision. 3 bpas for hourlyrate services.', 4719:'if the bpa is for hourlyrate services, the ordering activity shall develop a statement of work for each order coveredby', 4720:'the bpa. ordering activities should place these orders on a firmfixed price basisto themaximum extent practicable. for timeandmaterials and laborhour', 4721:'orders, thecontracting officer shall follow the procedures at 8.404h. allordersunder thebpa shall specify a price for theperformance of the tasks', 4722:'identified in the statement of work. the ordering activityis responsible for considering the level ofeffort and the mix of labor', 4723:'proposed to perform a specific task being ordered, and for determining that the total price is reasonable through appropriate analysis', 4724:'techniques, and documenting the fileaccordingly. d duration of bpas. 1 multipleawardbpas generally should not exceed five yearsin length, but may', 4725:'do so to meet program requirements. 2 a singleaward bpa shall not exceed one year. it mayhaveup to four oneyear', 4726:'options. see paragraph e of this section for requirements associated with option exercise. 3 contractors maybe awarded bpas that extend', 4727:'beyond the current term oftheir gsa schedule contract, so long as there are option periods in their gsa schedule contractthat,', 4728:'if exercised,will coverthe bpa’s period ofperformance. e review of bpas. 1 the ordering activity contracting officer shall review the bpa', 4729:'and determinein writing, at least once a year e.g., at option exercise, whether ithe schedule contract,upon which the bpa was', 4730:'established, is still in effect; iithe bpa still represents thebest valuesee 8.404d; and iii estimated quantities/amounts have been exceeded and', 4731:'additional price reductions can be obtained. 2 the determination shall be included in the bpa file documentation. 8.4054 price reductions.', 4732:'orderingactivities may request a price reduction at any time before placing anorder, establishing a bpa, or in conjunction with the', 4733:'annual bpa review. however, the ordering activity shall seek a price reductionwhen the order or bpa exceeds the simplified acquisition', 4734:'threshold. schedule contractors are not required to pass on to all schedule users a price reduction extended only to an', 4735:'individual ordering activity for a specific order or bpa. 8.4055 small business. a although the preference programs of part 19', 4736:'are not mandatory in this subpart, in accordance with section 1331 of public law 111240 15 u.s.c. 644r 1 orderingactivity', 4737:'contracting officers may, at theirdiscretion i set aside orders for any of the small business concerns identified in 19.000a3; and', 4738:'iiset asidebpas for any ofthe small business concerns identified in 19.000a3. 2 when settingaside orders and bpas i follow the', 4739:'ordering procedures for federal supply schedules at 8.4051, 8.4052, and 8.4053; and ii the specific small business program eligibility requirements', 4740:'identified in part 19 apply. b ordersplacedunder schedule contracts maybe credited toward the ordering activity’s small businessgoals. for purposes of', 4741:'reporting an order placed with a small business schedule contractor, an ordering agency may only takecredit if the awardee meets', 4742:'a size standard that corresponds to the north american industry classification system code assigned to the order in accordance with', 4743:'19.102b3. ordering activities should rely on the small business representations made by schedule contractors at the contract level but see', 4744:'section 19.3012b2 concerning rerepresentation for an order. c ordering activities may consider socioeconomic status when identifying contractors for consideration or', 4745:'competition for award ofan orderor bpa. at a minimum, ordering activities should consider, if available, at least one smallbusiness, veteranowned', 4746:'small business, service disabled veteranowned small business, hubzone small business, womenowned federal acquisition regulation small business, or small disadvantaged business', 4747:'schedule contractors. gsa advantage! and schedules elibrary at http:// www.gsa.gov/fas contain information on the small business representations of schedule contractors.', 4748:'d for orders exceeding the micropurchase threshold, ordering activities should give preference to the items of small business concerns when', 4749:'two or more items at the same delivered price will satisfy the requirement. 8.4056 limitingsources. ordersplacedorbpasestablishedunderfederalsupplyschedulesareexemptfromtherequirementsin part 6.however, an ordering', 4750:'activity must justify its action when restricting consideration in accordance with paragraph a or b of this section— a orders', 4751:'or bpas exceeding themicropurchase threshold based ona limited sources justification. 1 circumstances justifying limiting the source. i for aproposed order', 4752:'orbpa with an estimated value exceeding the micropurchase threshold not placed or established in accordance with the procedures in, 8.4052,', 4753:'or 8.4053, the only circumstances that may justify the action are– aan urgent and compelling need exists, and following the', 4754:'procedures wouldresult in unacceptable delays; b only one source is capable of providing the supplies or services required at the', 4755:'level of quality required because the supplies or services are unique or highly specialized; or c in the interest of', 4756:'economy and efficiency, the new workis alogical followon to an original federal supply schedule order provided that the original order', 4757:'was placed in accordance with the applicable federal supply schedule ordering procedures. the original order or bpa must not have', 4758:'been previouslyissuedunder solesource or limitedsources procedures. ii see 8.4056c for the content of the justification for anorder or bpa exceeding', 4759:'the simplified acquisition threshold. 2 posting. i within 14 days after placingan orderor establishing a bpa exceedingthe simplified acquisition threshold', 4760:'that is supported by a limitedsources justification permitted under any of the circumstances under paragraph a1 of this section, the', 4761:'ordering activity shall– a publish a notice in accordance with 5.301; and b post the justification 1 at the gpe', 4762:'https://www.sam.gov; 2 on the website of the ordering activity agency, which mayprovide access to the justificationby linkingto the gpe; and', 4763:'3 for a minimum of 30 days. iiin the case ofan orderor bpa permitted under paragraph a1ia of this section,the', 4764:'justification shall be posted within 30 days after award. iii contractingofficers shall carefully screen all justifications for contractor proprietary data', 4765:'and remove all such data, and such references and citations as are necessary to protect the proprietary data, before making', 4766:'the justifications available for public inspection. contractingofficers shall also be guided by theexemptions to disclosure of information contained in the', 4767:'freedom of information act 5 u.s.c. 552 and the prohibitions against disclosure in 24.202 in determining whether other data should', 4768:'be removed. although the submitter notice process set out in executive order 12600 predisclosurenotificationprocedures for confidential commercial information doesnot apply,', 4769:'if the justificationappears to containproprietary data,the contracting officer should provide the contractor that submitted the informationan opportunity to review the', 4770:'justification for proprietary data before making the justification available for public inspection, redacted as necessary. this process must not prevent', 4771:'or delay the posting of thejustification inaccordancewith the timeframes required in paragraphs a2i and ii of this section. iv this', 4772:'posting requirement does not apply when disclosure would compromise the national security e.g., would result in disclosure of classified information', 4773:'or create other security risks. b items peculiar to one manufacturer. an item peculiar to one manufacturer can be a', 4774:'particular brand name, product, or a feature of a product, peculiar to onemanufacturer. a brand name item, whether availableon one', 4775:'or more schedule contracts, is an itempeculiar to one manufacturer. 1 brand name specifications shall not be used unless the', 4776:'particular brand name, product, or feature is essential to thegovernment’s requirements,andmarketresearchindicates other companies’ similarproducts, or products lacking the particular feature,', 4777:'donot meet, or cannot bemodified tomeet, the agency’sneeds. subpart 8.4 federal supply schedules 8.4056 2 documentation. ifor proposed orders or', 4778:'bpas with anestimated value exceedingthe micropurchase threshold, but notexceeding the simplified acquisition threshold, the ordering activity contracting officershalldocument the basisfor', 4779:'restricting consideration to an item peculiar to one manufacturer. iifor proposed orders or bpas with anestimated value exceedingthe simplified acquisitionthreshold,', 4780:'see paragraph c of this section. iii the documentation or justification must be completed and approved at the time the', 4781:'requirement for a brand name item is determined. in addition, the justification for a brandname item is required at the', 4782:'order level when a justification for thebrandname item was not completed for the bpaor does notadequately cover the requirementsin the', 4783:'order. 3 posting. i the ordering activity shall post the following information along with the request for quotation rfq to', 4784:'ebuy https://www.ebuy.gsa.gov: afor proposed orders or bpas with anestimated value exceeding$25,000, but notexceeding the simplified acquisition threshold, the documentation required', 4785:'by paragraph b2i of this section. b forproposed orders or bpas withan estimatedvalue exceeding the simplified acquisition threshold, the justification', 4786:'required by paragraph c of this section. c the documentation in paragraph b2i of this sectionand the justification in paragraph', 4787:'c of this section is subject to the screening requirement in paragraph a2iii of this section. ii the posting requirement', 4788:'of paragraph b3i of this section does not apply when a disclosure would compromise the national security e.g., would result', 4789:'in disclosure of classified information or create other security risks. the fact that access to classified matter may be necessary', 4790:'to submit a proposal or perform the contract does not, in itself, justify use of this exception; b the nature', 4791:'of the file e.g., size, formatdoes not make it costeffectiveor practicableforcontracting officers to provide access through ebuy;; or c the', 4792:'agency’s senior procurement executive makes a written determination that access through ebuy is not in thegovernment’s interest. 4 when applicable,', 4793:'the documentation and posting requirements in paragraphs b2 and 3 of this section apply only tothe portionof the order or', 4794:'bpa that requires a brandname item. if thejustification and approval is to cover only the portion of the acquisition which', 4795:'is brandname, then it should so state; the approval level requirements will then only apply to that portion. c an', 4796:'orderor bpa with an estimated value exceeding the simplified acquisition threshold. 1 for a proposed order or bpa exceedingthe simplified', 4797:'acquisitionthreshold, therequiring activity shall assist the ordering activity contracting officer in the preparation of the justification. the justification shall cite', 4798:'that the acquisition is conducted under the authority of the multipleaward schedule program see 8.401. 2 at a minimum, each', 4799:'justification shall include the following information: iidentification of the agency and thecontracting activity, and specific identification of thedocument as a', 4800:'limitedsources justification. ii nature and/or description of the action being approved. iii a description of the supplies or services required', 4801:'to meet the agency’s needsincludingthe estimated value. iv the authority and supporting rationale see 8.4056a1i and b1 and, if applicable,', 4802:'a demonstration of the proposed contractor’s unique qualificationsto provide the required supply or service. v a determination by the ordering', 4803:'activity contracting officerthat the order representsthe best value consistent with 8.404d. vi a description of the market research conducted among', 4804:'schedule holders and the results or a statement of the reason market research was not conducted. vii any other facts', 4805:'supporting the justification. viii a statement of the actions, if any, the agencymay take to remove or overcomeanybarriers that led', 4806:'to the restricted consideration before any subsequent acquisition for the supplies or services is made. ix the ordering activity contracting', 4807:'officer’s certificationthat the justification is accurate and complete to the best of the contracting officer’s knowledge and belief. x evidence', 4808:'that any supporting data that is the responsibility of technical or requirements personnel e.g., verifying thegovernment’s minimum needs orrequirements or', 4809:'other rationale for limitedsources and which form a basis for the justification have been certified as complete and accurate by', 4810:'the technical or requirements personnel. xi for justifications under 8.4056a1, a writtendeterminationby the approving official identifyingthe circumstance that applies. federal', 4811:'acquisition regulation d justification approvals. 1 for a proposed order orbpa withan estimated value exceeding thesimplified acquisition threshold, but not', 4812:'exceeding $750,000,the ordering activity contracting officer’scertification that the justification is accurate and complete tothe best of the ordering activity contracting', 4813:'officer’s knowledge andbelief will serveas approval, unless a higher approval level is established in accordance with agency procedures. 2 for', 4814:'a proposed order orbpa withan estimated value exceeding $750,000, but not exceeding $15 million, the justification must beapproved bythe advocateforcompetition', 4815:'of the activity placing the order,or by an official named in paragraph d3 or 4 of this section. this authority', 4816:'is not delegable. 3 for a proposed order orbpa withan estimated value exceeding $15 million, but not exceeding $75million or,', 4817:'for dod, nasa, and the coast guard, not exceeding $100 million, the justification must be approved by i the head', 4818:'of the procuring activity placing the order; ii a designee who aif a member ofthe armed forces, is a general', 4819:'or flag officer;or b if a civilian, is serving in a position in a grade above gs15 under the general', 4820:'schedule or in a comparable or higher position under another schedule; or iii an official named in paragraph d4 of', 4821:'thissection. 4 for a proposed order orbpa withan estimated value exceeding $75 million or,fordod, nasa, and the coast guard, over', 4822:'$100 million, the justification must be approved by the senior procurement executive of the agency placing the order. this authority', 4823:'isnot delegable, except in the case ofthe under secretary of defense for acquisition and sustainment, acting as the senior procurement', 4824:'executive for the department of defense. 8.4057 payment. agencies may make payments for oral or written orders by any authorized', 4825:'means, including the governmentwide commercial purchase card but see 32.1108b2. 8.406 ordering activityresponsibilities. 8.4061 order placement. a ordering activities may', 4826:'place orders orally, except for 1 supplies and services not requiring a statement of work exceeding the simplified acquisition threshold;', 4827:'2 services requiring a statement of work sow; and 3 orders containing brandname specifications that exceed $25,000. b ordering activities', 4828:'may use optional form 347, an agencyprescribed form, or an established electronic communications format to order supplies or services from', 4829:'schedule contracts. c the ordering activity shall place an order directly with the contractor in accordance with the terms and', 4830:'conditions of the price lists see 8.402b. prior to placementof the order, the ordering activity shall ensure that theregulatoryand statutory', 4831:'requirements of the requiring agency have been applied. d orders shall include the following information in addition to any information', 4832:'required by the schedule contract: 1 complete shipping and billing addresses. 2 contract number and date. 3 agency ordernumber. 4', 4833:'f.o.b. delivery point; i.e., origin or destination. 5 discount terms. 6 delivery time or period of performance. 7 special itemnumber', 4834:'or national stocknumber. 8 line item or subline item. 9 a statement of work for services, when required, or a', 4835:'brief, complete description of each item when ordering by model number, features and options such as color, finish,and electrical characteristics,', 4836:'if available, must be specified. 10 quantity and any variation in quantity. 11 number of units. 12 unit price. 13', 4837:'total priceof order. 14 points of inspection and acceptance. 15 other pertinent data; e.g., delivery instructions or receiving hours and', 4838:'sizeoftruck limitation. subpart 8.4 federal supply schedules 8.4064 16 marking requirements. 17 level of preservation, packaging, and packing. 8.4062 inspection', 4839:'and acceptance. a supplies. 1 consignees shall inspect supplies at destination except when i the schedule contract indicates that mandatory', 4840:'source inspection is required by the schedule contracting agency; or ii a schedule item is covered by a product description,', 4841:'and the ordering activity determines that the schedule contracting agency’sinspectionassistance is needed based on the ordering volume, the complexity of', 4842:'the supplies, or the past performance of the supplier. 2 when the schedule contracting agency performs the inspection, the ordering', 4843:'activity will provide two copies of theorder specifying source inspection tothe schedule contracting agency. the schedule contracting agency will notify', 4844:'the ordering activity of acceptance or rejection of the supplies. 3 material inspected at source by theschedule contracting agency, and', 4845:'determined to conform with the product description of the schedule, shall not be reinspected for the same purpose. the consignee', 4846:'shall limit inspection to kind, count, and condition on receipt. 4 unless otherwise provided in the schedule contract, acceptance is', 4847:'conclusive, except as regards latent defects, fraud, or such gross mistakes as amount to fraud. b services. the ordering activity', 4848:'has the right to inspect all services in accordance with the contract requirements and as calledforby the order. the ordering', 4849:'activityshallperform inspections and tests as specified in the order’s quality assurance surveillance plan in a manner that will not unduly', 4850:'delay the work. 8.4063 remedies for nonconformance. a if a contractor delivers a supply or service, but it does not', 4851:'conform to the order requirements, the ordering activity shall takeappropriate actionin accordance with theinspectionand acceptance clause of the contract,as supplemented', 4852:'by theorder. b if the contractor fails to perform an order, or take appropriate correctiveaction,the ordering activity mayterminatethe order for', 4853:'cause or modify the order to establish a new delivery date after obtaining consideration, as appropriate. ordering activities shall follow', 4854:'the procedures at 8.4064 when terminating an order for cause. 8.4064 termination for cause. a 1anorderingactivitycontractingofficermayterminateindividualordersforcause. terminationforcauseshall comply withfar 12.403,', 4855:'and may include charging the contractorwith excess costs resulting from repurchase. 2 the schedule contracting office shall benotified ofall instances', 4856:'wherean ordering activity contractingofficer has terminated for cause an individual order to a federalsupplyschedulecontractor, orif fraud is suspected. b if', 4857:'the contractor asserts thatthe failure was excusable, the ordering activity contracting officer shall follow the procedures at 8.4066, as appropriate.', 4858:'c if the contractor is chargedexcess costs, the following apply: 1 any repurchase shall be made at as low a', 4859:'price as reasonable, considering the quality required by the government, delivery requirement, and administrative expenses. copies of all repurchase orders,', 4860:'except the copy furnished to the contractor or any other commercial concern, shall include the notation: repurchase against the account', 4861:'of [insert contractor’s name] under order [insert number] under contract [insert number]. 2 when excess costs areanticipated, the ordering activity', 4862:'may withhold funds due the contractor as offset security. orderingactivities shall minimize excess costs to be charged againstthe contractor and', 4863:'collect or setoff any excess costs owed. 3 if an ordering activity isunable to collect excess repurchase costs, it shall', 4864:'notify the schedule contractingoffice after final payment to the contractor. i the notice shall include the following information about the', 4865:'terminated order: aname and address of thecontractor. b schedule, contract, andorder number. c line item numbers and a brief description', 4866:'of the items. d cost of schedule items involved. e excess costs to be collected. federal acquisition regulation f other', 4867:'pertinent data. ii the notice shall also include the following information about the purchase contract: aname and address of thecontractor.', 4868:'b item repurchase cost. c repurchase order number and date of payment. dcontract number, if any. e other pertinent data.', 4869:'d onlythe schedule contracting officermay modify thecontract to terminate for cause any, orall, supplies or services covered bythe schedule contract.', 4870:'if the schedule contracting officer has terminated any suppliesor services covered by the schedule contract, no further orders may be', 4871:'placed for those items. orders placed prior to termination for cause shall be fulfilled by the contractor, unless terminated for', 4872:'theconvenience of the government by the ordering activity contracting officer. e reporting. an ordering activity contracting officer, inaccordancewith agency procedures,', 4873:'shall ensure that information related to termination for cause notices and any amendments are reported. in the event the termination', 4874:'for cause is subsequently converted to atermination for convenience, or is otherwise withdrawn,the contracting officershallensure that a notice of the', 4875:'conversion or withdrawal is reported. all reporting shall be in accordance with 42.1503h. 8.4065 termination for the government’s convenience. a', 4876:'an ordering activity contractingofficer may terminate individual orders for the government’sconvenience. terminations for thegovernment’s convenience shall complywith far 12.403. b', 4877:'before terminating orders for the government’s convenience, the ordering activitycontracting officer shall endeavor to enter intoa nocost settlement agreementwith the', 4878:'contractor. c only the schedule contractingofficer may modify the schedule contract to terminate any, or all, supplies or services covered', 4879:'bythe schedule contract for thegovernment’s convenience. 8.4066 disputes. a disputes pertaining to the performance of orders under a schedule contract.', 4880:'1 under the disputes clause of the schedule contract, the ordering activity contracting officer may i issue final decisions on', 4881:'disputes arising from performance of the order but see paragraph b of this section; or iirefer the dispute to the', 4882:'schedule contractingofficer. 2 the ordering activity contracting officer shall notify the schedule contracting officer promptly of any final decision. b', 4883:'disputes pertaining to the terms and conditions of schedule contracts. the ordering activity contractingofficer shall refer all disputes that relate', 4884:'to the contract terms andconditions to the schedule contracting officer for resolution under the disputes clause of the contract and', 4885:'notify the schedule contractor of the referral. c appeals. contractors may appeal final decisions to either the board of contract', 4886:'appeals servicing the agency that issued the final decision or the u.s. court of federal claims. d alternative dispute resolution.', 4887:'the contracting officer should use the alternative dispute resolution adr procedures, to the maximum extent practicable see 33.204 and 33.214.', 4888:'8.4067 contractor performance evaluation. ordering activities must prepare at least annually and at the time the work under the order', 4889:'is completed, an evaluation of contractor performance for each order that exceeds the simplified acquisition threshold in accordance with 42.1502c.', 4890:'subpart 8.5 [reserved] subpart 8.5 [reserved] this page intentionally left blank. subpart 8.6 acquisition from federal prison industries, inc. 8.602', 4891:'subpart 8.6 acquisition from federal prison industries, inc. 8.601general. a federal prison industries, inc. fpi, also referred to as unicor,', 4892:'is a selfsupporting, wholly owned government corporation of the district of columbia. b fpi provides training and employment for prisoners', 4893:'confined in federal penal and correctional institutions through the sale of its supplies and services to government agencies 18 u.s.c.', 4894:'41214128. c fpidiversifies itssupplies and services to minimize adverse impact onprivate industry. d supplies manufactured and services performed by fpi', 4895:'are listed in the fpi schedule, which can be accessed at http:// www.unicor.gov or by submitting a written request tofederal', 4896:'prison industries, inc.,department ofjustice, washington, dc 20534. e agencies are encouraged to purchase fpi supplies and services to the maximum', 4897:'extent practicable. 8.602 policy. a in accordance with 10 u.s.c. 3905 and section 637 of division h of the consolidated', 4898:'appropriations act, 2005 pub. l. 108447 18 u.s.c. 4124 note, and except as provided in paragraph b of this section,', 4899:'agencies shall 1 before purchasing an item of supply listed in the fpi schedule, conduct market research to determine whether', 4900:'thefpi itemis comparable tosupplies available from theprivatesector that bestmeet thegovernment’s needs in terms of price, quality,and time ofdelivery. thisis aunilateraldetermination', 4901:'made atthe discretion of the contracting officer. the arbitration provisions of 18 u.s.c. 4124b do not apply. 2 prepare a', 4902:'writtendeterminationthat includes supportingrationaleexplaining the assessment of price, quality, and time of delivery, basedon the results ofmarketresearchcomparingthe fpi item tosupplies available', 4903:'from theprivatesector. 3 if the fpi item is comparable, purchase the item from fpi following the ordering procedures at http://', 4904:'www.unicor.gov, unless a waiver is obtained in accordance with 8.604; and 4 if the fpi item is not comparablein one', 4905:'or more ofthe areas of price, quality,and time ofdelivery i acquire the item using a competitive procedures e.g., the procedures', 4906:'in 6.102, the setaside procedures in subpart 19.5, or competition conducted in accordance with part 13; or b the fair', 4907:'opportunity procedures in 16.505, if placing an order under a multiple award deliveryorder contract; iiinclude fpi in the solicitation processand', 4908:'considera timely offer from fpi for award in accordance with the item description or specifications, and evaluation factors in the', 4909:'solicitation a if the solicitation is available through the governmentwide point of entry contract opportunities at sam.gov , it is', 4910:'not necessary to provide a separate copy of the solicitation to fpi; b if the solicitation is not available through', 4911:'contract opportunities at sam.gov , provide a copy of the solicitation to fpi; iii when using a multiple award schedule', 4912:'issued under the procedures in subpart 8.4 or when using the fair opportunity procedures in 16.505 a establish and communicate', 4913:'to fpi the item description or specifications, and evaluation factors that will beused as the basis for selectinga source, so', 4914:'that an offer from fpi can be evaluated on thesame basis as the contract or schedule holder; and b consider', 4915:'a timelyoffer fromfpi; iv award to the source offering the item determined bythe agencyto provide the best value tothe government;', 4916:'and v when the fpiitem isdetermined to providethe best value to the government as a result of fpi’s response to', 4917:'a competitive solicitation, follow the ordering procedures at http://www.unicor.gov. b the procedures in paragraph a of this section do not', 4918:'apply if an exception in 8.605b through g applies. c in some cases where fpi and an abilityone participating nonprofit', 4919:'agency produce identical items see 8.603, fpi grants a waiver to permit the government to purchase a portion of its', 4920:'requirement from the abilityone participating nonprofit agency. when this occurs, the portion of therequirementforwhich fpi has granteda waiver 1 shall', 4921:'be purchased from the abilityone participating nonprofit agency using the procedures in subpart 8.7; and 2 shall not be subject', 4922:'to the procedures in paragraph a of this section. d disputes regarding price, quality, character, or suitability of supplies producedby', 4923:'fpi, except for determinations under paragraph a1 of this section, are subject to arbitration as specified in 18 u.s.c. 4124.', 4924:'the statute provides that the federal acquisition regulation arbitration shall be conducted by a board consisting of the comptroller general', 4925:'of the united states, the administrator of general services, and the president, or their representatives. the decisions of the board', 4926:'are final and binding on all parties. 8.603 purchase priorities. fpi and nonprofit agencies participating in the abilityone program under', 4927:'41 u.s.c. chapter 85, committee for purchase from people who are blind or severely disabled see subpart 8.7 may produce', 4928:'identical supplies or services. when this occurs, ordering offices shall purchase supplies andservices in thefollowing priorities: a supplies. 1 federal', 4929:'prison industries, inc. 41 u.s.c. 8504. 2 abilityone participating nonprofit agencies. 3 commercial sources. b services. 1 abilityone participating nonprofit', 4930:'agencies. 2 federal prison industries, inc., or commercial sources. 8.604 waivers. fpi may grant a waiver for purchase of supplies', 4931:'in the fpi schedule from another source. fpi waivers ordinarily are of the following types: a general or blanket waivers', 4932:'issued when classes of supplies are not available from fpi. b formal waivers issued in response torequests from offices desiring', 4933:'toacquire, from other sources, supplies listed in the fpi schedule andnot covered by a general waiver. agencies shall processwaiver requestsin', 4934:'accordance with the procedures at http://www.unicor.gov. 8.605exceptions. purchase from fpi is not mandatory and a waiver is not required if', 4935:'a 1thecontractingofficermakesadeterminationthatthefpiitemofsupplyisnotcomparabletosuppliesavailable from the private sector that best meet the government’s needs in terms of price, quality,andtime ofdelivery; and 2', 4936:'the item is acquired in accordance with 8.602a4; b public exigency requires immediate delivery or performance; c suitable used or', 4937:'excess supplies are available; d the supplies are acquired and used outside the united states; e acquiring listed items totaling', 4938:'$3,500 or less; f acquiring items that fpioffers exclusively on a competitive nonmandatory basis, as identified inthe fpi schedule; or', 4939:'g acquiring services. 8.606evaluating fpi performance. agencies shall evaluate fpi contract performance in accordance with subpart 42.15. performance evaluations do', 4940:'not negate the requirements of 8.602 and 8.604, but they may be used to support a waiver request in accordance', 4941:'with 8.604. 8.607 performanceas a subcontractor. agencies shall not requirea contractor, or subcontractor at any tier, to use fpi as', 4942:'a subcontractor for performance of a contract by any means, including means such as a a solicitation provision requiringa potential', 4943:'contractorto offer to make use of fpi supplies or services; b a contract specification requiring the contractor to use specific', 4944:'supplies or services or classes of supplies or services offered by fpi; or c any contract modification directing the use', 4945:'of fpi supplies or services. 8.608 protectionof classified andsensitive information. agencies shall not enter into any contract with fpi that', 4946:'allows an inmate worker access to any a classified data; b geographic data regarding the location of 1 surface and', 4947:'subsurface infrastructure providing communications or water or electrical power distribution; 2 pipelines for the distribution of natural gas, bulk petroleum', 4948:'products, or other commodities; or 3 other utilities; or subpart 8.6 acquisition from federal prison industries, inc. 8.608 c personal', 4949:'or financial information about any individual private citizen,including information relating to such person’s real property however described, without the prior', 4950:'consent of the individual. this page intentionally left blank. subpart 8.7 acquisition from nonprofit agencies employing people who are blind', 4951:'or severely disabled 8.703 subpart 8.7 acquisition from nonprofit agencies employing people who are blind or severely disabled 8.700scope of', 4952:'subpart. this subpart prescribes the policies and procedures for implementing– a 41 u.s.c. chapter 85, committee for purchase from people', 4953:'who are blind or severely disabled; and b the rules of the committee for purchase from people who are blind', 4954:'or severely disabled 41 cfr chapter 51, which implements the abilityone program. 8.701definitions. as used in this subpart allocation means', 4955:'an action taken by a central nonprofit agency to designate the abilityone participating nonprofit agencies that will furnish definite quantities', 4956:'of supplies or perform specific services upon receipt of orders from ordering offices. central nonprofit agency means national industries for', 4957:'the blind nib, which has been designated to represent people who are blind; or nish, which has been designated to', 4958:'represent abilityone participating nonprofit agencies serving people with severe disabilities other than blindness. committee means the committee for purchase from', 4959:'people who are blind or severely disabled. government or entity of the government means anyentity of thelegislative orjudicial branch, any', 4960:'executive agency, military department, government corporation, or independent establishment, the u.s. postal service, or any nonappropriatedfund instrumentality of the armed', 4961:'forces. ordering office means any activity in an entity of the government that places orders for the purchase of supplies', 4962:'or services under the abilityone program. procurement list means a list of supplies including military resale commodities and services that', 4963:'the committee has determined are suitable for purchase by the government under 41 u.s.c. chapter 85. nonprofit agency serving people', 4964:'who are blind or nonprofit agency serving people with other severe disabilities referred to jointly as abilityone participating nonprofit agencies', 4965:'means a qualified nonprofit agency employing people who are blind or have other severe disabilities approved by the committee to', 4966:'furnish a commodity or a service to the government under 41 u.s.c. chapter 85. 8.702general. the committee is an independent', 4967:'government activity with members appointed by the president of the united states. it is responsible for a determining those supplies', 4968:'and services to be purchased by all entities of the government from abilityone participating nonprofit agencies; b establishing prices for', 4969:'the supplies and services; and c establishing rules and regulations to implement 41 u.s.c. chapter 85. 8.703 procurement list. the', 4970:'committee maintains a procurement list of all supplies and services required to be purchased from abilityone participating nonprofit agencies. the', 4971:'procurement list may be accessed at: http://www.abilityone.gov . questions concerning whether a supply item or service is on the procurement', 4972:'list may be submitted at internet email address info@abilityone.gov or referredto the committee offices at the following address and telephone', 4973:'number: committee for purchase from people who are blind or severely disabled, 1401 s. clark street, suite 10800, arlington, va222023259,', 4974:'703 6037740. many items on the procurement list are identified in the general services administration gsa supply catalog and gsa’s', 4975:'customerservice center catalogs witha black squareand the words nib/nish mandatory source, and in similar catalogsissuedby the defense logistics agency dla', 4976:'and the departmentof veterans affairs va. gsa,dla, and vaare central supply agenciesfrom whichotherfederal agencies are required topurchase certain supply itemson', 4977:'the procurement list. federal acquisition regulation 8.704 purchase priorities. a 41 u.s.c. chapter 85 requires the government to purchase supplies', 4978:'or services on the procurement list, at prices established by the committee, from abilityone participating nonprofit agencies if they are', 4979:'available within the period required. when identical supplies or services are on the procurement list and the schedule of products', 4980:'issued by federal prison industries, inc., ordering officesshallpurchase supplies and services in the following priorities: 1 supplies: i federal prison', 4981:'industries, inc. 41 u.s.c. 8504. ii abilityone participating nonprofit agencies. iii commercial sources. 2 services: i abilityone participating nonprofit agencies.', 4982:'ii federal prison industries, inc., or commercial sources. b no other provision of the farshallbe construedas permitting an exception to', 4983:'the mandatory purchase of items on the procurement list. c theprocurement list identifiesthose supplies for which the ordering office must', 4984:'obtain aformal waiver 8.604 from federal prison industries, inc., before making any purchases from abilityone participating nonprofit agencies. 8.705 procedures.', 4985:'8.7051 general. a ordering offices shall obtainsupplies and services onthe procurement listfrom the central nonprofit agency or its designated abilityone', 4986:'participating nonprofit agencies, except that supplies identified on the procurement list as available from dla, gsa, or va supply distributionfacilities', 4987:'shall be obtained through dla,gsa, or vaprocedures. if a distribution facility cannot provide the supplies, it shall inform the ordering', 4988:'office, which shall then order fromthe abilityone participating nonprofit agency designated by the committee. b supply distribution facilities in dla', 4989:'and gsa shall obtain supplies on the procurement list from the central nonprofit agency identified or its designated abilityone participating', 4990:'nonprofitagency. 8.7052 directorder process. central nonprofit agencies may authorize ordering officesto transmit orders for specific supplies or services directly to', 4991:'an abilityoneparticipating nonprofit agency. the written authorization remains valid until it is revoked by the central nonprofit agency or the', 4992:'committee. the central nonprofit agency shall specify the normal delivery or performance lead time required by the nonprofitagency. the ordering', 4993:'office shall reflectthis lead time in its orders. 8.7053 allocation process. a when thedirect order process has not been authorized,', 4994:'theorderingoffice shall submit a written request for allocation requesting the designation of the abilityone participating nonprofit agency to produce the', 4995:'supplies or perform the service to the central nonprofit agency designatedin the procurement list. orderingoffices shall requestallocations insufficient time for', 4996:'areply, for orders tobe placed, and for the nonprofit agency to produce the supplies or provide the service within the', 4997:'required delivery or performance schedule. b the ordering office’s requestto the central nonprofit agency for allocation shall include thefollowing information:', 4998:'1 for suppliesitem name,stock number, latest specification, quantity, unitprice,date deliveryis required, and destination to which delivery is to be made.', 4999:'2 for servicestype and location of service required,latest specification, work to be performed, estimated volume, and required date or dates', 5000:'for completion. 3 other requirements; e.g., packing, marking, asnecessary. c when an allocation is received, the ordering office shall promptly', 5001:'issuean orderto the specified abilityone participatingnonprofit agency or to the central nonprofit agency, asinstructedby the allocation. if the issuance of', 5002:'an order is to be delayed for more than 15 daysbeyondreceipt of theallocation, orcanceled, the ordering office shall advisethe central', 5003:'nonprofit agencyimmediately. d orderingoffices mayissue orders without limitationas to dollar amount and shall record them upon issuance as obligations. each', 5004:'ordershallinclude, as a minimum,the information contained in the request for allocation. ordering offices subpart 8.7 acquisition from nonprofit agencies employing', 5005:'people who are blind or severely disabled 8.707 shall also include additional instructions necessary for performance under the order; e.g.,', 5006:'on the handling of governmentfurnishedproperty, reports required, and notification of shipment. 8.7054 compliance with orders. a thecentral nonprofitagency shall inform', 5007:'the ordering officeof changes in lead timeexperienced byits abilityone participatingnonprofit agencies to minimize requests for extensions once the ordering office', 5008:'places an order. b the ordering office shall grant a request by acentral nonprofitagency or abilityone participating nonprofit agency for', 5009:'revision in the delivery or completion schedule, if feasible. if extension of the delivery or completion date is not feasible,', 5010:'theorderingoffice shall notify the appropriate central nonprofit agency and request that it reallocate the order, orgranta purchase exception authorizing acquisition', 5011:'from commercial sources. c when an abilityone participating nonprofit agency fails to perform under the terms of an order, the', 5012:'ordering office shall make every effort to resolve thenoncompliance with the nonprofit agency involved and tonegotiate an adjustment beforetakingaction to', 5013:'cancelthe order. if the problem cannot be resolved with the nonprofit agency, the ordering office shall refer thematter for resolution', 5014:'firstto the central nonprofit agency and then, if necessary, tothe committee. d when, after complying with 8.7054c, the ordering officedeterminesthat', 5015:'it must cancel anorder, it shall notify thecentral nonprofitagency and, if practical, request a reallocation ofthe order. whenthe central nonprofit', 5016:'agency cannot reallocate the order, it shall grant a purchase exceptionpermitting use of commercial sources, subject to approvalby the committee', 5017:'when the value of the purchase exception is $25,000 or more. 8.706 purchase exceptions. a ordering offices may acquiresupplies orserviceson', 5018:'the procurement list from commercial sourcesonlyif the acquisition isspecifically authorized ina purchase exceptiongranted by the designatedcentral nonprofitagency. b the central', 5019:'nonprofit agency shall promptly grant purchase exceptions when 1 the abilityone participating nonprofit agencies cannot provide the supplies or services', 5020:'within the time required, and commercial sources can provide them significantly sooner in the quantities required; or 2 the quantity', 5021:'required cannot be produced or provided economically by the abilityone participating nonprofit agencies. c the central nonprofit agency granting the', 5022:'exception shall specify the quantity and delivery or performance period covered by the exception. d when apurchase exception is granted,', 5023:'the contracting officer shall 1 initiate purchase action within 15 days following the date of the exception or any extension', 5024:'granted by the central nonprofit agency; and 2 provide a copy of the solicitation to the central nonprofit agency when', 5025:'it is issued. e the committee may also grant a purchase exception, under any circumstances it considers appropriate. 8.707prices. a', 5026:'the prices of items on the procurement list are fair market prices established by the committee. all prices for supplies', 5027:'ordered under this subpart are f.o.b. origin. b prices for supplies arenormally adjusted semiannually. pricesforservicesare normally adjustedannually. c the committee', 5028:'may request the agency responsible for acquiring the supplies or service to assist it in establishing or revising the fair', 5029:'market price. the committee has the authority to establish prices without prior coordination with the responsible contracting office. d price', 5030:'changes shall normally apply to all orders received by the abilityone participating nonprofit agency on or after theeffective date ofthe', 5031:'change. in specialcases, after considering the views of the ordering office, thecommittee may make price changes applicable toordersreceived by the', 5032:'abilityone participating nonprofitagency prior tothe effective date of the change. e if an ordering officedesirespacking, packaging,or marking of supplies other', 5033:'than the standard pack as provided on the procurement list, anydifference in costs shall beincluded as a separate item on', 5034:'the nonprofitagency’s invoice. theordering officeshallreimburse the nonprofitagency for these costs. f ordering officesmay make recommendations to thecommittee at any time', 5035:'for price revisions for supplies and services on the procurement list. federal acquisition regulation 8.708shipping. a delivery is accomplished whena', 5036:'shipment is placed aboard thevehicle of the initial carrier. the time ofdelivery isthe dateshipmentis released to and accepted by theinitial', 5037:'carrier. b shipment is normally under government billsof lading. however, for small orders, ordering offices may specify other shipment methods.', 5038:'c when shipments are under government bills of lading, the bills of lading may accompany orders or be otherwise furnishedpromptly.', 5039:'failure of an ordering office to furnish bills of ladingor to designatea method of transportation may result in an excusable', 5040:'delay indelivery. d abilityone participating nonprofit agencies shall include transportation costs for small shipments paid by the nonprofit agencies asan', 5041:'item on the invoice. the ordering office shall reimburse the nonprofit agencies for these costs. 8.709payments. the ordering office shall', 5042:'make payments for suppliesor services on the procurementlist within 30days after shipment or after receiptof aproper invoiceor voucher. 8.710 qualityof', 5043:'merchandise. supplies and services provided by abilityone participating nonprofit agencies shall comply with the applicable government specificationsand standards citedin theorder.', 5044:'when no specifications or standards exist a supplies shall be of the highest quality and equal to similar items available', 5045:'on the commercial market; and b services shall conform to good commercial practices. 8.711quality complaints. a when thequalityof suppliesor services', 5046:'received is unsatisfactory, theusing activity shall takethe following actions: 1 for supplies received from dla supply centers, gsa supply distribution', 5047:'facilities, or department of veterans affairs distribution division, notify the supplying agency. 2 for supplies or services received from abilityone', 5048:'participating nonprofit agencies, address complaints to the individualnonprofit agency involved, with acopy to the appropriate centralnonprofit agency. b when quality', 5049:'problemscannot be resolvedby the abilityone participating nonprofit agencyandthe ordering office, theorderingoffice shall first contact thecentral nonprofitagency and then, if necessary,', 5050:'the committee for resolution. 8.712specification changes. a the contracting activity shall notify the abilityone participating nonprofit agency and appropriate central', 5051:'nonprofit agency of any change in specifications or descriptions. in the absence of such written notification, the abilityone participatingnonprofit agency', 5052:'shall furnish the supplies or services under the specification or description cited in the order. b the contracting activity shall', 5053:'provide 90days advance notification to the committee and the central nonprofit agency on actions that affect supplies on theprocurement list', 5054:'and shall permit them to commentbefore action istaken,particularly when it involves 1 changes that require new national stock numbers or', 5055:'item designations; 2 deleting items from the supply system; 3 standardization; or 4 developing new items to replace items on', 5056:'the procurement list. c for services, the contracting activity shall notify the abilityone participating nonprofit agency and central nonprofit agency', 5057:'concerned at least 90 days prior to the date that any changes in the scope of work or other conditions', 5058:'will be required. d when,in order to meet its emergency needs, a contracting activity is unable to give the 90day', 5059:'notification requiredin paragraphs b and c of this section, the contracting activity shall, at the time it places the order', 5060:'or change notice, inform the abilityone participating nonprofit agency and the central nonprofit agency in writing of the reasons that', 5061:'it cannot meet the 90day notification requirement. 8.713optional acquisition of supplies and services. a ordering offices may acquiresupplies and services', 5062:'notincluded on the procurement list from an abilityone participatingnonprofit agency thatis the low responsive, responsible offerorunder a solicitation issued byotherauthorized', 5063:'acquisition methods. subpart 8.7 acquisition from nonprofit agencies employing people who are blind or severely disabled 8.716 b orderingoffices should', 5064:'forward solicitations toabilityone participating nonprofit agenciesthat may be qualified to provide the supplies or services required. 8.714 communicationswith thecentral nonprofit', 5065:'agencies and the committee. a the addresses of the central nonprofit agencies are: 1 national industries for the blind 1310', 5066:'braddock place alexandria,va 223141691 703 3100500; and 2 nish 8401 old courthouse road vienna, va 22182 571 2264660. b any', 5067:'matter requiring referral to the committee shall be addressed to: executive director of thecommittee, 1401s. clark street, suite 10800, arlington,', 5068:'va 222023259. 8.715replacement commodities. when a commodity on the procurement list is replaced by another commodity which has not been', 5069:'previously acquired, and a qualified abilityone participating nonprofit agency can furnish the replacement commodity in accordance with thegovernment’s quality standardsand', 5070:'delivery schedules and at a fair market price, the replacementcommodity is automatically on the procurement list and shall be acquired', 5071:'from the abilityone participating nonprofit agency designated by the committee. the commodity being replaced shall continue to be included on', 5072:'the procurement list until there is no longer a requirement for that commodity. 8.716 changeofnameand successorin interest procedures. when the', 5073:'committee recognizes a name change or a successor in interest for an abilityone participating nonprofit agency providing supplies or services', 5074:'on the procurement list a thecommittee will provide a noticeof achange to the procurementlist to the cognizant contractingofficers; and b', 5075:'upon receipt ofa notice of a change tothe procurement listfrom the committee, the contracting officer must 1 prepare a standard', 5076:'form sf 30, amendment of solicitation/modification of contract, incorporating a summary of thenotice and attaching a list of contracts affected;', 5077:'and 2 distribute the sf 30, including a copy to the committee. this page intentionally left blank. subpart 8.8 acquisition', 5078:'of printing and related supplies 8.802 subpart 8.8 acquisition of printing and related supplies 8.800scope of subpart. this subpart provides', 5079:'policy for the acquisition of government printing and related supplies. 8.801definitions. as used in this subpart government printing means printing,', 5080:'binding, and blankbook work for the use of an executive department, independent agency, or establishment of the government. related supplies', 5081:'means supplies that are used and equipment that is usable in printing and binding operations. 8.802 policy. a government printing', 5082:'must be done by or through the government publishing office gpo 44 u.s.c. 501, unless 1 the gpo cannot provide', 5083:'the printing service 44 u.s.c. 504; 2 the printing is done in field printing plants operated by an executive agency', 5084:'44 u.s.c. 5012; 3 the printing is acquired by an executive agency from allotments for contract field printing 44 u.s.c.', 5085:'5012; or 4 the printing is specifically authorized by statute to be done other than by the gpo. b the', 5086:'head of each agency shall designate a central printing authority; that central printing authority may serve as the liaison with', 5087:'the congressional joint committee on printing jcp and the public printer on matters related to printing. contracting officersshallobtain approvalfrom their', 5088:'designatedcentral printing authoritybefore contracting in any manner, whether directly or through contracts for other supplies or services, for the items', 5089:'defined in 8.801 and for composition, platemaking, presswork, binding, and micrographics when used as a substitute for printing. c 1further,', 5090:'44u.s.c.1121 provides that the public printer may acquire and furnish paper and envelopes excluding envelopes printed in the course of', 5091:'manufacture in common use by two or more government departments, establishments, or services within the district of columbia, and provides', 5092:'for reimbursement of the public printer from available appropriations or funds. paperand envelopes that are furnished by thepublic printermay not', 5093:'be acquired in any other manner. 2 paper and envelopes for use by executive agencies outside the district of columbia', 5094:'and stocked by gsa shall be requisitioned from gsa in accordance with the procedures listed in federal property management regulations', 5095:'fpmr 41 cfr part 101, subpart 10126.3. this page intentionally left blank. subpart 8.9 [reserved] subpart 8.9 [reserved] this page', 5096:'intentionally left blank. subpart 8.10 [reserved] subpart 8.10 [reserved] this page intentionally left blank. 8.102 subpart 8.11 leasing of motor', 5097:'vehicles 8.1104 subpart 8.11 leasing of motor vehicles 8.1100 scope of subpart. this subpart covers the procedures for the leasing,', 5098:'from commercial concerns, of motor vehicles that comply with federal motor vehiclesafety standards and applicable state motor vehicle safety regulations.', 5099:'it doesnot applyto motor vehicles leased outside the united states and its outlying areas. 8.1101 definitions. as used in this', 5100:'subpart leasing means the acquisition of motor vehicles, other than by purchase from private or commercial sources, and includes the', 5101:'synonyms hire and rent. motor vehicle means an item of equipment, mounted on wheels and designed for highway and/or land', 5102:'use, that 1 derives power from a selfcontained power unit; or 2 is designed to be towed by and used', 5103:'in conjunction with selfpropelled equipment. 8.1102presolicitation requirements. a except as specified in 8.1102b, before preparingsolicitationsforleasing of motor vehicles,contracting officers shall', 5104:'obtain from the requiring activity a written certification that 1 the vehicles requested are of maximum fuel efficiency and minimum', 5105:'body size, engine size, and equipment if any necessary to fulfill operational needs, and meet prescribed fuel economy standards; 2', 5106:'the head ofthe requiring agency, ora designee, has certified thatthe requested passenger automobiles sedans and station wagons larger thantype ia,', 5107:'ib, or ii small, subcompact, or compactare essential to the agency’smission; 3 internal approvals have been received; and 4 the', 5108:'general services administration has advised that it cannot furnish the vehicles. b with respectto requirementsforleasing motor vehicles for a period', 5109:'of lessthan 60 days, the contracting officer need not obtain the certification specified in 8.1102a 1 if the requirement is', 5110:'for type 1 a, 1 b, or ii vehicles, which are by definition fuel efficient;or 2 if the requirement is', 5111:'for passenger vehicles larger than1 a, 1 b,or ii, and theagency has establishedprocedures for advance approval, on a casebycase basis,', 5112:'of such requirements. c generally, solicitations shall not belimited tocurrent year production models. however, withthe prior approval of the head', 5113:'of the contracting office, solicitations maybe limited to currentmodels on thebasis of overall economy. 8.1103contractrequirements. contracting officersshallinclude the followingitemsin each', 5114:'contract for leasing motorvehicles: a scope of contract. b method of computing payments. c a listing of the number and', 5115:'type of vehicles required, and the equipment and accessories to be provided with each vehicle. d responsibilities of the contractor', 5116:'or the government for furnishing gasoline, motor oil, antifreeze, and similar items. e unless it is determined that it will', 5117:'be more economical for the government to perform the work, a statement that the contractor shall perform all maintenance on', 5118:'the vehicles. f a statement as to the applicability of pertinent state and local laws and regulations, and the responsibility', 5119:'of each party for compliance with them. g responsibilities of the contractor or the governmentforemergency repairs and services. 8.1104 contract', 5120:'clauses. insert the following clauses in solicitations and contracts for leasing of motor vehicles, unless the motor vehicles are leased', 5121:'in foreign countries: a the clause at 52.2084, vehicle lease payments. b the clause at 52.2085, condition of leased vehicles.', 5122:'c the clause at 52.2086, marking of leased vehicles. d a clause substantially the same as the clause at 52.2087,', 5123:'tagging of leasedvehicles, for vehicles leasedover 60days see subpart b of 41 cfr part 10234. 8.1104 federal acquisition regulation e', 5124:'theprovisionsandclauses prescribed elsewhere inthe far for solicitations and contracts for supplies when a fixed price contract is contemplated, but excluding', 5125:'1 the clause at 52.21116, variation in quantity; 2 the clause at 52.2321, payments; 3 the clause at 52.22220, contracts', 5126:'for materials, supplies, articles, and equipment; and 4 the clause at 52.24616, responsibility for supplies. part 9 contractor qualifications sec.', 5127:'9.000 scope of part. subpart 9.2 qualifications requirements 9.200 scope of subpart. subpart 9.1 responsible 9.201 definitions. prospective contractors 9.202', 5128:'policy. 9.100 scope of subpart. 9.203 qpl’s, qml’s, and qbl’s. 9.101 definitions. 9.204 responsibilities for establishment of a 9.102 applicability.', 5129:'qualification requirement. 9.103 policy. 9.205 opportunity for qualification before award. 9.104 standards. 9.206 acquisitions subject to qualification 9.1041 general standards.', 5130:'requirements. 9.1042 special standards. 9.2061 general. 9.1043 application of standards. 9.2062 contract clause. 9.1044 subcontractor responsibility. 9.2063 competition. 9.1045 representation', 5131:'and certifications regarding 9.207 changes in status regarding qualification responsibility matters. requirements. 9.1046 federal awardee performance and integrity information system.', 5132:'subpart 9.3 first article 9.1047 solicitation provisions and contract clauses. testing and approval 9.105 procedures. 9.301 definition. 9.1051 obtaining information.', 5133:'9.302 general. 9.1052 determinations and documentation. 9.303 use. 9.1053 disclosure of preaward information. 9.304 exceptions. 9.106 preaward surveys. 9.305 risk.', 5134:'9.1061 conditions for preaward surveys. 9.306 solicitation requirements. 9.1062 requests for preaward surveys. 9.307 government administration procedures. 9.1063 interagency preaward', 5135:'surveys. 9.308 contract clauses. 9.1064 reports. 9.3081 testing performed by the contractor. 9.107 surveys of nonprofit agencies participating in 9.3082', 5136:'testing performed by the government. the abilityone program. 9.108 prohibition on contracting with inverted domestic corporations. 9.1081 definitions. 9.1082 prohibition.', 5137:'9.1083 representation by the offeror. 9.1084 waiver. 9.1085 solicitation provision and contract clause. 9.109 prohibition on contracting with an entity', 5138:'involved in activities that violate arms control treaties or agreements with the united states. 9.1091 authority. 9.1092 prohibition. 9.1093 exception.', 5139:'9.1094 certification by the offeror. 9.1095 solicitation provision. 9.110 reserve officer training corps and military recruiting on campus. 9.1101 definitions.', 5140:'9.1102 authority 9.1103 policy. 9.1104 procedures. 9.1105 contract clause. subpart 9.4 debarment, subpart 9.5 organizational and suspension, and ineligibility consultant', 5141:'conflicts of interest 9.400 scope of subpart. 9.500 scope of subpart. 9.401 applicability. 9.501 definition. 9.402 policy. 9.502 applicability. 9.403', 5142:'definitions. 9.503 waiver. 9.404 exclusions in the system for award 9.504 contracting officer responsibilities. management. 9.505 general rules. 9.405 effect', 5143:'of listing. 9.5051 providing systems engineering and technical 9.4051 continuation of current contracts. direction. 9.4052 restrictions on subcontracting. 9.5052 preparing', 5144:'specifications or work statements. 9.406 debarment. 9.5053 providing evaluation services. 9.4061 general. 9.5054 obtaining access to proprietary information. 9.4062 causes', 5145:'for debarment. 9.506 procedures. 9.4063 procedures. 9.507 solicitation provisions and contract clause. 9.4064 period of debarment. 9.5071 solicitation provisions. 9.4065', 5146:'scope of debarment. 9.5072 contract clause. 9.407 suspension. 9.508 examples. 9.4071 general. 9.4072 causes for suspension. subpart 9.6 contractor team', 5147:'arrangements 9.4073 procedures. 9.601 definition. 9.4074 period of suspension. 9.602 general. 9.4075 scope of suspension. 9.603 policy. 9.408 [reserved] 9.604', 5148:'limitations. 9.409 contract clause. subpart 9.7 defense production pools and research and development pools 9.701 definition. 9.702 contracting with pools.', 5149:'9.703 contracting with individual pool members. subpart 9.1 responsible prospective contractors 9.1041 9.000scope of part. this part prescribes policies, standards,', 5150:'and procedures pertaining to prospective contractors’ responsibility; debarment, suspension, and ineligibility; qualified products; first article testing and approval; contractor team', 5151:'arrangements; defense production pools and research and development pools;and organizational conflictsof interest. subpart 9.1 responsible prospective contractors 9.100scope of subpart.', 5152:'this subpart prescribes policies, standards, and procedures for determining whether prospective contractors and subcontractors are responsible. 9.101definitions. administrative proceeding means', 5153:'a nonjudicial process that is adjudicatory in nature in order to make a determination of fault or liability e.g., securities', 5154:'and exchange commission administrative proceedings, civilian board of contract appeals proceedings, and armed services board of contract appeals proceedings. this', 5155:'includes administrative proceedings at the federal and state level but only in connections with performance of a federal contract or', 5156:'grant. it does not include agency actions such as contract audits, site visits, corrective plans, or inspection of deliverables. surveying', 5157:'activity, as used inthissubpart, means the cognizant contract administration office or,if there is no such office, anotherorganization designated by theagency', 5158:'to conduct preaward surveys. 9.102 applicability. a this subpart applies to all proposed contracts with any prospective contractor that is', 5159:'located 1 in the united states or its outlying areas; or 2 elsewhere, unless application of the subpart would be', 5160:'inconsistent with the laws or customs where the contractor is located. b this subpart does not apply to proposed contracts', 5161:'with 1 foreign, state, or local governments; 2 other u.s. government agencies or their instrumentalities; or 3 agencies for people', 5162:'who are blind or severely disabled see subpart 8.7. 9.103 policy. a purchases shall bemade from, and contractsshallbe awarded to,', 5163:'responsible prospective contractorsonly. b no purchaseor award shall be madeunlessthe contracting officer makes an affirmative determination of responsibility. in the', 5164:'absence of information clearly indicating that the prospective contractoris responsible, the contracting officer shall make a determination of nonresponsibility. if', 5165:'the prospective contractor is a small business concern, the contractingofficershallcomplywith subpart 19.6,certificatesofcompetencyanddeterminationsofresponsibility. if section 8a of the small business act', 5166:'15 u.s.c. 637 applies, see subpart 19.8. c the award of a contract to a supplier based on lowest evaluated', 5167:'price alone can be false economy if there is subsequent default, late deliveries, or other unsatisfactory performance resulting in additional', 5168:'contractual or administrative costs. while it is important that government purchases be made at the lowest price, this does not', 5169:'require an award to a supplier solely because that supplier submits the lowestoffer. a prospectivecontractor mustaffirmatively demonstrate its responsibility, including,', 5170:'whennecessary, the responsibility of its proposed subcontractors. 9.104standards. 9.1041 general standards. to be determined responsible, a prospectivecontractor must a have', 5171:'adequate financial resources to perform the contract, or the ability to obtain them see 9.1043a; b be able to comply', 5172:'with the required or proposed delivery or performance schedule, taking into consideration all existing commercial and governmental business commitments; c', 5173:'have a satisfactory performance record see 9.1043 b and subpart 42.15. a prospective contractor shall not be determined responsible or', 5174:'nonresponsible solely onthe basis of a lack of relevant performance history, except as provided in 9.1042; federal acquisition regulation d', 5175:'have a satisfactory record of integrity and business ethics for example, see subpart 42.15; e have the necessary organization, experience,', 5176:'accounting and operationalcontrols, andtechnicalskills, or the ability to obtain them including, as appropriate, such elements as production control procedures, property', 5177:'control systems, quality assurance measures, and safety programs applicable to materials to be produced or services to be performed by', 5178:'the prospective contractor and subcontractors. see 9.1043a. f have the necessary production, construction, and technical equipment and facilities, or the', 5179:'ability to obtain them see 9.1043a; and g be otherwise qualified and eligible to receive an award under applicable laws', 5180:'and regulations see also inverted domestic corporation prohibition at 9.108. 9.1042 special standards. a when it is necessary for aparticular', 5181:'acquisition orclass of acquisitions, the contracting officershalldevelop, with the assistance of appropriate specialists,special standards of responsibility. special standardsmay be particularlydesirable', 5182:'when experience has demonstrated that unusual expertise or specialized facilities are needed for adequate contract performance. the special standardsshallbe set', 5183:'forth inthe solicitationand so identified and shall apply to all offerors. b contracting officersshallaward contracts for subsistence only tothose prospective', 5184:'contractors that meet the general standards in 9.1041 and are approved in accordance with agency sanitation standards and procedures. 9.1043', 5185:'application of standards. a ability to obtain resources. except to the extentthat a prospectivecontractor hassufficient resourcesor proposes to perform the', 5186:'contract by subcontracting, thecontracting officer shall requireacceptable evidence of the prospective contractor’s ability to obtain required resources see 9.1041a, e,', 5187:'and f. acceptable evidence normally consists of a commitment or explicit arrangement, that will be in existence at the time', 5188:'of contract award, to rent, purchase, or otherwise acquire the needed facilities, equipment, other resources, or personnel. considerationof aprimecontractor’scompliance with', 5189:'limitations on subcontracting shall take into account the time period covered by the contract base period or quantities plus option', 5190:'periods or quantities, if such optionsare considered when evaluating offers for award. b satisfactory performance record. a prospective contractor that', 5191:'is or recently has been seriously deficient in contract performanceshallbe presumedto benonresponsible,unlessthe contracting officer determines that thecircumstances were properly beyond', 5192:'the contractor’s control, or thatthe contractor has taken appropriate correctiveaction. past failure to apply sufficienttenacity and perseverance to perform acceptably', 5193:'is strong evidence ofnonresponsibility. failure to meet the quality requirements of the contract is a significant factor to consider in', 5194:'determining satisfactory performance. the contracting officershallconsider the number of contracts involved and theextent of deficient performance in each contract when', 5195:'making this determination. if the pending contract requires a subcontracting plan pursuant to subpart 19.7, the small business subcontracting program,', 5196:'the contracting officer shall also consider the prospective contractor’s compliancewith subcontracting plans under recent contracts. c 1 affiliated concerns. affiliated', 5197:'concerns see concern in 19.001 and small business concern in 2.101 are normally considered separate entities in determining whether the', 5198:'concern that is to perform the contract meets the applicable standards for responsibility. however,the contracting officershallconsider the affiliate’s past performance', 5199:'and integrity when theymay adverselyaffect the prospective contractor’s responsibility. 2 joint ventures. fora prospective contractor that is a joint venture,the', 5200:'contracting officer shall consider the past performanceof the joint venture. if the joint venture does notdemonstrate past performance for award,', 5201:'the contractingofficer shall consider the past performance of each party to the joint venture. d 1 small business concerns. upon', 5202:'making a determination of nonresponsibility with regard to a small business concern, the contracting officer shall refer thematter tothe small', 5203:'business administration, which will decide whether to issue a certificate of competency see subpart 19.6. 2 limitations on subcontracting. a', 5204:'small business that is unable to comply with the limitations on subcontracting may be considered nonresponsible see 52.2193, notice of', 5205:'hubzone setaside or sole source award; 52.2194, notice of price evaluation preference for hubzone small business concerns; 52.21914, limitations on', 5206:'subcontracting; 52.21927,notice of setasidefor, or solesource award to, servicedisabledveteranowned small business sdvosb concerns eligible under the sdvosb program; 52.21929, notice', 5207:'of setaside for, orsolesource award to, economically disadvantaged womenowned small business concerns;and 52.21930,notice of setasidefor, or sole source award to,womenowned', 5208:'small business concerns eligibleunderthe womenowned small business program. a small businessthat has not agreed to comply with the limitations on', 5209:'subcontracting may be considered nonresponsive. subpart 9.1 responsible prospective contractors 9.1046 9.1044 subcontractor responsibility. a generally, prospective prime contractors areresponsiblefordetermining', 5210:'the responsibility oftheir prospective subcontractors but see 9.405 and 9.4052 regarding debarred, ineligible, or suspended firms. determinations of prospective subcontractor', 5211:'responsibility may affect thegovernments determination of the prospective prime contractors responsibility. a prospective contractor may berequired to providewritten evidence of', 5212:'a proposed subcontractors responsibility. b when it is in the government’s interestto do so, thecontracting officer may directly determine aprospective', 5213:'subcontractor’s responsibility e.g., when the prospective contract involves medical supplies, urgentrequirements, or substantial subcontracting. in this case, the same standards', 5214:'used to determine a prime contractor’s responsibility shall be usedby the government to determinesubcontractorresponsibility. 9.1045 representation andcertificationsregarding responsibility matters. a', 5215:'when an offeror provides an affirmative response in paragraph a1 of the provision at 52.2095, certification regarding responsibility matters, or', 5216:'paragraph h of provision 52.2123,the contracting officer shall 1 promptly, upon receipt of offers, request suchadditional information from the offeror', 5217:'as theofferor deems necessaryin order to demonstrate the offeror’s responsibility to the contracting officer but see 9.405; and 2 notify,', 5218:'priorto proceeding with award, in accordancewith agency procedures see 9.4063a and 9.4073a, theagency official responsible for initiating debarment orsuspension action,', 5219:'where anofferor indicates the existence of an indictment, charge, conviction, or civil judgment, or federaltax delinquency in an amount that', 5220:'exceeds $10,000. b the provision at 52.20911,representationby corporations regarding delinquent tax liability or a felony conviction under anyfederal law, implements', 5221:'sections 744 and 745 of division e of the consolidatedand further continuing appropriations act,2015 pub. l. 113235 and similar provisionsin', 5222:'subsequent appropriations acts. when an offeror provides an affirmative response inparagraph b1or 2 of theprovision at 52.20911 or paragraph q2i', 5223:'or ii of provision 52.2123, thecontracting officer shall– 1 promptly, upon receipt of offers, request suchadditional information from the offeror', 5224:'as theofferor deems necessaryin order to demonstrate the offerors responsibilityto thecontracting officer but see 9.405; 2 notify, in accordancewith agency', 5225:'procedures see 9.4063a and 9.4073a, the agency officialresponsible for initiating debarment or suspension action; and 3 not award to the', 5226:'corporation unless an agency suspendingor debarring official has consideredsuspension or debarment of the corporation and made a determination that suspension', 5227:'or debarment is not necessary to protect the interests of the government. c if the provision at 52.20912, certification regarding', 5228:'tax matters, is applicable see 9.1047e, then the contracting officer shall notaward any contract in an amount greater than $5.5', 5229:'million, unless theofferor affirmatively certified in its offer, as required by paragraph b1, 2, and 3 of the provision. d', 5230:'offerorswho do not furnish the representation or certifications or such information as may be requested by thecontracting officer shall be', 5231:'given an opportunity to remedy the deficiency. failure to furnish the representationor certifications orsuch information may renderthe offeror nonresponsible. 9.1046', 5232:'federal awardee performance and integrity informationsystem. a 1beforeawardingacontractinexcessofthesimplifiedacquisitionthreshold,thecontractingofficershallreview theperformance and integrity information available inthe federalawardee performance andintegrity informationsystem fapiis, availableat', 5233:'https://www.cpars.gov,including fapiis information from the system for award management sam exclusions and the contractor performance assessment reporting system cpars. 2', 5234:'in accordance with 41 u.s.c. 2313d3, fapiis also identifies– ian affiliate that is an immediate owner or subsidiary of theofferor,', 5235:'if any see 52.20417, ownership or control of offeror; and iiall predecessors of the offeror that held a federal contract', 5236:'or grant within the last three years see 52.20420, predecessorof offeror. b 1whenmakingaresponsibilitydetermination,thecontractingofficershallconsideralltheinformationavailable through fapiis with regard to the offeror', 5237:'andanyimmediateowner, predecessor, or subsidiary identifiedforthat offeror in fapiis,aswellasotherpastperformanceinformationontheofferorsee subpart 42.15. 2 for evaluation of information available through fapiis relating to', 5238:'an affiliate of the offeror,see 9.1043c. federal acquisition regulation 3 for source selection evaluations of past performance, see 15.305a2. contracting', 5239:'officers shall usesound judgment in determining theweight and relevance of the information contained in fapiis and how it relates tothe', 5240:'present acquisition. 4 since fapiis may contain information on any ofthe offerors previous contracts and information covering a fiveyear period,', 5241:'some ofthat information may notbe relevant to a determination of present responsibility, e.g., a prior administrative action such as debarment', 5242:'or suspension that has expired or otherwise been resolved, or information relating to contracts for completely different productsor services 5', 5243:'because fapiisis adatabase thatprovides information about prime contractors, the contracting officer posts information required to be postedabout a subcontractor,such as', 5244:'trafficking inpersons violations, to the record of the prime contractor see 42.1503h1v. the prime contractor has the opportunity to postin', 5245:'fapiis anymitigating factors. the contractingofficer shall consider any mitigating factors posted in fapiis by the prime contractor,such as degree of', 5246:'complianceby the prime contractor with the termsof far clause 52.22250. c if the contracting officerobtains relevant information from fapiis regarding', 5247:'criminal,civil, or administrative proceedings in connection with the award or performance of a government contract; terminations for default or cause;', 5248:'determinations of nonresponsibility because the contractor does not have a satisfactory performance record or a satisfactory recordof integrity and business', 5249:'ethics; or comparable information relating to a grant, the contracting officer shall, unless the contractor has already been debarred or', 5250:'suspended 1 promptly request such additional information from theofferor as the offeror deems necessary in order to demonstrate the offeror’sresponsibilityto', 5251:'the contracting officer but see 9.405; and 2 notify, priorto proceeding with award, in accordancewith agency procedures see 9.4063a and', 5252:'9.4073a, theagency official responsible for initiating debarment orsuspension action, ifthe information appears appropriate for the official’s consideration. d the contractingofficer', 5253:'shall document the contract file for each contract inexcess of the simplified acquisition threshold to indicatehow the information in fapiis', 5254:'wasconsidered in any responsibility determination, as well as the action that was taken as a result of theinformation. a contractingofficer', 5255:'who makesa nonresponsibility determination is required to document that information in fapiis in accordance with 9.1052b2. 9.1047 solicitation provisions and', 5256:'contract clauses. a thecontracting officer shall insert the provision at 52.2095, certification regarding responsibility matters, in solicitations where the contract', 5257:'value is expected to exceed the simplified acquisition threshold. b the contractingofficer shall insertthe provisionat 52.2097, information regarding responsibility matters,', 5258:'in solicitations where the resultant contract value is expected to exceed $600,000. c thecontracting officer shall insert the clause at', 5259:'52.2099, updates of publicly availableinformation regarding responsibility matters 1 in solicitations where the resultant contract value is expected to exceed', 5260:'$600,000; and 2 in contractsin whichthe offerorchecked has inparagraph b ofthe provisionat 52.2097. d the contractingofficer shall insertthe provision 52.20911,', 5261:'representation bycorporations regarding delinquent tax liability or a felonyconviction under any federal law, in all solicitations. e for agencies receiving', 5262:'funds subject to section 523 of division b of the consolidated and further continuing appropriations act, 2015pub. l. 113235 and', 5263:'similar provisions in subsequent appropriationsacts,the contracting officer shall insert theprovision 52.20912, certification regarding tax matters, in solicitations for which the', 5264:'resultant contract including options may have a value greater than $5.5 million. division b of the consolidated and continuing further', 5265:'appropriations act, 2015 appropriates funds for the following agencies: the department of commerce, the department of justice, the national aeronautics', 5266:'and space administration, the office of science and technology policy, the national science foundation, the commission on civil rights, the', 5267:'equal employment opportunity commission, the u.s. international trade commission, the legalservices corporation,the marine mammalcommission, the office of the united states', 5268:'trade representative, and the statejustice institute. 9.105 procedures. 9.1051 obtaining information. a before making a determination of responsibility, the contracting', 5269:'officer shall possessor obtain information sufficient to be satisfied that a prospective contractor currently meets the applicable standards in 9.104.', 5270:'subpart 9.1 responsible prospective contractors 9.1052 b 1generally,thecontractingofficershallobtaininformationregardingtheresponsibilityofprospectivecontractors, including requesting preaward surveys when necessary see 9.106, promptlyafter abid opening or', 5271:'receipt of offers. however, in negotiated contracting, especially whenresearch and developmentis involved, thecontracting officer may obtain this information before issuing', 5272:'the request for proposals. requests for information shall ordinarily be limited to information concerning i the low bidder; or iithose', 5273:'offerors inrange for award. 2 preaward surveys shall be managed andconductedby the surveyingactivity. iif the surveying activity is a contract', 5274:'administrationoffice athat office shall advise the contractingofficer on prospectivecontractors’ financial competence and credit needs; and b the administrative contracting officershallobtain', 5275:'from the auditor any information requiredconcerning the adequacy of prospective contractors’ accounting systems and these systems’ suitability for use in', 5276:'administering the proposed type of contract. iiif the surveying activity is not a contract administration office, the contracting officer shall', 5277:'obtain from the auditor any information required concerning prospective contractors’ financial competence and credit needs, the adequacy of their accounting', 5278:'systems, and these systems’ suitability for use in administering the proposed type of contract. 3 information on financial resources and', 5279:'performance capability shall be obtained or updated on as current a basis as is feasible up to the date of', 5280:'award. c inmaking the determination of responsibility,the contracting officershallconsider information available through fapiis see 9.1046 withregard to the offeror and', 5281:'any immediate owner, predecessor, or subsidiary identified for that offeror in fapiis, including information that islinkedto fapiis such as from', 5282:'sam, and cpars, as well asanyother relevantpastperformanceinformationontheofferorsee 9.1041c and subpart 42.15. inaddition,thecontractingofficer should use the following sources of information to', 5283:'support such determinations: 1 records and experience data, including verifiable knowledgeof personnel within thecontracting office, audit offices, contractadministration offices, and', 5284:'other contracting offices. 2 the prospective contractorincluding bid or proposal information including the certification at 52.2095 or 52.2123h see 9.1045,', 5285:'questionnaire replies, financial data, information on production equipment, and personnel information. 3 commercial sources of supplier information of a type', 5286:'offered tobuyersin theprivatesector. 4 preaward survey reports see 9.106. 5 other sources such as publications; suppliers, subcontractors, and customers of', 5287:'the prospective contractor; financial institutions; government agencies; and business and trade associations. d contracting offices and cognizant contract administration officesthat', 5288:'become aware ofcircumstances casting doubt on a contractor’s ability to perform contracts successfully shall promptly exchange relevant information. 9.1052 determinations', 5289:'and documentation. a determinations. 1 the contracting officer’ssigningof acontract constitutes a determination that the prospective contractor is responsible withrespect to', 5290:'that contract. whenan offer on which an award would otherwise be made is rejected because the prospective contractor is found', 5291:'to be nonresponsible, the contracting officer shall make, sign,andplace inthe contract filea determination of nonresponsibility, whichshallstate the basis for the', 5292:'determination. 2 if the contracting officer determines that a responsive small business lacks certain elements of responsibility, the contractingofficershallcomplywiththeproceduresin subpart', 5293:'19.6. when a certificate of competency is issued for a small business concern see subpart 19.6,thecontractingofficershallacceptthesmallbusinessadministration’sdecisiontoissue a certificate of competency', 5294:'and award the contract to the concern. b support documentation. 1 documents andreportssupporting adeterminationof responsibility or nonresponsibility, including anypreaward survey', 5295:'reports, the use offapiis information see 9.1046, and any applicable certificate of competency, must be included in the contract file.', 5296:'2 ithecontractingofficershalldocumentthedeterminationofnonresponsibilityinfapiisavailableat https:// www.cpars.gov if a the contract is valued at more than the simplified acquisition threshold; b the determination', 5297:'of nonresponsibility is based on lack of satisfactory performance record or satisfactory record of integrity and business ethics; and federal', 5298:'acquisition regulation c the small business administration doesnot issue a certificate of competency. iithe contracting officer isresponsible for the timelysubmission,', 5299:'within 3 working days, and sufficiency, and accuracy of the documentation regarding the nonresponsibility determination. iii as required bysection 3010of', 5300:'the supplemental appropriations act, 2010 pub. l. 111212, all information posted in fapiis on or after april15,2011, except past performance', 5301:'reviews, will be publicly available. fapiis consists of two segments athe nonpublicsegment,into which government officials and contractors post information,which can', 5302:'only be viewed by 1 government personnel and authorized users performing business on behalf of the government; or 2 an', 5303:'offeror orcontractor, whenviewing data on itself;and b the publiclyavailable segment, towhich all data in the nonpublic segment of fapiis is', 5304:'automatically transferred after a waiting period of 14 calendar days, except for 1 past performance reviews required by subpart 42.15;', 5305:'2 information that wasentered prior to april 15,2011; or 3 information that iswithdrawnduring the 14calendarday waiting period by the government', 5306:'officialwho posted it in accordance with paragraph b2iv of this section. iv the contracting officer, orany othergovernment official, shall not', 5307:'post any information inthe nonpublic segment offapiis thatis covered by a disclosureexemption under the freedomof information act. ifthe contractor asserts', 5308:'within 7 calendar days, to the government official who postedthe information, that some of the informationposted to the nonpublic segment', 5309:'of fapiisis covered by a disclosureexemption under the freedom of informationact, the government official who posted the information must within', 5310:'7calendar days remove the posting fromfapiis and resolve the issue in accordance with agency freedom of information act procedures, prior', 5311:'to reposting the releasable information. 9.1053 disclosure of preawardinformation. a except as provided in subpart 24.2, freedom of information act,', 5312:'information including the preaward survey report accumulated for purposes of determining the responsibility of a prospective contractor shall not be', 5313:'released or disclosed outside the government. b the contractingofficer may discuss preaward survey information withthe prospective contractor before determining responsibility.', 5314:'after award, the contracting officer or, ifitis appropriate, the head of the surveying activityor adesignee may discuss the findings of', 5315:'the preaward survey with the company surveyed. c preaward survey information may contain proprietary or source selection information and should', 5316:'be marked with the appropriate legend and protected accordingly see 3.1044. 9.106 preaward surveys. 9.1061 conditionsfor preaward surveys. a a', 5317:'preaward survey is normally required only when the information on hand or readily available to the contracting officer, including information', 5318:'from commercial sources, is not sufficient tomake a determinationregarding responsibility. in addition, if the contemplated contract will have a fixed', 5319:'price at or below the simplified acquisition threshold or will involve the acquisition of commercial products or commercial services see', 5320:'part 12,thecontractingofficershouldnotrequesta preaward survey unless circumstances justify its cost. b when acognizant contract administration office becomes aware of a prospective', 5321:'award to acontractor about which unfavorable information exists and no preaward survey has been requested, it shall promptly obtain and', 5322:'transmit details to the contracting officer. c before beginninga preaward survey, the surveying activityshallascertain whether theprospective contractor is debarred, suspended,', 5323:'or ineligible see subpart 9.4. if the prospective contractor is debarred, suspended, or ineligible, the surveying activity shall advise the', 5324:'contracting officer promptly and not proceed with the preaward survey unless specifically requested todo soby the contractingofficer. 9.1062 requests for', 5325:'preaward surveys. the contractingofficer’s request to the surveying activity preaward survey ofprospective contractorgeneral,sf 1403 shall a identify additional factors about', 5326:'which information is needed; subpart 9.1 responsible prospective contractors 9.107 b include the complete solicitation package unless it has previously', 5327:'been furnished, and any information indicating prior unsatisfactory performance by the prospective contractor; c statewhetherthe contracting office will participate in', 5328:'the survey; d specify the date by which the report is required. this date should be consistent with the scope', 5329:'of the survey requested and normally shall allow at least 7 working days to conduct the survey; and e when', 5330:'appropriate, limit the scopeof the survey. 9.1063 interagency preaward surveys. when the contractingoffice and thesurveying activity arein different agencies, the', 5331:'procedures of this section 9.106 and subpart 42.1 shall be followed along with the regulations of the agency in which', 5332:'the surveying activity is located, except that reasonable special requests bythe contracting office shall be accommodated also seesubpart 17.5. 9.1064', 5333:'reports. a the surveying activity shall complete the applicable parts of sf 1403, preaward survey of prospective contractor general; sf', 5334:'1404, preaward survey of prospective contractortechnical; sf 1405, preaward survey of prospective contractorproduction; sf 1406, preaward survey of prospective contractorquality', 5335:'assurance; sf 1407, preaward survey of prospective contractorfinancial capability; and sf 1408, preaward survey of prospective contractoraccounting system; and providea', 5336:'narrative discussion sufficient to support boththe evaluationratings and therecommendations. b when the contractor surveyed is a small business that has', 5337:'received preferential treatment on an ongoing contract under section 8a of the small business act 15 u.s.c. 637 or has', 5338:'received a certificate of competency during the last 12 months, the surveying activity shall consult the appropriate small business administration', 5339:'field office before making an affirmative recommendation regarding the contractor’s responsibility or nonresponsibility. c when a preaward survey discloses previous', 5340:'unsatisfactory performance, the surveying activity shall specify the extent to which the prospective contractor plans, or has taken, corrective action.', 5341:'lack of evidence that past failure to meet contractualrequirements was the prospective contractor’s fault does not necessarily indicate satisfactory performance.', 5342:'the narrative shall report any persistent pattern of need for costly and burdensome government assistance e.g., engineering, inspection, or testing', 5343:'providedin the government’s interest but notcontractually required. d when the surveying activity possesses information that supports a recommendation of complete', 5344:'award without an onsite survey and no special areas for investigation have been requested, the surveying activity may provide a', 5345:'short form preaward survey report. the shortform report shall consist solely of the preaward survey of prospective contractor general, sf', 5346:'1403. sections iii and iv of this form shall be completed and block21 shall be checked to show that the', 5347:'report is a shortform preaward report. 9.107 surveysof nonprofit agencies participating in the abilityone program. a the committee for purchase', 5348:'from people who are blind or severely disabled committee, as authorized by 41 u.s.c. chapter 85, determines what supplies and', 5349:'services federal agencies are required to purchase from abilityone participating nonprofit agencies serving people who are blind or have other', 5350:'severe disabilities see subpart 8.7. the committee is required to find an abilityone participating nonprofit agency capable of furnishing the', 5351:'supplies or services before the nonprofit agency can be designated as a mandatory source under the abilityone program. the committee', 5352:'may request a contracting office to assistin assessing the capabilities of a nonprofit agency. b the contractingoffice, upon requestfrom the', 5353:'committee, shall requesta capability survey from the activity responsible for performing preaward surveys, or notify the committee that the abilityone', 5354:'participating nonprofit agency is capable, with supporting rationale, and that the survey is waived. the capability survey will focus on', 5355:'the technical and production capabilities and applicable preaward survey elements to furnish specific supplies or services being considered for addition', 5356:'to the procurement list. c thecontracting office shall use the standard form 1403 to request a capability survey of organizations', 5357:'employing people who are blind or have other severe disabilities. d the contractingoffice shall furnish acopy ofthe completedsurvey, or notice', 5358:'that theabilityone participating nonprofit agencyis capable and the survey iswaived, to the executive director, committeeforpurchase from people who are blind', 5359:'or severely disabled. federal acquisition regulation 9.108 prohibition on contractingwith inverted domestic corporations. 9.1081 definitions. as used in this section', 5360:'inverted domestic corporation means a foreign incorporated entity that meets the definition of an inverted domestic corporation under 6 u.s.c.', 5361:'395b, applied in accordance with the rules and definitions of 6 u.s.c. 395c. subsidiary means an entity in which more', 5362:'than 50 percent of the entity is owned 1 directly by a parent corporation; or 2 through another subsidiary of', 5363:'a parent corporation. 9.1082 prohibition. a section 745 of divisiondof the consolidatedappropriationsact, 2008 pub. l. 110161 and its successor provisions', 5364:'in subsequent appropriations acts and as extended in continuing resolutions prohibit, on a governmentwide basis, the use of appropriated or', 5365:'otherwise made available funds for contracts with either an inverted domestic corporation, or a subsidiary of such a corporation, except', 5366:'as provided in paragraph b of this section and in 9.1084waiver. b 1 section 745 and its successor provisions include', 5367:'the following exception: this section shall not apply to any federal government contract entered into before the date of the', 5368:'enactment of this act, or to any task order issued pursuant to such contract. 2 to ensure appropriate application ofthe', 5369:'prohibition and this exception, contracting officers should consultwith legal counsel if, during the performance of a contract, a contractor becomes', 5370:'an inverted domestic corporation or a subsidiary of one. 9.1083 representation by the offeror. a inorder to be eligibleforcontract award,', 5371:'an offeror must represent that it is neither an inverted domestic corporation, nor a subsidiary of aninverted domesticcorporation. any offeror', 5372:'thatcannot so represent is ineligibleforaward of a contract, unless waived in accordance with the procedures at 9.1084. b the contractingofficer', 5373:'may rely on an offeror’s representation that it is notan inverteddomestic corporationunlessthe contracting officerhas reasonto question therepresentation. 9.1084 waiver. any', 5374:'agency head may waive the prohibition in subsection 9.1082 and the requirement of subsection 9.1083 for a specific contract ifthe', 5375:'agency head determines in writingthat the waiver is requiredin the interest of nationalsecurity, documents the determination, and reports it to', 5376:'the congress. 9.1085 solicitation provisionand contractclause. the contractingofficer shall a include the provision at 52.2092, prohibition on contracting with inverted', 5377:'domestic corporationsrepresentation, in each solicitation for the acquisition of products or services including construction; and b include the clause at', 5378:'52.20910, prohibition on contracting with inverted domestic corporations, in each solicitation and contract for the acquisition of products or services', 5379:'including construction. 9.109 prohibition on contractingwith anentity involved in activities that violate arms control treatiesor agreements with the united states.', 5380:'9.1091 authority. this section implements 22 u.s.c. 2593e. 9.1092 prohibition. contracting officersshallnot award, renew,or extenda contract for the procurement ofproducts', 5381:'or services with anentity identified as excluded in the system for award management,specifically for this subpart, on thebasis of involvement', 5382:'in activities that violate arms control treaties or agreements with the united states. subpart 9.1 responsible prospective contractors 9.1102 9.1093', 5383:'exception. the prohibition in 9.1092 does not apply to contracts for the procurement of products or services along a major', 5384:'route of supply to a zone of active combat or major contingency operation, as specified in statute or by the', 5385:'cognizant combatant commander, inconsultation with the chief of mission. as of may 10, 2018, countries along themajorrouteof supply to support', 5386:'operations in afghanistanare afghanistan,georgia, the kyrgyzrepublic, pakistan,the republic ofarmenia, therepublic of azerbaijan, the republic of kazakhstan, therepublic of tajikistan, the', 5387:'republicof uzbekistan, and turkmenistan. 9.1094 certification bythe offeror. a inorder to be eligibleforcontract award, an offeror is required to— 1', 5388:'i certify that it does not engage and has not engaged in any activity that contributed to or was a', 5389:'significant factor in the presidents or secretary of states determination that a foreign country is in violation of its obligations', 5390:'undertaken in any arms control, nonproliferation, or disarmament agreement to which theunited statesis aparty, or isnot adhering to its arms', 5391:'control, nonproliferation, or disarmament commitments in which the united states is a participating state. the determinations are described in the', 5392:'most recent unclassified annual report provided to congress pursuant to section 403 of the arms control and disarmament act 22', 5393:'u.s.c. 2593a. the report is available at https://www.state.gov/bureausoffices/ undersecretaryforarmscontrolandinternationalsecurityaffairs/bureauofarmscontrolverificationandcompliance/; and iisimilarly certify with regardto any entityowned or controlled by the', 5394:'offeror; or 2 provide with its offer information that the president of the united states has– iwaivedapplication under 22 u.s.c.', 5395:'2593ed or e; or ii determined under 22 u.s.c. 2593eg2 that the entity has ceased all activities for which measures', 5396:'were imposed under 22 u.s.c. 2593eb. b if certifying in accordance with 52.20913b1,the offeror isrequired to submit the certification with', 5397:'the offer. itis not included in the annual representations andcertifications in the system for award management. c thecontracting officer may', 5398:'rely onan offerors certification unless the contractingofficer hasreason to question the certification. d upon the determination of a false certification', 5399:'under 52.20913, an offeror will be subject tosuch remedies as suspension or debarment under subpart 9.4 shall be for a', 5400:'period of not less than 2 years, inclusive of any suspension period, if suspension precedes a debarment see 9.4064a1iii and', 5401:'a2. 9.1095 solicitation provision. unless the exception at 9.1093 applies,the contracting officer shall include the provision at 52.20913, violation of', 5402:'arms control treaties or agreementscertification,in each solicitation for the acquisitionof products or servicesincluding construction that exceeds the simplified acquisition threshold,', 5403:'other than solicitations for the acquisition of commercial products or commercial services. 9.110 reserveofficertraining corps and military recruiting on campus.', 5404:'9.1101 definitions. as used in this section— covered agency means– 1 the department of defense; 2 any department or agencyforwhich', 5405:'regular appropriations are made in a department of labor, health and human services, and education, and related agencies appropriations act;', 5406:'3 the department of homeland security; 4 the national nuclear security administration of the department of energy; 5 the department', 5407:'of transportation;or 6 the central intelligence agency. institution of higher education means an institution that meets the requirements of 20', 5408:'u.s.c. 1001 and includes all sub elements of such an institution. 9.1102 authority this section implements 10 u.s.c. 983. federal', 5409:'acquisition regulation 9.1103 policy. a except as provided in paragraph b of this section, 10 u.s.c. 983 prohibits the covered', 5410:'agency from providing funds by contract to an institution of higher education if the secretary of defense determines that the', 5411:'institution has a policy or practice that prohibits or ineffect prevents— 1 the secretary of a military department from maintaining,', 5412:'establishing, or operating a unit of the senior reserve officer training corps rotcat that institution; 2 a student at that', 5413:'institution from enrolling in a unit of the senior rotc at another institution of higher education; 3 the secretary of', 5414:'a military department or the secretary of homeland security from gaining access to campuses, or access to students who are', 5415:'17 years of age or older on campuses, for purposes of military recruiting in a manner that is at least', 5416:'equal in quality and scope to the access to campuses and to students that is provided to any other employer;', 5417:'or 4 military recruiters from accessing certain information pertaining to students who are 17 years of age or older enrolled', 5418:'at that institution: i name, address, and telephone listings. ii date and place of birth, educational level, academic majors, degrees', 5419:'received, and the most recent educational institution enrolled in by the student. b the prohibition in paragraph a of this', 5420:'section does not apply to an institution of higher education if the secretary of defense determines that— 1 the institution', 5421:'has ceased the policy or practice described in paragraph a of this section; or 2 the institution hasa longstanding policy', 5422:'of pacifism based on historical religious affiliation. 9.1104 procedures. if the secretary of defense determines, pursuant to the procedures at', 5423:'32 cfr part 216, that an institution of higher education is ineligible to receive funds from a covered agency because', 5424:'of a policy or practice described in 9.1103— a thesecretary of defensewill create anactive exclusion record for the institution in', 5425:'the system for award management; and b a covered agency shall not solicit offers from,award contracts to,or consent tosubcontractswith the', 5426:'institution. the prohibition in this paragraph b does not apply to acquisitions at or below the simplified acquisition threshold or', 5427:'to acquisitionsof commercial products and commercial services,including commercially available offtheshelf items. 9.1105 contract clause. the contractingofficer shall insertthe clause at', 5428:'52.20914,reserve officer training corpsandmilitary recruiting on campus, in solicitations and contracts that are expected to exceed the simplified acquisition threshold,', 5429:'with institutions of higher education, when usingfundsfrom a covered agency. the clause is not prescribedforsolicitationsand contracts using part 12 for', 5430:'the acquisition of commercial products and commercial services. subpart 9.2 qualifications requirements 9.202 subpart 9.2 qualifications requirements 9.200scope of subpart.', 5431:'this subpart implements 10 u.s.c. 3243 and 41 u.s.c.3311 and prescribes policies and procedures regarding qualification requirements and the acquisitions', 5432:'that are subject to such requirements. 9.201definitions. as used in this subpart qualified bidders list qbl means a list of', 5433:'bidders who have had their products examined and tested and who have satisfied all applicable qualification requirements for that product', 5434:'or have otherwise satisfied all applicable qualification requirements. qualified manufacturers list qml means a list of manufacturers who have had', 5435:'their products examined and tested and who have satisfied all applicable qualification requirements for that product. 9.202 policy. a 1', 5436:'the head of the agency or designee shall, before establishing a qualification requirement, prepare a written justification i stating the', 5437:'necessity for establishing the qualification requirement and specifying why the qualification requirement must be demonstrated before contract award; iiestimating thelikely', 5438:'costs for testing and evaluationwhich will beincurred by the potential offeror tobecome qualified; and iii specifying all requirementsthat a potential', 5439:'offerororits product must satisfy in order tobecome qualified. only those requirements which are the least restrictive to meet the purposes', 5440:'necessitating the establishment of the qualification requirements shall be specified. 2 upon request to the contracting activity,potentialofferorsshallbe provided i all', 5441:'requirements that they or their products must satisfy to become qualified; and ii at their expense but see 9.204a2 with', 5442:'regard to small businesses, a prompt opportunity to demonstrate their abilities to meet the standards specified for qualification using qualified', 5443:'personnel and facilities of the agency concerned, or of another agency obtained through interagency agreements or under contract, or other', 5444:'methods approved by the agency including use of approved testing and evaluation services not provided under contract to the agency.', 5445:'3 if the services in paragraph a2ii of this section are provided by contract, the contractors selected to provide testing', 5446:'and evaluation services shall be i those that are not expected to benefit from an absence of additional qualified sources;', 5447:'and iirequiredby their contracts to adhereto any restrictionon technical data asserted by the potential offeror seeking qualification. 4 a potential', 5448:'offeror seeking qualification shall be promptly informed as to whether qualification is attainedand,in the event it is not, promptly furnished', 5449:'specific reasons why qualification was not attained. b when justified under the circumstances, the agency activity responsible for establishing a', 5450:'qualification requirement shall submit to the advocate for competition for the procuring activity responsible for purchasing the item subject to', 5451:'the qualification requirement, a determination that it is unreasonable to specify the standards for qualification which a prospective offeror or', 5452:'its product must satisfy. afterconsidering any comments of the advocate for competition reviewing the determination, the head of the procuring', 5453:'activity may waive the requirements of paragraph a1ii through a4 of this section for up to 2 years with respect', 5454:'to the item subject to the qualification requirement. a copy of the waiver shall be furnishedto theheadof the agency or', 5455:'other official responsible for actions under paragrapha1 of this section. the waiver authority provided in this paragraph does not apply', 5456:'with respect to qualification requirements contained in a qpl, qml, or qbl. c if a potential offeror can demonstrate tothe', 5457:'satisfaction of the contracting officer that the potential offeror or its product meets the standards established for qualification or can', 5458:'meet them before the date specified for award of the contract, apotentialofferor may notbe denied the opportunity to submit and', 5459:'have considered an offer for a contractsolely because the potential offeror 1 is not on a qpl, qml, or qbl', 5460:'maintained by the department of defense dod or the national aeronautics and space administration nasa; or federal acquisition regulation 2', 5461:'has not been identified as meeting a qualification requirement established after october 19,1984, by dod or nasa; or 3 has', 5462:'not been identified as meeting a qualification requirement established by a civilian agency not including nasa. d the procedures in', 5463:'subpart 19.6 for referring matters to the small business administration are not mandatory on thecontracting officer when the basis for', 5464:'a referralwouldinvolve a challengeby the offeror to either the validity ofthe qualificationrequirementor the offeror’scompliance with such requirement. e thecontracting officer', 5465:'need not delay a proposed awardin order to providea potential offeror with an opportunity to demonstrate its ability to meet', 5466:'the standards specified for qualification. in addition, when approved by the head of an agency or designee, a procurement need', 5467:'not be delayed in order to comply with paragraph a of this section. f within 7 years followingenforcement ofa qpl,', 5468:'qml, or qbl by dod or nasa, or within 7 years afterany qualification requirement was originally established by a civilian', 5469:'agency other than nasa, the qualification requirement shall be examined and revalidated in accordance with the requirements of paragraph a', 5470:'of this section. for dod and nasa, qualificationrequirements other than qpl’s, qml’s and qbl’s shall be examined and revalidated within', 5471:'7 years after establishment of the requirement under paragraph a of this section. any periods for which a waiver under', 5472:'paragraph b of this section is in effect shall be excluded in computing the 7 years within which review andrevalidation', 5473:'mustoccur. 9.203 qpl’s, qml’s, and qbl’s. a qualification and listing in a qpl, qml, or qbl is the process by', 5474:'which products are obtained from manufacturers or distributors, examined and tested for compliance with specification requirements, ormanufacturersor potential offerors, are', 5475:'provided an opportunity to demonstrate their abilities to meet the standards specified for qualification. the names of successful products, manufacturers,', 5476:'or potential offerors are included on lists evidencing their status. generally, qualification is performed in advance and independently of any', 5477:'specific acquisition action. after qualification, the products, manufacturers, or potential offerors areincluded in a federal or military qpl, qml, or', 5478:'qbl. see 9.202a2 with regard to any product, manufacturer, orpotentialofferor not yet included onan applicable list. b specifications requiring a', 5479:'qualified product are included 1 in the gsa index of federal specifications, standards and commercial item descriptions; and 2 on', 5480:'the department of defense acquisition streamlining and standardization information system assist website at https://assist.dla.mil. c instructions concerning qualification procedures are', 5481:'included in the following publications: 1 federal standardization manual, fspm0001. 2 department of defense manual 4120.24, defense standardization program dsp', 5482:'procedures, www.esd.whs.mil/ directives/issuances/dodm as amended by military standards 961 and 962 https://assist.dla.mil . d the publications in paragraphs b1 and', 5483:'c1 of this section may be obtained from the address in 11.201d1. 9.204 responsibilities forestablishment of aqualification requirement. the responsibilities', 5484:'of agency activities that establish qualification requirements include the following: a arranging publicity for the qualification requirements. if active competition', 5485:'on anticipated future qualification requirements is likely to be fewer than two manufacturers or the products of two manufacturers, the', 5486:'activity responsible for establishment of the qualification requirements must 1 periodically furnish through the governmentwide point of entry gpe a', 5487:'notice seeking additional sources or products for qualification unless the contracting officer determines that such publicationwouldcompromise thenational security. 2 bear', 5488:'the cost of conducting the specified testing and evaluation excluding the costs associated with producing the item or establishing the', 5489:'production, quality control, or other system to be tested and evaluated for a small business concern or a product manufactured', 5490:'by a small business concern which has met the standards specified for qualification and which could reasonably be expected to', 5491:'compete for acontract for that requirement. however, such costs may be borne only if it is determined in accordance with', 5492:'agency procedures that such additional qualified sources or products are likely to result in cost savings fromincreasedcompetition for future requirements', 5493:'sufficient to amortize the costs incurred bythe agencywithin a reasonable period of time, considering the duration and dollar value of', 5494:'anticipated future requirements. a prospective contractor requesting the united states to bear testing and evaluation costs must certify as to', 5495:'its status as a small business concern under section 3 of the small business act in order to receive further', 5496:'consideration. b qualifying products that meet specification requirements. subpart 9.2 qualifications requirements 9.2061 c listing manufacturers and suppliers whose products', 5497:'are qualified in accordance with agency procedures. d furnishing qpl’s, qml’s, or qbl’s orthe qualification requirements themselvesto prospective offerors and', 5498:'the public upon request see 9.202a2i. e clarifying, as necessary, qualification requirements. f in appropriate cases,when requested by the contractingofficer,', 5499:'providing concurrencein a decision not to enforce a qualification requirement for a solicitation. g withdrawing or omitting qualificationof alistedproduct, manufacturer', 5500:'orofferor,as necessary. h advising persons furnished any list of products, manufacturers or offerors meetinga qualification requirement and suppliers whose products', 5501:'are on any such list that 1 the list does notconstitute endorsement ofthe product, manufacturer, or other sourceby the government;', 5502:'2 the products or sources listed have been qualified under the latest applicable specification; 3 the list may be amended', 5503:'without notice; 4 the listing of a product or source does not release the supplier from compliance with the specification;', 5504:'and 5 use of the list for advertising or publicity is permitted. however, it must not be stated orimpliedthat a', 5505:'particular product or source is the only product or source of that type qualified, or that the government in any', 5506:'way recommends or endorses the products or the sources listed. i reexamining a qualified product or manufacturer when 1 the', 5507:'manufacturer has modified itsproduct, or changed the material or the processing sufficiently so that the validity of previous qualification is', 5508:'questionable; 2 the requirements in the specification have been amended or revised sufficiently to affect the characterof the product; or', 5509:'3 it is otherwise necessary to determine that the quality of the product is maintained in conformance with the specification.', 5510:'9.205 opportunity for qualification before award. a if an agency determines that a qualification requirement is necessary, the agency activity', 5511:'responsible for establishing therequirementmust urge manufacturers and other potential sources to demonstratetheir ability to meet the standards specified for qualification', 5512:'and, when possible,give sufficient time toarrange for qualification before award. the responsible agency activity must, before establishing any qualification requirement,', 5513:'furnish notice through the gpe. the notice must include 1 intent to establish a qualification requirement; 2 the specification number', 5514:'and name of the product; 3 the name and address of the activity to which a request for the information', 5515:'and opportunity described in 9.202a 2 should be submitted; 4 the anticipated date that the agency will begin awarding contracts', 5516:'subject to the qualification requirement; 5 a precautionary notice that when a product is submitted for qualification testing, the applicant', 5517:'must furnish any specific information that may be requested of the manufacturer before testing will begin; and 6 the approximate', 5518:'time period following submission of a product for qualification testing within which the applicant will be notified whether the product', 5519:'passed or failed the qualification testing see 9.202a4. b the activity responsible for establishing a qualification requirement must keep any', 5520:'list maintained of those already qualified open for inclusion of additional products, manufacturers, or other potential sources. 9.206 acquisitions subject', 5521:'to qualification requirements. 9.2061 general. a agencies may not enforce any qpl, qml, or qbl without first complying with the', 5522:'requirements of 9.202a. however, qualification requirementsthemselves, whether or notpreviously embodied in a in a qpl, qml,or qbl, may be enforced', 5523:'without regard to 9.202a if they are in either of the following categories: 1 any qualification requirement established by statute', 5524:'prior to october 30,1984, for civilian agencies not including nasa; or 2 any qualification requirement established by statute or administrative', 5525:'action prior to october 19,1984, for dod or nasa. qualification requirements established after the above dates must comply with 9.202a', 5526:'to be enforceable. federal acquisition regulation b except when the agency head ordesignee determines that an emergency exists, whenever an', 5527:'agency elects, whether before or after award, not to enforce a qualification requirement which it established, the requirement may not', 5528:'thereafter be enforced unless the agency complies with 9.202a. c if a qualification requirement applies, the contracting officer need consider', 5529:'only thoseoffers identified as meeting therequirementor included onthe applicable qpl, qml,or qbl, unless an offeror can satisfactorily demonstrateto the contracting', 5530:'officerthat it or its product or its subcontractor or its productcan meet the standards established for qualification before the date', 5531:'specified for award. d if a product subject to a qualification requirement is to be acquired as a component of', 5532:'an end item, the contracting officer must ensure that all such components andtheir qualification requirements are properly identified in the', 5533:'solicitation since the product or source must meet the standards specified for qualification before award. e inacquisitions subject to qualification', 5534:'requirements, the contracting officer shall take the following steps: 1 use presolicitation notices in appropriate cases to advise potential suppliers', 5535:'before issuing solicitations involving qualification requirements. the notices shall identify the specification containing the qualification requirement and establish anallowable timeperiod,', 5536:'consistent withdelivery requirements, for prospective offerors todemonstrate theirabilities to meet the standards specified for qualification. the notice shall be publicized', 5537:'in accordance with 5.204. whether or not a presolicitation notice is used, the general synopsizing requirements of subpart 5.2apply. 2', 5538:'distribute solicitations to prospective contractors whether or not they have been identified as meeting applicable qualification requirements. 3 when appropriate,', 5539:'request in accordance with agency procedures that a qualification requirement not be enforced in a particular acquisition and, if granted,', 5540:'so specify in the solicitation see 9.2061b. 4 forward requests from potential suppliers for information on a qualification requirement to', 5541:'the agency activity responsible for establishing the requirement. 5 allow the maximum time, consistent with delivery requirements, between issuing the', 5542:'solicitation and the contract award. asa minimum, contracting officersshallcomply with thetime framesspecified in 5.203 when applicable. 9.2062 contract clause. the', 5543:'contractingofficer shall insertthe clause at 52.2091, qualification requirements, in solicitations and contracts when the acquisition is subject to a qualification', 5544:'requirement. 9.2063 competition. a presolicitation.if a qualification requirement applies to an acquisition,the contracting officershallreview the applicable qpl, qml, or qbl', 5545:'or other identification of those sources which have met the requirement before issuing a solicitation to ascertain whether the number', 5546:'of sources is adequate for competition. see 9.204a for duties of the agency activity responsible for establishment of the qualification', 5547:'requirement. if the number of sources is inadequate, the contracting officershallrequest the agency activity whichestablished the requirement to 1 indicate', 5548:'the anticipated date on which any sources presently undergoingevaluation will have demonstrated their abilities to meet the qualification requirement so', 5549:'that the solicitation could be rescheduled to allow as many additional sources as possible to qualify; or 2 indicate whether', 5550:'a means other than the qualification requirement is feasible for testing or demonstrating quality assurance. b post solicitation. the contractingofficer', 5551:'shall submit to the agency activity whichestablished the qualification requirement the names and addresses of concerns which expressed interest in', 5552:'the acquisition but are not included on the applicable qpl, qml, or qbl or identified as meeting the qualification requirement.', 5553:'the activity will then assist interested concerns in meeting the standards specified for qualification see 9.202a2 and 4. 9.207 changes', 5554:'in status regarding qualificationrequirements. a thecontracting officer shall promptly report to the agencyactivity which established the qualification requirement any conditions', 5555:'which may merit removal oromission from a qpl, qml, or qbl or affect whether a source should continue to be', 5556:'otherwise identified as meeting the requirement. these conditions exist when 1 products or services are submitted for inspection or acceptance', 5557:'that do not meet the qualification requirement; 2 products or services were previously rejected and the defects were not corrected', 5558:'when submitted for inspection or acceptance; subpart 9.2 qualifications requirements 9.207 3 a supplier fails to request reevaluation following change', 5559:'of location or ownership of the plant where the product which met the qualification requirement was manufactured see the clause', 5560:'at 52.2091, qualification requirements; 4 a manufacturer of a product which met the qualification requirement has discontinued manufacture of the', 5561:'product; 5 a source requests removal from a qpl, qml, or qbl; 6 a condition of meeting the qualification requirement', 5562:'was violated; e.g., advertising or publicity contrary to 9.204h 5; 7 a revised specification imposes a new qualification requirement; 8', 5563:'manufacturing or design changes have been incorporated in the qualification requirement; 9thesourceislistedinthesystemforawardmanagementexclusionssee subpart 9.4; or 10 performance of a contract', 5564:'subject to a qualification requirement is otherwise unsatisfactory. b after considering any of the above or other conditions reasonably related', 5565:'to whether a product or source continues to meet the standards specified for qualification, an agency may take appropriate action', 5566:'without advance notification. the agency shall,however,promptly notifythe affected parties ifa productor source is removedfrom a qpl, qml, or qbl, or', 5567:'will no longer be identified as meeting the standards specified for qualification. this notice shall contain specific information why the', 5568:'product or source no longer meets the qualification requirement. this page intentionally left blank. subpart 9.3 first article testing and', 5569:'approval 9.306 subpart 9.3 first article testing and approval 9.301definition. approval,as used in this subpart, means the contracting officer’s written', 5570:'notification tothe contractor accepting the test results of the first article. 9.302general. first article testing and approval hereafter referred to', 5571:'as testing and approval ensures that the contractor can furnish a product that conforms to all contract requirements for acceptance.', 5572:'before requiring testing and approval, the contracting officer shall consider the a impact on cost or time of delivery; b', 5573:'risk to the government of foregoing such test; and c availabilityof other, less costly, methods of ensuring the desired quality.', 5574:'9.303use. testing and approval may be appropriatewhen a the contractor has not previously furnished the product to the government; b', 5575:'the contractor previously furnished the product to the government, but 1 there have been subsequent changes in processes or specifications;', 5576:'2 production has been discontinued for an extended period of time; or 3 the product acquired under a previous contract', 5577:'developed a problem during its life; c the product is described by a performance specification; or d it is essential', 5578:'to have an approved first article to serve as a manufacturing standard. 9.304exceptions. normally,testing and approvalis not required in contracts', 5579:'for a research or development; b products requiring qualification before award e.g., when an applicable qualified products list exists see', 5580:'subpart 9.2; c products normally sold in the commercial market; or d products covered by complete and detailed technical specifications,', 5581:'unless the requirements are so novel or exacting that it is questionable whether the products would meet the requirements without', 5582:'testing and approval. 9.305risk. before first article approval, the acquisition of materials or components, or commencement of production, is normally', 5583:'at the sole risk of the contractor. to minimize this risk, the contracting officershallprovide sufficienttime in the delivery schedule for', 5584:'acquisition of materials and components, and for production after receipt of first article approval. when government requirementspreclude this action, thecontracting', 5585:'officer may, before approval ofthe first article, authorize the contractor to acquire specific materials or components or commence production to', 5586:'the extent essential to meet the delivery schedule see alternate ii of the clause at 52.2093, first article approvalcontractor testing,', 5587:'andalternate ii ofthe clause at 52.2094, first articleapprovalgovernment testing. costs incurred based on this authorization areallocableto the contract for— a', 5588:'progress payments; and b terminationsettlements if the contract is terminated for the convenience of the government. 9.306 solicitation requirements. solicitations', 5589:'containing a testing and approval requirement shall a provide, in the circumstance where the contractor is to be responsible for', 5590:'the first article approval testing 1 the performance or other characteristics that the first article must meet for approval; 2', 5591:'the detailed technical requirements for the tests that must be performed for approval; and 3 the necessary data that must', 5592:'be submitted to the government in the first article approval test report; b provide, in the circumstance where the government', 5593:'is to be responsible for the first article approval testing 1 the performance or other characteristics that the first article', 5594:'must meet for approval; and 2 the tests to which the first article will be subjected for approval; federal acquisition', 5595:'regulation c informofferorsthat therequirementmay be waived when supplies identical or similar to those called for have previouslybeendelivered by the offeror', 5596:'and accepted by the government see 52.2093h and 52.2094i; d permit the submission of alternative offers,one including testing and approval', 5597:'and theotherexcluding testing and approval if eligible under paragraph c of this section; e stateclearly the first article’s relationship to', 5598:'the contract quantity seeparagraph eof the clause at 52.2093, first article approvalcontractor testing, or 52.2094, first articleapprovalgovernment testing; f contain', 5599:'a delivery schedule for the production quantity see 11.403. the delivery schedule may 1 be the same whether or not', 5600:'testing and approval is waived; or 2 provide for earlier delivery when testing and approval is waived and the government', 5601:'desires earlierdelivery. in the latter case,any resulting differencein delivery schedules shall not be afactorin evaluationforaward. the clause at 52.2094, firstarticle', 5602:'approvalgovernment testing, shall contain the delivery schedule for the first article; g provide for thesubmission of contract numbers, if any,', 5603:'todocument the offeror’seligibility under paragraph c ofthis section; h state whether the approved first article will serve as a manufacturing', 5604:'standard; iinclude, when thegovernment is responsible for first articletesting, the government’s estimated testing costs as a factor for use in', 5605:'evaluating offerswhenappropriate; and jinform offerors that the prices for first articles and first article testsin relation to production quantities shall', 5606:'not be materially unbalanced see 15.4041g if first article test items or tests are to be separately priced. 9.307 government', 5607:'administration procedures. a before the contractor ships the first article, or the first article test report, to the government laboratory', 5608:'or other activity responsible for approval at the address specifiedin thecontract, the contractadministration office shall provide thatactivity with as much', 5609:'advance notification as is feasible of the forthcoming shipment, and 1 advise that activity of the contractual requirements for testing', 5610:'and approval, or evaluation, as appropriate; 2 call attention to the notice requirement in paragraph b of the clause at', 5611:'52.2093, first article approvalcontractor testing, or 52.2094, first articleapprovalgovernment testing; and 3 request that the activityinform thecontract administration office of', 5612:'the datewhen testingor evaluation willbe completed. b the government laboratory or other activity responsible for first article testing or evaluation', 5613:'shall inform the contracting office whether to approve, conditionally approve, ordisapprove the first article. the contracting officer shall then notify', 5614:'the contractorof the actiontakenand furnisha copy of the notice tothe contract administrationoffice. the notice shall include the first article shipment', 5615:'number, when available, and theapplicable line itemnumber. any changes in the drawings, designs,or specifications determinedby the contracting officerto benecessary shall', 5616:'be madeunder thechanges clause, and not bythe notice of approval, conditional approval, or disapproval furnished the contractor. 9.308contract clauses. 9.3081', 5617:'testing performed bythe contractor. a 1thecontractingofficershallinserttheclauseat 52.2093,firstarticleapprovalcontractortesting,in solicitations and contracts when a fixedprice contract is contemplated and it is intended', 5618:'that the contract require i first article approval; and ii that the contractor be required to conduct the first article', 5619:'testing. 2 if it is intended that the contractor be required to produce the first article and the production quantity', 5620:'at the same facility, thecontracting officer shall use the clause with its alternate i. 3 if it is necessary to', 5621:'authorize the contractor to purchase material or to commence production before first article approval, thecontracting officer shall use the clause', 5622:'with its alternate ii. b 1thecontractingofficershallinsertaclausesubstantiallythesameastheclauseat 52.2093, first article approval —contractor testing, in solicitations andcontracts when a costreimbursement contractis contemplated', 5623:'and it isintended that the contract require i first article approval and ii that the contractor be required to conduct', 5624:'the first article test. subpart 9.3 first article testing and approval 9.3082 2 if it is intended that the contractor', 5625:'be required to produce the first article and the production quantity at the same facility, thecontracting officer shall use aclause', 5626:'substantially the same as the clauseat 52.2093, first article approval— contractor testing,with its alternate i. 3 if it is necessary', 5627:'to authorize the contractor to purchase material or to commence production before first article approval, thecontracting officer shall use aclause', 5628:'substantially the same as the clause at 52.2093, first article approval— contractor testing,with its alternate ii. 9.3082 testing performed bythe', 5629:'government. a 1thecontractingofficershallinserttheclauseat 52.2094,firstarticleapprovalgovernmenttesting,in solicitations and contracts when a fixedprice contract is contemplated and it is intended that the contract', 5630:'require first article approval and that the government will be responsible for conducting the first article test. 2 if it', 5631:'is intended that the contractor be required to produce the first article and the production quantity at the same facility,', 5632:'thecontracting officer shall use the basic clause with its alternatei. 3 if it is necessary to authorize the contractor to', 5633:'purchase material or to commence production before first article approval, thecontracting officer shall use the basic clause with its alternateii.', 5634:'b 1thecontractingofficershallinsertaclausesubstantiallythesameastheclauseat 52.2094, first article approval government testing, in solicitations and contracts when a costreimbursement contractis contemplated and it is', 5635:'intended that the contract require first article approval and that the government be responsible for conducting the first article test.', 5636:'2 if it is intended that the contractor be required to produce the first article and the production quantity at', 5637:'the same facility, thecontracting officer shall use aclause substantially the same as the clauseat 52.2094, first article approval government testing,', 5638:'withits alternate i. 3 if it is necessary to authorize the contractor to purchase material or to commence production before', 5639:'first article approval, thecontracting officer shall use aclause substantially the same as the clause at 52.2094, first article approval government', 5640:'testing, withits alternate ii. this page intentionally left blank. subpart 9.4 debarment, suspension, and ineligibility 9.403 subpart 9.4 debarment, suspension,', 5641:'and ineligibility 9.400scope of subpart. a this subpart 1 prescribes policies and procedures governing the debarment and suspension of contractors', 5642:'by agencies for the causes given in 9.4062 and 9.4072; 2 provides for the listing of contractors debarred, suspended, proposed', 5643:'for debarment, and declared ineligible see the definition of ineligible in 2.101; and 3 sets forth the consequences of this', 5644:'listing. b although this subpart does cover the listing of ineligible contractors 9.404 and the effect of this listing 9.405,', 5645:'it does not prescribe policies and procedures governing declarations of ineligibility except for contractors that have been declared ineligible pursuant', 5646:'to 10 u.s.c. 983 see 9.110, and 9.4051b. c for federal acquisition supplychain securityactfascsaorders, see subpart 4.23. 9.401 applicability. in', 5647:'accordance with public law 103355, section 2455 31 u.s.c.6101, note, and executive order 12689, any debarment, suspension or other governmentwide', 5648:'exclusion initiated under the nonprocurement common rule implementing executive order 12549 onor after august25,1995, shall be recognized by andeffective for', 5649:'executive branch agencies as a debarment or suspension under this subpart. similarly, any debarment, suspension,proposed debarment or other governmentwide exclusion', 5650:'initiated onor after august25,1995, under thissubpartshallalso be recognized by and effective for those agencies and participants as an exclusion under', 5651:'the nonprocurement common rule. 9.402 policy. a agencies shall solicit offers from, awardcontracts to, and consent to subcontracts with responsible', 5652:'contractorsonly. debarment and suspension are discretionary actions that, taken in accordance with this subpart, are appropriate means to effectuate this', 5653:'policy. b the serious nature of debarment and suspension requires that these sanctions be imposed only in the public interest', 5654:'for thegovernment’s protectionand not for purposes of punishment. agencies shall impose debarmentor suspension to protect thegovernment’s interest and only for', 5655:'thecausesand in accordance with the procedures set forth in thissubpart. c agencies are encouraged to establish methods and procedures for', 5656:'coordinating their debarment or suspension actions. d when more than one agencyhas an interestin thedebarment or suspension of a contractor,', 5657:'the interagency committee on debarment and suspension, established under executive order 12549, and authorized by section 873 of the national', 5658:'defense authorization act for fiscalyear 2009 pub. l. 110417 31 u.s.c.6101, note, shall resolve the lead agency issue and coordinate', 5659:'such resolution among all interested agencies prior to the initiation of any suspension, debarment, or related administrative action by any', 5660:'agency. e agencies shall establish appropriate procedures to implement the policies and procedures of this subpart. 9.403definitions. as used in', 5661:'this subpart— affiliates.– 1 business concerns,organizations, orindividuals are affiliates of eachotherif, directly or indirectly– i either one controls or has', 5662:'the power to control the other; or ii a third party controls or has the power to control both. 2', 5663:'indicia of control include, but are not limited to, interlocking management or ownership, identity of interests among family members, shared', 5664:'facilities and equipment,common useof employees,or abusinessentity organizedfollowing the debarment, suspension, or proposed debarment of a contractor which has the same', 5665:'or similar management, ownership, or principal employees as the contractor that was debarred, suspended, or proposed for debarment. agency means', 5666:'any executive department, military department or defense agency, or other agency or independent establishment of the executive branch. civil judgment', 5667:'means ajudgment or findingof acivil offense by any court of competentjurisdiction. contractor means any individual or other legal entity that–', 5668:'federal acquisition regulation 1 directly or indirectly e.g., through an affiliate, submits offers for or is awarded, or reasonably may', 5669:'be expected to submitoffers for or be awarded,a government contract, including a contract for carriage under government orcommercial bills of', 5670:'lading, or a subcontract under a government contract; or 2 conducts business, or reasonably may be expected to conduct business,', 5671:'with the government as an agent or representative of another contractor. debarring official means– 1 an agency head; or 2', 5672:'a designee authorized by the agency head to impose debarment. indictment means indictment for a criminal offense. an information or', 5673:'other filing by competent authority charging a criminal offenseis given the same effect as an indictment. legal proceedings means any', 5674:'civil judicial proceeding to which the government is a party or any criminal proceeding. the term includes appeals from such', 5675:'proceedings. nonprocurement common rule meansthe procedures used by federal executive agenciesto suspend, debar, or exclude individuals or entities from participation', 5676:'in nonprocurement transactions under executive order 12549. examples of nonprocurement transactions are grants, cooperative agreements, scholarships, fellowships, contracts of assistance,', 5677:'loans, loan guarantees, subsidies, insurance, payments for specified use, and donation agreements. suspending official means– 1 an agency head; or', 5678:'2 a designee authorized by the agency head to impose debarment. unfair trade practices means the commission of any or', 5679:'the following acts by a contractor– 1 a violation of section 337of the tariff act of 1930 19 u.s.c. 1337', 5680:'as determinedby the international trade commission. 2 a violation, as determined by the secretary of commerce, of any agreement of', 5681:'the group known as the coordination committee for purposes of the export administration act of 1979 50 u.s.c. app. 2401,', 5682:'et seq. or any similar bilateral or multilateral export control agreement. 3 a knowingly false statement regarding a material element', 5683:'of a certification concerning the foreign content of an item of supply,as determined by thesecretary of the department or the', 5684:'head of the agency to which such certificate was furnished. 9.404 exclusions in the system for award management. a the', 5685:'general services administration gsa— 1 operates the webbased system for award managementsam, whichcontains exclusion records; and 2 provides technical assistance', 5686:'to federal agencies in the use of sam. b an exclusion record in sam contains the— 1 names and addresses', 5687:'of the entities debarred, suspended, proposed for debarment, declared ineligible, or excluded or disqualified under the nonprocurement common rule, with', 5688:'crossreferences when more than one name is involved in a single action; 2 name of the agency or other authority', 5689:'taking the action; 3 cause for the action see 9.4062 and 9.4072 for causes authorized under this subpart or other', 5690:'statutory or regulatory authority; 4 effect of the action; 5 terminationdate for each listing; 6 unique entity identifier; 7 social', 5691:'security number ssn, employer identification number ein, or other taxpayeridentification number tin, if available; and 8 name and telephone number', 5692:'of the agency point of contact for the action. c each agency must— 1 identify the individuals responsible for entering', 5693:'and updating exclusions data in sam and assign the appropriate roles; 2 remove the exclusion roles in sam when the', 5694:'individualleaves the organization orchangesfunctions; 3 for each exclusion accomplished by the agency– i enter the information required by paragraph b', 5695:'of this section within 3 working days after the action becomes effective; subpart 9.4 debarment, suspension, and ineligibility 9.4051 ii', 5696:'determine whether it is legally permitted to enter the ssn, ein, or other tin, under agency authority to suspend or', 5697:'debar; and iii update the exclusion record in sam, generally within 5 working days after modifying or rescinding an action;', 5698:'4 in accordance with internal retention procedures, maintain records relating to each debarment, suspension, or proposed debarment taken by the', 5699:'agency; 5 establish procedures to ensure thatthe agency does not solicitoffers from, award contracts to, or consent to subcontracts with', 5700:'contractors who have an active exclusion record in sam, except as otherwise provided in this subpart; 6 direct inquiries concerning', 5701:'listed contractors and other entities to the agency or other authority that took the action; and 7 contact gsa for', 5702:'technical assistance with sam, via the support email address or on the technical support phone line. d sam is available', 5703:'via https://www.sam.gov. 9.405effect of listing. a contractors debarred, suspended, or proposed for debarment are excluded from receiving contracts, and agencies', 5704:'shall not solicitoffers from, award contracts to,or consent tosubcontractswith these contractors, unless the agency head determines that there is a', 5705:'compelling reason for such action see 9.4051a2, 9.4052, 9.4061c, 9.4071d, and 26.505e. contractors debarred, suspended, or proposed for debarment are', 5706:'also excluded from conducting business with the government as agents or representatives of other contractors. b contractors and other entities', 5707:'that have an active exclusion record in sam because they have been declared ineligible on the basis of statutory or', 5708:'other regulatory procedures are excluded from receiving contracts, and if applicable, subcontracts, underthe conditions and for the period set forth', 5709:'inthe statute or regulation. agencies shall not solicitoffers from, award contracts to, or consent to subcontracts with these contractors under', 5710:'those conditions and for that period. c agencies shall not enter into,renew, orextend contractswith contractors thathavebeendeclared ineligible pursuant to 22', 5711:'u.s.c. 2593e. d contractors debarred, suspended, or proposed for debarment are excluded from acting as individual sureties see part 28.', 5712:'e 1aftertheopeningofbidsorreceiptofproposalsorquotes,thecontractingofficershallreviewtheexclusion records in sam. 2 bids received from any listed contractor in response to an invitation for bids shall', 5713:'be entered on the abstract of bids, and rejected unless the agency head determines in writing that there is a', 5714:'compelling reason to consider the bid. 3 proposals, quotations, oroffers received fromanylisted contractor shall not beevaluated for awardor included in', 5715:'the competitive range, nor shall discussionsbe conducted with alisted offeror duringa period of ineligibility, unless the agency head determines, in', 5716:'writing, that there is a compelling reason to do so. if the period of ineligibility expires or is terminated priorto', 5717:'award, the contracting officer may, but is notrequired to, consider such proposals,quotations, or offers. 4 immediatelyprior to award, the contracting', 5718:'officer shall again review the exclusion recordsin samto ensure that no awardis made toa listed contractor. 9.4051 continuation of currentcontracts.', 5719:'a contractors debarred, suspended, or proposed for debarment. 1 notwithstanding the debarment, suspension, or proposed debarmentof acontractor, agenciesmay continue contractsor', 5720:'subcontracts in existence atthe time the contractor was debarred, suspended, or proposed for debarment unless the agency head directs otherwise.', 5721:'a decision as to the type of terminationaction,if any, to be taken should be made only afterreview by agency contracting', 5722:'and technical personnel and by counsel to ensure the propriety of the proposed action. 2 for contractors debarred, suspended, or', 5723:'proposed for debarment, unless the agency head makes a written determination of the compelling reasons for doing so, ordering activities', 5724:'shall not— i place orders exceeding the guaranteed minimum under indefinite quantity contracts; ii place orders under federal supply schedule', 5725:'contracts, blanket purchase agreements, or basic ordering agreements; or iii add new work, exercise options, or otherwise extend the duration', 5726:'of current contracts or orders. b ineligible contractors. a covered agency, as defined in 9.1101, shall terminate existing contracts and', 5727:'shall not place new orders or award new contracts with contractors that have been declared ineligible pursuant to 10 u.s.c.', 5728:'983 see 9.110, federal acquisition regulation except for contracts at or below the simplified acquisition threshold or contracts for the', 5729:'acquisition of commercial products and commercial services. 9.4052 restrictions on subcontracting. a when a contractor debarred, suspended, or proposed for', 5730:'debarment is proposed as a subcontractor for any subcontract subject to government consent see subpart 44.2,contractingofficersshallnotconsenttosubcontractswithsuchcontractors unless the agency head', 5731:'states in writing the compelling reasons for this approval action. see 9.405 concerning declarations of ineligibility affectingsubcontracting. b the government', 5732:'suspends or debarscontractors to protect the government’s interests. contractors areprohibitedfrom entering into any subcontract in excess of$35,000, other than a', 5733:'subcontractfora commerciallyavailable offtheshelf item, with a contractor that has been debarred, suspended, or proposed for debarment, unless there is a', 5734:'compelling reason to do so. if a contractor intends to enter into a subcontract in excess of $35,000, other than', 5735:'a subcontract for a commercially available offtheshelfitem, with a partythat isdebarred, suspended, or proposedfordebarment as evidenced by the partys having', 5736:'an active exclusion record in sam see 9.404, a corporate officer or designeeof the contractoris required by operationof the clause', 5737:'at 52.2096, protecting the government’sinterests when subcontractingwith contractors debarred, suspended, or proposed for debarment, to notify thecontracting officer,in writing, before', 5738:'entering into such subcontract. for contracts for the acquisition of commercial products, the notification requirement applies only for firsttier subcontracts.', 5739:'for all other contracts, the notification requirement applies to subcontracts at any tier. the noticemust providethe following: 1 the name', 5740:'of the subcontractor; 2 the contractor’s knowledgeof the reasons for the subcontractor having an active exclusionrecord in sam; 3 the', 5741:'compelling reasons for doing business with the subcontractor notwithstanding its having an active exclusion record in sam; and 4 the', 5742:'systems and procedures thecontractor has established to ensure that it is fully protecting the government’s interests whendealing with such subcontractor', 5743:'in view of the specific basisforthe party’sdebarment,suspension, or proposed debarment. c thecontractor’scompliance with the requirements of 52.2096 will be reviewed', 5744:'during contractor purchasing system reviews see subpart 44.3. 9.406debarment. 9.4061 general. a it is the debarring official’s responsibility todetermine whether', 5745:'debarment is in the government’s interest. the debarring officialmay, in the public interest, debara contractorforany of the causesin 9.4062, using', 5746:'the procedures in 9.4063. the existence ofa cause for debarment, however, doesnot necessarily require thatthe contractor be debarred; the seriousness', 5747:'ofthe contractor’s acts or omissions and anyremedial measures or mitigating factorsshouldbe considered in making any debarment decision. before arriving atany', 5748:'debarment decision, the debarring official should consider factors such as the following: 1 whetherthe contractor had effective standards of conduct', 5749:'and internal control systems inplace at the time of the activity which constitutes cause for debarment or had adopted such', 5750:'procedures prior to any government investigation of the activity cited as a cause for debarment. 2 whether the contractor brought', 5751:'the activity cited as a cause for debarment to the attention of the appropriate government agency in a timelymanner. 3', 5752:'whether the contractor has fully investigated the circumstances surrounding the cause for debarment and, if so, made the result of', 5753:'the investigation available to the debarring official. 4 whether the contractor cooperated fully with government agencies during the investigation and', 5754:'any court or administrative action. 5 whether the contractor has paid or has agreed to pay all criminal, civil, and', 5755:'administrative liability for the improper activity, including any investigative or administrativecosts incurred by the government, and has made or agreed', 5756:'to make full restitution. 6 whether the contractor has taken appropriate disciplinary action against the individuals responsible for the activity', 5757:'which constitutes cause for debarment. 7 whether the contractor has implemented or agreed to implement remedial measures, including any identified', 5758:'by the government. subpart 9.4 debarment, suspension, and ineligibility 9.4062 8 whether the contractor has instituted or agreed to institute', 5759:'new or revised review and control procedures and ethics training programs. 9 whetherthe contractor has had adequate time to eliminate', 5760:'the circumstances within the contractor’s organization that led to the cause for debarment. 10 whether the contractor’smanagement recognizes andunderstands the', 5761:'seriousness of themisconduct giving rise to the cause for debarment and has implemented programs to prevent recurrence. the existence or', 5762:'nonexistence of any mitigating factors or remedial measures such as set forth in this paragraph a is not necessarily determinative', 5763:'of a contractor’s present responsibility. accordingly, if a cause for debarmentexists, the contractor has the burdenof demonstrating, to the satisfaction', 5764:'of thedebarring official, its presentresponsibilityand that debarment is not necessary. b debarment constitutesdebarment of all divisionsor other organizational elements of', 5765:'the contractor, unless the debarment decisionis limited byits terms to specific divisions, organizational elements, or commodities. the debarring official may', 5766:'extendthe debarment decisionto include any affiliates ofthe contractor if they are 1 specifically named; and 2 given written notice of', 5767:'the proposed debarment and an opportunity to respond see 9.4063c. c a contractor’s debarment, orproposed debarment, shall be effectivethroughout the', 5768:'executive branchof the government, unless the agency head or a designee except see 26.505e states in writing the compelling reasons', 5769:'justifying continued business dealingsbetween that agency and thecontractor. d 1whenthedebarringofficialhasauthoritytodebarcontractorsfrombothacquisitioncontractspursuanttothis regulation and contracts for the purchase of federal personal property', 5770:'pursuant to the federal property management regulationsfpmr 10145.6, that officialshallconsidersimultaneously debarring the contractor from the awardof acquisition contracts andfrom the', 5771:'purchaseof federal personal property. 2 when debarring a contractor from the award of acquisition contracts and from the purchase of', 5772:'federal personal property,the debarment notice shall so indicateandthe appropriate far and fpmr citationsshallbe included. 9.4062 causes for debarment. the debarring', 5773:'official may debar a a contractor for a conviction of or civil judgment for 1 commission of fraud or a', 5774:'criminal offense in connection with i obtaining; ii attempting to obtain; or iii performing a public contract or subcontract. 2', 5775:'violation offederal or state antitrust statutes relating to thesubmission of offers; 3 commission of embezzlement, theft,forgery,bribery, falsificationor destructionof records,making false', 5776:'statements, tax evasion, violating federal criminal tax laws, or receiving stolen property; 4 intentionally affixing a label bearing a made', 5777:'in america inscription or any inscription having the same meaning to a product sold in or shipped to the united', 5778:'states or its outlying areas, when the product was not made in the united states or its outlying areas see', 5779:'section 202 of the defense production act public law102558; or 5 commission of any other offenseindicating a lack of business', 5780:'integrityor business honesty that seriously and directly affects the present responsibility of a government contractor orsubcontractor. b 1acontractor,baseduponapreponderanceoftheevidence,foranyofthefollowing iviolation of', 5781:'theterms ofa government contract or subcontract so serious as to justify debarment, suchas awillful failure to perform in accordance withthe', 5782:'terms of one or more contracts; or b a history of failure to perform, or of unsatisfactory performance of, one', 5783:'or more contracts. iiviolations of 41 u.s.c. chapter 81, drugfreeworkplace, as indicated by a failure to comply with the requirements', 5784:'of the clause at 52.2267, drugfree workplace; or b such a number of contractor employees convicted of violations of criminal', 5785:'drug statutes occurring in the workplace as to indicatethat the contractor has failed tomake a good faith effortto provide a', 5786:'drugfree workplace see 26.504. iii intentionally affixing alabel bearinga made in america inscriptionoranyinscriptionhaving thesame meaning to a product sold in', 5787:'or shipped to the united states or its outlying areas, when the product was not made in the united states', 5788:'or its outlying areas see section 202 of the defense production act public law102558. federal acquisition regulation iv commission of', 5789:'an unfair trade practice as defined in 9.403 see section 201 of the defense production act pub.l.102558. v delinquent federal', 5790:'taxes in an amount that exceeds $10;000. a federal taxes are considered delinquent for purposes of this provision if both', 5791:'of the following criteria apply: 1 the tax liability is finally determined. the liability is finally determined if it has', 5792:'been assessed. a liability is not finally determined if there is a pending administrative or judicial challenge. in the case', 5793:'of a judicial challenge to the liability, the liability isnot finally determined untilalljudicial appeal rights have been exhausted. 2 the', 5794:'taxpayer is delinquent in making payment. a taxpayer is delinquent if the taxpayer has failed to pay the tax liability', 5795:'when full payment was due and required. a taxpayer is not delinquent in cases where enforced collection action is precluded.', 5796:'b examples. 1 the taxpayerhas received a statutory notice of deficiency, under i.r.c. §6212, which entitles thetaxpayer toseek tax court', 5797:'review of a proposed tax deficiency. this isnot adelinquent tax becauseitis not a final tax liability. should thetaxpayer seek tax', 5798:'court review,this will not bea final tax liability until the taxpayer has exercised all judicial appeal rights. 2 the irs', 5799:'hasfiled a notice of federaltax lienwith respect toan assessed tax liability, andthe taxpayer has been issued a notice underi.r.c. §6320', 5800:'entitling the taxpayer to request a hearing with the irs officeof appealscontesting thelien filing, and to further appeal to the', 5801:'tax court if theirs determines tosustainthe lien filing. in the courseof the hearing, the taxpayer is entitled to contest the', 5802:'underlying tax liability because the taxpayer has had no prior opportunity to contest the liability. this is not a delinquent', 5803:'tax because it is nota final tax liability. should the taxpayer seek tax court review, this will notbe a final', 5804:'taxliability untilthe taxpayer has exercised all judicialappealrights. 3 the taxpayer has entered into an installment agreement pursuant to i.r.c. §6159.', 5805:'the taxpayer is making timely payments and is in full compliance with the agreement terms. the taxpayer is not delinquent', 5806:'because the taxpayer is not currently required to make full payment. 4 the taxpayer has filed for bankruptcy protection. the', 5807:'taxpayer is not delinquent because enforced collection action is stayed under 11u.s.c. 362 the bankruptcy code. vi knowing failure by', 5808:'a principal, until 3 years after final payment on any government contract awarded to the contractor, to timely disclose to', 5809:'the government, in connectionwith the award, performance, orcloseout of thecontract ora subcontract thereunder, credible evidence of aviolation of federalcriminallawinvolving fraud,', 5810:'conflict of interest, bribery, or gratuity violations found in title 18 of the united states code; b violation of the', 5811:'civilfalse claims act 31 u.s.c. 37293733; or c significant overpayments on the contract, other than overpayments resulting from contract financing', 5812:'payments as defined in 32.001. vii determination of a false certification under 52.20913, violation of arms controltreaties or agreements certification.', 5813:'2 a contractor, based on a determination by the secretary of homeland security or the attorney general of the united', 5814:'states, that the contractor is not in compliance with immigration and nationality act employment provisions see executive order12989, as amended', 5815:'by executive order13286. such determination is not reviewable in the debarment proceedings. c a contractoror subcontractor based on anyother cause', 5816:'of so serious or compellinga nature that it affects the present responsibility of the contractor or subcontractor. 9.4063 procedures. a', 5817:'investigation and referral. agencies shall establish procedures for the prompt reporting, investigation, and referral to thedebarringofficial of matters appropriate for', 5818:'thatofficial’s consideration. b decisionmaking process. 1 agencies shall establish procedures governing the debarment decisionmaking process that are as informal as', 5819:'is practicable, consistentwith principlesof fundamental fairness. these procedures shall afford the contractor and any specificallynamed affiliates an opportunity to submit,', 5820:'in person,in writing, orthrougha representative, information and argument in opposition tothe proposed debarment. 2 in actions not basedupon a conviction', 5821:'or civil judgment, if it is found that thecontractor’s submission in opposition raises a genuine dispute over facts material to', 5822:'the proposed debarment, agencies shall also iaffordthe contractor an opportunity to appearwith counsel, submit documentary evidence, present witnesses, and confront', 5823:'any person the agency presents; and subpart 9.4 debarment, suspension, and ineligibility 9.4064 ii make a transcribed record of the', 5824:'proceedings and make it available at cost to the contractor upon request, unless thecontractor and the agency,by mutual agreement, waivethe', 5825:'requirement for a transcript. c notice of proposal to debar.anotice of proposed debarment shall be issued by the debarring official', 5826:'advising the contractor and anyspecifically namedaffiliates, by certified mail, return receipt requested 1 that debarment is being considered; 2 of', 5827:'the reasons for the proposed debarment in terms sufficient to put the contractor onnotice of theconduct or transactions upon which', 5828:'it is based; 3 of the causes relied upon under 9.4062 for proposing debarment; 4 that, within 30 days after', 5829:'receipt of the notice, the contractor may submit, in person, in writing, or through a representative, information and argument inopposition', 5830:'to the proposed debarment, including any additionalspecific information that raises a genuine dispute over the material facts; 5 of the', 5831:'agency’sprocedures governing debarment decisionmaking; 6 of the effect of the issuanceof the noticeof proposed debarment; and 7 of the potential', 5832:'effect of an actual debarment. d debarring official’s decision. 1 in actions based upon a conviction or civil judgment, or', 5833:'in which there is no genuinedispute over material facts, the debarring official shall make adecision on thebasis of all theinformation', 5834:'in the administrative record, including any submission madeby the contractor. if no suspensionis ineffect, thedecision shall be made within 30', 5835:'working days after receipt ofany informationand argument submittedby the contractor, unless thedebarring official extends this periodforgood cause. 2 i in', 5836:'actions in which additional proceedings are necessary as to disputed material facts, written findings of fact shall beprepared. the debarringofficial', 5837:'shall base the decision on the facts as found,together with any information and argument submitted by the contractor and any', 5838:'other information inthe administrative record. iithe debarring official mayrefer matters involving disputed materialfactsto anotherofficial for findings of fact. the debarringofficial', 5839:'may reject any such findings, in whole or in part, only after specifically determiningthem to be arbitrary and capricious or', 5840:'clearly erroneous. iii the debarring official’s decision shall be made after theconclusion of the proceedings with respect to disputed facts.', 5841:'3 in any action in which the proposed debarment is not based upon a conviction or civil judgment, the cause', 5842:'for debarment must be established by a preponderance of the evidence. e notice of debarring official’s decision. 1 if the', 5843:'debarring official decides to impose debarment, thecontractor and any affiliates involved shall be given prompt noticeby certified mail, return receipt', 5844:'requested i referring to the notice of proposed debarment; ii specifying the reasons for debarment; iii stating the period of', 5845:'debarment, including effective dates; and iv advising that thedebarment is effective throughout the executive branch ofthe government unless the head', 5846:'of an agency or a designee makes the statement called for by 9.4061c. 2 if debarmentis not imposed, thedebarring official', 5847:'shall promptly notify the contractor and any affiliates involved, by certified mail, return receipt requested. f 1 if the contractor', 5848:'enters into an administrative agreement with the government in order to resolve a debarment proceeding, the debarring official shall access', 5849:'thewebsiteavailable at https://www.cpars.gov,then select fapiis and enter the requested information. 2 the debarring official is responsible for the timely submission,', 5850:'within 3 working days,and accuracy of the documentation regarding the administrative agreement. 3 with regardto information thatmay be coveredby a', 5851:'disclosure exemption underthe freedom of information act, thedebarringofficial shall follow the procedures at 9.1052b2iv. 9.4064 period of debarment. a 1debarmentshallbeforaperiodcommensuratewiththeseriousnessofthecauses.', 5852:'generally,debarmentshould not exceed 3 years, except that i debarment for violation of the provisions of 41 u.s.c. chapter 81, drugfree', 5853:'workplace see 26.505 may be for a period not to exceed 5 years; ii debarments under 9.4062b2 shall be for', 5854:'1 year unless extended pursuant to paragraph b of this section; and federal acquisition regulation iii debarments under 9.4062b1vii shall', 5855:'be for a period of not less than 2 years, inclusive of any suspension period, if suspension precedes a debarment', 5856:'see paragraph a2 of this section. 2 if suspension precedes a debarment, the suspension period shall be considered in determining', 5857:'the debarment period. b the debarring official may extend the debarment for an additionalperiod, ifthat official determines that an extension', 5858:'is necessary to protect the government’sinterest. however, a debarmentmay not be extended solely onthe basis of the facts and circumstances', 5859:'upon which the initial debarment action was based. debarments under 9.4062b2 may be extended for additional periods of one year', 5860:'if the secretary of homeland security or the attorney general determines that the contractor continues to be in violation of', 5861:'the employment provisions of the immigration and nationality act. if debarment for an additional period is determined tobe necessary, the', 5862:'proceduresof 9.4063 shall be followed to extend the debarment. c thedebarringofficial may reduce the period or extent of debarment, upon', 5863:'the contractor’srequest, supported by documentation, for reasons such as 1 newly discovered material evidence; 2 reversal of the conviction or', 5864:'civil judgment upon which the debarment was based; 3 bona fide change in ownership or management; 4 elimination of other', 5865:'causes for which the debarment was imposed; or 5 otherreasons thedebarringofficial deemsappropriate. 9.4065 scope of debarment. a thefraudulent, criminal, orotherseriously', 5866:'improper conductof any officer,director, shareholder, partner,employee, or other individual associated with a contractor may be imputed to the contractor when', 5867:'the conduct occurred in connection with the individual’s performance of duties for or on behalf of the contractor,or with the', 5868:'contractor’s knowledge, approval, or acquiescence. the contractor’s acceptance of thebenefits derived from theconduct shall be evidence of such knowledge, approval,', 5869:'or acquiescence. b the fraudulent, criminal, or other seriously improper conduct ofa contractormay be imputed to any officer, director, shareholder,', 5870:'partner, employee, or other individual associatedwith the contractor whoparticipated in,knew of, or had reason to know of the contractor’s conduct.', 5871:'c the fraudulent, criminal, or other seriously improper conduct of one contractor participating in a joint venture or similar arrangement', 5872:'may be imputed to other participating contractors if the conduct occurred for or on behalf of the joint venture or', 5873:'similar arrangement, or with the knowledge, approval, or acquiescence of these contractors. acceptance of the benefits derived from the conduct', 5874:'shall be evidence of such knowledge, approval, or acquiescence. 9.407suspension. 9.4071 general. a thesuspending official may,in thepublicinterest, suspend a contractor', 5875:'for any of the causes in 9.4072, using the procedures in 9.4073. b 1 suspension is a serious action to', 5876:'be imposed on the basis of adequate evidence, pending the completion of investigation or legal proceedings, when it has been', 5877:'determined that immediate action is necessary to protect the government’s interest. inassessing the adequacy of the evidence, agenciesshouldconsider how muchinformationis', 5878:'available, how credible it is given the circumstances, whether or not important allegations are corroborated, and what inferences can reasonably', 5879:'be drawn as a result. this assessment should include an examination of basic documents such as contracts, inspection reports, and', 5880:'correspondence. 2 the existence of a cause for suspension does not necessarily require that the contractor be suspended. the suspending', 5881:'official should consider the seriousness of the contractor’sacts or omissions and may, but is notrequired to, consider remedial measures or', 5882:'mitigating factors, such as those set forth in 9.4061a. a contractor has the burden of promptly presenting tothe suspending official', 5883:'evidence of remedial measuresor mitigating factors when it has reason to know that a cause for suspension exists. the existence', 5884:'or nonexistence of any remedial measures or mitigating factors is not necessarily determinative of a contractor’s present responsibility. c suspension', 5885:'constitutessuspension of all divisions or other organizational elements of thecontractor, unless the suspensiondecision is limitedby its terms tospecific divisions,organizational elements,', 5886:'orcommodities. thesuspending official may extendthe suspensiondecision to include any affiliatesof the contractorif they are 1 specifically named; and 2 given', 5887:'written notice of the suspension and an opportunity to respond see 9.4073c. subpart 9.4 debarment, suspension, and ineligibility 9.4073 d', 5888:'a contractor’s suspension shall be effective throughoutthe executive branch of the government, unless the agency head or a designee except', 5889:'see 26.505e states in writing the compelling reasons justifying continued business dealings between that agency andthe contractor. e 1whenthesuspendingofficialhasauthoritytosuspendcontractorsfrombothacquisitioncontractspursuanttothis regulation', 5890:'andcontracts for the purchase of federal personalpropertypursuant to fpmr 10145.6, that official shall consider simultaneously suspending the contractor from the', 5891:'award of acquisition contracts and from the purchase of federal personal property. 2 when suspending a contractor from the award', 5892:'of acquisition contracts and from the purchase of federal personal property,the suspensionnotice shall soindicate and the appropriate far and fpmr', 5893:'citations shall be included. 9.4072 causes for suspension. a thesuspending official may suspend a contractor suspected,upon adequate evidence, of 1', 5894:'commission of fraud or a criminal offense in connection with i obtaining; ii attempting to obtain; or iii performing a', 5895:'public contract or subcontract. 2 violation offederal or state antitrust statutes relating to thesubmission of offers; 3 commission of embezzlement,', 5896:'theft,forgery,bribery, falsificationor destructionof records,making false statements, tax evasion, violating federal criminal tax laws, or receiving stolen property; 4 violations of', 5897:'41 u.s.c. chapter 81, drugfree workplace, as indicated by i failure to comply with the requirements of the clause at', 5898:'52.2267,drugfree workplace; or ii such a number of contractor employees convicted of violations of criminal drug statutes occurring in the', 5899:'workplace as to indicatethat the contractor has failed tomake a good faith effortto provide a drugfree workplace see 26.504; 5', 5900:'intentionally affixing a label bearing a made in america inscription or any inscription having the same meaning to a product', 5901:'sold in or shipped to the united states or its outlying areas, when the product was not made in the', 5902:'united states or its outlying areas see section 202 of the defense production act public law102558; 6 commission of an', 5903:'unfair trade practice as defined in 9.403 see section 201 of the defense production act pub.l.102558; 7 delinquent federal taxes', 5904:'in an amount that exceeds $10;000. see the criteria at 9.4062b1v for determination of when taxes are delinquent; 8 knowing', 5905:'failure by a principal, until 3 years after final payment on any government contract awarded to the contractor, to timely', 5906:'disclose to the government, in connectionwith the award, performance, orcloseout of thecontract ora subcontract thereunder, credible evidence of iviolation of', 5907:'federal criminallawinvolvingfraud, conflict of interest, bribery, or gratuity violations found in title 18 of the united states code; iiviolation of', 5908:'thecivil false claims act 31 u.s.c. 37293733; or iii significant overpayments on the contract, other than overpayments resulting from contract', 5909:'financing payments as defined in 32.001; or 9 determination of a false certification under 52.20913, violation of arms control treaties', 5910:'oragreements certification. 10 commissionof any other offense indicating a lack of business integrity orbusinesshonestythat seriouslyand directly affects the present responsibility', 5911:'of a government contractor orsubcontractor. b indictment for any of the causes in paragraph a of this section constitutes adequate', 5912:'evidence for suspension. c thesuspending official may uponadequate evidence alsosuspend acontractor for any other causeof so serious or compelling a', 5913:'nature thatitaffects the present responsibilityof agovernmentcontractor or subcontractor. 9.4073 procedures. a investigation and referral. agencies shall establish procedures for the', 5914:'prompt reporting, investigation, and referral to thesuspending official of matters appropriate for that official’sconsideration. b decisionmaking process. 1 agencies shall', 5915:'establish procedures governing the suspension decisionmaking process that are as informal as is practicable, consistentwith principlesof fundamental fairness. these procedures', 5916:'shall afford the federal acquisition regulation contractor and any specificallynamed affiliates an opportunity, followingthe imposition of suspension,to submit, in person,', 5917:'in writing,or through arepresentative, information and argument in opposition to the suspension. 2 in actions not basedon an indictment, if', 5918:'it is found thatthe contractor’s submission in opposition raises a genuine dispute over facts material to the suspension and if', 5919:'no determination has been made, on the basis of department of justice advice, that substantial interests of the government in', 5920:'pending or contemplated legal proceedings based on the same facts as the suspension would be prejudiced, agencies shall also iaffordthe', 5921:'contractor an opportunity to appearwith counsel, submit documentary evidence, present witnesses, and confront any person the agency presents; and ii', 5922:'make a transcribed record of the proceedings and make it available at cost to the contractor upon request, unless thecontractor', 5923:'and the agency,by mutual agreement, waivethe requirement for a transcript. c notice of suspension. when acontractor and any specifically named', 5924:'affiliates are suspended,they shall be immediately advised by certified mail, return receipt requested 1 that they have been suspended and', 5925:'that the suspension is based on an indictment or other adequate evidence that the contractor has committed irregularities– i of', 5926:'a serious nature in business dealings with the government or ii seriously reflecting on the propriety of further government dealings', 5927:'with the contractorany such irregularities shall bedescribed in terms sufficient to place the contractor on notice withoutdisclosing thegovernment’s evidence; 2', 5928:'that the suspension is for a temporary period pending the completion of an investigation and such legal proceedings as may', 5929:'ensue; 3 of the causes relied upon under 9.4072 for imposing suspension; 4 of the effect of the suspension; 5', 5930:'that, within 30 days after receipt of the notice, the contractor may submit, in person, in writing, or through a', 5931:'representative,information andargument in opposition to the suspension, including any additional specific information that raises a genuine dispute over the material', 5932:'facts; and 6 that additional proceedings to determine disputed material facts will be conducted unless i the action is based', 5933:'on an indictment; or ii a determination is made, on the basis of department of justice advice, that the substantial', 5934:'interests of the government in pending or contemplated legal proceedings based on the same facts as the suspension would be', 5935:'prejudiced. d suspending official’s decision. 1 in actions— i based on an indictment; iiin which the contractor’ssubmission does not raise', 5936:'a genuine dispute over materialfacts;or iii in which additional proceedings to determine disputed material facts have been denied on the', 5937:'basis of department of justice advice, the suspending official’sdecision shall be based on all the information in the administrative record,', 5938:'including any submissionmadeby the contractor. 2 i in actions in which additional proceedings are necessary as to disputed material facts,', 5939:'written findings of fact shall beprepared. the suspending official shall base the decision onthe facts as found, together with any', 5940:'information and argument submitted by the contractor and any other information inthe administrative record. iithe suspendingofficial may refer matters involving', 5941:'disputed material facts to another official for findings of fact. the suspending official may rejectany such findings, in whole or', 5942:'inpart, onlyafter specifically determining themto be arbitrary and capricious or clearly erroneous. iii the suspendingofficial’s decision shall be madeafter the', 5943:'conclusion of theproceedings withrespect to disputed facts. 3 the suspending officialmay modify or terminate the suspension orleave it inforce for', 5944:'example, see 9.4064c for thereasons for reducing the period or extent of debarment. however, a decision to modify or terminate', 5945:'the suspensionshall be without prejudice to the subsequent imposition of i suspension by any other agency; or iidebarment by anyagency.', 5946:'4 prompt written notice of the suspending official’sdecision shall be sent to the contractor andanyaffiliates involved, by certified mail, return', 5947:'receipt requested. e 1 if the contractor enters into an administrative agreement with the government in order to resolve a', 5948:'suspension proceeding, the suspending official shall access the website available at https://www.cpars.gov, thenselect fapiis and enter the requested information. subpart', 5949:'9.4 debarment, suspension, and ineligibility 9.409 2 the suspending officialis responsible for thetimely submission, within 3working days, and accuracy of', 5950:'the documentation regarding the administrative agreement. 3 with regardto information thatmay be coveredby a disclosure exemption underthe freedom of information', 5951:'act, thesuspending official shall follow theprocedures at 9.1052b2iv. 9.4074 period of suspension. a suspension shall be for a temporary period', 5952:'pending the completion of investigation and any ensuing legal proceedings, unless sooner terminated by the suspending officialor as provided inthissubsection.', 5953:'b if legal proceedings are not initiated within 12 months after the date of the suspension notice, the suspension shall', 5954:'be terminated unless an assistant attorney general requests its extension, in which case it may be extended for an additional', 5955:'6 months. in no event may a suspension extend beyond 18 months, unless legal proceedings have been initiated within that', 5956:'period. c thesuspending official shall notifythe department of justice of the proposed termination of the suspension, at least 30 days', 5957:'before the 12month period expires, to give that department an opportunity to request an extension. 9.4075 scope of suspension. the', 5958:'scope of suspension shall be the same as that for debarment see 9.4065, except that the procedures of 9.4073 shall', 5959:'be used in imposing suspension. 9.408[reserved] 9.409contract clause. the contractingofficer shall insertthe clause at 52.2096, protecting the government’s interests when', 5960:'subcontracting with contractors debarred, suspended, or proposed for debarment, in solicitations and contracts where the contract value exceeds $35,000. this', 5961:'page intentionally left blank. 9.412 subpart 9.5 organizational and consultant conflicts of interest 9.504 subpart 9.5 organizational and consultant conflicts', 5962:'of interest 9.500scope of subpart. this subpart a prescribes responsibilities, general rules, and proceduresforidentifying,evaluating, and resolving organizational conflicts of interest;', 5963:'b provides examplesto assist contractingofficers in applying these rulesandprocedures to individual contracting situations; and c implements section 8141 of the', 5964:'1989 department of defense appropriation act, pub.l.100463, 102 stat.227047 1988. 9.501definition. marketing consultant, as used in this subpart, means any', 5965:'independent contractor who furnishes advice, information, direction,or assistance to an offeror or any other contractorin support of thepreparationor submission of', 5966:'an offer for a government contract by that offeror. an independent contractor isnot amarketing consultant when rendering 1 services excluded', 5967:'in subpart 37.2; 2 routine engineering and technical services such as installation, operation, or maintenance of systems, equipment, software, components,', 5968:'or facilities; 3 routine legal, actuarial, auditing, and accounting services; and 4 training services. 9.502 applicability. a this subpart applies', 5969:'to contractswith either profitor nonprofitorganizations, includingnonprofit organizations created largelyor wholly with government funds. b the applicability of this subpart is', 5970:'not limitedto any particular kind of acquisition. however,organizational conflicts of interest are more likely to occur in contracts involving 1', 5971:'management support services; 2 consultant or other professional services; 3 contractor performance of or assistance in technical evaluations; or 4', 5972:'systems engineering and technical direction work performed by a contractor that does not have overall contractual responsibility for development or', 5973:'production. c an organizational conflict of interest mayresult whenfactors create an actual or potential conflict ofinterest onan instant contract, or', 5974:'when the nature of the work to be performed on the instant contract creates an actual or potential conflict of', 5975:'interest on a future acquisition. in the latter case, some restrictions on future activities of the contractor may be required.', 5976:'d acquisitions subject to uniqueagency organizationalconflictof intereststatutes are excluded from the requirements of this subpart. 9.503 waiver. the agency head', 5977:'or a designee may waive any general rule or procedure of this subpart by determining that its application in a', 5978:'particular situationwould not be in the government’s interest. any request for waivermust be in writing,shallset forth the extent of the', 5979:'conflict, and requires approval by the agency head or a designee. agency heads shall not delegate waiver authoritybelow the level', 5980:'of head of a contracting activity. 9.504 contractingofficer responsibilities. a using the general rules, procedures, and examples in this subpart,', 5981:'contracting officersshallanalyze planned acquisitions in order to 1 identifyandevaluatepotentialorganizational conflicts of interest asearly in the acquisition processas possible;and 2 avoid,', 5982:'neutralize,or mitigate significant potential conflicts before contract award. b contracting officersshouldobtain the advice of counsel and the assistanceof appropriate technical', 5983:'specialistsin evaluating potential conflicts and in developing any necessary solicitation provisions and contract clauses see 9.506. c before issuinga solicitation', 5984:'for acontract that may involve asignificant potential conflict,the contracting officer shall recommend to the head of the contracting activity a', 5985:'course of action for resolving the conflict see 9.506. federal acquisition regulation d in fulfilling their responsibilities for identifying andresolving', 5986:'potential conflicts,contracting officers should avoid creating unnecessary delays, burdensome information requirements, and excessive documentation. thecontracting officer’s judgment need be formally', 5987:'documented only when a substantive issue concerningpotentialorganizational conflict of interest exists. e thecontracting officer shall award the contractto the apparent', 5988:'successful offeror unless a conflict of interest is determined to exist that cannot be avoided or mitigated. before determining to', 5989:'withhold award based on conflict of interest considerations, the contracting officershallnotify the contractor,provide the reasons therefor, and allowthe contractor a', 5990:'reasonable opportunity to respond. if the contracting officerfinds thatitis inthe best interest of the united states to award the contract', 5991:'notwithstanding a conflict of interest, a request for waiver shall be submitted in accordance with 9.503. the waiver request and', 5992:'decision shall be included in the contract file. 9.505general rules. the general rules in 9.5051 through 9.5054 prescribe limitations on', 5993:'contracting as the means of avoiding, neutralizing, or mitigating organizational conflicts of interest that might otherwise exist in the stated', 5994:'situations. someillustrative examples are provided in 9.508. conflicts may arise in situations not expressly covered in this section 9.505 or', 5995:'in the examples in 9.508. each individual contracting situation should be examined on the basis of its particular facts and', 5996:'the nature of the proposed contract. the exercise of common sense, good judgment, and sound discretion is required in both', 5997:'the decision on whether a significant potential conflict exists and, if it does, the development of an appropriate means for', 5998:'resolving it. the two underlying principles are a preventing the existence of conflictingroles that might bias acontractor’s judgment; and b', 5999:'preventing unfair competitive advantage. in addition to the other situations described in this subpart, an unfair competitive advantage exists where', 6000:'a contractor competing for award of any federal contract possesses 1 proprietaryinformation that was obtained froma government official without properauthorization;or', 6001:'2 source selection information as defined in 2.101 that is relevant to the contract but is not available to all', 6002:'competitors, and such information would assist that contractor in obtaining the contract. 9.5051 providing systemsengineeringand technicaldirection. a a contractor that', 6003:'provides systems engineering and technical direction for a system but does not have overall contractualresponsibility for its development, its integration,', 6004:'assembly,and checkout, or itsproduction shall not 1 be awarded a contract to supply the system or any of its major', 6005:'components; or 2 be a subcontractor or consultant to a supplier of the system or any of its major components.', 6006:'b systems engineering includes a combination of substantially all of the following activities: determining specifications, identifying and resolving interface problems,', 6007:'developing test requirements, evaluating test data, and supervising design. technical direction includes a combination of substantially allof the following activities:', 6008:'developing work statements, determining parameters, directing other contractors’ operations, and resolving technical controversies. in performing these activities, a contractor occupies', 6009:'a highlyinfluential and responsibleposition in determining a system’s basicconcepts and supervising their execution by other contractors. therefore this contractor should', 6010:'not be in a position to make decisions favoring its own products or capabilities. 9.5052 preparing specifications or work statements.', 6011:'a 1 if a contractor prepares and furnishes complete specifications covering nondevelopmental items, to be used in a competitive acquisition,', 6012:'that contractor shall not be allowed to furnish these items, either as a prime contractor or as a subcontractor,fora reasonable', 6013:'period of timeincluding, atleast, the durationof the initial production contract. the restriction in this paragraph a1 shall not apply to', 6014:'i contractors that furnish at government request specifications or data regarding a product they provide, even though the specifications or', 6015:'data may have been paid for separately or in the price of the product; or ii situations in which contractors,', 6016:'acting as industry representatives, help government agencies prepare, refine, or coordinate specifications, regardless of source, provided this assistance is supervised', 6017:'and controlled by government representatives. 2 if a single contractor drafts complete specifications for nondevelopmental equipment, it should be eliminated', 6018:'for a reasonable time from competition for production based on the specifications. this should be done in order to avoid', 6019:'a situation in which the contractor could draft specifications favoring its own products or capabilities. in this way the government', 6020:'can subpart 9.5 organizational and consultant conflicts of interest 9.506 be assured of getting unbiased advice as to the content', 6021:'of the specifications and can avoid allegations of favoritism in the award of production contracts. 3 in development work, it', 6022:'is normal to select firms that have done the most advanced work in the field. these firms can be expected', 6023:'to design and develop around their own prior knowledge. development contractors can frequently start production earlier and more knowledgeablythan firms', 6024:'that did not participate in the development, and this canaffect the time and quality of production, both of which are', 6025:'important to the government. in many instances the government may have financed the development. thus, while the development contractor has', 6026:'a competitive advantage, it is an unavoidable one that is not considered unfair; hence no prohibition should be imposed. b', 6027:'1 if a contractor prepares, or assists in preparing, a work statement to be used in competitively acquiring a system', 6028:'or servicesor provides material leading directly, predictably,andwithout delay tosuch a work statementthat contractor may not supply the system, major components', 6029:'of the system, or the services unless i it is the sole source; ii it has participated in the development', 6030:'and design work; or iii more than one contractor has been involved in preparing the work statement. 2 agencies should', 6031:'normally preparetheir own work statements. when contractor assistance is necessary, the contractor might often be in a position to favor', 6032:'its own products or capabilities. to overcome the possibilityof bias, contractors are prohibited from supplying a system or services acquired', 6033:'on the basis of work statements growing out of their services, unless excepted in paragraph b1 of this section. 3', 6034:'for the reasons given in paragraph a3 of this section, no prohibitions are imposed on development and design contractors. 9.5053', 6035:'providing evaluation services. contracts for the evaluation of offers for products or servicesshallnot be awarded to a contractor that willevaluateits', 6036:'own offers for products or services, or thoseof acompetitor, without proper safeguards to ensureobjectivity to protect the government’s interests. 9.5054', 6037:'obtaining access to proprietaryinformation. a when a contractor requires proprietary information from others to perform a government contract and can', 6038:'use the leverage of the contract to obtain it, the contractor may gain an unfair competitive advantage unless restrictions are', 6039:'imposed. these restrictions protect the information and encourage companies to provide it when necessary for contract performance. they are not', 6040:'intended to protect information 1 furnished voluntarily without limitations on its use; or 2 available to the government or contractor', 6041:'from othersources without restriction. b a contractor that gains access to proprietary information of other companies in performing advisory and', 6042:'assistance services for the government must agree with the other companies to protect their information from unauthorized use or disclosure', 6043:'for as long as it remains proprietary and refrain from using the information for any purpose other than that for', 6044:'which it was furnished. the contractingofficer shall obtaincopies of these agreements and ensure that they are properly executed. c contractors', 6045:'also obtain proprietary and source selection information by acquiring the services of marketing consultants which, if used in connection with', 6046:'an acquisition, may give the contractor an unfair competitive advantage. contractors should make inquiries of marketing consultants to ensure that', 6047:'the marketing consultant has provided no unfair competitive advantage. 9.506 procedures. a if informationconcerning prospective contractorsis necessary to identify and', 6048:'evaluate potential organizational conflictsof interestor to develop recommended actions,contracting officers first should seek theinformationfrom within the government or from other', 6049:'readily available sources. government sources include the files and the knowledge of personnel within the contracting office, othercontracting offices,the cognizant', 6050:'contract administration and audit activities and offices concerned with contract financing. nongovernment sources include publications and commercial services, such as', 6051:'credit rating services, trade and financial journals, and business directories and registers. b if the contracting officer decides that a', 6052:'particular acquisition involves asignificant potential organizational conflict of interest, the contracting officershall, before issuing the solicitation, submit for approval to', 6053:'the chiefof the contractingoffice unless ahigher level official isdesignated bythe agency federal acquisition regulation 1 a written analysis, including a', 6054:'recommended course of action for avoiding, neutralizing, or mitigating the conflict, based on the general rules in 9.505 or on', 6055:'another basis not expressly stated in that section; 2 a draft solicitation provision see 9.5071; and 3 if appropriate, a', 6056:'proposed contract clause see 9.5072. c theapproving official shall 1 review the contracting officer’s analysis and recommended course of action,', 6057:'including thedraftprovision and any proposed clause; 2 consider the benefits and detriments to the government and prospective contractors; and 3', 6058:'approve, modify, or reject the recommendations in writing. d the contractingofficer shall 1 include the approved provisions and any approved', 6059:'clauses in the solicitation or the contract, or both; 2 consider additional information provided by prospective contractors in response to', 6060:'the solicitation or during negotiations; and 3 before awarding the contract, resolve the conflict or the potential conflict in a', 6061:'manner consistent with the approval or other direction by theheadof the contractingactivity. e if,during the effective period ofanyrestriction see 9.507,a', 6062:'contractingoffice transfersacquisitionresponsibility for theitem orsysteminvolved, it shall notify the successor contracting officeof the restriction, and send a copy of the', 6063:'contract under which the restriction was imposed. 9.507 solicitation provisionsand contractclause. 9.5071 solicitation provisions. as indicated in the general rules', 6064:'in 9.505,significant potential organizational conflictsof interestare normally resolved by imposing some restraint, appropriate tothe nature of theconflict, upon the contractor’s', 6065:'eligibility for future contractsor subcontracts. therefore, affected solicitations shall contain aprovision that a invites offerors’ attentionto this subpart; b states', 6066:'the nature of the potential conflict as seen by the contractingofficer; c states the nature of the proposed restraint upon', 6067:'future contractor activities; and d depending on the nature of the acquisition, states whether or not the terms of any', 6068:'proposed clause and the application of this subpart to the contract are subject to negotiation. 9.5072 contract clause. a if,as', 6069:'a condition of award, thecontractor’seligibility for futureprimecontract orsubcontract awards will berestricted or the contractor must agree to some other restraint,', 6070:'the solicitation shall contain a proposed clause that specifies both the nature and duration ofthe proposed restraint. the contracting officer', 6071:'shall include the clause in thecontract, first negotiating theclause’s final terms with the successful offeror, if it is appropriate to', 6072:'do so see 9.506d. b the restraint imposed by a clauseshallbe limited to a fixed term of reasonable duration, sufficient', 6073:'to avoid the circumstance of unfair competitive advantage or potential bias. this period varies. it might end, for example, when', 6074:'the first production contractusing the contractor’s specifications or work statement is awarded, or it might extend through the entire life', 6075:'of a system for which the contractor has performed systems engineering and technical direction. in every case, the restriction shall', 6076:'specify termination by a specific date or upon the occurrence of an identifiable event. 9.508examples. the examples in paragraphs a', 6077:'through i of this section illustrate situations in which questions concerning organizationalconflicts of interest may arise. they are not all', 6078:'inclusive,but are intended to help the contracting officer apply the general rules in 9.505 to individual contract situations. a company', 6079:'a agrees to provide systems engineering and technical direction for the navy on the powerplant for a group of submarines', 6080:'i.e., turbines, drive shafts, propellers, etc.. company a should not be allowed to supply any powerplant components. company a can,', 6081:'however, supply components ofthe submarine unrelated to the powerplant e.g., fire control, navigation, etc.. in this example, the system is', 6082:'the powerplant, not the submarine, and the ban on supplying components is limitedto those for the system only. b company', 6083:'a is the systems engineering and technical direction contractor for system x. after some progress, but beforecompletion, the system is', 6084:'canceled. later, system y isdevelopedto achieve thesame purposes assystem x,but in subpart 9.5 organizational and consultant conflicts of interest 9.508', 6085:'a fundamentallydifferent fashion. company b isthe systemsengineering andtechnicaldirection contractorforsystemy. company a may supply system y or its components. c company', 6086:'a develops new electronic equipment and, as a result of this development, prepares specifications. company a may supply the equipment.', 6087:'d xyz tool company and pqr machinerycompany, representing theamericantool institute, work under government supervision and control to refine specifications or', 6088:'to clarify the requirements of a specific acquisition. these companies may supply the item. e before an acquisition for information', 6089:'technology is conducted, company a is awarded a contract to prepare data system specifications and equipment performance criteria to be', 6090:'used as the basis for the equipment competition. since the specifications are the basis for selection of commercial hardware, a', 6091:'potential conflict of interest exists. company a should be excluded from the initial followon information technology hardware acquisition. f company', 6092:'a receives a contract to define the detailed performance characteristics an agency will require for purchasing rocket fuels. company a', 6093:'has not developed the particular fuels. when the definition contract is awarded, it is clear to both parties that the', 6094:'agency will use the performance characteristics arrived at to choose competitively a contractor to develop or produce the fuels. company', 6095:'a may not be awarded this followon contract. g company a receives a contract to prepare adetailed plan for scientificand', 6096:'technical trainingof an agency’s personnel. it suggests a curriculum that the agency endorses and incorporates in its request for proposals', 6097:'to institutions to establish and conduct the training. company a may not be awarded a contract to conduct the training.', 6098:'h company a is selected to study the use of lasers in communications. the agency intends to ask that firms', 6099:'doing research in the field make proprietary information available to company a. the contract must require company a to 1', 6100:'enter into agreements with these firms to protect any proprietary information they provide; and 2 refrain from using the information', 6101:'in supplying lasers to the government or for any purpose other than that for which it was intended. i an', 6102:'agency that regulates an industry wishes to develop a system for evaluating and processing license applications. contractor x helps develop', 6103:'the system and process the applications. contractor x should be prohibited from acting as a consultant to any of theapplicants', 6104:'during itsperiod of performance and for a reasonable period thereafter. this page intentionally left blank. subpart 9.6 contractor team arrangements', 6105:'9.604 subpart 9.6 contractor team arrangements 9.601definition. contractor team arrangement, as used in this subpart, means an arrangement in which', 6106:'1 two or more companies forma partnership or joint venture toact as a potential prime contractor;or 2 a potential prime', 6107:'contractor agrees with one or more other companies to have them act as its subcontractors under a specified government contract', 6108:'or acquisition program. 9.602general. a contractor team arrangements may be desirable from both a government and industry standpoint in order', 6109:'to enable the companies involved to 1 complement each other’s unique capabilities; and 2 offer the government the best combination', 6110:'of performance, cost, and delivery for the system orproduct being acquired. b contractor team arrangements may be particularly appropriate in', 6111:'complex research and development acquisitions, but may be used in other appropriate acquisitions, including production. c thecompanies involved normally form', 6112:'acontractor team arrangement before submitting an offer. however, they may enter into an arrangement later in the acquisition process, including', 6113:'after contract award. 9.603 policy. the government will recognize the integrity and validity of contractor team arrangements; provided, the arrangements', 6114:'are identified and company relationships are fully disclosed in an offeror, for arrangementsentered into after submissionof an offer, before the', 6115:'arrangementbecomes effective. the government will not normally require or encourage the dissolution of contractor team arrangements. 9.604limitations. nothing in this', 6116:'subpart authorizes contractor team arrangements in violation of antitrust statutes or limits the government’s rights to a require consent to', 6117:'subcontracts see subpart 44.2; b determine, on the basis of the stated contractor team arrangement, the responsibility of the prime', 6118:'contractor see subpart 9.1; c provide to the prime contractor data rights owned or controlled by the government; d pursue', 6119:'its policies on competitive contracting, subcontracting, and component breakout after initial production or at any other time; and e hold', 6120:'the prime contractor fully responsible for contract performance, regardless of any team arrangement between the prime contractor and its subcontractors.', 6121:'this page intentionally left blank. subpart 9.7 defense production pools and research and development pools 9.703 subpart 9.7 defense production', 6122:'pools and research and development pools 9.701definition. pool, as used in this subpart, means a group of concerns see 19.001', 6123:'that have 1 associated together in order toobtain andperform, jointlyor in conjunction with each other, defense productionor research and development', 6124:'contracts; 2 entered into anagreement governingtheir organization, relationship, and procedures; and 3 obtained approval of the agreement by either ithe', 6125:'small business administrationsba under section 9or 11 of thesmallbusinessact15 u.s.c.638 or 640 see 13 cfr125; or iiadesignated official underpartvof executive', 6126:'order10480, august 14,1953 18 fr4939, august 20,1953 and section 708 of the defense production act of1950 50 u.s.c. app.2158. 9.702contracting', 6127:'with pools. a except as specified in this subpart, a pool shall be treated the same as any other prospectiveor', 6128:'actual contractor. b the contractingofficer shall not award a contract to a pool unless theoffer leadingto the contractis submitted by', 6129:'the pool inits own name or by an individual poolmember expresslystating that the offeris on behalf of thepool. c upon', 6130:'receiptof an offer submittedby a group representing thatitis a pool, the contracting officer shall verify its approved status with thesba', 6131:'district office director or other approving agency and documentthe contract filethat the verification was made. d pools approved by the', 6132:'sba under the small business act are entitled to the preferences and privileges accorded to small business concerns. approval under', 6133:'the defense production act does not confer these preferences and privileges. e before awarding a contract toan unincorporated pool,the contracting', 6134:'officershallrequire each pool member participatingin thecontract to furnish acertifiedcopy ofa power ofattorney identifying the agent authorized to sign the offer', 6135:'or contract on that member’s behalf. the contracting officershallattach a copy of each power of attorney to eachsigned copy of', 6136:'the contract retained by the government. 9.703contracting with individual pool members. a pool members may submitindividual offers, independent of the', 6137:'pool. however, the contracting officer shall not consider an independent offer bya pool member if that pool memberparticipates in a', 6138:'competing offersubmitted by the pool. b if a pool member submitsan individual offer, independent of thepool, the contracting officer shall', 6139:'consider the pool agreement, along with other factors, in determining whether that pool member is a responsible prospective contractor under', 6140:'subpart 9.1. this page intentionally left blank. part 10 market research sec. 10.000 scope of part. 10.002 procedures. 10.001 policy.', 6141:'10.003 contract clause. this page intentionally left blank. part 10 market research 10.001 10.000scope of part. this part prescribes policies', 6142:'and procedures for conducting market research to arrive at the most suitable approach to acquiring, distributing, and supporting supplies and', 6143:'services. this part implements the requirements of 41 u.s.c. 3306a1, 41 u.s.c. 3307, 10 u.s.c. 3453, and 6 u.s.c. 796.', 6144:'10.001 policy. a agencies shall— 1 ensure that legitimate needsare identified and tradeoffs evaluatedto acquire items thatmeet thoseneeds; 2 conduct', 6145:'market research appropriate to the circumstances– i before developing new requirements documents for an acquisition by that agency; iibefore solicitingoffers', 6146:'for acquisitionswith an estimatedvaluein excess ofthe simplified acquisition threshold; iii before solicitingoffers for acquisitions withan estimatedvalue less thanthe simplified acquisition', 6147:'threshold when adequate information is not available and the circumstances justify its cost; iv beforesoliciting offers for acquisitions that couldlead', 6148:'toconsolidation or bundling 15 u.s.c. 644e2a and 15 u.s.c. 657q; v before awarding a task or delivery order under an', 6149:'indefinitedelivery/indefinitequantity id/iq contract e.g., gwacs, macs for other than a commercialproduct or commercial service in excess of thesimplified acquisition threshold', 6150:'10 u.s.c. 3453c; and vi on an ongoing basis, take advantage to the maximum extent practicable of commercially available market', 6151:'research methods in order to effectively identify the capabilities of small businesses and new entrants into federal contracting that are', 6152:'available in the marketplace for meeting the requirements of the agency in furtherance of aacontingency operationor defense againstor recovery fromcyber,', 6153:'nuclear, biological,chemical,or radiological attack; and b disaster relief to include debris removal, distribution of supplies, reconstruction, and other disaster or', 6154:'emergencyrelief activities see 26.205; and 3 use the results of market research to– idetermineif sources capable of satisfyingthe agency’s requirements', 6155:'exist; iidetermine if commercial productsor commercial services, or, tothe extent commercial products suitable to meet theagency’s needs arenot available, nondevelopmentalitems', 6156:'are available that ameet the agency’s requirements; b could be modified to meet the agency’s requirements; or c could meet', 6157:'the agency’srequirements ifthose requirementswere modifiedto a reasonable extent; iii determine the extent to which commercial products, or nondevelopmental items could', 6158:'be incorporated at the component level; iv determine the practices of firms engaged in producing, distributing, and supporting commercial products', 6159:'or commercial services, such as type of contract, terms for warranties, buyer financing, maintenance and packaging, and marking; v ensure', 6160:'maximum practicable use of sustainable products and services as defined in 2.101 in accordance with subpart 23.1; vi determine whether', 6161:'consolidation is necessary and justified see 7.1072 15 u.s.c. 657q; vii determine whether bundling is necessary and justified see 7.1073', 6162:'15 u.s.c. 644e2a; viii determine whether the acquisition should utilize any of the small business programs in accordance with part', 6163:'19; and ix assess the availability of supplies or services that meet all or part of the applicable information and', 6164:'communication technology accessibility standards at 36cfr1194.1 see subpart 39.2. b when conducting market research, agencies should not request potential sources', 6165:'to submit more than the minimum information necessary. c if an agency contemplates consolidation or bundling, the agency— 1 when', 6166:'performing market research, should consult with the agency small business specialist and the local small business administration procurement center representative', 6167:'pcr. if a pcr is not assigned, see 19.402a; and 2 shall notify any affected incumbent small businessconcerns ofthe governmentsintention', 6168:'to bundle the requirement and how small business concerns may contact the appropriate small business administration procurement center representative see', 6169:'7.1075a. federal acquisition regulation d see 10.003 for the requirement for a prime contractor to perform market research in contracts', 6170:'in excess of $6 million, other than contracts for the acquisition of commercial productsor commercial services section826 of pub. l.', 6171:'110181. 10.002 procedures. a acquisitions begin with adescription ofthe government’s needs stated interms sufficient toallow conduct of market research. b', 6172:'market research is then conducted to determine if commercial products, commercial services, or nondevelopmental items areavailable to meet the government’s', 6173:'needs orcould be modified to meet the government’sneeds. 1 the extentof market research will vary, depending on such factors as', 6174:'urgency, estimated dollar value, complexity, and past experience. the contracting officer may use market research conducted within 18months before the', 6175:'award of any task or delivery order if the information is still current, accurate, and relevant. market research involves obtaining', 6176:'information specific to the product or service being acquired and should include iwhether the government’s needscan be met by a', 6177:'products or services of a type customarily available in the commercial marketplace; b products or services of a type customarily', 6178:'available in the commercial marketplace with modifications; or c products or services used exclusively for governmental purposes; ii customary practices', 6179:'regarding customizing, modifying or tailoring of products or services to meet customer needs and associated costs; iii customary practices, includingwarranty,', 6180:'buyer financing, discounts, contracttype considering thenature and risk associated with the requirement, etc., under which commercial sales of the products', 6181:'or services are made; iv the requirements of any laws and regulations unique to the item being acquired; v the', 6182:'availability of items that contain recovered materials and items that are energy efficient; vi the distribution and support capabilities of', 6183:'potential suppliers, including alternative arrangements and cost estimates; and vii whether the governments needs can be met by small business', 6184:'concerns that will likely submit a competitive offer at fair market prices see part 19. 2 techniques for conducting market', 6185:'research may include any or all of the following: i contacting knowledgeable individuals in government and industry regarding market capabilities', 6186:'to meet requirements. ii reviewing the results of recent market research undertaken to meet similar or identical requirements. iii publishing', 6187:'formal requests for information in appropriate technical or scientific journals or business publications. iv querying the governmentwide database of contracts', 6188:'and other procurement instruments intended for use by multiple agencies available at https://www.contractdirectory.gov/contractdirectory/ and other government and commercial databases that', 6189:'provide information relevant to agency acquisitions. v participating in interactive,online communication among industry, acquisition personnel, and customers. vi obtaining source', 6190:'lists of similar items from other contracting activities or agencies, trade associations or other sources. vii reviewing catalogs and other', 6191:'generally available product literature published by manufacturers, distributors, and dealers or available online. viii conducting interchange meetings or holding presolicitation', 6192:'conferences toinvolve potential offerors early in the acquisition process. ix reviewing systems such as the system for award management,the federal', 6193:'procurement datasystem, andthe small business administrations dynamic small business search. c if market research indicates commercial products, commercial services, or', 6194:'nondevelopmental items might not be available to satisfy agency needs, agencies shall reevaluate the need in accordance with 10.001a3ii and', 6195:'determine whether the need can be restated to permit commercial products, commercial services, or nondevelopmental items to satisfy theagency’s needs.', 6196:'d 1ifmarketresearchestablishesthatthegovernment’sneedmaybemetbyatypeofproductorservicecustomarily available in the commercial marketplace that would meet the definition of a commercial product or commercial service at', 6197:'subpart 2.1,thecontractingofficershallsolicitandawardanyresultantcontractusingthepoliciesandproceduresin part 12. part 10 market research 10.003 2 if market research establishes that the government’sneedcannot be met bya', 6198:'type of item orservice customarily available in the marketplace, part 12 shall not be used. when publication of the notice', 6199:'at 5.201 is required, the contracting officershallincludeanoticetoprospectiveofferorsthatthegovernmentdoesnotintendtouse part 12 for the acquisition. e the head of the agency shall document', 6200:'the results of market research in a manner appropriate to the size and complexity of the acquisition. 10.003contract clause. the', 6201:'contractingofficer shall insertthe clause at 52.2101, market research, in solicitations and contracts over $6 million, other than solicitations and contracts', 6202:'for the acquisition of commercial products or commercial services. this page intentionally left blank. 10.04 part 11 describing agency needs', 6203:'sec. 11.000 scope of part. subpart 11.4 delivery or 11.001 definitions. performance schedules 11.002 policy. 11.401 general. 11.402 factors to', 6204:'consider in establishing schedules. subpart 11.1 selecting and 11.403 supplies or services. developing requirements documents 11.404 contract clauses. 11.101 order', 6205:'of precedence for requirements documents. subpart 11.5 liquidated damages 11.102 standardization program. 11.500 scope. 11.103 market acceptance. 11.501 policy. 11.104', 6206:'use of brand name or equal purchase 11.502 procedures. descriptions. 11.503 contract clauses. 11.105 items peculiar to one manufacturer. 11.106', 6207:'purchase descriptions for service contracts. subpart 11.6 priorities and allocations 11.107 solicitation provision. 11.600 scope of subpart. 11.601 definitions. subpart', 6208:'11.2 using and maintaining 11.602 general. requirements documents 11.603 procedures. 11.201 identification and availability of 11.604 solicitation provision and contract', 6209:'clause. specifications. 11.202 maintenance of standardization documents. subpart 11.7 variation in quantity 11.203 customer satisfaction. 11.701 supply contracts. 11.204 solicitation', 6210:'provisions. 11.702 construction contracts. 11.703 contract clauses. subpart 11.3 acceptable material 11.301 policy. subpart 11.8 testing 11.302 contract clause. 11.801', 6211:'preaward inuse evaluation. this page intentionally left blank. 11.000scope of part. this part prescribes policies and procedures for describing agency', 6212:'needs. 11.001 definitions. as used in this part reconditioned means restored to the original normal operating condition by readjustments and', 6213:'material replacement. remanufactured means factory rebuilt to original specifications. 11.002policy. a in fulfilling requirements of 10 u.s.c. 3206a, 10 u.s.c.', 6214:'3453, 41 u.s.c. 3306a, and 41 u.s.c.3307, agencies shall 1 specify needs using market research in a manner designed to', 6215:'i promote full and open competition see part 6, or maximum practicable competition when using simplified acquisition procedures, with due', 6216:'regard to the nature of the supplies or services to be acquired; and ii only include restrictive provisions or conditions', 6217:'to the extent necessary to satisfy the needs of the agency or as authorized by law. 2 to the maximumextent', 6218:'practicable, ensurethat acquisition officials i state requirements with respect to an acquisition of supplies or services in terms of a', 6219:'functions to be performed; b performance required; or c essential physical characteristics; iidefine requirements in terms that enable and encourage', 6220:'offerors to supply commercial products or commercial services or, to the extent thatcommercial products suitableto meetthe agency’s needs are not', 6221:'available, nondevelopmental items, in response to the agency solicitations; iii provideofferorsof commercial products, commercialservices, and nondevelopmental items an opportunity to', 6222:'compete in any acquisition to fill such requirements; iv require prime contractors and subcontractors at all tiers under the agency', 6223:'contracts to incorporate commercial products, commercial services, or nondevelopmental items as components of items supplied to the agency; and v', 6224:'modify requirements in appropriate cases to ensure that the requirements can be met by commercial products or commercial services or,to', 6225:'the extent that commercial products suitable to meet the agency’s needsare not available, nondevelopmental items. b the metric conversion act', 6226:'of 1975, asamended by theomnibus trade and competitivenessactof 1988 15 u.s.c. 205a, et seq., designates the metric system of measurement', 6227:'as the preferred system of weights and measures for united states trade and commerce, and it requires that each agency', 6228:'use the metric system of measurement in its acquisitions, except to the extent that such use isimpracticable or is likely', 6229:'to cause significantinefficiencies or loss of markets to united states firms. requiring activities are responsible for establishing guidance implementing this', 6230:'policy in formulating their requirements for acquisitions. ctotheextentpracticableandconsistentwith subpart 9.5,potentialofferorsshouldbegivenanopportunitytocomment on agency requirements or to recommend application and tailoring of', 6231:'requirements documents and alternative approaches. requiring agencies should apply specifications, standards,andrelated documents initially for guidance only, making final decisions on', 6232:'the application and tailoring of these documents as a product of the design and development process. requiring agencies should not', 6233:'dictate detailed design solutions prematurely see 7.101 and 7.105a8. d 1 agencies shall procure sustainable products and services as defined', 6234:'in 2.101 in accordance with subpart 23.1. 2 unless it is not practicable see 23.104a or an exception or exemption', 6235:'applies see 23.105 and 23.106, respectively, agencies shall incorporate the use of sustainable products and services when— i developing, reviewing,', 6236:'or revising federal and military specifications, product descriptions including commercial item descriptions and standards; ii describing government requirements for products', 6237:'and services; and iii developing sourceselection factors. 3 the green procurement compilation gpc available at https://sftool.gov/greenprocurement provides a comprehensive list', 6238:'of sustainable products and services and other related sustainable acquisition guidance. agencies should — i consult the gpc when determining', 6239:'which purchasing programs apply to a specific product or service; and federal acquisition regulation ii incorporate into agency requirements any', 6240:'required standards, specifications, or ecolabels identified in the gpc for a specific product or service. e some or all of', 6241:'the performance levels or performance specifications in a solicitation may be identifiedas targets rather than as fixed or minimum requirements.', 6242:'f in accordance with section 508 of the rehabilitation act of 1973 29 u.s.c. 794d, the contractingofficer shall obtain from', 6243:'the requiring activity the requirement documents, which must identify— 1 the needs of current and future users with disabilities to', 6244:'determine how– i users with disabilities will perform the functions supported by the information and communication technology ict; ii the', 6245:'ict will be developed, installed, configured and maintained to support users with disabilities; 2 the applicable ict accessibility standards see', 6246:'subpart 39.2; and 3 any ict accessibility standards that cannot be met due to an exception or an exemption for', 6247:'any component or portion of the product see 7.105b5iv, 39.204, and 39.205. g unlessthe agency chief information officer waives the', 6248:'requirement, when acquiringinformation technology using internet protocol, the requirements documents must include reference to the appropriate technical capabilities defined in', 6249:'the usgv6 profile nist special publication 500267 and the corresponding declarations of conformance defined in the usgv6 test program. the', 6250:'applicability of ipv6 to agency networks, infrastructure,andapplicationsspecific to individual acquisitions will be in accordance with the agencys enterprise architecture see', 6251:'omb memorandum m0522 dated august 2, 2005. h agencies shall not include in a solicitation a requirement that prohibits an', 6252:'offeror from permitting its employeesto telecommute unless the contracting officerexecutes a written determination in accordance with far 7.108a. subpart 11.1', 6253:'selecting and developing requirements documents 11.101order of precedence for requirements documents. a agencies may select from existing requirements documents, modify', 6254:'or combine existing requirements documents, or create new requirements documents to meet agency needs, consistent with the following order of', 6255:'precedence: 1 documents mandatedforuse bylaw. 2 performanceoriented documents e.g., a pws or soo. see 2.101. 3 detailed designoriented documents. 4', 6256:'standards, specifications and related publications issued by the government outside the defense or federal series for the nonrepetitive acquisition of', 6257:'items. b in accordance with omb circular a119, federal participation in the development and use of voluntary consensus standards and', 6258:'in conformity assessment activities, and section 12dof the national technologytransfer and advancement act of1995, pub. l. 104113 15 u.s.c. 272', 6259:'note, agencies must use voluntary consensus standards, when they exist, in lieu of governmentunique standards, except where inconsistent with law', 6260:'or otherwise impractical. the private sector manages and administers voluntary consensus standards. such standards are not mandated by law e.g.,', 6261:'industry standards such as iso 9000, and ieee 1680. 11.102standardization program. agencies shall select existing requirements documents or develop new', 6262:'requirements documents that meet the needs of the agency in accordance with the guidance contained in the federal standardization manual,', 6263:'fspm0001; for dod components, dod manual 4120.24, defense standardization program dsp procedures; and for it standards and guidance, the federal', 6264:'information processing standards publications fips pubs. the federal standardization manual may be obtained from the general services administration see address', 6265:'in 11.201d1. dod manual 4120.24 may be obtained from dod https:// www.esd.whs.mil/directives/issuances/dodm or see 11.201d2 or 3. fips pubs may', 6266:'be obtained from the government publishing office gpo, or the departmentof commerces nationaltechnical information service ntis see addressin 11.201d4. 11.103market', 6267:'acceptance. a 41 u.s.c. 3307e provides that, in accordancewith agency procedures, the head of an agency may, under appropriate circumstances,', 6268:'require offerors to demonstrate thatthe items offered 1 have either subpart 11.1 selecting and developing requirements documents 11.106 i achieved', 6269:'commercial market acceptance; or ii been satisfactorily supplied to an agency under current or recent contracts for the same or', 6270:'similar requirements; and 2 otherwise meet the item description, specifications, or other criteria prescribed in the public notice and solicitation.', 6271:'b appropriate circumstancesmay, for example, includesituationswhere the agency’s minimum need is for an item that has a demonstrated reliability, performance', 6272:'orproduct supportrecord ina specifiedenvironment. use of marketacceptance is inappropriate when newor evolving items may meet the agency’sneeds. c in developing', 6273:'criteria for demonstrating that an item has achieved commercial market acceptance, the contracting officer shall ensure the criteria in the', 6274:'solicitation 1 reflect theminimum need of the agencyandare reasonablyrelated to the demonstration of anitem’s acceptability to meet the agency’s minimum', 6275:'need; 2 relate to an item’sperformance and intended use, notan offeror’s capability; 3 are supported by market research; 4 include', 6276:'consideration of items supplied satisfactorily under recent or current government contracts, for the same or similar items; and 5 consider', 6277:'the entire relevant commercial market, including small business concerns. d commercial market acceptance shall not be used as a sole', 6278:'criterion to evaluate whether an item meets the government’s requirements. e when commercialmarketacceptance isused, the contractingofficer shall document the file', 6279:'to 1 describe the circumstances justifying the use of commercial market acceptance criteria; and 2 support the specific criteria being', 6280:'used. 11.104use of brandname or equal purchase descriptions. a whilethe use of performancespecifications is preferred to encourage offerors to propose', 6281:'innovative solutions,the use of brand name or equal purchase descriptions may be advantageous under certain circumstances. b brand name or', 6282:'equal purchase descriptions must include, in addition to the brand name, a general description of those salient physical, functional, or', 6283:'performance characteristics of the brand name item that an equal item must meet to be acceptable for award. use brand', 6284:'name or equal descriptions when the salient characteristics are firm requirements. 11.105items peculiar toone manufacturer. agency requirements shall not be', 6285:'written so as to require a particular brand name, product, or a feature of a product, peculiar toonemanufacturer, thereby precluding', 6286:'consideration of a product manufactured by another company, unless a 1theparticularbrandname,product,orfeatureisessentialtothegovernment’srequirements,andmarketresearch indicates other companies’ similar products, or products lacking the', 6287:'particular feature, do not meet, or cannot be modified to meet, the agency’s needs; 2 i the authority to contract', 6288:'without providing for full and open competition is supported by the required justifications and approvals see 6.3021; or ii the', 6289:'basis for not providing for maximum practicable competition is documented in the file see 13.1061b or justified see 13.501 when', 6290:'the acquisition is awarded using simplified acquisition procedures. 3 the documentation or justification is posted for acquisitions over $25,000. see', 6291:'5.102a6. b for multiple award schedule orders, see 8.4056. c for orders under indefinitequantity contracts, see 16.505a4. 11.106purchase descriptions for', 6292:'service contracts. in drafting purchase descriptions for service contracts, agency requiring activities shall ensure that inherently governmental functions see subpart', 6293:'7.5arenotassignedtoacontractor. thesepurchasedescriptionsshall a reserve finaldetermination for government officials; b require proper identification of contractor personnel who attend meetings, answer government', 6294:'telephones, or work in situationswhere their actions couldbe construedas acts of government officials unless, in the judgmentof the agency, no', 6295:'harm can come from failing to identify themselves; and c require suitable marking of all documents or reports produced by', 6296:'contractors. federal acquisition regulation 11.107solicitation provision. a insert the provision at 52.2116, brand name or equal, when brand name or', 6297:'equal purchase descriptions are included in a solicitation. b insert the provision at 52.2117, alternatives to governmentunique standards, in solicitations', 6298:'that use government unique standards when the agency uses the transactionbased reporting method to report its use of voluntary consensus', 6299:'standards to thenational instituteof standards and technology see omb circular a119, federal participation in the development anduse of voluntary consensus', 6300:'standards and in conformity assessment activities. use of the provision is optional for agencies that report their use of voluntary', 6301:'consensus standards to the national institute of standards and technology using the categoricalreportingmethod. agenciesthat manage their specificationson acontractbycontract basis use', 6302:'the transactionbased method of reporting. agencies that manage their specifications centrally use the categorical method of reporting. agency regulations regarding', 6303:'specification management describe which method is used. subpart 11.2 using and maintaining requirements documents 11.202 subpart 11.2 using and maintaining', 6304:'requirements documents 11.201identification and availability of specifications. a solicitations citing requirements documents listed in the general services administration gsa index', 6305:'of federal specifications, standards and commercial item descriptions, available on the dod acquisition streamlining and standardization information system assist website,', 6306:'or listed in other agency index shall identify each document’s approval date and the dates of any applicable amendments and', 6307:'revisions. do not use general identification references, such as theissue ineffect on the date ofthe solicitation. contracting offices will notnormally', 6308:'furnish these cited documents with the solicitation, except when 1 the requirements document must be furnished with the solicitation to', 6309:'enable prospective contractors to make a competent evaluation of the solicitation; 2 in the judgment of the contracting officer, it', 6310:'would be impracticable for prospectivecontractors to obtain the documents in reasonable time to respond to the solicitation; or 3 a', 6311:'prospective contractor requests a copy of a government promulgated requirements document. b contracting offices shall clearly identify in the solicitation', 6312:'any pertinent documents not listed inthe gsaindex of federalspecifications, standards and commercial itemdescriptions or assist. such documents shall be furnishedwith', 6313:'the solicitation or specific instructions shall be furnished for obtaining or examining such documents. c when documents refer to other', 6314:'documents, such references shall– 1 be restricted to documents, or appropriate portions of documents, that apply in the acquisition; 2', 6315:'cite the extent of their applicability; 3 not conflict with other documents and provisions of the solicitation; and 4 identify', 6316:'all applicable first tier references. d 1 the gsa index of federal specifications, standards and commercial item descriptions, fpmr part', 6317:'101–29, may be viewed at the assist website at https://assist.dla.mil. 2 most unclassified defense specifications and standards may be downloaded', 6318:'from the assist website at https:// assist.dla.mil. 3 defense documents not available from the assist website may be ordered from', 6319:'the defense standardization program office by— i using the assist feedback module at https://assist.dla.mil/feedback; or iicontacting the defense standardization program', 6320:'officeby telephone at 571–767–6888 or email at assisthelp@dla.mil. 4 the fips pubs may be obtained from— http://www.itl.nist.gov/fipspubs/, or purchased from', 6321:'the superintendent of documents, u.s. government publishing office, washington,dc 20402, telephone202 5121800, facsimile 202 5122250; or nationaltechnicalinformation servicentis, 5285 port', 6322:'royal road, springfield, va 22161, telephone 703 6056000, facsimile 703 6056900, email: orders@ntis.gov. e agencies may purchase some nongovernment standards,', 6323:'including voluntary consensus standards, from the national technical information service’s fedworld information network. agencies may also obtain nongovernment standards from', 6324:'thestandards developing organization responsible for the preparation,publication, or maintenance ofthe standard, or from an authorized document reseller. thenational instituteof standards', 6325:'and technology can assistagencies in identifyingsources for,and contentof,nongovernment standards. dod activities may obtain from thedefense standardization program office those nongovernment', 6326:'standards, including voluntary consensus standards, adopted for use by defense activities. 11.202maintenance of standardization documents. a recommendations for changes to', 6327:'standardization documents listed in the gsa index of federal specifications, standards and commercial item descriptions should be submitted to the', 6328:'general services administration federalsupply service office of acquisition washington, dc 20406. agencies shall submit recommendations for changes to standardization documents', 6329:'available at the assist website to the cognizantpreparing activity. b when an agency cites an existing standardization document but modifies', 6330:'it to meet its needs, the agency shall follow the guidance in federal standardization manual and, for defense components, dod', 6331:'manual 4120.24, defense standardization program dsp procedures. federal acquisition regulation 11.203customer satisfaction. acquisition organizations shall communicate with customers to determine', 6332:'how well the requirements document reflects thecustomer’s needs and to obtain suggestions for corrective actions. wheneverpracticable, the agency may provide', 6333:'affected industry an opportunity to comment on the requirements documents. 11.204solicitation provisions. a thecontracting officer shall insert the provision at', 6334:'52.2111, availability of specificationslisted in the gsa index of federal specifications, standards and commercial item descriptions, fpmr part 10129, in', 6335:'solicitations that cite specifications listed in the index that are not furnished with the solicitation. b the contractingofficer shall insertthe', 6336:'provisionat 52.2112,availability of defensespecifications, standards, and data item descriptions in the acquisition streamlining and standardization information system assist website, in', 6337:'solicitations that cite specifications available in assist that are not furnished with the solicitation. c thecontracting officer shall insert aprovision', 6338:'substantiallythe same as theprovision at 52.2113, availability of specifications not listed in the gsa index of federal specifications, standards and', 6339:'commercial item descriptions, in solicitations that cite specifications that are not listed in the index and are not furnished with', 6340:'the solicitation, but may be obtained from a designated source. d the contractingofficer shall inserta provision substantially the same as', 6341:'the provision at 52.2114, availability for examination of specifications not listed in the gsa index of federal specifications, standards and', 6342:'commercial item descriptions, in solicitations that cite specifications that are not listed in the index and are available for examination', 6343:'at a specified location. subpart 11.3 acceptable material 11.302 subpart 11.3 acceptable material 11.301policy. a agencies must not requirevirgin material', 6344:'or supplies composedof or manufacturedusing virgin materialunless compelledby law or regulation orunlessvirgin material isvital for safety or meeting performance requirements', 6345:'of the contract. b 1 when acquiring products other than commercial products as defined in 2.101,agenciesmustrequireofferorsto identify used, reconditioned, or', 6346:'remanufactured supplies; or unused former government surplus property proposed for use under the contract. these supplies or property may not', 6347:'be used in contract performance unless authorized by the contracting officer. 2 when acquiring commercialproducts, thecontracting officer must consider the', 6348:'customary practices in the industry for theproduct being acquired. the contracting officermay require offerors to provide information on used,reconditioned, or', 6349:'remanufactured supplies, or unused former government surplus property proposed for use under the contract. the request for the information must', 6350:'be included in the solicitation, and to the maximum extent practicable must be limited to information or standards consistent with', 6351:'normal commercial practices. c 1whenthecontractingofficerneedsadditionalinformationtodeterminewhethersuppliesmeetminimumrecovered material or biobasedstandards stated in the solicitation, the contracting officer may require offerors tosubmit additional', 6352:'information on the recycled or biobased content or related standards. the request for the information must be included in the', 6353:'solicitation. when acquiring commercial products, limit the information to the maximum extent practicable to that available under normal commercial practices.', 6354:'2 for biobased products, agencies may not require, as a condition of purchase of such products, the vendor or manufacturer', 6355:'to providemore data than would typically beprovided byotherbusinessentities offering products for sale to theagency, otherthan data confirming thebiobased content of', 6356:'a product see 7 cfr 3201.8. 11.302contract clause. insert the clause at 52.2115, material requirements, in solicitations and contracts for', 6357:'supplies that are not commercial products. this page intentionally left blank. 11.32 subpart 11.4 delivery or performance schedules 11.403 subpart', 6358:'11.4 delivery or performance schedules 11.401general. a the time of delivery or performance is an essential contract element and shall', 6359:'be clearly stated in solicitations. contracting officersshallensure that delivery or performanceschedules arerealisticand meet the requirements of the acquisition. schedules that', 6360:'are unnecessarily short or difficult to attain 1 tend to restrict competition, 2 are inconsistent with small business policies, and', 6361:'3 may result in higher contract prices. b solicitations shall, except when clearly unnecessary,inform bidders or offerors ofthe basis onwhich', 6362:'their bids or proposals will be evaluated with respect to time of delivery or performance. c if timely delivery or', 6363:'performance is unusually important to the government, liquidated damages clauses may be used see subpart 11.5. 11.402factors to consider in', 6364:'establishing schedules. a supplies or services. when establishing a contract delivery or performance schedule, consideration shall be given to applicable', 6365:'factors such as the 1 urgency of need; 2 industry practices; 3 market conditions; 4 transportation time; 5 production time;', 6366:'6 capabilities of small business concerns; 7 administrative time for obtaining and evaluating offers andforawarding contracts; 8 timeforcontractors to comply', 6367:'with any conditions precedent to contract performance; and 9 timeforthe government to perform its obligations underthe contract; e.g., furnishing government', 6368:'property. b construction.when scheduling the time for completion ofa construction contract, the contracting officer shall consider applicable factors such as', 6369:'the 1 nature and complexity of the project; 2 construction seasons involved; 3 required completion date; 4 availability ofmaterials and', 6370:'equipment; 5 capacity of the contractor to perform; and 6 use of multiple completion dates. in any given contract, separate', 6371:'completion dates may be established for separable items of work. when multiple completion dates are used, requests for extension of', 6372:'time must be evaluated with respectto each item, and theaffected completion dates modified whenappropriate. 11.403supplies or services. a thecontracting officer', 6373:'may express contractdelivery or performance schedules in terms of 1 specific calendar dates; 2 specific periods from the date of', 6374:'the contract; i.e., from the date of award or acceptance by the government, or from the date shown as the', 6375:'effective dateof the contract; 3 specific periods from the date of receipt by the contractor of the notice of award', 6376:'or acceptance by the government including notice by receipt of contract document executed by the government; or 4 specific time', 6377:'for delivery after receipt by the contractor of each individual order issued under the contract, as in indefinite delivery type', 6378:'contracts and gsa schedules. b the time specified for contract performance should not be curtailed to the prejudice of the', 6379:'contractor because of delay by the government in giving notice of award. c if the delivery schedule is basedon the', 6380:'date of the contract, thecontracting officer shall mail or otherwise furnish to the contractor the contract, notice of award, acceptance', 6381:'of proposal, or other contract document not later than the date of the contract. d if the delivery schedule is', 6382:'based on the date the contractor receives the notice of award, or if the delivery schedule is expressed in terms', 6383:'of specific calendar dates on the assumption that the notice of award will be received by a specified federal acquisition', 6384:'regulation date, the contracting officer shall send the contract, notice of award, acceptance of proposal, or other contract document by', 6385:'certified mail, return receipt requested, or by any other method that will provide evidence of the date of receipt. e', 6386:'ininvitations for bids, if thedelivery schedule isbased on thedate of the contract, anda bidoffers delivery based on thedate thecontractor receives', 6387:'the contractor notice of award, the contracting officer shall evaluate the bid by adding5 calendar days as representing the normal', 6388:'time for arrival through ordinary mail. if the contract or notice of award will be transmitted electronically, 1 the solicitationshallso', 6389:'state; and 2 the contractingofficer shall evaluate delivery schedule basedon the dateof contract receipt or notice ofaward,by adding oneworking day.', 6390:'theterm working day excludes weekends and u.s. federal holidays. if the offered deliverydate computed with mailing or transmittal timeis laterthan', 6391:'the delivery date required by the invitation for bids, the bid shall be considered nonresponsive and rejected. if award is', 6392:'made, the delivery date will be the numberof days offered inthe bid afterthe contractor actuallyreceives the noticeof award. 11.404contract clauses.', 6393:'a supplies or services. 1 the contractingofficer may use a time of delivery clause to setforth a required delivery schedule', 6394:'and to allowan offerorto propose an alternative delivery schedule. the clauses and their alternates may beused in solicitations and contracts', 6395:'for other than construction and architectengineering substantially as shown, or they may be changed or new clauses written. 2 the', 6396:'contractingofficer may insert in solicitations and contractsotherthan those for construction and architect engineering, a clause substantially the same as the', 6397:'clause at 52.2118,time of delivery, ifthe government requires delivery by a particular time and the delivery schedule is to be', 6398:'based on the date of the contract. if the delivery schedule is expressed in terms of specific calendar dates or', 6399:'specificperiodsand is based onan assumeddate of award, the contracting officer may use the clause with its alternate i. if the', 6400:'delivery schedule is expressed in terms of specific calendar dates or specific periods and isbased on anassumed datethe contractor willreceivenotice', 6401:'of award, thecontracting officer may use the clause with its alternate ii. if the delivery schedule is to be based', 6402:'on the actual date the contractor receives a written notice of award, the contracting officermay usethe clause withits alternate iii.', 6403:'3 the contractingofficer may insert in solicitations and contractsotherthan those for construction and architect engineering, a clause substantially the same', 6404:'as the clause at 52.2119,desired and required time of delivery, if the government desires delivery by a certain time but', 6405:'requires delivery by a specified later time, and the delivery schedule is to be based on the date of the', 6406:'contract. if the delivery schedule is expressed in terms of specific calendar dates or specific periods and isbased on anassumed', 6407:'dateof award, the contractingofficer may use the clause with its alternate i. if the delivery schedule is expressed in terms', 6408:'of specific calendar dates or specific periods and is based on an assumed date the contractor willreceivenotice of award, thecontracting', 6409:'officer may use theclause with itsalternate ii. if the delivery schedule isto bebased on theactual date the contractor receivesa written', 6410:'notice of award, the contracting officer mayuse the clause with its alternate iii. b construction.the contracting officer shall insert theclause', 6411:'at 52.21110, commencement, prosecution, and completion of work, insolicitationsandcontracts when a fixedprice construction contract is contemplated. the clause may be', 6412:'changed to accommodate the issuance of orders under indefinitedelivery contracts. if the completion date is expressed as a specificcalendar date,computed', 6413:'on the basis of the contractor receiving the notice to proceed by a certain day, the contracting officermay usethe clause', 6414:'withits alternate i. subpart 11.5 liquidated damages 11.503 subpart 11.5 liquidated damages 11.500scope. a this subpart prescribes policies and procedures', 6415:'for using liquidated damages clauses in solicitations and contracts for supplies, services, research and development, and construction. b this subpart', 6416:'does not apply to liquidated damages 1 for subcontracting plans see 19.7057; 2relatedtothecontractworkhoursandsafetystandardsstatutesee subpart 22.3; or 3 related to paid', 6417:'sick leave for federal contractors see subpart 22.21. 11.501policy. a thecontracting officer must consider the potential impact onpricing, competition, and', 6418:'contract administration before using a liquidated damages clause. use liquidated damages clauses only when 1 the time of delivery or', 6419:'timelyperformance is so important that the government may reasonablyexpectto suffer damage if the delivery or performance is delinquent; and 2', 6420:'the extentor amount ofsuch damage would be difficult or impossibleto estimate accurately or prove. b liquidated damages are not punitive', 6421:'and are not negative performance incentives see 16.4022. liquidated damages are used to compensate the government for probable damages. therefore,', 6422:'the liquidated damages rate must be a reasonable forecast of just compensation for the harm that is caused by late', 6423:'delivery or untimely performance of the particular contract. use a maximum amount or a maximum period for assessing liquidated damages', 6424:'if these limits reflect the maximum probable damage tothe government. also, the contracting officer may use more than one liquidated', 6425:'damages rate whenthe contracting officerexpects the probabledamage to the government to changeover the contract period ofperformance. c thecontracting officer must', 6426:'take all reasonable steps to mitigate liquidated damages. if thecontract contains a liquidated damages clauseand the contracting officeris considering terminating', 6427:'the contract for default, the contracting officer should seek expeditiously to obtain performance bythe contractor orterminatethe contract and repurchase see', 6428:'subpart 49.4. promptcontractingofficeractionwillpreventexcessivelosstodefaultingcontractorsandprotecttheinterests of the government. d the head of the agency may reduce or waive the amount of liquidated', 6429:'damages assessed under a contract, if the commissioner, financialmanagement service, ordesigneeapproves see treasury order 14510. 11.502procedures. a include the applicable', 6430:'liquidated damages clause and liquidated damages rates in solicitations when the contract will contain liquidated damages provisions. b construction contracts', 6431:'with liquidated damages provisions must describe the rates of liquidated damages assessed per day of delay. the rates should includethe', 6432:'estimated daily cost of government inspection and superintendence. the rates should also include an amount for other expected expenses associated', 6433:'with delayed completion such as 1 renting substitute property; or 2 paying additional allowance for living quarters. 11.503contract clauses. a', 6434:'use the clause at 52.21111, liquidated damagessupplies, services, or research and development, in fixedprice solicitations and contracts for supplies, services,', 6435:'or research and development when the contracting officer determines that liquidated damages are appropriate see 11.501a. b use the clause', 6436:'at 52.21112, liquidated damagesconstruction, in solicitations and contracts for construction, other than costplusfixedfee, when thecontracting officer determines thatliquidated damages are', 6437:'appropriatesee 11.501a. if the contract specifies more than one completion date for separate parts or stages of the work, revise', 6438:'paragraph a of the clause to state the amount of liquidated damages for delay of each separate part or stage', 6439:'of the work. c use the clause at 52.21113,time extensions, in solicitations and contracts for constructionthat use the clause at', 6440:'52.21112, liquidated damagesconstruction, when that clause has been revised as provided in paragraph b of this section. this page intentionally', 6441:'left blank. 11.52 subpart 11.6 priorities and allocations 11.603 subpart 11.6 priorities and allocations 11.600scope of subpart. this subpart implements', 6442:'thedefense priorities and allocations system dpas, a department of commerce regulationin support of approved national defense, emergency preparedness,andenergyprograms see 15', 6443:'cfr part 700. 11.601definitions. as used in this subpart approved program means a program determined as necessary or appropriate for', 6444:'priorities and allocations support to promote the national defense by thesecretary of defense, the secretary of energy,or the secretary ofhomeland', 6445:'security, underthe authorityof the defense production act, thestafford act,and executive order 12919, orthe selective service act and related statutes and', 6446:'executive order 12742. delegate agency means a government agency authorized by delegation from the department of commerce to place priority', 6447:'ratings on contracts or orders needed to support approved programs. national defense means programs for military and energy productionor construction,', 6448:'military assistance toanyforeign nation, stockpiling,space, and any directly related activity. suchterm includes emergency preparedness activities conducted pursuant to title vi', 6449:'of the robert t. stafford disaster relief and emergency assistance act 42 u.s.c. 5195 et seq. and critical infrastructure protection', 6450:'and restoration. 50 u.s.c. app. § 2152. rated order means a prime contract, a subcontract, or a purchase order in', 6451:'support of an approved program issued in accordance with theprovisions of the dpas regulation 15 cfr part 700. 11.602general. a', 6452:'under title i of thedefense productionactof 1950 50 u.s.c. app.2061, et seq., the president is authorized to require preferential acceptance', 6453:'and performance of contracts and orders supporting certain approved national defense and energy programs andto allocatematerials, services, and facilities in', 6454:'such a manner asto promotethese approved programs. b the president delegated the priorities and allocations authorities of the defense production', 6455:'act in executive order 12919. aspart of thatdelegation, the president designated the secretaryof commerce to administerthe dpas. for more information,', 6456:'check the dpaswebsiteat: https://www.bis.doc.gov/index.php/otherareas/strategicindustriesandeconomicsecurity sies/defenseprioritiesaallocationssystemprogramdpas. 11.603procedures. a there are two levels ofpriority for rated orders established by the dpas, identifiedby', 6457:'the rating symbols do and dx. all do rated orders have equal priority with each other and take preference over', 6458:'unrated orders. all dx rated orders have equal priority with each other and take preference over do rated and unrated', 6459:'orders see 15 cfr 700.11. the dpas regulation contains provisions concerning the elements of a rated order see 15 cfr', 6460:'700.12; acceptance and rejection of rated orders see 15 cfr 700.13; preferential scheduling see 15 cfr 700.14; extension of priority', 6461:'ratings flowdown see 15 cfr 700.15; changes or cancellations of priority ratings and rated orders see 15 cfr 700.16; use', 6462:'of rated orders see 15 cfr 700.17; and limitations on placing rated orders see 15 cfr 700.18. b the delegate', 6463:'agencies have been given authority by the department of commerce to place rated orders in support of approved programs see', 6464:'schedule i of the dpas. other u.s. government agencies, canada, and foreignnations may apply for priority rating authority. c rated', 6465:'orders shall be placed in accordance with the provisionsof the dpas. d agency heads shall ensurecompliance with the dpasby contracting', 6466:'activities withintheir agencies. e agency heads shall provide contracting activities with specific guidance on the issuance of rated orders in', 6467:'support of approved agency programs, including the general limitations and jurisdictional limitations on placing rated orders see 15 cfr 700.18', 6468:'and executive order 12919. f contracting officersshallfollow agency procedural instructionsconcerning the use of rated orders in support of approved agency', 6469:'programs. g contracting officers, contractors, or subcontractorsat any tier,that experience difficultyplacing ratedorders, obtaining timelydelivery underrated orders,locatinga contractoror supplier to fill', 6470:'a rated order, ensuring thatrated orders receive preferential treatment by contractors or suppliers, or require rating authority for items not', 6471:'automatically ratable under the dpas, should promptly seek special priorities assistance in accordancewith agency procedures see 15 cfr 700.50700.55 and', 6472:'700.80. federal acquisition regulation h the department of commerce maytake specificofficial actions ratingsauthorizations, directives, lettersof understanding, administrative subpoenas, demands for', 6473:'information, and inspection authorizations to implement or enforcethe provisions of the dpas see 15 cfr 700.60700.71. icontracting officers shall reportpromptly', 6474:'any violations of the dpas inaccordance withagency procedures to the office of strategic industries and economicsecurity, u.s. department of commerce,', 6475:'room3876, washington, dc 20230, ref: dpas;telephone: 202 4823634or fax: 202 4825650. 11.604solicitation provision and contract clause. a contracting officers shall', 6476:'insertthe provisionat 52.21114, notice of priority rating for nationaldefense, emergency preparedness, and energy program use, in solicitations when the contract', 6477:'tobe awarded will bea rated order. b contracting officersshallinsert the clauseat 52.21115, defense priority and allocation requirements, in contracts that', 6478:'are rated orders. subpart 11.7 variation in quantity 11.703 subpart 11.7 variation in quantity 11.701supply contracts. a a fixedprice supply', 6479:'contract may authorize government acceptance of a variation in the quantity of items called for if the variation is caused', 6480:'by conditions of loading, shipping, or packing, or by allowances in manufacturing processes. any permissible variation shall be stated as', 6481:'apercentage and it may bean increase, a decrease, or a combination of both; however, contracts for subsistence items mayuse other', 6482:'applicable terms of variation in quantity. b there should be no standard or usual variation percentage. the overrun or underrun', 6483:'permitted in each contract should be based upon the normal commercial practices of a particular industry for a particular item,', 6484:'and the permitted percentage should beno larger than isnecessary toafford a contractor reasonable protection. thepermissible variation shall not exceed plus', 6485:'or minus 10percent unless a different limitation is established in agencyregulations. consideration shall be given to the quantity to which', 6486:'the percentage variation applies. for example, when delivery will be made to multiple destinations and it is desired that the', 6487:'quantity variation apply to the item quantity for each destination, this requirement must be stated in the contract. c contractors', 6488:'are responsible for delivery of the specified quantity of items in a fixedprice contract, within allowable variations, if any. ifa', 6489:'contractordelivers a quantity ofitems in excess ofthe contract requirements plus any allowable variation in quantity,particularly small dollar value overshipments, it', 6490:'resultsin unnecessary administrative costs to the government in determining disposition of the excess quantity. accordingly, the contract may include theclause', 6491:'at 52.21117, delivery of excess quantities, to provide that 1 excess quantities of items totaling up to $250 in value', 6492:'may be retained without compensating the contractor; and 2 excess quantitiesof items totaling over $250 in value may,at the government’soption,', 6493:'beeither returned at the contractor’s expense or retained and paid for at the contractunit price. 11.702construction contracts. construction contracts may', 6494:'authorize a variation in estimated quantities of unitpriced items. when the variation between the estimated quantity and the actual quantity', 6495:'of a unitpriced item is more than plus or minus 15 percent, an equitable adjustment in the contract price shall', 6496:'be made upon the demand of either the government orthe contractor. the contractor may request an extension of time if', 6497:'the quantity variation is such as to cause an increase in the time necessary for completion. the contractingofficer mustreceivethe request', 6498:'in writing within 10 days from the beginningof the period of delay. however, the contracting officermay extendthistime limit before the', 6499:'dateof final settlement of the contract. thecontracting officer shall ascertain the facts and make any adjustmentforextending the completiondate thatthe findings', 6500:'justify. 11.703contract clauses. a thecontracting officer shall insert the clause at 52.21116, variation in quantity, insolicitationsandcontracts, if authorizing a variation', 6501:'in quantity in fixedprice contracts for supplies or for services that involve the furnishing of supplies. b the contractingofficer may', 6502:'insert the clause at 52.21117, delivery of excess quantities, in solicitations and contracts when a fixedprice supply contract is contemplated.', 6503:'c thecontracting officer shall insert the clause at 52.21118, variation in estimated quantity,in solicitations and contracts when a fixedprice construction', 6504:'contract is contemplated that authorizes a variation in the estimated quantity of unitpriced items. this page intentionally left blank. 11.72', 6505:'subpart 11.8 testing 11.801 subpart 11.8 testing 11.801preaward inuse evaluation. supplies may be evaluated undercomparableinuse conditions without a further test', 6506:'plan, provided offerors are so advised in the solicitation. the results of such tests or demonstrations may be used to', 6507:'rate the proposal, to determine technical acceptability, or otherwise to evaluate the proposal see 15.305. this page intentionally left blank.', 6508:'11.82 part 12 acquisition of commercial products and commercial services sec. 12.000 scope of part. 12.001 definition. subpart 12.1 acquisitionof', 6509:'commercial products and commercial services 12.101 policy. 12.102 applicability. 12.103 commercially available offtheshelf cots items. subpart 12.2 special requirements for', 6510:'the acquisition of commercial products and commercial services 12.201 general. 12.202 market research and description of agency need. 12.203 procedures', 6511:'for solicitation, evaluation, and award. 12.204 solicitation/contract form. 12.205 offers. 12.206 use of past performance. 12.207 contract type. 12.208 contract', 6512:'quality assurance. 12.209 determination of price reasonableness. 12.210 contract financing. 12.211 technical data. 12.212 computer software. 12.213 other commercial practices.', 6513:'12.214 cost accounting standards. 12.215 notification of overpayment. 12.216 unenforceability of unauthorized obligations. subpart 12.3 solicitation provisions and contract clauses', 6514:'for the acquisition of commercial products and commercial services 12.300 scope of subpart. 12.301 solicitation provisions and contract clauses for', 6515:'the acquisition of commercial products and commercial services. 12.302 tailoring of provisions and clauses for the acquisition of commercial products', 6516:'and commercial services. 12.303 contract format. subpart 12.4 unique requirements regarding terms and conditions for commercial products and commercial services', 6517:'12.401 general. 12.402 acceptance. 12.403 termination. 12.404 warranties. subpart 12.5 applicability of certain laws to the acquisition of commercial products,', 6518:'commercial services and commercially available offtheshelf items 12.500 scope of subpart. 12.501 applicability. 12.502 procedures. 12.503 applicability of certain laws', 6519:'to executive agency contracts for the acquisition of commercial products and commercial services. 12.504 applicability of certain laws to subcontracts', 6520:'for the acquisition of commercial products and commercial services. 12.505 applicability of certain laws to contracts for the acquisition of', 6521:'cots items. subpart 12.6 streamlined procedures for evaluation and solicitation for commercial products andcommercial services 12.601 general. 12.602 streamlinedevaluationofoffers. 12.603', 6522:'streamlined solicitation for commercial products or commercial services. this page intentionally left blank. subpart 12.1 acquisition of commercial products and', 6523:'commercial services 12.103 12.000scope of part. this part prescribes policies and procedures unique to the acquisition of commercial products, including', 6524:'commercial components, and commercial services. it implements the federal government’s preference for theacquisitionof commercial products and commercial services contained in', 6525:'41 u.s.c. 1906,1907, and 3307 and 10 u.s.c. 34513453 by establishing acquisition policies more closely resembling those of the commercial', 6526:'marketplace and encouraging the acquisition of commercial products and commercial services. 12.001definition. subcontract, as used in this part, includes, but', 6527:'is not limited to, a transfer of commercial products or commercial services between divisions, subsidiaries, or affiliates of a contractor', 6528:'orsubcontractor. subpart 12.1 acquisition of commercial products and commercial services 12.101 policy. the head of the agency shall— a conduct', 6529:'market research to determine whether commercial products, commercial services, or nondevelopmental items areavailablethat could meetthe agency’s requirements; b acquire commercial', 6530:'products, commercial services, or nondevelopmental items when they are available to meet the needs of the agency; and c require', 6531:'prime contractors and subcontractors at all tiers to incorporate, to the maximum extent practicable, commercial products,commercial services, or nondevelopmental items', 6532:'as componentsof items supplied to the agency. 12.102 applicability. a this part shall be used for the acquisition of supplies', 6533:'or services that meet the definitions of “commercial product” or “commercial service” at 2.101. b contracting officersshalluse the policiesin this', 6534:'part in conjunction with the policies and procedures for solicitation, evaluation and award prescribed in part 13, simplified acquisition procedures;', 6535:'part 14, sealed bidding; or part 15, contracting by negotiation, as appropriate for the particular acquisition. c contracts for the', 6536:'acquisition of commercial products or commercial services are subject to the policies in other parts of thefar. whenapolicyinanotherpartofthefarisinconsistentwithapolicyinthispart,this part 12', 6537:'shall take precedence for the acquisition of commercial products or commercial services. d the definition of commercial product uses the', 6538:'phrase “purposes other than governmental purposes”. these purposes are those that are not unique to a government. e this part', 6539:'shall not apply to the acquisition of commercial products or commercial services— 1 at or below the micropurchase threshold; 2', 6540:'using the standard form 44 see 13.306; 3 using the imprest fund see 13.305; 4 using the governmentwide commercial purchase', 6541:'card as a method of purchase rather than only as a method of payment; or 5 directlyfrom another federal agency.', 6542:'f 1contractingofficersmaytreatanyacquisitionofsuppliesorservicesthat,asdeterminedbytheheadoftheagency, areto beused tofacilitate defense against or recovery from cyber, nuclear,biological, chemical, or radiologicalattack, as an acquisition of commercial', 6543:'products or commercial services. 2 a contract in an amount greater than $20 million that is awarded on a sole', 6544:'source basis for a product or service treated as a commercial product or commercial service under paragraph f1 of this', 6545:'section but does not meet the definition of a commercial product or commercial service as defined at far 2.101 shall', 6546:'not be exempt from— i cost accounting standards see subpart 30.2; or ii certified cost or pricing data requirements see', 6547:'15.403. 12.103 commercially available offtheshelf cotsitems. commercially available offtheshelfcots items are defined in 2.101. unless indicated otherwise, all of the', 6548:'policies that apply to commercial products also apply to cots items. section 12.505 lists the laws that are not applicable', 6549:'to cots in addition to 12.503 and 12.504. this page intentionally left blank. 12.12 subpart 12.2 special requirements for the', 6550:'acquisition of commercial products and commercial services subpart 12.2 special requirements for the acquisition of commercial products and commercial services', 6551:'12.201general. this subpart identifies special requirements for the acquisition of commercial products and commercial services intended to more closely resemble', 6552:'those customarily used in the commercial marketplace, as well as other considerations necessary for proper planning, solicitation, evaluation, and award', 6553:'of contracts for commercial products and commercial services. 12.202 market research and description of agency need. a market research see', 6554:'10.001 isan essential elementof building aneffective strategy for the acquisition of commercial products and commercial services and establishes the foundation', 6555:'for the agency description of need see part 11, the solicitation, and resulting contract. b the description of agency need', 6556:'must containsufficient detail for potential offerors of commercialproducts or commercial servicesto know whichcommercial products or commercialservicesmay be suitable. generally, for', 6557:'acquisitions in excess of thesimplified acquisition threshold,an agency’s statement of need for a commercial productor commercial service will describe the', 6558:'type of commercial product or commercial service to be acquired and explain how the agency intends to use the product', 6559:'or service in terms of function to be performed, performance requirement or essential physical characteristics. describing the agency’s needs in', 6560:'these terms allows offerors to propose methods that will best meetthe needs of the government. c follow the procedures in', 6561:'subpart 11.2 regarding the identification and availability of specifications, standards and commercial item descriptions. d requirements documents shall identify the', 6562:'applicable information and communication technology accessibility standardsat36cfr1194.1see 11.002f and subpart 39.2. e when acquiring information technology using internet protocol, agencies', 6563:'must include the appropriate internet protocol compliance requirements in accordance with 11.002g. 12.203 procedures for solicitation, evaluation, and award. a', 6564:'contracting officers shall usethe policies unique to the acquisition of commercial products and commercialservices prescribed in this part in conjunction', 6565:'with the policies and procedures for solicitation, evaluation and award prescribed in part 13, simplified acquisition procedures; part 14 sealed', 6566:'bidding; or part 15, contracting by negotiation, as appropriate for theparticular acquisition. the contracting officer may use the streamlined procedure', 6567:'for soliciting offers for commercial product or commercial service prescribed in 12.603. for acquisitions of commercial products or commercial services', 6568:'exceeding the simplified acquisition threshold but not exceeding $7.5 million $15 million for acquisitions as described in 13.500 c, including', 6569:'options, contracting activities may use any of the simplified procedures authorized by subpart 13.5. b contracting officersshallensure the criteriaat 15.1012c', 6570:'are met when using the lowest price technically acceptable source selection process. 12.204solicitation/contract form. a 1 the contracting officer shall', 6571:'use the standard form 1449, solicitation/contract/order for commercial products and commercial services, if— i the acquisition is expected to exceed', 6572:'the simplified acquisition threshold; ii a paper solicitation or contract is being issued; and iii procedures at 12.603 are not', 6573:'being used. 2 use of the sf 1449 is nonmandatory but encouraged for commercial acquisitions not exceeding the simplified acquisition', 6574:'threshold. b consistent with the requirements at 5.203a and h, the contracting officermay allowfewer than 15 days before issuance of', 6575:'the solicitation. 12.205offers. a where technical information is necessary for evaluation ofoffers, agencies should, as partof market research,review existing literature', 6576:'generally available in the industry to determine its adequacy for purposes of evaluation. if adequate, contracting officers shall request existingproduct', 6577:'or serviceliterature from offerors of commercial products or commercial services in lieu of unique technical proposals. federal acquisition regulation b', 6578:'contracting officersshouldallow offerors to propose multipleoffers that will meeta government need in response to solicitations for commercial products orcommercial services.', 6579:'the contracting officershallevaluateeach offer separately. c consistent with the requirements at 5.203b,the contracting officermay allow fewer than 30 daysresponse time', 6580:'for receipt ofoffers for commercial products orcommercial services, unless the acquisitionis covered by the world trade organization government procurement agreement', 6581:'or a free trade agreement see 5.203h. 12.206use of past performance. past performance should be an important element of every', 6582:'evaluation and contract award for commercial products and commercial services. contracting officers should consider past performance datafrom a wide variety', 6583:'of sourcesboth inside and outside the federal government in accordance with the policies and procedures contained in subpart 9.1,13.106, or', 6584:'subpart 15.3, as applicable. 12.207contract type. a except as provided in paragraph b of this section, agencies shall use firmfixedprice', 6585:'contracts or fixedprice contracts with economic price adjustment for the acquisition of commercial products or commercial services. b 1 a', 6586:'timeandmaterials contract or laborhour contract see subpart 16.6 may be used for the acquisition of commercial services when i the', 6587:'service is acquired under a contract awarded using a competitive procedures e.g., the procedures in 6.102, the setaside procedures in', 6588:'subpart 19.5, or competition conducted in accordance with part 13; b the procedures for other than full and open competition', 6589:'in 6.3 providedthe agency receives offers that satisfy thegovernment’s expressed requirement from two or more responsible offerors; or c the', 6590:'fair opportunity procedures in 16.505 including discretionary small business setasides under 16.505b 2if, if placing an order under a multipleaward', 6591:'deliveryorder contract; and iithe contracting officer a executes a determination and findings d&f for the contract, in accordance with paragraph', 6592:'b2 of this section but see paragraph c of this section for indefinitedelivery contracts, that no other contract type authorized', 6593:'by this subpart is suitable; b includes a ceiling price in the contract or order that the contractor exceeds at', 6594:'its own risk; and c prior to increasing the ceilingprice of a timeandmaterials or laborhour contractor order, shall 1 conduct', 6595:'an analysis of pricing and other relevant factors to determine if the action is in the best interest of the', 6596:'government; 2 document the decision in the contract or order file; and 3 when making a change that modifies the', 6597:'general scope of i a contract, follow the procedures at 6.303; ii an order issued under the federal supply schedules,', 6598:'follow the procedures at 8.4056; or iii an order issued under multiple award task and delivery order contracts, follow the', 6599:'procedures at 16.505b2. 2 each d&f requiredby paragraphb1iia of this section shall contain sufficient facts and rationale to justify that', 6600:'no other contract type authorized by this subpart is suitable. at a minimum, the d&f shall i include a description', 6601:'of the market research conducted see 10.002e; ii establish that it is not possible at the time of placing the', 6602:'contract or order to accurately estimate the extent or duration of the work or to anticipate costs with any reasonable', 6603:'degree of confidence; iii establish that the requirement has been structured to maximize the use of firmfixedprice or fixedprice with', 6604:'economic price adjustment contracts e.g., by limiting the value or length of the timeandmaterial/laborhour contract or order; establishing fixed prices', 6605:'for portions of the requirement on future acquisitions for the same or similar requirements; and iv describe actions planned to', 6606:'maximize the use of firmfixedprice or fixedprice with economic price adjustment contracts on future acquisitions for the same requirements. 3', 6607:'see 16.601d1 for additional approval required for contracts expected to extend beyond three years. 4 see 8.404h for the requirement', 6608:'for determination and findings when using federal supply schedules. c 1 indefinitedelivery contracts see subpart 16.5 may be used when', 6609:'i the prices are established based on a firmfixedprice or fixedprice with economic price adjustment; or subpart 12.2 special requirements', 6610:'for the acquisition of commercial products and commercial services ii rates are established for commercial services acquired on a timeandmaterials', 6611:'or laborhour basis. 2 when an indefinitedelivery contract is awarded with services priced on a timeandmaterials or laborhour basis, contracting', 6612:'officers shall, to the maximum extent practicable, also structure thecontract to allow issuanceof orders on a firm fixedprice or fixedprice', 6613:'with economicprice adjustment basis. forsuch contracts, the contracting officer shall execute the d&f required by paragraph b2 of this section,', 6614:'for each order placed on a timeandmaterials or laborhour basis. placement of orders shall be in accordance with subpart 8.4', 6615:'or 16.5, as applicable. 3 if an indefinitedelivery contract only allows for the issuance of orders on a timeandmaterials or', 6616:'laborhour basis, the d&f required by paragraph b2 of this section shall be executed to support the basic contract and', 6617:'shall also explain why providing for an alternative firmfixedprice or fixedprice with economic price adjustment pricing structure is not practicable.', 6618:'the d&f for this contract shall be approved one level above the contracting officer. placement of orders shall be in', 6619:'accordance with subpart 16.5. d the contract types authorized by this subpart may be used in conjunction with an award', 6620:'fee and performance or delivery incentives when the award fee or incentive is based solely on factors other than cost', 6621:'see 16.2021 and 16.2031. e use of any contract type other than those authorized by this subpart to acquire commercial', 6622:'products or commercial services is prohibited. 12.208contract quality assurance. contracts for commercial products shall rely on contractors existing quality assurance', 6623:'systems as a substitute for government inspection and testing before tender for acceptance unless customary market practices for the commercial', 6624:'product being acquired include inprocess inspection. any inprocess inspection by the government shall be conducted in a manner consistent with', 6625:'commercial practice. the government shall rely on the contractor to accomplish all inspection and testing needed to ensure that commercial', 6626:'services acquired conform to contract requirements before they are tendered to the government. 12.209 determination of price reasonableness. while the', 6627:'contracting officer must establish price reasonableness in accordance with 13.1063,14.4082, or subpart 15.4,as applicable, the contracting officer should be aware', 6628:'of customary commercial products and commercial services and conditions when pricing commercial products and commercial services. commercial product and commercial', 6629:'service prices areaffected by factors that include,but are not limited to, speed of delivery, length and extent ofwarranty, limitationsof seller’s', 6630:'liability, quantities ordered, length of the performance period, and specificperformance requirements. thecontracting officer must ensure that contractterms, conditions, and prices', 6631:'are commensurate with the government’s need. 12.210contract financing. customary market practice for some commercial products and commercial services may include', 6632:'buyer contract financing. thecontractingofficermayoffergovernmentfinancinginaccordancewiththepoliciesandproceduresin part 32. 12.211technicaldata. except as provided by agencyspecific statutes, the government shall acquire only the technical', 6633:'data and the rights in that datacustomarily provided to the public with a commercial product or process. thecontracting officer shall', 6634:'presume that data delivered under a contract for commercial products was developed exclusively at private expense. when a contract for', 6635:'commercial products requires the delivery of technical data, thecontracting officer shall include appropriate provisionsand clauses delineating the rights in the', 6636:'technical data in addenda to the solicitation and contract see part 27 or agency far supplements. 12.212 computer software. a', 6637:'commercial computer software or commercial computer software documentation shall be acquired under licenses customarily provided to the public to the', 6638:'extent such licenses are consistent with federal law and otherwise satisfy the government’s needs. generally,offerorsandcontractors shall notbe required to 1', 6639:'furnish technical information related to commercial computer software or commercial computer software documentation that is not customarily provided to the', 6640:'public; or 2 relinquish to, or otherwise provide, the governmentrights touse, modify, reproduce, release, perform, display, or disclose commercial computer', 6641:'software or commercial computer software documentation except as mutually agreed to by the parties. federal acquisition regulation b with regardto', 6642:'commercial computer software andcommercial computer software documentation, the government shall have only those rights specified in the license contained in', 6643:'any addendum to the contract. for additional guidance regarding the use and negotiation of license agreements for commercial computer software,', 6644:'see 27.4053. 12.213 othercommercial practices. it is a common practice in the commercial marketplace for both the buyer and seller', 6645:'to propose terms and conditions written from their particular perspectives. the terms and conditions prescribed in this part seek to', 6646:'balance the interests of both the buyer and seller. these terms and conditions are generally appropriateforuse in a wide range', 6647:'of acquisitions. however, marketresearch may indicate other commercialpractices thatare appropriate for the acquisitionof the particular item. these practices should be', 6648:'consideredforincorporation into the solicitation andcontract if thecontracting officer determines them appropriate in concluding a business arrangement satisfactory to both parties', 6649:'and not otherwise precluded by law or executive order. 12.214cost accounting standards. cost accounting standards cas do not apply to', 6650:'contracts and subcontracts for the acquisition of commercial products or commercial services when these contracts and subcontracts are firmfixedprice or', 6651:'fixedprice with economic price adjustment provided that the price adjustment is not based on actual costs incurred. see 30.2011 for', 6652:'cas applicability to fixedprice with economic price adjustment contracts and subcontracts for commercial products or commercial services when theprice adjustment', 6653:'is basedon actual costsincurred. when cas applies,the contracting officer shall insert the appropriate provisions and clauses as prescribed in 30.201.', 6654:'12.215notification of overpayment. if the contractor notifies the contracting officerof aduplicate payment or that the government has otherwise overpaid, the', 6655:'contracting officershallfollow the procedures at 32.604. 12.216 unenforceability of unauthorized obligations. many supplies or services are acquired subject to supplier', 6656:'license agreements. these are particularly common in information technology acquisitions, but they may apply to any supply or service. for', 6657:'example, computer software and services delivered through the internet web services are often subject to license agreements, referred to as', 6658:'end user license agreements eula, terms of service tos, or other similar legal instruments or agreements. many of these agreements', 6659:'contain indemnification clauses that are inconsistent with federal law and unenforceable, but which could create a violation of the antideficiency', 6660:'act 31 u.s.c. 1341 if agreed to by the government. paragraph u of the clause at 52.2124 prevents any such', 6661:'violations. subpart 12.3 solicitation provisions and contract clauses for the acquisition of commercial products and commercial services 12.301 subpart 12.3', 6662:'solicitation provisions and contract clauses for the acquisition of commercial products and commercial services 12.300scope of subpart. this subpart establishes', 6663:'provisions and clauses to be used when acquiring commercial products and commercial services. 12.301 solicitation provisions and contract clauses for', 6664:'the acquisition ofcommercial products and commercial services. a in accordance with 41 u.s.c. 3307, contracts for the acquisition of commercial', 6665:'products or commercial services shall, to the maximum extent practicable, include only those clauses— 1 required to implement provisions of', 6666:'law or executive orders applicable to the acquisition of commercial products or commercial services; or 2 determined to be consistent', 6667:'with customary commercial practice. b insert the following provisions in solicitations for the acquisition of commercial products or commercial services,', 6668:'and clauses in solicitations and contracts for the acquisition of commercial products or commercial services: 1 the provision at 52.2121', 6669:',instructions to offerorscommercial products and commercial services. this provision provides asingle, streamlined set ofinstructions tobe used when soliciting offers for', 6670:'commercial products or commercial services and is incorporated in the solicitation by reference see block 27 a, sf 1449. the', 6671:'contractingofficer may tailor these instructions or provide additional instructions tailored to the specific acquisition in accordance with 12.302. 2 the', 6672:'provision at 52.2123, offeror representations and certificationscommercial products and commercial services. this provision provides a single, consolidated list of representations', 6673:'and certifications for the acquisition of commercial products orcommercial services and isattachedto thesolicitation for offerors to complete. this provision may', 6674:'not be tailored except in accordance with subpart 1.4. use the provision with its alternate i in solicitations issued by', 6675:'dod, nasa, or the coast guard. 3 the clause at 52.2124, contract terms and conditionscommercial products and commercial services this', 6676:'clause includes terms and conditions which are, to the maximum extent practicable, consistent with customary commercial practices and is incorporated', 6677:'in the solicitation and contract by reference see block 27, sf 1449. use this clause with its alternatei when a', 6678:'timeandmaterials or laborhour contract will beawarded. thecontracting officer may tailorthisclause in accordance with 12.302. 4 the clause at 52.2125, contract', 6679:'terms and conditions required to implement statutes or executive orders commercial products and commercial services. this clause incorporates by reference', 6680:'only those clauses required to implement provisions of law or executive orders applicable to the acquisition of commercial products or', 6681:'commercial services. the contracting officershallattach this clause to the solicitation andcontract and, usingthe appropriate clause prescriptions, indicate which, if any,', 6682:'of the additional clauses citedin 52.2125b or c are applicable to the specific acquisition. some of the clauses require fillin;', 6683:'the fillin language should be inserted as directed by 52.104d. when cost information is obtained pursuant to part 15 to', 6684:'establish the reasonableness of prices for commercial products or commercial services, the contractingofficer shall insertthe clauses prescribed for this purpose', 6685:'in an addendum to the solicitation and contract. this clause may not be tailored. i use the clause with its', 6686:'alternate i when the head of the agency has waived the examination of records by the comptroller general in accordance', 6687:'with 25.1001. ii a if the acquisition will use funds appropriated or otherwise made available by the american recovery and', 6688:'reinvestmentactof 2009 pub. l. 1115,the contracting officershalluse the clausewith its alternate ii. b 1 in the case of a bilateral', 6689:'contract modification that will use funds appropriated or otherwise made available by the american recovery and reinvestment act of2009, the', 6690:'contractingofficer shall specify applicability of alternate ii to that modification. 2 in the case of a task or deliveryorder contract', 6691:'in which not all orders will use funds appropriated or otherwisemade available by the american recovery and reinvestment act of', 6692:'2009, the contracting officer shall specifythe task or delivery orders to which alternate ii applies. c the contracting officermay not', 6693:'use alternate i when alternateii applies. c when theuse ofevaluation factors is appropriate,the contracting officer may— 1 insert the provision', 6694:'at 52.2122, evaluationcommercial products and commercial services, in solicitations for commercial products or commercial services see 12.602; or federal acquisition', 6695:'regulation 2 include a similar provision containing all evaluation factors required by 13.106, subpart 14.2 or subpart 15.3, as an', 6696:'addendum see 12.302d. d otherrequired provisions and clauses. notwithstanding prescriptionscontained elsewherein the far, when acquiring commercial products orcommercial services, contracting', 6697:'officers shall be required to use only those provisions and clauses prescribed in this part. the provisionsand clauses prescribed in', 6698:'this part shall be revised, as necessary, toreflect the applicability of statutes and executive orders to the acquisition of commercial', 6699:'products or commercial services. 1 insert the provision at 52.2047,systemforawardmanagement, as prescribedin 4.1105a. 2 insert the clause at 52.20413,systemforaward management', 6700:'maintenance, asprescribed in 4.1105b. 3 insert the provision at 52.20416, commercial and government entity code reporting, as prescribed in 4.1804a.', 6701:'4 insert the clause at 52.20418, commercial and government entity code maintenance, as prescribed in 4.1804c. 5 insert the clause', 6702:'at 52.20421, basic safeguarding of covered contractor information systems, in solicitations and contracts except for acquisitions of cots items, as', 6703:'prescribed in 4.1903. 6 insert the provision at 52.20424, representation regarding certain telecommunications and video surveillance services or equipment, as', 6704:'prescribed in 4.2105a. 7 insert the provision at 52.2076,solicitation of offers from small business concerns andsmallbusiness teaming arrangementsor jointventures multipleaward', 6705:'contracts, asprescribed at 7.1076. 8 insert the provision at 52.2097, information regarding responsibility matters, as prescribed in 9.1047b. 9 insert', 6706:'the provision at 52.20912, certificationregarding tax matters, as prescribed at 9.1047e. 10 insert the provision at 52.22256, certification regarding trafficking', 6707:'in persons compliance plan, in solicitations as prescribed at 22.1705b. 11 insert theclause at 52.22519, contractor personnel in a designated', 6708:'operational area or supporting a diplomatic or consular mission outside the united states, as prescribed in 25.3014. 12 insert the', 6709:'provision at 52.22911, tax oncertain foreign procurements—notice and representation, in solicitations as prescribed in 29.4023a. the representation in the provision', 6710:'at 52.22911 is not in the system for award management. 13 insert the clause at 52.22913, taxes—foreign contracts in afghanistan,as', 6711:'prescribed in 29.4024a. 14 insert the clause at 52.22914, taxes—foreign contracts in afghanistan northatlantic treatyorganization status of forces agreement, as', 6712:'prescribed in 29.4024b. e discretionary use of far provisions and clauses. the contracting officermay includein solicitations and contracts by addendum', 6713:'other farprovisionsandclauses when their use isconsistent with thelimitations contained in 12.302. for example: 1 the contractingofficer may use the provision', 6714:'at 52.2011, acquisition 360: voluntary survey, as prescribed in 1.1023b. 2 the contractingofficer may include appropriate clauses when anindefinitedelivery type', 6715:'of contract will be used. the clauses prescribed at 16.506 may be used for this purpose. 3 the contractingofficer may', 6716:'include appropriate provisionsand clauses when theuse of options is in the government’s interest. theprovisionsandclauses prescribed in 17.208 may be used', 6717:'for this purpose. if the provision at 52.2122 is used, paragraph b provides for the evaluation of options. 4thecontractingofficermayusetheprovisionsandclausescontainedin part', 6718:'23 regarding the use of products containing recovered materials and biobased products when appropriate for the item being acquired. 5whensettingasideunderthestaffordactsubpart', 6719:'26.2, include the provision at 52.2263,disasteroremergency area representation,in the solicitation. the representation in this provision is not in thesystemforaward management.', 6720:'f agencies may supplement the provisions and clauses prescribed in this part to require use of additional provisions and clauses', 6721:'only as necessary to reflect agency unique statutes applicable to the acquisition of commercial products or commercial services or as', 6722:'may be approved by the agency senior procurement executive, or the individual responsible for representing the agencyon the far council,', 6723:'without power ofdelegation. 12.302 tailoring ofprovisionsand clauses for the acquisition of commercial products andcommercial services. a general. the provisions and', 6724:'clauses established in this subpart are intended to address, to the maximum extent practicable, commercial market practices for a wide', 6725:'range of potential government acquisitions of commercial products and commercial services. however, because ofthe broadrange ofcommercial products and commercial services', 6726:'acquired by the government, variations in commercial practices,and the relative volume of the government’s acquisitions inthe specific market, contracting officers', 6727:'may, within the limitations of thissubpart, and after conductingappropriate market research, subpart 12.3 solicitation provisions and contract clauses for the', 6728:'acquisition of commercial products and commercial services 12.303 tailor the provision at 52.2121,instructionsto offerorscommercial products and commercial services, and theclause', 6729:'at 52.2124, contract termsandconditionscommercial products and commercialservices, to adapt tothe market conditions for each acquisition. b tailoring 52.2124, contract terms', 6730:'and conditionscommercial products and commercial services. the following paragraphs of the clause at 52.2124, contract terms and conditionscommercialproducts and commercial', 6731:'services, implement statutory requirements and shall not be tailored— 1 assignments; 2 disputes; 3 payment except as provided in subpart', 6732:'32.11; 4 invoice; 5 other compliances; 6 compliance with laws unique to government contracts; and 7 unauthorized obligations. c tailoring', 6733:'inconsistent with customary commercial practice. the contracting officer shall not tailor any clause or otherwise include any additional terms or', 6734:'conditions in a solicitation or contract for commercial products or commercial services in a manner that is inconsistent with customary', 6735:'commercial practice for the item being acquired unless a waiver is approved in accordance with agency procedures. the request for', 6736:'waiver must describe the customary commercial practice found in the marketplace, support the need to include a term or condition', 6737:'that is inconsistent with that practice and include a determination that use of the customary commercial practice is inconsistent with', 6738:'the needs of the government. a waiver may be requested for an individual or class of contracts for that specific', 6739:'item. d tailoring shall be byaddenda to the solicitation andcontract. the contracting officer shall indicate inblock27a ofthe sf1449 if addenda', 6740:'are attached. these addenda may include, for example, a continuation of the schedule of supplies/services to be acquired from blocks', 6741:'18 through 21 of the sf1449; a continuation of the description of the supplies/services being acquired; further elaboration of any', 6742:'other items on the sf1449; any other terms or conditions necessary for the performance of the proposed contract such as', 6743:'options, ordering procedures for indefinitedelivery type contracts, warranties, contract financing arrangements, etc.. 12.303contract format. solicitations and contracts for the acquisition', 6744:'of commercial products or commercial services prepared using this part 12 shall be assembled, to the maximum extent practicable, using', 6745:'the following format: a standard form sf 1449; b continuation of any block from sf 1449, such as 1 block', 6746:'10 ifan incentive subcontracting clauseis used the contracting officer shall indicate the applicable percentage; 2 block18 b for remittance address;', 6747:'3 block19 for line item numbers; 4 block20 for schedule of supplies/services; or 5 block25 for accounting data; c contract', 6748:'clauses 1 52.2124, contract termsandconditionscommercial products and commercialservices, by reference see sf 1449 block27 a; 2 any addendum to 52.2124;', 6749:'and 3 52.2125, contract termsandconditions required toimplement statutes orexecutive orderscommercial products and commercial services. d any contract documents, exhibits or', 6750:'attachments; and e solicitation provisions 1 52.2121, instructions to offerorscommercialproducts and commercial services, by reference see sf 1449, block27 a;', 6751:'2 any addendum to 52.2121; 3 52.2122, evaluationcommercial products and commercial services, or other description of evaluation factors for award,', 6752:'if used; and 4 52.2123, offeror representations and certificationscommercial products and commercial services. this page intentionally left blank. 12.34 subpart', 6753:'12.4 unique requirements regarding terms and conditions for commercial products and commercial services 12.403 subpart 12.4 unique requirements regarding terms', 6754:'and conditions for commercial products and commercial services 12.401general. this subpart provides a guidance regarding tailoring of the paragraphs in', 6755:'the clause at 52.2124, contract terms and conditionscommercial products and commercial services, when the paragraphs do not reflect the customary', 6756:'practice for a particular market; and b guidance on the administration of contracts for commercial products or commercial services in', 6757:'those areas where the terms and conditions in 52.2124 differ substantiallyfrom those contained elsewhere in the far. 12.402acceptance. a the', 6758:'acceptance paragraph in 52.2124 is based upon the assumption thatthe government will relyon the contractor’s assurances that the commercial product', 6759:'or commercial service tendered for acceptance conforms to the contract requirements. the government inspection of commercial products or commercial services', 6760:'will not prejudice its other rights under the acceptance paragraph. additionally,although the paragraph doesnot address the issue of rejection, the', 6761:'government always has the right to refuse acceptance of nonconforming items. this paragraph is generally appropriate when the government is', 6762:'acquiring noncomplex commercial products and commercial services. b other acceptance procedures may be more appropriate for the acquisition of complex', 6763:'commercial products or commercial services, or commercial products or commercial services used in critical applications. in such cases, the contracting', 6764:'officershallinclude alternative inspection procedures inan addendum and ensure these procedures and the postaward remedies adequately protect the interests ofthe government.', 6765:'the contractingofficer must carefully examine the terms and conditions of any expresswarranty with regard to the effect it mayhaveon the', 6766:'government’s available postaward remedies see 12.404. c the acquisition of commercial products or commercial services under other circumstances such as', 6767:'on an as is basis may also require acceptance proceduresdifferentfrom those contained in 52.2124. the contractingofficer should consider theeffect the', 6768:'specific circumstanceswill have on theacceptance paragraph as well as other paragraphs of the clause. 12.403 termination. a general. the clause', 6769:'at 52.2124 permits the government to terminate a contract for commercial products or commercial serviceseither for the convenience of the', 6770:'government or for cause. however, the paragraphs in 52.2124 entitled terminationforthe government’s convenience and termination for cause contain concepts which', 6771:'differfrom those contained in the termination clauses prescribed in part 49.consequently,therequirementsof part 49 do not apply when terminatingcontracts for commercial', 6772:'products or commercial services and contracting officers shall follow theprocedures in thissection. contractingofficersmaycontinuetouse part 49 as guidance to the extent', 6773:'that part 49 does not conflict with this section and the language of the termination paragraphs in 52.2124. b policy.', 6774:'thecontracting officer should exercise the government’srightto terminate a contract for commercial products or commercial services either for convenience or for', 6775:'cause only when such a termination would be in the best interests of the government. the contractingofficer should consult with', 6776:'counsel prior to terminating for cause. c termination for cause. 1 the paragraph in 52.2124 entitled excusable delay requires contractors', 6777:'notify the contracting officeras soon as possible after commencement of any excusable delay. in most situations,thisrequirement should eliminate the need', 6778:'for a show cause notice prior toterminating a contract. the contracting officer shall send a cure notice prior toterminating a', 6779:'contract for a reasonotherthan latedelivery. 2 the government’s rightsafter atermination for cause shall includeall the remedies available to any buyer', 6780:'in the marketplace. thegovernment’s preferred remedy will be to acquire similaritems from another contractor and to charge the defaulted contractor', 6781:'with any excess reprocurement costs together with any incidental or consequential damages incurred because of the termination. 3 when atermination', 6782:'for cause is appropriate, the contractingofficer shall send the contractor a written notification regarding the termination. at a minimum, this', 6783:'notification shall i indicate the contract is terminated for cause; ii specify the reasons for the termination; iii indicate which', 6784:'remedies the government intends to seek or provide a date by which the government will inform the contractor of the', 6785:'remedy; and federal acquisition regulation iv state that the noticeconstitutes a finaldecision of thecontracting officer and thatthe contractor has the', 6786:'right to appeal under the disputes clause see 33.211. 4 the contractingofficer, in accordance with agency procedures, shall ensurethat information', 6787:'related to termination for cause notices and any amendments are reported. in the event the termination for cause is subsequently', 6788:'converted to a terminationforconvenience, oris otherwise withdrawn, the contracting officer shall ensure that anotice of theconversion or withdrawal is reported.', 6789:'all reporting shall be in accordance with 42.1503h. d terminationforthe government’s convenience. 1 when thecontracting officer terminates a contract for', 6790:'commercial products or commercialservicesforthe government’s convenience, the contractor shall bepaid i a the percentage of the contract price reflecting the', 6791:'percentage of the work performed prior to the notice of the termination for fixedprice or fixedprice with economic price adjustment', 6792:'contracts; or b an amount for direct labor hours as defined in the schedule of the contract determined by multiplying', 6793:'the number ofdirect labor hours expended before the effective date of termination by the hourly ratesin the schedule; and iiany', 6794:'chargesthe contractor candemonstrate directly resultedfrom the termination. the contractor may demonstrate such charges using itsstandardrecord keeping systemandis not required to', 6795:'complywith the cost accounting standards or the contract cost principles in part 31.thegovernmentdoesnothaveanyrighttoauditthecontractor’srecords solely because of the termination for convenience.', 6796:'2 generally,the parties should mutuallyagreeupon therequirements of the termination proposal. the partiesmust balance thegovernment’s need to obtain sufficient documentation tosupport', 6797:'payment to the contractor against the goal of having a simple and expeditious settlement. 12.404 warranties. a implied warranties. the', 6798:'government’s postaward rights contained in 52.2124 are the implied warranty of merchantability, the implied warranty of fitness for particular purpose', 6799:'and the remediescontained inthe acceptance paragraph. 1 the implied warranty of merchantability provides that an item is reasonably fit for', 6800:'the ordinary purposes for which such items are used. the items must be of at least average, fair or mediumgrade', 6801:'quality and must be comparable in quality to those that will pass without objection in the trade or market for', 6802:'items of the same description. 2 the implied warranty of fitness for a particular purpose provides that an item is', 6803:'fit for use for the particular purpose for which the government will use the items. the government can rely upon', 6804:'an implied warranty of fitness for particular purpose when i the seller knows the particular purpose for which the government', 6805:'intends to use the item; and iithe government relied upon the contractor’s skill and judgment that the item wouldbe appropriate', 6806:'for that particular purpose. 3 contracting officersshouldconsult with legal counsel prior to asserting anyclaim for a breachof an implied warranty.', 6807:'b express warranties. 41 u.s.c. 3307e5brequirescontracting officers to take advantageof commercial warranties. to the maximumextent practicable, solicitations for commercial productsshallrequire', 6808:'offerors to offer the governmentat least the same warranty terms, including offers of extendedwarranties, offeredto the general public in customarycommercial', 6809:'practice. solicitations may specify minimum warranty terms, such as minimumduration, appropriateforthe government’s intended use of the item. 1 any express', 6810:'warranty the government intends to rely upon must meet the needs of the government. the contracting officershouldanalyze anycommercial warranty to', 6811:'determine if i the warranty is adequate to protect the needs of the government, e.g., items covered by the warranty', 6812:'and length of warranty; iithe termsallow the government effective postaward administration of the warrantyto include the identification of warranted items,', 6813:'procedures for the return of warranted items to the contractor for repair or replacement, and collection of product performance information;', 6814:'and iii the warranty is costeffective. 2 in some markets, it may be customary commercial practice for contractors to exclude', 6815:'or limit the implied warranties contained in 52.2124in theprovisionsof an express warranty. in such cases, thecontracting officer shall ensure that', 6816:'the express warranty provides for the repair or replacement of defective items discovered within a reasonable period of time after', 6817:'acceptance. 3 express warranties shall be included in the contract by addendum see 12.302. subpart 12.5 applicability of certain laws', 6818:'to the acquisition of commercial products, commercial services and commercially available offtheshelf items subpart 12.5 applicability of certain laws to', 6819:'the acquisition of commercial products, commercial services and commercially available offtheshelf items 12.500scope of subpart. a as required by 41', 6820:'u.s.c. 1906 and 1907, this subpart lists provisions of law that are not applicable to 1 contracts for the acquisition', 6821:'of commercial products or commercial services; 2 subcontracts, at any tier, for the acquisitionof commercial products or commercial services; and', 6822:'3 contracts and subcontracts, at any tier, for the acquisitionof commercially available offtheshelf cots items. b this subpart also lists', 6823:'provisions of law that have been amended to eliminate or modify their applicability to either contracts or subcontracts for the', 6824:'acquisition of commercial products or commercial services. 12.501 applicability. a this subpart applies to any contract or subcontract at any', 6825:'tier for the acquisition of commercial products or commercial services. b nothing in this subpart shall be construed to authorize', 6826:'the waiver of any provision of law with respect to any subcontract if the prime contractor is reselling or distributing', 6827:'commercial products or commercial services of another contractor without adding value. this limitation is intended to preclude establishment of unusual', 6828:'contractual arrangements solely for the purpose of government sales. c for purposes of this subpart, contractors awarded subcontracts under subpart', 6829:'19.8, contracting with the small business administration the 8a program, shall be considered prime contractors. 12.502 procedures. a thefar prescription', 6830:'for the provision or clause for each of the laws listed in 12.503 has been revised in the appropriate part', 6831:'to reflect its proper application to prime contracts for the acquisition of commercial products or commercial services. b for subcontracts', 6832:'for the acquisition of commercial products or commercial services, the clauses at 52.2125, contract terms and conditions required to implement', 6833:'statutesor executive orders—commercialproducts and commercial services, and 52.2446, subcontracts for commercial products and commercial services, reflect the applicability of the', 6834:'laws listed in 12.504 by identifying the only provisions and clauses that are required to be included in a subcontract', 6835:'at any tier for the acquisition of commercial products or commercial services. c thefar prescription for the provision or clause', 6836:'for each of the laws listed in 12.505 has been revised in the appropriate part to reflect its proper application', 6837:'to contracts and subcontracts for the acquisition of cots items. 12.503 applicabilityof certain laws toexecutive agency contracts forthe acquisition of', 6838:'commercial products and commercial services. a the following laws are not applicable to executive agency contracts for the acquisition of', 6839:'commercial products or commercial services: 1 10 u.s.c. 983, institutions of higher education that prevent rotc access or military recruiting', 6840:'on campus: denial of grants and contracts from department of defense, department of education, and certain other departments and agencies', 6841:'see 9.110. 2 31 u.s.c. 1354a, limitation onuse of appropriated fundsforcontracts with entities not meeting veterans employment reporting requirements see', 6842:'22.1302. 3 41 u.s.c. 1708e3,minimum response time for offers see 5.203. 4 41 u.s.c. 2303b, policy on personal conflicts of', 6843:'interest by contractor employees see subpart 3.11. 5 41 u.s.c. 3901b and 10 u.s.c. 3321b, contingent fees see 3.404. 6', 6844:'41 u.s.c. 4706d1 and 10 u.s.c. 3841d1, gao access to contractor employees, section 871 of public law 110417see 52.21426 and', 6845:'52.2122. 7 41 u.s.c. chapter 65, contracts for materials, supplies, articles, and equipment exceeding $10,000 see subpart 22.6. 8 41', 6846:'u.s.c. chapter 81, drugfree workplace see 26.501. 9 section 806a3 of public law 102190, as amended by sections 2091 and', 6847:'8105 of public law 103355 10 u.s.c. 4601 note prec., payment protections for subcontractors and suppliers see 28.1066. 10 15', 6848:'u.s.c. 644w, solicitation notice regarding administration of change orders for construction see 36.211. federal acquisition regulation b certain requirements of', 6849:'the following laws are not applicable to executive agency contracts for the acquisition of commercial products and commercial services: 1', 6850:'22 u.s.c. 2593e, requirement for a certification under measures against persons involved in activities that violate arms control treaties or', 6851:'agreements with theunited statessee 9.109. 2 40 u.s.c.chapter 37,requirement for a certificate and clause underthe contractwork hours and safety standards', 6852:'statute see 22.305. 3 41 u.s.c. 8703 and 8703, requirement for a clause and certain other requirements related to kickbacks', 6853:'see 3.502. 4 49 u.s.c.40118, requirement for a clause under the fly american provisions see 47.405. c the applicability of', 6854:'the following laws have been modified in regard to executive agency contracts for the acquisition of commercial products and commercial', 6855:'services: 1 41 u.s.c.4704 and 10 u.s.c. 4655, prohibition on limiting subcontractor direct sales to the united states see 3.503.', 6856:'2 41 u.s.c.chapter 35, and 10 u.s.c. chapter 271,truthful cost or pricing data see 15.403. 3 41 u.s.c.chapter 15, cost', 6857:'accounting standards 48 cfr chapter 99 see 12.214. 12.504 applicabilityof certain laws tosubcontracts for the acquisition ofcommercial products and commercial', 6858:'services. a the following laws are not applicable to subcontracts at any tier for the acquisition of commercial products or', 6859:'commercial services at any tier: 1 10 u.s.c. 2631, transportation of supplies by sea except for the types of subcontracts', 6860:'listed at 47.504d. 2 15 u.s.c. 644d, requirements relative to labor surplus areas under the small business act see subpart', 6861:'19.2. 3 [reserved] 4 41 u.s.c. chapter 65, contracts for materials, supplies, articles, and equipment exceeding $10,000 see subpart 22.6.', 6862:'5 41 u.s.c. 4703,validationofproprietarydatarestrictionssee subpart 27.4. 6 41 u.s.c. 3901b and 10 u.s.c. 3321b, contingent fees see subpart 3.4. 7', 6863:'41 u.s.c. 4706d and 10 u.s.c. 3841d, examinationof records of contractor, when a subcontractor is not required to provide certified', 6864:'cost or pricing data see 15.209b, unless using funds appropriated or otherwise made available by the american recoveryand reinvestment act', 6865:'of 2009 pub. l. 1115. 8 41 u.s.c. 1708e3,minimumresponsetimeforofferssee subpart 5.2. 9 41 u.s.c. 2302,rightsintechnicaldatasee subpart 27.4. 10 41 u.s.c.', 6866:'chapter 81, drugfree workplace act see subpart 26.5. 11 46 u.s.c.app.1241b, transportation in american vessels of government personnel andcertain cargo', 6867:'see subpart 47.5 except for the types of subcontracts listed at 47.504d. 12 49 u.s.c. 40118, fly american provisions see', 6868:'subpart 47.4. 13 section 806a3 of pub. l. 102190, as amended by sections 2091 and 8105 of pub. l. 103355', 6869:'10 u.s.c. 4601 note prec., payment protections for subcontractors and suppliers see 28.1066. b the requirements for acertificate and clauseunder', 6870:'thecontract work hours and safety standards statute, 40 u.s.c. 37, see subpart 22.3 are not applicable to subcontracts at any', 6871:'tier for the acquisition of commercial products or commercial services or commercial components. c the applicability of the following laws', 6872:'has been modified in regard to subcontracts at any tier for the acquisition of commercial products or commercial services: 1', 6873:'41 u.s.c. 4704 and 10 u.s.c. 4655, prohibition on limiting subcontractor direct sales to the united states see subpart 3.5.', 6874:'2 41 u.s.c. chapter 35, and 10 u.s.c. chapter 271,truthfulcostorpricingdatasee subpart 15.4. 3 41 u.s.c. chapter 15, cost accounting standards', 6875:'48 cfr chapter 99 see 12.214. 12.505applicability of certain laws to contracts for the acquisition of cots items. cots items', 6876:'are a subset of commercial products. therefore, any laws listed in sections 12.503 and 12.504 are also inapplicable or modified', 6877:'in their applicability to contracts or subcontracts for the acquisition of cots items. in addition, the following laws are not', 6878:'applicable to contracts for the acquisition of cots items: subpart 12.5 applicability of certain laws to the acquisition of commercial', 6879:'products, commercial services and commercially available offtheshelf items a 1 the portion of 41 u.s.c. 8302 , american materials required', 6880:'for public use, paragraph a1 that reads “substantially all from articles, materials, or supplies mined, produced, or manufactured in the', 6881:'united states,” buy american —supplies, domestic content test, except as provided in 25.101a2ii see 52.2251 and 52.2253. 2 the portion', 6882:'of 41 u.s.c. 8303, contracts for public works, paragraph a2that reads “substantially all from articles, materials, or supplies mined, produced,', 6883:'or manufactured in the united states,” buy american—construction materials, domestic content test, except as provided in 25.201b2iisee 52.2259 and 52.22511.', 6884:'b 42 u.s.c. 69 62c3a, certification and estimate of percentage of recovered material. c compliance plan and certification requirement, section', 6885:'1703 of the national defense authorization act for fiscal year 2013 pub. l. 112239,title xvii, ending trafficking ingovernment contractingsee 52.22250h', 6886:'and 52.22256. this page intentionally left blank. 12.54 subpart 12.6 streamlined procedures for evaluation and solicitation for commercial products and', 6887:'commercial services 12.603 subpart 12.6 streamlined procedures for evaluation and solicitation for commercial products and commercial services 12.601general. a this', 6888:'subpart provides optional procedures for— 1 streamlined evaluationof offers for commercial products or commercialservices;and 2 streamlined solicitation of offersforcommercial products', 6889:'or commercialservicesforuse whereappropriate. b these procedures are intended to simplify the process of preparing and issuing solicitations and evaluating offers', 6890:'for commercial products or commercial services consistent with customary commercial practices. 12.602 streamlined evaluation of offers. a when evaluationfactors are', 6891:'used,the contracting officermay insert a provision substantially the sameas the provision at 52.2122, evaluationcommercial products and commercial services, in solicitations', 6892:'for commercial products or commercial services or comply with the procedures in 13.106 if the acquisition is being made using', 6893:'simplified acquisition procedures. when the provision at 52.2122 is used, paragraph a of the provision shall be tailored to the', 6894:'specific acquisition to describe the evaluation factors and relativeimportance of thosefactors. however, whenusing the simplified acquisition procedures in part 13,', 6895:'contracting officers are not required to describe the relative importance of evaluation factors. b offers shall beevaluated in accordance with', 6896:'the criteriacontained inthe solicitation. for many commercialproducts or commercial services, the criteria need notbe more detailed than technical capability of', 6897:'the item offered to meet the agency need, price, and past performance. technical capability may beevaluated by how well the', 6898:'proposedproducts orservices meet the government requirement instead of predetermined subfactors. solicitations for commercial products or commercial services do not have', 6899:'to contain subfactors for technical capability when the solicitation adequately describes the intended use of the commercial product or commercial', 6900:'service. a technical evaluation would normally include examination of such things as product or service literature, product samples if requested,', 6901:'technical features, and warranty provisions. past performance shall be evaluated in accordance with the procedures in section 13.106 or subpart', 6902:'15.3,asapplicable. thecontractingofficer shall ensure the instructions provided in the provision at 52.2121, instructions to offerors—commercial products and commercial services, and', 6903:'the evaluation criteria provided in the provision at 52.2122, evaluation—commercial products and commercial services, are in agreement. c select the', 6904:'offer that is most advantageous to the government based onthe factors contained in the solicitation. fully document the rationale for', 6905:'selection ofthe successful offerorincluding discussion of any tradeoffs considered. 12.603 streamlined solicitationfor commercial products or commercial services. a when a', 6906:'written solicitation will beissued, the contracting officer mayuse the followingprocedure to reducethe time required to solicit and award contracts for', 6907:'the acquisition of commercial products or commercial services. this procedure combines the synopsis required by 5.203 and the issuance of', 6908:'the solicitation into a single document. b when using the combined synopsis/solicitation procedure, the sf1449 is not used for issuing', 6909:'the solicitation. c to use theseprocedures,the contracting officershall 1 prepare the synopsis as described at 5.207. 2 in the description,', 6910:'include the following additional information: i the following statement: this is a combined synopsis/solicitation for commercial products or commercial services', 6911:'prepared in accordance with the format in subpart 12.6, as supplemented with additional information included in this notice. this announcement', 6912:'constitutes the only solicitation; proposals are being requested and a written solicitation will not be issued. ii the solicitation number', 6913:'and a statement that the solicitation is issued as an invitation to bid ifb, request for quotation rfq or request', 6914:'for proposal rfp. iii a statement that the solicitation document and incorporated provisions and clauses are those ineffect through federal', 6915:'acquisition circular . iv a notice regarding any setaside and the associated naics code and small business size standard. v', 6916:'a list of line item numbers and items, quantities, and units of measure including options, if applicable. vi description of', 6917:'requirements for the items to be acquired. vii dates and places of delivery and acceptance and fob point. viii a', 6918:'statement that the provision at 52.2121, instructions to offerorscommercial products and commercial services, applies to this acquisition and a statement', 6919:'regarding any addenda to the provision. federal acquisition regulation ix a statement regarding the applicability of the provision at 52.2122,', 6920:'evaluationcommercial products and commercial services, if used, and the specific evaluation criteria to be included in paragraph a of that', 6921:'provision. if this provision is not used, describe the evaluation procedures to be used. x a statement advising offerors to', 6922:'include a completed copy of the provision at 52.2123,offerorrepresentations and certificationscommercial products and commercialservices, with itsoffer. xi a statement that', 6923:'the clause at 52.2124, contract terms and conditionscommercial products and commercial services, applies to this acquisition and a statement regarding', 6924:'any addenda to the clause. xii a statement that the clause at 52.2125, contract terms and conditions required to implement', 6925:'statutes or executive orderscommercial products and commercial services, applies to this acquisition and a statement regarding which, if any,of the', 6926:'additional farclauses cited in the clause areapplicable to the acquisition. xiii a statement regarding any additional contract requirements or terms', 6927:'and conditions such as contract financing arrangementsor warrantyrequirements determined by the contracting officer to be necessaryforthisacquisition and consistent with customary', 6928:'commercial practices. xiv a statementregarding the defenseprioritiesandallocations system dpas and assignedrating, if applicable. xv the date, time and place offers', 6929:'are due. xvi the name and telephone number of the individual to contact for information regarding the solicitation. 3 allow', 6930:'response time for receipt of offers as follows: i because the synopsis and solicitation are contained in a single document,', 6931:'it is not necessary to publicize a separate synopsis 15 days before the issuance of the solicitation. iiwhen usingthe combined', 6932:'synopsis and solicitation,contracting officers must establish a response time in accordance with 5.203b but see 5.203h. 4 publicize amendments to', 6933:'solicitations in the same manner as the initial synopsis and solicitation. fac 202501 november 12, 2024 part 13 simplified acquisition', 6934:'procedures sec. 13.000 scope of part. subpart 13.3 simplified acquisition methods 13.001 definitions. 13.301 governmentwide commercial purchase card. 13.002 purpose.', 6935:'13.302 purchase orders. 13.003 policy. 13.3021 general. 13.004 legal effect of quotations. 13.3022 unpriced purchase orders. 13.005 list of laws', 6936:'inapplicable to contracts and 13.3023 obtaining contractor acceptance and subcontracts at or below the simplified modifying purchase orders. acquisition threshold.', 6937:'13.3024 termination or cancellation of purchase 13.006 inapplicable provisions and clauses. orders. 13.3025 clauses. subpart 13.1 procedures 13.303 blanket purchase', 6938:'agreements bpas. 13.101 general. 13.3031 general. 13.102 source list. 13.3032 establishment of bpas. 13.103 use of standing price quotations. 13.3033', 6939:'preparation of bpas. 13.104 promoting competition. 13.3034 clauses. 13.105 synopsis and posting requirements. 13.3035 purchases under bpas. 13.106 soliciting competition,', 6940:'evaluation 13.3036 review procedures. of quotations or offers, award and 13.3037 completion of bpas. documentation. 13.3038 optional clause. 13.1061 soliciting', 6941:'competition. 13.304 [reserved] 13.1062 evaluation of quotations or offers. 13.305 imprest funds and third party drafts. 13.1063 award and documentation.', 6942:'13.3051 general. 13.3052 agency responsibilities. subpart 13.2 actions at or below 13.3053 conditions for use. the micropurchase threshold 13.3054 procedures.', 6943:'13.201 general. 13.306 sf 44, purchase orderinvoicevoucher. 13.202 unenforceability of unauthorized obligations 13.307 forms. in micropurchases. 13.203 purchase guidelines. subpart', 6944:'13.4 fast payment procedure 13.401 general. 13.402 conditions for use. 13.403 preparation and execution of orders. 13.404 contract clause. subpart', 6945:'13.5 simplified procedures for certain commercial products and commercial services 13.500 general. 13.501 special documentation requirements. this page intentionally left', 6946:'blank. 13.000scope of part. this part prescribes policies and procedures for the acquisition of supplies and services, including construction, research', 6947:'and development, commercial products, and commercial services, the aggregate amount of which does not exceed the simplified acquisition threshold see', 6948:'2.101. subpart 13.5 provides special authority for acquisitions of commercial products and commercial services exceeding the simplified acquisition threshold but', 6949:'not exceeding $7.5 million $15 million for acquisitions as described in 13.500 c, including options. see part 12 for policies', 6950:'applicable to the acquisition of commercial products and commercial services exceeding the micropurchase threshold. see 36.6025 for simplified procedures to', 6951:'be used when acquiring architectengineer services. 13.001definitions. as used in this part authorized individual means a person who has been', 6952:'grantedauthority,in accordance with agencyprocedures,to acquire supplies and services in accordance with this part. governmentwide commercial purchase card means a purchase', 6953:'card, similar in nature to a commercial credit card, issued to authorized agency personnel to use to acquire and to', 6954:'pay for supplies and services. imprest fund means a cash fund of a fixed amount established by anadvance of funds,', 6955:'without chargeto anappropriation, from an agency financeor disbursing officer toa duly appointed cashier, for disbursement as needed from time to', 6956:'timein making payment in cash for relatively small amounts. third party draft means an agency bank draft, similar to a', 6957:'check, that is used to acquire and to pay for supplies and services. seetreasury financial management manual, section 3040.70. 13.002purpose.', 6958:'the purpose of this part is to prescribe simplified acquisition procedures in order to a reduce administrative costs; b improve', 6959:'opportunities for small, small disadvantaged, womenowned, veteranowned, hubzone, and servicedisabled veteranowned small business concerns to obtain a fair proportion of', 6960:'government contracts; c promote efficiency and economyin contracting; and d avoid unnecessary burdens for agencies and contractors. 13.003 policy. a', 6961:'agencies shall use simplified acquisition procedures to the maximum extent practicable for all purchases of supplies or services not exceeding', 6962:'the simplified acquisition threshold including purchases at or below the micropurchase threshold. this policy does not apply if an agency', 6963:'can meet its requirement using 1 required sources of supply under part 8 e.g., federal prison industries, committee for purchase', 6964:'from people who are blind or severely disabled, and federal supply schedule contracts; 2 existing indefinite delivery/indefinite quantity contracts; or', 6965:'3 other established contracts. b 1 acquisitions of supplies or services that have an anticipated dollar value above the micropurchase', 6966:'threshold, but at or below the simplified acquisition threshold, shall be set aside for small business concerns see 19.000, 19.203,', 6967:'and subpart 19.5. 2 the contractingofficer may make an award to a small business concernunder the i 8a program see', 6968:'subpart 19.8; ii historically underutilized business zone hubzone program but see 19.1305 ; iii servicedisabled veteranowned small business sdvosb program', 6969:'seesubpart 19.14; or ivwomenownedsmallbusinesswosbprogramsee subpart 19.15. 3 the following contracting officer’s decisions for acquisitions at or below the simplifiedacquisitionthreshold are', 6970:'not subject to review under subpart 19.4: i a decision not to make an award under the 8a program. ii', 6971:'a decision not to set aside an acquisition for hubzone small business concerns, servicedisabled veteranowned small business concerns, or edwosb', 6972:'concerns and wosb concerns eligible under the wosb program. 4 each written solicitation under a setaside shall contain the appropriate', 6973:'provisions prescribed by part 19. if the solicitation is oral, however, information substantially identical tothat in the provision shall be', 6974:'given topotentialquoters. federal acquisition regulation c 1thecontractingofficershallnotusesimplifiedacquisitionprocedurestoacquiresuppliesandservicesifthe anticipated award will exceed i the simplified acquisition threshold; or ii $7.5 million', 6975:'$15 million for acquisitions as described in 13.500c, including options, for acquisitions of commercial products or commercial services using subpart', 6976:'13.5. 2 do not break down requirements aggregating more than the simplified acquisition threshold or for commercial products and commercial', 6977:'services, the threshold in subpart 13.5 or the micropurchase threshold into several purchases that are less than the applicable threshold', 6978:'merely to i permit use of simplified acquisition procedures; or iiavoidanyrequirementthat applies to purchasesexceeding the micropurchase threshold. d an agency', 6979:'that has specific statutory authority to acquire personal services see 37.104 may use simplified acquisition procedures to acquire those services.', 6980:'e agencies shall use the governmentwide commercial purchase card and electronic purchasing techniques to the maximum extent practicable in conducting', 6981:'simplified acquisitions but see 32.1108b2. fagenciesshallmaximizetheuseofelectroniccommercewhenpracticableandcosteffectivesee subpart 4.5. drawings and lengthy specifications can beprovidedofflinein hard copy or through other appropriate', 6982:'means. g authorizedindividuals shall make purchasesin the simplified mannerthat is most suitable, efficient, and economical based on the circumstances of', 6983:'each acquisition. for acquisitions not expected to exceed 1 the simplified acquisition threshold when acquiring other than commercial products or', 6984:'commercial services, use any appropriate combination of the procedures in parts 13, 14, 15, 35, or 36, including the use', 6985:'of standard form1442, solicitation, offer,and awardconstruction, alteration, orrepair, for construction contracts see 36.701a; or 2 $7.5 million $15 million for', 6986:'acquisitions as described in 13.500c, for commercial products or commercial services, use any appropriate combination of the procedures in parts', 6987:'12, 13, 14, and 15 see paragraph d of this section. h in addition tootherconsiderations, contracting officers shall 1 promote', 6988:'competition to the maximum extent practicable see 13.104; 2 establish deadlines for the submission of responses to solicitations thatafford suppliers', 6989:'areasonable opportunity to respond see 5.203; 3 considerallquotations oroffers that are timelyreceived. forevaluation of quotations or offers received electronically, see', 6990:'13.1062b4; and 4 use innovative approaches, to the maximum extent practicable, in awarding contracts using simplified acquisition procedures. 13.004legal effect', 6991:'of quotations. a a quotation is not an offer and, consequently, cannot beaccepted bythe government to forma bindingcontract. therefore, issuance', 6992:'by the governmentof an order in responseto a supplier’s quotation doesnot establish acontract. the order is an offerby the government', 6993:'to the supplierto buy certain supplies or services uponspecified termsandconditions. a contract is established when the supplier accepts the offer.', 6994:'b when appropriate,the contracting officer mayask the supplier toindicate acceptance of an order by notification to the government, preferably in', 6995:'writing, as defined at 2.101. in other circumstances, the supplier may indicate acceptance by furnishing the supplies or services ordered', 6996:'or by proceeding with the work to the point where substantial performance has occurred. c if the government issues an', 6997:'order resulting from a quotation, the government maybywritten notice to the supplier, at any time before acceptance occurs withdraw,amend, or', 6998:'cancel its offer. see 13.3024 for procedures on termination or cancellation of purchase orders. 13.005 list of laws inapplicable to', 6999:'contracts and subcontractsat or below the simplified acquisition threshold. a the following laws are inapplicable to all contracts and subcontracts', 7000:'if otherwise applicable to subcontracts at or below the simplified acquisition threshold pursuant to 41 u.s.c. 1905: 1 10 u.s.c.', 7001:'983, institutions of higher education that prevent rotc access or military recruiting on campus: denial of grants and contracts from', 7002:'department of defense, department of education, and certain other departments and agencies see 9.110. 2 10 u.s.c. 3321b and 41', 7003:'u.s.c. 3901b contract clause regarding contingent fees. 3 10 u.s.c. 3841 and 41 u.s.c. 4706 authority to examine books and', 7004:'records of contractors. 4 10 u.s.c. 4655 and 41 u.s.c. 4704 prohibition on limiting subcontractors direct sales to the united', 7005:'states. 5 22 u.s.c. 2593e measures against persons involved in activitiesthat violate arms control treaties or agreements with the united', 7006:'states. the requirement at 22 u.s.c. 2593ec3b to providea certification doesnot apply. 6 31 u.s.c. 1354alimitationon use of appropriated funds', 7007:'for contractswith entities not meeting veterans employment reporting requirements see 22.1302. 7 41 u.s.c. 8102a1 drugfree workplace, except for individuals.', 7008:'b the federal acquisition regulatory council far council will include any law enacted after october 13, 1994, that sets forth', 7009:'policies, procedures, requirements, or restrictions for the acquisition of property or services, on the list set forth in paragraph a', 7010:'of this section. the far councilmay make exceptionswhen it determines in writing that it is in the best interest of', 7011:'the government that the enactment should apply to contracts or subcontracts not greater than the simplified acquisition threshold. c the', 7012:'provisions of paragraph b of this section do not apply to laws that 1 provide for criminal or civil penalties;', 7013:'or 2 specifically state that notwithstanding the language of 41 u.s.c. 1905, the enactment will be applicable to contracts or', 7014:'subcontracts in amounts not greater than the simplified acquisition threshold. d any individual may petition theadministrator, office of federalprocurement policy', 7015:'ofpp, to include any applicable provision oflawnot included onthe listset forthin paragraph a of this section unless thefar councilhas already', 7016:'determined in writing thatthe law is applicable. the administrator, ofpp, willinclude the law on thelist in paragraph a of this', 7017:'section unless thefar councilmakes a determination thatitis applicablewithin 60 days of receiving the petition. 13.006 inapplicable provisions and clauses. while', 7018:'certain statutes still apply, pursuant to publiclaw103355, the following provisions and clauses are inapplicable to contracts and subcontracts at or', 7019:'below the simplified acquisition threshold: a 52.2035, covenant against contingent fees. b 52.2036, restrictions on subcontractor sales to the government.', 7020:'c 52.2037, antikickback procedures. d 52.2152, audits and recordsnegotiation, except as used with its alternate i, when using funds appropriated', 7021:'or otherwisemade available by the american recovery and reinvestment act of 2009pub. l. 1115. e 52.2224,contract work hours and safety', 7022:'standardsovertime compensation. f 52.2267, drugfree workplace, except for individuals. g 52.2239, estimate ofpercentage of recovered material contentforepadesignated items. subpart 13.1', 7023:'procedures 13.101general. a inmaking purchases, contracting officers shall 1 comply with the policy in 7.202 relating to economic purchase quantities,', 7024:'when practicable; 2 satisfy the procedures described in subpart 19.6 with respect to certificates of competency before rejecting a quotation,', 7025:'oral or written, from a small business concern determined to be nonresponsible see subpart 9.1; and 3 provide for the', 7026:'inspection of supplies or services as prescribed in 46.404. b in making purchases, contracting officers should 1 include related items', 7027:'such as small hardware items or spare parts for vehicles in one solicitation and make award on an allornone or', 7028:'multiple award basis provided suppliers are so advised whenquotations oroffers arerequested; 2 incorporate provisions and clauses by reference in solicitations', 7029:'and in awards under requests for quotations, provided the requirements in 52.102 are satisfied; 3 makemaximum effort to obtain trade', 7030:'and prompt payment discounts see 14.4083. prompt payment discounts shall not be considered in the evaluation of quotations; and 4', 7031:'use bulk funding to the maximum extent practicable. bulk funding is a systemwhereby thecontracting officer receivesauthorizationfrom a fiscal and accounting', 7032:'officer to obligate funds on purchase documents against a specified lump sum of funds reserved for the purpose for a', 7033:'specified period of time rather than obtaining individual obligational authority on each purchase document. bulk funding is particularly appropriate if', 7034:'numerous purchases using the same type of funds are to be made during a given period. federal acquisition regulation 13.102', 7035:'sourcelist. a contracting officers should usethe system for award management see subpart 4.11 via https://www.sam.gov as their primary sources of', 7036:'vendor information. offices maintaining additional vendor source files or listings should identify the statusof each source when the status is', 7037:'madeknown to the contractingoffice in the following categories: 1 small business. 2 small disadvantaged business. 3 womenowned small business concern,', 7038:'including economicallydisadvantagedwomenowned smallbusiness concerns and womenowned small business concerns eligible underthe womenownedsmallbusinesswosb program. 4 hubzone small business. 5 servicedisabled veteranowned', 7039:'small business. 6 veteranowned small business. b the status information may be used as the basis to ensure that small', 7040:'business concerns are provided the maximum practicable opportunities to respond to solicitations issued using simplified acquisition procedures. 13.103use of standing', 7041:'price quotations. authorized individuals do not have to obtain individual quotations for each purchase. standing price quotations may be used', 7042:'if a the pricing information is current; and b the government obtains the benefit of maximum discounts before award. 13.104', 7043:'promoting competition. the contractingofficer mustpromote competition to the maximum extent practicable to obtain supplies and services from thesource whose offeris', 7044:'the most advantageous to the government, consideringthe administrative cost of thepurchase. a thecontracting officer must not 1 solicit quotations based', 7045:'on personal preference; or 2 restrict solicitation to suppliers of wellknown and widely distributed makes or brands. b if using', 7046:'simplified acquisition procedures and not providing access to the notice of proposed contract action and solicitation information through the governmentwide', 7047:'point of entry gpe, maximum practicable competition ordinarily can be obtained bysoliciting quotations or offers from sources withinthe localtrade area.', 7048:'unless the contract action requires synopsis pursuant to 5.101 and an exception under 5.202 is not applicable, consider solicitation of', 7049:'at least three sources to promote competition to the maximum extentpracticable. whenever practicable,request quotationsor offers from two sources not included', 7050:'in the previous solicitation. c when conducting a reverse auction, see subpart 17.8. 13.105 synopsis and posting requirements. a thecontracting', 7051:'officer must comply with the publicdisplay and synopsis requirements of 5.101 and 5.203 unless an exception in 5.202 applies. b', 7052:'when acquiring commercial products or commercial services, or supplies or services procured in accordance with 12.102f1, the contracting officer may', 7053:'use a combined synopsis and solicitation. in thesecases, aseparate solicitationis not required. the contracting officer mustinclude enoughinformation to permit suppliersto', 7054:'developquotations oroffers. c see 5.102a6 for the requirement to post a brand name justification or documentation required by 13.1061b or', 7055:'13.501. d when publicizing contract actions funded in whole or in part by the american recovery and reinvestment act of', 7056:'2009 pub. l. 1115: 1 notices of proposed contract actions shall follow the procedures in 5.704 for posting orders. 2', 7057:'award noticesshallfollow the proceduresin 5.705. 13.106soliciting competition, evaluation of quotations or offers, award and documentation. 13.1061 soliciting competition. a considerations.', 7058:'in soliciting competition, thecontracting officer shall consider the guidance in 13.104 and the following before requesting quotations or offers: 13.1062', 7059:'1 i the nature of the article or service to be purchased and whether it is highly competitive and readily', 7060:'available in several makes or brands, or is relatively noncompetitive. ii an electronic commerce method that employs widespread electronic public', 7061:'notice is not available; and iii the urgencyof the proposedpurchase. iv the dollar value of the proposed purchase. v past', 7062:'experience concerning specific dealers’ prices. 2 iwhensolicitingquotationsoroffers,thecontractingofficershallnotifypotentialquotersorofferorsofthebasis on which award will be made price alone or price and other factors,', 7063:'e.g., past performance and quality. iicontracting officers are encouraged touse best value. iii solicitationsare not requiredto state the relative importance', 7064:'assigned toeach evaluation factor and subfactor, nor are they required to include subfactors. iv in accordance with 10 u.s.c. 3206c,', 7065:'for dod, nasa, and the coast guard— athe contracting officer may choosenot to include price orcostas an evaluationfactorforaward when a', 7066:'solicitation— 1 has an estimated value above the simplified acquisition threshold; 2 will result in multipleaward contracts see subpart 16.5', 7067:'that are for the same or similar services; and 3 states that the government intends to make an awardto each', 7068:'and all qualifying offerors see 2.101. b if the contracting officer chooses not toinclude priceor cost as an evaluation factor', 7069:'for the contract award, in accordance withparagraph a2iva of this section, the contracting officer shall consider price or costas one', 7070:'of the factors in the selection decision for each order placed under the contract. c the exception in paragraph a2iva', 7071:'of this section shall not apply to solicitations for multipleaward contracts that provide for sole source orders pursuant to section', 7072:'8a of the small business act 15 u.s.c. 637a. v except for dod, contracting officersshallensure the criteriaat 15.1012c15 are met', 7073:'when using the lowest price technically acceptable source selection process. vi except for dod, avoid using the lowest price technically', 7074:'acceptable source selection process to acquire certain supplies and services in accordance with 15.1012d. b soliciting from a single source.', 7075:'1 for purchases not exceeding the simplified acquisition threshold. i contracting officers may solicit from one source if the contracting', 7076:'officerdeterminesthat the circumstances of the contractaction deem only one source reasonably available e.g.,urgency,exclusive licensing agreements, brandname orindustrial mobilization. ii where', 7077:'a single source is identified to provide a portion of a purchase because that portion of the purchase specifies a', 7078:'particular brandname item, the documentation in paragraph b1i of this section only applies to the portion of the purchase requiring', 7079:'the brandname item. the documentation should state it is covering only the portion of the acquisition which is brandname. 2', 7080:'for purchases exceeding the simplified acquisition threshold. the requirements at 13.501a apply to solesource including brandname acquisitions of commercial products', 7081:'and commercial services conducted pursuant to subpart 13.5. 3 see 5.102a6 for the requirement to post the brandname justification or', 7082:'documentation. c soliciting orally. 1 thecontracting officer shall solicit quotations orally tothe maximum extentpracticable, if i the acquisition does not', 7083:'exceed the simplified acquisition threshold; iioral solicitation is more efficient than soliciting through availableelectronic commerce alternatives; and iii notice is', 7084:'not required under 5.101. 2 however, an oral solicitation may not be practicableforcontract actions exceeding $25,000 unless covered by an', 7085:'exception in 5.202. d written solicitations. if obtaining electronic or oralquotations is uneconomical or impracticable, thecontracting officer should issue paper', 7086:'solicitations for contract actionslikely toexceed $25,000. the contracting officershallissue awritten solicitation for construction requirements exceeding $2,000. e use of options.', 7087:'options may be included in solicitations, provided the requirements of subpart 17.2 are met and the aggregate value of the', 7088:'acquisition and all options does not exceed the dollar threshold for use of simplified acquisition procedures. f inquiries. an agency', 7089:'should respond to inquiries received through any medium including electronic commerce if doing sowould not interferewith the efficient conduct of', 7090:'theacquisition. 13.1062 evaluation of quotations or offers. a general. 1 the contracting officer shall evaluate quotations or offers 13.1063 federal', 7091:'acquisition regulation i in an impartial manner; and iiinclusiveof transportation charges from the shipping point of the supplierto thedelivery destination.', 7092:'2 quotations oroffers shall beevaluated on the basis established inthe solicitation. 3 all quotations or offers shall be considered seeparagraph', 7093:'b ofthis subsection. b evaluation procedures.1the contracting officer has broaddiscretionin fashioningsuitable evaluation procedures. the procedures prescribed in parts 14 and', 7094:'15arenotmandatory. atthecontractingofficer’sdiscretion,oneormore,butnot necessarily all, of the evaluation procedures in part 14 or 15 may be used. 2 if telecommutingis not', 7095:'prohibited, agencies shall notunfavorably evaluate an offer because it includes telecommuting unless the contracting officer executes a written determination in', 7096:'accordancewith far 7.108b. 3 if using price and other factors, ensure that quotationsor offers can be evaluated in an efficient', 7097:'and minimally burdensome fashion. formal evaluation plans and establishing a competitive range, conducting discussions, and scoring quotations or offers are', 7098:'not required. contracting offices may conduct comparative evaluations of offers. evaluation of other factors, such as past performance i does', 7099:'not require the creation or existence of a formal data base; and ii may be based on one or more', 7100:'of the following: athe contracting officer’s knowledge of andprevious experience with the supply or servicebeing acquired; b customer surveys, and', 7101:'past performance questionnaire replies; c the contractor performance assessment reporting system cparsat https://www.cpars.gov; or d any other reasonable basis. 4', 7102:'for acquisitions conducted using a method that permits electronic response to the solicitation, the contracting officer may iafter preliminary considerationof', 7103:'all quotations or offers, identify fromallquotations oroffers received one that is suitable to the user, such as the lowestpriced brand', 7104:'name product, and quickly screen all lowerpriced quotations or offers based on readily discernible value indicators, such as past performance,', 7105:'warranty conditions, and maintenance availability; or ii where an evaluation is based only on price and past performance, make an', 7106:'award based on whether the lowest priced of the quotationsor offers having the highest past performance rating possible represents the', 7107:'best value when compared to any lower priced quotation or offer. 13.1063award anddocumentation. a basis for award. before making award,', 7108:'thecontracting officer must determine that the proposed price is fairand reasonable. 1 whenever possible,base pricereasonableness on competitivequotations oroffers. 2 if', 7109:'only one response is received, include a statement of price reasonableness in the contract file. the contracting officer may base', 7110:'the statement on i market research; ii comparison of the proposed price with prices found reasonable on previous purchases; iii', 7111:'current price lists, catalogs, or advertisements. however, inclusion of a price in a pricelist, catalog, or advertisement does not, in', 7112:'and of itself, establish fairness and reasonableness of the price; iv a comparison with similar items in a related industry;', 7113:'v the contractingofficer’s personal knowledgeof the item being purchased; vi comparison to an independent government estimate; or vii any other', 7114:'reasonable basis. 3 occasionally an item can be obtained only from a supplier that quotes a minimum order price or', 7115:'quantity that either unreasonably exceeds stated quantity requirements or results in an unreasonable price for the quantity required. in these', 7116:'instances, the contractingofficer should inform the requiring activity of all facts regarding the quotation or offer andask it to confirm', 7117:'or alter its requirement. the file shall be documented to support the final action taken. b file documentation and retention.', 7118:'keep documentationto a minimum. purchasing offices shall retain data supporting purchases paper or electronic to the minimum extent and duration', 7119:'necessary for management review purposes see subpart 4.8. the followingillustratethe extent to which quotation or offer information should be recorded:', 7120:'1 oral solicitations. the contracting office should establish and maintain records of oral pricequotations in order to reflect clearly the', 7121:'propriety of placing the order at the price paid with the supplier concerned. in most cases, this will consist merely', 7122:'of showing the names of the suppliers contacted and the prices and other terms and conditions quoted by each. 13.1063', 7123:'2 written solicitations see 2.101. for acquisitions not exceeding the simplified acquisition threshold, limit written records of solicitations oroffers to', 7124:'notes orabstractsto show prices, delivery, references to printed pricelists used, the supplier or suppliers contacted, and other pertinent data. 3', 7125:'special situations. include additional statements, when applicable— i explaining the absence of competition see 13.1061 for brand name purchases if', 7126:'only one source is solicited and the acquisition does not exceed the simplified acquisition threshold does not apply to an', 7127:'acquisition of utility services available from only one source; ii supporting the award decision if other than pricerelated factors were', 7128:'considered in selecting the supplier; and iii except for dod, when using lowest price technically acceptable source selection process, justifying', 7129:'the use of such process. c notification. for acquisitions that do not exceed the simplified acquisition threshold and for which', 7130:'automatic notification is not provided through an electronic commerce method that employs widespread electronic public notice, notification to unsuccessful suppliers', 7131:'shall be given only if requested or required by 5.301. d request for information. if a supplier requests information on', 7132:'an award that was based on factors other than price alone, a brief explanation of the basis for the contract', 7133:'award decision shall be provided see 15.503b2. e taxpayer identification number. if an oral solicitation is used,the contracting officershallensure that', 7134:'the copyof the award documentsent to thepayment office is annotated with thecontractor’s taxpayer identification number tin and type of organization', 7135:'see 4.203, unless this information will be obtained from some other source e.g., centralized database. the contracting officershalldiscloseto thecontractor that', 7136:'the tinmay be usedby the government to collect andreport on any delinquent amounts arising out of the contractor’s relationshipwith the', 7137:'government 31 u.s.c. 7701c3. this page intentionally left blank. fac 202501 november 12, 2024 subpart 13.2 actions at or below', 7138:'the micropurchase threshold 13.202 subpart 13.2 actions at or below the micropurchase threshold 13.201general. a agency heads are encouraged to', 7139:'delegate micropurchase authority see 1.6033. b the governmentwide commercial purchase card shall be the preferred method to purchase and to', 7140:'pay for micro purchases see 2.101. c purchases at or below the micropurchase threshold may be conducted using any of', 7141:'the methods described in subpart 13.3, provided the purchaser is authorized and trained, pursuant to agency procedures, to use those', 7142:'methods. d micropurchases do not require provisions or clauses, except as provided at 13.202 and 32.1110. this paragraph takes precedence', 7143:'over any other far requirement to the contrary,but does notprohibit theuse ofany clause. e the requirements in part 8 apply', 7144:'to purchases at or below the micropurchase threshold. f the procurement requirements in 23.1 apply to purchases at or below', 7145:'the micropurchase threshold. g 1foracquisitionsofsuppliesorservicesthat,asdeterminedbytheheadoftheagency,aretobeusedtosupport a contingencyoperation; tofacilitate defense against or recovery from cyber, nuclear, biological, chemical, or radiological attack;', 7146:'to support a request from the secretary of state or the administrator of the united states agency for international development', 7147:'to facilitate provision of international disaster assistance pursuant to 22 u.s.c. 2292 et seq; or to support response to an', 7148:'emergency or major disaster 42 u.s.c. 5122, the micropurchase threshold is— i $20,000 in the case of any contract to', 7149:'be awarded and performed, or purchase to be made, inside the united states; and ii $35,000 in the case of', 7150:'any contract to be awarded and performed, or purchase to be made, outside the united states. 2 purchases using this', 7151:'authority must have a clear and direct relationship to the support of a contingency operation; or the defense againstor recovery', 7152:'fromcyber, nuclear, biological,chemical,or radiological attack;international disaster assistance; or an emergency or major disaster. h when using the governmentwide commercial purchase', 7153:'card as a method of payment, purchases at or below the micro purchase thresholdare exempt fromverification inthe system for award', 7154:'management asto whether the contractor has a delinquent debtsubject to collectionunder thetreasury offset programtop. i do not purchase any hardware,', 7155:'software, or services developed or provided by kaspersky lab that the government will use on or after october 1, 2018.', 7156:'see 4.2002. j 1 on or after august 13, 2019, do not procure or obtain, or extend or renew a', 7157:'contract to procure or obtain, any equipment, system, or service that uses covered telecommunications equipment or services as a substantial', 7158:'or essential component of any system, or as critical technology as part of any system, unless an exception applies or', 7159:'a waiver is granted. see subpart 4.21. 2 on or after august 13, 2020, agencies are prohibited from entering into', 7160:'a contract, or extending or renewing a contract, with an entity that uses any equipment, system, or service that uses', 7161:'covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part', 7162:'of any system, unless an exception applies or a waiver is granted see subpart 4.21. this prohibition applies to the', 7163:'use of covered telecommunications equipment or services, regardless of whether that use is in performance of work under a federal', 7164:'contract. k the prohibition in subpart 4.22onuseofacoveredapplication“tiktok”appliestopurchasesatorbelowthemicropurchase threshold where the performance of the contract may require the presence or use', 7165:'of a covered application, e.g., where social media advertising services might be part of the procurement, unless an exception is', 7166:'granted in accordance with office of management and budget memorandum m2313 see 4.2202. l do not procure or obtain, or', 7167:'extend or renew a contract to procure or obtain, any covered article, or any products or services produced or provided', 7168:'by a source, including contractor use of covered articles or sources, if prohibited from doing so by anapplicable federal acquisition', 7169:'supply chain security act fascsa orderissuedby the director ofnational intelligence, secretary of defense, or secretary of homeland security see 4.2303.', 7170:'m the prohibitions on unmanned aircraft systems e.g., drones in 40.202 apply to purchases at or below the micro purchase', 7171:'threshold. 13.202 unenforceability of unauthorized obligations inmicropurchases. many supplies or services are acquired subject to supplier license agreements. these are', 7172:'particularly common in information technology acquisitions, but they may apply to any supply or service. for example, computer software and', 7173:'services delivered through the internet web services are often subject to license agreements, referred to as end user license federal', 7174:'acquisition regulation agreements eula, terms of service tos, or other similar legal instruments or agreements. many of these agreements contain', 7175:'indemnification clauses that are inconsistent with federal law and unenforceable, but which could create a violation of the antideficiency act', 7176:'31 u.s.c. 1341 if agreed to by the government. the clause at 52.23239, unenforceability of unauthorized obligations, automatically applies to', 7177:'any micropurchase, including those made with the governmentwide purchase card. this clause prevents such violations of the antideficiency act 31', 7178:'u.s.c. 1341. 13.203 purchase guidelines. a solicitation, evaluation of quotations, and award. 1 to the extent practicable, micropurchases shall bedistributed', 7179:'equitably among qualified suppliers. 2 micropurchasesmay be awarded without soliciting competitive quotations if the contractingofficer or individual appointed in accordance', 7180:'with 1.6033b considers the price to be reasonable. 3 the administrative cost of verifyingthe reasonableness of the price for purchases', 7181:'may more thanoffset potential savings from detecting instances of overpricing. therefore, action to verify price reasonableness need only be taken', 7182:'if ithe contracting officer or individual appointed inaccordance with 1.6033b suspects or has information to indicate that the price may', 7183:'not be reasonable e.g., comparison to the previous price paid or personal knowledge of the supply or service; or ii', 7184:'purchasing a supply or service for which no comparable pricing information is readily available e.g.,a supply or service that is', 7185:'not the same as, or is not similar to, other supplies or services that have recently been purchased on a', 7186:'competitive basis. b documentation. ifcompetitive quotations weresolicited and awardwas made tootherthan the low quoter, documentation to support the purchase may', 7187:'be limited to identification of the solicited concerns and an explanation for the award decision. subpart 13.3 simplified acquisition methods', 7188:'13.3022 subpart 13.3 simplified acquisition methods 13.301 governmentwide commercial purchasecard. a except as provided in 32.1108b2, the governmentwide commercial purchase', 7189:'card is authorized for use in making and/or paying for purchases of supplies, services, or construction. the governmentwide commercial purchase', 7190:'card may be usedby contracting officersand otherindividuals designated in accordance with 1.6033. the card may be used only for purchases', 7191:'that are otherwise authorized by law or regulation. b agencies using the governmentwide commercial purchase card shall establish procedures for', 7192:'use and control of the card that comply with the treasuryfinancial manual for guidance of departments andagencies tfm 44500and that', 7193:'are consistent with the terms and conditions of the current gsa credit card contract. agency procedures should not limit the', 7194:'use of the governmentwide commercial purchase card to micropurchases. agency procedures should encourage use of the card in greaterdollaramountsby contracting', 7195:'officersto place orders andto pay for purchases against contracts established under part 8 procedures, when authorized; and to place orders', 7196:'and/or make payment under other contractual instruments, when agreed to bythe contractor. see 32.1110d for instructions for use of the', 7197:'appropriate clause when payment under a written contract will be made through use of the card. c the governmentwide commercial', 7198:'purchase card may be used to 1 make micropurchases; 2 place a task or delivery order if authorized in the', 7199:'basic contract, basic ordering agreement, or blanket purchase agreement; or 3 make payments, when the contractor agrees to accept payment', 7200:'by the card but see 32.1108b2. 13.302 purchase orders. 13.3021 general. a except as provided under the unpriced purchase order', 7201:'method see 13.3022, purchase orders generally are issued on a fixedprice basis. see 12.207 for acquisition of commercial products and', 7202:'commercial services. b purchase orders shall 1 specify the quantity of supplies or scope of services ordered; 2 contain a', 7203:'determinable date by which delivery of the supplies or performance of the services is required; 3 provide for inspection as', 7204:'prescribed in part 46. generally, inspection and acceptance should be at destination. source inspection should be specified only if required', 7205:'by part 46. when inspection and acceptance will be performed at destination, advance copies of the purchase order or equivalent', 7206:'notice shall be furnished to the consignees for material receipt purposes. receiving reports shall be accomplished immediately upon receipt and', 7207:'acceptance of supplies; 4 specify f.o.b. destination for supplies to be delivered within the united states, except alaska or hawaii,', 7208:'unless there are valid reasons to the contrary; and 5 includeany trade and prompt payment discounts that are offered, consistentwith', 7209:'the applicable principles at 14.4083. c thecontracting officer’s signature on purchaseordersshallbe inaccordance with 4.101 and the definitions at 2.101. facsimile', 7210:'and electronic signature may be used in the production of purchase orders by automated methods. d limit the distribution of', 7211:'copies of purchase orders and related forms to the minimum deemed essential for administration and transmission of contractual information. e', 7212:'in accordance with 31 u.s.c.3332, electronic funds transfer eft is required for payments except as provided in 32.1110. see subpart', 7213:'32.11 for instructions for use of the appropriate clause in purchase orders. when obtaining oral quotes, thecontracting officer shall informthe', 7214:'quoterof the eft clause thatwill be in any resulting purchase order. 13.3022unpriced purchaseorders. a an unpriced purchase order is an', 7215:'order for supplies or services, the price of which is not established at the time of issuance of the order.', 7216:'b an unpriced purchase order may be used only when 1 it is impractical to obtain pricing in advance of', 7217:'issuance of the purchase order; and 2 the purchase is for i repairs to equipment requiring disassembly to determine the', 7218:'nature and extent of repairs; ii material available from only one source and for which cost cannot readily be established;', 7219:'or 13.3023 federal acquisition regulation iii supplies or services for which prices are known to be competitive, but exact prices', 7220:'are not known e.g., miscellaneous repair parts, maintenance agreements. c unpriced purchase orders may be issued onpaper orelectronically. arealistic monetary', 7221:'limitation, either for eachline item or for thetotal order, shall be placed on each unpriced purchase order. the monetary limitation', 7222:'shall be anobligation subject to adjustment whenthe firm price is established. thecontracting office shall follow upon each orderto ensure timely', 7223:'pricing. the contracting officer orthe contracting officer’s designated representativeshallreview the invoice price and, if reasonable see 13.1063a, process the invoice', 7224:'for payment. 13.3023obtaining contractor acceptance and modifying purchase orders. a when it is desired to consummate a binding contract between', 7225:'the parties before the contractor undertakes performance, thecontracting officer shall requirewritten see 2.101 acceptance of thepurchase order by thecontractor. b', 7226:'each purchase order modification shall identify the order it modifies and shall contain an appropriate modification number. c a contractor’s', 7227:'written acceptanceof apurchase order modification may berequired only if 1 determined by thecontracting officer tobe necessary to ensure thecontractor’scompliance with', 7228:'the purchase order as revised; or 2 required by agency regulations. 13.3024termination or cancellation of purchaseorders. a if a purchase', 7229:'order that has been accepted inwriting by thecontractor is to be terminated, the contracting officershall process the termination in accordance', 7230:'with 1 12.403 and 52.2124l or m for commercial products and commercial services; or 2 part 49 or 52.2134 for', 7231:'other than commercial products or commercial services. b if a purchase orderthat has not been accepted inwriting by thecontractor is', 7232:'to be canceled, the contractingofficer shall notify the contractorin writingthat thepurchase order has been canceled, request the contractor’s written acceptance', 7233:'of the cancellation, and proceed as follows: 1 if the contractor accepts the cancellation and does not claim that costs', 7234:'were incurred as a result of beginning performanceunder thepurchase order, nofurther action isrequired i.e., the purchase order shall be considered', 7235:'canceled. 2 if the contractor does not accept the cancellation or claims that costs were incurred as a result of', 7236:'beginning performanceunder thepurchase order, the contracting officer shall process the actionas atermination prescribedin paragraph a of this subsection. 13.3025 clauses.', 7237:'a each purchase order and each purchase order modification see 13.3023 shall incorporate all clauses prescribed for the particular acquisition.', 7238:'b the contractingofficer shall insertthe clause at 52.2132, invoices, in purchase orders that authorize advance payments see 31 u.s.c. 3324d2', 7239:'for subscriptions orother charges for newspapers, magazines, periodicals, or other publications i.e., any publication printed, microfilmed, photocopied, or magnetically or', 7240:'otherwise recorded for auditory or visual usage. c thecontracting officer shall insert the clause at 52.2133, notice to supplier, in', 7241:'unpricedpurchase orders. d 1thecontractingofficermayusetheclauseat 52.2134,termsandconditionssimplifiedacquisitionsotherthan commercial products and commercial services;, in simplified acquisitions exceeding the micropurchase threshold that are for', 7242:'other than commercial products or commercial services see 12.301. 2 the clause i is a compilation of the most commonly', 7243:'used clauses that apply to simplified acquisitions; and ii may be modified to fit the individual acquisition to add other', 7244:'needed clauses, or those clauses may be added separately. modifications i.e., additions, deletions, or substitutions must not create a void', 7245:'or internal contradiction in the clause. for example, do not add an inspection and acceptance or termination for convenience requirement', 7246:'unless the existing requirement is deleted. also, do not delete a paragraph without providing for an appropriate substitute. 3 i', 7247:'when an acquisition for supplies for use within the united states cannot be set aside for small business concerns and', 7248:'trade agreements apply see subpart 25.4, substitute the clause at 52.2253,buyamericanfreetradeagreements israeli trade act, used with theappropriate alternate see 25.1101b1,', 7249:'instead of the clause at 52.2251, buy american supplies. subpart 13.3 simplified acquisition methods 13.3033 ii when acquiring supplies for', 7250:'use outside the united states, delete clause 52.2251 from the clause list at 52.2134b. 4 when the senior procurement executive', 7251:'allows for application of an alternate domestic content test for the contract in accordance with 25.101d, so that the initial', 7252:'domestic content threshold will apply to the entire period of performance, thecontracting officer shall fill in the 52.2134b1xviib for 52.2251', 7253:'alternate i as follows: for contracts that the contracting officerestimates will beawarded in calendar year 2022 or2023, the contractingofficer shall', 7254:'insert “60” in paragraph 1iia of the definition of domestic end product. for contracts thatthe contracting officerestimates will be awarded', 7255:'incalendar year 2024,2025, 2026, 2027,or 2028, the contracting officer shall insert “65”. for contractsthat the contracting officerestimates will beawarded after', 7256:'calendar year 2028 the contracting officer shall insert “75”. 13.303 blanketpurchase agreements bpas. 13.3031 general. a a blanket purchase agreement', 7257:'bpa is a simplifiedmethod of fillinganticipated repetitive needs for suppliesor servicesbyestablishing chargeaccounts withqualifiedsourcesofsupplysee subpart 16.7 for additional coverage of agreements.', 7258:'b bpas should be established for use by an organization responsible for providingsupplies for its own operations or for other', 7259:'offices, installations,projects, or functions. such organizations,forexample, may be organized supply points,separate independent or detached field parties, or oneperson posts or', 7260:'activities. c theuse of bpas does not exempt an agency from the responsibility for keeping obligationsandexpenditures within available funds. 13.3032establishment', 7261:'ofbpas. a thefollowing are circumstances under which contracting officersmay establish bpas: 1 there is a wide variety of items in', 7262:'a broad class of supplies or services that are generally purchased, but the exact items, quantities, and delivery requirements are', 7263:'not known in advance and may vary considerably. 2 there is a need to provide commercialsources of supply for one', 7264:'or moreoffices or projects ina given areathat do not have or need authority to purchase otherwise. 3 the use of', 7265:'this procedure would avoid the writing of numerous purchase orders. 4 there is no existing requirements contract for the same', 7266:'supply or service that the contracting activity is required to use. b afterdetermining a bpa would be advantageous, contracting officers', 7267:'shall 1 establish the parameters to limit purchases to individual items or commodity groups or classes, or permit the supplier', 7268:'to furnish unlimited supplies or services; and 2 considersuppliers whose past performance has shown them to be dependable, who offer', 7269:'quality supplies or services at consistently lower prices, and who have provided numerous purchases at or below the simplified acquisition', 7270:'threshold. c bpas may beestablished with 1 more than one supplier for supplies or services of the same type to', 7271:'provide maximum practicable competition; 2 a single firm from which numerous individual purchases at or below the simplified acquisition threshold', 7272:'will likely be made in a given period; or 3 federal supply schedule contractors, if not inconsistent with the terms', 7273:'of the applicable schedule contract. d bpas should be prepared withouta purchase requisition and only after contacting suppliers to make', 7274:'the necessary arrangements for 1 securing maximum discounts; 2 documenting individual purchase transactions; 3 periodic billings; and 4 incorporating other', 7275:'necessary details. 13.3033preparation of bpas. prepare bpas on theforms specified in 13.307. do not cite accounting and appropriation data see', 7276:'13.3035e4. a the following terms and conditions are mandatory: 13.3034 federal acquisition regulation 1 description of agreement. a statement that', 7277:'the supplier shall furnish supplies or services, described in general terms, if and when requestedby the contracting officerorthe authorized representative', 7278:'of thecontracting officer during a specified period and withina stipulated aggregate amount,if any. 2 extent of obligation. a statement that', 7279:'the government is obligated only to the extent of authorized purchases actually made under the bpa. 3 purchase limitation. a', 7280:'statement that specifies the dollar limitation for each individual purchase under the bpa see 13.3035b. 4 individuals authorized to purchase', 7281:'under the bpa. a statement that a list of individuals authorized to purchase underthe bpa, identified either by title of', 7282:'position or by name ofindividual, organizational component, and thedollar limitation perpurchase for eachposition title or individualshallbe furnished to the supplierby', 7283:'the contracting officer. 5 delivery tickets. a requirement that all shipments under the agreement, except those for newspapers, magazines, or', 7284:'other periodicals, shall be accompanied by delivery tickets or sales slips that shall contain the following minimum information: iname of', 7285:'supplier. iibpa number. iii date of purchase. iv purchasenumber. v itemized list of supplies or services furnished. vi quantity, unit', 7286:'price, and extension of each item, less applicablediscounts unit prices and extensions need not be shown when incompatible with the', 7287:'use of automated systems, provided that the invoice is itemized to show this information. vii date of delivery or shipment.', 7288:'6 invoices. one of the following statements shall be included except that the statement in paragraph a6iii of this subsection', 7289:'should not be used if the accumulation of the individual invoices by the government materially increases the administrative costs of', 7290:'this purchase method: iasummary invoice shall besubmitted atleast monthly or upon expiration ofthisbpa, whichever occurs first, for all deliveries made', 7291:'during a billing period, identifying the delivery tickets covered therein, stating their total dollar value, and supported by receipt copies', 7292:'of the delivery tickets. iian itemizedinvoice shall be submitted at least monthly or upon expirationof this bpa, whicheveroccurs first, for', 7293:'all deliveries made during a billing period and for which payment has not been received. these invoices need not be', 7294:'supported by copies of delivery tickets. iii when billingprocedures provide for an individual invoiceforeach delivery, these invoices shall be accumulated,', 7295:'provided that a a consolidated payment will be made for each specified period; and b the period of any discounts', 7296:'will commence on the final date of the billing period or on the date of receipt of invoices for all', 7297:'deliveriesaccepted during the billing period, whichever is later. iv an invoice for subscriptions or other charges for newspapers, magazines, or', 7298:'other periodicals shall show the startingand ending dates and shall state eitherthat ordered subscriptions have been placed in effect or', 7299:'will be placed in effect upon receipt of payment. b if the fast payment procedure is used, include the requirements', 7300:'stated in 13.403. 13.3034 clauses. a thecontracting officer shall insert in eachbpa the clausesprescribed elsewhere in this partthat arerequired for', 7301:'or applicable to the particularbpa. b unless a clause prescription specifies otherwise e.g., see 22.305a, 22.605a5, or 22.1006, if the', 7302:'prescription includes a dollar threshold, the amount to be compared to that threshold is that of any particular order under', 7303:'the bpa. 13.3035purchasesunder bpas. a use a bpa onlyforpurchases that are otherwise authorized bylawor regulation. b individual purchases shall notexceed', 7304:'the simplified acquisition threshold. however,agency regulations may establish a higher threshold consistent with the following: 1 the simplified acquisition threshold', 7305:'and the $7.5 million limitation for individual purchases $15 million for purchases entered into under the authority of 12.102f1 do', 7306:'notapply to bpas established in accordance with 13.3032c 3. subpart 13.3 simplified acquisition methods 13.3051 2 the limitation for individual', 7307:'purchases for commercial products and commercial services acquisitions conducted under subpart 13.5 is $7.5 million $15 million for acquisitions as', 7308:'described in 13.500c. c theexistence of a bpa does not justifypurchasing fromonlyonesource or avoiding small business setasides. the requirements of', 7309:'13.003b and subpart 19.5alsoapplytoeachorder. d if, for a particular purchase greater than the micropurchasethreshold, there is an insufficientnumber of bpas', 7310:'to ensure maximum practicable competition, the contracting officershall 1 solicit quotations from other sources see 13.105 and make the purchase', 7311:'as appropriate; and 2 establish additional bpas to facilitate future purchasesif i recurring requirements for the same or similar supplies', 7312:'or services seem likely; iiqualified sources are willing to accept bpas; and iii it is otherwise practical to do so.', 7313:'e limit documentation of purchases to essential information and forms as follows: 1 purchases generally should be made electronically, or', 7314:'orally whenitis not consideredeconomical or practical to use electronic methods. 2 a paper purchase document may be issued if necessary', 7315:'to ensure that the supplier and the purchaser agree concerning the transaction. 3 unless a paper document is issued, record', 7316:'essential elements e.g., date, supplier, supplies or services, price, delivery date on the purchase requisition, in an informal memorandum, or', 7317:'on a form developed locally for the purpose. 4 cite the pertinent purchase requisitions and the accounting and appropriation data.', 7318:'5 when delivery is made or theservices are performed, the supplier’ssales document, delivery document, or invoice may if it reflects', 7319:'the essential elements be used for the purpose of recording receipt and acceptance of the supplies or services. however, if', 7320:'thepurchase is assigned to another activity for administration, the authorized government representative shall document receipt and acceptance of supplies or', 7321:'services by signing and dating the agency specified form after verification and after notation of any exceptions. 13.3036review procedures. a', 7322:'thecontracting officer placing orders under a bpa, or the designated representative ofthe contracting officer, shall review a sufficient random sample', 7323:'of the bpa files atleast annually to ensure that authorized procedures are being followed. b the contractingofficer that entered into', 7324:'the bpa shall 1 ensure that each bpa isreviewedat leastannually and, if necessary,updated at that time; and 2 maintain awareness', 7325:'ofchangesin market conditions, sources ofsupply, and other pertinent factors thatmay warrant making new arrangementswith different suppliers or modifying existing arrangements.', 7326:'c if an officeother thanthe purchasing office that established a bpa is authorizedto make purchases under that bpa,the agency that', 7327:'has jurisdiction over the office authorized tomake the purchases shall ensurethat theprocedures in paragraph a of this subsection are being', 7328:'followed. 13.3037completion of bpas. an individual bpa is considered complete when the purchases underitequalits total dollar limitation, ifany, or whenits', 7329:'stated time period expires. 13.3038 optional clause. the clause at 52.2134, terms and conditionssimplifiedacquisitions other than commercialproducts and commercial services;,', 7330:'may be used in bpas established under this section. 13.304[reserved] 13.305 imprestfundsand third party drafts. 13.3051 general. imprest funds and', 7331:'third party drafts may be used to acquire and to pay for supplies or services. policies and regulations concerning the', 7332:'establishment of and accounting for imprest funds and third party drafts, including the responsibilities of designated cashiers and alternates, are', 7333:'contained in partivof the treasury financial manual for guidance of departments and agencies,title7 of the gao policy and proceduresmanual for', 7334:'guidanceof federal agencies, and the agency 13.3052 federal acquisition regulation implementing regulations. agencies also shall be guided by the manual', 7335:'of procedures and instructions for cashiers, issued by the financial management service, department of the treasury. 13.3052agency responsibilities. each agency', 7336:'using imprest funds and third party drafts shall a periodically review and determine whether there is a continuing need for', 7337:'each fund or third party draft account established, and that amounts of those funds or accounts are not in excess', 7338:'of actual needs; b takeprompt action to have imprest funds or thirdparty draft accountsadjusted to a levelcommensurate with demonstrated needs', 7339:'whenever circumstances warrant such action; and c develop and issue appropriate implementing regulations. these regulations shall include but are not', 7340:'limited to procedures covering 1 designation of personnel authorized to make purchases using imprest funds or third party drafts; and', 7341:'2 documentation of purchases using imprest funds or third party drafts, including documentation of i receipt and acceptance of supplies', 7342:'and services by the government; ii receipt of cash or third party draft payments by the suppliers; and iii cash', 7343:'advances and reimbursements. 13.3053 conditions for use. imprest funds or third party drafts may be used for purchases when a', 7344:'the imprest fund transaction does not exceed $500 or such other limits as have been approved by the agency head;', 7345:'b the third party draft transaction does not exceed $2,500, unless authorized at a higher level in accordance with treasury', 7346:'restrictions; c the use of imprest funds or third party drafts is considered to be advantageous to the government; and', 7347:'d the use of imprest funds or third party drafts for the transaction otherwise complies with any additional conditions established', 7348:'by agencies and with the policies and regulations referenced in 13.3051. 13.3054procedures. a each purchase using imprest funds or third', 7349:'party drafts shall be based upon an authorized purchase requisition, contracting officerverification statement, or otheragency approved methodof ensuring that adequatefundsare', 7350:'available for the purchase. b normally,purchases should be placed orally and without soliciting competition if prices are consideredreasonable. c since', 7351:'there is, for all practical purposes, simultaneous placement of the order and delivery of the items, clauses are not required', 7352:'for purchases using imprest funds or third party drafts. d forms prescribed at 13.307e may be used if a written', 7353:'order is considered necessary e.g., if required by the supplier for discount, tax exemption, or other reasons. if a purchase', 7354:'order is used, endorse it payment to be made from imprest fund or payment to be made from third party', 7355:'draft, as appropriate. e the individual authorized to make purchases using imprest funds or third party drafts shall 1 furnish', 7356:'to the imprest fund or third party draft cashier a copy of the document required under paragraph a of this', 7357:'subsection annotated to reflect i that an imprest fund or third party draft purchase has been made; ii the unit', 7358:'prices and extensions; and iii the supplier’s name and address;and 2 require the supplier to include with delivery of the', 7359:'supplies an invoice, packing slip, or other sales instrument giving ithe supplier’snameand address; ii list and quantity of items supplied;', 7360:'iii unit prices and extensions; and iv cashdiscount, if any. 13.306 sf 44, purchase orderinvoicevoucher. the sf 44, purchase orderinvoicevoucher,', 7361:'is a multipurpose pocketsize purchase orderform designed primarily for onthespot, overthecounter purchases of supplies and nonpersonal services whileaway from the', 7362:'purchasingoffice or at isolated activities. it also canbe usedas a receiving report, invoice, and public voucher. subpart 13.3 simplified acquisition', 7363:'methods 13.307 a this form may be used if all of the following conditions are satisfied: 1 the amount of', 7364:'the purchase is at or below the micropurchase threshold, except for purchases made under unusual and compellingurgency or in support', 7365:'of contingency operations. agencies may establish higherdollarlimitations for specific activities or items. 2 the supplies or services are immediately available.', 7366:'3 one delivery and one payment will be made. 4 its use is determinedto bemoreeconomical and efficientthan useof other simplified', 7367:'acquisition procedures. b general procedural instructionsgoverning theform’s use are printed on theform and onthe inside front cover of each book', 7368:'of forms. c since there is, for all practical purposes, simultaneous placement of the order and delivery of the items,', 7369:'clauses are not required for purchases using this form. d agencies shall provide adequate safeguards regarding the control of forms', 7370:'and accounting for purchases. 13.307forms. a commercial products and commercial services. for use of the sf 1449, solicitation/contract/order for commercial', 7371:'products and commercial services, see 12.204. b other than commercial products and commercial services. 1 except when quotations are solicited', 7372:'electronically or orally,the sf 1449; sf 18, request for quotations; or an agency form/automated format may be used. each agency', 7373:'request for quotations form/automated format should conform with the sf 18 or sf 1449 to the maximum extent practicable. 2', 7374:'both sf 1449 and of 347, order for supplies or services, are multipurpose forms used for negotiated purchases of supplies', 7375:'or services, delivery or task orders, inspection and receiving reports, and invoices. an agency form/automated format also may be used.', 7376:'c forms used for both commercial and other than commercial products and commercial services. 1 of 336, continuation sheet, or', 7377:'an agency form/automated format may be used when additional space is needed. 2 of 348, order for supplies or services', 7378:'schedulecontinuation, or an agency form/automated format may be used for negotiated purchases when additional space is needed. agencies may print', 7379:'on these forms the clauses considered to be generally suitable for purchases. 3 sf 30, amendment of solicitation/modification of contract,', 7380:'or a purchase order form may be used to modify a purchase order, unless an agency form/automated format isprescribed in', 7381:'agency regulations. d sf 44,purchase orderinvoicevoucher, is a multipurpose pocketsize purchase order form that may be used as outlined in', 7382:'13.306. e sf 1165, receipt for cashsubvoucher,or an agency purchaseorder form may be used for purchases using imprest funds or', 7383:'third party drafts. this page intentionally left blank. 13.38 subpart 13.4 fast payment procedure 13.404 subpart 13.4 fast payment procedure', 7384:'13.401general. a thefastpayment procedure allows paymentunder limitedconditions to acontractor priorto the government’s verification that supplies have been received and accepted.', 7385:'the procedure provides for payment for supplies based on the contractor’s submission of an invoice that constitutesa certification that the', 7386:'contractor 1 has delivered the supplies to apost office, common carrier, or point offirstreceipt by the government;and 2 shall replace,', 7387:'repair, orcorrect supplies not received at destination, damaged in transit, ornot conforming to purchase agreements. b the contractingofficer shall be', 7388:'primarily responsible for determining the amount of debts resulting from failure of contractors to properly replace, repair,or correct supplies lost,', 7389:'damaged,or not conforming to purchase requirements see 32.602 and 32.603. 13.402conditions for use. if the conditions in paragraphs a through', 7390:'f of this section are present, the fast payment procedure may be used, provided that use of the procedure is', 7391:'consistent with the other conditions of the purchase. the conditions for use of the fast payment procedure are as follows:', 7392:'a individual purchasing instruments do not exceed $35,000, except that executive agencies may permit higher dollar limitations for specified activities', 7393:'or items on a casebycase basis. b deliveries of supplies are to occur at locations where there is both a', 7394:'geographical separation and a lack of adequate communications facilities between government receiving and disbursing activities that will make it impractical', 7395:'to make timely payment based on evidence of government acceptance. c titleto thesupplies passes to the government 1 upon delivery', 7396:'to a post office or commoncarrierformailingor shipment todestination; or 2 upon receipt by the government if the shipment isby means', 7397:'other than postal service or commoncarrier. d the supplier agrees to replace, repair, or correct suppliesnot received at destination, damagedin', 7398:'transit, or not conforming to purchase requirements. e thepurchasing instrument is a firmfixedprice contract,a purchase order, or a delivery order', 7399:'for supplies. f a system is in place to ensure 1 documentation of evidence of contractor performance under fast payment', 7400:'purchases; 2 timely feedbackto the contracting officer in case of contractor deficiencies; and 3 identification of suppliers that have a', 7401:'current history of abusing the fast payment procedure also see subpart 9.1. 13.403 preparationand execution of orders. pricedor unpriced contracts,', 7402:'purchase orders, or bpasusing the fast payment procedure shall includethe following: a a requirement that the supplies be shipped transportation', 7403:'or postage prepaid. b a requirement that invoices be submitteddirectlyto thefinance orotheroffice designated in the order, or in the case', 7404:'of unpriced purchase orders, to the contracting officer see 13.3022c. c thefollowing statement on theconsignee’s copy: consignee’s notification topurchasingactivity of', 7405:'nonreceipt, damage, or nonconformance the consignee shall notify the purchasingoffice promptly after the specified dateof delivery of supplies not received,', 7406:'damaged in transit, or not conformingto specificationsof the purchase order. unless extenuatingcircumstances exist, the notificationshouldbe made not later than 60', 7407:'days after thespecified date of delivery. 13.404contract clause. the contractingofficer shall insertthe clause at 52.2131, fast payment procedure, in solicitations', 7408:'and contracts when the conditions in 13.402 are applicable and it is intended that the fast payment procedure be used', 7409:'in the contract in the case of bpas,the contracting officermay elect to insert the clause either in the bpaor in', 7410:'orders under the bpa. this page intentionally left blank. 13.42 subpart 13.5 simplified procedures for certain commercial products and commercial', 7411:'services 13.501 subpart 13.5 simplified procedures for certain commercial products and commercial services 13.500general. a this subpart authorizes the use', 7412:'of simplified procedures for the acquisition of supplies and services in amounts greater than the simplified acquisition threshold but not', 7413:'exceeding $7.5 million $15 million for acquisitions as described in 13.500c, including options, if thecontracting officer reasonably expects, based on', 7414:'the natureof the supplies or services sought, and on market research, thatoffers will include only commercial products or commercial services.', 7415:'contracting officers may use any simplified acquisition procedure inthispart, subject to any specificdollarlimitation applicableto the particular procedure. thepurpose of these', 7416:'simplifiedprocedures is to vestcontracting officers with additional procedural discretion and flexibility, so that commercial acquisitions in this dollar range may', 7417:'be solicited, offered,evaluated, and awarded ina simplifiedmanner that maximizes efficiency and economy and minimizes burden and administrative costs for both', 7418:'the government and industry 10 u.s.c. 32053208 and chapter 241 and 41 u.s.c.3305, 3306, and chapter 37, awarding of contracts.', 7419:'b when acquiring commercial products or commercial services using the procedures in this part, the requirements of part 12 apply', 7420:'subject to the order of precedence provided at 12.102c. this includes use of the provisions and clauses in subpart 12.3.', 7421:'c under 41 u.s.c. 1903, the simplified acquisition procedures authorized in this subpart may be used for acquisitions that do', 7422:'not exceed $15 million when 1 the acquisition is for commercial products or commercial services that, as determinedby the head', 7423:'ofthe agency, areto beused insupport ofa contingency operation; to facilitate the defense against or recovery from cyber, nuclear, biological, chemical,', 7424:'or radiological attack; to support a request from the secretary of state or the administrator of the united states agency', 7425:'for international development to facilitate provision of international disaster assistance; or to support response to an emergency or major disaster,', 7426:'or 2 the acquisition will be treated as an acquisition of commercial products or commercial services in accordance with 12.102f1.', 7427:'13.501 special documentation requirements. a sole source including brand name acquisitions. 1 acquisitions conducted under simplified acquisition procedures are exempt', 7428:'from the requirements in part 6.however,contractingofficersmust i conduct sole source acquisitions, as defined in 2.101, including brand name under this', 7429:'subpart only if the need to do so is justified in writing and approved at the levels specified in paragraph', 7430:'a2 of this section; ii prepare sole source including brand name justifications using the format at 6.3032, modified to reflect', 7431:'that the proceduresinfar subpart 13.5 were used in accordance with 41 u.s.c.1901 or the authority of 41 u.s.c. 1903; iii', 7432:'make publicly available the justifications excluding brand name required by 6.305a within 14 days after contract award or in thecaseof', 7433:'unusual and compelling urgency within 30 days after contract award, in accordance with 6.305 procedures at paragraphs b, d, e,', 7434:'and f; and iv make publicly available brand name justifications with the solicitation, in accordance with 5.102a6. 2 justifications and', 7435:'approvals are required under this subpart for solesource including brandname acquisitions or portions of an acquisition requiring a brandname. if', 7436:'the justification is to cover only the portion of the acquisition which is brandname, then it should so state; the', 7437:'approval level requirements will then only apply to that portion. i for a proposed contract exceeding the simplified acquisition threshold,', 7438:'but not exceeding $750,000, the contracting officer’s certification thatthe justification is accurateand completeto thebestof the contractingofficer’s knowledge and belief will', 7439:'serve as approval, unless a higher approval level is established in accordance with agency procedures. ii for a proposed contract', 7440:'exceeding $750,000 or the thresholds in paragraph 1 of the definition of simplified acquisition threshold in 2.101, but not exceeding', 7441:'$15 million, the advocate for competition for the procuring activity, designated pursuant to 6.501;or an official described in 6.304a3 or', 7442:'a4 must approve the justification and approval. this authority is not delegable. iii for a proposed contract exceeding $15 million', 7443:'but not exceeding $75 million or, for dod, nasa, and the coast guard, not exceeding $100 million, theheadof the procuring', 7444:'activity orthe officialdescribed in 6.304a3 or a4 must approve the justification and approval. this authority is not delegable. federal acquisition', 7445:'regulation iv for aproposed contractexceeding $75 million or, for dod, nasa, and the coast guard, $100 million, the official describedin', 7446:'6.304a4 must approve the justification and approval. this authority is not delegable except as provided in 6.304a4. b contract file', 7447:'documentation. the contract file must include 1 a brief written description of the procedures used in awarding the contract, including', 7448:'the fact that the procedures in far subpart 13.5 were used; 2 the numberof offers received; 3 an explanation, tailored', 7449:'to the size and complexity of the acquisition, of the basis for the contract award decision; and 4 any justification', 7450:'approved under paragraph a of this section. part 14 sealed bidding sec. 14.000 scope of part. subpart 14.1 use of', 7451:'sealed bidding 14.101 elements of sealed bidding. 14.102 [reserved] 14.103 policy. 14.1031 general. 14.1032 limitations. 14.104 types of contracts. 14.105', 7452:'solicitations for informational or planning purposes. subpart 14.2 solicitation of bids 14.201 preparation of invitations for bids. 14.2011 uniform contract', 7453:'format. 14.2012 part i—the schedule. 14.2013 partiicontract clauses. 14.2014 partiiidocuments, exhibits, and other attachments. 14.2015 partivrepresentations and instructions. 14.2016 solicitation', 7454:'provisions. 14.2017 contract clauses. 14.2018 price related factors. 14.2019 simplified contract format. 14.202 general rules for solicitation of bids. 14.2021', 7455:'bidding time. 14.2022 [reserved] 14.2023 bid envelopes. 14.2024 bid samples. 14.2025 descriptive literature. 14.2026 final review of invitations for bids.', 7456:'14.2027 facsimile bids. 14.2028 electronic bids. 14.203 methods of soliciting bids. 14.2031 transmittaltoprospectivebidders. 14.2032 dissemination of information concerning invitations for', 7457:'bids. 14.2033 master solicitation. 14.204 records of invitations for bids and records of bids. 14.205 presolicitation notices. 14.206 [reserved] 14.207', 7458:'prebid conference. 14.208 amendment of invitation for bids. 14.209 cancellation of invitations before opening. 14.210 qualified products. 14.211 release of', 7459:'acquisition information. 14.212 economic purchase quantities supplies. subpart 14.3 submission of bids 14.301 responsiveness of bids. 14.302 bid submission. 14.303', 7460:'modification or withdrawal of bids. 14.304 submission, modification, and withdrawal of bids. subpart 14.4 opening of bids and award of', 7461:'contract 14.400 scope of subpart. 14.401 receipt and safeguarding of bids. 14.402 opening of bids. 14.4021 unclassified bids. 14.4022 classified', 7462:'bids. 14.4023 postponement of openings. 14.403 recording of bids. 14.404 rejection of bids. 14.4041 cancellation of invitations after opening. 14.4042', 7463:'rejection of individual bids. 14.4043 notice to bidders of rejection of all bids. 14.4044 restrictions on disclosure of descriptive literature.', 7464:'14.4045 all or none qualifications. 14.405 minor informalities or irregularities in bids. 14.406 receipt of an unreadable electronic bid. 14.407', 7465:'mistakes in bids. 14.4071 general. 14.4072 apparent clerical mistakes. 14.4073 other mistakes disclosed before award. 14.4074 mistakes after award. 14.408', 7466:'award. 14.4081 general. 14.4082 responsible bidderreasonableness of price. 14.4083 prompt payment discounts. 14.4084 economic price adjustment. 14.4085 [reserved] 14.4086 equal', 7467:'low bids. 14.4087 documentation of award. 14.4088 protests against award. 14.409 information to bidders. 14.4091 award of unclassified contracts. 14.4092', 7468:'award of classified contracts. subpart14.5 twostep sealed bidding 14.501 general. 14.502 conditions for use. 14.503 procedures. 14.5031 step one. 14.5032', 7469:'step two. this page intentionally left blank. subpart 14.1 use of sealed bidding 14.105 14.000scope of part. this part prescribes', 7470:'a the basic requirements of contracting for supplies and services including construction by sealed bidding; b the information to be', 7471:'included in the solicitation invitation for bids; c procedures concerning the submission of bids; d requirements for opening and evaluating', 7472:'bids and awarding contracts; and e procedures for twostep sealed bidding. subpart 14.1 use of sealed bidding 14.101elements of sealed', 7473:'bidding. sealed bidding is a method of contracting that employs competitive bids, public opening of bids, and awards. the following', 7474:'steps are involved: a preparation of invitations for bids.invitations must describe the requirements ofthe government clearly, accurately, and completely. unnecessarily', 7475:'restrictive specificationsor requirements that might unduly limit thenumber of bidders are prohibited. the invitation includes all documents whether attached or', 7476:'incorporated by reference furnished prospective bidders for the purpose of bidding. b publicizing the invitation for bids. invitations must be', 7477:'publicized through distribution to prospective bidders, posting in public places,and such other meansas may be appropriate. publicizing must occura sufficient', 7478:'time before public opening of bids to enable prospective bidders to prepare and submit bids. c submission of bids. bidders', 7479:'must submit sealed bids to be opened at the time and place stated in the solicitation for the public opening', 7480:'of bids. d evaluation of bids. bids shall be evaluated without discussions. e contract award. after bids are publicly opened,', 7481:'an award will be made with reasonable promptness to that responsible bidder whose bid, conforming to the invitation for bids,', 7482:'will be most advantageous to the government, considering only price and the pricerelated factors included in the invitation. 14.102[reserved] 14.103', 7483:'policy. 14.1031 general. a sealed bidding shall be used whenever the conditions in 6.401a are met. this requirement applies to', 7484:'any proposed contract action under part 6. b sealed bidding may be used for classified acquisitions if its use does', 7485:'not violate agency security requirements. c the policy for pricing modifications of sealed bid contract appears in 15.4034a1iii. 14.1032 limitations.', 7486:'no awards shall be made as a result of sealed bidding unless a bids have been solicited as required by', 7487:'subpart 14.2; b bids have been submitted as required by subpart 14.3; c the requirements of 1.6021b and part 6', 7488:'have been met; and d an award is made to the responsible bidder see 9.1 whose bid is responsive to', 7489:'the terms of the invitation for bids and is most advantageous to the government, considering only price and the price', 7490:'related factors included in the invitation, as provided in subpart 14.4. 14.104 typesof contracts. firmfixedprice contracts shall be used when', 7491:'the method of contracting is sealed bidding, except that fixedprice contracts with economic price adjustment clauses may be used if', 7492:'authorized in accordance with 16.203 when some flexibility is necessaryandfeasible. such clausesmust afford all bidders anequalopportunity to bid. 14.105solicitations for', 7493:'informational or planning purposes. see 15.201e. this page intentionally left blank. 14.12 subpart 14.2 solicitation of bids 14.2011 subpart 14.2', 7494:'solicitation of bids 14.201 preparationof invitations forbids. 14.2011 uniform contract format. a contracting officers shall prepare invitations for bids and', 7495:'contracts using the uniform contract format outlined in table141 to the maximum practicable extent. the useof the format facilitates preparation', 7496:'of the solicitation and contract as well as reference to, and use of, those documents by bidders and contractors. it', 7497:'need not be used for acquisition of the following: 1 construction see part 36. 2 shipbuilding including design, construction, and', 7498:'conversion,ship overhaul, and ship repair. 3 subsistence items. 4 supplies or services requiring special contract forms prescribed elsewhere in this', 7499:'regulation that are inconsistent with the uniform contract format. 5 firmfixedprice or fixedprice with economic price adjustment acquisitions that use', 7500:'the simplified contract format see 14.2019. b information suitable for inclusion in invitations for bids under the uniform contract format', 7501:'shall also be included in invitations for bids not subject to that format if applicable. c solicitations to which the', 7502:'uniform contract format applies shall include partsi, ii, iii, and iv. if any section of the uniform contract format does', 7503:'notapply, the contracting officer should so mark that section in the solicitation. upon award, thecontracting officer shall not physically include', 7504:'partiv inthe resulting contract, but shall retain it in the contract file. see 14.201c. award by acceptance of a bid', 7505:'on the award portion of standard form 33, solicitation, offer and award sf 33, standard form 26, award/contract sf 26,', 7506:'or standard form 1447, solicitation/contract sf 1447, incorporates section k, representations, certifications, and other statements of bidders, in the resultant', 7507:'contract even though not physically attached. the representations and certifications shall be incorporated by reference in the contract by using', 7508:'52.20419 see 4.1202b or for acquisitions of commercial products and commercial services see 52.2124v. table 141 uniformcontractformat section title partithe', 7509:'schedule a solicitation/contract form b supplies or services and prices c description/specifications d packaging and marking e inspection and acceptance', 7510:'f deliveries or performance g contract administration data h special contract requirements partiicontract clauses i contract clauses partiiilist of documents,', 7511:'exhibits, and otherattachments j list of documents, exhibits, and other attachments partivrepresentations and instructions k representations, certifications, and other statements', 7512:'of bidders l instructions, conditions, and notices to bidders 14.2012 federal acquisition regulation section title m evaluation factors for award', 7513:'14.2012 part i—the schedule. the contractingofficer shall prepare the schedule as follows: a section a, solicitation/contract form. 1 prepare the', 7514:'invitation for bids on sf 33, unless otherwise permitted by this regulation. the sf 33 is the first page of', 7515:'the solicitation and includes section a of the uniform contract format. when the sf 1447 is used as the solicitation', 7516:'document, the information in subdivisions a2i and a2iv of this subsection shall be inserted in block9 of the sf 1447.', 7517:'2 when the sf 33 or sf 1447 is not used, include the following on the first page of the', 7518:'invitation for bids: iname, address, and location ofissuing activity, includingroom and building where bids must be submitted. iiinvitation for bids', 7519:'number. iii date of issuance. iv time specified for receipt of bids. v number of pages. vi requisition or other', 7520:'purchase authority. vii requirement for bidderto provide its name and complete address, includingstreet, city,county,state,and zip code. viii a statement that', 7521:'bidders should include in the bid the address to which payment should be mailed, if that address is different from', 7522:'that ofthe bidder. b section b, supplies or services and prices. include a brief description of the supplies or services;', 7523:'e.g., line item number, national stock number/part number if applicable,title or name identifying the supplies or services, andquantities see part', 7524:'11. the sf 33 and the sf 1447 may be supplemented as necessary by the optionalform336 of 336, continuation sheet.', 7525:'c section c, description/specifications. include any description or specifications needed in addition to section b to permit full and open', 7526:'competition see part 11. d section d, packaging and marking. provide packaging,packing, preservation, and marking requirements,if any. e section e,', 7527:'inspection and acceptance. include inspection, acceptance, quality assurance, and reliability requirements see part 46, quality assurance. f section f, deliveries', 7528:'or performance. specify the requirements for time, place, and method of delivery or performance see subpart 11.4, delivery or performance', 7529:'schedules. g section g, contract administration data. include any required accounting and appropriation data and any required contract administration information', 7530:'or instructions other than those on the solicitation form. h section h, special contract requirements. include a clear statement of', 7531:'any special contract requirements that are not included in section i, contract clauses, or in other sections of the uniform', 7532:'contract format. 14.2013 partiicontract clauses. section i, contract clauses. the contracting officershallinclude in this section the clauses requiredby law or', 7533:'by this regulation and any additional clauses expected to apply to any resulting contract, if these clauses are not required', 7534:'to be included in any other section of the uniform contract format. 14.2014 partiiidocuments, exhibits, and other attachments. section j,', 7535:'list of documents, exhibits, and other attachments. the contracting officer shall list the title, date, andnumber of pages for each', 7536:'attached document. 14.2015partivrepresentations and instructions. the contractingofficer shall prepare the representations andinstructions as follows: a section k, representations, certifications, and', 7537:'other statements of bidders. include in this section those solicitation provisions that require representations, certifications, or the submission of other', 7538:'information by bidders. b section l, instructions, conditions, and notices to bidders. insert in this section solicitation provisions and other', 7539:'information and instructions not required elsewhere to guide bidders. invitations shall include the time and place for bid subpart 14.2', 7540:'solicitation of bids 14.2016 openings, and shall advise bidders that bids will be evaluated without discussions see 52.21410 and, for', 7541:'construction contracts, 52.21419. c section m, evaluation factors for award. identify the price related factors other than the bid price', 7542:'that will be considered in evaluating bids and awarding the contract. see 14.2018. 14.2016solicitation provisions. a theprovisionsprescribed in this subsection', 7543:'apply topreparation andsubmission of bids in general. see other far parts for provisions and clauses related to specific acquisition requirements.', 7544:'b insert in all invitations for bids the provisions at 1 52.2143, amendments to invitations for bids; and 2 52.2144,', 7545:'false statements in bids. c insert the following provisions in invitations for bids: 1 52.2145, submission of bids. 2 52.2146,', 7546:'explanation to prospective bidders. 3 52.2147, late submissions, modifications,andwithdrawals of bids. d [reserved] e insert in all invitations for bids,', 7547:'except those for construction, the provisions at 52.21410, contract awardsealed bidding. f insert in invitations for bids to which the', 7548:'uniform contract format applies, the provision at 52.21412, preparation of bids. g [reserved] h insert the provision at 52.21414, place', 7549:'of performancesealed bidding, in invitations for bids except those in which the place of performance is specified by the government.', 7550:'i insert the provision at 52.21415, period for acceptance of bids, in invitations for bids ifb’s that are not issued', 7551:'on sf 33 or sf 1447 except ifb’s 1 for construction work; or 2 in which the government specifies a', 7552:'minimum acceptance period. j insert the provision at 52.21416, minimum bid acceptance period, in invitations for bids, except for construction,', 7553:'if thecontracting officer determines thata minimum acceptanceperiod must be specified. k [reserved] l insert the provision at 52.21418, preparation of', 7554:'bidsconstruction, in invitations for bids for construction work. m insert the provision at 52.21419, contract awardsealed biddingconstruction, in all invitations', 7555:'for bidsfor construction work. n [reserved] o 1 insert the provision at 52.21420, bid samples, in invitations for bids if', 7556:'bid samples are required. 2 if it appears that the conditions in 14.2024e1 will apply and thecontracting officer anticipatesgranting waivers', 7557:'and i if the nature of the required product does not necessitate limiting the grant of a waiver to a', 7558:'product produced at the same plant in which the product previously acquired or tested was produced, use the provision with', 7559:'its alternate i; or ii if the nature of the required product necessitates limiting the grant of a waiver to', 7560:'a product produced at the same plant in which the product previously acquired or tested was produced, use the provision', 7561:'with its alternate ii. 3 see 14.2024e2 regarding waiving the requirement for all bidders. p 1 insert the provision at', 7562:'52.21421, descriptive literature, in invitations for bids if idescriptive literature is required to evaluate the technical acceptability of an offered', 7563:'product; and ii the required information will not be readily available unless it is submitted by bidders. 2 use the', 7564:'basic clausewith its alternate i if the possibility exists that the contracting officermay waive the requirement for furnishing descriptive literature', 7565:'for a bidder offering a previouslysuppliedproduct that meets specification requirements of the current solicitation. 3 see 14.2025d2 regarding waiving the', 7566:'requirement for all bidders. q insert the provision at 52.21422, evaluation of bids for multiple awards, in invitations for bidsif', 7567:'the contracting officer determines that multiple awards might be made if doingso is economically advantageous tothe government. r insert the', 7568:'provision at 52.21423, late submissions, modifications,revisions,and withdrawalsof technical proposals under twostepsealed bidding, in solicitations for technical proposals insteponeof twostep sealed', 7569:'bidding. 14.2017 federal acquisition regulation s insert the provision at 52.21424, multipletechnicalproposals, in solicitations for technical proposals instep oneof twostep', 7570:'sealed bidding if the contracting officer permits the submission of multiple technicalproposals. t insert the provision at 52.21425, steptwo oftwostep', 7571:'sealed bidding, in invitationsforbids issued under steptwo of twostep sealed bidding. u [reserved] v insert the provision at 52.21431, facsimile', 7572:'bids, in solicitations if facsimile bids are authorized see 14.2027. w insert the provision at 52.21434, submission ofoffers in the', 7573:'english language, insolicitationsthat include any of the clauses prescribed in 25.1101 or 25.1102. it may be included inother solicitations when', 7574:'the contracting officerdecides that it is necessary. x insert the provision at 52.21435, submission of offers in u.s. currency, insolicitationsthat', 7575:'include any of the clauses prescribed in 25.1101 or 25.1102,unlessthe contracting officer includes the clause at 52.22517, evaluation of foreign', 7576:'currency offers, as prescribed in 25.1103d. it may be included in other solicitations when thecontracting officer decides that it is', 7577:'necessary. 14.2017 contract clauses. a when contracting by sealed bidding, the contracting officer shall insert theclause at 52.21426, audit and', 7578:'records sealed bidding, in solicitations and contracts as follows: 1 use the basic clause if i the acquisition will not', 7579:'use funds appropriated or otherwise made available by the american recovery and reinvestmentactof 2009 pub. l. 1115; and ii the', 7580:'contract amount is expected to exceed the threshold at 15.4034a1 for submission of certified cost or pricing data. 2 i', 7581:'if the acquisition will use funds appropriated or otherwise made available by the american recovery and reinvestment act of 2009,', 7582:'use the clause with its alternate i in all solicitations and contracts. ii a in the case of a bilateral', 7583:'contract modification that will use funds appropriated or otherwise made available by the american recoveryand reinvestment act of 2009, the', 7584:'contractingofficer shall specify applicability of alternate i to that modification. b in the case of a task or deliveryorder contract', 7585:'in which not all orders will use funds appropriated or otherwisemade available by the american recovery and reinvestment act of', 7586:'2009, the contracting officer shall specifythe task or delivery orders to which alternate i applies. b 1whencontractingbysealedbidding,thecontractingofficershallinserttheclauseat 52.21427, price reduction', 7587:'for defective certified cost or pricing datamodificationssealed bidding, in solicitations and contracts if the contract amount is expected to exceed', 7588:'the threshold for submission of certified cost or pricing data at 15.4034a1. 2 in exceptional cases, the head of the', 7589:'contracting activity may waive the requirement for inclusion of the clause in a contract with a foreign government or agency', 7590:'of that government. the authorizations for the waiver and the reasons for granting it shall be in writing. c 1', 7591:'when contracting by sealed bidding, the contracting officer shall— i insert the clause at 52.21428, subcontractor certified cost or pricing', 7592:'data—modifications—sealed bidding, in solicitations and contracts if the contract amount is expected to exceed the threshold for submission of certified', 7593:'cost or pricing data at 15.4034a1; or ii upon request of a contractor in connection with a prime contract entered', 7594:'into before july 1, 2018, the contracting officer shall modify the contract without requiring consideration to replace clause 52.21428, subcontractor', 7595:'certified cost or pricing data—modifications—sealed bidding, with its alternate i. 2 in exceptional cases, the head of the contracting activity', 7596:'may waive the requirement for inclusion of the clause in a contract with a foreign government or agency of that', 7597:'government. the authorizations for the waiver and the reasons for granting it shall be in writing. d when contracting by', 7598:'sealed bidding the contracting officer shall insert the clause at 52.21429, order of precedence sealed bidding, in solicitations and contracts', 7599:'to which the uniform contract format applies. 14.2018price related factors. the factors set forth in paragraphs a through e of', 7600:'this subsection may be applicable in evaluation of bids for award and shall be included in the solicitation when applicable.', 7601:'see 14.2015c. subpart 14.2 solicitation of bids 14.2021 a foreseeable costs or delays to the government resulting from such factors', 7602:'as differences ininspection, locations of supplies, and transportation. if bids are on an f.o.b. origin basis see 47.303 and 47.305,', 7603:'transportation costs to the designated points shall be considered in determining the lowest cost to the government. b changes made,or', 7604:'requested by the bidder, in any of the provisions of theinvitation for bids, ifthe changedoes not constitute a ground for', 7605:'rejection under 14.404. c advantages or disadvantages to the government that might result from making more than one award see', 7606:'14.2016q. the contractingofficer shall assume,forthe purposeof making multipleawards, that $500 would be the administrative cost to the government for issuing', 7607:'and administering each contract awarded under a solicitation. individual awards shall be for the items or combinations of items that', 7608:'result in the lowest aggregate cost to the government, including the assumed administrative costs. d federal, state, and local taxes', 7609:'see part 29. e origin of supplies, and, if foreign, the application of the buy american statute or any other', 7610:'prohibition on foreign purchases see part 25. 14.2019 simplified contract format. policy. for firmfixedprice or fixedprice with economic price adjustment', 7611:'acquisitions of supplies and services, the contracting officermay usethe simplified contract format inlieu of the uniform contract formatsee 14.2011. the', 7612:'contracting officerhas flexibility in preparation and organization ofthe simplified contract format. however, the following format should be used to the', 7613:'maximum practical extent: a solicitation/contract form. standard form sf 1447, solicitation/contract, shall be used as the first page of the', 7614:'solicitation. b contract schedule. include the following for each line item: 1 line item number. 2 description ofsupplies orservices, ordata', 7615:'sufficient to identify therequirement. 3 quantity and unit of issue. 4 unit price and amount. 5 packaging and marking requirements.', 7616:'6 inspection and acceptance, quality assurance, and reliability requirements. 7 place of delivery, performance and deliverydates, period of performance, andf.o.b.', 7617:'point. 8 other itempeculiar information as necessary e.g., individual fund citations. c clauses. include the clauses required by this regulation.', 7618:'additional clauses shall be incorporated only when considered absolutely necessary to the particular acquisition. d list of documents and attachments.', 7619:'include if necessary. e representations and instructions 1 representations and certifications. insert those solicitation provisions that require representations, certifications, or', 7620:'the submission of other information by offerors. 2 instructions, conditions, and notices. include the solicitation provisions required by 14.2016. include', 7621:'any other information/instructionsnecessary toguide offerors. 3 evaluation factors for award. insert all evaluation factors and any significant subfactors for award.', 7622:'4 upon award, the contracting officer need not physically include the provisionsin paragraphs e1,2, and3of this subsectionin theresulting contract, but', 7623:'shall retain them in the contract file. awardby acceptance ofa bidon the award portion of sf 1447 incorporates the representations,', 7624:'certifications, and other statements of bidders in the resultant contract even though not physically attached. 14.202general rules for solicitation of', 7625:'bids. 14.2021 bidding time. a policy. a reasonable time for prospective bidders to prepare and submit bids shall be allowed', 7626:'in all invitations, consistent with the needs of the government. for construction contracts, see 36.2133a. a bidding time i.e., the', 7627:'time between issuance of the solicitation and opening of bids of at least 30 calendar days shall be provided, when', 7628:'synopsis is required by subpart 5.2. b factors to be considered. because of unduly limited bidding time, some potential sources', 7629:'may be precluded from bidding andothers may be forced toinclude amounts for contingencies that, with additional time, could beeliminated. to', 7630:'14.2022 federal acquisition regulation avoid unduly restricting competition or paying higherthannecessary prices, consideration shall be given to such factors as', 7631:'the following in establishing a reasonable bidding time: 1 degree ofurgency; 2 complexity of requirement; 3 anticipated extent of subcontracting;', 7632:'4 whether use was made of presolicitation notices; 5 geographic distribution of bidders; and 6 normal transmittal time for both', 7633:'invitations and bids. 14.2022 [reserved] 14.2023 bid envelopes. a postage or envelopes bearing postage and fees paid indicia shall not', 7634:'be distributed with the invitation for bids or otherwise supplied to prospective bidders. b to provide for ready identification and', 7635:'properhandling of bids, optional form 17, offer label, may be furnished with each bid set. the form may be obtained', 7636:'from the general services administration see 53.107. 14.2024 bid samples. a policy. 1 bidders shall not be required to furnish', 7637:'bid samples unless there are characteristics of the product that cannot be described adequately in the specification or purchase description.', 7638:'2 bid samples will be used only to determine the responsiveness of the bid and will not be used to', 7639:'determine a bidder’s ability to produce the required items. 3 bid samples may be examined for any required characteristic, whether', 7640:'or not such characteristic is adequately described in the specification, if listed in accordance with paragraph d1ii of this section.', 7641:'4 bids will be rejected as nonresponsive if the sample fails to conform to each of the characteristics listed in', 7642:'the invitation. b when to use. the use of bid samples would be appropriate for products that must be suitable', 7643:'from the standpoint of balance, facilityof use, general feel, color, pattern, or other characteristicsthat cannot be described adequately in the', 7644:'specification. however,when more than aminor portion of thecharacteristics of the product cannot be adequately described in the specification, products should', 7645:'be acquired by twostep sealed bidding or negotiation, as appropriate. c justification. the reasons why acceptable products cannot be acquired', 7646:'without the submission of bid samples shall be set forth in the contract file,exceptwhere the submission is requiredby the formal', 7647:'specifications federal, military, or other applicable to the acquisition. d requirements for samples in invitations for bids. 1 invitations for', 7648:'bids shall i state the number and, if appropriate, the size of the samples to be submitted and otherwise fully', 7649:'describe the samples required; and ii list all the characteristics for which the samples will be examined. 2 if bid', 7650:'samples are required, see 14.2016o. e waiver of requirement for bid samples. 1 the requirement for furnishing bid samples may', 7651:'be waived when a bidder offers a product previously or currently being contractedforor tested by the government andfound to comply', 7652:'with specification requirements conforming in every material respect with those in the current invitation for bids. when the requirement may', 7653:'be waived, see 14.2016o2. 2 where samples required by a federal, military, orother formal specification arenot considered necessary and a', 7654:'waiver of the sample requirements of the specification has been authorized, a statement shall be included in the invitation that', 7655:'notwithstanding the requirements of the specification, samples will not be required. f unsolicited samples. bid samples furnished with a bid', 7656:'that are not required by the invitation generally will not be consideredas qualifying the bidand will be disregarded. however, thebid', 7657:'sample willnot be disregardedif it isclear from thebid or accompanying papersthat the bidder’s intention was toqualify the bid. see 14.4042d', 7658:'if the qualification does not conform to the solicitation. g handling bid samples. 1 samples that are not destroyed in', 7659:'testing shall be returned to bidders at their request and expense, unless otherwise specified in the invitation. 2 disposition instructions', 7660:'shall be requestedfrom bidders and samples disposed of accordingly. subpart 14.2 solicitation of bids 14.2027 3 samples ordinarily will be', 7661:'returned collect to the address from which received if disposition instructions are not received within 30 days. small items may', 7662:'be returned by mail, postage prepaid. 4 samples that are to be retained for inspection purposes in connection with deliveries', 7663:'shall be transmitted to the inspecting activity concerned, with instructions to retain the sample until completion of the contract or', 7664:'until disposition instructions are furnished. 5 where samples are consumed or their usefulness is impaired by tests, they will be', 7665:'disposed of as scrap unless the bidder requests their return. 14.2025descriptiveliterature. a policy.contracting officers must not requirebiddersto furnish descriptive literature', 7666:'unless it is needed before award to determine whether the products offeredmeet thespecificationand to establish exactly what thebidder proposes to', 7667:'furnish. b justification. the contracting officer mustdocument in the contract file the reasons why product acceptability cannot be determined without', 7668:'the submission of descriptive literature, except when the contract specifications require submission. c requirements of invitation for bids. 1 the', 7669:'invitation must clearly state i what descriptive literature the bidders must furnish; ii the purpose for requiring the literature; iii', 7670:'the extent of its consideration in the evaluation of bids; and iv the rules that will apply if a bidder', 7671:'fails to furnish the literature before bid opening or if the literature provided does not comply with the requirements of', 7672:'the invitation. 2 if bidders must furnish descriptive literature, see 14.2016p. d waiver of requirement for descriptive literature. 1 thecontracting', 7673:'officer may waive the requirement for descriptive literature if ithe bidder states inthe bid that the product beingoffered isthe same', 7674:'as a product previouslyor currently being furnished to the contracting activity; and iithe contracting officer determines that the productoffered bythe', 7675:'biddercomplies with the specification requirementsof the current invitation for bids. when the contractingofficer waives the requirement, see 14.2016p2. 2 when', 7676:'descriptive literature is not necessary and a waiver of literature requirements of a specification has been authorized, thecontracting officer must', 7677:'includea statement inthe invitation that, despite the requirements of the specifications, descriptive literature will not be required. 3 if the', 7678:'solicitationprovides for a waiver, abidder may submit abid on the basis of either the descriptive literature furnished with the bid', 7679:'or a previously furnished product. if the bid is submitted on one basis, the bidder may not have it considered', 7680:'on the other basis after bids are opened. e unsolicited descriptive literature. if descriptive literature is furnished when it is', 7681:'not required by the invitation for bids, the procedures set forth in 14.2024f must be followed. 14.2026final review ofinvitations for', 7682:'bids. each invitation for bids shall be thoroughly reviewed before issuance to detect and correct discrepancies or ambiguities that couldlimit', 7683:'competition or result in the receipt of nonresponsive bids. contracting officers are responsible for the reviews. 14.2027 facsimile bids. a', 7684:'unless prohibited or otherwise restricted by agency procedures, contracting officers may authorize facsimile bids see 14.2016v. indeterminingwhetheror not to authorize', 7685:'facsimile bids, the contracting officer shall consider factorssuch as 1 anticipated bid size and volume; 2 urgency of the requirement;', 7686:'3 frequency of price changes; 4 availability, reliability,speed, and capacity of thereceiving facsimile equipment; and 5 adequacy of administrative procedures', 7687:'and controls for receiving, identifying, recording, and safeguarding facsimile bids, and ensuring their timely delivery to the bids opening location.', 7688:'b if facsimile bids are authorized, contractingofficers may, after thedate set for bid opening, request the apparently successful offeror to', 7689:'providethe complete, original signed bid. 14.2028 federal acquisition regulation 14.2028electronic bids. in accordance with subpart 4.5,contractingofficersmayauthorizeuseofelectroniccommerceforsubmissionofbids. if electronic bids are', 7690:'authorized, the solicitation shall specify the electronic commerce methods that bidders may use. 14.203methods of soliciting bids. 14.2031transmittal to prospective', 7691:'bidders. invitations for bids or presolicitation notices must be provided in accordance with 5.102. when acontracting office is located in', 7692:'the united states, any solicitation sent to a prospective bidder located outside the united states shall be sent by electronic', 7693:'data interchange or air mail if security classification permits. 14.2032 dissemination of information concerning invitations for bids. procedures concerning display', 7694:'of invitations for bids in a public place, information releases to newspapers and trade journals, paid advertisements, and synopsizing through', 7695:'the governmentwide point of entry gpe are set forth in 5.101 and subpart 5.2. 14.2033 master solicitation. the master solicitation', 7696:'is provided to potential sources who are requested to retain it for continued and repetitive use. individual solicitations must reference', 7697:'the date of the current master solicitation and identify any changes. the contracting officer must a make available copies of', 7698:'the master solicitation on request; and b provide the cognizant contract administration activity a current copy of the master solicitation.', 7699:'14.204 records ofinvitations for bids andrecords of bids. a eachcontracting office shall retain a record of each invitation thatitissues and', 7700:'each abstract orrecord of bids. contracting officersshallreview and utilizethe information available in connection withsubsequentacquisitions of the same or similar items.', 7701:'b the file for each invitation shall show the distribution that was made and the date the invitation was issued.', 7702:'the names and addresses of prospective bidders who requested the invitation and were not included on the original solicitation list', 7703:'shall be added to the list and made a part of the record. 14.205 presolicitationnotices. in lieu of initially forwarding', 7704:'completebid sets, the contracting officer may send presolicitation notices to concerns. the notice shall a specify the final date for', 7705:'receipt of requests for a complete bid set; b briefly describe the requirement and furnish other essential information to enable', 7706:'concerns to determine whether they have an interest in the invitation; and c normally notinclude drawings, plans, and specifications. the', 7707:'return date of the notice must besufficiently inadvance of the mailing date of the invitation for bids to permit an', 7708:'accurate estimate of the number of bid sets required. bid sets shall be sent to concerns that request them in', 7709:'response to the notice. 14.206[reserved] 14.207 prebidconference. a prebid conference may be used, generally in a complex acquisition, as a', 7710:'means of briefing prospective bidders and explaining complicated specifications and requirements to them as early as possible after the invitation', 7711:'has been issued and before the bids are opened. it shall never be used as a substitute for amending a', 7712:'defective or ambiguous invitation. the conference shall be conducted in accordance with the procedure prescribed in 15.201. 14.208amendment of invitation', 7713:'for bids. a if it becomes necessary to make changes in quantity,specifications, delivery schedules, opening dates,etc., or to correct a', 7714:'defective or ambiguous invitation, such changes shall be accomplished by amendment of the invitation for bids using standard form 30,', 7715:'amendment of solicitation/ modification of contract. the fact that a change was mentioned at a subpart 14.2 solicitation of bids', 7716:'14.212 prebid conference does not relieve the necessity for issuing an amendment. amendments shall be sent, before the time for', 7717:'bid opening, to everyone to whom invitations have been furnished and shall be displayed in the bid room. b before', 7718:'amendingan invitation for bids, the contracting officer shall consider the period oftime remaininguntil bid opening and the need to extend', 7719:'this period. c any information given to a prospective bidder concerning an invitation for bids shall be furnished promptly to', 7720:'all other prospective bidders as an amendment to the invitation 1 if such information is necessary for bidders to submit', 7721:'bids or 2 if the lack of such information would be prejudicial to uninformed bidders. the information shall be furnished', 7722:'even though a prebid conference is held. no award shall be made on theinvitation unless such amendment has been issued', 7723:'in sufficient time to permit all prospective bidders to consider such information in submitting or modifying their bids. 14.209 cancellationof', 7724:'invitationsbefore opening. a thecancellation ofan invitation for bidsusually involves aloss of time, effort, and money spent by the government and', 7725:'bidders. invitations should not be cancelled unless cancellation is clearly in the public interest; e.g., 1 where there is no', 7726:'longer a requirement for the supplies or services; or 2 where amendments to the invitation would be of such magnitude', 7727:'that a new invitation is desirable. b when an invitation issued other than electronically is cancelled, bids that have been', 7728:'received shall be returned unopened to the bidders and notice of cancellation shall be sent to all prospective bidders to', 7729:'whom invitations were issued. when an invitation issued electronicallyis cancelled, a general notice ofcancellation shall be posted electronically, thebids received', 7730:'shall not be viewed,andthe bids shall be purged fromprimary and backup data storage systems. c thenotice of cancellation shall1 identify', 7731:'the invitation for bids bynumber and short title or subject matter, 2 briefly explain the reason the invitation is being', 7732:'cancelled, and 3 where appropriate, assure prospective bidders that they will be given an opportunity to bid on any resolicitation', 7733:'of bids or any future requirements for the type of supplies or services involved. cancellations shall be recorded in accordance', 7734:'with 14.403d. 14.210 qualified products. see subpart 9.2. 14.211release of acquisition information. a before solicitation. information concerning proposed acquisitions shall', 7735:'not be released outside the government before solicitation except for presolicitation notices in accordance with 14.205 or 36.2132, or longrange', 7736:'acquisition estimates in accordance with 5.404, or synopses in accordance with 5.201. within the government, such information shall be restricted', 7737:'to those having a legitimate interest. releases of information shall be made 1to all prospective bidders, and 2as nearly as', 7738:'possible at the same time, sothat one prospective bidder shall not be given unfairadvantage over another. see 3.104 regarding requirements', 7739:'for proprietary and source selection information including access to and disclosure thereof. b after solicitation. discussions with prospective bidders regarding', 7740:'a solicitation shall be conducted and technical or other information shall be transmittedonlyby the contracting officeror superiors havingcontractual authority or', 7741:'by others specifically authorized. such personnel shall not furnish any information to a prospective bidder that alone or together with', 7742:'other information may afford an advantageover others. however, general information that wouldnot be prejudicial to other prospective bidders may be', 7743:'furnished upon request; e.g., explanation of a particular contract clause or a particular condition of the schedule in the invitation', 7744:'for bids, and more specific information or clarifications may be furnished by amending the solicitation see 14.208. 14.212 economic purchasequantities', 7745:'supplies. contractingofficersshallcomplywiththeeconomicpurchasequantityplanningrequirementsforsuppliesin subpart 7.2. see 7.203 for instructions regarding use of the provision at 52.2074, economic purchase quantitysupplies, and 7.204', 7746:'for guidance on handling responses to that provision. this page intentionally left blank. 14.210 subpart 14.3 submission of bids 14.304', 7747:'subpart 14.3 submission of bids 14.301responsiveness of bids. a to be considered for award, a bid must comply in all', 7748:'material respects with the invitation for bids. such compliance enables bidders to stand on an equal footing and maintain the', 7749:'integrity of the sealed bidding system. b facsimile bids shall not be considered unless permitted by the solicitation see 14.2027.', 7750:'c bids should be filled out, executed, and submitted in accordance with the instructions in the invitation. if a bidder', 7751:'uses its own bid form or a letter to submit a bid, the bid may be considered only if 1', 7752:'the bidder accepts all the terms and conditions of the invitation; and 2 award on the bid would result in', 7753:'a binding contract with terms and conditions that do not varyfrom the termsand conditions of the invitation. d bids submitted', 7754:'by electronic commerce shall be considered only if the electronic commerce method was specifically stipulated or permitted by the solicitation.', 7755:'14.302bid submission. bidsshallbe submitted so that they will bereceived in the office designatedin theinvitation for bids not later than the', 7756:'exact time set for opening of bids. 14.303modification or withdrawal of bids. a bids may be modified or withdrawn by', 7757:'any method authorized by the solicitation, if notice is received inthe office designated in the solicitation not later than the', 7758:'exact time set for opening of bids. if the solicitation authorizes facsimile bids, bids may be modified or withdrawn via', 7759:'facsimile received at any time before the exact time set for receipt of bids, subject to the conditions specified in', 7760:'the provision prescribed in 14.2016v. modifications received by facsimile shall be sealed in an envelope bya properofficial. 1 the official', 7761:'shall– iwrite onthe envelope– a the date and time of receipt and by whom; and b the number of invitation', 7762:'for bids; and ii sign the envelope. 2 no information contained in the envelope shall be disclosed before the time', 7763:'set for bid opening. b a bid may be withdrawn in person by a bidder or its authorized representative if,', 7764:'before the exact time set for opening of bids, the identity of the persons requesting withdrawal is established and that', 7765:'person signs a receipt for the bid. c upon withdrawal of an electronically transmitted bid, the data received shall not', 7766:'beviewed and shall be purged from primary and backup data storage systems. 14.304submission, modification, and withdrawal of bids. a bidders', 7767:'are responsible for submitting bids, and any modifications or withdrawals, so as to reach the government officedesignated in the invitation', 7768:'for bidifb bythe time specified inthe ifb. they may use any transmission method authorized by the ifb i.e.,regular mail, electronic', 7769:'commerce, or facsimile. if no time is specified in the ifb, the time for receipt is4:30p.m., local time, for the', 7770:'designatedgovernment office on the date that bids are due. b 1anybid,modification,orwithdrawalofabidreceivedatthegovernmentofficedesignatedintheifbafterthe exact time specified for receipt of bids is late', 7771:'and will not be considered unless it is received before award is made, the contracting officerdeterminesthat accepting the late bid', 7772:'would not unduly delay theacquisition; and i if it was transmitted through an electronic commerce method authorized by the ifb,', 7773:'it was received at the initial point of entry to the government infrastructure not later than 5:00 p.m. oneworking day', 7774:'prior to the date specified for receipt of bids; or ii there is acceptable evidence to establish that it was', 7775:'received at the government installation designated for receipt ofbids and wasunder thegovernment’s control prior to the time set for receipt', 7776:'of bids. 2 however, a late modification of an otherwisesuccessfulbid, that makes its terms more favorable tothe government, will be', 7777:'considered at any time it is received and may be accepted. c acceptable evidence to establish the time of receipt', 7778:'at the government installation includes the time/date stamp of that installation on the bidwrapper, other documentary evidence of receipt maintained', 7779:'by the installation, or oral testimonyor statements of government personnel. federal acquisition regulation d if an emergency orunanticipated event interrupts', 7780:'normal governmentprocesses so that bidscannot be received at the government officedesignated for receiptof bidsby the exacttime specified in theifb, and', 7781:'urgent government requirements preclude amendment of the bid opening date, the time specified for receipt of bids will be deemed', 7782:'to be extended to the same time of day specified in the ifb on the first work day on which', 7783:'normal government processes resume. e bids may be withdrawn by written notice received at any time before the exact time', 7784:'set for receipt of bids. if the ifb authorizes facsimile bids, bids may be withdrawn via facsimile received at any', 7785:'time before the exact time set for receipt of bids, subject to the conditions specified in the provision at 52.21431,', 7786:'facsimile bids. a bid may be withdrawn in person by a bidder or its authorized representative if, before the exact', 7787:'time set for receipt of bids, the identity of the person requesting withdrawal is established and the person signs a', 7788:'receipt for the bid. upon withdrawal of an electronically transmitted bid, the datareceived must not beviewed and, where practicable,must be', 7789:'purged from primaryand backup data storage systems. f the contracting officer mustpromptly notifyanybidder if its bid, modification, orwithdrawal was received', 7790:'late,and must inform the bidder whether its bid will be considered, unless contract award is imminent and the notices prescribed', 7791:'in 14.409 would suffice. g late bids and modifications that are not considered must be held unopened, unless opened for', 7792:'identification, until after award and thenretained with other unsuccessfulbids. however,any bid bond or guarantee must be returned. h if available,', 7793:'the following must be included in the contract files for each late bid, modification, or withdrawal: 1 the date and', 7794:'hour of receipt. 2 a statement, with supporting rationale, regarding whether the bid was considered for award. 3 the envelope,wrapper,', 7795:'or other evidence of the dateof receipt. subpart 14.4 opening of bids and award of contract 14.4023 subpart 14.4 opening', 7796:'of bids and award of contract 14.400scope of subpart. this subpart contains procedures for the receipt, handling, opening, and disposition', 7797:'of bids including mistakes in bids, and subsequent award of contracts. 14.401receipt and safeguarding of bids. a all bids including', 7798:'modifications received before the time set for the opening of bids shall be kept secure. except as provided in paragraph', 7799:'b of this section, the bids shall not be opened or viewed, and shall remain in a locked bid box,', 7800:'a safe, or in a secured, restrictedaccess electronic bid box. if an invitation for bids is cancelled, bids shall be', 7801:'returned to the bidders. necessary precautions shall be taken to ensure the security of the bid box or safe. before', 7802:'bid opening, information concerning the identity and number of bids received shall be made available only to government employees. such', 7803:'disclosure shall beonly ona need to know basis. when bid samples are submitted, theyshallbe handled with sufficient care to prevent', 7804:'disclosure of characteristics before bid opening. b envelopes marked as bids but not identifying the bidder or the solicitation may', 7805:'be opened solely for the purpose of identification, andthen onlyby an official designatedforthis purpose. if a sealed bid isopened by', 7806:'mistake e.g., because it is not marked as being a bid, the envelopeshallbe signed by the opener, whoseposition shall alsobe', 7807:'writtenthereon, and deliveredto the designatedofficial. this official shall immediately write on theenvelope 1anexplanation of the opening, 2 thedate and time', 7808:'opened, and 3 theinvitation for bids number, and shall signthe envelope. the official shall then immediately reseal the envelope. 14.402opening', 7809:'of bids. 14.4021 unclassified bids. a thebid opening officer shall decide when the timeset for opening bids hasarrived and shall', 7810:'inform those presentof that decision. the officer shall then 1 personally and publicly openall bids received before that time, 2if', 7811:'practical, read the bids aloud to the persons present, and 3 have the bids recorded. the original of each bid', 7812:'shall be carefully safeguarded, particularly until the abstract of bids required by 14.403 has been made and its accuracy verified.', 7813:'b performance of the procedure in paragraph a of this section may be delegated to an assistant, but the bid', 7814:'opening officer remainsfully responsible for the actions of theassistant. c examination of bids by interested persons shall be permitted if', 7815:'it does not interfere unduly with the conduct of government business. original bids shall not be allowed topass out of', 7816:'the hands of a government official unless a duplicate bid is not available for public inspection. the original bid may', 7817:'be examined by the public only under the immediate supervision of a government officialand under conditions thatpreclude possibility of a', 7818:'substitution, addition, deletion, or alteration in the bid. 14.4022 classified bids. the general public may not attend bid openings for', 7819:'classified acquisitions. a bidder or its representative may attend and recordthe results if the individual has the appropriate security clearance.', 7820:'the contractingofficer also may make the bids available at a later time to properly cleared individuals who represent bidders. no', 7821:'public record shall be made of bids or bid prices received in response to classified invitations for bids. 14.4023 postponement', 7822:'of openings. a a bid opening may be postponed even after the time scheduled for bid opening but otherwise in', 7823:'accordance with 14.208 when 1 the contractingofficer hasreason to believe that thebids of an important segmentof bidders have been delayedin', 7824:'the mails, or in the communications system specified for transmission of bids, for causes beyond their control and without their', 7825:'fault or negligence e.g., flood, fire, accident, weather conditions, strikes, or government equipment blackout or malfunction when bids are due;', 7826:'or 2 emergencyor unanticipated events interrupt normalgovernmental processes so thatthe conductof bid opening as scheduled is impractical. federal acquisition regulation', 7827:'b at the time of a determination to postpone a bid opening under paragraph a1 of this section, an announcement', 7828:'of the determination shall be publicly posted. if practical before issuance of a formal amendment of the invitation, the determination', 7829:'shall be otherwise communicated to prospective bidders who are likely to attend the scheduled bid opening. c inthe case of', 7830:'paragraph a2of this section, and whenurgent government requirements precludeamendment of the solicitation as prescribed in 14.208, the time specified for', 7831:'opening of bids will be deemed to be extended to the same time of day specified in the solicitation on', 7832:'the first work day on which normal government processes resume. in such cases, the time of actual bid opening shall', 7833:'be deemed to be the time set for bid opening for the purpose of determining late bids under 14.304. a', 7834:'note should be made on the abstract of bids or otherwise added to the file explaining the circumstances of the', 7835:'postponement. 14.403recording of bids. a standard form 1409, abstract of offers, or optional form 1419, abstract of offersconstruction or automated', 7836:'equivalent, shall becompleted and certified as to its accuracy by thebid opening officer as soonafter bid opening as practicable. where', 7837:'bid items are too numerous to warrant complete recording of all bids, abstract entries for individual bids may be limited', 7838:'to item numbers and bid prices. in preparing these forms, the extra columns and sf 1410, abstract ofoffers continuation, and', 7839:'of 1419a, abstract ofofferconstruction, continuationsheet, may be used to label and record such information as the contracting activity deems necessary.', 7840:'b abstracts ofoffers for unclassifiedacquisitions shall beavailableforpublicinspection. such abstracts shall not contain information regarding failure tomeet minimumstandards of responsibility, apparent', 7841:'collusion ofbidders, orothernotations properly exempt from disclosure to the public in accordance with agency regulations implementing subpart 24.2. c theforms', 7842:'identifiedin paragraph a of this section need not be used by the defense energy support centerfor acquisitions of coal or', 7843:'petroleum products or by the defense supply center philadelphia for perishable subsistence items. d if an invitation for bids is', 7844:'canceled before the time set for bid opening, this fact shall be recorded together with a statement of the number', 7845:'of bids invited and the number of bids received. 14.404rejection of bids. 14.4041 cancellation of invitations after opening. a 1', 7846:'preservation of the integrity of the competitive bid system dictates that, after bids have been opened, award must be made', 7847:'to that responsible bidder who submitted the lowest responsive bid, unless there is a compelling reason to reject all bids', 7848:'and cancel the invitation. 2 every effort shall be madeto anticipate changes in arequirementbefore thedate of opening andto notify all', 7849:'prospective bidders of any resulting modification or cancellation. this will permit bidders to change their bids and prevent unnecessary exposure', 7850:'of bid prices. 3 as a general rule, after the opening of bids, an invitation should not be cancelled and', 7851:'resolicited due solely to increased requirements for the items beingacquired. award should be made on the initial invitationforbids and the', 7852:'additional quantity should be treated as a new acquisition. b when it is determined before award but after opening that', 7853:'the requirements of 11.201 relating to the availability and identification of specifications have not been met, the invitation shall be', 7854:'cancelled. c invitations may be cancelled and all bids rejected before award but after opening when, consistent with subparagraph a1', 7855:'of this section, the agency head determines in writing that 1 inadequate or ambiguous specifications were cited in the invitation;', 7856:'2 specifications have been revised; 3 the supplies or services being contracted for are no longer required; 4 the invitation', 7857:'did not provide for consideration of all factors of cost to the government, such as cost of transporting governmentfurnished property', 7858:'to bidders’ plants; 5 bidsreceived indicate that theneeds of the government can besatisfied by aless expensive articlediffering from that for', 7859:'which the bids were invited; 6 all otherwise acceptable bids received are at unreasonable prices, or only one bid is', 7860:'received and the contracting officer cannot determinethe reasonableness ofthe bid price; 7 the bids were not independently arrived at in', 7861:'open competition, were collusive, or were submitted in bad faith see subpart 3.3 for reports to be made to the', 7862:'department of justice; 8 no responsive bid has been received from a responsible bidder; subpart 14.4 opening of bids and', 7863:'award of contract 14.4042 9 a cost comparison as prescribed in omb circulara76 and subpart 7.3 shows that performance by', 7864:'the government is more economical; or 10 for other reasons, cancellation is clearly inthe public’sinterest. d should administrative difficulties be', 7865:'encountered after bid openingthat may delay awardbeyond bidders’ acceptance periods, the several lowest bidders whose bids have not expired irrespective', 7866:'of the acceptance period specified in the bid should be requested, before expiration of their bids, to extend in writing', 7867:'the bid acceptance period with consent of sureties, if any in order to avoid the need for resoliciting. e under', 7868:'some circumstances, completion of the acquisition after cancellation of the invitation for bids may be appropriate. 1 if the invitation', 7869:'for bids has been cancelled for the reasons specified in subparagraphsc6, 7, or 8 of this subsection, and the agency', 7870:'head has authorized, in the determination in paragraph c of this subsection, the completion of the acquisition through negotiation, the', 7871:'contracting officer shall proceedin accordance with paragraph f of this subsection. 2 if the invitation for bids has been cancelled', 7872:'for the reasons specified in subparagraphsc1, 2, 4, 5, or 10 of this subsection, or for the reasons in subparagraphsc6,', 7873:'7, or 8 of this subsection and completion through negotiation is not authorizedunder subparagraphe1 of this subsection, the contracting officer', 7874:'shall proceed witha new acquisition. f when the agency head has determined, in accordance with paragraph e1 of this subsection,', 7875:'that an invitation for bids should be canceled and that useof negotiation is in thegovernment’s interest, the contractingofficer may negotiate', 7876:'in accordance with part 15, as appropriate and make award without issuing a new solicitation provided 1 each responsible bidder', 7877:'in the sealed bid acquisition has been given notice that negotiations will be conducted and has been given an opportunity', 7878:'to participate in negotiations; and 2 the awardis made tothe responsible bidder offering the lowest negotiatedprice. 14.4042 rejection of individual', 7879:'bids. a any bid that fails to conform to the essential requirements of the invitation for bids shall be rejected.', 7880:'b any bid that does not conform to the applicable specifications shall be rejected unless the invitation authorized the submission', 7881:'of alternate bids and the supplies offered as alternates meet the requirements specified in the invitation. c any bid that', 7882:'fails to conform to the delivery schedule or permissible alternates stated in the invitation shall be rejected. d a bid', 7883:'shall be rejected when the bidder imposes conditions that would modify requirements of the invitation or limit thebidder’s liability to', 7884:'thegovernment, since to allowthe bidder to imposesuch conditions would be prejudicial toother bidders. for example, bids shall be rejected in', 7885:'which the bidder 1 protects against future changes in conditions, such as increased costs, if total possible costs to the', 7886:'government cannot be determined; 2 fails to statea priceandindicates that price shall be pricein effect attime ofdelivery; 3 states a', 7887:'pricebut qualifies it as being subject to pricein effect at time ofdelivery; 4 when not authorized by the invitation, conditions', 7888:'or qualifies a bid by stipulating that it is to be considered only if, before date of award, the bidder', 7889:'receives or does not receive award under a separate solicitation; 5 requires that the government is to determinethat thebidder’s product', 7890:'meets applicable government specifications; or 6 limits rights of the government under any contract clause. e a low bidder may', 7891:'be requested to delete objectionable conditions from a bid provided the conditions do not go to the substance, as distinguished', 7892:'from the form, of the bid, or work an injustice on other bidders. a condition goes to the substance of', 7893:'a bid whereitaffects price, quantity, quality, ordelivery of the items offered. f anybid may be rejected if thecontracting officer determines', 7894:'inwriting thatitis unreasonable as to price. unreasonableness of price includes not only the total price of the bid, but the', 7895:'prices for individual line items as well. g any bid may be rejected if the prices for any line items', 7896:'or subline items are materially unbalanced see 15.4041g. h bids received from any person or concern that is suspended, debarred,', 7897:'proposed for debarment or declared ineligible as of the bid opening date shall be rejected unless a compelling reason determination', 7898:'is made see subpart 9.4. i low bids received from concerns determined to be not responsible pursuant to subpart 9.1', 7899:'shall be rejected but if a bidder is a small business concern, see19.6 with respect to certificates of competency. j', 7900:'when a bid guarantee is required and a bidder fails to furnish the guarantee in accordance with the requirements of', 7901:'the invitation for bids, the bid shall be rejected, except as otherwise provided in 28.1014. k the originals of all', 7902:'rejected bids, and any written findings with respect to such rejections, shall be preserved with the papers relating to the', 7903:'acquisition. 14.4043 federal acquisition regulation lafter submitting a bid, ifall of a bidder’s assets or thatpart related tothe bid are', 7904:'transferred during the periodbetween thebid opening and theaward, the transferee may notbe able to take over the bid. accordingly, the', 7905:'contracting officer shall rejectthe bid unless the transfer is effectedby merger, operationof law, orother means not barred by 41 u.s.c.6305', 7906:'or 31 u.s.c. 3727. 14.4043notice to bidders ofrejection of all bids. when it is determined necessary to reject all bids,', 7907:'the contracting officer shall notify each bidder that all bids have been rejected and shall state the reason for such', 7908:'action. 14.4044restrictions ondisclosure of descriptive literature. when a bid is accompanied by descriptive literature as defined in 2.101, and the', 7909:'bidder imposes a restriction that prevents the public disclosure of such literature, the restriction may render the bid nonresponsive. the', 7910:'restriction renders the bid nonresponsive if it prohibits the disclosure of sufficient information to permit competingbiddersto know the essential nature', 7911:'and type of the productsoffered orthose elements of thebid that relate to quantity,price,and delivery terms. the provisions of this paragraph', 7912:'do not apply to unsolicited descriptive literature submitted by a bidder if such literature does not qualify the bid see', 7913:'14.2025e. 14.4045 all or none qualifications. unless the solicitation provides otherwise, a bid may be responsive notwithstanding that the bidder', 7914:'specifies that award will be accepted only on all, or a specified group, of the items. bidders shall not be', 7915:'permitted to withdraw or modify all or none qualifications after bid opening since such qualificationsare substantive and affect therights of', 7916:'other bidders. 14.405 minorinformalitiesor irregularities in bids. a minor informality or irregularity is one that is merely a matter of', 7917:'form and not of substance. it also pertains to some immaterial defect in a bid or variation of a bid', 7918:'from the exact requirements of the invitation that can be corrected or waived without being prejudicial to other bidders. the', 7919:'defector variation is immaterial when the effect onprice,quantity, quality, or delivery is negligible when contrasted with the total cost or', 7920:'scope of the supplies or services being acquired. the contracting officer eithershallgive the bidder an opportunity to cure any deficiency', 7921:'resulting from aminor informalityor irregularity in a bid or waivethe deficiency, whicheveris to the advantage of the government. examples of', 7922:'minor informalities or irregularities include failure of a bidder to a return the number of copies of signed bids required', 7923:'by the invitation; b furnish required information concerning the number of its employees; c sign its bid, but only if', 7924:'1 the unsigned bid isaccompanied byothermaterial indicatingthe bidder’s intention tobe bound by the unsigned bid such asthe submission of a', 7925:'bid guarantee ora letter signed by the bidder, with the bid, referring to and clearly identifying the bid itself; or', 7926:'2 the firm submitting a bid has formally adopted or authorized, before the date set for opening of bids, the', 7927:'execution of documents by typewritten, printed, or stamped signature and submits evidence of such authorization and the bid carries such', 7928:'a signature; d acknowledge receipt of an amendment to an invitation for bids, but only if 1 the bid received', 7929:'clearly indicates that the bidder received the amendment, such as where the amendment added another item to the invitation and', 7930:'the bidder submitted a bid on the item; or 2 the amendmentinvolvesonly a matterof formor haseither no effect or merely', 7931:'anegligible effect on price, quantity, quality, or deliveryof the item bid upon; and e execute the representations with respect to', 7932:'equal opportunity and affirmative action programs, as set forth in the clauses at 52.22222, previous contracts and compliance reports, and', 7933:'52.22225, affirmative actioncompliance. 14.406 receipt of an unreadable electronic bid. if a bid received at the government facility by electronic', 7934:'data interchange is unreadable to the degree that conformance to theessential requirements ofthe invitation for bidscannot be ascertained, the contracting', 7935:'officerimmediately shall notify the bidder that the bid will be rejected unless the bidder provides clear and convincing evidence a', 7936:'of the content of the bid as originally submitted; and subpart 14.4 opening of bids and award of contract 14.4073', 7937:'b that the unreadable condition ofthe bid wascaused by government software or hardwareerror, malfunction,or other government mishandling. 14.407mistakes in bids.', 7938:'14.4071 general. afterthe opening ofbids, contracting officers shall examineallbids for mistakes. in cases of apparent mistakesandin caseswhere the contractingofficer hasreason', 7939:'to believe that a mistake mayhavebeenmade, the contracting officer shall request from the bidder a verification of the bid, calling', 7940:'attention to the suspected mistake. if the bidder alleges a mistake, the matter shall be processed in accordance with this', 7941:'section 14.407. such actions shall be taken before award. 14.4072apparent clerical mistakes. a any clerical mistake, apparent on its face', 7942:'inthe bid, may be corrected by the contracting officer before award. the contracting officerfirst shall obtain from thebidder a verification', 7943:'ofthe bid intended. examples of apparent mistakesare 1 obvious misplacement of a decimal point; 2 obviously incorrect discounts for example,', 7944:'1 percent 10 days, 2 percent 20 days, 5 percent 30 days; 3 obvious reversal of the price f.o.b. destination', 7945:'and price f.o.b. origin; and 4 obvious mistake in designation of unit. b correction of the bid shall be effectedby', 7946:'attachingthe verificationto theoriginal bidand a copy of the verification to theduplicate bid. correction shall notbe made on the face of', 7947:'the bid; however, it shall be reflectedin theaward document. c correction of bids submitted by electronic data interchange shall be', 7948:'effected byincluding inthe electronic solicitation file the original bid, the verification request, and the bid verification. 14.4073other mistakes disclosed before', 7949:'award. in order to minimize delays in contract awards, administrative determinations may be made as described in this 14.4073 in', 7950:'connection with mistakes in bids alleged after opening of bids and before award. the authority to permit correction of bids', 7951:'is limited to bids that, as submitted, are responsive to the invitation and may not be used to permit correction', 7952:'of bids to make them responsive. this authority is in addition to that in 14.4072 or that may be otherwise', 7953:'available. a if a bidder requests permission to correct a mistake and clear and convincing evidence establishes both the existence', 7954:'of the mistake and the bid actually intended, the agency head may make a determination permitting the bidder to correct', 7955:'the mistake; provided, that if this correction would result in displacing one or more lower bids, such a determination shall', 7956:'not be made unless the existence of the mistake and the bid actually intended are ascertainable substantially from the invitation', 7957:'and the bid itself. b if 1 a bidder requests permission to withdraw a bid rather than correct it; 2', 7958:'the evidence is clear and convincing both as to the existence of a mistake and as to the bid actually', 7959:'intended; and 3 the bid, both as uncorrected and as corrected, is the lowest received, the agency head may make', 7960:'a determination to correct the bid and not permit its withdrawal. c if, under paragraph a or b of this', 7961:'subsection, 1 the evidence of a mistake is clear and convincing only as to the mistake but not as to', 7962:'the intended bid, or 2 the evidence reasonably supports the existence of a mistake but is not clear and convincing,', 7963:'an official abovethe contracting officer, unless otherwise provided byagency procedures, may make a determination permitting the bidder to withdraw the', 7964:'bid. d if the evidence does not warrant a determination under paragraph a, b, or c of this section, the', 7965:'agency head may make a determination that the bid be neither withdrawn nor corrected. e heads of agencies may delegate', 7966:'their authority to make the determinations under paragraphs a, b, c, and d of this 14.4073 to a central authority,', 7967:'ora limited number of authorities asnecessary,in their agencies,without power of redelegation. f each proposed determination shall have the concurrence of', 7968:'legal counsel within the agency concerned before issuance. g suspectedor alleged mistakes inbids shall beprocessed as follows. a merestatement by', 7969:'the administrative officials that they are satisfied that an error was madeis insufficient. 1 the contractingofficer shall immediatelyrequest the bidder', 7970:'to verify thebid. action taken to verify bids must be sufficient to reasonably assure the contractingofficer that the bid as', 7971:'confirmed iswithout error, or to elicit the allegation of 14.4074 federal acquisition regulation a mistakeby the bidder. toassurethat thebidder will', 7972:'be put on notice of a mistake suspectedby the contractingofficer, the bidder should be advised as appropriate ithat its bidis', 7973:'so muchlower than the otherbids orthe government’s estimate as to indicatea possibility of error; ii of important or unusual characteristics', 7974:'of the specifications; iii of changes in requirements from previous purchases of a similar item; or iv of any other', 7975:'information, proper for disclosure, that leadsthe contracting officerto believe that there is a mistake in bid. 2 if the bid', 7976:'isverified, thecontracting officer shall consider the bidas originally submitted. ifthe time for acceptance of bids is likely to expire beforea', 7977:'decisioncan be made, the contracting officer shall request all bidders whose bids may become eligible for award to extend the', 7978:'time for acceptance of their bids in accordance with 14.4041d. if the bidder whose bid is believed erroneous does not', 7979:'or cannot grant an extension of time, the bid shall be considered as originally submitted but see paragraph g5 of', 7980:'this section. if the bidder alleges amistake, thecontracting officer shall advisethe bidderto make a written request to withdraw or modify', 7981:'the bid. the request must be supported by statements sworn statements, if possibleand shall includeall pertinent evidence such as the', 7982:'bidder’s file copyof the bid, the originalworksheets and other dataused inpreparingthe bid, subcontractors’ quotations, ifany, published price lists, and any', 7983:'other evidence that establishes theexistence of the error, the manner inwhich it occurred, and the bidactually intended. 3 when the', 7984:'bidder furnishes evidencesupporting an alleged mistake, the contractingofficer shall referthe case to the appropriate authority see paragraph e of this', 7985:'section together with the following data: i a signed copy of the bid involved. ii a copy of the invitation', 7986:'for bids and any specifications or drawings relevant to the alleged mistake. iii an abstract or record of the bids', 7987:'received. iv the written request by the bidderto withdraw or modify thebid, together with thebidder’s written statement and supporting evidence.', 7988:'v a written statement bythe contracting officer setting forth a a description of the supplies or services involved; b the', 7989:'expiration date of the bid in question and of the other bids submitted; c specific information as to how and', 7990:'when the mistake was alleged; d a summary of the evidence submitted by the bidder; e in the event only', 7991:'one bid was received, a quotation of the most recent contract price for the supplies or services involved or, inthe', 7992:'absence ofa recent comparablecontract, the contracting officer’s estimate of a fair price for the supplies or services; f any additional', 7993:'pertinent evidence; and g a recommendation that either the bid be considered for award in the form submitted, or the', 7994:'bidder be authorized to withdraw or modify the bid. 4 where the bidder fails or refuses to furnish evidence in', 7995:'support of a suspected or alleged mistake, the contracting officer shall consider the bid as submitted unless i the amount', 7996:'of thebid is so far outof line with the amounts of other bids received,or with the amount estimated bythe agency', 7997:'or determined by the contracting officer to be reasonable, or iithere areother indicationsof error so clear, as to reasonablyjustify theconclusion', 7998:'that acceptance of the bid wouldbe unfairto the bidder or to other bona fide bidders. attempts made to obtain the', 7999:'information required and the action taken with respect to the bid shall be fully documented. h each agency shall maintain', 8000:'records of all determinations made in accordance with this subsection 14.4073, the facts involved, and the action taken in each', 8001:'case. copies of all such determinations shall be included in the file. i nothing contained in this subsection 14.4073 prevents', 8002:'an agency from submitting doubtful cases to the comptroller general for advance decision. 14.4074 mistakes after award. if a contractor’s', 8003:'discovery and request for correction ofa mistake inbid is not made until after theaward, it shall be processed under the', 8004:'procedures of subpart 33.2 and the following: a when a mistake in a contractor’s bid is notdiscovered until after award,', 8005:'the mistake may becorrected by contract modification if correcting the mistake would be favorable to the government without changing the', 8006:'essential requirements of the specifications. b in addition tothe casescontemplated in paragraph a ofthissection or asotherwise authorized by law, agencies', 8007:'are authorized to make a determination subpart 14.4 opening of bids and award of contract 14.4074 1 to rescind a', 8008:'contract; 2 to reform a contract ito deletethe items involved in the mistake; or iito increasethe price if the contract', 8009:'price, as corrected, does not exceed that of thenext lowest acceptable bid under the original invitation for bids; or 3', 8010:'that no change shall be made in the contract as awarded, if the evidence does not warrant a determination under', 8011:'subparagraph b1 or 2 of this section. c determinations under paragraph b1 and 2 of this section may be made', 8012:'only on the basis of clear and convincing evidence that a mistake in bid was made. in addition, it must', 8013:'be clear that the mistake was 1 mutual; or 2 if unilaterally made by the contractor, soapparent as to have', 8014:'chargedthe contracting officerwith noticeof the probability of the mistake. d each proposed determination shall be coordinated with legal counsel in', 8015:'accordance with agency procedures. e mistakes alleged or disclosed after award shall be processed as follows: 1 the contractingofficer shall', 8016:'request thecontractor to support thealleged mistake bysubmission of written statements and pertinent evidence, such as ithe contractor’s file copy of', 8017:'the bid, iithe contractor’s originalworksheets and other data used inpreparing the bid, iii subcontractors’ and suppliers’ quotations, if any, iv', 8018:'published price lists, and v any other evidence that will serve to establish the mistake, the manner in which the', 8019:'mistake occurred, and the bid actually intended. 2 the case file concerning an alleged mistake shall contain the following: i', 8020:'all evidence furnished by the contractor in support of the alleged mistake. iiasigned statementby the contracting officer a describing the', 8021:'supplies or services involved; b specifying how and when the mistake was alleged or disclosed; c summarizing the evidence submitted', 8022:'by the contractor and any additional evidence considered pertinent; d quoting, in cases where only one bid was received, the', 8023:'most recent contract price for the supplies or services involved, or in theabsence of a recent comparable contract,the contracting officer’s', 8024:'estimate of a fairprice for the supplies or services and the basis for the estimate; e setting forth the contracting', 8025:'officer’s opinionwhethera bona fide mistake was made andwhetherthe contracting officerwas, or should have been, on constructivenotice of themistake before the', 8026:'award, together with the reasons for, or data in support of, such opinion; f setting forth the course of action', 8027:'with respectto the alleged mistake that thecontracting officer considers proper on the basis of the evidence, and if other than', 8028:'a change in contract price is recommended, the manner by which the supplies or services will otherwise be acquired; and', 8029:'g disclosing the status of performance and payments under the contract, including contemplated performance and payments. iii a signed copy', 8030:'of the bid involved. iv a copy of the invitation for bids and any specifications or drawings relevant to the', 8031:'alleged mistake. v an abstract of written record of the bids received. vi a written request by the contractor to', 8032:'reform or rescind the contract, and copies of all other relevant correspondence betweenthe contracting officerandthe contractor concerning thealleged mistake. vii', 8033:'a copy of the contract and any related change orders or supplemental agreements. f each agency shall include in the', 8034:'contract file a record of 1 all determinations made in accordance with this 14.4074; 2 the facts involved; and 3', 8035:'the action taken in each case. federal acquisition regulation 14.408 award. 14.4081 general. a thecontracting officer shall make a contract', 8036:'award 1 by written or electronic notice, 2 within the timefor acceptance specified in the bid or an extension see', 8037:'14.4041d, and 3 to that responsible bidder whose bid, conforming to the invitation, will be most advantageous to the government,', 8038:'considering only price and the pricerelated factors see 14.2018 included in the invitation. award shall not be made untilallrequired approvals', 8039:'have been obtained and the award otherwise conforms with 14.1032. b if less than three bids have been received,the contracting', 8040:'officershallexamine the situation to ascertain the reasons for thesmall number of responses. awardshallbe made notwithstandingthe limitednumber of bids. however, thecontracting', 8041:'officer shall initiate, ifappropriate, corrective action toincrease competition in futuresolicitationsforthe same or similar items, and include a notation of such', 8042:'action in the records of the invitation for bids see 14.204. c 1awardshallbemadebymailingorotherwisefurnishingaproperlyexecutedawarddocumenttothesuccessful bidder. 2 when a notice of award', 8043:'is issued, it shall be followed as soon as possible by the formal award. 3 when more than one award', 8044:'results from any single invitation for bids, separate award documents shall be suitably numbered and executed. 4 when an award', 8045:'is made to a bidder for less than all of the items that may be awarded to that bidder and', 8046:'additional items are being withheld for subsequent award, the award shall state that the government may make subsequent awards on', 8047:'those additional items within the bid acceptance period. 5 all provisions of the invitation for bids, including any acceptable additions', 8048:'or changes made by a bidder in the bid, shall be clearly and accurately set forth either expressly or by', 8049:'reference in the award document. the award is an acceptance of the bid, and the bid and the award constitute', 8050:'the contract. d 1awardisgenerallymadebyusingtheawardportionof standard form sf 33,solicitation,offer,andaward,or sf 1447, solicitation/contract see 53.214. if an offer from a sf 33', 8051:'leads to further changes, the resulting contract shall be prepared as a bilateral document on sf 26, award/contract. 2 use', 8052:'of the award portionof sf 33, sf 26, or sf 1447, does not preclude the additional use of informal documents,', 8053:'including electronic transmissions, as notices of awards. 14.4082responsible bidderreasonableness of price. athecontractingofficershalldeterminethataprospectivecontractorisresponsiblesee subpart 9.1 and that the prices offered are', 8054:'reasonable beforeawarding the contract. theprice analysis techniquesin 15.4041b may be used as guidelines. in each case the determination shall be', 8055:'made in the light of all prevailing circumstances. particular care must be taken in cases where only a single bid', 8056:'is received. b the price analysis shall consider whether bids are materially unbalanced see 15.4041g. 14.4083prompt payment discounts. a prompt', 8057:'payment discounts shall notbe consideredin theevaluation of bids. however, anydiscountoffered willform a part of the award, and will be taken', 8058:'by the payment center if payment is made within the discount period specified by thebidder. as an alternative to indicating', 8059:'a discount in conjunction withthe offer, bidders may prefer to offer discountson individual invoices. b see 32.111b1, which prescribes the', 8060:'contract clause at 52.2328, discounts for prompt payment. 14.4084 economic price adjustment. a bidder proposes economic price adjustment. 1 when', 8061:'a solicitation does not contain an economic price adjustment clause but a bidder proposes one with a ceiling that the', 8062:'price will not exceed, the bid shall be evaluated on the basis of the maximum possible economic price adjustment of', 8063:'the quoted base price. 2 if the bid iseligible for award, the contracting officer shall request thebidder to agree to', 8064:'the inclusion inthe award of an approved economic price adjustment clause see 16.203 that is subject to the same ceiling.', 8065:'if the bidder will not agree to an approved clause, the award may be made on the basis of the', 8066:'bid as originally submitted. 3 bids that contain economic price adjustments with no ceiling shall be rejected unless a clear', 8067:'basis for evaluation exists. subpart 14.4 opening of bids and award of contract 14.4091 b government proposes economic price adjustment.', 8068:'1 when an invitation contains an economic price adjustment clause and no bidder takes exception to the provisions, bids shall', 8069:'be evaluated on the basis of the quoted prices without the allowable economic price adjustment being added. 2 when a', 8070:'bidder increases the maximum percentage of economic price adjustment stipulated in the invitation or limits the downward economic price adjustment', 8071:'provisions of the invitation, the bid shall be rejected as nonresponsive. 3 when a bid indicates deletion of the economic', 8072:'price adjustment clause, the bid shall be rejected as nonresponsive since the downward economic price adjustment provisions are thereby limited.', 8073:'4 when a bidder decreases the maximum percentage of economic price adjustment stipulated in the invitation, the bid shall be', 8074:'evaluated at the baseprice on an equal basis withbids that do not reduce the stipulated ceiling. however, after evaluation, if', 8075:'thebidder offering the lower ceiling is in aposition to receive the award, the award shall reflect the lower ceiling. 14.4085', 8076:'[reserved] 14.4086 equal low bids. a contracts shall be awarded in the following order of priority when two or more', 8077:'low bids are equal in all respects: 1 small business concerns that are also labor surplus area concerns. 2 other', 8078:'small business concerns. 3 other business concerns. b if two or more bidders still remain equally eligible after application of', 8079:'paragraph a of this section, award shall be made by a drawing by lot limited to those bidders. if time', 8080:'permits, the bidders involved shall be given an opportunity to attend the drawing. the drawing shall be witnessed by at', 8081:'least three persons, and the contract file shall contain the names and addresses of the witnesses and the person supervising', 8082:'the drawing. c when an award is to be made by using the priorities under this 14.4086, the contracting officer', 8083:'shall include a written agreement in the contract that the contractor will perform, or cause to be performed, the contract', 8084:'in accordance with the circumstances justifying the priority used to break the tie or select bids for a drawing by', 8085:'lot. 14.4087 documentation of award. a thecontracting officer shall document compliancewith 14.1032 in the contract file. b the documentation shall', 8086:'either state that the accepted bid was the lowest bid received, or list all lower bids with reasons for their', 8087:'rejection insufficient detail to justify the award. c when an award is made after receipt of equal low bids, the', 8088:'documentation shall describe how the tie was broken. 14.4088protestsagainst award. see subpart 33.1, protests. 14.409information to bidders. 14.4091award of unclassified', 8089:'contracts. a 1thecontractingofficershallasaminimumsubjecttoanyrestrictionsin subpart 9.4 i notify each unsuccessful bidder in writing or electronically within threedays after contract award, that', 8090:'its bid was not accepted. day, for purposes of the notification process, means calendar day,exceptthat theperiod will run until aday', 8091:'which is not a saturday, sunday, orlegal holiday; ii extend appreciation for the interest the unsuccessful bidder has shown in', 8092:'submitting a bid; and iii when awardis made tootherthan a low bidder, statethe reason for rejection in the notice to', 8093:'each of the unsuccessful low bidders. 2 for acquisitions coveredby the world trade organization government procurement agreement or a free', 8094:'trade agreement see 25.408a5, agencies must include in notices given unsuccessful bidders from world trade organization government procurement agreement or', 8095:'free trade agreement countries i the dollar amount of the successful bid; and iithe name and addressof the successful bidder.', 8096:'b information included in paragraph a2 of this subsection shall be provided to any unsuccessful bidder upon request except when', 8097:'multiple awards have been made and furnishing information on the successful bids would require so much work 14.4092 federal acquisition', 8098:'regulation as to interferewith normal operations of the contracting office. in such circumstances, only informationconcerning location of the abstract of', 8099:'offers need be given. c when a request is received concerning an unclassified invitation from an inquirer who is neither', 8100:'a bidder nor a representative of a bidder, the contractingofficer should make everyeffort to furnish the names of successful bidders', 8101:'and, if requested, the prices at which awards were made. however, when suchrequests require so muchworkas to interfere with the', 8102:'normal operations of the contracting office, the inquirerwill be advised where a copy of the abstractof offers maybe seen. d', 8103:'requests for records shall be governed by agency regulations implementing subpart 24.2. 14.4092award of classified contracts. in addition to 14.4091,', 8104:'if classified information was furnished or created in connection with the solicitation, the contracting officershalladvise theunsuccessful bidders, including any who', 8105:'did not bid, totake disposition action in accordance with agency procedures. the name of the successful bidder and the contract', 8106:'price will be furnished to unsuccessful bidders only upon request. information regarding a classified award shall not be furnished by', 8107:'telephone. subpart 14.5 twostep sealed bidding 14.5031 subpart 14.5 twostep sealed bidding 14.501general. twostep sealed bidding is a combination of', 8108:'competitive procedures designed to obtain the benefits of sealed bidding when adequate specifications are not available. anobjective is to permit', 8109:'the development of a sufficiently descriptive and not undulyrestrictive statement of thegovernment’s requirements, including an adequate technical data package,sothat subsequent', 8110:'acquisitions may be made by conventional sealed bidding. this method is especially useful in acquisitions requiring technical proposals, particularly those', 8111:'for complex items. it is conducted in two steps: a step one consists of therequest for, submission, evaluation, and ifnecessary', 8112:'discussionof atechnical proposal. no pricing is involved. the objective is to determine the acceptability of thesupplies orservices offered. as used', 8113:'inthis context, the word technical has a broad connotation and includes, among other things, the engineering approach, special manufacturing processes,', 8114:'and special testing techniques. it is the proper step for clarification of questions relating to technical requirements. conformity to the', 8115:'technical requirements is resolved in this step, but not responsibility as defined in 9.1. b step two involves the submission', 8116:'of sealed priced bids by those who submitted acceptable technical proposals in step one. bids submitted in step two are', 8117:'evaluated and the awards made in accordance with subparts 14.3 and 14.4. 14.502conditions for use. a unless other factors require', 8118:'the use of sealed bidding, twostep sealed bidding may be used in preference to negotiation when all of the following', 8119:'conditions are present: 1 available specifications or purchase descriptions are notdefiniteor completeor may be too restrictive without technical evaluation, and', 8120:'any necessary discussion, of the technical aspects of the requirement to ensure mutual understanding between each source and the government.', 8121:'2 definite criteria exist for evaluating technical proposals 3 more than one technically qualified source is expected to be available.', 8122:'4 sufficient time willbe available for use of the twostep method. 5 a firmfixedprice contract or a fixedprice contract with', 8123:'economic price adjustment will be used. b none of the following precludes the use of twostep sealed bidding: 1 multiyear', 8124:'contracting. 2 government property to be made available to the successful bidder. 3 a total small business setaside see 19.5022.', 8125:'4 the use of a setaside or price evaluation preference for hubzone small business concerns see subpart 19.13. 5 the', 8126:'use of a setaside for servicedisabled veteranowned small business concerns see subpart 19.14. 6 the use of a setaside for', 8127:'economically disadvantaged womenowned small business concerns and womenowned small business concerns eligible under the womenowned small business program see subpart', 8128:'19.15. 7 a first or subsequent production quantity is being acquired under a performance specification. 14.503 procedures. 14.5031 step one.', 8129:'a requests for technical proposals shall be synopsized in accordance with part 5. the request must include, as a minimum,', 8130:'the following: 1 a description of the supplies or services required. 2 a statement of intent to use the twostep', 8131:'method. 3 the requirements of the technical proposal. 4 the evaluation criteria, to include all factors and any significant subfactors.', 8132:'5 a statement that the technical proposals shall not include prices or pricing information. 6 the date,or date and hour,', 8133:'bywhich the proposal must be received see 14.2016r. 7 a statement that i in the second step, only bids based', 8134:'upon technical proposals determined to be acceptable, either initially or as a result of discussions, will be considered for awards,', 8135:'and iieach bid inthe second step must be based on the bidder’sown technical proposals. 8 a statement that iofferors should', 8136:'submitproposalsthat areacceptable without additional explanationor information, 14.5032 federal acquisition regulation iithe government may make a final determination regarding a proposal’s', 8137:'acceptability solely on the basis of the proposal as submitted; and iii the government may proceedwith the second step without', 8138:'requesting further information from any offeror; however, the government may request additional information fromofferorsof proposals that it considers reasonably susceptible', 8139:'of being made acceptable,and may discuss proposals with theirofferors. 9 a statement that a notice ofunacceptability will be forwarded to', 8140:'theofferor uponcompletion of the proposal evaluationand final determination of unacceptability. 10 a statement either that only one technical proposal may', 8141:'besubmitted by each offeror or thatmultiple technical proposals may be submitted. when specifications permit different technical approaches, it is generally', 8142:'inthe government’s interest to authorize multiple proposals. if multiple proposals are authorized, see 14.2016s. b information on delivery or performance', 8143:'requirements may be of assistance to bidders in determining whether or not to submit a proposal and may be included', 8144:'in the request. the request shall also indicate that the information is not binding on the government and that the', 8145:'actual delivery or performance requirements will be contained in the invitation issued under step two. c upon receipt, the contracting', 8146:'officer shall 1 safeguard proposals against disclosure to unauthorized persons; 2 accept and handle data marked in accordance with 15.609', 8147:'as provided in that section; and 3 remove any reference to price or cost. d the contractingofficer shall establish atime', 8148:'period for evaluating technical proposals. theperiod may vary with the complexity andnumber of proposals involved. however, the evaluation should be', 8149:'completed quickly. e 1 evaluations shall be based on the criteria in the request for proposals but not consideration of', 8150:'responsibility as defined in 9.1, proposals, shall be categorized as i acceptable; ii reasonably susceptible of being made acceptable; or', 8151:'iii unacceptable. 2 any proposal which modifies, or fails to conform to the essential requirements or specifications of, the request', 8152:'for technical proposals shall be considered nonresponsive and categorized as unacceptable. f 1thecontractingofficermayproceeddirectlywithsteptwoiftherearesufficientacceptableproposalstoensure adequate price competition under step two, and', 8153:'if further time, effort and delay to make additional proposals acceptableand therebyincrease competition wouldnot be in the government’s interest. if', 8154:'this is notthe case, the contractingofficer shall request bidders whose proposals may be made acceptable to submit additional clarifying or', 8155:'supplementing information. the contractingoffice shall identify the nature of the deficiencies inthe proposal or thenature ofthe additional information required. the', 8156:'contracting officer may also arrange discussionsforthis purpose. no proposal shall be discussed with any offeror otherthan the submitter. 2 in', 8157:'initiatingrequests for additional information, the contracting officershallfix an appropriate time for bidders to conclude discussions,if any, submit all additional information,and', 8158:'incorporatesuch additional information as part of their proposals submitted. suchtime may be extended in the discretion ofthe contracting officer. if', 8159:'theadditional information incorporated as part of a proposal within the final time fixed by the contracting officer establishes that the', 8160:'proposal is acceptable, it shall be so categorized. otherwise, it shall be categorized as unacceptable. g when atechnicalproposal isfound unacceptable', 8161:'either initiallyor after clarification, the contracting officer shall promptly notify theofferor of the basis of the determination and that a', 8162:'revisionof the proposal will not be considered. upon written request, the contractingofficer shall debrief unsuccessfulofferorssee 15.505 and 15.506. h late', 8163:'technical proposals are governed by 15.208b, c, and f. iif it is necessaryto discontinue twostep sealed bidding, the contracting officer', 8164:'shall include a statementof the facts and circumstances in the contract file. each offerorshallbe notified in writing. when step one', 8165:'results in no acceptable technical proposal or only one acceptable technical proposal, the acquisition may be continued by negotiation. 14.5032', 8166:'step two. a sealed bidding procedures shall be followed except that invitations for bids shall 1 be issued only to', 8167:'those offerors submitting acceptable technical proposals in step one; 2 include the provision prescribed in 14.2016t; 3 prominentlystate that the', 8168:'biddershallcomply with the specifications and the bidder’s technical proposal;and subpart 14.5 twostep sealed bidding 14.5032 4 not be synopsized through', 8169:'the governmentwide point of entry gpe as an acquisition opportunity nor publicly posted see 5.101a. b the names of firms', 8170:'that submitted acceptable proposals in step one will be listed through the gpe for the benefit of prospective subcontractors see', 8171:'5.207. this page intentionally left blank. 14.54 part 15 contracting by negotiation sec. 15.000 scope of part. 15.001 definitions. 15.002', 8172:'types of negotiated acquisition. subpart15.1 source selection processes and techniques 15.100 scope of subpart. 15.101 best value continuum. 15.1011 tradeoff', 8173:'process. 15.1012 lowest price technically acceptable source selection process. 15.1013 tiered evaluation of small business offers. 15.102 oral presentations. subpart', 8174:'15.2 solicitation and receipt of proposals and information 15.200 scope of subpart. 15.201 exchanges with industry before receipt of proposals.', 8175:'15.202 advisory multistep process. 15.203 requests for proposals. 15.204 contract format. 15.2041 uniform contract format. 15.2042 part ithe schedule. 15.2043', 8176:'part iicontract clauses. 15.2044 part iiilist of documents, exhibits, and other attachments. 15.2045 part ivrepresentations and instructions. 15.205 issuing solicitations.', 8177:'15.206 amending the solicitation. 15.207 handling proposals and information. 15.208 submission, modification, revision, and withdrawal of proposals. 15.209 solicitation provisions', 8178:'and contract clauses. 15.210 forms. subpart15.3 source selection 15.300 scope of subpart. 15.301 [reserved] 15.302 source selection objective. 15.303 responsibilities.', 8179:'15.304 evaluation factors and significant subfactors. 15.305 proposal evaluation. 15.306 exchangeswithofferorsafterreceiptof proposals. 15.307 proposal revisions. 15.308 source selection decision. subpart', 8180:'15.4 contract pricing 15.400 scope of subpart. 15.401 definitions. 15.402 pricing policy. 15.403 15.4031 15.4032 15.4033 15.4034 15.4035 15.404 15.4041', 8181:'15.4042 15.4043 15.4044 15.405 15.406 15.4061 15.4062 15.4063 15.407 15.4071 15.4072 15.4073 15.4074 15.4075 15.408 15.501 15.502 15.503 15.504 15.505', 8182:'15.506 15.507 15.508 15.509 obtaining certified cost or pricing data. prohibition on obtaining certified cost or pricing data 10 u.s.c.', 8183:'chapter 271 and 41 u.s.c. chapter 35. other circumstances where certified cost or pricing data are not required. requiring data', 8184:'other than certified cost or pricing data. requiring certified cost or pricing data 10 u.s.c. chapter 271 and 41 u.s.c.', 8185:'chapter 35. instructions for submission of certified cost or pricing data and data other than certified cost or pricing data.', 8186:'proposal analysis. proposal analysis techniques. data to support proposal analysis. subcontract pricing considerations. profit. price negotiation. documentation. prenegotiation objectives. certificate', 8187:'of current cost or pricing data. documenting the negotiation. special cost or pricing areas. defective certified cost or pricing data.', 8188:'makeorbuy programs. forward pricing rate agreements. shouldcost review. estimating systems. solicitation provisions and contract clauses. subpart15.5 preaward, award, and postaward', 8189:'notifications, protests, and mistakes definition. applicability. notificationsto unsuccessful offerors. award tosuccessfulofferor. preaward debriefing ofofferors. postaward debriefing of offerors. protests against', 8190:'award. discovery of mistakes. forms. subpart 15.6 unsolicited proposals 15.600 scope of subpart. 15.601 definitions. 15.602 policy. 15.603 general. 15.604', 8191:'agency points of contact. 15.605 content of unsolicited proposals. 15.606 agency procedures. 15.6061 receipt and initial review. 15.6062 evaluation. 15.607', 8192:'criteria for acceptance and negotiation of an unsolicited proposal. 15.608 prohibitions. 15.609 limited use of data. 152 subpart 15.1 source', 8193:'selection processes and techniques 15.1012 15.000scope of part. this part prescribes policies and procedures governing competitive and noncompetitive negotiated acquisitions.', 8194:'a contract awarded using other than sealed bidding procedures is a negotiated contract see 14.101. 15.001definitions. as used in this', 8195:'part deficiency is a material failure of a proposal to meet a government requirement or a combination of significant weaknesses', 8196:'in a proposal that increases the risk of unsuccessful contract performance to an unacceptable level. proposal modification is a change', 8197:'made to a proposal before the solicitation closing date and time, or made in response to an amendment, or made', 8198:'to correct a mistake at any time before award. proposal revision is a change to a proposal made after the', 8199:'solicitation closing date, at the request of or as allowed by a contracting officer, as the result of negotiations. weakness', 8200:'means a flaw in the proposal that increases the risk of unsuccessful contract performance. a significant weakness in the proposal', 8201:'is a flaw that appreciably increases the risk of unsuccessful contract performance. 15.002 typesof negotiated acquisition. a sole source acquisitions.', 8202:'when contracting in a sole source environment, the request for proposals rfp should be tailored to remove unnecessary information and', 8203:'requirements; e.g., evaluation criteria and voluminous proposal preparation instructions. b competitive acquisitions. when contracting in a competitive environment, the procedures', 8204:'of this part are intended to minimize the complexity of the solicitation, the evaluation, and the source selection decision, while', 8205:'maintaining a process designed tofoster an impartialandcomprehensive evaluation of offerors’ proposals, leading to selection of theproposal representing the best value', 8206:'to the government see 2.101. subpart 15.1 source selection processes and techniques 15.100scope of subpart. this subpart describes some of', 8207:'the acquisition processes and techniques that may be used to design competitive acquisition strategies suitable for the specific circumstances of', 8208:'the acquisition. 15.101best value continuum. an agency can obtain best value in negotiated acquisitions by using any one or a', 8209:'combination of source selection approaches. indifferent types of acquisitions,the relative importanceof cost or price may vary. for example, in acquisitions', 8210:'where the requirement is clearly definable and the risk of unsuccessful contract performance is minimal, cost or price may play', 8211:'a dominant role in source selection. the less definitive the requirement, the more development work required, or the greater the', 8212:'performance risk, the more technical or past performance considerations may play a dominant role in source selection. 15.1011tradeoff process. a', 8213:'a tradeoff process is appropriate when it may be in the best interestof the government to consider award to other', 8214:'than thelowest pricedofferor or other thanthe highest technically rated offeror. b when using a tradeoff process, thefollowing apply: 1 all', 8215:'evaluation factors and significant subfactors that will affect contract award and their relative importance shall be clearly stated in the', 8216:'solicitation; and 2 the solicitation shall state whether all evaluation factors other than cost or price, when combined, are significantly', 8217:'more important than, approximately equal to, or significantly less important than cost or price. c this process permits tradeoffsamong cost', 8218:'or price and noncost factors andallows the government to accept other than the lowest priced proposal. the perceived benefits of', 8219:'the higher priced proposal shall merit the additional cost, and the rationale for tradeoffs must be documented in the file', 8220:'inaccordancewith 15.406. 15.1012lowest price technically acceptable source selection process. a the lowest price technically acceptable source selection process is appropriate', 8221:'when best value is expected to result from selection of the technically acceptable proposal with the lowest evaluated price. 15.1013', 8222:'federal acquisition regulation b when using the lowest price technically acceptable process, the following apply: 1 the evaluation factors and', 8223:'significant subfactors that establish the requirements of acceptability shall be set forth in the solicitation. solicitations shall specify that award', 8224:'will be made on the basis of the lowest evaluated price of proposals meeting or exceedingthe acceptability standards for noncost', 8225:'factors. if the contracting officer documents the file pursuant to 15.304c3iii, past performance need not be an evaluation factor in', 8226:'lowest price technically acceptable source selections. if the contracting officer electsto consider past performance asan evaluationfactor, it shall be evaluated', 8227:'inaccordance with 15.305. however,the comparative assessment in 15.305a2i does not apply. if thecontracting officer determines thata small business’ past performance', 8228:'is not acceptable, the matter shall be referred to the small business administration for a certificate of competency determination, in', 8229:'accordance with the procedures contained in subpart 19.6 and 15 u.s.c. 637b 7. 2 tradeoffs arenot permitted. 3 proposals are', 8230:'evaluated for acceptability but not ranked using the noncost/price factors. 4 exchanges may occur see 15.306. c except for dod,', 8231:'in accordance with section 880 of the john s. mccain national defense authorization act for fiscal year 2019 pub. l.', 8232:'115232, 41 u.s.c. 3701 note, the lowest price technically acceptable source selection process shall only be used when— 1 the', 8233:'agency can comprehensively and clearly describe the minimum requirements in terms of performance objectives, measures,and standards thatwill be used to', 8234:'determine the acceptability ofoffers; 2 the agency would realize no, or minimal, value from a proposal that exceeds the minimum', 8235:'technical or performance requirements; 3 the agency believes the technical proposals will require no, or minimal, subjective judgment by the', 8236:'source selection authorityas to the desirability of one offerors proposal versus a competing proposal; 4 the agency has ahigh degree', 8237:'of confidence that reviewing the technical proposals ofallofferorswouldnot resultin the identification of characteristics that could provide value or benefit to', 8238:'the agency; 5 the agency determined that the lowest price reflects the total cost, including operation and support, of the', 8239:'products or services being acquired; and 6 the contractingofficer documents the contract file describing thecircumstances that justify the use ofthe', 8240:'lowest price technically acceptable source selection process. d except for dod, in accordance with section 880 of the john s.', 8241:'mccain national defense authorization act for fiscal year 2019 pub. l. 115232, 41 u.s.c. 3701 note, contracting officers shall avoid,to', 8242:'themaximum extent practicable, using the lowest price technically acceptable source selection process in the case of a procurement that is', 8243:'predominantly for the acquisition of— 1 information technology services, cybersecurity services, systems engineering and technical assistance services, advanced electronic testing,', 8244:'audit or audit readiness services, health care services and records, telecommunications devices and services, or other knowledgebased professional services; 2', 8245:'personal protective equipment; or 3 knowledgebased training or logistics services in contingency operations or other operations outside the united states,', 8246:'including in afghanistan or iraq. 15.1013tiered evaluation of small business offers. an agency shall notcreate a tiered or cascading evaluation', 8247:'of offers, as described in 13 cfr 125.2, for multipleaward contracts unless an agency has statutory authority. 15.102 oral presentations.', 8248:'a oral presentations by offerors asrequested bythe government may substitute for, or augment, written information. use of oral presentations as', 8249:'a substitute for portions of a proposal can be effective in streamlining the sourceselection process. oral presentations may occur at', 8250:'any time in the acquisition process, and are subject to the same restrictions as written information, regarding timing see 15.208', 8251:'and content see 15.306. oral presentations provide an opportunity for dialogue among the parties. prerecorded videotaped presentations that lack realtime', 8252:'interactive dialogue are not considered oral presentations for the purposes of this section, although they may be included in offeror', 8253:'submissions, whenappropriate. b the solicitation may require each offerorto submitpart of itsproposal through oral presentations. however, representations and certifications shall', 8254:'besubmitted as required in the far provisions at 52.2048d or 52.2123b, and a signed offersheet including anyexceptions to the government’s', 8255:'terms and conditions shall be submitted inwriting. subpart 15.1 source selection processes and techniques 15.102 c information pertaining to areassuch', 8256:'as an offeror’s capability, past performance,work plans orapproaches, staffing resources, transition plans, or sample tasks or other types of tests', 8257:'may be suitable for oral presentations. in deciding what information to obtain through an oral presentation, consider the following: 1', 8258:'the government’s ability to adequately evaluate the information; 2 the need to incorporate any information into the resultant contract; 3', 8259:'the impacton the efficiency ofthe acquisition; and 4 the impactincluding cost onsmallbusinesses. in considering the costs oforal presentations, contracting officers', 8260:'should also consider alternatives to onsite oral presentations e.g., teleconferencing, video teleconferencing. d when oral presentations arerequired,the solicitation shall provide', 8261:'offerors with sufficient information to prepare them. accordingly, the solicitation may describe 1 the types of information to be presented', 8262:'orally and the associated evaluation factors that will be used; 2 the qualifications for personnel that will be required to', 8263:'provide the oral presentations; 3 the requirements for, and any limitations and/or prohibitions on, theuse of written materialor other media', 8264:'to supplement the oral presentations; 4 the location, date, and time for the oral presentations; 5 the restrictions governing the', 8265:'time permitted for each oral presentation; and 6 the scope and content of exchangesthat may occur between the government’s participants', 8266:'andthe offeror’s representatives as part of the oral presentations, including whether or not discussions see 15.306d will be permitted during', 8267:'oral presentations. e thecontracting officer shall maintain a record oforal presentations to documentwhat the government relied uponin making the source', 8268:'selection decision. the method and level of detail of the record e.g., videotaping, audio tape recording, written record, government notes,copies', 8269:'of offeror briefing slides or presentationnotes shall be at the discretion of the source selection authority. a copyof the record', 8270:'placed in the filemay be provided tothe offeror. f when an oral presentation includes information that the parties intend to', 8271:'include in the contract as material terms or conditions, the information shall be put in writing. incorporation by reference of', 8272:'oral statements is not permitted. g if, during an oral presentation, the government conducts discussions see 15.306d, the government must', 8273:'comply with 15.306 and 15.307. this page intentionally left blank. 15.14 subpart 15.2 solicitation and receipt of proposals and information', 8274:'15.202 subpart 15.2 solicitation and receipt of proposals and information 15.200scope of subpart. this subpart prescribes policies and procedures for', 8275:'a exchanging information with industry prior to receipt of proposals; b preparing and issuing requests for proposals rfps and requests', 8276:'for information rfis; and c receiving proposals and information. 15.201 exchanges withindustry before receipt of proposals. a exchanges of information', 8277:'among all interested parties, from the earliest identification of a requirement through receipt of proposals, are encouraged. any exchange of', 8278:'information must be consistent with procurement integrity requirements see 3.104. interested parties includepotentialofferors, end users, government acquisition andsupporting personnel, and', 8279:'others involved in the conduct or outcome of the acquisition. b the purpose of exchanging information is to improve the', 8280:'understanding of government requirements and industry capabilities,thereby allowing potential offerors to judge whether or how they can satisfy the government’s', 8281:'requirements, and enhancing thegovernment’s ability to obtain quality supplies and services, including construction, at reasonable prices, and increaseefficiencyin proposal preparation,proposal', 8282:'evaluation,negotiation, and contractaward. c agencies are encouraged to promote early exchanges of information about future acquisitions. an early exchange of', 8283:'information amongindustry and the program manager, contracting officer, and other participants in the acquisition process can identify and resolveconcerns regarding', 8284:'the acquisition strategy,including proposed contract type, terms and conditions, and acquisition planning schedules; the feasibility of the requirement, including performance', 8285:'requirements, statements of work, and data requirements; the suitability of the proposal instructions and evaluation criteria, including the approach for', 8286:'assessing past performance information; the availability of reference documents; and any other industry concerns or questions. some techniques to promote', 8287:'early exchanges of information are 1 industry or small business conferences; 2 public hearings; 3 market research, as described in', 8288:'part 10; 4 oneonone meetings with potential offerors any that are substantially involvedwith potential contract terms and conditions should include', 8289:'the contracting officer; alsosee paragraph fof this section regarding restrictions on disclosureof information; 5 presolicitation notices; 6 draft rfps; 7', 8290:'rfis; 8 presolicitation or preproposal conferences; and 9 site visits. d the special notices of procurement matters at 5.205c, or', 8291:'electronic notices, may be used to publicize the government’s requirement or solicit information from industry. e rfis may be used', 8292:'when the government does not presently intend to award a contract, but wants to obtain price, delivery, other market information,', 8293:'or capabilities for planning purposes. responses to thesenotices arenot offers andcannot be accepted by the government to form a binding', 8294:'contract. there is no required format for rfis. f general information about agency mission needs and future requirements may be', 8295:'disclosed at any time. after release of the solicitation, the contracting officer must be the focal point of any exchangewith', 8296:'potential offerors. when specific information about a proposed acquisition that would be necessary for the preparation of proposals is disclosed', 8297:'to one or more potential offerors, that information must bemadeavailable to the public as soon as practicable, but no later', 8298:'than the next general release of information, in order to avoid creating an unfair competitive advantage. information provided to a', 8299:'potential offeror in responseto itsrequest mustnot be disclosed ifdoing so would reveal the potential offeror’s confidential businessstrategy,andisprotectedunder 3.104 or subpart', 8300:'24.2. when conducting a presolicitation or preproposal conference, materials distributed atthe conference should be madeavailableto all potential offerors, upon request.', 8301:'15.202 advisory multistepprocess. a the agency may publish a presolicitation notice see 5.204 that provides a general description of the', 8302:'scope or purpose of the acquisition and invites potential offerors to submit information that allowsthe government to advise the offerors', 8303:'about their potential to be viable competitors. the presolicitation notice should identify the information that must be submitted federal acquisition', 8304:'regulation and the criteria that will be used in making the initial evaluation. information sought may be limited to a', 8305:'statement of qualifications and other appropriate information e.g., proposed technical concept, past performance, and limited pricing information. at a minimum,', 8306:'the noticeshallcontain sufficient information topermita potential offeror tomakean informed decision about whether to participate in the acquisition. this process should', 8307:'not be used for multistep acquisitions where it would result inofferorsbeing requiredto submit identical information in response to the notice', 8308:'and inresponse to the initial step of the acquisition. b the agency shall evaluate all responses in accordance with the', 8309:'criteria stated in the notice, and shall advise each respondent in writing eitherthat it will be invited to participate in', 8310:'the resultant acquisition or,based on the information submitted, that it is unlikely to be a viablecompetitor. theagency shall adviserespondents considered', 8311:'not tobe viable competitors of the general basis for that opinion. the agency shall inform all respondents that, notwithstanding the', 8312:'advice provided by the government in response to their submissions, they may participate in the resultant acquisition. 15.203 requests for', 8313:'proposals. a requests for proposals rfps are used in negotiated acquisitions to communicate government requirements to prospective contractors and to', 8314:'solicit proposals. rfps for competitive acquisitions shall, at a minimum, describe the 1 government’s requirement; 2 anticipated terms and conditions', 8315:'that willapply to thecontract. the solicitation may authorize offerors to propose alternative terms and conditions. if the solicitation permits offerors', 8316:'to submit oneor more additional proposals with alternative line items see 52.20422 or 52.2121e, the evaluation approach should consider the', 8317:'potential impact of the alternative line items on other terms and conditions or the requirement e.g., place of performance or', 8318:'payment and funding requirements see 15.206; 3 information required tobe inthe offeror’s proposal; and 4 factors and significant subfactors that', 8319:'will be used to evaluate the proposal and their relative importance. b an rfp may be issued for omb circulara76', 8320:'studies. see subpart 7.3 for additional information regarding cost comparisons between government and contractor performance. c electronic commerce may be', 8321:'used to issue rfps and to receive proposals, modifications, and revisions. in this case, therfpshallspecifytheelectroniccommercemethodsthatofferorsmayusesee subpart 4.5. d contracting officersmay', 8322:'issue rfps and/or authorizereceipt of proposals, modifications, orrevisions by facsimile. 1 in deciding whether or not to use facsimiles, the', 8323:'contractingofficer should considerfactors such as i anticipated proposal size and volume; iiurgency of the requirement; iii availability and suitabilityof electronic', 8324:'commerce methods; and iv adequacy of administrative procedures and controls for receiving, identifying, recording, and safeguarding facsimile proposals, and ensuring', 8325:'their timely delivery to the designated proposal delivery location. 2 if facsimile proposals are authorized, contracting officersmay request offerors to', 8326:'provide the complete, original signed proposal at a later date. e letter rfps may be used in sole source acquisitions', 8327:'and other appropriate circumstances. use of a letter rfp does not relieve the contracting officer from complying with other far', 8328:'requirements. letter rfps should be as complete as possible and, at a minimum, should contain the following: 1 rfp number', 8329:'and date; 2 name, address including electronic address and facsimile address, if appropriate, and telephone number of the contracting officer;', 8330:'3 type ofcontract contemplated; 4 quantity, description, and required delivery dates for theitem; 5 applicable certifications and representations; 6 anticipated', 8331:'contract terms and conditions; 7 instructions to offerors and evaluation criteriaforotherthan solesource actions; 8 proposal due date and time; and', 8332:'9 other relevant information; e.g., incentives, variations in delivery schedule, cost proposal support, and data requirements. f oral rfps are', 8333:'authorized when processing a written solicitation would delay the acquisition of supplies or services to the detriment of the government', 8334:'and a notice is not required under 5.202e.g., perishable items and support of contingency subpart 15.2 solicitation and receipt of', 8335:'proposals and information 15.2041 operations or other emergency situations. use ofan oral rfp does not relieve thecontracting officer from complying', 8336:'with other far requirements. 1 the contract files supporting oral solicitations should include i a description of the requirement; ii', 8337:'rationale for use of an oral solicitation; iii sources solicited, including thedate, time, name of individualscontacted, and prices offered;and iv', 8338:'the solicitation number provided to the prospective offerors. 2 the information furnished to potential offerors under oral solicitations should include', 8339:'appropriate items from paragraph e of this section. 15.204contract format. the use of a uniform contract format facilitates preparation of', 8340:'the solicitation and contract as well as reference to, and use of, those documents byofferors, contractors, and contract administrators. the', 8341:'uniform contract format need not be used for the following: a construction and architectengineer contracts see part 36. b subsistence', 8342:'contracts. c supplies or services contracts requiring special contract formats prescribed elsewhere in this regulation that are inconsistent with the', 8343:'uniform format. d letter requests for proposals see 15.203e. e contracts exempted by the agency head or designee. 15.2041 uniform', 8344:'contract format. a contracting officers shall prepare solicitations and resulting contracts using theuniform contractformat outlined in table151 of thissubsection. b', 8345:'solicitations using the uniform contract format shall include parts i, ii, iii, and iv see 15.2042 through 15.2045. upon award,', 8346:'contracting officers shall not physically include part iv in the resulting contract, but shall retain it in the contract file.', 8347:'see 4.1201c. the representations and certifications are incorporated by reference in the contract by using 52.20419 see 4.1202b or for', 8348:'acquisitions of commercial products and commercial services see 52.2124v. table 151 uniformcontractformat section title part ithe schedule a solicitation/contract form', 8349:'b supplies or services and prices/costs c description/specifications/statement of work d packaging and marking e inspection and acceptance f deliveries', 8350:'or performance g contract administration data h special contract requirements part iicontract clauses i contract clauses part iiilist of documents,', 8351:'exhibits, and other attachments j list of attachments part ivrepresentations and instructions 15.2042 federal acquisition regulation section title k representations,', 8352:'certifications, and other statements of offerors or respondents l instructions, conditions, and notices to offerors or respondents m evaluation factors', 8353:'for award 15.2042 part ithe schedule. the contractingofficer shall prepare the contractscheduleas follows: a section a, solicitation/contract form. 1 optional', 8354:'form of 308, solicitation and offernegotiated acquisition, or standard form sf 33, solicitation,offer and award, may be used to prepare', 8355:'rfps. 2 when other than of 308 or sf 33 is used, include the following information on the first page', 8356:'of the solicitation: iname, address, and location ofissuing activity, includingroom and building where proposals or information must be submitted. iisolicitation', 8357:'number. iii date of issuance. iv closing date and time. v number of pages. vi requisition or other purchase authority.', 8358:'vii brief description of item or service. viii requirement for theofferor to provide its nameandcomplete address, including street, city, county,', 8359:'state, and zip code, and electronic address including facsimile address, if appropriate. ix offer expiration date. b section b, supplies', 8360:'or services and prices/costs. include a brief description of the supplies or services; e.g., item number, national stock number/part number', 8361:'if applicable,nouns, nomenclature, and quantities. this includes incidental deliverables such as manuals and reports. c section c, description/specifications/statement of work.', 8362:'include any description or specifications needed in addition to section b see part 11, describing agency needs. d section d,', 8363:'packaging and marking. provide packaging,packing, preservation, and marking requirements,if any. e section e, inspection and acceptance. include inspection, acceptance, quality', 8364:'assurance, and reliability requirements see part 46, quality assurance. f section f, deliveries or performance. specify the requirements for time,', 8365:'place, and method of delivery or performance see subpart 11.4, delivery or performance schedules, and 47.3011. g section g, contract', 8366:'administration data. include any required accounting and appropriation data and any required contract administration information or instructions other than those', 8367:'on the solicitation form. include a statement that the offeror should includethe paymentaddress in the proposal, if it is differentfrom', 8368:'that shown for the offeror. h section h, special contract requirements. include a clear statement of any special contract requirements', 8369:'that are not included in section i, contract clauses, or in other sections of the uniform contract format. 15.2043 part', 8370:'iicontract clauses. section i, contract clauses. the contracting officershallinclude in this section the clauses requiredby law or by this regulation', 8371:'and any additional clauses expected to be included in any resulting contract, if these clauses are not required in any', 8372:'other sectionof the uniformcontract format. anindex maybe inserted if this section’s format is particularly complex. 15.2044 part iiilist of documents,', 8373:'exhibits, and other attachments. section j, list of attachments. the contracting officershalllist thetitle, date, and number of pages for each', 8374:'attached document, exhibit, and other attachment. crossreferences to material in other sections may be inserted, as appropriate. 15.2045partivrepresentations and instructions.', 8375:'the contractingofficer shall prepare the representations andinstructions as follows: a section k, representations, certifications, and other statements of offerors. include', 8376:'in this section those solicitation provisions thatrequire representations, certifications, or thesubmission of other information by offerors. subpart 15.2 solicitation and', 8377:'receipt of proposals and information 15.207 b section l, instructions, conditions, and notices to offerors or respondents. insert in this', 8378:'section solicitation provisions and other information and instructions not required elsewhereto guide offerors or respondents in preparing proposals or responses', 8379:'torequests for information. prospective offerors orrespondents may be instructed to submit proposals or information ina specific format or severable parts', 8380:'to facilitate evaluation. theinstructions may specify further organization of proposal or response parts, such as 1 administrative; 2 management; 3', 8381:'technical; 4 past performance; and 5 certified cost or pricing data see 15.408 solicitation provisions and contract clauses. of 15.408', 8382:'or data other than certified cost or pricing data. c section m, evaluation factors for award. identify all significant factors', 8383:'and any significant subfactors that will be considered in awarding the contract and their relative importance see 15.304d. the contracting', 8384:'officer shall insert one of the phrases in 15.304e. 15.205issuing solicitations. a thecontracting officer shall issue solicitations to potential sourcesin', 8385:'accordance with thepolicies and procedures in 5.102, 19.2024, and part 6. b a master solicitation, as described in 14.2033, may', 8386:'also be used for negotiated acquisitions. 15.206amending the solicitation. a when, either before or after receipt of proposals, the government', 8387:'changes its requirements or terms and conditions, the contracting officershallamend the solicitation. b amendments issued before the established time and', 8388:'date for receipt of proposals shall be issued to all parties receiving the solicitation. c amendments issued after the establishedtime', 8389:'and date for receipt of proposals shall be issued to all offerors that have not been eliminated from the competition.', 8390:'d if a proposal of interest to the government involves a departure from the stated requirements, the contracting officer shall', 8391:'amend the solicitation, provided this can bedone withoutrevealing tothe other offerors thealternate solution proposed or any other information that is', 8392:'entitled to protection see 15.207b and 15.306e. e if,in thejudgment of the contracting officer,based on market research or otherwise, an', 8393:'amendment proposedfor issuance after offers have been received is so substantialas to exceed what prospective offerors reasonably could have anticipated,', 8394:'so that additional sourceslikely would have submitted offers had the substance of theamendment been known to them, the contractingofficer shall', 8395:'cancel the original solicitation and issue a newone, regardless of thestage ofthe acquisition. f oral noticesmay be usedwhen timeis of', 8396:'theessence. the contracting officer shall document the contractfile and formalize the notice with an amendment see subpart 4.5, electronic commerce', 8397:'in contracting. g at a minimum, the following information should be included in each amendment: 1 name and address ofissuing', 8398:'activity. 2 solicitation number and date. 3 amendment number and date. 4 number of pages. 5 description of the change', 8399:'being made. 6 government point of contact and phone number and electronic or facsimile address, if appropriate. 7 revision to', 8400:'solicitation closing date, if applicable. 15.207 handling proposals and information. a upon receipt at the location specified in the solicitation,', 8401:'proposals and information received in response to a request for information rfi shall be marked with the dateand time ofreceipt', 8402:'and shall be transmittedto thedesignated officials. b proposals shall be safeguarded from unauthorized disclosure throughout the source selection process. see', 8403:'3.104 regarding the disclosure of source selection information 41 u.s.c. chapter 21, restrictions on obtaining and disclosing certain information. information', 8404:'received in response to an rfi shall be safeguarded adequately from unauthorized disclosure. federal acquisition regulation c if any portion', 8405:'of a proposal receivedby the contracting officerelectronically or byfacsimile is unreadable,the contracting officerimmediately shall notify theofferor and permit the offeror', 8406:'to resubmit theunreadableportion of the proposal. the method andtime for resubmissionshallbe prescribedby the contracting officerafter consultationwith the offeror, and documented', 8407:'inthe file. the resubmission shall beconsidered as if it werereceived at thedate and time of the original unreadable submission for', 8408:'the purpose of determining timeliness under 15.208a, provided the offeror complies with thetime and format requirementsforresubmission prescribed bythe contracting officer.', 8409:'15.208 submission, modification,revision, and withdrawal of proposals. a offerors are responsible for submitting proposals, and any revisions, and modifications, so', 8410:'as to reach the government officedesignated in the solicitation by the time specifiedin the solicitation. offerorsmay useany transmission method authorized', 8411:'by the solicitation i.e., regular mail, electronic commerce, or facsimile. if no time is specified in the solicitation, thetime for', 8412:'receipt is 4:30 p.m., local time, for the designated government office on the date that proposals are due. b 1anyproposal,modification,orrevision,thatisreceivedatthedesignatedgovernmentofficeaftertheexact', 8413:'time specified for receipt of proposals is late and will not be considered unless it is received before award is', 8414:'made, the contracting officerdeterminesthat accepting the late proposal would not unduly delay the acquisition; and i if it was transmitted', 8415:'through an electronic commerce method authorized by the solicitation, it was received at the initial point of entry to the', 8416:'government infrastructure not later than 5:00 p.m. one working day prior to the date specified for receipt of proposals; or', 8417:'ii there is acceptable evidence to establish that it was received at the government installation designated for receipt ofproposalsand was', 8418:'underthe government’s control prior to the time set for receipt ofproposals; or iii it was the only proposal received. 2', 8419:'however, a late modification of an otherwisesuccessfulproposal, that makes itsterms more favorable to the government, will be considered at any', 8420:'time it is received and may be accepted. c acceptable evidence to establish the time of receipt at the government', 8421:'installation includes the time/date stamp of that installation on the proposal wrapper, other documentaryevidence of receiptmaintained by the installation, ororal', 8422:'testimony or statements of government personnel. d if an emergency orunanticipated event interrupts normal governmentprocesses so that proposals cannot be', 8423:'received at the governmentoffice designated for receipt of proposals by the exact time specified in the solicitation, and urgent government', 8424:'requirements preclude amendment of the solicitation closing date, the time specified for receipt of proposals will be deemed to be', 8425:'extended to the same time of day specified in the solicitation on the first work day on which normal government', 8426:'processes resume. e proposals may be withdrawn by written notice at any time before award. oral proposals in response to', 8427:'oral solicitations may be withdrawn orally. the contracting officer mustdocument the contract file when oral withdrawals are made. one copy', 8428:'of withdrawn proposals should be retained in the contract file see 4.803a10. extra copies of the withdrawn proposals may be', 8429:'destroyed orreturned to the offeror at the offeror’s request. where practicable, electronically transmitted proposals that are withdrawn must be purged', 8430:'from primary and backupdata storage systems after a copy is made for the file. extremely bulky proposals mustonly be returned', 8431:'at the offeror’s request and expense. f the contracting officer mustpromptly notifyanyofferor if its proposal, modification, or revision was received', 8432:'late, and must inform the offeror whether its proposalwill be considered,unlesscontract awardis imminent and the noticeprescribed in 15.503b would suffice.', 8433:'g late proposals and modifications that are not considered must be held unopened, unless opened for identification, until after award', 8434:'and then retained with other unsuccessful proposals. h if available, the followingmust be included in the contractingoffice files for each', 8435:'late proposal,modification,revision, or withdrawal: 1 the date and hour of receipt. 2 a statement regarding whether the proposal was considered', 8436:'for award, with supporting rationale. 3 the envelope,wrapper, or other evidence of date of receipt. 15.209 solicitation provisions and contract', 8437:'clauses. when contracting by negotiation a thecontracting officer shall insert the provision at 52.2151, instructions to offerorscompetitive acquisition, in all', 8438:'competitive solicitations where the government intends to award a contract without discussions. subpart 15.2 solicitation and receipt of proposals and', 8439:'information 15.210 1 if the government intends to make award afterdiscussions withofferorswithin the competitive range, the contracting officershalluse the basic', 8440:'provision with its alternate i. 2 if the government would bewilling to accept alternate proposals, thecontracting officer shall alterthe basic', 8441:'clause to add a new paragraph c9 substantially the same as alternate ii. b 1exceptasprovidedinparagraphb2ofthissection,thecontractingofficershallinserttheclauseat 52.2152, audit and recordsnegotiation 10', 8442:'u.s.c. 3841, 41 u.s.c. 4706, and audit requirements in the omb uniform guidance at 2 cfr part 200, subpart f,', 8443:'in solicitations and contracts except those for i acquisitions not exceeding the simplified acquisition threshold; ii the acquisition of utility', 8444:'services at rates not exceeding those established to apply uniformly to the general public, plusanyapplicable reasonable connection charge; or iii', 8445:'the acquisition of commercial products or commercial services exempted under 15.4031. 2 i when using funds appropriated or otherwise made', 8446:'available by the american recovery and reinvestment act of 2009 pub. l. 1115 a the exceptions in paragraphs b1i through', 8447:'b1iii are not applicable; and b use the clause with its alternate i. ii a in the case of a', 8448:'bilateral contract modification that will use funds appropriated or otherwise made available by the american recoveryand reinvestment act of 2009,', 8449:'the contractingofficer shall specify applicability of alternate i to that modification. b in the case of a task or deliveryorder', 8450:'contract in which not all orders will use funds appropriated or otherwisemade available by the american recovery and reinvestment act', 8451:'of 2009, the contracting officer shall specifythe task or delivery orders to which alternate i applies. 3 for costreimbursement contracts', 8452:'with state and local governments, educational institutions, and other nonprofit organizations, the contractingofficer shall usethe clause withits alternate ii. 4', 8453:'when the head of the agency has waived the examination of records by the comptroller general in accordance with 25.1001,', 8454:'use the clause with its alternate iii. c when issuing asolicitation for information or planningpurposes, the contracting officer shall insert', 8455:'theprovision at 52.2153, request for information or solicitation for planning purposes, and clearly mark on the face of the solicitation', 8456:'that it is for information or planning purposes. d [reserved] e thecontracting officer shall insert the provision at 52.2155, facsimile', 8457:'proposals, in solicitations if facsimile proposals are authorized see 15.203d. f the contracting officer shall insertthe provisionat 52.2156, place of', 8458:'performance, in solicitations unless the place of performance is specified by the government. g [reserved] h the contractingofficer shall insertthe', 8459:'clause at 52.2158, order of precedenceuniform contract format, in solicitations and contracts using the format at 15.204. 15.210forms. prescribed forms', 8460:'are not required to prepare solicitations described in this part. the following forms may be used at the discretion of', 8461:'the contracting officer: a standard form 33,solicitation, offerandaward, and optional form 308,solicitation and offernegotiated acquisition, may be used to issue', 8462:'rfps and rfis. b standard form 30, amendment of solicitation/ modification of contract, and optional form 309, amendment of solicitation,', 8463:'may be used to amend solicitations of negotiated contracts. c optional form 17, offerlabel,may be furnishedwith each request for proposal.', 8464:'this page intentionally left blank. 15.28 subpart 15.3 source selection 15.304 subpart 15.3 source selection 15.300scope of subpart. this subpart', 8465:'prescribes policies and procedures for selection of a source or sources in competitive negotiated acquisitions. 15.301[reserved] 15.302 sourceselection objective. the', 8466:'objective of source selection is to select the proposal that represents the best value. 15.303responsibilities. a agency headsare responsible for', 8467:'source selection. the contracting officer is designatedas the source selection authority, unless theagency head appoints anotherindividual for a particular acquisitionor', 8468:'group of acquisitions. b the source selection authority shall 1 establish an evaluation team, tailored for the particular acquisition, that', 8469:'includes appropriate contracting, legal, logistics, technical, and other expertise to ensure a comprehensive evaluation of offers; 2 approve the source', 8470:'selection strategy or acquisition plan, if applicable, before solicitation release; 3 ensure consistency among the solicitation requirements, notices to offerors,', 8471:'proposal preparation instructions, evaluation factors and subfactors, solicitation provisions or contract clauses, and data requirements; 4 ensure that proposals are', 8472:'evaluated based solely on the factors and subfactors contained in the solicitation 10 u.s.c. 3303c and 41 u.s.c. 3703c; 5', 8473:'consider the recommendations of advisory boards or panels if any; and 6 select the source or sources whose proposal is', 8474:'the best value to the government 10 u.s.c. 3303c and 41 u.s.c. 3703c. c thecontracting officer shall 1 afterrelease ofa', 8475:'solicitation, serve as the focal point for inquiries from actual or prospective offerors; 2 afterreceipt of proposals, controlexchanges with offerors', 8476:'inaccordance with 15.306; and 3 award thecontracts. 15.304evaluation factors and significant subfactors. a the award decision is based on evaluation', 8477:'factors and significant subfactors that are tailored to the acquisition. b evaluation factors and significant subfactors must 1 represent the', 8478:'key areas of importance and emphasis to be considered in the source selection decision; and 2 support meaningful comparison and', 8479:'discrimination between and among competing proposals. c the evaluation factors and significant subfactors that apply to an acquisition and their', 8480:'relative importance, are within thebroad discretion of agency acquisition officials, subjectto thefollowing requirements: 1 i price or cost to the', 8481:'government shall be evaluated in every source selection 10 u.s.c. 3206c1b and 41 u.s.c.3306c1balso see part 36 for architectengineer contracts,', 8482:'subject to the exception listed in paragraph c1ii a of this section for use by dod, nasa, and the coast', 8483:'guard. ii in accordance with 10 u.s.c. 3206c, for dod, nasa, and the coast guard— athe contracting officer may choosenot', 8484:'to include price orcostas an evaluationfactorforaward when a solicitation— 1 has an estimated value above the simplified acquisition threshold; 2', 8485:'will result in multipleaward contracts see subpart 16.5 that are for the same or similar services; and 3 states that', 8486:'the government intends to make an awardto each and all qualifying offerors see 2.101. b if the contracting officer chooses', 8487:'not toinclude priceor cost as an evaluation factor for the contract award, in accordance with paragraph c1iiaof this section, the', 8488:'contracting officer shall consider price orcost asone of the factors in the selection decision for each order placed under the', 8489:'contract. c the exception in paragraph c1iia of this section shall not apply to solicitations for multipleaward contracts that provide', 8490:'for sole source orders pursuant to section 8a of the small business act 15 u.s.c. 637a. 2 the quality of', 8491:'the product or service shall be addressed in every source selection through consideration of one or more noncost evaluation factors', 8492:'such as past performance, compliance with solicitation requirements, technical excellence, federal acquisition regulation management capability,personnel qualifications, and prior experience 10', 8493:'u.s.c. 3206c1a and 41 u.s.c. 3306c1 a; and 3 i past performance, except as set forth in paragraph c3iii of', 8494:'this section, shall be evaluated in all source selections for negotiated competitive acquisitions expected to exceed the simplified acquisition threshold.', 8495:'ii for solicitations that are not set aside for small business concerns, involving consolidation or bundling, that offer a significant', 8496:'opportunity for subcontracting,the contracting officer shall include a factor toevaluatepast performance indicating the extent to which the offeror attainedapplicable goals', 8497:'for small business participationunder contracts that required subcontracting plans 15 u.s.c. 637d4gii. iii past performance need not be evaluated if', 8498:'the contractingofficer documents the reason past performance is not an appropriate evaluation factor for the acquisition. 4 for solicitations,that arenot', 8499:'set aside for small business concerns,involving consolidation or bundling, that offer a significant opportunityforsubcontracting, the contracting officer shall include proposed', 8500:'small businesssubcontracting participation in the subcontracting plan as an evaluation factor 15 u.s.c. 637d4gi. 5 if telecommutingis not prohibited, agencies', 8501:'shall notunfavorably evaluate an offer that includes telecommuting unless thecontracting officer executes a written determination in accordance with far 7.108b.', 8502:'d all factorsand significant subfactors thatwill affect contract awardandtheir relative importance shall be stated clearly in the solicitation 10 u.s.c.', 8503:'3206b1 and 41 u.s.c. 3306b1 see 15.2045c. the rating method need not be disclosed in the solicitation. the general approach', 8504:'for evaluating past performance information shall be described. e unless the exception at paragraph c1iia of this section applies, the', 8505:'solicitation shall also state, at a minimum, whether all evaluation factors other than cost or price, when combined, are— 1', 8506:'significantly more important than cost or price; 2 approximately equal to cost or price; or 3 significantly less important than', 8507:'cost or price 10 u.s.c. 3206c1c and 41 u.s.c. 3306c1c. 15.305 proposal evaluation. a proposal evaluation isan assessment of the', 8508:'proposal and the offeror’s ability to perform theprospective contract successfully. an agencyshallevaluatecompetitive proposals and thenassess their relativequalities solely on thefactors', 8509:'and subfactors specified in the solicitation. evaluations may be conducted using any rating method or combination of methods, including color', 8510:'or adjectival ratings, numerical weights, and ordinal rankings. the relative strengths, deficiencies, significant weaknesses, and risks supporting proposal evaluation shall', 8511:'be documented in the contract file. 1 cost or price evaluation. normally, competition establishes price reasonableness. therefore, when contracting on', 8512:'a firmfixedprice or fixedprice with economic price adjustment basis, comparison of the proposed prices will usually satisfy the requirement to', 8513:'perform a price analysis, and a cost analysis need not be performed. in limited situations, a cost analysis may be', 8514:'appropriateto establish reasonableness of the otherwise successful offerors price see 15.4031c1i c. when contracting on a costreimbursement basis, evaluations shall', 8515:'include a cost realism analysis to determine what thegovernment should realisticallyexpectto pay for the proposed effort, theofferorsunderstanding of the work,', 8516:'and the offerors abilityto perform the contract. cost realismanalyses mayalsobe used onfixedpriceincentive contracts or, in exceptional cases, on other competitive', 8517:'fixedpricetype contracts see 15.4041d3. see 37.115 for uncompensated overtime evaluation. the contracting officershalldocument the cost or priceevaluation. 2 past performance', 8518:'evaluation.i pastperformance information is one indicator of an offeror’s ability to perform thecontract successfully. the currency and relevance of the', 8519:'information, source ofthe information, context of the data, and general trends in contractor’s performance shall beconsidered. this comparative assessment of', 8520:'past performance information is separate from the responsibility determination required under subpart 9.1. iithe solicitation shall describethe approach for evaluatingpastperformance,', 8521:'including evaluating offerors with no relevant performancehistory, and shall provideofferorsan opportunityto identify past or currentcontracts including federal, state, and local', 8522:'governmentandprivate for efforts similar to the government requirement. the solicitation shall also authorizeofferorsto provide information on problems encountered on theidentified', 8523:'contractsandthe offeror’s corrective actions. the government shall consider this information, as well as information obtained from any other sources, when', 8524:'evaluatingthe offeror’s past performance. the source selectionauthority shall determinethe relevance of similar past performance information. iii the evaluation should take', 8525:'into account past performance information regarding predecessor companies, key personnel who have relevant experience, or subcontractors that will perform major', 8526:'or critical aspects of the requirement when such information is relevant to the instant acquisition. subpart 15.3 source selection 15.306', 8527:'iv in the case of anofferor without a record of relevant past performance or for whominformation onpast performanceis not available,', 8528:'theofferor may notbe evaluated favorablyor unfavorably on past performance. v the evaluation should include the past performanceof offerors in complying', 8529:'with subcontracting plan goals for small disadvantaged business sdb concerns see subpart 19.7. vi for offerors that are joint ventures,', 8530:'the evaluation shall take into account past performance of thejoint venture. if the joint venture does not demonstratepastperformance for award,', 8531:'thecontracting officer shall consider the past performance of each party to the joint venture. 3 technical evaluation. when tradeoffsare performed', 8532:'see 15.1011, the source selection records shall include ian assessment of each offeror’s ability to accomplishthe technical requirements; and iiasummary,', 8533:'matrix, or quantitative ranking, alongwith appropriate supportingnarrative, of each technical proposal using the evaluation factors. 4 cost information. cost information', 8534:'may be provided to members of the technical evaluation team in accordance with agency procedures. 5 small business subcontracting evaluation.', 8535:'solicitations mustbe structured to give offers from small business concerns the highest rating for the evaluation factors in 15.304c3ii and', 8536:'c4. b the source selection authority may reject all proposals received in response to a solicitation, if doing so is', 8537:'in the best interest of the government. c for restrictions on the use of support contractor personnel in proposal evaluation,', 8538:'see 37.203d. 15.306 exchanges withofferors after receipt of proposals. a clarifications and award without discussions. 1 clarifications are limited exchanges,', 8539:'between the government and offerors, thatmay occur when award without discussions is contemplated. 2 if award will be made without', 8540:'conductingdiscussions,offerorsmay be given theopportunity toclarifycertain aspects of proposals e.g., the relevance ofan offeror’s past performance informationand adverse past performance information', 8541:'towhich the offeror has not previouslyhadan opportunityto respond or to resolveminor orclerical errors. 3 award may bemade without discussions if', 8542:'the solicitation statesthat the government intends to evaluate proposals and make award without discussions. if the solicitation contains such a', 8543:'notice and the government determines it is necessary to conduct discussions, the rationale for doing so shall be documented in', 8544:'the contract file see the provision at 52.2151 10 u.s.c. 3303a2 and 41 u.s.c. 3703a2. b communications with offerors before', 8545:'establishment of the competitive range. communications are exchanges, between thegovernment and offerors,after receipt of proposals, leading toestablishment of the competitiverange.', 8546:'if a competitive range is to be established, these communications 1 shall be limited tothe offerors described in paragraphsb1i and', 8547:'b1ii ofthissection and ishall be held with offerors whosepast performance information is the determining factor preventingthem from being placed within', 8548:'the competitive range. such communications shall address adverse past performance information to which an offeror has nothada prior opportunityto respond;', 8549:'and iimay only be heldwith those offerors other than offerors under paragraph b1i of this sectionwhose exclusion from, or inclusion', 8550:'in, the competitive range is uncertain; 2 may be conducted to enhance government understanding of proposals; allow reasonable interpretation of', 8551:'the proposal; or facilitate the government’s evaluation process. such communications shall notbe usedto cure proposal deficiencies or material omissions, materially', 8552:'alter the technical or cost elements of the proposal, and/or otherwise revise the proposal. such communications may be considered in', 8553:'rating proposals for the purpose of establishing the competitive range; 3 are for the purpose of addressing issues that must', 8554:'be explored to determine whether a proposal should be placed in thecompetitive range. such communications shall notprovide an opportunity for', 8555:'the offeror to revise its proposal, but may address i ambiguities in the proposal or other concerns e.g., perceived deficiencies,', 8556:'weaknesses, errors, omissions, or mistakes see 14.407; and ii information relating to relevant past performance; and 4 shall addressadverse pastperformance', 8557:'information towhich the offeror has not previouslyhadan opportunityto comment. c competitive range. 1 agencies shall evaluate all proposals in accordance', 8558:'with 15.305a, and, if discussions are to be conducted, establish the competitive range. based on the ratings of each proposal', 8559:'against all evaluation criteria, the federal acquisition regulation contracting officershallestablisha competitive range comprised of allof the most highly rated proposals,', 8560:'unless the range is furtherreduced for purposes of efficiency pursuant to paragraph c2of this section. 2 after evaluating all proposals', 8561:'in accordance with 15.305a and paragraph c1 of this section, the contracting officer may determine thatthe number ofmost highly rated', 8562:'proposals that might otherwise be included in the competitive range exceeds thenumber at which an efficient competition can be conducted.', 8563:'providedthe solicitationnotifies offerors that thecompetitive range can be limited for purposes ofefficiencysee 52.2151f4, the contractingofficer may limit the number ofproposals', 8564:'in the competitive range to the greatest number that will permit an efficient competition among the most highly rated proposals', 8565:'10 u.s.c. 3303 and 41 u.s.c. 3703. 3 if the contracting officer, after complying with paragraph d3 of this section,decides', 8566:'thatan offeror’s proposal should no longer be included in the competitiverange, theproposal shall be eliminated from consideration for award. written', 8567:'notice ofthisdecision shall be provided to unsuccessful offerors in accordance with 15.503. 4 offerorsexcluded or otherwise eliminated from the competitiverange', 8568:'mayrequest adebriefingsee 15.505 and 15.506. d exchanges with offerors after establishment of the competitive range. negotiations are exchanges, in either', 8569:'a competitive or sole source environment,between the government and offerors, that are undertaken with the intent of allowing the offeror', 8570:'to reviseits proposal. these negotiations may include bargaining. bargaining includespersuasion, alteration of assumptions and positions, giveandtake, and may apply to', 8571:'price, schedule, technical requirements, type of contract, or other terms of a proposed contract. when negotiations are conducted in a', 8572:'competitive acquisition, they take place after establishment of the competitive range and are called discussions. 1 discussions are tailored to', 8573:'each offeror’s proposal, and must be conducted by the contracting officer with each offeror within the competitive range. 2 the', 8574:'primary objectiveof discussions is to maximize the government’s abilityto obtain best value, based on the requirement and the evaluation factors', 8575:'set forth in the solicitation. 3 at a minimum, the contracting officer must, subject to paragraphs d5 and e of', 8576:'this sectionand 15.307a, indicate to, or discuss with, each offeror still being considered for award, deficiencies, significant weaknesses, and adverse', 8577:'past performanceinformation to which the offeror has notyet had anopportunity torespond. the contractingofficer alsois encouraged to discuss otheraspects of theofferor’s', 8578:'proposal that could, in the opinion of the contracting officer, be altered or explainedto enhancematerially the proposal’s potential for award.', 8579:'however, thecontracting officer is notrequired to discuss every area where the proposalcould be improved. the scope and extentof discussions area', 8580:'matterof contracting officer judgment. 4 in discussing other aspects ofthe proposal,the government may, in situations wherethe solicitationstatedthat evaluationcredit would be', 8581:'given for technical solutions exceeding any mandatory minimums, negotiate withofferorsfor increased performance beyond any mandatory minimums,and the government may suggest', 8582:'to offerors that have exceeded any mandatory minimums in ways that are not integral to the design, that their proposals', 8583:'would be more competitive if the excesseswere removed and the offeredprice decreased. 5 if, afterdiscussions have begun, an offeror originallyin', 8584:'thecompetitive range is nolonger consideredto beamong themost highly rated offerors being consideredforaward,that offeror may be eliminated from thecompetitive range whether', 8585:'or notallmaterial aspects of the proposal have been discussed, orwhetheror not theofferor has been afforded an opportunity to submit a', 8586:'proposal revision see 15.307a and 15.503a1. e limits on exchanges. government personnel involved in the acquisition shall not engage in', 8587:'conduct that 1 favors one offeror over another; 2 reveals an offerors technical solution, including— i unique technology; ii innovative', 8588:'and unique uses of commercial products or commercial services; or iii any information thatwouldcompromise an offerors intellectual property to another', 8589:'offeror; 3 reveals an offerors price without that offerors permission. however, the contracting officer mayinform an offeror that its price', 8590:'isconsidered by the government to be too high, or too low,and reveal the results of the analysis supporting that conclusion.', 8591:'it is also permissible, at the governments discretion, to indicate toall offerors the cost or price that the governments price', 8592:'analysis, market research, and other reviews have identified as reasonable 41 u.s.c. 2102 and 2107. when using reverse auction procedures', 8593:'see subpart 17.8, it is alsopermissible to reveal to all offerors the offeredprices, without revealing any offerors identity; 4 reveals', 8594:'the names ofindividuals providing referenceinformation about an offeror’s past performance; or 5 knowingly furnishes source selection information in violation of', 8595:'3.104 and 41 u.s.c.2102 and 2107. subpart 15.3 source selection 15.308 15.307 proposal revisions. a if an offeror’s proposal is', 8596:'eliminated orotherwise removed from thecompetitive range, no further revisions to that offeror’s proposal shall be accepted orconsidered. b the contractingofficer', 8597:'may request or allow proposal revisions to clarify and document understandings reached during negotiations. at the conclusion of discussions, each', 8598:'offeror stillin the competitive range shall begiven an opportunity to submita final proposal revision. thecontracting officer is requiredto establish a', 8599:'common cutoff dateonly for receiptof final proposal revisions. requests for final proposal revisions shall advise offerors that the final proposal', 8600:'revisions shall be in writing and that the government intends to make award without obtaining further revisions. 15.308 sourceselection decision.', 8601:'the sourceselection authority’s ssa decisionshallbe based ona comparative assessment of proposalsagainst all source selection criteria in the solicitation. while the', 8602:'ssa may use reports and analyses prepared by others, the source selection decision shall represent the ssa’s independent judgment. thesource', 8603:'selection decisionshallbe documented, and the documentation shall include therationaleforanybusiness judgments andtradeoffs made or relied onby the ssa, including benefits associated', 8604:'with additional costs. although the rationale for the selection decision must be documented, that documentation need not quantify the tradeoffs', 8605:'thatled to the decision. this page intentionally left blank. 15.36 subpart 15.4 contract pricing 15.4031 subpart 15.4 contract pricing 15.400scope', 8606:'of subpart. this subpart prescribes the cost and price negotiation policies and procedures for pricing negotiated prime contracts including subcontracts', 8607:'and contract modifications, including modifications to contracts awarded by sealed bidding. 15.401definitions. as used in this subpart price means cost', 8608:'plus any fee or profit applicable to the contract type. subcontract except as used in 15.4072 also includes a transfer', 8609:'of commercial products or commercial services between divisions,subsidiaries, oraffiliates of a contractor or a subcontractor 10 u.s.c. 37012 and 41', 8610:'u.s.c. 3501a3. 15.402 pricing policy. contracting officersshall a purchase supplies and services from responsible sources at fair and reasonable prices.', 8611:'in establishing the reasonableness ofthe offered prices, the contracting officer 1 shall obtain certified cost or pricing data when required', 8612:'by 15.4034, along with data other than certified cost or pricing data as necessary to establish a fair and reasonable', 8613:'price; or 2 when certified cost or pricing data are not required by 15.4034, shall obtain data other than certified', 8614:'cost or pricing data as necessary to establish a fair and reasonable price, generally using the following order of preference', 8615:'in determining the type of data required: ino additional data from theofferor,if the price is based on adequate pricecompetition, except', 8616:'as provided by 15.4033b. ii data other than certified cost or pricing data such as a data related to prices', 8617:'e.g., established catalog or market prices, sales to nongovernmental and governmental entities, relying first ondata available withinthe government; second, on', 8618:'data obtained from sourcesotherthan the offeror; and, if necessary,on data obtained from the offeror. when obtaining data from the offeror', 8619:'is necessary, unless an exception under 15.4031b1 or2applies, suchdata submitted by the offeror shall include, at aminimum, appropriate data onthe', 8620:'prices atwhich the same or similar items have been sold previously, adequateforevaluating thereasonableness of theprice. b cost data to the', 8621:'extent necessaryforthe contracting officer to determinea fair and reasonableprice. 3 obtain the type and quantity of data necessary to establish', 8622:'a fair and reasonable price, but not more data than is necessary. requesting unnecessary datacan lead to increased proposal preparationcosts,', 8623:'generally extend acquisition lead time, and consume additional contractor and government resources. use techniques such as, but not limited to,', 8624:'price analysis, cost analysis, and/or cost realism analysis to establish a fair and reasonable price. if a fair and reasonable', 8625:'price cannot be established by the contracting officer fromthe analyses of the data obtainedor submitted todate, the contractingofficer shall require', 8626:'the submission of additional data sufficient for the contractingofficer to support thedetermination of the fair and reasonable price. b price', 8627:'each contract separately and independently and not 1 use proposed price reductions under other contracts as an evaluation factor; or', 8628:'2 consider losses or profits realized or anticipated under other contracts. c not include in a contract price any amount', 8629:'for a specified contingency to the extent that the contract provides for a price adjustment based upon the occurrence of', 8630:'thatcontingency. 15.403obtaining certified cost or pricing data. 15.4031prohibition on obtainingcertified costor pricing data 10 u.s.c. chapter 271 and 41 u.s.c.', 8631:'chapter 35. a certified cost or pricing data shall not be obtained for acquisitions at or below the simplified acquisition', 8632:'threshold. b exceptions to certified cost or pricing data requirements.the contracting officer shall notrequire certified cost or pricing data to', 8633:'support any action contracts, subcontracts, or modifications but may require data other than certified cost or pricing data as defined', 8634:'in far 2.101 to support a determination of a fair and reasonable price or cost realism— 1 when the contractingofficer', 8635:'determines that prices agreedupon are based on adequateprice competition see standards in paragraph c1 of this subsection; 15.4031 federal acquisition', 8636:'regulation 2 when the contractingofficer determines that prices agreedupon are based on pricesset by law or regulationsee standards in paragraph', 8637:'c2 of this subsection; 3 when a commercial product or commercial service is being acquired see standards in paragraph c3', 8638:'of this subsection; 4 when a waiver has been granted see standards in paragraph c4 of this subsection; or 5', 8639:'when modifying a contract or subcontract for commercial products or commercial services see standards in paragraph c3 of this section.', 8640:'c standards for exceptions from certified cost or pricing data requirements— 1 adequate price competition. i a price is based', 8641:'on adequate price competition when— atwo ormoreresponsibleofferors, competing independently, submit priced offersthat satisfy the government’s expressed requirement; b award will', 8642:'bemadeto the offeror whose proposalrepresents the best value see 2.101 where price is a substantial factor in source selection; and', 8643:'c thereisnofindingthatthepriceoftheotherwisesuccessfulofferorisunreasonable. anyfindingthatthe price isunreasonable must be supported by a statement of thefacts andapproved at a level above thecontracting officer.', 8644:'ii for agencies other than dod, nasa, and the coast guard, a price is also based on adequate price competition', 8645:'when– a there was a reasonable expectation, based on market research or other assessment, that two or more responsible offerors,', 8646:'competing independently, would submit priced offers in response to the solicitations expressed requirement, even though only one offer is received', 8647:'from a responsible offerorandif 1 based onthe offer received, the contracting officercan reasonably conclude that the offer was submitted with', 8648:'the expectation of competition, e.g., circumstances indicate that– i theofferor believed thatat leastone otherofferor wascapable of submitting a meaningful offer;', 8649:'and ii the offeror had noreason to believe that other potential offerors did not intend to submit an offer; and', 8650:'2 the determination that the proposed price is based on adequate price competition and is reasonable has been approved at', 8651:'a level abovethe contracting officer;or b price analysis clearly demonstrates that the proposed price is reasonable in comparison with current', 8652:'or recent prices for the same or similar items, adjusted to reflect changes in market conditions, economic conditions, quantities, or', 8653:'terms and conditions under contracts that resulted from adequate price competition. 2 prices set by law or regulation. pronouncements in', 8654:'the form of periodic rulings, reviews, or similar actions of a governmental body, or embodied in the laws, are sufficientto', 8655:'set a price. 3 commercial products and commercial services. i anyacquisitionthat the contracting officer determines meets the commercial product or', 8656:'commercial service definition in 2.101, or any modification, as defined in paragraph 3i of the commercial product definition, that does', 8657:'not change a commercial product to other than commercial, is exempt from therequirementforcertifiedcostor pricing data. if thecontracting officer determines thata', 8658:'productor service claimed to be commercial is not, and that no other exception or waiver applies e.g., the acquisition is', 8659:'not based on adequate price competition; the acquisition is not based on prices set by law or regulation; and the', 8660:'acquisition exceeds the threshold for the submission of certified cost or pricing data at 15.4034a1 the contractingofficer shall require submission', 8661:'of certified cost or pricing data. ii in accordance with section 41 u.s.c. 3501: awhen purchasingservices that are not offered', 8662:'andsold competitivelyin substantial quantities in the commercial marketplace, but areof atype offeredandsold competitively in substantial quantitiesin thecommercial marketplace, they may', 8663:'be considered commercial services thus meeting the purpose of 41 u.s.c.chapter 35 and 10 u.s.c. chapter 271 for truth in', 8664:'negotiations only if the contracting officer determines in writing that the offeror has submitted sufficient information to evaluate, through price', 8665:'analysis, thereasonableness of theprice of such services. b in order to make thisdetermination, the contracting officer mayrequest the offeror to', 8666:'submit pricespaid for the same or similar commercial services under comparable terms and conditions by both government and commercial customers;', 8667:'and c if the contracting officer determines that the information described inparagraph c3iib of this section is not sufficient to', 8668:'determinethe reasonableness of price, other relevant information regarding thebasis for price or cost, including information on labor costs, material costs', 8669:'and overhead rates may be requested. iii the following requirements apply to minor modifications defined in paragraph 3ii of the', 8670:'definition of a commercial product at 2.101 that do not change the commercial product to other than commercial: subpart 15.4', 8671:'contract pricing 15.4033 a for acquisitions funded by any agency other than dod, nasa, or coast guard, such modifications of', 8672:'a commercial product are exempt from the requirement for submission of certified cost or pricing data. b for acquisitions funded', 8673:'by dod, nasa, or coast guard, such modifications of a commercial product are exempt from the requirement for submission of', 8674:'certified cost or pricing data provided the total price of all such modifications under a particular contract action does not', 8675:'exceed the greater of the threshold for obtaining certified cost or pricing data in 15.4034 or 5 percent of the', 8676:'total price of the contract at the time of contract award. c for acquisitions funded by dod, nasa, or coast', 8677:'guard such modifications of a commercial product are not exempt from the requirement for submission of certified cost or pricing', 8678:'data on the basis of the exemption provided for at 15.4031c3 if the total price of all such modifications under', 8679:'a particular contract action exceeds the greater of the threshold for obtaining certified cost or pricing data in 15.4034 or', 8680:'5 percent of the total price of the contract at the time of contract award. iv any acquisition for other', 8681:'than commercial products or services treated as commercial products or commercial services at 12.102f1, except sole source contracts greater than', 8682:'$20 million, is exempt from the requirements for certified cost or pricing data 41 u.s.c. 1903. 4 waivers. the head', 8683:'ofthe contracting activityhca may, without power of delegation, waive the requirement for submission of certified cost or pricing data in', 8684:'exceptional cases. the authorization for the waiver and the supporting rationale shall be in writing. the hca may consider waiving', 8685:'the requirement if the price can be determined to be fair and reasonable without submission of certified cost or pricing', 8686:'data. for example, if certified cost or pricing data were furnished on previous production buys and thecontracting officer determines suchdata', 8687:'are sufficient, when combined with updateddata, awaiver may be granted. if the hca has waived the requirement for submission of', 8688:'certified cost or pricing data, the contractor or highertier subcontractor to whom the waiver relates shall be considered as having', 8689:'been required to provide certified cost or pricing data. consequently, awardof any lowertier subcontract expected toexceed the certified cost or', 8690:'pricing data threshold requires the submission of certified cost or pricing data unless i an exception otherwise applies to the', 8691:'subcontract; or ii the waiver specifically includes the subcontract and the rationale supporting the waiver for that subcontract. 15.4032other circumstances', 8692:'where certified cost or pricingdata are not required. a the exercise of an option at the price established at contract', 8693:'award or initial negotiation does not require submission of certified cost or pricing data. b certified cost or pricing data', 8694:'are not required for proposals used solely for overrun funding or interim billing price adjustments. 15.4033 requiring data other than', 8695:'certified cost or pricing data. a 1inthoseacquisitionsthatdonotrequirecertifiedcostorpricingdata,thecontractingofficershall— i obtain whatever data are available from government or other secondary sources and', 8696:'use that data in determining a fair and reasonable price; ii require submission of data other than certified cost or', 8697:'pricing data, as defined in 2.101, fromthe offeror to the extent necessary to determine a fair and reasonable price 10', 8698:'u.s.c. 3705a and 41 u.s.c.3505aif the contracting officer determines that adequate data from sources other than theofferor arenot available. thisincludes', 8699:'requiring data from an offeror to support a cost realism analysis; iii consider whether cost data are necessary to determine', 8700:'a fair and reasonable price when there is not adequate price competition; iv requirethat thedata submitted by the offeror include,', 8701:'at a minimum, appropriate data onthe prices atwhich the same item or similar items have previously been sold, adequate for', 8702:'determining the reasonableness of the price unless an exception under 15.4031b1 or 2 applies; and v consider the guidance in', 8703:'section 3.3, chapter 3, volume i, of the contract pricing reference guide cited at 15.4041a7 to determine the data anofferor', 8704:'shall berequired to submit. 2 the contractor’s format for submitting thedata should be used see 15.4035b2. 3 the contractingofficer shall', 8705:'ensure thatdata used to support price negotiations are sufficientlycurrent to permit negotiation of a fair and reasonableprice. requests for updated', 8706:'offeror data should be limited to data that affectthe adequacy of the proposal for negotiations, such as changes in price', 8707:'lists. 4 asspecified in section 808 of thestrom thurmond national defense authorization act for fiscal year1999 pub. l. 105261, an', 8708:'offeror who doesnot comply with a requirement tosubmit datafora contract or subcontract inaccordance 15.4034 federal acquisition regulation with paragraph a1', 8709:'of this subsection is ineligible for award unless the hca determines that it is in the best interest of the', 8710:'government to make the awardto that offeror, based on consideration of thefollowing: ithe effort made to obtainthe data. ii the', 8711:'need for the item or service. iii increased cost or significant harm to the government if award is not made.', 8712:'b adequate price competition. when adequate price competition exists see 15.4031c1, generally no additional data arenecessary todetermine thereasonableness of price.', 8713:'however,if there are unusual circumstances where it isconcludedthat additional data arenecessary todetermine the reasonableness of price, thecontracting officer shall, to', 8714:'the maximum extent practicable, obtainthe additional data from sourcesother thanthe offeror. in addition, the contracting officershouldrequest datato determine the cost', 8715:'realism of competing offers or to evaluate competing approaches. c commercial products and commercial services. 1 at aminimum, the contracting', 8716:'officer mustuse priceanalysis to determine whether the price is fairand reasonable whenever the contracting officer acquires a commercial productor commercial', 8717:'service see 15.4041b. the fact that a price is included in a catalog does not, in and of itself, make', 8718:'it fair and reasonable. if thecontracting officer cannot determine whether an offered priceis fair and reasonable, even after obtaining additional', 8719:'data from sourcesother thanthe offeror, then the contracting officer shall require the offeror tosubmit data other than certified cost or', 8720:'pricing data to support further analysis see 15.4041. this data may include history of sales to nongovernmental and governmental entities,', 8721:'cost data, or any other informationthe contracting officerrequiresto determine the price is fair and reasonable. unless an exception under 15.4031b1', 8722:'or 2 applies, the contracting officer shall require that the datasubmitted by the offeror include, ata minimum, appropriatedata on the', 8723:'prices at which the same item or similar items have previously been sold, adequate for determining the reasonableness of the', 8724:'price. 2 limitations relating to commercial products or commercial services 10 u.s.c. 3705b and 41 u.s.c. 3505b. i the contractingofficer', 8725:'shall limit requests for sales data relating to commercialproducts or commercial services todata for the same or similar items during', 8726:'a relevant time period. iithe contracting officer shall, to the maximumextent practicable, limit the scope of the request for datarelating', 8727:'to commercial products or commercial services to include only data that are in theform regularlymaintained by the offeror as part', 8728:'of its commercial operations. iii the government shall not disclose outside the government data obtained relating to commercial products or', 8729:'commercial services that is exempt from disclosure under 24.202a or the freedom of information act 5 u.s.c. 552b. 3 for', 8730:'servicesthat arenot offeredand sold competitively in substantial quantitiesin the commercial marketplace,but areof atype offered andsold competitivelyin substantial quantities in thecommercial', 8731:'marketplace, see 15.4031c3ii. 15.4034 requiring certified cost or pricing data 10 u.s.c. chapter 271 and 41 u.s.c. chapter 35. a', 8732:'1thecontractingofficershallobtaincertifiedcostorpricingdataonlyifthecontractingofficerconcludesthatnone of the exceptions in 15.4031b applies. however, ifthe contracting officer has reason to believe exceptionalcircumstances exist and has sufficient', 8733:'data available to determine a fair andreasonable price, then the contracting officer should consider requesting a waiver under the exception', 8734:'at 15.4031b4. the threshold for obtaining certified cost or pricing data is $750,000 for prime contracts awarded before july 1,', 8735:'2018, and $2 million for prime contracts awarded on or after july 1, 2018.when a clause refers to this threshold,', 8736:'and if the threshold is adjusted for inflation pursuant to 1.109a, then pursuant to 1.109d the changed threshold applies throughout', 8737:'the remaining term of the contract, unless there is a subsequent threshold adjustment. unless an exception applies, certified cost or', 8738:'pricing data are required before accomplishing any of the following actions expected to exceed the current thresholdor, in the case', 8739:'ofexisting contracts, thethreshold specifiedin the contract: i the award of any negotiated contract except for undefinitized actions such as letter', 8740:'contracts. iithe award of a subcontract atanytier, if the contractor and eachhighertier subcontractor were requiredto furnish certified cost or pricing', 8741:'data but see waivers at 15.4031c4. iii the modification of any sealed bid or negotiated contract whether or not certified', 8742:'cost or pricing data were initially required or any subcontract covered by paragraph a1ii of this subsection. price adjustment amounts', 8743:'must consider both increases and decreases e.g., a $500,000 modification resulting from a reduction of $1,500,000 and an increase of', 8744:'$1,000,000 is a $2,500,000 pricing adjustment exceeding the $2,000,000 threshold. this requirement does not apply when unrelated and separately priced', 8745:'changes for which certified cost or pricing data would not otherwise be required are included for administrative convenience in the', 8746:'same modification. negotiated final pricing actions such as termination settlements and total final price agreements for fixedprice incentive and redeterminable', 8747:'contracts are contract modifications requiring certified cost or pricing data if subpart 15.4 contract pricing 15.4041 a the total final', 8748:'price agreement for such settlements or agreements exceeds the pertinent threshold set forth at paragraph a1 of this subsection; or', 8749:'b the partial termination settlement plus the estimate to complete the continued portion of the contract exceeds the pertinent threshold', 8750:'set forth at paragraph a1 of this subsection see 49.105c15. 2 unless prohibited because an exception at 15.4031b applies,the head', 8751:'of the contracting activity, without power of delegation, mayauthorize thecontracting officer toobtaincertifiedcost or pricing data for pricing actions below the', 8752:'pertinent threshold in paragraph a1 of this subsection, provided the action exceeds the simplified acquisition threshold. the head of the', 8753:'contracting activity shall justify the requirement for certified cost or pricing data. the documentation shall include a written finding that', 8754:'certified cost or pricing data are necessary to determine whether the price is fair and reasonable and the facts supporting', 8755:'that finding. 3 upon the request of a contractor that was required to submit certified cost or pricing data in', 8756:'connection with a prime contract entered into beforejuly 1,2018, the contractingofficer shall modify the contract, withoutrequiring consideration, to reflect a', 8757:'$2 million threshold for obtaining certified cost or pricing data on subcontracts entered on and after july 1, 2018. see', 8758:'15.408. b when certified cost or pricingdata are required,the contracting officer shall require thecontractor or prospective contractor to submit to', 8759:'thecontracting officer and to have any subcontractor or prospective subcontractor submit to the prime contractor or appropriate subcontractor tier the', 8760:'following in support of any proposal: 1 the certified cost orpricing dataand data other than certified cost or pricing data', 8761:'required by the contractingofficer to determine that the price is fair and reasonable. 2 a certificate of current cost or', 8762:'pricing data, in the format specified in 15.4062, certifying that to the best of its knowledge and belief,the cost or', 8763:'pricing data were accurate,complete, and current as of the date ofagreement on price or, if applicable, an earlier date agreed', 8764:'upon between the parties that is as close as practicable to the date of agreement on price. c if certified', 8765:'costor pricingdata are requested and submitted byan offeror, but an exception islater found to apply, the data must not be', 8766:'considered certified cost or pricing data as defined in 2.101 and must not be certified in accordance with 15.4062 d', 8767:'the requirements of this subsection also apply to contracts entered into by an agency on behalf of a foreign government.', 8768:'15.4035 instructions for submission of certified cost or pricing data and data other than certified cost or pricing data. a', 8769:'taking intoconsideration the policy at 15.402, thecontracting officer shall specify in the solicitation see 15.408l and m 1 whether certified', 8770:'cost or pricing data are required; 2 that, in lieu of submitting certified costor pricingdata, the offeror may submita requestforexception', 8771:'from the requirement to submit certified cost or pricing data; 3 any requirement for data other than certified cost or', 8772:'pricing data; and 4 the requirement for necessary preaward orpostaward access toofferor’s records. b 1 format for submission of certified', 8773:'cost or pricing data. when certificationis required, thecontracting officer may require submission of certified cost or pricing data in the', 8774:'format indicated in 15.408 solicitation provisions and contract clauses. of 15.408, specify an alternative format, orpermit submission in the contractor’s', 8775:'format see 15.408l1, unless the data are required to be submitted on one of the termination forms specified in subpart', 8776:'49.6. 2 format for submission of data other than certified cost or pricing data. when required by the contractingofficer, dataother', 8777:'thancertifiedcostor pricing data may be submittedin the offeror’s own format unless thecontracting officer decides that use of a specific format', 8778:'is essential for evaluating and determining that the price is fair and reasonable and the format has been described in', 8779:'the solicitation. 3 format for submission of data supporting forward pricing rate agreements. data supporting forward pricing rate agreements or', 8780:'finalindirectcost proposalsshallbe submitted in a form acceptable tothe contracting officer. 15.404 proposal analysis. 15.4041proposal analysistechniques. a general. the objective of', 8781:'proposal analysis is to ensure that the final agreedto price is fair and reasonable. 1 the contractingofficer is responsible for', 8782:'evaluating the reasonableness ofthe offered prices. theanalytical techniques and procedures described in this subsection may be used, singly or in', 8783:'combination with others, to ensure that the 15.4041 federal acquisition regulation final price is fair and reasonable. the complexity and', 8784:'circumstances of each acquisition should determine the level of detail of the analysis required. 2 price analysis shall be used', 8785:'when certified cost or pricing data are not required see paragraph b of this subsection and 15.4043. 3 cost analysis', 8786:'shall be used to evaluate the reasonableness of individual cost elements when certified cost or pricing dataare required. price analysis', 8787:'should be used to verify thatthe overall price offered is fairand reasonable. 4 cost analysis may also be used to', 8788:'evaluate data other than certified cost or pricing data to determine cost reasonableness or cost realism when a fair and', 8789:'reasonable price cannot be determined through price analysis alone. 5 the contractingofficer may request the advice and assistance ofotherexperts to', 8790:'ensurethat anappropriate analysis is performed. 6 recommendationsor conclusions regarding the government’s review or analysis of an offeror’s orcontractor’s proposal shall', 8791:'not be disclosed to the offeror or contractor withoutthe concurrenceof the contractingofficer. any discrepancy or mistake of fact such as', 8792:'duplications, omissions, and errors in computation contained in the certified cost or pricing data or data other than certified cost', 8793:'or pricing data submitted in support of a proposal shall be brought to the contracting officer’s attention for appropriate action.', 8794:'7 the air forceinstitute of technology afit and the federal acquisition institutefai jointly prepared a five volume set of contract', 8795:'pricing reference guides to guide pricing and negotiation personnel. the five guides are: i price analysis, iiquantitative techniquesforcontract pricing, iii', 8796:'cost analysis, ivadvanced issues in contract pricing,and v federalcontract negotiation techniques. these references provide detailed discussion and examples applyingpricing policies', 8797:'to pricing problems. theyare tobe used for instruction and professional guidance. however, they arenot directive and should beconsidered informational only.', 8798:'they are available via the internet at http://www.acq.osd.mil/dpap/cpic/cp/ contractpricingreferenceguides.html. b price analysis. 1 price analysis is the process of examining', 8799:'and evaluating a proposed price without evaluating its separate cost elements and proposed profit. unless an exception from the requirement', 8800:'to obtain certified cost or pricing data applies under 15.4031b1 orb2,at a minimum,the contracting officershallobtain appropriate data,without certification, on the', 8801:'prices at which the same or similar items have previously been sold and determine if the data is adequate for', 8802:'evaluating the reasonableness of the price. price analysis may include evaluating data other than certified cost or pricing dataobtained from', 8803:'the offeror or contractor whenthere is no other means for determining afair and reasonable price. contracting officersshallobtain data other than', 8804:'certified cost or pricing data from the offeror or contractorforall acquisitions including commercial acquisitions, ifthat is the contracting officer’s only', 8805:'means to determinethe price to be fairand reasonable. 2 the government may use various price analysis techniques and procedures to', 8806:'ensure a fair and reasonable price. examples of such techniques include, but are not limited to, the following: icomparison of', 8807:'proposed pricesreceived in response tothe solicitation. normally, adequateprice competition establishes a fair and reasonable price see 15.4031c1. ii comparison of', 8808:'the proposed prices to historical prices paid, whether by the government or other than the government, for the same or', 8809:'similar items. this method may be used for commercial products or commercial services including those “of a type” or when', 8810:'requiring minor modifications for commercial products. a the prior price must be a valid basis for comparison. if there has', 8811:'been a significant time lapse between thelast acquisition and thepresent one, if the terms and conditionsof the acquisition are significantly', 8812:'different, or if the reasonableness of the prior price is uncertain, then the prior price may not be a valid', 8813:'basis for comparison. b the prior price must be adjustedto account for materially differingterms and conditions, quantities and market and', 8814:'economicfactors. for similar items, thecontracting officer must also adjust the priorprice to account for material differences between the similar item', 8815:'andthe item beingprocured. c expert technical advice should be obtained when analyzing similar items, or commercial products or commercial services', 8816:'that are “of a type”, or requiring minor modifications for commercial products, to ascertain the magnitude of changes required and', 8817:'to assist in pricing the required changes iii use of parametric estimating methods/application of rough yardsticks such as dollars per', 8818:'pound or per horsepower, or other units to highlight significant inconsistencies that warrant additional pricing inquiry. iv comparison with competitive', 8819:'published price lists, published market prices of commodities, similar indexes, and discount or rebate arrangements. v comparison of proposed prices', 8820:'with independent government cost estimates. vi comparison of proposed prices with prices obtained through market research for the same or', 8821:'similar items. subpart 15.4 contract pricing 15.4041 vii analysis of data other than certified cost or pricing data as defined', 8822:'at 2.101 provided by the offeror. 3 the first two techniques at 15.4041b2 are the preferred techniques. however,if the contracting', 8823:'officer determines that informationon competitive proposed prices orprevious contract pricesis not available oris insufficient to determine that the price is', 8824:'fairand reasonable, the contracting officer may use any ofthe remaining techniques as appropriate to the circumstances applicable to the acquisition.', 8825:'4 valueanalysiscan give insightinto the relativeworth of a product and thegovernment may use it in conjunction with the price analysis', 8826:'techniques listed in paragraph b2 of this section. c cost analysis. 1 cost analysis is the review and evaluation of', 8827:'any separate cost elements and profit or fee in an offeror’s orcontractor’sproposal, as needed to determine a fair and reasonable', 8828:'price or to determine cost realism, and the application of judgment to determine how well the proposed costs represent what', 8829:'the cost of the contract should be, assuming reasonable economy and efficiency. 2 the government may use various cost analysis', 8830:'techniques and procedures to ensure a fair and reasonable price, given the circumstances of the acquisition. such techniques and procedures', 8831:'include the following: iverification ofcost data or pricing data and evaluation of cost elements, including athe necessity for, and reasonablenessof,proposed', 8832:'costs, including allowances for contingencies; b projection of the offeror’s cost trends, on the basis of current and historical cost', 8833:'orpricing data; c reasonableness of estimates generated by appropriately calibrated and validated parametric models or cost estimating relationships; and d', 8834:'the application of audited or negotiated indirect cost rates, labor rates, and cost of money or other factors. iievaluating theeffect', 8835:'of the offeror’s current practices on future costs. inconducting this evaluation, the contracting officershallensure that the effects of inefficient oruneconomical', 8836:'past practices are not projected into the future. in pricing production of recently developed complex equipment, the contracting officer should', 8837:'perform a trend analysis of basic labor and materials,evenin periods of relativeprice stability. iii comparisonof costs proposed bythe offeror for', 8838:'individual cost elementswith aactual costspreviously incurred by the same offeror; b previous cost estimatesfrom the offeror or from other offerors', 8839:'for the same or similar items; c other cost estimates received in response to the government’s request; d independent government', 8840:'cost estimates by technical personnel; and e forecasts of planned expenditures. iv verification thatthe offerors cost submissions are in accordance', 8841:'with the contract cost principles and procedures in part 31 and, when applicable, the requirements and procedures in 48 cfr', 8842:'chapter 99, cost accounting standards. v review to determine whether any cost data or pricing data, necessary to make theofferor’s', 8843:'proposal suitable for negotiation, have notbeeneither submitted or identified inwriting by theofferor. if there are such data, thecontracting officer shall', 8844:'attemptto obtain and use them in the negotiations or make satisfactory allowance for theincomplete data. vi analysis of the results', 8845:'of any makeorbuy program reviews, in evaluating subcontract costs see 15.4072. d cost realism analysis. 1 cost realism analysis is', 8846:'the process of independently reviewing and evaluating specific elements of each offeror’s proposed costestimateto determine whether the estimated proposed cost', 8847:'elements are realistic for the work to be performed; reflect a clear understanding of the requirements; and are consistent with', 8848:'the unique methods of performanceand materials described in the offeror’stechnical proposal. 2 cost realism analyses shall be performed on costreimbursement', 8849:'contracts to determine the probable cost of performanceforeach offeror. ithe probable cost may differ from theproposed cost and should reflect', 8850:'thegovernment’s best estimate of the cost of any contract that is most likely to resultfrom the offeror’s proposal. the probable', 8851:'cost shall be used for purposes of evaluation to determine the best value. iithe probable cost is determinedby adjusting each', 8852:'offeror’s proposedcost, and fee when appropriate, to reflect any additions or reductions in cost elements to realistic levels based on', 8853:'the results of the cost realism analysis. 3 costrealism analyses may also be used on competitive fixedprice incentive contracts or,', 8854:'in exceptional cases, on other competitive fixedpricetype contracts when new requirements may not be fully understood by competingofferors, there are', 8855:'quality concerns, or past experience indicates that contractors’ proposed costs have resulted in quality or service shortfalls. resultsof the analysis', 8856:'may be used in performance risk assessments and responsibilitydeterminations. however, proposals shall beevaluated usingthe criteria in thesolicitation, and theoffered prices', 8857:'shall not beadjusted as a result of the analysis. 15.4041 federal acquisition regulation e technical analysis. 1 thecontracting officer should', 8858:'request that personnel having specialized knowledge, skills, experience, or capability in engineering, science, or management perform a technical analysis of', 8859:'the proposed types and quantitiesof materials, labor, processes,special tooling, equipment or real property, the reasonableness of scrap and spoilage, and', 8860:'other associated factors set forth in the proposals in order to determine the need for and reasonableness of the proposed', 8861:'resources, assumingreasonable economy andefficiency. 2 at a minimum, the technical analysis should examine the types and quantities of material proposed', 8862:'and the need for the types and quantities of labor hours and the labor mix. any other data that may', 8863:'be pertinent to an assessment of the offeror’s ability to accomplish the technical requirements orto thecostor price analysis of the', 8864:'service or product being proposed should also be included in the analysis. 3 the contractingofficer should request technical assistance in', 8865:'evaluating pricing relatedto items that are similar to items being purchased, or commercial products or commercial services that are “of', 8866:'a type”, or requiring minor modifications for commercial products, to ascertain the magnitude of changes required and to assist in', 8867:'pricing the required changes. f unit prices. 1 except when pricing an item on the basis of adequate price competition', 8868:'or catalog or market price, unit prices shall reflect the intrinsic value of an item or serviceandshallbe inproportion to an', 8869:'item’s base cost e.g., manufacturing or acquisition costs. any method of distributing costs to line items that distorts the unit', 8870:'prices shall not be used. for example, distributing costs equally among line items is not acceptable except when there is', 8871:'little or no variation in base cost. 2 except for theacquisitionof commercial products, contracting officers shall require that offerors identify', 8872:'in their proposals those items of supply that they will not manufacture or to which they will not contribute significant', 8873:'value, unless adequate price competition is expected 10 u.s.c. 3703a1a and 41 u.s.c. 3503a1a. such information shall be used to', 8874:'determine whether the intrinsic value of an item has been distorted through application of overhead and whether suchitems should be', 8875:'consideredforbreakout. the contracting officer should require such information in all other negotiated contracts when appropriate. g unbalanced pricing. 1 unbalanced', 8876:'pricing may increase performance risk and could result in payment of unreasonably high prices. unbalanced pricing exists when, despite an', 8877:'acceptable total evaluated price, the price of one or more line items is significantly over or understated as indicated by', 8878:'the application of cost or price analysis techniques. the greatest risks associated with unbalanced pricing occur when i startup work,', 8879:'mobilization, first articles, or first article testing are separate line items; ii base quantities and option quantities are separate line', 8880:'items; or iii the evaluated price is the aggregate of estimated quantities to be ordered under separate line items of', 8881:'an indefinitedelivery contract. 2 all offers with separately priced line items orsubline items shall be analyzed todetermine if the prices', 8882:'are unbalanced. if cost or priceanalysistechniques indicatethat anoffer is unbalanced, the contractingofficer shall i consider the risks to the government', 8883:'associated with the unbalanced pricing in determining the competitive range and in making the source selection decision; and ii consider', 8884:'whether award of the contract will result in paying unreasonably high prices for contract performance. 3 an offer may berejectedif', 8885:'the contracting officer determines that the lack of balance poses an unacceptable risk to the government. h review and justification', 8886:'of passthrough contracts. 1 the requirements of this paragraph h are applicable to all agencies. the requirements apply by law', 8887:'to the department of defense, the department of state, and the united states agency for international development, per section 802', 8888:'of thenational defenseauthorization act ndaa for fiscal year 2013. the requirements apply as a matter of policy to other federal', 8889:'agencies. 2 except as provided in paragraph h3of this section, whenan offerorfora contract or a task or delivery order informs', 8890:'thecontracting officer pursuantto 52.21522 that it intends to award subcontracts for more than 70 percent of the total cost of', 8891:'work tobe performed under the contract, task ordelivery order, the contracting officer shall– i consider the availability of alternative contract', 8892:'vehicles and the feasibility of contracting directly with a subcontractor or subcontractors that will perform the bulk of the work.', 8893:'if such alternative approaches are selected, any resultingsolicitationsshallbeissuedinaccordancewiththecompetitionrequirementsunderfar part 6; ii make a written determination that the contracting approach selected', 8894:'is in the best interest of the government; and iii document the basis for such determination. 3 contract actions awarded', 8895:'pursuant to subparts 19.5, 19.8, 19.13, 19.14, or 19.15 are exempt from the requirements of this paragraph h see section1615', 8896:'of the national defense authorization act for fiscal year 2014 pub. l. 11366. subpart 15.4 contract pricing 15.4042 15.4042datato support', 8897:'proposal analysis. a field pricing assistance. 1 thecontracting officer should request fieldpricing assistance when theinformation available at thebuying activity is', 8898:'inadequate to determine a fair and reasonable price. the contracting officershalltailor requests to reflect the minimum essential supplementary information needed', 8899:'to conduct a technical or cost or pricing analysis. 2 the contractingofficer shall tailor the type of information and levelof', 8900:'detail requested in accordance with the specialized resources available at the buying activity and the magnitude and complexity of the', 8901:'required analysis. field pricing assistance is generally available to provide itechnical, audit,andspecial reportsassociated with the costelements of a proposal, including', 8902:'subcontracts; ii information on related pricing practices and history; iii information to help contracting officers determine commerciality and a fair', 8903:'and reasonable price, including averifying saleshistory to sourcedocuments; b identifying special terms and conditions; c identifying customarilygranted or offered discountsforthe', 8904:'item; dverifying theitem to an existingcatalog or price list; e verifying historical datafora productor service previously not determined commercial that', 8905:'the offeroris now trying to qualify as a commercial product or commercial service; and f identifyinggeneral market conditions affecting determinationsof', 8906:'commerciality and a fair andreasonable price. iv information relative tothe business, technical, production, or othercapabilities and practices of anofferor. 3', 8907:'when field pricing assistance is requested, contractingofficers areencouraged to team with appropriate field experts throughout the acquisition process, including negotiations.', 8908:'early communication with these experts will assist in determining the extent of assistance required, the specific areas for which assistance', 8909:'is needed, a realistic review schedule, and the informationnecessary toperform the review. 4 when requesting field pricing assistance on a', 8910:'contractor’s request for equitable adjustment, the contractingofficer shall provide the information listed in 43.204b5. 5 field pricing information and other', 8911:'reports may include proprietary or source selection information see 2.101. this information mustbe appropriately identified andprotected accordingly. b reporting field', 8912:'pricing information. 1 depending upon the extent and complexityof the fieldpricing review, results, including supportingrationale, maybe reported directly to the', 8913:'contractingofficer orally, in writing, or by any other method acceptable tothe contracting officer. iwhenever circumstances permit,the contracting officerandfield pricingexperts are', 8914:'encouraged to use telephonic and/or electronic means to request and transmit pricing information. iiwhen it isnecessary tohavewritten technical and auditreports,the', 8915:'contracting officer shall request that the audit agency concurrentlyforward theaudit report to therequesting contracting officerand the administrative contracting officer aco.', 8916:'thecompleted field pricing assistanceresults may reference auditinformation, butneednot reconcilethe audit recommendations and technical recommendations. a copy of the information submitted', 8917:'to the contractingofficer by field pricing personnel shall be provided tothe audit agency. 2 auditand field pricing information, whether written', 8918:'or reportedtelephonically or electronically, shall bemadea part ofthe official contractfile see 4.803a19. c audit assistance for prime contracts or subcontracts.', 8919:'1 the contracting officer should contactthe cognizant audit officedirectly, particularly when an audit is the only field pricing support required.', 8920:'the audit office shall send the audit report,or otherwise transmit the audit recommendations, directly to the contractingofficer. ithe auditor shall', 8921:'not reveal the auditconclusionsor recommendations to theofferor/contractorwithout obtaining theconcurrence of the contracting officer. however, the auditor maydiscuss statements of facts', 8922:'with thecontractor. iithe contracting officer should be notified immediately of anyinformation disclosed to the auditor after submission of a report', 8923:'that may significantly affect the auditfindings and, if necessary, asupplemental auditreport shall be issued. 2 the contractingofficer shall not request', 8924:'a separate preaward audit ofindirectcosts unless the information already available from an existing audit, completed within the preceding 12 months,', 8925:'is considered inadequate for determining the reasonableness of the proposed indirect costs 41 u.s.c.4706 and 10 u.s.c. 3841. 3 the', 8926:'auditor is responsible for the scope and depth of the audit. copies of updated information that will significantly affect the', 8927:'auditshouldbe provided to the auditorby the contractingofficer. 15.4043 federal acquisition regulation 4 general access to the offeror’s books and financial', 8928:'records is limited to the auditor. thislimitation does not precludethe contracting officer or the aco, or their representatives, from requestingthat', 8929:'theofferor provide or make available any data or records necessary to analyze the offeror’sproposal. d deficient proposals. the aco or', 8930:'the auditor, as appropriate, shall notifythe contracting officerimmediately if the dataprovided for review is so deficient as to preclude review', 8931:'or audit, or if the contractor or offeror has denied access to any records considered essential to conduct a satisfactory', 8932:'review or audit. oral notifications shall be confirmed promptly in writing, including a description of deficient or denied data orrecords.', 8933:'thecontracting officer immediately shall take appropriate action to obtain the required data. shouldthe offeror/contractor again refuseto provide adequate data, or', 8934:'provide access to necessary data, the contracting officershallwithholdthe award orprice adjustment and refer the contract action to a higher authority,providing', 8935:'details ofthe attempts made toresolve the matterand a statement of the practicabilityof obtaining the supplies or services from another source.', 8936:'15.4043 subcontract pricing considerations. a thecontracting officer is responsible for the determination of a fair and reasonable price for the', 8937:'prime contract, including subcontracting costs. the contracting officer should consider whether a contractor or subcontractor has an approved purchasing system,', 8938:'has performed cost or price analysis of proposed subcontractor prices, or has negotiated the subcontract prices before negotiation of the', 8939:'prime contract, in determining the reasonableness of the prime contract price. this does not relievethe contracting officer from the responsibility', 8940:'to analyze the contractor’s submission, includingsubcontractor’s certified cost or pricing data. b the prime contractor or subcontractor shall 1 conduct', 8941:'appropriate cost or price analyses to establish the reasonableness of proposed subcontract prices; 2 include the results of these analyses', 8942:'in the price proposal; and 3 when required by paragraph c of this subsection, submit subcontractor certified cost or pricing', 8943:'data to the government as part of its own certified cost or pricing data. c any contractor or subcontractor that', 8944:'is required to submit certified cost or pricing data also shall obtain and analyze certified cost or pricing data before', 8945:'awardinganysubcontract, purchase order, or modification expected to exceed the certified cost or pricing data threshold, unless an exception in 15.4031b', 8946:'applies to that action. 1 the contractor shall submit, or cause to be submitted by the subcontractors, certified cost or', 8947:'pricing data to the government for subcontracts that are the lower of either i $15 million or more; or ii', 8948:'both more than the pertinent certified cost or pricing data threshold and more than 10 percent of the prime contractor’s', 8949:'proposed price, unless the contracting officer believes such submission is unnecessary. 2 the contractingofficer should require the contractor or subcontractor', 8950:'to submit to thegovernmentorcause submission of subcontractor certified cost or pricing data below the thresholds in paragraph c1 of this', 8951:'subsection and dataother thancertifiedcostor pricing data that the contracting officer considers necessary for adequately pricing theprime contract. 3 subcontractor certified', 8952:'cost or pricing data shall be submitted in the format provided in 15.408 solicitation provisions and contract clauses. of 15.408', 8953:'or the alternate format specified in the solicitation. 4 subcontractor certified cost or pricing data shall be current, accurate, and', 8954:'complete as of the date of price agreement, or, if applicable, an earlier date agreed uponby the parties and specified', 8955:'on the contractor’s certificate of current cost or pricing data. the contractorshallupdate subcontractor’s data, as appropriate, duringsource selection and negotiations.', 8956:'5 if there is more than one prospective subcontractor for any given work, the contractor need only submit to the', 8957:'government certified cost or pricing data for the prospective subcontractor most likely to receive the award. 15.4044profit. a general. this', 8958:'subsection prescribes policies for establishing the profit or fee portion of the government prenegotiation objective in price negotiations based on', 8959:'cost analysis. 1 profitor fee prenegotiation objectives do notnecessarily represent netincome to contractors. rather, they represent that element of the', 8960:'potential total remuneration that contractors may receive for contract performance over and above allowable costs. this potential remuneration element and', 8961:'the government’sestimateof allowable costs to be incurred in contract performance together equal thegovernment’s total prenegotiationobjective. just as actual costsmay varyfrom', 8962:'subpart 15.4 contract pricing 15.4044 estimated costs, the contractor’s actual realized profit or fee mayvary from negotiatedprofit or fee, because', 8963:'of such factors as efficiency of performance, incurrence of costs the government does not recognize as allowable, and the contract', 8964:'type. 2 it is in the government’s interestto offer contractors opportunities for financial rewardssufficient to stimulate efficientcontract performance, attract the', 8965:'best capabilities of qualified large and small business concerns togovernment contracts, and maintain a viable industrial base. 3 both the', 8966:'government andcontractors should beconcernedwith profit as a motivatorof efficient and effective contract performance. negotiations aimed merely at reducing prices by', 8967:'reducing profit, without proper recognition of the function of profit, are not inthe government’s interest. negotiation of extremely low profits,', 8968:'use of historical averages, or automatic application of predetermined percentages to total estimated costs do not provide proper motivation for', 8969:'optimum contract performance. b policy. 1 structured approaches see paragraph d of this subsection for determining profit or fee prenegotiation', 8970:'objectives provide a discipline for ensuring that all relevant factors are considered. subject to the authorities in 1.301c, agencies making', 8971:'noncompetitive contract awards over $100,000 totaling $50 million or more ayear i shall use a structured approach for determining the', 8972:'profit or fee objective in those acquisitions that require cost analysis; and ii may prescribe specific exemptions for situations in', 8973:'which mandatory use of a structured approach would be clearly inappropriate. 2 agencies may use another agency’s structured approach. c', 8974:'contracting officer responsibilities. 1 when the price negotiation is not based on cost analysis,contracting officers are not required to analyze', 8975:'profit. 2 when the price negotiation is basedon costanalysis, contracting officers in agencies that have astructured approach shall use it', 8976:'toanalyze profit. when not using a structured approach, contracting officersshallcomply with paragraph d1 of this subsection in developing profit or', 8977:'fee prenegotiation objectives. 3 contracting officersshalluse the government prenegotiationcostobjective amounts asthe basis for calculating theprofit or fee prenegotiation objective. before', 8978:'applying profit or feefactors, the contracting officershallexclude from the prenegotiation cost objective amounts the purchase cost of contractoracquired property that', 8979:'is categorized as equipment, as defined in far 45.101, and where such equipment is to be charged directly to the', 8980:'contract. before applying profit orfee factors, the contracting officer shall exclude any facilities capitalcostof money included in the cost objectiveamounts.', 8981:'if the prospective contractor fails to identify or propose facilities capital cost of money in a proposal for a contract', 8982:'that will be subject to the cost principles for contracts with commercial organizations see subpart 31.2, facilities capital cost of', 8983:'money will not be an allowable cost in any resulting contract see 15.408i. 4 ithecontractingofficershallnotnegotiateapriceorfeethatexceedsthefollowingstatutorylimitations, imposed by 10 u.s.c. 3322b', 8984:'and 41 u.s.c. 3905: a for experimental, developmental, or research work performed under a costplusfixedfee contract, the fee shall not', 8985:'exceed 15 percent of the contract’s estimated cost, excluding fee. b for architectengineer services for public works or utilities, the', 8986:'contract price or the estimated cost and fee for production and delivery of designs, plans, drawings, and specifications shall not', 8987:'exceed 6 percent of the estimated cost of constructionof the public work orutility,excluding fees. c forother costplusfixedfee contracts, the fee', 8988:'shall not exceed 10 percent of the contract’s estimated cost, excluding fee. iithe contracting officer’s signature on theprice negotiation memorandum', 8989:'or otherdocumentation supporting determination of fair and reasonableprice documents the contracting officer’s determination thatthe statutory price or fee limitations have', 8990:'not been exceeded. 5 the contractingofficer shall not requireany prospective contractorto submitbreakouts or supportingrationalefor itsprofit orfee objective but may consider', 8991:'it, if it is submitted voluntarily. 6 if a change or modification calls for essentially the same type and mix', 8992:'of work as the basic contract and is of relatively small dollar value compared to the total contract value, the', 8993:'contractingofficer may use the basic contract’sprofit or fee rate as the prenegotiation objective for that change or modification. d profitanalysis', 8994:'factors 1 common factors. unless it is clearly inappropriate or not applicable, each factor outlined in paragraphs d1i through vi', 8995:'of this subsection shall be considered by agencies in developing their structured approaches and by contractingofficers in analyzing profit, whether', 8996:'or not using a structured approach. i contractor effort. this factor measures the complexity of the work and the resources', 8997:'required of the prospective contractor for contract performance. greater profit opportunity should be provided under contracts requiring a high degree', 8998:'15.4044 federal acquisition regulation of professional and managerial skill and to prospective contractors whose skills, facilities, and technical assets can', 8999:'be expected to lead to efficient and economical contract performance. the subfactors in paragraphsd1ia through d of this subsection shall', 9000:'be considered in determining contractoreffort, but they may be modified in specific situations to accommodate differences in the categories used', 9001:'by prospective contractors for listing costs a material acquisition. this subfactor measuresthe managerialandtechnical effort neededto obtain the required purchased parts', 9002:'and material, subcontracted items, and special tooling. considerations include the complexity of the items required, the number of purchase orders', 9003:'and subcontracts to be awarded and administered, whether established sources are available or new or second sources must be developed,', 9004:'and whether material will be obtained through routine purchase orders or through complex subcontracts requiring detailed specifications. profit consideration should', 9005:'correspond to themanagerial and technical effortinvolved. b conversion direct labor. this subfactor measures the contribution of direct engineering, manufacturing, and', 9006:'other labor to converting the raw materials, data, and subcontracted items into the contract items. considerations include the diversity of', 9007:'engineering, scientific, and manufacturing labor skills required and the amount and quality of supervision and coordination needed to perform the', 9008:'contract task. c conversionrelated indirect costs. this subfactor measures how much the indirect costs contribute to contract performance. the labor', 9009:'elements in the allocable indirect costs should be given the profit consideration they would receive if treated as direct labor.', 9010:'the other elementsof indirect costs should beevaluated to determine whether theymerit only limited profit consideration because of their routine nature,', 9011:'or are elements that contribute significantly to the proposed contract. d general management.this subfactor measuresthe prospective contractor’sotherindirectcosts and general and', 9012:'administrative g&a expense, their composition, and how much they contribute to contract performance. considerations include howlaborin theoverheadpools would be treatedif', 9013:'it were direct labor,whetherelements within the pools are routine expenses or instead are elements that contribute significantly to the proposed', 9014:'contract, and whether the elements require routine as opposedto unusual managerialeffort and attention. ii contract cost risk. a this factor', 9015:'measures the degree of cost responsibility and associated risk that the prospective contractor will assume as a result of the', 9016:'contract type contemplated and considering the reliability of the cost estimate in relation to the complexity and duration of the', 9017:'contract task. determination of contract type should be closely related to the risksinvolved in timely, costeffective, and efficient performance. this', 9018:'factor should compensate contractors proportionately for assuming greater cost risks. b the contractor assumes the greatest cost risk in a', 9019:'closely priced firmfixedprice contract under which it agrees to perform a complex undertaking on time and at a predetermined price.', 9020:'some firmfixedprice contracts may entail substantially less cost risk than othersbecause,forexample, the contracttask is less complex or many of the', 9021:'contractor’s costs are knownat the timeof price agreement, in which case therisk factor should be reduced accordingly. thecontractor assumes the', 9022:'least cost risk in a costplusfixedfee levelofeffort contract, under which it isreimbursed thosecosts determined to be allocable and allowable, plus', 9023:'the fixed fee. c in evaluating assumption of cost risk,contracting officers shall, except in unusual circumstances, treat timeand materials, laborhour,and', 9024:'firmfixedprice,levelofeffort term contracts as costplusfixedfee contracts. iii federal socioeconomic programs. this factor measures the degree of support given by the', 9025:'prospective contractor to federal socioeconomic programs, such as those involving small business concerns, small business concerns owned and controlled by', 9026:'socially and economically disadvantaged individuals, womenowned small business concerns, veteranowned, hubzone, servicedisabled veteranowned small business concerns, sheltered workshops for workers', 9027:'with disabilities, and energy conservation. greater profitopportunity should be provided contractors thathavedisplayedunusual initiative in these programs. iv capital investments. thisfactortakes', 9028:'into account the contribution of contractor investments to efficient and economical contract performance. v costcontrol and other past accomplishments. this', 9029:'factor allows additional profit opportunities to a prospective contractor that has previously demonstratedits ability to perform similar tasks effectively and', 9030:'economically. in addition, consideration should be given to measures taken by the prospective contractor that result in productivity improvements, and', 9031:'other costreduction accomplishments that will benefit the government in followon contracts. vi independent development. under this factor, the contractor may', 9032:'be provided additional profit opportunities in recognition of independent developmentefforts relevant tothe contract end item without government assistance. the contracting', 9033:'officershouldconsider whether the development cost was recovered directly or indirectly from government sources. subpart 15.4 contract pricing 15.4062 2 additional', 9034:'factors. in order to foster achievement of program objectives, each agency may include additional factors in its structured approach or', 9035:'take them into account in the profit analysis of individual contract actions. 15.405price negotiation. a the purpose of performing cost', 9036:'or price analysis is to develop a negotiation position that permits the contracting officer and the offeror an opportunity to', 9037:'reach agreement ona fairand reasonable price. a fair and reasonableprice does not require that agreement be reached on every element', 9038:'of cost, nor is it mandatory that the agreed price be within the contracting officer’s initial negotiation position. taking into', 9039:'consideration the advisory recommendations, reports of contributing specialists, and the current status ofthe contractor’s purchasing system, the contracting officer is', 9040:'responsibleforexercising therequisite judgment needed toreacha negotiated settlementwith the offeror andis solelyresponsibleforthe final price agreement. however, when significant auditor other specialist', 9041:'recommendations are notadopted, the contractingofficer should provide rationale that supports the negotiation result in the price negotiation documentation. b the', 9042:'contractingofficer’s primary concern isthe overall price thegovernment will actually pay. the contracting officer’s objective is to negotiatea contract of a', 9043:'type and with a price providing the contractorthe greatest incentivefor efficientand economical performance. the negotiation of a contract type and', 9044:'a price are relatedand should be considered together withthe issues of risk and uncertainty to the contractor andthe government. therefore,', 9045:'the contractingofficer should not become preoccupied with any single element and should balance the contract type, cost, and profit or', 9046:'fee negotiatedto achieve a totalresulta price that is fair and reasonable to both the government and the contractor. c thegovernment’s', 9047:'cost objective and proposed pricing arrangement directly affectthe profit or feeobjective. because profit or feeis only one of several interrelated', 9048:'variables, the contracting officer shall notagreeon profitor fee without concurrent agreement on cost and type of contract. d if, however,', 9049:'the contractor insists on a price or demands a profit or feethat thecontracting officer considers unreasonable, and thecontracting officer has', 9050:'taken all authorized actionsincluding determining the feasibility of developing analternative source withoutsuccess, the contracting officer shall refer the contract action', 9051:'to alevel above the contracting officer. disposition ofthe action should be documented. 15.406documentation. 15.4061prenegotiation objectives. a theprenegotiation objectivesestablishthe government’s initialnegotiation', 9052:'position. they assist inthe contracting officer’s determination of fairand reasonable price. they should be based on the results of the', 9053:'contracting officer’s analysis of the offeror’s proposal,takinginto consideration all pertinent information including field pricing assistance, audit reports and technical analysis,', 9054:'factfinding results, independent government cost estimates and price histories. b the contractingofficer shall establish prenegotiationobjectives before the negotiation of any', 9055:'pricing action. the scope and depth of the analysis supporting the objectives should be directly related to the dollar value,', 9056:'importance, and complexity of the pricing action. whencost analysis is required, the contractingofficer shall document the pertinent issues to be', 9057:'negotiated, the cost objectives, and a profit or fee objective. 15.4062certificate ofcurrent cost or pricing data. a when certified cost', 9058:'or pricing data are required, the contractingofficer shall require the contractor toexecutea certificate of current cost or pricing data, using', 9059:'the format in this paragraph, and must include the executed certificate in the contract file. certificate of current cost or', 9060:'pricing data this is to certify that, to the best of my knowledge and belief, the cost or pricing data', 9061:'as defined in section 2.101 of the federalacquisition regulation far and required under farsubsection 15.4034 submitted, either actually or by', 9062:'specific identificationin writing, to the contracting officer or to the contracting officers representative in support of are accurate, complete, and', 9063:'current as of . this certification includes the cost or pricing data supporting any advance agreements and forwardpricing rate agreementsbetween', 9064:'the offeror and the government that are part of the proposal. firm 15.4063 federal acquisition regulation signature name title date', 9065:'of execution identify the proposal, request for price adjustment, or other submission involved, giving the appropriate identifying number e.g., rfp', 9066:'no.. insert the day, month, and year when price negotiationswere concluded and price agreement was reached or,if applicable, an earlier', 9067:'date agreed upon between the parties that is as close as practicable to the date of agreement on price. insertthe', 9068:'day,month, and year ofsigning, which should be as close as practicable to the datewhen the price negotiations were concluded and', 9069:'the contract price was agreed to. end of certificate b the certificatedoes not constitute arepresentation as tothe accuracyof the contractor’s', 9070:'judgmenton the estimate of future costs or projections. it applies to the data upon which the judgment or estimate was', 9071:'based. this distinction between fact and judgment should be clearly understood. if the contractor had information reasonably available at the', 9072:'time of agreement showing thatthe negotiatedprice was not based on accurate,complete, and current data, the contractor’s responsibility is not limited', 9073:'by any lack of personal knowledge of the information on the part of its negotiators. c thecontracting officer and contractor', 9074:'are encouraged to reach a prior agreement on criteria for establishing closing or cutoff dates when appropriate in order to', 9075:'minimize delaysassociated with proposal updates. closing or cutoff dates should be included as part of the data submitted with the', 9076:'proposal and, before agreement on price, data should be updated by the contractor to the latest closing or cutoffdates for', 9077:'which the dataare available. use ofcutoff datescoinciding withreports is acceptable, as certain data may not be reasonably available before normal', 9078:'periodic closing dates e.g., actual indirect costs. data withinthe contractor’s or a subcontractor’s organization on matters significant to contractor management', 9079:'and to the government will be treated as reasonably available. what is significant depends upon the circumstances of each acquisition.', 9080:'d possession of a certificate of current cost or pricing data is not a substitute for examining and analyzing the', 9081:'contractor’s proposal. e if certified costor pricingdata are requested by the government and submitted by an offeror, but anexception is', 9082:'later found to apply, the data shall not be considered certified cost orpricing dataand shall not be certified in accordance', 9083:'with this subsection. 15.4063 documenting the negotiation. a thecontracting officer shall document in the contract file the principal elementsof the', 9084:'negotiated agreement. the documentation e.g., price negotiation memorandum pnm shall include the following: 1 the purpose of the negotiation. 2', 9085:'a description of the acquisition, including appropriate identifying numbers e.g., rfp no.. 3 the name, position, and organization of each', 9086:'person representingthe contractor and the government inthe negotiation. 4 the current status of any contractor systems e.g., purchasing, estimating, accounting,', 9087:'and compensation to the extent they affected and were considered in the negotiation. 5 if certified cost or pricing data', 9088:'were not required in the case of any price negotiation exceeding the certified cost or pricing data threshold, the exception', 9089:'used and the basis for it. 6 if certified cost orpricing data were required, the extent towhich the contracting officer', 9090:'i relied on the certified cost or pricing data submitted and used them in negotiating the price; ii recognized as', 9091:'inaccurate, incomplete, or noncurrent any certified cost or pricing data submitted; the action taken by the contracting officer and the', 9092:'contractor as a result; and the effect of the defectivedata on theprice negotiated; or iii determined that an exception applied', 9093:'after the data were submitted and, therefore, considered not to be certified cost or pricing data. 7 a summary of', 9094:'thecontractor’sproposal, any field pricing assistance recommendations, includingthe reasons for any pertinent variances from them, the government’s negotiation objective, and thenegotiated', 9095:'position. where the determination of a fair and reasonable price is based on cost analysis, the summary shall address each', 9096:'major cost element. when determination of a fair and reasonable price is based on price analysis, the summary shall include', 9097:'the source and type of data used to support the determination. subpart 15.4 contract pricing 15.4071 8 the most significant', 9098:'facts or considerations controlling the establishment of the prenegotiation objectives and the negotiatedagreement including an explanation of any significant differencesbetween', 9099:'the two positions. 9 to the extent such directionhas a significant effect on theaction,a discussion and quantification ofthe impact of', 9100:'direction given by congress, otheragencies, and higherlevel officials i.e., officials who would notnormally exercise authority during the award and review', 9101:'process for the instant contract action. 10 the basis for the profit or fee prenegotiation objective and the profit or', 9102:'fee negotiated. 11 documentation of fair and reasonable pricing. b whenever field pricing assistancehas been obtained, the contractingofficer shall forward', 9103:'a copy of the negotiation documentation to the offices providing assistance. when appropriate, informationon how advisory field support can be', 9104:'made more effective should be provided separately. 15.407 special cost or pricing areas. 15.4071 defective certified cost or pricing data.', 9105:'a if,before agreement onprice,the contracting officerlearns that any certified cost or pricingdata submitted are inaccurate,incomplete, or noncurrent, the contracting officershallimmediately', 9106:'bring thematter to the attention of the prospective contractor, whether the defective data increaseor decrease thecontract price. thecontracting officer shall', 9107:'consider any new data submitted to correct the deficiency, or consider the inaccuracy,incompleteness, ornoncurrency of the data when negotiating the', 9108:'contract price. the price negotiation memorandum shall reflect the adjustments made to the data or the corrected data used to', 9109:'negotiate the contract price. b 1 if, after award, certified cost or pricing data are found to be inaccurate, incomplete,', 9110:'or noncurrent as of the date of final agreement on price or an earlier date agreed upon by the parties', 9111:'given on the contractors or subcontractors certificate of current cost or pricing data, the government is entitled to a price', 9112:'adjustment, including profit or fee, of any significant amount by which the price was increased because of the defective data.', 9113:'this entitlement is ensured by including in the contract one of the clauses prescribed in 15.408b and c and is', 9114:'set forth in the clauses at 52.21510, price reduction for defective certified cost or pricing data, and 52.21511, price reduction', 9115:'for defective certified cost or pricing data modifications. the clauses give the government the right to a price adjustment for', 9116:'defects in certified cost or pricing data submitted by the contractor, a prospective subcontractor,or an actualsubcontractor. 2 in arriving ata', 9117:'priceadjustment, the contracting officer shall consider the time bywhich the certified cost orpricing databecame reasonably available tothe contractor, and the', 9118:'extentto whichthe government relied upon the defective data. 3 the clausesreferred to in paragraph b1 of this subsectionrecognize that the', 9119:'government’sright to a price adjustment isnot affected by any ofthe following circumstances: ithe contractor or subcontractor wasa sole source supplieror', 9120:'otherwise wasin a superior bargaining position; iithe contracting officer should have known thatthe certified cost or pricing data in issue', 9121:'were defectiveeven though the contractor or subcontractor took no affirmative actionto bring the character of the data to the attention', 9122:'ofthe contracting officer; iii the contract was based on an agreement about the total cost of the contract and there', 9123:'was no agreement about the cost of each item procured under such contract; or iv certified cost or pricingdata wererequired;', 9124:'however, thecontractor or subcontractor did notsubmit a certificate of current cost or pricing data relating to the contract. 4 subjectto', 9125:'paragraphs b5and6of this subsection, thecontracting officer shall allow an offset for any understated certified costor pricingdata submitted in support of', 9126:'price negotiations, upto the amount ofthe government’s claim for overstated pricing data arising out of the same pricing action e.g.,', 9127:'the initial pricing of the same contract or the pricing of the same change order. 5 an offset shall be', 9128:'allowed only in an amount supported by the facts and ifthe contractor icertifies to the contracting officer that, to the', 9129:'best of thecontractor’s knowledge and belief, the contractoris entitled to theoffset in theamount requested; and ii proves that the certified', 9130:'cost or pricing data were available before the as of date specified on the certificate of currentcost or pricingdatabut were', 9131:'notsubmitted. such offsets need notbe inthe same cost groupings e.g., material, direct labor, or indirect costs. 6 an offset shall', 9132:'not be allowed if i the understated data were known by the contractor to be understated before the as of', 9133:'date specified on the certificate of current cost or pricing data; or 15.4071 federal acquisition regulation ii the government proves', 9134:'that the facts demonstrate that the price would not have increased in the amount to be offset even if the', 9135:'available data had been submitted before the as of date specified on the certificateof current cost or pricing data. 7', 9136:'i in addition to the price adjustment, the government is entitled to recovery of any overpayment plus interest on the', 9137:'overpayments. the government is also entitled to penalty amounts on certain of these overpayments. overpayment occurs only when payment is', 9138:'made for supplies or services accepted by the government. overpayments do not result from amounts paid for contract financing, as', 9139:'defined in 32.001. iiin calculating the interest amountdue, the contracting officer shall a determine the defective pricing amounts that have', 9140:'been overpaid to the contractor; b consider the date of each overpayment the date of overpayment for this interest calculation', 9141:'shall be the date payment was made for the related completed and accepted contract items; or for subcontract defective pricing,', 9142:'the date paymentwas made tothe prime contractor, based on prime contract progress billings or deliveries, which included payments for a', 9143:'completed and accepted subcontract item; and c apply theunderpayment interest rates in effect for each quarter from the time of', 9144:'overpaymentto the time of repayment, utilizing rates prescribed by the secretary of the treasuryunder 26 u.s.c. 6621a2. iii in arriving', 9145:'at the amount due for penalties on contracts where the submission of defective certified cost or pricing data wasa knowing', 9146:'submission, the contracting officer shall obtain an amount equal to the amount of overpayment made. before taking any contractual actions', 9147:'concerning penalties,the contracting officershallobtain the advice of counsel. iv in the demand letter,the contracting officer shall separatelyinclude a the repayment', 9148:'amount; b the penalty amount if any; c the interest amount through a specified date; and d a statement that', 9149:'interest will continue to accrue until repayment is made. c if,after award, the contractingofficer learns orsuspects thatthe data furnished were', 9150:'not accurate, complete, and current,or were notadequately verifiedby the contractoras of the time of negotiation,the contracting officer shall request anaudit', 9151:'to evaluate the accuracy, completeness, and currency of the data. the government mayevaluatethe profitcost relationships only if the audit reveals', 9152:'that the data certified by the contractorwere defective. the contracting officer shall not reprice the contract solely because the profit', 9153:'was greater than forecast or because a contingency specified in the submission failed to materialize. d for each advisoryaudit receivedbased', 9154:'on a postaward review that indicates defective pricing, the contracting officer shall make a determination as to whether or not', 9155:'the data submitted were defective and relied upon. before making such a determination, thecontracting officer should give thecontractor an opportunity', 9156:'to support theaccuracy,completeness, and currency of the data in question. the contracting officer shall prepare amemorandum documentingboth the determination and', 9157:'any corrective action taken as a result. the contracting officer shall send one copyof this memorandum to the auditor and,', 9158:'if the contract has been assigned for administration, one copy to the administrative contracting officer aco. a copy of the', 9159:'memorandum or other noticeof the contractingofficer’s determination shall be provided to the contractor. when thecontracting officer determines thatthe contractor submitteddefective', 9160:'cost or pricing data, the contracting officer, in accordance with agencyprocedures,shallensure that information relating to the contractingofficer’s final determination is', 9161:'reported in accordance with 42.1503h. agencies shall ensure updated informationthat changes a contracting officer’s prior final determinationis reported into the', 9162:'fapiis module of contractor performance assessment reporting system cparsin the event of a— 1 contracting officer’s decision inaccordance withthe contract', 9163:'disputes statute; 2 board of contract appeals decision; or 3 court decision. e if both the contractor and subcontractor submitted,', 9164:'and the contractor certified, or should have certified, cost or pricing data, the government has the right, under the clauses', 9165:'at 52.21510, price reduction for defective certified cost or pricing data, and 52.21511, price reduction for defective certified cost or', 9166:'pricing datamodifications, to reduce the prime contract price if it was significantly increased because a subcontractor submitted defective data. this', 9167:'right applies whether these data supported subcontract cost estimatesor supported firm agreements between subcontractor and contractor. f if government audit', 9168:'discloses defective subcontractor certified cost or pricing data, the information necessary to support areduction in prime contract and subcontract pricesmay', 9169:'be available only from the government. to the extent necessaryto securea prime contract price reduction, the contracting officer should make', 9170:'this information available to the prime contractor or appropriate subcontractors, upon request. if release of the information would compromise government', 9171:'subpart 15.4 contract pricing 15.4072 security or disclose trade secrets or confidential business information,the contracting officer shall release it only', 9172:'under conditions that will protect it from improper disclosure. information made available under this paragraph shall be limited to that', 9173:'used as the basis for the prime contract price reduction. inorder to affordan opportunityforcorrective action, the contracting officershouldgive the prime', 9174:'contractor reasonable advance notice before determining to reduce the prime contract price. 1 when a prime contractor includes defective subcontract', 9175:'data in arriving at the price but later awards the subcontract to a lower priced subcontractor or does not subcontract', 9176:'for the work, any adjustment in the prime contract price due to defective subcontract data is limited to the difference', 9177:'plus applicable indirect cost and profit markups betweenthe subcontract price used for pricing the prime contract, and either the actual', 9178:'subcontract price or the actual cost to the contractor, ifnot subcontracted, provided the dataon which theactual subcontractprice is basedare not', 9179:'themselves defective. 2 under costreimbursement contracts and under all fixedprice contracts except firmfixedprice contracts and fixed price contracts with economic', 9180:'price adjustment, payments to subcontractors that are higher than they would be had there been no defective subcontractor certified cost', 9181:'or pricing data shall be the basis for disallowance or nonrecognition of costs under the clauses prescribed in 15.408b and', 9182:'c. the government has a continuing and direct financial interest in such payments that is unaffectedby the initial agreementon prime', 9183:'contractprice. 15.4072makeorbuy programs. a general. the prime contractor is responsible for managing contract performance, including planning, placing, and administering subcontracts', 9184:'as necessary to ensure the lowest overall cost and technical risk to the government. when makeor buy programsare required, thegovernmentmay', 9185:'reserve the rightto review andagreeon the contractor’s makeorbuy program when necessary to ensure negotiation of reasonable contract prices, satisfactory performance,', 9186:'or implementation of socioeconomic policies. consent to subcontracts and review of contractors’ purchasing systems are separate actions covered in part', 9187:'44. b definition. makeitem, as used in this subsection,means anitem or workeffort to be producedor performed bythe prime contractor orits', 9188:'affiliates, subsidiaries, or divisions. c acquisitions requiring makeorbuy programs. 1 contracting officers may requireprospective contractors to submit makeorbuy program plans', 9189:'for negotiated acquisitions requiring certified cost or pricing data whose estimated value is $15 million or more, except when the', 9190:'proposed contract is for research or development and, if prototypes or hardware are involved, no significant followon production is anticipated.', 9191:'2 contracting officersmay require prospective contractorsto submitmakeorbuyprograms for negotiated acquisitionswhose estimated value is under $15 million only ifthe contracting officer', 9192:'i determines that the information is necessary; and ii documents the reasons in the contract file. d solicitation requirements. when', 9193:'prospective contractors are required to submit proposed makeorbuy programs, the solicitation shall include 1 a statement that the program and', 9194:'required supporting information must accompany the offer; and 2 a description of factors to be used inevaluating theproposed program,such as', 9195:'capability, capacity, availability of small, small disadvantaged, womenowned, veteranowned, hubzone, and servicedisabled veteranowned small business concerns for subcontracting, establishment of', 9196:'new facilities in or near labor surplus areas, delivery or performance schedules, control of technical and schedule interfaces, proprietary processes,', 9197:'technical superiority or exclusiveness, and technical risks involved. e program requirements. to support a makeorbuy program, the following information shall', 9198:'be supplied by the contractor in its proposal: 1 items and work included. the information required from a contractor in', 9199:'a makeorbuy program shall be confined to those major items orwork efforts that normally would require company management reviewof the', 9200:'makeorbuy decision because theyare complex, costly, needed inlarge quantities,or require additional equipment orreal property toproduce. raw materials, commercial products, commercial', 9201:'services see 2.101, and offtheshelfitems see 46.101 shall not be included, unless their potential impact on contract costor schedule is', 9202:'critical. normally, makeorbuy programsshouldnot include items or workefforts estimated to cost less than 1 percent of the total estimatedcontract priceor', 9203:'any minimum dollar amount set bythe agency. 2 the offeror’sprogramshouldinclude or be supported bythe following information: iadescription ofeach major item', 9204:'or work effort. iicategorization ofeach major itemor work effort as must make, must buy, or caneither make or buy. 15.4073', 9205:'federal acquisition regulation iii for eachitem or workeffort categorized as caneither make or buy, a proposal either to make or', 9206:'to buy. iv reasonsforcategorizing items and work effortsas mustmake or mustbuy, and proposing to make or to buy those categorized', 9207:'as can either make orbuy. the reasons must include the consideration given tothe evaluation factors described in the solicitation and', 9208:'must be in sufficient detail topermit the contracting officerto evaluate the categorization or proposal. v designation ofthe plant ordivision proposed', 9209:'tomakeeach itemor perform each work effort, and a statement as to whether the existing or proposed new facility is in', 9210:'or near a labor surplus area. vi identification of proposed subcontractors, if known, and their location and size status also', 9211:'see subpart 19.7 for subcontracting plan requirements. vii anyrecommendations to defer makeorbuy decisions whencategorization of someitems or work efforts is', 9212:'impracticable at the time of submission. viii any otherinformationthe contracting officer requires in orderto evaluate the program. f evaluation, negotiation,', 9213:'and agreement. contracting officers shall evaluate and negotiate proposedmakeorbuy programs as soon as practicable after their receipt and before contract', 9214:'award. 1 when the program is to be incorporated in the contract and the design status of the product being', 9215:'acquired does not permit accurate precontract identification of major items or work efforts, the contracting officer shall notifythe prospective contractor', 9216:'in writing that these items or efforts,when identifiable, shall be added under the clause at 52.2159, changes or additions to', 9217:'makeorbuy program. 2 contracting officersnormally shall not agree to proposed make items when the productsor services are not regularly manufactured', 9218:'or provided by the contractor and areavailablequality, quantity, delivery, and other essential factors consideredfrom another firm at equal or lower', 9219:'prices, or when they are regularly manufactured or provided by the contractor, but areavailablequality, quantity, delivery, and other essentialfactors consideredfrom', 9220:'anotherfirm atlower prices. however, thecontracting officer may agree to theseas make items ifan overall lower governmentwide cost would result or', 9221:'it is otherwise in the best interest of the government. if this situation occurs in any fixedprice incentive or costplus', 9222:'incentivefee contract,the contracting officer shall specify theseitemsin the contractandstate that theyare subjectto paragraph d of the clause at 52.2159, changes', 9223:'or additions to makeorbuy program see 15.408a. if the contractor proposes to reverse the categorization of such items during contract', 9224:'performance, the contract price shall be subject to equitable reduction. g incorporating makeorbuy programs in contracts.the contracting officer may incorporate', 9225:'the makeorbuy program in negotiated contracts for 1 major systems see part 34 or their subsystems or components, regardless of', 9226:'contract type; or 2 other supplies and services if ithe contractis a costreimbursable contract,or acostsharing contract in which the contractor’sshare', 9227:'of the cost is less than 25 percent; and iithe contracting officer determines that technical or cost risks justify government', 9228:'review and approvalof changes or additions to the makeorbuy program. 15.4073forward pricing rate agreements. a when certified cost or pricing', 9229:'data are required, offerors are required to describe any forward pricing rate agreements fpras in each specific pricing proposal to', 9230:'which the rates apply and to identify the latest cost or pricing data already submitted in accordance with the fpra.', 9231:'all data submitted inconnection withthe fpra, updated asnecessary,form a part of the totaldata thatthe offerorcertifies to be accurate, complete, and', 9232:'current at the time of agreement on price for an initial contract or for a contract modification. see the certificate', 9233:'of current cost or pricing data at 15.4062. b contracting officerswill usefpra rates as bases for pricing allcontracts, modifications, and', 9234:'other contractualactions to be performed during theperiod coveredby the agreement. conditions that mayaffect the agreement’s validity shall be reported promptly', 9235:'to the aco. if the aco determines that a changed condition invalidates the agreement, the aco shall notify all interested', 9236:'parties of theextent of its effect and statusof efforts to establish a revised fpra. c contracting officers shall not requirecertification', 9237:'at the time ofagreement for data supplied in support of fpra’sor other advance agreements. when a forward pricing rate agreement', 9238:'or other advance agreement is used to price a contract action that requires a certificate, the certificate supporting that contract', 9239:'action shall cover the data supplied to support the fpra or other advance agreement, and all other data supporting the', 9240:'action. subpart 15.4 contract pricing 15.4074 15.4074shouldcost review. a general. 1 shouldcost reviews are a specializedform ofcost analysis. shouldcost reviews', 9241:'differ from traditional evaluationmethodsbecause they do not assume that a contractor’shistorical costs reflect efficient and economical operation. instead, these reviews', 9242:'evaluate the economy and efficiency of the contractor’s existingworkforce, methods, materials, equipment, real property, operating systems, and management. these reviews', 9243:'areaccomplished by a multifunctional team of government contracting, contract administration, pricing, audit, and engineering representatives. the objective of should cost', 9244:'reviews is to promote both short and longrange improvements in the contractor’s economy and efficiency in orderto reduce the cost', 9245:'of performance of government contracts. in addition, by providing rationale for any recommendations and quantifying their impact on cost, the', 9246:'government will be better able to develop realistic objectives for negotiation. 2 there are two types of shouldcost reviewsprogram shouldcost', 9247:'review see paragraph b of this subsection and overhead shouldcost review see paragraph c of this subsection. these shouldcost reviews', 9248:'may be performed together or independently. thescope of a shouldcost review canrange from a largescale review examining thecontractor’s entire operation', 9249:'including plantwide overhead and selected major subcontractors to a smallscale tailored review examining specific portionsof acontractor’s operation. b program shouldcostreview.', 9250:'1 a program shouldcost review is used to evaluate significant elements of direct costs, suchas material and labor,and associatedindirectcosts, usually', 9251:'associated with the production of major systems. when a program shouldcost review is conducted relative to a contractor proposal, a', 9252:'separate audit report on the proposal is required. 2 a program shouldcost review should be considered, particularly in the case', 9253:'of a major system acquisition see part 34, when i some initial production has already taken place; ii the contract', 9254:'will be awarded on a sole source basis; iii there are future year production requirements for substantial quantities of like', 9255:'items; iv the items being acquired have a history of increasing costs; v the work is sufficiently defined to permit', 9256:'an effective analysis and major changes areunlikely; vi sufficient time is available to planand adequately conduct the shouldcost review; and', 9257:'vii personnelwith the required skills are available or can be assigned for the durationof the shouldcost review. 3 the contractingofficer', 9258:'should decide which elements of the contractor’s operationhavethe greatest potential for cost savings and assign the available personnel resources accordingly.', 9259:'the expertise of onsite government personnel should be used, when appropriate. while the particular elements to be analyzed are a', 9260:'function of the contract work task, elements suchas manufacturing, pricingand accounting,management and organization, and subcontract and vendor management are normallyreviewed', 9261:'in a shouldcostreview. 4 in acquisitions for which a program shouldcost review is conducted, a separate program shouldcost review teamreport,', 9262:'prepared in accordance with agency procedures, isrequired. the contracting officer shall consider the findings and recommendations contained in the program', 9263:'shouldcost review team report when negotiating the contract price. aftercompleting the negotiation,the contracting officershallprovide the aco a report ofany identified', 9264:'uneconomical or inefficientpractices, togetherwith a report of correction ordisposition agreements reached with thecontractor. the contracting officershallestablisha followup plan to monitor', 9265:'the correction of the uneconomical or inefficient practices. 5 when aprogramshouldcost review is planned, the contracting officer should state thisfact', 9266:'inthe acquisition plan or acquisition plan updates see subpart 7.1 and in the solicitation. c overhead shouldcost review. 1 an', 9267:'overhead should cost review is used to evaluate indirect costs, such as fringe benefits, shipping and receiving, real property, andequipment,depreciation,plant', 9268:'maintenance and security, taxes, and general and administrative activities. it is normally used to evaluate and negotiate anfpra withthe contractor.', 9269:'when an overhead shouldcost review is conducted, a separate audit report is required. 2 the following factors should be considered', 9270:'when selecting contractor sites for overhead shouldcost reviews: i dollar amount of government business. ii level of government participation. iii', 9271:'level of noncompetitive government contracts. iv volumeof proposalactivity. v major system or program. vi corporate reorganizations, mergers,acquisitions, or takeovers. vii', 9272:'other conditions e.g., changes in accounting systems, management, or business activity. 3 the objective of the overhead shouldcost review is', 9273:'to evaluate significant indirect cost elements indepth, and identify and recommend corrective actions regarding inefficient and uneconomical practices. ifitis conducted', 9274:'in conjunction 15.4075 federal acquisition regulation with a program shouldcostreview, a separateoverheadshouldcost review report is not required. however,the findings and', 9275:'recommendations of the overhead shouldcost team, or any separate overhead shouldcost review report, shall be provided to the aco. the', 9276:'aco should use this information to form the basis for the government position in negotiating an fpra with the contractor.', 9277:'the aco shall establish a followup plan to monitor the correction of the uneconomicalor inefficient practices. 15.4075 estimating systems. a', 9278:'using an acceptable estimating system for proposal preparation benefits both the government and the contractor by increasing the accuracy and', 9279:'reliability of individual proposals. cognizant audit activities, when it is appropriate to do so, shall establish and manage regular programs', 9280:'for reviewing selected contractors’ estimating systems or methods, in order to reduce the scope of reviews to be performed on', 9281:'individual proposals, expedite the negotiation process, and increase the reliability of proposals. the results of estimating system reviews shall be', 9282:'documented in survey reports. b the auditor shall senda copy of the estimating system survey report and a copyof the', 9283:'official notice of corrective action requiredto each contractingoffice and contract administrationoffice havingsubstantial business with that contractor. significant deficiencies not corrected', 9284:'by the contractor shall be a consideration in subsequent proposal analyses and negotiations. 15.408 solicitation provisions and contract clauses. a', 9285:'changes or additions to makeorbuy program. thecontracting officer shall insert the clause at 52.2159, changes or additions to makeorbuy program,', 9286:'in solicitations and contracts when it is contemplated that a makeorbuy program will be incorporated in the contract. if a', 9287:'less economical make or buy categorization is selected for one or more items of significant value, the contracting officer shall', 9288:'use the clause with 1 its alternate i, if a fixedprice incentive contract is contemplated; or 2 its alternate ii,', 9289:'if a costplusincentivefee contract is contemplated. b price reduction for defective certified cost or pricing data. the contractingofficer shall,when contracting', 9290:'by negotiation, insert the clause at 52.21510, price reduction for defective certified cost or pricing data, in solicitations and contracts', 9291:'when it is contemplated that certified cost or pricing data will be required from the contractor or any subcontractor see', 9292:'15.4034. c price reduction for defective certified cost or pricing datamodifications.the contracting officer shall, when contracting by negotiation, insert the', 9293:'clause at 52.21511, price reduction for defective certified cost or pricing data— modifications, in solicitations and contracts when it is', 9294:'contemplated that certified cost or pricing data will be required from the contractor or any subcontractor see 15.4034 for the', 9295:'pricing of contract modifications, and the clause prescribed in paragraph b of this section has not been included. d subcontractor', 9296:'certified cost or pricing data. the contracting officer shall— 1 insert the clause at 52.21512, subcontractor certified cost or pricing', 9297:'data, in solicitations and contracts when the clause prescribed in paragraph b of this section is included; or 2 upon', 9298:'the request of a contractor that was required to submit certified cost or pricing data in connection with a prime', 9299:'contract entered into beforejuly 1,2018, the contractingofficer shall modify the contractwithout requiring consideration, to replace clause 52.21512, subcontractor certified cost', 9300:'or pricing data, with its alternate i. e subcontractor certified cost or pricing datamodifications. the contracting officer shall— 1 insert', 9301:'the clause at 52.21513, subcontractor certified cost or pricing data—modifications, in solicitations and contracts when the clause prescribed in paragraph', 9302:'c of this section is included; or 2 upon the request of a contractor that was required to submit certified', 9303:'cost or pricing data in connection with a prime contract entered into beforejuly 1,2018, the contractingofficer shall modify the contractwithout', 9304:'requiring consideration, to replace clause 52.21513, subcontractor certified cost or pricing data—modifications, with its alternate i. f integrity of unit', 9305:'prices. 1 the contracting officershallinsert the clauseat 52.21514, integrity of unit prices, in solicitations and contracts except for i acquisitions', 9306:'at or below the simplified acquisition threshold; ii construction or architectengineer services under part 36; iii utility services under part', 9307:'41; iv service contracts where supplies are not required; v acquisitions of commercial products and commercial services; and vi contracts', 9308:'for petroleum products. subpart 15.4 contract pricing 15.408 2 the contractingofficer shall insertthe clause withits alternate i when contractingwithout adequate', 9309:'price competition or when prescribed by agency regulations. g pension adjustments and asset reversions. thecontracting officer shall insert the clause', 9310:'at 52.21515, pension adjustments and asset reversions, in solicitations and contracts for which it is anticipated that certified cost or', 9311:'pricing data will be required or for which any preaward or postaward cost determinations will be subject to part 31.', 9312:'h facilities capital cost of money. the contractingofficer shall insert the provision at 52.21516, facilities capital cost of money, in', 9313:'solicitations expected to result in contracts thatare subjectto the costprinciples for contracts with commercial organizations see subpart 31.2. i waiver', 9314:'of facilities capital cost of money. if the prospective contractor does not propose facilities capital cost of moneyin itsoffer, the', 9315:'contracting officer shall insert the clause at 52.21517, waiver of facilities capital costof money, in the resulting contract. j reversion', 9316:'or adjustment of plans for postretirement benefits prb other than pensions. the contracting officer shall insert the clause at 52.21518,', 9317:'reversion or adjustment of plans for postretirement benefits prb other than pensions, in solicitations and contracts for which it is', 9318:'anticipated that certified cost or pricing data will be required or for which any preaward or postaward cost determinations will', 9319:'be subject to part 31. k notification of ownership changes.the contracting officer shall insert theclause at 52.21519, notification of ownership', 9320:'changes, in solicitations and contracts for which it is contemplated that certified cost or pricing data will be required or', 9321:'for which any preaward or postaward cost determination will be subject to subpart 31.2. l requirements for certified cost or', 9322:'pricing data and data other than certified cost or pricing data. considering the hierarchy at 15.402, the contracting officer shall', 9323:'insert theprovision at 52.21520, requirements for certified cost or pricing data and data other than certified cost or pricing data,', 9324:'in solicitations if it is reasonably certain that certified cost or pricing data or data other than certified cost or', 9325:'pricing data will be required. this provision also provides instructions to offerors on howto request an exception from therequirementto submitcertifiedcostor', 9326:'pricing data. the contracting officer shall 1 use the provision with its alternate i to specify a format for certified', 9327:'cost or pricing data other than the format requiredbytable 152ofthissection; 2 use the provision with its alternate ii if copies', 9328:'of the proposal are to be sent to the aco and contract auditor; 3 use the provision with its alternate', 9329:'iii if submission via electronic media is required; and 4 replace the basic provision with its alternate iv if certified', 9330:'cost or pricing data are not expected to be required because an exception may apply, but data other than certified', 9331:'cost orpricing data will be requiredas describedin 15.4033. m requirements for certified cost or pricing data and data other than', 9332:'certified cost or pricing datamodifications. considering the hierarchy at 15.402, the contracting officer shall insert theclause at 52.21521, requirements for', 9333:'certified cost or pricing data and data other than certified cost or pricing datamodifications, in solicitations and contracts if it', 9334:'is reasonably certain that certified cost or pricing data or data other than certified cost or pricing data will be', 9335:'required for modifications. this clause also provides instructions to contractors on how to request an exception from the requirement to', 9336:'submitcertifiedcostor pricing data. the contracting officer shall 1 use the clause with its alternate i to specify a format for', 9337:'certified cost or pricing data other than the format required bytable 152ofthissection; 2 use the clause with its alternate ii', 9338:'if copies of the proposal are to be sent to the aco and contract auditor; 3 use the clause with', 9339:'its alternate iii if submission via electronic media is required; and 4 replace the basic clause with its alternate iv', 9340:'if certified cost or pricing data are not expected to be required because an exception may apply, but data other', 9341:'than certified cost orpricing data will be requiredas describedin 15.4033. n limitationson passthrough charges. 1 thecontracting officer shall insert the', 9342:'provision at 52.21522, limitations on passthrough chargesidentification of subcontract effort, in solicitations containing the clause at 52.21523. 2 iexceptasprovidedinparagraphn2ii,thecontractingofficershallinserttheclause 52.21523,', 9343:'limitations on passthrough charges, in solicitations andcontracts including task or delivery orders as follows: a for civilian agencies, insert the', 9344:'clause when 1 the total estimated contract or order value exceeds the simplified acquisition threshold as defined in section 2.101', 9345:'and 2 the contemplated contract type is expected to be a costreimbursement type contract as defined in subpart 16.3; or', 9346:'b for dod, insert the clause when federal acquisition regulation 1 the total estimated contract or order value exceeds the', 9347:'threshold for obtaining cost or pricing data in 15.4034; and 2 the contemplated contract type is expected to be any', 9348:'contract type except i a firmfixedprice contract awarded on the basis of adequate price competition; ii a fixedprice contract with', 9349:'economic price adjustment awarded on the basis of adequate price competition; iii a firmfixedprice contract for the acquisition of a', 9350:'commercial product or commercial service; iv a fixedprice contract with economic price adjustment, for the acquisition of a commercial product', 9351:'or commercial service; v a fixedprice incentive contract awarded on the basis of adequate price competition; or vi a fixedprice', 9352:'incentive contract for the acquisition of a commercial product or commercial service. ii the clause may be used when the', 9353:'total estimated contract or order value is below the thresholds identified in 15.408n2i and for any contract type, when the', 9354:'contracting officer determines that inclusion of theclause is appropriate. iii use the clause 52.21523 with itsalternate iwhen the contractingofficer determines', 9355:'that the prospective contractor has demonstratedthat itsfunctions provideadded value to the contractingeffort and there areno excessive pass through charges. table', 9356:'152—instructions for submitting cost/price proposals when certifiedcost or pricingdataare required this document provides instructions for preparing a contract pricing proposal', 9357:'when certified cost or pricing data are required. note 1. there is a clear distinction between submitting certified cost or', 9358:'pricing data and merely making available books, records, and other documents without identification. the requirement for submission of certified cost', 9359:'or pricing datais met when allaccuratecertifiedcost or pricing data reasonably available to the offeror have been submitted, either actually orby', 9360:'specific identification,to the contractingofficer or an authorized representative. as later data come into your possession, it should besubmitted promptly to', 9361:'the contracting officer in a manner that clearly shows howthe data relate to the offeror’s priceproposal. the requirement for submission', 9362:'of certified cost or pricing datacontinues upto the time of agreement on price, or an earlier date agreed upon between', 9363:'the parties if applicable. note 2. by submitting your proposal,you grant the contractingofficer oran authorized representative the right to examine', 9364:'records that formed the basis for the pricing proposal. that examination can take place at any time before award. it', 9365:'may include those books, records, documents, and other types of factual data regardless of form or whether the data are', 9366:'specifically referenced or included in the proposal as the basis for pricing that will permit an adequate evaluation of the', 9367:'proposed price. i. general instructions a. you must provide the following information on the firstpageof your pricing proposal: 1 solicitation,', 9368:'contract, and/or modification number; 2 name and address ofofferor; 3 name and telephone number of point of contact; 4 name', 9369:'of contract administration office if available; 5 type ofcontract actionthat is, newcontract, change order, price revision/redetermination, letter contract, unpriced order,', 9370:'orother; 6 proposed cost; profit or fee; and total; 7 whether you will require the use of government property in', 9371:'the performance of the contract, and, if so, what property; subpart 15.4 contract pricing 15.408 8 whetheryour organizationis subject to', 9372:'cost accounting standards; whether your organization has submitted a casb disclosure statement, and if it has been determined adequate; whether', 9373:'you have been notified that you are or may be in noncompliance with your disclosure statement or cas other than', 9374:'a noncompliance that the cognizant federal agency official hasdetermined to have an immaterial cost impact, and,if yes, an explanation;whetherany aspect', 9375:'of this proposal is inconsistent with your disclosed practices or applicable cas, and, if so, an explanation; and whether the', 9376:'proposal is consistentwithyourestablishedestimatingandaccountingprinciplesandproceduresandfarpart 31,costprinciples, and, if not, an explanation; 9 the following statement: this proposal reflects our estimates and/or actual', 9377:'costs as of this date and conforms with the instructions in far 15.4035b1 and table 152. by submitting this proposal,', 9378:'we grant the contractingofficer and authorized representatives the right to examine, at any time before award, those records, which include', 9379:'books, documents, accounting procedures and practices, and other data, regardless of type and form or whether such supporting information is', 9380:'specifically referenced or included in the proposal as the basis for pricing, that will permit an adequate evaluation of the', 9381:'proposed price. 10 date of submission; and 11 name, title, and signature of authorizedrepresentative. b. in submitting your proposal, you', 9382:'must include an index, appropriately referenced, of all the certified cost or pricing data and information accompanying or identified in', 9383:'the proposal. in addition, you must annotate any future additions and/or revisions, up to the date of agreement on price,', 9384:'or an earlier date agreed upon by the parties, on a supplemental index. c. as part of the specific information', 9385:'required, you must submit, with your proposal 1 certified costor pricingdata as defined at far 2.101. you mustclearly identify onyour', 9386:'cover sheet that certified cost or pricing data are included as part of the proposal. 2 information reasonably required to', 9387:'explain your estimating process, including i the judgmental factors applied and the mathematical or other methods used in the estimate,', 9388:'including those used in projecting from known data; and ii the nature and amount of any contingencies included in the', 9389:'proposed price. d. you must show the relationship between lineitem prices and the total contract price.you must attach cost element', 9390:'breakdowns for each proposed line item, using the appropriate format prescribed in the formats for submission of line item summaries', 9391:'section of this table. you must furnish supporting breakdownsforeach cost element, consistent with your cost accounting system. e. when more', 9392:'than one line item is proposed, you must also provide summary total amounts covering all line items for each element', 9393:'of cost. f. whenever you have incurred costs for work performedbefore submission of a proposal, you must identifythose costs in', 9394:'your cost/price proposal. g. if you have reached an agreement with government representatives on use of forward pricing rates/factors, identify', 9395:'the agreement,include a copy, anddescribe its nature. h. as soon as practicable after final agreement on price or an earlier', 9396:'date agreed to by the parties, but before the award resultingfrom the proposal, you must, under the conditions stated in', 9397:'far 15.4062, submit a certificate of current cost or pricing data. ii. cost elements depending on your system, you must', 9398:'provide breakdowns for the following basic cost elements, as applicable: federal acquisition regulation a. materials and services. provide a consolidated', 9399:'priced summary of individual material quantities included in the various tasks, orders, or line items being proposed and the basis', 9400:'for pricing vendor quotes, invoice prices, etc.. include raw materials, parts, components, assemblies, and services to be produced or performed', 9401:'by others. for all items proposed, identify the item and show the source, quantity,and price. conduct price analyses of all', 9402:'subcontractor proposals. conduct cost analyses for all subcontracts when certified cost or pricing data are submitted by thesubcontractor. include these', 9403:'analyses as part of your own certified cost or pricing data submissions for subcontracts expected to exceed the appropriate threshold', 9404:'in far 15.4034. submit the subcontractor certified cost or pricing data and data other than certified cost or pricing data', 9405:'as part of your own certified cost or pricing data as required in paragraph iia2 of this table. these requirements', 9406:'also apply to all subcontractors if required to submit certified cost or pricing data. 1 adequate price competition. provide data', 9407:'showing the degree of competition and the basis for establishing thesource and reasonableness of price for those acquisitionssuch as subcontracts,', 9408:'purchaseorders, material order, etc. exceeding, or expected toexceed, the appropriate threshold set forth at far 15.4034 priced on the basis', 9409:'of adequate price competition. for interorganizational transfers priced at other than thecostof comparable competitivecommercial work of thedivision,subsidiary, oraffiliate of the', 9410:'contractor, explain the pricing methodsee far 31.20526e. 2 all other. obtain certified cost or pricing data from prospective sources for', 9411:'those acquisitions such as subcontracts, purchase orders, material order, etc. exceeding the threshold set forth infar 15.4034 and not otherwise', 9412:'exempt, in accordance with far 15.4031b i.e., adequate price competition, commercial products or commercial services, prices set by law or', 9413:'regulation or waiver. also provide data showing the basis for establishing source and reasonableness of price. in addition, provide a', 9414:'summary of your cost analysis and a copy of certified cost or pricing data submitted by the prospective source in', 9415:'support of each subcontract, or purchase order that is the lower of either $15 million or more, or both more', 9416:'than the pertinent certified cost or pricing data threshold and more than 10 percent of the prime contractors proposed price.', 9417:'also submit any information reasonably required to explain your estimating process including the judgmental factors applied and the mathematical or', 9418:'other methods used in the estimate, including those used in projecting from known data, and the nature and amount of', 9419:'any contingencies included in the price. the contracting officer mayrequire you to submit cost or pricing data in support of', 9420:'proposals in lower amounts. subcontractor certified cost or pricing data must be accurate, complete and current as of the date', 9421:'of final price agreement, or an earlier date agreed upon by the parties, given on the prime contractor’s certificateof current', 9422:'cost or pricing data. the prime contractor isresponsible for updating a prospective subcontractor’s data. for standard commercial products fabricated by', 9423:'theofferor that are generallystocked in inventory, provide a separatecostbreakdown, if priced based on cost. for interorganizationaltransfers priced at cost, provide', 9424:'a separate breakdown of cost elements. analyze the certified cost or pricing data and submit the results of your analysis', 9425:'of the prospective source’s proposal.whensubmission of a prospective source’scertifiedcost or pricing data is required asdescribed in this paragraph,itmust be included', 9426:'as part of yourown certified cost or pricing data. you must also submitanydata other than certified cost or pricing data', 9427:'obtained froma subcontractor, either actually orby specific identification, along with the results of any analysis performed on that data. b.', 9428:'direct labor. provide a timephased e.g., monthly, quarterly, etc. breakdown of labor hours, rates, and cost by appropriate category, and', 9429:'furnish bases for estimates. c. indirect costs. indicate how you have computed and applied your indirect costs, including cost breakdowns.', 9430:'show trends and budgetary data to provide a basis for evaluating the reasonableness of proposed rates. indicate the rates used', 9431:'and provide an appropriate explanation. d. other costs. list all other costs not otherwise included in the categories described above', 9432:'e.g.,special tooling, travel, computer and consultant services, preservation, packaging and packing, spoilage and rework, and federal excise tax on finished', 9433:'articles and provide bases for pricing. e. royalties. if royalties exceed $1,500, you must provide the following information on a', 9434:'separate page for each separate royalty or license fee: 1 name and address oflicensor. 2 date of license agreement. 3', 9435:'patent numbers. subpart 15.4 contract pricing 15.408 4 patent application serial numbers, or other basis on which the royalty is', 9436:'payable. 5 brief description including any part or model numbers of each contract item or component on which the royalty', 9437:'is payable 6 percentage or dollar rate of royalty per unit. 7 unit price of contract item. 8 number of', 9438:'units. 9 total dollar amount ofroyalties. 10 if specifically requested by the contracting officer, a copy of the current licenseagreement', 9439:'and identification of applicable claims of specific patentssee far 27.202 and 31.20537. f. facilities capital cost of money. when you', 9440:'elect to claim facilities capital cost of money as an allowable cost, you must submit formcasbcmf and showthe calculation of', 9441:'theproposed amount see far 31.20510. iii. formats for submission of line item summaries a. new contracts including letter contracts. cost', 9442:'elements 1 proposed contract estimatetotal cost 2 proposed contract estimateunit cost 3 reference 4 column instruction 1 enter appropriate cost', 9443:'elements. 2 enter those necessary and reasonable costs that, in your judgment, will properly be incurred in efficient contract performance.', 9444:'when any of the costs in this column have already been incurred e.g., under a letter contract, describe them on', 9445:'an attached supporting page. when preproduction or startup costs are significant, or when specifically requested to do so by the', 9446:'contracting officer, provide a fullidentification and explanation ofthem. 3 optional,unlessrequiredbythecontractingofficer. 4 identify the attachment in which the information supporting the', 9447:'specific cost element may be found. attachseparate pages asnecessary. b. change orders, modifications, and claims. cost estimated cost net cost', 9448:'net reference elements cost of all of deleted cost to be of work added cost of work deleted work already', 9449:'deleted change performed 1 2 3 4 5 6 7 column instruction 1 enter appropriate cost elements. federal acquisition regulation', 9450:'2 include the current estimates of what the cost would have been to complete the deleted work not yet performed', 9451:'not the original proposal estimates, and the cost of deleted work already performed. 3 include the incurred cost of deleted', 9452:'work already performed, using actuals incurred if possible, or, if actuals are notavailable,estimates from your accounting records. attach a detailed', 9453:'inventory of work, materials, parts, components, and hardware already purchased, manufactured, or performed and deleted by the change, indicating the', 9454:'cost and proposed disposition of each line item. also, if you desire to retain these items or any portion of', 9455:'them, indicate the amount offered for them. 4 enter the net cost to be deleted, which is the estimated cost', 9456:'of all deleted work less the cost of deleted work already performed. column2 minus column3 equals column4. 5 enter your', 9457:'estimate for cost of work added by the change. when nonrecurring costs are significant, or whenspecifically requested to doso bythe', 9458:'contracting officer, provide a full identification and explanation of them. when any of the costs in this column have already', 9459:'been incurred, describe them on an attached supporting schedule. 6 enter the net cost of change, which is the cost', 9460:'of work added, less the net cost to be deleted. column5 minus column4 equals column6. when this result is negative,', 9461:'place the amount in parentheses. 7 identify the attachment in which the information supporting the specific cost element may be', 9462:'found. attachseparate pages asnecessary. c. price revision/redetermination. cutoff number number contract redetermination difference date of units of units to amount', 9463:'proposal completed be completed amount 1 2 3 4 5 6 cost incurred incurred incurred total estimated estimated reference elements', 9464:'costcostcost work incurred cost cost to total cost preproduction completed in progress complete units 7 8 9 10 11 12', 9465:'13 14 use as applicable column instruction 1 enterthecutoffdaterequiredbythecontract,ifapplicable. 2 enter the number of units completed during the period for', 9466:'which experienced costs of production are being submitted. 3 enter the number of units remaining to be completed under the', 9467:'contract. 4 enter the cumulative contract amount. 5 enter your redetermination proposal amount. subpart 15.4 contract pricing 15.408 6 enterthedifferencebetweenthecontractamountandtheredeterminationproposalamount.', 9468:'when this result is negative, place the amount in parentheses. column 4 minus column 5 equals column 6. 7 enter', 9469:'appropriate cost elements. when residual inventory exists, the final costs established under fixedpriceincentive and fixedpriceredeterminable arrangements should be net of', 9470:'thefair market value of such inventory. in support of subcontract costs, submit a listing of all subcontracts subject to repricing', 9471:'action, annotated as to their status. 8 enter all costs incurred under the contract before starting production and other nonrecurring', 9472:'costs usuallyreferred to asstartup costs from your books and records as of the cutoff date. these include such costs as', 9473:'preproduction engineering, special plant rearrangement, training program, and any identifiable nonrecurring costs such as initial rework, spoilage, pilot runs, etc.', 9474:'in the event the amounts are not segregated in or otherwise available from your records, enter in this column your', 9475:'best estimates. explain the basis for each estimate and how the costs are charged on your accountingrecords e.g., included in', 9476:'production costs as direct engineering labor, charged to manufacturing overhead. also showhow the costs would be allocated to the units', 9477:'at their various stages of contract completion. 9 enter in column 9 the production costs from your books and records', 9478:'exclusive of preproduction costs reported in column 8 of the units completed as ofthe cutoff date. 10 enter in column', 9479:'10 the costs of work in process as determined from your records or inventories at the cutoff date. when the', 9480:'amounts for work in process are not available in your records but reliable estimates for them can be made, enter', 9481:'the estimated amounts in column 10andenter in column 9 the differencesbetween the total incurred costs exclusive of preproduction costs asof', 9482:'the cutoff date and these estimates. explain the basis for the estimates, including identification of any provision for experienced or', 9483:'anticipated allowances, such as shrinkage, rework, design changes, etc. furnish experienced unit or lot costs or labor hours from inception', 9484:'of contractto thecutoff date, improvement curves, and any other available production cost history pertaining to the items to which your', 9485:'proposal relates. 11 entertotalincurredcoststotalofcolumns8,9,and10. 12 enter those necessary and reasonable costs that in your judgment will properly be incurred in', 9486:'completing the remaining work to be performed under the contract with respect to the items to which your proposal relates.', 9487:'13 entertotalestimatedcosttotalofcolumns11and12. 14 identify the attachment in which the information supporting the specific cost element may be found. attachseparate pages', 9488:'asnecessary. this page intentionally left blank. 15.428 subpart 15.5 preaward, award, and postaward notifications, protests, and mistakes 15.504 subpart 15.5', 9489:'preaward, award, and postaward notifications, protests, and mistakes 15.501definition. day, as used in this subpart, has the meaning set forth', 9490:'at 33.101. 15.502 applicability. this subpart applies to competitive proposals, as described in 6.102b, and a combination of competitive procedures,', 9491:'as described in 6.102c. the procedures in 15.504,15.506,15.507,15.508, and 15.509, with reasonable modification, should be followed for sole source acquisitions', 9492:'and acquisitions described in 6.102d1 and 2. 15.503 notifications tounsuccessfulofferors. a preaward notices 1 preaward notices of exclusion from competitive', 9493:'range. the contracting officer shall notify offerors promptly in writing when their proposals are excludedfrom the competitiverange orotherwise eliminated from', 9494:'the competition. the notice shall state the basis for the determination and that a proposal revision will not be considered.', 9495:'2 preaward notices for small business programs. i in addition to the notice in paragraph a1 of this section, the', 9496:'contracting officershallnotify eachofferor in writing prior to awardand upon completionof negotiationsanddeterminations of responsibility a when using a small business setaside', 9497:'see subpart 19.5; b when using the hubzone procedures in 19.1305 or 19.1307; c when using the servicedisabled veteranowned small', 9498:'business procedures in 19.1405; or dwhen usingthe womenowned small business program procedures in 19.1505. ii the notice shall state athe', 9499:'name and addressof the apparentlysuccessfulofferor; b that the government will not consider subsequent revisions of the offeror’s proposal; and c', 9500:'that no response is required unless a basis exists to challenge the size status or small business status of the', 9501:'apparently successful offeror e.g., small business concern, small disadvantaged business concern, hubzone small business concern, servicedisabled veteranowned small business concern,', 9502:'economically disadvantaged womenowned small business concern, orwomenowned small businessconcern eligible under the womenowned small business program. iii the notice is', 9503:'not required when the contracting officer determines in writing thatthe urgency of the requirement necessitates award without delay or when', 9504:'the contract is entered into under the 8a program see 19.8052. b postaward notices. 1 within 3 days after the', 9505:'date of contract award, the contracting officer shall provide written notificationto each offeror whose proposal was in the competitive range', 9506:'but was not selected for award 10 u.s.c. 3304 and 41 u.s.c. 3704 or had not been previously notified under', 9507:'paragraph a of this section. the notice shall include ithe number of offerors solicited; ii the number of proposals received;', 9508:'iii the name and address of each offeror receiving an award; iv the items, quantities, and any stated unit prices', 9509:'of each award. if the number of items or other factors makes listing any stated unit prices impracticableat that time,', 9510:'only the totalcontract priceneedbe furnished in the notice. however, the items, quantities, and any stated unit prices of each award', 9511:'shall be made publicly available, upon request; and v in general terms, the reasons the offeror’s proposal was not accepted,', 9512:'unless the priceinformationin paragraph b1ivof this section readily reveals the reason. inno event shall an offeror’scost breakdown, profit, overhead rates,trade', 9513:'secrets, manufacturingprocesses andtechniques, or other confidential business information be disclosed to any other offeror. 2 upon request, the contracting officer', 9514:'shall furnish the information described in paragraphb1 of this sectionto unsuccessfulofferorsinsolicitationsusingsimplifiedacquisitionproceduresin part 13. 3 upon request, the contracting officer shall', 9515:'provide the information in paragraph b1 ofthissection to unsuccessful offerors that received a preaward notice of exclusion from thecompetitive range.', 9516:'15.504 award to successfulofferor. the contractingofficer shall award a contractto the successful offeror by furnishing the executed contractor other notice', 9517:'of the award to that offeror. a if the award documentincludes information that is differentthan the latestsigned proposal, asamended by', 9518:'the offeror’s written correspondence, both theofferor and the contracting officer shall sign the contract award. federal acquisition regulation b when', 9519:'an award is made to an offeror for less than all of the items thatmay be awarded and additional items', 9520:'are being withheld for subsequent award, each notice shall state that the government may make subsequent awards on those additional', 9521:'items within the proposal acceptance period. c if the optional form of307, contractaward, standard form sf 26,award/contract, or sf 33,', 9522:'solicitation, offer and award, is notused toaward the contract, thefirst page of the award documentshallcontain the government’sacceptance statement fromblock 15', 9523:'ofthat form, exclusive of the item 3reference language, and shall contain the contracting officer’s name, signature, and date. in addition,', 9524:'ifthe award documentincludes information that isdifferentthan the signed proposal, as amendedby the offeror’swritten correspondence, the first page shall includethe contractor’s', 9525:'agreement statement from block14 of the of 307 and thesignatureof the contractor’s authorized representative. 15.505 preaward debriefing of offerors. offerorsexcluded', 9526:'from the competitive rangeor otherwise excluded from the competition before award may requesta debriefing before award 10 u.s.c. 3305 and', 9527:'41 u.s.c. 3705. a 1theofferormayrequestapreawarddebriefingbysubmittingawrittenrequestfordebriefingtothecontracting officer within 3 days after receipt ofthe notice of exclusion from thecompetition. 2 at the', 9528:'offeror’s request, this debriefing may be delayed until after award. if the debriefing is delayed until after award, it shall', 9529:'include all information normally provided in a postaward debriefing see 15.506d. debriefings delayed pursuant to this paragraph could affect the', 9530:'timeliness of any protest filedsubsequent to thedebriefing. 3 if the offerordoes not submit atimely request, theofferor need not be giveneither', 9531:'apreaward or a postaward debriefing. offerors are entitled to no more than one debriefing for each proposal. b the contractingofficer', 9532:'shall make everyeffort to debrief theunsuccessful offeror assoon as practicable,but may refuse the request for a debriefing if, for compelling', 9533:'reasons, it is not in the best interests of the government to conduct a debriefing at that time. the rationale', 9534:'for delaying the debriefing shall be documented in the contract file. if the contracting officer delays the debriefing, it shall', 9535:'beprovided nolater than the timepostawarddebriefings are provided under 15.506. in that event,the contracting officershallinclude the information at 15.506d in the', 9536:'debriefing. c debriefings may be doneorally, in writing, or by any other method acceptable to the contracting officer. d the', 9537:'contractingofficer should normally chair any debriefing session held. individuals who conducted the evaluations shall provide support. e at a minimum,', 9538:'preaward debriefings shall include 1 the agency’sevaluation of significant elements inthe offeror’s proposal; 2 a summary of therationaleforeliminating the offeror', 9539:'from the competition; and 3 reasonable responses to relevant questions about whether source selection procedures contained in the solicitation, applicable', 9540:'regulations, andother applicable authorities were followed in the process of eliminatingthe offerorfrom the competition. f preaward debriefings shall not disclose', 9541:'1 the numberof offerors; 2 the identity of otherofferors; 3 the content of other offerors’ proposals; 4 the rankingof other', 9542:'offerors; 5 the evaluation of other offerors; or 6 any of the information prohibited in 15.506e. g an official summary', 9543:'of the debriefing shall be included in the contract file. 15.506 postaward debriefingof offerors. a 1anofferor,uponitswrittenrequestreceivedbytheagencywithin3daysafterthedateonwhichthatofferor has received notification of', 9544:'contract award in accordance with 15.503b, shall be debriefed and furnished the basis for the selection decision and contract award.', 9545:'2 to the maximumextent practicable, the debriefing should occurwithin 5 days after receiptof the written request. offerorsthat requested a postaward', 9546:'debriefing in lieu of a preawarddebriefing, or whose debriefing was delayed for compelling reasons beyond contract award, also should be', 9547:'debriefed within this time period. 3 an offeror that was notified of exclusion from the competition see 15.505a, but failed', 9548:'to submit a timely request, is not entitled to a debriefing. 4 i untimely debriefing requests may be accommodated. subpart', 9549:'15.5 preaward, award, and postaward notifications, protests, and mistakes 15.509 ii government accommodation of a request for delayed debriefing pursuant', 9550:'to 15.505a2, or any untimely debriefing request, does not automatically extend the deadlines for filing protests. debriefings delayed pursuant to', 9551:'15.505a 2 could affectthe timeliness ofany protest filed subsequent to the debriefing. b debriefings of successful and unsuccessful offerors may', 9552:'be done orally,in writing, orby any other method acceptable to the contracting officer. c thecontracting officer should normally chairany debriefing', 9553:'session held. individualswho conducted the evaluations shall provide support. d at a minimum, the debriefing information shall include 1 the', 9554:'government’s evaluationof the significant weaknesses or deficiencies in the offeror’s proposal, ifapplicable; 2 the overall evaluated cost or price including', 9555:'unit prices and technical rating, if applicable, of the successful offeror and the debriefed offeror,andpastperformance information on thedebriefed offeror; 3', 9556:'the overall rankingof all offerors,when any ranking was developed bythe agency during thesource selection; 4 a summary of the rationale', 9557:'for award; 5 for acquisitions of commercial products, the make and model of the product to be delivered by the', 9558:'successful offeror; and 6 reasonable responses to relevant questions about whether source selection procedures contained in the solicitation, applicable regulations,', 9559:'and other applicable authorities were followed. e thedebriefingshallnot include pointbypoint comparisons of the debriefed offeror’sproposal with those of other offerors.', 9560:'moreover, the debriefing shall not revealanyinformationprohibitedfrom disclosure by 24.202 or exempt from release under the freedom of information act 5', 9561:'u.s.c. 552 including 1 trade secrets; 2 privileged or confidential manufacturing processes and techniques; 3 commercial and financial information that', 9562:'is privileged or confidential, including cost breakdowns, profit, indirect cost rates, and similar information; and 4 the names of individuals', 9563:'providing reference information about an offeror’s past performance. f an official summary of the debriefing shall be included in the', 9564:'contract file. 15.507 protests againstaward. a protests against award in negotiated acquisitions shall be handled in accordance with part 33.', 9565:'use of agency protest procedures that incorporate the alternative dispute resolution provisions of executive order12979 is encouraged for both preaward', 9566:'and postaward protests. b if a protestcauses the agency, within 1 year of contractaward,to 1 issue a new solicitation on', 9567:'the protested contractaward,the contracting officershallprovide the information in paragraph c of this section toallprospective offerors for thenew solicitation; or 2', 9568:'issue a new request for revised proposals on the protested contractaward,the contracting officershallprovide the information inparagraph cof this sectionto offerors', 9569:'that were in the competitive range and are requested to submit revised proposals. c the following information will be provided', 9570:'to appropriate parties: 1 information providedto unsuccessfulofferorsin any debriefingsconductedon the original award regarding the successful offeror’s proposal; and 2 othernonproprietary', 9571:'information that would have been provided to the originalofferors. 15.508discovery of mistakes. mistakesin a contractor’s proposal that are disclosed after', 9572:'awardshallbe processed substantially in accordance with the procedures for mistakes in bids at 14.4074. 15.509forms. optional formof 307, contractaward, standard', 9573:'form sf 26, award/contract, or sf 33,solicitation, offerand award, may be used toaward negotiated contractsin which the signature of both', 9574:'parties on a single documentis appropriate. notehowever,ifusingthe sf 26 for a negotiated procurement, block 18 is not to be used.', 9575:'if these forms are not used, the award document shall incorporate the agreement and award language from the of 307.', 9576:'this page intentionally left blank. 15.54 subpart 15.6 unsolicited proposals 15.604 subpart 15.6 unsolicited proposals 15.600scope of subpart. this subpart', 9577:'sets forth policies and procedures concerning the submission, receipt, evaluation, and acceptance or rejection of unsolicited proposals. 15.601definitions. as used', 9578:'in this subpart advertising material means material designed to acquaintthe government with a prospective contractor’s present products,services, orpotentialcapabilities, or designed', 9579:'to stimulatethe government’s interestin buying such productsor services. commercial product or commercial service offer means an offer of a commercial', 9580:'product orcommercial servicethat the vendor wishes to see introduced in the governments supply system as an alternate or a replacement', 9581:'for an existing supply item. this term does not include innovative or unique configurations or uses of commercial products or', 9582:'commercial services that are being offered for further development and thatmay be submitted asan unsolicited proposal. contribution means a concept,', 9583:'suggestion, or idea presented to the government for its use with no indication that the source intendsto devote any further', 9584:'effort to it on the government’sbehalf. 15.602 policy. it is the policy of the government to encourage the submission of', 9585:'new and innovative ideas in response to broad agency announcements, small business innovationresearch topics, small business technologytransferresearch topics, program research', 9586:'and development announcements, or any other governmentinitiated solicitation or program. when the new and innovative ideas do not fall under', 9587:'topic areas publicized under those programs or techniques, the ideas may be submitted as unsolicited proposals. 15.603general. a unsolicited proposals', 9588:'allow unique and innovative ideas or approaches that have been developed outside the government to be made available to government', 9589:'agencies for use in accomplishment of their missions. unsolicited proposals areoffered with theintent thatthe government will enterinto acontract with the', 9590:'offeror for research anddevelopment or other efforts supporting the government mission, and often represent a substantial investment of time and', 9591:'effort by the offeror. b advertising material, commercial product or commercial service offers, or contributions, as defined in 15.601, or', 9592:'routine correspondence on technical issues, are not unsolicited proposals. c a valid unsolicited proposal must 1 be innovative and unique;', 9593:'2 be independently originated and developed by the offeror; 3 be prepared without government supervision, endorsement, direction, or direct government', 9594:'involvement; 4 includesufficient detail to permita determination that government support couldbe worthwhile and the proposed work could benefit the agency’sresearch', 9595:'and developmentor other mission responsibilities; 5 not be an advance proposal for a known agency requirement that can be acquired', 9596:'by competitive methods; and 6 not address a previously published agency requirement. d unsolicited proposals in response to a publicized', 9597:'general statement of agency needs are considered to be independently originated. e agencies must evaluate unsolicited proposals for energy savings', 9598:'performance contracts in accordance with the procedures in 10 cfr436.33b. 15.604agency points of contact. a preliminary contact with agency technical', 9599:'or other appropriate personnel before preparing a detailed unsolicited proposal or submitting proprietary information to the government may save considerable', 9600:'time and effort for both parties see 15.201. agencies must make available to potential offerors of unsolicited proposals at least', 9601:'the following information: 1 definition see 2.101 and content see 15.605 of an unsolicited proposal acceptable for formal evaluation. 2', 9602:'requirements concerning responsible prospective contractors see subpart 9.1,andorganizationalconflictsof interest see subpart 9.5. federal acquisition regulation 3 guidance on preferred methods', 9603:'for submitting ideas/concepts to the government, such as any agency: upcoming solicitations; broadagency announcements; small business innovation research programs; small', 9604:'business technology transfer research programs; program research and development announcements; orgrantprograms. 4 agency points of contact for information regarding advertising,', 9605:'contributions, and other types of transactions similar to unsolicited proposals. 5 information sources on agency objectives and areas of potential', 9606:'interest. 6 procedures for submission and evaluation of unsolicited proposals. 7 instructions for identifying and marking proprietary information so that', 9607:'it is protected and restrictive legends conform to 15.609. b onlythe cognizant contracting officer has the authorityto bind thegovernment regardingunsolicited', 9608:'proposals. 15.605 content of unsolicited proposals. unsolicited proposals should contain the following information to permit consideration in an objective and', 9609:'timely manner: a basic information including 1 offeror’s name and addressand type of organization; e.g., profit, nonprofit, educational, small business;', 9610:'2 names and telephone numbers of technical and business personnel to be contacted for evaluation or negotiation purposes; 3 identification', 9611:'of proprietary data to be used only for evaluation purposes; 4 names of other federal,state,or local agenciesor partiesreceiving theproposal or', 9612:'funding the proposed effort; 5 date of submission; and 6 signature of a person authorized to representand contractually obligate the', 9613:'offeror. b technical information including 1 concise title and abstract approximately 200 words ofthe proposed effort; 2 a reasonablycomplete discussion', 9614:'stating theobjectives of theeffort or activity, the method of approach and extent of effortto beemployed,the nature and extent of the', 9615:'anticipated results, and the manner in which the work willhelp to support accomplishment of the agency’s mission; 3 names and', 9616:'biographical information on the offeror’s key personnelwho would be involved,including alternates; and 4 type ofsupport needed fromthe agency; e.g., government', 9617:'property or personnel resources. c supporting information including 1 proposed price or total estimated cost for the effort in sufficient', 9618:'detail for meaningful evaluation; 2 period of time for which the proposal is valid a 6month minimum is suggested; 3', 9619:'type ofcontract preferred; 4 proposed duration ofeffort; 5 brief description of the organization, previous experience, relevant past performance,andfacilities to be', 9620:'used; 6 otherstatements, if applicable, aboutorganizational conflicts ofinterest, securityclearances,and environmental impacts; and 7 the names and telephone numbers of agency', 9621:'technical or other agency points of contact already contacted regarding the proposal. 15.606 agencyprocedures. a agencies shall establish procedures for', 9622:'controlling the receipt, evaluation, and timely disposition of unsolicited proposals consistent with the requirements of this subpart. the procedures shall', 9623:'include controls on the reproduction and disposition of proposal material,particularly data identified by the offeror assubject to duplication, use,or disclosure', 9624:'restrictions. b agencies shall establish agency points of contact see 15.604 to coordinate the receipt and handling of unsolicited proposals.', 9625:'15.6061receipt andinitialreview. a before initiating a comprehensive evaluation, the agency contact point shall determine if the proposal 1 is a', 9626:'valid unsolicited proposal, meeting the requirements of 15.603c; 2 is suitable for submission in response to an existing agency requirement', 9627:'see 15.602; 3 is related to the agency mission; subpart 15.6 unsolicited proposals 15.608 4 contains sufficienttechnical informationand costrelated or', 9628:'pricerelated information for evaluation; 5 has overall scientific, technical, or socioeconomic merit; 6 has been approved by a responsible official', 9629:'or other representativeauthorized to obligate the offeror contractually; and 7 complies with the marking requirements of 15.609. b if the', 9630:'proposal meets these requirements, the contact point shall promptly acknowledge receipt and process the proposal. c if a proposal is', 9631:'rejected because the proposal does not meet the requirements of paragraph a of this subsection, the agency contact point shall', 9632:'promptly inform the offerorof the reasons for rejection in writing and of theproposed disposition of the unsolicited proposal. 15.6062 evaluation.', 9633:'a comprehensive evaluations shall be coordinated by the agency contact point, who shall attach or imprint on each unsolicited proposal,', 9634:'circulated for evaluation, the legend required by 15.609d. when performing a comprehensive evaluation of an unsolicited proposal, evaluators shall consider', 9635:'the following factors, in addition to any others appropriate for the particular proposal: 1 unique, innovative, and meritorious methods, approaches,', 9636:'or concepts demonstrated by the proposal; 2 overall scientific, technical, or socioeconomic merits of the proposal; 3 potential contributionof the', 9637:'effortto the agency’s specific mission; 4 the offeror’scapabilities, related experience, facilities, techniques, or unique combinations of these that are integral', 9638:'factors for achieving the proposal objectives; 5 the qualifications, capabilities,andexperience of theproposed principalinvestigator, team leader, or key personnel critical to', 9639:'achieving the proposal objectives; and 6 the realism of the proposed cost. b the evaluators shall notify the agency point', 9640:'of contact of their recommendations when the evaluation is completed. 15.607 criteria foracceptance and negotiation of an unsolicitedproposal. a a', 9641:'favorable comprehensive evaluation of an unsolicited proposal does not, in itself, justify awarding a contract without providing for full and', 9642:'open competition. theagency point of contactshallreturn anunsolicited proposal to the offeror,citing reasons, when its substance 1 is available to the', 9643:'government without restriction from another source; 2 closely resembles a pending competitive acquisition requirement; 3 does not relate to the', 9644:'activity’s mission; or 4 does not demonstrate an innovative and unique method, approach, or concept, or is otherwise not deemed', 9645:'a meritorious proposal. b the contractingofficer may commence negotiations on a sole source basis only when 1 an unsolicited proposal', 9646:'has received a favorable comprehensive evaluation; 2 a justification and approval has been obtained see 6.3021a2i for research proposals or', 9647:'other appropriate provisions of subpart 6.3, and 6.3032c; 3 the agency technical office sponsoring the contract furnishes the necessary funds;', 9648:'and 4thecontractingofficerhascompliedwiththesynopsisrequirementsof subpart 5.2. 15.608 prohibitions. a government personnel shall not use any data, concept, idea, or other part of', 9649:'an unsolicited proposal as the basis, or part of the basis, for a solicitation orin negotiations with any other firm', 9650:'unless the offeror is notified of and agrees to the intended use. however, this prohibition does not precludeusing any data,', 9651:'concept, or idea in the proposal that alsois available from another source without restriction. b government personnel shall not disclose', 9652:'restrictively marked information see 3.104 and 15.609 included in an unsolicited proposal. the disclosure of such information concerning trade secrets,', 9653:'processes, operations, style of work, apparatus, and other matters, except asauthorized by law, mayresult in criminal penaltiesunder 18 u.s.c. 1905.', 9654:'federal acquisition regulation 15.609limited use of data. a an unsolicited proposal may include data that the offeror does notwant disclosed', 9655:'tothe public for any purposeor used by the government except for evaluation purposes. ifthe offerorwishes to restrictthe data, the title', 9656:'page mustbe marked with the following legend: use and disclosure of data this proposal includes data that shall not be', 9657:'disclosed outside the government and shall not be duplicated, used, or disclosedin wholeor in partforany purpose other than to evaluate', 9658:'this proposal. however, if acontract is awardedto this offeror as aresult ofor in connection withthe submission ofthese data, the government', 9659:'shall have the right to duplicate, use, or disclose the data to the extent provided in the resulting contract. this', 9660:'restriction does not limit the governments right to use information contained in these data if they are obtained from another', 9661:'source without restriction. the data subject to this restriction are contained in sheets [insert numbers or other identification of sheets].', 9662:'b the offeror shall also mark each sheet of dataitwishes torestrict with the following legend: useor disclosure ofdata contained on', 9663:'this sheet is subject to the restriction on the title page of this proposal. c theagency point of contactshallreturn to', 9664:'the offeror any unsolicited proposal marked with a legenddifferent from that provided in paragraph a of this section. the return', 9665:'letter will state that the proposal cannot be considered because it is impracticable for the government to comply with the', 9666:'legend and that the agency will consider the proposal if it is resubmitted with the proper legend. d the agency', 9667:'point of contact shall placea cover sheet on theproposal orclearly markitas follows, unless the offeror clearly states in writing that', 9668:'no restrictions are imposed on the disclosure or use of the data contained in the proposal: unsolicited proposaluse of data', 9669:'limited all government personnel must exercise extreme care to ensure that the information in this proposal is not disclosed to', 9670:'anindividual who has not been authorizedaccess to such data in accordance with far 3.104, and is not duplicated, used, or', 9671:'disclosed in whole or in part for any purpose other than evaluation of the proposal, without the written permission of', 9672:'the offeror. if a contract is awarded on the basis of this proposal, the terms of the contract shall control', 9673:'disclosure and use. this notice does not limit the governments right to use information contained in the proposal if it', 9674:'is obtainable from another source without restriction. this is a government notice, and shall not by itself be construed to', 9675:'impose any liability upon the government or government personnel for disclosure or use of data contained in this proposal. e', 9676:'use the notice in paragraph d of this section solely as a manner of handling unsolicited proposals that will be', 9677:'compatible withthissubpart. however, do not use this noticeto justify withholding of a record, orto improperly deny the public access to', 9678:'a record, where an obligation is imposed by the freedom of information act 5 u.s.c. 552. an offeror should identify', 9679:'tradesecrets, commercial orfinancial information, and privilegedor confidential information to the government see paragraph a of this section. f when an', 9680:'agency receives an unsolicited proposal without any restrictive legend from an educational or nonprofit organizationor institution, and anevaluation outside the', 9681:'government is necessary, the agency point ofcontactshall 1 attach a cover sheet clearly marked with the legend in paragraph d', 9682:'of this section; 2 change the beginning of this legend to read all government and nongovernment personnel ; and 3', 9683:'require any nongovernment evaluator to agree in writing that data in the proposal will not be disclosed to others outside', 9684:'the government. g if the proposal is received with the restrictive legend see paragraph a of this section, the modified', 9685:'cover sheet shall also be used and permission shall be obtained from the offeror beforerelease ofthe proposal for evaluation by', 9686:'non government personnel. h when an agency receives an unsolicited proposal with or without a restrictive legend from other than', 9687:'an educational or nonprofit organization orinstitution, and evaluation bygovernment personnel outsidethe agency or by experts outside of the government isnecessary,', 9688:'written permission must be obtained from the offeror before release of the proposal for evaluation. the agency point of contact', 9689:'shall 1 clearly mark the cover sheet with the legend in paragraph d or as modified in paragraph f of', 9690:'this section; and 2 obtain a written agreement from any nongovernment evaluator stating that data in the proposal will not', 9691:'be disclosed to persons outside the government. part 16 types of contracts sec. 16.000 scope of part. 16.001 definitions. subpart', 9692:'16.1 selecting contract types 16.101 general. 16.102 policies. 16.103 negotiating contract type. 16.104 factors in selecting contract types. 16.105 solicitation', 9693:'provision. subpart 16.2 fixedprice contracts 16.201 general. 16.202 firmfixedprice contracts. 16.2021 description. 16.2022 application. 16.203 fixedprice contracts with economic price', 9694:'adjustment. 16.2031 description. 16.2032 application. 16.2033 limitations. 16.2034 contract clauses. 16.204 fixedprice incentive contracts. 16.205 fixedprice contracts with prospective price', 9695:'redetermination. 16.2051 description. 16.2052 application. 16.2053 limitations. 16.2054 contract clause. 16.206 fixedceilingprice contracts with retroactive price redetermination. 16.2061 description. 16.2062', 9696:'application. 16.2063 limitations. 16.2064 contract clause. 16.207 firmfixedprice,levelofeffortterm contracts. 16.2071 description. 16.2072 application. 16.2073 limitations. subpart 16.3 costreimbursement contracts 16.301', 9697:'general. 16.3011 description. 16.3012 application. 16.3013 limitations. 16.302 cost contracts. 16.303 costsharing contracts. 16.304 costplusincentivefee contracts. 16.305 costplusawardfee contracts. 16.306', 9698:'costplusfixedfee contracts. 16.307 contract clauses. subpart 16.4 incentive contracts 16.401 general. 16.402 application of predetermined, formulatype incentives. 16.4021 cost incentives.', 9699:'16.4022 performance incentives. 16.4023 delivery incentives. 16.4024 structuring multipleincentive contracts. 16.403 fixedprice incentive contracts. 16.4031 fixedpriceincentivefirmtargetcontracts. 16.4032 fixedpriceincentivesuccessivetargets contracts. 16.404', 9700:'fixedprice contracts with award fees. 16.405 costreimbursement incentive contracts. 16.4051 costplusincentivefee contracts. 16.4052 costplusawardfee contracts. 16.406 contract clauses. subpart 16.5', 9701:'indefinitedelivery contracts 16.500 scope of subpart. 16.501 [reserved] 16.5011 definitions. 16.5012 general. 16.502 definitequantity contracts. 16.503 requirements contracts. 16.504 indefinitequantity', 9702:'contracts. 16.505 ordering. 16.506 solicitation provisions and contract clauses. subpart 16.6 timeandmaterials, laborhour, and lettercontracts 16.600 scope. 16.601 timeandmaterials contracts.', 9703:'16.602 laborhour contracts. 16.603 letter contracts. 16.6031 description. 16.6032 application. 16.6033 limitations. 16.6034 contract clauses. subpart 16.7 agreements 16.701 scope.', 9704:'16.702 basic agreements. 16.703 basic ordering agreements. this page intentionally left blank. subpart 16.1 selecting contract types 16.103 16.000scope of', 9705:'part. this part describes types of contracts that may be used in acquisitions. it prescribes policies and procedures and provides', 9706:'guidance for selecting a contract type appropriate to the circumstances of the acquisition. 16.001definitions. as used in this part awardfee', 9707:'board means the team of individuals identified in the awardfee plan who have been designated to assist the feedeterminingofficial in', 9708:'making awardfee determinations. established price means a price that— 1 is an established catalog or market price for a commercial', 9709:'product sold in substantial quantities to the general public; and 2 is thenet price afterapplying any standard trade discounts offered', 9710:'by the contractor. feedetermining official fdo means the designatedagency officials who reviews the recommendations of the awardfee board in determining', 9711:'the amount of awardfee tobe earnedby the contractorforeach evaluation period. rollover of unearned award fee means the process of transferring', 9712:'unearned award fee, which the contractor had an opportunity to earn, from one evaluation period to a subsequent evaluation period,', 9713:'thus allowing the contractor an additional opportunity to earn that previously unearned award fee. subpart 16.1 selecting contract types 16.101general.', 9714:'a a wide selection of contract types is available to the government and contractors in order to provide needed flexibility', 9715:'in acquiring the large variety and volume of supplies and services required by agencies. contract types vary according to 1', 9716:'the degree and timing of the responsibility assumed by the contractor for the costs of performance; and 2 the amount', 9717:'and nature of theprofit incentive offered tothe contractor for achieving or exceeding specified standards or goals. b the contract types', 9718:'are grouped into two broad categories: fixedprice contracts see subpart 16.2 and cost reimbursement contracts see subpart 16.3. the specific', 9719:'contract types range from firmfixedprice, in which the contractor has full responsibility for the performance costs and resulting profit or', 9720:'loss, to costplusfixedfee, in which the contractor has minimal responsibility for the performance costs and the negotiated fee profit is', 9721:'fixed. in between are the various incentive contracts see subpart 16.4,inwhichthecontractor’sresponsibilityfortheperformancecostsandtheprofitorfee incentives offered aretailoredto theuncertaintiesinvolved in contract performance. 16.102policies. a', 9722:'contracts resulting from sealed bidding shall be firmfixedprice contracts or fixedprice contracts with economic price adjustment. b contracts negotiated under', 9723:'part 15maybeofanytypeorcombinationoftypesthatwillpromotethegovernment’s interest, except as restricted in this part see 10 u.s.c. 3321a and 41 u.s.c. 3901. contract types not', 9724:'described in this regulation shall not be used, except as a deviation under subpart 1.4. c the costplusapercentageofcost system of', 9725:'contracting shall not be used see 10 u.s.c. 3322a and 41 u.s.c. 3905a. prime contracts including letter contracts other than', 9726:'firmfixedprice contracts shall, by an appropriate clause, prohibit costplusapercentageofcost subcontracts see clauses prescribed in subpart 44.2 for costreimbursement contracts and', 9727:'subparts 16.2 and 16.4 for fixedprice contracts. d no contractmay be awarded beforethe execution of any determination and findings d&f’s', 9728:'required by this part. minimum requirements for the content of d&f’s required by this part are specified in 1.704. 16.103negotiating', 9729:'contract type. a selecting the contract type is generally a matter for negotiation and requires the exercise of sound judgment.', 9730:'negotiating the contract type andnegotiating prices are closely relatedand should be consideredtogether. the objectiveis to negotiate a contract type and', 9731:'price or estimated cost and fee that will result in reasonable contractor risk and provide the contractor with the greatest', 9732:'incentive for efficientand economical performance. b a firmfixedprice contract, which best utilizes the basic profit motive of business enterprise, shall', 9733:'be used when the risk involved is minimalor can bepredicted with an acceptable degree of certainty. however, when a reasonable', 9734:'basis for federal acquisition regulation firm pricing does not exist, other contract types should be considered, and negotiations should be', 9735:'directed toward selecting a contract type or combination of types that will appropriately tie profit to contractor performance. c in', 9736:'the course of an acquisition program, a series of contracts, or a single longterm contract, changing circumstances may make a', 9737:'different contract type appropriate inlater periods than that used at the outset. in particular,contracting officers should avoid protracted use of', 9738:'a costreimbursement or timeandmaterials contract after experience provides a basis for firmer pricing. d 1 each contract file shall include', 9739:'documentation to show why the particular contract type was selected. this shall be documented in the acquisition plan, or in', 9740:'the contract file if a written acquisition plan is not required by agency procedures. i explain why the contract type', 9741:'selected must be used to meet the agency need. iidiscussthe government’s additional risksandthe burden to managethe contract type selected e.g.,', 9742:'when a costreimbursement contract is selected, the government incurs additional cost risks, and the government has the additional burden ofmanaging', 9743:'the contractor’s costs. forsuch instances, acquisition personnelshalldiscuss– a how the government identified the additional risks e.g., preaward survey,or past performance', 9744:'information; b the nature of the additional risks e.g., inadequatecontractor’saccountingsystem,weaknesses in contractors internal control, noncompliance with cost accounting standards, or', 9745:'lack of or inadequate earned value management system; and c how the government will manage and mitigate the risks. iii', 9746:'discussthe government resources necessary to properly planfor, award, and administer the contract type selected e.g., resources needed and the additional', 9747:'risks to the government if adequate resources are not provided. iv for other than a firmfixed price contract, at a', 9748:'minimum the documentation should include– a an analysis of why the use of other than a firmfixedprice contract e.g., cost', 9749:'reimbursement, time and materials, labor hour is appropriate; b rationale that detail the particular facts and circumstances e.g., complexity of', 9750:'the requirements, uncertain duration of the work, contractor’s technical capability and financial responsibility,or adequacy of the contractor’s accounting system, and', 9751:'associated reasoning essential to support the contract type selection; c anassessment regarding the adequacy of government resourcesthat arenecessary toproperlyplan for,', 9752:'award, and administer other than firmfixedprice contracts; and d a discussion of the actions planned to minimize the use of', 9753:'other than firmfixedprice contracts on future acquisitions for the same requirement and to transition to firmfixedprice contracts to the maximum', 9754:'extent practicable. v a discussion of whya levelofeffort, price redetermination, or fee provision was included. 2 exceptions to the requirements', 9755:'at d1 of this section are– i fixedprice acquisitions made under simplified acquisition procedures; ii contracts on a firmfixedprice basis', 9756:'other than those for major systems or research and development; and iii awards on the setaside portion of sealed bid', 9757:'partial setasides for small business. 16.104factors in selecting contract types. there are many factorsthat the contracting officer should consider inselecting', 9758:'and negotiatingthe contract type. they include the following: a price competition. normally, effective price competition resultsin realistic pricing, and afixedpricecontract', 9759:'is ordinarily in the government’s interest. b price analysis. price analysis, with or without competition, may provide a basis for', 9760:'selecting the contract type. the degree to which price analysis can provide a realistic pricing standard should be carefully considered.', 9761:'see 15.4041b. c cost analysis. in the absence of effective price competitionand if priceanalysisis not sufficient,the cost estimates of the', 9762:'offeror andthe government provide the bases for negotiating contract pricing arrangements. itis essential that the uncertainties involved in performance and', 9763:'their possible impact upon costs be identified and evaluated, so that a contract type that places a reasonable degree of', 9764:'cost responsibility upon the contractor can be negotiated. d type and complexity of the requirement. complex requirements, particularly those unique', 9765:'to the government, usually result in greater risk assumption by the government. this is especially true for complex research and', 9766:'development contracts, when performance uncertainties or thelikelihood of changes makes it difficult to estimate performance costsin advance. as a requirement', 9767:'recurs or asquantity production begins, the cost risk should shift tothe contractor, and afixedpricecontract should be considered. subpart 16.1 selecting', 9768:'contract types 16.105 e combining contract types. ifthe entire contract cannot be firmfixedprice, the contracting officer shall consider whether or', 9769:'not a portion of the contract can be established on a firmfixedprice basis. f urgency of the requirement. if urgency', 9770:'is a primaryfactor, the governmentmay choose to assume a greater proportion of risk or it mayoffer incentives tailored toperformance outcomes', 9771:'toensure timely contract performance. g period of performance or length of production run.in times of economicuncertainty, contractsextending overa relatively long', 9772:'period may require economic price adjustment or price redetermination clauses. h contractor’s technical capability and financial responsibility. i adequacy of', 9773:'the contractors accounting system. before agreeing on a contract type other than firmfixedprice, the contracting officershallensure that the contractor’s accounting', 9774:'system will permit timelydevelopment of allnecessary cost data in the form required by the proposed contract type. this factor may', 9775:'be critical– 1 when the contract type requires price revision while performance is in progress; or 2 when a costreimbursement', 9776:'contract is being considered and all current or past experience with the contractor has been on a fixedprice basis. see', 9777:'42.302a12. j concurrent contracts. if performance under the proposed contract involves concurrent operations under other contracts, the impact of those', 9778:'contracts, including their pricing arrangements, should be considered. k extent and nature of proposed subcontracting. if the contractor proposes extensive', 9779:'subcontracting, a contract type reflecting the actual risks to the prime contractor should be selected. l acquisition history. contractor risk', 9780:'usually decreases as the requirement is repetitively acquired. also, product descriptions ordescriptions of services to be performedcan be defined more', 9781:'clearly. 16.105 solicitation provision. the contractingofficer shall completeand insert the provision at 52.2161,type of contract, in asolicitation unless it is', 9782:'for a a fixedprice acquisition made under simplified acquisition procedures; or b information or planning purposes. this page intentionally left', 9783:'blank. 16.14 subpart 16.2 fixedprice contracts 16.2032 subpart 16.2 fixedprice contracts 16.201general. a fixedprice typesof contracts provide for a firm', 9784:'price or, in appropriatecases, an adjustableprice. fixedprice contracts providing for anadjustable price may include a ceiling price, a target priceincluding', 9785:'target cost, or both. unless otherwisespecified in the contract,the ceiling priceor targetprice is subjectto adjustment only by operationof contract clauses', 9786:'providing for equitable adjustment or other revision of the contract price under stated circumstances. the contracting officer shall use firmfixedprice', 9787:'or fixedprice with economic price adjustment contracts when acquiring commercial products and commercial services, except as provided in 12.207b. b', 9788:'timeandmaterials contractsandlaborhour contracts are not fixedprice contracts. 16.202firmfixedprice contracts. 16.2021 description. a firmfixedprice contract provides for a pricethat isnot subject', 9789:'to any adjustment on the basis of the contractor’s cost experience in performing the contract. this contract type places upon', 9790:'the contractor maximum risk and full responsibility for all costs and resultingprofit or loss. itprovides maximum incentiveforthe contractor to controlcosts', 9791:'and perform effectively and imposes a minimum administrative burden upon the contractingparties. the contractingofficer may use afirmfixedprice contract in conjunction', 9792:'with an awardfee incentive see 16.404 and performance or delivery incentives see 16.4022 and 16.4023 when the award fee or', 9793:'incentive is based solely on factors other than cost. the contract type remains firm fixedprice when used with these incentives.', 9794:'16.2022 application. a firmfixedprice contract is suitable for acquiring commercial products or commercial services see parts 2 and 12 or', 9795:'for acquiring other supplies or services on the basis of reasonably definite functional or detailed specifications see part 11 when', 9796:'the contracting officer canestablish fair and reasonable prices at the outset, such as when a there is adequate price competition;', 9797:'b there are reasonable price comparisons with prior purchases of the same or similar supplies or services made on a', 9798:'competitive basis or supported by valid certified cost or pricing data; c availablecost or pricing information permits realistic estimates ofthe', 9799:'probable costsof performance; or d performance uncertainties can be identified and reasonable estimates of their cost impact can be made,', 9800:'and the contractor is willing to accept a firm fixed price representing assumption of the risks involved. 16.203fixedprice contracts with', 9801:'economic price adjustment. 16.2031 description. a a fixedprice contract with economic price adjustment provides for upward and downward revision of', 9802:'the stated contract price upon the occurrence of specified contingencies. economic price adjustments are of three general types: 1 adjustments', 9803:'based on established prices. these price adjustments are based on increases or decreases from an agreedupon level in published or', 9804:'otherwise established prices of specific items or the contract end items. 2 adjustments based on actual costs of labor or', 9805:'material. these price adjustments are based on increases or decreases in specified costs of labor or material that the contractor', 9806:'actually experiences during contract performance. 3 adjustments based on cost indexes of labor or material. these price adjustments are based', 9807:'on increases or decreases in labor or material cost standards or indexes that are specifically identified in the contract. b', 9808:'the contractingofficer may use afixedpricecontract with economicprice adjustment in conjunction with anawardfee incentive see 16.404 and performance or delivery incentives', 9809:'see 16.4022 and 16.4023 when the award fee or incentive is based solely on factors other than cost. the contract', 9810:'type remains fixedprice with economic price adjustment when used with these incentives. 16.2032 application. a fixedprice contract with economic price', 9811:'adjustment may be used when i there is serious doubt concerning the stability of market or labor conditions that will', 9812:'exist during an extended period of contract performance, and ii contingencies that would otherwise be included in the contract price', 9813:'can be identified and covered separately in the contract. price adjustments 16.2033 federal acquisition regulation based on established prices should', 9814:'normally be restricted to industrywide contingencies. price adjustments based on labor and materialcosts should be limited to contingencies beyond the', 9815:'contractor’s control. for use ofeconomic price adjustment in sealed bid contracts, see 14.4084. a inestablishing thebase level fromwhich adjustment will', 9816:'be made,the contracting officershallensure that contingency allowances are not duplicated by inclusion in both the base price and the adjustment', 9817:'requested by the contractor under economic price adjustment clause. b in contractsthat do notrequire submission of certified cost or pricing', 9818:'data, the contracting officer shall obtain adequate data to establish the base level from which adjustment will be made and', 9819:'may require verification of data submitted. 16.2033 limitations. a fixedprice contract with economic price adjustment shall not be usedunlessthe contracting', 9820:'officerdeterminesthat it is necessary either to protect the contractor and the government against significant fluctuations in labor or material costs', 9821:'or to provide for contract price adjustment in theeventof changes in the contractor’s establishedprices. 16.2034 contract clauses. a adjustment based', 9822:'on established pricesstandard supplies. 1 the contracting officershall, when contracting by negotiation, insert the clause at 52.2162, economic price adjustmentstandard', 9823:'supplies, or an agencyprescribed clause as authorized in paragraph a2 of this subsection, in solicitations and contracts when all of', 9824:'the following conditions apply: i a fixedprice contract is contemplated. ii the requirement is for standard supplies that have an', 9825:'established catalog or market price. iii the contracting officer has made the determination specified in 16.2033. 2 if all the', 9826:'conditionsin paragraph a1 ofthis subsection apply and the contracting officer determines that the use of the clause at 52.2162 is', 9827:'inappropriate, the contracting officermay usean agencyprescribed clause instead of the clause at 52.2162. 3 if the negotiated unit price reflects', 9828:'a net price after applying a trade discount from a catalog or list price, the contracting officershalldocument in the contractfile', 9829:'both the catalog or listprice and the discount. this does not apply to prompt payment or cash discounts. 4 the', 9830:'contractingofficer may modify the clauseby increasing the 10 percent limit on aggregateincreases specifiedin 52.2162c1, upon approvalby the chief of the', 9831:'contracting office. b adjustment based on established pricessemistandard supplies. 1 the contracting officershall, whencontracting by negotiation, insert the clause at', 9832:'52.2163, economic price adjustmentsemistandard supplies, or an agencyprescribed clause as authorized in paragraph b2 of this section, in solicitations and', 9833:'contracts when all of the following conditions apply: i a fixedprice contract is contemplated. ii the requirement is for semistandard', 9834:'supplies for which the prices can be reasonably related to the prices of nearly equivalent standard supplies that have an', 9835:'established catalog or market price. iii the contracting officer has made the determination specified in 16.2033. 2 if all conditions', 9836:'in paragraph b1of this subsection apply and the contracting officer determines that the use of the clause at 52.2163is inappropriate,', 9837:'the contracting officer mayuse an agencyprescribed clauseinstead of the clause at 52.2163. 3 if the negotiated unit price reflects a', 9838:'net price after applying a trade discount from a catalog or list price, the contracting officershalldocument in the contractfile both', 9839:'the catalog or listprice and the discount. this does not apply to prompt payment or cash discounts. 4 before entering', 9840:'into the contract,the contracting officer andcontractor mustagreein writing onthe identity of the standard supplies and the corresponding line items to', 9841:'which the clause applies. 5 if the supplies are standard, except for preservation, packaging, and packing requirements, the clause prescribed', 9842:'in 16.2034a shall be used rather than this clause. 6 the contractingofficer may modify the clauseby increasing the 10 percent', 9843:'limit on aggregateincreases specifiedin 52.2163c1, upon approvalby the chief of the contracting office. c adjustments based on actual cost of', 9844:'labor or material.1the contracting officer shall, when contractingby negotiation, insert a clause that is substantially the same as the clause', 9845:'at 52.2164, economic price adjustment labor and material, or an agencyprescribed clause as authorized in subparagraph c2 of this section,', 9846:'in solicitations and contracts when all of the following conditions apply: i a fixedprice contract is contemplated. subpart 16.2 fixedprice', 9847:'contracts 16.2052 ii there is no major element of design engineering or development work involved. iii one or more identifiable', 9848:'labor or material cost factors are subject to change. iv the contracting officer has made the determination specifiedin 16.2033. 2', 9849:'if all conditions in paragraph c1 of this section applyand the contracting officerdeterminesthat the useof the clause at 52.2164is inappropriate,', 9850:'the contracting officer mayuse an agencyprescribed clauseinstead of the clause at 52.2164. 3 the contractingofficer shall describe indetail in the', 9851:'contract schedule i the types of labor and materials subject to adjustment under the clause; ii the labor rates, including', 9852:'fringe benefits if any and unit prices of materials that may be increased or decreased; and iii the quantities of', 9853:'the specified labor and materials allocable to each unit to be delivered under the contract. 4 in negotiating adjustments under', 9854:'the clause, the contractingofficer shall i consider work in process and materials on hand at the time of changes in', 9855:'labor rates, including fringe benefits if any or material prices; ii not include in adjustments any indirect cost except fringe', 9856:'benefits as defined in 31.2056m or profit; and iii consider only those fringe benefits specified in the contract schedule. 5', 9857:'the contractingofficer may modify the clauseby increasing the 10 percent limit on aggregateincreases specifiedin 52.2164c4, upon approvalby the chief of', 9858:'the contracting office. d adjustments based on cost indexes of labor or material. the contracting officer should consider using aneconomic', 9859:'price adjustment clause based on cost indexes of labor or material under the circumstances and subject to approval as described', 9860:'in paragraphs d1 and d2 of this section. 1 a clause providing adjustment based on cost indexes of labor or', 9861:'materials may be appropriate when i the contract involves an extended period of performance with significant costs to be incurred', 9862:'beyond 1 year after performance begins; ii the contract amount subject to adjustment is substantial; and iii the economic variables', 9863:'for labor and materials are too unstable to permit a reasonable division of risk between thegovernment and the contractor, without', 9864:'this typeof clause. 2 any clause using this method shall be prepared and approved under agency procedures. because of the', 9865:'variations in circumstances and clause wording that may arise, no standard clause is prescribed. 16.204fixedprice incentive contracts. a fixedprice incentive', 9866:'contract is a fixedprice contract that provides for adjusting profit and establishing the final contract price by a formula based', 9867:'on therelationship offinal negotiated total cost tototal target cost. fixedprice incentive contracts are covered in subpart 16.4, incentive contracts. see', 9868:'16.403 for more complete descriptions, application, and limitations for these contracts. prescribed clauses are found at 16.406. 16.205 fixedprice contracts', 9869:'with prospective price redetermination. 16.2051 description. a fixedprice contract with prospective price redetermination provides for a a firm fixed price', 9870:'for an initial period of contract deliveries or performance; and b prospective redetermination, at a stated time or times during', 9871:'performance, of the price for subsequent periods of performance. 16.2052 application. a fixedprice contract with prospective price redetermination may be', 9872:'used in acquisitions of quantity production or services for which it is possible to negotiate a fair and reasonable firm', 9873:'fixed price for an initial period, but not for subsequent periods of contract performance. a the initial period should be', 9874:'the longest period for which it is possible to negotiate a fair and reasonable firm fixed price. each subsequent pricing', 9875:'period should be at least 12 months. b the contract may provide for a ceiling price based on evaluation of', 9876:'the uncertainties involved in performance and their possible cost impact. this ceiling price should provide for assumption of a reasonable', 9877:'proportion of the risk by the contractor 16.2053 federal acquisition regulation and, once established, may be adjusted only by operation', 9878:'of contract clauses providing for equitable adjustment or other revision of the contract price under stated circumstances. 16.2053 limitations. this', 9879:'contract type shall not be used unless a negotiations have established that 1 the conditions for use of a firmfixedprice', 9880:'contract are not present see 16.2022; and 2 a fixedprice incentive contract would not be more appropriate; b the contractor’s', 9881:'accounting system is adequate for priceredetermination; c theprospective pricing periods can bemade to conform with operation ofthe contractor’s accounting system;', 9882:'and d there is reasonable assurance that price redetermination actions will take place promptly at the specified times. 16.2054 contract', 9883:'clause. the contractingofficer shall,when contracting by negotiation, insert the clause at 52.2165, price redetermination prospective, in solicitations and contracts when', 9884:'a fixedprice contract is contemplated and the conditions specified in 16.2052 and 16.2053a through d apply. 16.206 fixedceilingpricecontracts with retroactive', 9885:'price redetermination. 16.2061 description. a fixedceilingprice contract with retroactive price redetermination provides for a a fixed ceiling price; and b', 9886:'retroactive price redetermination within the ceiling after completion of the contract. 16.2062 application. a fixedceilingprice contract with retroactive price redetermination', 9887:'is appropriate for research and development contracts estimated at the simplified acquisition threshold or less when it is established at', 9888:'the outset that a fair and reasonable firm fixed price cannot be negotiated and that the amount involved and short', 9889:'performance period make the use of any other fixed price contract type impracticable. a a ceilingprice shall be negotiated for', 9890:'the contract at alevel that reflects a reasonable sharing of risk by thecontractor. the established ceiling price may be adjusted', 9891:'only if required by the operation of contract clauses providing for equitable adjustment or other revision of the contract price', 9892:'under stated circumstances. b the contract should be awarded only after negotiation of a billing price that is as fair', 9893:'and reasonable as the circumstances permit. c since this contract type provides the contractorno cost control incentive except the ceiling', 9894:'price, the contracting officer should make clearto the contractor during discussion beforeaward that the contractor’s management effectiveness and ingenuity will', 9895:'be considered in retroactively redetermining the price. 16.2063 limitations. this contract type shall not be used unless a the contract', 9896:'is for research and development and the estimated cost is the simplified acquisition threshold or less; b the contractor’s accounting', 9897:'system is adequate for priceredetermination; c there is reasonable assurance that the price redetermination will take place promptly at the', 9898:'specified time; and d the head ofthe contracting activity or a higherlevel official, ifrequired by agencyprocedures approves its use in', 9899:'writing. 16.2064 contract clause. the contractingofficer shall,when contracting by negotiation, insert the clause at 52.2166, price redetermination retroactive, in solicitations', 9900:'and contracts when a fixedprice contract is contemplated and the conditions in 16.2062 and 16.2063a through d apply. subpart 16.2', 9901:'fixedprice contracts 16.2073 16.207firmfixedprice, levelofeffort term contracts. 16.2071 description. a firmfixedprice, levelofeffort term contract requires a thecontractor to provide a', 9902:'specified level of effort,over a stated periodof time, onworkthat canbe stated only in general terms; and b the government to', 9903:'pay the contractor a fixed dollar amount. 16.2072 application. a firmfixedprice, levelofeffort term contract is suitable for investigation or study', 9904:'in a specific research and development area. the product of the contract is usually a report showing the results achieved', 9905:'through application of the required level of effort. however, payment isbased on the effort expended rather than on theresults achieved.', 9906:'16.2073 limitations. this contract type may be used only when a the work required cannot otherwise be clearly defined; b', 9907:'the requiredlevel of effortis identified and agreed upon inadvance; c there isreasonable assurance that the intended result cannot be achieved', 9908:'by expending less thanthe stipulatedeffort; and d the contract price is the simplifiedacquisitionthreshold orless, unless approved by thechief of the', 9909:'contracting office. this page intentionally left blank. 16.26 subpart 16.3 costreimbursement contracts 16.305 subpart 16.3 costreimbursement contracts 16.301general. 16.3011 description.', 9910:'costreimbursement types of contracts provide for payment of allowable incurred costs, to the extent prescribed in the contract. these contracts', 9911:'establish an estimate of total cost for the purpose of obligating funds and establishing a ceiling that thecontractor may not', 9912:'exceed except at its own risk without the approval of thecontracting officer. 16.3012 application. a thecontracting officer shall use costreimbursement', 9913:'contracts only when 1 circumstances do not allow theagency to defineits requirements sufficiently to allow for a fixedprice type contract', 9914:'see 7.105; or 2 uncertaintiesinvolved in contract performance do not permit coststo beestimated with sufficient accuracy to use any type', 9915:'of fixedprice contract. b the contractingofficer shall document the rationale for selecting the contract type in thewritten acquisition plan and', 9916:'ensure that the planis approvedand signed at least one levelabove the contracting officer see 7.103j and 7.105. 16.3013 limitations. a', 9917:'a costreimbursement contract may be used only when 1 the factors in 16.104 have been considered; 2 a written acquisition', 9918:'plan has been approvedandsigned at least one levelabove the contracting officer; 3 the contractor’s accounting system is adequate for determining', 9919:'costs applicableto thecontract or order; and 4 priorto award ofthe contract or order, adequate government resources areavailable to awardandmanage a', 9920:'contract other than firmfixedpriced see 7.104e. this includes appropriate government surveillance during performance in accordance with 1.6022, to provide reasonable', 9921:'assurance that efficient methods and effective costcontrols are used. b the use of costreimbursement contracts is prohibited for the acquisition', 9922:'of commercial products and commercial services see parts 2 and 12. 16.302cost contracts. a description. a cost contract is a', 9923:'costreimbursement contract in which the contractor receives no fee. b application. a cost contract may be appropriate for research and', 9924:'development work, particularly with nonprofit educationalinstitutions orothernonprofit organizations. c limitations. see 16.3013. 16.303costsharing contracts. a description. a costsharing contract is', 9925:'a costreimbursement contract in which the contractor receives no fee and is reimbursed only for an agreedupon portion of its', 9926:'allowable costs. b application. a costsharing contract may be used when the contractor agrees to absorb a portion of the', 9927:'costs, in the expectation of substantial compensating benefits. c limitations. see 16.3013. 16.304costplusincentivefee contracts. a costplusincentivefee contract is a costreimbursement', 9928:'contract that provides for an initially negotiated fee to be adjusted later by a formula based on the relationship of', 9929:'total allowable costs to total target costs. costplusincentivefee contracts are covered in subpart 16.4, incentive contracts. see 16.4051 for a', 9930:'more complete description and discussion of application of these contracts. see 16.3013 for limitations. 16.305costplusawardfee contracts. a costplusawardfee contract is', 9931:'a costreimbursement contract that provides for a fee consisting of aa base amount which may be zero fixed at inception', 9932:'of the contract and ban award amount, based upon a judgmental evaluation by thegovernment,sufficient to provide motivationforexcellence in contract performance.', 9933:'costplusawardfee contracts are federal acquisition regulation covered in subpart 16.4, incentive contracts. see 16.401e for a more complete description and', 9934:'discussion of the application of these contracts. see 16.3013 and 16.401e5 for limitations. 16.306costplusfixedfee contracts. a description. a costplusfixedfee contract', 9935:'is a costreimbursement contract that provides for payment to the contractor of a negotiated fee that is fixed at the', 9936:'inception of the contract. the fixed fee does not vary with actual cost, but may be adjusted as a result', 9937:'of changes in the work to be performed under the contract. this contract type permits contracting for efforts that might', 9938:'otherwise present too greata risk to contractors, but it provides thecontractor only aminimum incentive to control costs. b application. 1', 9939:'a costplusfixedfee contract is suitable for use when the conditions of 16.3012 are present and, for example ithe contractis for', 9940:'the performance of research orpreliminary exploration or study, and the level of effort required is unknown; or ii the contract', 9941:'is for development and test, and using a costplusincentivefee contract is not practical. 2 a costplusfixedfee contract normally should not', 9942:'be used in development of major systems see part 34 once preliminary exploration, studies, and risk reduction have indicated a', 9943:'high degree of probability that the development is achievable and the government has established reasonably firm performance objectives and schedules.', 9944:'c limitations. no costplusfixedfee contractshallbe awarded unless the contractingofficer complies with all limitations in 15.4044c4i and 16.3013. d completion and', 9945:'term forms. a costplusfixedfee contract may take one of two basic formscompletion or term. 1 the completion form describes thescope', 9946:'of work by stating a definite goal or target and specifying an end product. this form of contract normally requires', 9947:'the contractor to complete and deliver the specified end product e.g.,a final report of research accomplishingthe goal or target withinthe', 9948:'estimated cost, if possible, as acondition for payment of the entire fixed fee. however, inthe event thework cannot be completed', 9949:'within the estimated cost, the government mayrequire more effort without increase in fee, provided the government increases the estimated cost.', 9950:'2 the term form describes the scope of work in general terms and obligates the contractor to devote a specified', 9951:'level of effortfora stated time period. under this form, if the performance is consideredsatisfactory by the government,the fixed feeis payableat', 9952:'the expiration of the agreedupon period, upon contractor statement that the level of effort specified in the contract has been', 9953:'expended in performing the contract work. renewal for further periods of performance is a new acquisition that involves new cost', 9954:'and fee arrangements. 3 because of the differences inobligation assumedby the contractor, thecompletion formis preferred over the term form whenever', 9955:'the work, or specific milestones for the work, can be defined well enough to permit development of estimates within which', 9956:'the contractor can be expected to complete the work. 4 the term form shall not be usedunlessthe contractor is obligated', 9957:'by the contract to providea specific level of effort within a definite time period. 16.307contract clauses. a 1thecontractingofficershallinserttheclauseat 52.2167, allowable', 9958:'cost and payment, in solicitations and contracts when a costreimbursement contract or a timeandmaterials contract other than a contract for', 9959:'a commercial product or commercial service is contemplated. if the contract is a timeandmaterials contract, the clause at 52.2167 applies', 9960:'in conjunction with the clause at 52.2327, but only to the portion of the contract that provides for reimbursement of', 9961:'materials as defined in the clause at 52.2327 at actualcost. further, the clause at 52.2167 does not apply to laborhour', 9962:'contracts. 2 if the contract is a construction contract and contains the clause at 52.23227, prompt payment for construction contracts,', 9963:'the contractingofficer shall usethe clause at 52.2167 with its alternate i. 3 if the contract is with an educational institution,', 9964:'thecontracting officer shall use the clause at 52.2167 with its alternate ii. 4 if the contract is with a state', 9965:'or localgovernment, thecontracting officer shall use the clause at 52.2167 with its alternate iii. 5 if the contract is with', 9966:'a nonprofitorganization other than an educational institution, a state or local government, or a nonprofit organization exempted under the omb', 9967:'uniform guidance at 2 cfr part 200, appendix viii, the contracting officer shall use the clause at 52.2167 with its', 9968:'alternate iv. subpart 16.3 costreimbursement contracts 16.307 b the contractingofficer shall insertthe clause at 52.2168, fixed fee, in solicitations and', 9969:'contracts when a costplusfixed fee contract other than a construction contract is contemplated. c thecontracting officer shall insert the clause', 9970:'at 52.2169, fixedfeeconstruction, in solicitations and contracts when a costplusfixedfee construction contract is contemplated. d the contractingofficer shall insertthe clause', 9971:'at 52.21610, incentive fee, in solicitations and contracts when a costplus incentivefee contract is contemplated. e 1thecontractingofficershallinserttheclauseat 52.21611, cost contractno', 9972:'fee, in solicitations and contracts when a costreimbursement contract is contemplated that provides no fee and is not a costsharing', 9973:'contract. 2 if a costreimbursement research and development contract with an educational institution or a nonprofit organizationthat provides no fee', 9974:'orotherpayment above costand is not a costsharing contract is contemplated, and if the contracting officerdeterminesthat withholding of a portion of', 9975:'allowable costs is not required, the contracting officer shall use the clause with its alternate i. f 1thecontractingofficershallinserttheclauseat 52.21612, costsharing', 9976:'contractno fee, in solicitations and contracts when a costsharing contract is contemplated. 2 if a costsharing research and development contract', 9977:'with an educationalinstitution or a nonprofit organization is contemplated, and if the contractingofficer determines that withholding of a portion of', 9978:'allowable costs is notrequired, the contracting officershalluse the clausewith its alternate i. g the contractingofficer shall insertthe clause at 52.21615,', 9979:'predetermined indirect cost rates, in solicitations and contracts when a costreimbursement research and development contract with an educational institution see', 9980:'42.7053b is contemplated and predetermined indirect cost rates are to be used. this page intentionally left blank. 16.34 subpart 16.4', 9981:'incentive contracts 16.401 subpart 16.4 incentive contracts 16.401general. a incentive contracts as described in this subpart are appropriate when a', 9982:'firmfixedprice contract is not appropriate and the required supplies or services can be acquired at lower costs and, in certain', 9983:'instances, with improved delivery or technical performance, byrelatingthe amount of profit or fee payable underthe contract tothe contractor’s performance. incentive', 9984:'contracts are designed to obtain specific acquisition objectives by 1 establishingreasonable and attainabletargets that are clearly communicated to the contractor;', 9985:'and 2 including appropriate incentive arrangements designed to imotivatecontractor efforts that might not otherwise be emphasized; and iidiscourage contractor inefficiency', 9986:'and waste. b when predetermined, formulatype incentives on technical performance or delivery are included, increases in profit or fee are', 9987:'provided only for achievement that surpasses the targets, and decreasesare provided for tothe extent that such targets are not met.', 9988:'theincentive increases ordecreases areapplied to performancetargets ratherthan minimum performance requirements. c the two basic categories of incentive contracts are fixedprice', 9989:'incentive contracts see 16.403 and 16.404 and cost reimbursement incentive contracts see 16.405. sinceitis usually to the government’s advantage for', 9990:'the contractor to assume substantial cost responsibility and an appropriate share of the cost risk, fixedprice incentive contracts are preferred', 9991:'when contract costs and performance requirements are reasonably certain. costreimbursement incentive contracts are subject to the overall limitations in 16.301', 9992:'that apply to all costreimbursement contracts. d a determination and finding,signed by the head of the contracting activity, shall be', 9993:'completed for all incentiveand awardfee contracts justifying that the use of this type of contract is in the best interest', 9994:'of the government. this determination shall be documented in the contract file and, for awardfee contracts, shall address all of', 9995:'the suitability items in 16.401e1. e awardfeecontracts are a type of incentive contract. 1 application. an awardfee contract is suitable', 9996:'for use when ithe work to be performedis such that it is neither feasible nor effective todevise predetermined objective incentive', 9997:'targets applicable to cost, schedule, and technical performance; iithe likelihood ofmeeting acquisitionobjectives will be enhancedby using a contract that effectively', 9998:'motivates the contractor toward exceptional performance and provides the government with the flexibility to evaluate both actual performance and the', 9999:'conditions under which it was achieved; and iii any additional administrativeeffort and cost required to monitor and evaluate performance are', 10000:'justified by the expected benefits as documented by a risk and cost benefit analysis to be included in the determination', 10001:'and findings referenced in 16.401e5iii. 2 awardfee amount.the amount of award fee earned shall be commensurate withthe contractor’s overall cost,', 10002:'schedule, and technical performance as measured against contract requirements in accordance with the criteria stated in theawardfee plan. award feeshallnot', 10003:'be earned ifthe contractor’s overall cost,schedule,andtechnical performance in theaggregate is belowsatisfactory. the basis for all awardfee determinations shall bedocumented in', 10004:'the contract file to include, at a minimum, a determination that overall cost, schedule and technical performance in the aggregate', 10005:'is or is not at a satisfactory level. this determination and the methodology for determining the award fee are unilateral', 10006:'decisions made solely at the discretion of the government. 3 awardfee plan. all contracts providing for award fees shall be', 10007:'supported by an awardfee plan that establishes the procedures for evaluating award fee andan awardfee board for conducting the awardfee', 10008:'evaluation. awardfeeplans shall i be approved by the fdo unless otherwise authorized by agency procedures; ii identify the awardfee evaluation', 10009:'criteria and how they are linked to acquisition objectives which shall be defined in terms of contract cost, schedule, and', 10010:'technical performance. criteria should motivate the contractor to enhance performance in the areas rated, but not at the expense of', 10011:'at least minimum acceptable performance in all other areas; iii describe how the contractor’s performancewill be measured against the awardfee', 10012:'evaluation criteria; iv utilize the adjectival rating and associated description as well as the awardfee pool earned percentages shown below', 10013:'in table161. contracting officers maysupplement the adjectival rating description. the method used to determine the adjectival rating must be documented', 10014:'in the awardfee plan; table 161 federal acquisition regulation awardfee adjectival rating award fee pool available to be earned description', 10015:'excellent 91%100% contractor has exceeded almost all of the significant awardfee criteria and has met overall cost, schedule, and technical', 10016:'performance requirements of the contract in the aggregate as defined and measured against the criteria in the awardfee plan for', 10017:'the awardfee evaluation period. very good 76%90% contractor has exceeded many of the significant awardfee criteria and has met overall', 10018:'cost, schedule, and technical performance requirements of the contract in the aggregate as defined and measured against the criteria in', 10019:'the awardfee plan for the awardfee evaluation period. good 51%75% contractor has exceeded some of the significant awardfee criteria and', 10020:'has met overall cost, schedule, and technical performance requirements of the contract in the aggregate as defined and measured against', 10021:'the criteria in the awardfee plan for the awardfee evaluation period. satisfactory no greater than 50% contractor has met overall', 10022:'cost, schedule, and technical performance requirements of the contract in the aggregate as defined and measured against the criteria in', 10023:'the awardfee plan for the awardfee evaluation period. unsatisfactory 0% contractor has failed to meet overall cost, schedule, and technical', 10024:'performance requirements of the contract in the aggregate as defined and measured against the criteria in the awardfee plan for', 10025:'the awardfee evaluation period. v prohibit earning any award feewhen acontractor’s overall cost, schedule, and technical performance in the aggregate', 10026:'is below satisfactory; vi provide for evaluation periods to be conducted at stated intervals during the contract period of performance', 10027:'so that the contractor will periodically be informed of the quality of its performance and the areas in which improvement', 10028:'is expected e.g. six months, nine months, twelve months, or at specific milestones; and vii define the total awardfee pool', 10029:'amount and how this amount is allocated across each evaluation period. 4 rollover of unearned award fee. the use of', 10030:'rollover of unearned award fee is prohibited. 5 limitations. no awardfee contract shall be awarded unless i all of the', 10031:'limitations in 16.3013, thatare applicable to costreimbursement contractsonly, are complied with; ii an awardfee plan is completed in accordance with', 10032:'the requirements in 16.401e3; and iii a determination and finding is completed in accordance with 16.401d addressing all of the', 10033:'suitability items in 16.401e1. f incentiveand awardfee data collection and analysis. each agency shall collect relevant data on award fee', 10034:'and incentive fees paid to contractors and include performance measures to evaluate such data on a regular basis to determine', 10035:'effectiveness of award and incentive fees as a tool for improving contractor performance and achieving desired program outcomes. this information', 10036:'should be considered as part of the acquisition planning process see 7.105 in determining the appropriate type of contract to', 10037:'be utilized for future acquisitions. g incentiveand awardfee best practices. each agency head shall provide mechanisms for sharing proven incentive', 10038:'strategies for the acquisition of different typesof products andservices among contracting and program management officials. 16.402 application ofpredetermined, formulatype incentives.', 10039:'16.4021 cost incentives. a most incentive contracts include only cost incentives, which take the form of a profit or fee', 10040:'adjustment formula and areintended tomotivatethe contractor to effectively manage costs. noincentive contract may provideforotherincentives without also providing a cost incentive', 10041:'or constraint. subpart 16.4 incentive contracts 16.403 b except for awardfee contracts see 16.404 and 16.401e, incentivecontracts include a target', 10042:'cost, a target profit or fee, and a profit or fee adjustment formula that within the constraints of a price', 10043:'ceiling or minimum and maximum fee provides that 1 actual cost that meets the target will result in thetarget profit', 10044:'or fee; 2 actual cost that exceedsthe target will result in downward adjustment of target profit or fee;and 3 actual', 10045:'cost that isbelow the target will result in upward adjustmentof targetprofit orfee. 16.4022 performance incentives. a performance incentives may be', 10046:'considered in connection with specific product characteristics e.g.,a missile range, anaircraftspeed, an engine thrust, ora vehicle maneuverability or other specificelements', 10047:'of the contractor’s performance. these incentives should be designed to relate profit or fee to resultsachieved by the contractor,comparedwith specified', 10048:'targets. b to the maximumextent practicable, positive and negativeperformance incentives shall be considered in connection with service contracts for performance', 10049:'of objectively measurable tasks when quality of performance is critical and incentives arelikely to motivate the contractor. c technical performance', 10050:'incentives may be particularly appropriate in major systems contracts, both in development when performance objectives are known and the fabrication', 10051:'of prototypes for test and evaluation is required and in production if improved performance is attainable and highly desirable to', 10052:'the government. d technical performance incentives may involve a variety ofspecific characteristics that contribute to the overall performanceof the end', 10053:'item. accordingly,the incentives on individual technical characteristicsmust be balanced so that no one of them is exaggerated to the detriment', 10054:'of the overall performance of the end item. e performance tests and/or assessments of work performance are generally essential in', 10055:'order to determine the degree of attainment of performance targets. therefore, the contract must be as specific as possible in', 10056:'establishing test criteriasuch as testing conditions, instrumentation precision, and data interpretation and performance standards such as the quality levels of', 10057:'services to be provided. f because performance incentives present complex problemsin contract administration, the contracting officer should negotiate them in', 10058:'full coordination with government engineering and pricing specialists. g it is essential that thegovernmentand contractor agree explicitly on the effect', 10059:'that contract changes e.g., pursuant to the changes clause will have on performance incentives. h the contractingofficer mustexercise care, in', 10060:'establishing performance criteria, to recognize that the contractor should not be rewarded or penalized for attainments of governmentfurnished components. 16.4023', 10061:'delivery incentives. a delivery incentives should be considered when improvement from a required delivery schedule is a significant government objective.', 10062:'itis important to determinethe government’s primary objectives in a givencontract e.g., earliest possible delivery or earliest quantity production. b incentive', 10063:'arrangements on delivery should specify the application of the rewardpenalty structure in the event of governmentcaused delays or other delays', 10064:'beyond the control, and without the fault or negligence, of the contractor or subcontractor. 16.4024 structuring multipleincentive contracts. a properly', 10065:'structured multipleincentive arrangement should a motivate the contractor to strive for outstanding results in all incentive areas; and b compeltradeoff', 10066:'decisions among the incentiveareas, consistent with the government’s overall objectives for the acquisition. because of the interdependency of thegovernment’s cost,', 10067:'thetechnicalperformance, and thedelivery goals, a contract that emphasizes only one of the goals may jeopardize control over the others. because', 10068:'outstanding results may not be attainable for each of the incentive areas, all multipleincentive contracts must include a cost incentive', 10069:'or constraint that operates to preclude rewarding a contractor for superior technical performance or delivery results when the cost of', 10070:'those results outweighs their value to the government. 16.403fixedprice incentive contracts. a description. a fixedprice incentive contract is a fixedprice', 10071:'contract that provides for adjusting profit and establishing thefinal contract price by application of a formula basedon the relationship of', 10072:'total final negotiated cost to total target cost. 16.4031 federal acquisition regulation the final price is subject to a price', 10073:'ceiling, negotiated at the outset. the two forms of fixedprice incentive contracts, firm target and successive targets, arefurther described in', 10074:'16.4031 and 16.4032 below. b application. a fixedprice incentive contract is appropriate when 1 a firmfixedprice contract is not suitable;', 10075:'2 the nature of the supplies or services being acquired and other circumstances of the acquisition are such that the', 10076:'contractor’s assumption of a degree of cost responsibility will providea positive profitincentive for effective cost control and performance; and 3', 10077:'if the contract also includes incentives on technical performance and/ordelivery,the performancerequirements provide a reasonable opportunity for the incentives to have', 10078:'a meaningful impact on the contractor’s management ofthe work. c billing prices. in fixedprice incentive contracts, billing prices are established', 10079:'as an interim basis for payment. these billing prices may be adjusted, within the ceiling limits, upon request of either', 10080:'party to the contract, when it becomes apparentthat final negotiated cost will besubstantially different from the target cost. 16.4031 fixedprice', 10081:'incentive firm target contracts. a description. a fixedprice incentive firm target contract specifies a target cost, a target profit,a priceceiling', 10082:'but not a profit ceiling or floor, and a profit adjustment formula. these elements are all negotiated at the outset.', 10083:'the price ceiling is themaximum thatmay be paid to the contractor, except for any adjustment under other contractclauses. when the', 10084:'contractor completes performance, the parties negotiate the final cost, and the final price is established by applying the formula. when', 10085:'thefinal cost is less than thetarget cost, applicationof the formula results ina finalprofit greater than the target profit; conversely, when', 10086:'final costis more than target cost,application of the formula results in a final profit lessthan the target profit, or even', 10087:'a net loss. if the final negotiated cost exceeds the price ceiling, thecontractor absorbs the difference asa loss. because the', 10088:'profit varies inversely with the cost, this contract type provides a positive, calculable profit incentive for the contractor to control', 10089:'costs. b application. a fixedprice incentive firm target contract isappropriatewhen the parties can negotiate at the outset a firm target', 10090:'cost, targetprofit, and profit adjustment formulathat will provide a fair and reasonableincentive anda ceilingthat provides for the contractor to assume', 10091:'an appropriate share of the risk. when the contractor assumes a considerable or major shareof the cost responsibility under the', 10092:'adjustment formula, the target profit should reflect this responsibility. c limitations. this contract type may be used only when 1', 10093:'the contractor’s accounting system is adequate for providing datato support negotiation of final cost and incentive price revision; and 2', 10094:'adequate cost or pricing information for establishing reasonable firm targets isavailable atthe time of initial contract negotiation. d contract schedule.', 10095:'the contracting officershallspecify in the contract schedule the target cost, targetprofit, and target price for each item subject to incentive', 10096:'price revision. 16.4032 fixedprice incentive successive targets contracts. a description. 1 a fixedprice incentive successive targets contract specifies the following', 10097:'elements,all of which are negotiated at the outset: ian initial target cost. iian initial target profit. iii an initial profit', 10098:'adjustment formulato beused for establishingthe firm target profit,including a ceiling and floor for the firmtarget profit. thisformula normally provides for', 10099:'a lesser degree of contractor cost responsibility than would a formula for establishing final profit and price. iv the production', 10100:'point at which the firm target costand firm targetprofit will be negotiatedusually before delivery or shop completion of the first', 10101:'item. v a ceiling pricethat is the maximum that may bepaid to the contractor,exceptforanyadjustment under other contract clauses providing for', 10102:'equitable adjustment or other revision of the contract price under stated circumstances. 2 when the production point specified in the', 10103:'contract is reached, the parties negotiate the firmtarget cost, giving consideration to cost experience under the contract and other pertinent', 10104:'factors. the firm target profit is established by the formula. at this point, the parties have two alternatives, as follows:', 10105:'ithey maynegotiate a firm fixed price, usingthe firm target cost plusthe firm target profit as a guide. subpart 16.4 incentive', 10106:'contracts 16.4051 ii if negotiation of a firm fixed price is inappropriate, they may negotiate a formula for establishing the', 10107:'final price usingthe firm target cost and firm target profit. the final cost is thennegotiated at completion, and the final', 10108:'profit is established by formula, as under the fixedprice incentive firm targetcontract see 16.4031 above. b application. a fixedprice incentive', 10109:'successive targets contract is appropriate when 1 available cost or pricing information is notsufficient to permit the negotiation of a', 10110:'realistic firm target cost and profit before award; 2 sufficient informationis available topermit negotiation of initial targets; and 3 there', 10111:'is reasonable assurance that additional reliable information will be available at an early point in the contract performancesoas to permit', 10112:'negotiation of either iafirm fixedprice or iifirm targets and a formula for establishingfinal profit and price that will provide a', 10113:'fair and reasonable incentive. this additional information is not limited to experience under the contract, itself, but may be drawn', 10114:'from other contracts for the same or similar items. c limitations. this contract type may be used only when 1', 10115:'the contractor’s accounting system is adequate for providing datafornegotiating firm targets and a realistic profit adjustment formula, as well as', 10116:'later negotiation of final costs; and 2 costor pricinginformation adequate for establishinga reasonable firm target cost is reasonably expected to', 10117:'be available at an early point in contract performance. d contract schedule. the contracting officershallspecify in the contract schedule the', 10118:'initial target cost,initial target profit, and initial target priceforeach itemsubject to incentiveprice revision. 16.404fixedprice contracts with award fees. awardfee provisions', 10119:'may be used in fixedprice contracts when the government wishesto motivate a contractor and other incentives cannot be used because', 10120:'contractor performance cannot be measured objectively. such contracts shall establish a fixed price including normal profit for the effort. this', 10121:'price will bepaid for satisfactory contract performance. award fee earned ifany willbe paid in addition to thatfixedprice. see 16.401e for', 10122:'the requirements relative to utilizing this contract type. 16.405 costreimbursement incentive contracts. see 16.301 for requirements applicable to all costreimbursement', 10123:'contracts, for use in conjunction with the following subsections. 16.4051 costplusincentivefee contracts. a description. the costplusincentivefee contract is a costreimbursement', 10124:'contract that provides for the initially negotiatedfee tobe adjusted later by a formula basedon the relationship of total allowable costs', 10125:'to total target costs. this contract type specifies a targetcost, a target fee, minimum and maximum fees, and a fee', 10126:'adjustment formula. after contract performance, the fee payable to the contractor is determined in accordance with the formula. the formula', 10127:'provides, within limits, for increases in fee above targetfee when total allowable costsare lessthan targetcosts, and decreases in fee below', 10128:'target fee whentotal allowablecosts exceed target costs. this increase or decrease is intended to provide an incentive for the contractor', 10129:'to managethe contract effectively. when total allowable cost is greater than or less thanthe range of costs within which the', 10130:'feeadjustment formula operates, the contractor is paid total allowable costs, plus the minimum or maximum fee. b application. 1 a', 10131:'costplusincentivefee contract is appropriate for services or development and test programs when i a costreimbursement contract is necessary see 16.3012;', 10132:'and iiatarget cost and a feeadjustmentformula can be negotiated that are likelyto motivate the contractor tomanage effectively. 2 the contract', 10133:'may include technical performance incentives when it is highly probable that the required development of a major system is feasible', 10134:'and the government has established its performance objectives, at least in general terms. this approach also may apply to other', 10135:'acquisitions, if the use of both cost and technical performance incentives is desirable and administratively practical. 3 the fee adjustment', 10136:'formula should providean incentive that willbe effective over the full range of reasonably foreseeable variations from target cost. ifa high', 10137:'maximumfee is negotiated, the contract shall also provide for a low minimum fee that may be a zero feeor, in', 10138:'rare cases, a negative fee. c limitations. no costplusincentivefee contract shall be awarded unless all limitations in 16.3013 are complied', 10139:'with. 16.4052 federal acquisition regulation 16.4052 costplusawardfee contracts. a costplusawardfee contract is a costreimbursement contract that provides for a fee', 10140:'consisting of 1 a base amount fixed at inception of the contract, ifapplicable and at the discretion of thecontracting officer,', 10141:'and2an award amount that thecontractor may earn in whole or in part during performance and thatis sufficientto provide motivation for', 10142:'excellence in the areas of cost, schedule, and technical performance. see 16.401e for the requirements relative to utilizing this contract', 10143:'type. 16.406contract clauses. a insert the clause at 52.21616, incentive price revisionfirmtarget, in solicitations and contracts when a fixed price', 10144:'incentive firm targetcontract is contemplated. if thecontract callsforsupplies orservicesto beordered under a provisioning document or government option and the prices', 10145:'are to be subject to the incentive price revision under the clause, thecontracting officer shall use the clause with its', 10146:'alternate i. b insert the clause at 52.21617,incentive price revisionsuccessive targets, in solicitations and contractswhen afixedprice incentive successive targets contract', 10147:'is contemplated. if the contract calls for supplies or services tobe ordered undera provisioning document or government option and the', 10148:'prices are to be subject to incentive price revision under the clause, the contracting officershalluse the clausewith its alternate i.', 10149:'c the clause at 52.2167, allowable cost and payment, is prescribed in 16.307a for insertion in solicitations and contracts when', 10150:'a costplusincentivefee contract or a costplusawardfee contract is contemplated. d the clause at 52.21610, incentive fee, is prescribed in 16.307d', 10151:'for insertion in solicitations and contracts when a costplusincentivefee contract is contemplated. e insert an appropriate awardfee clause in solicitations', 10152:'and contracts when an awardfee contract is contemplated, provided that the clause 1 is prescribed by or approved under agency', 10153:'acquisition regulations; 2 is compatible with the clause at 52.2167, allowable cost and payment; and 3 expressly provides that the', 10154:'award amount and the awardfee determination methodology are unilateral decisions made solely at the discretion of the government. subpart 16.5', 10155:'indefinitedelivery contracts 16.502 subpart 16.5 indefinitedelivery contracts 16.500scope of subpart. a this subpart prescribes policies and procedures for making awards', 10156:'of indefinitedelivery contracts and establishes a preference for making multiple awards of indefinitequantity contracts. b this subpart does not limit', 10157:'the use of other than competitive procedures authorized by part 6. c nothing in this subpart restricts the authority of', 10158:'the general services administration gsa to enter into schedule, multiple award, ortaskor delivery order contracts under any other provision of', 10159:'law. therefore, gsa regulations and the coverage for the federal supply schedule program in subpart 8.4 and part 38 take', 10160:'precedence over this subpart. d the statutory multiple award preference implemented by this subpart does not apply to architectengineer contracts', 10161:'subject to the procedures in subpart 36.6.however,agenciesarenotprecludedfrommakingmultipleawardsforarchitectengineer services using the procedures in this subpart, provided the selection of contractors and', 10162:'placement of orders are consistent with subpart 36.6. e see subpart 19.5 for procedures to set aside part or parts', 10163:'of multipleaward contracts for small businesses; to reserve one or more awards for small business on multipleaward contracts; and to', 10164:'set aside orders for small businesses under multipleaward contracts. 16.501[reserved] 16.5011 definitions. as used in this subpart deliveryorder contract means', 10165:'a contract for supplies that does not procure or specify a firm quantity of supplies other than a minimum or', 10166:'maximum quantity and that provides for the issuance of orders for the delivery of supplies during the period of the', 10167:'contract. taskorder contract means a contract for services that does not procure or specify a firm quantity of services other', 10168:'than a minimum or maximum quantity and that provides for the issuance of orders for the performance of tasks during', 10169:'the period of the contract. 16.5012 general. a there are three types of indefinitedelivery contracts: definitequantity contracts, requirements contracts, and', 10170:'indefinitequantity contracts. the appropriate type of indefinitedelivery contract may be used to acquire supplies and/ or services when the exact', 10171:'times and/or exact quantities of future deliveries are not known at the time of contract award. pursuant to 10 u.s.c.', 10172:'3401 and 41 u.s.c. 4101, requirements contracts and indefinitequantity contracts are also known as deliveryorder contracts or taskorder contracts. b', 10173:'the various types of indefinitedelivery contracts offer the following advantages: 1 all three types permit i government stocks to be', 10174:'maintained at minimum levels; and ii direct shipment to users. 2 indefinitequantity contracts and requirements contracts also permit i flexibility', 10175:'in both quantities and delivery scheduling; and ii ordering of supplies or services after requirements materialize. 3 indefinitequantity contracts limit', 10176:'the government’s obligation to the minimumquantity specified in thecontract. 4 requirements contracts may permit faster deliveries when production lead time', 10177:'is involved, because contractors are usually willing to maintain limited stocks when the government will obtain all of its actual', 10178:'purchase requirements from the contractor. c indefinitedelivery contracts may provide for any appropriate cost or pricing arrangement under part 16.', 10179:'cost or pricing arrangements that provide for an estimated quantity of supplies or services e.g., estimated number of labor hours', 10180:'must comply with the appropriate procedures of this subpart. 16.502definitequantity contracts. a description. a definitequantity contract provides for delivery of', 10181:'a definite quantity of specific supplies or services for a fixed period, with deliveries orperformance to be scheduled at designatedlocations', 10182:'upon order. b application. a definitequantity contract may be used when it can be determined in advance that federal acquisition', 10183:'regulation 1 a definite quantity of supplies or services will be required during the contract period; and 2 the supplies', 10184:'or services are regularly available or will be available after a short lead time. 16.503 requirements contracts. a description. a', 10185:'requirements contract provides for filling all actual purchase requirements of designated government activities for supplies or services during a specified', 10186:'contract period from one contractor, with deliveries or performance to bescheduled by placing orders with thecontractor. 1 for the information', 10187:'of offerors and contractors, the contracting officer shall state a realistic estimatedtotal quantity in the solicitation and resulting contract. thisestimateis', 10188:'not a representation to an offeror or contractor that the estimated quantity will be required or ordered, or that conditionsaffectingrequirements', 10189:'will be stableor normal. thecontracting officer may obtain the estimate fromrecordsof previous requirements and consumption, or by other means,andshouldbase the', 10190:'estimate on the most current information available. 2 the contract shall state, if feasible, the maximum limit of the contractor’s', 10191:'obligation to deliver and the government’s obligation to order. the contract may also specify maximum or minimum quantities that the', 10192:'government may order under each individual order and the maximum that it may order during a specified period of time.', 10193:'b application. 1 a requirements contract may be appropriate for acquiring any supplies or services when the government anticipates recurring', 10194:'requirements but cannot predetermine the precise quantities of supplies or services that designated government activities will need during a definite', 10195:'period. 2 no requirements contract in an amount estimated to exceed $100 million including all options may be awarded to', 10196:'a single source unless a determination is executed in accordance with 16.504c1iid. c government property furnished for repair. when a', 10197:'requirements contract is used to acquire work e.g., repair, modification, or overhaul on existing items of government property, the contractingofficer', 10198:'shall specify inthe schedule that failure of the government to furnish such items in the amounts or quantities described in', 10199:'the schedule as estimated or maximum will not entitle the contractor to any equitable adjustment in price under the government', 10200:'property clause of the contract. d limitations on use of requirements contracts for advisory and assistance services. 1 except as', 10201:'provided in paragraph d2 of this section, no solicitation for a requirements contract for advisory and assistance services in excess', 10202:'of three years and $15 million including all options may be issued unless the contracting officeror other official designated by', 10203:'the head of the agency determines in writing that the services required are so unique or highly specialized that it', 10204:'is not practicable to make multiple awards using the procedures in 16.504. 2 the limitation in paragraph d1 of this', 10205:'section is not applicable to an acquisition of supplies or services that includes the acquisition of advisory and assistanceservices, if', 10206:'the contracting officer or other officialdesignated bythe head of the agency determines that the advisory and assistance services are necessarily', 10207:'incident to, and not a significant component of, the contract. 16.504indefinitequantity contracts. a description. an indefinitequantity contract providesforan indefinite quantity,', 10208:'withinstated limits,of suppliesor services during a fixed period. the government places orders for individual requirements. quantity limits may be stated', 10209:'as number of units or as dollar values. 1 the contract must require the government to order and the contractor', 10210:'to furnish at least a stated minimum quantity of supplies or services. in addition, if ordered, the contractor must furnish', 10211:'any additional quantities, not to exceed the stated maximum. thecontracting officer should establish a reasonablemaximum quantity based on market research,', 10212:'trends on recent contracts for similar supplies or services, survey of potential users, or any other rational basis. 2 to', 10213:'ensure that the contract is binding, the minimum quantity must be more than a nominal quantity, but it should not', 10214:'exceed the amount thatthe government isfairlycertain to order. 3 the contract may also specify maximum or minimum quantities that the', 10215:'government may order under each task or delivery order and the maximum that it may order during a specific period', 10216:'of time. 4 a solicitation and contract for an indefinite quantity must i specify the period of the contract, including', 10217:'the number of options and the period for which the government may extend the contract under each option; ii specify', 10218:'the total minimum and maximum quantity of supplies or services the government will acquire under the contract; subpart 16.5 indefinitedelivery', 10219:'contracts 16.504 iii include a statement of work, specifications, or other description, that reasonably describes the general scope, nature, complexity,and', 10220:'purpose ofthe supplies or services the governmentwill acquireunder thecontract in a manner that will enable a prospective offeror to decide', 10221:'whether to submit an offer; iv state the procedures that the government will use in issuing orders, including the ordering', 10222:'media, and, if multiple awards may be made, state the procedures and selection criteria that the government will use to', 10223:'provide awardees a fair opportunity to be considered for each order see 16.505b1; v include a description of the activities', 10224:'authorized to issue orders; and vi include authorization for placing oral orders, if appropriate, provided that the government has established', 10225:'procedures for obligating funds and that oral orders are confirmed in writing. b application. contracting officersmay usean indefinitequantity contract when', 10226:'the government cannot predetermine, above a specified minimum, the precise quantities of supplies or services that the government will require', 10227:'during the contract period,anditis inadvisable for the government to commit itself for more than a minimum quantity. the contracting officer', 10228:'should use an indefinitequantity contract only when a recurring need is anticipated. c multiple award preference 1 planning the acquisition.', 10229:'i except for indefinitequantity contracts for advisory and assistance services as provided in paragraph c2of this section, the contracting officer', 10230:'must, to the maximum extent practicable, give preference to making multiple awards of indefinitequantity contracts under a single solicitation for', 10231:'the same or similar supplies or services to two or more sources. ii athecontractingofficermustdeterminewhethermultipleawardsareappropriateaspartofacquisition planning. the contracting officer mustavoid situations', 10232:'in which awardees specializeexclusively in one or a few areaswithin thestatement ofwork, thus creating the likelihood that orders in thoseareas', 10233:'willbe awarded on a solesource basis; however, each awardee need not be capable of performing every requirement as well as', 10234:'any other awardee under the contracts. the contracting officershouldconsider the followingwhen determining the number of contracts to be awarded: 1', 10235:'the scope and complexity of the contract requirement. 2 the expected duration and frequency of task or delivery orders. 3', 10236:'the mix of resources a contractor must have to perform expected task or delivery order requirements. 4 the ability to', 10237:'maintain competition among the awardees throughout the contracts’ period of performance. b the contracting officermust notuse the multiple award approach', 10238:'if 1 only one contractor is capable of providing performance at the level of quality required because the supplies or', 10239:'services are unique or highly specialized; 2 based onthe contracting officer’s knowledge ofthe market, more favorable terms and conditions, including', 10240:'pricing, will be provided if a single award is made; 3 the expected cost of administration of multiple contracts outweighs', 10241:'the expected benefits of making multiple awards; 4 the projected task orders are so integrally related that only a single', 10242:'contractor can reasonably perform the work; 5 the total estimated value of the contract is at or below the simplified', 10243:'acquisition threshold; or 6 multiple awards would not be in the best interests of the government. c the contracting officermust', 10244:'documentthe decision whether ornot to use multiple awards inthe acquisition plan orcontract file. the contracting officermay determine that aclass of', 10245:'acquisitions is notappropriate for multipleawards see subpart 1.7. d 1 no task or delivery order contract in an amount estimated', 10246:'to exceed $100 million including all options may be awarded to a single source unless the head of the agency', 10247:'determines in writing that i the task or delivery orders expected under the contract are so integrally related that only', 10248:'a single source can reasonably perform the work; ii the contract provides only for firmfixed price see 16.202 task or', 10249:'delivery orders for a products for which unit prices are established in the contract; or b services for which prices', 10250:'are established in the contract for the specific tasks to be performed; iii only one source is qualified and capable', 10251:'of performing the work at a reasonable price to the government; or iv it is necessary in the public interest', 10252:'to award the contract to a single source due to exceptional circumstances. 2 the head of the agency must notify', 10253:'congress within 30 days after any determination under paragraph c 1iid1iv of this section. federal acquisition regulation 3 the requirement', 10254:'for a determination for a singleaward contract greater than $100 million i is in addition to any applicable requirements of', 10255:'subpart 6.3; and ii is not applicable for architectengineer services awarded pursuant to subpart 36.6. 2 contracts for advisory and', 10256:'assistance services. i except as provided in paragraph c2ii of this section, if an indefinitequantity contract for advisory and assistance', 10257:'services exceeds 3 years and $15 million, including all options, the contracting officermust make multipleawards unless athe contracting officer orother', 10258:'official designated by theheadof the agency determines in writing,as part of acquisition planning,that multiple awards are notpracticable. the contracting officer', 10259:'or other officialmust determine that only one contractor can reasonably perform the work because either the scope of work is', 10260:'unique or highly specialized or the tasks so integrally related; b the contracting officeror other official designated by the head', 10261:'of theagency determines in writing, after the evaluationof offers, that only one offeror is capable of providing the services required', 10262:'at the level of quality required; or c only one offeris received. iithe requirements ofparagraph c2i ofthissection do notapply if', 10263:'thecontracting officer or other official designated by the head of the agency determines that the advisory and assistance services are', 10264:'incidental and not a significant component of the contract. 16.505ordering. a general. 1 in general, the contracting officerdoes not synopsizeordersunder', 10265:'indefinitedelivery contracts; except see 16.505a4 and 11, and 16.505b2iid. 2 individual orders shall clearly describe all services to be performed', 10266:'or supplies to be delivered so the full cost or price for the performance of the work can be established', 10267:'when the order is placed. orders shall be within the scope, issued within the period of performance, and be within', 10268:'the maximum value of the contract. 3 performancebased acquisition methods must be used to the maximum extent practicable, if the', 10269:'contract or order is for services see 37.102a and subpart 37.6. 4 the following requirements apply when procuring items peculiar', 10270:'to one manufacturer: ithe contracting officer must justifyrestricting consideration to an item peculiarto one manufacturer e.g., a particular brandname, product,', 10271:'or a feature of a product that is peculiar to one manufacturer. a brandname item, even if available on more', 10272:'than onecontract, isan itempeculiar to one manufacturer. brandname specifications shall not be used unless theparticular brandname,product, or feature is essential', 10273:'to thegovernment’s requirementsand marketresearch indicates other companies’ similar products, or products lacking the particular feature, do not meet, or cannot', 10274:'be modified to meet, the agency’s needs. ii requirements for use of items peculiar to one manufacturer shall be justified', 10275:'and approved using the formats and requirements from paragraphs b2iia, b, and c of this section, modified to show the', 10276:'brandname justification. a justification is required unless a justification covering the requirements in the order was previously approved for the', 10277:'contract in accordance with 6.3021c or unless the base contract is a singleaward contract awarded under full and open competition.', 10278:'justifications for the use of brandname specifications must be completed and approved at the time the requirement for a brandname', 10279:'is determined. iii aforanorderinexcessof$30,000,thecontractingofficershall— 1 post the justification and supportingdocumentation on the agency website used if any to solicit offersfor', 10280:'orders under the contract; or 2 provide the justification and supporting documentation along with the solicitation to all contract awardees.', 10281:'b the justifications for brandname acquisitions may apply to the portion of the acquisition requiring the brand name item. if', 10282:'the justification is to cover only the portion of the acquisition which is brandname, then it should so state; the', 10283:'approval level requirements will then only apply to that portion. c the requirements in paragraph a4iiia of this section do', 10284:'not apply when disclosure would compromise the national security e.g., would result in disclosure of classified information or create other', 10285:'security risks. d the justification is subject to the screening requirement in paragraph b2iid4 of this section. 5 when acquiring', 10286:'information technology and related services, consider the use of modular contracting to reduce program risk see 39.103a. 6 orders may', 10287:'be placed by using any medium specified in the contract. 7 orders placed under indefinitedelivery contracts must contain the following', 10288:'information: idate of order. subpart 16.5 indefinitedelivery contracts 16.505 iicontract number and order number. iii for supplies and services, line', 10289:'item number, subline item number ifapplicable, description, quantity,and unit price or estimated cost and fee as applicable. the corresponding line', 10290:'item number and subline item number from the base contract shall also be included. iv delivery or performance schedule. v', 10291:'place of delivery or performance including consignee. vi any packaging, packing, and shipping instructions. vii accounting and appropriation data. viii', 10292:'method ofpayment and paymentoffice, ifnot specified inthe contract see 32.1110e. ix north american industry classification system code see 19.102b3. 8', 10293:'orders placed under a taskorder contract or deliveryorder contract awarded by another agency i.e.,a governmentwide acquisition contract, or multiagency contract—', 10294:'i are not exempt from the development of acquisition plans see subpart 7.1, and an information technology acquisition strategy see', 10295:'part 39; ii may not be used to circumvent conditions and limitations imposed on the use of funds e.g., 31', 10296:'u.s.c. 1501a 1; and iii shallcomply with all farrequirements for a consolidated orbundled contractwhen the order meets the definition at', 10297:'2.101 of consolidation or bundling. 9 in accordance with section 1427b of public law 108136 40u.s.c. 1103 note, orders placed', 10298:'under multiagency contracts for services that substantially or to a dominant extent specify performance of architectengineer services, as defined in', 10299:'2.101, shall— i be awarded using the procedures at subpart 36.6; and ii require the direct supervision of a professional', 10300:'architect or engineer licensed, registered or certified in the state, federal district, or outlying area, in which the services are', 10301:'to be performed. 10 i no protest under subpart 33.1 is authorized in connection with the issuance or proposed issuance', 10302:'of an order under a taskorder contract or deliveryorder contract, except— a a protest on the grounds that the order', 10303:'increases the scope, period, or maximum value of the contract; or b 1 for agencies other than dod, nasa, and', 10304:'the coast guard, a protest of an order valued in excess of $10 million 41 u.s.c. 4106f; or 2 for', 10305:'dod, nasa, or the coast guard, a protest of an order valued in excess of $25 million 10 u.s.c. 3406f.', 10306:'ii protests of orders in excess of the thresholds stated in 16.505a10ib may only be filed with the government accountability', 10307:'office, in accordance with the proceduresat 33.104. iii for protests of small business size status for setaside orders, see 19.302.', 10308:'11 publicize orders funded in whole orin part bythe american recovery and reinvestment act of 2009 pub. l. 1115 as', 10309:'follows: i notices of proposed orders shall follow the procedures in 5.704 for posting orders. iiawardnotices for orders shall follow', 10310:'the procedures in 5.705. 12 when using the governmentwide commercial purchase card as a method of payment, orders at or', 10311:'below the micropurchase thresholdare exempt fromverification inthe system for award management asto whether thecontractor has a delinquent debt subject to', 10312:'collection under the treasury offsetprogram top. b orders under multipleaward contracts— 1 fair opportunity. ithe contracting officer must provide eachawardeea', 10313:'fair opportunity to be considered for each order exceeding the micropurchase threshold issued under multiple deliveryorder contracts or multiple taskorder', 10314:'contracts, except— a as provided for in paragraph b2 of this section; or b orders issued under 19.504c1ii. iithe contracting', 10315:'officer may exercise broad discretion in developing appropriate order placement procedures. the contractingofficer should keep submission requirements to a minimum.', 10316:'contracting officers may use streamlined procedures, including oral presentations. if the order does not exceed the simplified acquisition threshold, the', 10317:'contracting officer need notcontacteach of themultiple awardees under the contract beforeselecting anorder awardee if the contracting officer has information available', 10318:'to ensure that each awardee is provided a fair opportunityto beconsidered for each order. federal acquisition regulation the competition requirements', 10319:'in part 6 and the policies in subpart 15.3 do not apply to the ordering process. however, the contracting officershall—', 10320:'a develop placement procedures that will provide each awardee a fair opportunity to be considered for each order and that', 10321:'reflect the requirement and other aspects of the contracting environment; b not use any method such as allocation or designation', 10322:'of any preferred awardee that would not result in fair consideration being given to all awardees prior to placing each', 10323:'order; c tailor the procedures toeach acquisition; d include the procedures in the solicitation and the contract; e consider price', 10324:'or cost under each order as one of the factors in the selection decision; f except for dod, ensure the', 10325:'criteria at 15.1012c15 are met when using the lowest price technically acceptable source selection process; and g except for dod,', 10326:'avoid using the lowest price technically acceptable source selection process to acquire certain supplies and services in accordance with 15.1012d.', 10327:'iii orders exceeding the simplified acquisition threshold. a each order exceeding the simplified acquisition threshold shall be placed on a', 10328:'competitive basis in accordance with paragraph b1iiib of this section, unless supported by a written determination that one of the', 10329:'circumstances described at 16.505b2i applies to the order and the requirement is waived on the basis of a justification that', 10330:'is prepared in accordance with 16.505b2iib; b the contracting officershall— 1 provide a fair notice of the intent to make', 10331:'a purchase, including a clear description of the supplies to be deliveredor the services to be performed and thebasis upon', 10332:'which the selection will be madeto all contractors offering the required supplies or services under the multipleaward contract; and 2', 10333:'afford all contractors responding to the notice a fair opportunityto submit an offer and have that offer fairly considered. iv', 10334:'orders exceeding $6 million. for task or delivery orders in excess of $6 million, the requirement to provide all awardees', 10335:'a fair opportunity to be considered for each order shall include, at a minimum— aanotice of thetask or delivery order', 10336:'that includes a clear statementof the agency’s requirements; b a reasonable response period; c disclosure of the significant factors and', 10337:'subfactors, including cost or price, that the agency expects to consider in evaluating proposals, and their relative importance; d where', 10338:'award is made on a best value basis, a written statement documenting the basis for award and the relative importance', 10339:'of quality and price or cost factors; and e an opportunity for a postaward debriefing in accordance with paragraph b6', 10340:'of this section. v the contractingofficer should consider the following when developing the procedures: a 1 past performanceon earlier orders', 10341:'under the contract,including quality, timeliness and cost control. 2 potential impact on other orders placed with the contractor. 3 minimum', 10342:'order requirements. 4 the amount of time contractors need to make informed business decisions on whether to respond to potential', 10343:'orders. 5 whethercontractors could be encouraged torespond to potential orders by outreach efforts topromote exchanges of information, such as— i', 10344:'seeking comments from two or more contractors on draft statements of work; ii using a multiphased approach when effort required', 10345:'to respond to a potential order may be resource intensive e.g., requirements are complex or need continued development, where all', 10346:'contractors are initially considered on price considerations e.g., rough estimates, and other considerations as appropriate e.g.,proposed conceptual approach, past performance.', 10347:'the contractors most likely to submit the highest value solutions are then selected for oneonone sessions with the government to', 10348:'increase their understanding of the requirements, provide suggestions for refining requirements, and discuss risk reduction measures. b formal evaluation plans', 10349:'orscoringof quotes or offers are notrequired. 2 exceptions to the fair opportunity process. i the contractingofficer shall give every awardee', 10350:'afair opportunity to be considered for a delivery order or task order exceeding the micropurchase threshold unless one of the', 10351:'following statutory exceptions applies: athe agency need for the supplies or services is so urgent that providinga fairopportunity would result', 10352:'in unacceptable delays. subpart 16.5 indefinitedelivery contracts 16.505 b only one awardee is capable of providing the supplies or services', 10353:'required at the level of quality required because the supplies or services ordered are unique or highly specialized. c the', 10354:'order mustbe issued on a solesource basis in the interest of economy and efficiency because it is a logical followon', 10355:'to an order already issued under the contract, provided that all awardees were given a fair opportunity to be consideredforthe', 10356:'original order. d it is necessary to place an order to satisfy a minimum guarantee. e for orders exceeding the', 10357:'simplified acquisition threshold, a statute expressly authorizes or requires that the purchase be made from a specified source. f in', 10358:'accordance with section1331 of public law111240 15 u.s.c. 644r, contracting officers may, at their discretion, set aside orders for any', 10359:'of the small business concerns identified in 19.000a3. when setting aside orders for small business concerns, the specific small business', 10360:'program eligibility requirements identified in part 19apply. g for dod, nasa, and the coast guard, the order satisfies one of', 10361:'the exceptions permitting the use of other than full and open competition listed in 6.302 10 u.s.c. 3406c5. the public', 10362:'interest exception shall not be used unless congress is notified in accordance with 10 u.s.c. 3204a7. ii the justification for', 10363:'an exception to fair opportunity shall be in writing as specified in paragraph b2iia or b of this section. no', 10364:'justification is needed for the exception described in paragraph b2if of this section. a orders exceeding the micropurchase threshold, but', 10365:'not exceeding the simplified acquisition threshold. the contractingofficer shall document the basis for using anexception tothe fair opportunity process. ifthe', 10366:'contracting officer usesthe logical followonexception, the rationale shall describe why the relationship between the initialorder and the followon is logical', 10367:'e.g., in terms of scope, period of performance, or value. b orders exceeding the simplified acquisition threshold. as a minimum,', 10368:'each justification shall include the following information and be approved in accordance with paragraph b2iic of this section: 1 identification', 10369:'ofthe agencyand the contracting activity, and specific identification of the document asa justification for an exceptionto fair opportunity. 2 nature', 10370:'and/or description of the action being approved. 3 a description of thesupplies orservicesrequired to meet the agency’sneeds including theestimated value.', 10371:'4 identification of the exception to fair opportunity see 16.505b2 and the supporting rationale, including a demonstration that the proposed', 10372:'contractor’sunique qualifications or the natureof the acquisition requires use of the exception cited. if the contracting officer uses thelogical followon', 10373:'exception, the rationale shall describe why the relationship between the initial order and the followon is logical e.g., in terms', 10374:'of scope, period of performance, or value. 5 a determination by the contracting officer that the anticipated cost to the', 10375:'government willbe fair and reasonable. 6 any other facts supporting the justification. 7 a statement of theactions, ifany, the agency', 10376:'may take to remove or overcome any barriers that ledto the exception to fair opportunity before any subsequent acquisition for', 10377:'the supplies or services is made. 8 the contractingofficer’s certification that the justificationis accurate and complete to the best of', 10378:'the contracting officer’s knowledge andbelief. 9 evidence that any supporting data that is the responsibility of technical or requirements personnel', 10379:'e.g., verifying the government’s minimum needs orrequirements or other rationale for anexception tofair opportunity and which form a basis for', 10380:'the justification have been certified as complete and accurate by the technical or requirements personnel. 10 a written determination bythe', 10381:'approving official that one of the circumstances inparagraphs b2ia through e and g of this section applies to the order.', 10382:'c approval. 1 for proposed orders exceeding the simplified acquisition threshold, but not exceeding $750,000, the ordering activity contracting officer’s', 10383:'certification thatthe justification is accurateand completeto thebest of the ordering activity contracting officer’s knowledgeandbelief will serveas approval, unless ahigher approval', 10384:'level is established in accordance with agency procedures. 2 for a proposed order exceeding $750,000, but not exceeding $15 million,', 10385:'the justification must be approved by theadvocate for competitionof the activityplacing the order, or by an official named in paragraphb2ii', 10386:'c3 or 4 of this section. this authority is not delegable. 3 for a proposed order exceeding$15 million, but not', 10387:'exceeding $75 million or, for dod, nasa, and the coast guard, not exceeding $100 million, the justification must be approved', 10388:'by— federal acquisition regulation i the head of the procuring activity placing the order; ii a designee who— a ifa', 10389:'member of the armedforces,is a general or flag officer; b if a civilian, is serving in a position in a', 10390:'grade above gs15 under the general schedule or in a comparable or higher position under another schedule; or iii an', 10391:'official named in paragraph b2iic4of this section. 4 for a proposed order exceeding$75 millionor, for dod, nasa, and the coast', 10392:'guard, over $100 million, thejustification must be approved by thesenior procurement executive of the agency placing the order. this authority', 10393:'is not delegable, except in the case of the under secretary of defense for acquisition and sustainment, acting as the', 10394:'senior procurement executive for the department of defense. d posting. 1 except as provided in paragraph b2iid5 of this section,', 10395:'within 14 days after placing an order exceeding the simplified acquisition threshold that does not provide for fair opportunity in', 10396:'accordance with 16.505b, thecontract officershall— i publish a notice in accordance with 5.301; and ii make publicly available the justification', 10397:'required at of this section. 2 the justification shall be made publicly available— i at the gpe https://www.sam.gov; ii on', 10398:'the web site of the agency, whichmay provide access to the justifications by linking to the gpe; and iii must', 10399:'remain posted for a minimum of 30 days. 3 in the case of an order permitted under paragraph b2ia of', 10400:'this section, the justification shall be posted within 30 daysafter award of the order. 4 contracting officersshallcarefully screenall justifications for', 10401:'contractor proprietary dataand remove all such data, and such references and citations as are necessary to protect the proprietary data,', 10402:'before making the justifications available for public inspection. contractingofficers shall also be guided by theexemptions to disclosure of information contained', 10403:'in the freedom of information act 5 u.s.c. 552 and the prohibitions against disclosure in 24.202 in determining whether other', 10404:'data should be removed. although the submitter notice process set out in executive order 12600 predisclosurenotificationprocedures for confidential commercial information', 10405:'doesnot apply, if the justificationappears to containproprietary data,the contracting officer should provide the contractor that submitted the informationan opportunity to', 10406:'review the justification for proprietary data before making the justification available for public inspection, redacted as necessary. this process must', 10407:'not prevent or delay the posting of thejustification inaccordancewith the timeframes required in paragraphs b2iid1 and 3 of this section.', 10408:'5 the posting requirement of this section does not apply— i when disclosure would compromise the national security e.g., would', 10409:'result in disclosure of classified information or create other security risks; or ii to a small business setaside underparagraph b2if', 10410:'3 pricing orders. if thecontract didnot establish the priceforthe supply or service, the contracting officermust establish prices for each order', 10411:'using the policies and methods in subpart 15.4. 4 cost reimbursement orders. for additional requirements for costreimbursement orders, see 16.3013.', 10412:'5 timeandmaterials or laborhour orders. for additional requirements for timeandmaterials or laborhour orders, see 16.601e. 6 postaward notices and debriefing', 10413:'of awardees for orders exceeding $6 million.the contractingofficer shall notify unsuccessful awardees when the total price of a task or', 10414:'delivery order exceeds $6 million. i the procedures at 15.503b1 shall be followed when providing postaward notification to unsuccessful awardees.', 10415:'ii the procedures at 15.506 shall be followed when providing postaward debriefing to unsuccessful awardees. iii a summary of the', 10416:'debriefing shall be included in the task or delivery order file. 7 decision documentation for orders. i the contractingofficer shall', 10417:'document inthe contract filethe rationale for placement and price of eachorder, including thebasis for award and the rationaleforany tradeoffs among', 10418:'cost orprice and noncost considerationsin making the award decision. this documentation need not quantifythe tradeoffs that led to the decision.', 10419:'ii the contract file shall also identify the basis for using an exception to the fair opportunity process see paragraph', 10420:'b2 of this section. subpart 16.5 indefinitedelivery contracts 16.506 iii exceptfordod, the contracting officer shall document in the contract file', 10421:'a justification for use of thelowest price technically acceptable source selection process, when applicable. 8 taskorder and deliveryorder ombudsman. the', 10422:'head of the agency shall designate a taskorder and deliveryorder ombudsman. the ombudsman must review complaints from contractors and ensure', 10423:'they areafforded a fair opportunity to be considered, consistent with theprocedures in the contract. the ombudsman must be asenior agencyofficial', 10424:'who is independent of thecontracting officer and may be the agency’s advocate for competition. 9 small business.the contracting officer should', 10425:'relyon the small business representations at thecontract level but see section 19.3012b2 for order rerepresentations. c limitation on ordering period', 10426:'for taskorder contracts for advisory and assistance services. 1 except as provided for in paragraphs c2 and 3 of this', 10427:'section, the ordering period of a taskorder contract for advisory and assistance services, including all options or modifications, normally may', 10428:'not exceed 5 years. 2 the 5year limitation does not apply when— i a longer ordering period is specifically authorized', 10429:'by a statute; or ii the contract is for an acquisition of supplies or services that includes the acquisition of', 10430:'advisory and assistance services and thecontracting officer,or other official designated by the head of theagency,determinesthat the advisory and assistance services', 10431:'are incidental and not a significant component of the contract. 3 the contractingofficer may extend the contract on a solesource', 10432:'basis only once for a periodnot to exceed 6 months if the contractingofficer, orother official designated by theheadof the agency,', 10433:'determines that— i the award of a followon contract is delayed by circumstances that were not reasonably foreseeable at the', 10434:'time the initial contract was entered into; and ii the extension is necessary to ensure continuity of services, pending the', 10435:'award of the followon contract. 16.506 solicitation provisions and contract clauses. a insert the clause at 52.21618, ordering, in solicitations', 10436:'and contracts when a definitequantity contract, a requirements contract, or an indefinitequantity contract is contemplated. b insert a clause substantially', 10437:'the same as the clause at 52.21619, order limitations, in solicitations and contracts when a definitequantity contract, a requirements contract,', 10438:'or an indefinitequantity contract is contemplated. c insert the clause at 52.21620, definite quantity, insolicitationsandcontracts when a definitequantity contract is', 10439:'contemplated. d 1 insert the clause at 52.21621, requirements, in solicitations and contracts when a requirements contract is contemplated. 2', 10440:'if the contract is for nonpersonal services and related supplies and covers estimated requirements that exceed a specific government activity’s', 10441:'internal capabilityto produce orperform, use the clausewith its alternate i. 3 if the contract includes subsistence for both government use', 10442:'and resale in the same schedule, and similar products may be acquired on a brandname basis, use the clause with', 10443:'its alternate ii but see paragraph d5 of this section. 4 if the contract involves a partial small business setaside,', 10444:'use the clause with its alternate iii but see paragraph d 5 of this section. 5 if the contract i', 10445:'includes subsistence for government use and resale in the same schedule and similar products may be acquired on a brandname', 10446:'basis; and iiinvolves a partial small businesssetaside, use the clause with its alternate iv. e insert the clause at 52.21622,', 10447:'indefinite quantity, in solicitations andcontracts when an indefinitequantity contractis contemplated. f insert the provision at 52.21627, single or multiple awards,', 10448:'in solicitations for indefinitequantity contracts thatmay result in multiple contract awards. modify the provision to specify the estimated number of', 10449:'awards. do not use this provision for advisory and assistance services contracts that exceed 3 years and $15 million including', 10450:'all options. g insert the provision at 52.21628, multiple awards for advisory and assistance services,in solicitations for task order contracts', 10451:'for advisory and assistance services that exceed 3 years and $15 million including all options, unless a determination has been', 10452:'made under 16.504c2ia. modify the provision to specify the estimated number of awards. h see 10.001d for insertion of the', 10453:'clause at 52.2101, market research, when the contract is over $6 million for the procurement of items other than commercial', 10454:'products or commercial services. federal acquisition regulation i see 7.1076 for use of 52.2076,solicitation of offers from small business concerns', 10455:'andsmallbusiness teaming arrangement or joint ventures multipleawardcontracts in solicitations for multipleaward contracts above the substantial bundling threshold of theagency. j', 10456:'insert the clause at 52.21632, taskorder and deliveryorder ombudsman, in solicitations and contracts whena multipleaward indefinitedelivery indefinitequantity contract is contemplated.', 10457:'use the clause with its alternate i when the contract will be available for use by multiple agencies e.g., governmentwide', 10458:'acquisition contracts or multiagency contracts. when placing orders under the multipleaward contract available for use by multiple agencies, the ordering', 10459:'activitys contracting officer shall complete paragraph d2 and include alternate i inthe notice of intent to place an order, and', 10460:'in the resulting order. subpart 16.6 timeandmaterials, laborhour, and letter contracts 16.601 subpart 16.6 timeandmaterials, laborhour, and letter contracts 16.600scope.', 10461:'timeandmaterials contractsandlaborhour contracts are not fixedprice contracts. 16.601 timeandmaterials contracts. a definitions for the purposes oftimeandmaterials contracts. direct materials means', 10462:'those materials that enter directly into the end product, or that are used or consumed directly in connection with the', 10463:'furnishing of the end product or service. hourly rate means the rates prescribed in the contract for payment for labor', 10464:'that meets the labor category qualifications of a labor category specified in the contract that are 1 performed by the', 10465:'contractor; 2 performed by the subcontractors; or 3 transferred betweendivisions, subsidiaries, or affiliates ofthe contractor under acommon control. materials means', 10466:'1 direct materials, including suppliestransferred between divisions,subsidiaries, oraffiliates of thecontractor under a common control; 2 subcontracts for supplies and incidental', 10467:'services for which there is not a labor category specified in the contract; 3 other direct costs e.g., incidental services', 10468:'for which there is not a labor category specified in the contract, travel, computer usage charges, etc. ;and 4 applicable', 10469:'indirect costs. b description. a timeandmaterials contract provides for acquiring supplies or services on the basis of 1 direct labor', 10470:'hours at specified fixed hourly rates that include wages, overhead, general and administrative expenses, and profit; and 2 actual cost', 10471:'for materials except as provided for in 31.20526e and f. c application. a timeandmaterials contract may be used only when', 10472:'it is not possible at the time of placing the contract to estimate accurately the extent or duration of the', 10473:'work or to anticipate costs with any reasonable degree of confidence. see 12.207b for the use of timeandmaterial contracts for', 10474:'certain commercial services. 1 government surveillance. a timeandmaterials contract provides no positive profit incentive to the contractor for cost control', 10475:'or labor efficiency. therefore, appropriate government surveillance of contractorperformance is required to give reasonable assurance that efficient methods and effective', 10476:'cost controls are being used. 2 fixed hourly rates. i the contract shall specify separate fixed hourly rates that include', 10477:'wages, overhead, general and administrative expenses, and profit for each category of labor see 16.601f1. ii for acquisitions of other', 10478:'than commercial products or commercial services awarded without adequate price competition see 15.4031c1, the contract shall specify separate fixed hourly', 10479:'rates that include wages, overhead, general and administrative expenses, and profit for each category of labor to be performed by', 10480:'a the contractor; b each subcontractor; and c each division, subsidiary, or affiliate of the contractor under a common control.', 10481:'iii for contract actions that are not awarded using competitive procedures, unless exempt under paragraph c2 iv of thissection, the', 10482:'fixed hourly ratesforservicestransferred between divisions,subsidiaries, oraffiliates of thecontractor under a common control ashallnot includeprofit for the transferring organization; but b', 10483:'may include profit for theprimecontractor. iv for contract actions that are not awarded using competitive procedures, the fixed hourly rates', 10484:'for services that meetthe definitionof “commercial service” that are transferred between divisions, subsidiaries,or affiliates of the contractor under a common', 10485:'control may be the established catalog or market rate when ait isthe established practice of thetransferring organization to price interorganizational', 10486:'transfers at other than cost for commercialwork of the contractor or any division, subsidiary or affiliate ofthe contractor under acommon', 10487:'control; and b the contracting officerhas not determined the priceto beunreasonable. federal acquisition regulation 3 material handling costs. when included', 10488:'as part of material costs, material handling costs shall include only costs clearly excluded from the laborhour rate. material handling', 10489:'costs may include all appropriate indirect costs allocated to direct materials in accordance with the contractors usual accounting procedures consistent', 10490:'with part 31. d limitations. a timeandmaterials contract or order may be used only if 1 the contractingofficer preparesa determination', 10491:'andfindings that no other contract type is suitable. the determination and finding shall be isigned by the contractingofficer priorto theexecution', 10492:'of the baseperiod or any option periods of the contracts; and ii approved by the head of the contracting activity', 10493:'prior to the execution of the base period when the base period plus any option periods exceeds three years; and', 10494:'2 the contract or order includes a ceiling price that the contractor exceeds at its own risk. also see 12.207', 10495:'b for further limitations on use of timeandmaterials or laborhour contracts for acquisition of commercial products and commercial services. e', 10496:'post award requirements. prior to an increase in the ceiling price of a timeandmaterials or laborhour contract or order, the', 10497:'contracting officer shall 1 conduct an analysis of pricing and other relevant factors to determine if the action is in', 10498:'the best interest of the government; 2 document the decision in the contract or order file; and 3 when making', 10499:'a change that modifies the general scope of i a contract, follow the procedures at 6.303; ii an order issued', 10500:'under the federal supply schedules, follow the procedures at 8.4056; or iii an order issued under multiple award task and', 10501:'delivery order contracts, follow the procedures at 16.505b2. f solicitation provisions. 1 thecontracting officer shall insert the provision at 52.21629,timeandmaterials/labor', 10502:'hour proposalrequirements—otherthancommercial acquisition with adequate pricecompetition, in solicitations contemplating use of a timeandmaterials or laborhour type of contract for the', 10503:'acquisition of other than commercial products or commercial services, if the price is expected to be based on adequate price', 10504:'competition. if authorized by agency procedures, thecontracting officer may amend the provision tomakemandatoryoneof the threeapproaches in paragraph c of the', 10505:'provision, and/or to require the identification of all subcontractors, divisions, subsidiaries,or affiliates includedin a blended labor rate. 2 the contractingofficer', 10506:'shall insertthe provisionat 52.21630, timeandmaterials/laborhour proposal requirements—other than commercial acquisitionwithout adequate pricecompetition, in solicitations for theacquisition of other than commercial', 10507:'products or commercial services contemplating use of a timeandmaterials or laborhour type of contract if the price is not expected', 10508:'to be based on adequate price competition. 3 the contractingofficer shall insertthe provisionat 52.21631, timeandmaterials/laborhour proposal requirements—commercial acquisition, in solicitations', 10509:'contemplating use of a commercial timeandmaterials or laborhour contract. 16.602laborhour contracts. description. a laborhour contract is a variation of thetimeandmaterials', 10510:'contract,differing only in that materials arenot supplied by the contractor. see 12.207b,16.601c, and 16.601d for application and limitations, for timeandmaterials', 10511:'contracts that also apply to laborhour contracts. see 12.207b for the use of laborhour contracts for certain commercial services. 16.603letter', 10512:'contracts. 16.6031 description. a letter contract is a written preliminary contractual instrument that authorizes the contractor to begin immediately manufacturing', 10513:'supplies or performing services. 16.6032 application. a a letter contract may be used when 1 the government’s interestsdemand thatthe contractor', 10514:'be givena binding commitmentsothat work canstartimmediately and 2 negotiating adefinitive contract is not possible in sufficient time to meetthe requirement.', 10515:'however,a letter contract should be as complete and definite as feasible underthe circumstances. subpart 16.6 timeandmaterials, laborhour, and letter contracts', 10516:'16.6034 b when aletter contract award isbased on price competition,the contracting officershallinclude an overall price ceiling in the letter contract.', 10517:'c each letter contract shall, as required by the clause at 52.21625, contract definitization, contain a negotiated definitization schedule including', 10518:'1 dates for submission of the contractors price proposal, required certified cost or pricing data and data other than certified', 10519:'cost or pricing data; and, if required, makeorbuy and subcontracting plans, 2 a date for thestart of negotiations,and3a target datefordefinitization,', 10520:'which shall bethe earliest practicable date for definitization. the schedule will provide for definitization of the contract within 180 days', 10521:'after the date of the letter contract or before completion of 40 percentof the work to be performed, whicheveroccurs first.', 10522:'however, thecontracting officer may,in extreme cases and accordingto agency procedures, authorize anadditional period. if, after exhausting allreasonable efforts, thecontracting officer', 10523:'and thecontractor cannotnegotiate a definitive contract because of failure to reach agreement as to price or fee, the clause at', 10524:'52.21625 requires the contractor to proceedwith the work and provides that the contracting officer may, withthe approval ofthe head of', 10525:'the contracting activity, determine a reasonable price or fee in accordance with subpart 15.4 and part 31, subject to appeal', 10526:'as provided in the disputes clause. d the maximum liability of the government inserted in the clause at 52.21624, limitation', 10527:'of governmentliability, shall bethe estimated amount necessary to cover thecontractor’s requirements for funds before definitization. however, it shall not exceed', 10528:'50 percent of the estimatedcost of the definitive contract unless approvedin advanceby the official that authorized the letter contract. e', 10529:'thecontracting officer shall assign a priority rating to the letter contract ifitis appropriate under 11.604. 16.6033 limitations. a letter contract', 10530:'may be used only after the head of the contracting activity or a designee determines in writing that no other', 10531:'contract is suitable. letter contracts shall not a commit the government to a definitive contract in excess of the funds', 10532:'available at the time the letter contract is executed; b be entered into without competition when competition is required by', 10533:'part 6; or c be amended to satisfy a new requirement unless that requirement is inseparable from the existing letter', 10534:'contract. any such amendment is subject to the same requirements and limitations as a new letter contract. 16.6034 contract clauses.', 10535:'a thecontracting officer shall include in each letter contract the clauses required by this regulation for the type of definitive', 10536:'contract contemplated and any additional clauses known to be appropriate for it. b in addition, the contractingofficer shall insertthe following', 10537:'clauses in solicitations andcontracts when a letter contract is contemplated: 1 the clause at 52.21623, execution and commencementof work,exceptthat this', 10538:'clause may beomittedfrom letter contracts awarded on sf 26; 2 the clause at 52.21624, limitation of government liability, with dollar', 10539:'amounts completed in a manner consistent with 16.6032d; and 3 the clause at 52.21625, contract definitization, with its paragraph b', 10540:'completed in a manner consistent with 16.6032c. if at the time of entering into the letter contract, thecontracting officer knows', 10541:'that thedefinitive contract will be based on adequate price competition or will otherwise meet the criteria of 15.4031 for not', 10542:'requiring submission of certified costorpricingdata,thewords andcertifiedcostorpricingdatainaccordancewithfar 15.408, table 151 supporting its proposal may be deleted from paragraph a of the', 10543:'clause. if the letter contract is being awarded on the basis of price competition, the contracting officer shall use theclause', 10544:'with itsalternate i. c thecontracting officer shall also insert the clause at 52.21626, payments of allowable costs before definitization, in', 10545:'solicitations and contracts if a costreimbursement definitive contract is contemplated, unless the acquisition involves conversion, alteration, or repair of ships.', 10546:'this page intentionally left blank. 16.64 subpart 16.7 agreements 16.703 subpart 16.7 agreements 16.701scope. this subpart prescribes policies and procedures', 10547:'for establishing and using basic agreements and basic ordering agreements. see 13.303forblanket purchase agreements bpa’s and see 35.015b for additional', 10548:'coverage of basic agreements with educational institutions and nonprofit organizations. 16.702 basicagreements. a description. a basic agreement is a written', 10549:'instrument of understanding, negotiated between an agency or contracting activity anda contractor, that1contains contract clauses applying to future contractsbetween the', 10550:'parties during its term and 2 contemplates separate future contracts that will incorporate by reference or attachment the required and', 10551:'applicable clauses agreed upon in the basic agreement. a basic agreement is not a contract. b application. a basic agreement', 10552:'should be used when a substantial number of separate contracts may be awarded to a contractor during a particular period', 10553:'and significant recurring negotiating problems have been experienced with the contractor. basic agreements may be used with negotiatedfixedpriceor costreimbursement contracts.', 10554:'1 basic agreements shall contain iclauses requiredfornegotiated contracts by statute, executive order, and this regulation;and ii other clauses prescribed in', 10555:'this regulation or agency acquisition regulations that the parties agree to include in each contract as applicable. 2 each basic', 10556:'agreement shall provide for discontinuing its future applicability upon 30 days’ written notice by either party. 3 each basic agreementshallbe', 10557:'reviewed annually before the anniversaryof its effectivedate and revised as necessary to conform to the requirements of this regulation. basic', 10558:'agreements may need to be revised before the annual review due to mandatory statutory requirements. a basic agreement may be', 10559:'changed only by modifying the agreement itself and not by a contract incorporating the agreement. 4 discontinuing or modifying abasic', 10560:'agreement shall not affect any priorcontract incorporating the basic agreement. 5 contracting officersof one agency should obtain and use existing', 10561:'basicagreements ofanother agency to the maximum practical extent. c limitations. a basic agreement shall not 1 cite appropriations or obligate', 10562:'funds; 2 state or imply any agreement by the government to place future contracts or orders with the contractor; or', 10563:'3 be used in any manner to restrict competition. d contracts incorporating basic agreements. 1 each contract incorporating a basic', 10564:'agreement shall include a scope of work andprice,delivery,and otherappropriateterms that apply to the particular contract. the basic agreementshallbe incorporated into', 10565:'the contract by specific reference including reference to each amendment or by attachment. 2 the contractingofficer shall includeclauses pertaining to', 10566:'subjects not covered by the basic agreement, but applicable to the contract being negotiated, in the same manner as if', 10567:'there were no basic agreement. 3 if an existing contract is modified to effect new acquisition,the modification shall incorporate the', 10568:'most recentbasic agreement, which shall apply only to work added by the modification, except that this action is not mandatory', 10569:'if the contract or modificationincludes all clauses required by statute, executive order, and this regulation asof the date of the', 10570:'modification. however, if it is in the government’s interest and the contractor agrees, the modification may incorporate themost recent basic', 10571:'agreement for application to the entire contract as of the date of the modification. 16.703 basicordering agreements. a description. a', 10572:'basic ordering agreement is a written instrument of understanding, negotiated between an agency, contracting activity, or contracting office and a', 10573:'contractor, that contains1terms and clausesapplying to future contracts orders between the parties during its term, 2a description, as specific as', 10574:'practicable, of supplies or services to be provided, and 3 methods for pricing, issuing, and delivering future orders under the', 10575:'basic ordering agreement. a basic ordering agreement is not a contract. b application. a basic ordering agreement may be used', 10576:'to expedite contracting for uncertain requirements for supplies or services when specific items, quantities, and prices are not known at', 10577:'the time the agreement is executed, but a substantial number of requirements for the type of supplies or services covered', 10578:'by the agreement are anticipated to be purchased from the contractor. under proper circumstances, the useof theseprocedures can result in', 10579:'economies in ordering partsfor federal acquisition regulation equipment support by reducing administrative leadtime, inventory investment, and inventory obsolescence due to', 10580:'design changes. c limitations. a basic ordering agreement shall not state or imply any agreement by the government to place', 10581:'future contracts or orders with the contractor or be used in any manner to restrict competition. 1 each basic ordering', 10582:'agreement shall i describe the method for determining prices to be paid to the contractor for the supplies or services;', 10583:'ii include delivery terms and conditions or specify how they will be determined; iii list one or more government activities', 10584:'authorized to issue orders under the agreement; iv specify the point at which each order becomes a binding contract e.g.,', 10585:'issuance ofthe order, acceptance of the order in a specified manner, orfailureto rejectthe order within a specified numberof days; v', 10586:'provide that failure to reach agreement on price for any order issued before its price is established see paragraph d3', 10587:'of this section is a dispute under the disputes clause included in the basic ordering agreement; and vi if fast', 10588:'payment procedures will apply to orders, include the special data required by 13.403. 2 each basic ordering agreementshallbe reviewed annually', 10589:'before the anniversaryof its effectivedate and revised as necessary to conform to the requirements of this regulation. basic ordering agreements', 10590:'may need to be revised before the annual review due to mandatory statutory requirements. a basic ordering agreement shall be', 10591:'changed only by modifying the agreement itself and not by individual orders issued under it. modifying a basic ordering agreement', 10592:'shall not retroactively affect orders previously issued under it. d orders. a contracting officer representing anygovernmentactivity listed ina basic ordering', 10593:'agreementmay issue orders for required supplies or services covered by that agreement. 1 before issuing an order under abasic ordering', 10594:'agreement,the contracting officershall i obtain competition in accordance with part 6; ii if the order is being placed after competition,', 10595:'ensure that use of the basic ordering agreement is not prejudicial to other offerors; and iii sign or obtain any', 10596:'applicable justifications and approvals, and any determination and findings, and comply with other requirements in accordance with 1.6021b, as if', 10597:'the order were a contract awarded independently of a basic ordering agreement. 2 contracting officersshall i issue orders under basic', 10598:'ordering agreements on optional form of 347, order for supplies or services, or on any other appropriate contractual instrument; ii', 10599:'incorporate by reference the provisions of the basic ordering agreement; iii if applicable, cite the authority under 6.302 in each', 10600:'order; and iv comply with 5.203 when synopsis is required by 5.201. 3 the contractingofficer shall neither make any final', 10601:'commitment norauthorize thecontractor to begin work onan order under a basic ordering agreement until prices have been established, unless the', 10602:'order establishes a ceiling price limiting thegovernment’s obligation and either i the basic ordering agreement provides adequate procedures for timely', 10603:'pricing of the order early in its performance period; or iithe need for the supplies or services iscompelling and unusually', 10604:'urgent i.e., when the government would be seriously injured, financially or otherwise, if the requirement is not met sooner than', 10605:'would be possible if prices were established before the work began. the contractingofficer shall proceed with pricingas soon as practical.', 10606:'in noevent shall anentire order be pricedretroactively. part 17 special contracting methods sec. 17.000 scope of part. subpart 17.1 multiyear', 10607:'contracting 17.101 authority. 17.102 applicability. 17.103 definitions. 17.104 general. 17.105 policy. 17.1051 uses. 17.1052 objectives. 17.106 procedures. 17.1061 general. 17.1062', 10608:'solicitations. 17.1063 special procedures applicable to dod, nasa, and the coast guard. 17.107 options. 17.108 congressional notification. 17.109 contract clauses.', 10609:'subpart 17.2 options 17.200 scope of subpart. 17.201 [reserved] 17.202 use of options. 17.203 solicitations. 17.204 contracts. 17.205 documentation. 17.206', 10610:'evaluation. 17.207 exercise of options. 17.208 solicitation provisions and contract clauses. subpart 17.3 [reserved] subpart 17.4 leader company contracting 17.401', 10611:'general. 17.402 limitations. 17.403 procedures. subpart 17.5 interagency acquisitions 17.500 scope of subpart. 17.501 general. 17.502 procedures. 17.5021 general. 17.5022', 10612:'the economy act. 17.503 ordering procedures. 17.504 reporting requirements. subpart 17.6 management and operating contracts 17.600 scope of subpart. 17.601', 10613:'definition. 17.602 policy. 17.603 limitations. 17.604 identifying management and operating contracts. 17.605 award, renewal, and extension. subpart 17.7 interagency acquisitions:', 10614:'acquisitions by nondefense agencies on behalf of the department of defense 17.700 scope of subpart. 17.701 definitions. 17.702 applicability. 17.703', 10615:'policy. subpart 17.8 reverse auctions 17.801 scope of subpart. 17.802 definitions. 17.803 policy. 17.804 applicability. 17.805 procedures. 17.806 solicitation provision', 10616:'and contract clauses. this page intentionally left blank. subpart 17.1 multiyear contracting 17.104 17.000scope of part. this part prescribes policies', 10617:'and procedures for the acquisition of supplies and services through special contracting methods, including a multiyear contracting; b options; c', 10618:'leader company contracting; and d the use of reverse auctions to obtain competitive pricing. subpart 17.1 multiyear contracting 17.101 authority.', 10619:'this subpart implements 41 u.s.c. 3903 and 10 u.s.c. 3501 and provides policy and procedures for the use of multiyear', 10620:'contracting. 17.102 applicability. for dod, nasa, and the coast guard, the authorities cited in 17.101 do not apply to contracts', 10621:'for the purchase of supplies to which 40 u.s.c.759 applies information resource management supply contracts. 17.103definitions. as used in this', 10622:'subpart cancellation means the cancellation within a contractually specified time of the total requirements of all remaining program years. cancellation', 10623:'results when the contracting officer 1 notifies the contractor of nonavailability of funds for contract performance for any subsequent program', 10624:'year; or 2 fails to notify the contractor that funds are available for performance of the succeeding program year requirement.', 10625:'cancellation ceiling means the maximumcancellation chargethat thecontractor can receive in the event ofcancellation. cancellation charge means the amount of unrecovered', 10626:'costs which would have been recouped through amortization over the full term of the contract, including the term canceled. multiyear', 10627:'contract means a contract for the purchase of supplies or services for more than 1, but not more than 5,', 10628:'program years. a multiyear contract may provide that performance under the contract during the second and subsequent years of the', 10629:'contract is contingent upon the appropriation of funds, and if it does so provide may provide for a cancellation paymentto', 10630:'bemade to the contractor if appropriationsare not made. the key distinguishing difference between multiyear contracts and multiple year contracts is', 10631:'that multiyear contracts, defined in the statutes cited at 17.101, buy more than 1 year’s requirement of aproduct or service', 10632:'withoutestablishing and having to exercise an option for each program year after the first. nonrecurring costs means those costs which', 10633:'are generally incurred on a onetime basis and include such costs as plant or equipment relocation, plant rearrangement, special tooling', 10634:'and special test equipment, preproduction engineering, initial spoilage and rework, and specialized work force training. recurring costs means costs that', 10635:'vary with the quantity being produced, such as labor and materials. 17.104general. a multiyear contracting is a special contracting method', 10636:'to acquire known requirements in quantities and total cost not over planned requirements for up to 5 years unless otherwise', 10637:'authorized by statute, even though the total funds ultimately to be obligated may not be available at the time of', 10638:'contract award. this method may be used in sealed bidding or contracting by negotiation. b multiyear contracting is a flexible', 10639:'contracting method applicable to a wide range of acquisitions. the extent to which cancellation termsare usedin multiyearcontracts will depend onthe', 10640:'uniquecircumstances of each contract. accordingly, for multiyear contracts, the agency head may authorize modification of the requirements of this subpart', 10641:'and the clause at 52.2172, cancellation under multiyear contracts. c agency funding of multiyear contracts shall conform to thepolicies in', 10642:'omb circular a11 preparation, submission, and execution of the budget and other applicable guidance regarding the funding of multiyear contracts.', 10643:'as provided by that guidance, the funds obligated for multiyear contracts must be sufficientto cover any potential cancellation and/or termination', 10644:'costs; and multiyear contracts for the acquisition of fixed assets should be fully funded or funded in stages that are', 10645:'economically or programmatically viable. federal acquisition regulation d the termination for convenience procedure may apply to any government contract, including', 10646:'multiyear contracts. as contrasted with cancellation, termination can be effected at any timeduring the life of the contractcancellation is effected', 10647:'between fiscal years and can be for the total quantity or partial quantity where as cancellation must be for all', 10648:'subsequent fiscal years’ quantities. 17.105 policy. 17.1051 uses. a except for dod, nasa, andthe coast guard, the contracting officer may', 10649:'enterinto amultiyear contract ifthe head of the contracting activity determines that 1 the need for the supplies or services is', 10650:'reasonably firm and continuing over the period of the contract; and 2 a multiyear contract will serve the best interests', 10651:'of the united states by encouraging full and open competition or promoting economy inadministration, performance, andoperation of theagency’s programs. b', 10652:'for dod, nasa, and the coast guard, the head of the agency may enter into a multiyear contract for supplies', 10653:'if 1 the use of such a contract will result in significant savings of the total estimated costs of carrying', 10654:'out the program through annual contracts; 2 the minimum need to be purchased is expected to remain substantially unchanged during', 10655:'the contemplated contract period in terms of production rate, procurement rate, and total quantities; 3 there is a stable design', 10656:'for the supplies to be acquired, and the technical risks associated with such supplies are not excessive; 4 there is', 10657:'a reasonable expectation that, throughout the contemplated contract period, the head of the agency will request funding for the contract', 10658:'at a level to avoid contract cancellation; and 5 the estimates of both the cost of the contract and the', 10659:'cost avoidance through the use of a multiyear contract are realistic. c the multiyear contracting method may be used for', 10660:'the acquisition of supplies or services. d if funds are not appropriated to support the succeeding years’ requirements, the agency', 10661:'must cancel the contract. 17.1052 objectives. use of multiyear contracting is encouraged to take advantage of one or more of', 10662:'the following: a lower costs. b enhancement of standardization. c reduction of administrative burden in the placement and administration of', 10663:'contracts. d substantial continuity of production or performance, thus avoiding annual startup costs, preproduction testing costs, makeready expenses, and phaseout', 10664:'costs. e stabilization of contractor work forces. f avoidanceof the need for establishing quality control techniques and proceduresfora new contractor', 10665:'each year. g broadening the competitive base with opportunity for participation by firms not otherwise willing or able to compete', 10666:'for lesser quantities, particularly in cases involving high startup costs. h providing incentives to contractors to improve productivity through investment', 10667:'in capital facilities, equipment, and advanced technology. 17.106 procedures. 17.1061 general. a method of contracting. the nature of the requirement', 10668:'should govern the selection of the method of contracting, since the multiyear procedure is compatible with sealed bidding, including twostep', 10669:'sealed bidding, and negotiation. b type of contract. given the longer performance period associated with multiyear acquisition, consideration in pricing', 10670:'fixedpriced contracts should be given to the use of economic price adjustment terms and profit objectives commensurate with contractor risk', 10671:'and financing arrangements. c cancellation procedures. 1 all program years except the first are subject to cancellation. for each program', 10672:'year subject to cancellation, the contractingofficer shall establish acancellation ceiling. ceilings must exclude amounts for requirementsincluded inprior program years. the', 10673:'contracting officer shall reduce thecancellation ceilingforeach program year in direct proportion to the remaining requirements subject to cancellation. for example,', 10674:'consider that the total subpart 17.1 multiyear contracting 17.1062 nonrecurring costs see 15.408, table 151, iii. formats for submission of', 10675:'line item summaries c8 are estimated at 10 percent of the total multiyear price, and the percentages for each of', 10676:'the program year requirements for 5 years are i30 in thefirstyear, ii30 in the second, iii20 inthe third, iv10 in', 10677:'thefourth, and v10 in the fifth. thecancellation percentages, after deducting3 percent for the first program year, would be 7,4, 2,', 10678:'and 1 percentof the total price applicable tothe second, third, fourth, and fifthprogramyears, respectively. 2 in determining cancellation ceilings, the', 10679:'contracting officermust estimate reasonable preproduction or startup, labor learning, andother nonrecurring costs to be incurred by an average prime contractor', 10680:'or subcontractor, whichwould beapplicable to, and which normallywouldbe amortizedover, the itemsor services to be furnished underthe multiyear requirements. nonrecurring costs', 10681:'include such costs, where applicable, as plant or equipment relocation or rearrangement, special tooling and special test equipment, preproduction engineering,', 10682:'initial rework, initial spoilage, pilot runs, allocable portions of the costs of facilities to be acquired or established for the', 10683:'conduct of the work, costs incurred for the assembly, training, and transportation to and from the job site of a', 10684:'specialized work force, and unrealized labor learning. they shall not include any costs of labor or materials, or other expenses', 10685:'except as indicated above, which might be incurred for performance of subsequent program year requirements. the total estimate of the', 10686:'above costs must then be compared with thebestestimateof the contract cost toarriveat a reasonable percentage or dollar figure. to performthiscalculation,', 10687:'the contracting officershouldobtain inhouse engineering cost estimates identifying the detailed recurring and nonrecurring costs, and the effectof labor learning. 3', 10688:'the contractingofficer shall establish cancellationdates for each program year’s requirements regarding production leadtime and the date by which funding for', 10689:'theserequirements can reasonably be established. the contracting officer shall include these dates in the schedule, as appropriate. d cancellation ceilings.', 10690:'cancellation ceilings anddates maybe revised after issuing the solicitation if necessary. in sealed bidding, thecontracting officer shall changethe ceiling by', 10691:'amendingthe solicitation before bid opening. in twostep sealed bidding, discussions conducted during the first step may indicate the need for', 10692:'revised ceilings and dates which may be incorporated in step two. in a negotiated acquisition, negotiations with offerors may provide', 10693:'information requiring a change in cancellation ceilings and dates before final negotiation and contract award. e payment of cancellation charges.if', 10694:'cancellationoccurs,the government’s liability willbe determined by the terms of the applicable contract. f presolicitation or prebid conferences.to ensure that all', 10695:'interested sources of supply are thoroughly aware ofhow multiyear contracting is accomplished, use of presolicitation or prebid conferences may be', 10696:'advisable. g payment limit. thecontracting officer shall limit the government’s paymentobligation toan amountavailable for contract performance. thecontracting officer shall insert', 10697:'the amount for the first program year in the contract upon award and modify it for successive program years upon', 10698:'availability of funds. h termination payment. if the contract is terminated for the convenience of the government in whole, including', 10699:'requirementssubject to cancellation, the government’s obligation shall not exceed the amount specified in the schedule as available for contract performance,', 10700:'plus the cancellation ceiling. 17.1062 solicitations. solicitations for multiyear contracts shall reflect all the factors to be considered for evaluation,', 10701:'specifically including the following: a the requirements, by item of supply or service, for the 1 first program year; and', 10702:'2 multiyear contract including therequirements for each program year. b criteria for comparing the lowest evaluated submission on the first', 10703:'program year requirements to the lowest evaluated submission on the multiyear requirements. c a provision that, if the government determines', 10704:'before award that only the first program year requirements are needed, thegovernment’s evaluation of theprice or estimatedcostandfee shall consider only', 10705:'the firstyear. d a provision specifying a separate cancellation ceiling on a percentage or dollar basis and dates applicable to', 10706:'each program year subject to a cancellation see 17.1061c and d. e a statement that award will not be made', 10707:'on less than the first program year requirements. f the government’s administrative costs ofannual contractingmay be used as afactorin theevaluation', 10708:'only if they can be reasonably established and are stated in the solicitation. g the cancellation ceiling shall notbe an', 10709:'evaluation factor. 17.1063 federal acquisition regulation 17.1063special procedures applicable to dod, nasa, and the coast guard. a participation by subcontractors,', 10710:'suppliers, and vendors. in order to broaden the defense industrial base, to the maximum extent practicable 1 multiyear contracting shall', 10711:'be used in such a manner as to seek, retain, and promote the use under such contracts of companies that', 10712:'are subcontractors, suppliers, and vendors; and 2 upon accrual of any payment or other benefit undersuch a multiyear contract to', 10713:'any subcontractor, supplier, or vendor company participating in such contract, such payment or benefit shall be delivered to such company', 10714:'in the most expeditious manner practicable. b protection of existing authority. to the extentpracticable, multiyear contracting shall not becarried out', 10715:'in a manner to preclude or curtail the existing ability of the department or agency to provide for termination of', 10716:'a prime contract, the performanceof which isdeficient with respect to cost, quality,or schedule. c cancellation or termination for insufficient funding.', 10717:'in the event funds are not made available for the continuation of a multiyear contract awarded using the procedures in', 10718:'this section, the contract shall be canceled or terminated. d contracts awarded under the multiyear procedure shall be firmfixedprice, fixedprice', 10719:'with economic price adjustment, or fixedprice incentive. e recurring costs in cancellation ceiling. the inclusion of recurring costs in cancellation', 10720:'ceilings is an exception to normal contract financing arrangements and requires approval by the agency head. f annual and multiyear', 10721:'proposals. obtaining both annual and multiyear offers providesreduced lead time for making anannual awardin theevent that the multiyear awardis not', 10722:'in the government’s interest. obtaining both also provides a basis for the computation of savings and other benefits. however,the preparation', 10723:'and evaluationof dual offersmay increase administrative costs and workload for both offerors and the government, especially for large or complex', 10724:'acquisitions. the head of a contracting activity may authorize the use of a solicitation requesting only multiyear prices, provided it', 10725:'is found that such a solicitationis in the government’sinterest, and that dual proposals arenot necessary to meet the objectives in', 10726:'17.1052. g level unit prices. multiyear contract procedures provide for the amortization of certain costs over the entire contract quantity', 10727:'resulting in identical level unit prices except when the economic price adjustment terms apply for all items or services underthe', 10728:'multiyearcontract. iflevel unit pricing is notin the government’s interest, the head of a contracting activity may approve the use of', 10729:'variable unit prices, provided that for competitive proposals there is a valid method of evaluation. 17.107options. benefits may accrue byincluding', 10730:'options ina multiyear contract. in that event, contracting officers must follow the requirements of subpart 17.2.optionsshouldnotincludechargesforplantandequipmentalreadyamortized,orother nonrecurring charges which wereincluded', 10731:'in the basic contract. 17.108 congressional notification. a except for dod, nasa, and the coast guard, a multiyear contract which', 10732:'includes a cancellation ceiling in excess of $15 million may not be awarded until the head of the agency gives', 10733:'written notification of the proposed contract and of the proposed cancellation ceiling for that contract to the committees on appropriations', 10734:'of the house of representatives and senate and the appropriate oversight committees of the house and senate for the agency', 10735:'in question. information on such committeesmay not be readily available to contracting officers. accordingly, agenciesshouldprovide such information through its internal', 10736:'regulations. the contract may not be awarded until the thirtyfirstday after the date of notification. b for dod, nasa, and', 10737:'the coast guard, a multiyear contract which includes a cancellation ceiling in excess of $150 million may not be awarded', 10738:'until the head of the agency gives written notification of the proposed contract and of the proposed cancellation ceiling for', 10739:'that contract to the committees on armed services and appropriations of the house of representatives and senate. the contract may', 10740:'not be awarded until the thirtyfirstday after the date of notification. 17.109contract clauses. a thecontracting officer shall insert the clause', 10741:'at 52.2172, cancellation under multiyear contracts, in solicitations and contracts when a multiyear contract is contemplated. b economic price adjustment', 10742:'clauses. economic price adjustment clauses are adaptable to multiyear contracting needs. when the period of production is likely to warrant', 10743:'a labor and material costs contingency in the contract price, the contracting subpart 17.1 multiyear contracting 17.109 officer should normally', 10744:'usean economic priceadjustmentclause see 16.203. when contracting for services, the contracting officer 1 shall add the clause at 52.22243, fair', 10745:'labor standards act and service contract labor standards price adjustment multiple year and option contracts,when the contract includes the clause', 10746:'at 52.22241, service contract labor standards; 2 may modify the clause at 52.22243 in overseas contracts when laws, regulations, or', 10747:'international agreements require contractors to pay higher wage rates; or 3 may use an economic price adjustment clause authorized by', 10748:'16.203, when potential fluctuations require coverage and are not included in cost contingencies provided for by the clause at 52.22243.', 10749:'this page intentionally left blank. 17.16 subpart 17.2 options 17.203 subpart 17.2 options 17.200scope of subpart. this subpart prescribes policies', 10750:'and procedures for the use of option solicitation provisions and contract clauses. except as provided in agency regulations, this subpart', 10751:'does not apply to contracts for a services involving the construction, alteration, or repair including dredging, excavating, and painting of', 10752:'buildings, bridges, roads, or other kinds of real property; b architectengineerservices;and c research and development services. however, it does not', 10753:'preclude the use of options in those contracts. 17.201[reserved] 17.202use of options. a subject to the limitations of paragraphs b', 10754:'and c of this section, for both sealed bidding and contracting by negotiation, the contracting officer may include options in', 10755:'contracts when it is in the government’s interest. when using sealed bidding, thecontracting officer shall make a written determination that', 10756:'there isa reasonable likelihood that theoptions will be exercised before including the provision at 52.2175, evaluation of options, in the', 10757:'solicitation. see 17.207f with regard to the exercise of options. b inclusion of anoption isnormally not in the government’s interest', 10758:'when, in the judgment of the contracting officer 1 the foreseeable requirements involve i minimum economic quantities i.e., quantities large', 10759:'enoughto permit the recovery of startup costs and the production of the required supplies at a reasonable price; and iidelivery', 10760:'requirements far enough into the future topermitcompetitive acquisition, production, and delivery. 2 an indefinitequantity or requirements contract would be more', 10761:'appropriate than a contract withoptions. however, this does not preclude the use of an indefinite quantity contract or requirements contract', 10762:'with options. c thecontracting officer shall not employ options if 1 the contractor will incur undue risks; e.g., the price', 10763:'or availability of necessary materials or labor is not reasonably foreseeable; 2 market prices for the supplies or services involved', 10764:'are likely to change substantially; or 3 the option represents known firm requirements for which funds are available unless i', 10765:'the basic quantity is a learning or testing quantity; and ii competition for the option is impracticable once the initial', 10766:'contract is awarded. d in recognition of 1 the government’s need incertain service contractsforcontinuity of operations; and 2 the potential', 10767:'cost of disrupted support, options may be included in service contracts if there is an anticipated need for a similar', 10768:'service beyond the first contract period. 17.203solicitations. a solicitations shall include appropriate option provisions and clauses when resulting contracts will', 10769:'provide for the exercise of options see 17.208. b solicitations containing option provisions shall state the basis of evaluation, either', 10770:'exclusive or inclusive of the option and, when appropriate, shall informofferorsthat it is anticipated that the government mayexercise theoption at', 10771:'time of award. c solicitations normally should allow option quantitiesto beoffered withoutlimitation as toprice,and there shall be no limitation as', 10772:'to price if the option quantity is to be considered in the evaluation for award see 17.206. d solicitations thatallow', 10773:'the offer of options at unitprices which differ from the unit prices for the basic requirement shall state that offerors', 10774:'may offer varyingprices for options, depending on the quantities actually ordered and the dateswhen ordered. e if it is anticipated', 10775:'that the government may exercise an option at the time of award and if the condition specified in paragraph d', 10776:'of this section applies, solicitations shall specify the price at which the government will evaluate the option highest option price', 10777:'offered or option price for specified requirements. f solicitations may, in unusual circumstances, require thatoptionsbe offered atprices no higher than', 10778:'those for the initial requirement; e.g., when 1 the option cannot be evaluated under 17.206; or; federal acquisition regulation 2', 10779:'future competition for the option is impracticable. g solicitations thatrequire the offering ofan optionat prices no higher than thoseforthe initial', 10780:'requirement shall 1 specify that the government will accept an offercontaining an option price higherthan the base price only if', 10781:'the acceptance does notprejudice any other offeror; and 2 limit option quantities for additional supplies to not more than 50', 10782:'percent of the initial quantity of the same line item. in unusual circumstances, an authorized person at alevel above the', 10783:'contracting officermay approve agreater percentage ofquantity. h includethe value of optionsin determining if the acquisition will exceedthe world trade organization', 10784:'government procurement agreement or free trade agreement thresholds. 17.204contracts. a the contract shall specify limits on the purchase of additional', 10785:'supplies or services, or the overall duration of the term of the contract, including any extension. b the contract shall', 10786:'state the period within which the option may be exercised. c the period shall be set so as to provide', 10787:'the contractor adequate lead time to ensure continuous production. d the period may extend beyond the contract completion date for', 10788:'service contracts. this is necessary for situations when exercise of the option would result in the obligation of funds that', 10789:'are not available in the fiscal year in which the contract would otherwise be completed. e unless otherwise approved in', 10790:'accordance with agency procedures, the total of the basic and option periods shall not exceed 5 years in the case', 10791:'of services, and the total of the basic and option quantities shall not exceed the requirement for 5years in the', 10792:'case of supplies. theselimitations donot applyto information technology contracts. however,statutes applicable to various classes of contracts, for example, the service', 10793:'contract labor standards statute see 22.10021, may place additional restrictions on the length of contracts. f contracts may express options', 10794:'for increased quantities of supplies or services in terms of 1 percentage of specific line items, 2 increase in specific', 10795:'line items; or 3 additional numbered line items identified as the option. g contracts may express extensions of the term', 10796:'of the contract as an amended completion date or as additional time for performance; e.g., days, weeks, or months. 17.205documentation.', 10797:'a thecontracting officer shall justifyin writingthe quantities or the termunder option,the notificationperiod for exercising the option, and any limitation on', 10798:'option price under 17.203g; and shall include the justification document in the contract file. b any justifications and approvals and', 10799:'any determination and findings required by part 6 shall specify both the basic requirement and the increase permitted by the', 10800:'option. 17.206evaluation. a inawarding the basiccontract, the contracting officer shall, except as provided in paragraph b of this section, evaluate', 10801:'offers for any option quantities or periods containedin a solicitation when it hasbeendetermined priorto soliciting offers that the government is', 10802:'likelyto exercisethe options. see 17.208. b the contractingofficer need not evaluate offersforany option quantities when it is determinedthat evaluation would', 10803:'not be in the best interests of the government and this determination is approved at a level above the contractingofficer.', 10804:'an example of a circumstance that may support a determination not to evaluate offers for option quantitiesis when there isa', 10805:'reasonable certainty that funds will be unavailable to permit exercise of the option. 17.207 exercise of options. a when exercising', 10806:'an option, the contractingofficer shall provide writtennotice to the contractor within the time period specified in the contract. b when', 10807:'the contract provides for economic price adjustment and the contractor requests a revision of the price, the contracting officershalldetermine theeffect', 10808:'ofthe adjustment on prices under the optionbefore theoption isexercised. c thecontracting officer may exerciseoptions onlyafter determining that 1 funds are', 10809:'available; subpart 17.2 options 17.208 2 the requirement covered by the option fulfills an existing government need; 3 the exercise', 10810:'of theoption isthe most advantageous method offulfilling the government’sneed, priceandother factors see paragraphs d and e of this section considered;', 10811:'4 the option was synopsized in accordance with part 5 unless exempted by 5.202a11orotherappropriate exemptions in 5.202; 5 the contractordoes', 10812:'not have an active exclusion recordin the system for awardmanagement see far 9.4051; 6 the contractor’s past performance evaluationson other', 10813:'contractactions have been considered; and 7 the contractor’s performance on this contract has been acceptable, e.g., received satisfactory ratings. d', 10814:'the contractingofficer, afterconsidering price and other factors, shall make the determination on thebasis of one of the following: 1 a', 10815:'new solicitation fails to produce a better price or a more advantageous offer than that offered by the option. if', 10816:'it is anticipated thatthe best price available isthe option price or that this is themoreadvantageousoffer, the contracting officer should not', 10817:'use this method of testing the market. 2 an informal analysis of prices or an examination of the market indicates', 10818:'that the option price is better than prices available in the market or that theoption isthe more advantageous offer. 3', 10819:'the time between the award of the contract containing the option and the exercise of the option is so short', 10820:'that it indicates the option price is the lowest price obtainable or the more advantageous offer. the contracting officer shall', 10821:'take into consideration such factors as market stability and comparison of the time since award with the usual duration of', 10822:'contracts for such supplies or services. e the determination of other factors under paragraph c3 of this section 1 should', 10823:'take into account the government’sneedforcontinuity of operations and potential costs ofdisrupting operations; and 2 mayconsiderthe effect on small business. f', 10824:'beforeexercising an option, the contracting officer shall make a written determination for the contract file that exercise is in accordance', 10825:'with the terms of the option, the requirements of this section, and part 6.tosatisfyrequirementsof part 6 regarding full and open', 10826:'competition, the option must have been evaluated as part of the initial competition and be exercisable at an amount specified', 10827:'in or reasonably determinable from the terms of the basic contract, e.g. 1 a specific dollar amount; 2 an amount', 10828:'to be determined by applying provisions or a formula provided in the basic contract, but not including renegotiation of the', 10829:'price for work in a fixedprice type contract; 3 in the case of a costtype contract, if i the option', 10830:'contains a fixed or maximum fee; or ii the fixed or maximum fee amount is determinable by applying a formula', 10831:'contained in the basic contract but see 16.102c; 4 a specific price that is subject to an economic price adjustment', 10832:'provision; or 5 a specific price that is subject to change as the result of changes to prevailing labor rates', 10833:'provided by the secretary of labor. g the contract modification or other written document which notifies the contractor of the', 10834:'exercise of the option shall cite the option clause as authority. 17.208 solicitation provisions and contract clauses. a insert a', 10835:'provision substantially the same as the provision at 52.2173, evaluation exclusive of options, in solicitations when the solicitation includes an', 10836:'option clause and does not include one of the provisions prescribed in paragraph b or c of this section. b', 10837:'insert a provision substantially the same as the provision at 52.2174, evaluation ofoptions exercised at timeof contractaward, in solicitations when', 10838:'thesolicitation includes an optionclause, thecontracting officer has determined that there is a reasonable likelihood that the option will be exercised,', 10839:'and the option may be exercised at the time of contract award. c insert a provision substantially the same as', 10840:'the provision at 52.2175, evaluation of options, in solicitations when 1 the solicitation contains an option clause; 2 an option', 10841:'is not to be exercised at the time of contract award; 3 a firmfixedprice contract, a fixedprice contract with economic', 10842:'price adjustment, or other type of contract approved under agency procedures is contemplated; and federal acquisition regulation 4 the contractingofficer', 10843:'hasdetermined that thereis a reasonable likelihood that the optionwill be exercised. for sealed bids, the determination shall be in writing.', 10844:'d insert a clause substantially the same as the clause at 52.2176, optionforincreased quantity, insolicitationsand contracts, other than those for', 10845:'services, when the inclusion of an option is appropriate see 17.200 and 17.202 and the option quantity is expressed as', 10846:'a percentage of the basic contract quantity or as an additional quantity of a specific line item. e insert a', 10847:'clause substantially the same as the clause at 52.2177, option for increased quantityseparately priced line item, in solicitations and contracts,', 10848:'other than those for services, when the inclusion of an option is appropriate see 17.200 and 17.202 and the option', 10849:'quantity is identified as a separately priced line item having the same nomenclature as a corresponding line item. f insert', 10850:'a clause substantially the same as the clause at 52.2178, option to extend services, in solicitations and contracts for services', 10851:'when the inclusion of an option is appropriate. see 17.200, 17.202, and 37.111. g insert a clause substantially the same', 10852:'as the clause at 52.2179, optionto extend the term of the contract, in solicitations and contracts when the inclusion of', 10853:'an option is appropriate see 17.200 and 17.202 and it is necessary to include in the contract any or all', 10854:'of the following: 1 a requirement that the government must give the contractor a preliminary written notice of its intent', 10855:'to extend the contract. 2 a statement that an extension of the contract includes an extension of the option. 3', 10856:'a specified limitation on the total duration of the contract. subpart 17.3 [reserved] subpart 17.3 [reserved] this page intentionally left', 10857:'blank. 17.32 subpart 17.4 leader company contracting 17.403 subpart 17.4 leader company contracting 17.401general. leader company contracting is an extraordinary', 10858:'acquisition technique that is limited to special circumstances and utilized only when its use is in accordance with agency procedures.', 10859:'a developer or sole producer of a product or system is designated underthis acquisition technique to be the leader company,', 10860:'and to furnish assistance andknowhow under an approved contract tooneor more designatedfollowercompanies, so they canbecome a source of supply. the', 10861:'objectives of this technique are one or more of the following: a reduce delivery time. b achieve geographic dispersion of', 10862:'suppliers. c maximize the use of scarce tooling or special equipment. d achieve economies in production. e ensure uniformity and', 10863:'reliability in equipment, compatibility or standardization of components, and interchangeability of parts. f eliminate problems in the use of proprietary', 10864:'data that cannot be resolved by more satisfactory solutions. g facilitate the transition from development to production and to subsequent', 10865:'competitive acquisition of end items or major components. 17.402limitations. a leader company contracting is to be used only when 1', 10866:'the leader company has the necessary production knowhow and is able to furnish required assistance to the followers; 2 no', 10867:'other source can meet the government’s requirements withoutthe assistanceof aleader company; 3 the assistance required of the leader company is', 10868:'limited to that which is essential to enable the followers to produce the items; and 4 its use is authorized', 10869:'in accordance with agency procedures. b when leader company contracting is used, the government shall reserve the right to approve', 10870:'subcontracts between the leader company and the followers. 17.403 procedures. a thecontracting officer may award a prime contract toa 1', 10871:'leader company,obligating it tosubcontract a designated portion of the required end items to aspecified follower company and to assist it', 10872:'to produce the required end items; 2 leader company,forthe required assistance to a follower company, and aprimecontract to the follower', 10873:'for production of the items; or 3 followercompany, obligatingitto subcontract witha designated leader company for the required assistance. b the', 10874:'contractingofficer shall ensure thatanycontract awarded under this arrangement contains a firm agreement regarding disclosure, if any,of contractor trade secrets, technical', 10875:'designs or concepts, and specific data, or software, of a proprietary nature. this page intentionally left blank. 17.42 subpart 17.5', 10876:'interagency acquisitions 17.5021 subpart 17.5 interagency acquisitions 17.500scope of subpart. a this subpart prescribespolicies and procedures applicable to all interagency', 10877:'acquisitions under any authority, except as provided for in paragraph c of this section. in addition to complying with the', 10878:'interagency acquisition policy and procedures in this subpart, nondefense agencies acquiring supplies and services on behalf of the department of', 10879:'defense shall also comply with the policy and procedures at subpart 17.7. b this subpart applies to interagency acquisitions, see', 10880:'2.101 for definition, when 1 an agency needing suppliesor services obtains them usinganother agency’s contract; or 2 an agency uses', 10881:'another agency to provide acquisition assistance, such as awarding and administering a contract, a task order, or delivery order. c', 10882:'this subpart does not apply to 1 interagency reimbursable work performed by federal employees other than acquisition assistance, or interagency', 10883:'activities where contracting is incidental to the purpose of the transaction; or 2 orders of $600,000 or less issued against', 10884:'federal supply schedules. 17.501general. a interagency acquisitions are commonly conducted through indefinitedelivery contracts, such as task and delivery order contracts.', 10885:'the indefinitedelivery contracts used most frequently to support interagency acquisitions are federal supply schedulesfss, governmentwideacquisition contracts gwacs, and multiagency contracts', 10886:'macs. b an agency shall not use an interagency acquisition to circumvent conditions and limitations imposed on the use of', 10887:'funds. c an interagency acquisition is not exempt from the requirements of subpart 7.3, contractor versus government performance. d an', 10888:'agency shall notuse an interagency acquisition tomake acquisitions conflictingwith anyother agency’sauthority or responsibility for example, that of the administrator of', 10889:'general services under title 40, united states code, public buildings,property and works and 41 u.s.c. division c of subtitle i,', 10890:'procurement. 17.502 procedures. 17.5021 general. a written agreement on responsibility for management and administration—. 1 assisted acquisitions. i prior to', 10891:'the issuance of a solicitation, the servicing agency and the requesting agency shall both sign a written interagency agreement that', 10892:'establishes the general terms and conditions governing the relationship between the parties, including roles and responsibilities for acquisition planning, contract', 10893:'execution, and administration and management of the contracts or orders. the requesting agency shall provide to the servicing agency any', 10894:'unique terms, conditions, and applicable agency specific statutes, regulations, directives, and other applicable requirements for incorporation into the order or', 10895:'contract. in the event there are no agencyunique requirements beyondthe far,the requesting agency shall so inform the servicing agency contractingofficerinwriting.', 10896:'foracquisitionsonbehalfofthedepartmentofdefense,alsosee subpart 17.7. for patent rights, see 27.3042. in preparing interagency agreements to support assisted acquisitions, agenciesshouldreview the office of', 10897:'federal procurement policy ofpp guidance, interagency acquisitions, available at https://www.whitehouse.gov/wpcontent/ uploads/legacydrupalfiles/omb/assets/omb/procurement/interagencyacq/iacrevised.pdf . iieach agency’s fileshallinclude the interagency agreement betweenthe requesting', 10898:'and servicing agency, and shall include sufficientdocumentation to ensure an adequate audit consistent with 4.801b. 2 direct acquisitions. the requesting', 10899:'agency administers the order; therefore, no written agreement with the servicing agency is required. b businesscase analysis requirements for multiagency', 10900:'contracts and governmentwide acquisition contracts. in order to establish a multiagency or governmentwide acquisition contract, a businesscase analysis must be', 10901:'prepared by the servicing agency and approved in accordance with the ofpp business case guidance, available at https://www.whitehouse.gov/wpcontent/ uploads/legacydrupalfiles/omb/procurement/memo/developmentreviewandapprovalofbusinesscasesforcertain interagencyandagencyspecificacquisitionsmemo.pdf', 10902:'. the businesscase analysis shall— 1 considerstrategies for the effectiveparticipation of small businesses during acquisition planning see 7.103u; 17.5022 federal', 10903:'acquisition regulation 2 detail the administration of such contract, including an analysis of all direct and indirect costs to the', 10904:'government of awarding and administering such contract; 3 describe the impactsuch contract will have on the ability of the government', 10905:'toleverage its purchasing power, e.g., will it have a negative effectbecause it dilutesother existing contracts; 4 include an analysis concluding', 10906:'that there is a need for establishing the multiagency contract; and 5 document roles and responsibilities in the administration of', 10907:'the contract. 17.5022 the economy act. a the economy act 31 u.s.c. 1535 authorizes agencies to enter into agreements to', 10908:'obtain supplies or services from anotheragency. the farapplies when oneagency uses another agency’s contract to obtain supplies or services. if', 10909:'the interagency business transaction does not result in a contract or anorder, then the far doesnot apply. the economy act', 10910:'also provides authority for placement of orders between major organizational unitswithin anagency; procedures for such intra agency transactions are addressed', 10911:'in agency regulations. b the economy act applies when more specific statutory authority does not exist. examples of more specific', 10912:'authority are 40 u.s.c. 501 for the federal supply schedules subpart 8.4, and 40 u.s.c. 11302e for governmentwide acquisition contracts', 10913:'gwacs. c requirements for determinations and findings. 1 each economy act order to obtain supplies or services by interagency acquisition', 10914:'shall be supported by a determination and findings d&f. the d&f shall i state that use of an interagency acquisition', 10915:'is in the best interest of the government; ii state that the supplies or services cannot be obtained as conveniently', 10916:'or economically by contracting directly with a private source; and iii include a statement that at least one of the', 10917:'following circumstances applies: athe acquisition will appropriately be made under an existing contractof the servicing agency, entered into beforeplacement ofthe', 10918:'order, to meet the requirements of the servicing agencyforthe same or similar supplies or services. b the servicing agency has', 10919:'the capability or expertise to enter into a contract for such supplies or services that is not available within the', 10920:'requestingagency. c the servicing agency is specifically authorized by law or regulation to purchase such supplies or services on behalf', 10921:'of other agencies. 2 the d&f shall be approvedby acontracting officer of the requesting agency with authority to contractforthe supplies', 10922:'or services tobe ordered, or by another officialdesignated bythe agencyhead, except that, ifthe servicing agencyis not covered by the far,', 10923:'approval of the d&f may not be delegated below the seniorprocurement executive of therequesting agency. 3 the requesting agencyshallfurnish a', 10924:'copy of the d&f to the servicing agency with the request for order. d payment. 1 the servicing agency may', 10925:'ask the requesting agency, in writing, for advance payment for all or part of the estimated cost of furnishing the', 10926:'supplies or services. adjustment on the basis of actual costs shall be made as agreed to by the agencies. 2', 10927:'if approved by the servicing agency, payment for actual costs may be made by therequesting agency after the supplies or', 10928:'services have been furnished. 3 bills rendered or requests for advance payment shall not be subject to audit or certification', 10929:'in advance of payment. 4 in noeventshallthe servicing agency require, or the requestingagency pay, any fee or chargein excess ofthe', 10930:'actual cost or estimated cost if the actual cost is not known of entering into and administering the contract or', 10931:'other agreement under which the order is filled. 17.503 ordering procedures. a before placingan orderforsupplies orservices with another government agency,', 10932:'the requesting agency shall follow the procedures in 17.5021 and, if under the economy act, also 17.5022. b the order', 10933:'may be placed on any form or document that is acceptable to both agencies. the order should include 1 a', 10934:'description of the supplies or services required; 2 delivery requirements; 3 a funds citation; 4 a payment provision see 17.5022d', 10935:'for economy act orders; and 5 acquisition authority as may be appropriate see 17.503d. subpart 17.5 interagency acquisitions 17.504 c', 10936:'the requesting and servicing agencies should agree to procedures for the resolution of disagreements that may arise under interagency acquisitions,', 10937:'including, in appropriate circumstances, the use of a thirdparty forum. if a third party is proposed, consent of the third', 10938:'party should be obtained in writing. d when an interagency acquisition requires the servicing agency to award a contract, the', 10939:'following procedures also apply: 1 if a justificationandapproval or a d&f otherthan the requesting agency’s d&f required in 17.5022c is', 10940:'required bylawor regulation, the servicing agency shall execute and issue the justification and approval or d&f. the requesting agency shall', 10941:'furnish the servicing agency any information needed to makethe justification and approvalor d&f. 2 the requesting agencyshallalsobe responsible for furnishing', 10942:'other assistance that maybe necessary, such as providing information or special contract terms needed to comply with any condition or', 10943:'limitation applicable to the funds of therequesting agency. 3 the servicing agency is responsible for compliance with all other legal', 10944:'or regulatory requirements applicable to the contract, including i having adequate statutory authority for the contractual action; and ii complying', 10945:'fully with the competition requirements of part 6 see 6.002. however,iftheservicingagency is not subject to the federal acquisition regulation, the', 10946:'requesting agency shall verify that contracts utilized to meet its requirementscontain provisions protectingthe government from inappropriatecharges for example,provisions mandated for', 10947:'far agencies by part 31, and that adequate contract administration will be provided. e nonsponsoring federal agencies may use a', 10948:'federally funded research and development center ffrdc only if theterms ofthe ffrdc’s sponsoring agreement permit work from other than a', 10949:'sponsoringagency. work placed with the ffrdc is subject to the acceptance bythe sponsor and must fall within the purpose, mission,', 10950:'general scope of effort, or special competency of the ffrdc. see 35.017; see also 6.302 for procedures to follow where', 10951:'using other than full and open competition. the nonsponsoring agency shall provide to the sponsoring agency necessary documentation that the', 10952:'requested work would notplace the ffrdc indirect competition with domestic private industry. 17.504 reporting requirements. a the senior procurement executive', 10953:'for each executive agency shall submit to the director of omb an annual report on interagency acquisitions, as directed by', 10954:'omb. b the contractingofficer for the servicing agency shall ensure thatservice contractor reporting requirements are met in accordance with subpart', 10955:'4.17,servicecontractsinventory. this page intentionally left blank. 17.54 subpart 17.6 management and operating contracts 17.604 subpart 17.6 management and operating contracts', 10956:'17.600scope of subpart. this subpart prescribes policies and procedures for management and operatingcontracts for the department of energy and any', 10957:'other agency having requisitestatutory authority. 17.601definition. management and operating contract means an agreement under which the government contracts for the', 10958:'operation, maintenance, or support, on its behalf, of a governmentowned or controlled research, development, special production, or testing establishment whollyor', 10959:'principally devotedto one ormore major programs of thecontracting federal agency. 17.602 policy. a heads ofagencies, withrequisite statutory authority, may determine', 10960:'in writing to authorize contracting officersto enter intoor renew any management and operatingcontract in accordance with the agency’sstatutory authority, or', 10961:'41 u.s.c. chapter 33, and the agency’sregulations governing such contracts. this authority shall not be delegated. everycontract so authorized shall', 10962:'show its authorization upon its face. b agencies may authorize management and operating contracts only in a manner consistent with', 10963:'the guidance of this subpart and only if they are consistent with the situations described in 17.604. c within 2years', 10964:'of the effective dateof this regulation, agencies shall review their currentcontractual arrangements in the light of the guidance of this', 10965:'subpart, in order to 1 identify, modify asnecessary,andauthorize management and operatingcontracts; and 2 modify as necessary or terminate contracts not', 10966:'so identified and authorized, except that any contract with less than 4years remaining asof the effective date of this regulation', 10967:'need not be terminated, nor need it be identified, modified, or authorized unless it is renewed or its terms are', 10968:'substantially renegotiated. 17.603limitations. a management and operating contracts shall not be authorized for 1 functions involving the direction, supervision, or', 10969:'control of government personnel, except for supervision incidental to training; 2 functions involving the exercise of police or regulatory powers', 10970:'in the name of the government, other than guard or plant protection services; 3 functions of determining basic government policies;', 10971:'4 daytoday staff or management functionsof the agency or of any of its elements; or 5 functions that can more', 10972:'properly be accomplished in accordance with subpart 45.3, authorizing the use and rental of government property. b since issuance of', 10973:'an authorization under 17.602a isdeemed sufficient proof ofcompliance with paragrapha immediately above, nothing in paragraph a immediately above shall affect', 10974:'the validity or legalityof such an authorization. c for use of project labor agreements, see subpart 22.5. 17.604identifying management and', 10975:'operating contracts. a management and operating contract is characterized both by its purpose see 17.601 and by the special relationship', 10976:'it creates between government and contractor. the followingcriteria can generally be applied inidentifying management and operating contracts: a governmentowned or', 10977:'controlled facilities must be utilized; for instance 1 in the interest of national defense or mobilization readiness; 2 to perform', 10978:'the agency’s mission adequately; or 3 because private enterprise is unable or unwilling to use its own facilities for the', 10979:'work. b because of the nature of the work, or because it is to be performed in government facilities, the', 10980:'government must maintain a special,close relationship with thecontractor and the contractor’s personnel in various important areas e.g., safety, security, cost', 10981:'control, site conditions. c theconduct of the work is wholly orat least substantially separate from the contractor’s other business, if', 10982:'any. d the work is closely relatedto theagency’s mission and is of a longterm orcontinuingnature, and there is aneed 1', 10983:'to ensure its continuity; and federal acquisition regulation 2 for special protection covering the orderly transition of personnel and work', 10984:'in the event of a change in contractors. 17.605 award, renewal, and extension. a effectivework performance under management and operating', 10985:'contracts usually involves highlevelsof expertise and continuity of operations and personnel. because of program requirements and the unusual sometimes unique', 10986:'nature of the work performedunder management and operatingcontracts,the government isoften limited inits ability to effect competitionor to replace a contractor.', 10987:'thereforecontracting officers should take extraordinary stepsbefore award to assure themselves that the prospective contractor’s technical andmanagerial capacity are sufficient, thatorganizational', 10988:'conflicts of interest are adequately covered, and that the contract will grant the government broad and continuing rights to involve', 10989:'itself, if necessary, in technical and managerial decisionmaking concerning performance. b the contractingofficer shall review each management andoperating contract, following', 10990:'agency procedures, at appropriate intervals and at least once every 5 years. the review should determine whether meaningful improvement in', 10991:'performance or cost might reasonably be achieved. any extension or renewal of an operating and management contract must be authorized', 10992:'at a level within the agency no lower than the level at which the original contract was authorized in accordance', 10993:'with 17.602a. c replacementof an incumbent contractor is usually based largely upon expectation of meaningful improvement in performanceor cost. therefore,', 10994:'when reviewing contractor performance, contracting officers should consider 1 the incumbentcontractor’soverall performance, including, specifically, technical, administrative, andcost performance; 2 the', 10995:'potential impactof achange in contractors onprogramneeds, including safety, national defense, and mobilization considerations; and 3 whetheritis likely that qualified offerors', 10996:'will compete for the contract. subpart 17.7 interagency acquisitions: acquisitions by nondefense agencies on behalf of the department of defense', 10997:'17.703 subpart 17.7 interagency acquisitions: acquisitions by nondefense agencies on behalf of the department of defense 17.700scope of subpart. a', 10998:'compliance with this subpart is in addition to the policies and procedures for interagency acquisitions set forth in subpart 17.5.', 10999:'this subpart prescribes policies and procedures specific to acquisitions of supplies and services by nondefense agencies on behalf of the', 11000:'department of defense dod. b this subpart implements pub. l. 110181, section 801,as amended 10 u.s.c. 3201 note prec.. 17.701definitions.', 11001:'as used in this subpart department of defense dod acquisition official means 1 a dod contracting officer; or 2 any', 11002:'other dod official authorized toapprovea directacquisition or an assisted acquisition on behalf of dod. nondefense agency means any department or', 11003:'agency of the federal government other than the department of defense. nondefense agency that is an element of the intelligence', 11004:'community means the agencies identified in 50 u.s.c. 30034 which include the office of the director of nationalintelligence; central intelligence', 11005:'agency; intelligence elements ofthe federal bureau of investigation, department of energy,and drug enforcementagency; bureau of intelligence and research of the', 11006:'department of state; office of intelligence and analysis of the department of the treasury; the office ofintelligence and analysis of', 11007:'the department of homeland security and the officeof intelligence of the coast guard; and such other elements of any department', 11008:'or agency as have been designated by the president, or designated jointly by the director of national intelligence and the', 11009:'head of the department or agency concerned, as an element of the intelligence community. 17.702 applicability. this subpart applies to', 11010:'all acquisitions made by nondefense agencies on behalf of dod. it does not apply to contracts entered into by a', 11011:'nondefense agency that is an element of the intelligence community for the performance of a joint program conducted to meet', 11012:'the needs of dod and the nondefense agency. 17.703 policy. a a dod acquisition official may request a nondefense agency', 11013:'to conduct an acquisition on behalf of dod in excess of the simplified acquisition threshold only if the head of', 11014:'the nondefense agency conducting the acquisition on dods behalf has certified that the agency will comply with applicable procurement requirements', 11015:'for that fiscal year except when waived in accordance with paragraph e of this section. b a nondefense agency is', 11016:'compliant with applicable procurement requirements if the procurement policies, procedures, and internal controls of the nondefense agency applicable to the', 11017:'procurement of supplies and services on behalf of dod, and the manner in which they are administered, are adequate to', 11018:'ensure the compliance of the nondefense department or agency with 1 the federal acquisition regulation and other laws and regulations', 11019:'that apply to procurements of supplies and services by federal agencies; and 2 laws and regulations that apply to procurements', 11020:'of supplies and services made by dod through other federal agencies, including dod financial management regulations, the defense federal acquisition', 11021:'regulation supplement dfars,dod class deviations, and the dfarsprocedures, guidance, and informationpgi. the dfars, dod class deviations, and pgi are accessible', 11022:'at: http://www.acq.osd.mil/dpap/dars. c within 30 days of the beginning ofeach fiscal year, submit nondefense agencycertifications of compliance to principal director,', 11023:'defense pricing and contractingat: department of defense office of the under secretary of defense acquisition and sustainment defense pricing and', 11024:'contracting federal acquisition regulation contract policy room 3b938 3060 defense pentagon, washington d.c. 203013060. d the dod acquisition official, as', 11025:'defined at 17.701, shall provide to the servicing nondefense agency contracting officer any doduniqueterms, conditions, other related statutes, regulations, directives,', 11026:'and other applicablerequirements for incorporationinto the order or contract. in theevent there are no dodunique requirements beyond the far, the', 11027:'dod acquisition official shall so inform the servicing nondefense agency contractingofficer in writing. nondefense agency contracting officers are responsible for', 11028:'ensuring support provided in responseto dod’srequest complies with paragraph b of this section. e waiver. the limitation in paragraph a', 11029:'of this section shall not apply to the acquisition of supplies and services on behalf of dod by a nondefense', 11030:'agency during any fiscal year for which the under secretary of defense for acquisition and sustainment has determined in writing', 11031:'that it is necessary in the interest of dod to acquire supplies and services through the nondefense agency during thefiscalyear.', 11032:'the written determination shall identifythe acquisition categories to which the waiver applies. f nondefense agency certifications, waivers, and additional information', 11033:'are available at http://www.acq.osd.mil/dpap/ cpic/cp/interagencyacquisition.html. subpart 17.8 reverse auctions 17.803 subpart 17.8 reverse auctions 17.801scope of subpart. this subpart prescribes', 11034:'policies and procedures for conducting reverse auctions and utilizing reverse auction service providers. 17.802definitions. as used in this subpart— government', 11035:'data means any information, document, media, or machinereadable material regardless of physical form or characteristics,that iscreatedor obtained by the government,', 11036:'in the course of official government business. governmentrelated data means any information, document, media, or machinereadable material regardless of physical', 11037:'form or characteristics that is created or obtained by a contractor through the storage, processing, or communication of government data.', 11038:'this does not include a contractors business records e.g., financial records, legal records, etc. or data such as operating procedures,', 11039:'software coding, or algorithms that are not uniquely applied to the government data. reverse auction service provider means a commercial', 11040:'or government entity that provides a means for conducting reverse auctions when acquiring supplies or services to be used by', 11041:'the government. 17.803 policy. a the use of reverse auctions may be appropriate when market research indicates that— 1 a', 11042:'competitive marketplace exists for the supplies and/or services being acquired; 2 multipleofferorscan satisfy theagencysrequirement; and 3 the nature of the', 11043:'supplies and/or services being acquired e.g., clearly defined specifications, less complex requirements encourages an iterative bidding process i.e., multiple offerors', 11044:'participate and at least oneofferor submits more than one offerduring the reverseauction. b the reverse auction process is used to', 11045:'obtain pricing for an acquisition. when using the reverse auction process, contracting officers are still required to follow theacquisitionpolicies and', 11046:'procedures e.g., those prescribed in subpart 8.4 or 16.5, or part 13 or 15, as appropriate for the particular acquisition.', 11047:'c 1aserviceplatformforconductingreverseauctionsmaybeprovidedbyacommercialorgovernmententity. 2 while some reverse auction service providers are paid directly by the government for reverse auction services, other', 11048:'providers may incorporate a fee structure that uses an indirect payment method. when using an indirect payment method,the reverse auction', 11049:'serviceprovideradds a fees to the price ofthe successful offer that is provided to the government at theclose ofan auction. the', 11050:'government then pays the successful offeror the total price of the offer,which includes the fees added by thereverse auctionservice provider.', 11051:'thereverse auctionservice provider then collects itsfees from the successful offeror. 3 when acquiring reverse auction services from a commercial reverse', 11052:'auction serviceprovider, agencies shall— i use competitive procedures, unless an exception applies; ii detail the providers fee structure in the', 11053:'resultant contract or agreement for reverse auction services; and iii make the details of the contract or agreement for reverse', 11054:'auction services, including the providers fee structure, available to contracting officersforconsideration when determining whether to use a reverseauction service provider,', 11055:'in accordance with 17.805a. 4 when acquiring reverse auction services, the contractingofficer shall ensure the following information is provided in', 11056:'the solicitation and contract: i descriptions of government data and governmentrelated data. iidataownership, licensing, delivery, anddisposition instructions specific to the', 11057:'relevant types ofgovernment data and governmentrelated data e.g., dd form 1423, contract data requirements list; work statement task; line item.', 11058:'disposition instructions shall provide for the transition of data in commercially available, or open and nonproprietary format and for permanent', 11059:'records, in accordance with disposition guidance issued by the national archives and records administration. d contracting officersshallonly use the services', 11060:'of a reverse auction service provider that— 1 does not assert or imply that it can or will obtain a', 11061:'government contract for participants of a reverse auction; 2 allowsentitiesto register, at no cost, as potential offerors for reverse auctions', 11062:'conducted onbehalf of the government on the providers reverse auction platform; federal acquisition regulation 3 allowseach entity,as part of the', 11063:'registration process, theopportunity to executea proprietary dataprotection agreementwith the provider; provided that the terms in the agreement do notaffect the', 11064:'termsandconditions ofa government solicitation or contract; 4 protects from unauthorized use or disclosure and does not release outside of the', 11065:'government— i all contractor bid or proposal information see 3.1041 and source selection information associated with providing reverse auction services', 11066:'to the government; ii all information similarly generated to support the issuance of a task order or delivery order or', 11067:'order under a blanket purchase agreement; and iii information identified by anofferor as restricted fromduplication, use, ordisclosure—in whole or in', 11068:'part—for any purpose other than to evaluate the reverse auction participants price or proposal; 5 allowsofferorsto see the successive lowest', 11069:'prices offered in the auction without revealingan offerors identity; 6 at the close of each auction— iprovides the government with', 11070:'the successful offer, along with information thatseparately identifies the offerors price and the price for each provider fee or charge', 11071:'includedin the total price;and iiprovides the governmentwith all information and documentation receivedfrom offerors in response to the reverse auction. 7', 11072:'does not participate as an offeror in any reverse auction which the provider is hosting onbehalf ofthe government. this prohibition', 11073:'includes participation in a reverse auction by any entity with which the provider has a relationship that raises an actual', 11074:'or potential conflict of interest; and 8 asserts no rights or license in the data gathered or generated during a', 11075:'reverse auction. e only acontracting officer shall— 1 exclude an offeror from participating in an auction; 2 determine the awardees', 11076:'of any reverse auction; or 3 determine that the offeror is a responsible prospectivecontractor see 9.103, 9.1041, and 9.405d. 17.804', 11077:'applicability. reverse auction processes shall not be used for— a designbuild construction contracts see 36.104; b procurements for architectengineer services', 11078:'subject to 40u.s.c. chapter11 see 36.601; c procurements using sealed bidding procedures see part 14; or d acquisition of personal', 11079:'protective equipment, in accordance with— 1 sections 813 and 814 of thenational defenseauthorization act ndaa for fiscal yearfy 2017 pub.', 11080:'l. 114328; 2 section 882 of the ndaa for fy 2018 pub. l. 11591; and 3 section 880 of the', 11081:'john s. mccain ndaa for fy 2019 pub. l. 115232, 41 u.s.c. 3701 note. 17.805 procedures. a when considering the', 11082:'use of a reverse auction service provider, the contracting officershall— 1 conduct market research for available sources of reverse auction', 11083:'services e.g., existing agency contracts or agreements, commercial service providers, or government service providers; 2 evaluate the fee structure for', 11084:'each reverse auction service provider; and 3 document the contract file that the use of a reverse auction service provider', 11085:'iscost effective. b when conductinga reverseauction, the contracting officer shall— 1 not disclose the identity of the offerors except for', 11086:'the awardees identity subsequent to an award resulting from the auction see 3.1044a and e1; 2 allow offerors theopportunity to', 11087:'continually revisetheir pricesdownward during the reverse auction until the close of the auction; and 3 allow anofferor to withdraw an', 11088:'offerfrom further consideration prior to the close of an auction. c when using the services of a reverse auction service', 11089:'provider, contracting officersshall— 1 includecontact information, including contracting officer name and email address, in the synopsis and solicitation that will', 11090:'allow offerors to contact the contracting officer directly with any questions; 2 upon receipt ofa successful offer, verifythat any provider', 11091:'fees or charges included in theprice are in accordance with the providers fee structure, as evaluated in accordance with paragraph', 11092:'a2 of this section; and subpart 17.8 reverse auctions 17.806 3 include in the contract file any information and/or documentation', 11093:'received by the reverse auction service provider from offerors responding to the reverse auction. d if only one offeror participates', 11094:'in an auction, thecontracting officer may— 1 cancel the auction and documentthe contract filewith evidence of the participation of only', 11095:'one offeror; or 2 acceptthe offer, only if the price is determinedto befair and reasonable see 13.1063a2 and 15.4041. 17.806', 11096:'solicitation provision and contract clauses. a thecontracting officer shall insert the provision at 52.21710, reverse auction, in solicitations when using', 11097:'a reverse auction to award a contract or blanket purchase agreement. b the contractingofficer shall insertthe clause at 52.21711, reverse', 11098:'auction—orders, in solicitations and contracts for a multipleaward contract or blanket purchase agreement, when a reverse auction may be used', 11099:'to place orders under the basic contract or blanket purchase agreement. c thecontracting officer shall insert the clause at 52.21712,', 11100:'reverse auction services, in all solicitations and contracts for the purchase of reverse auction services. this page intentionally left blank.', 11101:'17.84 part 18 emergency acquisitions sec. 18.000 scope of part. 18.001 definition. subpart 18.1 available acquisition flexibilities 18.101 general. 18.102', 11102:'system for award management. 18.103 synopses of proposed contract actions. 18.104 unusual and compelling urgency. 18.105 federal supply schedules fsss,', 11103:'multi agency blanket purchase agreements bpas, and multiagency indefinite delivery contracts. 18.106 acquisitions from federal prison industries, inc. fpi. 18.107', 11104:'abilityone specification changes. 18.108 qualifications requirements. 18.109 priorities and allocations. 18.110 soliciting from a single source. 18.111 oral requests for', 11105:'proposals. 18.112 letter contracts. 18.113 interagency acquisitions. 18.114 contracting with the small business administration the 8a program. 18.115 hubzone sole', 11106:'source awards. 18.116 servicedisabled veteranowned small business sdvosb sole source awards. 18.117 18.118 18.119 18.120 18.121 18.122 18.123 18.124 18.125', 11107:'18.126 18.127 18.201 18.202 18.203 18.204 18.205 awards to economically disadvantaged womenowned small business concerns and womenowned small business concerns', 11108:'eligible under the womenownedsmall business program. overtime approvals. trade agreements. [reserved] bid guarantees. advance payments. assignment of claims. electronic funds', 11109:'transfer. protest to gao. contractor rentfree use of government property. extraordinary contractual actions. subpart 18.2 emergency acquisition flexibilities contingency operation.', 11110:'defense or recovery from certain events. emergencydeclaration or major disaster declaration. humanitarian or peacekeeping operation. resources. this page intentionally left', 11111:'blank. subpart 18.1 available acquisition flexibilities 18.105 18.000scope of part. a this part identifies acquisition flexibilities that are available for', 11112:'emergency acquisitions. these flexibilities are specific techniques or procedures that may be used to streamline the standard acquisition process. this', 11113:'part includes 1 generally available flexibilities; and 2 emergencyacquisitionflexibilities that are available only under prescribed circumstances. btheacquisitionflexibilitiesinthispartarenotexemptfromtherequirementsandlimitationssetforthinfar part 3, improper', 11114:'business practices and personal conflicts of interest. c additional flexibilities may beauthorized in an executive agency supplement to the far.', 11115:'18.001definition. emergency acquisition flexibilities, as used in this part, means flexibilities provided with respect to any acquisition of supplies or', 11116:'services by or for an executiveagency that,as determined by theheadof an executive agency, may beused a in support of a', 11117:'contingency operation as defined in 2.101; b to facilitate the defense againstor recovery fromcyber, nuclear, biological,chemical,or radiological attackagainst the united', 11118:'states; c in support of a request from the secretary of state or the administrator of the united states agency', 11119:'for international development to facilitate the provision of international disaster assistance; or d when the president issues an emergencydeclaration, or', 11120:'a major disaster declaration. subpart 18.1 available acquisition flexibilities 18.101general. the far includes many acquisition flexibilities thatare available tothe contracting', 11121:'officerwhen certain conditions are met. these acquisition flexibilities do not require an emergency declaration ordesignation ofcontingency operation. 18.102 system forawardmanagement.', 11122:'a in accordance with 4.1102, contractors are notrequired to be registered in the system for award management sam at the', 11123:'time of submission of offers or quotations for— 1 contracts awarded without providing for full and open competition dueto unusual', 11124:'and compelling urgency see 6.3022; or 2 contracts awarded by a contracting officer– i deployed in the course of military', 11125:'operations; ii located outside the united states and its outlying areas, for work to be performed in support of diplomatic', 11126:'or developmental operations, in an area that has been designated by the department of state as a danger pay post;', 11127:'or iii in the conduct of emergencyoperations. b however, contractors are required tobe registered insam inorder to gain access to', 11128:'the disaster response registry. c contracting officers shall consult thedisaster response registry via https://www.sam.gov., search records, advanced search, disaster response', 11129:'registry search to determine the availability of contractors for debris removal, distribution of supplies, reconstruction,and otherdisaster or emergency relief activities', 11130:'insidethe united states and outlyingareas. see 26.205. 18.103 synopses of proposed contract actions. contracting officersneednot submit a synopsis notice when', 11131:'there is an unusual and compellingurgency and the government would be seriously injured if the agency complied with the notice', 11132:'time periods. see 5.202a2. 18.104 unusual and compelling urgency. agencies may limit the number of sources and full and open', 11133:'competition need not be provided for contracting actions involving urgent requirements. see 6.3022. 18.105 federalsupplyschedules fsss, multiagency blanket purchase agreements', 11134:'bpas, and multiagency indefinite delivery contracts. streamlined procedures and a broad range of goods and services may be available under', 11135:'federal supply schedule contracts see subpart 8.4,multiagencybpassee 8.4053a6,ormultiagency,indefinitedeliverycontractssee federal acquisition regulation 16.505a8. these contracting methods may offer agency advanceplanning,prenegotiated line', 11136:'items, and specialterms and conditions that permit rapid response. 18.106 acquisitionsfromfederal prison industries, inc. fpi. purchase from fpi is not', 11137:'mandatory and a waiver is not required if public exigency requires immediate delivery or performance see 8.605b. 18.107abilityone specification changes.', 11138:'contracting officersare not held to the notification required when changes in abilityone specifications or descriptions are required to meet emergency', 11139:'needs. see 8.712d. 18.108 qualificationsrequirements. agencies may determine not to enforce qualification requirementswhen an emergency exists. see 9.2061. 18.109priorities and', 11140:'allocations. the defense priorities and allocationssystemdpas supportsapproved national defense, emergencypreparedness, and energy programs andwas establishedto facilitate rapid industrial mobilization in', 11141:'case of a national emergency. see subpart 11.6. 18.110soliciting from a single source. for purchases not exceeding the simplified acquisition', 11142:'threshold, contracting officers may solicit from one source under certain circumstances. see 13.1061b. 18.111 oral requestsfor proposals. oral requests for', 11143:'proposals are authorized under certain conditions. see 15.203f. 18.112letter contracts. lettercontracts may be used when contract performance must begin immediately.', 11144:'see 16.603. 18.113interagency acquisitions. interagency acquisitions are authorized under certain conditions. see subpart 17.5. 18.114contractingwith thesmall business administration the 8a', 11145:'program. contracts may be awarded to the small business administration sba for performance by eligible 8a participants on either a', 11146:'sole source or competitive basis. see subpart 19.8. 18.115hubzone sole sourceawards. contracts may be awarded to historically underutilized business zone', 11147:'hubzone small business concerns on a sole source basis. see 19.1306. 18.116servicedisabled veteranowned smallbusiness sdvosb solesource awards. contracts may beawarded', 11148:'to servicedisabledveteranowned small business sdvosb concerns eligible under the sdvosb program on a sole source basis. see 19.1406. 18.117awards to', 11149:'economically disadvantaged womenownedsmall business concerns andwomenowned small business concerns eligible under the womenowned smallbusiness program. contracts may be awarded to', 11150:'economically disadvantaged womenowned small business edwosb concerns and womenowned small business wosb concerns eligible under the wosb program on a', 11151:'competitive or sole source basis. see subpart 19.15. 18.118overtime approvals. overtime approvals may be retroactive if justified by emergency circumstances.', 11152:'see 22.1034i. subpart 18.1 available acquisition flexibilities 18.127 18.119tradeagreements. the policies and procedures offar 25.4 may not apply to acquisitions', 11153:'not awarded under full and open competition see 25.401a5. 18.120[reserved] 18.121bid guarantees. the chiefof the contractingoffice may waive the requirement', 11154:'to obtain a bid guarantee for emergencyacquisitions when a performance bond or a performance bond and payment bond is required.', 11155:'see 28.1011c. 18.122advance payments. agencies may authorize advance payments to facilitate the national defense for actions taken under public law', 11156:'85804 see subpart 50.1, extraordinary contractual actions. these advance payments may be made at or after award of sealed bid', 11157:'contracts, as well as negotiated contracts. see 32.405. 18.123assignment of claims. the use of the nosetoff provision maybe appropriate tofacilitate', 11158:'the nationaldefense in the event of a national emergencyor natural disaster. see 32.803d. 18.124 electronicfundstransfer. electronic funds transfer payments may', 11159:'be waived for acquisitions to supportunusual andcompelling needs oremergency acquisitions. see 32.1103e. 18.125 protest to gao. when urgent and compelling', 11160:'circumstancesexist, agency protest overrideprocedures allowthe head of the contracting activity to determine that the contracting process may continue after gao', 11161:'has received a protest. see 33.104b and c. 18.126 contractor rentfree use of government property. rental requirements do not apply', 11162:'to items of government production and research property that are part of a general program approved by thefederal emergency management', 11163:'agencyand meet certain criteria. see 45.301. 18.127extraordinary contractual actions. subpart 50.1 prescribes policies and procedures for entering into, amending, or', 11164:'modifying contracts in order to facilitate thenationaldefenseunder theextraordinary emergency authority granted bypublic law 85804 50 u.s.c. 14311434. this includes a', 11165:'amending contracts without consideration see 50.1032a; b correcting or mitigating mistakes in a contract see 50.1032b; and c formalizing informal', 11166:'commitments see 50.1032c. this page intentionally left blank. 18.14 subpart 18.2 emergency acquisition flexibilities 18.205 subpart 18.2 emergency acquisition flexibilities', 11167:'18.201contingency operation. a contingency operation is defined in 2.101. b micropurchase threshold. the threshold increases when the head of the', 11168:'agency determines the supplies or services are to be used to support a contingency operation. see 2.101 and 13.201g. c', 11169:'simplified acquisition threshold. the threshold increases when the head of the agency determines the supplies or services are to be', 11170:'used to support a contingency operation. see 2.101. d sf 44,purchaseorderinvoicevoucher. thenormalthresholdfortheuseofthe sf 44 is at or below the micro', 11171:'purchase threshold. agencies may, however, establish higher dollar limitations for purchases made to support acontingency operation. see 13.306. e simplified', 11172:'procedures for certain commercial products and commercial services. the threshold limits authorized for use of this authority may be increased', 11173:'for acquisitions to support a contingency operation. see 13.500c. 18.202 defense or recovery from certain events. a micropurchase threshold. the', 11174:'threshold increases when the head of the agency determines the supplies or services areto beused tofacilitate defense against or recovery', 11175:'from cyber, nuclear,biological, chemical, or radiologicalattack; to facilitate provision ofinternational disaster assistance; or tosupport responseto anemergency or major disaster. see', 11176:'2.101. b simplified acquisition threshold. the threshold increases when the head of the agency determines the supplies or services are', 11177:'to be used tofacilitate defense against or recovery from cyber, nuclear, biological, chemical, or radiological attack;to facilitate provision ofinternational disaster', 11178:'assistance; or tosupport responseto anemergency or major disaster. see 2.101. c commercial product or commercial service treatment. contracting officers maytreat', 11179:'any acquisition ofsupplies or services as an acquisition of commercial products or commercial services if the head of the agency', 11180:'determines the acquisition is to be used tofacilitate the defense against orrecovery from cyber, nuclear, biological, chemical, orradiological attack. see', 11181:'12.102f1 and 13.500c. d simplified procedures for certain commercial products and commercial services. the threshold limits authorized for use of', 11182:'this authority may be increased when it is determined the acquisition is to facilitate defense against or recovery from cyber,', 11183:'nuclear,biological, chemical, or radiologicalattack; to facilitate provision of internationaldisasterassistance; orto support response to an emergencyor major disaster. see 13.500c. e', 11184:'sustainable products and services. contracting officers are encouraged, but not required, to procure sustainable products and services if the head', 11185:'of the agency determines the supplies or services are to be used to facilitate defense against or recovery from cyber,', 11186:'nuclear, biological, chemical, or radiological attack; to facilitate provision of internationaldisaster assistance; or tosupport responseto anemergency or major disaster see', 11187:'23.106c. 18.203emergency declaration or major disaster declaration. a disaster or emergency assistance activities. preference will begiven to local organizations, firms,andindividuals', 11188:'when contractingformajordisaster or emergency assistance activities when the presidenthas made a declaration under the robertt. stafford disaster relief and emergency', 11189:'assistance act. preferencemay take the form of local areasetasides or an evaluation preference. see 6.208 and subpart 26.2. b oceantransportation', 11190:'by u.s. flag vessels. the provisions of thecargo preference act of 1954 may be waived in emergencysituations. see 47.502c. 18.204humanitarian', 11191:'or peacekeeping operation. a a humanitarian or peacekeeping operation is defined in 2.101. b simplified acquisition threshold. the threshold increases', 11192:'when the head of the agency determines the supplies or services are to be used to support a humanitarian or', 11193:'peacekeeping operation. see 2.101. 18.205 resources. a national response framework. the national response framework nrf is a guide to how', 11194:'the nation conducts allhazards response. this key document establishes a comprehensive, national, allhazards approach to domestic incident response. the framework', 11195:'identifies the key responseprinciples, roles and structures that organize national response. it describes how communities, states, thefederal government, the privatesector,', 11196:'and nongovernmental partners apply federal acquisition regulation these principles for a coordinated, effective national response. it also describes special circumstances', 11197:'where the federal government exercises a larger role, includingincidents where federalinterests are involved andcatastrophic incidents where a state would require', 11198:'significant support. the nrf is available at https://www.fema.gov/medialibrary/assets/ documents/117791. b ofpp guidelines. the office of federal procurement policyofpp emergencyacquisitions guide', 11199:'is available at https://www.whitehouse.gov/wpcontent/uploads/legacydrupalfiles/omb/assets/procurementguides/ emergencyacquisitionsguide.pdf. part 19 small business programs sec. 19.000 scope of part. subpart 19.4 cooperation with 19.001', 11200:'definitions. the small business administration 19.401 general. subpart 19.1 size standards 19.402 small business administration procurement 19.101 [reserved] center representatives.', 11201:'19.102 small business size standards and north 19.403 [reserved]. american industry classification system codes. subpart 19.5 small business total set19.103', 11202:'appealing the contracting officers north asides, partial setasides, and reserves american industry classification system 19.501 general. code and size standard', 11203:'determination. 19.502 setting aside acquisitions. 19.5021 requirements for setting aside acquisitions. subpart 19.2 policies 19.5022 total small business setasides. 19.201', 11204:'general policy. 19.5023 partial setasides of contracts other than 19.202 specific policies. multipleaward contracts. 19.2021 encouraging small business participation in', 11205:'19.5024 partial setasides of multipleaward contracts. acquisitions. 19.5025 insufficient reasons for not setting aside an 19.2022 locating small business sources.', 11206:'acquisition. 19.2023 equal low bids. 19.5026 setting aside a class of acquisitions for small 19.2024 solicitation. business. 19.2025 data collection', 11207:'and reporting requirements. 19.5027 inclusion of federal prison industries, inc. 19.2026 determination of fair market price. 19.5028 rejecting small business', 11208:'administration 19.203 relationship among small business recommendations. programs. 19.5029 withdrawing or modifying small business setasides. subpart 19.3 determination of 19.50210', 11209:'automatic dissolution of a small business small business size and status setaside. for small business programs 19.50211 solicitation notice regarding', 11210:'administration 19.301 representations and rerepresentations. of change orders for construction. 19.3011 representation by the offeror. 19.503 reserves. 19.3012 rerepresentation by', 11211:'a contractor that 19.504 orders under multipleaward contracts. represented itself as a small business 19.505 limitations on subcontracting and concern.', 11212:'nonmanufacturer rule. 19.3013 rerepresentation by a contractor that 19.506 documentation requirements. represented itself as other than a small 19.507 solicitation', 11213:'provisions and contract clauses. business concern. 19.302 protesting a small business representation or subpart 19.6 certificates of competency rerepresentation. and', 11214:'determinations of responsibility 19.303 [reserved]. 19.601 general. 19.304 small disadvantaged business status. 19.602 procedures. 19.305 reviews of sdb status. 19.6021', 11215:'referral. 19.306 protesting a firm’s status as a hubzone 19.6022 issuing or denying a certificate of small business concern. competency', 11216:'coc. 19.307 protesting a firm’s status as a service19.602 3 resolving differences between the agency disabled veteranowned small business and', 11217:'the small business administration. concern. 19.6024 awarding the contract. 19.308 protesting a firm’s status as an economically disadvantaged womenowned small', 11218:'business concern or womenowned small business concern eligible under the womenowned small business program. 19.309 solicitation provisions and contract clauses.', 11219:'subpart 19.7 the small businesssubcontracting program 19.701 definitions. 19.702 statutory requirements. 19.703 eligibility requirements for participating in the program. 19.704', 11220:'subcontracting plan requirements. 19.705 responsibilities of the contracting officer under the subcontracting assistance program. 19.7051 general. 19.7052 determining the need', 11221:'for a subcontracting plan. 19.7053 preparing the solicitation. 19.7054 reviewing the subcontracting plan. 19.7055 awardsinvolvingsubcontractingplans. 19.7056 postaward responsibilities of the', 11222:'contracting officer. 19.7057 compliance with the subcontracting plan. 19.706 responsibilities of the cognizant administrative contracting officer. 19.707 the small business', 11223:'administration’s role in carrying out the program. 19.708 contract clauses. subpart 19.8 contracting with the small business administration the 8a', 11224:'program 19.800 general. 19.801 [reserved] 19.802 determining eligibility for the 8a program. 19.803 selecting acquisitions for the 8a program. 19.804', 11225:'evaluation, offering, and acceptance. 19.8041 agency evaluation. 19.8042 agency offering. 19.8043 sba acceptance. 19.8044 repetitive acquisitions. 19.8045 basic ordering agreements', 11226:'and blanket purchase agreements. 19.8046 indefinite delivery contracts. 19.805 competitive 8a. 19.8051 general. 19.8052 procedures. 19.806 pricing the 8a contract.', 11227:'19.807 estimating fair market price. 19.808 contract negotiation. 19.8081 sole source. 19.8082 competitive. 19.809 preaward considerations. 19.8091 preaward survey. 19.8092', 11228:'limitations on subcontracting and nonmanufacturer rule. 19.810 sba appeals. 19.811 preparing the contracts. 19.8111 sole source. 19.8112 competitive. 19.8113 19.812', 11229:'19.813 19.814 19.815 19.816 contract clauses. contract administration. protesting an 8a participants eligibility or size status. requesting a formal size', 11230:'determination 8a sole source requirements. release and notification requirements for non8a procurement. exiting the 8a program. subpart 19.9 [reserved] subpart', 11231:'19.10 [reserved] subpart 19.11 [reserved] subpart 19.12 [reserved] subpart 19.13 historically underutilized business zone hubzone program 19.1301 general. 19.1302 [reserved].', 11232:'19.1303 status as a hubzone small business concern. 19.1304 exclusions. 19.1305 hubzone setaside procedures. 19.1306 hubzone solesource awards. 19.1307 price', 11233:'evaluation preference for hubzone small business concerns. 19.1308 [reserved]. 19.1309 contract clauses. subpart 19.14 servicedisabled veteranownedsmall business program 19.1401 general.', 11234:'19.1402 applicability. 19.1403 status. 19.1404 exclusions. 19.1405 setaside procedures. 19.1406 sole source awards. 19.1407 [reserved] 19.1408 contract clauses. subpart 19.15', 11235:'women owned small business program. 19.1500 general. 19.1501 [reserved] 19.1502 applicability. 19.1503 status. 19.1504 exclusions. 19.1505 setaside procedures. 19.1506 womenowned', 11236:'small business program solesource awards. 19.1507 [reserved] 19.1508 contract clauses. subpart 19.1 size standards 19.102 19.000scope of part. a this', 11237:'part implements the acquisitionrelated sections of the small business act 15 u.s.c. 631, et seq., applicable sections of the armed', 11238:'services procurement act 10 u.s.c. 3063–3064 and 3203, 41 u.s.c. 3104, and executive order 12138, may 18, 1979. it covers—', 11239:'1 the determination that a concern is eligible for participation in the programs identified in this part; 2 the respective', 11240:'roles of executive agencies and the small business administration sba in implementing the programs; 3 setting acquisitions aside, in total', 11241:'or in part, for exclusive competitive participation by small business, 8a participants, hubzone small business concerns, servicedisabled veteranowned small business', 11242:'sdvosb concerns eligible under the sdvosb program, and economically disadvantaged womenowned small business edwosb concerns and womenowned small business wosb', 11243:'concerns eligible under the wosb program; 4 the certificate of competency program; 5 the subcontracting assistance program; 6 the 8a', 11244:'business development program hereafter referred to as 8a program, under which agencies contract with the sba for goods or services', 11245:'to be furnished under a subcontract by a small disadvantaged business concern; 7 the use of a price evaluation preference', 11246:'for hubzone small business concerns; 8 the use of veteranowned small business concerns; 9 sole source awards to hubzone small', 11247:'business concerns, servicedisabled veteranowned small business concerns, and edwosb concerns and wosb concerns eligible under the wosb program; and 10', 11248:'the use of reserves. b 1 unless otherwise specified in this part see subpart 19.6 certificates of competency and determinations', 11249:'of responsibility on page 1 and subpart 19.7 the small business subcontracting program on page 1— icontracting officers shall apply', 11250:'this part in the unitedstates and its outlying areas; and iicontracting officers may apply this part outside the unitedstates and', 11251:'its outlying areas. 2 offerorsthat participate in any procurement under this part arerequired to meet the definition of “small business', 11252:'concern” at 2.101 and the definition of “concern” at 19.001. 19.001definitions. as used in this part concern means any business', 11253:'entity organized for profit even ifits ownership is in the hands ofa nonprofit entity with a place of business located', 11254:'in the united states or its outlying areas and that makes a significant contribution to the u.s. economy through payment', 11255:'of taxes and/or use of american products, material and/or labor, etc. concern includes but is not limited to an individual,', 11256:'partnership, corporation, joint venture, association, or cooperative. for more information, see 13 cfr 121.105. fair market price means a price', 11257:'based on reasonable costs under normal competitive conditions and not on lowest possible cost see 19.2026. industry means all concerns', 11258:'primarily engagedin similar lines of activity, as listed and described in the northamerican industry classification system naics manual. similarly situated', 11259:'entity meansa firsttier subcontractor, including an independent contractor,that— 1 has the same small business program status as that which qualified', 11260:'the prime contractor for the award e.g., for a small business setaside contract, any small business concern, without regard to', 11261:'socioeconomic status; and 2 is considered small for the size standard under the naics code the prime contractor assigned to', 11262:'the subcontract. subpart 19.1 size standards 19.101[reserved] 19.102small business size standards and north american industry classification system codes. a locating', 11263:'size standards and north american industry classification system codes. 1 sba establishes small business size standards on an industrybyindustry basis.', 11264:'small business size standards and corresponding north american industry classification system naics codes are provided at 13 cfr 121.201. they', 11265:'are also available at https://www.sba.gov/ document/supporttablesizestandards . federal acquisition regulation 2 naics codes are updated by the office of management', 11266:'and budget through its economicclassification policy committee every five years. new naics codes are not available for use in federal', 11267:'contracting until sba publishes corresponding size standards. naics codes are available from the u.s. census bureau at https://www.census.gov/naics/. 3 sba', 11268:'determines the sizestatus of a concern, includingits affiliates, as ofthe date the concern representsthat it is small to the contractingofficer', 11269:'as part of its initialoffer, whichincludes price. 4 when an agency uses a solicitation for a multipleaward contract that does', 11270:'notrequire offers for the contract to include price, sba determines size as of the date ofinitial offerforthe multipleaward contract, whether', 11271:'or notthe offer includes price or the price is evaluated. see 13 cfr 121.404a1iv. b determining the appropriate naics codes', 11272:'for the solicitation. 1 unless required to do otherwise by paragraph b2 iibof this section, contractingofficers shall assign one naics', 11273:'code and corresponding sizestandardto all solicitations, contracts, and task and delivery orders. the contracting officer shall determine the appropriate naics', 11274:'code by classifying the product or service being acquired in the one industry that best describes the principal purpose of', 11275:'the supply or service being acquired. primary consideration is given to the industry descriptions in the u.s. naics manual, the', 11276:'product or service descriptions in the solicitation, the relative value and importance of the components of the requirement making up', 11277:'the end item being procured, and the function of the goods or services being purchased. a procurement is usually classified', 11278:'according to the component that accounts for the greatest percentage of contract value. 2 i for solicitations issued on or', 11279:'before october 1, 2028, that will result in multipleaward contracts, the contracting officer shall assign a naics code in accordance', 11280:'with paragraph b1 of thissection. iifor solicitations issued after october 1, 2028, that will result in multipleawardcontracts, the contracting officer', 11281:'shall– a assign a single naics code and corresponding size standard that best describes the principal purpose of both the', 11282:'acquisition and each subsequent order; or b divide the acquisition into distinct portions or categories e.g., line item numbers, special', 11283:'item numbers, sectors, functional areas, or equivalent and assign each portion or category a single naics code and size standard', 11284:'that best describes the principal purpose of the supplies or services to be acquiredunder thatdistinct portion or category. 3 iwhenplacingordersundermultipleawardcontractswithasinglenaicscode,thecontractingofficershall', 11285:'assign the order the same naics code and corresponding size standard designated in the contract. iiwhen placing orders undermultipleaward contracts', 11286:'with more than one naics code, the contractingofficer shall assign the order the naics code and corresponding size standard designated', 11287:'in the contract for the distinct portion or category against which the order is placed. if an order covers multiple', 11288:'portions or categories, select the naics code and corresponding size standard designated in the contract for the distinct portion or', 11289:'category that best represents the principal purpose of the order. 4 the contractingofficers designation is finalunlessappealed in accordance withthe procedures', 11290:'in 19.103. c application of small business size standards to solicitations. 1the contracting officer shall apply thesize standard in effect', 11291:'on the date the solicitation is issued. 2 the contractingofficer may amend the solicitation and use the new size standard', 11292:'ifsba amendsthe size standard and it becomes effectivebefore thedue date for receipt ofinitial offers. 19.103appealing the contracting officers north american', 11293:'industry classification system code and size standard determination. a thecontracting officer’s determination is final unless appealed as follows: 1 an', 11294:'appeal of a contracting officer’s naicscodedesignation and the applicablesize standard shall be served and filed within 10 calendar days afterthe', 11295:'issuance of the initialsolicitation or any amendmentaffecting the naics code or size standard. however, sba may file a naicscodeappealat anytime', 11296:'before offers are due. 2 appeals of a contracting officersnaics code designation or applicable size standard may be filed with', 11297:'sba’s office of hearings and appeals oha by— iany person adverselyaffected by a naicscodedesignation or applicable size standard. however, withrespect', 11298:'to a particular sole source 8a contract, only the sba associate administrator for business development may appeal a naics code', 11299:'designation; or iithe associate orassistantdirector for the sba program involved, through sba’s office ofgeneral counsel. 3 contracting officersshalladvise thepublic, by', 11300:'amendmentto the solicitation, of the existence ofa naics code appeal see 5.102a1. such notices shall include the procedures and the', 11301:'deadline for interested parties to file and serve arguments concerning theappeal. subpart 19.1 size standards 19.103 4 sba’s oha will', 11302:'dismisssummarilyan untimely naics code appeal. 5 naics code appeals are filed in accordance with 13 cfr 121.1103. 6 upon receipt', 11303:'ofa naics code appeal, oha will notify the contracting officer by a notice and order of thedate oha received theappeal,', 11304:'the docket number, andthe administrative judge assigned tothe case. the contracting officers response to the appeal, if any,shallinclude argument and', 11305:'evidence see 13 cfr part 134, and shall be received by oha within 15 calendardays from the date of the', 11306:'docketingnotice and order, unless otherwise specified by the administrative judge. upon receipt ofoha’s docketing noticeand order, the contractingofficer shall withholdaward,', 11307:'unless withholding award is not in the best interests of the government, and immediately send to oha an electronic link', 11308:'to or a paper copy of both theoriginal solicitation and all amendments relating to thenaics code appeal. the contractingofficer shall', 11309:'inform oha of any amendments, actions, or developments concerning the procurement in question. 7 afterclose of record, oha willissue a', 11310:'decision and informthe contracting officer. if oha’s decision is received by the contracting officer before the datethe offers are due,', 11311:'thedecision shall be finalandthe solicitation shall be amended to reflect the decision,if appropriate. oha’s decision receivedafter the due date of', 11312:'theinitial offers shall not apply to the pending solicitation but shall apply to future solicitations of the same products or', 11313:'services. b sba’s regulations concerning appeals ofnaics code designations are located at 13 cfr 121.1102 to 121.1103 and 13 cfr', 11314:'part 134. this page intentionally left blank. 19.14 subpart 19.2 policies 19.201 subpart 19.2 policies 19.201 generalpolicy. a it is', 11315:'the policy of the government to provide maximum practicable opportunities in its acquisitions to small business, veteranowned small business, servicedisabled', 11316:'veteranowned small business, hubzone small business, small disadvantaged business, and womenowned small business concerns. such concerns must also have the', 11317:'maximum practicable opportunityto participate as subcontractors in the contracts awarded by any executive agency, consistentwith efficient contract performance. the small', 11318:'business administration sba counsels and assists small business concerns and assists contracting personnel to ensure that a fair proportion of', 11319:'contracts for supplies and services is placed with small business. b heads of contractingactivitiesare responsible for effectively implementing the small', 11320:'business programs within their activities, including achieving program goals. they are to ensure that contracting and technical personnel maintain knowledge', 11321:'of small business program requirements and take all reasonable action to increase participation in their activities’ contracting processes by these', 11322:'businesses. c thesmallbusinessactrequireseach agency with contracting authority to establishan office of small and disadvantaged business utilization see section 15k of', 11323:'the small business act. for the department of defense, in accordance with section 904 of public law 109163 10 u.s.c.', 11324:'144 note, the office of small and disadvantaged business utilization hasbeenredesignated as the office of small business programs. management of', 11325:'the office is the responsibility of anofficer or employee ofthe agency who, in carrying out the purposes of the act—', 11326:'1 is known as the directorof the office ofsmallanddisadvantaged business utilization,or for the department of defense,the director of the office', 11327:'of small business programs; 2 is appointed by the agency head; 3 is responsible to and reports directly to the', 11328:'agency head or the deputy to the agency head except that for the department of defense,the director of the office', 11329:'of small business programs reports to the secretary orthe secretary’s designee; 4 is responsible for the agency carrying out the', 11330:'functions and duties in sections 8, 15, 31, 36, and 44 of the small business act; 5 works with the', 11331:'sbaprocurement center representative pcr or, ifa pcris not assigned,see 19.402a to identify proposed solicitations that involve bundling and work with', 11332:'the agency acquisition officials andsba to revisethe acquisition strategies for such proposed solicitations to increase the probability of participation by', 11333:'small businesses; 6 assists small business concerns in obtaining payments under their contracts, late payment interest penalties, or information on', 11334:'contractual payment provisions; 7 has supervisory authority over agency personnel to the extent that their functions and duties relate to', 11335:'sections 8, 15, 31, 36, and 44 of the small business act; 8 assigns a small business technical advisor to', 11336:'each contracting activity within the agency to which the sba has assigned a representative see 19.402— iwho isa fulltime employee', 11337:'of thecontracting activity,well qualified, technically trained, and familiar with the supplies or services contracted for by the activity; and ii', 11338:'whose principal duty is to assist the sbas assigned representative in performing functions and duties relating to sections 8, 15,', 11339:'31, 36, and 44 of the small business act; 9 cooperates and consults on a regular basis with the sba', 11340:'in carrying out the agencys functions and duties in sections 8, 15, 31, 36, and 44 of the small business', 11341:'act; 10 makes recommendations in accordance with agency procedures as to whether a particular acquisition should be awarded under subpart', 11342:'19.5 as a small business setaside, under subpart 19.8 as a section 8a award, under subpart 19.13 as a hubzone', 11343:'setaside, under subpart 19.14 as a setaside servicedisabled veteranowned small business sdvosb concerns eligible under the sdvosb program, or under', 11344:'subpart 19.15 as a setaside for economically disadvantaged womenowned small business edwosb concerns or womenowned small business wosb concerns eligible', 11345:'under the wosb program; 11 conducts annual reviewsto assessthe— i extent to which small businesses are receiving a fair share', 11346:'of federal procurements, including contract opportunities under the programs administered under the small business act; ii adequacy of consolidated or', 11347:'bundled contract documentation and justifications; and iii actionstakento mitigatethe effects of necessary and justifiedconsolidation or bundling on small businesses. 12', 11348:'provides a copyof the assessment made under paragraph c11 of this section to the agency head and sba administrator; federal', 11349:'acquisition regulation 13 provides to the chief acquisition officerand senior procurementexecutive advice and comments onacquisition strategies, market research, and justifications', 11350:'related to consolidation of contract requirements; 14 when notified by a small business concern prior to the award of a', 11351:'contract that the small business concern believes that a solicitation, request for proposal, or request for quotation unduly restricts the', 11352:'ability of the small business concern to compete for the award– isubmits the notification bythe small business concernto thecontracting officer', 11353:'and, ifnecessary,recommends ways in which the solicitation, request for proposal, or request for quotation may be altered to increase the', 11354:'opportunity for competition; and ii informs the advocate for competition of such agency as established under 41 u.s.c 1705 or', 11355:'10 u.s.c. 3249 of such notification; 15 ensures agency purchases using the governmentwide purchase card that are greater than the', 11356:'micropurchase threshold and less than the simplified acquisition threshold were made in compliance with the small business act and were', 11357:'properly recorded in accordance with subpart 4.6 in the federal procurement data system; 16 assists small business contractors and subcontractors', 11358:'in finding resources for education and training on compliance with contracting regulations; 17 reviews all subcontracting plans required by 19.702a', 11359:'to ensure the plan provides maximum practicable opportunity for small business concerns to participate in the performance of the contract;', 11360:'and 18 performs other duties listed at 15 u.s.c. 644k. d small business specialists shall be appointed and act in', 11361:'accordance with agency regulations. 1 the contracting activity shall coordinate with the small business specialist as early in the acquisition', 11362:'planning process as practicable, but no later than 30 days before the issuance of a solicitation, or prior to placing', 11363:'an order without a solicitation when the acquisition meets the dollar thresholds set forth at 7.1074a1. see also 7.104d. 2', 11364:'the small businessspecialist shall notify the agencys director ofthe office of small and disadvantaged business utilization,and for the department of', 11365:'defense,the director ofthe office of small business programs, when the criteria relating to substantial bundling at 7.1074a1 are met. 3', 11366:'the small business specialist shall coordinate with the contracting activity and the sba pcr on all determinations and findings required', 11367:'by 7.107 for consolidation or bundling of contract requirements. 19.202specific policies. in order to further the policy in 19.201 a,', 11368:'contracting officers shall comply with the specific policies listed in this section and shall consider recommendations of theagency director ofthe', 11369:'office of small and disadvantaged business utilization, or for the departmentof defense, the director of the officeof small business programs,', 11370:'or the director’s designee, as to whether a particular acquisition should be awarded under subpart 19.5, 19.8, 19.13, 19.14, or', 11371:'19.15. agencies shall establish procedures including dollar thresholds for review of acquisitions by the director or the directors designee for', 11372:'the purpose of makingthese recommendations. the contracting officershalldocument the contract file whenever the directors recommendations are not accepted, in accordance', 11373:'with 19.506. 19.2021 encouraging small business participation in acquisitions. small business concerns shall be afforded an equitable opportunityto compete for', 11374:'all contracts thatthey can perform to theextent consistentwith the government’sinterest. when applicable, the contracting officer shall take the following actions:', 11375:'a divide proposed acquisitions of supplies and services except construction into reasonably small lots not less than economicproduction runs to', 11376:'permit offerson quantities less than the total requirement. b plan acquisitions such that, if practicable, more than one small business', 11377:'concern may perform the work, if the work exceeds the amount for which a surety may be guaranteed by sba', 11378:'against loss under 15 u.s.c. 694b see definition of “applicable statutory limit” at 13 cfr 115.10. c ensure that delivery', 11379:'schedules are established on a realistic basis that will encourage small business participation to the extent consistent with the actual', 11380:'requirements of the government. d encourage prime contractors to subcontract with small business concerns see subpart 19.7. e 1 provide', 11381:'a copy of the proposed acquisition package and other reasonably obtainable information related to theacquisition to the sbapcr or, if', 11382:'a pcr is not assigned, see 19.402a at least 30 days prior to the issuance of the solicitation if— subpart', 11383:'19.2 policies 19.2024 i the proposed acquisition is for supplies or services currently being provided by a small business and', 11384:'the proposed acquisition is of a quantity or estimated dollar value, the magnitude of which makes it unlikely that small', 11385:'businesses can compete for the prime contract; ii the proposed acquisition is for construction and seeks to package or consolidate', 11386:'discrete construction projects and the magnitude of this consolidation makes it unlikely that small businesses can compete for the prime', 11387:'contract; iii the proposed acquisition is for a consolidated or bundled requirement. see 7.1075a for mandatory 30day notice requirement to', 11388:'incumbent small business concerns.the contracting officer shall provideall information relativeto thejustification for the consolidation or bundling, including the acquisition plan', 11389:'or strategy, and if the acquisition involves substantial bundling, the information identified in 7.1074. the contractingofficer shall also provide the', 11390:'same information to theagency office of small and disadvantaged business utilization: or iv the acquisition will be reviewed at the', 11391:'pcrs discretion. 2 for acquisitions described in paragraph e1i through iii of this section, provide a statement explaining why the', 11392:'— i proposed acquisition cannot be divided into reasonably small lots not less than economic production runs to permit offers', 11393:'on quantities less than the total requirement; ii delivery schedules cannot be established on a realistic basis that will encourage', 11394:'small business participation to the extent consistent with the actual requirements of the government; iii proposed acquisition cannot be structured', 11395:'so as to make it likely that small businesses can compete for the prime contract; iv consolidated construction project cannot', 11396:'be acquired as separate discrete projects; or v consolidation or bundling is necessary and justified. 3 process the 30day notification', 11397:'concurrently with other processing steps required prior to the issuance of the solicitation. 4 if the contracting officer rejects the', 11398:'sbapcr’s recommendationmade in accordance with 19.402c2, document the basis for the rejection and notify the sba pcr in accordance with', 11399:'19.5028. 19.2022locating small businesssources. the contractingofficer shall,to the extent practicable, encourage maximum participation by small business, veteran owned small business,', 11400:'servicedisabled veteranowned small business, hubzone small business, small disadvantaged business, and womenowned small business concerns in acquisitions by taking the', 11401:'following actions: a before issuingsolicitations, make every reasonable effort to find additional smallbusinessconcerns see 10.002b2. this effort should include contactingthe', 11402:'agencysmall business specialist and sba pcr or, if a pcr is not assigned, see 19.402a. b publicize solicitations and contract', 11403:'awards through the governmentwide point of entry see subparts 5.2 and 5.3. 19.2023 equal low bids. in the event of', 11404:'equal low bids see 14.4086, awards shall be made first to small business concerns which are also labor surplus area', 11405:'concerns, and second to small business concerns which are not also labor surplus area concerns. 19.2024 solicitation. the contractingofficer shall', 11406:'encourage maximum response to solicitations by small business, veteranowned small business, servicedisabled veteranowned small business, hubzone small business, small disadvantaged', 11407:'business, and womenowned small business concerns by taking the following actions: a allow the maximum amount of time practicableforthe submission', 11408:'of offers. b furnish specifications, plans, and drawings with solicitations, or furnish information as to where they may be obtained', 11409:'or examined. c provide to any small business concern, upon its request, a copy of solicitations with respect to any', 11410:'contract to be let, the name and telephone number of an agency contact to answer questions related to such prospective', 11411:'contract and adequate citations to each major federal law or agency rule with which such business concern must comply in', 11412:'performing such contract other than laws or agency rules with which the small business must comply when doing business with', 11413:'other than the government. 19.2025 federal acquisition regulation 19.2025datacollection and reporting requirements. agencies shall measure the extent of small business', 11414:'participation in their acquisition programs by taking the following actions: a require each prospective contractor to represent whether it is', 11415:'a small business, veteranowned small business, service disabled veteranowned small business, hubzone small business, small disadvantaged business, womenowned small business,', 11416:'edwosb concern, or wosb concern eligible under the wosb program see the provision at 52.2191, small business program representations. b', 11417:'accurately measure the extent of participation by small business, veteranowned small business, servicedisabled veteranowned small business, hubzone small business, small', 11418:'disadvantaged business, and womenowned small business concerns in governmentacquisitions interms ofthe total value of contracts placed during each fiscal year,andreport', 11419:'data to the sba at the end of each fiscal year see subpart 4.6. c when the contract includes the', 11420:'clause at 52.21928,post award small business program rerepresentation, and the conditions in the clause for rerepresenting are met— 1 require', 11421:'a contractor that represented itself as any of the small business concerns identified in 19.000a3 prior to award of the', 11422:'contract to rerepresent its size and socioeconomic status i.e., 8a, small disadvantaged business, hubzone small business, servicedisabled veteranowned small business,', 11423:'edwosb, or wosb status; and 2 permit a contractor that represented itself as other than a small business concern prior', 11424:'to award to rerepresent its size status. 19.2026 determination of fair market price. a the fair market price shall be', 11425:'the price achieved in accordance with the reasonable price guidelines in 15.4041b for 1totalandpartialsmallbusinesssetasides,andreservessee subpart 19.5; 2 hubzone setasides see', 11426:'subpart 19.13; 3 contracts utilizing the price evaluation preference for hubzone small business concerns see subpart 19.13; 4 setasides for', 11427:'sdvosb concerns eligible under the sdvosb program see subpart 19.14; 5 setasides for edwosb concerns and wosb concerns eligible under', 11428:'the wosb program see subpart 19.15. b for 8a contracts, both with respect to meeting the requirement at 19.806b and', 11429:'in order to accurately estimate the current fair market price, contracting officers shall follow theprocedures at 19.807. 19.203 relationship among', 11430:'small business programs. a general. there is no order of precedence among the 8a program subpart 19.8, hubzone program subpart', 11431:'19.13, servicedisabled veteranownedsmallbusiness sdvosb program subpart 19.14, or thewomenownedsmall business wosb program subpart 19.15. b at or below the simplified', 11432:'acquisition threshold. for acquisitions of supplies or services that have an anticipated dollar value above the micropurchase threshold, but at', 11433:'or below the simplified acquisition threshold, the requirement at 19.5022a to set aside acquisitions for small business concerns does not', 11434:'preclude the contracting officer from awarding a contract to a small business under the 8a program, hubzone program, sdvosb program,', 11435:'or wosb program. c above the simplified acquisition threshold. for acquisitions of supplies or services that have an anticipated dollar', 11436:'value exceeding the simplified acquisition threshold definition at 2.101,the contracting officer shall first consider an acquisition for the small business', 11437:'socioeconomic contracting programs i.e., 8a, hubzone, sdvosb, or wosb programs before considering a small business setaside see 19.5022b. however, ifa', 11438:'requirement has been accepted by the sbaunder the 8a program, it must remain in the 8a program unless the sba', 11439:'agrees to its release in accordance with 13 cfr parts 124, 126, 127, and 128. d in determining which socioeconomic', 11440:'program touse for an acquisition, the contracting officershouldconsider, at a minimum 1 results of market research that was done to', 11441:'determine if there are socioeconomic firms capable of satisfying the agency’s requirement; and 2 agency progress in fulfilling its small', 11442:'business goals. e small business setasides have priority over acquisitions using full and open competition. see requirements for establishing a', 11443:'small business setaside at subpart 19.5. subpart 19.3 determination of small business size and status for small business programs 19.3011', 11444:'subpart 19.3 determination of small business size and status for small business programs 19.301 representations and rerepresentations. 19.3011representation by the', 11445:'offeror. a 1tobeeligibleforawardasasmallbusinessconcernidentifiedin 19.000a3,anofferorisrequiredtorepresentin good faith— i a that it meets the small business size standard corresponding to the north', 11446:'american industry classification system naics code identified in the solicitation; or b for a multipleaward contract where there is more', 11447:'than one naics code assigned, that it meets the small business size standard for each distinct portion or category e.g.,', 11448:'line item numbers, special item numbers sins, sectors, functional areas, or the equivalent for which it submits an offer. if', 11449:'the small business concern submits an offer for the entire multipleaward contract, it must meet the size standard for each', 11450:'distinct portion or category e.g., line item number,sin, sector, functionalarea, or equivalent; and ii the small business administration sba has', 11451:'not issued a written determination stating otherwise pursuant to 13 cfr 121.1009. 2 i a joint venture may qualify as', 11452:'a small business concern if the joint venture complies with the requirements of 13 cfr 121.103h and 13 cfr 125.8a', 11453:'and b and if— a each party to the joint venture qualifies as small under the size standard for the', 11454:'solicitation; or b the protégé is small under the size standard for the solicitation in a joint venture comprised of', 11455:'a mentor and protégé with an approved mentorprotégé agreement under an sba mentorprotégé program. ii a joint venture may qualify', 11456:'for an award under the socioeconomic programs as described in subparts 19.8, 19.13, 19.14, and 19.15. b an offeror is', 11457:'required torepresent its size and socioeconomic status in writingto the contracting officer at the time of initial offer,whether ornot the', 11458:'offerincludes price or the price is evaluated, including offers for— 1 basic ordering agreements see 16.703; and 2blanketpurchaseagreementsbpasissuedpursuantto part 13.', 11459:'ctobeeligibleforanawardofanorderunderabasicorderingagreementorabpaissuedpursuantto part 13 as a small business concern identified in 19.000a3, the offeror must bea small business concern identifiedin 19.000a3', 11460:'at the time of awardof the order. dtobeeligibleforanawardunderthehubzoneprogramsee subpart 19.13, a hubzone small business concern must be a hubzone small', 11461:'business concern at thetime ofinitial offer. e multipleaward contract representations: 1 a business that represents as a small business concernat', 11462:'the timeof its initial offer for the contractwhether ornot theoffer includes price or the price is evaluated see 13 cfr', 11463:'121.404a1iv, is considered a small business concern for each order issued under the contract but see 19.3012 for rerepresentations. 2', 11464:'a business that represents as a small business concernat the timeof its initial offer for a distinct portion or category', 11465:'as set forth in paragraph a1ii is considered a small business concern for each order issued under that distinct portion', 11466:'or category but see 19.3012 for rerepresentations. f the contracting officer shall accept anofferor’s representation in a specific bid orproposal', 11467:'that it is a small business unless 1 anotherofferor or interested party challenges the concern’s small business representation or 2', 11468:'the contracting officer has a reason toquestionthe representation. challenges of and questions concerning a specific representation shall be referred to', 11469:'the sba in accordance with 19.302. g an offeror’s representation that it is a small business isnot binding on the', 11470:'sba. if an offeror’s smallbusinessstatus is challenged, the sba will evaluate the status of the concern and make a determination,', 11471:'which will be binding on the contracting officer, as to whether the offeror is a small business. a concern cannot', 11472:'become eligible for a specific awardby taking action to meet the definition of a small business concern after the sba', 11473:'has determined that it is not a small business. h if the sba determines that the status of a concern', 11474:'as a small business, veteranowned small business, servicedisabled veteranowned small business, hubzone small business, small disadvantaged business, or womenowned small', 11475:'business has been misrepresented in order to obtain a setaside contract, an 8a subcontract, a subcontract that is to be', 11476:'included as part or all of a goal contained in a subcontracting plan, or a prime or subcontract to be', 11477:'awarded as a result, or in furtherance of any other provision of federal law that specifically references section 8d of', 11478:'the small business act for a definition of program eligibility, the sba may take action as specified in sections 16aor', 11479:'16d of the act. if thesba declines to take 19.3012 federal acquisition regulation action, theagency may initiate theprocess. the sba’sregulations', 11480:'on penalties for misrepresentations and false statements are contained in 13 cfr 121.108 for small business, 13 cfr 124.501 for', 11481:'8a small business, 13 cfr 128.600 for veteran or servicedisabled veteranowned small business, 13 cfr 126.900 for hubzone small business,', 11482:'and 13 cfr 127.700 for economically disadvantaged womenowned small business concerns and womenowned small business wosb concerns eligible under the', 11483:'wosb program. 19.3012rerepresentation by a contractor that represented itself asa smallbusiness concern. a definition. as used in this subsection longterm', 11484:'contract means a contract of more than fiveyears induration, including options. however,the term does not include contracts that exceed five', 11485:'years in duration because the period of performance has been extended for a cumulative period not to exceed six months', 11486:'under the clause at 52.2178, option to extend services, orotherappropriate authority. b a contractor that represented itself as any of', 11487:'the small business concerns identified in 19.000a3 before contract award is required to rerepresent its size and socioeconomic status— 1', 11488:'for the naics codes in the contract– iwithin 30 days after executionof anovation agreement or within 30 days after modification', 11489:'of the contract to include the clause at 52.21928,postaward small businessprogram rerepresentation, ifthe novation agreement was executed prior to inclusion', 11490:'of this clause in the contract; iiwithin 30 days after a merger or acquisition whether thecontractor acquires or isacquired by', 11491:'another company of the contractor that does not require novation or within 30 days after modification of the contract to', 11492:'include the clause at 52.21928, postaward small business program rerepresentation, if themergeror acquisition occurred prior to inclusion of this clause', 11493:'in the contract; iii for longterm contracts– awithin 60 to 120 days prior to the end ofthe fifth year ofthe', 11494:'contract; and b within60 to 120 days prior to thedate specified in the contract for exercising any option thereafter; or', 11495:'2 for the naics code assignedto anorder undera multipleaward contract, if thecontracting officer requires contractors to rerepresent their size andsocioeconomic', 11496:'status for that order. c a contractoris required to rerepresent its size status in accordance with the sizestandard in effect', 11497:'atthe time of its rerepresentation that corresponds to the naics code that was initially assigned to the contract. for multipleaward', 11498:'contracts where there is more than one naics code assigned, the contractor is required to rerepresent its size status for', 11499:'each naics code assigned to the contract. d 1 contract rerepresentation. after a contractor rerepresents for a contract that it', 11500:'no longer qualifies as a small business concern identified in 19.000a3 in accordance with 52.21928, the agency may no longer', 11501:'include the value of options exercised, modifications issued,ordersissued, orpurchases made under bpas on that contractin itssmall business prime contracting goalachievements.', 11502:'when acontractors rerepresentation for a contract qualifies it as a different small business concern identified in 19.000a3 than what it', 11503:'represented for award, the agency may include the value of options exercised, modificationsissued, orders issued, orpurchases made under bpas on', 11504:'that contractin itssmallbusiness prime contracting goal achievements, consistent with the rerepresentation. agencies should issue a modification to the contract capturing', 11505:'the rerepresentation and report it to fpds within 30 days after notification of the rerepresentation. 2 rerepresentation for a task', 11506:'or delivery order. i when a contractor rerepresents for an order that it no longer qualifies as a small business', 11507:'concern identified in 19.000a3, the agency cannot include the value of the order in its small business prime contracting goalachievements.', 11508:'when acontractors rerepresentation for an order qualifies it as adifferent small business concern identified in 19.000a3 than what it represented', 11509:'for contract award, the agency can include the value of the order in its small business prime contracting goal achievement,', 11510:'consistent with the rerepresentation. ii a rerepresentation for an order does not change the size or socioeconomic status representation for', 11511:'the contract. e a change insize status doesnot change the terms and conditionsof the contract. however,the contracting officer may require', 11512:'a subcontracting plan for a contract containing 52.2199, small business subcontracting plan, if a prime contractors size status changes from', 11513:'small to other than small as a result of a size rerepresentation see 19.7052b3. 19.3013rerepresentation by a contractor that represented', 11514:'itself asother than a small business concern. a contractor that represented itselfas other than small before contract awardmay, but is', 11515:'not required to, rerepresent its size status when a the conditions in 19.3012b apply; and subpart 19.3 determination of small', 11516:'business size and status for small business programs 19.302 b the contractorqualifies as a small business concern under the applicable', 11517:'size standard in effectat the timeof its rerepresentation. 19.302 protesting a small business representationor rerepresentation. a 1 the sba regulations', 11518:'on small business size and size protests are found at 13 cfr part 121 . 2 an offeror, the contractingofficer,', 11519:'sba, or another interested party may protestthe small business representation of an offeror in a specific offer for a contract.', 11520:'however, for competitive 8a contracts, thefiling of a protest islimited toan offeror, the contracting officer,or sba. see 13 cfr 121.1001a.', 11521:'b any time after offers are received by the contracting officer,or in the case of bids, opened, the contractingofficer may', 11522:'question the small business representation ofanyofferor in aspecific offer by filinga contractingofficers protestsee paragraph c of this section. c 1anycontractingofficerwhoreceivesaprotest,whethertimelyornot,orwho,asthecontractingofficer,wishesto', 11523:'protestthe small business representationof an offeror, orrerepresentationof acontractor, shall promptly forward the protest to the sba government contracting areadirector atthe', 11524:'government contracting areaoffice serving the area in which the headquarters ofthe offeroris located. 2 the protest,or confirmation if the protest', 11525:'wasinitiated orally,shallbe inwriting and shall contain the basisfor theprotest with specific, detailed evidence tosupport the allegation that the offeror is', 11526:'not small. the sba will dismiss any protest that does not contain specific grounds for the protest. 3 the protest', 11527:'shall includea referral letter written by the contracting officer with information pertaining to the solicitation. the referral letter must include', 11528:'the following information to allow sba to determine timeliness and standing: i the protest and any accompanying materials. ii a', 11529:'copy of the size selfcertification. iii identification of the applicable size standard. iv a copy or an electronic link to', 11530:'the solicitation and any amendments. v the name, address, telephone number, email address, and fax number ofthe contracting officer. vi', 11531:'identification ofthe bid openingdate or the date of notification provided to unsuccessful offerors. vii thedate the contracting officer receivedthe protest.', 11532:'viii a complete address and point of contact for the protested concern. d in order toaffect a specificsolicitation, a protest', 11533:'must be timely. sbas regulations on timelinessare contained in 13 cfr 121.1004. sbas regulations on timeliness related to protests of', 11534:'disadvantaged status are contained in 13 cfr part 124, subpart b. 1 to be timely, a protest by any concern', 11535:'or other interested party must be received by the contracting officer by the close of business of the fifth business', 11536:'day after i bid opening for sealed bid acquisitions; or iireceiptof the special notificationfrom the contracting officer see 15.503a2 that', 11537:'identifies the apparently successful offeror for negotiated acquisitions,including— a partial setasides and reserves of multipleaward contracts; b orders that are', 11538:'setaside under an unrestricted multipleaward contract except for orders and blanket purchase agreements placed under a federal supply schedule contract', 11539:'see 8.405 and paragraph d5 of this section; and c orders placed under multipleaward contractswhere the contractingofficer requestedrerepresentationforthe order; or', 11540:'iii receipt of notification using other communication means when written notification is not required. 2 a protestmay be made orally', 11541:'if it is confirmed in writing and received by thecontracting officer withinthe 5day period or by letter postmarked no later', 11542:'than 1 business day after the oral protest. 3 a protestmay be made in writing if it is deliveredto the', 11543:'contracting officer by hand, mail, facsimile, email, express or overnight delivery service. 4 except as provided in paragraph d6of this', 11544:'section, a protestfiled by thecontracting officer or sba is always considered timely whether filed before or after award. 5 a', 11545:'protestunder a multiple award schedule will be timely if receivedby sbaat anytime prior tothe expiration of the contract period, including', 11546:'renewals. 6 a protestfiled before bidopening,or notification to offerors of the selection ofthe apparent successful offeror,will be dismissed as premature', 11547:'by sba. e upon receiptof aprotest from or forwarded by the contractingoffice, the sbawill federal acquisition regulation 1 notify the', 11548:'contracting officer and the protester of the date it was received, and thatthe size ofthe concern being challenged is under', 11549:'consideration by the sba; and 2 furnish to the concern whose representation is being protested a copy of the protest', 11550:'and a blank sba form355, application for small business determination, by certified mail, return receipt requested. f 1within15businessdaysafterreceiptofaprotestorrequestforaformalsizedeterminationorwithinanyextension of time', 11551:'grantedby the contracting officerthe sba areaoffice will determine the size status ofthe challenged concern. the sba areaoffice will notify the', 11552:'contracting officer, the protester, and thechallenged concern of its decision by a verifiable means, which may include facsimile, electronic mail,', 11553:'or overnight delivery service. 2 award may bemade to a protested concern afterthe sba areaoffice has determinedthat either the protested', 11554:'concern is an eligible small business or has dismissed all protests against it. 3 if sba’s officeof hearings and appeals', 11555:'oha subsequentlyoverturns the area offices determination of eligibility or dismissal, and contract award has not been made, the contracting officer', 11556:'may apply the oha decision to the procurement in question. g 1afterreceivingaprotestinvolvinganofferorbeingconsideredforaward,thecontractingofficershallnotaward thecontract until the sba has made a size', 11557:'determination or 15businessdays have expiredsince sba’s receipt of a protest, whichever occurs first; however, award shall not be withheld when', 11558:'the contracting officer determines in writing that an award must be made to protect the public interest. 2 if sba', 11559:'has not made a determination within 15 business days, or within any extension of time granted by the contracting officer,', 11560:'thecontracting officer may award the contract after determining inwriting thatthere is an immediate need to award the contract and that', 11561:'waiting until sba makes its determination will be disadvantageous to the government. 3 sba may,at its sole discretion, reopen a', 11562:'formalsize determination to correct an error ormistake, if it is within the appeal period and no appeal has been filed', 11563:'with oha or, a final decision has not been renderedby the sba areaofficeor oha. 4 if a protestis receivedthat challenges', 11564:'the small business status ofan offerornot being considered for award, the contracting officeris not required to suspend contract action. the', 11565:'contractingofficer shall forward the protest to the sba see paragraph c1 of this section with a notation that the concern', 11566:'is not being considered for award, and shall notify the protester of this action. h an appeal from an sba', 11567:'size determination may be filed by any concern or other interested party whose protest of thesmall business representation of another', 11568:'concern has been denied by an sba government contracting area director, any concernor other interested party thathas been adversely affected', 11569:'byan sba government contracting area director’s decision, or the sba associate administrator for thesba program involved. the appeal mustbe filed', 11570:'with theofficeof hearingsandappeals, small business administration, suite 5900, 409 3 rdstreet, sw., washington,dc 20416, within the time limits and in', 11571:'strict accordance with the procedures contained in subpart c of 13 cfr 134. it is within the discretion of the', 11572:'sba judge whether to accept an appeal from a size determination. if a postaward appeal is submitted to oha within', 11573:'the time limits specified in subpart c of 13 cfr 134,the contracting officer shall consider suspending contract performanceuntil an sba', 11574:'judge decides the appeal. sba will inform the contractingofficer of its ruling on the appeal. sba’s decision, if received before', 11575:'award, willapply to thepending acquisition. if the contracting officer has made awritten determination in accordance with g1 or 2 of', 11576:'this section, the contract has been awarded, the sba rulings is received after award, and ohafinds theprotestedconcern to be ineligible', 11577:'for award, thecontracting officer shall terminate the contract unless termination is not in the best interests of the government, in', 11578:'keeping with the circumstances described in the written determination. however,the contracting officershallnot exercise any options oraward further task or delivery', 11579:'orders. isba willdismiss untimely protests. a protest that is not timely, even though received beforeaward, shall be forwarded to the', 11580:'sba government contracting areaoffice see paragraph c1 of this section, with anotation on it that the protest is not timely.', 11581:'aprotest received by acontracting officer after awardof acontract shall be forwarded to the sba government contracting areaoffice with a notation', 11582:'that awardhas been made. j when a concern is found to be other than small under a protest concerning a', 11583:'size status rerepresentation made in accordance with the clause at 52.21928, postaward small business program rerepresentation, a contracting officermay permit', 11584:'contract performance to continue, issue orders, or exercise options, because the contract remains a valid contract. subpart 19.3 determination of', 11585:'small business size and status for small business programs 19.306 19.303[reserved]. 19.304small disadvantaged business status. a thecontracting officer may accept', 11586:'an offeror’s representation that it is a small disadvantaged business concern sdb concern. b the provision at 52.2191, small business', 11587:'program representations, or 52.2123c5, offeror representationsand certificationscommercial products and commercial services, is used to collect sdb data. c a representation', 11588:'of sdb status on a federal prime contract will be deemed a misrepresentation of sdb status if the firm does', 11589:'not meet the requirements of 13 cfr 124.1001. d any person or entity that misrepresents a firms status as an', 11590:'sdb concern in order to obtain a contracting opportunity in accordance with section 8d of the small business act, 15', 11591:'u.s.c. 637d will be subject to the penalties imposed by section 16d of the small business act, 15 u.s.c. 645d,', 11592:'aswellas any other penaltyauthorized by law. 19.305reviews of sdb status. this sectionapplies to reviews of a smallbusinessconcerns sdb statusas aprimecontractor', 11593:'or subcontractor. a sba may initiate the review of sdb status on any firm that has represented itself to be', 11594:'an sdb on a prime contract or subcontract to a federal prime contract whenever it receives credible information calling into', 11595:'question the sdb status of the firm. b requests for an sba review of sdb status may be forwarded to', 11596:'the small business administration, associate administrator for business development aa/bd,409 third street, sw, washington, dc 20416. c an sba review', 11597:'of a subcontractorssdb status differsfrom a formal protest. protestsof aconcerns size asa prime contractor are processed under 19.302. protests of', 11598:'a concerns size as a subcontractor are processed under 19.703b. 19.306 protesting a firm’s statusas a hubzonesmall business concern. a', 11599:'definition. as used in this section interested party has the meaning given in 13 cfr 126.103. b 1forsolesourceprocurements,sbaorthecontractingofficermayprotesttheprospectivecontractorscertified hubzone status;', 11600:'for all other procurements, sba, the contracting officer, or any other interested partymay protest the apparentsuccessfulofferorscertifiedhubzone status see 13 cfr', 11601:'126.800. 2 the directorof sbas office of the hubzone program will determine whether the concern hascertifiedhubzone status. if sba upholds', 11602:'the protest, sba will remove the concerns hubzone status in the dynamic small business search dsbs. sbas protest regulations are', 11603:'found in subpart h “protests” at 13 cfr 126.800 through 126.805. c protests relating to small business size status are', 11604:'subject to the procedures of 19.302. an interested party seeking to protestboth the small business size and hubzone statusof an', 11605:'apparentsuccessfulofferor shall file twoseparate protests. protests relating to small business size status for the acquisition and the hubzone eligibility requirements', 11606:'will be processed concurrently by sba. d 1 all protests must be in writing and must state all specific grounds', 11607:'for the protest i.e., why the protested concern did not meet the eligibility requirements at 13 cfr 126.200 at the', 11608:'time of the concerns application to sba for certification as a hubzone small business concern or at the time sba', 11609:'certified or last recertified the concern as a hubzone small business concern. assertions that a protested concern is not a', 11610:'hubzone small business concern, without setting forth specific facts or allegations, will not be considered by sba see 13 cfr', 11611:'126.801b. 2 protestsfiled againsta hubzone joint venture must state one or, if applicable, both of the following: i why the', 11612:'hubzone small business party to the joint venture did not meet the eligibility requirements at 13 cfr 126.200 at the', 11613:'time of its application to sba for certification or at the time sba certified or last recertified the concern as', 11614:'a hubzone small business concern. ii why the joint venture did not meet the requirements at 13 cfr 126.616at the', 11615:'timeof submission of its offer for a hubzone contract. e submission of a protest. 1 an interested party shall submit', 11616:'its written protest to the contractingofficer i for sealed bids a by the close of business on the fifth business', 11617:'day after bid opening; or b by the close of business on the fifth business day from the date of', 11618:'identification of the apparent successful offeror, if the priceevaluation preference was notapplied at the time of bid opening; federal acquisition', 11619:'regulation ii for negotiated acquisitions, by the close of business on the fifth business day after receipt of the special', 11620:'notificationfrom the contracting officer see 15.503a2 of the apparently successful offeror, including— aorders placed undermultipleaward contracts where the contracting officer', 11621:'requested rerepresentation for the order see 13 cfr 126.801d1; and b orders set aside for hubzone small businesses under multipleaward', 11622:'contracts that are not partially or totally setaside or reserved for hubzone small business concerns see 13 cfr 126.801d1, except', 11623:'for orders and blanket purchase agreements placed under a federal supply schedule contract see 8.405 and 19.302d5; or iii by', 11624:'the close of business on the fifth business day after receipt of notification using other communication means when written notification', 11625:'is not required. 2 any protest receivedafter the designated time limits is untimely, unless it is from the contractingofficer or', 11626:'sba. 3 sba will consider protests for hubzone setaside or solesource service contracts or orders, if a hubzone prime contractor', 11627:'is unduly reliant on a small entity subcontractor that is not a similarlysituated entity as defined in 13 cfr 125.1,', 11628:'or if such subcontractor performs the primary and vital requirements of the contract. for allegations that the prime contractor is', 11629:'unduly reliant on anotherthansmallsubcontractor, see size protests at 19.302, and 13 cfr 121.103h2, which treats the pair as joint venturers', 11630:'for size determination purposes the “ostensible subcontractor rule”. f the contracting officer shall forward all protests with a referral letter', 11631:'tothe director ofsbas office of the hubzone program, by email to hzprotests@sba.gov. the referral letter shall include the following— 1', 11632:'the solicitation number; 2 the contractingofficers name and contact information; 3 the type of hubzone contract i.e., solesource, setaside, full', 11633:'and open competition with a hubzone price evaluation preference, or reserve for hubzone small business concerns under a multipleaward contract;', 11634:'4 for a procurement conducted using full and open competition with a hubzone price evaluation preference, whether theprotesters opportunityforaward was', 11635:'affected bythe preference; 5 for a hubzone setaside, whether theprotestersubmitted an offer; 6 whetherthe protested concern was the apparentsuccessfulofferor; 7', 11636:'whether the procurement was conducted using sealed bid or negotiated procedures; 8 the bid opening date, if applicable; 9 the', 11637:'date the protester was notified of the apparentsuccessfulofferor; 10 the date the contracting officer received theprotest; 11 the date the', 11638:'protested concern submitted its initialoffer or quote to the contracting officer; and 12 whether a contract hasbeenawarded, and if so,', 11639:'the date of award and contract number. g sba will notify the protesterandthe contracting officerof the date sbareceived the protest.', 11640:'h before sba decision. 1 after receiving a protestinvolvingthe apparentsuccessfulofferor’s status as a hubzone small business concern, the contracting officer', 11641:'shall either iwithholdaward of thecontract until sbadeterminesthe statusof the protested concern; or iiawardthe contract if— a sba does not issue', 11642:'its decision within 15 business days after receipt of the protest; and b the contracting officerdeterminesin writingthat there isan immediate', 11643:'need toaward the contract and that waiting for sbas determination will be disadvantageous to the government. 2 sba will determine', 11644:'the merits of the status protest within 15 business days after receipt of a protest, or within any extension of', 11645:'time granted bythe contracting officer. iafter sba decision. the sba will notify thecontracting officer, the protester,andthe protested concern of the', 11646:'sba determination. the determination is effective immediately and is finalunlessoverturned on appeal by sba’s associate administrator,office of government contractingand businessdevelopment', 11647:'aa/gc&bd. 1 if the contracting officer has withheld contract award andsba has determined that theprotestedconcern is an eligible hubzone or', 11648:'dismissed allprotests against theprotestedconcern, the contracting officermay award thecontract to the protested concern. if the aa/gc&bd subsequently overturns the initial', 11649:'determination or dismissal, the contracting officer may apply the aa/gc&bd decision to the procurement inquestion. 2 if the contracting officer', 11650:'has withheld awardand the hubzone programdirector hasdetermined that the protested concern is ineligible, and atimely aa/gc&bd appeal has not been', 11651:'filed,then the contracting officershallnot award the contract to the protested concern. subpart 19.3 determination of small business size and status', 11652:'for small business programs 19.307 3 if the contracting officer has made a writtendetermination in accordance with h1iib of this', 11653:'section, awarded thecontract, and the director of sbasoffice of the hubzone programs ruling sustaining the protest isreceived after award —', 11654:'ithe contracting officer shall either— aterminatethe contract; or b 1 make a written determination that termination is not in the', 11655:'best interests of the government; and 2 not exercise any options or award further task or delivery orders under the', 11656:'contract. ii sba will remove the concerns designation as a certified hubzone small business concern in the dynamic small business', 11657:'search dsbs. the concern is not permitted to submit an offer asa hubzone small business concernuntil sba issues a decision', 11658:'that the ineligibility is resolved; and iii after sba updates the concerns designation as a hubzone small business indsbs,the contracting', 11659:'officer shall update the federal procurement data system fpds to reflect the final decision of the hubzone program director if', 11660:'no appeal is filed. 4 if the contracting officer has made a writtendetermination in accordance with h1iib of this section,', 11661:'awarded the contract, sba has sustained the protest and determined that the concern is not a hubzone small business, and', 11662:'a timely aa/gc&bd appeal has been filed, thenthe contracting officershallconsider whether performance can be suspendeduntil an aa/gc&bd decision is rendered.', 11663:'5 if the aa/gc&bd affirms thedecision of thehubzone program director,finding theprotestedconcern is ineligible, and contract award has occurred— ithe contracting', 11664:'officer shall either— aterminatethe contract; or b 1 make a written determination that termination is not in the best interests', 11665:'of the government; and 2 not exercise any options or award further task or delivery orders under the contract; ii', 11666:'sba will remove the concerns designation as a certified hubzone small business concern in dsbs. the concern is not permitted', 11667:'to submit an offer asa hubzone small business concernuntil sba issuesa decisionthat the ineligibility is resolved or the aa/gc&bd finds', 11668:'the concern is eligible on appeal; and iii after sba updates the concerns designation as a hubzone small business indsbs,the', 11669:'contracting officer shall update fpds to reflect the aa/gc&bd decision. 6 a concern found to be ineligible during a hubzone', 11670:'status protest is precluded from applying for hubzone certification for 90 calendar days from the date of the sba final', 11671:'decision. jappeals of hubzone statusdeterminations. the protested hubzone small business concern, the protester, orthe contracting officermay file appeals of protest', 11672:'determinations with sba’s aa/gc&bd. the aa/gc&bd mustreceivethe appeal no later than 5 business days after the date of receipt of', 11673:'the protest determination. sba will dismiss any untimely appeal. k the appeal must be in writing. the appeal must identify', 11674:'the protest determination being appealed and must set forth a full and specific statement as to why the decision is', 11675:'erroneous or what significant fact the hubzone program director failed to consider. l 1 the party appealing the decision must', 11676:'provide notice of the appeal to ithe contracting officer; and iithe protested hubzonesmall business concern or the originalprotester, as appropriate.', 11677:'2 sba will not consider additional information or changed circumstances that were not disclosed at the time of the hubzone', 11678:'program directors determination or that are based on disagreement with the findings and conclusions contained in the determination. m the', 11679:'aa/gc&bd will make its decision within 5 business days of the receipt of the appeal, if practicable, and will base', 11680:'its decision only on the information and documentation in the protest record as supplemented by the appeal. sba will provide', 11681:'a copy of thedecision to the contracting officer, the protester, and theprotestedhubzone small business concern. the sba decision, if received', 11682:'before award, will apply to the pending acquisition. the aa/gc&bds decision is the final decision. 19.307 protesting a firm’s statusas', 11683:'a servicedisabledveteranowned small business concern. a definition. interested party, as used in this section, has the meaning given in 13', 11684:'cfr 134.1002b. federal acquisition regulation b 1 general. for sole source acquisitions, the contracting officer, the department of veterans affairs', 11685:'va, or sba may protest the apparently successful offeror’sservicedisabled veteranowned small business sdvosb status. for all other acquisitions, any interested', 11686:'party may protest the apparently successful offeror’s servicedisabled veteranowned small business status. 2 sba’s protest regulationsare found in 13 cfr', 11687:'128.500 and 13 cfr part 134. c protests relating to small business size status are subject to the procedures of', 11688:'19.302. an interested party seeking to protest both the small business size and servicedisabled veteranowned small business status of an', 11689:'apparent successful offeror shall file two separateprotests. d all protests must be in writing and must state all specific grounds', 11690:'for the protest. 1 oha will consider protests challenging the sdvosb status or the ownership and control of a concern', 11691:'if— i for status protests, the protester presents evidence supporting the contention that the owners cannot provide documentation from the', 11692:'va to show that theymeet thedefinition of “servicedisabled veteran” or “servicedisabled veteran with a permanent and severe disability” as set', 11693:'forth in 13 cfr 128.102; or ii for ownership and control protests, the protester presents evidence that the concern is', 11694:'not 51 percent owned and controlledby one or more servicedisabledveterans. in the case ofa veteran with a permanent and severe', 11695:'disability, the protester presents evidence that the concern is not controlled by the veteran, spouse, or permanent caregiver of such', 11696:'veteran; or iii for setaside or solesource service contract or order ostensible subcontractor protests, the protester presents credible evidence of', 11697:'the alleged undue reliance on a small entity subcontractor that is not a similarlysituated entity as defined in 13 cfr', 11698:'125.1, or credible evidence that the small nonsimilarly situated entity is performing the primary and vital requirementsof the contract. forallegations', 11699:'that the prime contractor isunduly reliant on an otherthansmall subcontractor, see size protests at 19.302, and 13 cfr 121.103h2, which', 11700:'treats the pair as joint venturers for size determination purposes the “ostensible subcontractor rule”; or iv for joint venture protests,', 11701:'the protester presents evidence that the managing sdvosb joint venture partner does not meet the requirements at 13 cfr 128.402.', 11702:'2 assertions that a protested concern is not a servicedisabled veteranowned small business concern, without setting forth specific facts or', 11703:'allegations, will not be considered by oha see 13 cfr 134.1005. e protest by an interested party. 1 an interested', 11704:'partyexcept contractingofficers should see paragraph f1 ofthis section shall submit its protest to the contracting officer— ito bereceived by close', 11705:'of businesson the fifth business dayafter bid opening for sealed bid acquisitions; iito bereceived by close ofbusinesson the fifth businessdayafter', 11706:'receipt of the specialnotification from the contracting officersee 15.503a2 that identifies the apparently successful offeror for negotiatedacquisitions, including— aorders placed', 11707:'undermultipleaward contracts where the contracting officer requested rerepresentation for the order see 13 cfr 134.1004a3ii; and b orders set aside', 11708:'for servicedisabled veteranowned small businesses under multipleaward contracts that are not partially or totally set aside or reserved for servicedisabled', 11709:'veteranowned small business concerns see 13 cfr 134.1004a3i, except for orders and blanket purchase agreements placed under a federal supply', 11710:'schedule contract see 8.405 and 19.302d5; iii to be received byclose ofbusiness on the fifthbusinessday after notification bythe contracting officerof', 11711:'the intended awardee for an order that is set aside for sdvosbs under a multipleaward contract that was not totally', 11712:'or partially set aside or reserved for sdvosb concerns. this paragraph e1iii does not apply to an order issued under', 11713:'a federal supply schedule fss contract; iv to be received by theclose ofthe fifth business day after notification by the', 11714:'contracting officer ofthe intended awardee for a blanket purchase agreement that is set aside for sdvosbs under a multipleaward contract', 11715:'that was not totally or partially set aside or reserved for sdvosb concerns. this paragraph e1iv does not apply to', 11716:'a blanket purchase agreement issued under a fss contract; or v to be received by the close ofbusinesson the fifth', 11717:'businessdayafter receipt of notification using other communication means when written notification is not required. 2 any protest receivedafter the designated', 11718:'time limits is untimely, except— ithe va orsba mayfile ansdvosb statusprotest at any time;and iithe contracting officer, sba, or va', 11719:'may file an sdvosb status protest atany time afterthe apparentawardee has been identified or after bid opening, whichever applies. subpart', 11720:'19.3 determination of small business size and status for small business programs 19.308 f forwarding protests to sba.1the contracting officer', 11721:'shall forward allprotests to theu.s. smallbusiness administration, office of hearings andappeals, 409 third street, sw, washington, dc 20416, orby email', 11722:'at ohafilings@sba.gov, marked “attn:sdvosb status protest”. 2 the protest shall includea referral letter written by the contracting officer with information', 11723:'pertaining to the solicitation. the referral letter must include the following information to allow oha to determine timeliness and standing:', 11724:'i the solicitation number or an electronic link to or a paper copy of the solicitation. iithe name, address, telephonenumber,', 11725:'and email addressof the contractingofficer. iii whether the contract was solesource or setaside. iv whetherthe protestor submitted anoffer. v whetherthe', 11726:'protested concern was the apparentsuccessfulofferor. vi when the protested concern submitted its initial offer that included price. vii whether the', 11727:'acquisition was conducted using sealed bid or negotiated procedures. viii the bid opening date, if applicable. ix the date the', 11728:'contractingofficer received the protest. x the date the protestor received notification about theapparent successful offeror, if applicable. xi whether a', 11729:'contract has been awarded. g notification by oha. oha will notify theprotester, the protested concern, sba’s director ofgovernmentcontracting d/gc, sba', 11730:'counsel,and the contracting officerof the date oha received the protest. h before oha decision. 1after receivinga protest involving the apparent', 11731:'successful offerors status as an sdvosb concern, the contracting officer shall either iwithholdaward of thecontract until oha determines thestatus of', 11732:'the protested concern; or iiawardthe contract after receipt ofthe protest but before ohaissues its decision ifthe contracting officer determines in', 11733:'writing thatan award must be madeto protect thepublic interest. the contractingofficer shall notify oha and sba d/gc in writing of', 11734:'the determination and a copy shall be included in the contract file. 2 oha will determine the merits of the', 11735:'status protest. 3 oha does not have a standard timeline for issuing decisions. i after oha decision. oha will notify', 11736:'thecontracting officer,the protester,and the protested concernof its decision. the decisionis effective immediately and is final. 1 if the contracting officer', 11737:'has withheld contract award andoha has determined thatthe protested concern is an eligible sdvosb or dismissed all protests against the', 11738:'protested concern, thenthe contracting officermay award the contract to the protested concern. 2 if the contracting officer has withheld contract', 11739:'award, and oha hassustained the protest and determined that the concern is not an sdvosb, then the contracting officer shall', 11740:'not award the contract to the protested concern. 3 if the contracting officer has made a writtendetermination in accordance with', 11741:'paragraph h1ii of this section, the contract has been awarded, and the oha decision to sustain the protest is received', 11742:'after award ithe contracting officer shall terminate the contract, unless the contracting officer has made a written determination that termination', 11743:'isnot in the best interests of the government. however, the contracting officer shall not exercise any options or award further', 11744:'task or delivery orders; iithe contracting officer shall update fpds toreflect the final oha decision; and iii the concern must', 11745:'removeits designationin the system for awardmanagement sam as ansdvosb concern within 2 days of the oha decision. sba will update', 11746:'the concern’s sdvosbstatus insam if the concernfailsto do so. the concern shall not submit an offer as a sdvosb concern', 11747:'or an sdvosb concern eligibleunder thesdvosb program, untilthe concern is designatedas an sdvosbby sbain the sbaveteransmallbusinesscertification programdatabase at https://veterans.certify.sba.gov. 4', 11748:'a concern found to be ineligible may not submit future offers as ansdvosb concern until the concern is designated as', 11749:'an sdvosb bysba in the sba veteran small business certificationprogram databaseat https:// veterans.certify.sba.gov. 19.308 protesting a firm’s statusas an economicallydisadvantaged', 11750:'womenowned small business concern orwomenowned small business concern eligible under the womenowned small business program. a definition. interestedparty, as usedin', 11751:'this section, hasthe meaninggiven in 13 cfr 127.102. b 1forsolesourceacquisitions,thecontractingofficerorsbamayprotesttheofferor’sstatusasaneconomically disadvantaged womenowned small business edwosb concern or as a wosb', 11752:'concern eligible under the wosb program. federal acquisition regulation for all other acquisitions, an interested party see 13 cfr 127.102', 11753:'may protest the apparentsuccessfulofferor’s edwosb or wosb status. 2 sba’s protest regulationsare found in subpart f protests at 13 cfr', 11754:'127.600 through 127.605. c protests relating to small business size status are subject to the procedures of 19.302. an interested', 11755:'party seeking to protestboth the small business size and wosb or edwosb status of anapparent successful offerorshallfile two separate protests.', 11756:'d all protests shall be in writing and must state all specific grounds for the protest. 1 sba will consider', 11757:'protests challenging the status of a concern if i the protest presents evidence that the concern is not at least', 11758:'51 percent owned and controlled by one or more women who are united states citizens; ii the protest presents evidence', 11759:'that the concern is not at least 51 percent owned and controlled by one or more economically disadvantaged women who', 11760:'are united states citizens, when it is in connection with an edwosb contract; or iii for wosb or edwosb setaside', 11761:'or solesource service contracts or orders, the protest presents evidence that the prime contractor is unduly reliant on a small', 11762:'entity subcontractor that is not a similarlysituated entity as defined in 13 cfr 125.1, or a protest alleging that such', 11763:'subcontractor is performing the primary and vital requirements of a setaside or solesource wosb or edwosb contract. for allegations that', 11764:'the prime contractor is unduly reliant on an otherthansmall subcontractor, see size protests at19.302, and 13 cfr 121.103h2, which treats', 11765:'the pair as joint venturers for size determination purposes the “ostensible subcontractor rule”. 2 assertions that a protested concern is', 11766:'not an edwosb or wosb concern eligible under the wosb program, without setting forth specific facts or allegations, will not', 11767:'be considered by sba see 13 cfr 127.603a. e protest by an interested party. 1anofferorshallsubmititsprotesttothecontractingofficer— ito bereceived by the close', 11768:'of business by the fifth business day after bidopening for sealed bid acquisitions; iito bereceived by the close of business', 11769:'by the fifth business day after receiptof the special notificationfrom the contracting officersee 15.503a2 that identifies the apparently successful offeror', 11770:'for negotiatedacquisitions including— aorders placed undermultipleaward contracts where the contracting officer requested rerepresentation for the order see 13 cfr 127.603c1;', 11771:'and b orders set aside for edwosb or wosb concerns under multipleaward contracts that are not partially or totally set', 11772:'aside or reserved for edwosb or wosb concerns see 13 cfr 127.603c1, except for orders and blanket purchase agreements placed', 11773:'under a federal supply schedule contract see 8.405 and 19.302d5; or iii to be received bythe close of business on', 11774:'the fifth business day after receiptof notification using other communication means when written notification is not required. 2 any protest', 11775:'receivedafter the designated time limit is untimely, unless it isfrom the contracting officer orsba. f 1thecontractingofficershallforwardallproteststosba. theprotestsaretobesubmittedtosbasdirectorfor government contracting by', 11776:'email at wosbprotest@sba.gov . 2 the protest shall includea referral letter written by the contracting officer with information pertaining to', 11777:'the solicitation. the referral letter must include the following information to allow sba to determine timeliness and standing: i the', 11778:'solicitation number or electronic link to or a paper copy of the solicitation. iithe name, address, telephonenumber, email address, and', 11779:'facsimile number of the contracting officer. iii whether theprotestor submittedan offer. iv whetherthe protested concern was the apparent successful offeror.', 11780:'v when the protested concernsubmitted its offer. vi whether the acquisition was conducted using sealed bid or negotiated procedures. vii', 11781:'the bid opening date, if applicable. viii thedate thecontracting officer receivedthe protest. ix the date the protestor received notification about', 11782:'the apparent successful offeror, if applicable. x whether a contract has been awarded. g sba will notify the protesterandthe contracting', 11783:'officerof the date sbareceived the protest. h before sba decision. 1 after receiving a protest involving the apparent successful offeror’s', 11784:'status as an edwosb or wosbconcern eligible under the wosbprogram, thecontracting officer shall either iwithholdaward of thecontract until sbadeterminesthe statusof', 11785:'the protested concern; or iiawardthe contract after receipt ofthe protest but before sba issues its decision if thecontracting officer determines', 11786:'in writing that an award must be made to protect the public interest. subpart 19.3 determination of small business size', 11787:'and status for small business programs 19.308 2 sba will determine the merits of the status protest within 15 business', 11788:'days after receipt of a protest, or within any extension of that timegranted by the contracting officer. 3 if sba', 11789:'does not issue its determination within 15 business days, or within any extension of time granted, the contracting officermay award', 11790:'the contract afterdeterminingin writingthat there isan immediate need toaward the contract and that waiting until sba makes its determination will', 11791:'be disadvantageous to the government. this determination shall be provided to the sba director for government contracting and a copy', 11792:'shall be included in the contract file. i after sba decision. sba will notify the contractingofficer, the protester, and the', 11793:'protested concern of its determination. the determination is effective immediately and is finalunlessoverturned on appeal byoha pursuantto 13 cfr part', 11794:'134. 1 if the contracting officer has withheld contract award andsba has denied or dismissed the protest, the contracting officer', 11795:'may award the contract tothe protested concern. ifoha subsequentlyoverturns thesba directorforgovernment contracting’sdeterminationor dismissal, the contracting officer may apply the oha', 11796:'decision to the procurement inquestion. 2 if the contracting officer has withheld contract award, sba has sustainedthe protestanddetermined that the', 11797:'concern is not eligible under the wosb program, and nooha appeal has been filed, then thecontracting officer shall not award', 11798:'the contract to the protested concern. 3 if the contracting officer has made a writtendetermination in accordance with h1ii or', 11799:'h3 of this section, awarded the contract, and sba’s ruling isreceived after award,andno oha appeal has been filed, then ithe', 11800:'contracting officer shall terminate the contract, unless the contracting officer has made a written determination that termination isnot in the', 11801:'best interests of the government. however, the contracting officer shall not exercise any options or award further task or delivery', 11802:'orders; iithe contracting officer shall update thefpdsto reflect the final sba decision; and iii sba will remove the concerns designation', 11803:'in the dynamic small business search dsbs as an edwosb or wosbconcern eligible under the wosbprogram. the concern shall not', 11804:'submit an offer as anedwosb concern orwosb concern eligible under the wosb program, until sba issues a decision that the', 11805:'ineligibility is resolved. 4 if the contracting officer has made a writtendetermination in accordance with h1ii or h3 of this', 11806:'section, contract award has occurred, sba has sustained the protest and determined that the concern is not eligible under the', 11807:'wosb program,and a timely oha appeal has been filed, then the contracting officer shall consider whether performance can be suspended', 11808:'until an oha decision is rendered. 5 if oha affirmsthe sba director for government contracting’sdeterminationfinding theprotestedconcern is ineligible, then ithe', 11809:'contracting officer shall terminate the contract, unless the contracting officer has made a written determination that termination isnot in the', 11810:'best interests of the government. however, the contracting officer shall not exercise any options or award further task or delivery', 11811:'orders; iithe contracting officer shall update thefpdsto reflect oha’s decision; and iii sba will remove the concerns designation in dsbs', 11812:'as an edwosb or wosb concern eligible under the wosbprogram. the concernshallnot submit an offer as anedwosb concern orwosb concern', 11813:'eligibleunder thewosb program, until sba issues a decision that the ineligibility is resolved or oha finds the concern is eligible', 11814:'on appeal. j appeals of edwosb or wosb concerns eligible under the wosb program status determinations. 1 the protested edwosbconcern', 11815:'or wosbconcern eligible under the wosbprogram, the protester,or the contractingofficer may filean appeal of a wosb or edwosb status protest', 11816:'determination with oha. 2 oha must receive the appeal no later than 10 business days after the date of receipt', 11817:'of the protest determination. sba will dismiss an untimely appeal. 3 see subpart g rulesof practiceforappeals fromwomenownedsmallbusinessconcerns wosb and economically', 11818:'disadvantaged wosb concern edwosb protests at 13 cfr 134.701 through 134.715 for sba’s appeals regulations. k the appeal must be', 11819:'in writing. the appeal must identify the protest determination being appealed and must set forth a full and specific statement', 11820:'as to why the edwosb concern or wosb concern eligible under the wosb program protest determination isallegedto bebased on a', 11821:'clear error of fact or law,together with an argument supporting such allegation. l the party appealing the decision must provide', 11822:'notice of the appeal to 1 the contractingofficer; 2 director, office of government contracting, u.s. small businessadministration, byemail at wosbprotest@sba.gov', 11823:'; 3 the protested edwosb concern or wosb concern eligible under the wosb program, or the original protester, as appropriate;', 11824:'and federal acquisition regulation 4 sba’s office ofgeneral counsel, associate general counsel for procurement law, u.s. small business administration, 409', 11825:'thirdstreet, sw., washington,dc 20416, or emailat oplservice@sba.gov. m oha will make its decision within 15 business days of the receipt', 11826:'of the appeal, if practicable. sba will provide a copy of thedecision to the contracting officer, the protester, and theprotestededwosb', 11827:'concern orwosb concern eligible under the wosb program. the oha decision is the final agency decision and is binding on', 11828:'the parties. 19.309 solicitation provisions and contract clauses. a 1 insert the provision at 52.2191, small business program representations, in', 11829:'solicitations exceeding the micro purchase threshold when the contract is for supplies to be delivered or services to be performed', 11830:'in the united states or its outlyingareas, or whenthe contracting officerhas applied this partin accordance with 19.000b1ii. 2 use the', 11831:'provision with its alternate i in solicitations issued by dod, nasa, or the coast guard. 3 use the provision with', 11832:'its alternate ii in solicitations that will result in a multipleaward contract with more than one naics code assigned. this', 11833:'is authorized for solicitations issued after october 1, 2028 see 19.102b. b when contracting by sealed bidding, insert the provision', 11834:'at 52.2192, equal low bids, in solicitations when the contract is for supplies to be delivered or services to be', 11835:'performed in the united states or its outlying areas, or when the contracting officerhas applied this partin accordance with 19.000b1ii.', 11836:'c 1 insert the clause at 52.21928,postawardsmallbusinessprogramrerepresentation,insolicitationsandcontracts exceeding the micropurchase threshold when the contract is for supplies to be delivered', 11837:'or services to be performed in the unitedstates or its outlying areas, or when the contracting officer has applied this', 11838:'part in accordance with 19.000b1ii. 2 use the clause with its alternate i in solicitations and the resulting multipleaward contracts', 11839:'with more than one naics code. this is authorized for solicitations issued after october 1, 2028 see 19.102b. subpart 19.4', 11840:'cooperation with the small business administration 19.403 subpart 19.4 cooperation with the small business administration 19.401general. a the small business', 11841:'act is the authority under which the small business administration sba and agencies consult and cooperate with each other in', 11842:'formulating policies to ensure that small business interests will be recognized and protected. b the directorof the office of small', 11843:'anddisadvantaged business utilization servesas the agency focal point for interfacing with sba. the director ofthe office of small business programs', 11844:'isthe agency focal point for the department of defense. 19.402 smallbusiness administrationprocurement center representatives. a 1 the sba may assign', 11845:'one or more procurement center representatives pcrs to any contracting activity or contract administrationoffice tocarry out sbapolicies and programs. assigned', 11846:'sba pcrs are required to complywith the contracting agencys directives governing the conduct of contracting personnel and the release of', 11847:'contract information. the sba must obtainforits pcrssecurity clearances required bythe contracting agency. 2 if an sba pcr is not assigned', 11848:'tothe procuring activity or contract administration office, contact the sbaoffice of government contracting areaofficeservingthe area in which the procuring activity', 11849:'is located for assistance in carryingout sba policies and programs. see https://www.sba.gov/federalcontracting/counselinghelp/procurementcenterrepresentativedirectory for the location of thesba office servicing the', 11850:'activity. b upon their request and subject to applicable acquisition and security regulations, contracting officersshallgive sba pcrs or, if apcr', 11851:'is not assigned, see paragrapha of this sectionaccess to all reasonably obtainable contract information that is directly pertinent to theirofficial', 11852:'duties. c the duties assigned by sba to its pcr are set forth at 13 cfr 125.2b and include but', 11853:'are not limited to the following: 1 reviewing proposed acquisitions to recommend– i the setaside or solesource award to a', 11854:'small business of selected acquisitions; ii new qualified small business sources, including veteranowned small, servicedisabled veteranowned small, hubzone small, small', 11855:'disadvantaged, economically disadvantaged womenowned small, and womenowned small eligible underthe womenowned small business program; iii breakout of discrete components, items,', 11856:'and requirements for competitive acquisitions; and iv ways toimprove competition. 2 reviewing proposed acquisition packages provided in accordance with 19.2021e.', 11857:'if the sba procurement center representative or, if aprocurement center representative is not assigned, see paragraph a of this sectionbelieves', 11858:'that the acquisition, as proposed, makes it unlikely that small businesses can compete for the prime contract, the representative shall', 11859:'recommend any alternate contracting method that the representative reasonably believes will increase small business prime contracting opportunities. the recommendation shall', 11860:'be made to thecontracting officer within15 days after receiptof the package. 3 recommending concerns for inclusion on a list of', 11861:'concerns to be solicited in a specific acquisition. 4 appealing to the chief of the contracting office anycontracting officer’sdetermination not', 11862:'tosolicit a concern recommended by the sba for a particular acquisition, when not doing so results in no small business', 11863:'being solicited. 5 conducting periodic reviews of the contracting activity to which assigned to ascertain whether it is complying with', 11864:'the small business policies in this regulation. 6 sponsoring and participating in conferences and training designed to increase small business', 11865:'participation in the contracting activities of the office. 7 appealing acontracting officers rejection ofpcrs recommendation. suchappealmust be in writing and', 11866:'shall be filed and processed in accordance with the appeal procedures set out in 19.5028. 19.403[reserved]. this page intentionally left', 11867:'blank. 19.42 subpart 19.5 small business total setasides, partial setasides, and reserves 19.5022 subpart 19.5 small business total setasides, partial', 11868:'setasides, and reserves 19.501general. a 1 the purpose of small business setasides is to award certain acquisitions exclusively to small', 11869:'business concerns. a setaside for small business is the limiting of an acquisition exclusively for participation by small business concerns.', 11870:'a small business setaside may be open to any of the small business concerns identified at 19.000a3. a small business', 11871:'set aside of a single acquisition or a class of acquisitions may be total or partial. 2 the purpose of', 11872:'small business reserves is to award one or more multipleaward contracts to any of the small business concerns identified at', 11873:'19.000a3, under a full and open competition. a small business reserve shall not be used when the acquisition can be', 11874:'set aside, in total or in part. b the contractingofficer makes the determination to makea small business setaside, in totalor', 11875:'in part, or a reserve. the small business administration sba procurement center representativepcr or, if a pcr isnot assigned, see', 11876:'19.402a may make a recommendation to the contracting officer. c thecontracting officer shall review acquisitions to determine if they can', 11877:'beset aside,in total or inpart, or reserved for small business, giving consideration to the recommendations of agency personnel in the', 11878:'office ofsmallanddisadvantaged business utilization,or for the department of defense, in the office of small business programs. agencies mayestablish threshold levels', 11879:'for this review depending upon their needs. d at the request of ansba pcror, if apcr is not assigned, see', 11880:'19.402a, the contractingofficer shall make available for review at the contracting office to the extent of the sba representatives security', 11881:'clearance any proposed acquisition in excess of the micropurchase threshold. e all solicitations involving setasides, in total or in part,', 11882:'or reserves shall specify the naics codes and corresponding size standards see 19.102. f except as authorized bylaw, a contract', 11883:'may not beawarded asa result of a small business setaside if the cost to the awarding agency exceeds the fair', 11884:'market price. g for the applicability of the limitations on subcontracting and the nonmanufacturer rule, see 19.505. 19.502setting aside acquisitions.', 11885:'19.5021requirements forsetting asideacquisitions. a thecontracting officer shall set aside anindividual acquisition or class of acquisitionsforcompetition amongsmall businesses when 1 it', 11886:'is determined to be in the interest of maintaining or mobilizingthe nation’s fullproductive capacity, waror national defense programs; or 2', 11887:'assuring that a fair proportion of government contracts in each industry is placed with small business concerns; and the circumstances', 11888:'described in 19.5022 or 19.5023a exist. b the requirement in paragraph a of this section does not apply to purchases', 11889:'at or below the micropurchase threshold, or purchases from required sources under part 8e.g., committee for purchase from people who', 11890:'are blind or severely disabled. 19.5022total small business setasides. a before setting aside an acquisition under this paragraph, refer to', 11891:'19.203b. each acquisition of supplies or services that has an anticipated dollar value above the micropurchase threshold, but not over', 11892:'the simplified acquisition threshold, shall beset asideforsmall business unless the contractingofficer determines there is not a reasonable expectation ofobtaining offers', 11893:'from two or more responsible smallbusinessconcerns that are competitive interms offair market prices, quality, and delivery. ifthe contracting officer receives', 11894:'only one acceptable offer froma responsible smallbusinessconcern inresponse to a setaside, the contracting officer should make an award tothat firm.', 11895:'if the contracting officer receives no acceptable offers from responsiblesmallbusiness concerns, the setaside shall be withdrawn and the requirement,if still', 11896:'valid, shall be resolicited on an unrestricted basis. the small business setaside does not preclude the award of a contract', 11897:'as described in 19.203. b before setting aside an acquisition under this paragraph, refer to 19.203c. the contracting officer shall', 11898:'set aside any acquisition over the simplified acquisition threshold for small business participation when there is a reasonable expectation that', 11899:'1 offers will be obtained from at least two responsible small business concerns; and 19.5023 federal acquisition regulation 2 award', 11900:'will be made atfair market prices. total small business setasidesshallnot be made unless such areasonable expectation exists see 19.5023 for', 11901:'partial setasides. although past acquisition history and market research of an item or similar items are always important, these are', 11902:'not the only factors to be considered in determining whether a reasonable expectation exists. in making research and development small', 11903:'business setasides, there must also be a reasonable expectation of obtaining from small businesses the best scientific and technological sources', 11904:'consistent with the demands of the proposed acquisition for the best mix of cost, performances, and schedules. 19.5023 partial setasides', 11905:'of contracts other than multipleaward contracts. a thecontracting officer shall set aside a portion orportions ofan acquisition, except for construction,', 11906:'for exclusive small business participation when— 1 market research indicates that a total setaside is not appropriate see 19.5022; 2', 11907:'the requirement can be divided into distinct portions; 3 the acquisition is not subject to simplified acquisition procedures; 4 two', 11908:'or more responsible small business concerns are reasonably expectedto submitoffers on the setaside portion or portions of the acquisition thatare', 11909:'competitive in terms of fairmarketprices, quality, anddelivery; 5 the specific program eligibility requirements identified in this part apply; and 6', 11910:'the solicitation will result in a contract other than a multipleaward contract see 2.101 for definition of multiple award contract.', 11911:'b when the contractingofficer determines that a requirement is to be partially set aside, the solicitation shall identify which portion', 11912:'or portions are set aside and not set aside. c thecontracting officer shall specify in the solicitation how offers shall', 11913:'be submitted with regard to the setaside and nonsetaside portions. d offers received fromconcerns that do not qualify as small', 11914:'business concerns shall beconsidered nonresponsive and shall berejectedon the setaside portion of partial setasides. however, beforerejectingan offer otherwiseeligible for award', 11915:'because of questions concerning the size representation, an sba determination must be obtained see subpart 19.3. 19.5024 partial setasides of', 11916:'multipleaward contracts. a in accordance with section 1331 of the small business jobs act of 2010 15 u.s.c. 644r1, contracting', 11917:'officers may, attheir discretion, set aside a portion or portions of a multipleawardcontract, except for construction, for anyof the small', 11918:'business concerns identified at 19.000a3 when— 1 market research indicates that a total setaside is not appropriate see 19.5022; 2', 11919:'the requirement can be divided into distinct portions; 3 the acquisition is not subject to simplified acquisition procedures; 4 two', 11920:'or more responsible small business concerns are reasonably expectedto submitan offer on the setaside portionor portionsof the acquisition that are', 11921:'competitive in terms of fair market prices, quality, and delivery;and 5 the specific program eligibility requirements identified in this part', 11922:'apply. b when the contractingofficer determines that a requirement is to be partially set aside, the solicitation shall identify which', 11923:'portion or portions are set aside and not set aside. c thecontracting officer shall specify in the solicitation how offers', 11924:'shall be submitted with regard to the setaside and nonsetaside portions. d offers received fromconcerns that do not qualify as', 11925:'small business concerns shall beconsidered nonresponsive and shall berejectedon the setaside portion of partial setasides. however, beforerejectingan offer otherwiseeligible for', 11926:'award because of questions concerning the size representation, an sba determination must be obtained see subpart 19.3. 19.5025insufficient reasons for', 11927:'not settingaside an acquisition. none ofthe following is, initself,sufficient cause for not setting aside an acquisition: a a large percentage', 11928:'ofprevious contracts for the required items hasbeenplacedwith smallbusinessconcerns. b the item is onan establishedplanning list under the industrial readinessplanningprogram. however,a', 11929:'total small business setaside shall not be made when the list contains a large business planned emergency producer of the', 11930:'items who has conveyed a desire to supply some or all of the required items. c theitem ison aqualified products', 11931:'list. however, a total small business setaside shall notbe made if the list contains theproducts oflarge businessesunlessnone ofthe large businesses', 11932:'desire to participate in the acquisition. subpart 19.5 small business total setasides, partial setasides, and reserves 19.5028 d a period', 11933:'of lessthan 30 days is available for receipt of offers. e the acquisition is classified. f small business concerns are', 11934:'already receiving a fair proportion ofthe agency’s contracts for supplies and services. g a class small business setaside of theitem', 11935:'orservice has been made by anothercontracting activity. h a brand name or equal product description will be used in the', 11936:'solicitation. 19.5026 setting aside a class of acquisitions for small business. a a class of acquisitions of selected products or', 11937:'services, or a portion of the acquisitions, may be set aside for exclusive participation by small business concerns if individual', 11938:'acquisitions in the class will meet the criteria in 19.5021, 19.5022, or 19.5023a. the determination to make a class small', 11939:'business setaside shall not depend on the existence of a current acquisition if future acquisitions can be clearly foreseen. b', 11940:'the determination to set aside a class of acquisitions for small business may be either unilateral or joint. c each', 11941:'class small business setaside determination shall be in writing and must 1 specifically identify the products and services it covers;', 11942:'2 provide that the setaside does not apply to any acquisition automatically set aside under 19.5022a. 3 provide thatthe setaside', 11943:'applies onlyto the named contracting officesmaking thedetermination; and 4 provide that the setaside does not apply to any individual acquisition', 11944:'if the requirement is not severable into two or more economic production runs or reasonable lots, in the case of', 11945:'a partial class setaside. d the contractingofficer shall review each individual acquisition arising under aclass small business setaside to identify', 11946:'any changes in the magnitude of requirements, specifications, delivery requirements, or competitive market conditions that have occurred since the initial', 11947:'approval of the class setaside. if there are any changes of such a material nature as to result in probable', 11948:'payment of more than a fair market price by the government or in a change in the capability of small', 11949:'businessconcerns to satisfy therequirements, the contractingofficer may withdraw or modify see 19.5029a the unilateral or joint setaside by givingwritten notice', 11950:'to the sba pcr or, ifa pcris not assigned,see 19.402a stating the reasons. 19.5027 inclusion of federal prison industries, inc.', 11951:'when using competitive procedures in accordance with 8.602a4, agencies shall include federal prison industries, inc. fpi, in the solicitation process', 11952:'and consider a timely offer from fpi. 19.5028rejecting small businessadministration recommendations. a if the contracting officerrejectsa recommendationof the sba, writtennotice', 11953:'shall be furnishedto theappropriate sba representativewithin 5working daysof the contractingofficers receipt ofthe recommendation. b the sba pcr or, ifa pcr', 11954:'is not assigned, see 19.402a may appeal the contractingofficers rejection to the head of the contracting activity within 2 working', 11955:'days after receiving the notice except see 19.1305d, 19.1405e, and 19.1505i. the head of the contracting activity shall render a', 11956:'decision in writing, and provide it to the sba representative within 7 workingdays. pending issuanceof adecision to the sba representative,', 11957:'the contracting officer shall suspend actionon the acquisition. c if the head of the contracting activityagrees thatthe contracting officer’s rejection', 11958:'was appropriate 1 within 2 working days, thesba procurement center representative or, if aprocurement center representative is not assigned, see', 11959:'19.402a may request the contracting officer to suspend action on the acquisition until the sbaadministrator appeals to the agency head', 11960:'see paragraph f of this section; and 2 the sba must be allowed 15 working days after making such a', 11961:'written request, within which the administrator of sba– i may appeal to the secretary of the department concerned; and iimust', 11962:'notify the contracting officer whether the further appeal has, infact, been taken. if notificationis not received by the contracting officer', 11963:'within the 15day period,itis deemedthat thesba request to suspendthe contract action has been withdrawn and that an appeal to the', 11964:'secretary was not taken. d when the contractingofficer hasbeennotified within the 15dayperiod that the sba has appealed to theagency head,', 11965:'the head of the contracting activity or designee shall forward justification for its decision to the agency head. the contracting', 11966:'officershallsuspend contractaction until notification is received that the sbaappealhas been settled. e the agency head shall reply to the sba', 11967:'within 30 working days after receiving the appeal. the decision of the agency head shall be final. 19.5029 federal acquisition', 11968:'regulation f a request to suspend action onan acquisition need not be honoredif the contracting officer determines that proceeding to', 11969:'contractaward and performance is in the public interest. thecontracting officer shall include in the contract file a statement of the', 11970:'facts justifying the determination, and shall promptly notify the sba representative of the determination and provide a copy of the', 11971:'justification. 19.5029withdrawingor modifying small business setasides. a if,before award ofa contract involving a totalor partial small business setaside, the contracting', 11972:'officer considers that award would be detrimentalto the publicinterest e.g., paymentof more than afair market price,the contracting officermay withdraw the', 11973:'small business setaside, whether it was unilateral orjoint. the contracting officer shall initiate a withdrawal of an individual total or', 11974:'partial small business setaside, by giving written notice to the agency small business specialist and the sba pcr or,if a', 11975:'pcr isnot assigned, see 19.402a stating the reasons. in a similar manner, thecontracting officer may modify a unilateral or joint', 11976:'class small business setaside to withdraw one or more individual acquisitions. b if the agency small business specialist does not', 11977:'agree to a withdrawal or modification, the case shall be promptly referred to the sba pcr or, ifa pcris not', 11978:'assigned,see 19.402a for review. c thecontracting officer shall prepare a written statement supportingany withdrawal or modification of a smallbusiness setaside', 11979:'and include it in the contract file. 19.50210 automatic dissolution of a small business setaside. a if a small business', 11980:'setaside acquisition or portion of an acquisition is not awarded, the unilateral or joint determination to set the acquisition aside', 11981:'is automatically dissolved for the unawarded portion of the setaside. the required supplies and/or services for which no award was', 11982:'made may be acquired by sealed bidding or negotiation, as appropriate. b before issuing a solicitation for the items called', 11983:'for in a small business setaside that was dissolved, the contracting officer shall ensure that thedelivery schedule isrealisticin the light', 11984:'of all relevant factors, includingthe capabilities of small business concerns. 19.50211solicitation notice regarding administrationof change orders forconstruction. see 36.211 for', 11985:'therequirementto provide a notice to offerors regarding definitization ofequitable adjustments for change orders under construction contracts. 19.503reserves. a in accordance', 11986:'with section 1331 of the small business jobs act of 2010 15 u.s.c. 644r3 and 13 cfr 125.2e4, contracting officers', 11987:'may,at their discretion when conducting multipleaward procurements usingfull and open competition, reserve one or more contract awards for any of', 11988:'the small business concerns identified in 19.000a3, when market research indicates— 1 a total setaside is not feasible because there', 11989:'is no reasonableexpectation of receiving offers that are competitive in terms of fair market prices, quality, and delivery from atleast', 11990:'tworesponsiblesmall business concernsidentified in 19.000a 3, that can perform the entire requirement; and 2 a partial setaside is not feasible', 11991:'because— ithe contracting officer isunable to divide the requirement intodistinct portions; or ii there is no reasonable expectation that at', 11992:'least two responsible small business concerns identified in 19.000a 3 can performanyportion of the requirement competitively in termsof fair market', 11993:'price, quality,anddelivery. b a reserve will result in one of the following: 1 one or more contract awards to any', 11994:'one or more types of small business concerns identified in 19.000a3. 2 in the case of a solicitation of a', 11995:'bundled requirement that will result in a multipleaward contract, an award to one or more small businesseswith a small business', 11996:'teaming arrangement. c thespecific program eligibilityrequirements identified in this partapply. d the limitations on subcontracting and the nonmanufacturer rule see', 11997:'19.505 do not apply to reserves at the contract level, but shall apply to orders that are set aside or', 11998:'issued directly to one small business concern under 19.504c1ii. 19.504orders under multipleaward contracts. a general. in accordance with section 1331', 11999:'of the small business jobs act of 2010 15 u.s.c. 644r2, contracting officers may, at theirdiscretion, set asideordersplacedunder multipleaward contractsforany', 12000:'of the smallbusinessconcerns identified in 19.000a3. subpart 19.5 small business total setasides, partial setasides, and reserves 19.505 1 the contractingofficer', 12001:'shall state inthe solicitation and resulting contract whether order setasides will be discretionary or mandatory when the conditions in 19.5022', 12002:'are met at the time of order setaside, and the specific program eligibility requirements, as applicable, are also then met.', 12003:'2 when settingaside an order at or below the simplifiedacquisition threshold, the contracting officer may setaside the order for any', 12004:'of the small business concerns identified in 19.000a3. 3 when settingaside an order above thesimplified acquisition threshold,the contracting officer shall', 12005:'first consider setting aside the order for the small business socioeconomic contracting programs i.e., 8a, hubzone, servicedisabled veteranowned small business,', 12006:'and womenowned small business before considering a small business setaside. 4 the contractingofficer shall comply with the specific program eligibilityrequirements', 12007:'identified in this part in addition to the ordering procedures for a multipleaward contract for orders placed under the federal', 12008:'supply schedules program, see 8.4055; for orders placed under all other multipleaward contracts, see 16.505. b orders under setaside contracts—', 12009:'1 orders under total setaside contracts. under a total small business setaside, contracting officers may at their discretion setaside orders', 12010:'for anyof the small business socioeconomicconcerns identified in 19.000a3 provided that the requirements at paragraph a of this section, 19.5022b,', 12011:'and the specific program eligibility requirements are met. 2 orders under partial setaside contracts. i only small business concerns awarded', 12012:'contracts for the portions that were set aside under the solicitation for the multipleaward contract may compete for orders issued', 12013:'under those portions. ii small business awardees may compete against other than small business awardees for an order issued under', 12014:'the portion of the multipleaward contract that was not set aside, if the small business received a contract award for', 12015:'the nonsetaside portion. c orders under reserves. 1 the contractingofficer may— i set aside orders for any of the small', 12016:'business concerns identified in 19.000a3 when there are two or more contract awards for that type of small business concern;', 12017:'or ii issue orders directly to one small business concern for work that it can perform when there is only', 12018:'one contract award to any one type of small business concern identified in 19.000a3. 2 small business awardees may compete', 12019:'against other than small business awardees for an order that is not set aside if the small business received a', 12020:'contract award for the supplies or services being ordered. 19.505 limitations onsubcontracting andnonmanufacturer rule. a applicability. 1 this section applies', 12021:'to small business setasides above the simplified acquisition threshold and orders issued directly to a small business in accordance with', 12022:'19.504c1ii above the simplified acquisition threshold. 2 this section applies, regardless of dollar value, to the following awards under subparts', 12023:'19.8, 19.13, 19.14, and 19.15: i contracts that are set aside. ii contracts that are awarded on a solesource basis.', 12024:'iii orders that are setaside as described in 8.4055 and 16.505b2if. iv orders that are issued directly in accordance with', 12025:'19.504c1ii. v contracts that use the hubzone price evaluation preference to award to a hubzone small business concern unless the', 12026:'concern waived the evaluation preference. b 1 limitations on subcontracting. a small business concern subject to the limitations on subcontracting', 12027:'is required to comply with the following: i for a contract or order assigned a north american industry classification system', 12028:'naics code for services except construction, the concern will not pay more than 50 percent of the amount paid by', 12029:'the government for contract performance to subcontractors that are not similarly situated entities. any work that a similarly situated entity', 12030:'further subcontracts will count towards the concerns 50 percent subcontract amount that cannot be exceeded. when a contract includes both', 12031:'services and supplies, the 50 percent limitation shall apply only to the service portion of the contract. ii for a', 12032:'contract or order assigned a naics code for supplies or products other than a procurement from a nonmanufacturer of such', 12033:'supplies or products, the concern will not pay more than 50 percent of the amount paid by the government for', 12034:'contract performance, excluding the cost of materials, to subcontractors that are not similarly situated entities. any work that a similarly', 12035:'situated entity further subcontracts will count towards the concerns 50 percent subcontract amount that cannot be exceeded. when a contract', 12036:'includes both supplies and services, the 50 percent limitation shall apply only to the supply portion of the contract. federal', 12037:'acquisition regulation iii for a contract or order assigned a naics code for general construction, the concern will not pay', 12038:'more than 85 percent of the amount paid by the government for contract performance, excluding the cost of materials, to', 12039:'subcontractors that are not similarly situated entities. any work that a similarly situated entity further subcontracts will count towards the', 12040:'concerns 85 percent subcontract amount that cannot be exceeded. iv for a contract or order assigned a naics code for', 12041:'construction by special trade contractors, the concern will not pay more than 75 percent of the amount paid by the', 12042:'government for contract performance, excluding the cost of materials, to subcontractors that are not similarly situated entities. any work that', 12043:'a similarly situated entity further subcontracts will count towardsthe concern’s 75 percent subcontractamount that cannot be exceeded. 2 compliance period.', 12044:'a small business contractor subject to the limitations on subcontracting is required to comply with the limitations on subcontracting— i', 12045:'for a contract that has been set aside, either by the end of the base term and then by the', 12046:'end of each subsequent option period, or bythe end of the performance period for each order issued under the contract,at', 12047:'the contracting officers discretion; and ii for an order set aside under a contract as described in 19.504a, b, or', 12048:'c1i or an order issued in accordance with 19.504c1ii, by the end of theperformance periodforthe order. c nonmanufacturer rule. the', 12049:'nonmanufacturer rule applies to nonmanufacturers in accordance with paragraph c1 of this section and to kit assemblers who are nonmanufacturers', 12050:'in accordance with paragraph c2 of this section. 1 nonmanufacturers. anyconcern, including a supplier, that is awarded a contract or', 12051:'ordersubject to the nonmanufacturer rule, other than a construction or service acquisition, but proposes to furnish an end item that', 12052:'it did not itself manufacture, process, or produce i.e., a “nonmanufacturer”, is required to— i provide an end item that', 12053:'a small business has manufactured, processed, or produced in the united states or its outlying areas see paragraph c3 of', 12054:'this section for determining the manufacturer of an end item; ii not exceed 500 employees, or 150 employees for information', 12055:'technology valueadded resellers under naics code 541519; iii be primarily engaged in the retail or wholesale trade and normally sell', 12056:'the type of item being supplied; and iv takeownership or possession of theitems with its personnel, equipment, or facilities in', 12057:'a manner consistent with industry practice; for example,providing storage, transportation, or delivery. 2 kit assemblers. when the end item being', 12058:'acquired is a kit of supplies— ithe offeror maynot exceed500 employees, or 150 employees for information technology valueadded resellers under', 12059:'naics code 541519; and ii at least 50 percent of the total cost of the components of the kit shall', 12060:'be manufactured, processed, or produced in the united states or its outlying areas by business concerns that are small under', 12061:'the size standards for the naics codes of the components of the kit. 3 identification of manufacturers. for the purposes', 12062:'ofapplying the nonmanufacturer rule, themanufacturer, processor,or producer is theconcern that manufactures,processes, orproduces an enditem with its own facilities i.e., transforms', 12063:'raw materials, miscellaneous parts, or components into the end item being acquired. see 13 cfr 121.406b2. 4 waiver of nonmanufacturer', 12064:'rule. i the sba may grant an individual or a class waiver to the nonmanufacturer rule to allow a nonmanufacturer', 12065:'to provide an end item of an other than small business without regard to the place of manufacture, processing, or', 12066:'production. a class waiver. an agency may request that sba waive the requirement at paragraph c1i or c2ii of this', 12067:'section for a specific product or class of products. see 13 cfr 121.1202 for an explanation of when sba will', 12068:'issue a class waiver. b individual waiver. the contractingofficer may also request a waiver of the requirements at paragraph c1i', 12069:'or c2ii of this section for an individual acquisition once the contracting officer determines through market research that no known', 12070:'small business manufacturers, processors, or producers in the united states or its outlying areas can reasonably beexpected to offer an', 12071:'end item meeting the requirements of thesolicitation. this type of waiveris knownas an individual waiver and would apply only to', 12072:'a specific acquisition. ii waiver requests. requests for waivers shall include the content specified at 13 cfr 121.1204 and shall', 12073:'be sent via email to nmrwaivers@sba.gov or bymail to the—director, office ofgovernment contracting, small business administration, 409 thirdstreet sw, washington,', 12074:'dc 20416. iii list of class waivers. forthe most current listing ofclass waivers, contact the sba office of government contracting', 12075:'or go to https://www.sba.gov/document/supportnonmanufacturerruleclasswaiverlist. subpart 19.5 small business total setasides, partial setasides, and reserves 19.507 iv notification of waiver. the', 12076:'contracting officer shall provide potential offerors with writtennotification of any class or individual waiver in the solicitation. ifproviding the notification', 12077:'aftersolicitation issuance, the contractingofficer shall provide potential offerors a reasonable amount of additional time torespond to the solicitation. 5 multipleitem', 12078:'acquisitions. i if at least 50 percent of the estimated contract value is composed of items that are manufactured, processed,', 12079:'or produced by small business concerns, then a waiver of the nonmanufacturer rule is not required. there is no requirement', 12080:'that each item acquired in a multipleitem acquisition be manufactured, processed, or produced by a small business in the united', 12081:'states or its outlying areas. ii if more than 50 percent of the estimated acquisition cost is composed of items', 12082:'manufactured, processed, or produced by other than small business concerns, then a waiver is required. sba may grant an individual', 12083:'waiver for one or more items in an acquisition in order to ensure that at least 50 percent of the', 12084:'cost of the items to be supplied by the nonmanufacturer comes from small business manufacturers, processors, and producers in the', 12085:'united states or its outlying areas or aresubject to a waiver. iii if a small business offeroris both amanufacturer of', 12086:'items and a nonmanufacturer ofotheritems for an acquisition, thecontracting officer shall apply the manufacturer size standard. 19.506 documentation requirements. a', 12087:'1thecontractingofficershalldocumenttherationalewhenacontractisnottotallysetasideforsmallbusinessin accordance with 19.5022. 2 the contractingofficer shall document the rationale whena multipleaward contractis not partially set aside, not reserved,', 12088:'and does not allow for setting aside of orders, when these authorities could have been used. b if applicable, the', 12089:'documentation shall include the rationale for not accepting the recommendations made by the agency director ofthe office of small and', 12090:'disadvantaged business utilization, or, for thedepartment ofdefense, the directorof the office of small business programs, or the directors designee, asto', 12091:'whether a particularacquisitionshouldbe awarded under subparts 19.5, 19.8, 19.13, 19.14, or 19.15. c documentation is not required if a contract', 12092:'award is anticipated to a small business under subpart 19.5, 19.8, 19.13, 19.14, or 19.15. 19.507 solicitation provisions and contract', 12093:'clauses. a [reserved] b [reserved] c thecontracting officer shall insert the clause at 52.2196, notice of total small businesssetaside,in solicitations', 12094:'and contracts involving total small business setasides. this includes multipleaward contracts when orders may be set aside for any of', 12095:'the small business concerns identified in 19.000a3, as described in 8.4055 and 16.505b2if. use the clause at 52.2196 with its', 12096:'alternate i when including fpi in the competition in accordance with 19.5027. d the contractingofficer shall insertthe clause at 52.2197,', 12097:'notice of partial small business setaside, in solicitations and contracts involving partial small business setasides. this includes part or parts', 12098:'of multipleaward contracts, including those described in 38.101. use the clause at 52.2197 with its alternate i when including fpi', 12099:'in the competition in accordance with 19.5027. e thecontracting officer shall insert the clause at 52.21914, limitations on subcontracting, in', 12100:'solicitations and contracts— 1 for supplies, services, and construction, if any portion of the requirement is to be set aside', 12101:'for small business and the contract amount is expected to exceed the simplified acquisition threshold, and in any solicitations and', 12102:'contracts that are set aside or awarded on a solesource basis in accordance with subparts 19.8, 19.13, 19.14, or 19.15,', 12103:'regardless of dollar value. this includes multipleaward contracts when orders may be set aside for small business concerns, as described', 12104:'in 8.4055 and 16.505b2if, and when orders may be issued directly to a small business concern as described in 19.504c', 12105:'1ii. for contracts that are set aside, the contracting officer shall indicate in paragraph f of theclause whether compliance with', 12106:'the limitations on subcontracting is required at the contract or order level; 2 using the hubzone price evaluation preference. however,', 12107:'if the prospective contractor waived the useof the price evaluation preference, or is an other than small business, do not', 12108:'insert the clause in the resultant contract. f 1thecontractingofficershallinserttheclauseat 52.21913, notice of setaside of orders, in all solicitations for multipleaward', 12109:'contracts under which orders may be set aside for any of the small business concerns identified in 19.000a 3, and', 12110:'all contracts awarded from such solicitations. federal acquisition regulation 2 the contractingofficer shall insertthe clause at 52.21913 with its alternate', 12111:'i in all full and open solicitations and contracts for multipleaward contracts under which orders will be set aside for', 12112:'any of the small business concerns identified in 19.000a3 if the conditions in 19.5022 are met at the time of', 12113:'order setaside, and the specific program eligibility requirements, as applicable, are also then met. g 1thecontractingofficershallinserttheprovisionat 52.21931, notice of small', 12114:'business reserve, in solicitations for multipleaward contracts that have reserves. 2 the contractingofficer shall insertthe clause at 52.21932 orders issued', 12115:'directly under small business reserves, in solicitations and the resulting multipleaward contracts that have reserves. h 1thecontractingofficershallinserttheclauseat 52.21933, nonmanufacturer rule,', 12116:'in solicitations and contracts, including multipleaward contracts, when orders may be set aside for small business concerns as described in', 12117:'8.4055 and 16.505b2if, and when orders may be issued directly to a small business concern as described in 19.504c1ii, when—', 12118:'i the item being acquired has been assigned a manufacturing or supply naics code, and– ii a any portion of', 12119:'the requirement is to be– 1 set aside for small business and is expected to exceed the simplified acquisition threshold;', 12120:'or 2 set aside or awarded on a solesource basis in accordance with subparts 19.8, 19.13, 19.14, or 19.15, regardless', 12121:'of dollar value; or b using the hubzone price evaluation preference. however, ifthe prospectivecontractor waived theuse of the price evaluation', 12122:'preference, or is an other than small business, do not insert the clause in the resultant contract. 2 the contractingofficer', 12123:'shall not insert the clause at 52.21933 when the small business administration has waived the nonmanufacturer rule see 19.505c4. subpart', 12124:'19.6 certificates of competency and determinations of responsibility 19.6021 subpart 19.6 certificates of competency and determinations of responsibility 19.601general. a', 12125:'a certificate of competency coc is the certificate issued by the small business administration sba stating that theholder isresponsiblewith respect', 12126:'to all elements of responsibility,including, but not limited to, capability,competency, capacity,credit, integrity, perseverance, tenacity, and limitationson subcontractingforthe purposeof receiving and', 12127:'performing a specific government contract. b the coc program empowers the sba to certify to government contracting officers as toallelements', 12128:'of responsibility of any small business concern to receive and perform a specific government contract. the coc program does not', 12129:'extend to questions concerning regulatory requirements imposed and enforced by other federal agencies. c the coc program is applicable to', 12130:'all government acquisitions except for 8a solesource awards. a contracting officer shall, upondetermining an apparentsuccessfulsmallbusiness offeror to be nonresponsible, refer', 12131:'that small business to thesba for a possible coc, even if the next acceptable offer is from a small business.', 12132:'d when asolicitation requires a small business toadhere to the limitations on subcontracting, a contracting officer’s finding that a small', 12133:'business cannot comply with the limitation shall be treated as an element of responsibility and shall be subject to the', 12134:'coc process. when asolicitation requires a small business to adhere to the definition of a nonmanufacturer, a contracting officer’s determination', 12135:'thatthe small business does not complyshallbe processed in accordance with subpart 19.3. e contracting officers,including thoselocatedoverseas, are requiredto comply withthis', 12136:'subpart for u.s. small business concerns. f for the purpose of receiving a coc on an unrestricted acquisition, a small', 12137:'business nonmanufacturer may furnish any end item produced or manufactured in the united states or its outlying areas. 19.602 procedures.', 12138:'19.6021 referral. a upon determining anddocumenting that an apparentsuccessfulsmallbusiness offeror lacks certain elements of responsibility including, but notlimited to,capability, competency,', 12139:'capacity, credit, integrity, perseverance, tenacity, and limitations on subcontracting, but for sureties see 28.1013f and 28.2031e, the contracting officer shall', 12140:'1 withhold contract award see 19.6023; and 2 refer the matterto the cognizant sba government contracting area office area office', 12141:'serving the area in which theheadquarters of theofferor is located, in accordance with agency procedures, except that referral is not', 12142:'necessary if the small business concern i is determined to be unqualified and ineligible because it does not meet the', 12143:'standard in 9.1041g, provided, that thedetermination is approved by the chiefof the contractingoffice; or iiissuspendedordebarredunderexecutiveorder11246or subpart 9.4. b if a', 12144:'partialsetasideis involved, the contracting officer shall refer to the sba the entire quantity to which theconcern may be entitled, if', 12145:'responsible. c the referral shall include 1 a notice that a small business concern has been determined to be nonresponsible,', 12146:'specifying the elements of responsibility the contracting officer found lacking; and 2 if applicable, a copy of the following: i', 12147:'solicitation. iifinaloffer submitted by theconcern whoseresponsibilityis at issue for theprocurement. iii abstractof bids or the contracting officer’s price negotiation memorandum.', 12148:'iv preaward survey. v technical datapackage including drawings, specificationsand statement ofwork. vi any other justification and documentation used to arrive', 12149:'at the nonresponsibility determination. d for any single acquisition, the contracting officer shall make only one referral at atime regarding', 12150:'a determination of nonresponsibility. e contract award shall be withheldby the contractingofficer for a period of 15 businessdays or longerif', 12151:'agreed to by the sbaand the contracting officer following receipt by the appropriate sbaarea office of a referral that includesall', 12152:'required documentation. 19.6022 federal acquisition regulation 19.6022 issuing or denying a certificate of competency coc. within 15 business daysora longer', 12153:'period agreed to by the sba and the contracting agency afterreceiving a notice that a small business concern lacks certain', 12154:'elements of responsibility, the sba area officewill take the following actions: a informthe small business concernof the contractingofficer’s determination andoffer', 12155:'it an opportunityto apply tothe sba for a coc. a concernwishing to applyfora coc should notify thesba area office serving', 12156:'the geographical areain which the headquarters of the offeror is located. b upon timelyreceipt of a completeandacceptable application, electto visit', 12157:'the applicant’s facility to reviewits responsibility. 1 the coc review process isnot limited to the areas of nonresponsibilitycited by the', 12158:'contracting officer. 2 the sba may, at its discretion, independentlyevaluatethe coc applicant for all elements ofresponsibility, but may presume responsibility', 12159:'exists as to elements other than those cited as deficient. c consider denying a coc for reasons ofnonresponsibility not originally', 12160:'cited by thecontracting officer. d when the area director determines that a coc is warranted for contracts valued at $25,000,000', 12161:'or less, notify the contracting officerandprovide the following options: 1 acceptthe area director’sdecision to issue a coc andaward the contract', 12162:'to the concern. thecocissuance letter will then be sent, including as an attachment a detailed rationale for the decision; or', 12163:'2 ask the area director to suspend the case for one or more of the following purposes: ito permit the', 12164:'sbato forwarda detailedrationale for the decision to the contractingofficer for review withina specified period of time. iito afford thecontracting officer', 12165:'the opportunity tomeet with the area office to review all documentation contained in the case file and to attempt to', 12166:'resolve any issues. iii to submit any information to the sba area office that the contractingofficer believes the sbadid not', 12167:'consider atwhich time, the sba area office willestablisha new suspense date mutually agreeableto the contracting officer and the sba. iv', 12168:'to permit resolution of an appeal bythe contracting agency to sba headquarters under 19.6023. however, there isno contracting officer’s appeal', 12169:'when thearea office proposes to issue a coc valuedat $100,000 or less. e at the completion ofthe process, notify the', 12170:'concern and thecontracting officer thatthe coc is denied or is being issued. f refer recommendations for issuing a coc on', 12171:'contracts greater than $25,000,000 to sba headquarters. 19.6023resolving differences between the agency and the small businessadministration. a cocs valued between', 12172:'$100,000 and $25,000,000. 1 when disagreements arise about aconcern’sability toperform, thecontracting officer and thesba shall makeevery effortto reach a resolution', 12173:'before the sbatakes final action on a coc. this shall be done through the complete exchange of information and in', 12174:'accordance with agency procedures. if agreement cannot be reached between thecontracting officer and thesba area office, the contracting officershallrequest that', 12175:'the area office suspend action andrefer the matter to sba headquarters for review. the sba area office shall honor therequest', 12176:'for a review if the contractingofficer agrees to withhold award until the review process is concluded. without an agreement to', 12177:'withhold award, thesba area office will issuethe coc inaccordance withapplicable sba regulations. 2 sba headquarterswill furnish written notice to theprocuring', 12178:'agency’s directorof the, office of small and disadvantaged businessutilization osdbu or, for the department of defense,the director ofthe office of', 12179:'small business programs, or other designated officialwith a copyto the contracting officer that the case filehas been received and that', 12180:'an appeal decision maybe requested by an authorizedofficial. 3 if the contracting agency decides to file an appeal, it must', 12181:'notify sba headquarters through its procuring agency’s director, osdbu, or other designated official, within 10 business daysora time periodagreed upon', 12182:'by both agencies that it intends to appeal the issuance of the coc. 4 the appeal and anysupporting documentation shall', 12183:'be filed by the procuring agency’sdirector, osdbu, or other designated official, within 10 business days or a period agreed upon', 12184:'by both agencies aftersba headquarters receivesthe agency’s notification in accordance with paragraph a3 of this subsection. 5 the sba associate', 12185:'administrator for government contracting will make a final determination, in writing, to issue or to deny the coc. b sba', 12186:'headquarters’ decisions on cocs valued over $25,000,000. 1 prior to taking final action, sba headquarters will contact the contracting agency', 12187:'and offer it thefollowing options: subpart 19.6 certificates of competency and determinations of responsibility 19.6024 ito request that the sba', 12188:'suspendcaseprocessingto allow the agency tomeet with sba headquarters personnel and review all documentation contained in the case file; or iito', 12189:'submit to sba headquarters for evaluation any information that the contractingagency believes hasnot been considered. 2 after reviewing all available', 12190:'information, the sba will make a final decision to either issue or deny the coc. c reconsideration of a coc', 12191:'after issuance. 1 the sba reserves the right to reconsider its issuance of a coc, prior to contract award, if', 12192:'i the coc applicant submitted false information or omitted materially adverse information; or iithe coc has been issued for morethan', 12193:'60 days in which case thesba mayinvestigate the firm’s current circumstances. 2 when the sba reconsiders and reaffirmsthe coc, the', 12194:'proceduresin subsection 19.6022 do not apply. 3 denial of a coc by the sba does not preclude a contracting officerfrom', 12195:'awarding a contractto the referred concern, nor does it prevent the concern from making an offer on any other procurement.', 12196:'19.6024awardingthe contract. a if new information causes the contracting officer to determine that the concern referred tothe sba is actually', 12197:'responsible to perform the contract, and award has not already been made under paragraph c of this subsection, the contracting', 12198:'officershallreverse the determination ofnonresponsibility, notify the sba of thisaction,withdraw the referral, and proceed to award the contract. b the contractingofficer', 12199:'shall award thecontract to the concern in question if thesba issues a coc after receivingthe referral. an sbacertified concern shall', 12200:'notbe required to meet any other requirements of responsibility. sba coc’s are conclusive with respect to all elements of responsibility', 12201:'of prospective small business contractors. where sba issues a coc, thecontracting officer may decide not to award to that offeror', 12202:'for reasonsunrelated to responsibility. c thecontracting officer shall proceed with the acquisition and award thecontract to anotherappropriately selected and responsible', 12203:'offeror if the sba hasnot issued acocwithin 15 business days or a longer period of time agreed to with the', 12204:'sba after receiving the referral. this page intentionally left blank. 19.64 subpart 19.7 the small business subcontracting program 19.702 subpart', 12205:'19.7 the small business subcontracting program 19.701definitions. as used in this subpart alaska native corporation anc meansanyregional corporation, village corporation,', 12206:'urban corporation, or group corporation organized under the laws ofthe state ofalaskain accordance with thealaskanative claims settlement act, as amended', 12207:'43 u.s.c. 1601, et seq. and which is considered a minority and economically disadvantaged concern under the criteria at 43', 12208:'u.s.c. 1626e1. this definition also includes anc direct and indirect subsidiary corporations, joint ventures, and partnerships that meet the requirements', 12209:'of 43 u.s.c. 1626e2. commercial plan means asubcontractingplan including goals that covers the offeror’s fiscal year and that applies to', 12210:'the entire production of commercial products and performance of commercial services sold by either the entire company or a portion', 12211:'thereof e.g., division, plant, or product line. electronic subcontracting reporting system esrs means the governmentwide, electronic, webbased system for small', 12212:'business subcontracting program reporting. failure to make a good faith effort to comply with the subcontracting plan means willful or', 12213:'intentional failure to perform in accordance with the requirements of the subcontracting plan, or willful or intentional action to frustrate', 12214:'the plan. indian tribe means any indiantribe, band, group, pueblo, or community,including native villages and native groups including corporations organized', 12215:'by kenai, juneau, sitka, and kodiak as definedin the alaska native claims settlement act 43 u.s.c.a. 1601 et seq., that', 12216:'is recognized by the federal government as eligible for services from the bureau of indian affairs in accordancewith 25 u.s.c.', 12217:'1452c. this definition also includes indianowned economic enterprises that meet the requirements of 25 u.s.c. 1452e. individual subcontracting plan means', 12218:'a subcontracting plan that covers the entire contract period including option periods, applies to aspecific contract, and has goals that', 12219:'are based on the offeror’s planned subcontracting in support of the specific contract, except that indirect costs incurred for common', 12220:'or joint purposes may be allocated on a prorated basis to the contract. master subcontracting plan means a subcontracting plan', 12221:'that contains all the required elements of an individual subcontracting plan, except goals, and may be incorporated into individual subcontracting', 12222:'plans, provided the master subcontracting plan has been approved. reduced payment means a payment that is for less than the', 12223:'amount agreed upon in a subcontract in accordance with its terms and conditions,forsupplies and services for whichthe government has paid', 12224:'the prime contractor. subcontract means any agreement other than one involving an employeremployee relationship entered into by a government prime', 12225:'contractor or subcontractor calling for supplies and/or services required for performance of the contract, contract modification, or subcontract. total contract', 12226:'dollars means the final anticipated dollar value, including the dollar value of all options. untimely payment means a payment to', 12227:'a subcontractor that is more than 90 days past due under the terms and conditions of a subcontract for supplies', 12228:'andservices for which the government has paid the prime contractor. 19.702 statutory requirements. any contractor receiving a contract with a', 12229:'value greater than the simplified acquisition threshold must agree in the contract that small business, veteranowned small business vosb, servicedisabled', 12230:'veteranowned small business sdvosb, hubzone small business, small disadvantaged business sdb, and womenowned small business wosb concerns will have themaximum', 12231:'practicable opportunity to participate in contract performance consistent with its efficient performance. it is further the policy of the united', 12232:'states that its prime contractors establish procedures to ensure the timely payment of amounts due pursuant to the terms of', 12233:'their subcontracts with small business, vosb concerns, sdvosb concerns, hubzone small business concerns, sdb concerns, and wosb concerns. a 1', 12234:'except as stated in paragraph b of this section, section 8d of the small business act 15 u.s.c. 637 d', 12235:'imposes the following requirements regarding subcontracting with small businesses and small business subcontracting plans: iin negotiated acquisitions,each solicitation of offers', 12236:'to perform a contractthat is expected toexceed $750,000 $1.5million for construction and thathas subcontracting possibilities, shall require the apparently successful', 12237:'offeror to submit anacceptable subcontracting plan. if the apparently successful offeror fails to negotiatea subcontracting plan acceptable tothe contracting officer', 12238:'within thetime limit prescribed by the contractingofficer, the offeror willbe ineligible for award. for a multipleaward contract with more than', 12239:'one north american industry classification system naics code, see paragraph a2i of this section. federal acquisition regulation ii in sealed', 12240:'bidding acquisitions, each invitation for bids to perform a contract that is expected to exceed $750,000 $1.5 million for construction', 12241:'and that has subcontracting possibilities, shall require the bidder selected for award to submit a subcontracting plan. if the selected', 12242:'bidder fails to submit a plan within the time limit prescribedby the contractingofficer, the bidder will be ineligible for award.', 12243:'for a multipleaward contract with more than one naics code, see paragraph a2i of this section. iii each contract modification', 12244:'that causes the value of a contract without a subcontracting plan to exceed $750,000 $1.5 million for construction, shall require', 12245:'the contractor to submit a subcontracting plan for the contract, if the contracting officer determines that subcontracting opportunities exist. fora', 12246:'multipleawardcontract with more than one naics code, see paragraph a2ii of this section. 2 i for a multipleaward contract with', 12247:'more than one naics code, the solicitation referenced in paragraphs a 1i and ii ofthissection shall require the apparently successful', 12248:'offeror tosubmit anacceptable subcontracting planfor either the distinct portions or categoryiesof their proposal for which the offeror isotherthan small or', 12249:'for theentiretyof their proposal, at the offerors discretion. when determining the need for a subcontracting plan, the contracting officer shall', 12250:'consider thecumulative dollar value of the portions orcategoryies of theofferorsproposal for whichthe offeror is other than small. ii for a', 12251:'multipleaward contract with more than one naics code, the modification referenced in paragraph a1 iii of this section shall require', 12252:'the contractor to submit an acceptable subcontracting plan for either the distinct portions or categoryies of the contract for which', 12253:'the contractor is other than small or for the entirety of their contract, at the contractors discretion. when determining the', 12254:'need for a subcontracting plan, thecontracting officer shall consider the cumulative dollar value of the portions or categoryies of the', 12255:'contract for which the contractor is other than small. b subcontracting plans see paragraphs a1 and 2 of this section', 12256:'are not required– 1 from small business concerns; 2 for personal services contracts; 3 for contracts or contract modifications that', 12257:'will be performed entirely outside of the united states and its outlying areas; or 4 for modifications that are within', 12258:'the scope of the contract and the contract does not contain the clause at 52.2198, utilization of small business concerns.', 12259:'c as stated in 15 u.s.c. 637d9, any contractor or subcontractor failing to comply in good faith with the requirements', 12260:'of the subcontracting plan is in material breach of itscontract. further, 15 u.s.c. 637d4f directs thata contractor’s failure to make', 12261:'agood faith effortto comply withthe requirementsof the subcontracting plan shall result in the imposition of liquidated damages. d as authorized', 12262:'by 15 u.s.c. 637d12, certain costs incurred by a mentor firm in providing developmental assistance to a protégé firm under', 12263:'the department of defense mentorprotégé program, may be credited as if they were subcontract awards to a protégé firm for', 12264:'the purpose of determining whether the mentor firm attains the applicable goals under any subcontracting plan entered into with any', 12265:'executive agency. however,the mentorprotégé agreementmust have been approved by thedirector, small business programs of the cognizant dod military department or', 12266:'defense agency, before developmental assistance costs may be credited against subcontract goals. a list of approved agreements may be obtained', 12267:'at https://business.defense.gov/programs/mentorprotegeprogram/. 19.703 eligibility requirements forparticipating in the program. a except as provided in paragraph c of this section, to', 12268:'be eligible as a subcontractor under the program, a concern must represent itself as a small business, veteranowned small business,', 12269:'servicedisabled veteranowned small business, hubzone small business, small disadvantaged business, or womenowned small business concern. 1 to representitself as a', 12270:'small business, veteranowned small business, servicedisabled veteranownedsmall business, hubzone small business, small disadvantaged business, or womenowned small business concern, a', 12271:'concern must meet the appropriate definition see 2.101 and 19.001. for subcontracting purposes, a concern is small if it does', 12272:'not exceed the size standard for the naics code that the prime contractor determines best describes the product or service', 12273:'being acquired by the subcontract. 2 i the prime contractor may accept a subcontractors written representations of its size and', 12274:'socioeconomic status as a small business, small disadvantaged business, veteranowned small business, servicedisabled veteranowned small business, hubzone small business, or', 12275:'a womenowned small business, if the subcontractor represents that the size and socioeconomic status representation with its offer are current,', 12276:'accurate, and complete as of the date ofthe offer for the subcontracts; or subpart 19.7 the small business subcontracting program', 12277:'19.704 ii the prime contractor may accept a subcontractors representation of its size and socioeconomic status as a small business,', 12278:'small disadvantaged business, veteranowned small business, servicedisabled veteranowned small business, hubzone small business, or a womenowned small business in the', 12279:'system for award management sam if– a the subcontractor is registered in sam; and b the subcontractor represents that the', 12280:'size and socioeconomic status representations made in sam are current, accurate and complete as of the date ofthe offer for', 12281:'the subcontract. iii the prime contractor may not require the use of sam for the purposes of representing size or', 12282:'socioeconomic status in connection with a subcontract. iv in accordancewith 13cfr 121.411, 126.900,127.700, and 128.600, a prime contractor acting in', 12283:'good faith is not liable for misrepresentations made by its subcontractors regarding the subcontractors size or socioeconomic status. b the', 12284:'contractor, thecontracting officer,or any other interested party can challenge a subcontractors size status representation by filing a protest, in accordance', 12285:'with 13 cfr 121.1001 through 121.1008. c 1 in accordance with 43 u.s.c. 1626, the following procedures apply: i subcontracts', 12286:'awarded to an anc or indian tribe shall be counted towards the subcontracting goals for small business and small disadvantaged', 12287:'business sdb concerns, regardless of the size or small business administration certification status of the anc or indian tribe. ii', 12288:'where one or more subcontractors are in the subcontract tier between the prime contractor and the anc or indian tribe,', 12289:'the anc or indian tribe shall designate the appropriate contractors to count the subcontract towards its small business and small', 12290:'disadvantaged business subcontracting goals. a in most cases, the appropriate contractor is the contractor that awarded the subcontract to the', 12291:'anc or indian tribe. b if the anc or indian tribe designates more than one contractor to count the subcontract', 12292:'toward its goals, the anc or indiantribe shall designate only a portion of the totalsubcontract award to each contractor. the', 12293:'sum of the amounts designated to various contractors cannot exceed the total value of the subcontract. c the anc or', 12294:'indian tribe shall give a copy of the written designation to the contracting officer, the prime contractor, and the subcontractors', 12295:'in betweenthe prime contractor and the ancor indian tribe within 30days of the date of the subcontract award. dif the', 12296:'contracting officer does notreceivea copy of the ancs or the indian tribe’s written designation within 30 days of the subcontract', 12297:'award, the contractor that awarded the subcontract to the anc or indian tribe will be considered thedesignated contractor. 2 a', 12298:'contractor acting in good faith may rely on the written representation of an anc or an indian tribe as to', 12299:'the status of the ancor indian tribe unless an interested party challenges its status orthe contracting officer has independent reason', 12300:'to question its status. in the event of a challenge of a representation of an anc or indian tribe, the', 12301:'interested parties shall follow the procedures at 26.103b through e. d protests challenging the socioeconomic status of a hubzone small', 12302:'business concern must be filed in accordance with 13 cfr 126.801. 19.704 subcontracting plan requirements. a each subcontracting plan required', 12303:'under 19.3012e and 19.702a1i, ii, and iii shall include 1 separate percentage goals for using small business including ancs and', 12304:'indian tribes, veteranowned small business, servicedisabled veteranowned small business, hubzone small business, small disadvantaged business including ancs and indian tribes', 12305:'and womenowned small business concerns as subcontractors; 2 a statement of the total dollars planned to be subcontracted and a', 12306:'statement of the total dollars planned to be subcontracted to small business including ancs and indian tribes, veteranowned small business,', 12307:'servicedisabled veteran owned small business, hubzone small business, small disadvantaged business including ancs and indian tribes and womenowned small business', 12308:'concerns, as apercentage of total subcontract dollars. for individualsubcontractingplans only, a contracting officer may require thegoals referenced in paragraph a1', 12309:'of this section to be calculated as a percentage of total contract dollars, in addition to the goals established as', 12310:'a percentage of total subcontract dollars; 3 a description of the principal types of supplies and services to be subcontracted', 12311:'and an identification of types of supplies or services planned for subcontracting to small business including ancs and indian tribes,', 12312:'veteranowned small business, servicedisabled veteranowned small business, hubzone small business, small disadvantaged business including ancs and indian tribes, and womenowned', 12313:'small business concerns; 4 a description of the method used to develop the subcontracting goals; federal acquisition regulation 5 a', 12314:'description of the method used to identify potential sources for solicitation purposes; 6 a statement as towhetheror not theofferor includedindirectcosts', 12315:'inestablishing subcontracting goalsfor commercial plans, see paragraph d of this section, and a description of the method used to determine', 12316:'the proportionate share of indirect costs to be incurred with small business including ancs and indian tribes, veteranowned small business,', 12317:'servicedisabled veteranowned small business, hubzone small business, small disadvantaged business including ancs and indian tribes, and womenowned small business concerns;', 12318:'7 the name of an individualemployed by the offeror who willadminister the offeror’s subcontracting program, and a description of the', 12319:'duties of the individual; 8 a description of theefforts the offeror willmake to ensure that small business, veteranownedsmall business, servicedisabled', 12320:'veteranowned small business, hubzone small business, small disadvantaged business, and womenowned small business concerns have an equitable opportunity to compete', 12321:'for subcontracts; 9 assurances that the offeror will include the clause at 52.2198, utilization of small business concerns see 19.708a,', 12322:'inall subcontracts that offer furthersubcontractingopportunities, and that the offeror will require all subcontractors except small business concerns that receive subcontracts', 12323:'in excess of $750,000 $1.5 million for construction to adopt a plan that complies with the requirements of the clause', 12324:'at 52.2199, small business subcontracting plan see 19.708b; 10 assurances that the offerorwill i cooperate in any studies or surveys', 12325:'as may be required; iisubmit periodicreports sothat the government can determine the extent ofcompliance by the offeror with the subcontracting', 12326:'plan; iii after november 30, 2017, include subcontracting data for each order when reporting subcontracting achievements for indefinitedelivery,indefinitequantity contracts with', 12327:'individual subcontracting plans where the contractis intended for use by multiple agencies; iv submit the individual subcontract report isr, and', 12328:'the summary subcontract report ssr using the electronic subcontracting reporting system esrs http://www.esrs.gov, following the instructions in the esrs. a', 12329:'the isr shall be submitted semiannually during contract performance for the periods ending march 31 and september 30. a report', 12330:'is also required for each contract within 30 days of contract completion. reports are due 30 daysafter the close of', 12331:'each reporting period, unless otherwise directedby the contracting officer. reports are required when due, regardless of whether there has been', 12332:'any subcontracting activity since the inception of the contract or the previous reporting period. when a contracting officer rejects an', 12333:'isr, thecontractor is required to submit a revised isr within 30days of receiving the notice of the isr rejection. b', 12334:'the ssr shall be submitted annually by october 30 for the twelvemonth period ending september 30. when an ssr is', 12335:'rejected, the contractor is required to submit a revised ssr within 30 days of receiving the notice of ssr rejection;', 12336:'v ensure that its subcontractors with subcontracting plans agree to submit the isr and/or the ssr using the esrs; vi', 12337:'provide itsprimecontract number, itsunique entity identifier, and the emailaddress of the offeror’s official responsible for acknowledging receipt of or rejecting', 12338:'the isrs to all firsttier subcontractors with subcontracting plans so they can enter this information into the esrs when submitting', 12339:'their isrs; and vii requirethat each subcontractor with a subcontracting plan provide the prime contract number,its own unique entity identifier,', 12340:'and the email address ofthe subcontractor’s official responsible for acknowledging receipt of orrejecting the isrs, to its subcontractors with subcontracting', 12341:'plans; 11 a description of the types of records thatwill be maintained concerningprocedures adopted to comply with the requirementsandgoals in', 12342:'the plan, includingestablishing source lists; and a description of theofferor’s effortsto locatesmall business, veteranowned small business, servicedisabled veteranowned small business,', 12343:'hubzone small business, small disadvantaged business, and womenowned small business concerns and to award subcontracts to them; 12 assurances that', 12344:'the offerorwill make agood faith effort to acquire articles, equipment, supplies,services, or materials, or obtain the performance of constructionworkfrom the', 12345:'small business concerns that the offeror used inpreparing the bid or proposal, in the same or greater scope, amount, and', 12346:'quality used in preparing and submitting the bid or proposal. responding to a request for a quote doesnot constitute use', 12347:'inpreparinga bidor proposal. an offerorused a small business concern in preparing the bid or proposal if– ithe offeror identifies the', 12348:'small businessconcern as a subcontractor in the bid or proposal or associated small business subcontracting plan, to furnish certain supplies', 12349:'or perform a portion of the contract; or subpart 19.7 the small business subcontracting program 19.7051 iithe offeror used the', 12350:'smallbusinessconcerns pricing or cost information or technical expertise in preparing the bid or proposal, where there is written evidence of', 12351:'an intent or understanding that the small business concern will be awarded a subcontract for the related work if the', 12352:'offeror is awarded thecontract; 13 assurances that the contractor will provide the contracting officerwith a written explanation ifthe contractor fails', 12353:'to acquire articles, equipment, supplies, services or materials or obtain the performance of construction work as described in a12 of', 12354:'this section. this written explanation will be submitted tothe contracting officer within 30 days of contract completion; 14 assurances that', 12355:'the contractor will not prohibit a subcontractor from discussingwith the contracting officer any material matter pertaining to payment to or', 12356:'utilization of a subcontractor; and 15 assurances that the offerorwill pay its small business subcontractors on time and in accordance', 12357:'with the terms and conditions of the subcontract, and notify the contracting officer ifthe offerorpays a reduced or an untimelypayment', 12358:'to a small business subcontractor see 52.2425. b contractors may establish, on a plant or divisionwide basis, a master plan', 12359:'see 19.701 that contains all the elements required by the clause at 52.2199, small business subcontracting plan, except goals. master', 12360:'plans shall be effective for a 3year period after approval by the contracting officer; however, it is incumbent uponcontractors to', 12361:'maintain and updatemaster plans. changes required to update master plans are noteffective until approved by the contracting officer. a master', 12362:'plan, when incorporated in an individual plan, shall apply to that contract throughout the life of the contract. c for', 12363:'multiyear contracts or contracts containing options, the cumulative value of the basic contract and all options is consideredin determining whether', 12364:'a subcontracting plan isnecessary. if asubcontractingplan is necessary andthe offeror is submitting an individual subcontracting plan, the individual subcontracting plan', 12365:'shall contain all the elements required by paragraph a of this section and shall contain separate statements and goals based', 12366:'on total subcontract dollars for the basic contract and for each option. d a commercial plan as defined in 19.701', 12367:'is the preferred type of subcontracting plan for contractors furnishing commercial products and commercial services. the subcontracting goals established for', 12368:'a commercial plan shall include all indirect costs with the exception of those such as the following: employee salaries and', 12369:'benefits; payments for petty cash; depreciation; interest; income taxes; property taxes; lease payments; bank fees; fines, claims, and dues; original', 12370:'equipment manufacturer relationships during warranty periods negotiated up front with the product; utilities and other services purchased from a municipality', 12371:'or an entity solely authorized by the municipality to provide those services in a particular geographical region; and philanthropic contributions.', 12372:'once a contractors commercial plan has been approved, thegovernment shall not requireanother subcontracting plan from the same contractorwhile the plan', 12373:'remains in effect, as long as the product or service being provided by the contractor continues to meet the definition', 12374:'of a commercial product or commercial service. the contractor shall— 1 submitthe commercialplan to eitherthe first contracting officer awarding a', 12375:'contract subject to the planduring thecontractor’sfiscalyear, or, ifthe contractor has ongoing contracts with commercial plans, to the contracting officer responsible', 12376:'for the contractwith the latest completiondate. the contracting officer shall negotiate the commercial planfor thegovernment. the approvedcommercial plan shall remain', 12377:'in effect during the contractor’s fiscal year for all government contracts in effectduring thatperiod; 2 submita new commercial plan, 30working', 12378:'daysbefore theend of the contractor’s fiscal year,to thecontracting officer responsible for the uncompleted government contractwith the latest completiondate. the contractor', 12379:'must provide to each contractingofficer responsible for an ongoing contract subjectto the plan, the identity ofthe contracting officer that will', 12380:'be negotiating the new plan; 3 when the new commercial planis approved,provide acopy ofthe approved plan toeach contracting officer responsible', 12381:'for an ongoing contract that is subject to the plan; and 4 comply with the reporting requirements stated in paragraph', 12382:'a10 of this section by submitting one ssr that includes all indirect costs, except as described in paragraph d of', 12383:'this section, in esrs, for all contracts covered by its commercial plan. thisreport will be acknowledgedor rejected inesrs bythe contracting', 12384:'officerwho approvedthe plan. the report shall be submitted within 30 daysafter the end of the government’s fiscal year. 19.705 responsibilities', 12385:'of the contracting officer under the subcontracting assistanceprogram. 19.7051 general. a thecontracting officer may encourage thedevelopment of increased subcontracting opportunities', 12386:'innegotiated acquisition by providing monetary incentives such as payments based on actual subcontracting achievement or awardfee 19.7052 federal acquisition regulation', 12387:'contracting see the clause at 52.21910, incentive subcontracting program, and 19.708c. when using any contractual incentive provision based upon rewarding', 12388:'the contractor monetarily for exceeding goals in the subcontracting plan, the contracting officermust ensure that a the goals are realistic', 12389:'and b any rewards for exceeding the goals are commensurate with the efforts thecontractor would not have otherwise expended. incentive', 12390:'provisions should normally be negotiated after reaching final agreement with the contractor on the subcontracting plan. b 1exceptwhereacontractorhasacommercialplan,thecontractingofficershallrequireasubcontractingplan for each', 12391:'indefinitedelivery, indefinitequantity contract including task ordelivery order contracts, fss, gwacs, and macs, when the estimated value of the contract meets', 12392:'the subcontracting plan thresholds at 19.702a and small business subcontracting opportunities exist. 2 contracting officersplacing orders mayestablishsmall business subcontracting goals', 12393:'for eachorder. establishing goals shall not be in the form of a new subcontracting plan as a contract may not', 12394:'have more than one plan 19.7052e. 19.7052 determining the need for a subcontracting plan. the contractingofficer shall take the following', 12395:'actions todetermine whether a proposed contractualaction requires a subcontracting plan: a 1 determine whether the proposed total contract dollars will', 12396:'exceed the subcontracting plan threshold in 19.702a. 2 determine whether a proposed modification will cause the total contract dollars to', 12397:'exceed the subcontracting plan threshold see 19.702a. b determine whether subcontracting possibilities exist by considering relevant factors such as 1', 12398:'whether firms engaged in the business of furnishing the types of items to be acquired customarily contract for performanceof part', 12399:'of the work or maintain sufficient inhousecapability to perform thework; and 2 whether there are likely to be product prequalification', 12400:'requirements. 3 whether the firm can acquire any portion of the work with minimal or no disruption to performance with', 12401:'consideration given to the time remaining until contract completion, and at fair market value, when a determination is made in', 12402:'accordance with paragraph a2. c if it is determined that there are no subcontracting possibilities, the determination shall include a', 12403:'detailed rationale, be approved at a level abovethe contracting officer, and placed in the contract file. d in solicitations for', 12404:'negotiated acquisitions, the contracting officer may require the submission of subcontracting plans with initial offers, or at any other time', 12405:'prior to award. indetermining when subcontracting plansshouldbe required, as well as whenandwith whomplans should benegotiated, the contractingofficer mustconsider the integrity', 12406:'of thecompetitive process,the goal of affording maximum practicable opportunity for small business, veteranowned small business, service disabled veteranowned small business,', 12407:'hubzone small business, small disadvantaged business, and womenowned small business concerns toparticipate, and the burden placed on offerors. e a', 12408:'contract may nothavemorethan one subcontracting plan. however, a contracting officermay establish separate subcontracting goals for each orderunder an indefinitedelivery, indefinitequantitycontract', 12409:'19.7051b2. when a contract modification exceeds the subcontracting plan threshold see 19.702a or an option is exercised, the goals of', 12410:'an existing subcontracting plan shall be amended to reflect any new subcontracting opportunities not envisioned at the time of contract', 12411:'award. thesegoal changes do not apply retroactively. f if a subcontracting plan has been added to the contract due to', 12412:'a modification see 19.702a1iii or a size re representation see 19.3012e, the subcontracting goals apply from the date of incorporation', 12413:'of the subcontracting plan into the contract and the contractors achievements must be reported on the isr or the sf294,', 12414:'if applicable on a cumulative basis from the date of incorporation of the subcontracting plan into the contract. 19.7053preparingthe solicitation.', 12415:'the contractingofficer shall provide thesmallbusiness administrations sba’sprocurement center representative or, if a procurement center representative is not assigned, see 19.402a', 12416:'a reasonable period of time to review any solicitation requiring submission of a subcontracting plan and to submit advisory findings', 12417:'before the solicitation is issued. 19.7054 reviewing the subcontracting plan. the contractingofficer shall review thesubcontractingplan for adequacy, ensuring that the', 12418:'required information, goals, and assurances are included see 19.704. a no detailed standardsapply to every subcontracting plan. instead, the contractingofficer', 12419:'shall considereach plan in terms of the circumstances of the particular acquisition, including subpart 19.7 the small business subcontracting program', 12420:'19.7054 1 previous involvement of small business concerns as prime contractors or subcontractors in similar acquisitions; 2 proven methods of', 12421:'involving small business concerns as subcontractors in similar acquisitions; and 3 the relative success of methods the contractor intends to', 12422:'use to meet the goals and requirements of the plan, as evidenced by records maintained by contractors. b if, under', 12423:'a sealed bid solicitation, a bidder submits a plan that does not cover each of the 15 required elements see', 12424:'19.704, the contracting officershalladvise thebidder of the deficiency and request submission ofa revisedplan by a specific date. if the bidder', 12425:'does not submit a plan that incorporates the required elements within the time allotted, the bidder shall be ineligible for', 12426:'award. ifthe plan, although responsive, evidences the bidder’s intention not tocomply with its obligations under the clause at 52.2198, utilization', 12427:'of small businessconcerns, the contractingofficer may find the bidder nonresponsible. c innegotiated acquisitions, the contracting officer shall determine whether the', 12428:'planis acceptable based on the negotiation of each of the 15 elements of the plan see 19.704. subcontracting goals should', 12429:'be set at a level that the parties reasonablyexpectcan result from the offerorexpending good faith efforts to use small business,', 12430:'veteranowned small business, servicedisabled veteranowned small business, hubzone small business, small disadvantaged business, and womenowned small business subcontractorsto themaximum practicable', 12431:'extent. the contracting officer shall take particular care to ensure that the offeror has not submitted unreasonably low goals to', 12432:'minimize exposure to liquidated damages and to avoid the administrative burdenof substantiating goodfaith efforts. additionally,particular attention should bepaid to the', 12433:'identificationof steps that,if taken, would be considered a good faith effort see 19.7057. no goal should be negotiated upward if', 12434:'it is apparent that ahigher goal willsignificantly increase the government’s cost or seriously impedethe attainment of acquisition objectives. an incentive', 12435:'subcontracting clause see 52.21910, incentive subcontracting program, may beused when additional and uniquecontract effort, such as providing technical assistance, could', 12436:'significantly increase subcontract awards to small business, small disadvantaged business, veteranowned small business, servicedisabled veteran owned small business, hubzone small', 12437:'business, or womenowned small business concerns. d in determining the acceptability of a proposed subcontracting plan, thecontracting officer should take', 12438:'the following actions: 1 obtaininformation availablefrom the cognizant contract administration office, as provided for in 19.706a, and evaluate the offeror’s', 12439:'past performance in awardingsubcontractsforthe same or similar products or services tosmall business, veteranowned small business, servicedisabled veteranowned small business, hubzone', 12440:'small business, small disadvantaged business, and womenowned small business concerns. if information is not available on a specific type of', 12441:'product orservice, evaluate the offeror’s overallpastperformance and consider theperformance of other contractors on similar efforts. 2 in accordance with 15', 12442:'u.s.c. 637d4fiii, ensurethat thegoals offered are attainablein relation to ithe subcontracting opportunities available to the contractor, commensurate with theefficient and', 12443:'economical performance of the contract; ii the pool of eligible subcontractors available to fulfill the subcontracting opportunities; and iii the', 12444:'actual performance of such contractor in fulfilling the subcontracting goals specified in prior plans. 3 ensure that the subcontracting goals', 12445:'are consistent with the offeror’scertifiedcostor pricing data or dataother than certified cost or pricing data. 4 evaluate theofferor’s makeorbuy policy', 12446:'or program toensure that it does not conflict with the offeror’sproposed subcontracting plan and is in the government’s interest. if', 12447:'the contract involves products orservicesthat areparticularly specializedor not generallyavailablein the commercial market, consider the offeror’s current capacity to perform the', 12448:'work and the possibility of reduced subcontracting opportunities. 5 evaluate subcontracting potential, considering the offeror’s makeorbuy policiesor programs, thenature of', 12449:'the supplies or services to be subcontracted, the known availability of small business, veteranowned small business, service disabled veteranowned small', 12450:'business, hubzone small business, small disadvantaged business, and womenowned small business concerns inthe geographical area where the work will beperformed,', 12451:'and the potential contractor’slongstanding contractual relationship with its suppliers. 6 advise the offeror of available sources of information on potential', 12452:'small business, veteranowned small business, servicedisabled veteranowned small business, hubzone small business, small disadvantaged business, and womenowned small business subcontractors,as', 12453:'well as any specificconcerns known tobe potential subcontractors. ifthe offeror’s proposed goals are questionable,the contracting officer must emphasize that the', 12454:'information should be used to develop realistic and acceptable goals. 19.7055 federal acquisition regulation 7 obtainadviceandrecommendations from thesba procurement center', 12455:'representativeor, if aprocurement center representative is not assigned, see 19.402a and the agency small business specialist. 19.7055awards involving subcontracting plans.', 12456:'a inmaking anaward that requires a subcontracting plan, the contracting officer shall beresponsibleforthe following: 1 considerthe contractor’s compliance with the', 12457:'subcontracting plans submittedon previous contractsas afactor in determining contractor responsibility. 2 assure that a subcontracting plan was submitted when required.', 12458:'3 notify the sba procurement center representative or, if a procurement centerrepresentative is not assigned, see 19.402a of the opportunity', 12459:'to review the proposed contract including the plan and supporting documentation. the notice shall beissuedin sufficient time to provide the', 12460:'representative a reasonable timeto review the material and submit advisory recommendations to the contracting officer. failure of the representative to', 12461:'respondin a reasonable period oftime shall not delay contract award. 4 determine any fee that may be payable if an', 12462:'incentive is used in conjunction with the subcontracting plan. 5 ensure that an acceptable plan is incorporated into and made', 12463:'a material part of the contract. b letter contracts and similar undefinitized instruments, which would otherwise meet the requirements of', 12464:'19.702a1 i and ii, shall contain at least a preliminary basic plan addressing the requirements of 19.704 and in such', 12465:'cases require the negotiation of the final plan within 90 days after award or before definitization, whichever occurs first. 19.7056postaward', 12466:'responsibilities of the contracting officer. after a contract or contract modification containing a subcontracting plan is awarded or an existing', 12467:'subcontracting plan is amended, the contracting officer shall do the following: a notifythe sba of the award by sending a', 12468:'copyof the awarddocument to the area director, office of government contracting, in the sba area office where the contract will', 12469:'be performed. b forward a copy of each commercial plan and any associated approvalsto thearea director, office of government contracting,', 12470:'in the sba area office where the contractor’s headquarters islocated. c give tothe sba procurementcenterrepresentative or, if a procurement center', 12471:'representative is not assigned, see 19.402a a copy of 1 any subcontracting plan submitted in response to a sealed bid', 12472:'solicitation; and 2 the final negotiated subcontracting plan that was incorporated into a negotiated contract or contract modification. d notify', 12473:'the sba procurement center representative or, if a procurement centerrepresentative is not assigned, see 19.402a of the opportunity to review', 12474:'subcontracting plans in connection with contract modifications. e forward a copy of each plan, or a determination that there is', 12475:'no requirement for a subcontracting plan, to the cognizant contract administrationoffice. f monitor the prime contractors compliance with its subcontracting', 12476:'plan, to include the following: 1 ensure that subcontracting reports are submitted into the esrs within 30 days after the', 12477:'report ending date e.g., by october 30 th for the fiscal year ended september 30 th. 2 review isrs, and', 12478:'where applicable, ssrs, in esrs within 60 days of the report ending date e.g., by november 30 th for a', 12479:'report submitted for the fiscal year ended september 30 th. 3 either acknowledge receipt of or reject the reports in', 12480:'accordance with subpart 19.7, 52.2199, small business subcontracting plan, and the esrs instructions www.esrs.gov. ithe authority to acknowledge or rejectssrs', 12481:'for commercialplans resides with thecontracting officer who approved the commercial plan. iiif a report is rejected,the contracting officermust providean explanation', 12482:'for therejectionto allow the prime contractor the opportunity to respond specifically to identified deficiencies. g evaluate the prime contractors compliance', 12483:'with its subcontracting plan, to include the following: 1 assess whether the prime contractor madea good faith effort to complywith', 12484:'its small business subcontracting plan. see 19.7057b for moreinformationon the determination ofgood faith effort. 2 assess the prime contractors written', 12485:'explanation concerning the prime contractors failure to use a small business concern in the performance of the contract in the', 12486:'same scope, amount, and quality used in preparing and submitting the bid or proposal, if applicable. subpart 19.7 the small', 12487:'business subcontracting program 19.7057 h initiate action to assess liquidated damages in accordance with 19.7057 upon a recommendation by the', 12488:'administrative contracting officer, if one is assigned,or receipt of other reliable evidence toindicate that assessing liquidated damages is warranted. itake', 12489:'action to enforce theterms ofthe contract upon receiptof anotice fromthe contract administrationoffice under 19.706f. j acknowledge receipt of or reject', 12490:'the isr and the ssr in the esrs. acknowledging receipt does not mean acceptance or approval of the report. the', 12491:'report shall be rejected if it is not adequately completed, for instance, if there are errors, omissions, or incomplete data.', 12492:'failure to meet the goals of the subcontracting plan is not a valid reason for rejecting the report. 19.7057 compliance', 12493:'with the subcontracting plan. a general. maximum practicable utilization of small business, veteranowned small business, servicedisabled veteran owned small business,', 12494:'hubzone small business, small disadvantaged business, and womenowned small business concerns as subcontractors in government contracts is a matter of', 12495:'national interest with both social and economic benefits. when a contractor fails to make a good faith effort tocomply with', 12496:'a subcontracting plan, theseobjectives are not achieved, and 15 u.s.c. 637d4f directs that liquidated damages shall be paid by the', 12497:'contractor. b determination of good faith effort. 1 in determining whether a contractor failed to make a good faitheffort to', 12498:'comply withits subcontracting plan, a contracting officer must look to the totality ofthe contractors actions, consistent with the information and', 12499:'assurances provided in its plan. the fact that the contractor failed to meet its subcontracting goals does not, in and', 12500:'of itself, constitutea failure to make a good faitheffort see 19.701. for example, notwithstanding a contractors diligent effort to identify', 12501:'and solicit offersfrom any of the small business, veteranowned small business, servicedisabled veteranowned small business, hubzone small business, small disadvantaged', 12502:'business, and womenowned small business concerns, factors such as unavailability of anticipated sources or unreasonable prices may frustrate achievement of', 12503:'the contractors subcontracting goals. the contracting officer may consider any of the following, thoughnot all inclusive, to be indicators of', 12504:'a good faith effort: i breaking out work to be subcontracted into economically feasible units, as appropriate, to facilitate small', 12505:'business participation. ii conducting market research to identify potential small business subcontractors through all reasonable means, such as searching sam,', 12506:'posting notices or solicitations on sbas subnet, participating in business matchmaking events, and attending preproposal conferences. iii soliciting small business', 12507:'concerns as early in theacquisitionprocess as practicable to allow them sufficient time to submit a timely offerforthe subcontract. iv providing', 12508:'interested small businesses with adequate and timely information about plans, specifications, and requirementsforperformance of the prime contractto assist themin submitting', 12509:'a timely offerforthe subcontract. v negotiating in good faith with interested small businesses. vi directing small businesses that need additional', 12510:'assistance to sba. vii assisting interested small businesses in obtaining bonding, lines of credit, required insurance, necessary equipment, supplies, materials,', 12511:'or services. viii utilizing the available services of small business associations; local, state, and federal small business assistance offices;and otherorganizations.', 12512:'ix participating in a formal mentorprotégé program with one or more small business protégés that results in developmental assistance to', 12513:'the protégés. x althoughfailing to meet the subcontracting goal in one socioeconomic category, exceeding the goal by an equal or', 12514:'greater amount in one or more of the other categories. xi fulfilling all of the requirements of the subcontracting plan.', 12515:'2 when considered in the context of the contractorstotal effortin accordance with its plan, the contracting officer may consider any', 12516:'ofthe following,though not all inclusive, to be indicators of a failure to make agood faith effort: ifailure to attempt through', 12517:'market research toidentify, contact, solicit, or consider for contract award small business, veteranowned small business, servicedisabled veteranowned small business, hubzone', 12518:'small business, small disadvantaged business, or womenowned small business concerns, through all reasonable means including outreach, industry days, or the', 12519:'use of federal systems such as sbas dynamic small business search or subnet systems. iifailure to designate and maintain a', 12520:'company official to administer the subcontracting program and monitor and enforce compliance with the plan. 19.7057 federal acquisition regulation iii', 12521:'failure to submit an acceptable isr, or the ssr, using the esrs, or as provided in agency regulations, by the', 12522:'report due dates specified in 52.2199, small business subcontracting plan. iv failure to maintain records or otherwise demonstrate procedures adopted', 12523:'to comply with the plan including subcontracting flowdown requirements. v adoption of company policies or documented procedures that have as', 12524:'their objectives the frustration of the objectives of the plan. vi failure to pay small business subcontractors in accordance with', 12525:'the terms of the contract with the prime contractor. vii failure to correct substantiated findings from federal subcontracting compliance reviews', 12526:'or participate in subcontracting plan management training offered by thegovernment. viii failure toprovide the contractingofficer witha written explanation if the', 12527:'contractor failsto acquire articles, equipment, supplies, services, or materials or obtain the performance of construction work as described in 19.704a12.', 12528:'ix falsifying records of subcontract awards to small business concerns. c documentation of good faith effort. if, at completion of', 12529:'the basic contract or any option, or in the case of a commercial plan, at the close of the fiscal', 12530:'year for which the plan is applicable, a contractor has failed to comply with the requirements of its subcontracting plan,', 12531:'which includes meeting its subcontracting goals, thecontracting officer shall review all available information for an indication that the contractor has', 12532:'notmadea good faith effort to complywith the plan. if no such indication is found, the contracting officer shall document the', 12533:'file accordingly. d notice of failure to make a good faith effort. if thecontracting officer decides in accordance with paragraph', 12534:'b of this section that the contractor failed to make a good faitheffort to comply with its subcontracting plan, the', 12535:'contracting officer shall give the contractor written notice in accordance with 52.21916, liquidated damages—subcontracting plan, specifying the material breach, which', 12536:'may be included in the contractors past performance information, advising the contractor of the possibility that the contractor may have', 12537:'to pay to the government liquidated damages, and providing a period of 15 working days or longer period as necessary', 12538:'within which to respond. the notice shall give the contractor an opportunity to demonstrate what good faith efforts have been', 12539:'made beforethe contracting officer issues the final decision and shall further state that failure of the contractor to respond may', 12540:'be taken as an admission that no valid explanation exists. e payment of liquidated damages. 1 if, afterconsideration of all', 12541:'thepertinent data, the contracting officer finds that the contractor failedto make a goodfaith effort to comply with itssubcontractingplan,the contracting officer', 12542:'shall issue afinal decision to the contractor to that effectandrequire the payment of liquidated damages in an amount stated. the', 12543:'contracting officers final decision shall statethat thecontractor has the right to appeal under the clausein the contractentitled disputes. calculations and', 12544:'procedures shall be in accordance with 52.21916, liquidated damages—subcontracting plan. 2 the amount of damages attributable to the contractors failure', 12545:'to comply shall be an amount equal to the actual dollar amount by which the contractor failed to achieve each', 12546:'subcontracting goal. for calculations for commercial plans see paragraph f of this section. 3 liquidated damages shall be in addition', 12547:'to any other remedies that the government may have. f commercial plans. withrespect to commercial plans approvedunder theclause at 52.2199,', 12548:'small business subcontracting plan, the contracting officerthat approved the planshall 1 perform the functions of the contracting officer under this', 12549:'subsection on behalf of all agencies withcontracts covered by the commercial plan; 2 determine whether or not the goals in', 12550:'the commercial plan were achieved and, if they were not achieved, review all available information for an indication that the', 12551:'contractor has notmadea good faith effort to complywith the plan, and document the results of the review; 3 if a', 12552:'determination is made to assess liquidated damages, in order to calculate and assess the amount of damages, the contracting officershallask', 12553:'the contractor to provide i contract numbers for the government contracts subject to the plan; iithe totalgovernmentsales duringthe contractor’s fiscal', 12554:'year; and iii the amount of payments made under the government contracts subject to that plan that contributed to the', 12555:'contractor’s total sales duringthe contractor’s fiscal year; and 4 when appropriate,assess liquidateddamageson the government’s behalf,based on the prorata shareof subcontracting', 12556:'attributable to the government contracts. for example:the contractor’s total actual sales were $50 million and itsactual subcontracting was $20 million.', 12557:'thegovernment’s total payments under contractssubject to the plan contributing tothe contractor’s totalsales were $5 million, which accountedfor10 percentof the contractor’s', 12558:'total sales. therefore, the pro rata share of subcontracting attributable to the government contracts would be 10 percent of $20', 12559:'million, subpart 19.7 the small business subcontracting program 19.708 or $2million. to continue the example, if the contractor failed to', 12560:'achieve its small businessgoal by 1 percent, the liquidated damages would be calculated as 1 percent of $2million,or $20,000. thecontracting', 12561:'officer shall make similar calculations for each category of small business where the contractor failed to achieve its goal and', 12562:'the sum of the dollars for all of the categories equals the amount of theliquidated damages to be assessed. a', 12563:'copy of thecontracting officer’s final decision assessing liquidateddamagesshallbe provided toother contracting officers with contracts subject tothe commercialplan. 5 every contracting', 12564:'officer with a contractthat issubject to a commercial plan shall include inthe contract filea copy of the approved plan and', 12565:'a copy of the final decision assessing liquidating damages, if applicable. 19.706 responsibilities of the cognizant administrative contracting officer. the', 12566:'administrative contractingofficer is responsible for assisting in evaluating subcontracting plans, and for monitoring, evaluating, and documenting contractor performance under the', 12567:'clause prescribed in 19.708b and any subcontracting plan includedin the contract. thecontract administration officeshallprovide the necessary informationand advice to support', 12568:'the contracting officer, as appropriate, by furnishing a documentation onthe contractor’s performanceandcompliance with subcontracting plans under previouscontracts; b information on', 12569:'the extentto which the contractor ismeeting the plan’s goals for subcontracting with eligible small business, veteranowned small business, servicedisabled veteranowned', 12570:'small business, hubzone small business, small disadvantaged business, and womenowned small business concerns; c information on whether thecontractor’sefforts to ensure', 12571:'the participation of small business, veteranowned small business, servicedisabled veteranowned small business, hubzone small business, small disadvantaged business, and womenowned', 12572:'small business concerns are in accordance with its subcontracting plan; d information on whether the contractor is requiring its subcontractors', 12573:'to adopt similar subcontracting plans; e immediate notice if, during performance, the contractor is failing to meet its commitments under', 12574:'the clause prescribed in 19.708b or the subcontracting plan; f immediate notice and rationale if, during performance, the contractor is', 12575:'failing to comply in good faith with the subcontracting plan see 19.7057b for moreinformationon the determination ofgood faith effort; and', 12576:'g immediate notice that performance under a contract is complete, that the goals were or were not met, and, if', 12577:'not met, whether there isany indication ofa lack of a good faitheffort to comply with the subcontracting plan. 19.707 the', 12578:'small business administration’s role in carrying out the program. a under the program, the sba may 1 assist both government', 12579:'agencies and contractors in carrying out their responsibilities with regard to subcontracting plans; 2 review within 5 working days any', 12580:'solicitation that meets the dollar threshold in 19.702a1i or ii before the solicitation is issued; 3 review within 5 working', 12581:'days before execution any negotiated contractual document requiring a subcontracting plan, including the plan itself, and submit recommendations to the', 12582:'contracting officer, which shall be advisory in nature; and 4 evaluate compliance with subcontracting plans, either on a contractbycontractbasis, or,', 12583:'in thecaseof contractors having multiple contracts, on an aggregate basis. b the sba is not authorized to 1 prescribe the', 12584:'extent to which any contractor or subcontractor shall subcontract, 2 specify concerns to which subcontracts will be awarded, or 3', 12585:'exercise any authority regarding the administration of individual prime contracts or subcontracts. 19.708contract clauses. a insert the clause at 52.2198,', 12586:'utilization of small business concerns, in solicitations and contracts when the contract amount is expected to exceed the simplified acquisition', 12587:'threshold unless 1 a personal services contract is contemplated see 37.104; or 2 the contract, together with all of its', 12588:'subcontracts, will be performed entirely outside of the united states and its outlying areas. b 1 insert the clause at', 12589:'52.2199,smallbusinesssubcontractingplan,insolicitationsandcontractsthatoffer subcontracting possibilities, are expected to exceed $750,000 $1.5 million for construction of any public facility, and are required to', 12590:'include the clause at 52.2198, utilization of small business concerns, unless the acquisition is set aside or is to be', 12591:'accomplished under the 8a program. when federal acquisition regulation icontracting bysealed biddingratherthan by negotiation, thecontracting officer shall use the clause', 12592:'with its alternate i; ii contracting by negotiation, and subcontracting plans are required with initial proposals as provided for in', 12593:'19.7052d,the contracting officer shall use the clausewith its alternate ii; iii the contract action will not be reported in the', 12594:'federal procurement data system pursuant to 4.606c5, or c 6, the contracting officer shall use the clause with its alternateiii;', 12595:'or iv incorporating a subcontracting plan due to a modification as provided for in 19.702a1iii, the contracting officer shall use', 12596:'theclause with itsalternate iv. 2 insert the clause at 52.21916, liquidated damagessubcontracting plan, in all solicitations and contracts containing the', 12597:'clause at 52.2199, small businesssubcontractingplan, or the clause withits alternate i, ii, iii, or iv. c 1thecontractingofficermay,whencontractingbynegotiation,insertinsolicitationsandcontractsaclause substantially the same', 12598:'as the clause at 52.21910, incentive subcontracting program, when a subcontracting plan is required see 19.702,andinclusion of a monetary incentive', 12599:'is, inthe judgment ofthe contracting officer, necessary to increase subcontracting opportunities for small business, veteranowned small business, servicedisabled veteranowned small', 12600:'business, hubzone small business, small disadvantaged business, and womenowned small business concerns, and is commensurate with the efficient and economical', 12601:'performance of the contract; unless the conditions in paragraph c3 of this section are applicable. the contracting officer mayvary the', 12602:'terms of the clause as specifiedin paragraph c2 ofthis section. 2 various approaches may be used in the development of', 12603:'small business, veteranownedsmall business,servicedisabled veteranowned small business, hubzone small business, small disadvantaged business, and womenowned small business concerns’ subcontracting incentives.', 12604:'they can take many forms, from a fully quantified schedule of payments based on actual subcontract achievement to an awardfee', 12605:'approach employing subjective evaluation criteria see paragraph c 3 of this section. the incentive should not reward the contractor for', 12606:'results other than those that are attributable to the contractor’s efforts under the incentivesubcontractingprogram. 3 asspecified in paragraph c2of this', 12607:'section, the contracting officer may include small business, veteranowned small business, servicedisabled veteranowned small business, hubzone small business, small disadvantaged', 12608:'business, and womenowned small business subcontracting as one of the factors to be considered in determining the award fee in', 12609:'a costplusawardfee contract; insuch cases, however, the contracting officer shall notuse the clause at 52.21910, incentive subcontracting program. subpart 19.8', 12610:'contracting with the small business administration the 8a program 19.803 subpart 19.8 contracting with the small business administration the 8a', 12611:'program 19.800general. a section 8a of the small business act 15 u.s.c. 637a established a program that authorizes the small', 12612:'business administration sba to enter into all types of contracts with other agencies and award subcontracts for performing those contracts', 12613:'to firms eligible for program participation. this program is the 8a business development program, commonly referred to as the 8aprogram.', 12614:'a small businessthat is accepted intothe 8a program is known as a participant. sba’s subcontractors are referred to as 8a', 12615:'contractors. as used in this subpart, an 8a contractor is an 8a participant that is currently performing on a federal', 12616:'contract or order that was set aside for 8a participants. b contracts may be awarded to the sba for performance', 12617:'by eligible 8a participants on either a sole source or competitive basis. c acting under the authority of the program,', 12618:'the sba certifies to an agency that sba is competent and responsible to perform a specificcontract. the contracting officer has', 12619:'the discretion to award thecontract to thesba based upon mutually agreeable terms and conditions. d the contractingofficer shall comply with', 12620:'19.203 before deciding to offer an acquisition to a small business concern underthe 8a program. for acquisitions abovethe simplified acquisitionthreshold,', 12621:'thecontracting officer shall consider 8a setasides or sole source awards before considering small business setasides. e when sba has delegated', 12622:'its 8a program contractexecution authority to an agency, the contracting officer must refer to its agency supplement or other policy', 12623:'directives for appropriate guidance. 19.801[reserved] 19.802 determiningeligibility for the 8a program. determining the eligibility of a small business to be', 12624:'a participant in the 8a program is the responsibility of the sba. sba’s regulations on eligibilityrequirements for participation in the8a', 12625:'program are found at 13 cfr 124.101 through 124.112. sba designates the concern as an 8a participant inthe dynamic small', 12626:'business search dsbs at https:// web.sba.gov/pronet/search/dspdsbs.cfm . sbas designation also appears in the system for award managementsam. 19.803 selecting acquisitions', 12627:'for the 8aprogram. through their cooperative efforts, the sba and anagency match the agencys requirements with thecapabilities of8a participants to', 12628:'establish a basis for the agency to contract with the sba under the program. selection is initiated in one of', 12629:'three ways: a the sba advises the contracting activity of an 8a participants capabilities through a search letter and requests', 12630:'the contracting activity to identify acquisitions to support the participants business plans. in these instances, the sba will provide at', 12631:'a minimum the following information in order to enable the contracting activity to match an acquisition to the participants capabilities:', 12632:'1 identification of the participant and its owners. 2 background information on the participant, including any and all information pertaining', 12633:'to the participants technical ability and capacity to perform. 3 the participants present production capacity and related facilities. 4 the', 12634:'extent to which contracting assistance is needed in the present and the future, described in terms that will enable the', 12635:'agency to relate the participants plans to present and future agency requirements. 5 if construction is involved, the request shall', 12636:'also include the following: i a participants capabilities in and qualifications for accomplishing various categories of construction work typically found', 12637:'in north american industrial category system subsector 236 construction of buildings, subsector 237 heavy and civil engineering construction, or subsector', 12638:'238 specialty trade contractors. iithe participant’s capacity in each construction category in terms of estimated dollar value e.g., electrical, up', 12639:'to $100,000. b the sba identifies a specific requirement for one or more 8a participants and sends a requirements letter', 12640:'to the agencys office of small and disadvantaged business utilization, orforthe department of defense,office of small business programs, requesting the', 12641:'contracting office offer theacquisitionto the 8aprogram. in theseinstances, in additionto the information in paragraph a of this section, the sba', 12642:'will provide 1 a clear identification of the acquisition sought; e.g., project name or number; federal acquisition regulation 2 a', 12643:'statement as to how the required equipment and real property will be provided in order to ensure that the participant', 12644:'will be fully capable of satisfying the agencys requirements; 3 if construction, information as to the bonding capability of the', 12645:'participants; and 4 either i if a sole source request a the reasons why the participant is considered suitable for', 12646:'this particular acquisition; e.g., previous contracts for the same or similar supply or service; and b a statement that the', 12647:'participant is eligible in terms of its small business size status relative to the assigned naics code, business supportlevels, and', 12648:'business activity targets; or ii if competitive, a statement that at least two 8a participants are considered capable of satisfying', 12649:'the agencys requirements and a statement that the participants are also eligible in terms of their small business size status', 12650:'relative to the assigned naics code, business support levels, and business activity targets. if requestedby the contracting office, sbawill identify', 12651:'at least two such participants and provide information concerning the participants’ capabilities. c agencies may also review other proposed acquisitions', 12652:'for the purpose of identifying requirements which may be offered to the sba. where agenciesindependently,or through the self marketing efforts', 12653:'ofan 8a participant, identify a requirement for the8aprogram, theymay offer on behalf of a specific 8a participant, for the 8a', 12654:'program in general, or for 8a competition. 19.804evaluation, offering, and acceptance. 19.8041 agency evaluation. in determining the extent to which', 12655:'a requirement should be offered insupport ofthe 8a program, the agency should evaluate a current and future plans to acquire', 12656:'the specific items or work that 8a participants are seeking to provide, identified in terms of 1 estimated quantities of', 12657:'the supplies or services required or the estimated number of construction projects planned; 2 length of contract, including option periods', 12658:'see 19.812d; and 3 performance or delivery requirements, including– i required monthly production rates, when applicable; and ii for construction,', 12659:'the geographical location where work is to be performed; b the impact of any delay in delivery; c whether the', 12660:'items or work have previously been acquired using small business setasides, and the date the items or work were acquired;', 12661:'d problems encountered in previous acquisitions of the items or work from the 8a participants or other contractors; and e', 12662:'any other pertinent information about known 8a participants, the items, or the work. this includes any information concerning the participants', 12663:'products or capabilities. whennecessary, the contracting agency shall make an independent review of the factors in 19.803a and other aspects', 12664:'of the participants capabilities which would ensure the satisfactory performance of the requirement being considered for commitment to the 8a', 12665:'program. 19.8042 agency offering. a after completing itsevaluation, the contracting office shall notify the sba of the extent of its', 12666:'plans to place 8a contracts with the sba for specific quantities of items or work, including 8a contracts that are', 12667:'reserved in accordance with 19.503. the notification,referred to asan offeringletter, shall identify the timeframes withinwhich resulting 8a awards must be', 12668:'completed in order for the agency tomeet itsresponsibilities. the offering letter shall alsocontain the following information applicable to each prospective', 12669:'contract: 1 a description of the work to be performed or items to be delivered, and a copy of the', 12670:'statement of work, if available. 2 the estimated period of performance. 3 the naics code that applies to the principal', 12671:'nature of the acquisition. 4 the anticipated dollar value ofthe requirement, including options, if any. 5 any special restrictions or', 12672:'geographical limitations on the requirement for construction, include the location of the work to be performed. 6 any special capabilities', 12673:'or disciplines needed for contract performance. subpart 19.8 contracting with the small business administration the 8a program 19.8043 7 the', 12674:'type of contract anticipated. 8 the acquisition history, if any, ofthe requirement, including the names and addresses ofanysmall business contractors', 12675:'that have performed this requirement during the previous 24 months. 9 a statement that prior to the offering no solicitationforthe', 12676:'specificacquisition hasbeenissuedas a smallbusiness, hubzone, servicedisabled veteranowned small business setaside, or a setaside under the womenowned small business wosb program,', 12677:'and that no other public communication such as a notice through the governmentwide point of entry gpehas been made showingthe', 12678:'contracting agency’sclear intention to setaside the acquisition for small business, hubzone small business, servicedisabled veteranowned small business concerns, or a', 12679:'setaside under the wosb program. 10 identification of any particular 8a participant designated for consideration, including a brief justification, such', 12680:'as ithe 8a participant, through itsown efforts, marketed the requirement andcaused it to be reserved for the 8a program; or', 12681:'ii the acquisition is a followon or renewal contract and the nominated 8a participant is the incumbent. 11 bonding requirements,', 12682:'if applicable. 12 identification of all 8a participants which have expressed an interest in being considered for the acquisition. 13', 12683:'identification of all sba field offices that have asked for theacquisition for the 8a program. 14 a request, if appropriate,', 12684:'that a requirement with an estimated contract value under the applicable competitive threshold be awarded as an 8a competitive contract', 12685:'see 19.8051d. 15 a request, if appropriate, that a requirement with a contract value over the applicable competitive threshold be', 12686:'awarded as a sole source contract see 19.8051b. 16 any other pertinent and reasonably available data. b 1anagencyofferingaconstructionrequirementforwhichnospecificofferorisnominatedshouldsubmitittothe sba district', 12687:'office for the geographicalarea where thework is tobe performed. 2 an agency offering a construction requirement on behalf of a', 12688:'specific offeror should submit it to the sba district office servicing thatconcern. 3 sole source requirements, other than construction, should', 12689:'be forwarded directly to the district officethat services thenominated 8a participant. ifthe contracting officeris not nominating a specific8a participant, the', 12690:'offering letter should beforwardedto the districtoffice servicing thegeographical areain whichthe contracting office is located. c allrequirements for 8a competition, other', 12691:'than construction, should be forwarded tothe district office servicing the geographical area in which thecontracting office islocated. all requirements for', 12692:'8a construction competition should be forwarded to the district officeservicingthe geographical area in which all or the major portion of', 12693:'the construction is to be performed. all requirements, including construction, must be synopsized through the gpe. for construction, the synopsis', 12694:'must include the geographical area ofthe competition set forth in thesba’s acceptance letter. 19.8043 sba acceptance. a upon receiptof the', 12695:'contractingoffices offering letter, sba will determine whether to acceptthe requirement for the 8a program. sba’s decision whether to accept the', 12696:'requirement will be transmittedto the contracting office in writing within 10 working days ofreceipt of the offerif the contractis likely', 12697:'to exceed the simplifiedacquisitionthreshold and within two workingdays of receiptif the contractis at or below the simplified acquisition threshold. the', 12698:'contracting office may grant an extension of these time periods, if requested by sba. 1 for acquisitions exceeding the simplified', 12699:'acquisition threshold, ifsba does not respond to an offering letter within tenworking days, the contracting officemay seeksba’s acceptance through the', 12700:'associate administrator for business development. thecontracting office may assume that sba hasaccepted the requirement into the 8aprogramif it does not', 12701:'receive a reply from the associate administrator for business development within five calendar days of receipt of the contracting offices', 12702:'request. 2 for acquisitions not exceeding the simplifiedacquisitionthreshold, when the contracting officemakes anoffer to the8aprogramon behalfof aspecific 8a participant and', 12703:'does notreceivea reply to its offering letter within two working days, the contracting officemay assume the offer is acceptedandproceed with', 12704:'award of an 8acontract. b as part of the acceptance process, sba will review the appropriateness of the naics code', 12705:'designation assigned to the requirement by the contracting officer. 1 sba will not challenge thenaics code assigned tothe requirement by', 12706:'the contracting officer if it is reasonable, even though other naics codes may also be reasonable. 2 if sba and', 12707:'the contracting officer are unable to agree on a naics code designation for the requirement, sbamay refuse to accept the', 12708:'requirement for the 8a program, appeal the contracting officers determination to the head of the agency 19.8044 federal acquisition regulation', 12709:'pursuant to 19.810, or appeal the naics code designation to the sba office of hearings and appealsunder subpart c of', 12710:'13 cfr part 134. c sole source 8a awards. if anappropriatematch exists, sba will advisethe contracting officer whether it will', 12711:'participate incontract negotiations or whether sba willauthorize thecontracting officer tonegotiate directly with the identified 8a participant. where sba hasdelegated its', 12712:'contractexecution functions to a contracting agency, sba will also identify that delegation inits acceptanceletter. for a joint venture,sba will determine', 12713:'eligibilityas part of its acceptance of a solesource requirement and will approve the joint venture agreement prior to award in', 12714:'accordance with 13 cfr 124.513e. 1 sole source award wherethe contracting officernominatesa specific 8a participant. sba will determine whether anappropriate', 12715:'matchexists where the contracting officer identifies a particular participant for asole sourceaward. i once sba determines that a procurement is', 12716:'suitable to be accepted as an 8a sole source contract, sba will normallyaccept it on behalf of the8a participant recommendedby', 12717:'the contracting officer, provided thatthe 8a participant complies with the requirements of 13 cfr 124.503c1. iiif an appropriate match does', 12718:'not exist, sba will notify the 8a participant and thecontracting officer, andmay then nominate an alternate 8a participant. 2 sole', 12719:'source award wherethe contracting officerdoes not nominate aspecific 8a participant. when a contracting officer does not nominatean 8a participantforperformance of', 12720:'a sole source 8a contract, sbawill select an 8a participant for possible award from among two or more eligible and', 12721:'qualified 8a participants. the selection will be based upon relevant factors, including business development needs, compliance with competitive business mix', 12722:'requirements if applicable, financial condition,managementability,technicalcapability, and whether award willpromote the equitable distribution of 8a contracts. for construction requirements see 13', 12723:'cfr 124.503d1. 19.8044 repetitive acquisitions. in order for repetitive acquisitions to be awarded through the 8a program,there must be separate', 12724:'offers and acceptances. this allows the sba to determine a whether the requirement should be a competitive 8a award; b', 12725:'a nominated 8a participants eligibility, and whether ornot it is thesame 8a participant thatperformed the previous contract; c theeffect that', 12726:'contract award would have on the equitabledistribution of8a contracts; and d whether the requirement should continue under the 8a program.', 12727:'19.8045basic orderingagreements and blanket purchase agreements. a thecontracting office shall submit an offering letter for, and sba mustaccept, each orderunder', 12728:'a basicordering agreementboa or a blanketpurchase agreement bpa issued under part 13 see 13.303, in addition tothe agency offering and', 12729:'sbaaccepting the boa or bpa itself. b sba will not accept for award on a solesource basis any order that', 12730:'would cause the total dollar amount of orders issued undera specific boaor bpa to exceedthe competitive threshold amount in 19.8051.', 12731:'c once an 8a participants program term expires, the participant otherwise exits the 8a program, or becomes other than small', 12732:'for the naicscodeassigned under the boa or thebpa, sbawill not accept new orders under the boaor bpa for the participant.', 12733:'19.8046 indefinite delivery contracts. a separate offers and acceptances are not required for individual orders under multipleawardcontracts including the federal', 12734:'supply schedules managed by gsa, multiagency contracts or governmentwide acquisition contracts, or indefinite delivery, indefinitequantityidiq contracts that have been setaside', 12735:'for exclusivecompetition among 8a contractors, and the individual order is to be competed among all 8a contract holders. sbas acceptance', 12736:'of the original contract is valid for theterm of the contract. offers andacceptancesare required for individual orders under multipleawardcontracts that', 12737:'have not been set aside for exclusive competition among 8a contractors. b the contractingofficer may issue an order on a', 12738:'sole source basiswhen— 1 the multipleaward contract was set aside for exclusive competition among 8a participants; 2 the order has', 12739:'an estimated value less than or equal to the dollar thresholds set forth at 19.8051a2; and 3 the offering and', 12740:'acceptance procedures at 19.8042 and 19.8043 are followed. c thecontracting officer may issuean orderdirectlyto one 8a contractor in accordance with', 12741:'19.504c1ii when— subpart 19.8 contracting with the small business administration the 8a program 19.8052 1 the multipleaward contract was reserved', 12742:'for 8a participants; 2 the order has an estimated value less than or equal to $7 million for acquisitions assigned', 12743:'manufacturing naics codes and $4.5 million for all other acquisitions; and 3 the offering and acceptance procedures at 19.8042 and', 12744:'19.8043 are followed. d an 8a contractor may continue to accept new orders under the contract, even if it exits', 12745:'the 8a program, or becomes other than small for the naics codes assigned to the contract. e agencies may continue', 12746:'to take credit toward their prime contracting small disadvantaged business or small business goals for orders awarded to 8a contractors,', 12747:'even after the contractors 8a program term expires, the contractor otherwise exits the 8a program, or the contractor becomes other', 12748:'than small for the naics codes assigned under the 8a contract. however, if an 8a contractor rerepresents thatitis other than', 12749:'small for thenaics codes assigned under the contractin accordance with 19.3012 or, where ownership orcontrol of the 8a contractor has', 12750:'changed and sba has granted a waiver to allow the contractor to continue performance see 13 cfr 124.515, the agency', 12751:'may not credit any subsequent orders awarded to the contractor towards its small disadvantaged business or small business goals. 19.805', 12752:'competitive 8a. 19.8051 general. a except as provided in paragraph b of this section, an acquisition offered to the sbaunder', 12753:'the8aprogramshallbe awarded on the basis of competition limited to eligible 8a participants when 1 there is a reasonable expectation that', 12754:'at least two eligible and responsible 8a participants will submit offersand that award can be made at a fair market', 12755:'price; and 2 the anticipated total value of the contract, including options, will exceed $7 million for acquisitions assigned manufacturing', 12756:'north american industry classification system naics codes and $4.5 million for all other acquisitions. b where an acquisition exceeds the', 12757:'competitive threshold see paragraph a2 of this section, the sba may accept the requirement for a sole source 8a award', 12758:'if 1 there is nota reasonable expectationthat at least two eligible and responsible 8a participants will submit offers at a', 12759:'fair market price; or 2 sba accepts the requirement on behalf of a concern owned by an indian tribe or', 12760:'an alaska native corporation. c a proposed 8a requirement with an estimated value exceeding the applicable competitive threshold amount shall', 12761:'not be divided into several requirements for lesser amounts in order to use 8a sole source procedures for award to', 12762:'a single firm. d the sba associateadministratorforbusiness development may approve a contracting offices request for a competitive 8a award below', 12763:'the competitive thresholds. such requests will be approved only on a limited basis and will beprimarily grantedwhere technical competitions are', 12764:'appropriate or wherea large number ofresponsible8aparticipants are available for competition. in determining whether a request to compete below the threshold', 12765:'will be approved, the sba associate administrator for business development will, in part, consider the extent to which the contracting', 12766:'activity is supporting the 8a program on a noncompetitive basis. the agency may include recommendations for competition below the threshold', 12767:'in the offeringletter or byseparate correspondence to the sba associate administratorforbusinessdevelopment. 19.8052procedures. a offers shall be solicitedfrom those sourcesidentified in', 12768:'accordance with 19.8043. b the sba will determine theeligibility of theapparent successful offeror. eligibility is based on section8aprogram criteria see', 12769:'13 cfr 124.501g and 19.816c. 1 in either negotiated or sealed bid competitive 8a acquisitions sba will determine the eligibility', 12770:'of the apparent successful offeror and advise the contracting office within 5working daysafter receipt of the contracting offices request for', 12771:'an eligibility determination. iif sba determines that the apparent successful offeror is ineligible, thecontracting office will thensend to sba the', 12772:'identityof the next highest evaluated offeror for an eligibility determination. the processis repeateduntil sba determines that an identified offeror is', 12773:'eligible for award. iiif the contracting officer believes that the apparent successful offeror or the offerorsba has determined eligible for', 12774:'award is not responsible to perform the contract,the contracting officermust refer the matter tosba for certificate of competency consideration under', 12775:'subpart 19.6. 2 for a twostep designbuild procurement, an 8a participant must be eligible for award under the 8a program', 12776:'on theinitial date for receipt of phase one offers specifiedin the solicitation see 13 cfr 124.507d3. federal acquisition regulation 3', 12777:'in any case in which an 8a participant is determined to be ineligible, sba will notify the 8a participant of', 12778:'that determination. c any party with information questioning the eligibility of an 8a participant to continue participation in the 8a', 12779:'program or for the purposes of a specific 8a award may submit such information to the sba in accordance with', 12780:'13 cfr 124.112c. d 1 sba does not certify joint ventures, as entities, into the 8a program. 2 a contracting', 12781:'officermay considera joint venture for contract award. sba doesnot approve joint ventures for competitive awards but see 13 cfr 124.501g', 12782:'for sbas determination of participant eligibility. 19.806pricing the 8a contract. athecontractingofficershallpricethe8acontractinaccordancewith subpart 15.4. if required by subpart 15.4, the sba', 12783:'shall obtain certified cost or pricing data from the 8a contractor. if thesba requests audit assistance todetermine the proposed price', 12784:'to be fair and reasonable in a sole source acquisition, the contracting activity shall furnish it to the extent it', 12785:'is available. b an 8a contract, sole source or competitive, may not be awarded if the price of the contract', 12786:'results in a cost to the contracting agency which exceeds a fair market price. c if requestedby the sba, the', 12787:'contractingofficer shall make available the data used to estimate the fair market price within 10 working days. d the negotiated', 12788:'contract price and the estimated fair market price are subject to the concurrence of the sba. in the event of', 12789:'a disagreement between the contracting officer and the sba, thesba mayappealin accordance with 19.810. 19.807estimating fair market price. a thecontracting', 12790:'officer shall estimate thefair market price of the work to be performed bythe 8a contractor. b in estimating the fair', 12791:'market price for an acquisition other than those covered in paragraph c of this section, the contracting officershalluse cost orprice', 12792:'analysis and consider commercial prices for similar products andservices, available inhouse cost estimates, data including certified cost orpricing data submittedby', 12793:'the sba or the 8a contractor,anddata obtainedfrom any other government agency. c inestimating a fair market price for a repeat', 12794:'purchase, the contracting officershallconsiderrecentaward prices for the same items or work if there is comparability in quantities, conditions, terms, and', 12795:'performance times. the estimated price should beadjusted to reflectdifferences in specifications,plans, transportation costs, packaging and packing costs, and other circumstances.', 12796:'price indices may be used as guides to determine the changes in labor and material costs. comparison of commercial prices', 12797:'for similar items may also be used. 19.808contract negotiation. 19.8081sole source. a the sba may not accept for negotiation a', 12798:'solesource 8a contract that exceeds $25 million unless the requesting agency has completed a justification in accordance with the requirements', 12799:'of 6.303. b the sba isresponsibleforinitiating negotiationswith the agencywithin thetime established by theagency. if the sba does not initiate negotiations', 12800:'within the agreed timeand the agency cannotallow additional time, the agencymay, after notifying the sba, proceed with the acquisition from', 12801:'other sources. c the sba should participate, whenever practicable, in negotiating the contracting terms. when mutually agreeable, the sba may', 12802:'authorizethe contracting officerto negotiate directly with the 8a participant. whether or notdirect negotiations take place, the sba is responsible for', 12803:'approving the resulting contract before award. d an 8a participant must represent that it is a small business in accordance', 12804:'with the size standard corresponding to the naics code assigned to the contract. e a concern must be a current', 12805:'participant in the 8a program at the time of an 8a solesource award. f an 8a participant owned byan alaska', 12806:'nativecorporation, indian tribe, native hawaiian organization, or community development corporation may not receive an 8a solesource award that is a', 12807:'followon contract to an 8a contract, if the predecessor contract was performed by another 8a participant or former 8a participant', 12808:'owned by the same alaska native corporation, indian tribe, native hawaiian organization,or communitydevelopment corporation see 13 cfr 124.109 through 124.111.', 12809:'subpart 19.8 contracting with the small business administration the 8a program 19.810 19.8082 competitive. in competitive 8a acquisitions, includingfollowon 8a', 12810:'acquisitions, subject to part15,the contracting officerconducts negotiations directly with the competing 8a participants. conducting competitive negotiations among eligible 8a participants', 12811:'prior to sbas formal acceptance of the acquisition for the 8a program may be grounds for the sbas not accepting', 12812:'the acquisition for the 8a program. 19.809 preaward considerations. 19.8091preaward survey. the contractingofficer should request a preaward survey ofthe 8a', 12813:'participantwhenever considereduseful. if theresults of the preaward survey orotherinformation availableto thecontracting officer raise substantial doubt asto theparticipants abilityto perform, thecontracting', 12814:'officer shall refer the matter to sba for certificate of competency consideration under subpart 19.6. 19.8092limitations on subcontracting and nonmanufacturerrule.', 12815:'a limitations on subcontracting. tobe awarded acontract ororder under the 8a program, the 8a participant is required to perform— 1', 12816:'for services except construction, at least 50 percent of the cost incurred for personnel with its own employees; 2 for', 12817:'supplies or products other than a procurement from a nonmanufacturer of such supplies or products, at least 50 percent of', 12818:'the cost of manufacturing the supplies or products not including the cost of materials; 3 for general construction, at least', 12819:'15 percent of the cost with its own employees not including the cost of materials; and 4 for construction by', 12820:'special trade contractors, at least 25 percent of the cost with its own employees not including the cost of materials.', 12821:'b compliance period. an 8a contractor is required to comply with the limitations on subcontracting— 1 for a contract under', 12822:'the 8a program, either by the end of the base term and then by the end of each subsequent option', 12823:'period orby the end ofthe performanceperiod for each order issued underthe contract, atthe contracting officers discretion; and 2 for an', 12824:'order competed exclusively among contractors who are 8a participants or for an order issued directly to one 8a contractor in', 12825:'accordance with 19.504c1ii, by theendof the performance period for the order. c waiver. the applicable sba district director may waive', 12826:'the provisions in paragraph b1 requiring a participant to comply with thelimitations onsubcontractingforeach period ofperformance or for eachorder. instead,the sba', 12827:'district director may permit the participant to subcontract in excess of the limitations on subcontracting where the sba districtdirector makes', 12828:'a writtendeterminationthat largeramountsof subcontracting are essentialduring certain stages of performance. 1 the 8a participant is required to provide the sba', 12829:'district director written assurance that the participant will ultimately comply with the requirementsof this sectionprior to contract completion. the contracting', 12830:'officershallreview the written assurance and inform the 8a participant of their concurrence or nonconcurrence. the 8a participant can only submitthe', 12831:'written assurance to the sba district directorupon concurrence by the contractingofficer. 2 the contractingofficer does nothavethe authority to waivethe provisions', 12832:'of this section requiring an 8a participant to comply with the limitations on subcontracting for each period of performance or', 12833:'order, even if the agency has a partnership agreement with sba. 3 where the 8a participant does not ultimately comply', 12834:'with the limitations on subcontracting by the end of the contract, sba will not grant future waivers for the 8a', 12835:'participant. d nonmanufacturer rule. see 19.505c for application of the nonmanufacturer rule, inclusive of waivers and exceptions to the nonmanufacturer', 12836:'rule. 19.810sba appeals. a the sba administrator may submit the following matters for determination to the agency head if the', 12837:'sba and the contracting officerfail to agree on them: 1 the decision not to make a particular acquisition available for', 12838:'award under the 8a program. 2 a contracting officer’s decision to rejecta specific 8a participant for award of an 8a', 12839:'contract after sba’s acceptance of the requirement for the 8a program. federal acquisition regulation 3 the terms and conditions of', 12840:'a proposed 8a contract, including thecontracting officer’s naics code designation and estimate of the fair market price. 4 a contracting', 12841:'officers decision that an acquisition previously procuredunder the8a program is anew requirement not subject to the release requirements at 13', 12842:'cfr 124.504d1 see 19.815a and d1. b 1 notification by sba of an intent to appeal to the agency head', 12843:'imustbe received by the contractingofficer within 5 working days after sba is formally notifiedof the contracting officers decision; and iimust', 12844:'be provided tothe contracting agency director for theofficeof smalland disadvantagedbusiness utilization or,forthe department of defense, the director of the office', 12845:'of small business programs. 2 sba must send the written appeal to the agency head within15 working days of sba’s', 12846:'notification of intent to appeal or the appeal may be considered withdrawn. pendingissuance of a decision by the agency head,', 12847:'the contractingofficer shall suspend actionon the acquisition. the contractingofficer need not suspend action onthe acquisition if the contracting officer makes', 12848:'awritten determination that urgent and compelling circumstancesthat significantly affect the interests ofthe united states will not permit waiting for a', 12849:'decision. c if the sba appeal is denied, the decision of the agency head shall specify the reasons for the', 12850:'denial, including the reasons why the selected participant was determined incapable of performance, if appropriate. the decision shall be made', 12851:'a part of the contract file. 19.811preparingthe contracts. 19.8111 sole source. a the contract to be awarded by the agency', 12852:'to the sba shall be prepared in accordance with agency procedures and in the same detail as would be requiredin', 12853:'a contract witha business concern. the contracting officer shall use the standard form 26 as the award form, except for', 12854:'construction contracts, in which case the standard form 1442 shall be used as required in 36.701a. b the contractingofficer shall', 12855:'prepare the contractthat thesba will award tothe 8a participantin accordance with agency procedures, as if awarding the contract directly to', 12856:'the 8a participant, except for the following: 1 the award form shall cite 41 u.s.c. 3304a5 or 10 u.s.c. 3204a5', 12857:'as appropriate as the authority for use of other than full and open competition. 2 appropriate clauses shall be included,', 12858:'as necessary, to reflect that the contract is betweenthe sba and the 8a contractor. 3 the following items shall be', 12859:'inserted by the sba: ithe sbacontract number. iithe effective date. iii the typed name of thesba’s contracting officer. iv the', 12860:'signature of the sba’s contracting officer. v the date signed. 4 the sba will obtain the signature of the 8a', 12861:'contractor prior to signing and returning the prime contract to the contracting officerforsignature. thesba will make everyeffort to obtain signatures', 12862:'and return the contract,and any subsequent bilateral modification, to the contracting officer within a maximumof 10 workingdays. c except in', 12863:'procurements where thesba will make advance payments to its 8a contractor, the agency contracting officer may, as analternative to theprocedures', 12864:'in paragraphs a and b of this subsection, use a singlecontract documentfor both theprimecontract betweenthe agencyand the sba and its8a', 12865:'contractor. the single contract document shall contain the information in paragraphs b 1, 2, and 3 of this subsection. appropriate', 12866:'blocks on the standard form sf 26 or 1442 will be asterisked and a continuation sheet appended as a tripartite', 12867:'agreement which includes the following: 1 agency acquisition office, prime contract number, name of agency contracting officer and lines for', 12868:'signature, date signed, and effectivedate. 2 the sba office, the sba contractnumber, name of the sba contracting officer, and lines', 12869:'for signature and date signed. 3 name and lines for the 8a subcontractor’s signature and date signed. d for acquisitions', 12870:'not exceeding the simplifiedacquisitionthreshold, the contracting officer may use thealternative procedures in paragraph c of this subsection with the appropriate', 12871:'simplified acquisition forms. subpart 19.8 contracting with the small business administration the 8a program 19.812 19.8112 competitive. a the contract', 12872:'will be prepared in accordance with 14.4081d, except that appropriate blocks on the standard form 26 or 1442 will be', 12873:'asterisked and a continuation sheet appended as a tripartite agreement which includes the following: 1 the agency contracting activity, prime', 12874:'contract number,name of agencycontracting officer, andlinesforsignature, datesigned,and effective date. 2 the sba office, the sba subcontract number, name of the', 12875:'sba contracting officer and lines for signature and date signed. b the process for obtaining signatures shall be as specified', 12876:'in 19.8111b4. 19.8113 contract clauses. a thecontracting officer shall insert the clause at 52.21911, special 8a contract conditions, in contracts', 12877:'between the sba and the agency when the acquisition is accomplished using the procedures of 19.8111a and b. b the', 12878:'contractingofficer shall insertthe clause at 52.21912, special 8a subcontract conditions, in contracts between the sba and its 8a contractor when', 12879:'the acquisition is accomplished using the procedures of 19.8111a and b. c thecontracting officer shall insert the clause at 52.21917,', 12880:'section 8a award, incompetitive solicitations and contracts when the acquisition is accomplished using the procedures of 19.805 and in sole', 12881:'source awards which utilize the alternative procedure in 19.8111c. d the contractingofficer shall insertthe clause at 52.21918, notification of competition', 12882:'limited to eligible 8a participants, in competitive solicitations and contracts when the acquisition is accomplished using the procedures of 19.805.', 12883:'use the clause at 52.21918 with its alternate i when competition is to be limited to 8a participants within one', 12884:'or more specific sba districts pursuant to 19.8042. e for contracts or orders resulting from this subpart, see 19.507e for', 12885:'use of 52.21914, limitations on subcontracting, and 19.507h for use of 52.21933, nonmanufacturer rule. 19.812contract administration. a thecontracting officer shall', 12886:'assign contract administrationfunctions, as required, based on the location ofthe 8a contractor see federal directory of contract administration services components', 12887:'available via the internet at https:// piee.eb.mil/pcm/xhtml/unauth/index.xhtml . b the agency shall distribute copies of the contracts in accordance with', 12888:'part 4.allcontractsandmodifications,ifany, shall be distributed to both the sba and the 8a contractor in accordance with the timeframes set forth', 12889:'in 4.201. c to the extentconsistent with the contracting activity’s capability and resources, 8a contractorsfurnishing requirementsshallbe afforded production and technical', 12890:'assistance,including, when appropriate, identification ofcausesof deficiencies in their products and suggested corrective action to make such products acceptable. d for', 12891:'8acontracts exceeding 5years including options, the contracting officer shall verify indsbs or sam that the concern is an sbacertified 8a', 12892:'participant no more than 120 days prior to the end of the fifth year of the contract. if the concern', 12893:'is not an sbacertified 8a participant,the contracting officershallnot exercise the option see 13 cfr 124.521e 2. e an8acontract,whetherinthebaseoranoptionyear,mustbeterminatedforconvenienceifthe8acontractorto which it', 12894:'was awarded transfers ownership or control of the firm or if the contract is transferred or novated for any reason', 12895:'to another firm, unless the administrator of the sba waives the requirement for contract termination 13 cfr 124.515. the administrator', 12896:'may waive thetermination requirement only ifcertain conditionsexist. moreover, a waiver of the requirement for termination is permitted only if the', 12897:'8a contractors request for waiver is made to the sba prior to the actual relinquishment of ownership or control, except', 12898:'in the case of death or incapacity where the waiver must be submitted within 60 calendar days after such an', 12899:'occurrence. the clauses in the contract entitled special 8a contract conditions and special 8a subcontract conditions require the sbaand the', 12900:'8a subcontractor to notify the contracting officer when ownership of the firm is being transferred. when the contracting officer receivesinformation', 12901:'that an 8a contractoris planning to transfer ownership or control to another firm, the contractingofficer shall take action immediately to', 12902:'preservethe option of waiving thetermination requirement. the contracting officershalldetermine the timing of theproposed transfer and itseffect on contract performance and', 12903:'mission support. ifthe contracting officerdeterminesthat thesba does not intend to waive the termination requirement, and termination of the contract would', 12904:'severely impair attainment of the agencys program objectives ormission, the contracting officer shall immediately notify the sba in writing thatthe', 12905:'agency is requesting a waiver. within 15businessdays thereafter, or such longerperiod as agreed toby the agency and the sba, theagency', 12906:'head must either confirmor withdraw therequest for waiver. unless a waiver is approved by the sba, the contracting officer must', 12907:'federal acquisition regulation terminate the contract for convenience upon receipt of a written request by the sba. this requirement for', 12908:'a convenience terminationdoes not affect thegovernments right to terminate for defaultif the cause for termination of an8acontract is other than', 12909:'the transfer of ownership or control. 19.813 protesting an8a participants eligibility orsize status. a the eligibility of an 8a participant', 12910:'for a sole source or competitive 8a requirement may not be challenged by another8aparticipant or anyother party, either to sbaor', 12911:'any administrative forum as partof abid or other contract protest see 13 cfr 124.517. b the size status of an', 12912:'8a participant nominated for an 8a sole source contract may not be protested by another 8a participant or any other', 12913:'party. c thesize status of the apparent successful offeror for competitive8aawards may be protested. the filing of a size status', 12914:'protest is limited to 1 any offeror whom thecontracting officer has not eliminated for reasons unrelated to size; 2 the', 12915:'contractingofficer; or 3 the sba districtdirector in eitherthe district office serving the geographical area inwhich the contracting activity is locatedor', 12916:'the district officethat services theapparent successful offeror, or the associate administrator for business development. d protests of competitive 8a awards', 12917:'shall follow the procedures at 19.302. for additional information, refer to 13 cfr 121.1001. 19.814 requesting a formal size determination', 12918:'8a sole source requirements. a if the size status of an 8a participant nominated for award of an 8a sole', 12919:'source contract is called into question, a request for a formal size determination may be submitted to sba pursuant to', 12920:'13 cfr 121.1001b2ii by 1 the 8a participant nominated for award of the particular sole source contract; 2 the contractingofficer', 12921:'who has been delegatedsba’s 8a contractexecution functions,where applicable, or the sba program officialwith authority to execute the 8a contract; 3', 12922:'the sba districtdirector in the district office that services the 8a participant or theassociate administrator for business development; or 4', 12923:'the sba inspector general. b sba’s government contracting area director will issuea formal size determination within 15 business days,if possible,', 12924:'after sba receives the request for a formal size determination. c an appeal of an sba size determination shall follow', 12925:'the procedures at 19.302. 19.815 release and notification requirements for non8a procurement. a once a requirement has been accepted by', 12926:'sba into the 8a program, any followon requirements see definition at 13 cfr 124.3 shall remain in the 8a program', 12927:'unless— 1 sba agrees to release the requirement from the 8a program for a followon, non8a procurement in accordance with', 12928:'13 cfr 124.504d see paragraph b of this section; or 2 there is a mandatory source see 8.002 or 8.003;', 12929:'also see paragraph f of this section. b to obtainrelease ofa requirement for a followon, non8a procurement, other than a', 12930:'mandatory source listed at 8.002 or 8.003,the contracting officershallmakea written request to,and receive concurrence from, the sba associate administrator for', 12931:'business development. c 1 the written request to the sba associate administrator for business development shall indicate i whether the', 12932:'agency has achieved its small disadvantaged business goal; ii whether the agency has achieved its hubzone, sdvosb, wosb, or small', 12933:'business goals; and iii whether the requirement is critical to the business development of the 8a contractor that is currently', 12934:'performing the requirement. 2 generally,a requirement that was previously acceptedinto the 8a program willonly be released for procurements outside the', 12935:'8a program when the contracting activity agency agrees to set aside the requirement under the small business, hubzone, sdvosb, or', 12936:'wosb programs. 3 the requirement that a followon procurement must be released from the 8a program in order for it', 12937:'to be fulfilled outside the 8a program does notapply to task or delivery orders offeredto and accepted into the 8a', 12938:'program,where the basic contract was not accepted into the 8a program. subpart 19.8 contracting with the small business administration the', 12939:'8a program 19.816 d 1whenacontractingofficerdecidesthatarequirementpreviouslyprocuredunderthe8aprogramisanew requirement and not a followonrequirementto an8a contracts, thecontracting officer shall coordinate with and submita written', 12940:'notice to the sba district office servicing the8aincumbent firm and tothe sba procurementcenterrepresentative or,if a procurementcenter representative isnot assigned, see', 12941:'19.402a indicating that the agency intends to procure the requirement outside the 8a program see 19.810a4. 2 the written notice', 12942:'shall include a copy of the acquisition plan, if available; the performance work statement pws, statement of work sow, or', 12943:'statement of objectives soo for the new contract requirement; and the values of the existing 8a contracts and the new', 12944:'contract requirement. e 1whenacontractingofficerdecidestoprocureafollowonrequirementtoan8acontractusinganexisting,limited competition contracting vehicle that is not available to all 8a participants, and the current or previous', 12945:'8a contract was available to all 8aparticipants,the contracting officer shall coordinatewith andsubmit a written noticeto thesba district office servicing the8a', 12946:'incumbent firm and tothe sba procurement centerrepresentative or,if a procurementcenter representative is not assigned, see 19.402a indicating the intent to', 12947:'do so. 2 the written notice shall include a copy of the acquisition plan, if available; thepws,sow, or soo for', 12948:'the new contract requirement; and the values of both contracts. f 1whenamandatorysourcewillbeusedforafollowonrequirementtoan8acontract,thecontractingofficer should submit a written notice to the sba', 12949:'associate administrator for business development of the intent to do so at least 30 days prior to the end of', 12950:'the contract or order in accordance with 13 cfr 124.504d4ii. 2 the written notice should include a written determination that', 12951:'a mandatory source will be used to fulfill the requirement. 19.816 exiting the 8aprogram. a except as provided in paragraph', 12952:'c of this section, when a contractor exits the 8a program, it is no longer eligible to receive new 8acontracts.', 12953:'however, the contractor remains under contractual obligation to complete existingcontracts, and any priced options that may be exercised. b if', 12954:'an 8a contractor is suspended from the program see 13 cfr 124.305, it may not receive any new 8a contracts', 12955:'unless the head of the contracting agency makes a determination that it is in the best interest of the government', 12956:'to issue the award and sba adopts that determination. c a contractor that has completed its term of participation in', 12957:'the 8a program may be awarded a competitive 8a contract ifitwas an 8a participant eligible for awardof the contract on', 12958:'the initialdate specified for receipt of offers contained in the solicitation, and if the contractor continues to meet all other', 12959:'applicable eligibility criteria see 13 cfr 124.507d. d sbas regulations on exiting the 8a program are found at 13 cfr', 12960:'124.301 through 124.305, and 13 cfr 124.507d. this page intentionally left blank. 19.812 subpart 19.9 [reserved] subpart 19.9 [reserved] this', 12961:'page intentionally left blank. 19.92 subpart 19.10 [reserved] subpart 19.10 [reserved] this page intentionally left blank. 19.102 subpart 19.11 [reserved]', 12962:'subpart 19.11 [reserved] this page intentionally left blank. 19.112 subpart 19.12 [reserved] subpart 19.12 [reserved] this page intentionally left blank.', 12963:'19.122 subpart 19.13 historically underutilized business zone hubzone program 19.1305 subpart 19.13 historically underutilized business zone hubzone program 19.1301 general.', 12964:'a the historically underutilized business zone hubzone act of 1997 15 u.s.c.631 note created the hubzone program. b the purpose', 12965:'of the hubzone program is to provide federal contracting assistance for qualified small business concerns located inhistorically underutilized business zones,', 12966:'in an effort to increase employment opportunities, investment, and economic development in those areas. 19.1302 [reserved]. 19.1303 status as a', 12967:'hubzone small business concern. a status as a hubzone small business concern is determined by the small business administration sba', 12968:'in accordance with 13 cfr part 126. b if sba determines that a concern is a hubzone small business, it', 12969:'will designate the concern as a hubzone small business in the dynamic small business search dsbs at https://web.sba.gov/pronet/search/dspdsbs.cfm. sbas designation', 12970:'also appears in sam. only firms designated in dsbs and sam as hubzone small business concerns are eligible for hubzone', 12971:'preferences. hubzone preferences are not contingent on the place of performance. c a joint venture may be considered a hubzone', 12972:'small business concern if— 1 the joint venture qualifies as small under 19.3011a2i; 2 at least one party to the', 12973:'joint venture is a hubzone small business concern; and 3 the joint venture complies with 13 cfr 126.616a through c.', 12974:'d to be eligible for a hubzone contract under this section, ahubzone small business concern mustbe a hubzone small business', 12975:'concernat the timeof its initial offer. 19.1304 exclusions. this subpart does not apply to a requirements that can be satisfied', 12976:'through award to 1 federal prison industries, inc. see subpart 8.6; or 2 abilityone participating nonprofit agencies for the blind', 12977:'or severely disabled see subpart 8.7; b orders under indefinitedelivery contracts see subpart 16.5. but see 16.505b2if for discretionary setasides', 12978:'of orders; c orders against federal supply schedules see subpart 8.4. but see 8.4055 for discretionary setasides of orders; d', 12979:'requirements currently being performed by an 8a participant or requirements sba has accepted for performance under the authority of the', 12980:'8a program, unless sba has consented to release the requirements from the 8a program; or e requirements for commissary or', 12981:'exchange resale items. 19.1305 hubzone setasideprocedures. a thecontracting officer 1 shall comply with 19.203 before deciding to set aside an', 12982:'acquisition under the hubzone program; 2 may set aside acquisitions exceeding the micropurchase threshold for competition restricted to hubzone small', 12983:'business concerns when the requirements of paragraph b of this section can be satisfied; and 3 shall consider hubzone setasides', 12984:'before considering hubzone solesource awards see 19.1306 or small business setasides see subpart 19.5. b to set aside an acquisition', 12985:'for competition restricted to hubzone smallbusinessconcerns, the contracting officer must have a reasonable expectation that 1 offers will be receivedfrom', 12986:'two or more hubzone small business concerns; and 2 award will be made ata fair marketprice. c if the contracting', 12987:'officerreceives only one acceptable offer from ahubzone small business concern in responseto a set aside, thecontracting officer should make an', 12988:'award to that concern. if the contracting officer receives no acceptable offers from hubzone small business concerns, the hubzone setaside', 12989:'shall be withdrawn and the requirement, if still valid, set aside for small business concerns, as appropriate see 19.203. 19.1306', 12990:'federal acquisition regulation d the procedures at 19.2021 and, at 19.402 apply to this section. 1 when the sba intends', 12991:'to appeal a contracting officer’s decision to reject a recommendation of the sba procurement center representative or, ifa procurement center', 12992:'representativeis not assigned,see 19.402a to set aside an acquisition for competition restricted to hubzone small business concerns, the sba procurement', 12993:'center representative shall notify the contractingofficer, in writing, of its intent within5 business days of receiving the contracting officer’s notice', 12994:'of rejection. 2 upon receipt ofnotice of sba’s intentto appeal, the contracting officer shall suspend action on the acquisition until', 12995:'the head of the contracting activity issues a written decision on the appeal, unless the head of the contracting activity', 12996:'makes a written determinationthat urgent and compellingcircumstances, which significantly affectthe interests ofthe government, exist. 3 within 15 business daysof sba’s', 12997:'notificationto thecontracting officer,sba must file its formal appeal with the head of the agency, or the appeal will be deemed', 12998:'withdrawn. the head of the agency shall reply to sba within 15business days of receiving the appeal. the decision of', 12999:'the head of the agency shall be final. 19.1306 hubzone solesource awards. a a contractingofficer shall consider a contract awardto', 13000:'a hubzonesmall business concern on a solesource basis see 6.3025b5 before considering a small business setaside see 19.203 and subpart', 13001:'19.5, provided none of the exclusions at 19.1304 apply; and 1 the contractingofficer does nothavea reasonable expectation that offerswould be', 13002:'received fromtwo ormore hubzone small business concerns; 2 the anticipated price of the contract, including options, will not exceed i', 13003:'$7 million for a requirement within the north american industry classification system naics codes for manufacturing; or ii $4.5 million', 13004:'for a requirement within all other naics codes; 3 the requirement is not currently being performed by an 8a participant', 13005:'under the provisions of subpart 19.8 or has been accepted as a requirement by sba under subpart 19.8; 4 the', 13006:'hubzone small business concern has been determined to be a responsible contractor with respect to performance; and 5 award can', 13007:'be made at a fair and reasonableprice. b the sba has therightto appeal the contracting officer’s decision not to make', 13008:'a hubzone solesource award see 13 cfr 126.610. 19.1307 price evaluation preference for hubzone small business concerns. a the price', 13009:'evaluation preference for hubzone small business concerns shall be used in acquisitions conducted using full and open competition. the preference', 13010:'shall not be used 1 where price is not a selection factor so that a price evaluation preference would not', 13011:'be considered e.g., architect/ engineer acquisitions; 2 where all fair and reasonable offers are accepted e.g., the award of multiple', 13012:'award schedule contracts; or 3 for the reserved portion of a solicitation for a multipleaward contract see 19.503. b the', 13013:'contractingofficer shall give offersfrom hubzone small business concerns a price evaluation preference by addinga factor of10 percent to all offers,', 13014:'except 1 offers from hubzone small business concernsthat have not waived the evaluation preference; or 2 otherwise successful offers from', 13015:'smallbusinessconcerns. c the factor of 10 percent shall be applied on a line item basis or to any group of', 13016:'items on which award may be made. otherevaluation factors, such as transportation costs or rentfree use of government property, shall', 13017:'be added to the offer to establish the base offerbefore addingthe factor of 10 percent. d when the two highest', 13018:'ratedofferorsare a hubzone smallbusinessconcern and a large business, and the evaluated offer ofthe hubzone small business concern isequal to the', 13019:'evaluated offerof the large business after considering the price evaluationpreference, the contracting officer shall awardthe contract tothe hubzone small business', 13020:'concern. subpart 19.13 historically underutilized business zone hubzone program 19.1309 19.1308 [reserved]. 19.1309 contract clauses. a thecontracting officer shall insert', 13021:'the clause 52.2193, notice of hubzone setaside or solesource award, in solicitations and contracts for acquisitions that are set aside', 13022:'or awarded on a solesource basis to, hubzone small business concerns under 19.1305 or 19.1306. this includes multipleaward contracts when', 13023:'orders may be set aside for hubzone small business concerns as described in 8.4055 and 16.505b2if or when orders may', 13024:'be issued directly to one hubzone small business concern in accordance with 19.504c1ii. b the contractingofficer shall insertthe clause at', 13025:'52.2194, notice of price evaluation preference for hubzone small business concerns, in solicitations and contracts for acquisitions conducted using full', 13026:'and open competition. c for use of clause 52.21914, limitations on subcontracting, see the prescription at 19.507e. d for use', 13027:'of clause 52.21933, nonmanufacturer rule, see the prescription at 19.507h. this page intentionally left blank. 19.134 subpart 19.14 servicedisabled veteranowned', 13028:'small business program 19.1405 subpart 19.14 servicedisabled veteranowned small business program 19.1401 general. a theveterans benefit act of2003 15 u.s.c.', 13029:'657f created the procurement program for small business concerns owned and controlled byservicedisabled veterans commonly referred to as the servicedisabled', 13030:'veteranowned small business sdvosb program. b the purpose of the sdvosb program is to provide federal contracting assistance to servicedisabled', 13031:'veteranowned small business concerns. 19.1402 applicability. the proceduresin this subpart apply toallfederal agencies that employ oneor more contracting officers. 19.1403', 13032:'status. a status as an sdvosb concern is determined by sba in accordance with 13 cfr part 128; also see', 13033:'19.307. b for an sdvosbconcern thatseeks an sdvosbsetasideor solesource contract,the contracting officer shall verify that the offeror— 1 effective january', 13034:'1,2024, is designated inthe system for award management sam asan sdvosb concern certified by sba; or 2 has represented that', 13035:'it is an sdvosb concern in sam and submitted an application for certification to sba on or before december 31,', 13036:'2023. pending applications for certificationare inthe sba veteran small business certification program database at https://veterans.certify.sba.gov. c if there is a', 13037:'decision issued by sba as a result of a current eligibility examination finding that the concern did not qualify as', 13038:'an sdvosb concern eligibleunder thesdvosb program or sba denies a concern’s applicationforsdvosb certification, the concernmust update its sdvosb status in', 13039:'sam within 2 days of sba’s final decision toreflect that the concern is not an eligible sdvosb. sba will update', 13040:'the concern’s sdvosb status in sam within 2 days of theconcern’s failure to make the update. d effective january 1,2024,', 13041:'ajoint venturemay be consideredan sdvosbconcern eligible under the sdvosb program if— 1 the joint venture qualifies as small under 19.3011a2i;', 13042:'2 the managing sdvosb joint venture partner— i is designated in sam as an sdvosb concern certified by sba; or', 13043:'ii has represented that it is an sdvosb concern in sam and submitted an application for certification to sba on', 13044:'orbefore december 31, 2023. pending applications for certification are in the sba veteran small business certification database at https://veterans.certify.sba.gov; and', 13045:'3 the joint venture complies with the requirements of 13 cfr 128.402. 19.1404 exclusions. this subpart does not apply to', 13046:'a requirements that can be satisfied through award to 1 federal prison industries, inc. see subpart 8.6; 2 abilityone participating', 13047:'nonprofit agencies for the blind or severely disabled see subpart 8.7; b orders under indefinitedelivery contracts see subpart 16.5. but', 13048:'see 16.505b2if for discretionary setasides of orders; c orders against federal supply schedules see subpart 8.4. but see 8.4055 for', 13049:'discretionary setasides of orders; or d requirements currently being performed by an 8a participant or requirements sba has accepted for', 13050:'performance under the authority of the 8a program, unless sba has consented to release the requirements from the 8a program.', 13051:'19.1405 setaside procedures. a thecontracting officer 1 shall comply with 19.203 before deciding to set aside an acquisition under the', 13052:'sdvosb program; 2 may setaside acquisitions exceeding the micropurchase threshold for competition restricted to sdvosb concerns when the requirements of', 13053:'paragraph b of this section can be satisfied; and 19.1406 federal acquisition regulation 3 shall consider sdvosb setasides before considering', 13054:'sdvosb sole source awards see 19.1406 or small business setasides see subpart 19.5. b a contracting officermay restrictcompetition tosdvosb concerns', 13055:'eligible underthe sdvosbprogram if there is a reasonable expectation based on market research that— 1 two or more sdvosbconcerns eligibleunder', 13056:'thesdvosb program will submitoffers; and 2 award will be made ata fair marketprice. c effectivejanuary 1, 2024, thecontracting officer shall—', 13057:'1 verify that offers received are eligible for consideration for award by checking if the offeror— i is designated in', 13058:'sam as an sdvosb concern certified by sba; or ii has represented that it is an sdvosb concern in sam', 13059:'and submitted an application for certification to sba on orbefore december 31, 2023. pending applications for certification are in the', 13060:'sba veteran small business certification database at https://veterans.certify.sba.gov; 2 proceed with the offerevaluation, ifthe offeror meetsthe criteria in paragraph c1i', 13061:'or iiof this section;or 3 remove the offeror from consideration, if theofferor doesnot meet the criteria in paragraphc1ior ii ofthis', 13062:'section,as the offeror is not eligible for award. d if the contracting officer receives only one acceptableoffer froman sdvosb concern', 13063:'eligible underthe sdvosb program in responseto a setaside, the contractingofficer should make an award to thatconcern. if thecontracting officer receivesno', 13064:'acceptableoffers from sdvosb concerns eligible under the sdvosb program, the sdvosb setaside shall be withdrawn and the requirement, if still', 13065:'valid, set aside for small business concerns, as appropriate see 19.203. e the procedures at 19.2021 and, except for acquisitions', 13066:'not exceeding the simplified acquisition threshold, at 19.402 apply tothissection. when the sba intends to appeal a contracting officer’s decision', 13067:'toreject a recommendation of the sba procurementcenterrepresentative or, if a procurement center representative is not assigned, see 19.402a to set', 13068:'aside an acquisition for competition restricted to sdvosb concerns, the sba procurement center representative shall notify the contracting officer, inwriting,', 13069:'of its intent within 5 working days of receivingthe contracting officer’s notice ofrejection. upon receipt ofnotice of sba’s intentto appeal,', 13070:'the contracting officer shall suspend action on the acquisition unless the head of the contracting activity makes a written determination', 13071:'that urgent and compelling circumstances,which significantly affect the interests of the government, exist. within15 working days of sba’s notification to', 13072:'the contracting officer, sba shall file its formal appeal with the head ofthe contracting activity, or that agencymay considerthe appeal', 13073:'withdrawn. the head of the contracting activity shall reply to sba within 15 working days of receiving the appeal. the', 13074:'decision of the head of the contracting activity shall be final. 19.1406 solesource awards. a a contractingofficer shall consider a', 13075:'contract awardto a sdvosb concern on asolesource basis see 6.3025b6, before considering small business setasides see 19.203 and subpart 19.5', 13076:'provided none of the exclusions of 19.1404 apply and— 1 the contractingofficer does nothavea reasonable expectation that offerswould be received', 13077:'fromtwo ormore servicedisabled veteranowned small business concerns; 2 the anticipated award price of the contract, including options, will not exceed', 13078:'i $7 million for a requirement within the naics codes for manufacturing; or ii $4 million for a requirement within', 13079:'any other naics code; 3 the requirement is not currently being performed by an 8a participant under the provisions of', 13080:'subpart 19.8 or has been accepted as a requirement by sba under subpart 19.8; 4 the servicedisabled veteranowned small business', 13081:'concern has been determined to be a responsible contractor with respect to performance; and 5 award can be made at', 13082:'a fair and reasonableprice. b effective january 1,2024, acontracting officer shall only award a solesource contract to a concern that—', 13083:'1 is designated in sam as an sdvosb concern certified by sba; or 2 has represented that it is an', 13084:'sdvosb concern in sam and submitted an application for certification to sba on or before december 31, 2023. pending applications', 13085:'for certificationare inthe sba veteran small business certification program database at https://veterans.certify.sba.gov. c thesba has the right to appeal the', 13086:'contracting officer’s decision notto make ansdvosb solesource award. subpart 19.14 servicedisabled veteranowned small business program 19.1408 19.1407 [reserved] 19.1408 contract', 13087:'clauses. a thecontracting officer shall insert the clause at 52.21927, notice of setaside for, orsolesource award to, service disabled veteranowned', 13088:'small business sdvosb concernseligible under the sdvosb program, in solicitations and contracts for acquisitions that are set aside or awarded', 13089:'on a solesource basis to, servicedisabled veteranowned small business concerns under 19.1405 and 19.1406. this includes multipleaward contracts when orders', 13090:'may be set aside for servicedisabled veteranowned small business concerns as described in 8.4055 and 16.505b2if or when orders may', 13091:'be issued directly to one servicedisabled veteranowned small business contractor in accordance with 19.504c1ii. b for use of clause 52.21914,', 13092:'limitations on subcontracting, see the prescription at 19.507e. c for use of clause 52.21933, nonmanufacturer rule, see the prescription at', 13093:'19.507h. this page intentionally left blank. 19.144 subpart 19.15 womenowned small business program. 19.1505 subpart 19.15 womenowned small business program.', 13094:'19.1500 general. a section 8m of the small business act 15 u.s.c. 637m created the womenowned small business wosb program.', 13095:'b the purpose of the wosb program is to ensure womenowned small business concerns have an equal opportunity to participate', 13096:'in federal contracting and to assist agencies in achieving their womenowned small business participation goals see 13 part cfr 127.', 13097:'c an economically disadvantaged womenowned small business edwosb concern and a wosb concern eligible under the wosb program are subcategories', 13098:'of “womenowned small business concern” as defined in section 2.101. 19.1501 [reserved] 19.1502 applicability. the proceduresin this subpart apply toallfederal', 13099:'agencies that employ oneor more contracting officers. 19.1503 status. a status as an edwosb concern or wosb concern eligible under', 13100:'the wosb program is determined by the small business administration in accordance with 13 cfr part 127. b for a', 13101:'wosb that seeksa wosb or edwosb setaside or solesource contract, the contracting officer shall verify that theofferor— 1 is registered', 13102:'in the system for award managementsam;and 2 is designated as a certified edwosb or wosb concern in sam see 19.1505d', 13103:'for set aside procedures. pending applications for certification are only in the dynamic small business search dsbs at https://web.sba.gov/pronet/search/ dspdsbs.cfm.', 13104:'c if there is a decision issued by sba as a result of a current eligibility examination finding that the', 13105:'concern did not qualify as an edwosb concern or wosb concern eligible under the wosb program, the contracting officer may', 13106:'terminate the contract, and shall not exercise any option, or award further task or delivery orders. agencies shall not count', 13107:'or include the award toward the small business goals for an edwosb concern or wosb concern eligible under the wosb', 13108:'program and must update fpds from the date of award to reflect the final sba decision. d a joint venture', 13109:'may be considered an edwosb concern or wosb concern eligible under the wosb program if the edwosb or wosb participant', 13110:'is certified in sam see section 19.1505d for setaside procedures and the joint venture meets the requirements of 13 cfr', 13111:'127.506. 19.1504 exclusions. this subpart does not apply to a requirements that an 8a contractor is currently performing under the', 13112:'8a program or that sba has accepted for performance under the authority of the 8a program, unless sba has consented', 13113:'to release the requirements from the 8a program; b requirements that can be satisfied through award to mandatory government sources', 13114:'see section 8.002; c orders under indefinitedelivery contracts see subpart 16.5. but see 16.505b2if for discretionary setasides of orders; or', 13115:'d orders against federal supply schedules see subpart 8.4. but see 8.4055 for discretionary setasides of orders. 19.1505 setaside procedures.', 13116:'a thecontracting officer 1 shall comply with 19.203 before deciding to set aside an acquisition under the wosb program; 2', 13117:'i may set aside acquisitions exceeding the micropurchase threshold for competition restricted to edwosb concerns when the acquisition is assigned', 13118:'a naics code in which sba has determined that wosb concerns are underrepresented in federal procurement; or ii is assigned', 13119:'a naics code in which sba has determined that wosb concerns are substantially underrepresented in federal procurement,as specified on sba’s', 13120:'web site at http://www.sba.gov/wosb. 19.1505 federal acquisition regulation b for requirements in naics codes designated by sba as underrepresented, acontracting', 13121:'officer may restrict competitionto edwosbconcerns if the contracting officer has a reasonable expectationbased on market research that 1 two or', 13122:'more edwosb concerns will submit offersforthe contract and; 2 contract award will be made at a fair and reasonable price.', 13123:'c a contractingofficer may restrict competition to wosb concerns eligible under the wosb program including edwosb concerns, for requirements in', 13124:'naics codes designated by sba as substantially underrepresented if there is a reasonable expectation based on market research that 1', 13125:'two or more wosb concerns eligibleunder thewosb programincluding edwosb concerns, will submit offers and; 2 contract award may be made', 13126:'at a fair and reasonable price. d an edwosb or wosb concern may submit an offer under an edwosb or', 13127:'wosb setaside when the offeror— 1 qualifies as a small business concern under the size standard corresponding to the naics', 13128:'code assigned to the contract; and 2 i for an edwosb setaside, is certified pursuant to 13 cfr 127.300 as', 13129:'an edwosb or has a pending application for edwosb certification in the dsbs see 13 cfr 127.504a; or ii for', 13130:'a wosb setaside, is certified pursuant to 13 cfr 127.300 as an edwosb or wosb, or has a pending application', 13131:'for edwosb or wosb certification in the dsbs see 13 cfr 127.504a. e thecontracting officer shall verify that offers receivedare', 13132:'eligible for considerationforaward by checking sam to see if the edwosb or wosb concern is designated as a certified concern', 13133:'or checking dsbs for a pending application for certification. 1 if the offeroris designated as certified in sam or has', 13134:'a pending application for certification in dsbs, proceed with theoffer evaluation. 2 unlessthe offeror is designated as certified insam or', 13135:'has a pending applicationforcertification in dsbs, the offer is not eligible for award and shall be removed from consideration. f', 13136:'priorto award, the contracting officer shall verify the apparentlysuccessfulofferor is certified in sam, or has a pending application for certification', 13137:'in dsbs. if theapparently successful offerors edwosb or wosb certification is pending in dsbs, the contracting officer shall notifysbas director/government', 13138:'contracting by email at wosbpendingcertification@sba.gov, and requestsbas status determination. the contracting officer shall provide sba with theofferorsname,unique entity identifier, type', 13139:'of setaside, naics code,andsolicitation number. 1 within 15 calendardays from the date of thecontracting officers notification, sbawill make adetermination regarding', 13140:'theofferorsstatus as anedwosb or wosbeligible under the wosb program. 2 if the contracting officer does not receive a determination from', 13141:'sbawithin 15 calendar days, the contracting officer at their discretion, may provide sba additional time to make a determination, or', 13142:'may proceed with award to the next highest evaluated offeror. 3 the contractingofficer shall not make award to an offeror', 13143:'who isnot acertifiededwosb or wosb concern eligible under the wosb program. g the contractingofficer may make an award,if only one', 13144:'acceptable offer isreceived from a qualified edwosb concern or wosb concern eligible under the wosb program. h if noacceptable offers', 13145:'are received from an edwosb concern or wosb concern eligible under the wosb program, the setaside shall be withdrawn and', 13146:'the requirement, if still valid, must be considered for set aside in accordance with 19.203 and subpart 19.5. i the', 13147:'sba procurement center representative pcr may recommend use of the wosb program. if the contracting officer rejects a recommendation by', 13148:'sbaspcr— 1 the contractingofficer shall notifythe pcr as soonas practicable; 2 sba shall notify the contracting officerof its intentto appeal', 13149:'the contracting officer’s decision no later than five business days after receiving noticeof the contractingofficer’s decision; 3 the contractingofficer shall', 13150:'suspend further actionregardingthe procurementuntil theheadof the agency issues a written decision on the appeal, unless the head of the agency', 13151:'makesa written determination thaturgentand compelling circumstances which significantlyaffect the interests of the united states compelaward of thecontract; 4 within 15', 13152:'business daysof sba’s notificationto theheadof the contractingactivity, sba shall file a formal appeal to the head of the agency, or', 13153:'the appeal will be determined withdrawn; and 5 the head ofthe agency, or designee, shall specifyin writingthe reasonsfora denialof an', 13154:'appeal brought under this section. subpart 19.15 womenowned small business program. 19.1508 19.1506 womenowned small businessprogram solesource awards. a a', 13155:'contractingofficer shall consider a contract awardto anedwosb concern on a solesource basissee 6.3025b 7 before considering small business setasides see', 13156:'19.203 and subpart 19.5 provided none of the exclusions at 19.1504 apply and 1 the acquisition is assigned a naics', 13157:'code in which sba has determined that wosb concerns are underrepresented in federal procurement; 2 the contractingofficer does nothavea reasonable', 13158:'expectation that offerswould be received fromtwo ormore edwosb concerns; and 3 the conditions in paragraph c of this section exist.', 13159:'b a contracting officershallconsider a contract award to awosb concern including edwosb concerns eligible under the wosb program on a', 13160:'solesource basis see 6.3025b7 before considering small business setasides see 19.203 and subpart 19.5 provided none of the exclusions at', 13161:'19.1504 apply and 1 the acquisition is assigned a naics code in which sba has determined that wosb concerns are', 13162:'substantially underrepresented in federal procurement; 2 the contractingofficer does nothavea reasonable expectation that offerswould be received fromtwo ormore wosb concerns', 13163:'including edwosb concerns; and 3 the conditions in paragraph c of this section exist. c 1 the anticipated award price', 13164:'of the contract, including options, will not exceed i $7 million for a requirement within the naics codes for manufacturing;', 13165:'or ii $4.5 million for a requirement within any other naics codes. 2 the edwosb concern or wosb concern has', 13166:'been determined to be a responsible contractor with respect to performance. 3 the award can be made at a fair', 13167:'and reasonable price. d a contracting officershallonly award a solesource contract to aconcern thathas been certified pursuant to 13 cfr', 13168:'127.300 as anedwosb or wosbeligible under the wosb program. contracting officersshallnot request a status determination from sba on pending applications', 13169:'for certification for edwosb or wosb solesource awards. e thesba has the right to appeal the contracting officer’s decision notto', 13170:'make a solesource award to either an edwosb concern or wosb concern eligible under the wosb program. 19.1507 [reserved] 19.1508', 13171:'contract clauses. a thecontracting officer shall insert the clause at 52.21929, notice of setaside for, orsolesource award to, economically disadvantaged', 13172:'womenowned small business concerns, in solicitations and contracts for acquisitions that are set aside or awarded on a solesource basis', 13173:'to, edwosb concerns under 19.1505b or 19.1506a. this includes multiple award contracts when orders may be set aside for edwosb', 13174:'concerns as described in 8.4055 and 16.505b2if or when orders may be issued directly to one edwosb contractor in accordance', 13175:'with 19.504c1ii. b the contractingofficer shall insertthe clause at 52.21930,notice of setasidefor, or solesource award to,women ownedsmallbusiness concerns eligible under', 13176:'thewomenownedsmallbusinessprogram, insolicitationsand contracts for acquisitions that are set aside or awarded on a solesource basis to wosb concerns under 19.1505c', 13177:'or 19.1506b. this includes multipleaward contracts when orders may be set aside for wosb concerns eligible under the wosb program', 13178:'as described in 8.4055 and 16.505b2if or when orders may be issued directly to one wosb contractor in accordance with', 13179:'19.504c1ii. c for use of clause 52.21914, limitations on subcontracting, see the prescription at 19.507e. d for use of clause', 13180:'52.21933, nonmanufacturer rule, see the prescription at 19.507h. this page intentionally left blank. 19.154 part 20 reserved this page intentionally', 13181:'left blank. part 20 reserved this page intentionally left blank. 20.02 part 21 reserved this page intentionally left blank. part', 13182:'21 reserved this page intentionally left blank. 21.02 part 22 application of labor laws to government acquisitions sec. 22.000 scope', 13183:'of part. 22.4042 general requirements. 22.001 definitions. 22.4043 procedures for requesting wage determinations. subpart 22.1 basic labor policies 22.4044 solicitations', 13184:'issued without wage 22.101 labor relations. determinations for the primary site of the 22.1011 general. work. 22.1012 contract pricing and', 13185:'administration. 22.4045 expiration of project wage determinations. 22.1013 reporting labor disputes. 22.4046 modifications of wage determinations. 22.1014 removal of items', 13186:'from contractors’ facilities 22.4047 correction of wage determinations affected by work stoppages. containing clerical errors. 22.102 federal and state labor', 13187:'requirements. 22.4048 notification of improper wage determination 22.1021 policy. before award. 22.1022 administration. 22.4049 award of contract without required wage', 13188:'22.103 overtime. determination. 22.1031 definition. 22.40410 posting wage determinations and notice. 22.1032 policy. 22.40411 wage determination appeals. 22.1033 procedures. 22.40412', 13189:'labor standards for contracts containing 22.1034 approvals. construction requirements and option 22.1035 contract clauses. provisions that extend the term of', 13190:'the contract. subpart 22.2 convict labor 22.405 [reserved] 22.201 general. 22.406 administration and enforcement. 22.202 contract clause. 22.4061 policy. 22.4062', 13191:'wages, fringe benefits, and overtime. subpart 22.3 contract work 22.4063 additional classifications. hours and safety standards act 22.4064 apprentices and', 13192:'trainees. 22.300 scope of subpart. 22.4065 subcontracts. 22.301 statutory requirement. 22.4066 payrolls and statements. 22.302 liquidated damages and overtime pay.', 13193:'22.4067 compliance checking. 22.303 administration and enforcement. 22.4068 investigations. 22.304 variations, tolerances, and exemptions. 22.4069 withholding from or suspension of', 13194:'contract 22.305 contract clause. payments. 22.40610 disposition of disputes concerning subpart 22.4 labor standards for construction contract labor standards contracts', 13195:'involving construction enforcement. 22.400 scope of subpart. 22.40611 contract terminations. 22.401 definitions. 22.40612 cooperation with the department of labor. 22.402', 13196:'applicability. 22.40613 semiannual enforcement reports. 22.403 statutory, executive order, and regulatory 22.407 solicitation provision and contract clauses. requirements. 22.4031 construction', 13197:'wage rate requirements subpart 22.5 use of project labor statute. agreements for federal construction projects 22.4032 copeland act. 22.501 scope', 13198:'of subpart. 22.4033 contract work hours and safety standards. 22.502 definitions. 22.4034 executive orders 13658 and 14026. 22.503 policy. 22.4035', 13199:'executive order 13706. 22.504 general requirements for project labor 22.4036 department of labor regulations involving agreements. construction. 22.505 solicitation provision', 13200:'and contract clause. 22.404 construction wage rate requirements statute wage determinations. 22.4041 types of wage determinations. subpart 22.6 contracts for', 13201:'materials, 22.10034 administrative limitations, variations, supplies, articles, and equipment 22.601 [reserved] 22.602 statutory requirements. 22.603 applicability. 22.604 exemptions. 22.6041 statutory', 13202:'exemptions. 22.6042 regulatory exemptions. 22.605 rulings and interpretations of the statute. 22.606 [reserved] 22.607 [reserved] 22.608 procedures. 22.609 [reserved] 22.610', 13203:'contract clause. subpart 22.7 [reserved] subpart 22.8 equal employment opportunity 22.800 scope of subpart. 22.801 definitions. 22.802 general. 22.803 responsibilities.', 13204:'22.804 affirmativeactionprograms. 22.8041 nonconstruction. 22.8042 construction. 22.805 procedures. 22.806 inquiries. 22.807 exemptions. 22.808 complaints. 22.809 enforcement. 22.810 solicitation provisions and', 13205:'contract clauses. subpart 22.9 nondiscrimination because of age 22.901 policy. 22.902 handling complaints. subpart 22.10 service contract labor standards 22.1000', 13206:'scope of subpart. 22.1001 definitions. 22.1002 statutory and executive order requirements. 22.10021 general. 22.10022 wage determinations based on prevailing rates.', 13207:'22.10023 wage determinations based on collective bargainingagreements. 22.10024 application of the fair labor standards act minimum wage. 22.10025 executive orders', 13208:'13658 and 14026. 22.10026 executive order 13706. 22.1003 applicability. 22.10031 general. 22.10032 geographical coverage of the act. 22.10033 statutory exemptions.', 13209:'222 22.10035 22.10036 22.10037 22.1004 22.1005 22.1006 22.1007 22.1008 22.10081 22.10082 22.1009 22.10091 22.10092 22.10093 22.10094 22.1010 22.1011 22.1012 22.10121', 13210:'22.10122 22.1013 22.1014 22.1015 22.1016 22.1017 22.1018 22.1019 22.1020 22.1021 22.1022 22.1023 22.1024 22.1025 22.1026 22.1101 22.1102 22.1103 tolerances, and', 13211:'exemptions. some examples of contracts covered. repair distinguished from remanufacturing of equipment. questions concerning applicability of the service contract labor', 13212:'standards statute. department of labor responsibilities and regulations. [reserved] solicitation provisions and contract clauses. requirement to obtain wage determinations. procedures', 13213:'for obtaining wage determinations. obtaining wage determinations. successorship with incumbent contractor collective bargaining agreement. place of performance unknown. general. attempt', 13214:'to identify possible places of performance. all possible places of performance identified. all possible places of performance not identified. notification', 13215:'to interested parties under collective bargaining agreements. [reserved] applicability of revisions to wage determinations. prevailing wage determinations. wage determinations based', 13216:'on collective bargainingagreements. review of wage determination. delay over 60 days in bid opening or commencement of work. discovery of', 13217:'errors by the department of labor. statement of equivalent rates for federal hires. [reserved] notification to contractors and employees. additional', 13218:'classes of service employees. seniority lists. request for hearing. withholdingof contractpayments. terminationfordefault. cooperationwith the departmentof labor. ineligibility of violators. disputes', 13219:'concerning labor standards. subpart 22.11 professional employee compensation applicability. definition. policy, procedures, and solicitation provision. subpart 22.12 [reserved] subpart 22.13', 13220:'equal subpart 22.17 combating opportunityforveterans traffickinginpersons 22.1300 scope of subpart. 22.1301 definitions. 22.1302 policy. 22.1303 applicability. 22.1304 procedures. 22.1305 waivers.', 13221:'22.1306 department of labor notices and reports. 22.1307 collective bargaining agreements. 22.1308 complaint procedures. 22.1309 actions because of noncompliance. 22.1310', 13222:'solicitation provision and contract clauses. subpart 22.14 employment of workers with disabilities 22.1400 scope of subpart. 22.1401 policy. 22.1402 applicability.', 13223:'22.1403 waivers. 22.1404 department of labor notices. 22.1405 collective bargaining agreements. 22.1406 complaint procedures. 22.1407 actions because of noncompliance. 22.1408', 13224:'contract clause. subpart 22.15 prohibition of acquisition of products produced by forced or indentured childlabor 22.1500 scope. 22.1501 definitions. 22.1502', 13225:'policy. 22.1503 procedures for acquiring end products on the list of products requiring contractor certification as to forced or indentured', 13226:'child labor. 22.1504 violations and remedies. 22.1505 solicitation provision and contract clause. subpart 22.16 notification of employee rights under the', 13227:'national labor relations act 22.1600 scope of subpart. 22.1601 definitions. 22.1602 policy. 22.1603 exceptions. 22.1604 compliance evaluation and complaint investigations', 13228:'and sanctions for violations. 22.1605 contract clause. 22.1700 22.1701 22.1702 22.1703 22.1704 22.1705 22.1800 22.1801 22.1802 22.1803 22.1900 22.1901 22.1902', 13229:'22.1903 22.1904 22.1905 22.1906 22.2100 22.2101 22.2102 22.2103 22.2104 22.2105 22.2106 22.2107 22.2108 22.2109 22.2110 scope of subpart. applicability. definitions.', 13230:'policy. violations and remedies. solicitation provision and contract clause. subpart 22.18 employment eligibility verification scope. definitions. policy. contract clause. subpart', 13231:'22.19 increasing the minimumwage forcontractors scope of subpart. definitions. policy. applicability. annual executive order minimum wage rate. enforcement of executive', 13232:'order minimum wage requirements. contract clause. subpart 22.20 [reserved] subpart 22.21 establishing paid sick leave for federal contractors scope of', 13233:'subpart. definitions. policy. applicability. exclusions. paid sick leave for federal contractors and subcontractors. prohibited acts. waiver of rights. multiemployer plans', 13234:'or other funds, plans, or programs. enforcement of executive order 13706 paid sick leave requirements. contract clause. this page intentionally', 13235:'left blank. subpart 22.1 basic labor policies 22.1011 22.000scope of part. this part a deals with general policies regarding contractor', 13236:'labor relations as they pertain to the acquisition process; b prescribes contracting policy and procedures for implementing pertinent labor laws;', 13237:'and c prescribes contract clauses with respect to eachpertinent labor law. 22.001definitions. administrator or administrator, wage and hour division, as', 13238:'used in this part, means the— administrator wage and hourdivision u.s. department of labor washington,dc 20210 or an authorized representative.', 13239:'agency labor advisor means an individual responsible for advising contractingagency officials on federal contractlabor matters. e98 means the department of', 13240:'labor’sapproved electronic application https://www.sam.gov , whereby a contracting officer submits pertinent information to the departmentof laborandrequests a service contract laborstandards', 13241:'statute wagedetermination directly from the wage and hour division. service contract meansanygovernment contract, orsubcontract thereunder,the principal purpose ofwhich is to', 13242:'furnish services in the united states through the use of service employees, except as exempted by 41 u.s.c. chapter 67,', 13243:'service contract labor standards; see 22.10033 and 22.10034. see 22.10035 and 29 cfr 4.130 for a partial list of services', 13244:'covered by the service contract labor standards statute. service employee means any person engaged in the performance of a service', 13245:'contract other than any person employed in a bona fide executive, administrative, or professional capacity, as those terms are defined', 13246:'in 29 cfr part 541. the term service employee includes all such persons regardless of any contractual relationship that may', 13247:'be alleged to exist between a contractor or subcontractor and such persons. wage determinations at sam.gov means the government internet', 13248:'website for both construction wagerate requirements statute and service contract labor standards statute wage determinations available at https://www.sam.gov. subpart 22.1', 13249:'basic labor policies 22.101 labor relations. 22.1011 general. a agencies shall maintain sound relations with industry and labor to ensure', 13250:'1 prompt receipt of information involving labor relations that may adversely affect the government acquisition process and 2 thatthe government', 13251:'obtainsneeded supplies and services without delay. all mattersregardinglabor relations shall be handled in accordance with agency procedures. b 1 agencies', 13252:'shall remain impartial concerning any dispute between labor and contractor management and not undertake the conciliation, mediation, or arbitration of', 13253:'a labor dispute. to theextent practicable, agencies should ensure that the parties to the dispute use all available methods for', 13254:'resolving the dispute, including the services of the national labor relations board, federal mediation and conciliation service, the national mediation', 13255:'board and other appropriate federal, state, local, or private agencies. 2 for use of project labor agreements, see subpart 22.5.', 13256:'c agencies should, when practicable,exchange information concerning labor matters with other affected agencies to ensure a uniform government approach concerning', 13257:'a particular plant or labormanagement dispute. d agencies should take other actions concerning labor relations problems to the extent consistent', 13258:'with their acquisition responsibilities. for example, agencies should 1 notify the agency responsible for conciliation, mediation, arbitration, or other related', 13259:'action of the existence of any labor dispute affecting or threatening toaffect agency acquisition programs; 2 furnishto theparties to adispute', 13260:'factual information pertinent to the dispute’s potential or actual adverse impact on these programs, to the extent consistent with security', 13261:'regulations; and 22.1012 federal acquisition regulation 3 seek avoluntaryagreement between management and labor, notwithstanding thecontinuanceof the dispute,to permit uninterruptedacquisition of', 13262:'supplies and services. this shall only be done, however, if theattempt to obtain voluntary agreement does not involve the agency', 13263:'in the merits of the dispute and only after consultation with the agency responsible for conciliation, mediation, arbitration, or other', 13264:'related action. e the head of the contracting activity may designate programs or requirements for which it is necessary that', 13265:'contractors be required to notify the government of actual or potential labor disputes that are delaying or threaten to delay', 13266:'the timely contract performance see 22.1035a. 22.1012 contract pricing and administration. a contractor labor policies and compensation practices, whether or', 13267:'not included in labormanagement agreements, are not acceptable bases for allowing costs in costreimbursement contracts or for recognition of costs', 13268:'in pricing fixedprice contracts if they result in unreasonable costs to the government. for a discussion of allowable costs resulting', 13269:'from labor management agreements, see 31.2056b. b labor disputes may cause work stoppages that delay the performance of government contracts.', 13270:'contracting officers shall impressupon contractors that eachcontractor shall be held accountableforreasonably avoidabledelays. standard contract clauses dealing with default, excusable delays,', 13271:'etc., do not relieve contractors or subcontractors from the responsibility for delays that are within the contractors’ or their subcontractors’', 13272:'control. a delay caused by a strike that the contractor orsubcontractorcould not reasonably prevent can be excused;however,itcannot be excused beyond', 13273:'the point at which a reasonably diligent contractor or subcontractor could have acted to end the strike by actions such', 13274:'as 1 filing acharge withthe nationallabor relations board to permit the board to seekinjunctive reliefin court; 2 using other available', 13275:'government procedures; and 3 using private boards or organizations to settle disputes. c strikes normally result in changing patterns of', 13276:'cost incurrence and therefore may have an impact on the allowability of costs for costreimbursement contracts or for recognition of', 13277:'costs in pricing fixedprice contracts. certain costs may increase because of strikes; e.g., guard services and attorney’s fees. othercosts incurred', 13278:'during a strike may not fluctuate e.g.,fixed costs such as rent and depreciation, but because of reduced production, their proportion', 13279:'of the unit cost of items produced increases. all costs incurred during strikes shall be carefully examined to ensure recognition', 13280:'of only those costs necessary for performingthe contract inaccordancewith the government’sessential interest. d if, during a labor dispute, the inspectors’', 13281:'safety is not endangered, the normal functions of inspection at the plant of a government contractor shall be continued without', 13282:'regard to the existence of a labor dispute, strike, or picket line. 22.1013 reporting labor disputes. the office administering the', 13283:'contract shall report, in accordance with agency procedures, any potential oractual labor disputes that may interfere with performing any contracts', 13284:'under its cognizance. if a contract contains the clause at 52.2221, notice to the government of labor disputes, the contractor', 13285:'also must report any actual or potential dispute that may delay contract performance. 22.1014removal of itemsfrom contractors’ facilities affectedby work', 13286:'stoppages. a items shall beremoved from contractors’ facilities affected by workstoppages in accordance with agency procedures. agency procedures should allow', 13287:'for the following: 1 determine whether removal of items is in thegovernment’s interest. normally the determining factor isthe critical needs', 13288:'of an agency program. 2 attempt to arrange with the contractor and the union representative involved their approval of the', 13289:'shipment of urgently required items. 3 obtainappropriate approvals from within the agency. 4 determine who will remove the items from', 13290:'the plants involved. b avoid theuse orappearance of force and prevent incidents that might detrimentally affectlabormanagement relations. c when two', 13291:'or more agencies’ requirements are or may become involved in the removal of items, the contract administration office shall ensure', 13292:'that the necessary coordinationis accomplished. subpart 22.1 basic labor policies 22.1033 22.102 federaland state laborrequirements. 22.1021policy. agencies shall cooperate, and', 13293:'encourage contractors to cooperate with federal and state agencies responsible for enforcing labor requirements such as a safety; b health', 13294:'and sanitation; c maximum hours and minimum wages; d equal employment opportunity; e child and convict labor; f age discrimination;', 13295:'g disabled and vietnam veteran employment; h employment of workers with disabilities; and i eligibility for employment under united states', 13296:'immigration laws. 22.1022 administration. a agencies shall cooperate with, and encourage contractors to use to the fullest extent practicable, the', 13297:'dol employment and training administration doleta at http://www.doleta.gov, and its affiliated local offices in meeting contractors labor requirements. these requirements', 13298:'maybe tostaff new orexpanding plantfacilities,including requirements for workersin all occupations and skills from local labor market areas or through the', 13299:'federalstate employment clearance system. b local stateemploymentoffices are operated throughoutthe unitedstates, puerto rico, guam, and the u.s. virgin islands. in', 13300:'addition to providing recruitment assistance to contractors, cooperation with the local state employment service offices will furtherthe national program of', 13301:'maintaining continuous assessment of manpower requirements and resources on a national and local basis. c 1 the u.s. department of', 13302:'labor is responsible for the administration and enforcement of the occupational safety and health act. the department of labors wage', 13303:'and hour division is responsibleforadministration and enforcement of numerous wage and hour statutes including i 40 u.s.c. chapter 31, subchapter', 13304:'iv, wage rate requirements construction; ii 40 u.s.c. chapter 37, contract work hoursand safety standards; iii the copeland act 18', 13305:'u.s.c. 874 and 40 u.s.c. 3145; iv 41 u.s.c. chapter 65, contracts for materials, supplies, articles, and equipment exceeding $10,000;', 13306:'v 41 u.s.c. chapter 67, service contract labor standards. 2 contracting officersshouldcontactthe wage and hourdivision’s regional offices when required by', 13307:'the subparts relating to thesestatutes unless otherwise specified. addresses for theseoffices maybe found at 29 cfr 1, appendix b. 22.103overtime.', 13308:'22.1031 definition. normal workweek, as usedin this subpart, means, generally, a workweek of 40 hours. outside the united states andits', 13309:'outlying areas, a workweek longer than 40 hours is considered normal if 1 the workweek does not exceed the norm', 13310:'for the area, as determined by local custom, tradition, or law; and 2 the hours worked inexcess of 40 in', 13311:'the workweek are notcompensated at apremium rateof pay. 22.1032policy. contractors shall perform all contracts, so far as practicable, without using', 13312:'overtime, particularly as a regular employment practice, except when lower overallcosts tothe government will result or whenitis necessary to meet', 13313:'urgentprogramneeds. any approved overtime, extrapay shifts, and multishifts should be scheduled to achieve these objectives. 22.1033procedures. a solicitations normally shall', 13314:'not specify delivery or performance schedules that may require overtime at government expense. b in negotiating contracts, contracting officersshould, consistent', 13315:'with thegovernment’s needs, attempt to 1 ascertain the extentthat offers are basedon the payment of overtimeand shiftpremiums; and 22.1034 federal', 13316:'acquisition regulation 2 negotiate contract prices or estimated costs without these premiums or obtain the requirement from other sources. c', 13317:'when it becomes apparent during negotiations of applicable contracts see 22.1035b that overtime will be required in contractperformance, the contractingofficer', 13318:'shall secure from the contractor a request for allovertime to be used during thelife ofthe contract, to the extent thatthe', 13319:'overtime can be estimated with reasonable certainty. the contractor’s request shall contain the information required by paragraph b of the', 13320:'clause at 52.2222, payment for overtime premiums. 22.1034approvals. a thecontracting officer shall review the contractor’s request for overtime. approval of', 13321:'the useof overtime maybe grantedby an agency approving official after determining in writing that overtime is necessary to 1 meet', 13322:'essential delivery or performance schedules; 2 make up for delays beyond the control and without the fault or negligence of', 13323:'the contractor; or 3 eliminate foreseeable extended production bottlenecks thatcannot be eliminated in any other way. b approvalby the designated', 13324:'officialof use and total dollar amount of overtime is requiredbefore inclusion of an amount in paragraph a of the clause', 13325:'at 52.2222, payment for overtime premiums. c contracting officer approvalof payment ofovertime premiums is requiredfortimeandmaterials and laborhour contracts see paragraph', 13326:'a8 of the clause at 52.2327, paymentsundertimeandmaterials and laborhour contracts. d no approvals are required for paying overtime premiums under', 13327:'other types of contracts. e approvals by the agency approving officialsee 22.1034a may be for an individual contract, project, program,', 13328:'plant, division, or company, as practical. f during contract performance, contractor requests for overtime exceeding the amount authorized by paragraph', 13329:'a of the clause at 52.2222, payment for overtime premiums,shallbe submitted as stated in paragraphbof the clause to the office', 13330:'administering the contract. that officewill review the request and if it approves, sendthe request to the contractingofficer. if thecontracting officer', 13331:'determines thatthe requested overtimeshouldbe approved in whole or inpart,the contracting officer shall request the approval of the agency’s designated approving', 13332:'official and modify paragraph a of the clause toreflect any approval. g overtime premiums at government expense should not be', 13333:'approved when the contractor is already obligated, without the right to additional compensation, to meet the required delivery date. h', 13334:'when the use of overtime is authorizedunder a contract, the office administering the contract and the auditorshould periodically review the', 13335:'use of overtime to ensure that it is allowable in accordance with the criteria in part 31. only overtime premiums', 13336:'for work inthose departments, sections,etc., of the contractor’splant that have been individuallyevaluated and the necessity for overtime confirmed shall be', 13337:'considered for approval. iapprovals for using overtime shall ordinarilybe prospective, but, if justified by emergency circumstances, approvals may be retroactive.', 13338:'22.1035 contract clauses. a thecontracting officer shall insert the clause at 52.2221, notice to the government of labor disputes, in', 13339:'solicitations and contracts that involve programs or requirements that have been designated under 22.1011e. b the contractingofficer shall includethe clause', 13340:'at 52.2222, payment for overtime premiums, in solicitations and contracts when a costreimbursement contract is contemplated and the contract amount', 13341:'is expected to exceed the simplified acquisition threshold; unless 1 a costreimbursement contract for operation of vessels is contemplated; or', 13342:'2 a costplusincentivefeecontract that will provide a swing from the target fee of atleast plus or minus 3percent and a', 13343:'contractor’s share ofat least 10 percentis contemplated. subpart 22.2 convict labor 22.202 subpart 22.2 convict labor 22.201general. a executive order11755,', 13344:'december 29,1973, asamended by executive order12608, september 9,1987,and executive order12943, december 13,1994, states: the development of the occupational and educational', 13345:'skills of prison inmates is essential to their rehabilitation and totheir ability to make an effective return to free society.', 13346:'meaningfulemploymentserves to develop those skills. it is also true, however, that care must be exercised to avoid either theexploitation of', 13347:'convict labor or any unfair competition between convict labor and free labor in the production of goods and services. the', 13348:'executive order doesnot prohibit the contractor,in performing the contract, fromemploying 1 persons on parole or probation; 2 persons who have', 13349:'been pardoned or who have served their terms; 3 federal prisoners; or 4 nonfederal prisoners authorized to work at paid', 13350:'employment in the community under the laws of a jurisdiction listed in the executive order if i the worker is', 13351:'paid or is in an approved work training program on a voluntary basis; iirepresentatives oflocal union central bodies or similar', 13352:'labor union organizationshavebeenconsulted; iii paid employment will not a result in the displacement of employed workers; b be applied in', 13353:'skills, crafts, or trades in which there is a surplus of available gainful labor in the locality; or c impair', 13354:'existing contracts for services; iv the rates of pay and other conditions of employment will not be less than those', 13355:'for work of a similar nature in the locality where the work is being performed; and v the attorney general', 13356:'of the united states has certified that the workrelease laws or regulations of the jurisdiction involved are in conformity with', 13357:'therequirements of executive order11755, as amended. b department of justice regulations authorize the director of the bureau of justice assistance', 13358:'to exercise the power and authority vested in the attorney general by the executive order to certify and to revoke', 13359:'the certification of workrelease laws or regulations see 28 cfr0.941b. 22.202contract clause. insert the clause at 52.2223, convict labor, in', 13360:'solicitations and contracts above themicropurchase threshold, when the contract will be performed in the united states, puerto rico, the northern', 13361:'mariana islands, american samoa, guam, or the u.s. virgin islands; unless a the contract will be subject to 41 u.s.c.', 13362:'chapter 65, see subpart 22.6, which contains a separate prohibition against the employment of convict labor; b the supplies or', 13363:'services are to be purchased from federal prison industries, inc. see subpart 8.6; or c the acquisition involves the purchase,', 13364:'from any state prison, of finished supplies that may be secured in the open market or from existing stocks, as', 13365:'distinguished from supplies requiring special fabrication. this page intentionally left blank. 22.22 subpart 22.3 contract work hours and safety standards', 13366:'act 22.305 subpart 22.3 contract work hours and safety standards act 22.300scope of subpart. this subpart prescribes policies and procedures', 13367:'for applying the requirements of 40 u.s.c. chapter 37, contract work hours and safety standards the statute to contracts that', 13368:'may require or involve laborers or mechanics. in this subpart, the term laborers or mechanics includes apprentices, trainees, helpers, watchmen,', 13369:'guards, firefighters, fireguards, and workmen who perform services in connection with dredging or rock excavation in rivers or harbors, but', 13370:'does not include any employee employed as a seaman. 22.301 statutory requirement. the statute requires that certain contracts contain a', 13371:'clause specifying that no laborer or mechanic doing any part of the work contemplated by the contract shall be required', 13372:'or permitted to work more than 40 hours in any workweek unless paid for all suchovertime hours at not less', 13373:'than 11/2 times the basic rate of pay. 22.302 liquidated damages and overtimepay. a when an overtime computation discloses underpayments,', 13374:'the responsible contractor or subcontractor must pay the affected employee any unpaid wages and pay liquidated damages to the government.', 13375:'the contracting officer mustassess liquidated damages at the rate specified at 29 cfr 5.5b2 peraffected employee for eachcalendar day on', 13376:'which the employer required or permitted the employee to work in excess of the standard workweek of 40 hours without', 13377:'paying overtime wages required by the statute. in accordance with the federal civil penalties inflation adjustment act of 1990 28', 13378:'u.s.c. 2461 note, the department of labor adjusts this civil monetary penalty for inflation no later than january 15 each', 13379:'year. b if the contractor or subcontractor fails or refuses to comply with overtime pay requirements of the statute and', 13380:'the funds withheld by federal agencies for labor standards violations do not cover the unpaid wages due laborers and mechanics', 13381:'and the liquidated damages due the government, make payments in the following order— 1 pay laborers and mechanics the wages', 13382:'they are owed or prorate available funds if they do not cover the entire amount owed; and 2 pay liquidated', 13383:'damages. c if the head of an agency finds that the administratively determined liquidated damages due under paragraph a of', 13384:'this section are incorrect, or that the contractor or subcontractor inadvertently violated the statute despite the exercise of due care,', 13385:'the agency head may 1 reduce the amount of liquidated damages assessed for liquidated damages of $500 or less; 2', 13386:'release the contractor or subcontractor from the liability for liquidated damages of $500 or less; or 3 recommend that the', 13387:'secretary of labor reduce or waive liquidated damages over $500. d afterthe contracting officerdeterminesthe liquidated damages and the contractormakes appropriate', 13388:'payments, disburse any remaining assessments in accordance with agency procedures. 22.303 administration and enforcement. the procedures and reports required for', 13389:'construction contracts in subpart 22.4 also apply to investigations of alleged violations of the statute on other than construction contracts.', 13390:'22.304 variations, tolerances, and exemptions. a thesecretary of labor, under 40 u.s.c.3706,upon thesecretary’s initiative or at the requestof any federal', 13391:'agency, may provide reasonable limitations and allow variations, tolerances, and exemptions to and from any or all provisions of the', 13392:'statute see 29 cfr5.15. b the secretary of labor may make variations, tolerances, and exemptions from the regulatory requirements of', 13393:'applicable parts of 29 cfrwhen the secretary finds that such action is necessary and proper in the public interest or', 13394:'to prevent injustice and undue hardship see 29 cfr5.14. 22.305contract clause. insert the clause at 52.2224, contract work hoursand safety', 13395:'standardsovertimecompensation, in solicitations and contracts including, for this purpose, basic ordering agreements when the contract may require or involve the', 13396:'employment of laborers ormechanics. however, do notinclude the clausein solicitations and contracts federal acquisition regulation a valued at orbelow $150,000;', 13397:'b for commercial products and commercial services; c for transportation or the transmission of intelligence; d to be performed outside', 13398:'theunited states, puerto rico,americansamoa, guam, the u.s. virgin islands, johnston island, wakeisland, and the outer continental shelf as definedin the', 13399:'outer continental shelf lands act 43 u.s.c. 1331 29 cfr5.15; e for work to be done solely in accordance with', 13400:'41 u.s.c. chapter 65, see subpart 22.6; f for supplies that include incidental services that do not require substantial employment', 13401:'of laborers or mechanics; or g exempt under regulations of the secretary of labor 29 cfr5.15. subpart 22.4 labor standards', 13402:'for contracts involving construction 22.401 subpart 22.4 labor standards for contracts involving construction 22.400scope of subpart. this subpart implements the', 13403:'statutes which prescribe labor standards requirements for contracts in excess of $2,000 for construction, alteration, or repair, including painting and', 13404:'decorating, of public buildings and public works. see definitionof construction, alteration, or repair in section 22.401. labor relations requirements prescribed', 13405:'in other subparts of part 22 may also apply. 22.401definitions. as used in this subpart apprentice means a person 1', 13406:'employed and individually registered in a bona fide apprenticeship program registered with the u.s. department of labor,employment andtraining administration, office', 13407:'of apprenticeshiptraining, employer,and labor services oatels, orwith a state apprenticeship agencyrecognizedby oatels; or 2 who is in the first 90', 13408:'days of probationary employment as an apprentice in an apprenticeship program, and is not individually registered in the program, but', 13409:'who hasbeencertifiedby the oatels or a state apprenticeship agencywhere appropriate to be eligible for probationary employment as an apprentice. construction,', 13410:'alteration, or repair means all types of work done by laborers and mechanics employed by the construction contractor or construction', 13411:'subcontractor on a particular building or work at the site thereof, including without limitations 1 altering, remodeling, installationif appropriate on', 13412:'the site of the workof items fabricated offsite; 2 painting and decorating; 3 manufacturing or furnishing of materials, articles, supplies,', 13413:'or equipment on the site of the building or work; 4 transportation of materials and supplies between the site of', 13414:'the work within the meaning of paragraphs 1i and ii of the site of the work definition of this section,', 13415:'and a facility which is dedicated to the construction of the building or work and is deemed part of the', 13416:'site of the work within the meaning of paragraph 2 of the site of work definition of this section; and', 13417:'5 transportation of portions ofthe building or work between a secondary site where a significantportion of the building or work', 13418:'is constructed, which is part of the site of the work definition in paragraph 1ii of this section, and the', 13419:'physical place or places where the building or work will remain paragraph 1i in the site of the work definition', 13420:'of this section. laborers or mechanics. 1 means iworkers, utilizedby acontractor or subcontractor at any tier, whose duties are manual', 13421:'or physical in nature including those workers who use tools or who are performing the work of a trade, as', 13422:'distinguished from mental or managerial; iiapprentices,trainees, helpers, and, inthe case of contractssubject to the contractwork hours and safety standards statute,', 13423:'watchmen and guards; iii working foremen whodevote more than 20percent oftheir timeduring aworkweek performing dutiesof a laborer or mechanic, and', 13424:'who do not meet the criteria of 29 cfr part 541, for the time so spent; and iv every person', 13425:'performing the duties of a laborer or mechanic, regardless of any contractual relationship alleged to exist between the contractor and', 13426:'those individuals; and 2 does not include workers whose duties are primarily executive, supervisory except as provided in paragraph 1iii', 13427:'of this definition, administrative, or clerical, rather than manual. persons employed in a bona fide executive, administrative, or professional capacity', 13428:'as defined in 29 cfr part 541 are not deemed to be laborers or mechanics. public building or public work', 13429:'means building or work, the construction, prosecution, completion, or repair of which, as defined in this section, is carried on', 13430:'directly by authority of, or with funds of, a federal agency to serve the interest of the general public regardless', 13431:'of whether title thereof is in a federal agency. site of the work. 1 means i the primary site of', 13432:'the work. the physical place or places where the construction called for in the contract will remain when work on', 13433:'it is completed; and iithe secondary siteof the work, if any. any other site where a significant portion of the', 13434:'building or work is constructed, provided that such site is federal acquisition regulation a located in the united states; and', 13435:'b established specifically for the performance of the contract or project; 2 except as provided in paragraph 3 of this', 13436:'definition, includes fabrication plants, mobile factories, batch plants, borrow pits, job headquarters, tool yards, etc., provided ithey are dedicatedexclusively, or', 13437:'nearly so, to performance of thecontract or project; and ii they are adjacent or virtually adjacent to the primary site', 13438:'of the work as defined in paragraphs 1i of the secondary site of the work as defined in paragraph 1ii', 13439:'of this definition; 3 does not include permanent home offices, branch plantestablishments, fabricationplants, or tool yards of a contractor or', 13440:'subcontractor whose locations and continuance in operation are determined wholly without regard to a particular federal contract or project. in', 13441:'addition, fabrication plants, batch plants, borrow pits, job headquarters, yards, etc., of a commercial or material supplier which are established', 13442:'by a supplier of materials for the project before opening of bids and not on the project site, are not', 13443:'included in the site of the work. such permanent, previously established facilities are not a part of the site of', 13444:'the work, even ifthe operations for a period of time may bededicated exclusively,or nearly so, to the performance of a', 13445:'contract. trainee means a person registered and receiving onthejob training in a construction occupation under a program which has been', 13446:'approved in advance by the u.s. department of labor,employmentandtraining administration, office of apprenticeshiptraining, employer, and labor services oatels, asmeetingits standards', 13447:'for onthejob training programs and which has been so certified by that administration. wages means the basic hourly rate of', 13448:'pay; any contribution irrevocably made by a contractor or subcontractor to a trustee or to a third person pursuant to', 13449:'a bona fide fringe benefit fund, plan, or program; and the rate of costs to the contractor or subcontractor which', 13450:'may be reasonably anticipated in providing bonafide fringe benefits to laborers and mechanics pursuant to an enforceable commitment to carry', 13451:'out a financially responsible plan or program, which was communicated in writing to thelaborersandmechanics affected. the fringe benefits enumerated in', 13452:'the construction wage rate requirements statute include medical or hospital care, pensions on retirement or death, compensation for injuries or', 13453:'illness resulting from occupational activity, or insurance to provide any of theforegoing; unemploymentbenefits; life insurance, disability insurance, sickness insurance, or', 13454:'accident insurance; vacation or holiday pay; defraying costs of apprenticeship or other similar programs; or other bona fide fringe benefits.', 13455:'fringe benefits do not include benefits required by other federal, state, or local law. 22.402 applicability. a contracts for construction', 13456:'work. 1 the requirements of this subpart apply i only if the construction work is, or reasonably can be foreseen', 13457:'to be, performed at a particular site so that wage rates can be determined for thelocality, and only to construction', 13458:'work that is performed by laborers and mechanics at the site of the work; iito dismantling, demolition, orremoval of improvementsif', 13459:'a part of the construction contract, or if construction at that site is anticipated by another contract as provided in', 13460:'subpart 37.3; iii to the manufactureor fabrication of construction materialsand components conducted inconnectionwith the construction and on the site of', 13461:'the work by the contractor or a subcontractor under a contract otherwise subject to this subpart; and iv to painting', 13462:'of publicbuildings or publicworks, whether performedin connection with theoriginal construction or as alteration or repair of an existing structure. 2', 13463:'the requirements of this subpart do not apply to ithe manufacturing of componentsor materialsoff thesite of the work or their', 13464:'subsequent delivery to the site by the commercial supplier or materialman; ii contracts requiring construction work that is so closely', 13465:'related to research, experiment, and development that it cannot be performed separately,or that is itself the subject of research, experiment,', 13466:'ordevelopment see paragraph b of this section for applicability of this subpart to research and development contracts or portions thereof', 13467:'involving construction, alteration, or repair of a public building or public work; iii employees of railroads operating undercollective bargaining agreements', 13468:'thatare subjectto therailway labor act; or iv employees who work at contractors’ or subcontractors’ permanent home offices, fabrication shops,or tool', 13469:'yards not located at the site of the work. however, if theemployees goto thesite of the work and perform construction', 13470:'activities subpart 22.4 labor standards for contracts involving construction 22.4034 there, the requirements of this subpart are applicable for the', 13471:'actual time so spent, not including travel unless the employees transport materials or supplies to or from the site of', 13472:'the work. b nonconstruction contracts involving some construction work. 1 the requirements of this subpart apply to constructionworkto beperformed as', 13473:'part of nonconstruction contractssupply, service, research and development, etc. if i the construction work is to be performed on a', 13474:'public building or public work; ii the contract contains specific requirements for a substantial amount of construction work exceeding the', 13475:'monetary threshold for application of the construction wage rate requirements statute the word substantial relates to the type and quantity', 13476:'of construction work to be performed and not merely to the total value of construction work as compared to the', 13477:'total value of the contract; and iii the construction work is physically or functionally separate from, and is capable of', 13478:'being performed on a segregated basis from, the other work required by the contract. 2 the requirements of this subpart', 13479:'do not apply if i the construction work is incidental to the furnishing of supplies, equipment, or services for example,', 13480:'the requirements do not apply to simple installation or alteration at a public building or public work that is incidental', 13481:'to furnishing supplies or equipmentunder a supply contract; however, ifa substantial and segregable amountof construction, alteration, or repair is required,such', 13482:'as for installation of heavy generators orlarge refrigerator systemsor for plant modification or rearrangement, the requirements of this subpart apply;', 13483:'or iithe construction work is somergedwith nonconstruction workor so fragmentedin terms of the locations or time spans in which it', 13484:'is to be performed, that it is not capable of being segregated as a separate contractual requirement. 22.403 statutory, executiveorder,and', 13485:'regulatoryrequirements. 22.4031construction wagerate requirements statute. 40 u.s.c. chapter 31, subchapter iv, wage rate requirements construction, formerly knownas the davisbacon act,', 13486:'provides that contracts in excess of $2,000 to which the united states or the district of columbia is a party', 13487:'for construction, alteration, or repair including painting and decorating of public buildings or public works within the united states, shall', 13488:'contain a clause see 52.2226 that no laborer or mechanic employed directly upon the site of the work shall receive', 13489:'less than theprevailing wage rates asdetermined by the secretaryof labor. 22.4032 copeland act. the copeland antikickback act 18 u.s.c.874 and', 13490:'40 u.s.c. 3145 makes it unlawful to induce, by force, intimidation, threat of procuring dismissal from employment, or otherwise, any', 13491:'person employed in the construction or repair of public buildings or public works, financed in whole or in part by', 13492:'the united states, to give up any part of the compensation to which that person is entitled under a contract', 13493:'of employment. the copeland act also requires each contractor and subcontractor to furnish weekly a statement of compliance with respect', 13494:'to the wages paid each employee during the preceding week. contracts subject to the copeland act shall contain a clause', 13495:'see 52.22210 requiring contractors and subcontractors to comply with the regulations issued by the secretary of labor under the copeland', 13496:'act. 22.4033contractwork hours and safety standards. 40 u.s.c.chpater37,contract work hours and safety standards, requires thatcertain contracts see 22.305 contain a', 13497:'clause see 52.2224 specifying that no laborer or mechanic doing any part of the work contemplated by the contract shall', 13498:'be required or permitted to work more than 40 hours in any workweek unless paid for all additional hours at', 13499:'not less than 1 1/2 times the basic rate of pay see 22.301. 22.4034 executive orders 13658 and 14026. executive', 13500:'order e.o. 13658 establishedminimum wages for certain workers at $10.10 per hour. thee.o. 13658 rate has increased each year since', 13501:'2015,rising to$11.25on january1, 2022. asof january 30, 2022, e.o. 13658 is superseded by e.o. 14026 to the extent that it', 13502:'is inconsistent with e.o. 14026; the minimum wage rate for certain workers is increased to $15.00 per hour. the wage', 13503:'rate is subject to annualincreases byan amountdetermined by thesecretaryof labor. see subpart 22.19. the clause at 52.22255, minimumwages for contractor', 13504:'workers underexecutive order 14026, requires the e.o. 14026 minimum wage rate to be paid if it is higher than other', 13505:'minimum wage rates, such as the subpart 22.4 statutory wage determination amount. 22.4035 federal acquisition regulation 22.4035 executive order 13706.', 13506:'executive order 13706 establishes paid sick leave for employees of certain federal contractors. see subpart 22.21 and the clause at', 13507:'52.22262, paid sick leave under executive order 13706. 22.4036departmentof labor regulations involving construction. a under the statutes and executive orders', 13508:'referred to in 22.403 and reorganization plan no. 14 of 19503 cfr 194953 comp., p. 1007, the secretary of labor', 13509:'hasissuedregulations in title 29, subtitlea, code of federalregulations, prescribing standards and procedures to be observed by the department of labor', 13510:'and the federal contracting agencies. those standards and procedures applicable to contracts involving construction are implemented in this subpart. b', 13511:'the department of labor regulations include 1part 1,relatingtoconstructionwageraterequirementsstatuteminimumwagerates; 2 part 3, relating to the copeland antikickback act and requirements for', 13512:'submission of weekly statements of compliance and the preservation and inspection of weekly payroll records; 3 part 5, relating to', 13513:'enforcement of the– iconstructionwage rate requirements statute; iicontract work hours and safety standards statute; and iii copeland antikickback act; 4part', 13514:'6,relatingtorulesofpracticeforappealingthefindingsoftheadministrator,wageandhourdivision,in enforcement cases under the various labor statutes, and by which administrative law judge hearings are held; 5 part 7,', 13515:'relating to rules of practice by which contractors and other interested parties may appeal to the department of labor administrative', 13516:'review board, decisions issued by the administrator, wage andhourdivision, or administrative law judges under the various labor statutes; 6 part', 13517:'10, relating to establishing a minimum wage for federal contractors; and 7 part 13, relating to establishing paid sick leave', 13518:'for federal contractors. c refer all questions relating to the application and interpretation of wage determinations including the classifications therein', 13519:'and the interpretationof the department of labor regulations in this subsection to the administrator, wage andhour division. 22.404 construction wage', 13520:'rate requirements statute wage determinations. the department of labor is responsible for issuing wage determinations reflecting prevailing wages, including fringe', 13521:'benefits. the wage determinations apply only to those laborers and mechanics employed by a contractor upon the site of the', 13522:'work including drivers who transport to or from the site materials and equipment used in the course of contract operations.', 13523:'determinations areissuedfordifferent types of construction,such as building, heavy,highway, and residential referred to as rate schedules, and apply only to the', 13524:'types of construction designated in the determination. 22.4041types of wagedeterminations. a general wage determinations. 1 a general wage determination contains', 13525:'prevailing wage rates for the types of construction designated in the determination, and is used in contracts performed within a', 13526:'specified geographical area. general wage determinations contain no expiration date and remain valid until modified, superseded, or canceled by the', 13527:'department of labor. onceincorporated in a contract, a generalwage determination normallyremains effective for the life of the contract,unlessthe contracting officer', 13528:'exercises an option to extend the termof the contract see 22.40412. these determinations shall be used whenever possible. they are', 13529:'issued at the discretion of the department of labor either upon receipt ofan agencyrequest or on the department of labor’s', 13530:'own initiative. 2 general wage determinations are published onthe wage determinations at sam.gov website. generalwage determinationsare effective onthe publication date', 13531:'of thewage determination or upon receipt of the wage determination by the contracting agency, whichever occurs first. “publication” within themeaning', 13532:'of this section shall occur on the first datethe wagedeterminationis publishedon the wagedeterminationsat sam.gov. archived construction wage rate requirements statute', 13533:'general wage determinations that are no longer current may be accessed in the “archived db wd” database onwage determinations at', 13534:'sam.gov website for information purposes only. contracting officers may not use an archivedwage determination in a contract action without obtaining', 13535:'prior approval of the department of labor. to obtain prior approval, contact the department of labor, wage and hour division,', 13536:'using https://www.sam.gov, or contact the procurement agency labor advisor listed on https://www.sam.gov. subpart 22.4 labor standards for contracts involving construction', 13537:'22.4043 b project wage determinations.aproject wage determination is issued at the specific requestof acontracting agency. it is usedonlywhen no general', 13538:'wage determination applies, and is effective for 180 calendar days from the date of the determination. however,if a determination expires', 13539:'before contract award, it may be possible to obtainan extension to the 180day life of the determination see 22.4045b2. once', 13540:'incorporated in a contract, a project wage determination normallyremains effective for the life ofthe contract, unless the contractingofficer exercisesan optionto', 13541:'extend the term of the contract see 22.40412. 22.4042general requirements. a thecontracting officer must incorporate onlythe appropriate wagedeterminations insolicitationsand contracts', 13542:'and must designate theworkto whicheach determination or part thereof applies. thecontracting officer must not include project wage determinations in contracts', 13543:'or options other than those for which they are issued. when exercising an option to extend theterm of a contract,the', 13544:'contracting officermust select the most current wage determinations fromthe same schedules as the wage determinations incorporated into the contract. b', 13545:'if the wage determination is a general wage determination or a project wage determination containing more than one rate schedule,the', 13546:'contracting officershalleither includeonlythe rateschedules thatapply to theparticular types of constructionbuilding,heavy, highway, etc. or include the entire wagedeterminationand clearly indicate theparts', 13547:'of the work to which each rate schedule shall be applied. inclusion by reference is not permitted. c thewage and', 13548:'hour division hasissuedthe following general guidelines for use in selecting the proper schedules of wage rates: 1 building construction is', 13549:'generally the construction of sheltered enclosures with walkin access, for housing persons, machinery, equipment, or supplies. ittypicallyincludes all construction of', 13550:'such structures, installation of utilities and equipment both above and below grade level, as well as incidental grading, utilities and', 13551:'paving, unless there is an established area practice to the contrary. 2 residential construction is generally the construction, alteration, or', 13552:'repair of single family houses or apartment buildings of no more than four 4 stories in height, and typically includes', 13553:'incidental items such as site work, parking areas, utilities, streets and sidewalks, unless there is an established area practice to', 13554:'the contrary. 3 highwayconstruction is generally the construction, alteration, or repair of roads, streets, highways, runways, taxiways, alleys, parking areas,', 13555:'and other similar projects that are not incidental to building, residential, or heavy construction. 4 heavy construction includes those projects', 13556:'that are not properly classified as either building, residential, or highway, and is of a catchall nature. such heavyprojects may', 13557:'sometimes be distinguished on the basis oftheir individual characteristics, and separate schedules issued e.g.,dredging, water and sewer line, dams, flood', 13558:'control, etc.. 5 when the nature of a project is notclear,itis necessary to look atadditional factors, with primary consideration given', 13559:'to locally established area practices. if there is any doubt as to the proper application of wage rate schedules to', 13560:'the type or types of constructioninvolved, guidance shall be sought before the openingof bids, orreceipt of best and final offers,', 13561:'from theadministrator, wage and hour division. further examples arecontained indepartment oflabor all agency memoranda numbers 130 and 131. 22.4043proceduresfor requesting', 13562:'wage determinations. a generalwage determinations. if there is a general wage determination onthe wage determinations at sam.gov website applicable tothe', 13563:'project, the agency may use it without notifying the departmentof labor. when necessary, a request for a general wage determination', 13564:'may be made by submitting standard form sf 308, request for determination and response to request,to the administrator, wage and', 13565:'hourdivision, attention: branchof construction contract wage determinations, 200 constitution avenue, nw,washington, dc20210. b project wage determinations. if ageneral wage determination', 13566:'is notavailableon wage determinations at sam.gov, a contracting agency shall submit requests for project wage determinations on sf 308to thedepartment', 13567:'oflabor. the requests shall include the following information: 1 the location, including the county or other civil subdivision and state', 13568:'in which the proposed project is located. 2 the name of the project and a sufficiently detaileddescription ofthe work to', 13569:'indicate the types of construction involved e.g., building, heavy, highway,residential, or other type. 3 any available pertinent wage payment information,', 13570:'unless wage patterns in the area are clearly established. 4 the estimated cost of each project. 5 all the classifications', 13571:'of laborers and mechanics likely to be employed. 22.4044 federal acquisition regulation c time for submission of requests. 1 the', 13572:'time required by the department of labor for processing requests for project wage determinations varies according to the facts and', 13573:'circumstances in each case. an agency should expect the processing to takeat least30 days. accordingly, agencies should submitrequests for project', 13574:'wagedeterminations for theprimary site ofthe work to the department of labor at least 45 days 60 days if possible before', 13575:'issuing the solicitation or exercising an option to extend the term of a contract. 2 agencies should promptly submit to', 13576:'the department of labor anofferor’s request for a project wage determination for a secondary site of the work. d review', 13577:'of wage determinations. immediately upon receipt, the contracting agency shall examine the wage determination and inform the department of labor', 13578:'of any changes necessary or appropriate to correct errors. private parties requesting changes should be advised to submit their requests', 13579:'to thedepartment oflabor. 22.4044 solicitations issued without wage determinations for the primary site of the work. a if a solicitation', 13580:'is issued before the wage determination for the primary site of the work is obtained, a notice shall be included', 13581:'in the solicitation that the schedule of minimum wage rates to be paid under the contract will be issued as', 13582:'an amendment to the solicitation. b in sealed bidding, bids may not be opened until a reasonable time after the', 13583:'wage determination for the primary site of the work has been furnished to all bidders. c innegotiated acquisitions, the contracting', 13584:'officer mayopen proposals and conduct negotiationsbefore obtaining thewage determination for the primary site of the work. however, the contracting officershallincorporatethe', 13585:'wage determination for the primary site of the work intothe solicitation before submission of best and final offers. 22.4045expiration ofproject', 13586:'wage determinations. a thecontracting officer shall make every effort to ensure that contract awardis made before expiration of theproject wage', 13587:'determination included in the solicitation. b the following procedure applies when contracting by sealed bidding: 1 if a project wage', 13588:'determination for the primary site of the work expires before bid opening, or if it appears beforebid opening thata project', 13589:'wage determination may expire before award, the contracting officer shall requesta new determination early enough to ensure itsreceipt before bidopening.', 13590:'if necessary, the contractingofficer shall postpone the bid opening date to allow a reasonable time to obtain the determination, amend', 13591:'the solicitation to incorporate the new determination, and permit bidders to amend their bids. if the new determination does not', 13592:'change the wage rates and would not warrant amended bids, the contracting officer shall amend the solicitation toinclude the number', 13593:'and date of the new determination. 2 if a project wage determination for the primary site of the work expires', 13594:'after bid opening but before award, the contracting officershallrequest an extension of the project wage determination expiration date from the', 13595:'administrator, wage and hour division. the request for extension shall be supported by a written finding, which shall include a', 13596:'brief statement of factual support, that the extension is necessary and proper in the public interest to prevent injustice or', 13597:'undue hardship or to avoid seriousimpairment of the conduct of governmentbusiness. if necessary, the contracting officershalldelay award to permit either', 13598:'receipt of the extension or receipt and processing of a new determination. if the request is granted, the contracting officershallaward', 13599:'the contract and modifyitto apply theextended expiration dateto the already incorporated project wage determination. see 43.103b1. if the request is', 13600:'denied, the administrator will proceed to issue a new project wagedetermination. uponreceipt,the contracting officer shall process thenew determination as follows:', 13601:'i if if the new determination for the primary site of the work changes any wage rates for classifications to', 13602:'be usedin the contract, the contracting officer may cancel the solicitation only in accordance with 14.4041. otherwise the contracting officershallaward', 13603:'the contract and incorporate thenew determination to be effectiveon the date of contract award. the contracting officer shall equitably adjust', 13604:'thecontract priceforany increased or decreased cost of performance resulting from any changed wage rates. iiif the new determination for theprimary', 13605:'site ofthe work does not changeanywage rates, the contractingofficer shall award the contract and modify it to include the number', 13606:'and date of the new determination. see 43.103b1. c the following procedure applies when contracting by negotiation: 1 if a', 13607:'project wagedetermination will or does expirebefore contract award, the contracting officer shall request a new wage determination from thedepartment oflabor.', 13608:'if necessary, the contracting officershalldelay award while the new determination is obtained and processed. subpart 22.4 labor standards for contracts', 13609:'involving construction 22.4046 2 the contractingofficer need not delay opening and reviewing proposals or discussing themwith the offerors while a', 13610:'new determinationforthe primary site of theworkis being obtained. the contractingofficer shall request offerors toextend the period for acceptance of any', 13611:'proposal if that period expires or may expire before receipt and full processing of the new determination. 3 if the', 13612:'newdeterminationforthe primarysite of thework changes any wage rates, thecontracting officer shall amend the solicitation toincorporate the newdetermination, andfurnish the wage', 13613:'rate information to all prospective offerors that were sent a solicitationif the closing date for receiptof proposals has not yetoccurred,', 13614:'or to all offerors that have not been eliminated from the competition if the closing date haspassed. all offerors to', 13615:'whom wagerate information has been furnished shall be given reasonable opportunity to amend their proposals. 4 if the newdeterminationforthe primarysite', 13616:'of thework does not change any wagerates, the contracting officer shall amend the solicitation to include the number and date', 13617:'of the new determination and award the contract. 22.4046 modifications of wage determinations. a general. 1 the department of labor', 13618:'may modify a wage determination to make it current by specifying only the items being changed or by reissuing the', 13619:'entire determination with changes incorporated. 2 all project wage determination modifications expire on the same day as the original determination.', 13620:'the need to include a modification of a project wage determination for the primary site of the work in a', 13621:'solicitation is determined by the time of receipt of themodification by the contracting agency. therefore,the contracting agency must annotate the', 13622:'modification of the project wage determination with the date and time immediately upon receipt. 3 the need for inclusion of', 13623:'the modification of a general wage determination for the primary site of the work in a solicitation is determined by', 13624:'the date the modified wage determination is published on thewage determinations at sam.gov , or by the date theagency receivesactual', 13625:'writtennotice of themodification from the department of labor, whichever occurs first. note the distinction between receipt bythe agencymodificationis effective and', 13626:'receipt by the contracting officer, which mayoccur later. during the course of the solicitation,the contracting officershallmonitor thewage determinations at sam.gov', 13627:'website todetermine whether the applicable wage determination has been revised. revisions published on thewage determinations at sam.gov website or otherwisecommunicated', 13628:'to thecontracting officer withinthe timeframes prescribed at 22.4046b and c are applicable and must be included in the resulting contract.', 13629:'monitoring can be accomplished by use of thewage determinations at sam.gov website’s alert service. b the following applies when contracting', 13630:'by sealed bidding: 1 a written action modifying a wage determination shall be effective if: iit isreceived by the contracting', 13631:'agency, or is published onthe wage determinations at sam.gov, 10 or more calendar days before the date of bid opening;', 13632:'or iiit isreceived by the contracting agency, oris publishedon the wage determinations at sam.gov , less than 10 calendar days', 13633:'before the date of bid opening, unless the contracting officer findsthat there isnot reasonabletime available beforebid opening tonotify the prospective', 13634:'bidders. if the contracting officer finds that there is not reasonable time to notify bidders, a written report of the', 13635:'finding shall be placed in the contract file and shall be made available to the department of labor upon request.', 13636:'2 all written actions modifying wage determinations received by the contracting agency after bid opening, or modifications to general wagedeterminations', 13637:'published on the wagedeterminationsat sam.gov after bid opening, shall not beeffective and shall not beincluded in the solicitation but see', 13638:'paragraphb6 of this subsection. 3 if an effective modification ofthe wagedetermination for the primarysite of the work is received by', 13639:'the contracting officer before bid opening, thecontracting officer shall postponethe bid opening, if necessary, to allow a reasonable time to', 13640:'amend the solicitation to incorporate the modification and permit bidders to amend their bids. if the modification does not change', 13641:'the wage ratesand would not warrant amended bids, the contracting officer shall amendthe solicitation to include the number and date', 13642:'of the modification. 4 if an effective modification ofthe wagedetermination for the primarysite of the work is received by the', 13643:'contracting officer afterbid opening, but beforeaward,the contracting officershallfollow the procedures in 22.4045b2i or ii. 5 if an effective modification is', 13644:'received bythe contracting officer after award, the contractingofficer shall modify the contract to incorporate the wage modification retroactive to the', 13645:'date of award and equitably adjust the contract price for any increased or decreased cost of performance resulting from any', 13646:'changed wage rates. if the modification does not change any wage ratesand would not warrant contract price adjustment, thecontracting officer', 13647:'shall modify the contract to include the number and date of the modification. 22.4047 federal acquisition regulation 6 if an', 13648:'award is not made within 90 days after bid opening, any modification to a general wage determination which is published', 13649:'on the wage determinations at sam.gov before award, shall be effective for any resultantcontract unless an extension of the 90day', 13650:'periodis obtained from theadministrator, wage and hour division. anagency head may request suchan extension from the administrator. therequest mustbe supported', 13651:'bya written finding, which shall include a brief statement of factual support, that the extension is necessary and proper in', 13652:'the public interest to prevent injustice, undue hardship,or to avoid serious impairmentin theconduct of government business. thecontracting officer shall follow', 13653:'the procedures in 22.4045b2. c the following applies when contracting by negotiation: 1 all written actions modifying wage determinations received', 13654:'by the contracting agency before contract award, or modifications to general wagedeterminations published on the wagedeterminationsat sam.gov before award, shall', 13655:'be effective. 2 if an effective wage modification is received by thecontracting officer before award,the contracting officer shall follow the', 13656:'procedures in 22.4045c3 or 4. 3 if an effective wage modification is received by thecontracting officer after award, the contracting', 13657:'officer shall follow the procedures in 22.4046b5. d the following applies when modifying a contract to exercise an option to', 13658:'extend the term of a contract: 1 a modifiedwage determination is effective if i the contracting agency receives a written', 13659:'action from the department of labor prior to exercise of the option, or within 45 days after submission of a', 13660:'wage determination request 22.4043c, whichever is later; or iithe departmentof laborpublishes the modificationto a general wage determination on the wage', 13661:'determinations at sam.gov before exercise of the option. 2 if the contracting officer receives an effectivemodified wage determinationeither before orafter', 13662:'execution of the contract modification to exercise theoption, thecontracting officer must modify the contractto incorporate themodified wagedetermination,andany changed wage rates,', 13663:'effectiveas of the date that the optionto extend was effective. 22.4047correction of wage determinations containing clerical errors. upon thedepartment oflabor’s', 13664:'own initiative or at the requestof the contractingagency, the administrator,wage and hour division, may correct any wage determination foundto contain', 13665:'clericalerrors. such correctionswill be effective immediately, and will applyto any solicitation or active contract. before contract award, the contracting officer', 13666:'must follow the procedures in 22.4045b1 or 2i or ii in sealed bidding, and the procedures in 22.4045c3 or 4', 13667:'in negotiations. after contract award, thecontracting officer must follow theprocedures at 22.4046b5, except that for contract modificationsto exercisean optionto extend', 13668:'the term of thecontract, the contracting officer must follow the procedures at 22.4046d2. 22.4048notification ofimproper wage determination beforeaward. a thefollowing', 13669:'written notifications by the department of labor shall beeffective immediatelywithout regard to 22.4046if received by thecontracting officer prior to award:', 13670:'1 a solicitation includes the wrong wage determination or the wrong rate schedule; or 2 a wage determination is withdrawn', 13671:'by the administrative review board. b in sealed bidding, the contracting officer shall proceedin accordance with thefollowing: 1 if the', 13672:'notification of an improper wage determination for the primary site of the work reaches the contracting officer beforebid opening, the', 13673:'contractingofficer shall postpone the bid opening date,if necessary, to allow a reasonable timeto i obtain the appropriate determination if a', 13674:'new wage determination is required; ii amend the solicitation to incorporate the determination or rate schedule; and iii permit bidders', 13675:'to amend their bids. if the appropriate wage determination does not change any wage rates and would not warrantamended bids,', 13676:'the contracting officer shall amend thesolicitation to includethe number and date of the new determination. 2 if the notification of', 13677:'an improper wage determination for the primary site of the work reaches the contracting officer after bidopening but beforeaward,the contracting', 13678:'officershalldelayawarding the contract, if necessary, and if required, obtain the appropriate wage determination. the appropriate wage determination shall be processed', 13679:'in accordance with 22.4045b2i or ii. subpart 22.4 labor standards for contracts involving construction 22.40412 c innegotiated acquisitions, the contracting', 13680:'officer shall delay award,if necessary, and process the notification of an improper wage determination for the primary site of the', 13681:'work in the manner prescribed for a new wage determination at 22.4045c3. 22.4049award of contract without required wage determination. a', 13682:'if a contract is awarded without the required wage determination i.e., incorporating no determination, containing a clearly inapplicable general wage', 13683:'determination, or containing a project determination which is inapplicable because of an inaccurate descriptionof the project or its location, the', 13684:'contracting officer shall initiate action to incorporate the required determination in the contract immediately upon discovery of the error. if', 13685:'a required wage determinationvaliddetermination in effect onthe date of award is not available, the contracting officer shall expeditiouslyrequest awage determination', 13686:'from thedepartment oflabor, including a statementexplaining the circumstancesandgiving the date of the contract award. b the contractingofficer shall 1 modify', 13687:'the contract to incorporate the required wage determination retroactive to the date of award and equitably adjust the contract price', 13688:'if appropriate; or 2 terminate thecontract. 22.40410 posting wage determinations and notice. the contractor must keep a copy of the', 13689:'applicable wage determination and any approved additional classifications posted at the site of the work in a prominent placewhere the', 13690:'workerscan easily see it. the contracting officer shall furnish to the contractor, department of laborformwh1321, noticeto employees working on federal', 13691:'and federally financed construction projects, for posting with the wage rates. the name, address, and telephone number of the government', 13692:'officer responsible for the administration of the contract shall be indicated in the poster to inform workers to whom they', 13693:'may submit complaints or raise questions concerning labor standards. 22.40411wage determination appeals. the secretary of labor has established an administrative', 13694:'review board which decides appeals of final decisions made by the departmentof labor concerning construction wage rate requirements statute wage', 13695:'determinations. a contracting agency or other interested party may file a petition for review under the procedures in 29 cfr', 13696:'part 7 if reconsideration by the administrator has been sought pursuant to 29 cfr1.8 and denied. 22.40412 labor standards for', 13697:'contracts containing construction requirements and optionprovisionsthat extendthe term of the contract. a eachtime the contracting officer exercises an option toextend', 13698:'the term of a contract for construction, ora contract that includes substantial and segregable construction work, the contracting officer must', 13699:'modify the contract to incorporate the most current wage determination. b if a contract with an option to extend the', 13700:'term of the contract has indefinitedelivery or indefinitequantity construction requirements, the contracting officer must incorporate the wage determination incorporatedinto the', 13701:'contract at theexercise of theoption intotaskordersissuedduring that option period. the wage determination willbe effective for the complete period of performance', 13702:'of those task orders without further revision. c thecontracting officer must includein fixedprice contracts a clause thatspecifiesoneof the following methods,', 13703:'suitable to the interest of the government, to provide an allowance for any increases or decreases in labor costs that', 13704:'result from the inclusion of the current wage determination at the exercise of an option to extend the term of', 13705:'the contract: 1 the contractingofficer may provide the offerors the opportunity to bidor propose separate prices for eachoption period. the', 13706:'contracting officer must not furtheradjust the contractprice as a result of the incorporationof anew or revised wagedetermination atthe exercise of', 13707:'each optionto extend the term of thecontract. generally, this method is used in constructiononly contracts with options to extend the', 13708:'term that are not expected to exceed a total of 3 years. 2 the contractingofficer may include in the contract', 13709:'a separatelyspecified pricingmethod that permits anadjustment to the contract price or contract labor unit price at the exercise of each', 13710:'option to extend the term of the contract. at the time of option exercise, the contracting officer must incorporate anew', 13711:'wage determination into thecontract, and must apply the specific pricing method to calculate the contract price adjustment. an example of', 13712:'a contract pricing method that the contracting officermightseparately specify is incorporation in the solicitation andresulting contractof the pricing data from', 13713:'an annually published unit pricing book e.g., the u.s. army computeraided cost estimating system or similar commercial product, which is', 13714:'multiplied in the contract by a factor proposed by the contractor e.g., .95 or 1.1. at option exercise, federal acquisition', 13715:'regulation thecontracting officer incorporates the pricingdata from the latestannual edition ofthe unit pricing book, multiplied by thefactoragreed to in the', 13716:'basic contract. thecontracting officer must not further adjust thecontract priceas aresult ofthe incorporation of the new or revised wage determination.', 13717:'3 the contractingofficer may provide for a contract price adjustment based solely on a percentage rate determined by the contracting', 13718:'officer usinga published economic indicator incorporatedinto the solicitation and resulting contract. at theexercise of eachoption to extendthe term ofthe contract,', 13719:'the contractingofficer will apply the percentagerate, based on theeconomic indicator, to the portion of the contract price or contractunit price', 13720:'designated in the contract clauseas labor costs subject tothe provisions of the construction wage rate requirements statute. thecontracting officer must', 13721:'insert 50 percent as theestimated portionof the contract price that is labor unless the contracting officer determines, prior to issuance', 13722:'of the solicitation, that adifferentpercentage is more appropriate for a particular contract or requirement. this percentage adjustment to the designated', 13723:'labor costs must be the only adjustment made to cover increases in wages and/or benefits resulting from the incorporation of', 13724:'a new or revised wage determination at the exercise of the option. 4 the contractingofficer may provide a computation methodto', 13725:'adjust the contract price to reflect thecontractor’s actual increase or decrease in wages and fringe benefits combined to the extent', 13726:'that the increase is made to comply with, or the decrease is voluntarily made by the contractor as a result', 13727:'of incorporation of, a new or revised wage determination at the exercise of theoption to extendthe term of the contract.', 13728:'generally, this method is appropriate for use only if contract requirements are predominately services subject to the service contract labor', 13729:'standards statute and the construction requirements are substantial and segregable. the methods used to adjust the contract price for the', 13730:'service requirements and theconstruction requirements wouldbe similar. 22.405[reserved] 22.406 administration and enforcement. 22.4061policy. a general. contracting agencies are responsible for', 13731:'ensuring the full and impartial enforcement of labor standards in the administration of construction contracts. contracting agencies shall maintain an', 13732:'effective program that shall include 1 ensuring that contractors and subcontractors are informed, before commencement of work, of their obligations', 13733:'under the labor standards clauses of the contract; 2 adequate payroll reviews, onsite inspections, and employee interviews to determine compliance', 13734:'by the contractor and subcontractors, and prompt initiation of corrective action when required; 3 prompt investigation and disposition of complaints;', 13735:'and 4 prompt submission of all reports required by this subpart. b preconstruction letters and conferences. before construction begins, the', 13736:'contractingofficer shall inform the contractor of the labor standards clauses and wage determination requirements ofthe contract and of the contractor’s', 13737:'and any subcontractor’s responsibilitiesunder thecontract. unless it is clearthat thecontractor is fully aware of therequirements, the contracting officershallissue an explanatory', 13738:'letter and/or arrange aconference with the contractor promptly after award of the contract. 22.4062wages,fringe benefits, and overtime. a in computing', 13739:'wages paid to a laborer or mechanic, the contractor may include only the following items: 1 amounts paid in cash', 13740:'to the laborer or mechanic, or deducted from payments under the conditions set forth in 29 cfr3.5. 2 contributions except', 13741:'those required by federal, state, or local law the contractor makes irrevocably to a trustee or a third party under', 13742:'any bona fide plan or program to provide for medical or hospital care, pensions, compensation for injuries or illness resulting', 13743:'from occupational activity, unemployment benefits, life insurance,disability and sicknessinsurance, accident insurance, or any other bona fide fringe benefit. 3 other', 13744:'contributions or anticipated costs for bona fide fringe benefits to the extent expressly approved by the secretary of labor. b', 13745:'1 the contractor may satisfy the obligation under the clause at 52.2226,constructionwageraterequirements,by providing wages consisting of any combination of contributions', 13746:'or costs as specified in paragraph a of this subsection, if the total cost of the combination is not less', 13747:'than the total of the basic hourly rate and fringe benefits payments prescribed in the wage determination for the classification', 13748:'of laborer or mechanic concerned. subpart 22.4 labor standards for contracts involving construction 22.4063 2 wages provided by the contractorand', 13749:'fringe benefits paymentsrequired by thewage determination may include items that are not stated as exact cash amounts. in these cases,', 13750:'the hourly cash equivalent of the cost of these items shall be determined bydividing the employer’s contributionsor costs by the', 13751:'employee’s hours workedduring the period covered by the costs or contributions. for example,if a contractor pays amonthly health insurance premium', 13752:'of$112 for a particular employeewho worked125 hours during the month, the hourlycash equivalent is determined bydividing $112 by125 hours, which', 13753:'equals $0.90 per hour. similarly, the calculationof hourly cash equivalent for ninepaid holidays peryear for an employee with a hourly', 13754:'rate of pay of $5.00 is determined by multiplying $5.00 by 72 9 days at 8 hours each, and dividing', 13755:'theresult of$360 by the number of hours worked by theemployee during the year. ifthe interested parties contractor, contracting officer, and', 13756:'employees or theirrepresentative cannotagreeon the cash equivalent, the contracting officer shall submit the question for final determination to the department', 13757:'of labor as prescribed by agency procedures. the information submitted shall include i a comparison of the payments, contributions, or', 13758:'costs in the wage determination with those made or proposed as equivalents by the contractor; and iithe comments and recommendationsof', 13759:'the contractingofficer. c in computing required overtime payments, i.e.,1 1/2 times the basic hourly rate of pay the contractor shall', 13760:'use the basic hourly rate of pay in the wage determination,or the basic hourlyrate actually paid bythe contractor, if higher.', 13761:'thebasic rateof pay includes employeecontributions to fringe benefits, butexcludesthe contractor’s contributions, costs, orpayment of cash equivalents for fringe benefits. overtime', 13762:'shall not be computed on a rate lower than the basic hourly rate in the wage determination. 22.4063 additional classifications.', 13763:'a if any laborer or mechanic is to be employed in a classification that is not listed in the wage', 13764:'determination applicable to thecontract, the contracting officer, pursuant to the clause at 52.2226, construction wagerate requirements, shall require that the', 13765:'contractor submit tothe contracting officer, standard form sf 1444, request for authorization of additional classification and rate, which, along with', 13766:'other pertinent data, contains the proposed additional classification and minimum wage rate including any fringe benefits payments. b upon receipt', 13767:'of sf 1444from the contractor,the contracting officer shall review the requestto determine whether it meets the following criteria: 1 the', 13768:'classification is appropriate and the work to be performed by the classification is not performed by any classification contained in', 13769:'the applicable wage determination. 2 the classification isutilized in the area by the construction industry. 3 the proposed wage rate,', 13770:'including any fringe benefits, bears a reasonable relationship to the wage rates in the wage determination in the contract. c', 13771:'1 if the criteria in paragraph b of this subsection are met and the contractor and the laborers or mechanics', 13772:'to be employed in the additional classification if known or their representatives agree to the proposed additional classification, and the', 13773:'contracting officer approves, the contracting officer shall submit areport including a copy of sf 1444 of that action to the', 13774:'administrator,wage and hour division,forapproval,modification,or disapproval of the additionalclassification and wage rate including any amount designated for fringe benefits; or 2', 13775:'if the contractor, the laborers or mechanicsto beemployed in the classificationor their representatives, and the contracting officerdo not agree on', 13776:'theproposed additionalclassification, or if thecriteria are notmet, thecontracting officer shall submit a report including a copy of sf 1444giving the', 13777:'views of all interested parties and thecontracting officer’s recommendation to the administrator, wage and hour division, for determination of appropriate', 13778:'classification and wage rate. d 1within30daysofreceiptofthereport,theadministrator,wageandhourdivision,willcompleteactionandso advisethe contracting officer, or willnotify the contracting officer that additional time is necessary. 2', 13779:'upon receipt ofthe department of labor’s action, the contracting officer shall forward acopy ofthe action to the contractor, directingthat theclassification', 13780:'andwage ratebe posted in accordance with paragraph a of the clause at 52.2226 and that workers inthe affected classification receive', 13781:'no less than theminimum rate indicatedfrom the first day on which work under the contract was performed in the classification.', 13782:'e in each option to extend the term of the contract, if any laborer or mechanic is to be employed', 13783:'during the option in a classification that is not listed or no longer listed on the wage determination incorporated in', 13784:'that option, the contracting officer must requirethat the contractor submit a request for conformance using the procedures noted in paragraphs', 13785:'a through d of this section. 22.4064 federal acquisition regulation 22.4064apprentices and trainees. a thecontracting officer shall review the contractor’s', 13786:'employment and payment records ofapprentices and trainees made available pursuant to the clause at 52.2228, payrolls and basic records, to', 13787:'ensure that the contractor has complied with the clause at 52.2229, apprentices and trainees. b if a contractor has classified', 13788:'employees as apprentices, trainees, or helpers without complying with the requirements of the clause at 52.2229, the contracting officershallreject theclassification', 13789:'andrequire thecontractor to paythe affected employees at the rates applicable to the classification of the work actually performed. 22.4065 subcontracts.', 13790:'in accordance with the requirements of the clause at 52.22211, subcontracts labor standards, the contractor and subcontractors at any tier', 13791:'are required to submit a fully executed sf 1413, statement and acknowledgment, upon award of each subcontract. 22.4066payrolls and statements.', 13792:'a submission. in accordance with the clause at 52.2228, payrolls and basic records, the contractor must submit or cause to', 13793:'be submitted, within 7 calendar days after the regular payment date of the payroll week covered, for the contractor and', 13794:'each subcontractor, 1 copies of weekly payrolls applicable to the contract,and2weekly payrollstatementsof compliance. the contractor may use the department of', 13795:'labor formwh347, payroll for contractor’s optional use, or a similar form that provides the same data and identical representation. b', 13796:'withholding for nonsubmission. if the contractor fails to submit copies of its or its subcontractors’ payrolls promptly, the contractingofficer shall,from', 13797:'any payment due tothe contractor, withhold approval of anamount that the contracting officerconsiders necessary to protect the interest of the', 13798:'government and the employees ofthe contractor orany subcontractor. c examination. 1 thecontracting officer shall examine the payrolls and payroll statements', 13799:'to ensure compliance with the contract and any statutory or regulatory requirements. particular attention should be given to i the', 13800:'correctness of classifications and rates; ii fringe benefits payments; iii hours worked; iv deductions; and v disproportionate employment ratios of', 13801:'laborers, apprentices or trainees to journeymen. 2 fringe benefits payments, contributions made, or costs incurred on other than a weekly', 13802:'basis shall be considered as a part of weekly payments to the extent they are creditable to the particular weekly', 13803:'period involved and are otherwise acceptable. d preservation. the contracting agency shall retain payrolls and statements of compliance for 3', 13804:'years after completion of the contract and make them available when requested by the department of labor at any time', 13805:'during that period. submitted payrolls shall not be returned to a contractor or subcontractor for any reason, but copies thereof', 13806:'may be furnished to the contractor orsubcontractorwho submitted them, or to a higher tier contractor orsubcontractor. e disclosure of payroll', 13807:'records.contractor payroll records inthe government’s possession must be carefully protected from any public disclosure whichis not required bylaw, since payrollrecordsmay', 13808:'containinformation in which the contractor’s employees have aprivacy interest, as well as information inwhich the contractor may have aproprietary interest', 13809:'that the government may be obliged to protect. questions concerning release of this information may involve the freedom of information', 13810:'act foia. 22.4067 compliance checking. a general. the contracting officershallmakechecks and investigations on all contractscovered by this subpart as may', 13811:'be necessary to ensure compliance with the labor standards requirements of the contract. b regular compliance checks. regular compliance checking', 13812:'includes the following activities: 1 employee interviews todetermine correctness of classifications, rates of pay,fringe benefitspayments, and hours worked. see standard', 13813:'form 1445. 2 onsite inspections to check type of work performed, number and classification of workers, and fulfillment of posting', 13814:'requirements. 3 payroll reviews to ensure that payrolls of prime contractors and subcontractors have been submitted on time and are', 13815:'complete and in compliance with contract requirements. subpart 22.4 labor standards for contracts involving construction 22.4068 4 comparison of the', 13816:'information in this paragraph b with available data, includingdaily inspector’sreport and daily logs of construction, to ensure consistency. c special', 13817:'compliance checks. situations that may require special compliance checks include 1 inconsistencies, errors, or omissions detected during regular compliance checks;', 13818:'or 2 receipt of a complaint alleging violations. if the complaint is not specific enough, the complainant shall be so', 13819:'advised and invited to submit additional information. 22.4068 investigations. conduct labor standards investigations when available information indicates such action is', 13820:'warranted. in addition, the department of labor may conduct an investigation on its own initiative or may request a contracting', 13821:'agency to do so. a contracting agency responsibilities. conduct an investigation when a compliance check indicates that substantial or willful', 13822:'violations may have occurred or violations have not been corrected. 1 the investigation must iinclude all aspects of the contractor’s', 13823:'compliance with contract labor standards requirements; ii not be limited to specific areas raised in a complaint or uncovered during', 13824:'compliance checks; and iii use personnel familiar with labor laws and their application to contracts. 2 do not disclose contractor', 13825:'employees’ oral or written statements taken during an investigation or the employee’s identity to anyone other than anauthorized government official', 13826:'without that employee’s prior signed consent. 3 senda written request to the administrator,wage and hour division,to obtain i investigation and', 13827:'enforcement instructions; or iiavailable pertinent department of labor files. 4 obtain permission from the department of labor before disclosing material', 13828:'obtained from labor department files, other than computations of back wages and liquidated damages and summaries of back wages due,', 13829:'to anyone other than government contract administrators. b investigation report. thecontracting officer must review theinvestigation report on receipt andmakepreliminary findings.', 13830:'the contracting officer normally mustnot baseadverse findingssolely on employee statements that the employee doesnot wish tohavedisclosed. however, if the investigation', 13831:'establishes a pattern of possible violations thatare based on employees’ statements that are not authorized for disclosure, the pattern itself', 13832:'may support a finding of noncompliance. c contractor notification. after completing the review, the contracting officermust 1 provide the contractor', 13833:'any written preliminary findings and proposed corrective actions, and notice that the contractor has the right to request that the', 13834:'basis for the findings be made available and to submit written rebuttal information. 2 upon request, provide the contractor with', 13835:'rationale for the findings. however, under no circumstanceswill the contracting officerpermitthe contractor to examine the investigation report. also,the contracting officer', 13836:'must not disclose the identity of any employee who filed a complaint or who was interviewed, without the prior consent', 13837:'of the employee. 3 i the contractor may rebut the findings in writing within 60 days after it receives a', 13838:'copy of the preliminary findings. the rebuttal becomes part ofthe official investigationrecord. if the contractor submits arebuttal, evaluate the preliminary', 13839:'findings and notify the contractor of the final findings. iiif the contracting officer does notreceivea timely rebuttal,the contracting officermust consider', 13840:'the preliminary findings final. 4 if appropriate, request the contractor to make restitution for underpaid wages and assess liquidated damages.', 13841:'if the request includes liquidated damages, the request must state that the contractor has 60 days to request relief from', 13842:'such assessment. d contracting officer’s report. after taking the actions prescribed in paragraphs b and c of this subsection 1', 13843:'the contractingofficer mustprepare and forwarda report of any violations, includingfindings andsupporting evidence, to the agency head. standard form 1446, labor', 13844:'standards investigation summary sheet, is the first page of the report; and 2 the agency head must process the report', 13845:'as follows: ithe contracting officer must send a detailed enforcement report to the administrator, wageand hour division, within 60 days', 13846:'after completion of the investigation, if a a contractor or subcontractor underpaid by $1,000 or more; b the contracting officerbelieves', 13847:'that the violations are aggravated or willful or there is reason to believe that the contractor has disregardedits obligations to', 13848:'employees and subcontractors under the construction wage rate requirements statute; 22.4069 federal acquisition regulation c the contractor or subcontractor has', 13849:'not made restitution; or d future compliance has not been assured. ii if the department of labor expressly requested the', 13850:'investigation and none of the conditions in paragraph d2 iof this subsection exist, submita summary report to the administrator, wage', 13851:'andhourdivision. the report must include a a summary of any violations; b the amount of restitution paid; c the number', 13852:'of workers who received restitution; dthe amount of liquidated damages assessed under the contract workhours and safety standards statute; e', 13853:'corrective measures taken; and f any information that may be necessary to review any recommendations for an appropriate adjustment in', 13854:'liquidated damages. iii if none of the conditions in paragraphs d2i or ii of this subsection are present, close the', 13855:'case and retain the report in the appropriate contract file. iv if substantial evidence is found that violations are willful', 13856:'and in violation of a criminal statute, generally 18 u.s.c. 874 or 1001, forward the report supplemented if necessary to', 13857:'the attorney general of the united states for prosecution if thefactswarrant. notify the administrator,wage and hour division,when the report is', 13858:'forwarded for the attorney general’s consideration. e department of labor investigations. the department of labor will furnish the contracting officer', 13859:'anenforcement report detailing violations found and any corrective action taken by the contractor,in investigations that disclose 1 underpayments totaling $1,000', 13860:'or more; 2 aggravated orwillful violationsor, when the contracting officer believes that the contractor has disregarded its obligations toemployees and', 13861:'subcontractors under the construction wage rate requirementsstatute; or 3 potential assessmentof liquidated damagesunder thecontract work hours and safety standards statute.', 13862:'f other investigations. the department of labor will provide a letter summarizing the findings of the investigation to the contracting', 13863:'officerforall investigations that are not described in paragraph e ofthis subsection. 22.4069withholding from or suspension of contract payments. a withholding', 13864:'from contract payments. if the contracting officer believesa violation existssee 22.4068, or upon request ofthe department of labor, the contracting', 13865:'officer must withhold frompaymentsduethe contractor an amount equal to the estimated wage underpaymentandestimated liquidated damages due theunited statesunder thecontract work', 13866:'hours and safety standards statute. see 22.302. 1 if the contracting officer believes aviolation exists or uponrequest of thedepartment oflabor,', 13867:'the contracting officer must withhold funds from any current federal contractor federally assisted contractwith the same prime contractor that is', 13868:'subjectto either construction wage rate requirements statute or contract workhours and safety standards statute requirements. 2 if a subsequent investigation', 13869:'confirms violations, the contractingofficer must adjust thewithholding as necessary. however, if the departmentof laborrequested the withholding, thecontracting officer must not', 13870:'reduceor releasethe withholding without written approval of the department of labor. 3 use withheld funds as provided in paragraph c', 13871:'of this subsection to satisfy assessed liquidated damages, and unless the contractor makes restitution, validated wage underpayments. b suspension of', 13872:'contract payments. if a contractor or subcontractor fails or refuses to comply with the labor standards clauses ofthe construction wage', 13873:'raterequirements statute and related statutes, the agency, upon its own action or upon thewritten request of the department of labor,', 13874:'must suspend any further payment, advance,or guarantee of funds until the violations cease or until the agency has withheld sufficientfundsto', 13875:'compensate employees for back wages,andto cover any liquidated damages due. c disposition of contract payments withheld or suspended 1 forwarding', 13876:'wage underpayments to the secretary of labor. upon final administrative determination, if the contractoror subcontractor has not made restitution, the', 13877:'contracting officer must follow the departmentof labor guidance published in wage and hour division, all agency memorandum aam no. 215,', 13878:'streamlining claims for federal contractor employees act. the aam no. 215 can be obtained at http:// www.dol.gov/whd/govcontracts/dbra.htm; under guidance there', 13879:'is a link for all agencies memoranda aams. 2 returning of withheld funds to contractor. when funds withheld exceed the', 13880:'amount required to satisfy validated wageunderpayments and assessed liquidated damages, return the funds tothe contractor. subpart 22.4 labor standards for', 13881:'contracts involving construction 22.40612 3 limitation on returning funds. if the department of labor requested the withholding or if the', 13882:'findings are disputed see 22.40610e, thecontracting officer must not returnthe funds to the contractor without approval by thedepartment of labor.', 13883:'4 liquidated damages.uponfinal administrative determination, the contractingofficer must dispose of funds withheld or collected for liquidated damages in accordance with', 13884:'agency procedures. 22.40610 disposition of disputes concerningconstructioncontract labor standards enforcement. a theareas ofpossible differences of opinion between contracting officers and', 13885:'contractors in construction contractlabor standards enforcement include 1 misclassification of workers; 2 hours of work; 3 wage rates and payment;', 13886:'4 payment of overtime; 5 withholdingpractices; and 6 the applicability of the labor standards requirements under varying circumstances. b generally,these', 13887:'differencesare settled administrativelyat the project level bythe contracting agency. if necessary, these differences may besettledwith assistance from the department of', 13888:'labor. c when requesting the contractor to take corrective action in laborviolation cases,the contracting officershallinform the contractor of the following:', 13889:'1 disputes concerning the labor standards requirements of the contract are handled under the contract clause at 52.22214, disputes concerning', 13890:'labor standards, and not under the clause at 52.2331, disputes. 2 the contractormay appeal the contractingofficer’s findings or part thereof', 13891:'by furnishing the contracting officera complete statement of the reasons for the disagreement with the findings. d the contractingofficer shall', 13892:'promptly transmitthe contracting officer’s findings and thecontractor’s statement to the administrator,wage and hour division. e theadministrator, wage and hour division,', 13893:'will respond directly to the contractor or subcontractor, with a copy to the contracting agency. the contractor or subcontractor may', 13894:'appeal the administrator’sfindings in accordance with theprocedures outlined in labor department regulations 29 cfr5.11. hearings before administrative law judges are', 13895:'conducted in accordance with 29 cfr part 6, and hearings before the labor department administrative review board are conducted in', 13896:'accordance with 29 cfr part 7. f the administrator, wage and hour division, may institute debarment proceedings against the contractoror', 13897:'subcontractor if the administrator finds reasonable cause to believe that the contractor or subcontractor has committed willful or aggravated violationsof', 13898:'the contract workhours and safetystandards statute or thecopelandantikickbackact, or any of the applicable statutes listed in 29 cfr 5.1 other', 13899:'than the construction wage rate requirementsstatute, or has committed violations of the construction wage rate requirements statute that constitute a', 13900:'disregard of itsobligations to employees or subcontractors under 40 u.s.c. 3144. 22.40611 contract terminations. if a contract or subcontract is', 13901:'terminated for violation of the labor standards clauses, the contracting agency shall submit a report to the administrator, wageandhour division.', 13902:'the report shall include a the number of the terminated contract; b the name and address of the terminated contractor', 13903:'or subcontractor; c thename and address ofthe contractor orsubcontractor, if any, who is tocomplete the work; d the amount and', 13904:'number of the replacement contract, if any; and e a description of the work. 22.40612 cooperation with the department of', 13905:'labor. a the contracting agency shall cooperate with representatives of the department of labor in the inspection of records, interviews', 13906:'withworkers,andallother aspectsof investigations undertaken by thedepartment oflabor. when requested, the contracting agency shall furnish to the secretary of labor any', 13907:'available information on contractors, subcontractors, current and previous contracts, and the nature of the contract work. b if a department', 13908:'of labor representative undertakes an investigation at a construction project, the contracting officer shall inquire into the scope of the', 13909:'investigation, and request to be notified immediately of any violations discovered under the 22.40613 federal acquisition regulation construction wage raterequirements', 13910:'statute,the contractwork hours and safety standards statute,or the copeland anti kickback act. 22.40613 semiannual enforcement reports. a semiannual report on', 13911:'compliance with and enforcement of the construction labor standards requirements of the construction wage raterequirements statute and contract work hoursand', 13912:'safety standards statute is required from each contracting agency. the reporting periods are october 1 through march 31 and april', 13913:'1 through september 30. the reports shall only contain information as to the enforcement actions of the contracting agency and', 13914:'shall be prepared as prescribed in department of labor memoranda and submitted to the department of labor within 30 days', 13915:'after the end of the reporting period. this report has been assigned interagency report control number 1482dolsa. 22.407 solicitation provision', 13916:'and contract clauses. a insert the following clauses in solicitations and contracts in excess of $2,000 for construction within the', 13917:'united states: 1 52.2226, construction wagerate requirements. 2 52.2227, withholding of funds. 3 52.2228, payrolls and basic records. 4 52.2229,', 13918:'apprentices andtrainees. 5 52.22210, compliance with copeland act requirements. 6 52.22211, subcontracts labor standards. 7 52.22212, contract terminationdebarment. 8 52.22213,', 13919:'compliance with construction wage rate requirementsandrelatedregulations. 9 52.22214, disputes concerning labor standards. 10 52.22215, certification of eligibility. b insert the', 13920:'clause at 52.22216,approval of wage rates, insolicitationsandcontracts in excessof $2,000 for costreimbursement construction to be performed within the united states,', 13921:'except for contracts with a state or political subdivision thereof. c a contract that is not primarily for construction may', 13922:'contain a requirement for some construction work to be performed in the united states. if under 22.402b the requirements of', 13923:'this subpart apply to the construction work, insert in such solicitations and contracts the applicable construction labor standards clauses required', 13924:'in this section and identify the item or items of construction work towhich the clausesapply. d [reserved] e insert the', 13925:'clause at 52.22230, construction wage rate requirementsprice adjustmentnoneor separately specified pricing method, in solicitations and contracts if the contract is', 13926:'expected to be 1 a fixedprice contract subjectto theconstructionwage rate requirements statute that will contain option provisions by whichthe contracting', 13927:'officer mayextend the term of the contract,and the contracting officerdeterminesthe most appropriate contract price adjustment method is the method at', 13928:'22.40412c1 or 2; or 2 a costreimbursable typecontract subject tothe construction wage raterequirements statute that willcontain option provisions by which', 13929:'the contracting officer may extend theterm of thecontract. f insert the clause at 52.22231,constructionwage rate requirementsprice adjustment percentage method,in solicitations', 13930:'and contracts if thecontract is expected to be a fixedprice contract subjectto theconstructionwage rate requirements statute that will contain optionprovisionsby', 13931:'which thecontracting officer may extend the term of the contract, and the contracting officer determines themost appropriate contract price adjustment', 13932:'method is the method at 22.40412c 3. g insert the clause at 52.22232,constructionwage rate requirementsprice adjustment actual method, in solicitations', 13933:'and contracts if thecontract is expected to be a fixedprice contract subjectto theconstructionwage rate requirements statute that will contain optionprovisionsby', 13934:'which thecontracting officer may extend the term of the contract, and the contracting officer determines themost appropriate method to establishcontract', 13935:'priceis the method at 22.40412c 4. h insert the provision at 52.2225,constructionwage rate requirementssecondarysite of thework, in solicitations in excess', 13936:'of $2,000 for construction within the united states. subpart 22.5 use of project labor agreements for federal construction projects 22.504', 13937:'subpart 22.5 use of project labor agreements for federal construction projects 22.501scope of subpart. this subpart prescribes policies and procedures', 13938:'to implement executive order 14063, use of project labor agreements for federal construction projects, dated february 4, 2022 3 cfr,', 13939:'2023 comp., pp 335–338. 22.502definitions. as used in this subpart construction means construction,reconstruction, rehabilitation, modernization, alteration, conversion, extension, repair, or', 13940:'improvement of buildings, structures, highways, or other real property. labor organization means a labor organization as defined in 29 u.s.c.', 13941:'1525 of which building and construction employees are members. largescale construction project means a federal construction project within the united', 13942:'states for which the total estimated cost of the construction contract to the federal government is $35 million or more.', 13943:'project labor agreement means aprehire collective bargaining agreement with one or more labor organizations that establishes the terms and conditions', 13944:'of employment for a specific construction project and is an agreement described in 29 u.s.c. 158f. 22.503 policy. a executive', 13945:'order e.o. 14063, use of project labor agreements for federal construction projects, requires agencies to useproject labor agreements in largescale', 13946:'construction projects to promote economy and efficiency in the administration and completion of federal construction projects. b when awarding a', 13947:'contract inconnection witha largescale construction project see 22.502, agencies shall require use of project labor agreements for contractors and subcontractors', 13948:'engaged in construction on the project, unless an exception at 22.504d applies. c an agency may require the use of', 13949:'a project labor agreement on projects where the total cost to the federal government is less than that for alargescale', 13950:'construction project, if appropriate. 1 an agency may, if appropriate, require thatevery contractorand subcontractor engaged inconstruction on the project agree,', 13951:'for that project, to negotiate or become a party to a project labor agreement with one or more labor organizations', 13952:'ifthe agency decides that the use of project labor agreements will— iadvance the federal governments interest in achieving economyandefficiencyin federalprocurement,', 13953:'producing labormanagementstability, and ensuring compliance with laws andregulations governing safety andhealth,equal employment opportunity, labor and employment standards, and other matters;', 13954:'and iibe consistentwith law. 2 agencies may consider the following factors in deciding whether the use of a project labor', 13955:'agreement is appropriate for a construction project where the totalcostto thefederal government is less than that for alargescale construction project:', 13956:'i the project will require multiple construction contractors and/or subcontractors employing workers in multiple crafts or trades. ii there is', 13957:'a shortage of skilled labor in the region in which the construction project will be sited. iii completion of the', 13958:'project will require an extended period of time. iv project labor agreements have been used on comparable projects undertaken by', 13959:'federal, state, municipal, or private entities in the geographic area of the project. v a project labor agreement will promote', 13960:'the agencys long term program interests, such as facilitating the training of a skilled workforce to meet the agencys future', 13961:'construction needs. vi any other factors that the agency decides are appropriate. d for indefinitedelivery indefinitequantity idiq contracts the use', 13962:'of a project labor agreement may be required on an orderbyorder basis rather than for the entire contract. for an', 13963:'order at or above $35 million an agency shall require the use of a project labor agreement unless an exception', 13964:'applies. see 22.504d3 and 22.505b3. 22.504 generalrequirementsfor project labor agreements. a general. project labor agreements established under this subpart shall', 13965:'fully conform to all statutes, regulations, and executive orders. federal acquisition regulation b requirements. a project labor agreement shall 1', 13966:'bind all contractors and subcontractors engaged in construction on the construction project to comply with the project labor agreement; 2', 13967:'allow all contractors and subcontractors to compete for contracts and subcontracts without regard to whether they areotherwise parties to collective', 13968:'bargaining agreements; 3 contain guarantees against strikes, lockouts, and similar job disruptions; 4 set forth effective, prompt, andmutually bindingprocedures for', 13969:'resolvinglabor disputes arisingduring the term of the project labor agreement; 5 provide other mechanisms for labormanagement cooperation on matters of', 13970:'mutual interest and concern, including productivity, quality of work,safety, and health; and 6 include any additional requirements as the agency', 13971:'deems necessary to satisfy its needs. c labor organizations. an agency may not require contractors or subcontractors to enter into', 13972:'a project labor agreement with any particular labororganization. d exceptions to project labor agreement requirements— 1 exception. the senior procurement', 13973:'executive may grant an exception from the requirements at 22.503b, providing a specific written explanation of why at least one', 13974:'of the following conditions exists with respect to the particular contract: i requiring a project labor agreement on the project', 13975:'would not advance the federal governments interests in achievingeconomyand efficiency in federal procurement. the exception shall be basedon one or', 13976:'more of the following factors: athe project is of short duration and lacks operational complexity. b the project will involve', 13977:'only one craft or trade. c the project will involve specialized construction work that is available from only a limited', 13978:'number of contractors or subcontractors. dthe agencys need for the project isof such an unusual and compelling urgency that a', 13979:'project labor agreement would be impracticable. ii market research indicates that requiring a project labor agreement on the project would', 13980:'substantially reduce the number ofpotentialofferorsto such a degree that adequate competition ata fairand reasonable pricecould not be achieved. see 10.002b1', 13981:'and 36.104. a likely reduction in thenumber of potential offerors is not, byitself,sufficient to except a contract from coverage under', 13982:'this authority unless it is coupled with the finding that the reduction would not allow for adequate competition at a', 13983:'fair and reasonable price. iii requiring a project labor agreement on the project would otherwise be inconsistent with federal statutes,', 13984:'regulations, executive orders, or presidential memoranda. 2 considerations. when determining whether the exception in paragraph d1ii of this section applies,', 13985:'contracting officers shall considercurrent market conditions and the extentto whichprice fluctuationsmay be attributable to factors other than the requirement for', 13986:'a project labor agreement e.g., costs of labor or materials, supply chain costs. agencies may rely on price analysis conducted', 13987:'on recent competitive proposals for construction projects of a similar size and scope. 3 timing of the exception — i', 13988:'contracts other than idiq contracts. the exception must be granted for a particular contract by the solicitation date. ii idiq', 13989:'contracts. an exception shall be granted prior to the solicitation date if the basis for the exception cited would apply', 13990:'to all orders. otherwise, exceptions shall be granted for each order by the time of the notice of the intent', 13991:'to place an order e.g., 16.505b1. 22.505 solicitation provision and contract clause. when aproject labor agreement is usedfora construction project,the', 13992:'contracting officer shall— a 1 insert the provision at 52.22233, notice of requirement for project labor agreement, in solicitations containing', 13993:'the clause 52.222–34, project labor agreement. 2 use the provision with its alternate i if the agency will require the', 13994:'submission of a project labor agreement from only theapparent successful offeror, prior to contract award. 3 use the provision with', 13995:'its alternate ii if an agency allows submission of a project labor agreement after contract award except when alternate iii', 13996:'is used. 4 use the provision with its alternate iii when alternate ii of 52.22234 is used. subpart 22.5 use', 13997:'of project labor agreements for federal construction projects 22.505 b 1 insert the clause at 52.22234, project labor agreement, in', 13998:'solicitations and contracts associated with the construction project. 2 use the clause with its alternate i if an agency allows', 13999:'submission of the project labor agreement after contract award except when alternate ii is used. 3 use the clause with', 14000:'its alternate ii in idiq contracts when the agency will have project labor agreements negotiated on an orderbyorder basis and', 14001:'anticipates one or more orders may not use a project labor agreement. this page intentionally left blank. 22.54 subpart 22.6', 14002:'contracts for materials, supplies, articles, and equipment 22.605 subpart 22.6 contracts for materials, supplies, articles, and equipment 22.601[reserved] 22.602 statutory', 14003:'requirements. except for the exemptions at 22.604, all contracts subject to 41 u.s.c. chapter 65, the statute, and entered into', 14004:'by any executive department, independent establishment, or other agency or instrumentality of the united states, or by the district of', 14005:'columbia, or by any corporation all the stock of which is beneficially owned by the united states for the manufacture', 14006:'or furnishing of materials, supplies, articles, and equipment referred to in this subpart as supplies in any amount exceeding $15,000,', 14007:'shall include or incorporate by reference the stipulations required by the statute pertaining to such matters as minimum wages, maximum', 14008:'hours, child labor, convict labor,and safeandsanitary working conditions. 22.603 applicability. the requirements in 22.602 apply to contracts including for this', 14009:'purpose, indefinitedelivery contracts, basic ordering agreements, and blanket purchase agreements and subcontracts under section 8a of the small business act,', 14010:'for the manufacture or furnishing of supplies that a will be performed in the united states, puerto rico, or theu.s.', 14011:'virgin islands; b exceed or may exceed $15,000; and c are not exempt under 22.604. 22.604exemptions. 22.6041 statutory exemptions. contracts', 14012:'for acquisition of the following supplies are exempt from the statute: a any item in thosesituations where the contracting officeris', 14013:'authorized by the express language of a statute to purchase in the open market generally such as commercial products and', 14014:'commercial services, see part 12; or where a specific purchase is made under the conditions described in 6.3022 in circumstances', 14015:'where immediate delivery is required by the public exigency. b perishables, including dairy, livestock, and nurseryproducts. c agricultural or farm', 14016:'products processed for first sale by the original producers. d agricultural commodities or the products thereof purchased under contract by', 14017:'the secretary of agriculture. 22.6042 regulatory exemptions. a contracts for the following acquisitions are fully exempt from the statute see', 14018:'41 cfr50201.603: 1 public utility services. 2 supplies manufactured outsidethe unitedstates, puerto rico, and theu.s. virgin islands. 3 purchases against', 14019:'the account of a defaulting contractor where the stipulations of the statute were not included in the defaulted contract. 4', 14020:'newspapers, magazines, or periodicals, contracted for with sales agents or publisher representatives, which are to be delivered by the publishers', 14021:'thereof. b 1 upon the request of the agency head, the secretary of labor may exempt specific contracts or classes', 14022:'of contracts from the inclusion or application ofoneor more of theact’s stipulations; provided,that the request includes a finding bythe agency', 14023:'head stating the reasons why the conduct of government business will be seriously impaired unless the exemption is granted. 2', 14024:'those requests for exemption that relate solely to safety and health standards shall be transmitted to the assistant secretary for', 14025:'occupational safety and health u.s. department of labor washington, dc 202l0. all other requests shall be transmitted to the administrator', 14026:'of the wage and hour division u.s. departmentof laborwashington, dc 202 l0. 22.605 rulings and interpretations ofthe statute. a as', 14027:'authorized by the act, the secretary of labor has issued rulings and interpretations concerning the administration of the statute see', 14028:'41 cfr50206. the substance of certain rulings and interpretations is as follows: federal acquisition regulation 1 if a contract for', 14029:'$15,000 or less is subsequently modified to exceed $15,000, the contract becomes subject to the statute for work performed after', 14030:'the date of the modification. 2 if a contract for more than $15,000 is subsequently modified by mutual agreement to', 14031:'$15,000 or less, the contract is not subject to the statute for work performed after the date of the modification.', 14032:'3 if a contract awarded to a prime contractor contains a provision whereby the prime contractor is made an agent', 14033:'of the government, the prime contractor is required to include the stipulations of the statute in contracts in excess of', 14034:'$15,000 awarded for and on behalf of the government for supplies that are to be used in the construction and', 14035:'equipment of government facilities. 4 if a contract subject to the statute is awarded to a contractor operating governmentowned facilities,', 14036:'the stipulations of the statute affectthe employees of that contractor the same as employees ofcontractors operating privately owned facilities. 5', 14037:'indefinitedelivery contracts, including basic ordering agreements and blanket purchase agreements, are subject to the statute unless it can be determined', 14038:'in advance that the aggregate amount of all orders estimated to be placed thereunder for 1year after the effective date', 14039:'of the agreement willnot exceed $15,000. a determination shall be made annually thereafter if the contract or agreement is extended,', 14040:'and the contract oragreement modified if necessary. b [reserved] 22.606[reserved] 22.607[reserved] 22.608 procedures. a award. when a contract subject to', 14041:'the statute is awarded, the contracting officer, in accordance with regulations or instructions issued by the secretary of labor and', 14042:'individual agency procedures, shall furnish to the contractor dol publication wh1313, notice toemployees workingon government contracts. b breach of stipulation.', 14043:'in the eventof aviolation ofa stipulationrequired under the statute,the contracting officershall, in accordance withagency procedures, notify the appropriate regional office', 14044:'ofthe dol, wage and hour division see 29 cfr part 1, appendix b, and furnish any information available. 22.609[reserved] 22.610contract', 14045:'clause. the contractingofficer shall insertthe clause at 52.22220, contracts for materials, supplies, articles, and equipment, in solicitations and contracts covered', 14046:'by the statute see 22.603, 22.604, and 22.605. subpart 22.7 [reserved] subpart 22.7 [reserved] this page intentionally left blank. 22.72', 14047:'subpart 22.8 equal employment opportunity 22.802 subpart 22.8 equal employment opportunity 22.800scope of subpart. this subpart prescribes policies and procedures', 14048:'pertaining to nondiscrimination in employment by contractors and subcontractors. 22.801definitions. as used in this subpart affirmative action program means a', 14049:'contractor’s program that complies withdepartment oflabor regulations toensure equal opportunity in employment to minorities and women. compliance evaluation means any', 14050:'one or combination of actions that the office offederal contract compliance programs ofccp may take to examine a federal contractor’s', 14051:'compliance withoneor more of therequirements of e.o.11246. contractor includes the terms primecontractor and subcontractor. deputy assistant secretary means the deputy', 14052:'assistant secretary for federal contract compliance, u.s. department of labor, ora designee. equal opportunity clause means the clause at 52.22226,', 14053:'equal opportunity, as prescribed in 22.810e. e.o.11246 means partsii and iv of executive order11246, september 24,1965 30 fr12319, and any', 14054:'executive order amending or superseding this order see 22.802. this term specifically includes the equal opportunity clause at 52.22226, and', 14055:'the rules, regulations, and orders issued pursuantto e.o.11246 by thesecretaryof laboror adesignee. gender identity has the meaning given by the', 14056:'department of labor’s officeof federal contract compliance programs, and is found at www.dol.gov/ofccp/lgbt/lgbtfaqs.html. prime contractor means any person whoholds, or', 14057:'has held, agovernmentcontract subject toe.o.11246. recruiting and training agency means any person who refers workers to any contractor or provides', 14058:'or supervises apprenticeship ortraining for employment byanycontractor. sexual orientation hasthe meaninggiven bythe department of labor’s office offederal contract compliance programs,', 14059:'and is found at www.dol.gov/ofccp/lgbt/lgbtfaqs.html. site of construction means the general physical location ofanybuilding, highway, or other change or improvement', 14060:'to realpropertythat isundergoing construction,rehabilitation, alteration, conversion, extension,demolition, or repair; and any temporary location or facility at which a contractor or', 14061:'other participating party meets a demand or performs a function relating to a government contract or subcontract. subcontract means any', 14062:'agreement or arrangement between a contractor and any person in which the parties do not stand in the relationship of', 14063:'an employer and an employee 1 for the purchase, sale, or use of personal property or nonpersonal services that, in', 14064:'whole or in part, are necessary to the performance of any one or more contracts; or 2 under which anyportion', 14065:'of the contractor’sobligation underanyone or more contracts is performed, undertaken, or assumed. subcontractor means any person who holds, or hasheld,a', 14066:'subcontract subject to e.o.11246. the term firsttier subcontractor meansa subcontractor holding a subcontract with aprimecontractor. united states means the 50', 14067:'states, the district of columbia, puerto rico, the northern mariana islands, american samoa, guam, the u.s. virginislands, and wake island.', 14068:'22.802general. a executive order 11246, as amended, sets forth the equal opportunity clause and requires thatallagencies 1 include this clause', 14069:'in all nonexempt contracts and subcontracts see 22.807; and 2 act to ensure compliance with the clause and the regulations', 14070:'of the secretary of labor ito promote the full realization ofequalemploymentopportunity for all persons, regardlessof race, color, religion, sex, sexual', 14071:'orientation, genderidentity, or national origin; and iito prohibit contractors from discharging, or inany othermanner discriminating against, any employee or applicant', 14072:'for employment because the employee or applicant inquired about, discussed, or disclosed the compensation of the employee or applicant or', 14073:'another employee or applicant. this prohibition against discrimination does not apply to instances in which an employee who has access', 14074:'to the compensation information of other employees or applicants as a part of such employees essential job functions discloses the', 14075:'compensation of such other employees or applicants to individuals who do nototherwise have access to such information, unless such disclosure', 14076:'is in response to aformal complaint or charge, in federal acquisition regulation furtherance of aninvestigation, proceeding, hearing, or action, including', 14077:'an investigation conducted by the employer, or is consistent with the contractors legal duty to furnish information. b no contract', 14078:'or modification involving new acquisition shall be entered into, and no subcontract shall be approved by a contracting officer, with', 14079:'aperson who hasbeenfound ineligible by thedeputyassistant secretary for reasons of noncompliancewith the requirements ofe.o.11246. c no contracting officer or contractor', 14080:'shall contract for suppliesor services in a mannerso asto avoid applicability of the requirementsof e.o.11246. d contractor disputes related to', 14081:'compliance with its obligation shall be handled according to the rules, regulations, and relevant orders of the secretary of labor', 14082:'see 41 cfr601.1. 22.803responsibilities. a the secretary of labor is responsible for the 1 administration and enforcement of prescribed parts', 14083:'of e.o.11246;and 2 adoptionof rulesandregulations and the issuance of orders necessary to achieve the purposes of e.o.11246. b the secretary', 14084:'of labor has delegated authority and assigned responsibility to the deputy assistant secretary for carrying outthe responsibilities assignedto thesecretary by', 14085:'e.o.11246, except for the issuance of rules and regulationsof a general nature. c the head of each agency is responsible', 14086:'for ensuring that the requirements of this subpart are carried out within the agency, and for cooperating with and assistingthe', 14087:'ofccp in fulfilling itsresponsibilities. d in the event the applicability of e.o.11246 and implementing regulations isquestioned, the contracting officer shall', 14088:'forwardthe matter to thedeputyassistantsecretary, through agency channels, for resolution. 22.804 affirmative action programs. 22.8041 nonconstruction. except as provided in 22.807,', 14089:'each nonconstruction prime contractor and each subcontractor with 50 or more employees and either a contract or subcontract of $50,000', 14090:'or more, or government bills of lading that in any 12month period total, or can reasonably be expected tototal, $50,000', 14091:'or more, is required to develop a writtenaffirmativeaction program for each of itsestablishments. each contractor and subcontractor shall develop itswritten', 14092:'affirmative action programs within 120 days from the commencement of its first such government contract, subcontract, or government bill of', 14093:'lading. 22.8042 construction. a construction contractors that hold a nonexempt see 22.807 government construction contract are required to meet 1', 14094:'the contract terms and conditions citing affirmative action requirements applicable to covered geographical areas or projects; and 2 applicable requirements', 14095:'of 41 cfr601 and 60–4. b each agency shall maintain alistingof covered geographical areasthat aresubject to affirmative action requirements that', 14096:'specify goals for minorities and women in covered construction trades. information concerning, and additions to, this listing will be providedto', 14097:'the principally affected contractingofficers in accordance with agency procedures. anycontracting officer contemplating a construction project in excess of $10,000 withina', 14098:'geographic area notknown to be coveredby specific affirmative action goals shall request instructions on the most current information from the', 14099:'ofccp regional office, or as otherwise specified in agency regulations, before issuing the solicitation. c contracting officers shall give writtennotice', 14100:'to the ofccp regional office within 10 working days of award of a constructioncontract subject tothese affirmative actionrequirements. the notificationshallinclude', 14101:'the name, address, and telephone number of the contractor; employer identification number; dollar amount of the contract; estimated starting and', 14102:'completion dates of the contract; the contract number; and the geographical area in which the contract is to be performed.', 14103:'when requestedby the ofccp regionaloffice, the contractingofficer shall arrange a conference among contractor, contracting activity, and compliance personnel to discuss', 14104:'the contractor’s compliance responsibilities. 22.805 procedures. a preaward clearances for contracts and subcontracts of $10 million or more excluding construction.', 14105:'1 except as provided in paragraphs a4 and a8 of this section, if the estimated amount of the contract or', 14106:'subcontract is $10 million or more, thecontracting officer shall request clearance from the appropriate ofccp regionaloffice before subpart 22.8 equal', 14107:'employment opportunity 22.805 iaward of any contract, including any indefinitedelivery contract or letter contract; or iimodification of an existing contract', 14108:'for neweffort that wouldconstitute a contractaward. 2 preaward clearance for each proposed contract and for each proposed firsttier subcontract of', 14109:'$10 million or more shall berequested bythe contracting officer directly from the ofccp regional offices. verbal requests shall be confirmed', 14110:'by letter or facsimile transmission. 3 when the contract work is to be performed outside the united states with employees', 14111:'recruited within the united states,the contracting officer shall send the request for a preaward clearance to the ofccpregional officeservingthe area', 14112:'where the proposed contractor’s corporate home or branch office is locatedin theunited states, or the corporate location where personnel recruiting', 14113:'is handled, ifdifferentfrom the contractor’s corporate home or branch office. if the proposed contractor has no corporateoffice or location within', 14114:'the unitedstates, thepreaward clearance request action should be based on the location of the recruiting and training agency in the', 14115:'united states. 4 the contractingofficer does notneedto request a preaward clearanceif ithe specific proposedcontractor is listed in ofccp’s nationalpreaward registry', 14116:'via the internet at https:// www.dol.gov/agencies/ofccp/preaward/registry; iithe projected awarddate is within 24 months of the proposed contractor’s notice of compliance', 14117:'completion date in the registry; and iii the contracting officer documents the registry review in the contractfile. 5 the contractingofficer', 14118:'shall includethe following information in the preaward clearance request: iname, address, and telephone number of the prospective contractor and of', 14119:'any corporate affiliate at which work is to be performed. ii name, address, and telephone number of each proposed firsttier', 14120:'subcontractor with a proposed subcontract estimated at $10 million or more. iii anticipated date of award. iv information as to', 14121:'whether the contractor and firsttier subcontractors have previously held any government contracts or subcontracts. v place or places of performance', 14122:'of the prime contract and firsttier subcontracts estimated at $10 million or more, if known. vi the estimated dollar amount', 14123:'of the contract and each firsttier subcontract, if known. 6 the contractingofficer shall allowas muchtime as feasible before award for', 14124:'the conductof necessary compliance evaluationby ofccp. assoon as the apparentlysuccessfulofferor canbe determined, thecontracting officer shall processa preaward clearance request in', 14125:'accordance with agency procedures, assuring, if possible, that the preaward clearance request is submitted to the ofccp regionaloffice at least', 14126:'30 days before the proposed award date. 7 within 15 days of the clearance request, ofccp will informthe awarding agency', 14127:'ofits intention to conduct a preaward compliance evaluation. if ofccp does not inform the awarding agency within that period of', 14128:'its intention to conduct a preaward compliance evaluation, clearance shall be presumed and the awarding agency is authorized to proceed', 14129:'with the award. if ofccp informs the awarding agency of its intention to conduct a preaward compliance evaluation, ofccp shall', 14130:'be allowed an additional 20 days after the date that it so informs the awarding agency to provide its conclusions.', 14131:'if ofccp does not provide the awarding agency with its conclusions within that period, clearance shall be presumed and the', 14132:'awarding agency is authorized to proceed with the award. 8 if the procedures specified in paragraphs a6anda7 of this section', 14133:'would delay award ofan urgent and critical contractbeyond the time necessary to make award or beyondthe time specified inthe offer', 14134:'or extension thereof, the contracting officershallimmediately inform the ofccp regionaloffice of the expiration date of the offer orthe required date', 14135:'of awardand request clearance be provided beforethat date. if the ofccp regionaloffice advises that a preaward evaluation cannot be completed', 14136:'by the required date, the contracting officer shall submit written justification for the award tothe head of thecontracting activity, who,', 14137:'after informing theofccp regional office, may then approve the award without the preaward clearance. if anaward is made under this', 14138:'authority, the contracting officershallimmediately requesta postaward evaluation from the ofccp regionaloffice. 9 if, under the provisions of paragraph a8 of', 14139:'this section, a postaward evaluation determines the contractor to be in noncompliance with e.o.11246,the deputy assistant secretary may authorize the', 14140:'use of the enforcement procedures at 22.809 against the noncomplying contractor. b furnishing posters. thecontracting officer shall furnish to the', 14141:'contractor appropriate quantitiesof the posterentitled equal employment opportunity is the law. these shall beobtained inaccordance withagency procedures. federal acquisition regulation', 14142:'22.806inquiries. a an inquiry from a contractor regarding statusof its compliancewith e.o.11246, or rights of appeal toany of the actions', 14143:'in 22.809, shall bereferred to the ofccpregional office. b labor union inquiriesregarding the revision of a collective bargainingagreement inorder to', 14144:'comply with e.o.11246 shall bereferred to the deputy assistant secretary. 22.807exemptions. a under the followingexemptions, all or part of the', 14145:'requirementsof e.o.11246may be excludedfrom a contract subject to e.o.11246: 1 national security. the agency head may determine that a contract', 14146:'is essential to the national security and that the award of the contract without complying with one or more of', 14147:'the requirements of this subpart is necessary to the national security. upon makingsuch a determination, the agency shall notifythe deputy', 14148:'assistant secretary in writing within 30 days. 2 specific contracts. the deputy assistant secretary may exempt an agency from requiring', 14149:'the inclusion of one or more of the requirements of e.o.11246 in any contract if the deputy assistant secretary deemsthat', 14150:'special circumstances in the national interest so require. groups or categories of contracts of the same type may also be', 14151:'exempted if the deputy assistant secretary finds it impracticable to act upon each request individually or if group exemptions will', 14152:'contribute to convenience inthe administration of e.o.11246. b the following exemptions apply even though a contract or subcontract contains the', 14153:'equal opportunity clause: 1 transactions of $10,000 or less. the equal opportunity clause is required to be included in prime', 14154:'contracts and subcontracts by 22.802a. individual prime contracts or subcontracts of $10,000 or less are exempt from application of the', 14155:'equal opportunity clause, unless the aggregate value of all prime contracts or subcontracts awarded to a contractor in any 12month', 14156:'period exceeds, or can reasonably be expected to exceed, $10,000. note: government bills of lading, regardless of amount, are not', 14157:'exempt. 2 work outside the united states. contracts are exemptfrom the requirements ofe.o.11246 for work performed outside the united states', 14158:'by employees who were not recruited within the united states. 3 contracts with state or local governments. the requirements of', 14159:'e.o.11246 in any contract with a state or local government or any agency, instrumentality, or subdivision thereofshallnot be applicable toany', 14160:'agency, instrumentality, or subdivision of such government that does not participate in work on or under the contract. 4 work', 14161:'on or near indian reservations. itshallnot be a violation of e.o.11246 for a contractor to extend a publicly announced preference', 14162:'in employment to indians living on or near an indian reservation in connection with employment opportunities on or near an', 14163:'indian reservation. this applies to that area where a person seeking employment could reasonably beexpected to commute to and from', 14164:'in the course of a work day. contractors extending sucha preference shall not, however, discriminate among indians on the basis', 14165:'of religion,sex, sexual orientation, gender identity, or tribal affiliation, and theuse of such preference shall not excuse a contractor from', 14166:'complying with e.o.11246,rules and regulations of the secretary of labor, and applicable clauses in the contract. 5 facilities not connected', 14167:'with contracts. the deputy assistant secretary may exempt from the requirements of e.o.11246 any of a contractor’s facilities thatthe deputy', 14168:'assistant secretary finds to be in all respects separateanddistinct from activities of the contractor related to performing the contract, provided,', 14169:'that the deputy assistant secretary also finds that the exemption will not interferewith, orimpede the effectivenessof, e.o.11246. 6 indefinitequantity contracts.', 14170:'with respect to indefinitequantity contractsandsubcontracts, the equal opportunity clause applies unless the contracting officer has reason to believe thatthe amount', 14171:'to be ordered in anyyearunder thecontract will notexceed $10,000. the applicability of the equal opportunity clause shall be determined by', 14172:'the contracting officer at thetime ofaward for the firstyear, and annuallythereafter for succeeding years, if any. notwithstanding the above, the', 14173:'equal opportunity clause shall be applied to the contract whenever the amount of a single order exceeds $10,000. once the', 14174:'equal opportunity clause is determined to be applicable, the contract shall continue to be subject to such clause for its', 14175:'duration regardless of the amounts ordered, or reasonably expectedto beordered,in anyyear. 7 contracts with religious entities. pursuantto e.o. 13279,section 202', 14176:'of e.o. 11246,shallnot apply to a government contractor or subcontractor that isa religiouscorporation, association,educational institution, or society,with respect to the', 14177:'employment of individuals of a particular religion to perform work connected with the carrying on by such corporation, association, educational', 14178:'institution, or society of its activities. such contractors and subcontractors are not exemptedor excused fromcomplyingwith the other requirements containedin the', 14179:'order. subpart 22.8 equal employment opportunity 22.810 c to request anexemption under paragraph a2or b5 of this section, the contracting', 14180:'officershallsubmit, underagency procedures, a detailed justification for omitting all, or partof, the requirementsof e.o.11246. requests for exemptions under paragraph a2', 14181:'or b5 of this section shall be submitted to the deputy assistant secretary for approval. d the deputy assistant secretary', 14182:'may withdraw the exemption for a specific contract, or group of contracts, if the deputy assistant secretary deems that such', 14183:'action is necessary and appropriate to achieve the purposes of e.o.11246. such withdrawal shall not apply 1 to contracts awarded', 14184:'before the withdrawal; or 2 to any sealedbid contractincluding restricted sealed bidding, unless the withdrawalis made more than 10 days', 14185:'before the bid opening date. 22.808complaints. complaints received bythe contracting officeralleging violation of the requirements ofe.o.11246 shall be referred immediately', 14186:'to the ofccpregional office. the complainant shall be advisedin writing of the referral. the contractor that is thesubject of a', 14187:'complaint shall not beadvised in any manner or for any reason ofthe complainant’s name, the nature of the complaint, or', 14188:'the fact that the complaint was received. 22.809 enforcement. upon written notification to the contractingofficer, the deputy assistant secretary may', 14189:'direct one ormoreof the following actions, as well as administrative sanctions and penalties, be taken against contractors found to be', 14190:'in violation of e.o. 11246,the regulations of thesecretaryof labor, or the applicablecontract clauses: a publication of the names of the', 14191:'contractor or its unions. b cancellation, termination,or suspension ofthe contractor’s contracts or portion thereof. c debarment from future government contracts,', 14192:'or extensions or modifications of existing contracts, until the contractor has establishedand carriedout personnel and employment policies in compliance with', 14193:'e.o.11246 and the regulations of the secretary of labor. d referralby the deputy assistant secretary ofany matter arising under e.o.11246', 14194:'to the departmentof justice or to the equal employment opportunity commission eeoc for the institution of appropriate civil or criminal', 14195:'proceedings. 22.810 solicitation provisions and contract clauses. a when a contract is contemplated that will include the clause at 52.22226,', 14196:'equal opportunity, the contracting officer shall insert 1 the clause at 52.22221, prohibition of segregated facilities, in the solicitation and', 14197:'contract; and 2 the provision at 52.22222, previous contracts and compliance reports, in the solicitation. b the contractingofficer shall insertthe', 14198:'provisionat 52.22223, notice of requirement for affirmative actionto ensure equal employment opportunity for construction, in solicitations for construction when a', 14199:'contract is contemplated that will include the clause at 52.22226, equal opportunity, andthe amountof the contract isexpected to be in', 14200:'excess of $10,000. c thecontracting officer shall insert the provision at 52.22224, preaward onsite equal opportunity compliance evaluation, in solicitations', 14201:'other than those for construction when a contract is contemplated that will include the clause at 52.22226, equal opportunity,andthe amount', 14202:'of the contract isexpected be$10 million or more. d the contractingofficer shall insertthe provisionat 52.22225, affirmativeaction compliance, in solicitations, other', 14203:'than those for construction, when a contract is contemplated that will include the clause at 52.22226, equal opportunity. e thecontracting', 14204:'officer shall insert the clause at 52.22226, equal opportunity, in solicitations and contracts see 22.802 unless the contract isexempt from', 14205:'all of the requirements of e.o.11246 see 22.807a. if the contract is exempt from one or more, but not all,', 14206:'of the requirements ofe.o.11246, the contracting officer shall use the clause with its alternate i. f the contracting officer shall', 14207:'insertthe clause at 52.22227,affirmative action compliance requirements for construction, in solicitations and contracts for construction that will include the clause', 14208:'at 52.22226, equal opportunity, when the amount of the contract is expected to be in excess of $10,000. g the', 14209:'contractingofficer shall insertthe clause at 52.22229,notificationof visa denial, in contractsthat will include the clause at 52.22226, equal opportunity,if the contractor', 14210:'is requiredto perform in or on behalf of a foreign country. this page intentionally left blank. 22.86 subpart 22.9 nondiscrimination', 14211:'because of age 22.902 subpart 22.9 nondiscrimination because of age 22.901 policy. executive order11141, february 12,1964 29 fr2477, states that', 14212:'thegovernmentpolicyis as follows: a contractorsand subcontractors shall not, in connection with employment,advancement, ordischarge of employees, or the terms, conditions, or', 14213:'privileges of their employment, discriminate against persons because of their age except upon the basis of a bona fide occupational', 14214:'qualification, retirement plan, or statutory requirement. b contractors and subcontractors, or persons acting on their behalf, shall not specify in', 14215:'solicitations or advertisements for employees to work on government contracts, a maximum age limit for employment unless the specified maximum', 14216:'age limit is based upon a bona fide occupational qualification, retirement plan, or statutory requirement. c agencies will bring this', 14217:'policy to the attention of contractors. the use of contract clauses is not required. 22.902handling complaints. agencies shall bring complaints', 14218:'regarding a contractor’s compliance with this policy to that contractor’s attention in writing, if appropriate, stating the policy, indicating that', 14219:'the contractor’s compliance has been questioned, andrequesting that the contractor take any appropriate steps that may be necessary to comply.', 14220:'this page intentionally left blank. 22.92 subpart 22.10 service contract labor standards 22.10023 subpart 22.10 service contract labor standards 22.1000', 14221:'scope of subpart. this subpart prescribes policies and procedures implementing the provisions of 41 u.s.c. chapter 67, service contract labor', 14222:'standards formerly known as the service contract act of 1965, the applicable provisions of the fair labor standards act of', 14223:'1938, as amended 29 u.s.c.201, etseq., and related secretary of labor regulations and instructions 29 cfr parts 4, 6, 8,', 14224:'and 1925. 22.1001 definitions. as used in this subpart contractor includes a subcontractor at any tier whose subcontract is subject', 14225:'to the provisions of the statute. multiple year contracts means contracts having a term of more than 1 year regardless', 14226:'of fiscal year funding. the term includes multi year contracts see 17.103. united states means the 50 states, the district', 14227:'of columbia, puerto rico, the northern mariana islands, american samoa, guam,the u.s. virgin islands, johnston island,wake island, and theoutercontinental shelf', 14228:'as defined inthe outer continental shelf lands act 43 u.s.c.1331, etseq., but does not include any other place subject to', 14229:'u.s. jurisdiction or any u.s. base or possession within aforeign country 29 cfr 4.112. wage and hour division means the', 14230:'unit in the department of labor to which is assigned functions of the secretary of labor under the service contract', 14231:'labor standards statute. wage determination means a determination of minimum wages or fringe benefits made under 41 u.s.c.6703 or 6707c', 14232:'applicable to the employment in a given locality of one or more classes of service employees. 22.1002 statutory andexecutive order', 14233:'requirements. 22.10021 general. service contracts over $2,500 shall contain mandatory provisions regarding minimum wages and fringe benefits, safe and sanitary', 14234:'working conditions, notification to employees of the minimum allowable compensation, and equivalent federal employee classifications and wage rates. under 41', 14235:'u.s.c. 6707d, service contracts may not exceed 5 years. 22.10022 wage determinations based on prevailing rates. contractors performing on servicecontracts', 14236:'in excess of $2,500 to whichno predecessorcontractor’scollective bargaining agreement applies shall pay their employees at least the wages and fringe', 14237:'benefits found by the department of labor to prevail inthe locality or, in the absenceof awage determination, the minimum wageset', 14238:'forthin thefairlabor standards act. 22.10023 wage determinations based on collectivebargaining agreements. a successor contractors performing on contracts in excess of', 14239:'$2,500 for substantially the same services performed in the same locality must pay wages and fringe benefits including accrued wages', 14240:'and benefits and prospective increases at least equal to those contained in any bona fide collectivebargaining agreement entered intounder thepredecessor', 14241:'contract. this requirement is selfexecuting and is not contingent upon incorporating a wage determination or the wage and fringe benefit', 14242:'terms of thepredecessor contractor’s collectivebargaining agreement in the successor contract. this requirement will not apply if the secretary of labor', 14243:'determines 1 after a hearing, that the wages and fringe benefits are substantially at variance with those which prevail for', 14244:'services of a similar character in the locality; or 2 that the wages and fringebenefits are notthe result of arm’s', 14245:'length negotiations. b paragraphs in this subpart 22.10whichdealwiththisstatutoryrequirementandthedepartmentoflabor’s implementing regulations are 22.1010, concerning notification to contractors andbargaining representatives of procurement', 14246:'dates; 22.10122, explaining when a collective bargaining agreement will not applydueto late receipt by the contracting officer; and 22.1013 and', 14247:'22.1021, explaining when the application ofa collective bargaining agreement canbe challenged due to avariance with prevailing rates orlack of arm’s', 14248:'length bargaining. 22.10024 federal acquisition regulation 22.10024 application of the fair labor standards act minimum wage. no contractor or subcontractor', 14249:'holding a service contract for any dollar amount shall pay any of its employees working on the contract less than', 14250:'the minimum wage specified in section 6a1 of the fair labor standards act 29 u.s.c. 206. 22.10025 executive orders 13658', 14251:'and 14026. executive order e.o. 13658 establishedminimum wages for certain workers at $10.10 per hour. thee.o. 13658 rate has increased', 14252:'each year since 2015,rising to$11.25on january1, 2022. asof january 30, 2022, e.o. 13658 is superseded by e.o. 14026 to the', 14253:'extent that it is inconsistent with e.o. 14026; the minimum wage rate for certain workers is increased to $15.00 per', 14254:'hour. the wage rate is subject to annualincreases byan amountdetermined by thesecretaryof labor. see subpart 22.19. the clause at 52.22255,', 14255:'minimumwages for contractor workers underexecutive order 14026, requires the e.o. 14026 minimum wage rate to be paid if it is', 14256:'higher than other minimum wage rates, such as the subpart 22.10 statutory wage determination amount. 22.10026 executive order 13706. executive', 14257:'order 13706 establishes paid sick leave for employees of certain federal contractors. see subpart 22.21 and the clause at 52.22262,', 14258:'paid sick leave under executive order 13706. 22.1003 applicability. 22.10031 general. this subpart 22.10 applies to all government contracts, the', 14259:'principal purpose of which is to furnish services in the united states through the use of service employees, except as', 14260:'exempted in 22.10033 and 22.10034 of this section, or any subcontract atanytier thereunder. this subpart does not apply to individual', 14261:'contractrequirements for services incontracts not having as their principal purpose the furnishing of services. the nomenclature, type, or particular form', 14262:'of contract used by contracting agencies is not determinative of coverage. 22.10032 geographical coverage of the act. the service contract', 14263:'labor standards statute applies to service contracts performed in the united states see 22.1001. the service contract labor standards statute', 14264:'does not apply to contracts performed outside the united states. 22.10033 statutory exemptions. the service contract labor standards statute does', 14265:'not apply to a any contract for construction, alteration, or repair of public buildings or public works, including painting and', 14266:'decorating; b any work required to be done in accordance with the provisions of 41 u.s.c. chapter 65; c any', 14267:'contract for transporting freight or personnel by vessel, aircraft, bus, truck, express, railroad, or oil or gas pipeline where published', 14268:'tariff ratesare ineffect; d any contract for furnishing services by radio, telephone, or cable companies subject to the communications act', 14269:'of 1934; e any contract for public utility services; f any employment contract providing for direct services to a federal', 14270:'agency by an individual or individuals; or g any contract for operating postal contract stations for the u.s. postal service.', 14271:'22.10034 administrative limitations, variations, tolerances, and exemptions. a the secretary of labor may provide reasonable limitations and may make rules', 14272:'and regulations allowing reasonable variations, tolerances, and exemptions to and from any or all provisions of the service contract labor', 14273:'standards statute other than 41 u.s.c. 6707f. these will be made only in special circumstances where it has been determined', 14274:'that the limitation, variation, tolerance, or exemption is necessary and proper in the public interest or to avoid the serious', 14275:'impairment of government business, and is in accord with the remedial purpose of the service contract labor standards statute to', 14276:'protect prevailing labor standards 41 u.s.c. 6707b. see 29 cfr 4.123 for a listing of administrative exemptions, tolerances, and variations.', 14277:'requests for limitations, variances, tolerances, and exemptions from the service contract labor standards statute shall besubmitted in writingthroughcontracting channels and', 14278:'theagency labor advisor tothe wage and houradministrator. subpart 22.10 service contract labor standards 22.10034 b in addition to the statutory', 14279:'exemptions cited in 22.10033 of this subsection, the secretary of labor has exempted the following types of contracts from all', 14280:'provisions of the service contract labor standards statute: 1 contracts entered into by the united states with common carriers for', 14281:'the carriage of mail by rail, air except air star routes, bus, and ocean vessel, where such carriage is performed', 14282:'on regularly scheduled runs of the trains, airplanes, buses, and vessels over regularly established routes and accounts for an insubstantial', 14283:'portion of the revenue therefrom. 2 any contract entered into by the u.s. postal service with an individual owneroperator for', 14284:'mail service if it is not contemplated at the time the contract is made that the owneroperator will hire any', 14285:'service employee to perform the services underthe contract except for short periods ofvacation time or for unexpected contingencies or emergency', 14286:'situations such as illness, or accident. 3 contracts for the carriage of freight or personnel if such carriage is subject', 14287:'to rates covered by section 10721 of the interstate commerce act. c contracts for maintenance, calibration or repair of certain', 14288:'equipment. 1 exemption. the secretary of labor has exempted from the service contract labor standards statute contracts and subcontracts in', 14289:'which the primary purpose is to furnish maintenance, calibration, or repair of the following types of equipment, if the conditions', 14290:'at paragraph c2 of this subsection are met: iautomated data processing equipment and office information/word processing systems. ii scientific equipment', 14291:'and medical apparatus or equipment if the application of microelectronic circuitry or other technology of at least similar sophistication is', 14292:'an essential element for example, product or service code psc 6515, medicaland surgical instruments, equipment, and supplies; psc 6525, imaging', 14293:'equipment and supplies: medical, dental,veterinary; psc 6630, chemical analysisinstruments; and psc 6655, geophysical instruments, are largely composed of the types', 14294:'of equipment exempted in this paragraph. iii office/business machines not otherwise exempt pursuant to paragraph c1i of this subsection, if', 14295:'such services are performed by the manufacturer or supplier of the equipment. 2 conditions. the exemption at paragraph c1 of', 14296:'this subsection applies if all the following conditions are met for a contract or a subcontract: i the items of', 14297:'equipment to be serviced under the contract are used regularly for other than government purposes and are sold or traded', 14298:'by the contractor in substantial quantities to the general public in the course of normal business operations. ii the services', 14299:'will be furnished at prices which are, or are based on, established catalog or market prices for the maintenance, calibration,', 14300:'or repair of such equipment. as defined at 29 cfr 4.123e1iib a an established catalog price is a price included', 14301:'in a catalog price list, schedule, or other form that is regularly maintained by the manufacturer or the contractor, is', 14302:'either published or otherwise availableforinspectionby customers, and states prices at whichsales currently, or were last, made toa significantnumber of buyers', 14303:'constituting the general public. b an established market price is a current price, established in the usual course of trade', 14304:'between buyers and sellersfree to bargain, which can be substantiatedfrom sources independent of the manufacturer or contractor. iii the contractor', 14305:'will use the same compensation wage and fringe benefits plan for all service employees performing work under the contract as', 14306:'the contractor uses for these employees and equivalent employees servicing the same equipment of commercial customers. iv the apparent successful', 14307:'offeror certifies to the conditions inparagraph c2i through iii of this subsection. see 22.1006e. 3 affirmative determination and contract award.', 14308:'i for source selections where the contracting officer has established acompetitive range, if the contracting officer determines that one or', 14309:'more of the conditions in paragraphs 22.10034c2i through iii of anofferor’s certificationwill not bemet, the contracting officer shall identifythe deficiencyto', 14310:'theofferor before receipt of thefinal proposalrevisions. unless the offerorprovides a revised offer acknowledging applicability of the service contract labor standards', 14311:'statute or demonstrating to the satisfaction of the contracting officeran ability to meet all requiredconditions for exemption, the offer will', 14312:'notbe further considered for award. iithe contracting officer shall determine in writing the applicability of this exemptionto the contractbefore contract', 14313:'award. if the apparent successful offeror will meetallconditions in paragraphc2 of this subsection,the contracting officershallmakean affirmative determination and award the', 14314:'contract without theotherwise applicable service contract labor standards clauses. iii if theapparent successful offerordoes not certify to the conditions in', 14315:'paragraph c2i through iii of this subsection, the contracting officer shall incorporate in the contract theservice contract act clause see', 14316:'22.1006a and, if the contract will exceed $2,500, the appropriate department of labor wage determination see 22.1007. 22.10034 federal acquisition', 14317:'regulation 4 department of labor determination. i if the department of labor determines after award of the contract that any', 14318:'condition for exemption in paragraph c2 of this subsection has not been met, the exemption shall be deemed inapplicable, andthe', 14319:'contract shall becomesubject to the servicecontract labor standards statute, effective as ofthe date of the department of labor determination. in', 14320:'such case, the procedures at 29 cfr 4.123e1iv and 29 cfr 4.5c shall be followed. ii if the department of', 14321:'labor determines that any conditions in paragraph c2 of this subsection have not been met with respect to a subcontract,', 14322:'the exemption shall be deemed inapplicable. the contractor may be responsible for ensuring that the subcontractor complies with theservice contract', 14323:'labor standards statute, effective asof the date of the subcontract award. d contracts for certain services. 1 exemption. except as', 14324:'provided in paragraph d5 of this subsection, the secretary of labor has exempted from the service contract labor standards statute', 14325:'contracts and subcontracts in which the primary purpose is to provide the following services, if the conditions in paragraph d2', 14326:'of this subsection are met: i automobile or other vehicle e.g., aircraft maintenance services other than contracts or subcontracts to', 14327:'operate a government motor pool or similar facility. ii financial services involving the issuance and servicing of cards including credit', 14328:'cards, debit cards, purchase cards, smart cards, and similar card services. iii hotel/motel services for conferences, including lodging and/or meals,', 14329:'that are part of the contract or subcontract for the conference which must not include ongoing contracts for lodging on', 14330:'an as needed or continuing basis. iv maintenance, calibration, repair,and/or installation where the installation is not subject tothe construction wage', 14331:'raterequirements statute,as provided in 29 cfr4.116c2 services for all types of equipment where the services are obtained from the manufacturer', 14332:'or supplier of the equipment under a contract awarded on a sole source basis. v transportation by commoncarrierof persons by', 14333:'air, motor vehicle, rail,or marine vessel on regularly scheduled routes or via standard commercial services not including charter services. vi', 14334:'real estate services, including real property appraisal services, related to housing federal agencies or disposing of real property owned by', 14335:'the government. vii relocation services, including services of real estate brokers and appraisers to assist federal employees or military personnel', 14336:'in buying and selling homes which shall not include actual moving or storage of household goods and related services. 2', 14337:'conditions. the exemption for the services in paragraph d1 of this subsection applies if all the following conditions are met', 14338:'for a contract or for a subcontract: i a except for services identified in paragraph d1iv of this subsection, the', 14339:'contractor will be selected for award based on other factors in addition to price or cost, with the combination of', 14340:'other factors at least as important as price or cost; or b the contract will be awarded on a sole', 14341:'source basis. iithe services under the contractare offered and soldregularly to nongovernmental customers,andare provided by the contractor or subcontractor in', 14342:'the case of an exempt subcontract to the general public in substantial quantities in the course of normal business operations.', 14343:'iii the contract services are furnished at prices that are, or are based on, established catalog or market prices. as', 14344:'defined at 29 cfr 4.123e2iic a an established catalog price is a price included in a catalog, price list, schedule,', 14345:'or other form that is regularly maintained by the contractor, is either published or otherwise availableforinspectionby customers, and states prices', 14346:'atwhich sales are currently, or werelast, made to a significant numberof buyers constitutingthe general public; and b an established market', 14347:'price is a current price, established in the usual course of trade between buyers and sellersfree to bargain, which can', 14348:'be substantiatedfrom sources independent of the manufacturer or contractor. iv each service employee who will perform the services under the', 14349:'contract will spend only a small portion of his or her time a monthly average of less than 20 percent', 14350:'of the available hours on an annualized basis, or less than 20 percent of available hours during the contract period', 14351:'if the contract period is less than a month servicing the government contract. v the contractor will use the same', 14352:'compensation wage and fringe benefits plan for all service employees performing work under the contract as the contractor uses for', 14353:'these employees and equivalent employees servicing commercial customers. vi the contracting officer or contractor with respect to a subcontract determines', 14354:'in advance before issuingthe solicitation,based on thenature of the contract requirements andknowledge of thepractices of likelyofferors, that all or subpart', 14355:'22.10 service contract labor standards 22.10035 nearly all offerors will meetthe conditions in paragraph d2ii through v of this subsection.', 14356:'if the services are currently being performedunder contract, the contractingofficer or contractor with respect to asubcontract shall consider the practices', 14357:'of the existing contractor in making a determination regarding the conditions in paragraphs d2ii through v of this subsection. vii', 14358:'atheapparentsuccessfulofferorcertifiesthattheconditionsinparagraphsd2iithroughvwillbe met; and b forother thansolesource awards, the contracting officer determines that the same certification is obtained from substantially all', 14359:'other offerors that are 1 in the competitiverange, if discussions are to be conducted see far 15.306c; or 2 considered', 14360:'responsive, if award is to be made withoutdiscussions see far 15.306a. 3 contract award or resolicitation. i if the apparentsuccessfulofferor', 14361:'does not certify tothe conditions,the contracting officershallinsert in the contract the applicable service contract labor standards clauses see 22.1006 and,', 14362:'if the contract will exceed $2,500, the appropriate department of labor wage determination see 22.1007. iithe contracting officer shall awardthe', 14363:'contract without theotherwise applicable service contract labor standards clauses if athe apparent successful offeror certifiesto the conditions in paragraphs d2ii', 14364:'through v of this subsection; b the contracting officerdeterminesthat the samecertification isobtained from substantially all other offerors that are 1', 14365:'in the competitiverange, if discussions are to be conducted see far 15.306; or 2 considered responsive, if award is to', 14366:'be made withoutdiscussions see far 15.306a; and c the contracting officerhas noreason to doubt the certification. iii if theconditions in', 14367:'paragraphd3ii of this subsection arenot met, then the contracting officer shall resolicit, amending the solicitation by removing the exemption provision', 14368:'from the solicitation as prescribed at 22.1006e3. the contract will include the applicable service contract labor standards clauses as prescribed', 14369:'at 22.1006 and, if the contract will exceed $2,500, the appropriate department of labor wage determination see 22.1007. 4 department', 14370:'of labor determination. i if the department of labor determines after award of the contract that any conditions for exemption', 14371:'at paragraph d2 of this subsection have not been met, the exemption shall be deemed inapplicable, and the contract shall', 14372:'become subject to the service contract labor standards statute. in such case, the procedures at 29 cfr 4.123e2iii and 29', 14373:'cfr 4.5c shall be followed. ii if the department of labor determines that any conditions in paragraph d2 of this', 14374:'subsection have not been met with respect to a subcontract, the exemption shall be deemed inapplicable. the contractor may be', 14375:'responsible for ensuring that the subcontractor complies with theservice contract labor standards statute, effective asof the date of the subcontract', 14376:'award. 5 exceptions. the exemption at paragraph d1 of this subsection does not apply to solicitations and contracts subcontracts iawarded', 14377:'under, 41 u.s.c. chapter 85, committee for purchase from people who are blind or severely disabled see subpart 8.7. iifor', 14378:'the operation of a government facility, or part of a governmentfacility but may beapplicable to subcontracts for services; or iii', 14379:'subject to 41 u.s.c. 6707c see 22.10023. 22.10035 some examplesof contracts covered. the following examples, while not definitive or exclusive,', 14380:'illustrate some of the types of services that have been found to be covered by the service contract labor standards', 14381:'statute see 29 cfr4.130 for additional examples: a motor pool operation, parking, taxicab, and ambulance services. b packing, crating, and', 14382:'storage. c custodial, janitorial, housekeeping, and guard services. d food service and lodging. e laundry, drycleaning, linensupply, and clothing alteration', 14383:'and repair services. f snow, trash, and garbage removal. g aerial spraying and aerial reconnaissance for fire detection. h some', 14384:'support services at installations, including grounds maintenance and landscaping. 22.10036 federal acquisition regulation i certain specialized services requiring specific skills,', 14385:'such as drafting, illustrating, graphic arts, stenographic reporting, or mortuary services. j electronic equipment maintenance and operation and engineering support', 14386:'services. k maintenance and repair of all types of equipment, for example, aircraft, engines, electrical motors, vehicles, and electronic, office', 14387:'and related businessandconstruction equipment. but see 22.10034c1 and d1iv. loperation, maintenance, orlogistics supportof afederal facility. m data collection, processing and', 14388:'analysis services. 22.10036 repair distinguished from remanufacturing of equipment. a contracts principally for remanufacturing of equipment which is so extensive', 14389:'as to be equivalent to manufacturing are subject to 41 u.s.c. chapter 65, rather than to the service contract labor', 14390:'standards statute. remanufacturing shall be deemed to be manufacturing when the criteria in either paragraphs a1 or a2 of this', 14391:'section are met. 1 major overhaul of an item, piece of equipment, or material which is degraded or inoperable, and', 14392:'under which all of the following conditions exist: i the item or equipment is required to be completely or substantially', 14393:'torn down into individual component parts. ii substantially all of the parts are reworked, rehabilitated, altered and/or replaced. iii the', 14394:'parts are reassembled so as to furnish a totally rebuilt item or piece of equipment. iv manufacturing processes similar to', 14395:'those which were used in the manufacturing of the item or piece of equipment are utilized. v the disassembled components,', 14396:'if usable except for situations where the number of items or pieces of equipment involved are too few to make', 14397:'it practicable are commingled with existing inventory and, as such, lose their identification with respect to a particular piece of', 14398:'equipment. vi the itemsor equipment overhauled are restored to originallife expectancy, or nearly so. vii such work is performed in', 14399:'a facilityowned or operated by the contractor. 2 major modification of an item, piece of equipment, or material which is', 14400:'wholly or partially obsolete, and under which all of the following conditions exist: i the item or equipment is required', 14401:'to be completely or substantially torn down. ii outmoded parts are replaced. iii the item or equipment is rebuilt or', 14402:'reassembled. iv the contract work results in the furnishing of a substantially modified item in a usable and serviceable condition.', 14403:'v the work is performed in a facility owned or operated by the contractor. b remanufacturing does not include the', 14404:'repair of damaged or broken equipment which does not require a complete teardown, overhaul, and rebuild as described in subparagraphsa1', 14405:'and a2 of this subsection, or the periodic and routine maintenance, preservation, care, adjustment, upkeep, or servicing of equipment to', 14406:'keep it in usable, serviceable, working order. such contractstypicallyare billed onan hourly rate labor plus materials and parts basis. any', 14407:'contract principally for this type of work is subject to the service contract labor standards statute. examples of such work', 14408:'include the following: 1 repair of an automobile,truck, orothervehicle, construction equipment, tractor, crane, aerospace, airconditioning and refrigeration equipment, electric motors,', 14409:'and ground powered industrial or vehicular equipment. 2 repair of typewriters and other office equipment but see 22.10034c1 and d1iv.', 14410:'3 repair of appliances, radios, television sets, calculators, and other electronic equipment. 4 inspecting, testing, calibration, painting, packaging, lubrication, tuneup,', 14411:'or replacement of internal parts of equipment listed in subparagraphsb1, b2, and b3 of this subsection. 5 reupholstering,reconditioning, repair, and', 14412:'refinishing of furniture. 22.10037 questions concerning applicability of the service contract labor standards statute. if the contracting officer questions the', 14413:'applicability of the service contractlabor standardsstatuteto anacquisition, the contracting officershallrequest the advice ofthe agencylaboradvisor. unresolvedquestions shall be submittedin a timely', 14414:'mannerto the administrator, wage and hourdivision, for determination. 22.1004 department of labor responsibilities and regulations. under the service contract labor', 14415:'standards statute, the secretary of labor is authorized and directed to enforce the provisions of the service contract labor standards', 14416:'statute, make rules and regulations, issue orders, hold hearings, make subpart 22.10 service contract labor standards 22.1006 decisions, and take', 14417:'other appropriate action. the department of labor has issued implementing regulations on such matters as a service contract labor standards', 14418:'provisions and procedures 29 cfr part 4, subparta; b wage determination procedures29 cfr part 4, subparts a and b; c', 14419:'application of the service contract labor standards statute rulings and interpretations 29 cfr part 4, subpartc; d compensation standards 29', 14420:'cfr part 4, subpartd; e enforcement 29 cfr part 4, subparte; f safe and sanitary working conditions 29 cfr part', 14421:'1925; g rules of practice for administrative proceedings enforcing service contract labor standards 29 cfr part 6; and h practice', 14422:'before the administrative review board 29 cfr part 8. 22.1005 [reserved] 22.1006 solicitation provisions and contract clauses. a 1thecontractingofficershallinserttheclauseat 52.22241,', 14423:'service contract labor standards, in solicitations and contracts except as provided in paragraph a2 of this section if the contract', 14424:'is subject to the service contract labor standards statute and is i over $2,500; or iifor anindefinite dollar amount and', 14425:'thecontracting officer does not know in advance that the contract amount will be $2,500 or less. 2 the contractingofficer shall', 14426:'not insert the clause at 52.22241 or any of the associated service contract labor standards statute clauses as prescribed in', 14427:'this section for possible use when 52.22241 applies in the resultant contract if i the solicitation includes the provision at', 14428:'a 52.22248, exemption from application of the service contract labor standards statute to contracts for maintenance, calibration, or repair of', 14429:'certain equipmentcertification; b 52.22252, exemption from application of the service contract labor standards statute to contracts for certain servicescertification; or', 14430:'c either of the comparable certifications is checked as applicable in the provision at 52.2048c2 or 52.2123k; and iithe contracting', 14431:'officer has made the determination,in accordance with paragraphs c3 or d3 of subsection 22.10034, that the service contract labor standards', 14432:'statute does not apply to the contract. in such case, insert the clause at 52.22251, exemption from application of the', 14433:'service contract labor standards to contracts for maintenance, calibration, or repair of certain equipmentrequirements, or 52.22253, exemption from application of', 14434:'the service contract labor standards to contracts for certain servicesrequirements, in the contract, in accordance with the prescription at paragraph', 14435:'e2ii or e4ii of this subsection. b the contractingofficer shall insertthe clause at 52.22242, statement of equivalent rates for federal', 14436:'hires, in solicitations and contracts if the contract amount is expected to be over $2,500 and the service contract labor', 14437:'standards statute is applicable. see 22.1016. c 1thecontractingofficershallinserttheclauseat 52.22243, fair labor standards act and service contract labor standardsprice adjustment multiple', 14438:'yearand option contracts, oranother clause which accomplishes the same purpose, in solicitations and contracts if the contract is expected to', 14439:'be a fixedprice, timeandmaterials, or laborhour service contract containing the clause at 52.22241, service contract labor standards, and is a', 14440:'multiple year contract or is a contract with options to renew which exceeds the simplified acquisition threshold. the clause may', 14441:'be used in contracts that do not exceed the simplified acquisition threshold. the clause at 52.22243, fair labor standards act', 14442:'and service contract labor standardsprice adjustment multiple year and option contracts,applies to both contracts subjectto area prevailing wage determinationsand contracts', 14443:'subjectto theincumbent contractor’s collective bargaining agreement in effect during this contract’sprecedingcontract period see 22.10022 and 22.10023. contractingofficers shall ensure that', 14444:'contract prices or contract unit price labor rates are adjusted only to the extent that a contractor’s increases or decreases', 14445:'in applicable wages and fringe benefits are made to comply with the requirements set forth in the clauses at 52.22243', 14446:'subparagraphsd1, 2 and 3, or 52.22244 subparagraphsb1 and 2. for example, the prior year wage determination required a minimum wage', 14447:'rateof $4.00 per hour. the contractor actually paid $4.10. the new wagedeterminationincreases the minimumrate to$4.50. the contractorincreases the rate actuallypaid', 14448:'to $4.75 per hour. the allowable price adjustmentis $.40per hour. 22.1007 federal acquisition regulation 2 the contractingofficer shall insertthe clause', 14449:'at 52.22244, fair labor standards act and service contract labor standardsprice adjustment, in solicitations and contracts if the contract is', 14450:'expected to be a fixedprice, timeandmaterials, or laborhour service contract containing the clause at 52.22241, service contract labor standards, exceeds', 14451:'the simplified acquisition threshold, and is not a multiple year contract oris not a contract withoptionsto renew. the clause may', 14452:'beused in contracts that do not exceed the simplified acquisition threshold. the clause at 52.22244, fair labor standards act and', 14453:'service contract labor standardsprice adjustment, applies to both contracts subject to area prevailing wage determinations and contracts subject tocontractor collective', 14454:'bargaining agreements see 22.10022 and 22.10023. 3 the clauses prescribed in paragraph 22.1006c1 cover situations in which revised minimum wage', 14455:'rates are applied tocontracts by operation of law, or by revision of a wage determination inconnection withi exercise ofa contract', 14456:'option or iiextension of a multipleyear contractinto anew program year. if aclause prescribed in 16.2034d is used, it must not', 14457:'conflict with, or duplicate payment under, the clauses prescribedin this paragraph 22.1006c. d [reserved] e 1thecontractingofficershallinserttheprovisionat 52.22248, exemption from application', 14458:'of the service contract labor standards to contracts for maintenance, calibration, or repair of certain equipmentcertification, in solicitations that i', 14459:'include the clause at 52.22241, service contract labor standards; and ii the contract may be exempt from the service contract', 14460:'labor standards statute in accordance with 22.10034c. 2 the contractingofficer shall insertthe clause at 52.22251, exemption from application of the', 14461:'service contract labor standards to contracts for maintenance, calibration, or repair of certain equipmentrequirements i in solicitations that include the', 14462:'provision at 52.22248, or the comparable provision is checked as applicable in the clause at 52.2048c2iii or 52.2123k1; and iiin', 14463:'resulting contracts in which the contracting officer has determined, inaccordance with 22.10034c3, that theservice contract labor standards statute does not', 14464:'apply. 3 iexceptasprovidedinparagraphe3iiofthissection,thecontractingofficershallinserttheprovision at 52.22252, exemption from application of the service contract labor standards to contracts for certain servicescertification, in', 14465:'solicitations that a include the clause at 52.22241, service contract labor standards, and b the contract may be exempt from', 14466:'the service contract labor standards statute in accordance with 22.10034d. ii when resoliciting in accordance with 22.10034d3iii, amend the solicitation', 14467:'by removing the provision at 52.22252 from the solicitation. 4 the contractingofficer shall insertthe clause at 52.22253, exemption from application', 14468:'of the service contract labor standards to contracts for certain servicesrequirements i in solicitations that include the provision at 52.22252,', 14469:'or the comparable provision is checked as applicable in 52.2048c2 or 52.2123k2; and iiin resulting contracts in which the contracting', 14470:'officer has determined, inaccordance with 22.10034d3, that theservice contract labor standards statute does not apply. f the contracting officer shall', 14471:'insertthe clause at 52.22249, service contract labor standardsplace of performance unknown, if using the procedures prescribed in 22.10094. 22.1007 requirement', 14472:'to obtain wage determinations. the contractingofficer shall obtain wage determinations for the following service contracts: a each new solicitation and', 14473:'contract in excess of $2,500. b each contract modification which brings the contract above $2,500 and 1 extends the existing', 14474:'contract pursuant to an option clause or otherwise; or 2 changes the scopeof the contract whereby labor requirements areaffected significantly.', 14475:'c each multiple year contract in excess of $2,500 upon 1 annual anniversary date if the contract is subject to', 14476:'annual appropriations; or 2 biennial anniversary date if the contract is not subject to annual appropriations and its proposed term', 14477:'exceeds 2 yearsunlessotherwise advised by the wage and hour division. subpart 22.10 service contract labor standards 22.10082 22.1008 procedures for', 14478:'obtaining wage determinations. 22.10081 obtaining wage determinations. a contracting officers may obtain mostprevailing wage determinations using the wage determinations at', 14479:'sam.gov website. contracting officers mayalsouse the departmentof labor’s e98 electronic process,locatedon the wage determinations at sam.gov website, to requesta wage', 14480:'determination directly fromthe department of labor. if the wage determinations at sam.gov database does not contain the applicable prevailing wage', 14481:'determination for a contract action, the contracting officermust use thee98 process to request a wage determination from the department of', 14482:'labor. b in using the e98 process to obtain prevailing wage determinations,contracting officers shall provideas completeand accurate information on thee98', 14483:'as possible. contracting officers shall ensure thatthe email address submitted onan e98 request is accurate. c thecontracting officer must anticipate', 14484:'the amount of time required to gatherthe information necessary to obtain a wage determination, includingsufficient time, if necessary, to contact', 14485:'thedepartment oflabor to request wage determinationsthat arenot available through use of thewage determinations at sam.gov . d althoughthe wage determinations', 14486:'at sam.gov website provides assistance to the contracting agency to select the correct wage determination, the contracting agency remains responsible', 14487:'for the wage determination selected. if the contracting agency has used the e98 process, the department of labor will respond', 14488:'to the contracting agency based on the information provided on the e98. the contracting agency may rely upon the department', 14489:'of labor response as the correct wage determination for the contract. e to obtain the applicable wagedetermination for each contract', 14490:'action, the contractingofficer shall determine the following information concerning the service employees expected to be employed by the contractor and', 14491:'any subcontractors in performing the contract: 1 determine the classesof service employees to be utilizedin performanceof the contract usingthe wage', 14492:'and hour division’s service contract act directory of occupations directory. thedirectory can be found onwage determinations at sam.gov library page,', 14493:'and is for sale bythe superintendent of documents, u.s. government publishing office. 2 determine the locality where the services will', 14494:'be performed see 22.1009. 3 determine whether 41 u.s.c. 6707c applies see 22.10082, 22.1010 and 22.10022. 4 determine the wage', 14495:'rate that would be paid each class if employed by the agency and subject to the wage provisions of 5', 14496:'u.s.c. 5341 and/or 5332 see 22.1016. f ifthe contracting officer has questions regardingthe procedures for obtaininga wage determination, or questions', 14497:'regarding theselection of a wagedetermination,the contracting officer should request assistance from theagency labor advisor. 22.10082 successorship with incumbent contractor collectivebargaining', 14498:'agreement. a early in theacquisitioncycle, the contractingofficer shall determine whether 41 u.s.c. 6707c affects the new acquisition. the contractingofficer shall', 14499:'determine whether there is apredecessor contract coveredby the servicecontract labor standards statute and, if so, whether the incumbent prime contractor', 14500:'or its subcontractors and any of their employees have a collective bargaining agreement. b 41 u.s.c. 6707c provides that a', 14501:'successor contractor must pay wages and fringe benefits including accrued wages and benefits and prospective increases to service employees at', 14502:'least equal to those agreed upon by a predecessor contractor under the following conditions: 1 the services to be furnished', 14503:'under the proposed contract will be substantially the same as services being furnished by an incumbent contractor whose contract the', 14504:'proposed contract will succeed. 2 the services willbe performedin the samelocality. 3 the incumbent prime contractor or subcontractor is furnishing', 14505:'such services through the use of service employees whose wages and fringe benefits are the subject ofoneor more collective bargaining', 14506:'agreements. c the application of 41 u.s.c. 6707c is subject to the following limitations: 1 41 u.s.c. 6707cwill not apply', 14507:'ifthe incumbent contractorenters into a collective bargaining agreement for the first time and the agreement does not become effective until', 14508:'after theexpiration of the incumbent’scontract. 2 if the incumbent contractor enters into a new or revised collective bargaining agreement duringthe', 14509:'periodof the incumbent’s performance onthe current contract, the termsof the new or revised agreement shall not beeffective for the purposes', 14510:'of 41 u.s.c. 6707c under the following conditions: 22.1009 federal acquisition regulation i ainsealedbidding,thecontractingagencyreceivesnoticeofthetermsofthecollectivebargainingagreement less than 10 days before bid', 14511:'opening and finds that there is not reasonable time still available to notify bidders see 22.10122a; or b for contractual', 14512:'actions other than sealed bidding, the contracting agency receives notice of the terms of thecollective bargaining agreementafter award, provided that', 14513:'the start of performance is within 30 days ofaward see 22.10122b; and iithe contracting officer has given both the incumbentcontractor', 14514:'and its employees’ collective bargainingagent timely written notification of the applicable acquisition dates see 22.1010. d 1 if 41 u.s.c.', 14515:'6707capplies,thecontractingofficershallobtainacopyofanycollectivebargainingagreement between an incumbent contractor or subcontractor andits employees. obtaining a copy of anincumbent contractor’s collective bargaining agreement may involve', 14516:'coordinationwith the administrative contracting officer responsible for administering the predecessor contract. paragraph m of the clause at 52.22241, service contract', 14517:'labor standards, requires theincumbent prime contractor to furnishthe contracting officer a copy of each collectivebargaining agreement. 2 if the contracting', 14518:'officer has timelyreceived the collective bargaining agreement,the contracting officermay use thewage determinations at sam.gov website to prepare a wage determination', 14519:'referencing the agreement and incorporate that wage determination, attached to a complete copy of the collective bargaining agreement,into the successor', 14520:'contract action. in using the wage determinations at sam.gov process,itis not necessaryto submita copy of the collective bargaining agreement to', 14521:'the department of labor unless requested to do so. 3 the contractingofficer may also use the e98 process on wage', 14522:'determinations at sam.gov to request that the department of labor prepare the cover wage determination. the department of labor’s response', 14523:'to the e98 may include a request for the contracting officer to submit a complete copy of the collectivebargaining agreement.', 14524:'anyquestions regarding theapplicability ofthe servicecontract laborstandards statute to a collective bargaining agreement should bedirected to theagency labor advisor. e 1', 14525:'41 u.s.c. 6707c will not apply if the secretary of labor determines i after a hearing, that the wages and', 14526:'fringe benefits in thepredecessor contractor’s collective bargaining agreement are substantially at variance withthose whichprevail for services of a similar characterin', 14527:'the locality,or ii that the wages and fringe benefits in the predecessor contractor’s collective bargaining agreement arenot the result of', 14528:'arm’s length negotiations see 22.1013 and 22.1021. the department of labor dolhas concluded that contingent collective bargaining agreement provisions that', 14529:'attempt tolimita contractor’s obligations by means such as requiring issuance of a wage determination by the dol, requiring inclusion of', 14530:'the wage determination in the contract, or requiring the government to adequately reimbursethe contractor, generally reflecta lack of arm’s length', 14531:'negotiations. 2 if the contracting officer’s review see 22.1013indicates that monetary provisions of the collective bargaining agreementmay be substantially atvariance', 14532:'or maynot have been reached asa result of arm’s length bargaining, the contracting officershallimmediately contact the agency labor advisor to', 14533:'consider iffurther action is warranted. f ifthe services are being furnishedat more thanonelocationandthe collectively bargainedwage rates and fringe benefits are', 14534:'different atdifferentlocations or do notapply to one or more locations, the contracting officer shall identify the locations to which the', 14535:'agreements apply. g if the collective bargainingagreement does not applyto all serviceemployees under the contract, thecontracting officer shall accesswage determinations', 14536:'at sam.gov to obtain the prevailing wage determination for those service employee classifications that are notcovered by thecollective bargaining agreement.', 14537:'the contracting officer shall separately list in the solicitation and contract the service employee classifications 1 subjectto the collective bargaining', 14538:'agreement; and 2 not subject to any collective bargaining agreement. 22.1009 place of performance unknown. 22.10091 general. if the place', 14539:'ofperformance is unknown, the contracting officer may use theprocedures in this section. the contracting officer should first attemptto identify the', 14540:'specific places or geographical areas where the services might beperformed see 22.10092 and then may follow the procedures either in', 14541:'22.10093 or in 22.10094. 22.1010 subpart 22.10 service contract labor standards 22.1010 22.10092 attempt to identify possible places of performance.', 14542:'the contractingofficer should attempt to identify the specificplaces orgeographical areas where the services might be performed. the following may indicate', 14543:'possible places of performance: a locations of previous contractors and their competitors. b databases available via the internet for lists', 14544:'of prospective offerors and contractors. c responses to a presolicitation notice see 5.204. 22.10093 all possible places of performance identified.', 14545:'a if the contracting officercan identify allthe possible placesor areasof performance even though the actual place of performance will not', 14546:'be known until the successful offeror is chosen, the contracting officer shall obtain awage determination for each locality where services', 14547:'may be performed see 22.1008. b if the contracting officer subsequently learnsof any potential offerors inpreviously unidentified places before the', 14548:'closing date for submissionof offers, the contracting officer shall 1 obtain wage determinations for the additional places of performance and', 14549:'amend the solicitation to include all wage determinations. if necessary, the contracting officershallextend the timeforsubmission of final offers; and 2', 14550:'follow the procedures in 22.10094. 22.10094 all possible places of performance not identified. if the contracting officer believes that theremay', 14551:'be offerors interestedin performingin unidentified places or areas, the contracting officermay usethe following procedures: a include the following information in', 14552:'the synopsis and solicitation: 1 that the place of performance is unknown. 2 the possible places or areas of performancethat', 14553:'the contracting officer has already identified. 3 that the contracting officer willobtainwage determinationsforadditional possible places of performance if asked to', 14554:'do so in writing. 4 the time and dateby which offerors must notifythe contracting officer of additional places of performance.', 14555:'b include the information required by paragraphs a2 and a4 of this section in the clause at 52.22249, service contract', 14556:'labor standards–place of performance unknown see 22.1006f. the closing dateforreceipt of offerors’ requests for wagedeterminations for additional possibleplaces ofperformance should', 14557:'allow reasonabletime for potential offerors to review the solicitationanddetermine theirinterest in competing. generally, 10to 15 days fromthe dateof issuanceof the', 14558:'solicitation may be considered a reasonable period of time. c the procedures in 14.304 shall apply to latereceipt of offerors’', 14559:'requests for wage determinations for additional places of performance. however, late receipt ofan offeror’s request for a wage determination for', 14560:'additional places of performance doesnot preclude the offeror’s competing for the proposed acquisition. d if the contracting officer receives any', 14561:'timely requests for wage determinations for additionalplaces ofperformance the contracting officershall 1 obtain wage determinations for the additional places of', 14562:'performance; and 2 amend thesolicitation to includeallwage determinationsand, if necessary, extend the time for submissionof final offers. e if the', 14563:'successful offeror did not make a timelyrequest for awage determination and will performin a place of performanceforwhich the contracting officer', 14564:'therefore did notrequest awage determination, thecontracting officer shall 1 award thecontract; 2 obtain a wage determination; and 3 incorporate the', 14565:'wage determination in the contract, retroactive to the date of contract award and with no adjustment in contract price, pursuant', 14566:'to the clause at 52.22249, service contract labor standards–place of performance unknown. 22.1010 notificationto interested parties under collective bargaining agreements.', 14567:'a thecontracting officer should determinewhetherthe incumbent prime contractor’s orits subcontractors’ service employees performing onthe current contractare represented bya collectivebargaining agent.', 14568:'if there is a collective bargainingagent, the contracting officer shall giveboth the incumbent contractor andits employees’ collective bargaining agent written', 14569:'notification of 1 the forthcoming successor contract and the applicable acquisition dates issuance of solicitation, opening of bids, commencement of', 14570:'negotiations, award of contract, or start of performance, as the case may be; or 22.1011 22.1011 federal acquisition regulation 2', 14571:'the forthcoming contract modification and applicable acquisition dates exercise of option, extension of contract, change in scope, or start of', 14572:'performance, as the case may be; or 3 the forthcoming multiple year contract anniversary date annual anniversary date or biennial', 14573:'date, as the case may be. b this written notification must be given at least 30 days in advance of', 14574:'the earliest applicable acquisition date or the applicable annual or biennial anniversary date in order for the timeofreceipt limitations in', 14575:'paragraphs 22.10122a and b to apply. the contractingofficer shall retain a copy of the notification in the contractfile. 22.1011 [reserved]', 14576:'22.1012 applicability of revisions towage determinations. 22.10121 prevailing wage determinations. a 1thewageandhouradministratormayissuerevisionstoprevailingwagedeterminationsperiodically. theneed for inclusion of a revised prevailing wage', 14577:'determination in a solicitation, contract or contract modification see 22.1007 is determined by the date of receipt of the revised', 14578:'prevailingwage determination by the contracting agency. notethe distinction betweenreceipt by the agency and receipt by the contracting officer whichmay occurlater.', 14579:'ifor purposes of using wage determinations at sam.gov, the time of receipt by the contracting agency shall be the first', 14580:'day of publication of the revised prevailing wage determination on the website. ii for purposes of using the e98 process,', 14581:'the time of receipt by the contracting agency shall be the date the agency receives actual notice of a new', 14582:'or revised prevailing wage determination from the department of labor as an e98 response. 2 in selecting a prevailing wagedeterminationfrom', 14583:'the wage determinations at sam.gov website for use in a solicitation or other contract action, the contracting officershallmonitor thewage determinations', 14584:'at sam.gov website to determine whether the applicable wage determinationhas been revised. revisions published onthe wage determinations at sam.gov website', 14585:'or otherwisecommunicated to thecontracting officer withinthe timeframes prescribed at 22.10121b and c are effective and must be included inthe resulting', 14586:'contract. monitoring can be accomplished byuse ofthe wage determinations at sam.gov website’s alert service. b the following shall apply when', 14587:'contracting by sealed bidding: a revised prevailing wage determination shall not be effective if it is received by the contracting', 14588:'agencyless than 10days beforethe opening ofbids, and thecontracting officer finds that there is not reasonable time to incorporate the revision', 14589:'in the solicitation. c for contractual actions other than sealed bidding, a revised prevailing wage determination received by the contracting', 14590:'agency after award of a new contract or a modification as specified in 22.1007bshallnot be effectiveprovidedthat the start of performance', 14591:'is within 30 days of the award or the specified modification. if the contract does not specify a start of', 14592:'performance date which is within 30 days of the award or the specified modification, and if contract performance does not', 14593:'commence within 30 days of the award or the specified modification, any revision received by the contracting agency not less', 14594:'than 10 days before commencement of the work shall be effective. d if the contracting officer has submitted an e98', 14595:'to the department of laborrequesting a prevailing wage determination and has not received a response within10 days, thecontracting officer shall', 14596:'contact thewage and hour divisionby telephone to determine when the wage determination can be expected. the telephone number is provided', 14597:'on the e98 website. 22.10122 wage determinations based on collectivebargaining agreements. a insealed bidding,a new or changed collectivebargaining agreement shall', 14598:'notbe effective under 41 u.s.c. 6707c if the contractingagency has receivednotice of theterms ofthe newor changed collective bargaining agreement less', 14599:'than 10 days before bidopening and the contractingofficer determines that there is not reasonable time to incorporate the new or', 14600:'changed terms of the collective bargaining agreement in the solicitation. b for contractual actions other than sealedbidding, anew or changedcollective', 14601:'bargaining agreementshallnot be effective under 41 u.s.c. 6707c if notice of the terms of the new or changedcollective bargaining agreementis', 14602:'received by the contracting agency after award of a successor contract or a modification as specified in 22.1007b, provided that', 14603:'the contract start of performance is within 30 days of the award of the contract or of the specified modification.', 14604:'if the contract does not specify a start of performance date which is within 30 days of the award of', 14605:'the contract or of the specified modification, or if contract performance does not commence within 30 days of the award', 14606:'of the contract or of the specified modification, any notice ofthe terms of a new or changed collective bargainingagreement receivedby', 14607:'the agency not less 22.1012 subpart 22.10 service contract labor standards 22.1016 than 10 days before commencement of the work', 14608:'shall be effective for purposes of thesuccessor contract under 41 u.s.c. 6707c. c the limitations in paragraphs a and b', 14609:'of this subsection shall apply only if timely notification required in 22.1010 has been given. d if the contracting officer', 14610:'has submitted an e98 to department of labor requesting awage determination basedon a collective bargaining agreement and has not received', 14611:'a response from the department of laborwithin 10 days, the contracting officershallcontactthe wage and hourdivision by telephone to determine when', 14612:'the wage determination can be expected. the telephone number is provided on the e98 website. if the department of labor', 14613:'is unable to provide the wagedetermination by the latest date needed to maintain the acquisition schedule, the contractingofficer shall incorporate', 14614:'thecollective bargaining agreementitself in a solicitation or other contract action e.g., exercise of option and include a wagedetermination referencingthat collective', 14615:'bargaining agreement created by use of the wage determinations at sam.gov website see 22.10081d2. 22.1013 review of wage determination. a', 14616:'based on incumbent collective bargaining agreement. 1if wages, fringe benefits, or periodic increases provided for in a collective bargaining agreement', 14617:'vary substantially from thoseprevailing for similar services in the locality, the contracting officer shall immediately contact theagency labor advisor to', 14618:'considerinstituting theprocedures in 22.1021. 1 if the contracting officer believes that an incumbent or predecessor contractor’s agreementwas not theresult of', 14619:'arm’s length negotiations, the contracting officer shall contact the agencylabor advisor to determineappropriateaction. b based on other than incumbent collective', 14620:'bargaining agreement. upon receiving a wage determination not predicated upona collectivebargaining agreement, the contracting officer shall ascertain 1 if the', 14621:'wage determination does not conform with wages and fringe benefits prevailing for similar services in the locality; or 2 if', 14622:'the wage determination contains significant errors or omissions. if either subparagraph b1 or b2 of this section is evident, the', 14623:'contracting officershallcontact the agency labor advisor to determine appropriate action. 22.1014 delay over 60 days in bid opening or commencement', 14624:'of work. if a wage determination was obtained through the e98 process, and bid opening, or commencement of work under', 14625:'a negotiated contract has been delayed, for whatever reason, more than 60 days from the date indicated on the previously', 14626:'submitted e98, the contracting officer shall submita new e98. any revision ofa wage determination receivedby the contracting agency as a', 14627:'result of that communication shall supersede the earlier response as the wage determination applicable to the particular acquisition subject to', 14628:'the time frames in 22.10121b and c. 22.1015 discovery of errors by the department of labor. if the department of', 14629:'labordiscovers and determines, whether before orafter acontract award,that a contracting officer made an erroneous determination that the service contract labor', 14630:'standards statute did not apply to a particular acquisition or failedto include an appropriate wage determination ina coveredcontract, the contracting', 14631:'officer, within 30 days of notificationby the department of labor, shall include in the contract the clause at 52.22241 and', 14632:'any applicable wage determination issued by the administrator. if the contract is subjectto 41 u.s.c. 6707c, the administrator may require', 14633:'retroactive application ofthat wagedetermination. the contracting officer shall equitably adjust the contract price toreflect any changed cost of performance resulting', 14634:'from incorporating a wage determination or revision. 22.1016 statement of equivalentrates for federal hires. a the statement required under the', 14635:'clause at 52.22242, statement of equivalent rates for federal hires, see 22.1006b shall set forth those wage rates and fringe', 14636:'benefits that would be paid by the contracting activity to the various classes of service employees expected to be utilized', 14637:'under the contract if 5 u.s.c.5332 general schedulewhite collar and/ or 5 u.s.c.5341 wage boardblue collar were applicable. b procedures', 14638:'for computation of these rates are as follows: 1 wages paid blue collar employees shall bethe basic hourly rate for', 14639:'each class. the rate shall bewage board pay schedule step two for nonsupervisory service employees and step three for supervisory', 14640:'service employees. 2 wages paid white collar employees shall be anhourly rate for each class. the rate shall be obtained', 14641:'by dividing the general pay schedule step one biweekly rate by 80. 3 local civilian personnel offices can assistin determining', 14642:'and providing grade and salarydata. 22.1013 22.1017 federal acquisition regulation 22.1017 [reserved] 22.1018 notification to contractors and employees. the contractingofficer', 14643:'shall take the following steps to ensure that serviceemployees are notifiedof minimum wages and fringe benefits. a as soon as', 14644:'possible after contract award, inform the contractor of the labor standards requirements of the contract relating to the servicecontract labor', 14645:'standards statute and of the contractor’s responsibilitiesunder these requirements, unless it is clear that the contractor is fully informed. b', 14646:'at the time ofaward, furnishthe contractor department of labor publication wh1313, notice to employees working on government contracts, for posting', 14647:'at a prominent and accessible place at the worksite before contract performance begins. the publication advises employees of the compensation', 14648:'wages and fringe benefits required to be paid or furnished under the service contract labor standards statute and satisfies the', 14649:'notice requirements in paragraph g of the clause at 52.22241, service contract labor standards. c attach any applicable wage determination', 14650:'to publication wh1313. 22.1019 additional classes of service employees. a if the contracting officeris aware that contract performance involves classes', 14651:'ofservice employees not includedin thewage determination, thecontracting officer shall requirethe contractor to classify the unlisted classes so as to provide', 14652:'a reasonable relationship i.e., appropriate level of skill comparison between the unlisted classifications and the classifications listed in the determination', 14653:'see paragraph c of the clause at 52.22241, service contract labor standards. the contractor shall initiate the conforming procedure before', 14654:'unlisted classes of employees perform contract work. the contractor shall submit standard form sf 1444, request for authorization of additional', 14655:'classification and rate. the contracting officer shall reviewthe proposed classification and rate and promptly submitthe completed sf 1444 which must', 14656:'include information regarding the agreement or disagreement of the employees’ representative or the employees themselves together with the agency recommendation', 14657:'and all other pertinentinformationto thewage and hour division. within 30 days of receipt ofthe request, thewage and hour division will', 14658:'1 approve, modify, or disapprove the request when the parties are in agreementor 2 render a final determination in theeventof', 14659:'disagreement among the parties. if the wage and hour division will require more than 30 days to take action, it', 14660:'will notify the contracting officerwithin 30 days of receipt ofthe request that additional time is necessary. b somewage determinationswill list', 14661:'a series of classeswithin a job classification family,forexample, computer operators, leveli, ii, and iii, or electronic technicians, level i, ii,', 14662:'and iii, orclerk typist, level i and ii. generally, level i is the lowest level. it is the entry level,', 14663:'and establishment of a lower level through conformance is not permissible. further, trainee classifications may not be conformed. helpers in', 14664:'skilled maintenance trades for example, electricians, machinists, and automobile mechanics whose duties constitute, in fact, separate and distinct jobs may', 14665:'also be used if listed on the wage determination, but may not be conformed. conformance may not be used to', 14666:'artificially split or subdivide classifications listed in the wage determination. however, conformingprocedures may be used ifthe work which an employee', 14667:'performs under the contract is not within the scope of any classification listed on the wage determination, regardless of job', 14668:'title. see 29 cfr 4.152. c subminimum rates for apprentices, student learners, and disabled workers are permissible in accordance with', 14669:'paragraph q of the clause at 52.22241, service contract labor standards. 22.1020 seniority lists. if a contract is performed at', 14670:'afederal facility where employeesmay be hired/retained by a succeeding contractor, theincumbent prime contractor is required to furnish a certified list', 14671:'ofallservice employees on thecontractor’s or subcontractor’s payroll during the lastmonth ofthe contract, together with anniversary dates of employment, to the', 14672:'contracting officerno later than 10days beforecontract completion. see paragraph n of the clauseat 52.22241, service contractlabor standards. at thecommencement ofthe', 14673:'succeeding contract, the contracting officer shall providea copy of the list to the successor contractor for determining employee eligibility for', 14674:'vacation or other fringe benefits which are based upon length of service, including service with predecessor contractors if such benefit', 14675:'is required by an applicable wage determination. 22.1014 subpart 22.10 service contract labor standards 22.1024 22.1021 request for hearing. a', 14676:'a contracting agency or other interested party may request a hearing on an issue presented in 22.1013a. to obtain a', 14677:'hearing for the contracting agency, the contracting officer shall submita written request through appropriate channels ordinarily the agency labor advisor', 14678:'to— administrator,wage and hour division u.s. department of labor washington,dc 20210 b a request for a substantial variancehearing shall include', 14679:'sufficientdata toshow that the rates at issuevary substantially from those prevailing for similar services in the locality. the requestshallalsoinclude 1', 14680:'the number of the wage determinations at issue; 2 the name of the contracting agency whose contract is involved; 3', 14681:'a brief description of the services to be performed under the contract; 4 the status of the procurement and any', 14682:'estimated procurement dates, such as bid opening, contract award, and commencement date of the contract or its followup option period;', 14683:'5 a statement of theapplicant’s case, settingforth in detail the reasonswhy the applicant believes that a substantial variance exists with', 14684:'respect to some or all of the wages and/or fringe benefits; 6 names and addresses to the extent known of', 14685:'interested parties; and 7 any other data required by the administrator. c a requestforan arm’s length hearing shall include 1', 14686:'a statement of theapplicant’s case, settingforth in detail the reasonswhy the applicant believes that the wages and fringe benefits containedin', 14687:'thecollective bargaining agreementwere not reached as a result of arm’s length negotiations; 2 a statement regarding the status of the', 14688:'procurement and any estimated procurement dates, such as bid opening, contract award, and commencement date of the contract or its', 14689:'followup option period; and 3 names and addresses to the extent known of interested parties. d unless the administrator determines', 14690:'that extraordinary circumstances exist, the administrator will not consider requests for a hearing unless received as follows: 1 for sealed', 14691:'bid contracts, more than 10 days before the award of the contract; or 2 for negotiated contracts and for contracts', 14692:'with provisions exceeding the initial term by option, before the commencement date of the contract or the followup option period.', 14693:'22.1022 withholding of contract payments. any violations of the clause at 52.22241, service contract labor standards, as amended, renders the', 14694:'responsible contractor liable for the amount of any deductions, rebates, refunds, or underpayments which includes nonpayment of compensation due employees', 14695:'performing the contract. the contracting officermay withholdor, upon written request of thedepartment oflabor from a level no lower than thatof', 14696:'deputy regional administrator,wage and hour division, department of labor, shall withholdtheamount needed to pay such underpaid employeesfrom accrued payments due', 14697:'the contractor on the contract, or on any other prime contract whether subject to the service contract labor standards statute', 14698:'or not with the contractor. the agency shall place the amount withheldin a deposit fund. such withheld funds shall be', 14699:'transferred to the department of labor for disbursement to the underpaid employees on order of the secretary or authorized representatives,', 14700:'and administrative law judge, or the administrative review board. in addition, the department of labor has given blanket approval to', 14701:'forward withheld funds pending completion of an investigation or other administrative proceeding when disposition of withheld funds remains the final', 14702:'action necessary to close out a contract. 22.1023 termination for default. as provided by the service contract labor standards statute,', 14703:'any contractor failure to comply with the requirements of the contract clauses related to the service contract labor standards statute', 14704:'may be grounds for termination for default see paragraph k of the clause at 52.22241, service contract labor standards. 22.1024', 14705:'cooperation with the department of labor. the contractingofficer shall cooperate with department of laborrepresentativesin the examination of records, interviews with', 14706:'service employees, and all other aspects of investigations undertaken by the department. when asked, agencies shall furnish the wage and', 14707:'hour administrator or a designee, any available information on contractors, subcontractors, their contracts, and the natureof the contract services. the', 14708:'contracting officershallpromptly refer, in writing to the appropriate 22.1015 22.1025 federal acquisition regulation regional office of the department, apparent violations', 14709:'and complaints received. employee complaints shall not be disclosed to the employer. 22.1025 ineligibility of violators. persons or firms found', 14710:'to be in violation of the service contract labor standards statute will have an active exclusion recordcontained inthe system for', 14711:'award management see 9.404. no government contract may be awarded to any violator so listed because of a violation of', 14712:'the service contract labor standards statute, or to any firm, corporation, partnership, or association in which the violator has asubstantial', 14713:'interest, without the approval of thesecretary of labor. this prohibition against award to an ineligible contractor applies to both prime', 14714:'and subcontracts. 22.1026 disputes concerning labor standards. disputes concerning labor standards requirements of the contract are handled under paragraph t', 14715:'of the contract clause at 52.22241, service contract labor standards, and not under the clause at 52.2331, disputes. 22.1016 subpart', 14716:'22.11 professional employee compensation 22.1103 subpart 22.11 professional employee compensation 22.1101 applicability. the service contract act of 1965, now codified', 14717:'at 41 u.s.c. chapter 67, service contract labor standards, was enacted to ensure that government contractors compensate their bluecollar service', 14718:'workers and some whitecollar service workers fairly, but it does not cover bona fide executive, administrative, or professional employees. 22.1102', 14719:'definition. professional employee, as used in this subpart, means any person meeting the definition of employee employed in a bona', 14720:'fide . . . professional capacity given in 29 cfr541. the term embraces members of those professions having a recognized', 14721:'statusbased upon acquiring professionalknowledge through prolonged study. examples ofthese professionsinclude accountancy, actuarialcomputation, architecture, dentistry, engineering, law,medicine, nursing, pharmacy, the sciences', 14722:'such as biology, chemistry, and physics, and teaching. to be a professional employee,a person must not only bea professional but', 14723:'must be involvedessentiallyin discharging professional duties. 22.1103 policy,procedures, and solicitation provision. all professional employees shall be compensated fairly and properly.', 14724:'accordingly, thecontracting officer shall insert the provision at 52.22246, evaluation of compensation for professional employees, in solicitations for negotiated contracts', 14725:'when the contract amount is expected to exceed $750,000 and services are to be provided which will require meaningful numbers', 14726:'of professional employees. this provision requires that offerors submit for evaluation a total compensation plan setting forth proposed salaries and', 14727:'fringe benefits for professional employees working on the contract. supporting information will include data, such as recognized national and regional', 14728:'compensation surveys and studies of professional, public and private organizations, used in establishing the total compensation structure. plans indicatingunrealistically low', 14729:'professional employee compensation may be assessed adversely as one of the factors considered in making an award. this page intentionally', 14730:'left blank. 22.112 subpart 22.12 [reserved] subpart 22.12 [reserved] this page intentionally left blank. 22.122 subpart 22.13 equal opportunity for', 14731:'veterans 22.1302 subpart 22.13 equal opportunity for veterans 22.1300 scope of subpart. this subpart prescribes policies and procedures for implementing', 14732:'the following: a thevietnam era veterans’ readjustment assistance act of 1972 38u.s.c. 4211 and 4212 the act. b the veterans', 14733:'employment opportunitiesactof 1998, public law 105339. c thejobsforveterans act, publiclaw 107288. d executive order 11701, january24,1973 3 cfr 1971 1975', 14734:'comp., p. 752. e the regulations of the secretary of labor 41 cfr part 60300 and 61300. 22.1301 definitions. as', 14735:'used in this subpart active duty wartime or campaign badge veteran means a veteranwho served on active dutyin the u.s.', 14736:'military, ground, naval, or air service, during a war or in a campaign or expedition for which a campaign badge', 14737:'has been authorized under the laws administered by the department of defense. armed forces service medal veteran meansanyveteran who,while serving', 14738:'on active duty in the u.s. military,ground, naval, or air service, participated in a united states military operation for which', 14739:'an armed forces service medal was awarded pursuant to executive order 12985 61 fr 1209. disabled veteran means 1 a', 14740:'veteran of theu.s. military, ground, naval, or air service, whois entitled to compensation or who, but for the receipt ofmilitary', 14741:'retired pay, would be entitled to compensation under laws administered bythe secretary of veterans affairs; or 2 a person who', 14742:'was discharged or released from activeduty because of a serviceconnected disability. executive and senior management means 1 any employee i', 14743:'compensated on a salary basis at a rate of not less than $455 per week or $380 per week, if', 14744:'employed in american samoa by employers other than the federal government, exclusive of board, lodging, or other facilities; ii whose', 14745:'primary duty consists of the management of the enterprise in which the individual is employed or of a customarily recognized', 14746:'department or subdivision thereof; iii who customarily and regularly directs the work of two or more other employees; and iv', 14747:'who has the authority to hire or fire other employees or whose suggestions and recommendations as to the hiring or', 14748:'firing and as to the advancement and promotion or any other change of status of other employees will be given', 14749:'particular weight; or 2 any employee who owns at least a bona fide 20percent equity interest in the enterprise in', 14750:'which the employee is employed, regardless of whether the business isa corporateor other type of organization, and who is actively', 14751:'engagedin its management. protected veteran means a veteran who is protected under the nondiscrimination and affirmative actionprovisionsof 38 u.s.c. 4212;', 14752:'specifically, aveteran who may be classified asa disabledveteran, recently separated veteran, active duty wartime or campaign badge veteran, or an', 14753:'armed forces service medal veteran, as defined by this section. qualified disabled veteran means a disabled veteran who has the', 14754:'ability to perform the essential functions of the employment positions with or without reasonable accommodation. recently separated veteran means anyveteran', 14755:'duringthe threeyear period beginning on the date of suchveteran’s discharge or release from activedutyin theu.s. military, ground, naval, or air', 14756:'service. united states, means the 50 states, the district of columbia, puerto rico, the northern mariana islands, american samoa, guam,', 14757:'the u.s. virginislands, and wake island. 22.1302 policy. a contractors and subcontractors, when entering into contracts and subcontracts subject to', 14758:'the act, are required to 1 list all employment openings, with the appropriate employment service delivery system where the opening', 14759:'occurs, except for i executive and senior management positions; iipositions to be filled from withinthe contractors organization; and iii positions', 14760:'lasting three days or less. 22.1303 federal acquisition regulation 2 takeaffirmativeaction to employ, advance in employment, and otherwise treat qualified', 14761:'individuals, including qualified disabled veterans, without discrimination based upon their status as a protected veteran, in all employment practices; 3', 14762:'undertake appropriateoutreach and positiverecruitment activities thatare reasonablydesigned to effectively recruit protected veterans; and 4 establish a hiring benchmark and apply', 14763:'it to hiring of protected veterans in each establishment, on an annual basis, in the manner prescribed in the regulations', 14764:'of the secretary of labor. b except for contracts for commercial products or commercial services, or contracts that do not', 14765:'exceed the simplified acquisition threshold, contracting officersmust notobligateor expend funds appropriated for the agency for afiscalyear to enter into a', 14766:'contract for the procurement of personal property and nonpersonal services including construction with a contractor that hasnot submitted the required', 14767:'annual vets4212, federal contractor veterans’ employment report vets4212 report, with respect to the preceding fiscal year if the contractor was', 14768:'subject to the reporting requirements of 38 u.s.c. 4212d for that fiscal year. 22.1303 applicability. a the act applies to', 14769:'all contracts and subcontracts for personal property and nonpersonal services including construction of$150,000 or more except as waived bythe secretary', 14770:'of labor. b the requirements of the clause at 52.22235, equal opportunity for veterans, in any contract with a stateor', 14771:'local government or any agency, instrumentality, or subdivision do not apply to any agency, instrumentality, orsubdivision of that government that', 14772:'does not participate in work on or under the contract. c the act requires submission of the vets4212 report in', 14773:'all cases where the contractor or subcontractor has received anaward of $150,000 ormore, except for awards tostate and local governments,', 14774:'and foreignorganizations where the workers are recruited outside of the united states. 22.1304 procedures. to verify if a proposed contractor', 14775:'iscurrent with its submission of the vets4212 report,the contracting officer may a query the departmentof labor’s vets4212database via the internet', 14776:'at http://www.dol.gov/vets/vets4212.htm under filing verification and b contact the vets4212 customer support via email at vets4212customersupport@dol.gov for confirmation, if the', 14777:'proposed contractor represents that it has submitted the vets4212 report and is not listed on the verification file. 22.1305 waivers.', 14778:'a thedirector, office of federal contract compliance programs, department of labor, maywaive any or all ofthe terms of the clause', 14779:'at 52.22235, equal opportunity for veterans, for 1 any contract if a waiver is in the national interest; or 2', 14780:'groups or categories of contracts if a waiver is in the national interest and it is i impracticable to act', 14781:'on each request individually; and ii determined that the waiver will substantially contribute to convenience in administering the act. b', 14782:'the head of the agency may waive any requirement in this subpart when it is determined that the contract is', 14783:'essential to the national security, and thatits award withoutcomplyingwith such requirements isnecessary tothe national security. upon making such a determination,', 14784:'the head of the agency must notify the deputy assistant secretary of labor in writing within 30 days. c thecontracting', 14785:'officer must submit requests for waivers in accordance with agency procedures. d the deputy assistant secretary of labor may withdraw', 14786:'an approved waiver for a specific contract or group of contracts to be awarded, when in the deputy’s judgment such', 14787:'action is necessary to achieve the purposes of the act. the withdrawal does not apply to awarded contracts. for procurements', 14788:'entered into by sealed bidding, such withdrawal does not apply unless the withdrawal is made more than 10 calendar days', 14789:'before the date set for the opening of bids. 22.1306 department of labor notices and reports. a thecontracting officer must', 14790:'furnishto the contractor appropriate notices for postingwhen they are prescribed by the deputy assistant secretary of labor see http://www.dol.gov/ofccp/regs/compliance/posters/ofccpost.htm. b', 14791:'the act requires contractors and subcontractors to submit a report at least annually to the secretary of labor regarding employment', 14792:'of protected veterans i.e., active duty wartime or campaign badge veterans, armed forces service medal subpart 22.13 equal opportunity for', 14793:'veterans 22.1310 veterans, disabled veterans, and recently separated veterans, unless all of the terms of the clause at 52.22235, equal', 14794:'opportunity for veterans, have been waived see 22.1305. the contractor and subcontractor must file vets4212, federal contractor veterans’ employment reportsee', 14795:'vets4212 federal contractor reporting and filing your vets4212 report at http://www.dol.gov/vets/vets4212.htm. 22.1307 collective bargaining agreements. if performance under the clause', 14796:'at 52.22235, equal opportunity for veterans, may necessitate a revision of a collective bargainingagreement, the contractingofficer must advise the affected', 14797:'laborunionsthat the department of labor willgive them appropriate opportunity to presenttheir views. however, neither the contracting officer nor any representative', 14798:'of thecontracting officer may discusswith the contractor or anylabor representative any aspect of thecollective bargaining agreement. 22.1308 complaint procedures. following', 14799:'agency procedures, the contracting office must forward any complaintsreceived about theadministration of theactto the veterans’ employment and trainingservice of the', 14800:'department of labor, or to the director, office of federal contractcomplianceprograms, 200 constitution avenue, nw., washington, dc 20210, or to', 14801:'any ofccp regional, district, or area office or through the local veterans’ employmentrepresentative or designee, at the local state employment', 14802:'office. the director, office of federalcontract compliance programs, is responsible for investigating complaints. 22.1309 actions because of noncompliance. the contractingofficer', 14803:'musttake necessary actionas soon as possible upon notification by theappropriate agency official to implement any sanctions imposed on a contractor', 14804:'by the department of labor for violations of the clause at 52.22235, equal opportunity for veterans. these sanctions see41 cfr', 14805:'60300.66 may include a withholding progress payments; b terminationor suspension ofthe contract; or c debarment of the contractor. 22.1310 solicitation', 14806:'provisionand contract clauses. a 1 insert the clause at 52.22235,equalopportunityforveterans,insolicitationsandcontractsiftheexpectedvalue is $150,000 or more, except when iwork is performed outside', 14807:'the unitedstates by employees recruited outside theunited states; or iithe director,office of federal contractcomplianceprogramsof the u.s. department of labor,has waived,', 14808:'in accordance with 22.1305a, or the head of the agency has waived, in accordance with 22.1305b, all of the terms', 14809:'of the clause. 2 if the director,officeof federal contractcomplianceprograms of the u.s. department of labor,or the head of the agency', 14810:'waives one or more but not all of the terms of the clause, use the basic clause with its alternate', 14811:'i. b insert the clause at 52.22237,employment reports on veterans, in solicitations and contracts containing the clause at 52.22235, equal', 14812:'opportunity for veterans. c insert the provision at 52.22238,compliancewith veterans’ employmentreporting requirements, in solicitations when it is anticipated the contract', 14813:'award will exceed the simplified acquisition threshold and the contract is not for acquisition of commercial products or commercial services.', 14814:'this page intentionally left blank. 22.134 subpart 22.14 employment of workers with disabilities 22.1405 subpart 22.14 employment of workers with', 14815:'disabilities 22.1400 scope of subpart. this subpart prescribes policies and procedures for implementing section 503 of the rehabilitation act of', 14816:'1973, as amended 29 u.s.c. 793 theact; executive order11758, january 15,1974; and the regulations of the secretary of labor 41', 14817:'cfr part 60741. in this subpart, the terms contract and contractor include subcontract and subcontractor. 22.1401 policy. contractors and subcontractors,', 14818:'when entering into contracts and subcontracts subject to the act, are required to a take affirmative action toemploy,and advance in', 14819:'employment,qualified individuals with disabilities, and to otherwise treat qualified individuals without discrimination based on their physical or mental disability; b', 14820:'undertake appropriateoutreach and positiverecruitment activities thatare reasonablydesigned to effectively recruit qualified individuals with disabilities; and c compare the utilization of', 14821:'individuals with disabilities in their workforces to the utilization goal, as prescribed in the regulations of thesecretary of labor, on', 14822:'an annual basis. 22.1402 applicability. a section 503 of the act applies to all government contracts in excess of $15,000', 14823:'for supplies and services including construction except as waived by the secretary of labor. the clauseat 52.22236, equal opportunity for', 14824:'workers with disabilities, implements the act. b the requirements of the clause at 52.22236, equal opportunity for workers with disabilities,', 14825:'in any contract with a state orlocal governmentorany agency, instrumentality, or subdivision shall not apply toany agency, instrumentality, or subdivision', 14826:'of that government that does not participate in work on or under the contract. 22.1403 waivers. a thedirector of theoffice', 14827:'of federal contractcomplianceprogramsof the u.s. department of labor director of ofccp, may waive the application of any or all of', 14828:'the terms of the clause at 52.22236, equal opportunity for workers with disabilities, for 1 any contract if a waiver', 14829:'is deemed to be in the national interest; or 2 groups or categories of contracts if a waiver is in', 14830:'the national interest and it is i impracticable to act on each request individually; and ii determined that the waiver', 14831:'will substantially contribute to convenience in administering the act. b the head of an agency may waive any requirement in', 14832:'this subpart when it is determined that the contract is essential to thenationalsecurity, and that its award without complying with', 14833:'such requirements is necessary to thenational security. upon making such a determination, the head of the agency shall notify the', 14834:'director of ofccp in writing within 30 days. c thecontracting officer shall submitrequests for waivers inaccordancewith agency procedures. d a', 14835:'waiver granted for a particular class of contracts may be withdrawn for any contract within that class whenever considered necessary', 14836:'by the director of ofccp to achieve the purposes of the act. the withdrawal shall not apply to contracts awarded', 14837:'before the withdrawal. the withdrawal shall not apply to solicitations under any means of sealed bidding unless it is made', 14838:'more than 10 days before the date set for bid opening. 22.1404 department of labor notices. the contractingofficer shall furnishto', 14839:'the contractor appropriate notices that state the contractor’s obligationsandthe rightsof individuals withdisabilities. the contracting officer mayobtain these notices fromthe office', 14840:'of federal contract compliance programs ofccp regional office. 22.1405 collective bargaining agreements. if performance under the clause at 52.22236, equal', 14841:'opportunity for workers with disabilities, may necessitate a revision of a collective bargaining agreement, the contracting officer shall advise the', 14842:'affected labor unions thatthe department of labor will give them appropriateopportunity to present their views. however, neither the contracting officernorany', 14843:'representative of the contracting officer shall discuss with thecontractor or any labor representative any aspectof the collective bargaining agreement. 22.1406', 14844:'federal acquisition regulation 22.1406 complaint procedures. a followingagency procedures, the contracting office shall forward any complaints received aboutthe administration of', 14845:'the act to 1 director, office of federal contract compliance programs, u.s. department of labor, 200 constitution avenue, nw, washington,', 14846:'dc 20210; or 2 any ofccp regional or area office. b the ofccp shall institute investigation of each complaint and', 14847:'shall be responsible for developing a complete case record. 22.1407 actions because of noncompliance. the contractingofficer shall take necessaryaction,as soon', 14848:'as possible upon notification by theappropriateagency official,to implement any sanctionsimposedon acontractor by the department of labor for violations ofthe clause', 14849:'at 52.22236, equal opportunity for workers with disabilities. these sanctions see41 cfr60741.66 may include a withholding frompayments otherwise due; b', 14850:'terminationor suspension ofthe contract; or c debarment of the contractor. 22.1408 contract clause. a insert the clause at 52.22236, equal', 14851:'opportunity for workers withdisabilities, in solicitations and contracts that exceed or are expected to exceed $15,000, except when 1 both', 14852:'the performance of the work and the recruitment of workers will occur outside the united states, puerto rico, thenorthern mariana', 14853:'islands, american samoa, guam, the u.s. virginislands, and wake island; or 2 the director of ofccp or agency head has', 14854:'waived, in accordance with 22.1403a or 22.1403b all the terms of the clause. b if the director of ofccp or', 14855:'agency head waives one or more but not all of the terms of the clause in accordance with 22.1403a or', 14856:'22.1403b, use the basic clause with its alternate i. subpart 22.15prohibitionof acquisitionofproductsproducedby forcedor indenturedchildlabor22.1503 subpart 22.15 prohibition of acquisition of', 14857:'products produced by forced or indentured child labor 22.1500 scope. this subpart applies to acquisitions of supplies that exceed the', 14858:'micropurchase threshold. 22.1501 definitions. as used in this subpart forced or indentured child labor means all work or service 1', 14859:'exacted from any person under the age of 18 under the menace of any penalty for its nonperformance and for', 14860:'which theworker does not offer himself voluntarily; or 2 performed by any person under the age of 18 pursuant to', 14861:'a contract the enforcement of which can be accomplished by process or penalties. list of products requiring contractor certification as', 14862:'to forced or indentured child labor means the list published by the department of labor in accordance with e.o.13126 of', 14863:'june 12,1999, prohibition of acquisition of products produced by forced orindentured child labor. the list identifies products, by their country', 14864:'of origin, that the departmentsof labor, treasury, andstate have a reasonable basisto believe might have been mined, produced,or manufactured byforced', 14865:'or indentured child labor. 22.1502 policy. agencies must take appropriate action to enforce the laws prohibiting the manufacture or importation', 14866:'of products that have been mined, produced, or manufactured wholly orin part byforced or indentured childlabor, consistent with 19 u.s.c.1307,29', 14867:'u.s.c.201, etseq., and 41 u.s.c. chapter 65. agencies should make every effort toavoid acquiringsuch products. 22.1503 procedures for acquiring endproductson', 14868:'the list of productsrequiring contractor certification asto forced or indentured child labor. a when issuing asolicitation for supplies expectedto exceed', 14869:'the micropurchase threshold, the contracting officer must check the list of products requiring contractor certification as to forced or indentured', 14870:'child labor the list www.dol.gov/ilab/ see 22.1505a. appearance of a product on the list is not a bar to purchase', 14871:'of any such product mined, produced, or manufactured in theidentified country, but rather isan alertthat there isa reasonable basis to', 14872:'believe that such product mayhavebeenmined, produced, or manufacturedby forced orindentured child labor. b the requirements of this subpart that result', 14873:'from the appearance of any end product on the list do not apply to a solicitation or contract if the', 14874:'identified country of origin on the list is 1 israel, and the anticipated value of the acquisition is $50,000 or', 14875:'more see 25.406; 2 mexico, and the anticipated value of the acquisition is $102,280 or more see subpart 25.4; or', 14876:'3 armenia, aruba, australia, austria, belgium, bulgaria, canada, croatia, cyprus, czech republic, denmark, estonia, finland,france, germany, greece, hong kong, hungary,', 14877:'iceland, ireland, italy,japan, korea, latvia, liechtenstein, lithuania, luxembourg, malta, moldova, montenegro, netherlands, new zealand, north macedonia, norway, poland, portugal, romania,', 14878:'singapore, slovakrepublic, slovenia, spain, sweden, switzerland, taiwan, ukraine, or the united kingdom and the anticipated value of the acquisition is', 14879:'$174,000 or more see 25.402b. c except as provided in paragraph b of this section, before the contracting officer may', 14880:'make anaward for an end product regardless of country of origin of a type identifiedby country of origin on the', 14881:'list the offeror must certify that 1 it will not supply any end product on the list that was mined,', 14882:'produced, or manufactured in a country identified on thelist for that product,as specified inthe solicitationby the contractingofficer in the certification', 14883:'regarding knowledgeof child labor for listed end products; or 2 iithasmadeagoodfaithefforttodeterminewhetherforcedorindenturedchildlaborwasusedtomine, produce, or manufacture any end product to be furnished', 14884:'under the contract that is on the list and was mined, produced, or manufactured in a country identified on the', 14885:'list for that product; and iion the basis of those efforts, the offeroris unaware of any suchuse ofchild labor. d', 14886:'absent any actual knowledgethat the certification is false,the contracting officer must rely onthe offerors’ certifications in making award decisions. 22.1504', 14887:'federal acquisition regulation e whenever a contracting officer has reason to believe that forced or indentured childlaborwas used to mine,', 14888:'produce, or manufacture an end product furnished pursuant to a contract awarded subject to the certification required in paragraph c', 14889:'of this section, the contractingofficer mustrefer the matter for investigation by the agency’s inspectorgeneral, the attorney general, or the secretary', 14890:'of the treasury, whichever is determined appropriate in accordance with agency procedures, except to the extent that the end product', 14891:'is from the country listed in paragraph b of this section, under a contract exceeding the applicable threshold. f proper', 14892:'certification will not prevent the head of an agency from imposing remedies in accordance with section 22.1504a4 if it is', 14893:'later discovered that the contractor has furnished an end product or component that has in fact been mined, produced, or', 14894:'manufactured, wholly or in part, using forced or indentured child labor. 22.1504 violations andremedies. a violations. the government may impose', 14895:'remedies set forth in paragraph b of this section for the following violations note that the violations in paragraphs a3', 14896:'and a4 of this section go beyond violations of the requirements relating to certification of end products see 22.1503: 1', 14897:'the contractor has submitted a false certification regarding knowledge of the use of forced or indentured child labor. 2 the', 14898:'contractor has failed to cooperate as required in accordance with the clause at 52.22219, child labor cooperation with authorities and', 14899:'remedies, with an investigation of the use of forced or indentured child labor by an inspector general, the attorney general,', 14900:'orthe secretary of the treasury. 3 the contractor uses forced or indentured child labor in its mining, production, or manufacturing', 14901:'processes. 4 the contractor has furnished an end product or component mined, produced, or manufactured, wholly or in part, by', 14902:'forced or indentured child labor. remedies in paragraphs b2 and b3of this section are inappropriateunlessthe contractor knew of the violation.', 14903:'b remedies. 1 the contracting officermay terminate the contract. 2thesuspendingofficialmaysuspendthecontractorinaccordancewiththeproceduresin subpart 9.4. 3 the debarring official may debar the contractorfora', 14904:'period not to exceed3 yearsin accordance with theprocedures in subpart 9.4. 22.1505 solicitation provisionand contract clause. a except as provided', 14905:'in paragraph b of 22.1503, insert the provision at 52.22218, certification regarding knowledge of child labor for listed end products,', 14906:'in all solicitations that are expected to exceed the micropurchase threshold and are for the acquisition of end products regardless', 14907:'of country of origin of a type identified by country of origin on the list of products requiringcontractor certification as', 14908:'to forcedor indentured child labor, except solicitations for commercial products or commercial services that include the provision at 52.2123, offeror', 14909:'representationsand certifications— commercial productsand commercial services. the contracting officer must identify in paragraph b of the provision at 52.22218, certification', 14910:'regarding knowledge of child labor for listed end products, or paragraph i1 of the provision at 52.2123, any applicable end', 14911:'products and countries of origin from the list. for solicitations estimated to equal or exceed $50,000,the contracting officermust exclude from', 14912:'the list in thesolicitation end products fromany countries identified at 22.1503b, in accordance with the specified thresholds. b insert the', 14913:'clause at 52.22219, child laborcooperation with authorities and remedies, in all solicitations and contracts for the acquisition of supplies that', 14914:'are expected to exceed the micropurchase thresholds. subpart 22.16 notification of employee rights under the national labor relations act 22.1605', 14915:'subpart 22.16 notification of employee rights under the national labor relations act 22.1600 scope of subpart. this subpart prescribes policies', 14916:'and procedures to implement executive order 13496, dated january 30, 2009 74 fr 6107, february 4, 2009. 22.1601 definitions. as', 14917:'used in this subpart secretary means the secretary of labor, u.s. department of labor. united states means the 50 states,', 14918:'the district of columbia, puerto rico, the commonwealth of the northern mariana islands, american samoa, guam, theu.s. virgin islands, and', 14919:'wake island. 22.1602 policy. a executive order 13496 requires contractors to post a notice informing employees of their rights under', 14920:'federal labor laws. b the secretary has determined that the notice must contain employee rights under the national labor relations', 14921:'act act, 29 u.s.c. 151 et seq. theactencourages collective bargaining, and protects the exerciseby employeesof their freedom to associate, toselforganize,', 14922:'and to designate representatives of theirown choosingforthe purposeof negotiating the terms and conditions of their employment or other mutual aid', 14923:'or protection. 22.1603 exceptions. a the requirements of this subpart do not apply to 1 contracts under the simplified acquisition', 14924:'threshold; 2 subcontracts of $10,000 or less; and 3 contracts or subcontracts for work performed exclusively outside the united states.', 14925:'b exemptions granted by the secretary. 1 if the secretary finds that the requirements of the executive order impair theability', 14926:'of the government to procuregoodsandserviceson an economicalandefficient basis or if special circumstances require an exemption in orderto servethe national interest,the', 14927:'secretary may exempt a contracting department or agency, or groups of departments or agencies, from the requirements of any or', 14928:'all of the provisions of this executive order with respect to a particular contract or subcontract, or any class of', 14929:'contracts or subcontracts, including the requirement to include the clause at 52.22240, or parts of that clause, in contracts. 2', 14930:'requests for exemptions may be submitted in accordance with department of labor regulations at 29 cfr 471.3. 22.1604 compliance evaluation', 14931:'and complaint investigations and sanctions for violations. a the secretary may conduct compliance evaluations or investigate complaints of any contractor', 14932:'or subcontractor to determine if any of the requirements of the clause at 52.22240 have been violated. b contracting departments', 14933:'and agencies shall cooperate with the secretary and provide such information and assistance as the secretary may requirein the performance', 14934:'of the secretary’sfunctions. c if the secretary determines that there has been a violation, the secretary may take such actions', 14935:'as set forth in 29 cfr 471.14. d the secretary may not terminate or suspend a contract or suspend or', 14936:'debar a contractor if the agency head has provided writtenobjections, which mustinclude a statement of reasonsforthe objection and afinding thatthe', 14937:'contractor’s performanceis essential to the agency’smission, and continues to object tothe imposition of such sanctionsandpenalties. procedures for enforcement by the', 14938:'secretary are set out in 29 cfr 471.10 through 29 cfr 471.16. 22.1605 contract clause. a insert the clause at', 14939:'52.22240, notification of employee rights under the national labor relations act, in all solicitations and contracts, including acquisitions for commercial', 14940:'products, commercial services, and commercially available offtheshelfitems,exceptacquisitions 1 under the simplified acquisition threshold. for indefinitequantity contracts, include the clause only', 14941:'if the value of orders in any calendar year of the contract is expected to exceed the simplified acquisition threshold;', 14942:'2 for work performed exclusively outside the united states; or 3 covered in their entirety byan exemption granted by the', 14943:'secretary. 22.1605 federal acquisition regulation b a contracting agency may modify the clause at 52.22240,if necessary, to reflect an exemptiongranted', 14944:'by the secretary see 22.1603b. subpart 22.17 combating trafficking in persons 22.1702 subpart 22.17 combating trafficking in persons 22.1700 scope', 14945:'of subpart. this subpart prescribes policy for implementing 22 u.s.c. chapter 78 and executive order 13627, strengthening protectionsagainst trafficking in', 14946:'persons in federal contracts, dated september 25, 2012. 22.1701 applicability. a this subpart applies to all acquisitions. b the requirement', 14947:'at 22.1703c for a certification and compliance plan applies only to any portion of a contract or subcontract that 1', 14948:'is for supplies, otherthan commercially available offtheshelf cots items, to be acquired outsidethe united states, or services to be performed', 14949:'outside the united states; and 2 has an estimated value that exceeds $550,000. 22.1702 definitions. as used in this subpart', 14950:'agent meansany individual, including a director, anofficer, an employee, or anindependent contractor, authorized to act on behalf of the organization.', 14951:'coercion means 1 threats of serious harm to or physical restraint against any person; 2 any scheme, plan, or pattern', 14952:'intended to cause a person to believe that failure to perform an act would result in serious harm to or', 14953:'physical restraint against any person; or 3 the abuse or threatened abuse of the legal process. commercial sex act means', 14954:'any sex act on account of which anything of value is given to or received by any person. debt bondage', 14955:'means the status or condition of a debtor arising from a pledge by the debtor of his or her personal', 14956:'services or of those of a person under his or her control as a security for debt, if the value', 14957:'of those services as reasonably assessed is not applied toward the liquidation of the debt or the length and nature', 14958:'of those services are not respectively limited and defined. employee means an employee of the contractor directly engaged in the', 14959:'performance of work under the contract who has other than a minimal impact or involvement in contract performance. forced labor', 14960:'means knowingly providing or obtaining the labor or services of a person 1 by threats of serious harm to, or', 14961:'physical restraint against, that person or another person; 2 by means of any scheme, plan, or pattern intended to cause', 14962:'the person to believe that, if the person did not perform suchlaboror services,that person or another person would suffer serious', 14963:'harm or physicalrestraint; or 3 by means of the abuse or threatened abuse of law or the legal process. involuntary', 14964:'servitude includes a condition of servitude induced by means of 1 any scheme, plan, or pattern intended to cause a', 14965:'person to believe that, if the person did not enter into or continue in such conditions, that person oranother person', 14966:'would sufferserious harm orphysical restraint; or 2 the abuse or threatened abuse of the legal process. recruitment fees means fees', 14967:'of anytype,including charges, costs, assessments, or otherfinancialobligations, that are associated with the recruiting process, regardless of the time, manner, or', 14968:'location of imposition or collection ofthe fee. 1 recruitment fees include, but are not limited to, the following fees when', 14969:'they are associated with the recruiting process for i soliciting, identifying, considering, interviewing, referring, retaining, transferring, selecting, training, providing orientation', 14970:'to, skills testing, recommending, or placing employees or potential employees; ii advertising: iii obtaining permanent or temporary labor certification, including', 14971:'any associated fees; iv processing applications and petitions; v acquiring visas, including any associated fees; vi acquiring photographs and identity', 14972:'or immigration documents, such as passports, including any associated fees; vii accessing the job opportunity, including requiredmedical examinations andimmunizations; background,', 14973:'reference, and security clearance checks and examinations; and additional certifications; viii an employers recruiters, agents or attorneys, or other notary', 14974:'or legal fees; 22.1703 federal acquisition regulation ix language interpretation or translation, arranging for or accompanying on travel, or providing', 14975:'other advice to employees or potential employees; x governmentmandated fees, such as border crossing fees, levies, or worker welfare funds;', 14976:'xi transportation and subsistence costs a while in transit, including, but not limited to, airfare or costs of other modes', 14977:'of transportation, terminal fees, and travel taxes associated with travel from the country of origin to the country of performance', 14978:'and the return journey upon the end of employment; and b from the airport or disembarkation point to the worksite;', 14979:'xii security deposits, bonds, and insurance; and xiii equipmentcharges. 2 a recruitment fee, as described in the introductory text of', 14980:'this definition, is a recruitment fee, regardless of whether the payment is i paid in property or money; ii deducted', 14981:'from wages; iii paid back in wage or benefit concessions; iv paid back as a kickback, bribe, inkind payment,free labor,', 14982:'tip, or tribute; or v collected by an employeror athird party, whether licensedor unlicensed,including, but not limited to a agents;', 14983:'b labor brokers; c recruiters; dstaffing firms including private employment and placementfirms; e subsidiaries/affiliates of the employer; f any agent', 14984:'or employee of such entities; and g subcontractors at all tiers. severe forms of trafficking in persons means 1 sex', 14985:'traffickingin which a commercial sexact is induced by force, fraud, orcoercion, or in which theperson induced to perform such act', 14986:'has not attained 18 years of age; or 2 the recruitment, harboring, transportation, provision, or obtaining of a person for', 14987:'labor or services, through the use of force, fraud, or coercion for thepurpose of subjection to involuntary servitude,peonage, debt bondage,', 14988:'or slavery. sex trafficking means the recruitment, harboring, transportation, provision, or obtaining of a person for the purpose of a', 14989:'commercial sex act. subcontract means any contract entered into by a subcontractor to furnish supplies or services for performance of', 14990:'a prime contract or a subcontract. subcontractor means any supplier,distributor, vendor,or firm thatfurnishes supplies or servicesto or for a prime', 14991:'contractor oranother subcontractor. united states means the 50 states, the district of columbia, and outlying areas. 22.1703 policy. the united', 14992:'states government has adopted a policy prohibiting trafficking inpersons, including thetraffickingrelated activities below. additional information about trafficking in persons may', 14993:'be found at the websiteforthe department of state’s office to monitor and combat trafficking in persons at http://www.state.gov/j/tip . government', 14994:'solicitations and contracts shall a prohibit contractors, contractor employees, subcontractors, subcontractor employees, and their agents from 1 engaging in severe', 14995:'forms oftrafficking in persons during the periodof performance ofthe contract; 2 procuring commercial sex acts during the period of performance', 14996:'of the contract; 3 using forced labor in the performance of the contract; 4 destroying, concealing, confiscating,or otherwise denying access', 14997:'by an employee to the employee’s identity or immigration documents, such as passports or drivers licenses, regardless of issuing authority;', 14998:'5 iusingmisleadingorfraudulentpracticesduringtherecruitmentofemployeesorofferingofemployment, such as failing to disclose, in a format and language understood by the employee or potential employee, basic', 14999:'information or making material misrepresentations during the recruitment of employees regarding the key terms and conditions of employment, including wages', 15000:'and fringe benefits, the location of work, the living conditions, housing and associated costs if subpart 22.17 combating trafficking in', 15001:'persons 22.1703 employer oragent providedor arranged,anysignificant costs to be charged tothe employee or potential employee, and, if applicable, the hazardous', 15002:'nature of the work; ii using recruiters that do not comply with local labor laws of the country in which', 15003:'the recruiting takes place; 6 charging employees or potential employees recruitment fees; 7 i a failing to provide return transportation', 15004:'or pay for the cost of return transportation upon the end of employment, for an employee who is not a', 15005:'national of the country in which the work is taking place and who was brought into that country for the', 15006:'purpose of working on a u.s. government contract or subcontract, for portions of contracts and subcontracts performed outside the united', 15007:'states; or b failing to provide return transportation or pay for the cost of return transportation upon the end of', 15008:'employment, for an employee who is not a united states national and who was brought into the united states for', 15009:'the purpose of working on a u.s. government contract or subcontract, if the payment of such costs is required under', 15010:'existing temporary worker programs or pursuant to a written agreement with the employee for portions of contracts and subcontracts performed', 15011:'inside the united states; except that ii the requirements of paragraph a7i of this section do not apply to an', 15012:'employee who is a legally permitted to remain in the country of employment and who chooses to do so; or', 15013:'b exempted by an authorized officialof the contractingagency, designatedby the agency head in accordance with agency procedures, from the requirement', 15014:'to provide return transportation or pay for the cost of return transportation; iii the requirements ofparagraph a7i ofthis section are', 15015:'modified for a victim oftrafficking in persons who is seeking victim services or legal redress in the country of employment,', 15016:'or for a witness in an enforcement action related to trafficking in persons. the contractorshallprovide the return transportation orpaythe cost', 15017:'of return transportation in a way that does not obstruct thevictim services, legal redress, or witnessactivity. for example,the contractor shall', 15018:'also offer return transportation toa witness at atime that supports the witness’ need to testify. thisparagraph does not apply when', 15019:'the exemptions atparagraph a7ii of this section apply. 8 providing or arranging housing that fails to meet the host country', 15020:'housing and safety standards; or 9 if required by law or contract, failing to provide an employment contract, recruitment agreement,', 15021:'or other required work document in writing. such written document shall be in a language the employee understands. if the', 15022:'employee must relocate to perform the work, the work document shall be provided to the employee at least five days', 15023:'prior to the employee relocating. the employee’s work document shall include, but is notlimited to, details about work description, wages,', 15024:'prohibition on charging recruitment fees, work locations, living accommodations and associatedcosts, time off, roundtrip transportation arrangements, grievance process, and the', 15025:'contentof applicablelaws and regulations that prohibit trafficking in persons. the contracting officershallconsider the risk that the contractor subcontract will involve', 15026:'services or supplies susceptible to trafficking inpersons, and the numberof nonu.s. citizensexpected to be employed, when deciding whether to require', 15027:'work documents in the contract; b require contractors and subcontractors to notify employees of the prohibited activities described in paragraph', 15028:'a of this section and the actions that may be taken against them for violations; c with regard to certification', 15029:'and a compliance plan 1 irequiretheapparentsuccessfulofferortoprovide,beforecontractaward,acertificationsee 52.22256 that the offeror hasa compliance plan ifanyportion of the contractor subcontract a is', 15030:'for supplies, other than cots items see 2.101, to be acquired outside the united states, or services to be performed', 15031:'outside the united states; and b the estimated value exceeds $550,000. ii the certification must state that athe offeror has', 15032:'implementedthe plan and has implementedprocedures to prevent any prohibited activities and to monitor, detect, and terminate thecontract with a subcontractor', 15033:'or agent engaging in prohibited activities; and b after having conducted due diligence, either 1 to the best of the', 15034:'offeror’s knowledge and belief,neither it nor any of its agents, proposed subcontractors, or their agents, has engaged in any such', 15035:'activities; or 2 if abuses relating to any of the prohibited activities identified in 52.22250b have been found,the offeror or', 15036:'proposed subcontractor has taken the appropriate remedial and referral actions; 2 require annual certifications see 52.22250h5 during performance of the', 15037:'contract, when a compliance plan was required at award; 3 irequirethecontractortoobtainacertificationfromeachsubcontractor,priortoawardofasubcontract,ifany portion of the subcontract 22.1704 federal acquisition regulation a', 15038:'is for supplies, other than cots items see 2.101, to be acquired outside the united states, or services to be', 15039:'performed outside the united states; and b the estimated value exceeds $550,000. ii the certification must state that a the', 15040:'subcontractor has implemented a compliance plan; and b after having conducted due diligence, either 1 to the best of the', 15041:'subcontractor’sknowledge and belief, neither it nor any of itsagents, subcontractors, or their agents, has engaged in any such activities; or', 15042:'2 if abuses relating to any of the prohibited activities identified in 52.22250b have been found, the subcontractor has taken', 15043:'the appropriate remedial and referral actions; 4 require the contractor to obtain annual certifications from subcontractors during performance of the', 15044:'contract, when a compliance plan was required at the time of subcontract award; and 5 require that any compliance plan', 15045:'or procedures shall be appropriate to the size and complexity of the contract and the nature and scope of its', 15046:'activities, including the number of nonu.s. citizens expected to be employed and the risk that the contract or subcontract will', 15047:'involveservicesor suppliessusceptible to trafficking in persons. the minimum elementsof the plan are specified at 52.22250h; d require the contractor and', 15048:'subcontractors to 1 discloseto the contracting officer and the agency inspector general information sufficient to identify thenature and extent ofan', 15049:'offense and the individuals responsible for the conduct; 2 provide timely and complete responses to government auditors’ and investigators’ requests', 15050:'for documents; 3 cooperate fully in providing reasonable accessto their facilitiesand staff bothinside and outside the u.s. to allow contracting', 15051:'agencies and other responsible federal agencies to conduct audits, investigations, or other actions to ascertaincompliance with the trafficking victims protection', 15052:'act 22 u.s.c. chapter 78, executive order 13627, or any other applicable law or regulation establishing restrictionson trafficking in persons,', 15053:'theprocurement of commercial sex acts, or the use of forced labor; and 4 protect all employees suspected of being victims', 15054:'of or witnesses to prohibited activities, prior to returning to the country from which the employee was recruited, and shall', 15055:'not prevent or hinder the ability of these employees from cooperating fully with government authorities; and e provide suitable remedies,', 15056:'including termination, to be imposed on contractors that fail to comply with the requirements of paragraphs a through d of', 15057:'this section. 22.1704 violations andremedies. a violations. itis aviolation ofthe traffickingvictims protection act of 2000,as amended, 22 u.s.c. chapter 78,', 15058:'e.o. 13627, or the policies of this subpart if— 1 the contractor, contractor employee,subcontractor, subcontractor employee, oragent engages in severe', 15059:'forms of trafficking in persons during theperiod of performance of thecontract; 2 the contractor, contractor employee,subcontractor, subcontractor employee, oragent procures', 15060:'a commercialsex act during the period of performance of the contract; 3 the contractor, contractor employee,subcontractor, subcontractor employee, oragent uses', 15061:'forced labor in the performance of the contract; or 4 the contractor fails to comply with the requirements of the', 15062:'clause at 52.22250, combating trafficking in persons. b credible information. upon receipt of credible information regarding a violation listed in', 15063:'paragraph a of this section, thecontracting officer— 1 shall promptly notify, in accordance with agencyprocedures,the agencyinspector general, the agency debarring', 15064:'and suspending official, and if appropriate, law enforcementofficialswith jurisdiction over the alleged offense; and 2 may direct the contractor to', 15065:'take specific steps to abate the alleged violation or enforce the requirements of its compliance plan. c receipt of agency', 15066:'inspector general report. 1 the head of an executive agency shall ensure that the contracting officer isprovideda copy of the', 15067:'agency inspector general report of aninvestigation of a violation of the traffickingin persons prohibitions in 22.1703a and 52.22250b. 2 i', 15068:'upon receipt of a report from the agency inspector general that provides support for the allegations, the head of the', 15069:'executiveagency,in accordance with agency procedures, shall delegate to an authorized agency official, such asthe agency suspending ordebarringofficial, the responsibilityto subpart', 15070:'22.17 combating trafficking in persons 22.1705 a expeditiously conduct an administrative proceeding, allowing the contractor the opportunity to respond to', 15071:'the report; b make a final determination as to whether the allegations are substantiated; and c notify the contracting officer', 15072:'of the determination. iiwhether or notthe officialauthorized to conduct the administrative proceeding is the suspending anddebarring official,the suspending and debarring', 15073:'official has theauthority,at any time beforeor after thefinal determination as to whether the allegations are substantiated, to use the suspension', 15074:'and debarment procedures in subpart 9.4 to suspend, propose for debarment, or debar thecontractor, if appropriate, also considering thefactors at', 15075:'22.1704d2. d remedies. after a final determination in accordance with paragraph c2ii of this section that the allegations of a', 15076:'trafficking in persons violation are substantiated, thecontracting officer shall— 1 enter the violation in fapiis see 42.1503h; and 2 consider', 15077:'taking any of the remedies specified in paragraph e of the clause at 52.22250, combatingtrafficking in persons. these remedies are', 15078:'in addition to any other remedies available to the united states government. when determining theappropriateremedies,the contracting officermay considerthe following factors:', 15079:'imitigating factors. the contractor hada trafficking in persons compliance plan or awareness program at the time of the violation, was', 15080:'in compliance with the plan at the time of the violation, and has taken appropriate remedial actions for the violations,', 15081:'that may include reparation to victims for such violations. ii aggravating factors. the contractor failed to abate an alleged violation', 15082:'or enforce the requirements of a complianceplan,when directedby acontracting officer todo so. 22.1705 solicitation provisionand contract clause. a 1 insert', 15083:'the clause at 52.22250,combatingtraffickinginpersons,inallsolicitationsandcontracts. 2 use the clause with its alternate i when the contract will be performed outside the', 15084:'united states as defined at 22.1702andthe contracting officerhas been notified of specific u.s. directives ornotices regarding combating trafficking in persons', 15085:'such as generalordersor military listings of offlimits local establishmentsthat apply tocontractor employees at the contract place of performance. b insert', 15086:'the provision at 52.22256, certificationregarding trafficking in persons compliance plan, insolicitationsif 1 it is possible that at least $550,000 of', 15087:'the value of the contract may be performed outside the united states; and 2 the acquisition is not entirely for', 15088:'commercially available offtheshelf items. this page intentionally left blank. 22.176 subpart 22.18 employment eligibility verification 22.1802 subpart 22.18 employment eligibility', 15089:'verification 22.1800 scope. this subpart prescribes policies and procedures requiring contractors to utilize the department of homeland security dhs, united', 15090:'states citizenship and immigration service’s employment eligibility verification program everify as the means for verifying employment eligibility of certain employees.', 15091:'22.1801 definitions. as used in this subpart commercially available offtheshelf cots item 1 means any item of supply that is', 15092:'i a commercial product as defined in paragraph 1 of the definition of “commercial product” at 2.101; ii sold in', 15093:'substantial quantities in the commercial marketplace; and iii offered tothe government, without modification, in the same form in which it', 15094:'is sold in the commercial marketplace; and 2 does not include bulk cargo, as defined in 46 u.s.c. 401024, such', 15095:'as agricultural products and petroleum products. per 46 cfr 525.1 c2, bulk cargo means cargo that is loaded and carried', 15096:'in bulk onboard ship without mark or count, in a loose unpackaged form, having homogenous characteristics. bulk cargo loaded into', 15097:'intermodal equipment, except lash or seabee barges, is subjectto mark and count and, therefore, ceases to be bulk cargo. employee', 15098:'assigned to the contract means an employee who was hired after november 6, 1986 after november 27, 2009, in the', 15099:'commonwealth of the northern mariana islands, who is directly performing work, in the united states, under a contract that is', 15100:'required to include the clause prescribed at 22.1803. an employee is not considered to be directly performing work under a', 15101:'contract if the employee 1 normally performs support work, such as indirect or overhead functions; and 2 does not perform', 15102:'any substantial duties applicable to the contract. subcontract means any contract, as defined in 2.101, entered into by a subcontractor', 15103:'to furnish supplies or services for performance of a prime contract or a subcontract. it includes but is not limited', 15104:'to purchase orders, and changes and modifications to purchase orders. subcontractor means any supplier,distributor, vendor,or firm thatfurnishes supplies or servicesto', 15105:'or for a prime contractor oranother subcontractor. united states, as defined in 8 u.s.c. 1101a38, means the 50 states, the', 15106:'district of columbia, puerto rico, guam, the commonwealth of northernmariana islands, and the u.s. virginislands. 22.1802 policy. a statutes and', 15107:'executive orders require employers to abide by the immigration laws of the united states and to employ in the unitedstates', 15108:'only individuals who are eligible towork in the united states. the everify program provides an internetbased means of verifying employment', 15109:'eligibility of workers employed in the united states, but is not a substitute for any other employment eligibility verification requirements.', 15110:'b contracting officersshallinclude in solicitations and contracts, as prescribed at 22.1803, requirements that federal contractors must 1 enroll as federalcontractors', 15111:'in everify; 2 use everify toverify employment eligibilityof all new hires workingin theunited states, except that the contractor may choose', 15112:'to verify only new hires assigned to the contract if the contractor is i an institution of higher education as', 15113:'defined at 20 u.s.c. 1001a; ii a state or local government or the government of a federally recognized indian tribe;', 15114:'or iii a surety performing under a takeover agreement entered into with a federal agency pursuant to a performance bond;', 15115:'3 use everify toverify employment eligibilityof all employeesassigned to the contract; and 4 include these requirements, as required by the', 15116:'clause at 52.22254, in subcontracts for i services, except for commercial services that are part of the purchase of a', 15117:'cots item or an item that would be a cots item, butforminor modifications, performed by the cots provider, and are', 15118:'normally provided for that cots item; and ii construction. 22.1803 federal acquisition regulation c contractors may elect to verify employment', 15119:'eligibility of all existing employees working in the united states who were hired after november 6, 1986 after november 27,', 15120:'2009, in the commonwealth of the northern mariana islands instead of just those employees assigned to the contract. the contractor', 15121:'is not required to verify employment eligibility of 1 employees who hold an active security clearance of confidential, secret, or', 15122:'top secret; or 2 employees for whom background investigations have been completed and credentials issued pursuant to homeland security presidential', 15123:'directive hspd12. d in exceptional cases, theheadof the contractingactivity may waivethe everify requirement for a contract or subcontract or a', 15124:'class of contracts or subcontracts, either temporarily or for the period of performance. this waiver authority may not be delegated.', 15125:'e dhs and the social securityadministration ssamay terminate acontractor’s mou and denyaccess to the everify system in accordance with the', 15126:'terms of the mou. if dhsor ssaterminates a contractor’smou, the terminating agency must refer the contractorto a suspension ordebarment official', 15127:'for possible suspension or debarment action. during the period between termination of themou and adecision by thesuspension or debarment official', 15128:'whether tosuspend or debar, the contractor is excused from its obligations under paragraph b of the clause at 52.22254. if', 15129:'the contractor is suspended or debarred as a result of themou termination, the contractor is noteligible to participate in everifyduring', 15130:'the period of its suspensionor debarment. if thesuspension or debarment official determines not to suspend or debar thecontractor, thenthe contractor', 15131:'must reenroll in everify. 22.1803 contract clause. insert the clause at 52.22254,employment eligibility verification, in all solicitations and contracts that', 15132:'exceed$150,000, except those that— a are only for work that will be performed outside the united states; b are for', 15133:'a period of performance of less than 120 days; or c are only for 1 commercially available offtheshelfitems; 2 items', 15134:'that would be cots items, but for minor modifications as defined at paragraph 3ii of the definition of commercial products', 15135:'at 2.101; 3 items that wouldbe cotsitems if theywere not bulk cargo;or 4 commercial services that are i part of', 15136:'the purchase of a cots item or an item that would be a cots item, but for minor modifications; ii', 15137:'performed by the cots provider; and iii are normally provided for that cots item. subpart 22.19 increasing the minimum wage', 15138:'for contractors 22.1903 subpart 22.19 increasing the minimum wage for contractors 22.1900 scope of subpart. this subpart prescribes policies and', 15139:'procedures to implement executive order e.o. 14026, increasing the minimum wage for federal contractors, which requires minimum wages for certain', 15140:'workers; department of labor dol implementing regulations are found at 29 cfr part 23. this e.o. superseded e.o. 13658; dol', 15141:'implementing regulations for e.o. 13658 are found at 29 cfr part 10. 22.1901 definitions. as used in this subpart— united', 15142:'states means the 50 states, the district of columbia, puerto rico, the northern mariana islands, american samoa, guam,the u.s. virgin', 15143:'islands, johnston island,wake island, and theoutercontinental shelf as defined inthe outer continental shelf lands act 43 u.s.c. 1331, et seq..', 15144:'worker, in accordance with 29 cfr 23.20– 1 i means any person engaged in performing work on, or in connection', 15145:'with, a contract covered by executive order 14026, and a whose wages under such contract are governed by the fair', 15146:'labor standards act 29 u.s.c. chapter 8, the service contract labor standards statute 41 u.s.c. chapter 67,or the wagerate requirements', 15147:'constructionstatute40 u.s.c. chapter 31, subchapter iv, b other thanindividuals employedin a bonafide executive, administrative, or professional capacity, as those terms', 15148:'are defined in 29 cfr part 541, c regardless of the contractual relationship alleged to exist between the individual and', 15149:'the employer. ii includes workers performing on, or in connection with, the contract whose wages are calculated pursuant to special', 15150:'certificates issued under 29 u.s.c. 214c. iii also includes any person working on, or in connection with, the contract and', 15151:'individually registered in a bona fide apprenticeshipor trainingprogramregisteredwith the department of labors employment and trainingadministration, office of apprenticeship,or with a', 15152:'stateapprenticeship agency recognized by theofficeof apprenticeship. 2 i a worker performs on a contract if the worker directly performs the', 15153:'specific services called for by the contract; and ii a worker performs in connection with a contract if the workers', 15154:'work activities are necessary to the performance of a contract but are not the specific services called for by the', 15155:'contract. 22.1902 policy. a pursuant to executive order 14026, the minimum hourly wage rate required to be paid to workers', 15156:'performing on, or in connection with, contracts and subcontracts subject to this subpart is— 1 at least $15.00 per hour', 15157:'beginning january 30, 2022; and 2 beginning january 1, 2023, and annually thereafter, an amount determined by the secretary of', 15158:'labor. the administrator of the wage and hour division the administrator will notify the public of the newe.o. minimumwage rate', 15159:'at least 90 days before it is to take effect. see 22.1904. b relationship with other wage rates. 1 nothing', 15160:'in this subpart shall excuse noncompliance with any applicable federal or state prevailing wage law or any applicable law or', 15161:'municipal ordinance or any applicable contract establishing a minimum wagehigher than the e.o. minimum wage. however, wage increases under such', 15162:'other lawsor municipal ordinances are not subject to price adjustment under this subpart. 2 the e.o. minimum wage rate applies', 15163:'wheneveritis higher thanany applicable collectivebargaining agreements wage rate. c application to tipped workers. policies and procedures in dol regulations at', 15164:'29 cfr 23.240b and 23.280 address the relationship between the e.o. minimum wage and wages of workers engaged in an', 15165:'occupation in which they customarily and regularly receive more than $30 a month in tips. 22.1903 applicability. a this subpart', 15166:'applies to contracts covered by the service contract labor standards statute 41 u.s.c. chapter 67, formerly known as the service', 15167:'contract act, subpart 22.10,orthewageraterequirementsconstructionstatute 40 u.s.c. chapter 31, subchapter iv, formerly known as the davis bacon act, subpart 22.4, that', 15168:'require performance in 22.1904 federal acquisition regulation whole or in part within the united states the 50 states, the district', 15169:'of columbia, puerto rico, the northern mariana islands, american samoa, guam,the u.s. virgin islands, johnston island,wake island, and theoutercontinental shelf', 15170:'as defined in the outer continental shelf lands act 43 u.s.c. 1331, et seq.. when performance is in part within', 15171:'and in part outside the united states, this subpart applies to the part of the contract that is performed within', 15172:'the united states. b 1 this subpart applies to workers as defined at 22.1901. as provided in that definition iworkers', 15173:'are covered regardlessof the contractual relationshipalleged to exist between the contractor or subcontractor and the worker; iiworkerswith disabilities whose wages', 15174:'are calculated pursuant to special certificates issued under 29 u.s.c. 214c are covered; and iii workerswho are registered in a', 15175:'bona fide apprenticeship program or training program registered with the department of labor’s employment and training administration, office of apprenticeship,', 15176:'orwith a state apprenticeship agency recognized by theofficeof apprenticeship, arecovered. 2 this subpart does not apply to i fair labor', 15177:'standards act flsacovered individuals performing in connection with contracts covered by the e.o., i.e., those individuals who perform duties necessary', 15178:'to the performance of the contract, but who are not directly engaged in performing the specific work called for by', 15179:'the contract, and who spend less than 20 percent of their hours worked in a particular workweek performing in connection', 15180:'with such contracts; ii individuals exempted from the minimum wage requirements of the flsa under 29 u.s.c. 213a and 214a', 15181:'and b, unless otherwise covered by the service contractlabor standardsstatuteor the wagerate requirements construction statute. these individuals include but are', 15182:'not limited to a learners, apprentices, or messengers whose wages are calculated pursuant to special certificates issued under 29 u.s.c.', 15183:'214a; b students whose wages are calculated pursuant to special certificates issued under 29 u.s.c. 214b; and c those employed', 15184:'in a bona fide executive, administrative, or professional capacity 29 u.s.c. 213a1 and 29 cfr part 541. c agency labor', 15185:'advisors, as defined at 22.001, are listed at https://www.sam.gov, and are available to provide guidance and assistance with the application', 15186:'of this subpart. 22.1904 annualexecutive order minimum wage rate. a for the e.o. minimumwage ratethat becomes effectiveon january30,2022, and annually', 15187:'thereafter,the administrator will 1 notify the public of thenew e.o. minimum wage rate at least 90 days before it becomeseffective', 15188:'by publishinga notice in the federal register; 2 publish and maintain on wage determinations at sam.gov, https://www.sam.gov, or any successor', 15189:'site, the e.o. minimum wage rate; and 3 include a general notice on wage determinations which are issued under the', 15190:'service contract labor standards statute or the wage rate requirementsconstruction statute. the notice willprovide information on the e.o. minimum wage', 15191:'and how to obtain annual updates. b 1thecontractormayrequestapriceadjustmentonlyaftertheeffectivedateofanewannuale.o. minimum wage determination published pursuant to paragraph a. prices will be adjusted', 15192:'only for increased labor costs including subcontractor labor costs as a result of the annual e.o. minimum wage, and for', 15193:'associated labor costs including those for subcontractors. associated labor costs shall include increases or decreases that result from changes in', 15194:'social security and unemployment taxes and workers’ compensation insurance, but will not otherwise include any amount for general and administrative', 15195:'costs, overhead, or profit. 2 the wage rate price adjustment under this clause is the lowest amount calculated by subtracting', 15196:'from the new e.o. wage rate the following: the current e.o. minimum wage rate; the current service or construction wage', 15197:'determination rate underthe contract if the wage rate is applicable tothat worker; or the actual wage currently paid the worker.', 15198:'if the amount is zero or below, there will be no increase paid for this worker. i example 1 new', 15199:'e.o. wage rate is $16.10. subpart 22.19 increasing the minimum wage for contractors 22.1905 analysis: the calculation is $16.10 $15.80', 15200:'= $.30.previous e.o. wage rate is $15.70. the price adjustment for this worker is $.30.the current service or construction wage', 15201:'determination rate applicable to this worker under the contract is $15.75. the actual wage currently paid to the worker is', 15202:'$15.80. ii example 2 new e.o. wage rate is $15.50. previous e.o. wage rate is $15.10. analysis: the calculation is', 15203:'$15.50 $15.80 = $.30. the current service or construction wage determination rate there isno price adjustment for this worker. applicable', 15204:'to this worker under the contract is $15.75. the actual wage currently paid to the worker is $15.80. 3 the', 15205:'contractingofficer shall not adjust the contract price for any costsotherthan those identified inparagraph b 1 of this section, and shall', 15206:'not provide duplicate price adjustments with any price adjustment under clauses implementing theservice contract labor standards statute orthe wage raterequirements', 15207:'construction statute. 22.1905 enforcementof executive order minimum wage requirements. a authority. 1 section 5 of the e.o. grants the authority', 15208:'for investigating potential violations of, and obtaining compliancewith, the e.o. to the secretary oflabor. the secretary of labor, in promulgating', 15209:'the implementing regulations required bysection 4of the e.o.,has assigned this authorityto theadministrator. contractingagencies do not have authority to conduct compliance', 15210:'investigations under 29 cfr part 10 or part 23 as implemented in this subpart. this does not limit the contracting', 15211:'officer’s authorityto otherwise enforce theterms and conditions of the contract. 2 contracting officersshallwithhold payment at the direction of the administrator.', 15212:'3 the contractingofficer shall withhold payment, without a request from theadministrator, ifthe contractor fails to comply with the requirements in', 15213:'paragraph e2 of 52.22255, minimum wages for contractor workers under executive order 14026 to furnish payroll records, until such time', 15214:'as the noncompliance is corrected. b complaints.1complaints may be filed with thecontracting officer or the administratorby any person,entity, or organizationthat', 15215:'believesa violation of this subpart has occurred. 2 the identity of any individual who makes a written or oral statement', 15216:'as a complaint or in the course of an investigation, as well as portions of the statement which would reveal', 15217:'the individual’s identity, shall not be disclosed in any mannerto anyoneother thanfederal officials without the priorconsent of the individual, unless', 15218:'otherwise authorized bylaw. 3 upon receipt ofa complaint, or if notified that theadministrator has received a complaint, the contracting officer', 15219:'shall report the following information, within 14 days, if available without conducting an investigation, to the department of labor, wageandhour', 15220:'division, office of government contracts, 200 constitution avenue n.w.,room s3006, washington, d.c. 20210. i the complaint or description of the', 15221:'alleged violation; iiavailable statements by theworker, contractor,or any other person regardingthe alleged violation; iii evidence that clause 52.22255, minimum wages', 15222:'for contractor workers under executive order 14026, or its predecessor for complaints under 29 cfr part 10 was included in', 15223:'the contract; iv information concerning known settlement negotiations between the parties, if applicable; and v any other relevant facts known', 15224:'to the contracting officer orother information requested by the wage and hour division. c investigations. complaints will be investigated bythe', 15225:'administrator,if warranted, in accordance with the procedures in 29 cfr part 23.430. d remedies and sanctions–1unpaidwages. when the administrator’s investigation', 15226:'reveals that a contractor has failed to pay the applicable e.o. minimum wage, the administrator will notify the contractor and', 15227:'the contracting agency of the unpaid wage violation, and request that the contractor remedy the violation. if the contractor does', 15228:'not remedy the violation, the administrator may direct withholding of payments due on the contract or any other contract between', 15229:'the contractor and thefederal government. upon final decisionanddirection ofthe administrator, the contracting agency shall transfer the withheld funds to the', 15230:'department of labor for disbursement in accordance with the procedures at 22.4069c. 22.1906 federal acquisition regulation 2 antiretaliation. when a', 15231:'contractor has been found to have violated paragraph i of clause 52.22255, minimum wages for contractorworkersunderexecutive order 14026, the administratormay', 15232:'provide for relief to the worker in accordance with 29 cfr 23.440. 3 debarment. i the department of labor may', 15233:'initiate debarment proceedings under 29 cfr 23.520 whenever a contractor is found to have disregarded its obligations under 29 cfr', 15234:'part 23. iicontracting officers shall consider notifying theagency suspending and debarring official in accordance with agency procedures when a contractor', 15235:'commits significant violations of contract terms and conditions related to this subpart. 4 retroactive inclusion of contract clause. if a', 15236:'contracting agency fails to include the contract clause in a contract to which e.o. 14026 applies, thecontracting agency, on itsown', 15237:'initiative orwithin 15 calendar daysof notification by anauthorized representative ofthe department of labor, shall incorporate thecontract clause in the contract', 15238:'retroactive to commencement of performance under the contract through the exercise of any and all authority that may be needed', 15239:'including, where necessary, itsauthority tonegotiate or amend, its authority to pay any necessary additional costs, and its authority under any', 15240:'contract provision authorizing changes, cancellation and termination. 22.1906 contract clause. insert the clause at 52.22255,minimum wages for contractor workers under', 15241:'executive order14026,in solicitations and contracts that include the clause at 52.2226, construction wage raterequirements,or 52.22241, service contract labor standards, where', 15242:'work is to be performed, in whole or in part, in the united states. subpart 22.20 subpart 22.20 [reserved] this', 15243:'page intentionally left blank. 22.192 22.2103 subpart 22.21 establishing paid sick leave for federal contractors 22.2100 scope of subpart. this', 15244:'subpart prescribes policies and procedures to implement e.o. 13706, establishing paid sick leave for federal contractors, dated september 7, 2015,', 15245:'and department of labor implementing regulations at 29 cfr part 13. 22.2101 definitions. as used in this subpart in accordance', 15246:'with 29 cfr 13.2 accrual year means the 12month period during which a contractor may limit an employees accrual of', 15247:'paid sick leave to no less than 56 hours see 29 cfr 13.5b1. certification issued by a health care provider', 15248:'has the meaning given in 29 cfr 13.2. employee 1 i means any person engaged in performing work on or', 15249:'in connection with a contract covered by e.o. 13706; and a whose wages under such contract are governed by the', 15250:'service contract labor standards statute 41 u.s.c. chapter 67,the wage raterequirements construction statute 40 u.s.c. chapter 31, subchapter iv, or', 15251:'the fair labor standards act 29 u.s.c. chapter 8; b including employees who qualify for an exemption from the fair', 15252:'labor standards acts minimum wage and overtime provisions; and c regardless of the contractual relationship alleged to exist between the', 15253:'individual and the employer; and ii includes any person performing work on or in connection with the contract and individually', 15254:'registered in a bona fide apprenticeshipor trainingprogramregisteredwith the department of labors employment and trainingadministration, office of apprenticeship,or with a stateapprenticeship', 15255:'agency recognized by theofficeof apprenticeship. 2 i an employee performs on a contract if the employee directly performs the specific', 15256:'services called for by the contract; and ii an employee performs in connection with a contract if the employees work', 15257:'activities are necessary to the performance of a contract but are not the specific services called for by the contract.', 15258:'health care provider has the meaning given in 29 cfr 13.2. multiemployer plan means a plan to which more than', 15259:'one employer is required to contribute and which is maintained pursuant to one or morecollective bargaining agreements between one ormore', 15260:'employee organizations and more than one employer. paid sick leave means compensated absence from employment that is required by e.o.', 15261:'13706 and 29 cfr part 13. 22.2102 policy. a the government shall require contractors to allow employees performing work on', 15262:'or in connection with a contract covered by e.o. 13706 to accrue and use paid sick leave in accordance with', 15263:'the e.o. and 29 cfr part 13. b interaction with other laws. nothing in e.o. 13706 or 29 cfr part', 15264:'13 shall excuse noncompliance with or supersede any applicable federal orstate law, any applicable law or municipal ordinance, or a', 15265:'collective bargainingagreement requiring greater paid sick leave or leave rights than those established under e.o. 13706 and 29 cfr part', 15266:'13. for additional details regarding interaction withthe service contract laborstandards statute,the wage raterequirements construction statute, the family and medical leave', 15267:'act, and state and local paid sick time laws, see 29 cfr 13.5f2 through 4. c interaction withpaid time off', 15268:'policies. inaccordance with29 cfr 13.5f5i, the paid sick leave requirements of e.o. 13706 and 29 cfr part 13may be satisfied', 15269:'by a contractors voluntary paid time off policy,whetherprovided pursuant to a collective bargaining agreement or otherwise, where the voluntary paidtime', 15270:'off policy meetsor exceeds the requirements. for additionaldetailsregardingpaid time off policies, see 29cfr 13.5f5ii and iii. d unlessotherwise provided inthis', 15271:'subpart,compliance is the responsibility of thecontractor, and enforcement isthe responsibility of the department of labor. 22.2103 applicability. this subpart applies', 15272:'to a contracts that 1 are covered by the service contract labor standards statute 41 u.s.c. chapter 67, formerly known', 15273:'as the service contract act, subpart 22.10,orthewageraterequirementsconstructionstatute40 u.s.c. chapter 31,subchapteriv, formerly known as the davisbacon act, subpart 22.4; and 22.2104', 15274:'federal acquisition regulation 2 require performance in whole or in part within the united states. when performance is in part', 15275:'within and in part outside the united states, this subpart applies to the part of the contract that is performed', 15276:'within the united states; and b employees performing on or in connection with such contracts whose wages are governed by', 15277:'the service contract labor standards statute, the wagerate requirements constructionstatute, orthe fair labor standards act, including employees who qualify for', 15278:'an exemption from the fair labor standards acts minimum wage and overtime provisions. 22.2104 exclusions. the following are excluded from', 15279:'coverage under this subpart: a employees performing in connection with contracts covered by the e.o. for less than 20 percent', 15280:'of their work hours in a given workweek. this exclusion is inapplicable to employees performing on contracts covered by the', 15281:'e.o., i.e., those employees directly engaged in performing the specific work called for by the contract, at any point during', 15282:'the workweek see 29 cfr 13.4e. b until the earlier of the date the agreement terminates or january 1, 2020,', 15283:'employees whose covered work is governed by a collective bargainingagreement ratified beforeseptember 30, 2016, that 1 already provides 56 hours', 15284:'or 7 days, if the agreement refers to days rather than hours of paid sick time or paid time off', 15285:'that may be used for reasonsrelated to sicknessor health care each year;or 2 provides less than 56 hours or 7', 15286:'days, if the agreement refers to days rather than hours of paid sick time or paid time off that may', 15287:'be used for reasonsrelated to sicknessor health care each year, provided that each year the contractor provides covered employees with', 15288:'the difference between 56 hours or 7 days and theamount provided underthe existing agreement in accordance with 29 cfr 13.4f.', 15289:'c the governments unilateral exercise of a prenegotiated option to renew an existing contract that does not contain the clause', 15290:'at 52.22262 will not automatically trigger the application of that clause. see definition of new contract at 29 cfr 13.2.', 15291:'22.2105 paid sick leave for federal contractors and subcontractors. in accordance with 29 cfr 13.5, and by operation of the', 15292:'clause at 52.22262, paid sick leave under executive order 13706, the following contractor requirements apply: a accrual. 1 contractors are', 15293:'required to permit an employee to accrue not less than 1 hour of paid sick leave for every 30 hours', 15294:'worked on or in connection with a contract covered by the e.o. see 29 cfr 13.5a1. 2 contractors are required', 15295:'to inform each employee, in writing, of the amount of paid sick leave the employee has accrued but not used', 15296:'no lessthan once each pay periodor each month,whichever interval isshorter, as well asupon a separation from employment and upon reinstatement', 15297:'of paid sick leave, pursuant to 29 cfr 13.5b4 see 29 cfr 13.5a 2. 3 contractors may choose to provide', 15298:'employees with at least 56 hours of paid sick leave at the beginning of each accrual year rather than allowing', 15299:'the employee to accrue such leave based on hours worked over time see 29 cfr 13.5a 3. b maximum accrual,', 15300:'carryover, reinstatement, and paymentforunused leave. 1 contractors may limit the amount of paid sick leave employees are permitted to accrue', 15301:'to not less than 56 hours in each accrual year see 29 cfr 13.5b1. 2 paid sick leave shall carry', 15302:'over from one accrual year to the next. paid sick leave carried over from the previous accrual year shall not', 15303:'count toward any limit the contractor sets on annual accrual see 29 cfr 13.5b2. 3 contractors may limit the amount', 15304:'of paid sick leave an employee is permitted to have available for use at any point to not less than', 15305:'56 hours see 29 cfr 13.5b3. 4 contractors are required to reinstate paid sick leave for employees only when rehired', 15306:'by the same contractor within 12 months after a job separation see 29 cfr 13.5b4. 5 nothing in e.o. 13706', 15307:'or 29 cfr part 13 requires contractors to make a financial payment to an employee for accrued paid sick leave', 15308:'that has not been used upon a separation from employment. if a contractor nevertheless makes such a payment in an', 15309:'amount equal to or greater than the value of the pay and benefits the employee would have received pursuant to', 15310:'29 cfr 13.5c3 had the employee used the paid sick leave, the contractor is relieved of the obligation to reinstate', 15311:'an employees accrued paid sick leave upon rehiring the employee within 12 months of the separation pursuant to 29 cfr', 15312:'13.5b4 see 29 cfr 13.5b5. c use. contractors are required to permit an employee to use paid sick leave in', 15313:'accordance with 29 cfr 13.5c. d request for paid sick leave. contractors are required to permit an employee to use', 15314:'any or all of the employees available paid sick leaveupon theoral or written request of anemployee thatincludes information sufficient to', 15315:'informthe 22.2109 contractor that the employee is seeking to be absent from work for a purpose described in 29 cfr', 15316:'13.5c and, to the extent reasonably feasible, the anticipated duration of the leave see 29 cfr 13.5d. e certification or', 15317:'documentation for leave of 3 or more consecutive full workdays. contractors may require certification issued by a health care provider', 15318:'to verify the need for paid sick leave used for a purpose described in 29 cfr 13.5c1i, ii, or iii,', 15319:'or documentation from an appropriate individual or organization to verify the need for paid sick leave used for a purpose', 15320:'described in 29 cfr 13.5c1iv, only if the employee is absent for 3 or more consecutive full workdays see 29', 15321:'cfr 13.5e. 22.2106 prohibited acts. in accordance with 29 cfr 13.6, and by operation of the clause at 52.22262, paid', 15322:'sick leave under executive order 13706, a contractor may not a interfere with an employees accrual or use of paid', 15323:'sick leave as required by e.o. 13706 or 29 cfr part 13 see 29 cfr 13.6a; b discharge or in', 15324:'any other manner discriminate against any employeefor 1 using, or attempting to use, paid sick leave as provided for under', 15325:'e.o. 13706 and 29 cfr part 13; 2 filing any complaint, initiating any proceeding, or otherwise asserting any right or', 15326:'claim under e.o. 13706 or 29 cfr part 13; 3 cooperating in any investigation or testifying in any proceeding under', 15327:'e.o. 13706 or 29 cfr part 13; or 4 informing any other person about his or her rights under e.o.', 15328:'13706 or 29 cfr part 13 see 29 cfr 13.6b; or c failto make and maintain orto make available to', 15329:'authorized representatives of the wage and hour division records for inspection, copying, and transcription as required by 29 cfr 13.25,', 15330:'or otherwise fail to comply with the requirements of 29 cfr 13.25 see 29 cfr 13.6c. 22.2107 waiverof rights. employees', 15331:'cannot waive, nor may contractors induce employees to waive, their rights under e.o. 13706 or 29 cfr part 13 see', 15332:'29 cfr 13.7. 22.2108 multiemployer plans or other funds, plans, orprograms. contractors may fulfill their obligations under e.o. 13706 and', 15333:'29 cfr part 13 jointly with other contractors through a multiemployer plan, or may fulfill their obligations through an individual', 15334:'fund, plan, or program see 29 cfr 13.8. 22.2109 enforcementof executive order 13706 paid sick leave requirements. a authority. section', 15335:'4 of the e.o. grants to the secretary of labor the authority for investigating potential violations of, and obtainingcompliance with,the', 15336:'e.o. the secretary of labor, in promulgating the implementing regulations required by section 3 of the e.o., has assigned this', 15337:'authority to the administrator of the wage and hour division. contracting agencies do not have authority to conduct compliance investigations', 15338:'under 29 cfr part 13 as implemented in this subpart. this does not limit the contracting officersauthority tootherwise enforcethe terms', 15339:'and conditionsof the contract. b complaints. 1 complaints are filed with theadministrator of the wage andhourdivision and maybe brought by', 15340:'any person including the employee, entity,or organization that believes a violation of this subpart has occurred. 2 the identity of', 15341:'any individual who makes a written or oral statement as a complaint or in the course of an investigation, as', 15342:'well as portions of the statement which would reveal the individuals identity, shall not bedisclosed in any mannerto anyoneother thanfederal', 15343:'officials without the priorconsent of the individual, unless otherwise authorized bylaw. 3 if the contracting agency receives a complaintor is', 15344:'notified thatthe administrator of the wage and hour division has receiveda complaint, the contractingofficer shall report, within 14 days, to', 15345:'the department of labor,wage and hour division,officeof government contracts,200 constitution avenuen.w., room s3006, washington,d.c. 20210, allof the following information that', 15346:'is available without conducting an investigation: i the complaint or description of the alleged violation. iiavailable statements by theemployee, contractor,or', 15347:'any other person regardingthe alleged violation. iii evidence that clause 52.22262, paid sick leave under executive order 13706, was included', 15348:'in the contract. iv information concerning known settlement negotiations between the parties, if applicable. v any other relevant facts known', 15349:'to the contracting officer orother information requested by the wage and hour division. 22.2109 federal acquisition regulation c investigations. complaints', 15350:'will be investigated bythe administrator of the wage and hour division, if warranted, in accordance with the procedures in 29', 15351:'cfr 13.43. d remedies and sanctions. 1 withholding or suspending payment. thecontracting officer shall, upon his orher own action orupon', 15352:'writtenrequest of theadministratorof the wageandhour division– i awithholdorcausetobewithheldfromthecontractorunderthecontractcoveredbythee.o. oranyother federalcontract with the samecontractor, so much of the accrued payments oradvances', 15353:'asmay be considered necessary to pay employees the full amount owed to compensate for any violation of e.o. 13706 or', 15354:'29 cfr part 13; and b in the event of any suchviolation, the contracting agencymay, after authorization or by directionof', 15355:'the administrator of the wage and hour division and writtennotification tothe contractor, take action to cause suspension of any further', 15356:'payment, advance, or guarantee of funds until such violations have ceased; or iitake action to cause suspension of any furtherpayment,', 15357:'advance, orguarantee of funds to a contractor that has failed to make available for inspection, copying, and transcription any of', 15358:'the records identified in 29 cfr 13.25. 2 civil actions to recover greater underpayments than those withheld. i if the', 15359:'payments withheld under 29 cfr 13.11c are insufficientto reimburse all monetary relief due, orif there are no payments towithhold, the', 15360:'departmentof labor, following a final orderof the secretary of labor, may bring an action against the contractorin any court of', 15361:'competent jurisdiction to recover the remaining amount. ii the department of labor shall, to the extent possible, pay any sums', 15362:'it recovers in this manner directly to the employees who suffered the violationsof 29 cfr 13.6a or b. iii any', 15363:'sum not paid to an employee because of inability to do so within 3 years shall be transferred into the', 15364:'treasury of the united states as miscellaneous receipts. 3 termination. contracting officers mayconsider the failure of a contractor to comply', 15365:'with the requirements of e.o. 13706 or 29 cfr part 13 as grounds for termination for default or cause. 4', 15366:'debarment. i the department of labor may initiate debarment proceedings under 29 cfr 13.44d and 29 cfr 13.52whenever a contractor', 15367:'is found to have disregarded its obligations under e.o. 13706 or 29 cfr part 13. iicontracting officers shall consider notifying', 15368:'theagency suspending and debarring official in accordance with agency procedures when a contractor commits significant violations of contract terms and', 15369:'conditions related to this subpart see subpart 9.4. 5 remedies for interference. iwhen the administratorof the wageand hour division determines', 15370:'that a contractor has interfered with an employees accrual or use of paid sick leave in violation of 29 cfr', 15371:'13.6a, the administrator of the wage and hourdivision will notify the contractor and therelevant contractingagency of the interference and request', 15372:'that the contractor remedy the violation. iiif the contractor does not remedy the violation, theadministrator of the wage andhourdivision shall', 15373:'directthe contractor to provide any appropriate reliefto theaffected employees in the investigative findings letter issued pursuantto 29 cfr 13.51. such', 15374:'relief may include– a any pay and/or benefits denied or lost by reason of the violation; b other actual monetary', 15375:'losses sustained as a direct result of the violation; or c appropriate equitable or other relief. iii payment of liquidated', 15376:'damages in an amount equaling any monetary relief may also be directed unless such amount is reduced bythe administrator of', 15377:'the wage and hour division because theviolation wasin good faith and the contractor had reasonable grounds for believing it had', 15378:'not violated the e.o. or 29 cfr part 13. iv the administrator ofthe wage and hourdivision may additionally direct thatpaymentsdueon', 15379:'the contract or any other contract between the contractor and the federal government be withheld as may be necessary to', 15380:'provide any appropriate monetary relief. upon the final order of the secretary of labor that monetary relief is due, the', 15381:'administrator of thewage and hour division may direct therelevant contracting agency to transfer the withheldfundsto the department of labor for', 15382:'disbursement. 6 remedies for discrimination.i when the administrator of the wage and hour division determines thata contractor has discriminated against', 15383:'an employee in violation of 29 cfr 13.6b, theadministrator of the wage andhour division will notify the contractor and the', 15384:'relevant contracting agency of the discrimination and request that the contractor remedy the violation. iiif the contractor does not remedy', 15385:'the violation, theadministrator of the wage andhourdivision shall directthe contractor to provide appropriate relief to theaffected employees in the investigative', 15386:'findings letter issued pursuant to 29 cfr 13.51. such relief may include, but is not limited to– a employment; 22.2110', 15387:'b reinstatement; c promotion; d restoration of leave, or lost pay and/or benefits. iii payment of liquidated damages in an', 15388:'amount equaling any monetary relief may also be directed unless such amount is reduced bythe administrator of the wage and', 15389:'hour division because theviolation wasin good faith and the contractor had reasonable grounds for believing the contractor had not violated', 15390:'the e.o. or 29 cfr part 13. iv the administrator ofthe wage and hourdivision may additionally direct thatpaymentsdueon the contract', 15391:'or any other contract between the contractor and the federal government be withheld as may be necessary to provide any', 15392:'appropriate monetary relief. upon the final order of the secretary of labor that monetary relief is due, the administrator of', 15393:'thewage and hour division may direct therelevant contracting agency to transfer the withheldfundsto the department of labor for disbursement. 7', 15394:'recordkeeping. when a contractor fails to make, maintain, or protect records; or produce records when requested by authorized representatives ofthe', 15395:'administrator of the wage and hour division,or otherwise comply with the requirements of 29 cfr 13.25 in violation of 29', 15396:'cfr 13.6c, the administrator ofthe wage and hour division will requestthat the contractor remedy the violation. if the contractor fails', 15397:'to produce required records upon request,the contracting officer shall, uponhisor her own actionor upon direction of anauthorized representative ofthe department', 15398:'of labor, take such action as may be necessary to cause suspension of any further payment, advance, or guarantee of', 15399:'funds on the contract until such time as the violations are discontinued. e inclusion of contract clause. ifa contractingagency fails', 15400:'to include the clause at far 52.22262 in a contract to which the e.o. applies, the contractingofficer, on his or', 15401:'her own initiative or within15 days of notification by anauthorized representative of the department of labor,shallincorporatethe contract clausein the contractretroactive', 15402:'to commencement of performance under the contract through the exercise of any and all authority that may be needed including,', 15403:'where necessary, its authority to negotiate oramend, itsauthority topayany necessary additional costs, and its authority under any contract provision authorizing', 15404:'changes, cancellation, and termination. 22.2110 contract clause. insert the clause at 52.22262, paid sick leave under executive order 13706, in', 15405:'solicitations and contracts that include the clause at 52.2226, construction wage rate requirements, or 52.22241, service contract labor standards, where', 15406:'work is to be performed, in whole or in part, in the united states the 50 states and the district', 15407:'of columbia. this page intentionally left blank. 22.196 part 23 environment, sustainable acquisition, and material safety sec. 23.000 scope. subpart', 15408:'23.3 hazardous material 23.001 definitions. identification, material safety data, 23.002 policy. and notice of radioactive materials 23.300 scope of subpart.', 15409:'subpart 23.1 sustainable 23.301 definition. products and services 23.302 hazardous material identification and notice 23.100 scope of subpart. of material', 15410:'safety data. 23.101 definitions. 23.303 notice of radioactive materials. 23.102 authorities. 23.304 contract clauses. 23.103 policy. 23.104 general procedures. subpart', 15411:'23.4 pollution prevention, 23.105 exceptions. environmental management 23.106 exemptions. systems, and waste reduction 23.107 statutory purchasing programs. 23.400 scope of', 15412:'subpart. 23.1071 products containing recovered materials. 23.401 definitions. 23.1072 biobased products. 23.402 authorities. 23.1073 energyconsuming products and water23.403 emergency planning', 15413:'and toxic release consuming products. reporting. 23.1074 products that contain, use, or are 23.404 environmental management systems. manufactured with ozonedepleting', 15414:'23.405 waste reduction program. substances or products that contain 23.406 contract clauses. or use high global warming potential hydrofluorocarbons. subpart', 15415:'23.5 greenhouse gas emissions 23.108 required environmental protection agency 23.500 scope of subpart. purchasing programs. 23.501 policy. 23.1081 waterefficient products.', 15416:'23.502 solicitation provision. 23.1082 chemicallyintensive products. 23.1083 products and services that are subject to subpart 23.6 reserved epa recommendations of', 15417:'specifications, standards, and ecolabels. subpart 23.7 reserved 23.109 solicitation provisions and contract clauses. subpart 23.8 reserved subpart 23.2 energy savings', 15418:'performance contracts subpart 23.9 reserved 23.200 scope. 23.201 authorities. subpart 23.10 reserved 23.202 policy. this page intentionally left blank. subpart', 15419:'23.1 sustainable products and services 23.101 23.000scope. this part prescribes acquisition policies and procedures supporting the governments program to protect', 15420:'and improve the quality of the environment, to foster markets for sustainable products and services, and to ensure proper handling', 15421:'and notification of hazardous materials. 23.001definitions. as used in this part environmental means environmental aspects of internal agency operations and', 15422:'activities, including those aspects related to energy and transportation functions. greenhouse gas means carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons,', 15423:'nitrogen trifluoride, or sulfur hexafluoride. toxic chemical means a chemical or chemical category listed in 40 cfr 372.65. 23.002 policy.', 15424:'in accordance with section 208a of executive order 14057, catalyzing clean energy industries and jobs through federalsustainability,agencies shall reduceemissions, including', 15425:'greenhouse gas emissions; promoteenvironmental stewardship; support resilient supply chains; drive innovation; and incentivize markets for sustainable products and services. subpart', 15426:'23.1 sustainable products and services 23.100scope of subpart. this subpart provides policies and procedures for procuring sustainable products and services.', 15427:'this subpart applies to all contract actions, including those using part 12 procedures for the acquisition of commercial products, including', 15428:'commercially availableofftheshelf cots items, and commercial services and acquisitions valued at or below the micro purchase threshold. 23.101definitions. as used', 15429:'in this subpart— contract action means any oral or written action that results in the purchase, rent, or lease of', 15430:'supplies or equipment, services, or construction. environmental protection agency epadesignated item means a product that is or can be made', 15431:'with recovered material — 1 that is listed by epain a procurementguideline 40 cfr part 247; and 2 for which', 15432:'epahas provided recommended recovered material content levels and other purchasing recommendations in a related recovered materials advisory notice rman available', 15433:'at https://www.epa.gov/smm/ regulatorybackgroundcomprehensiveprocurementguidelineprogramcpgrman. global warming potential means how much a given mass of a chemical contributes to global warming over', 15434:'a given time period compared to the same mass of carbon dioxide. carbon dioxides global warming potential is defined as', 15435:'1.0. high global warming potential hydrofluorocarbons means any hydrofluorocarbons in a particular end use for which epas significant new alternatives', 15436:'policy snap program hasidentified other acceptable alternatives that have lower global warming potential. the snap list of alternatives is found', 15437:'at 40 cfr part 82, subpart g, with supplemental tables of alternatives available at https://www.epa.gov/snap/. hydrofluorocarbons means compounds that only', 15438:'contain hydrogen, fluorine, and carbon. ozonedepleting substance means any substancethe epa designates in 40 cfr part 82 as— 1 class', 15439:'i, including, but not limited to, chlorofluorocarbons, halons, carbon tetrachloride, and methyl chloroform; or 2 class ii, including, but not', 15440:'limited to, hydrochlorofluorocarbons. united states, as defined in the executive office ofthe presidents office of management and budget, council on', 15441:'environmental quality, and climate policyoffice memorandum m2206, when used in a geographical sense means— 1 the fifty states; 2 the', 15442:'district of columbia; 3 the commonwealths of puerto rico and the northern mariana islands; 4 the territories of guam, american', 15443:'samoa, and the united states virgin islands;and 5 associated territorial waters and airspace. federal acquisition regulation u.s. department of agriculture', 15444:'usdadesignated product category means a generic grouping of products that are or can be made with biobased materials— 1 that', 15445:'are listed by usda in a procurement guideline 7 cfr part 3201, subpart b; and 2 for which usda has', 15446:'provided purchasing recommendations available at https://www.biopreferred.gov. 23.102authorities. a section 208 of executive order 14057,catalyzing clean energy industries and jobs through', 15447:'federal sustainability, dated december 8, 2021. b paragraphgof section i of the executive office of the presidents office of managementand', 15448:'budget, council on environmental quality, and climate policyoffice memorandum m2206, catalyzing clean energy industries and jobs through federal sustainability, dated', 15449:'december 8,2021. c implementing instructions for executive order 14057, catalyzingclean energy industriesandjobsthrough federal sustainability, dated august 2022. d the authorities', 15450:'referenced in 23.107 for statutory purchasing programs. 23.103 policy. a agencies shall procure sustainable products and services as defined in', 15451:'2.101 to the maximum extent practicable. 1 procuring sustainable products and services is considered practicable, unless the agency cannot acquire', 15452:'products or services— i competitively within a reasonable performance schedule; ii that meet reasonable performance requirements; or iii at a', 15453:'reasonable price see 23.103a2. 2 when considering whether the price of a sustainable product is reasonable, agencies should consider whether', 15454:'theproduct is costeffective over the life ofthe product. for energy star®or federal energy management program fempdesignated products, a price isreasonable', 15455:'if it is costeffective over the life of the product taking energy cost savings into account 42 u.s.c. 8259bb2. lifecycle', 15456:'cost savings tools for energyefficient products areavailableat https://www.energystar.gov/buildings/saveenergycommercialbuildings/wayssave/energyefficientproducts and https:// www.nrel.gov/analysis/techlcoe.html. b when procuring sustainable products and services, agencies shall—', 15457:'1 ensure compliance with applicable statutory purchasing program requirements see 23.107; and 2 prioritize multiattribute sustainable products and services see', 15458:'23.104c2. c regarding products under contract actions for services or construction, the contractor is required to provide products that meet', 15459:'the definition of sustainable products and services at 2.101, if the products are— 1 delivered to the government; 2 furnished', 15460:'by the contractor for use by the government; 3 incorporated into the construction of a public building or public work;', 15461:'or 4 acquired by the contractor for use in performing services under a government contract where the cost of the', 15462:'products is a direct cost to a government contract versus costs which are normally applied to a contractors general and', 15463:'administrative expenses or indirect costs. 23.104 generalprocedures. a maximum extent practicable. if the requiring activity submits a written justification addressing', 15464:'the reasons described in 23.103a1, thecontracting officer may consider it not practicable to procure sustainableproducts or services. a written justification', 15465:'maybe for a specific productor service orat the lineitem or contract level. the contracting officer shall maintain the written justification', 15466:'in the contract file. b identification. 1 except as provided in paragraph b2of this section, the contracting officer shall ensure', 15467:'the solicitationand contract identifies— i the sustainable products and services, including the purchasing program and type of product or service,', 15468:'that are applicable to the acquisition, as identified by the requiring activity; and ii any products and services that are', 15469:'not subject to the requirements of this subpart and the clause at 52.22323, sustainable products and services, based on the', 15470:'written justification under paragraph a of this section, an exception at 23.105, or an exemption at 23.106. subpart 23.1 sustainable', 15471:'products and services 23.106 2 the requirement in paragraph b1 of this section does not apply if the justification, exception,', 15472:'or exemption covers the entirety of the contract action requirements. c prioritization. agencies shall prioritize sustainable products and services as', 15473:'follows: 1 procure products and services that meet applicable statutory purchasing program requirements see 23.107. when both an epadesignated item', 15474:'see 23.1071 and a biobased product in a usdadesignated product category see 23.1072 could be used for the same purposes,', 15475:'and there isnot an epadesignateditem that is also a biobased product ina usda designated product categorythat meets theagencysneeds, procure theepadesignated', 15476:'item. 2 consistent with other statutory procurement requirements, prioritize multiattribute sustainable products and services, which are those that meet applicable', 15477:'statutory purchasing program requirements see 23.107 and one or more required epa purchasing programssee 23.108. 3 if nostatutory purchasing program', 15478:'requirements apply, procure sustainableproducts and services that meet required epa purchasing program requirements see 23.108. d resource. the green procurement', 15479:'compilation gpc available at https://sftool.gov/greenprocurement provides a comprehensive list of sustainable products and services and other related sustainable acquisition guidance.', 15480:'in addition to the resources identified for each purchasing program listed in 23.107 and 23.108, agencies should consult the gpc', 15481:'when determining which purchasing programs apply to a specific product or service. 23.105exceptions. the following are excepted from the requirement', 15482:'to procure sustainable products and services: a contracts performed or supplies delivered outside of the united states, unless the agency', 15483:'head determines that such application is in the interest of the united states. b weapon systems; however, compliance withapplicable agency', 15484:'affirmative procurementprograms is requiredfor recovered materials per 23.1071 see 23.109b 42 u.s.c. 6962 and for alternatives for ozone depleting substances', 15485:'per 23.1074 see 23.109d 42 u.s.c. 7671l, unless a written justification exists as described at 23.104a 42 u.s.c. 6962c 1', 15486:'and 7 u.s.c. 8102a1b. c energyconsuming products or systems designed or procured for combator combatrelated missions arenot subject to the', 15487:'requirements in 23.1073 42 u.s.c. 8259ba5. d biobased products to be used in military equipment products or systems designed or', 15488:'procured for combat or combat related missions, spacecraft systems, or launch support equipment are not subject to the requirements in', 15489:'23.1072 7 cfr 3201.3e. 23.106exemptions. a the director of national intelligence may exempt an intelligence activity of the united states', 15490:'and related personnel, resources, and facilities to the extent the director determines necessary to protect intelligence sources and methods from', 15491:'unauthorized disclosure. b the head of an agency may exempt the following: 1 particular agency activities and related personnel, resources,', 15492:'and facilities when it is in the interest of national security, toprotect intelligence sources and methods from unauthorized disclosure,or where', 15493:'necessary to protect undercover law enforcement operations from unauthorized disclosure. the agency shall notify the chair of the council on', 15494:'environmental quality ceq in writing within 30 days of issuance of the exemption under this paragraph b1. 2 on an', 15495:'individual or class basis, any manned and unmanned vehicle, vessel, aircraft, or nonroad equipment that is used in combat support,', 15496:'combat service support, military tactical or relief operations, or training for such operations or spaceflight vehicles, including associated groundsupport equipment.', 15497:'c contracting officers are encouraged,but not required, to procure sustainableproducts and services if the head of theagency determines the supplies', 15498:'or servicesare tobe usedto facilitate defense against or recovery fromcyber, nuclear, biological, chemical, or radiological attack; to facilitate provision of', 15499:'international disaster assistance; or to support response to an emergencyor major disaster. d the head of the agency may submit', 15500:'to the president, through the chair of ceq, a request for an exemption of an agency activity,andrelated personnel, resources, and', 15501:'facilitiesfrom this subpart for any reasonnot otherwise addressedin this section. federal acquisition regulation 23.107 statutory purchasing programs. agencies shall ensure', 15502:'compliance with statutory purchasing program requirements described in 23.1071 through 23.1074. 23.1071products containing recovered materials. a authorities. the resource conservation', 15503:'and recovery act of 1976 rcra, 42 u.s.c. 6962, as implemented at 40 cfr part 247. b epa comprehensive procurement', 15504:'guidelines cpg program. underrcra, epa must designate items that are or can be made with recovered materials and must also', 15505:'recommend practices to assist procuring agencies in meeting their obligations. c applicability. 1 this sectionapplies to contractactions involving anepadesignated item,', 15506:'if— ithe price of the epadesignated item exceeds $10,000; or iithe aggregate amount paid for multiple purchases ofthe epadesignated item,', 15507:'or a functionally equivalent item, in the preceding fiscal year was $10,000 or more. 2 while micropurchases are included in', 15508:'determining the aggregate amount paid under paragraph c1 of this section, it is not necessary for an agency to track', 15509:'micropurchases when— i the agency anticipates the aggregate amount paid will exceed $10,000; or iithe agency intends to establish or', 15510:'continue anaffirmativeprocurement program as described in paragraphdof this section in the followingfiscalyear. d agency affirmative procurement program. an agencyshallestablishan affirmative', 15511:'procurementprogramforepadesignated items if the agencys purchases ofepadesignated items exceed the threshold set forth in paragraph c1 of this section. 1', 15512:'agency affirmative procurementprograms must include— i a recovered materials preference program; ii a program to promote the recovered materials preference', 15513:'program; iii a program for requiring reasonable estimates and certification of recovered material used in the performance of contracts, including', 15514:'apreaward certification that products will meet epa recommendations see 52.2234, recovered material certification, and either an estimate or a certification', 15515:'at contract completion see 52.2239, estimate of percentage of recovered material content for epadesignated items,and its alternate, as well asagency', 15516:'procedures for verification of estimates and certifications; iv annual reviewandmonitoringof the effectiveness of the affirmative procurement program; and v guidance', 15517:'for purchases of epadesignated items ator below the micropurchase threshold. 2 technical or requirements personnel andprocurement personnel are responsible for', 15518:'the preparation, implementation, and monitoring of affirmative procurement programs. 3 agencies have a period of 1 year to revise their', 15519:'affirmative procurement programs after thedesignation ofany new item byepa. e procedures. the following procedures apply when the thresholds set forth', 15520:'in paragraph c1 of this section are exceeded. 1 oncean item hasbeendesignated byepa, agencies shall purchase conforming products to the', 15521:'maximumextent practicable in accordance with 23.104a, unless a justification, exception, or exemption applies see 23.104a, 23.105, and 23.106, respectively. 2', 15522:'agencies may use their own specifications or commercial product descriptions when procuring products containing recovered materials; however, thecontract should specifythat', 15523:'the product is composed of the— i highest percentage of recovered materials practicable; or iiminimumcontent standards in accordance with epas', 15524:'rmans. 3 when acquiring products withrecoveredmaterial, the contracting officermay request information or dataon such products, including recycled content or related', 15525:'product standards see 11.301c. f resources. 1 for information on epadesignated items and associated minimum content standards, see https:// www.epa.gov/smm/comprehensiveprocurementguidelinecpgprogramproducts.', 15526:'2 contracting officersshouldalso consult their agencys affirmative procurement program for agencyspecific guidance. subpart 23.1 sustainable products and services 23.1073 23.1072biobased', 15527:'products. a authorities. 1 the farm security and rural investment act of 2002 fsria, 7 u.s.c. 8102, as implemented at', 15528:'7 cfr part 3201. 2 the energy policy act of 2005, public law 10958. b usda biopreferred ® program. the', 15529:'biopreferred program was created in the 2002 farm bill and is managed by the usda. the goal of the biopreferred', 15530:'program is to increase the purchase and use of biobased products as defined in 2.101 by agencies. c applicability. 1', 15531:'this section applies to contract actions involving a biobased product in a usdadesignated product category if— i the price of', 15532:'the biobased product exceeds $10,000; or ii the aggregate amount paid for multiple purchases of the biobased product, or for', 15533:'a functionally equivalent product, in the preceding fiscal year was $10,000 or more. 2 while micropurchases are included in determining', 15534:'the aggregate amount paid under paragraph c1 of this section, it is not necessary for an agency to track micropurchases', 15535:'when— i the agency anticipates the aggregate amount paid will exceed $10,000; or iithe agency intends to establish or continue', 15536:'anaffirmativeprocurement program in the following fiscal year. d agency affirmative procurement program. an agencyshallestablishan affirmative procurementprogramforbiobased products in usdadesignated product', 15537:'categories if the agencys purchases of such products exceed the threshold set forth in paragraph c1 of this section. 1', 15538:'agency affirmative procurementprograms must include— i a biobased products preference program; ii a program to promote the biobased products preference', 15539:'program; iii a program for requiring preaward certification that products meet usda recommendations see 52.2231, biobased product certification and reporting', 15540:'on biobased products used in performance of contracts see 52.2232, reporting of biobased products under service and construction contracts; and', 15541:'iv annual reviewandmonitoringof the effectiveness of the program. 2 technical or requirements personnel andprocurement personnel are responsible for the preparation,', 15542:'implementation, and monitoring of affirmative procurement programs. 3 agencies have a period of 1 year to revise their procurement programs', 15543:'after usda updates any usdadesignated product categories. e procedures. the following procedures apply when the thresholds set forth in paragraph', 15544:'c1 of this section are exceeded. 1 oncea biobased product is included in ausdadesignated product category, agenciesshallpurchase conforming products to', 15545:'the maximum extent practicable in accordance with 23.104a, unless a justification, exception, or exemption applies see 23.104a, 23.105, and 23.106,', 15546:'respectively. 2 agencies may use their own specifications or commercial product descriptions when procuring biobased products; however, the contractshouldspecify that', 15547:'the biobased product is composed of the— i highest percentage of biobased material practicable; or ii usdas recommended minimum contents', 15548:'standards. 3 when acquiring biobased products, the contracting officer may request informationor data on such products, including biobased content or', 15549:'related standards of the products see 11.301c. 4 agencies shall treat as eligible for the preference for biobased products, products', 15550:'from designated countries, as defined in 25.003, provided that those products— i meet the criteria for the definition of biobased', 15551:'product, except that the products need not meet the requirement that renewable agricultural materials or forestry materials in such product', 15552:'must be domestic; and ii otherwise meet all requirements for participation in the preference program. f resources. 1 for information', 15553:'on usdadesignated product categories and minimum content standards for biobased products, see https://www.biopreferred.gov. 2 contracting officersshouldalso consult their agencys affirmative', 15554:'procurement program for agencyspecific guidance. 23.1073energyconsuming products and waterconsumingproducts. a authorities. 1 energypolicy and conservation act 42 u.s.c. 6361a1. 23.1074', 15555:'federal acquisition regulation 2 nationalenergy conservation policy act 42 u.s.c. 8253, 8259b, and 8262g. 3 executive order 11912 of april', 15556:'13, 1976, delegations of authority under the energy policy and conservation act. 4 executive order 13221 of july 31, 2001,', 15557:'energyefficient standby power devices. b programs — 1 energystar® program. theenergy star® program isa voluntary productlabeling initiative that identifiesand promotes', 15558:'energy and water efficiency and the reduction of greenhouse gas emissions. this joint u.s. epa and department of energy program', 15559:'helpsbuyers save money and protect the environment through energyandwaterefficient products and practices. 2 federal energy management program femp. femp publishes', 15560:'acquisition guidance to help federal buyers meet requirementsforpurchasing energyefficient and waterefficient products. in addition,in product categoriesnot covered by theenergy star®', 15561:'program, fempsets efficiency requirements for product categories that have the potential to generate significant federal energysavings. c procedures. to the', 15562:'maximum extent practicable in accordance with 23.104a, unless a justification, exception, or exemption applies see 23.104a, 23.105, and 23.106, respectively—', 15563:'1 when acquiring energyand waterconsuming products listed in theenergy star® program or femp— iagencies shall purchase energy star®certifiedor fempdesignated products;', 15564:'and ii for products that consume power in a standby mode and are listed on femps low standby power devices', 15565:'product listing at https://www.energy.gov/eere/femp/lowstandbypowerproductlist, agencies shall— a purchase items that meet femps standby power wattage recommendation or document the reason', 15566:'for not purchasing such items; or b if femp has listed a product without a corresponding wattage recommendation, purchase items', 15567:'that use no more than one watt in their standby power consuming mode. when it is impracticable to meet the', 15568:'onewatt requirement, agencies shall purchase items with the lowest standby wattage practicable; and 2 when contracting for services or constructionthat', 15569:'will include the provision ofenergyand waterconsuming products, agencies shall specify products that comply with the applicable requirements in paragraph c1', 15570:'of this section. d resources. 1 for information on products underthe energystar® program, go to https://www.energystar.gov/ products. 2 for informationon', 15571:'energyefficient products,go to https://www.energy.gov/eere/femp/searchenergyefficientproducts. 3 for information on low standby power products, go to https://www.energy.gov/eere/femp/lowstandbypowerproduct purchasingrequirementsandcomplianceresources. 23.1074products that contain, use,', 15572:'orare manufactured with ozonedepleting substances or products that contain or usehigh global warming potential hydrofluorocarbons. a authorities. 1 title vi', 15573:'of the clean air act 42 u.s.c. 7671, et seq.. 2 section 706 of division d, title vii of the', 15574:'omnibus appropriations act, 2009 pub. l. 1118. 3 epa regulations, protection ofstratosphericozone 40 cfr part 82. b program. the epa', 15575:'snap program. c agency program s. agencies shall implement costeffective programsto minimize the procurement ofmaterials and substances that contribute to', 15576:'the depletion of stratospheric ozone and/or result in the use, release, or emission of high global warming potential hydrofluorocarbons. d', 15577:'procedures. agencies shall— 1 give preference to the procurement of acceptable alternative chemicals, products, and manufacturing processes that reduce overall', 15578:'risks to human health and the environment by minimizing— i the depletion of ozone in the upper atmosphere; and ii', 15579:'the potential use, release, or emission of high global warming potential hydrofluorocarbons; and 2 in preparing specifications and purchase descriptions', 15580:'and in the acquisition of products and services— i comply with the requirements of title vi of the clean air', 15581:'act; section 706 of division d, title vii of public law 1118; and 40 cfr 82.84a2 through5; ii substitute acceptable', 15582:'alternatives to ozonedepleting substances, as identified under 42 u.s.c. 7671k, to the maximum extent practicable, as provided in 40 cfr', 15583:'82.84a1, except in the case of class i substances being used for specified essential uses, as identified under 40 cfr', 15584:'82.4n; and subpart 23.1 sustainable products and services 23.109 iii unless a particular contract requires otherwise, specify that, when feasible,', 15585:'contractors shall use another acceptable alternative in lieu of a high global warming potential hydrofluorocarbon in products and services in', 15586:'a particular end use for which epas snap program has identified other acceptablealternatives that have lower global warming potential. e', 15587:'resource. refer to epas snap program website at https://www.epa.gov/snap for the list of alternatives found at 40 cfr part 82,', 15588:'subpart g, as well as supplemental tables of alternatives. 23.108 required environmental protectionagency purchasing programs. in accordance with 23.104c,contracting officers', 15589:'shall, after meeting statutorypurchasing program requirements in 23.107, purchase to the maximum extent practicable products and services that meet epa', 15590:'purchasing program requirements described in 23.1081 through 23.1083. 23.1081waterefficientproducts. a program. epas watersense® program makes it easyto find and select', 15591:'waterefficientproducts that can save water, energy,andmoney. watersense®labeledproducts arebacked by independent, thirdparty certificationand meet epas specificationsforwater efficiency and performance. b resource.', 15592:'for additional informationon watersense® products, see https://www.epa.gov/watersense/watersenseproducts. 23.1082chemicallyintensive products. a program. safer choice is epas label for products that contain', 15593:'safer chemicals. every chemical, regardlessof percentage, in asafer choicecertifiedproduct is evaluated through epas rigorous scientific processand onlythe safest ingredients are', 15594:'allowed. b resource. for information on safer choicecertified products, see https://www.epa.gov/saferchoice. 23.1083products and services thatare subject to epa recommendations of', 15595:'specifications, standards,and ecolabels. a program. the epaenvironmentally preferable purchasing eppprogram helps federal agenciesidentify and procure environmentally preferable products and services', 15596:'to meet zero emissions and other sustainable procurement goals by providing recommendations of specifications, standards, and ecolabels. the epp recommendations', 15597:'give preference to multiattribute or lifecycle based standards and ecolabels that address key environmental and human health impact areas and', 15598:'where productconformance is determinedby acompetent thirdparty certification body. b resource. for additional informationon epa recommendations of specifications, standards, and ecolabels,see', 15599:'https://www.epa.gov/greenerproducts/recommendationsspecificationsstandardsandecolabelsfederalpurchasing. 23.109 solicitation provisions and contract clauses. a general. insert the clause at 52.22323, sustainable products and services, in solicitations', 15600:'and contracts— 1 unless— i the requiring activity has provided a written justification that it is not practicable to procure', 15601:'sustainable products and services see 23.104a; ii an exception under 23.105 applies; or iii an exemption under 23.106 applies; and', 15602:'2 the scope of the written justification, exception, or exemption covers the entirety of the contract action requirements. b epadesignated', 15603:'items. except for the acquisition of cots items— 1 insert the provision at 52.2234, recovered material certification, in solicitations that', 15604:'require the delivery or specify the use of epadesignated items; and 2 insert the clause at 52.2239, estimate of percentage', 15605:'of recovered materialcontent for epadesignated items, in solicitations and contracts exceeding $150,000 thatare for,or specify theuse of, epadesignated items containing', 15606:'recovered materials. if technical personnel advise that estimates can be verified, use the clause with its alternate i. c biobased', 15607:'products in usdadesignated product categories. 1 insert the provision at 52.2231, biobased product certification, in solicitations, other than for acquisitions', 15608:'described at 23.105d, that— i require the delivery or specify the use of biobased products in usdadesignated product categories; or', 15609:'ii include the clause at 52.2232. federal acquisition regulation 2 insert the clause at 52.2232, reporting of biobased products under', 15610:'service and construction contracts, in service and construction solicitations and contracts, unless the contract will not involve the use of', 15611:'biobased products in usda designated product categories at https://www.biopreferred.gov or 7 cfr part 3201. d products containing ozonedepleting substances and', 15612:'hydrofluorocarbons. except for contracts for supplies that will be delivered outside the united states and its outlying areas, or contracts', 15613:'for services that will be performed outside the united states and its outlying areas, insert the following clauses: 1 52.22311,', 15614:'ozonedepleting substances and high global warming potential hydrofluorocarbons, in solicitations and contracts for irefrigeration equipment in product or service code', 15615:'psc 4110; ii air conditioning equipment psc 4120; iii clean agent fire suppression systems/equipment e.g., installed room flooding systems, portable', 15616:'fire extinguishers, aircraft/tactical vehicle fire/explosion suppression systems in psc 4210; iv bulk refrigerants and fire suppressants in psc 6830; v', 15617:'solvents, dusters, freezing compounds, mold release agents, and any other miscellaneous chemical specialty that may contain ozonedepleting substances or high', 15618:'global warming potential hydrofluorocarbons in psc 6850; vi corrosion prevention compounds, foam sealants, aerosol mold release agents, and any other', 15619:'preservative or sealing compound that may contain ozonedepleting substances or high global warming potential hydrofluorocarbons in psc 8030; vii fluorocarbon', 15620:'lubricants primarily aerosols in psc 9150; and viii any other manufactured end products that may contain or be manufactured with', 15621:'ozonedepleting substances. 2 52.22312, maintenance,service, repair, or disposal of refrigeration equipment andair conditioners, in solicitations and contracts that include the', 15622:'maintenance,service, repair, ordisposal of i refrigeration equipment, such as refrigerators, chillers, or freezers; or ii air conditioners, including air conditioning', 15623:'systems in motor vehicles. 3 52.22320, aerosols, in solicitations and contracts— i for products that may contain high global warming', 15624:'potential hydrofluorocarbons as a propellant, or as a solvent; or ii that involve maintenance or repair of electronic or mechanical', 15625:'devices. 4 52.22321, foams, in solicitations and contracts for— i products that may contain high global warming potential hydrofluorocarbons or', 15626:'refrigerant blends containing hydrofluorocarbons as a foam blowing agent, such as building foam insulation or appliance foam insulation; or ii', 15627:'construction of buildings or facilities. subpart 23.2 energy savings performance contracts 23.202 subpart 23.2 energy savings performance contracts 23.200scope. a', 15628:'this subpart prescribespolicies and procedures for using an energy savings performance contract to obtainenergyefficienttechnologies at government facilities withoutgovernmentcapital expense. b', 15629:'this subpart applies to acquisitions in the united states and its outlying areas. agencies conducting acquisitions outside of theseareas must', 15630:'use their best efforts to comply with this subpart. 23.201authorities. this subpart implements thenational energy conservation policy act 42 u.s.c.', 15631:'8287. 23.202 policy. a agencies should make maximum use ofthe authority provided in the national energy conservationpolicy act 42 u.s.c.', 15632:'8287 to use anenergy savings performancecontract espc,when lifecycle costeffective toreduce energy use and cost in the agencys facilities and operations.', 15633:'b 1underanespc,anagencycancontractwithanenergyservicecompanyforaperiodnottoexceed25years to improve energy efficiency inoneor more agency facilitiesat nodirect capital cost to the united states treasury. the energy', 15634:'servicecompanyfinances the capital costs of implementingenergy conservation measures and receives,in return, a contractually determined share of the cost savings that', 15635:'result. 2 except as provided in 10 cfr 436.34, espcs are subject to subpart 17.1. c to solicit and award', 15636:'an espc,the contracting officer— 1 must use the procedures, selection method, and terms and conditions provided in 10 cfr part', 15637:'436, subpart b; and 2 mayuse the “qualified list” of energy service companies established bythe department of energy and other', 15638:'agencies. d for procedures related tounsolicited proposals for energy savings performance contracts, see 15.603e. e for more information see https://energy.gov/eere/femp/energysavingsperformancecontractsfederalagencies.', 15639:'this page intentionally left blank. 23.22 subpart 23.3 hazardous material identification, material safety data, and notice of radioactive materials 23.304', 15640:'subpart 23.3 hazardous material identification, material safety data, and notice of radioactive materials 23.300scope of subpart. this subpart prescribes policies', 15641:'and procedures for the following: a acquiring deliverable items, other than ammunition and explosives, that require the furnishing of data', 15642:'involving hazardous materials. agencies may prescribe special procedures for ammunition and explosives. b providingnotification of radioactive materialsprior to delivery. 23.301definition.', 15643:'hazardous material is defined in the latest version of federal standard no. 313 federal standards are sold to the public', 15644:'and federal agencies through: general services administration, specifications unit 3fbpw, 7th & d sts.,sw., washington, dc 20407. 23.302hazardous material identification', 15645:'and notice of material safety data. a the occupational safety and health administration osha is responsible for issuing and administering', 15646:'regulations that require government activities to apprise their employees of 1 all hazards to which they may be exposed; 2', 15647:'relative symptoms and appropriate emergency treatment; and 3 proper conditions and precautions for safe use and exposure. b to accomplishthis', 15648:'objective, it is necessary to obtaincertain information relative tothe hazards which maybe introduced into the workplace bythe supplies being acquired.', 15649:'accordingly,offerorsandcontractors are required tosubmit hazardous materials data whenever the supplies being acquired are identified as hazardous materials. the latest version', 15650:'of federal standard no. 313 material safety data sheet, preparation and submission of includes criteria for identification of hazardous materials.', 15651:'c hazardous material data material safety data sheets msds are required 1 as specified in the latest version of federal', 15652:'standard no. 313 including revisions adopted during the term of the contract; 2 for any other material designated by a', 15653:'government technical representative as potentially hazardous and requiring safety controls. d msds’s must besubmitted 1 by theapparent successful offerorprior to', 15654:'contract award if hazardous materials are expected to be used during contract performance. 2 for agencies other than thedepartment ofdefense,', 15655:'again by the contractor with the supplies at the time of delivery. e thecontracting officer shall provide a copy of', 15656:'all msds’s received tothe safetyofficer or other designated individual. 23.303notice of radioactive materials. a the clause at 52.2237, notice of', 15657:'radioactivematerials,requiresthe contractor to notifythe contracting officerprior to delivery of radioactive material. b upon receipt ofthe notice, thecontracting officer shall notify', 15658:'receiving activities so that appropriate safeguardscan be taken. c theclause permits the contractingofficer to waive the notification ifthe contractor states', 15659:'thatthe notificationon prior deliveries isstill current. the contracting officer may waive the noticeonlyafter consultationwith cognizant technical representatives. d the contractingofficer', 15660:'is required to specify in the clause at 52.2237, the number of days in advance of delivery that the contractor', 15661:'will provide notification. the determination of the number of days should be done in coordination with the installation/facility radiation protection', 15662:'officerrpo. the rpo is responsible for ensuring the properlicense, authorization, or permit is obtained prior to receipt of the radioactive', 15663:'material. 23.304contract clauses. a 1thecontractingofficershallinserttheclauseat 52.2233, hazardous material identification and material safety data, in solicitations and contracts if the contract', 15664:'will require the delivery of hazardous materials as defined in 23.301. federal acquisition regulation 2 if the contract is awarded', 15665:'by anagency other than the department of defense, thecontracting officer shall use the clause at 52.2233 with its alternate i.', 15666:'b the contractingofficer shall insertthe clause at 52.2237, notice of radioactive materials, in solicitations and contracts for supplies that are', 15667:'or that contain— 1 radioactive material requiring specific licensing under regulations issued pursuantto the atomic energy act of 1954; or', 15668:'2 radioactive material not requiring specific licensing in which the specific activity is greater than 0.002 microcuries per gram or', 15669:'the activity per item equals or exceeds 0.01 microcuries. such supplies include, but are not limited to, aircraft, ammunition, missiles,', 15670:'vehicles, electronic tubes, instrument panel gauges, compasses, and identification markers. subpart 23.4 pollution prevention, environmental management systems, and waste reduction', 15671:'23.406 subpart 23.4 pollution prevention, environmental management systems, and waste reduction 23.400scope of subpart. this subpart prescribes policies and procedures', 15672:'for— a obtaining information needed for government compliance with righttoknow laws and pollution prevention requirements; b contractor compliance with environmental', 15673:'management systems; and c ensuring waste reduction at federal facilities. 23.401definitions. as used in this subpart— federal agency means an', 15674:'executive agency see 2.101. federal facility means a facility owned or operated by a federal agency in the customs territory', 15675:'of the united states. 23.402authorities. a emergency planning and community righttoknow act of 1986, 42 u.s.c. 1100111050 epcra. b pollution', 15676:'prevention act of 1990, 42 u.s.c. 1310113109 ppa. c executive order 14057, catalyzing clean energy industries and jobs through federalsustainability,', 15677:'dated december 8, 2021. 23.403 emergency planning and toxic release reporting. a federal facilities are requiredto comply withthe emergencyplanning and', 15678:'toxic release reporting requirements in epcra and ppa. b pursuant to epcra, ppa, and any agency implementing procedures, everycontract that', 15679:'provides for performance on a federal facility shall require the contractor to provide information necessary for the federal agency to', 15680:'comply with paragraph a of this section. 23.404 environmental management systems. agencies may implement an environmental management system ems when', 15681:'it aligns with and supports its agencys mission needs and facilitates implementation and progress toward e.o. 14057 goals. if an', 15682:'agency uses an ems for contractor operation ofgovernmentownedor leased facilities or vehicles, and contractor activities affect theagencysenvironmental management aspects— a', 15683:'ems requirements shall be included in contracts to ensure proper implementation and execution of ems roles and responsibilities; and b', 15684:'the contractingofficer shall— 1 specify the ems directives with which the contractor must comply; and 2 ensure contractor compliance to', 15685:'the same extent as the agency would be required to comply if the agency operated the facilities or vehicles. 23.405', 15686:'waste reduction program. to support pollution prevention and agencyefforts to minimize waste in accordance with e.o. 14057, contracts for contractor', 15687:'operation of governmentowned or leased facilities or for support services at governmentowned or operated facilities shall require the contractorto promotecosteffective', 15688:'waste reduction in all operations andfacilities covered by the contract. 23.406contract clauses. a insert the clause at 52.2235, pollution prevention', 15689:'and righttoknow information, in solicitations and contracts that provide for performance, in wholeor in part,on a federal facility. b insert', 15690:'the clause at 52.22319,compliancewith environmental management systems, in solicitations and contracts for contractor operation of governmentowned or leased facilities or', 15691:'vehicles located in the united states if an agency uses anemsand contractor activities affect aspects of theagencysenvironmental management. for facilities', 15692:'located outside the united states, the agency head may determine that use of the clause is in the best interest', 15693:'of the government. federal acquisition regulation c insert the clause at 52.22310, waste reduction program, in solicitations and contracts for', 15694:'contractoroperation of governmentowned or leased facilities and all solicitations and contracts for support services at governmentowned or operated facilities. subpart', 15695:'23.5 greenhouse gas emissions 23.502 subpart 23.5 greenhouse gas emissions 23.500scope of subpart. this subpart addresses public disclosure of greenhouse', 15696:'gas emissions and reduction goals. 23.501 policy. in order tobetter understand both direct and indirect greenhouse gas emissions that result', 15697:'fromfederal activities, offerors that are registered in the system for award managementsam andreceived $7.5 million or more in federal contract', 15698:'awards in the prior federal fiscal year are required to— a represent whether they publicly disclose greenhouse gas emissions; b', 15699:'represent whether they publicly disclose a quantitative greenhouse gas emissions reduction goal; and c provide the website for any such', 15700:'disclosures. 23.502 solicitation provision. the provision at 52.22322, public disclosure of greenhouse gas emissions and reduction goals—representation, is required only', 15701:'when 52.2047, system for award management, isincluded in the solicitation see 52.2048, annual representations and certifications. this page intentionally left', 15702:'blank. 23.52 subpart 23.6 reserved subpart 23.6 reserved this page intentionally left blank. 23.62 subpart 23.7 reserved subpart 23.7 reserved', 15703:'this page intentionally left blank. 23.72 subpart 23.8 reserved subpart 23.8 reserved this page intentionally left blank. 23.82 subpart 23.9', 15704:'reserved subpart 23.9 reserved this page intentionally left blank. 23.92 subpart 23.10 reserved subpart 23.10 reserved this page intentionally left', 15705:'blank. 23.102 part 24 protection of privacy and freedom of information sec. 24.000 scope of part. subpart24.1 protection of individual', 15706:'privacy 24.101 definitions. 24.102 general. 24.103 procedures. 24.104 contract clauses. subpart24.2 freedom of information act 24.201 24.202 authority. prohibitions. 24.203', 15707:'policy. 24.301 24.302 subpart 24.3 privacy training privacy training. contract clause. this page intentionally left blank. subpart 24.1 protection of', 15708:'individual privacy 24.104 24.000scope of part. this part prescribes policies and procedures that apply requirements of the privacy act of1974', 15709:'5 u.s.c. 552a the act and omb circularno.a130, december 12,1985, to government contracts and cites the freedom of information act', 15710:'5 u.s.c.552, as amended. subpart 24.1 protection of individual privacy 24.101definitions. as used in this subpart agency means any executive', 15711:'department, military department, government corporation, government controlled corporation,or other establishment in the executive branch of the government including the executive', 15712:'office ofthe president, orany independent regulatory agency. individual means a citizen of the united states or an alien lawfully admitted', 15713:'for permanent residence. maintain means maintain, collect, use, or disseminate. operation of a system of records means performance of any', 15714:'of the activities associated with maintaining the system of records, including the collection, use, and dissemination of records. personally identifiable', 15715:'information means information thatcan be used to distinguish or trace an individualsidentity, either alone or when combined with other information', 15716:'that is linkedor linkable to a specific individual. see officeof management and budget omb circular no. a130, managing federal information', 15717:'as a strategic resource. record means any item, collection, or grouping of information about an individual that is maintained byan', 15718:'agency, including, butnot limited to, education, financial transactions, medical history, and criminal or employment history, and that contains the individual’s', 15719:'name, or theidentifying number, symbol, orotheridentifying particular assigned tothe individual, such as a fingerprint or voiceprint or a photograph. system', 15720:'of records on individuals means a group of any records under the control of any agency from which information is', 15721:'retrieved by the name of the individualor by someidentifying number,symbol, or otheridentifying particular assigned tothe individual. 24.102general. a the act', 15722:'requires that when an agency contracts for the design, development, or operation of a system of records on individuals on', 15723:'behalf of the agency to accomplish an agency function the agency must apply the requirements of the act to the', 15724:'contractor and its employees working on the contract. b an agency officeror employee may be criminallyliable for violations ofthe act.', 15725:'whenthe contract providesfor operation of a system of records on individuals, contractors and their employees are considered employees of the', 15726:'agency for purposes of the criminal penalties of the act. c if a contract specifically provides for the design, development,', 15727:'or operation of a system of records on individuals on behalf of an agency to accomplish an agency function, the', 15728:'agency must apply the requirements of the act to the contractor and its employees working on the contract. the system', 15729:'of records operated under the contract is deemed to be maintained by the agency and is subject to the act.', 15730:'d agencies, which within the limits of their authorities, fail to require that systems of records on individuals operated on', 15731:'their behalf under contracts be operated in conformance with the act may be civilly liable to individuals injured as a', 15732:'consequence of any subsequent failure to maintain records in conformance with the act. 24.103 procedures. a thecontracting officer shall review', 15733:'requirements to determine whether the contract willinvolve thedesign, development, or operation of a system of records on individuals to accomplish', 15734:'an agency function. b if oneor more of thosetasks will berequired,the contracting officershall 1 ensure that the contract work statement', 15735:'specifically identifies the system of records on individuals and the design, development, or operation work to be performed; and 2', 15736:'make available, in accordance with agency procedures, agency rules and regulation implementing the act. 24.104contract clauses. when the design, development,', 15737:'or operation of a system of records on individuals is required to accomplish an agency function, the contracting officer shall', 15738:'insert the following clauses in solicitations and contracts: federal acquisition regulation a the clause at 52.2241, privacy act notification. b', 15739:'the clause at 52.2242, privacy act. subpart 24.2 freedom of information act 24.203 subpart 24.2 freedom of information act 24.201', 15740:'authority. the freedom of information act 5 u.s.c.552, as amended provides that information is to be made available to the', 15741:'public either by a publication in the federal register; b providing an opportunity to read and copy records at convenient', 15742:'locations; or c upon request, providing a copy of a reasonably described record. 24.202 prohibitions. a a proposal in the', 15743:'possession or control of the government, submitted in response to a competitive solicitation, shall not be made available to any', 15744:'person under the freedom of information act. this prohibition does not apply to a proposal, or any part of a', 15745:'proposal, that is set forth or incorporated by reference in a contract between the government and the contractor that submitted', 15746:'the proposal. see 10 u.s.c. 3309 and 41 u.s.c. 4702. b no agency shall disclose any information obtained pursuant to', 15747:'15.4033b that is exempt from disclosure under the freedom of information act. see 10 u.s.c. 3705c3 and 41 u.s.c. 3505b3.', 15748:'c a dispute resolution communication that is between a neutral person and a party to alternative dispute resolution proceedings, and', 15749:'that may not be disclosed under 5 u.s.c.574, is exempt from disclosure under the freedom of information act 5 u.s.c.', 15750:'552b3. 24.203 policy. a the act specifies, among other things, how agencies shall make their records available upon public request,', 15751:'imposes strict time standards for agency responses, and exempts certain records frompublic disclosure. each agency’s implementation of these requirements is', 15752:'located in its respective title of the code of federal regulations and referenced in subpart 24.2 of its implementing acquisition', 15753:'regulations. b contracting officersmay receive requests for records that may be exempted frommandatorypublic disclosure. the exemptions most often applicable are', 15754:'those relating to classified information, to trade secrets and confidential commercial or financial information, to interagency or intraagency memoranda, or', 15755:'to personal and medical information pertaining to an individual. other exemptions include agency personnel practices, and law enforcement. since these', 15756:'requests often involve complex issues requiring an indepth knowledge of a large and increasing body of court rulingsandpolicyguidance, contracting officers', 15757:'are cautioned to comply with the implementing regulations of their agency and to obtain necessary guidance from the agency officials', 15758:'having freedomof information act responsibility. if additional assistanceis needed, authorized agency officials may contact thedepartment ofjustice, office of informationandprivacy. a', 15759:'freedom of information act guide and other resources are available at the department of justice website under foia reference materials:', 15760:'http://www.usdoj.gov/oip. this page intentionally left blank. 24.22 subpart 24.3 privacy training 24.301privacy training. a contractorsare responsible for ensuring that initial', 15761:'privacy training, and annual privacytraining thereafter, is completed by contractor employees who 1 have access to a system of records;', 15762:'2 create, collect, use, process, store, maintain, disseminate, disclose, dispose, or otherwise handle personally identifiable information on behalf of the', 15763:'agency; or 3 design, develop, maintain, or operate asystemof records seefar subpart 24.1 and 39.105. b privacy training shall address', 15764:'the key elements necessary for ensuring the safeguarding of personally identifiable information or a system of records. the training shall', 15765:'be rolebased, provide foundational as well as more advanced levels of training, and have measures in place to test the', 15766:'knowledge level of users. at a minimum, the privacy training shall cover 1 the provisions of the privacy act of', 15767:'1974 5 u.s.c. 552a, including penalties for violations of the act; 2 the appropriate handling and safeguarding of personally identifiable', 15768:'information; 3 the authorizedandofficial use of a system of records oranyotherpersonally identifiable information; 4 the restriction on the use of', 15769:'unauthorized equipment to create, collect, use, process, store, maintain, disseminate, disclose, dispose, or otherwise access personally identifiable information; 5 the', 15770:'prohibition against the unauthorized use of a system of records or unauthorized disclosure, access, handling, or use of personally identifiable', 15771:'information; and 6 procedures to be followed in the event of a suspected or confirmed breach of a system of', 15772:'records or unauthorized disclosure, access,handling,or use of personallyidentifiable information see office of management and budget guidance for preparing for and', 15773:'responding to a breach of personally identifiable information. c the contractor may provide its own training or use the training', 15774:'of another agency unless the contracting agency specifies that only its agencyprovided training is acceptable see 24.302b. d the contractor', 15775:'is required to maintain and, upon request, to provide documentation of completion of privacy training for all applicable employees. e', 15776:'no contractor employee shall be permitted to have or retain access to a system of records, create, collect, use, process,', 15777:'store, maintain, disseminate, disclose, or dispose, or otherwise handle personally identifiable information, or design, develop, maintain, or operate a system', 15778:'of records, unless the employee has completed privacy training that, at a minimum, addresses the elements in paragraph b of', 15779:'this section. 24.302contract clause. a thecontracting officer shall insert the clause at far 52.2243, privacy training, in solicitations and contracts', 15780:'when, on behalf of the agency, contractor employees will 1 have access to a system of records; 2 create, collect,', 15781:'use, process, store, maintain, disseminate, disclose, dispose, or otherwise handle personally identifiable information; or 3 design, develop, maintain, or operate', 15782:'a system of records. b when an agency specifies that only its agencyprovided training is acceptable, use the clause with', 15783:'its alternate i. this page intentionally left blank. 24.22 part 25 foreign acquisition sec. 25.000 scope of part. 25.001 general.', 15784:'25.002 applicability of subparts. 25.003 definitions. subpart 25.1 buy americansupplies 25.100 scope of subpart. 25.101 general. 25.102 policy. 25.103 exceptions.', 15785:'25.104 nonavailable articles. 25.105 critical components and critical items. 25.106 determining reasonableness of cost. subpart 25.2 buy american construction materials', 15786:'25.200 scope of subpart. 25.201 policy. 25.202 exceptions. 25.203 preaward determinations. 25.204 evaluating offers of foreign construction material. 25.205 postaward', 15787:'determinations. 25.206 noncompliance. subpart 25.3 contracts performed outside the united states 25.301 contractor personnel in a designated operational area or', 15788:'supporting a diplomatic or consular mission outside the united states. 25.3011 scope. 25.3012 government support. 25.3013 weapons. 25.3014 contract clause.', 15789:'25.302 contractors performing private security functions outside the united states. 25.3021 scope. 25.3022 definitions. 25.3023 applicability. 25.3024 policy. 25.3025 remedies.', 15790:'25.3026 contract clause. 25.400 25.401 25.402 25.403 25.404 25.405 25.406 25.407 25.408 25.501 25.502 25.503 25.504 25.5041 25.5042 25.5043 25.5044', 15791:'25.600 25.601 25.602 25.6021 25.6022 25.603 25.604 25.605 25.606 25.607 subpart 25.4 tradeagreements scope of subpart. exceptions. general. world trade', 15792:'organization government procurement agreement and free trade agreements. least developed countries. caribbean basin trade initiative. israeli trade act. agreement on', 15793:'trade incivil aircraft. procedures. subpart 25.5 evaluating foreignofferssupply contracts general. application. group offers. evaluation examples. buy american statute. wto gpa/caribbean', 15794:'basintradeinitiative/ ftas. fta/israelitradeact. group award basis. subpart 25.6 american recovery and reinvestment actbuy american statuteconstruction materials scope of subpart. definitions.', 15795:'policy. section 1605 of the recovery act. buy american statute exceptions. preaward determination concerning the inapplicability of section 1605 of', 15796:'the recovery act or the buy american statute. evaluatingoffers of foreign construction material. postaward determinations. noncompliance. subpart 25.7 prohibited sources', 15797:'25.700 scope of subpart. 25.701 restrictions administered by the department of the treasury on acquisitions ofsupplies or services from prohibited', 15798:'sources. 25.702 prohibition on contracting with entities that conduct restricted business operations in sudan. 25.7021 definitions. 25.7022 certification. 25.7023 remedies.', 15799:'25.7024 waiver. 25.703 prohibition on contracting with entities that engage in certain activities or transactions relating to iran. 25.7031 definitions.', 15800:'25.7032 iran sanctions act. 25.7033 prohibition on contracting with entities that export sensitive technology to iran. 25.7034 waiver. 25.801 25.802', 15801:'25.900 25.901 25.902 25.903 25.1001 25.1002 25.1003 25.1101 25.1102 25.1103 subpart 25.8 other international agreements and coordination general. procedures. subpart', 15802:'25.9 customs and duties scope of subpart. policy. procedures. exempted supplies. subpart 25.10 additional foreign acquisition regulations waiver of rightto', 15803:'examination ofrecords. use of foreign currency. taxon certain foreign procurements. subpart25.11 solicitation provisions and contract clauses acquisition of supplies. acquisition', 15804:'of construction. other provisions and clauses. 25.000scope of part. a this part provides policies and procedures for 1 acquisition of', 15805:'foreign supplies, services, and construction materials; and 2 contracts performed outside the united states. b it implements 41 u.s.c. chapter', 15806:'83, buy american; trade agreements; and other laws and regulations. 25.001general. a 41 u.s.c. chapter 83, buy american 1 restricts', 15807:'the purchase of supplies, that are not domestic end products, for use within the united states. a foreign end product', 15808:'maybe purchased if thecontracting officer determines thatthe price ofthe lowest domesticoffer is unreasonable or if another exception applies see subpart', 15809:'25.1; and 2 requires, with some exceptions, the use of only domestic construction materials in contracts for construction in the', 15810:'united states see subpart 25.2. b the restrictions in the buy american statute are not applicable in acquisitions subject to', 15811:'certain trade agreements see subpart 25.4. in these acquisitions, end products and construction materials from certain countries receive nondiscriminatory treatment', 15812:'in evaluation with domestic offers. generally, the dollar value of theacquisition determines which of the trade agreements applies. exceptions to', 15813:'the applicability of the trade agreements are described in subpart 25.4. c the test to determine the country of origin', 15814:'for an end product under the buy american statute see the various country end product definitions in 25.003 is different', 15815:'from the testto determine the country of origin for an end product under the trade agreements, or the criteria for', 15816:'the representation on end products manufactured outside the united states see 52.22518. 1 the buy american statute uses a twopart', 15817:'test to define a domestic end product or domestic construction material manufactured in the united states and a domestic content', 15818:'test. the domestic content test has been waived for acquisition of commercially available offtheshelf cotsitems, except a product that consistswholly', 15819:'or predominantly of iron or steel or a combination of both excluding cots fasteners see 25.101a and 25.201b. 2 under', 15820:'the trade agreements, the test to determine country of origin is substantial transformation i.e., transforming anarticle into a new and', 15821:'different article ofcommerce, with a name, character,or usedistinct from the original article. 3 for the representation at 52.22518, the only', 15822:'criterion is whether the place of manufacture of an end product is in the united states or outside the united', 15823:'states, without regard to the origin of the components. 4 when using funds appropriated under the american recoveryandreinvestment act of', 15824:'2009 pub. l. 1115, the definition of domestic manufactured construction material requires manufacture in the united states but does not', 15825:'include a requirement with regard to the origin of the components. if the construction material consists wholly or predominantly of', 15826:'iron or steel, the iron or steel must be produced in the united states. 25.002applicability of subparts. the following table', 15827:'shows the applicability of the subparts. subpart 25.5providescomprehensiveproceduresforoffer evaluation and examples. subpart supplies for use construction services performed inside u.s.', 15828:'outside u.s. inside u.s. outside u.s. inside u.s. outside u.s. 25.1 buy american supplies x 25.2 buy american construction materials', 15829:'x 25.3 contracts performed outside the united states x x x 25.4 trade agreements x x x x x x', 15830:'25.5 evaluating foreign offerssupply contracts x x federal acquisition regulation subpart supplies for use construction services performed inside u.s. outside', 15831:'u.s. inside u.s. outside u.s. inside u.s. outside u.s. 25.6 american recovery and reinvestment actbuy american statuteconstruction materials x 25.7', 15832:'prohibited sources x x x x x x 25.8 other international agreements and coordination x x x x 25.9 customs', 15833:'and duties x 25.10 additional foreign acquisition regulations x x x x x x 25.11 solicitation provisions and contract clauses', 15834:'x x x x x x 25.003definitions. as used in this part— caribbean basin country means any of the following', 15835:'countries: antigua and barbuda, aruba, bahamas, barbados, belize, bonaire, british virgin islands, curacao, dominica, grenada,guyana, haiti, jamaica, montserrat, saba, st.', 15836:'kitts and nevis, st. lucia, st. vincent and the grenadines, sint eustatius, sint maarten, or trinidad and tobago. caribbean basin', 15837:'country end product— 1 means an article that– i a is wholly the growth, product, or manufacture of a caribbean', 15838:'basin country; or b in the case of an article thatconsists inwhole or in part of materials from another country,', 15839:'has been substantially transformed in a caribbean basincountry into a new anddifferent article of commerce witha name, character, or use', 15840:'distinct from that of the article or articles from which it was transformed; and ii is not excluded from dutyfree', 15841:'treatment for caribbean countries under 19 u.s.c. 2703b. a for this reason, the following articles are not caribbean basin country', 15842:'end products: 1 tuna, prepared or preserved in any manner inairtight containers. 2 petroleum, or any product derived from petroleum.', 15843:'3 watches and watch parts including cases, bracelets, and straps of whatever type including, but not limited to, mechanical, quartz', 15844:'digital, or quartz analog, if such watches or watch parts contain any material that is the product of any country', 15845:'to which the harmonized tariff schedule of theunited stateshtsus column 2 rates of duty apply i.e., afghanistan, cuba, laos, north', 15846:'korea, and vietnam. 4 certain of thefollowing: textiles andapparel articles; footwear,handbags, luggage, flat goods,work gloves, and leather wearing apparel; or', 15847:'handloomed, handmade, and folklore articles. b access to the htsus to determine dutyfree status of articles of the types listed', 15848:'in paragraph 1iia4 of this definition is available via the internet at https://usitc.gov/tata/hts/index.htm. in particular,see the following: 1 general note', 15849:'3c, products eligible for special tariff treatment. 2 general note 17, products of countries designated as beneficiary countries under the', 15850:'united states caribbean basin trade partnershipactof 2000. 3 section xxii, chapter 98, subchapter ii, articles exported and returned, advanced or', 15851:'improved abroad, u.s. note 7b. 4 sectionxxii, chapter 98, subchapter xx, goods eligibleforspecial tariff benefits underthe united statescaribbeanbasin trade partnership', 15852:'act; and 2 refers to aproduct offeredforpurchase under asupplycontract, but for purposes of calculatingthe value of the acquisition, includes services', 15853:'except transportation services incidental to the article, provided that the value of those incidental services does not exceed that of', 15854:'the article itself. civil aircraft and related articles means 1 all aircraft other than aircraft to be purchased for use', 15855:'by the department of defense or the u.s. coast guard; 2 the engines and parts and components for incorporation into', 15856:'the engines of these aircraft; 3 any other parts, components, and subassemblies for incorporation into the aircraft; and 4 any', 15857:'ground flight simulators, and parts and components of these simulators, for use with respect to the aircraft, whether to be', 15858:'usedas originalor replacement equipment in themanufacture, repair,maintenance, rebuilding, modification, or conversion of the aircraft and without regard to whether the', 15859:'aircraft or articles receive dutyfree treatment under section 601a2of the trade agreements act. component means an article, material, or supply', 15860:'incorporated directly into an end product or construction material. construction material means an article, material, or supply brought to the', 15861:'construction site by a contractor or subcontractor for incorporation into the building or work. the term also includes an item', 15862:'brought to the site preassembled from articles, materials, orsupplies. however, emergency life safety systems, such as emergency lighting,fire alarm, and', 15863:'audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete', 15864:'systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components', 15865:'of those systems are delivered to the construction site. materials purchased directly by the government are supplies, not construction material.', 15866:'cost of components means 1 for components purchased bythe contractor, the acquisition cost, including transportation costs tothe place of incorporation', 15867:'into the end product or construction material whether or not such costs are paid to a domestic firm, and any', 15868:'applicable duty whether or not a dutyfree entry certificate is issued; or 2 for components manufactured bythe contractor, all costs', 15869:'associated with the manufacture of the component, including transportation costs as described in paragraph 1 of this definition, plus allocable', 15870:'overhead costs, but excluding profit. cost of components does not include any costs associated with the manufacture of the end', 15871:'product. critical component means a component that is mined, produced, or manufactured in the united states and deemed critical to', 15872:'the u.s. supply chain. the list of critical components is at 25.105. critical item means a domestic construction material or', 15873:'domestic end product that is deemed critical to the u.s. supply chain. the list of critical items is at 25.105.', 15874:'designated country means any of the following countries: 1 a world trade organization government procurement agreement wtogpa countryarmenia, aruba, australia,', 15875:'austria,, belgium, bulgaria, canada, croatia, cyprus, czech republic, denmark, estonia, finland, france, germany, greece,hongkong, hungary, iceland, ireland, israel, italy,japan, korea', 15876:'republic of, latvia, liechtenstein, lithuania, luxembourg, malta, moldova, montenegro, netherlands, new zealand, north macedonia, norway, poland, portugal, romania, singapore, slovakrepublic,', 15877:'slovenia, spain, sweden, switzerland, taiwan known in the world trade organization as the separate customs territory of taiwan, penghu, kinmen', 15878:'and matsu chinese taipei, ukraine, or united kingdom; 2 a free trade agreementftacountry australia, bahrain, chile, colombia, costa rica, dominicanrepublic,', 15879:'el salvador, guatemala,honduras, korea republic of, mexico, morocco,nicaragua, oman, panama,peru, or singapore; 3 a least developed country afghanistan, angola, bangladesh,', 15880:'benin, bhutan, burkina faso, burundi, cambodia, central african republic, chad, comoros, democratic republic of congo, djibouti, equatorial guinea, eritrea, ethiopia,', 15881:'gambia, guinea, guineabissau, haiti, kiribati, laos, lesotho, liberia, madagascar, malawi, mali, mauritania, mozambique, nepal,niger, rwanda, samoa, sao tome and principe,', 15882:'senegal,sierra leone, solomon islands, somalia, south sudan, tanzania, timorleste, togo,tuvalu, uganda, vanuatu, yemen, or zambia; or 4 a caribbean basin', 15883:'country antiguaandbarbuda, aruba, bahamas, barbados, belize, bonaire, british virgin islands, curacao, dominica,grenada, guyana, haiti, jamaica,montserrat,saba, st. kitts and nevis, st.', 15884:'lucia, st. vincent and the grenadines,sinteustatius, sint maarten, ortrinidad and tobago. designated country end product means awto gpa countryend product,', 15885:'an fta country end product, a least developed country end product, or a caribbean basin country end product. domestic construction', 15886:'material means 1 for use in subparts other than 25.6— i for construction material that does not consist wholly or', 15887:'predominantly of iron or steel or a combination of both — a an unmanufactured construction material mined or produced in', 15888:'the united states; or b a construction material manufactured in the united states, if– federal acquisition regulation 1 the cost', 15889:'of the components mined, produced, or manufactured in the united states exceeds 60 percent of the cost of all its', 15890:'components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75', 15891:'percent for items delivered starting in calendar year 2029 unless an alternate percentage is established for a contract in accordance', 15892:'with far 25.201c.components of unknown origin are treated as foreign; or 2 the construction material is a commerciallyavailableofftheshelf cots item;', 15893:'or ii for construction material that consists wholly or predominantly of iron or steel or a combination of both, a', 15894:'construction material manufactured in the united states if the cost of foreign iron and steel constitutes less than 5 percent', 15895:'of the cost of all the components used in such construction material. the cost of foreign iron and steel includes', 15896:'but is not limited to the cost of foreign iron or steel mill products such as bar, billet, slab, wire,', 15897:'plate, or sheet, castings,or forgings utilized in the manufacture of the construction material and a good faith estimate of the', 15898:'cost of all foreign iron or steel components excluding cots fasteners. iron or steel components of unknown origin are treated', 15899:'as foreign. if the construction material contains multiple components, the cost of all the materials used in such construction material', 15900:'is calculated in accordance with the definition of “cost of components” in this section; or 3 for use in subpart', 15901:'25.6, see the definition in 25.601. domestic end product means 1 for an end product that does not consist wholly', 15902:'or predominantly of iron or steel or a combination of both— i an unmanufactured end product mined or produced in', 15903:'the united states; ii an end product manufactured in the united states, if– a the cost of its components mined,', 15904:'produced, or manufactured in the united states exceeds 60 percent of the cost of all its components, except that the', 15905:'percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered', 15906:'starting in calendar year 2029 unless an alternate percentage is established for a contract in accordance with far 25.101d. components', 15907:'of unknown origin are treated as foreign. scrap generated, collected, and prepared for processing in the united states is considered', 15908:'domestic; or b the end product is a cots item; or 2 for an end product that consists wholly or', 15909:'predominantly of iron or steel or a combination of both, an end product manufactured in the united states, if the', 15910:'cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in', 15911:'the end product. the cost of foreign iron and steel includes but is not limited to the cost of foreign', 15912:'iron or steelmill products such asbar, billet, slab,wire, plate, or sheet, castings, or forgings utilizedin themanufacture of the end product', 15913:'and a good faith estimate of the cost of all foreign iron or steel components excluding cots fasteners. iron or', 15914:'steel components of unknown origin are treated as foreign. if the end product contains multiple components, the cost of all', 15915:'the materials used in such end product is calculated in accordance with the definition of cost of components in this', 15916:'section. domestic offer means an offer of a domestic end product. whenthe solicitation specifies that awardwill be made on a', 15917:'group of line items, adomestic offer meansan offer where the proposed price ofthe domestic endproducts exceeds 50 percent of the', 15918:'total proposed price of the group. eligible offer means an offer of an eligible product. when the solicitation specifies that', 15919:'award will be made on a group of line items, an eligibleoffer means a foreign offerwhere the combined proposed price', 15920:'of theeligible productsand the domestic end products exceeds 50 percent of the total proposed price of the group. eligible product', 15921:'means a foreign end product, construction material, or service that, due to applicability of a trade agreement to a particular', 15922:'acquisition, is not subject to discriminatory treatment. end product means those articles, materials, and supplies to be acquired for public', 15923:'use. fastener means a hardware device that mechanically joins or affixestwo ormore objects together. examples of fasteners are nuts, bolts,', 15924:'pins, rivets, nails, clips, and screws. foreign construction material means a construction material other than a domestic construction material. foreign', 15925:'contractor means a contractor or subcontractor organized or existing under the laws of a country other than the united states.', 15926:'foreign end product means an end product other than a domestic end product. foreign iron and steel means iron or', 15927:'steel products not produced in the united states. produced in the united states means that all manufacturing processes of the', 15928:'iron or steel must take place in the united states, from the initial melting stage through theapplication of coatings,exceptmetallurgical processes', 15929:'involving refinement of steeladditives. the origin of the elements of the iron or steel is not relevant to the determination', 15930:'of whether it is domestic or foreign. foreign offer meansany offer other than a domestic offer. free trade agreement country', 15931:'means australia, bahrain, chile, colombia, costa rica,dominican republic, el salvador, guatemala, honduras, korea republic of, mexico, morocco, nicaragua, oman, panama,', 15932:'peru, or singapore. free trade agreement country end product means an article that 1 is wholly the growth, product,or manufactureof', 15933:'afree trade agreement fta country; or 2 in the case of anarticle that consists in whole or in part of', 15934:'materials from another country, has been substantially transformed in an fta country into a new and different article ofcommerce with', 15935:'aname, character,or use distinctfrom that of the article or articles from which it was transformed. the term refers toa productoffered', 15936:'for purchase undera supply contract, but for purposes of calculating the value of the end product, includes services except transportation', 15937:'services incidental to the article, provided that the value of those incidental services does not exceed that of the article', 15938:'itself. israeli end product means an article that 1 is wholly the growth, product, or manufacture of israel; or 2', 15939:'in the case of anarticle that consists in whole or in part of materials from another country, has been substantially', 15940:'transformed in israelinto anew and different article of commerce with a name, character, or use distinct from that ofthe article', 15941:'or articles from which it was transformed. least developed country means any of the following countries: afghanistan, angola, bangladesh, benin,', 15942:'bhutan, burkina faso, burundi, cambodia, central african republic, chad, comoros, democratic republic of congo, djibouti, equatorial guinea, eritrea, ethiopia, gambia,', 15943:'guinea, guineabissau, haiti, kiribati, laos, lesotho, liberia, madagascar, malawi, mali, mauritania, mozambique, nepal, niger, rwanda,samoa, saotome and principe, senegal, sierra', 15944:'leone, solomon islands, somalia, south sudan, tanzania, timorleste, togo,tuvalu, uganda, vanuatu, yemen, or zambia. least developed country end product means', 15945:'an article that 1 is wholly the growth, product, or manufacture of a least developed country; or 2 in the', 15946:'case of anarticle that consists in whole or in part of materials from another country, has been substantially transformed in', 15947:'aleast developed country into a new and different article ofcommerce with aname,character, or use distinct from that of the article', 15948:'or articles from which it was transformed. the term refers to a product offered for purchase under a supply contract,', 15949:'but for purposes of calculating the value of the end product, includes services except transportation services incidental to the article,', 15950:'provided that the value of those incidental services does not exceed that of the article itself. noneligible offer means an', 15951:'offer ofa noneligible product. noneligible product means a foreign end product that is not an eligible product. predominantly of iron', 15952:'or steel or a combination of both means that the cost of the iron and steel content exceeds 50 percent', 15953:'of the total cost of all its components. the cost of iron and steel is the cost of the iron', 15954:'or steel mill products such as bar, billet, slab, wire, plate, or sheet, castings,or forgings utilized in the manufacture of', 15955:'the product and a good faith estimate of the cost of iron or steel components excluding cots fasteners. steel means', 15956:'an alloy that includes at least 50 percent iron, between 0.02 and 2 percent carbon, and may include other elements.', 15957:'united states means the 50 states, the district of columbia, and outlying areas. u.s.made end product means an article that', 15958:'is mined, produced, or manufactured in the united states or that is substantially transformed in the united states into a', 15959:'newand differentarticle of commerce with a name, character,or use distinct from that of the article or articles from which it', 15960:'was transformed. world trade organization government procurement agreement wto gpa country means any of the following countries: armenia, aruba, australia,', 15961:'austria, belgium, bulgaria, canada, croatia, cyprus, czech republic, denmark, estonia, finland,france, germany, greece, hong kong, hungary, iceland, ireland, israel, italy,', 15962:'japan, korearepublic of, latvia, liechtenstein, lithuania, luxembourg, malta, moldova, montenegro, netherlands, new zealand, north macedonia, norway, portugal,romania, singapore, slovak republic,', 15963:'slovenia, spain, sweden, switzerland, taiwan, ukraine, or united kingdom. wto gpa country end product means an article that 1 is', 15964:'wholly the growth, product,or manufactureof awtogpa country; or 2 in the case of anarticle that consists in whole or in', 15965:'part of materials from another country, has been substantially transformed in awtogpa country into a new and different article of', 15966:'commercewith a name, character, oruse distinct from that of the article or articles from which it was transformed. the term', 15967:'refers to a product offered for purchase under a supply contract, but for purposes of calculating the value of the', 15968:'end product includes services except transportation services incidental to the article, provided that the value of those incidental services does', 15969:'not exceed that of the article itself. federal acquisition regulation subpart 25.1 buy americansupplies 25.100scope of subpart. a this subpart', 15970:'implements 1 41 u.s.c. chapter 83, buy american; 2 executive order 10582, december 17, 1954; 3 executive order 13881, july', 15971:'15, 2019; 4 executive order 14005, january 25, 2021; and 5 waiver of the domestic content test of the buy', 15972:'american statute for acquisition of commerciallyavailableofftheshelf cots items in accordance with 41 u.s.c. 1907, but see 25.101a2ii. b it applies', 15973:'to supplies acquired for use in the united states, including supplies acquired under contracts set aside for small business concerns,', 15974:'if 1 the supply contract exceeds the micropurchase threshold; or 2 the supply portion of a contract for services that', 15975:'involves the furnishing of supplies e.g., lease exceeds the micro purchase threshold. 25.101general. a the buy american statute restricts the', 15976:'purchase of supplies that are not domestic end products. for manufactured end products, the buy american statute, e.o. 13881, and', 15977:'e.o. 14005 use a twopart test to define a domestic end product. 1 the article must be manufactured in the', 15978:'united states; and 2 i except for an end product that consists wholly or predominantly of iron or steel or', 15979:'a combination of both, the cost of domestic components shall exceed 60 percent of the cost of all the components,', 15980:'except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent', 15981:'for items delivered starting in calendar year 2029. but see paragraph d of this section. in accordance with 41 u.s.c.', 15982:'1907, this domestic content test of the buy american statute has been waived for acquisitions of cots items see 12.505a', 15983:'but see paragraph a2ii of this section. ii for an end product that consists wholly or predominantly of iron or', 15984:'steel or a combination of both, the cost of foreign iron and steel must constitute less than 5 percent of', 15985:'the cost of all the components used in the end product see the definition of foreign iron and steel at', 15986:'25.003. the cost of foreign iron and steel includes but is not limited to the cost of foreign iron or', 15987:'steel mill products such as bar, billet, slab, wire, plate, or sheet, castings,or forgings utilized in the manufacture of the', 15988:'end product and a good faith estimate of the cost of all foreign iron or steel components excluding cots fasteners.', 15989:'this domestic content test of the buy american statute has not been waived for acquisitions of cots items in this', 15990:'category, except for cots fasteners. b the buy american statute applies to small business setasides. a manufactured product of a', 15991:'small business concern is a u.s.made end product, but is not a domestic end product unless it meets the domestic', 15992:'content test in paragraph a2 of this section. c exceptions that allow the purchase of a foreign end product are', 15993:'listed at 25.103. the unreasonable cost exception is implemented through the use of an evaluation factor applied to low foreign', 15994:'offers thatare not eligibleoffers. the evaluation factor is notused to provide a preference for one foreign offer over another. evaluation', 15995:'procedures andexamples are provided in subpart 25.5 . d 1 a contract with a period of performance that spans the', 15996:'schedule of domestic content threshold increases specified in paragraph a2i of this section shall be required to comply with each', 15997:'increased threshold for the items in the year of delivery, unless the senior procurementexecutive ofthe contracting agency allows for applicationof', 15998:'an alternate domestic content test for that contract under whichthe domestic content threshold ineffect at time of contract award will', 15999:'apply to the entire period of performance for the contract. this authority is not delegable. the senior procurement executive shall', 16000:'consult theofficeof management and budgets made in america office before allowing the use ofthe alternate domesticcontent test. 2 when a', 16001:'senior procurement executive allows for application of an alternate domestic content test for a contract— i see 25.1101a1ii or 25.1101b1v', 16002:'for use of the appropriate alternate clause to reflect the domestic content threshold that will apply to the entire period', 16003:'of performance for that contract; and ii use the fillin at 52.2134b1xviib instead of including 52.2251 alternate i when using', 16004:'52.2134, terms and conditions—simplified acquisitions other than commercial products and commercial services. subpart 25.1 buy americansupplies 25.104 25.102 policy. except', 16005:'as provided in 25.103, acquire only domestic end products for public use inside the united states. 25.103exceptions. when one of', 16006:'thefollowing exceptions applies,the contracting officer mayacquire a foreign endproduct without regardto the restrictions of the buy american statute: a public', 16007:'interest. the head of the agency may make a determination that domestic preference would be inconsistent with the public interest.', 16008:'this exception applies when an agency has an agreement with a foreign government that provides a blanket exception to the', 16009:'buy american statute. b nonavailability. the buy american statute does not apply with respect to articles, materials, or supplies if', 16010:'articles, materials, or supplies of the class or kind to be acquired, either as end items or components, are not', 16011:'mined, produced, or manufacturedin the united states in sufficient and reasonablyavailablecommercial quantitiesand of a satisfactory quality. 1 class determinations. i', 16012:'a nonavailability determination has been made for the articles listed in 25.104. this determination does not necessarily mean that there', 16013:'is no domestic source for the listed items, but that domestic sources can only meet 50 percent or less of', 16014:'total u.s. government and nongovernment demand. ii before acquisition of an article on the list, the procuring agency is responsible', 16015:'to conduct market research appropriate to the circumstances, including seeking of domestic sources. this applies to acquisition of an article', 16016:'as a an end product; or b a significant component valued at more than 50 percent of the value of', 16017:'all the components. iii the determination inparagraph b1i of this section doesnot applyif the contracting officer learns atany time before', 16018:'the time designated for receipt of bids in sealed bidding or finaloffers in negotiation that an article on the list', 16019:'is availabledomesticallyin sufficient and reasonably availablecommercial quantitiesof asatisfactory quality tomeet the requirementsof the solicitation. the contracting officer must a ensure', 16020:'that the appropriate buy american statute provision and clause are included in the solicitation see 25.1101a, 25.1101b, or 25.1102; b', 16021:'specify in the solicitation that the article is available domestically and thatofferorsand contractors maynot treat foreign components of the same', 16022:'class or kind as domestic components; and c submit a copy of supporting documentation to the appropriate council identified in', 16023:'1.2011, in accordance with agency procedures, for possible removal of the article from the list. 2 individual determinations. i the', 16024:'head of the contracting activity may make a determination that an article, material, orsupplyis not mined, produced, or manufactured in', 16025:'the united states in sufficientandreasonably available commercial quantities of a satisfactoryquality. a determination isnot required beforejanuary 1, 2030, if there', 16026:'is anoffer for a foreign end product that exceeds 55 percent domestic content see 25.106b2 and 25.106c2. iiif the contracting', 16027:'officer considers that the nonavailability ofan articleis likely to affectfuture acquisitions, thecontracting officer may submit a copy of the determination', 16028:'and supporting documentation to the appropriate council identified in 1.2011, in accordance with agency procedures, for possible addition to the', 16029:'list in 25.104. 3 a written determination is not required if all of the following conditions are present: i the', 16030:'acquisition was conducted through use of full and open competition. ii the acquisition was synopsized in accordance with 5.201. iii', 16031:'no offerfora domesticend product was received. c unreasonable cost. the contracting officer maydetermine that the cost of a domesticendproduct would', 16032:'be unreasonable, in accordance with 25.106 and subpart 25.5. d resale.the contracting officer may purchase foreignendproducts specificallyforcommissary resale. e information', 16033:'technology that is a commercial product. the restriction on purchasing foreign end products does not apply to the acquisition of', 16034:'information technology that is a commercial product, when using fiscal year 2004 or subsequent fiscal year funds section535a of division', 16035:'f, title v, consolidated appropriations act, 2004,andsimilarsectionsin subsequent appropriations acts. 25.104nonavailable articles. a the following articles have been determined to', 16036:'be nonavailable in accordance with 25.103b1i: acetylene, black. agar, bulk. anise. federal acquisition regulation antimony, as metal or oxide. asbestos,', 16037:'amosite, chrysotile, and crocidolite. bamboo shoots. bananas. bauxite. beef, corned, canned. beef extract. bephenium hydroxynapthoate. bismuth. books, trade, text, technical,', 16038:'or scientific; newspapers; pamphlets; magazines; periodicals; printed briefs and films; not printed in the united states and for which domestic', 16039:'editions are not available. brazil nuts, unroasted cadmium, ores and flue dust. calcium cyanamide. capers. cashew nuts. castor beans and', 16040:'castor oil. chalk, english. chestnuts. chicle. chrome ore or chromite. cinchona bark. cobalt, in cathodes, rondelles, or other primary ore', 16041:'and metal forms. cocoa beans. coconut and coconut meat, unsweetened, in shredded, desiccated, or similarly prepared form. coffee, raw or', 16042:'green bean. colchicine alkaloid, raw. copra. cork, wood or bark and waste. cover glass, microscope slide. crane rail 85pound per', 16043:'foot. cryolite, natural. dammar gum. diamonds, industrial, stones and abrasives. emetine, bulk. ergot, crude. erythrityl tetranitrate. fair linen, altar. fibers', 16044:'of the followingtypes: abaca, abace, agave, coir, flax, jute, jute burlaps,palmyra, and sisal. goat and kidskins. goat hair canvas. grapefruit', 16045:'sections, canned. graphite, natural, crystalline, crucible grade. hand file sets swiss pattern. handsewing needles. hemp yarn. hog bristles for brushes.', 16046:'hyoscine, bulk. ipecac, root. iodine, crude. kaurigum. lac. leather,sheepskin,hair type. subpart 25.1 buy americansupplies 25.104 lavender oil. manganese. menthol, natural', 16047:'bulk. mica. microprocessor chips brought onto a government construction site as separate units for incorporation into building systems during construction', 16048:'or repair and alteration of real property. modacrylic fiber. nickel,primary,in ingots, pigs, shots, cathodes, or similar forms; nickel oxide and', 16049:'nickel salts. nitroguanidine also known as picrite. nux vomica, crude. oiticica oil. olive oil. olives green, pitted or unpitted, or', 16050:'stuffed, in bulk. opium, crude. oranges, mandarin, canned. petroleum, crude oil, unfinished oils, and finished products. pine needle oil. pineapple,', 16051:'canned. platinumandrelated group metals, refined, as sponge, powder, ingots,or cast bars. pyrethrum flowers. quartz crystals. quebracho. quinidine. quinine. rabbit fur', 16052:'felt. radium salts, source and special nuclear materials. rosettes. rubber,crude and latex. rutile. santonin, crude. secretin. shellac. silk, raw and', 16053:'unmanufactured. spare and replacement parts for equipment of foreign manufacture, and for which domestic parts are not available. spices and', 16054:'herbs, in bulk. sugars,raw. swords and scabbards. talc, block, steatite. tantalum. tapioca flour and cassava. tartar, crude; tartaric acidandcream of', 16055:'tartar in bulk. tea in bulk. thread, metallic gold. thyme oil. tinin bars,blocks, and pigs. triprolidine hydrochloride. tungsten. vanilla beans.', 16056:'venom, cobra. waterchestnuts. wax, carnauba. wire glass. federal acquisition regulation woods; logs, veneer, and lumber of thefollowing species: alaskan yellowcedar,', 16057:'angelique, balsa, ekki, greenheart, lignum vitae, mahogany, andteak. yarn, 50 denier rayon. yeast, active dry and instant activedry. b this', 16058:'list will be published in the federal register for public comment no less frequently than once every five years. unsolicited', 16059:'recommendations for deletions from thislist may besubmitted atany time and should provide sufficient data and rationale to permit evaluation see', 16060:'1.502. 25.105critical components and critical items. a the following is a list of articles that have been determined to be', 16061:'a critical component or critical item and their respective preference factors. 12 [reserved] b the list of articles and preference', 16062:'factors in paragraph a of this section will be published in the federal register for public comment no less frequently', 16063:'than once every 4 years. unsolicited recommendations for deletions from this list may be submitted at any time and should', 16064:'provide sufficient data and rationale to permit evaluation see 1.502. c for determining reasonableness of cost for domestic end products', 16065:'that contain critical components or are critical items see 25.106c. 25.106 determiningreasonableness of cost. a thecontracting officer 1 must use', 16066:'the evaluation factors in paragraphs b and c of this section unless the head of the agency makes a written', 16067:'determination that the use of higher factors is more appropriate. if the determination applies to all agency acquisitions, the agency', 16068:'evaluation factors must be published in agency regulations; and 2 must not apply evaluation factors to offers ofeligible productsif the', 16069:'acquisition is subject to a trade agreement under subpart 25.4. b for end products that are not critical items and', 16070:'do not contain critical components. 1 iifthereisadomesticofferthatisnotthelowoffer,andtherestrictionsofthebuyamericanstatuteapplytothe low offer,the contracting officer must determine the reasonableness of the cost of the', 16071:'domestic offer byadding tothe price of thelow offer, inclusive ofduty— a20 percent, if thelowest domestic offer isfrom a large business', 16072:'concern; or b 30 percent, if the lowest domestic offeris froma small businessconcern. the contracting officer must use this factor,or', 16073:'another factor established inagency regulations, in small business setasides ifthe low offer is from a small businessconcernofferingtheproductofasmallbusinessconcernthatisnotadomesticendproductsee subpart 19.5. iithe', 16074:'price of the domestic offer isreasonable if it doesnot exceedthe evaluated price of the low offerafter addition of the appropriate', 16075:'evaluation factor in accordance with paragraph a or b1i of this section. see evaluation procedures at subpart 25.5. 2 i', 16076:'for end products that are not cots items and do not consist wholly or predominantly of iron or steel or', 16077:'a combination of both, if the procedures in paragraph b1i of this section result in an unreasonable cost determination for', 16078:'thedomestic offer or thereis no domestic offerreceived, and thelow offeris for aforeign end product that does notexceed 55 percent domestic', 16079:'content, thecontracting officer shall— atreat thelowest offer of a foreign end productthat is manufactured inthe united states and exceeds 55', 16080:'percent domestic content as a domestic offer;and b determine thereasonableness of the cost ofthis offer by applying the evaluation factorslisted', 16081:'in paragraph b1i of this section to the lowoffer. iithe price of the lowest offer of a foreign endproduct that', 16082:'exceeds55 percentdomestic content is reasonable if it doesnot exceed the evaluated price of the lowoffer after additionof the appropriate evaluation', 16083:'factor in accordance with paragraph a or b1i of this section. see evaluation procedures at subpart 25.5. iii the procedures', 16084:'in this paragraph b2 will no longer apply as of january 1, 2030. c for end products that are critical', 16085:'items or contain critical components. 1 iifthereisadomesticofferthatisnotthelowoffer,andtherestrictionsofthebuyamericanstatuteapplytothe low offer,the contracting officer shall determine thereasonableness of the cost ofthe domestic offerby', 16086:'adding to the priceof thelow offer, inclusive ofduty— subpart 25.1 buy americansupplies 25.106 a 20 percent, plus the additional preference', 16087:'factor identified for the critical item or end product containing critical components listed at section 25.105, if thelowest domestic offer', 16088:'isfrom a large business concern; or b 30 percent, plus the additional preference factor identified for the critical item or', 16089:'end product containing critical components listed at section 25.105, if thelowest domestic offer isfrom a small business concern. thecontracting officer', 16090:'shall use this factor,or another factor established inagency regulations, in small business setasides ifthe low offer is from asmall business', 16091:'concern offering the product of a smallbusinessconcern thatis not a domestic end productsee subpart 19.5. iithe price of the domestic', 16092:'offer isreasonable if it doesnot exceedthe evaluated price of the low offerafter addition of the appropriate evaluation factor in accordance', 16093:'with paragraph a or b of this section. see evaluation procedures at subpart 25.5. 2 i for end products that', 16094:'are not cots items and do not consist wholly or predominantly of iron or steel or a combination of both,', 16095:'if the procedures in paragraph c1ii of this section result in an unreasonable cost determination for thedomestic offer or thereis', 16096:'no domestic offerreceived, and thelow offeris for aforeign end product that does notexceed 55 percent domestic content, thecontracting officer shall—', 16097:'atreat thelowest offer of a foreign end productthat is manufactured inthe united states and exceeds 55 percent domestic content as', 16098:'a domestic offer;and b determine thereasonableness of the cost ofthis offer by applying the evaluation factorslisted in paragraph c1of this', 16099:'section to thelow offer. iithe price of the lowest offer of a foreign endproduct that exceeds55 percentdomestic content is reasonable', 16100:'if it doesnot exceed the evaluated price of the lowoffer after additionof the appropriate evaluation factor in accordance with paragraph', 16101:'a or b of this section. see evaluation procedures at subpart 25.5. iii the procedures in this paragraph c2 will', 16102:'no longer apply as of january 1, 2030. this page intentionally left blank. 25.112 subpart 25.2 buy americanconstruction materials 25.202', 16103:'subpart 25.2 buy americanconstruction materials 25.200scope of subpart. a this subpart implements 1 41 u.s.c. chapter 83, buy american; 2', 16104:'executive order 10582, december 17, 1954; 3 executive order 13881, july 15, 2019; 4 executive order 14005, january 25, 2021;', 16105:'and 5 waiver of the domestic content test of the buy american statute for acquisitions ofcommercially available offtheshelf cots items', 16106:'in accordance with 41 u.s.c. 1907, but see 25.201b2ii. b it applies to contracts for the construction, alteration, or repair', 16107:'of any public building or public work in the united states. c when using funds appropriated or otherwise provided by', 16108:'the american recovery and reinvestment act of 2009 pub. l. 1115recoveryactforconstruction,see subpart 25.6. 25.201 policy. a except as provided in', 16109:'25.202, use only domestic construction materials in construction contracts performed in the united states. b the buy american statute restricts', 16110:'the purchase of construction materials that are not domestic construction materials. for manufactured construction materials, the buy american statute, e.o.', 16111:'13881, and e.o. 14005 use a twopart test to define domestic construction materials. 1 the article must be manufactured in', 16112:'the united states; and 2 i except for construction material that consists wholly or predominantly of iron or steel or', 16113:'a combination of both, the cost of domestic components must exceed 60 percent of the cost of all the components,', 16114:'except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent', 16115:'for items delivered starting in calendar year 2029, but see paragraph c of this section. in accordance with 41 u.s.c.', 16116:'1907, this domestic content test of the buy american statute has been waived for acquisitions of cots items see 12.505a.', 16117:'ii for construction material that consists wholly or predominantly of iron or steel or a combination of both, the cost', 16118:'of foreign iron and steel must constitute less than 5 percent of the cost of all the components used in', 16119:'such construction material see the definition of foreign iron and steel at 25.003. the cost of foreign iron and steel', 16120:'includes but is not limited to the cost of foreign iron or steel mill products such as bar, billet, slab,', 16121:'wire, plate, or sheet, castings,or forgings utilized in the manufacture of the construction material and a good faith estimate of', 16122:'the cost of all foreign iron or steel components excluding cots fasteners. this domestic content test of the buy american', 16123:'statute has not been waived for acquisitions of cots items in thiscategory, except for cots fasteners. c 1 a contract', 16124:'with a period of performance that spans the schedule of domestic content threshold increases specified in paragraph b2i of this', 16125:'section shall be required to comply with each increased threshold for the items in the year of delivery, unless the', 16126:'senior procurementexecutive ofthe contracting agency allows for applicationof an alternate domestic content test for that contract under whichthe domestic content', 16127:'threshold ineffect at time of contract award will apply to the entire period of performance for the contract. this authority', 16128:'is not delegable. the senior procurement executive shall consult theofficeof management and budgets made in america office before allowing the', 16129:'use ofthe alternate domesticcontent test. 2 when a senior procurement executive allows for application of an alternate domestic content test', 16130:'for a contract, see 25.1102a3 or c4 for use of the appropriate alternate clause to reflect the domestic content threshold', 16131:'that will apply to the entire period of performance for that contract. 25.202exceptions. a when one of the followingexceptions applies,', 16132:'the contractingofficer may allowthe contractor to acquire foreign construction materials without regard to the restrictions of the buy american statute:', 16133:'1 impracticable or inconsistent with public interest. the head of the agency may determine that application of the restrictions of', 16134:'the buy american statute to a particular construction material would be impracticable or would be inconsistent with the public interest.', 16135:'the public interest exception applies when an agency has an agreement with a foreign government that provides a blanket exception', 16136:'to the buy american statute. federal acquisition regulation 2 nonavailability. the head of the contracting activity may determine that a', 16137:'particular construction material is not mined, produced, or manufactured in the united states in sufficientandreasonably available commercial quantities of a', 16138:'satisfactoryquality. the determinations of nonavailability of the articles listed at 25.104a and the procedures at 25.103b 1 also apply if', 16139:'any of those articles are acquired as construction materials. a determination is not required before january 1, 2030, if there', 16140:'isan offer for a foreign construction material thatexceeds 55 percent domestic content see 25.204b1ii and 25.204b2ii. 3 unreasonable cost.the contracting', 16141:'officer concludes thatthe cost of domesticconstruction material isunreasonable in accordance with 25.204. 4 information technology that is a commercial product.', 16142:'the restriction on purchasing foreign construction material doesnot apply to the acquisition of information technology that is acommercial product, when', 16143:'using fiscal year2004 or subsequent fiscal year funds section 535a of divisionf, title v, consolidated appropriations act, 2004, andsimilar sections', 16144:'in subsequent appropriations acts. b determination and findings. when a determination is made for any of the reasons stated in', 16145:'this section that certain foreign construction materialsmay be used,the contracting officer must list the excepted materialsin thecontract. the agency must', 16146:'make the findings justifying the exception available for public inspection. c acquisitions under trade agreements. for construction contracts with an', 16147:'estimated acquisition value of $6,708,000 or more, see subpart 25.4. 25.203 preaward determinations. a for any acquisition, an offeror may', 16148:'request from thecontracting officer a determination concerningthe inapplicability of the buy american statute for specifically identified construction materials. the time', 16149:'for submitting the request is specified in the solicitation in paragraph b of either 52.22510 or 52.22512, whichever applies. the', 16150:'information and supporting data that must be included in the request are also specified in the solicitation in paragraphs c', 16151:'and d of either 52.2259 or 52.22511, whichever applies. b before award,the contracting officer must evaluate all requests based on', 16152:'the information provided and may supplement this information with other readily available information. 25.204 evaluating offers of foreign construction material.', 16153:'a offerors proposing touse foreign construction material other thanthat listed by the government inthe applicable clause at 52.2259, paragraph b2,', 16154:'or 52.22511, paragraphb3,or covered by the wto gpaor afree trade agreement paragraph b2 of 52.22511, must provide the information required', 16155:'by paragraphs c and d of the respective clauses. b 1 for construction material that is not a critical item', 16156:'and does not contain critical components. iunless theheadof the agency specifies ahigher percentage, the contracting officer shall add to the', 16157:'offered price 20 percent of the cost of any foreign construction material proposed for exception from the requirements of the', 16158:'buy american statute based on the unreasonable cost of domestic construction materials. in the case of a tie, the contracting', 16159:'officer shall give preference to an offerthat does not include foreign constructionmaterial excepted at the request of the offeror on', 16160:'the basis of unreasonable cost. ii for construction material that is not a cots item and does not consist wholly', 16161:'or predominantly of iron or steel or a combination of both, if the procedures in paragraph b1i of this section', 16162:'result in an unreasonable cost determination for thedomestic construction material offer or there isno domestic constructionmaterial offer received,andthe low offer', 16163:'is for foreign construction material that does notexceed 55percent domesticcontent, the contracting officer shall— atreat thelowest offer of foreign construction', 16164:'material that is manufacturedin the united states and exceeds 55 percent domestic content as a domestic offer; and b determine', 16165:'thereasonableness of the cost ofthis offer by applying the evaluation factor listed in paragraphb 1i to the lowoffer. iii the', 16166:'procedures in paragraph b1ii of this section will no longer apply as of january 1, 2030. 2 for construction material', 16167:'that is a critical item or contains critical components. ithe contracting officer shall add to the offered price 20 percent,', 16168:'plus the additional preference factor identified for the critical item or construction material containing critical components listed at section 25.105,', 16169:'of the cost of any foreign construction material proposed for exception from the requirements of the buy american statute based', 16170:'on the unreasonable cost of domesticconstruction materials. in the case ofa tie, thecontracting officer shall give preference to an offer', 16171:'that does subpart 25.2 buy americanconstruction materials 25.206 not include foreignconstruction material excepted at the request of the offeror on', 16172:'the basis of unreasonable cost. see 25.105 for the list of critical components and critical items. ii for construction material', 16173:'that is not a cots item and does not consist wholly or predominantly of iron or steel or a combination', 16174:'of both, if the procedures in paragraph b2i of this section result in an unreasonable cost determination for thedomestic construction', 16175:'material offer or there isno domestic constructionmaterial offer received,andthe low offer is for foreign construction material that does notexceed 55percent', 16176:'domesticcontent, the contracting officer shall— atreat thelowest offer of foreign construction material that is manufacturedin the united states and exceeds', 16177:'55 percent domestic content as a domestic offer; and b determine thereasonableness of the cost ofthis offer by applying the', 16178:'evaluation factorslisted in this paragraph b2 tothe low offer. iii the procedures in paragraph b2ii of this section will no', 16179:'longer apply as of january 1, 2030. c offerors also may submit alternateoffers basedon useof equivalent domestic construction material to', 16180:'avoid possible rejection of the entire offer if the government determines that an exception permitting use ofa particular foreign construction', 16181:'material does not apply. d if the contracting officer awards a contractto anofferor that proposed foreign construction material not listed', 16182:'in the applicable clause in the solicitation paragraph b2 of 52.2259, or paragraph b3 of 52.22511, the contracting officer must', 16183:'add the excepted materials to the list in the contract clause. 25.205postaward determinations. a if a contractor requests a determination', 16184:'regarding the inapplicability of the buy american statute after contract award, the contractor must explain why it could not request', 16185:'the determination before contract award or why the need for such determination otherwise was not reasonably foreseeable. if the contracting', 16186:'officerconcludes that the contractor should have made the request before contract award, the contracting officer may deny the request. b', 16187:'the contractingofficer mustbase evaluation of any request for a determination regarding theinapplicability of the buy american statute made after contract', 16188:'award on information required by paragraphs c and d of the applicable clause at 52.2259 or 52.22511 and/or other readily', 16189:'available information. c if a determination, under 25.202a, is made after contract award that an exception to the buy american', 16190:'statute applies,the contracting officer must negotiate adequateconsideration and modify the contract to allow use of the foreign construction material. when', 16191:'the basis for the exception is the unreasonable price of a domestic construction material, adequate consideration is at least the', 16192:'differential establishedin 25.202a or in accordance with agency procedures. 25.206noncompliance. the contractingofficer must a review allegations of buy american statute', 16193:'violations; b unless fraud is suspected, notify the contractor of the apparent unauthorized use of foreign construction material and request', 16194:'a reply,to include proposed corrective action; and c if the review reveals that a contractor or subcontractor has used foreign', 16195:'construction material without authorization, take appropriate action, including one or more of the following: 1 process a determination concerning the', 16196:'inapplicability of the buy american statute in accordance with 25.205. 2 consider requiring the removal and replacement of the unauthorized', 16197:'foreign construction material. 3 if removal and replacement of foreign construction material incorporated in a building or work would be', 16198:'impracticable,cause unduedelay, or otherwise be detrimental to the interests ofthe government, thecontracting officer may determine in writing that the foreign', 16199:'construction material need not be removed and replaced. a determination to retain foreign construction material does not constitute a determination', 16200:'that an exception to the buy american statute applies, and this should bestatedin thedetermination. further, a determination to retain foreign', 16201:'construction material does notaffect the government’s right to suspend or debar a contractor, subcontractor, or supplier for violation of thebuy', 16202:'american statute, or to exercise other contractual rights and remedies, such as reducing the contract price or terminating the contract', 16203:'for default. 4 if the noncompliance is sufficiently serious, considerexercisingappropriate contractual remedies, suchas terminating the contract for default. also consider', 16204:'preparing and forwarding a report to the agency suspending or debarring official in accordance with subpart 9.4. if the noncompliance', 16205:'appears to be fraudulent, refer the matter to other appropriate agency officials,such as the officer responsible for criminal investigation. this', 16206:'page intentionally left blank. 25.24 subpart 25.3 contracts performed outside the united states 25.3014 subpart 25.3 contracts performed outside the', 16207:'united states 25.301 contractor personnel in a designated operational area or supporting a diplomaticor consular mission outside the united states.', 16208:'25.3011 scope. a this section applies to contracts requiring contractor personnel to perform outside the united states 1 in a', 16209:'designated operational area during i contingency operations; ii humanitarian or peacekeeping operations; or iii other military operations or military exercises,', 16210:'when designated by the combatant commander; or 2 when supporting a diplomatic or consular mission i that has been designated', 16211:'by the department of state as a danger pay post see https://aoprals.state.gov/; or iithat the contracting officer determines is a', 16212:'postat which application ofthe clause at far 52.22519, contractor personnel in a designated operational area or supporting a diplomatic or', 16213:'consular mission outside the united states, is appropriate. b any of the types of operations listed in paragraph a1 of', 16214:'this section may include stability operations such as 1 establishment or maintenance of a safe and secure environment; or 2', 16215:'provision ofemergency infrastructure reconstruction, humanitarian relief, oressential governmentalservices until feasible to transition to local government. c this section does notapply', 16216:'to personal services contracts see far 37.104, unless specified otherwise in agency procedures. 25.3012 government support. a generally, contractorsare responsible', 16217:'for providing their own logistical and security support, includinglogistical and security support for their employees. the agency shall provide logistical', 16218:'or security support only when the appropriate agency official, in accordance withagency guidance, determines that 1 such government support is', 16219:'available and is needed to ensure continuation of essential contractor services; and 2 the contractor cannot obtain adequate support from', 16220:'other sources at a reasonable cost. b the contractingofficer shall specify inthe contract, and in the solicitationif possible, the exactsupport', 16221:'to be provided, and whether this support is provided on a reimbursable basis, citing the authority for the reimbursement. 25.3013weapons.', 16222:'the contractingofficer shall follow agencyprocedures and the weaponspolicyestablished by the combatant commander or the chief of mission when authorizing contractor', 16223:'personnel to carry weapons see paragraph i of the clause at 52.22519, contractor personnel in a designated operational area or', 16224:'supporting a diplomatic or consular mission outside the united states. 25.3014 contract clause. insert the clause at 52.22519, contractor personnel', 16225:'in a designated operational area or supporting a diplomatic or consular mission outside the united states, in solicitations and contracts,', 16226:'other than personal service contracts with individuals, that will require contractor personnel to perform outside the united states— a in', 16227:'a designated operational area during– 1 contingency operations; 2 humanitarian or peacekeeping operations; or 3 other military operations or military', 16228:'exercises, when designated by the combatant commander; or b when supporting a diplomatic or consular mission– 1 that has been', 16229:'designated by the department of state as a danger pay post see https://aoprals.state.gov/; or 2 that the contracting officer determines', 16230:'is a post at which application of theclause far 52.22519, contractor personnel in a designated operational area or supporting a', 16231:'diplomatic or consular mission outside the united states, is appropriate. federal acquisition regulation 25.302contractors performing private security functions outside the', 16232:'united states. 25.3021 scope. this section prescribes policy for implementing section 862 of the national defense authorization act ndaa for', 16233:'fiscal year fy 2008 pub. l. 110181, asamended by section853 of the ndaa for fy 2009pub. l. 110417, and sections', 16234:'831 and 832 of the ndaa for fy2011 pub. l. 111383 see10 u.s.c. subtitle a, partv, subpart g note. 25.3022', 16235:'definitions. as used in this section area of combat operations means an area of operations designated as such by the', 16236:'secretary of defense when enhanced coordination of contractors performing private security functions working for government agencies is required. other significant', 16237:'military operations means activities, other than combat operations, as part of a contingency operation outside the united states that is', 16238:'carried out by united states armed forces in an uncontrolled or unpredictable highthreat environment where personnel performing security functions may', 16239:'be called upon to use deadly force see 25.3023a2. private security functions means activities engaged in by a contractor, asfollows', 16240:'1 guardingof personnel, facilities, designated sites,or property of a federal agency, the contractor or subcontractor, or a third party; or', 16241:'2 any other activity for which personnel are required to carry weapons in the performance of their duties in accordance', 16242:'with the terms of the contract. 25.3023applicability. a this section applies to contracts that require performance outside the united states', 16243:'1 in an area of combat operations as designated by the secretary of defense; or 2 in an area of', 16244:'other significant military operations as designated by the secretary of defense, and only upon agreement of the secretary of defense', 16245:'and the secretary of state. b these designations can be found at http://www.acq.osd.mil/dpap/pacc/cc/ designatedareasofothersignificantmilitaryoperations.html and http://www.acq.osd.mil/dpap/pacc/cc/ designatedareasofcombatoperations.html. c when the', 16246:'applicability requirements of this subsection are met, contractors and subcontractors must comply with 32 cfr part 159, whether the contract', 16247:'is for the performance of private security functions as a primary deliverable or the provision of private security functions is', 16248:'ancillary to the stated deliverables. d the requirements of section 25.302 shall not apply to 1 contracts entered into by', 16249:'elements of the intelligence community in support of intelligence activities; or 2 temporary arrangements entered into ona nondod contract for', 16250:'the performance of private security functions by individualindigenous personnel not affiliated with a local orexpatriate security company. these temporary arrangements', 16251:'must still comply with local law. 25.3024policy. a general. 1 the policy, responsibilities, procedures, accountability, training, equipping, and conductof personnel', 16252:'performing private security functions in designated areas are addressed at 32 cfr part 159, entitled private security contractors operating in', 16253:'contingency operations. contractor responsibilities include ensuring that employees are aware of, and comply with, relevant orders, directives, and instructions; keeping', 16254:'appropriate personnel records; accounting for weapons; registering and identifying armored vehicles, helicopters, and other military vehicles; and reporting specified incidents', 16255:'in which personnel performing private security functions under a contract are involved. 2 in addition, contractors are required to fully', 16256:'cooperate with any governmentauthorized investigation into incidents reported pursuant to paragraph c3 of the clause at 52.22526, contractors performing private', 16257:'security functions outside the united states, by providing access to employees performing private security functions and relevant information in the', 16258:'possession of the contractor regarding the incident concerned. b implementing guidance. in accordance with 32 cfr part 159 1 geographic', 16259:'combatant commanders will provide dod contractors performing private security functions with guidance and procedures for the operational environment in their', 16260:'area of responsibility; and 2 in a designated area of combat operations, or areas of other significant military operations, as', 16261:'designated by the secretary of defense and only upon agreement of the secretary of defense and the secretary of state,', 16262:'the relevant chief subpart 25.3 contracts performed outside the united states 25.3026 of mission will provide implementing instructions for nondod', 16263:'contractors performing private security functions and their personnel consistent with the standards set forth by the geographiccombatant commander. in accordance', 16264:'with 32 cfr 159.4c, the chief of mission has the option of instructing nondod contractors performing private security functions and', 16265:'their personnel to follow the guidance and procedures of the geographic combatant commander and/or a subunified commander or joint force', 16266:'commander where specifically authorized by the combatant commander to do so and notice of that authorization is provided to nondod', 16267:'agencies. 25.3025 remedies. a in addition to other remedies available to the government 1 the contractingofficer may direct the contractor,', 16268:'at its own expense, to remove and replace any contractor or subcontractor personnel performing private security functions who fail to', 16269:'comply with or violate applicable requirements. such action may be taken at the governments discretion without prejudice to its rights', 16270:'under any other contract provision, e.g., termination for default; 2 the contractingofficer shall includethe contractor’s failure tocomply with therequirements of', 16271:'this section in appropriate databases of past performance and consider any such failure in any responsibility determination or evaluation of', 16272:'past performance; and 3 in the case of awardfee contracts, the contractingofficer shall considera contractor’s failure to comply with the', 16273:'requirementsof this subsection in the evaluation of thecontractor’s performance during the relevantevaluation period,and may treat such failure as a basis', 16274:'for reducing or denying award fees for such period or for recovering all or part of award fees previously paid', 16275:'for such period. b if the performance failures are severe,prolonged, or repeated, the contracting officershallreferthe matter to the appropriate suspending', 16276:'and debarring official. 25.3026 contract clause. a use the clause at 52.22526, contractors performing private security functions outside the united', 16277:'states, in solicitations and contracts for performance outside the united states in an area of 1 combat operations, as designated', 16278:'by the secretary of defense; or 2 other significant military operations, as designated by the secretary of defense and only', 16279:'upon agreement of the secretary of defense and the secretary of state. b the clause is not required to be', 16280:'used for 1 contracts entered into by elements of the intelligence community in support of intelligence activities; or 2 temporary', 16281:'arrangements entered into bynondod contractors for the performance of private security functions by individualindigenous personnel not affiliated with a local', 16282:'orexpatriate security company. this page intentionally left blank. 25.34 subpart 25.4 trade agreements 25.401 subpart 25.4 trade agreements 25.400scope of', 16283:'subpart. a this subpart provides policies and procedures applicable to acquisitions that are covered by 1 the world trade organization', 16284:'government procurementagreement wto gpa, asapproved by congress in the uruguay round agreements act public law 103465; 2 free trade agreements', 16285:'fta, consisting of i usmca united statesmexicocanada agreement, as approved by congress in the united statesmexico canada agreement implementation act', 16286:'government procurement agreement applicable only to the united states and mexico pub. l. 116113 19 u.s.c. chapter 29 sections 45014732;', 16287:'iichile fta the united stateschile free trade agreement, as approvedby congressin the united stateschile free trade agreementimplementation act of1993 pub.', 16288:'l. 10877 19 u.s.c. 3805 note; iii singapore fta the united statessingapore free trade agreement,as approvedby congressin theunited statessingapore free', 16289:'trade agreementimplementation act pub. l. 1087819 u.s.c. 3805 note; iv australia ftathe united statesaustralia free trade agreement, as approved by', 16290:'congress in the united statesaustraliafree trade agreement implementation act pub. l. 108286 19 u.s.c. 3805 note; v moroccofta the unitedstatesmoroccofree', 16291:'trade agreement, as approved by congress in the united statesmorocco free trade agreementimplementation act pub. l. 108302 19 u.s.c. 3805', 16292:'note; vi caftadr the dominicanrepubliccentralamericaunited states freetradeagreement, as approved by congress inthe dominican republiccentral americaunited states free trade agreement implementation', 16293:'act pub. l. 10953 19 u.s.c. 4001 note; vii bahrainfta the united statesbahrainfree trade agreement, as approved by congress in', 16294:'the united states bahrain free trade agreement implementation act pub. l. 10916919 u.s.c. 3805 note; viii oman fta the united', 16295:'statesoman free trade agreement, as approved by congress in the united states oman free trade agreement implementation act pub. l.', 16296:'10928319 u.s.c. 3805 note; ix peru fta the united statesperu trade promotion agreement, as approved by congress in the united', 16297:'states perutradepromotion agreement implementationactpub. l. 110138 19 u.s.c. 3805 note; x korea fta the unitedstates–korea free trade agreementimplementation act pub.', 16298:'l. 1124119 u.s.c. 3805; xi colombia fta the unitedstates–colombia trade promotionagreement implementation act pub. l. 11242 19 u.s.c. 3805 note;', 16299:'and xii panamafta the united statespanamatradepromotion agreement implementationactpub. l. 11243 19 u.s.c. 3805 note; 3 the leastdevelopedcountry designationmadeby the u.s.', 16300:'trade representative, pursuant to the trade agreements act 19 u.s.c. 2511b4, in acquisitions covered by the wto gpa; 4 the', 16301:'caribbean basin trade initiative cbti determinationof the u.s. trade representative that end products or construction material granted dutyfree entry from', 16302:'countries designated as beneficiaries under the caribbean basin economic recovery act 19 u.s.c. 2701, et seq., with the exception of', 16303:'panama, must be treated as eligible products in acquisitions covered bythe wto gpa; 5 the israeli trade act the u.s.israel', 16304:'free trade area agreement, as approved by congress in the united states israel freetradearea implementation act of 1985 19u.s.c. 2112', 16305:'note; or 6 the agreement on trade in civil aircraft u.s. trade representative waiver of the buy american statute for', 16306:'signatoriesof the agreement on trade in civil aircraft, as implementedin the trade agreements act of 197919 u.s.c. 2513. b for', 16307:'application of the trade agreements that are unique to individual agencies, see agency regulations. 25.401exceptions. a this subpart does not', 16308:'apply to 1 acquisitions set aside for small businesses; 2 acquisitions of arms, ammunition, or war materials, or purchases indispensable', 16309:'for national security or for national defense purposes; 3 acquisitions of end products for resale; federal acquisition regulation 4 acquisitions', 16310:'from federal prison industries, inc., under subpart 8.6, and acquisitions under subpart 8.7, acquisition from nonprofit agencies employing people who', 16311:'are blind or severely disabled; 5 other acquisitions not using full and open competition, if authorized by subpart 6.2 or', 16312:'6.3, when the limitation of competition would preclude use of the procedures of this subpart; or sole source acquisitions justified', 16313:'in accordance with 13.501a; and 6 goods and services specifically excluded under individual trade agreements, such as exceptions negotiated by', 16314:'the u.s. trade representative for particular agencies. see the agency supplementary regulations. b in the world trade organization government procurement', 16315:'agreement wto gpa and each fta, there is a u.s. schedule that lists services that are excluded from that agreement', 16316:'in acquisitions by the united states. acquisitions of the following services are excluded from coverage bythe u.s. schedule of the', 16317:'wto gpa or an fta as indicated inthistable: the service federal service codes from the federal procurement data system product/service', 16318:'code manual are indicated in parentheses for some services. wto gpa and korea fta bahrain fta, caftadr, chile fta, columbia', 16319:'fta, usmca, oman fta, panama fta, and peru fta singapore fta australia and morocco fta 1 all services purchased in', 16320:'support of military services overseas. x x x x 2 i automatic data processing adp telecommunications and transmission services d304,', 16321:'except enhanced i.e., valueadded telecommunications services. x x ii adp teleprocessing and timesharing services d305, telecommunications network management services d316,', 16322:'automated news services, data services or other information services d317, and other adp and telecommunications services d399. x x iii', 16323:'basic telecommunications network services i.e., voice telephone services, packetswitched data transmission services, circuitswitched data transmission services, telex services, facsimile services,', 16324:'and private leased circuit services, but not information services, as defined in 47 u.s.c.15324. x x 3 dredging. x x', 16325:'x x 4 i operation and management contracts of certain government or privately owned facilities used for government purposes, including', 16326:'federally funded research and development centers. x x subpart 25.4 trade agreements 25.402 ii operation of all department of defense,', 16327:'department of energy, or the national aeronautics and space administration facilities; and all governmentowned research and development facilities or governmentowned', 16328:'environmental laboratories. x x 5 research and development. x x x x 6 transportation services including launching services, but not', 16329:'including travel agent services. x x x x 7 utility services. x x x x 8 maintenance, repair, modification, rebuilding', 16330:'and installation of equipment related to ships j019. x x 9 nonnuclear ship repair j998. x x note1. acquisitions of', 16331:'the services listed at 2iii of this table are a subset of the excluded services at 2i and ii, and', 16332:'aretherefore not covered under the wto gpa. note2. acquisitions of the services listed at 4ii of this table are a', 16333:'subset of the excluded services at 4i, and are therefore notcovered under the wto gpa. 25.402general. a 1thetradeagreementsact19 u.s.c.2501, et', 16334:'seq. provides the authority for the president to waive the buy american statute and other discriminatory provisions for eligible products', 16335:'from countries that have signed an international trade agreement withthe united states, or that meet certain other criteria, such as', 16336:'being a least developed country. the president hasdelegated this waiver authority to the u.s. trade representative. inacquisitions covered bythe wto', 16337:'gpa, free trade agreements, or theisraeli trade act, theu.s. traderepresentative has waived thebuy american statute and other discriminatory provisions for', 16338:'eligibleproducts. offers of eligible products receive equalconsideration with domestic offers. 2 the contractingofficer shall determine the originof services by the', 16339:'country in whichthe firm providing theservices is established. see subpart 25.5 for evaluation procedures for supply contracts covered by trade', 16340:'agreements. b the value of the acquisition is a determining factor in the applicability of trade agreements. most of these', 16341:'dollar thresholds are subject to revision by theu.s. traderepresentative approximatelyevery 2 years. the various thresholdsare summarized as follows: table 1', 16342:'toparagraph b trade agreement supply contract equal to or exceeding service contract equal to or exceeding construction contract equal to', 16343:'or exceeding wto gpa $174,000 $174,000 $6,708,000 ftas australia fta bahrain fta caftadr costa rica, dominican republic, el salvador, guatemala,', 16344:'honduras, and nicaragua chile fta colombia fta korea fta 102,280 174,000 102,280 102,280 102,280 100,000 102,280 174,000 102,280 102,280 102,280', 16345:'100,000 6,708,000 13,296,489 6,708,000 6,708,000 6,708,000 6,708,000 federal acquisition regulation morocco fta 174,000 174,000 6,708,000 usmca mexico 102,280 102,280 13,296,489', 16346:'oman fta 174,000 174,000 13,296,489 panama fta 174,000 174,000 6,708,000 peru fta 174,000 174,000 6,708,000 singapore fta 102,280 102,280 6,708,000', 16347:'israeli trade act 50,000 25.403 world trade organization government procurementagreement and free trade agreements. a eligibleproducts from wto gpa and', 16348:'fta countries are entitled to the nondiscriminatorytreatmentspecified in 25.402a1. the wto gpaand ftasspecify procurement proceduresdesigned to ensure fairness see 25.408.', 16349:'b thresholds. 1 to determine whether the acquisitionof products bylease,rental,or leasepurchasecontract including leasetoownership, orleasewithoptionto purchase is coveredby the wto gpa', 16350:'or an fta, calculate the estimated acquisition value as follows: i if a fixedterm contract of 12 months or less', 16351:'is contemplated, use the total estimated value of the acquisition. ii if a fixedterm contract of more than 12 months', 16352:'is contemplated, use the total estimated value of the acquisition plus the estimated residual value of the leased equipment at', 16353:'the conclusion of the contemplated term of the contract. iii if an indefiniteterm contract is contemplated, use the estimated monthly', 16354:'payment multiplied by the total number of months that ordering would be possible under the proposed contract, i.e., the initial', 16355:'ordering period plus any optional ordering periods. iv if there is any doubt as to the contemplated term of the', 16356:'contract, use the estimated monthly payment multiplied by 48. 2 the estimated value includes the value of all options. 3', 16357:'if, in any 12month period, recurring or multiple awards for the same type of product or products are anticipated, use', 16358:'the total estimated value of these projected awards to determine whether the wto gpaor an fta applies. do not divide', 16359:'any acquisition with theintent of reducing the estimatedvalueof the acquisition below the dollar threshold of the wto gpa or an', 16360:'fta. c purchase restriction. 1 under the trade agreements act 19 u.s.c. 2512, in acquisitions covered by the wto gpa,', 16361:'acquireonlyu.s.madeor designatedcountry end productsor u.s. or designated country services, unless offersfor suchend products orservicesare either not received or are insufficient', 16362:'to fulfill therequirements. this purchase restriction doesnot apply below thewto gpa threshold for supplies and services, even if the acquisition', 16363:'is coveredby an fta. 2 this restriction does not apply to purchases of supplies by the department of defense from', 16364:'a country with which it has entered into a reciprocal agreement, as provided in departmental regulations. 25.404least developed countries. for', 16365:'acquisitions coveredby the wto gpa, least developed country end products, construction material,andservicesmust be treated as eligible products. 25.405 caribbean basin', 16366:'trade initiative. under thecaribbeanbasin trade initiative, the united states trade representative hasdetermined that, for acquisitions covered bythe wto gpa, caribbean', 16367:'basin country end products, construction material,andservicesmust be treated as eligible products. in accordance with section 201 a3 of the dominican', 16368:'republiccentral americaunited states free trade implementation act pub. l. 10953 19 u.s.c. 4031,when the caftadr agreement enters into force with', 16369:'respectto a country, that countryis no longerdesignated asa beneficiarycountry for purposes of thecaribbean basin economic recovery act, and is therefore', 16370:'no longer included in the definition of caribbean basin country for purposes of thecaribbeanbasin trade initiative. subpart 25.4 trade agreements', 16371:'25.408 25.406 israeli trade act. acquisitions of supplies by most agencies arecovered by theisraeli trade act, if the estimated value', 16372:'of the acquisition is $50,000 or more butdoes not exceed thewtogpa threshold for supplies see 25.402b. agencies other than the', 16373:'department of defense,the department of energy, the departmentof transportation, the bureauof reclamation of the department of theinterior,the federalhousing finance board,', 16374:'and the office of thrift supervision must evaluate offers of israeli end productswithout regard to the restrictions of the buyamericanstatute.', 16375:'theisraeli trade act does not prohibitthe purchase of other foreign end products. 25.407 agreement on trade incivil aircraft. under theauthority', 16376:'of section 303of the trade agreements act, the u.s. trade representative has waived the buy american statute for civil aircraft', 16377:'and related articles thatmeet thesubstantial transformation test of thetradeagreements act, from countries that are parties to the agreement on trade', 16378:'in civil aircraft. thosecountriesare albania, austria, belgium, bulgaria, canada, croatia,cyprus, czechrepublic, denmark, egypt, estonia, finland, france, georgia, germany, greece, hungary,', 16379:'ireland,italy, japan, latvia, lithuania, luxembourg, macao china, malta, montenegro, the netherlands, norway, poland, portugal,romania, slovakia, slovenia, spain, sweden, switzerland, taiwan', 16380:'chinese taipei, and the united kingdom. 25.408 procedures. a if the wto gpa or an fta applies see 25.401, the', 16381:'contracting officer must 1 comply with the requirements of 5.203, publicizing and response time; 2 comply with the requirements of', 16382:'5.207, preparation and transmittal of synopses; 3 not include technical requirements in solicitations solely to preclude the acquisition of eligible', 16383:'products; 4 specify in solicitations that offerors must submit offers in the englishlanguage and inu.s. dollars see 52.21434, submission of', 16384:'offers inthe english language, and 52.21435, submission of offers in u.s. currency, or paragraph c5 of 52.2151, instruction toofferorscompetitive acquisitions;', 16385:'and 5 provide unsuccessful offerors from wto gpa or fta countries notice in accordancewith 14.4091 or 15.503. b see subpart', 16386:'25.5 for evaluation procedures and examples. this page intentionally left blank. 25.46 subpart 25.5 evaluating foreign offerssupply contracts 25.503 subpart', 16387:'25.5 evaluating foreign offerssupply contracts 25.501general. the contractingofficer a must apply the evaluation procedures of this subpart to eachline item', 16388:'of anoffer unless either the offeror the solicitation specifies evaluation on a group basis see 25.503; b mayrely on theofferor’s', 16389:'certificationof end product origin when evaluatinga foreign offer; cmustidentifyandrejectoffersofendproductsthatareprohibitedinaccordancewith subpart 25.7; and d when trade agreements are involved, must not', 16390:'use the buy american statute evaluation factors prescribed in this subpart to provide a preference for one foreign offer over', 16391:'anotherforeign offer. 25.502application. a unless otherwise specified in agency regulations, perform the following steps in the order presented: 1 eliminate', 16392:'all offers or offerors that are unacceptable for reasons other than price; e.g., nonresponsive, debarred or suspended, or a prohibited', 16393:'source see subpart 25.7. 2 rank the remainingoffers by price. 3 if the solicitation specifies award on the basis of', 16394:'factors in addition to cost or price, apply the evaluation factors as specifiedin this section and use the evaluated cost', 16395:'or price in determining the offerthat represents the best value tothe government. bforacquisitionscoveredbythewtogpasee subpart 25.4 1 consideronlyoffers of u.s.made ordesignated', 16396:'country end products, unless no offers of such end productswere received; 2 if the agencygives thesame consideration giveneligible offersto offers', 16397:'of u.s.made end products that are not domestic endproducts, award on the low offer. otherwise, evaluate inaccordancewith agency procedures; and', 16398:'3 if therewere no offers of u.s.made or designated countryendproducts, make a nonavailability determination see 25.103b2 and awardon the low', 16399:'offer see 25.403c. c for acquisitions not covered by the wtogpa, butsubject to the buy american statute an ftaor the', 16400:'israeli trade act also may apply, the following applies: 1 if the low offer is a domestic offer or an', 16401:'eligible offerunder anfta or the israelitradeact, awardon that offer. 2 if the low offer is a noneligible offer andthere were', 16402:'no domestic offers see 25.103b3, award onthe low offer. the procedures at 25.106b2 and 25.106c2 donot apply. 3 if the', 16403:'low offer is a noneligible offer andthere is an eligible offer thatis lower than the lowest domestic offer, award on', 16404:'the lowoffer. the procedures at 25.106b2 and 25.106c2 do notapply. 4 otherwise, apply the appropriate evaluation factor provided in 25.106', 16405:'to the low offer. theprocedures at 25.106b 2 and 25.106c2 do not apply. iif the evaluated price of the low', 16406:'offer remains less than thelowest domestic offer, award on thelow offer. iiif the priceof the lowestdomestic offer is less than', 16407:'the evaluated priceof the low offer, award on thelowest domestic offer. d ties. 1 if application of an evaluation factor', 16408:'results ina tie between a domestic offerand a foreign offer, award on thedomestic offer. 2 if no evaluation preference was', 16409:'applied i.e., offers afforded nondiscriminatory treatment under the buy american statute, resolve ties between domestic and foreign offers by a', 16410:'witnessed drawingof lots by animpartial individual. 3 resolve ties betweenforeign offersfrom small business concerns under the buyamericanstatute, a small business', 16411:'offering a manufactured articlethat doesnot meet the definition of domestic end product isa foreign offeror foreign offers from asmall business', 16412:'concern and a largebusiness concern inaccordance with 14.4086a. 25.503 group offers. a if the solicitation or an offerspecifiesthat award can', 16413:'be made only on a group ofline items oron allline items containedin thesolicitation or offer, rejectthe offer 1 if any', 16414:'part of the award would consist of prohibited end products see subpart 25.7; or 2 if the acquisition is covered', 16415:'by the wto gpa and any partof the offerconsists of items restricted in accordance with 25.403c. federal acquisition regulation b', 16416:'if an offer restricts awardto a group of line items or to all line items contained in the offer,determine for', 16417:'each line item whether to apply an evaluation factor see 25.5044, example 1. 1 first, evaluate offers thatdo not specify', 16418:'an award restriction on a line item basis in accordance with 25.502, determining a tentative award pattern byselecting for each', 16419:'line itemthe offer with thelowest evaluated price. 2 evaluate an offerthat specifies anaward restriction against the offered pricesof the tentativeaward', 16420:'pattern, applying the appropriate evaluation factor on a line item basis. 3 compute the total evaluated price for the tentative', 16421:'award pattern and the offer that specified an award restriction. 4 unlessthe total evaluated priceof the offerthat specified an award', 16422:'restriction isless than the totalevaluated price of the tentative award pattern, award based on the tentative award pattern. c if', 16423:'the solicitation specifies that award will be made only on a group of line items or all line items contained', 16424:'in the solicitation, determine the category of end products on the basis of each line item, but determine whether to', 16425:'apply an evaluation factor on the basis of the group of items see 25.5044, example 2. 1 if the proposed', 16426:'price of domestic end products exceeds 50 percent of the total proposed price of the group, evaluate theentire group as', 16427:'a domestic offer. evaluate allothergroups as foreign offers. 2 for foreign offers, if theproposed price of domesticend products and eligible', 16428:'products exceeds 50 percentof the total proposed price of the group, evaluate theentire group as aneligible offer. 3 apply the', 16429:'evaluation factor to the entire group in accordance with 25.502. d if no trade agreement applies to a solicitation and', 16430:'the solicitation specifies that award will be made only on a group of line items or all line items contained', 16431:'in the solicitation, determine the category of end products i.e., domestic or foreign on the basis of each line item,', 16432:'but determine whether to apply an evaluation factor on the basis of the group of items see 25.5044c, example 3.', 16433:'1 if the proposed price of domestic end products exceeds 50 percent of the total proposed price of the group,', 16434:'evaluate theentire group as a domestic offer. evaluate allothergroups as foreign offers. 2 apply the evaluation factor to the entire', 16435:'group in accordance with 25.502, except where 25.502c4 applies and theevaluated price of the low offer remains less than the', 16436:'lowest domestic offer. where the evaluatedprice of the low offer remains less than the lowest domestic offer, treatas a domestic', 16437:'offer any group wherethe proposed price of end products with a domestic content of at least 55 percent exceeds 50', 16438:'percent of the total proposed price of the group. 3 apply the evaluation factor to the entire group in accordance', 16439:'with 25.502c4. 25.504evaluation examples. the following examples illustrate the application of the evaluation procedures in 25.502 and 25.503. the examples', 16440:'assume that the contracting officerhas eliminated all offers thatare unacceptable for reasons otherthan price or a trade agreement see 25.502a1.', 16441:'the evaluation factor may change as provided in agency regulations. 25.5041 buy american statute. a 1 example 1. offer a', 16442:'$16,000 domestic end product, small business offer b $15,700 domestic end product, small business offer c $10,100 u.s.made end product', 16443:'not domestic, small business 2 analysis: this acquisition is for end products for use in the united states and is', 16444:'set aside for small business concerns. the buy american statute applies. since the acquisition value is less than $50,000 and', 16445:'the acquisition is set aside, none of thetrade agreementsapply. perform the stepsin 25.502a. offer c is of 50 percent domestic', 16446:'content, therefore offer c is evaluated as a foreign end product, because it is the product of a small business', 16447:'but is not a domestic end product see 25.502c4. since offer b is a domestic offer, apply the 30percent factor', 16448:'to offerc see 25.106b2. the resulting evaluated price of $13,130 remains lowerthan offer b. the cost of offer b is', 16449:'thereforeunreasonable see 25.106b1ii. the 25.106b2 procedures do not apply. awardon offer c at$10,100 see 25.502c4i. b 1 example 2. offer', 16450:'a $11,000 domestic end product, small business subpart 25.5 evaluating foreign offerssupply contracts 25.5043 offer b $10,700 domestic end product,', 16451:'small business offer c $10,200 u.s.made end product not domestic, small business 2 analysis: this acquisition is for end products', 16452:'for use in the united states and is set aside for small business concerns. the buy american statute applies. perform', 16453:'the steps in 25.502a. offer c is evaluated asa foreign end product because it is the product of a small', 16454:'business but is not a domestic end product see 25.502c4. after applying the 30 percent factor, the evaluated priceof offerc', 16455:'is $13,260. awardon offer b at$10,700 see 25.502c4ii. c 1 example 3. offer a $14,000 domestic end product complies with', 16456:'the required domestic content, small business. offer b 12,50010,100 u.s.made end product not domestic, exceeds 55% domestic content, small business.', 16457:'offer c u.s.made end product not domestic, with less than 55% domestic content, small business. 2 analysis. this acquisition is', 16458:'for end products for use in the united states and is set aside for small business concerns. the buy american', 16459:'statute applies. since the acquisition value is less than $50,000 and the acquisition is set aside, none of thetrade agreementsapply.', 16460:'perform the stepsin 25.502a. offers b and c areinitially evaluated as foreign end products, because they are the products of', 16461:'small businesses but are not domestic end products see 25.502c4. offer c is thelow offer. after applyingthe 30 percent factor,', 16462:'the evaluatedprice of offerc is $13,130. the resulting evaluated price of $13,130 remains lower than offera. the costof offerais therefore', 16463:'unreasonable. offer b is thentreated as adomestic offer, because it is for a u.s.made end product that exceeds 55 percent', 16464:'domesticcontent see 25.106b2. offerb is determined reasonable because it is lower than the $13,130 evaluated price ofoffer c. award on', 16465:'offer b at $12,500. 25.5042wto gpa/caribbean basin trade initiative/ftas. example 1. offer a $304,000 u.s.made end product not domestic offer', 16466:'b $303,000 u.s.made end product domestic, small business offer c $300,000 eligible product offer d $295,000 noneligible product not u.s.made', 16467:'analysis: eliminate offer d because the acquisition is coveredby the wto gpa and there isan offer of a u.s.made or', 16468:'an eligible product see 25.502b1. if the agency gives the same considerationgiven eligible offers to offers of u.s.made end products', 16469:'that are not domestic offers, it is unnecessary todetermine if u.s.made end productsare domestic large or small business. nofurther analysis', 16470:'is necessary. award on the lowremaining offer,offer csee 25.502b2. 25.5043fta/israeli trade act. a example 1. offer a $105,000 domestic end', 16471:'product, small business offer b $100,000 eligible product analysis: since the low offer isan eligible offer, award on the low', 16472:'offer see 25.502c1. b example 2. offer a $105,000 eligible product 25.5044 federal acquisition regulation offer b $103,000 noneligible product', 16473:'analysis: since the acquisition is not covered bythe wto gpa, the contracting officercan consider the noneligible offer. since no domestic', 16474:'offerwas received, make a nonavailability determination and award on offerb see 25.502c2. c example 3. offer a $105,000 domestic end', 16475:'product, large business offer b $103,000 eligible product offer c $100,000 noneligible product analysis: since the acquisition is not covered', 16476:'bythe wto gpa, the contracting officercan consider the noneligible offer. because the eligible offer offerb is lower thanthe domestic offeroffer', 16477:'a,no evaluation factor applies to the lowoffer offerc. award onthe low offer see 25.502c3. 25.5044group award basis. a example 1.', 16478:'offers item a b c 1 do = $55,000 el = $56,000 nel = $50,000 2 nel = $13,000 el', 16479:'= $10,000 el = $13,000 3 nel = $11,500 do = $12,000 do = $10,000 4 nel = $24,000 el', 16480:'= $28,000 nel = $22,000 5 do = $18,000 nel = $10,000 do = $14,000 $121,500 $116,000 $109,000 key: do', 16481:'= domestic end product el = eligible product nel = noneligible product problem: offeror c specifies allornone award. assume all', 16482:'offerors are large businesses. theacquisition is not covered by the wto gpa. analysis: see 25.503 step 1: evaluate offers a', 16483:'& b beforeconsidering offerc and determinewhich offer has the lowestevaluated cost for each line item the tentative award pattern: item', 16484:'1: low offer a is domestic; select a. item 2: low offer b is eligible; do notapply factor; selectb. item', 16485:'3: low offer a is noneligible and offerb is a domestic offer. apply a20 percent factor to offera. the evaluated', 16486:'price ofoffer a ishigher than offer b; selectb. item 4: low offer a is noneligible. since neither offer is adomestic', 16487:'offer,no evaluation factor applies; select a. item 5: low offer b is noneligible; apply a 20 percent factorto offer b.', 16488:'offer a is stillhigher than offer b; selectb. step 2: evaluate offer c against the tentative award patternforoffers a and', 16489:'b: subpart 25.5 evaluating foreign offerssupply contracts 25.5044 offers item low offer tentative award pattern from a and b c', 16490:'1 a do = $ 55,000 nel = $60,000 2 b el = $10,000 el = $13,000 3 b do', 16491:'= $12,000 do = $10,000 4 a nel = $24,000 nel = $22,000 5 b nel = $12,000 do =', 16492:'$14,000 total $113,000 $119,000 offer + 20 percent. on aline item basis, apply afactor to any noneligible offerif the other', 16493:'offer for that line item is domestic. for item 1, apply a factor to offer c because offer a is', 16494:'domestic and theacquisition was not coveredby the wto gpa. the evaluated price of offer c, item1, becomes $60,000 $50,000 plus', 16495:'20 percent. apply a factor tooffer b, item 5, because it is a noneligible product and offer c is domestic.', 16496:'the evaluatedprice of offerb is $12,000 $10,000 plus 20 percent. evaluate the remaining items withoutapplying afactor. step 3: the tentative', 16497:'unrestricted award pattern from offers a and bis lower than the evaluatedprice of offer c. award thecombinationof offers a and', 16498:'b. note that if offer c had not specified allornone award,award would be made onoffer c for line items 3', 16499:'and 4, totaling an award of $32,000. b example 2. offers item a b c 1 do = $50,000 el', 16500:'= $50,500 nel = $50,000 2 nel = $10,300 nel = $10,000 el = $10,200 3 el = $20,400 el', 16501:'= $21,000 nel = $20,200 4 do = $10,500 do = $10,300 do = $10,400 total $91,200 $91,800 $90,800 problem:', 16502:'the solicitation specifies award on a group basis. assume the buy american statute applies and the acquisition cannot be setaside', 16503:'for small businessconcerns. all offerors are large businesses. analysis: see 25.503c step 1: determine which ofthe offersare domestic see 25.503c1:', 16504:'domestic [percent] determination a $50,000 offer a1 + $10,500 offer a4 = $60,500 $60,500/$91,200 offer a total = 66.3% domestic', 16505:'b $10,300 offer b4 /$91,800 offer b total $ = 11.2% foreign c $10,400 offer c4 /$90,800 offer c total', 16506:'= 11.5% foreign step 2: determine whether foreignoffers areeligible or noneligibleoffers see 25.503c2: domestic + eligible [percent] determination 25.5044 federal', 16507:'acquisition regulation a n/a both domestic domestic b $50,500 offer b1 + $21,000 offer b3 + $10,300 offer b4= $81,800.', 16508:'$81,800 /$91,800 offer b total = 89.1% eligible c $10,200 offer c2 + $10,400 offer c4 = $20,600. $20,600/$90,800 offer', 16509:'c total = 22.7% noneligible step 3: determine whether to apply an evaluation factor see 25.503c3. the low offer offer', 16510:'c is a foreign offer. there is noeligible offer lower thanthe domestic offer. therefore, applythe factor tothe low offer. addition', 16511:'of the 20 percent factor use 30percent if offerais a small businessto offer c yields an evaluated price of $108,960', 16512:'$90,800 + 20 percent. award onoffer a see 25.502c4ii. notethat, ifoffer a were greater than offerb, an evaluationfactorwould not be', 16513:'applied, andaward would be on offer c see 25.502c3. c example 3. offers item a b c 1 do =', 16514:'$17,800 fo 55% = $16,000 fo 55% = $11,200 2 fo 55% = $9,000 fo 55% = $8,500 do =', 16515:'$10,200 3 fo 55% = $11,200 fo 55% = $12,000 fo 55% = $11,000 4 do = $10,000 do =', 16516:'$9,000 fo 55% = $6,400 total $48,000 $45,500 $38,800. key: do = domestic end product complies with the required domestic', 16517:'content. fo 55% = foreign end product with domestic content exceeding 55%. fo 55% = foreign end product with domestic', 16518:'content of 55% or less. problem: the solicitation specifies award on a group basis. assume only the buy american statute', 16519:'applies i.e., no trade agreements applyandthe acquisition cannot be setaside for smallbusinessconcerns. all offerors are large businesses. analysis: see 25.503d', 16520:'step 1: determine which ofthe offersare domestic see 25.503d1. domestic [percent] determination a $17,800 offer a1 + $10,000 offer a4', 16521:'= $27,800 $27,800/$48,000 offer a total = 58% domestic b $9,000 offer b4/$45,500 offer b total = 19.8% foreign c', 16522:'$10,200 offer c2/$38,800 offer c total = 26.3% foreign step 2: determine which offer, domestic orforeign, is thelow offer. if', 16523:'thelow offer is aforeign offer,apply the evaluationfactorsee 25.503d2. thelow offer offer c is a foreign offer. therefore,apply the factor to', 16524:'the low offer. addition of the 20 percent factoruse 30 percent if offer a is asmallbusiness to offer c yields', 16525:'an evaluated price of $46,560 $38,800 + 20 percent. offer c remains the low offer. step 3: determine ifthere is', 16526:'a foreign offer that could be treated asa domesticoffer see 25.106b2 and 25.503d2. amount of domestic content percent determination subpart', 16527:'25.5 evaluating foreign offerssupply contracts 25.5044 a n/a n/a b $9,000 offer b4/$45,500 offer b total $ = 19.8% is', 16528:'domestic and $16,000 offer b1 + $8,500 offer b2 + $12,000 offer b3 = $36,500 $36,500/$45,500 offer b total =', 16529:'80.2% can be treated as domestic 19.8% + 80.2% = 100% is domestic or can be treated as domestic can', 16530:'be treated as domestic. c $10,200 offer c2/$38,800 offer c total = 26.3% is domestic noneligible step 4: if there', 16531:'is a foreign offer thatcould be treated as a domestic offer, compare the evaluated priceof the low offer to the', 16532:'price ofthe offer treated asdomestic see 25.503d3. offer bcan be treated asa domestic offer $45,500. the evaluated price of the', 16533:'low offeroffer c is $46,560. award on offer b. this page intentionally left blank. 25.58 subpart 25.6 american recovery and', 16534:'reinvestment actbuy american statuteconstruction materials 25.6021 subpart 25.6 american recovery and reinvestment actbuy american statuteconstruction materials 25.600scope of subpart. this', 16535:'subpart implements section 1605 in division a of the american recovery and reinvestment act of 2009 pub. l. 1115 recovery', 16536:'act withregard to manufactured constructionmaterial and the 41 u.s.c. chapter 83, buy american referred to in this subpart as the', 16537:'buy american statute with regard to unmanufactured construction material. it applies to construction projects that use funds appropriated or otherwise', 16538:'provided by the recovery act. 25.601definitions. as used in this subpart domestic construction material means the following: 1 an unmanufactured', 16539:'construction material mined or produced in the united states. the buy american statute applies. 2 a manufactured construction material that', 16540:'is manufactured in the united states and, if the construction material consists wholly or predominantly of iron or steel, the', 16541:'iron or steel was produced in the united states. section 1605 of the recovery act applies. foreign construction material means', 16542:'a construction material other than a domestic construction material. manufactured construction material means any construction material that is not unmanufactured', 16543:'construction material. public building or public work means a building or work, the construction, prosecution, completion, or repair of which', 16544:'is carried on directly or indirectly by authority of, or with funds of, a federal agency to serve the interest', 16545:'of the general public regardless of whether title thereof is in a federal agency see 22.401. these buildings and works', 16546:'may include, without limitation, bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, pumping stations, heavy generators,', 16547:'railways, airports, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, and canals, and the construction, alteration, maintenance, or', 16548:'repair of such buildings and works. recovery act designated country means a world trade organization government procurement agreement country, a', 16549:'free trade agreement country,or aleast developed country. unmanufactured construction material means raw material brought to the construction site for incorporation', 16550:'into the building or work that has not been 1 processed into a specific form and shape; or 2 combined', 16551:'with otherraw materialto createa materialthat has different properties than the properties of the individual raw materials. 25.602 policy. 25.6021 section', 16552:'1605 of the recovery act. except as provided in 25.603 a none of the funds appropriated or otherwise made available', 16553:'by the recovery act may be used for a project for the construction, alteration, maintenance, or repair of a public', 16554:'building or public work unless the public building or public work is located in the united states and 1 all', 16555:'of the iron, steel, and manufactured goods used as construction material in the project are produced or manufactured in the', 16556:'united states. i all manufactured construction material must be manufactured in the united states. ii iron or steel components. a', 16557:'iron or steel components of construction material consisting wholly or predominantly of iron or steel must be produced in the', 16558:'united states. this does not restrict the origin of the elements of the iron or steel, but requires that all', 16559:'manufacturing processes of the iron or steel must take place in the united states, except metallurgical processes involving refinement of', 16560:'steel additives. b the requirement in paragraph a1iia of this section does not apply to iron or steel components or', 16561:'subcomponents in construction material that does not consist wholly or predominantly of iron or steel. iii all other components. there', 16562:'is no restriction on the origin or place of production or manufacture of components or subcomponents that do not consist', 16563:'of iron or steel. iv examples. a if a steel guardrail consists predominantly of steel, even though coated with aluminum,', 16564:'then the steel would be subject to the section 1605 restriction requiring that all stages of production of the steel', 16565:'occur in the united 25.6022 federal acquisition regulation states, in addition to the requirement to manufacture the guardrail in the', 16566:'united states. there would be no restrictions on the other components of the guardrail. b if a wooden window frame', 16567:'is delivered to the site as a single construction material, there is no restriction on any of the components, including', 16568:'the steel lock on the window frame; or 2 if tradeagreements apply, the manufactured construction materialshalleither comply with the requirements', 16569:'of paragraph a1 of this subsection, or be wholly the product of or be substantially transformed in a recovery act', 16570:'designated country; b manufactured materials purchased directly by the government and delivered to the site for incorporation into the project', 16571:'shall meet the same domestic source requirements as specified for manufactured construction material in paragraphs a1 and a2 of this', 16572:'section; and c a project may include several contracts, a single contract, or one or more line items on a', 16573:'contract. 25.6022 buy american statute except as provided in 25.603, use only unmanufactured construction material mined or produced in the', 16574:'united states, as required bythe buy american statute or, if trade agreements apply, unmanufactured construction material mined or produced in', 16575:'a designated country may also be used. 25.603exceptions. a 1whenoneofthefollowingexceptionsapplies,thecontractingofficermayallowthecontractortoincorporate foreign manufactured construction materials without regard to the restrictions of', 16576:'section 1605 of the recovery act or foreign unmanufactured construction material without regard to the restrictions of the buy american', 16577:'statute: i nonavailability. the head of the contracting activity may determine that a particular construction material is not mined, produced,', 16578:'or manufactured in theunited statesin sufficient and reasonably available commercial quantities of a satisfactoryquality. the determinations of nonavailability of the', 16579:'articles listed at 25.104a and the procedures at 25.103b 1 also apply if any of those articles are acquired as', 16580:'construction materials. ii unreasonable cost. the contractingofficer concludes that thecost of domestic construction material is unreasonable in accordance with 25.605.', 16581:'iii inconsistent with public interest. the head of the agency may determine that application of the restrictions of section 1605', 16582:'of the recovery act to a particular manufactured construction material, or the restrictions of the buy american statute to a', 16583:'particular unmanufactured construction material would be inconsistent with the public interest. 2 in addition, the head of the agency may', 16584:'determine that application of the buy american statute to a particular unmanufactured construction material would be impracticable. b determinations. when', 16585:'a determination is made, for any of the reasons stated in this section, that certain foreign construction materials may be', 16586:'used 1 the contractingofficer shall list the excepted materials in the contract; and 2 for determinations with regard to the', 16587:'inapplicability of section 1605 of the recovery act, unless the construction material has already been determined to be domestically nonavailable', 16588:'see list at 25.104, the head of the agency shall provide a notice to the federal register within three business', 16589:'days after the determination is made, with a copy to the administrator for federal procurement policy and to the recovery', 16590:'accountability and transparency board. the notice shall include i the title buy american exception under the american recovery and reinvestment', 16591:'act of 2009; ii the dollar value and brief description of the project; and iii a detailed justification as to', 16592:'why the restriction is being waived. c acquisitions under trade agreements. 1 for construction contracts with an estimated acquisition value', 16593:'of $6,708,000 or more, also see subpart 25.4.offers proposing the use of construction material from adesignated country shall receive equal', 16594:'considerationwith offers proposing theuse ofdomestic construction material. 2 for purposes of applying section 1605 of the recovery act to evaluation', 16595:'of manufactured construction material, designated countries do not include the caribbean basin countries. 25.604 preaward determination concerning theinapplicability of section', 16596:'1605of the recovery act or the buy american statute. a for any acquisition, an offeror may request from thecontracting officer', 16597:'a determination concerningthe inapplicability of section 1605 of the recovery act or the buy american statute for specifically identified construction', 16598:'materials. the time subpart 25.6 american recovery and reinvestment actbuy american statuteconstruction materials 25.606 for submitting the request is specified', 16599:'in the solicitation in paragraph b of either 52.22522 or 52.22524, whichever applies. the information and supporting data that must', 16600:'be included in the request are also specified in the solicitation in paragraphs c and d of either 52.22521 or', 16601:'52.22523, whichever applies. b before award,the contracting officer must evaluate all requests based on the information provided and may supplement', 16602:'this information with other readily available information. c determination based on unreasonable cost of domestic construction material. 1 manufactured construction', 16603:'material.the contracting officer must compare the offeredprice of thecontract using foreign manufactured construction material i.e., any construction material not manufactured', 16604:'in the united states, or construction material consisting predominantly of iron or steel and the iron or steel is not', 16605:'produced in the united states to the estimated price if all domestic manufactured construction material were used. if use of', 16606:'domestic manufactured constructionmaterial would increase the overall offeredprice of the contract by more than25 percent, then the contracting officer shall', 16607:'determine that the cost of thedomestic manufactured construction material isunreasonable 2 unmanufactured construction material. the contractingofficer mustcompare the cost ofeach', 16608:'foreign unmanufactured construction material to the cost of domestic unmanufactured construction material. if the cost of the domestic unmanufactured construction', 16609:'material exceeds the cost of the foreign unmanufactured construction material by more than 20 percent, then thecontracting officer shall determinethat', 16610:'the costof the domestic unmanufacturedconstruction material is unreasonable. 25.605 evaluating offers of foreign construction material. a if the contracting officerhas', 16611:'determined that an exception applies because the cost ofcertain domestic construction material is unreasonable, in accordance with section 25.604,then the', 16612:'contractingofficer shall applyevaluation factors to the offer incorporating the use of such foreign constructionmaterial as follows: 1 use an evaluation', 16613:'factor of25 percent, applied to the total offeredprice of thecontract, if foreign manufactured constructionmaterial is incorporated in the offer based', 16614:'onan exception for unreasonablecost of comparable domestic constructionmaterial requested by the offeror. 2 in addition, use an evaluation factor of', 16615:'20 percent applied to the cost of foreign unmanufactured construction material incorporated inthe offer based on an exception for unreasonable', 16616:'cost of comparable domestic unmanufactured constructionmaterial requested by the offeror. 3 total evaluated price = offered price + .25 x', 16617:'offered price, if a1 applies + .20 x cost offoreign unmanufactured construction material, if a2 applies. b if the solicitation', 16618:'specifies award on the basis of factors in addition to cost or price, apply the evaluation factors as specified in', 16619:'paragraph a of this section and use the evaluated price in determining the offer that represents the best value to', 16620:'the government c unless paragraphbapplies, if two or moreoffers areequal in price, the contracting officer must give preference to anoffer', 16621:'that does not include foreign constructionmaterial exceptedat the request of the offeror onthe basis of unreasonable cost. d offerorsalsomay submit', 16622:'alternate offers based onuse ofequivalent domestic construction material to avoidpossible rejection of the entire offer if the government determines that', 16623:'an exception permitting use ofa particular foreign construction material does not apply. e if the contracting officerawards a contract to', 16624:'an offeror that proposed foreignconstruction material notlisted in the applicable clause in the solicitation paragraph b3 of 52.22521, or paragraph', 16625:'b3 of 52.22523, the contracting officer must add the excepted materials to the list in the contract clause. 25.606postaward determinations.', 16626:'a if a contractor requests a determination regarding the inapplicability of section 1605 of the recovery act or the buy', 16627:'american statute after contract award, the contractor must explain why it could not request the determination before contract award orwhy', 16628:'the need for such determination otherwisewas not reasonablyforeseeable. ifthe contracting officer concludes that the contractor should have madethe request before', 16629:'contractaward, the contracting officermay denythe request. b the contractingofficer mustbase evaluation of any request for a determination regarding theinapplicability of', 16630:'section 1605 of the recovery act or the buy american statute made after contract award on information required by paragraphs', 16631:'c and d of the applicable clause at 52.22521 or 52.22523 and/or other readily available information. c if a determination,', 16632:'under 25.603a, is made after contract award that an exception to section 1605 of the recovery act or to the', 16633:'buy american statute applies,the contracting officer must negotiate adequateconsideration and modify the contract federal acquisition regulation to allow use of', 16634:'the foreign construction material. when the basis for the exception is the unreasonable cost of a domestic constructionmaterial, adequate considerationis', 16635:'at least thedifferentialestablished in 25.605a. 25.607noncompliance. the contractingofficer must a review allegations of violations of section 1605 of the recovery', 16636:'act or buy american statute; b unless fraud is suspected, notify the contractor of the apparent unauthorized use of foreign', 16637:'construction material and request a reply,to include proposed corrective action; and c if the review reveals that a contractor or', 16638:'subcontractor has used foreign construction material without authorization, take appropriate action, including one or more of the following: 1 process', 16639:'a determination concerning the inapplicability of section 1605 of the recovery act or the buy american statute in accordance with', 16640:'25.606. 2 consider requiring the removal and replacement of the unauthorized foreign construction material. 3 if removal and replacement of', 16641:'foreign construction material incorporated in a building or work would be impracticable,cause unduedelay, or otherwise be detrimental to the interests', 16642:'ofthe government, thecontracting officer may determine in writing that the foreign construction material need not be removed and replaced. a', 16643:'determination to retain foreign construction material does not constitute a determination that an exception to section 1605 of the recovery', 16644:'act or thebuy american statute applies, and this should be stated in the determination. further, a determinationto retain foreign constructionmaterial', 16645:'does notaffect the government’s rightto suspend ordebar a contractor, subcontractor, orsupplier for violation of section 1605 of the recovery act', 16646:'or the buy american statute, or to exercise other contractual rights and remedies, such as reducing the contract price or', 16647:'terminating the contract for default. 4 if the noncompliance is sufficiently serious, considerexercisingappropriate contractual remedies, suchas terminating the contract for', 16648:'default. also consider preparing and forwarding a report to the agency suspending or debarring official in accordance with subpart 9.4.', 16649:'if the noncompliance appears to be fraudulent, refer the matter to other appropriate agency officials,such as the agency’s inspector generalor', 16650:'the officerresponsibleforcriminal investigation. subpart 25.7 prohibited sources 25.7021 subpart 25.7 prohibited sources 25.700scope of subpart. this subpart implements a economic', 16651:'sanctions administered by the office of foreign assets control ofac in the departmentof the treasury prohibiting transactions involving certain countries,', 16652:'entities, and individuals; b the sudan accountability and divestmentactof 2007 pub. l. 110174 50 u.s.c. 1701 note; c the iran', 16653:'sanctions act of 1996 iran sanctions act pub. l. 104172; 50 u.s.c. 1701 note, including amendments by the iran freedomsupport', 16654:'act pub. l. 109293, section102 ofthe comprehensiveiran sanctions, accountability, and divestment act of 2010 pub. l. 111195, and titles ii', 16655:'and iii of the iranthreatreductionand syria human rightsactof 2012pub. l. 112158;and d prohibition against contracting with entities that export sensitive', 16656:'technologies to iran 22 u.s.c. 8515. 25.701 restrictions administered by thedepartmentof thetreasury on acquisitions of supplies or services from prohibited', 16657:'sources. a except as authorizedby ofac, agencies and their contractors and subcontractors must not acquire any supplies or services if', 16658:'any proclamation,executive order, orstatuteadministered by ofac, or if ofac’s implementingregulations at 31 cfr chapterv, would prohibit such atransactionby aperson subject', 16659:'tothe jurisdiction of the united states. b except as authorized byofac, most transactions involving cuba, iran,and sudan are prohibited, as', 16660:'are most imports from burma or north korea into the united states or its outlying areas. in addition, lists of', 16661:'entities and individuals subject to economic sanctions are included in ofac’s list of specially designated nationals and blocked persons at', 16662:'https:// ofac.treasury.gov/speciallydesignatednationalsandblockedpersonslistsdnhumanreadablelists. more information about these restrictions, aswell as updates, is available in ofac’s regulations at 31 cfr chaptervand/or on', 16663:'ofac’s website at https://ofac.treasury.gov/. c refer questions concerning the restrictions in paragraphs a or b of this section to the', 16664:'department of thetreasury office offoreignassets control washington, dc 20220 telephone 2026222490. 25.702 prohibitionon contracting with entities that conduct restricted business', 16665:'operations in sudan. 25.7021 definitions. as used in this section appropriate congressional committees means 1 the committee on banking, housing,', 16666:'and urban affairs, the committee on foreign relations, and theselect committee on intelligence of the senate; and 2 the committee', 16667:'on financial services, the committee on foreign relations, and the permanent select committee on intelligence of the house of representatives.', 16668:'business operations means engaging in commerce in any form, including by acquiring, developing, maintaining, owning, selling, possessing, leasing, or operatingequipment,', 16669:'facilities, personnel, products,services, personal property, real property, or any other apparatus of business or commerce. marginalized populations of sudan means', 16670:'1 adversely affected groups in regions authorized to receive assistance undersection 8c of the darfurpeace and accountability act pub. l.', 16671:'109344 50 u.s.c. 1701 note; and 2 marginalized areas innorthern sudan described insection 49 of suchact. restricted business operations 1', 16672:'means, except as provided in paragraph 2 of this definition, business operations in sudan that include power production activities, mineral', 16673:'extraction activities, oilrelated activities, or the production of military equipment, as those terms are defined in the sudan accountability anddivestment', 16674:'act of 2007 pub. l. 110174. 2 does not include business operations that the person as that term is defined', 16675:'in section 2 of the sudan accountability and divestment act of 2007 conducting the business can demonstrate i are conducted', 16676:'under contract directly and exclusively with the regional government of southern sudan; iiare conducted pursuant tospecific authorization from the office', 16677:'offoreign assets control inthe department of thetreasury, or areexpressly exempted under federal law from therequirementto beconductedunder suchauthorization; iii consist ofproviding', 16678:'goods orservices to marginalized populations of sudan; 25.7022 federal acquisition regulation iv consist of providing goods or services to an', 16679:'internationally recognized peacekeeping force or humanitarian organization; v consist of providing goods or services that are used only to promote', 16680:'health or education; or vi have been voluntarily suspended. 25.7022 certification. asrequired by the sudanaccountability and divestment act of 2007', 16681:'pub. l. 110174, each offeror must certify that it does not conduct restricted business operations in sudan. 25.7023 remedies. upon', 16682:'the determination of a false certification under subsection 25.7022 a thecontracting officer may terminate the contract; bthesuspendingofficialmaysuspendthecontractorinaccordancewiththeproceduresin subpart 9.4; and', 16683:'c thedebarringofficial may debar thecontractor for aperiod not to exceed 3 years in accordance with the procedures in subpart 9.4.', 16684:'25.7024waiver. a the president may waive the requirement of subsection 25.7022 on a casebycase basis if the president determines and', 16685:'certifies in writing to the appropriate congressional committees that it is in the national interest to do so. b an', 16686:'agency seekingwaiver of therequirementshallsubmit therequest to the administrator of theofficeof federal procurement policy ofpp, allowing sufficient time for review and', 16687:'approval. upon receipt ofthe waiver request,ofpp shall consult with the president’s national security council, office of african affairs, and the', 16688:'departmentof state sudan office and sanctions officeto assessforeign policy aspects of making anational interest recommendation. c agencies may request a', 16689:'waiver onan individual or class basis; however, waiversare not indefinite and can be cancelled if warranted. 1 a class waiver', 16690:'may be requested only when the class of supplies is not available from any other source and it is in', 16691:'the national interest. 2 prior to submitting the waiver request, the request must be reviewed and cleared by the agency', 16692:'head. 3 all waiver requests must include the following information: iagency name, complete mailing address,and point of contact name, telephone', 16693:'number, and email address; iiofferor’s name, complete mailing address,and point of contact name, telephone number, and email address; iii description/nature', 16694:'of product or service; iv the total cost and length of the contract; v justification,with market research demonstratingthat no other', 16695:'offeror can provide the product or service and stating why the product or service must be procured from thisofferor,as well', 16696:'as why it is in the national interest for the president to waive the prohibition oncontracting withthis offeror that conducts', 16697:'restricted business operations in sudan, including consideration of foreign policy aspects identified in consultations pursuant to 25.7024b; vi documentation regarding', 16698:'the offeror’s past performance and integrity see thecontractor performance assessment reporting system cparsincluding the federal awardeeperformance information and integrity system', 16699:'at https://www.cpars.gov and any other relevant information; vii information regarding the offeror’srelationship orconnection withother firms thatconduct prohibited business operations in', 16700:'sudan; and viii any humanitarian efforts engagedin by the offeror, the human rights impact of doingbusinesswith the offeror for which', 16701:'the waiver isrequested, and the extent of the offeror’s business operations in sudan. d the consultation in 25.7024b and the', 16702:'information in 25.7024c3 will be considered in determining whether to recommend that the president waive the requirement of subsection 25.7022.', 16703:'in accordance with section 6c of the sudan accountability and divestment act of 2007, ofpp will semiannually submit a report', 16704:'to congress, on april 15 th and october 15 th, on the waivers granted. 25.703 prohibitionon contracting with entities that', 16705:'engage in certain activitiesor transactions relatingto iran. 25.7031 definitions. as used in this section subpart 25.7 prohibited sources 25.7033 person', 16706:'1 means i a natural person; iiacorporation, business association, partnership, society, trust, financialinstitution, insurer, underwriter, guarantor,andany otherbusiness organization, any other', 16707:'nongovernmentalentity, organization,or group, and any governmental entity operating as a business enterprise; and iii any successor to any entity described', 16708:'in paragraph 1ii of this definition; and 2 does not include a government or governmental entity that is not operating', 16709:'as a business enterprise. sensitive technology 1 means hardware, software, telecommunications equipment, or any other technology that is to be', 16710:'used specifically ito restrict the freeflow of unbiased information in iran; or iito disrupt, monitor, or otherwise restrict speech of', 16711:'the peopleof iran; and 2 does not include information or informational materials the export of which the president does not', 16712:'have the authorityto regulate or prohibit pursuant to section203b3 of the internationalemergency economic powers act 50 u.s.c. 1702b3. 25.7032 iran', 16713:'sanctions act. a certification. 1 certification relating to activities described in section 5 of the iran sanctions act. as required', 16714:'by section 6b1a of the iran sanctions act 50 u.s.c. 1701 note, unless an exception applies in accordance with paragraph', 16715:'c of this subsection, or a waiver is granted in accordance with 25.7034, each offerormust certify that the offeror,andany person', 16716:'owned or controlledby the offeror, does not engagein any activityforwhich sanctionsmay be imposed under section 5 of the iran sanctions', 16717:'act. such activities, which are described in detail in section 5 of the iran sanctions act, relate to the energy', 16718:'sectorof iran and development by iran of weapons ofmass destructionor other military capabilities. 2 certification relating to transactions with irans', 16719:'revolutionary guard corps. as required by section 6b1b of the iran sanctions act 50 u.s.c. 1701 note, unless an exception', 16720:'applies in accordance with paragraph c of this subsection, or a waiver is granted in accordance with 25.7034, each offeror', 16721:'mustcertifythat the offeror, and any person owned or controlled bythe offeror, does not knowingly engage in any significanttransactioni.e., a transaction', 16722:'that exceeds $10,000, with irans revolutionary guard corps oranyof its officials, agents, or affiliates, the property and interestsin property of', 16723:'which are blocked pursuant tothe international emergencyeconomic powers act 50 u.s.c. 1701 et seq.see ofac’s specially designated nationals and blocked', 16724:'persons list at https://www.treasury.gov/resourcecenter/sanctions/sdnlist/ pages/default.aspx. b remedies. upon the determination of a false certification under paragraph a of this section,', 16725:'the agency shall take one or more of the following actions: 1 the contractingofficer terminates the contractin accordance with procedures', 16726:'in part 49, or for commercial products and commercial services, see 12.403. 2 the suspending officialsuspends the contractor inaccordance withthe', 16727:'procedures in subpart 9.4. 3 the debarring official debars thecontractor for aperiod of at least two years in accordance with', 16728:'the procedures in subpart 9.4. c exception for trade agreements. the certification requirements of paragraph a of this subsection do', 16729:'not apply if the acquisition issubject to trade agreements and the offeror certifiesthat all theoffered products are designated countryend products', 16730:'or designated country construction material see subpart 25.4. 25.7033prohibition on contractingwith entities that export sensitive technologyto iran. a the head', 16731:'of an executive agency may not enter into or extend a contract for the procurement of goods or services with', 16732:'a person that exports certain sensitive technology to iran, as determined by the president, and has an active exclusion in', 16733:'the system for award management at http://www.sam.gov 22 u.s.c. 8515. b each offeror mustrepresentthat it doesnot export anysensitivetechnology to thegovernment', 16734:'of iran oranyentities or individuals owned or controlled by, or actingon behalfor atthe direction of, the government of iran. c', 16735:'exception for trade agreements. the representation requirement of paragraph b of this subsection does not apply if theacquisition is subjectto', 16736:'trade agreements and the offeror certifies that allthe offered productsare designated country end products or designated country construction material see', 16737:'subpart 25.4. 25.7034 federal acquisition regulation 25.7034waiver. a an agency or contractor seeking a waiver of the requirements of 25.7032', 16738:'or 25.7033, consistent with section 6b 5 of the iran sanctions act or 22 u.s.c. 8551b,respectively, and thepresidential memorandum of', 16739:'september 23, 2010 75 fr 67025, shall submit the request to the office of federal procurementpolicy, allowing sufficienttime for reviewand', 16740:'approval. b agencies may request a waiver on an individual or class basis; however,waivers are not indefinite and can be', 16741:'cancelled, if warranted. 1 a class waiver may be requested only when the class of supplies or equipment is not', 16742:'available from any other source and it is in the national interest. 2 prior to submitting the waiver request, the', 16743:'request must be reviewed and cleared by the agency head. c in general, all waiver requests should include the following', 16744:'information: 1 agency name, complete mailing address, and point ofcontactname,telephone number, and email address. 2 offeror’s name, completemailing address, and', 16745:'point of contactname, telephone number,and email address. 3 description/nature of product or service. 4 the total cost and length of', 16746:'the contract. 5 justification,with market research demonstratingthat no other offeror can provide the product or service and stating why the', 16747:'product or service must be procured from this offeror. iif the offeror exports sensitive technology to the governmentof iran or', 16748:'any entities or individuals owned or controlled by, or actingon behalfor atthe direction of, the government of iran, provide rationale', 16749:'why it is in the national interest for the president towaive the prohibitionon contracting with this offeror, as required by', 16750:'22 u.s.c. 8551b. iiif the offeror conducts activities for which sanctions may beimposedunder section5 of the iran sanctions act or', 16751:'engages in any transaction that exceeds the threshold at 25.7032a2 with iran’s revolutionary guard corps oranyof itsofficials, agents, or affiliates,', 16752:'thepropertyand interests in property of which are blocked pursuantto theinternational emergencyeconomic powers act, provide rationale why it isessential tothe national', 16753:'security interests of the unitedstates for thepresident to waive the prohibition on contracting with this offeror, as required by section', 16754:'6b5 ofthe iran sanctions act. 6 documentation regarding theofferor’s past performance and integrity see thecontractor performance assessment reporting system cparsandthe', 16755:'federalawardee performance information and integritysystemat https:// www.cpars.gov, and any other relevant information. 7 information regardingthe offeror’s relationship or connectionwith other', 16756:'firms that iexport sensitive technology tothe governmentof iran or any entities or individuals owned or controlled by, or acting on', 16757:'behalf or at the direction of, the government of iran; ii conduct activities for which sanctions may be imposed under', 16758:'section 5 of the iran sanctions act; or iii conduct any transaction that exceeds the threshold at 25.7032a2 withiran’s revolutionary', 16759:'guard corps or any of its officials, agents, oraffiliates, the property and interests in property of whichare blocked pursuant to', 16760:'the international emergencyeconomic powers act. 8 describe i the sensitive technology and the entity or individual to which it was', 16761:'exported i.e., the government of iran or an entity or individual owned or controlledby, oracting on behalf or at the', 16762:'direction of, thegovernment of iran; iithe activities inwhich the offeror is engagedforwhich sanctionsmay be imposed undersection 5 of the iran', 16763:'sanctions act; or iii the transactions that exceed the threshold at 25.7032a2 with iran’s revolutionary guard corps or anyof itsofficials,', 16764:'agents, or affiliates, thepropertyand interests in property of which are blocked pursuantto theinternational emergencyeconomic powers act. subpart 25.8 other international', 16765:'agreements and coordination 25.802 subpart 25.8 other international agreements and coordination 25.801general. treaties and agreements between theunited statesandforeign governments affectthe', 16766:'evaluationof offers from foreign entities and the performance of contracts in foreign countries. 25.802 procedures. a when placing contracts with', 16767:'contractors located outside the united states, for performance outside the united states, contracting officers must 1 determine the existence and', 16768:'applicability of any international agreements and ensure compliance with these agreements; and 2 conduct the necessary advance acquisition planning and', 16769:'coordination between the appropriate u.s. executive agencies and foreign interests as required by these agreements. b the department of statepublishes', 16770:'many international agreements inthe unitedstates treaties and other international agreements series. copiesof this publication normallyare available in overseas legal officesandu.s.', 16771:'diplomatic missions. c contracting officers mustaward all contracts with taiwanese firms ororganizations through the american institute of taiwan ait. ait', 16772:'isunder contract tothe department of state. this page intentionally left blank. 25.82 subpart 25.9 customs and duties 25.903 subpart 25.9', 16773:'customs and duties 25.900scope of subpart. this subpart provides policies and procedures for exempting from import duties certain supplies purchased', 16774:'under government contracts. 25.901 policy. united states laws impose duties on foreign supplies imported into the customs territory of the', 16775:'united states. certain exemptions from these duties are available to government agencies. agencies must use these exemptions when the anticipated', 16776:'savings to appropriated funds will outweigh the administrative costs associated with processing required documentation. 25.902 procedures. for regulations governing importations', 16777:'and duties, see the customs regulations issued by the u.s. customs service, department of thetreasury 19 cfrchapter 1. except as', 16778:'provided elsewherein thecustoms regulations see 19 cfr 10.100, all shipments of imported supplies purchased under government contracts are subject to', 16779:'the usual customs entry and examination requirements. unless the agency obtains an exemption see 25.903, those shipments are also subject', 16780:'to duty. 25.903exempted supplies. a subchapters viii andxof chapter 98 ofthe harmonized tariff schedule of the united states 19 u.s.c.', 16781:'1202 list supplies for which exemptions from duty may be obtained when imported into the customs territory of the united', 16782:'states under a government contract. for certain of these supplies, the contracting agency must certify to the commissioner of customs', 16783:'that they areforthe purpose statedin the harmonized tariff schedule see19 cfr 10.102104, 10.114, and 10.121 and 15 cfr part 301', 16784:'for requirements and formats. b supplies excluding equipment for governmentoperated vessels or aircraft may be withdrawn from any customs bonded', 16785:'warehouse, from continuous customs custody elsewhere than in a bonded warehouse, or from a foreigntrade zone, free of duty and', 16786:'internal revenue tax as provided in 19 u.s.c. 1309 and 1317. the contracting activity must cite this authority on the', 16787:'appropriate customs form when making purchases see 19 cfr 10.59 10.65. this page intentionally left blank. 25.92 subpart 25.10 additional', 16788:'foreign acquisition regulations 25.1003 subpart 25.10 additional foreign acquisition regulations 25.1001 waiverof right to examination of records. a policy. the', 16789:'clause at 52.2152, audit and recordsnegotiation, prescribed at 15.209b, and paragraph d of the clause at 52.2125, contract terms and', 16790:'conditionsrequiredto implementstatutes or executive orderscommercial products and commercial services, prescribed at 12.301b4, implement 10 u.s.c. 3841 and 41 u.s.c. 4706.', 16791:'the basic clauses authorize examination of records by the comptroller general. 1 insert the appropriate basic clause, whenever possible, in', 16792:'negotiated contracts with foreign contractors. 2 the contractingofficer may use 52.2152 with its alternate iii or 52.2125 with its alternate', 16793:'i after iexhausting all reasonable efforts to include the basic clause; iiconsideringfactors such asalternate sources ofsupply, additional cost, andtime of', 16794:'delivery; and iii the head of the agency has executed a determination and findings in accordance with paragraph b of', 16795:'this section,with the concurrence of the comptroller general. however,concurrence of the comptroller general is notrequired if the contractor is a', 16796:'foreign government or agency thereof or is precluded by the laws of the country involved from making its records available', 16797:'for examination. b determination and findings. the determination and findings must 1 identify the contract and its purpose, and identify', 16798:'if the contract is with a foreign contractor or with a foreign government or an agency of a foreign government;', 16799:'2 describe the efforts toinclude the basic clause; 3 state the reasons for the contractor’s refusal to includethe basic clause;', 16800:'4 describe the price and availability of the supplies or services from the united states and other sources; and 5', 16801:'determine that it will best serve the interest of the united states to use the appropriate alternate clause in paragraph', 16802:'a2 of this section. 25.1002 use of foreign currency. a unless an international agreement or the wto gpa see 25.408a4', 16803:'requires aspecific currency, contracting officers must determine whether solicitations for contracts to be entered into and performed outside the united', 16804:'states will require submission of offersin u.s. currency ora specifiedforeign currency. in unusualcircumstances, the contracting officermay permit submission of offers', 16805:'in other than a specified currency. b to ensure afair evaluation of offers, solicitations generallyshouldrequire all offers to be pricedin', 16806:'thesame currency. however, if the solicitation permits submissionof offers in other than a specified currency, the contracting officermust convertthe offered', 16807:'prices to u.s. currency for evaluationpurposes. the contracting officer must use the current market exchange rate froma commonly used source', 16808:'ineffect as follows: 1 for acquisitions conducted using sealed bidding procedures, on the date of bid opening. 2 for acquisitions', 16809:'conducted using negotiation procedures ion the date specified for receiptof offers, if award is based on initial offers;otherwise ii on', 16810:'the date specified for receipt of final proposal revisions. c if a contract ispriced in foreign currency, the agency must', 16811:'ensure thatadequate funds areavailableto cover currency fluctuations toavoid a violation of theantideficiency act 31 u.s.c. 1341, 1342, 15111519. 25.1003 tax', 16812:'on certain foreign procurements. see 29.204 for theimpositionof the tax on certain foreignprocurementspursuant to the jameszadroga 9/11health and compensation act', 16813:'of 2010 pub. l. 111347, 26 u.s.c. 5000 c, and its implementing regulations at 26 cfr 1.5000c1 through 1.5000c7. this', 16814:'page intentionally left blank. 25.102 subpart 25.11 solicitation provisions and contract clauses 25.1101 subpart 25.11 solicitation provisions and contract clauses', 16815:'25.1101 acquisition of supplies. the following provisions and clauses apply to the acquisition of supplies and the acquisition of services', 16816:'involving the furnishing of supplies. a 1 i insert the clause at 52.2251, buy americansupplies, in solicitations and contracts with', 16817:'a value exceeding the micropurchase threshold but not exceeding $50,000; and in solicitations and contracts with a value exceeding $50,000,', 16818:'if none of theclauses prescribed in paragraphs b and c of this section apply, except if a the solicitation is', 16819:'restricted to domestic end products in accordance with subpart 6.3; b the acquisition is for supplies for use within the', 16820:'united states and an exception to the buy american statute applies e.g., nonavailability, public interest, or informationtechnology that is a', 16821:'commercial product; or c the acquisition is for supplies for use outside the united states. iithe contracting officer shall use', 16822:'theclause with itsalternate ito reflect the domestic content threshold that will apply to the entire period of performance, when the', 16823:'senior procurement executive allows for application of an alternate domestic content test for the contract in accordance with 25.101d. for', 16824:'contracts that the contractingofficer estimates will beawarded in calendaryear 2022 or 2023, the contractingofficer shall insert “60” in paragraph 1iia', 16825:'of the definition of “domesticend product.” for contractsthat thecontracting officer estimates will be awarded incalendar year 2024,2025, 2026, 2027, or', 16826:'2028, the contracting officer shall insert “65”. for contracts that the contracting officer estimateswill be awarded after calendar year 2028', 16827:'the contracting officer shall insert “75”. 2 insert the provision at 52.2252, buy american certificate, in solicitations containing the clause', 16828:'at 52.2251. b 1 i insert the clause at 52.2253, buy americanfreetradeagreementsisraeli trade act, in solicitations and contracts if a', 16829:'the acquisition is for supplies, or for services involving the furnishing of supplies, for use within the united states, and', 16830:'the acquisition value is $50,000; or more, but is less than $174,000; b the acquisition is not for information technology', 16831:'that is a commercial product, using fiscal year 2004 or subsequent fiscal year funds; and c no exception in 25.401applies.', 16832:'foracquisitions of agencies not subjectto theisraeli trade act see 25.406, see agency regulations. ii if the acquisition value is $50,000', 16833:'or more but is less than $100,000, use the clause with its alternate ii. iii if the acquisition value is', 16834:'$100,000 or more but is less than $102,280, use the clause with its alternate iii. iv the contracting officer shall', 16835:'use the clause with its alternateiv to reflect the domestic content thresholdthat will apply to the entire period of performance,', 16836:'when the senior procurement executive allows for application of an alternate domestic content test for the contract in accordance with', 16837:'25.102d. for contracts that the contractingofficer estimates will beawarded in calendaryear 2022 or 2023, the contractingofficer shall insert “60” in', 16838:'paragraph 1iia of the definition of “domesticend product.” for contractsthat thecontracting officer estimates will be awarded incalendar year 2024,2025, 2026,', 16839:'2027, or 2028, the contracting officer shall insert “65”. for contracts that the contracting officer estimateswill be awarded after calendar', 16840:'year 2028 the contracting officer shall insert “75”. 2 i insert the provision at 52.2254,buyamericanfreetradeagreementsisraelitradeactcertificate,in solicitations containing the clause at', 16841:'52.2253. ii if the acquisition value is $50,000 or more but is less than $100,000, use the provision with its', 16842:'alternate ii. iii if the acquisition value is $100,000 or more, but is less than $102,280, use the provision with', 16843:'its alternate iii. c 1 insert the clause at 52.2255,tradeagreements,insolicitationsandcontractsvaluedat$174,000ormore,if theacquisitioniscoveredbythewtogpasee subpart 25.4 and the agency has determined that the', 16844:'restrictions of the buy american statute are not applicable to u.s.made end products. if the agency has not made such', 16845:'a determination, the contracting officermust followagency procedures. 2 insert the provision at 52.2256,tradeagreements certificate, in solicitations containing the clause at', 16846:'52.2255. d insert the provision at 52.2257,waiver of buyamericanstatuteforcivil aircraft and related articles, in solicitations for civil aircraft and related', 16847:'articles see 25.407, if the acquisition value is less than $174,000. e insert the clause at 52.2258, dutyfree entry,in solicitations', 16848:'and contracts for supplies that may be imported into the united states and for which dutyfree entry may be obtained', 16849:'in accordance with 25.903a, if the value of the acquisition 1 exceeds the simplified acquisition threshold; or 25.1102 federal acquisition', 16850:'regulation 2 does not exceed the simplified acquisition threshold, but the savings from waiving the duty is anticipated to bemore', 16851:'thanthe administrative cost of waiving the duty. when used for acquisitions that donot exceed the simplified acquisition threshold, the contractingofficer', 16852:'may modify paragraphs c1 and j2of the clause toreduce the dollar figure. f insert the provision at 52.22518, place of', 16853:'manufacture, in solicitations that are predominantly for the acquisition of manufactured end products i.e., the estimated value of the manufactured', 16854:'end products exceeds the estimated value of other items to be acquired as a result of the solicitation. 25.1102 acquisition', 16855:'of construction. when using funds other than those appropriated under the american recovery and reinvestment act of 2009 pub. l.', 16856:'1115 recovery act,follow the prescriptions in paragraphs a through d ofthissection. otherwise, follow the prescription in paragraph e. a insert', 16857:'the clause at 52.2259, buy americanconstruction materials, in solicitations and contracts for construction that is performed in the united states', 16858:'valued at less than $6,708,000. 1 list in paragraph b2 of the clause all foreign construction material excepted from the', 16859:'requirements of the buy american statute. 2 if the head of the agency determines that a higher percentage is appropriate,', 16860:'substitute the higher evaluation percentage in paragraph b3i of the clause. 3 the contractingofficer shall usethe clause with its alternatei', 16861:'to reflect the domestic contentthreshold that will apply to the entire period of performance, when the senior procurement executive allows', 16862:'for application of an alternate domestic content test for the contract in accordance with 25.201c. for contractsthat thecontracting officer estimates', 16863:'will beawarded in calendaryear 2022 or 2023, the contractingofficer shall insert “60” in paragraph 1iia of the definition of “domestic', 16864:'construction material.” for contracts that the contracting officer estimateswill be awarded in calendar year 2024, 2025, 2026, 2027, or 2028,', 16865:'the contracting officershallinsert “65”. for contracts thatthe contracting officerestimates will be awarded after calendar year 2028 the contracting officer shall', 16866:'insert “75”. b 1 insert the provision at 52.22510, notice of buy american requirementconstruction materials, in solicitations containing the clause', 16867:'at 52.2259. 2 if insufficient timeis available toprocess a determination regarding the inapplicability of thebuy american statute beforereceipt of offers,', 16868:'use the provision with itsalternate i. c insert the clause at 52.22511, buy americanconstruction materials under trade agreements, in solicitations', 16869:'and contracts for construction that is performed in the united states valued at $6,708,000 or more. 1 list in paragraph', 16870:'b3 of the clause all foreign construction material excepted from the requirements of the buy american statute, other than designated', 16871:'country construction material. 2 if the head of the agency determines that a higher percentage is appropriate, substitute the higher', 16872:'evaluation percentage in paragraph b4i of the clause. 3 for acquisitions valued at $6,708,000 or more, but less than $13,296,489,', 16873:'use the clause with its alternate i. list in paragraph b3 of the clause all foreign construction material excepted from', 16874:'the requirements of the buy american statute, unless the excepted foreign construction material is from a designated country other than', 16875:'bahrain, mexico, and oman. 4 the contractingofficer shall usethe clause with its alternateii to reflect the domesticcontent threshold that will', 16876:'apply to the entire period of performance, when the senior procurement executive allows for application of an alternate domestic content', 16877:'test for the contract in accordance with 25.201c. for contractsthat thecontracting officer estimates will beawarded in calendaryear 2022 or 2023,', 16878:'the contractingofficer shall insert “60” in paragraph 1iia of the definition of “domestic construction material.” for contracts that the contracting', 16879:'officer estimateswill be awarded in calendar year 2024, 2025, 2026, 2027, or 2028, the contracting officershallinsert “65”. for contracts thatthe', 16880:'contracting officerestimates will be awarded after calendar year 2028 the contracting officer shall insert “75”. d 1 insert the provision', 16881:'at 52.22512, notice of buy american requirementconstruction materials under trade agreements, in solicitations containing the clause at 52.22511. 2 if', 16882:'insufficient timeis available toprocess a determination regarding the inapplicability of thebuy american statute beforereceipt of offers, use the provision with', 16883:'itsalternate i. 3 for acquisitions valued at $6,708,000 or more, but less than $13,296,489, use the provision with its alternate', 16884:'ii. e 1 when using funds appropriated under the recovery act for construction, use provisions and clauses 52.22521, 52.22522, 52.22523,', 16885:'or 52.22524 with appropriate alternates in lieu of the provisions and clauses 52.2259, 52.22510, 52.22511, or 52.22512 with appropriate alternates,', 16886:'respectively,that would be applicable asprescribed in paragraphs a through d of this section if recovery act funds were not used.', 16887:'subpart 25.11 solicitation provisions and contract clauses 25.1103 2 if these recovery act provisions and clauses are only applicable to', 16888:'a project consisting of certain line items in the contract, identifyin theschedule the line items to which the provisions and', 16889:'clauses apply. 3 when using clause 52.22523, list foreign construction material in paragraph b3 of the clause as follows: i', 16890:'basic clause. list all foreign construction materials excepted from the buy american statute or section 1605 of the recovery act,', 16891:'other than manufactured construction material from a recovery act designated country or unmanufactured constructionmaterial froma designated country. ii alternate i.', 16892:'list in paragraph b3 of the clause all foreign construction material excepted from the buy american statute or section 1605', 16893:'of the recovery act, other than a manufactured construction material from a recovery act designated country other than bahrain, mexico,', 16894:'or oman; or b unmanufactured construction material from a designated country other than bahrain, mexico, or oman. 25.1103 other provisionsand', 16895:'clauses. a restrictions on certain foreign purchases. insert the clause at 52.22513, restrictions on certain foreign purchases, in solicitations and', 16896:'contracts, unless an exception applies. b translations. insert the clause at 52.22514, inconsistency between english version and translation of contract,in', 16897:'solicitations and contracts if anticipating translation into another language. c foreign currency offers. insert the provision at 52.22517, evaluation of', 16898:'foreign currencyoffers,in solicitations that permit the useof other than aspecified currency. insert in the provision the source of the rate', 16899:'to be used in the evaluation of offers. d the contractingofficer shall includein each solicitation for theacquisitionof other than commercialproducts', 16900:'or commercial services the provision at 52.22520, prohibition on conducting restricted business operations in sudan— certification. e thecontracting officer shall', 16901:'include in all solicitations the provision at 52.22525, prohibition on contracting with entities engaging in certain activities or transactions relating', 16902:'toiranrepresentationandcertifications. this page intentionally left blank. 25.114 part 26 other socioeconomic programs sec. subpart 26.1 indianincentive program 26.100 scope of', 16903:'subpart. 26.101 definitions. 26.102 policy. 26.103 procedures. 26.104 contract clause. subpart 26.2 major disaster or emergency assistance activities 26.200 scope', 16904:'of subpart. 26.201 definitions. 26.202 local area preference. 26.2021 local area setaside. 26.2022 evaluation preference. 26.203 transition of work. 26.204', 16905:'justification for expenditures to other than local firms. 26.205 disaster response registry. 26.206 solicitation provision and contract clauses. subpart 26.3', 16906:'historically black colleges and universities and minority institutions 26.300 scope of subpart. 26.301 [reserved] 26.302 general policy. 26.303 data collection', 16907:'and reporting requirements. 26.304 solicitation provision. subpart 26.4 food donations to nonprofit organizations 26.400 scope of subpart. 26.401 definitions. 26.402', 16908:'policy. 26.403 procedures. 26.404 contract clause. subpart 26.5 drugfree workplace 26.500 scope of subpart. 26.501 applicability. 26.502 authority. 26.503 definitions.', 16909:'26.504 policy. 26.505 suspension of payments, termination of contract, and debarment and suspension actions. 26.506 contract clause. subpart 26.6 encouraging', 16910:'contractor policies to ban text messaging while driving 26.601 purpose. 26.602 applicability. 26.603 definitions. 26.604 policy. 26.605 contract clause. this', 16911:'page intentionally left blank. subpart 26.1 indian incentive program 26.103 subpart 26.1 indian incentive program 26.100scope of subpart. this subpart', 16912:'implements 25 u.s.c.1544, which provides anincentive to prime contractorsthat use indianorganizations and indianowned economic enterprises as subcontractors. 26.101definitions. as used', 16913:'in this subpart indian means any person who is a member of any indian tribe, band, group, pueblo, or community', 16914:'that is recognized by the federal government as eligible for services from the bureau of indian affairs bia inaccordancewith 25', 16915:'u.s.c. 1452c and any native as defined in the alaska native claims settlement act 43 u.s.c. 1601. indian organization means', 16916:'the governing body of any indian tribe or entity established or recognized by the governing body of an indian tribe', 16917:'for the purposes of 25 u.s.c., chapter 17. indianowned economic enterprise means any indianowned as determined by the secretary of', 16918:'the interior commercial, industrial, or businessactivity establishedor organized for the purpose of profit, provided that indian ownership constitutes not less', 16919:'than 51 percent of the enterprise. indian tribe means any indiantribe, band, pueblo, or community,including native villages and native groupsincluding', 16920:'corporations organized by kenai, juneau, sitka, and kodiak as definedin thealaskanative claims settlementact, that is recognized by the federal government', 16921:'as eligible for services from bia in accordance with 25 u.s.c. 1452c. interested party means aprimecontractor or an actual or', 16922:'prospective offeror whose direct economicinterest would be affected bythe award ofa subcontract or by the failure to awarda subcontract. 26.102', 16923:'policy. indian organizationsandindianowned economic enterprises shall have the maximum practicableopportunity to participate in performing contracts awarded by federal agencies. in', 16924:'fulfilling this requirement, the indian incentive program allows an incentive payment equal to 5 percent of the amount paid to', 16925:'a subcontractor in performing the contract, if the contract so authorizes and the subcontractor is an indian organization or indianowned', 16926:'economic enterprise. 26.103 procedures. a contracting officers and prime contractors, actingin goodfaith, may rely on the representation of an indian', 16927:'organizationor indianowned economicenterpriseas to its eligibility,unlessan interested party challenges its status or the contracting officerhas independent reason to question that', 16928:'status. b in the event of a challengeto the representation of a subcontractor,the contracting officer shall refer the matter to', 16929:'the u.s. department of theinterior bureau ofindian affairs bia attn: acquisition management director 12220 sunrise valley drive reston, va20191. the', 16930:'biawill determine the eligibility and notify thecontracting officer. c thebia will acknowledge receipt ofthe request from thecontracting officer within5 workingdays.', 16931:'within45 additional working days,bia will advisethe contracting officer, inwriting, of its determination. d the contractingofficer will notify the prime contractorupon', 16932:'receipt of a challenge. 1 to be consideredtimely,a challenge shall i be in writing; ii identify the basis for the', 16933:'challenge; iii provide detailed evidence supporting the claim; and iv be filed withand received bythe contracting officer prior to award', 16934:'of the subcontract in question. 2 if the notification of a challenge is received by the prime contractor prior to', 16935:'award, it shall withhold award of the subcontract pending the determination bybia, unless the prime contractor determines, and the contracting', 16936:'officer agrees,that award must be made in order to permit timely performance of the prime contract. 3 challenges received after', 16937:'award of the subcontract shall be referred to bia, but the bia determination shall have prospective application only. e if', 16938:'the bia determinationis not received within the prescribed time period,the contracting officer andthe prime contractor mayrely on the representation of', 16939:'thesubcontractor. federal acquisition regulation f subject to the termsandconditions ofthe contract and theavailabilityof funds, contracting officersshallauthorize an incentive payment of', 16940:'5 percent of the amount paid to thesubcontractor. contractingofficers shall seek funding inaccordance with agency procedures. 26.104contract clause. contracting officersin', 16941:'civilian agencies may insert the clause at 52.2261, utilization of indianorganizations and indian owned economic enterprises, in solicitations and contracts', 16942:'if a inthe opinion of the contracting officer, subcontracting possibilitiesexistforindian organizations or indianowned economic enterprises; and b funds are available', 16943:'for any increased costs as described in paragraph b2 of the clause at 52.2261. subpart 26.2 major disaster or emergency', 16944:'assistance activities 26.203 subpart 26.2 major disaster or emergency assistance activities 26.200scope of subpart. this subpart implements therobert t. stafforddisaster', 16945:'relief and emergency assistanceact42u.s .c.5150, which provides apreferenceforlocal organizations, firms, and individuals when contractingformajordisasteror emergency assistance activities. 26.201definitions. emergency response', 16946:'contract means a contract with private entities that supports assistance activities in a major disaster or emergencyarea, such as debris', 16947:'clearance, distribution of supplies, or reconstruction. local firm means a private organization,firm,or individual residing ordoing business primarily in a major', 16948:'disaster or emergencyarea. major disaster or emergency area means the areaincluded in the official presidentialdeclarations and any additional areas identifiedby', 16949:'the department of homeland security. major disaster declarations and emergencydeclarationsare published in the federal register and are available at https://www.fema.gov/disasters/disaster/declarations.', 16950:'26.202 local area preference. a whenawardingemergencyresponsecontractsduringthetermofamajordisasteroremergencydeclarationbythe president of theunited statesunder theauthority of the robert t. stafford disaster relief and emergency', 16951:'assistance act 42 u.s.c. 5121, et seq., preference shall be given, to the extent feasible and practicable, to local firms.', 16952:'preference may be given through a local area setaside or an evaluation preference. b whenusingtheauthorityunderthestaffordact,seethedefinitionsof micropurchasethreshold and simplified acquisition threshold', 16953:'in 2.101 for the authority to use an increased micropurchase threshold and simplified acquisition threshold. 26.2021local area setaside. the contractingofficer', 16954:'may set aside solicitations toallow only local firms within a specific geographic area to compete see 6.208. a thecontracting officer,in', 16955:'consultation with the requirementsoffice, shall define the specific geographicarea for the local setaside. b a major disaster or emergency area', 16956:'may span counties in several contiguousstates. the setaside areaneednot include all thecounties in the declareddisaster/emergency areas, but cannot gooutside it.', 16957:'c thecontracting officer shall also determinewhethera local area setaside should befurther restricted to small business concerns in the setaside area', 16958:'see part 19. 26.2022evaluation preference. the contractingofficer may use an evaluation preference,when authorized inagency regulations or procedures. 26.203 transitionof work.', 16959:'a inanticipation ofpotentialemergency response requirements,agencies involved in response planning should consider awarding emergency responsecontracts before a major disaster or emergency', 16960:'occurs toensure immediate response and relief. these contracts should be structured to respond to immediate emergency responseneeds, and should not', 16961:'bestructured in any way that may inhibitthe transition ofemergency response work to localfirms e.g., unnecessarily broad scopes of work or', 16962:'long periods of performance. b 42u.s.c.5 150b2 requires that agencies performing response, relief, and reconstruction activities transition to localfirms any', 16963:'work performed undercontracts in effect on the date on whichthe president declares a major disaster or emergency, unless theheadof such', 16964:'agency determines inwriting that it is not feasibleor practicable. this determination may be made on an individual contract or class', 16965:'basis. the written determination shall be prepared within a reasonable time given thecircumstances of theemergency. c ineffecting the transition, agenciesare', 16966:'not requiredto terminate or renegotiate existing contracts. agencies should transition the work at the earliest practical opportunity after consideration of', 16967:'the following: 1 the potential duration of the disasteror emergency. 2 the severity of the disasteror emergency. federal acquisition regulation', 16968:'3 the scope and structure of the existing contract, including its period of performance and the milestones at which a', 16969:'transition is reasonable e.g., before exercising an option. 4 the potential impactof atransition, including safety, national defense, and mobilization. 5', 16970:'the expected availability of qualified local offerors who can provide the productsor services ata reasonable price. d the agency shall', 16971:'transition the work to local firms using the local area setaside identified in 26.2021. 26.204 justification forexpenditures to otherthan local', 16972:'firms. a 42u.s.c .5150b1 requires that, subsequent to any presidentialdeclaration of a major disaster or emergency, any expenditure of federalfunds,', 16973:'under an emergency response contract not awarded toa local firm, mustbe justifiedin writing in the contract file. the justification should', 16974:'include consideration for the scope of the major disaster or emergency and the immediate requirementsor needs of supplies and services', 16975:'to ensure lifeis protected, victims arecaredfor, and property is protected. b the justification may be made onan individual orclass basis.', 16976:'thecontracting officer approvesthe justification. 26.205 disaster response registry. a contracting officers shall consult thedisaster response registry via https://www.sam.gov to determine', 16977:'the availability of contractors for debris removal, distributionof supplies, reconstruction, and other disaster oremergency relief activities inside the united states', 16978:'and outlying areas. b a list of prospective vendors voluntarily participating in the disaster response registry can be retrieved using', 16979:'the system for award management sam search tool, which canbe accessed via https://www.sam.gov, search records, advanced search, disaster response registry', 16980:'search. these vendors may be identified by selecting the criteria for disaster response contractors. contractors are required to register in', 16981:'sam in order to gain access to the disaster response registry. 26.206 solicitation provision and contract clauses. a thecontracting officer', 16982:'shall insert the provision at 52.2263, disaster or emergency area representation,in solicitations involving the local area setaside. for commercial products', 16983:'and commercial services, see 12.301e5. b the contractingofficer shall insertthe clause at 52.2264, noticeof disaster oremergency areasetasidein solicitations and contracts', 16984:'involving local area setasides. c thecontracting officer shall insert the clause at 52.2265, restrictions on subcontracting outside disaster or emergencyarea,', 16985:'inall solicitations andcontracts that involve local area setasides. subpart 26.3 historically black colleges and universities and minority institutions 26.304 subpart', 16986:'26.3 historically black colleges and universities and minority institutions 26.300scope of subpart. a this subpart implements executive order12928 of september', 16987:'16,1994, which promotes participation of historically black colleges and universities hbcus and minority institutions mis in federal procurement. b this', 16988:'subpart does not pertain to contracts performed entirely outside the united states and its outlying areas. 26.301[reserved] 26.302 generalpolicy. it', 16989:'is the policy of the government to promote participation of hbcus and mis in federal procurement. 26.303 data collection andreportingrequirements.', 16990:'executive order12928 requires periodic reporting to the president on the progress of departments and agencies in complying with the laws', 16991:'and requirements mentionedin the executive order. 26.304 solicitation provision. insert the provision at 52.2262, historically black college or university and', 16992:'minority institution representation, in solicitations exceeding the micropurchase threshold, for research, studies, supplies, or services of the type normally acquired', 16993:'from higher educational institutions. this page intentionally left blank. 26.32 subpart 26.4 food donations to nonprofit organizations 26.404 subpart 26.4', 16994:'food donations to nonprofit organizations 26.400scope of subpart. this section implements the federal food donation act of 2008 42 u.s.c', 16995:'1792. 26.401definitions. as used in this subpart apparently wholesome food means food that meets all quality and labeling standards imposed', 16996:'by federal, state, and local laws and regulations even though the food may not be readily marketable due to appearance,', 16997:'age, freshness, grade, size, surplus, or other conditions, in accordance with b2 of the bill emerson good samaritan food donation', 16998:'act 42 u.s.c. 1791b. excess food means food that 1 is not required to meet the needs of the executive', 16999:'agencies; and 2 would otherwise be discarded. foodinsecure means inconsistent access to sufficient, safe,andnutritiousfood. nonprofit organization means any organization that', 17000:'is 1 described in section 501c of the internal revenue code of 1986; and 2 exempt from tax under section', 17001:'501a of that code. 26.402 policy. the government encourages executive agencies and their contractors, to the maximum extent practicable and', 17002:'safe, to donate excess apparently wholesome food to nonprofit organizations thatprovide assistance to foodinsecure people in the united states. 26.403', 17003:'procedures. a in accordance with the federal food donation act of 2008 an executive agency shall comply with the following:', 17004:'1 encourage donations. in the applicable contracts stated at section 26.404, encourage contractors, to the maximum extent practicable and safe,', 17005:'to donate apparently wholesome excess food tononprofit organizations that provide assistance to foodinsecure people in the united states. 2 costs.', 17006:'i in any case in which a contractor enters into a contract with an executive agency under which apparently wholesome', 17007:'food is donated to foodinsecure people in the united states, the head of the executive agency shall not assume responsibility', 17008:'for the costs and logistics of collecting, transporting, maintaining the safety of, or distributing excess, apparently wholesome food to foodinsecure', 17009:'people in the united states under this act. ii the government will not reimburse any costs incurred by the contractor', 17010:'against this contract or any other contract for the donation of federal excess foods. any costs incurred for federal excess', 17011:'food donations are not considered allowable public relations costs in accordance with 31.2051f8. 3 liability. an executive agency including an', 17012:'executive agency that enters into a contract with a contractor and any contractor making donations pursuant to this act shall', 17013:'be exempt from civil and criminal liability to the extent provided under the bill emerson good samaritan food donation act', 17014:'42 u.s.c. 1791. 26.404contract clause. insert the clause at 52.2266, promoting excess fooddonation to nonprofit organizations, in solicitations and contracts', 17015:'greater than $30,000 for the provision, service, or sale of food in the united states. this page intentionally left blank.', 17016:'26.42 subpart 26.5 drugfree workplace 26.504 subpart 26.5 drugfree workplace 26.500scope of subpart. this subpart implements 41 u.s.c. chapter 81,', 17017:'drugfree workplace. 26.501 applicability. thissubpartappliestocontracts,includingcontractswith8acontractorsunderfar subpart 19.8 and modifications that require a justification and approval see subpart 6.3, except contracts', 17018:'a at or below thesimplified acquisition threshold; however, the requirements of this subpart apply toall contracts of any value awarded', 17019:'to an individual; b for the acquisition of commercial products and commercial services see part 12; c performed outside the', 17020:'united states and its outlying areas or any part of a contract performed outside the united states and its outlying', 17021:'areas; d by law enforcement agencies, if the head of the law enforcement agency or designee involved determines that application', 17022:'of this subpart would beinappropriate in connection with the law enforcement agency’s undercoveroperations; or e where application would be inconsistent', 17023:'with the international obligations of the united states or with the laws and regulations of a foreign country. 26.502 authority.', 17024:'41 u.s.c. chapter 81, drugfree workplace. 26.503definitions. as used in this subpart controlled substance means a controlled substance in schedules', 17025:'i through v of section 202 of the controlled substances act 21 u.s.c. 812, and as further defined inregulation at', 17026:'21 cfr1308.11–1308.15. conviction means a finding of guilt including a plea of nolo contendere or imposition of sentence, or both,', 17027:'by any judicial body charged withthe responsibility to determine violationsof the federal or state criminal drug statutes. criminal drug statute', 17028:'means a federal or nonfederal criminal statute involving the manufacture, distribution, dispensing, possession, or use of any controlled substance. employee', 17029:'means an employee of a contractor directly engaged in the performance of work under a government contract. directly engaged is', 17030:'defined to include all direct cost employees and any other contract employee who has other than a minimal impact or', 17031:'involvement in contract performance. individual means an offeror/contractor that hasno more than one employee including the offeror/contractor. 26.504 policy. a', 17032:'no offerorotherthan an individualshallbe considered a responsible source see 9.1041g and 19.6021a2i for a contract that exceeds the simplified acquisition', 17033:'threshold, unless it agrees that it will provide a drugfree workplace by 1 publishing a statement notifying its employees that', 17034:'the unlawful manufacture, distribution, dispensing, possession, or use of a controlledsubstance is prohibited in thecontractor’s workplace, and specifyingthe actions that', 17035:'willbe taken against employees for violations of such prohibition; 2 establishing an ongoing drugfree awareness program to inform its employees', 17036:'about i the dangers of drug abuse in the workplace; iithe contractor’s policy of maintaining a drugfree workplace; iii any', 17037:'available drug counseling, rehabilitation, and employee assistance programs; and iv the penalties that may be imposed upon employees for drug', 17038:'abuse violations occurring in the workplace; 3 providing all employees engaged in performance of the contract with a copy of', 17039:'the statement required by paragraph a1 of this section; 4 notifying all employees in writing in the statement required by', 17040:'paragraph a1 of this section, that as a condition of employment on a covered contract, the employee will i abide', 17041:'by the terms of the statement; and iinotify the employerin writingof the employee’s convictionunder a criminal drug statute for a', 17042:'violation occurring in the workplace no later than 5 days after such conviction; federal acquisition regulation 5 notifying the contractingofficer', 17043:'in writingwithin 10 days after receivingnotice under subdivision a4ii ofthis section, from an employee or otherwise receiving actual notice of', 17044:'such conviction. the notice shall include the position title of the employee; 6 within 30 days after receiving notice under', 17045:'paragrapha4 of this section of a conviction, taking one of the following actions with respect to any employee who is', 17046:'convicted of a drug abuse violation occurring in the workplace: itaking appropriate personnel action against such employee, upto and includingtermination.', 17047:'ii requiring such employee to satisfactorily participate in a drug abuse assistance or rehabilitation program approved for such purposes bya', 17048:'federal,state,or local health, law enforcement, or other appropriate agency. 7 making a good faitheffort to maintain a drugfree workplace through', 17049:'implementationof paragraphs a1 through a6 of this section. b no individual shall be awarded a contract of any dollar value', 17050:'unless that individual agrees not to engage in the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance', 17051:'while performing the contract. c for a contract of 30 days or more performance duration, the contractor shall comply with', 17052:'the provisions of paragraph a ofthis section within 30 daysafter contractaward, unless the contracting officeragrees inwriting thatcircumstances warrant a longerperiod', 17053:'of time tocomply. before granting such an extension, thecontracting officer shall consider such factors as the number of contractor employees', 17054:'at the worksite, whether the contractor has or must develop a drugfree workplace program, and the number of contractor worksites.', 17055:'for contracts of less than 30 days performance duration, the contractor shall comply with the provisions of paragraph a of', 17056:'this section as soon as possible, but in any case, by a date prior to when performance is expected to', 17057:'be completed. 26.505suspension of payments, termination of contract, and debarment and suspension actions. a after determining in writing that adequate', 17058:'evidence to suspect any of the causes at paragraph d of this section exists, thecontracting officer may suspend contract payments', 17059:'in accordance with the procedures at 32.5036a1. b afterdetermining in writingthat any ofthe causes at paragraph d of this sectionexist,', 17060:'the contracting officer may terminate the contract for default. c upon initiatingaction under paragraph a orbof this section, the contracting', 17061:'officer shall refer thecaseto the agencysuspensionanddebarmentofficial,inaccordancewithagencyprocedures,pursuantto subpart 9.4. d the specific causes for suspension of contract payments, termination of a', 17062:'contract for default, or suspension and debarment are 1 the contractor has failed to comply with the requirements of the', 17063:'clause at 52.2267, drugfree workplace; or 2 the number of contractor employees convicted of violations of criminal drug statutes occurring', 17064:'in the workplace indicates that the contractor has failed to make agood faith effortto provide a drugfree workplace. e a', 17065:'determination under this section to suspend contract payments, terminate a contract for default, or debar or suspend a contractor may', 17066:'be waived by the agency head for a particular contract, in accordance with agency procedures, only if such waiver is', 17067:'necessary to prevent a severe disruption of the agency operation to the detriment of the federal government or the general', 17068:'public see subpart 9.4. the waiver authority of the agency head cannot be delegated. 26.506contract clause. except as provided in', 17069:'26.501, insert the clause at 52.2267,drugfree workplace,in solicitations and contracts. subpart 26.6 encouraging contractor policies to ban text messaging while', 17070:'driving 26.605 subpart 26.6 encouraging contractor policies to ban text messaging while driving 26.601purpose. this subpart implements the requirements of', 17071:'the executive order e.o. 13513, dated october 1, 2009 74 fr 51225, october 6, 2009,federal leadershipon reducing text messaging while', 17072:'driving. 26.602 applicability. this subpart applies to all solicitations and contracts. 26.603definitions. as used in this subpart driving 1 means', 17073:'operating a motor vehicle on an active roadway with the motor running, including while temporarily stationary because oftraffic, a traffic', 17074:'light,stop sign, or otherwise. 2 does not include operating a motor vehicle with or without the motor running when one', 17075:'has pulled over to the side of, or off, an activeroadway and has halted in alocationwhere one can safely remain', 17076:'stationary. text messaging means reading from or entering data into any handheld or other electronic device, including for the purpose', 17077:'of short message service texting, emailing, instant messaging, obtaining navigational information, or engaging in any other form of electronic data', 17078:'retrieval or electronic data communication. the term does not include glancing at or listeningto a navigational device that is secured', 17079:'in acommercially designed holder affixed to the vehicle, provided that the destination and route areprogrammed into the device either beforedriving', 17080:'or while stopped in a location offthe roadway where it is safe and legal to park. 26.604 policy. agencies shall', 17081:'encourage contractors and subcontractors to adopt and enforce policies that ban text messaging while driving a companyowned or rented vehicles', 17082:'or governmentowned vehicles; or b privatelyowned vehicles when on official government business or when performing any work for or onbehalf', 17083:'ofthe government. 26.605contract clause. the contractingofficer shall insertthe clause at 52.2268, encouraging contractor policies to ban text messaging while driving,', 17084:'in all solicitations and contracts. this page intentionally left blank. 26.62 part 27 patents, data, and copyrights sec. 27.000 scope', 17085:'of part. 27.001 definition. subpart 27.1 general 27.101 applicability. 27.102 general guidance. subpart 27.2 patents and copyrights 27.200 scope of', 17086:'subpart. 27.201 patent and copyright infringement liability. 27.2011 general. 27.2012 contract clauses. 27.202 royalties. 27.2021 reporting of royalties. 27.2022 notice', 17087:'of government as a licensee. 27.2023 adjustment of royalties. 27.2024 refund of royalties. 27.2025 solicitation provisions and contract clause. 27.203', 17088:'security requirements for patent applications containing classified subject matter. 27.2031 general. 27.2032 contract clause. 27.204 patented technology under trade agreements.', 17089:'27.2041 use of patented technology under the united statesmexicocanada agreement. 27.2042 use of patented technology under the general agreement on', 17090:'tariffs and trade gatt. subpart 27.3 patent rights under government contracts 27.300 scope of subpart. 27.301 definitions. 27.302 policy. 27.303', 17091:'contract clauses. 27.304 procedures. 27.3041 general. 27.3042 contracts placed by or for other government agencies. 27.3043 subcontracts. 27.3044 appeals. 27.305', 17092:'administration of patent rights clauses. 27.3051 goals. 27.3052 administration by the government. 27.3053 securing invention rights acquired by the government.', 17093:'27.3054 protection of invention disclosures. 27.306 licensing background patent rights to third parties. subpart 27.4 rights in data and copyrights', 17094:'27.400 scope of subpart. 27.401 definitions. 27.402 policy. 27.403 data rightsgeneral. 27.404 basic rights in data clause. 27.4041 unlimited rights', 17095:'data. 27.4042 limited rights data and restricted computer software. 27.4043 copyrighted works. 27.4044 contractor’srelease,publication,anduseof data. 27.4045 unauthorized, omitted, or incorrect', 17096:'markings. 27.4046 inspection of data at the contractor’s facility. 27.405 other data rights provisions. 27.4051 special works. 27.4052 existing works.', 17097:'27.4053 commercial computer software. 27.4054 other existing data. 27.406 acquisition of data. 27.4061 general. 27.4062 additional data requirements. 27.4063 major', 17098:'system acquisition. 27.407 rights to technical data in successful proposals. 27.408 cosponsored research and development activities. 27.409 solicitation provisions and', 17099:'contract clauses. subpart 27.5 foreign license and technical assistance agreements 27.501 general. this page intentionally left blank. subpart 27.1 general', 17100:'27.102 27.000scope of part. this part prescribes the policies, procedures, solicitation provisions, and contract clauses pertaining to patents, data, and', 17101:'copyrights. 27.001definition. united states, as used in this part, means the 50 states and the district of columbia, u.s. territories', 17102:'and possessions, puerto rico, and the northern mariana islands. subpart 27.1 general 27.101 applicability. this part applies to all agencies.', 17103:'however, agencies are authorized toadopt alternative policies, procedures, solicitation provisions, and contract clauses to the extent necessary to meet the', 17104:'specific requirements of laws, executive orders, treaties, or international agreements. any agency adopting alternative policies, procedures, solicitation provisions, and contract', 17105:'clauses should include them in the agency’spublished regulations. 27.102general guidance. a the government encourages the maximum practical commercial use of', 17106:'inventions made under government contracts. b generally,the government will not refuse toaward acontract onthe grounds that the prospective contractor may', 17107:'infringe a patent. the government may authorize and consent to the use of inventions in the performance of certain contracts,', 17108:'even though the inventions may be covered by u.s. patents. c generally, contractorsproviding commercial productsandcommercial services should indemnify the government', 17109:'against liability for the infringement of u.s. patents. d the government recognizes rights in data developed at private expense, and', 17110:'limits its demands for delivery of that data. when such data is delivered, the government will acquire only those rights', 17111:'essential to its needs. e generally, the government requires that contractors obtainpermission fromcopyrightowners beforeincluding copyrighted works, owned by others, in', 17112:'data to be delivered to the government. this page intentionally left blank. 27.12 subpart 27.2 patents and copyrights 27.2012 subpart', 17113:'27.2 patents and copyrights 27.200scope of subpart. this subpart prescribes policies and procedures with respect to a patent and copyright', 17114:'infringement liability; b royalties; c security requirements for patent applications containing classified subject matter; and d patented technology under trade', 17115:'agreements. 27.201 patent and copyrightinfringement liability. 27.2011 general. a pursuant to 28 u.s.c. 1498, the exclusive remedy for patent or', 17116:'copyright infringement by or on behalf of the government is a suit for monetary damages against the government in the', 17117:'court of federal claims. there is no injunctive relief available, and there is no direct cause of action against a', 17118:'contractor that is infringing a patent or copyright with the authorization or consent of the government e.g., while performing a', 17119:'contract. b the government mayexpressly authorize andconsent to a contractor’s use or manufacture of inventions covered by u.s. patents by', 17120:'inserting the clause at 52.2271, authorization and consent. c because of the exclusive remedies granted in 28 u.s.c. 1498, the', 17121:'government requires notice and assistance from its contractors regarding any claims for patent or copyright infringement by inserting the clause', 17122:'at 52.2272, notice and assistance, regarding patent and copyright infringement. d the government may require a contractor to reimburse it', 17123:'for liability for patent infringement arising out of a contract for commercial products or commercial services by inserting the clause', 17124:'at 52.2273, patentindemnity. 27.2012 contract clauses. a 1 insert the clause at 52.2271, authorization and consent, in solicitations and contracts', 17125:'except that use of the clause is i optional when using simplified acquisition procedures; and ii prohibited when both complete', 17126:'performance and delivery are outside the united states. 2 use the clause with its alternate i in all r&d solicitations', 17127:'and contracts for which the primary purpose is r&d work, except that this alternate shall not be used in construction', 17128:'and architectengineer contracts unless the contract calls exclusively for r&d work. 3 use the clause with its alternate ii in', 17129:'solicitations and contracts for communication services with a common carrier and the servicesare unregulated and not priced by a tariffschedule', 17130:'set by a regulatory body. b insert the clause at 52.2272, notice and assistance regarding patent and copyright infringement, in', 17131:'all solicitations and contracts that include the clause at 52.2271, authorization and consent. c 1 insert the clause at 52.2273,patentindemnity,insolicitationsandcontractsthatmayresultinthedeliveryof', 17132:'commercial products or the provision of commercial services unless i part 12 procedures are used; ii the simplified acquisition procedures', 17133:'of part 13 are used; iii both complete performance and delivery are outside the united states; or iv the contracting', 17134:'officer determines after consultation with legal counsel that omissionof the clause would be consistent with commercial practice. 2 use the', 17135:'clause with either its alternate i identification of excluded items or ii identification of included items if i the contract', 17136:'also requires delivery of items that are not commercial products or the provision of services that are not commercial services;', 17137:'or iithe contracting officer determines afterconsultation with legalcounsel that limitation of applicability of the clause would be consistent with commercial', 17138:'practice. 3 use the clause with its alternate iii if the solicitation or contract is for communication services and facilities', 17139:'where performance is by a common carrier, and the services are unregulatedandare not priced by a tariff schedule set by', 17140:'a regulatory body. federal acquisition regulation d 1 insert the clause at 52.2274, patent indemnityconstruction contracts, in solicitations and contracts', 17141:'for construction or that are fixedprice for dismantling, demolition, or removal of improvements. do not insert the clause in contracts', 17142:'solely for architectengineer services. 2 if the contracting officer determines that the construction will necessarily involve the useof structures, products,', 17143:'materials, equipment, processes,or methods that are nonstandard,noncommercial, or special, the contractingofficer may expressly exclude them from the patent indemnification by', 17144:'using the clause with its alternate i. note that this exclusion is for items, as distinguished from identified patents see', 17145:'paragraph e of this subsection. e it may bein the government’s interest to exemptspecific u.s. patents from the patent indemnityclause.', 17146:'exclusion from indemnity of identified patents, as distinguished from items, is the prerogative of the agency head. upon written approval', 17147:'ofthe agencyhead, the contracting officer mayinsert the clauseat 52.2275,waiver of indemnity,in solicitations and contracts in addition to the appropriate patent', 17148:'indemnity clause. f ifa patent indemnity clauseis not prescribed,the contracting officermay includeonein the solicitation and contract if it is in', 17149:'thegovernment’s interest todo so. g the contractingofficer shall not include in anysolicitation or contract any clause wherebythe government agreesto indemnify', 17150:'a contractor for patent infringement. 27.202royalties. 27.2021reporting of royalties. a to determinewhetherroyalties anticipated or actually paid under government contracts areexcessive,', 17151:'improper, or inconsistent with government patent rights the solicitation provision at 52.2276 requires prospective contractors to furnish royaltyinformation. thecontracting officer', 17152:'shall take appropriate actionto reduce or eliminate excessive or improper royalties. b if the response to asolicitation includes a charge', 17153:'for royalties,the contracting officer shall, before award of the contract, forward the information to the office having cognizance of patent', 17154:'matters for thecontracting activity. the cognizant officeshallpromptly advise the contracting officer of appropriate action. c thecontracting officer,when considering theapproval of', 17155:'a subcontract, shall require royalty information if it is required under the prime contract. the contractingofficer shall forward the informationto', 17156:'the office havingcognizance of patent matters. however, the contracting officer need notdelay consent whileawaiting advice from the cognizant office. d', 17157:'the contractingofficer shall forward any royalty reports to the officehaving cognizance ofpatent matters for the contracting activity. 27.2022 notice of', 17158:'government as a licensee. a when the government is obligated to pay a royalty on a patent because of an', 17159:'existing license agreement and the contracting officerbelieves thatthe licensedpatent will be applicable to aprospective contract, the government should furnish the', 17160:'prospective offerors with 1 notice of the license; 2 the number of the patent; and 3 the royalty rate cited', 17161:'in the license. b when the government is obligated to pay such a royalty, the solicitation should also require offerors', 17162:'tofurnish information indicating whether or not each offeror is the patent owner or a licensee under the patent. thisinformationis necessary', 17163:'so that the government may either 1 evaluate an offeror’s price by addingan amountequalto the royalty; or 2 negotiate a', 17164:'price reductionwith an offeror when the offeror is licensedunder thesame patentat a lowerroyalty rate. 27.2023adjustmentof royalties. a if atanytime the', 17165:'contracting officer believes that any royalties paid, or tobe paid, undera contract or subcontract are inconsistentwith governmentrights, excessive, or otherwise', 17166:'improper, the contractingofficer shall promptly reportthe facts to the officehaving cognizance ofpatent matters for the contracting activityconcerned. b in coordination', 17167:'with the cognizant office, thecontracting officer shall promptly act to protect the government against payment of royalties 1 with respectto', 17168:'which the government has aroyaltyfree license; subpart 27.2 patents and copyrights 27.2032 2 at a rate in excess of the', 17169:'rate at which the government is licensed; or 3 when the royalties in wholeor in part otherwise constitutean improper charge.', 17170:'c inappropriatecases, the contractingofficer in coordination with the cognizant office shall demanda refundpursuant to any refund of royalties clause in', 17171:'the contract see 27.2024 or negotiate for a reduction of royalties. d for guidance in evaluating information furnished pursuant to', 17172:'27.2021, see 31.20537. see also 31.109 regarding advance understandings on particular cost items, including royalties. 27.2024refund of royalties. the clause', 17173:'at 52.2279, refund of royalties, establishes procedures to pay the contractor royalties under the contract and recoverroyalties not paid bythe', 17174:'contractor whenthe royalties were includedin thecontractor’sfixed price. 27.2025solicitation provisions and contractclause. a 1 insert a solicitation provision substantially the same', 17175:'as the provision at 52.2276, royalty information, in i any solicitation that may result in a negotiated contract for which', 17176:'royalty information is desired and for which certified cost or pricing data are obtained under 15.403; or iisealed bidsolicitationsonly if', 17177:'theneedforsuch information is approved at a level above the contractingofficer as being necessaryforproper protection of the government’sinterests. 2 if the', 17178:'solicitationis for communicationservices andfacilities by acommon carrier, use theprovision with its alternate i. b if the government is obligated to', 17179:'pay a royalty on a patent involved in the prospective contract, insert in the solicitation a provision substantially the same', 17180:'as the provision at 52.2277, patentsnotice of government licensee. if the clause at 52.2276 is not included in the solicitation,', 17181:'the contracting officermay require offerors to provide information sufficient to providethis notice to the other offerors. c insert the clause', 17182:'at 52.2279, refund of royalties, in negotiated fixedprice solicitations and contracts when royalties may be paid under the contract. if', 17183:'afixedpriceincentive contract iscontemplated,change price to target costand target profit wherever it appears in the clause. the clause may be used', 17184:'in costreimbursement contracts where agency approval of royaltiesis necessary to protect the government’s interests. 27.203 security requirements for patent applications', 17185:'containingclassified subject matter. 27.2031 general. a unauthorized disclosure of classified subject matter,whetherin patent applications orresulting from the issuance of a', 17186:'patent, may be a violation of 18 u.s.c. 792, et seq. chapter 37espionage and censorship, and related statutes, and may', 17187:'be contrary to the interestsof national security. b upon receipt of a patent application under paragraph a or b of', 17188:'the clause at 52.22710, filing of patent applicationsclassified subject matter,the contracting officershallascertain theproper security classification of the patent application. if', 17189:'the application contains classified subject matter, the contracting officershallinform thecontractor how to transmit the application to the united states patent', 17190:'officein accordance with procedures provided by legal counsel. if the material is classified secret or higher, the contracting officer shall', 17191:'make every effort tonotify the contractor within30 days of the government’sdetermination, pursuant to paragraph a of the clause. c upon', 17192:'receipt of information furnished by the contractor under paragraph d of the clause at 52.22710, the contracting officer shall promptly', 17193:'submit thatinformation to legalcounsel in order that the steps necessary to ensure the security ofthe application will be taken. d', 17194:'the contractingofficer shall actpromptly on requestsforapproval of foreign filing under paragraph c of the clause at 52.22710 in order to', 17195:'avoid the loss of valuable patent rights ofthe government or the contractor. 27.2032 contract clause. insert the clause at 52.22710,filing', 17196:'ofpatent applicationsclassified subject matter, in all classified solicitations and contracts and in all solicitations and contracts where the nature of', 17197:'the work reasonably might result in a patent application containing classified subject matter. federal acquisition regulation 27.204 patented technology under', 17198:'trade agreements. 27.2041use of patented technology under the united statesmexicocanadaagreement. when questions arise with regard to use of patented technology', 17199:'under the united statesmexicocanada agreement, the contracting officershouldconsult with legal counsel. note that article 20.6a ofthe agreement discussespublic healthand pharmaceuticals.', 17200:'27.2042use of patented technology under the general agreement on tariffs and trade gatt. article 31 of annex 1 c, agreementon', 17201:'traderelatedaspects of intellectual property rights, togatt uruguay round addresses situations where the law of a member country allows for use', 17202:'of a patent without authorization, including use by the government. article 20.40 of the united statesmexicocanada agreement preserves parties rights', 17203:'under article 31. subpart 27.3 patent rights under government contracts 27.302 subpart 27.3 patent rights under government contracts 27.300scope of', 17204:'subpart. this subpart prescribes policies, procedures, solicitation provisions, and contract clauses pertaining to inventions made in the performance of work', 17205:'under a government contract or subcontract for experimental, developmental, or research work. agency policies, procedures, solicitation provisions, and contract clauses', 17206:'may be specified in agency supplemental regulations as permitted by law, including 37 cfr 401.1. 27.301definitions. as used in this', 17207:'subpart invention means any invention or discovery that is or may be patentable or otherwise protectable under title 35 of', 17208:'the u.s. code,or any variety of plant that is or maybe protectableunder theplant variety protection act 7 u.s .c. 2321,', 17209:'et seq. made means 1 when used in relation to anyinvention other than a plant variety, means the conception or', 17210:'firstactual reduction to practice of the invention; or 2 when used in relation to a plant variety, means that the', 17211:'contractor hasat leasttentativelydetermined that the variety has been reproduced with recognized characteristics. nonprofit organization means a university orother institution of', 17212:'higher education or an organization of the type described in section 501c3 of the internal revenue code of 1954 26', 17213:'u.s.c. 501c and exempt from taxation under section 501a of the internal revenue code 26 u.s.c. 501a, oranynonprofit scientific or', 17214:'educational organization qualified under a state nonprofit organizationstatute. practical application means to manufacture, in the case of a composition or', 17215:'product; to practice, in the case of a process or method; or to operate, in the case of a machine', 17216:'or system; and, in each case, under such conditions as to establish that the invention is being utilized and that', 17217:'its benefits are, to the extent permitted by law or government regulations, available to the public on reasonable terms. subject', 17218:'invention means any invention of the contractor made in the performance of work under a government contract. 27.302 policy. a', 17219:'introduction. in accordance with chapter 18 of title 35, u.s.c. as implemented by 37 cfr part 401, presidential memorandum on', 17220:'government patent policy to the heads of executive departments and agencies dated february 18, 1983, andexecutive order 12591, facilitating accessto', 17221:'science and technologydated april 10, 1987,itis the policy and objective of the government to 1 use the patent system to', 17222:'promote the use of inventions arising from federally supported research or development; 2 encourage maximum participation of industry in federally', 17223:'supported research anddevelopment efforts; 3 ensure that these inventions are used in a manner to promote free competition and enterprise', 17224:'without unduly encumbering future research and discovery; 4 promote the commercialization and public availability of the inventions made in the', 17225:'united states by united states industry and labor; 5 ensure that the government obtains sufficient rights in federally supported inventions', 17226:'to meet the needs of the government and protect the public against nonuse or unreasonable use of inventions; and 6', 17227:'minimize the costs of administering patent policies. b contractor right to elect title. 1 generally,pursuant to 35 u.s.c. 202 and', 17228:'the presidential memorandum and executive order cited in paragraph a ofthis section, each contractormay, afterrequired disclosure to the government, elect', 17229:'to retain title to any subject invention. 2 a contract may require the contractor to assign to the government title', 17230:'to any subject invention i when the contractor is not located in the united states or does not have a', 17231:'place of business located in the united states or is subject to the control of a foreign government see 27.303e1i;', 17232:'ii in exceptional circumstances, when an agency determines that restriction or elimination of the right to retain title in any', 17233:'subject invention will better promote the policy and objectives of chapter 18 of title 35, u.s.c. and the presidential memorandum;', 17234:'iii when a government authority, that is authorized by statute orexecutive order to conduct foreign intelligence or counterintelligence activities, determines', 17235:'that the restriction or elimination of the right to retain title to any subject invention is necessary to protect the', 17236:'security of such activities; federal acquisition regulation iv when the contract includes the operation of a governmentowned, contractoroperated facility of', 17237:'the department of energy doe primarily dedicated to the department’s naval nuclear propulsion or weaponsrelated programs and all funding agreement', 17238:'limitations under 35 u.s.c. 202iv for agreements with small business concerns and nonprofit organizations are limited to inventions occurring underthe', 17239:'above twoprograms; or v pursuant to statute or in accordance with agency regulations. 3 when the government has the right', 17240:'to acquire title to asubject invention, the contractor may, nevertheless, request greater rights to a subject invention see 27.3041c. 4', 17241:'consistent with 37 cfr part 401,when acontract with a small business concern or nonprofitorganization requires assignment of title to the', 17242:'government based on the exceptional circumstances enumerated in paragraph b2ii or iii of this section for reasons ofnationalsecurity, the contract', 17243:'shall still providethe contractor with theright to elect ownership to any subject invention that i is not classified by the', 17244:'agency; or iiisnot limited from dissemination bythe doe within6 months from the date it is reported to theagency. 5 contracts', 17245:'insupport ofdoe’s naval nuclear propulsion program areexempted from this paragraphb. 6 when a contract involves a series of separate task', 17246:'orders, an agency may structure the contract to apply the exceptions at paragraph b2ii or iii of this section to', 17247:'individual task orders. c government license. the government shall have at least a nonexclusive, nontransferable, irrevocable, paidup license to practice,', 17248:'or have practiced for or on behalf of the united states, any subject invention throughout the world. the government may', 17249:'require additional rights in order to comply with treaties or other international agreements. in such case, these rights shall be', 17250:'made a part of the contract see 27.303. d government right to receive title. 1 in addition to the right', 17251:'to obtain title to subject inventions pursuant to paragraph b2i through v of this section, the government has the right', 17252:'to receive title to an invention i if the contractor has not disclosed the invention within the time specified in', 17253:'the clause; or ii in any country where the contractor a does not elect to retain rights or fails to', 17254:'elect to retain rights to the invention within the time specified in the clause; b has not filed a patent', 17255:'or plant variety protection application within the time specified in the clause; c decides not to continue prosecution of a', 17256:'patent or plant variety protection application, pay maintenance fees, or defend in a reexamination or opposition proceeding on the patent;', 17257:'or d no longer desires to retain title. 2 for the purposes of thisparagraph, filing in aeuropeanpatent office regionor under', 17258:'the patent cooperation treaty constitutes election in the countries selected inthe applications. e utilization reports. the government has the right', 17259:'to require periodic reporting on how any subject invention is being used by the contractor or its licensees or assignees.', 17260:'in accordance with 35 u.s.c. 2025 and 37 cfr part 401, agencies shall not disclose such utilization reports to persons', 17261:'outside the government without permission of the contractor. contractors should mark as confidential/proprietary any utilization report to help prevent inadvertent', 17262:'release outside the government. f marchin rights. 1 pursuantto 35 u .s.c. 203, agencies have certainmarchin rights that requirethe contractor,', 17263:'an assignee, or exclusive licensee of a subject invention to grant a nonexclusive, partially exclusive, or exclusive license in any', 17264:'field of useto responsible applicants, upon termsthat arereasonable under the circumstances. if the contractor, assignee or exclusive licensee of a', 17265:'subject invention refuses to grant such a license, the agency can grant the license itself. marchin rights may be exercised', 17266:'only if the agency determines that this action is necessary ibecausethe contractor orassignee has nottaken, or is not expected to', 17267:'take within a reasonable time, effective steps to achieve practical application of the subject invention in the fields of use;', 17268:'iito alleviate health or safety needs that are not reasonably satisfied by the contractor, assignee, or their licensees; iii to', 17269:'meet requirements for public use specified by federal regulationsandthese requirements are notreasonably satisfied by the contractor, assignee, orlicensees; or iv', 17270:'because the agreement required by paragraph g of this section has neither been obtained nor waived, or because a licensee', 17271:'of the exclusive right to use or sell any subject invention in the united states is in breach of its', 17272:'agreement obtained pursuant to paragraph g of this section. 2 the agency shall not exercise its marchin rights unless the', 17273:'contractor has been provided a reasonable time to present facts and show cause why the proposed agency action should not', 17274:'be taken. the agency shall provide the contractor an opportunity to dispute or appeal the proposed action, in accordance with', 17275:'27.3041g. subpart 27.3 patent rights under government contracts 27.303 g preference for united states industry. in accordance with 35 u.s.c.', 17276:'204, no contractor that receives title to any subject invention and no assignee of the contractor shall grant to any', 17277:'person the exclusive right to use or sell any subject invention in the united states unless that person agrees that', 17278:'any products embodying the subject invention or produced through theuse of the subject invention will be manufactured substantially in the', 17279:'united states. however, in individual cases,the requirement for this agreement may be waived by the agency upon a showing by', 17280:'the contractor or assignee that reasonable but unsuccessful efforts have been made to grant licenses on similar terms topotentiallicensees that', 17281:'would be likely to manufacture substantially in the united states or that under the circumstances domestic manufacture is not commercially', 17282:'feasible. h special conditionsfornonprofit organizations’ preference for small business concerns. 1 nonprofit organization contractors are expected to use reasonable effortsto', 17283:'attract small business licensees see paragraph i4 ofthe clause at 52.22711, patentrightsownership by the contractor. what constitutes reasonable effortsto attract', 17284:'small business licensees willvary with the circumstances and thenature, duration, and expense of efforts needed tobring the invention tothe market.', 17285:'2 small business concerns thatbelievea nonprofit organizationis not meeting itsobligations under the clause may report the matter to the secretary', 17286:'of commerce. tothe extent deemed appropriate, the secretary ofcommercewill undertake informal investigationof the matter, and may discuss or negotiate with', 17287:'the nonprofit organization ways to improve itsefforts to meet its obligationsunder theclause. however, in no eventwill the secretary ofcommerceintervene in', 17288:'ongoing negotiations or contractor decisions concerning the licensing of a specific subject invention. these investigations, discussions, and negotiations involving the', 17289:'secretary of commerce will be in coordination with other interested agencies, including the small business administration. in the case of', 17290:'a contract for the operation of a governmentowned, contractoroperatedresearchor productionfacility, the secretary of commerce willcoordinate withthe agencyresponsible for the facilityprior', 17291:'to any discussions or negotiations with thecontractor. iminimum rights tocontractor. 1 when the government acquires title to a subject invention,', 17292:'the contractor is normally granteda revocable,nonexclusive,paidup licenseto that subject invention throughout theworld. the contractor’s license extends to any of itsdomestic', 17293:'subsidiaries and affiliates within the corporatestructureof which the contractor is a part and includes the right to grant sublicenses to', 17294:'the extent the contractor was legally obligated to do so at the time of contract award. the contractingofficer shall approve', 17295:'or disapprove, in writing, any contractor requestto transfer itslicenses. no approvalis necessarywhen the transfer is to the successor of thatpart', 17296:'of thecontractor’s businessto which the subjectinvention pertains. 2 in responseto a third party’sproper application for an exclusive license,the contractor’s domestic', 17297:'license may be revoked or modified to the extent necessary to achieve expeditious practical application of the subject invention. the', 17298:'application shall be submitted in accordance with the applicable provisions in 37 cfr part 404 and agency licensing regulations. the', 17299:'contractor’s license will not berevoked in that field of use orthe geographical areasin which the contractor has achieved practical application', 17300:'and continues to make the benefits of the subject invention reasonably accessible to thepublic. thelicense in any foreign country may', 17301:'be revoked ormodified tothe extent the contractor,its licensees, or itsdomestic subsidiaries or affiliates have failedto achieve practical application in that', 17302:'country. seethe procedures at 27.3041f. j confidentiality of inventions. publishing information concerning an invention before a patent application is filed', 17303:'on a subject invention may createa bar to a valid patent. toavoid thisbar, agenciesmay withholdinformationfrom the public that discloses any', 17304:'invention in which the government owns or may own a right, title, or interest including a nonexclusive license see 35', 17305:'u.s.c. 205 and 37 cfr part 401. agencies may only withhold information concerning inventions for a reasonable timein order for', 17306:'a patentapplication to be filed. once filed in any patent office, agenciesare not requiredto release copies of any document that', 17307:'is a part of a patent application for those subject inventions. see also 27.3054. 27.303contract clauses. a 1 insert a', 17308:'patent rights clause in all solicitations and contracts for experimental, developmental, or research work as prescribed in this section. 2', 17309:'this section also applies to solicitations or contracts for construction work or architectengineer services that include i experimental, developmental, or', 17310:'research work; iitest and evaluationstudies; or iii the design of a government facility that may involve novel structures, machines, products,', 17311:'materials, processes, or equipment including construction equipment. federal acquisition regulation 3 the contractingofficer shall not include apatent rights clause insolicitationsor', 17312:'contracts for constructionworkor architectengineer services that call for or can be expected to involve only standard types of construction standard', 17313:'types of construction are those involving previously developed equipment, methods, and processes and in which the distinctive features include only', 17314:'ivariations insize,shape, or capacity of conventional structures; or ii purely artistic or aesthetic as distinguished from functionally significant architectural configurations', 17315:'and designs of both structural and nonstructural members or groupings, whether or not they qualify for design patent protection. b', 17316:'1 unless an alternative patent rights clause is used in accordance with paragraph c, d, or e of this section,', 17317:'insert the clause at 52.22711, patent rightsownership bythe contractor. 2 to the extent the information is not requiredelsewhere in the', 17318:'contract, and unless otherwisespecified by agency supplemental regulations, the contracting officer may modify 52.22711e or otherwise supplement the clause to', 17319:'require the contractor to do one or more of the following: i provide periodic but not more frequently than annually', 17320:'listings of all subject inventions required to be disclosed during the period covered by the report. ii provide a report', 17321:'prior to the closeout of the contract listing all subject inventions or stating that there were none. iii providethe filing', 17322:'date,serialnumber, title, patent numberand issue date for anypatent application filedon any subject invention inany country or, upon request, copies of', 17323:'any patent application so identified. iv furnish the government an irrevocable power to inspect and make copies of the patent', 17324:'application file when a government employeeis a coinventor. 3 use the clause with its alternate i if the government must', 17325:'grant a foreign government a sublicense in subject inventions pursuantto a specified treaty orexecutive agreement. the contracting officer may modify', 17326:'alternate i,if the agency head determines, at contract award, that it would be in the national interest to sublicense foreign', 17327:'governments or internationalorganizations pursuant toany existing or future treaty oragreement. when necessary to effectuate a treaty or agreement, alternate i', 17328:'may be appropriately modified. 4 use the clause withits alternate ii in contractsthat may be affected by existingor future treaties', 17329:'or agreements. 5 use the clause withits alternate iii in contracts with nonprofit organizations for the operationof agovernmentowned facility. 6', 17330:'if the contract is for theoperation of a governmentowned facility, the contracting officermay usethe clause with itsalternate iv. 7 if', 17331:'the contract is for the performance of services at a government owned and operated laboratory or at a government owned', 17332:'and contractor operated laboratory directed by the government to fulfill the government’sobligations under a cooperative research and development agreement crada', 17333:'authorized by 15 u.s.c. 3710a, the contracting officer may use the clausewith its alternate v. since this provision is consideredan', 17334:'exercise ofan agency’s exceptional circumstances authority, the contracting officer must complywith 37 cfr 401.3e and 401.4. c insert a patent', 17335:'rights clause in accordance with the procedures at 27.3042 if the solicitation or contract is being placed on behalf of', 17336:'another government agency. d insert a patent rights clause in accordance with agency procedures if the solicitation or contract is', 17337:'for dod, doe, or nasa,and the contractor is other than asmall business concern or nonprofit organization. e 1 except as', 17338:'provided in paragraph e2 of this section, and after compliance with the applicable procedures in 27.3041b,the contracting officer mayinsert the', 17339:'clauseat 52.22713, patent rightsownership by the government, or a clause prescribed by agency supplemental regulations, if i the contractor is', 17340:'not located in the united states or does not have a place of business located in the united states or', 17341:'is subject to the control of a foreign government; ii there are exceptional circumstances and the agency head determines that', 17342:'restriction or elimination of the right to retain title to any subject invention will better promote the policy and objectives', 17343:'of chapter 18 of title 35 of the united states code; iii a government authority that is authorized by statute', 17344:'or executive order to conduct foreign intelligence or counterintelligence activities, determines that restriction or elimination of the right to retain', 17345:'any subject invention is necessary to protect the security of such activities; or iv the contract includes the operation of', 17346:'a governmentowned, contractoroperated facility of doe primarily dedicated to that department’s naval nuclear propulsion orweapons related programs. 2 if an', 17347:'agency exercises the exceptions at paragraph e1ii or iii of this section in a contract with a small business concern', 17348:'or a nonprofit organization,the contracting officer shall use the clauseat 52.22711 with only those modifications subpart 27.3 patent rights under', 17349:'government contracts 27.3041 necessary to address the exceptional circumstances and shall include in the modified clause greater rights determinations procedures', 17350:'equivalent to those at 52.22713b2. 3 when using the clause at 52.22713, patent rightsownership bythe government, thecontracting officer may supplement', 17351:'the clause to require the contractor to i furnish a copy of each subcontract containing a patent rights clause but', 17352:'if a copy of a subcontract is furnished under another clause, a duplicate shall not be requested under the patent', 17353:'rights clause; iisubmit interim and finalinvention reports listing subjectinventions and notifyingthe contracting officer of all subcontracts awarded for experimental, developmental,', 17354:'or research work; iii providethe filing date,serialnumber, title, patent number, and issuedate for any patent application filed on any subject', 17355:'invention inany country or, upon specific request, copies ofany patent application so identified; and iv submit periodic reports on the', 17356:'utilization of a subject invention. 4 use the clause at 52.22713 with its alternate i if i the government must', 17357:'grant a foreign government a sublicense in subject inventions pursuant to a treaty or executive agreement; or ii the agency', 17358:'head determines, at contract award, that it would be in the national interest to sublicense foreign governments or international organizationspursuant', 17359:'to any existing orfuture treatyor agreement. if other rights are necessary to effectuate any treaty oragreement, alternate i may be', 17360:'appropriately modified. 5 use the clause at 52.22713with its alternate iiin the contractwhen necessary to effectuate an existing or future', 17361:'treaty or agreement. 27.304 procedures. 27.3041 general. a status as small business concern or nonprofit organization. if an agency has', 17362:'reason to question the size or nonprofit statusof the prospective contractor,the agency may require the prospectivecontractor to furnish evidence of', 17363:'its nonprofit statusor may filea sizeprotest inaccordancewith far 19.302. b exceptions. 1 before using any of the exceptions under 27.303e1', 17364:'in a contract with a small business concern or a nonprofit organization and before using theexception of 27.303e1ii for anycontractor,', 17365:'the agency shall followthe applicable procedures at 37 cfr 401. 2 a small business concernor nonprofit organization is entitled to', 17366:'an administrative review of the useof the exceptions at 27.303e1i through e1iv in accordance with agency procedures and 37 cfr', 17367:'part 401. c greater rights determinations. whenever the contract contains the clause at 52.22713, patent rightsownership by the government, or', 17368:'a patent rights clause modified pursuant to 27.303e2, the contractor or an employeeinventor of the contractor after consultation with the', 17369:'contractor may request greater rights to an identified invention within the period specified in the clause. the contractingofficer may grant', 17370:'requests for greater rights if the contracting officer determines that the interests of the united states and the general public', 17371:'will be better served. in making these determinations, the contracting officer shall consider at least the following objectives see37 cfr', 17372:'401.3b and 401.15: 1 promoting the utilization of inventions arising from federally supported research and development. 2 ensuring that inventions', 17373:'are used in a manner to promote full and open competition and free enterprise without unduly encumbering futureresearchand discovery. 3', 17374:'promotingpublicavailabilityof inventionsmade in the united states by united states industry and labor. 4 ensuring that the government obtains sufficient rights', 17375:'in federallysupported inventionsto meet the needsof the government and protect the public against nonuse or unreasonable use of inventions. d', 17376:'retention of rights by inventor. if the contractor elects not to retain title to a subject invention, the agency may', 17377:'consider and, after consultation with the contractor, grant requests for retention ofrights by the inventor. retention of rightsby the inventor', 17378:'will be subject to the conditions in paragraphs d except paragraph d1i, e4, f, g, and h of the clause', 17379:'at 52.22711, patent rightsownership by the contractor. e government assignment to contractor of rights in government employees’ inventions. when a', 17380:'government employee is a coinventor of aninvention made under a contract with asmall business concern or nonprofit organization, the agency', 17381:'employing the coinventor may license or assign whatever rights it may acquire in the subject invention from its employee to', 17382:'thecontractor, subject at least tothe conditions of 35 u.s.c. 202204. f revocation or modification of contractor’s minimum rights. before revokingor', 17383:'modifying the contractor’s license in accordance with 27.302i2, the contracting officer shall furnish the contractor a written notice of intention', 17384:'to revoke 27.3042 federal acquisition regulation or modify the license. the agency shall allow the contractor at least 30 days', 17385:'or another time as may be authorized for goodcause by the contracting officer after the notice toshow cause why the', 17386:'license should not be revoked or modified. the contractor has the right to appeal, in accordance with applicable regulations in', 17387:'37 cfr part 404 and agency licensing regulations, any decisions concerning the revocation or modification. g exercise of marchin rights.', 17388:'when exercising marchin rights, agencies shall follow the procedures set forth in 37 cfr 401.6. h licenses and assignments under', 17389:'contracts with nonprofit organizations. if the contractor is a nonprofit organization, paragraph i of the clause at 52.22711 provides that', 17390:'certain contractor actions require agency approval. 27.3042 contracts placed by or for other government agencies. the following procedures apply unless', 17391:'an interagency agreement provides otherwise: a when a government agency requests another government agency to award a contract on its', 17392:'behalf, the request should explain any special circumstances surrounding the contract and specify the patent rights clause to be used.', 17393:'the clause should beselected and modified,if necessary, in accordance with the policies and procedures of this subpart. if, however,the request', 17394:'states that a clause of the requesting agency is required e.g., because of statutory requirements, a deviation, or exceptional circumstances,', 17395:'the awarding agency shall use that clause rather than those of this subpart. 1 if the request states that an', 17396:'agency clause is required and the work to be performed under the contract is not severable and isfunded wholly or', 17397:'in part by the requesting agency, theninclude the requestingagency clause and no other patent rights clause in the contract. 2', 17398:'if the request states that an agency clause is required, and the work to be performed under the contract is', 17399:'severable, then the contracting officer shall assure that the requesting agency clause applies only to that severable portion ofthe work', 17400:'and that the work for the awarding agency is subject to the appropriate patent rights clause. 3 if the request', 17401:'states that a requesting agency clause is not required in any resulting contract, the awarding agency shall use the appropriate', 17402:'patentrights clause,if any. b any actionrequiring an agency determination,report, or deviation involved in the use of the requestingagency’s clause is', 17403:'the responsibility of therequesting agency unless the agenciesagreeotherwise. however,the awarding agency may not alter the requesting agency’s clause without prior', 17404:'approval of the requestingagency. c the requesting agency may require, and provide instructions regarding, the forwarding or handling of any', 17405:'invention disclosures or other reporting requirementsof the specifiedclauses. normally, therequesting agency is responsible for the administration of any subject inventions.', 17406:'this responsibility shall be established in advance of awarding any contracts. 27.3043 subcontracts. a thepolicies and proceduresin this subpart apply', 17407:'toallsubcontractsat any tier. b whenever a prime contractor or a subcontractor considers including a particular clause in a subcontract to', 17408:'be inappropriate or a subcontractor refuses to accept the clause, the contracting officer, in consultation with counsel, shall resolve the', 17409:'matter. c it is government policy that contractors shall not use their ability to award subcontracts as economic leverage to', 17410:'acquire rights for themselves in inventions resulting from subcontracts. 27.3044 appeals. a thedesignated agency officialshallprovide the contractorwith a written statement', 17411:'of the basis, including any relevant facts, for taking any of the following actions: 1 a refusal to grant an', 17412:'extension to the invention disclosure period under paragraph c4 of the clause at 52.22711; 2 a demand for a conveyance', 17413:'of title to the government under 27.302d1i and ii; 3 a refusal to grant a waiver under 27.302g, preference for', 17414:'united states industry; or 4 a refusal to approve an assignment under 27.3041h. b each agency may establish and publish', 17415:'procedures under which any of these actions may be appealed. these appeal procedures should include administrative due process procedures and', 17416:'standards for factfinding. the resolution of any appeal shall consider both the factual and legal basis for the action and', 17417:'its consistency with the policy and objectives of 35 u.s.c. 200206 and 2 10. c to the extentthat any ofthe', 17418:'actionsdescribed in paragraph a of this section are subject toappealunder thecontract disputes statute, the procedures under that statute will satisfy', 17419:'the requirements of paragraph b. subpart 27.3 patent rights under government contracts 27.3052 27.305administration of patent rights clauses. 27.3051 goals.', 17420:'a contracts having a patent rights clause should be so administered that 1 inventions are identified, disclosed, and reported as', 17421:'required by the contract, and elections are made; 2 the rights of the government in subject inventions are established; 3', 17422:'when patent protection is appropriate, patent applications are timely filed and prosecuted by contractors or by the government; 4 the', 17423:'rights of the government in filed patent applications are documented by formal instruments such as licenses or assignments; and 5', 17424:'expeditious commercial utilization of subject inventions is achieved. b if a subject invention is madeunder a contractfunded by more than', 17425:'one agency, at therequest of thecontractor or on their own initiative, the agencies shall designate one agency as responsible for', 17426:'administration of the rights of the government in the invention. 27.3052 administration by the government. a agencies should establish and', 17427:'maintain appropriate followup proceduresto protect thegovernment’s interest and to check that subject inventions are identified and disclosed, and when appropriate,', 17428:'patent applications are filed, and that the government’s rights therein areestablished and protected. followupactivities for contracts thatinclude a clause referenced', 17429:'in 27.3042 should becoordinated with the appropriateagency. b 1thecontractingofficeradministeringthecontractorotherrepresentativespecificallydesignatedinthecontract for this purpose is responsible for receiving invention disclosures, reports, confirmatory', 17430:'instruments, notices, requests, and other documents and information submitted by the contractor pursuant to a patent rights clause. i for', 17431:'other than confirmatory instruments, if the contractor fails to furnish documents or information as called for by the clausewithin thetime', 17432:'required, the contracting officer shall promptly request the contractor to supply therequired documents or information. if thefailurepersists, the contracting officer', 17433:'shall take appropriate action to secure compliance. ii if the contractor does not furnish confirmatory instruments within 6 months after', 17434:'filing each patent application, or within 6 months after submitting the invention disclosure if the application has been previously filed,', 17435:'the contracting officer shall requestthe contractor to supply the requireddocuments. 2 the contractingofficer shall promptly furnish all invention disclosures, reports,confirmatory', 17436:'instruments, notices, requests, and other documents and information relating to patent rights clauses to legal counsel. c contracting activities should', 17437:'establish appropriate procedures to detect and correct failures by the contractor to comply with its obligations under the patent rights', 17438:'clauses, such as failures to disclose and report subject inventions, both during and after contract performance. governmenteffort to review and', 17439:'correct contractor compliance with itspatent rights obligations should be directed primarily toward contracts that are more likely to result in', 17440:'subject inventions significant in number or quality. these contracts include contractsof aresearch, developmental, or experimentalnature;contracts of a large dollar amount;', 17441:'and any other contracts when there is reason to believe the contractor may not be complying with its contractual obligations.', 17442:'other contracts may be reviewed using a spotcheck method, as feasible. appropriate followup procedures and activities may include the investigation', 17443:'or review of selected contracts or contractors by those qualified in patent and technical matters to detect failures to comply', 17444:'with contract obligations. d followup activities should include, where appropriate, use of government patent personnel 1 to interview agency technicalpersonnel', 17445:'to identify novel developmentsmadein contracts; 2 to review technical reports submitted bycontractors with cognizant agency technical personnel; 3 to checkthe', 17446:'official gazette of the united states patentand trademark office and other sources for patents issued to the contractor in fields', 17447:'related to its government contracts; and 4 to have cognizant government personnel interview contractor personnel regarding work under the contract', 17448:'involved, observe the work on site, and inspect laboratory notebooks and other records of the contractor related to work under', 17449:'the contract. e if a contractor or subcontractor does not have a clear understanding of its obligations under the clause,', 17450:'or its procedures for complying with the clause aredeficient, the contracting officer should explain to the contractor its obligations. the', 17451:'withholding of payments provision if any of the patent rights clause may be invoked if the contractor fails to meet', 17452:'the obligations required by the patents rights clause. significant or repeated failures by a contractor to comply with the patent', 17453:'rights obligation in its contracts shall be documented and made a part of the general file see 4.801c3. 27.3053 federal', 17454:'acquisition regulation 27.3053securing invention rights acquired bythe government. a agencies are responsible for implementingprocedures necessary to protect the government’s interestin', 17455:'subject inventions. when the government acquires the entire right, title, and interest in an invention by contract, the chain of', 17456:'title from the inventor to the government shall be clearly established. this is normally accomplished by an assignment either from', 17457:'each inventor to the contractor and from the contractor to the government, or from the inventor to the government with', 17458:'the consentof the contractor. whenthe government’s rights arelimited to a license, there should be a confirmatory instrument tothat effect. b', 17459:'agencies may, bysupplemental instructions, develop suitable assignments, licenses, and other papers evidencing any rights of the government in patents or', 17460:'patents applications. these instruments should be recorded in the u.s. patent and trademark office see executiveorder 9424, establishing in theunited', 17461:'statespatent office a register of government interests in patents and applications for patents, february 18, 1944. 27.3054protection of invention disclosures.', 17462:'a the government will, to the extent authorized by 35 u.s.c. 205, withhold from disclosure to the public any invention', 17463:'disclosures reported under the patent rights clauses of 52.22711 or 52.22713 for a reasonable time in order for patent applications', 17464:'to be filed. the government will follow the policy in 27.302j regardingprotection of confidentiality. b the government should also use', 17465:'reasonable effortsto withhold from disclosure to the public for a reasonable time other information disclosing a subject invention. this information', 17466:'includes any data delivered pursuant to contract requirements provided that the contractor notifies the agency as to the identity of', 17467:'the data and the subject invention to which it relates at the time of delivery of thedata. this notification shall', 17468:'beprovidedto both thecontracting officer and toany patent representative to which the inventionis reported, if otherthan the contractingofficer. c for more', 17469:'information on protection of invention disclosures, also see 37 cfr 401.13. 27.306 licensing background patentrightsto third parties. a a contract', 17470:'with a small business concern ornonprofit organization shall not contain aprovision allowing the government to require the licensing to third', 17471:'parties of inventions owned by the contractor that are not subject inventions unless the agency head has approved and signed', 17472:'a written justification in accordance with paragraph b of this section. the agency head may not delegate this authority and', 17473:'may exercise the authority only if it is determined that the 1 use of the invention by others is necessary', 17474:'for the practice of a subject invention or for the use of a work object of the contract; and 2', 17475:'action is necessary to achieve the practical application of the subject invention or work object. b any determination will be', 17476:'on the record after an opportunity for a hearing, and the agency shall notify the contractor of the determination by', 17477:'certified or registered mail. the notification shall include a statement that the contractor must bring any action for judicial review', 17478:'of the determination within 60 days after the notification. subpart 27.4 rights in data and copyrights 27.403 subpart 27.4 rights', 17479:'in data and copyrights 27.400scope of subpart. this subpart sets forth policies and procedures regarding rights in data and copyrights,', 17480:'and acquisition of data. the policy statement in 27.402 applies to all executive agencies. the remainder of the subpart applies', 17481:'to all executive agencies except the department of defense. 27.401definitions. as used in this subpart data means recorded information, regardless', 17482:'of form or the media on which it may be recorded. the term includes technical data and computer software. the', 17483:'term does not include information incidental to contract administration, such as financial, administrative, cost or pricing, or management information. form,', 17484:'fit, and function data means data relating to items,components, or processes that are sufficientto enable physical and functionalinterchangeability, and data', 17485:'identifying source, size, configuration,matingand attachmentcharacteristics, functional characteristics, and performance requirements. for computer software it means data identifying source, functional characteristics,', 17486:'and performance requirements, but specifically excludes the source code, algorithms, processes, formulas, and flow charts of the software. limited rights', 17487:'means the rights of the government in limited rights data as set forth in a limited rights notice. limited rights', 17488:'data means data, other than computer software, that embody trade secrets or are commercial or financial and confidential or privileged,', 17489:'to the extent that such data pertain to items, components, or processes developed at private expense, including minor modifications. agencies', 17490:'may, however,adopt the followingalternate definition: limitedrights data means data other than computer software developed at private expense that embody trade', 17491:'secrets or are commercial or financial and confidential or privileged see 27.4042b. restricted computer software means computer software developed at', 17492:'private expense and that is a trade secret, is commercial or financial and confidential or privileged, or is copyrighted computer', 17493:'software, including minor modifications of the computer software. restricted rights means the rights of the government in restricted computer software', 17494:'as set forth in a restricted rights notice. unlimited rights means the rights of the government to use, disclose, reproduce,', 17495:'prepare derivative works, distribute copiesto the public, andperformpublicly and display publicly, in anymanner and for any purpose,and to have orpermit', 17496:'others to do so. 27.402 policy. a to carry out their missions and programs, agencies acquire or obtain accessto many', 17497:'kinds ofdata produced during or used in the performance of their contracts. agencies require data to 1 obtain competition among', 17498:'suppliers; 2 fulfill certain responsibilities for disseminating and publishing the results of their activities; 3 ensure appropriate utilization of the', 17499:'results of research, development, and demonstration activities including the dissemination of technical information to foster subsequent technological developments; 4 meet', 17500:'other programmatic and statutory requirements; and 5 meet specialized acquisition needs and ensure logistics support. b contractors may have proprietary', 17501:'interests in data. in order to prevent the compromise of these interests, agencies shall protect proprietary data from unauthorized use', 17502:'and disclosure. the protection of such data is also necessary to encourage qualified contractors to participate in and apply innovative', 17503:'concepts to government programs. in light of these considerations, agencies shall balance the government’s needsandthe contractor’s legitimate proprietary interests. 27.403data', 17504:'rightsgeneral. all contracts that require data to be produced, furnished, acquired, or used in meeting contract performance requirements, must contain', 17505:'terms that delineate the respective rights and obligations of the government and the contractor regarding the use, reproduction, and disclosure', 17506:'of that data. data rights clauses do not specify the type, quantity or quality of data that is to be', 17507:'delivered, but only the respective rights of the government and the contractor regarding the use, disclosure, or reproduction of the', 17508:'data. accordingly, thecontract shall specifythe datato bedelivered. federal acquisition regulation 27.404basic rights in data clause. this section describes the operation', 17509:'of the clause at 52.22714, rights in datageneral, and also the use of the provision at 52.22715, representation of limited', 17510:'rights data and restricted computer software. 27.4041 unlimited rights data. the government acquires unlimited rights in the following data except', 17511:'for copyrighted works as provided in 27.4043: a data first produced in the performance of a contract except to the', 17512:'extent the data constitute minor modifications to data that are limited rights data or restricted computer software. b form, fit,', 17513:'and function data delivered under contract. c data except as may be included with restricted computer software that constitute manuals', 17514:'or instructional and training material for installation, operation, or routine maintenance and repair of items, components, or processes delivered or', 17515:'furnished for use under a contract. d all other data delivered under the contract other than limited rights data or', 17516:'restricted computer software see 27.4042. 27.4042limited rights data and restricted computer software. a general. the basic clause at 52.22714, rights', 17517:'in datageneral, enables the contractor to protect qualifying limited rights data and restricted computer software by withholding the data from', 17518:'the government and instead delivering form, fit, and function data. b alternate definition of limited rights data. for contracts that', 17519:'do not require the development, use, or delivery of items, components, or processes that are intended to be acquired by', 17520:'or for the government, an agency may adopt the alternate definition of limited rights data set forth in alternate i', 17521:'to the clause at 52.22714. the alternate definition does not require that the data pertain to items, components, or processes', 17522:'developed at private expense; but rather that the data were developed at private expense and embody a trade secret or', 17523:'are commercial or financial and confidential or privileged. c protection oflimited rightsdata specified for delivery. 1 the clause at 52.22714', 17524:'with its alternate ii enables the government to require delivery of limited rights dataratherthan allow the contractor to withhold the', 17525:'data. to obtain delivery, thecontract mayidentify and specify data to be delivered, or the contracting officermay require, by written request', 17526:'during contract performance, the delivery of data that has been withheld or identified to be withheld under paragraph g1 of', 17527:'the clause. in addition, the contract may specifically identify data that are not to be delivered under alternate ii or', 17528:'which, if delivered, will be delivered with limited rights. the limited rights obtained by the government are set forth in', 17529:'the limited rights notice contained in paragraph g3 of alternateii. agencies shall not, without permission of the contractor, use limited', 17530:'rights data for purposes of manufacture or disclose the data outside the government except as set forth in the notice.', 17531:'any disclosure by the government shall be subject to prohibition against further use and disclosure by the recipient. the following', 17532:'are examples of specific purposes that may be adopted by an agency in its supplement and added to the limited', 17533:'rights notice of paragraph g3 of alternate ii of the clause: i use except for manufacture by support service contractors.', 17534:'ii evaluation by nongovernment evaluators. iii use except for manufacture byother contractors participatingin thegovernment’s program ofwhich the specific contract is', 17535:'a part. iv emergencyrepairor overhaul work. v release to a foreign government, or its instrumentalities, if required to serve the', 17536:'interests of the u.s. government, for information or evaluation,or for emergency repair or overhaulwork by the foreign government. 2 the', 17537:'provision at 52.22715, representation of limited rights data and restricted computer software, helps thecontracting officer todetermine whether the clause at', 17538:'52.22714 should be used with its alternate ii. this provision requests that an offeror statewhetherlimited rightsdata are likely to be', 17539:'delivered. where limited rights data areexpected to be delivered, use alternate ii. where negotiations are based on an unsolicited proposal,', 17540:'the need for alternate ii of the clause at 52.22714 should be addressed during negotiations or discussions, and if alternate', 17541:'ii was not included initially it may be added by modification, if needed, during contract performance. 3 if data that', 17542:'would otherwise qualify as limited rights data is delivered as a computer database, the data shall be treated as limited', 17543:'rights data, rather than restricted computer software, for the purposes of paragraph g of the clause at 52.22714. d protection', 17544:'of restricted computer softwarespecified for delivery. 1 alternate iii of the clause at 52.22714, enables the government to require delivery', 17545:'of restricted computer software rather than allow the contractor to withhold such restrictedcomputer software. to obtaindelivery of restricted computer softwarethe', 17546:'contracting officershall subpart 27.4 rights in data and copyrights 27.4043 i identify and specify the deliverable computer software in the', 17547:'contract; or ii require by written request during contract performance, the delivery of computer software that has been withheld or', 17548:'identified to be withheld under paragraph g1 of the clause. 2 in considering whether to use alternateiii, contracting officers should', 17549:'note that, unlike other data, computer softwareis also an end item initself. thus, the contractingofficer shall usealternate iii if delivery', 17550:'ofrestricted computer software is required to meet agency needs. 3 unless otherwise agreed see paragraph d4 of this subsection, the', 17551:'restricted rights obtained by the government are set forth in the restricted rights notice contained in paragraph g4 alternate iii.', 17552:'such restricted computer software will not be used or reproduced by the government, or disclosed outside the government, except that', 17553:'the computer software may be i used or copied for use with the computers for which it was acquired, including', 17554:'use at any government installation to which the computers may be transferred; ii used or copied for use with a', 17555:'backup computer if any computer for which it was acquired is inoperative; iii reproduced for safekeeping archives or backup purposes;', 17556:'iv modified, adapted, or combined with other computer software, provided that the modified, adapted, or combined portions of the derivative', 17557:'software incorporating any of the delivered, restricted computer software shall be subject to the same restricted rights; v disclosed to', 17558:'and reproduced for use by support service contractors or their subcontractors, in accordance with paragraphs 3i through iv of this', 17559:'section; and vi used or copied for use with areplacement computer. 4 the restricted rights set forth in paragraph d3', 17560:'of this subsection are the minimum rights the government normally obtains with restricted computer software and will automatically apply when', 17561:'such software is acquired under the restricted rights notice of paragraph g4 of alternate iii of the clause at 52.22714.', 17562:'however, the contracting officer may specifydifferent rights inthe contract, consistent with the purposes and needs for whichthe softwareis tobe acquired.', 17563:'for example, the contracting officer should consider any networking needs or any requirementsforuse ofthe computer softwarefrom remote terminals. also,in addressing', 17564:'such needs, the scope of therestricted rightsmay be different for the documentation accompanying the computer software than for the programs', 17565:'and databases. any additions to, or limitations on, the restricted rights set forth in the restricted rights notice of paragraph', 17566:'g4 of alternate iii of the clause at 52.22714 shall be expressly stated in the contract or in a collateral', 17567:'agreement incorporated in and made part of the contract, and the notice modified accordingly. 5 the provision at 52.22715, representation', 17568:'of limited rights data and restricted computer software, helps thecontracting officer determinewhetherto use theclause at 52.22714 with its alternate iii.', 17569:'this provision requests that anofferor state whether restricted computer softwareis likely to be delivered under the contract. inaddition, theneedfor alternateiiishouldbe', 17570:'addressed duringnegotiations ordiscussions withan offeror, particularlywhere negotiationsare based on an unsolicited proposal. however, ifalternate iii is notused initially, it may', 17571:'be added bymodification,if needed, during contract performance. 27.4043 copyrighted works. a data first produced in the performance of a contract.', 17572:'1 generally, the contractor must obtain permission ofthe contracting officerprior to assertingrights in any copyrighted work containing data first produced', 17573:'in the performance ofa contract. however, contractors are normally authorized, without prior approval of the contracting officer, to assertcopyright in', 17574:'technical or scientific articles based on or containing such data that is published in academic, technical or professional journals, symposia', 17575:'proceedings and similar works. 2 the contractor must make a written request for permission to assert its copyright in works', 17576:'containing data first produced under the contract. in its request, the contractor should identify the data involved or furnish copies', 17577:'of the data for which permission is requested, as well as a statement as to the intended publication or dissemination', 17578:'media or other purpose for which the permission isrequested. generally, a contracting officer should grant the contractor’s request when copyright', 17579:'protection will enhance the appropriate dissemination or use of the data unless the idata consistof areport that represents theofficial views', 17580:'ofthe agencyor that the agencyis required by statute to prepare; ii data are intended primarily for internal use by the', 17581:'government; iii data are of the type that the agency itself distributes to the public under an agency program; iv', 17582:'government determines that limitation on distribution of the data is in the national interest; or 27.4044 federal acquisition regulation v', 17583:'government determines that the data should be disseminated without restriction. 3 alternate iv of the clause at 52.22714 provides a', 17584:'substitute paragraph c1 granting permission for contractors to assert copyright in any data first produced in the performance of the', 17585:'contract without the need for any further requests. except for contracts for management or operation of government facilities and contracts', 17586:'and subcontracts in support of programs being conducted at those facilities or where international agreements require otherwise, alternate iv shall', 17587:'be used in all contracts for basic or applied research to be performed solely by colleges and universities. alternate iv', 17588:'shall not be used in contracts with colleges and universities if a purpose of the contract is for development of', 17589:'computer software for distribution to the public including use in solicitations by or on behalf of the government. in addition,', 17590:'alternate iv may be used in other contracts if an agency determines that it is not necessary for a contractor', 17591:'to request further permission to assert copyright in data first produced in performance of thecontract. thecontracting officer may exclude any', 17592:'data, or items or categories of data, from the provisions of alternate iv by expressly so providing in the contract', 17593:'or by adding a paragraph d 4 to the clause, consistent with 27.4044b. 4 pursuant to paragraph c1 of the', 17594:'clause at 52.22714, the contractor grants the government a paidup nonexclusive, irrevocable, worldwide license to reproduce, prepare derivative works, distribute', 17595:'to the public, perform publicly and display publicly by or on behalf of the government, for all data other than', 17596:'computer software first produced in theperformance of a contract. for computersoftware, the scope of thegovernment’s license includes all ofthe above', 17597:'rights except theright to distributeto thepublic. agencies may also obtain a licenseof different scope if the contractingofficer determines, after consulting', 17598:'with legal counsel, such a license will substantially enhance the dissemination of any data first produced under the contract or', 17599:'if such a license is required to comply with international agreements. if an agency obtains a different license, the contractor', 17600:'shall clearlystate the scope of thatlicense in a conspicuous place on the medium on which thedata is recorded. for example,', 17601:'if thedata is delivered as a report, the termsof the license shall bestated onthe cover, or first page, of the', 17602:'report. 5 the clause requires thecontractor to affix the applicable copyright notices of 17 u.s .c. 401 or 4 02,', 17603:'and acknowledgment of government sponsorship, including the contract number to data when it asserts copyright in data. failure to do', 17604:'so could result in such data being treated as unlimited rights data see 27.4045b. b data not first produced in', 17605:'the performance of a contract. 1 contractors shall not deliver any data that is not first produced under the contract', 17606:'without either i acquiring for or granting to the government a copyright license for the data; or iiobtaining permission from', 17607:'the contracting officer to do otherwise. 2 the copyright license the government acquires for such data will normally be of', 17608:'the same scope as discussed in paragraph a4 of this subsection, and is set forth in paragraph c2 of the', 17609:'clause at 52.22714. however, agencies may obtain a licenseof different scope if the agency determines, after consultation withits legalcounsel,that suchdifferent', 17610:'license will not be inconsistent with the purpose ofacquiring the data. if alicense of a different scope is acquired, it', 17611:'must be so stated in the contract and clearly set forth in a conspicuous place on the data when delivered', 17612:'to the government. if the contractor delivers computer software not first produced under the contract, the contractor shall grant the', 17613:'government the license set forth in paragraph g4 of alternate iii if included in the clause at 52.22714, or a', 17614:'license agreed to in a collateral agreement made part of the contract. 27.4044contractor’s release, publication, and useof data. a in', 17615:'contracts for basic or applied research with universities or colleges, agencies shall not place any restrictions on the conduct of', 17616:'or reporting on the results of unclassified basic or applied research, except as provided in applicable u.s. statutes. however, agencies', 17617:'may restrict the releaseor disclosure of computer software that is or is intended to be developed to the point of', 17618:'practical application including for agency distribution under established programs. this is not considered a restriction on the reporting of the', 17619:'results of basic or applied research. agencies may also preclude a contractor from asserting copyright in any computer software for', 17620:'purposes of established agency distribution programs, or where required to accomplish the purpose for which the software is acquired. b', 17621:'except for theresults of basic or applied research under contracts withuniversities or colleges, agencies may, to the extent provided in', 17622:'their far supplements, place limitations or restrictions on the contractor’s exercise of its rights in data first produced in the', 17623:'performance of the contract, including a requirement to assign copyright to the government or another party. any of these restrictionsshallbe', 17624:'expressly included in the contract. subpart 27.4 rights in data and copyrights 27.4046 27.4045unauthorized,omitted, orincorrect markings. a unauthorized marking of', 17625:'data. 1 the government has, in accordance with paragraph e of the clause at 52.22714, the right to either return', 17626:'data containing unauthorized markings or to cancel or ignore the markings. 2 agencies shall not cancel or ignore markings without', 17627:'makingwritten inquiryof the contractorand affording the contractor at least 60 days to provide a written justification substantiating the propriety of', 17628:'the markings. i if the contractor fails to respond or fails to provide a written justification substantiating the propriety of', 17629:'the markings within the timeafforded, the government maycancel or ignore the markings. ii if the contractor provides a written justification', 17630:'substantiating the propriety of the markings, the contracting officer shall consider the justification. aif the contracting officer determines that the', 17631:'markings are authorized, thecontractor will beso notified in writing. b if the contracting officer determines, with concurrence of the head', 17632:'of the contracting activity, thatthe markings are not authorized, the contractor will be furnished a written determination which becomes the', 17633:'final agency decision regarding the appropriateness of the markings and the markings will be cancelled or ignored and the data', 17634:'will no longer be made subject to disclosure prohibitions, unless the contractor files suit within 90 days in a court', 17635:'of competent jurisdiction. the markings will not be cancelled or ignored until final resolution of thematter, either by the contracting', 17636:'officers determination becoming the final agency decisionor by final disposition of the matter by court decision if suit is filed.', 17637:'3 the foregoing procedures may be modified in accordance with agency regulations implementing the freedom of information act 5 u.s.c.', 17638:'552 if necessary to respond to a request. in addition, the contractor may bring a claim, in accordance with thedisputes', 17639:'clauseof the contract, thatmay ariseas the result of the government’s actionto remove or ignore any markings on data, unless the', 17640:'action occurs as the result of a final disposition of the matter by a court of competent jurisdiction. b omitted', 17641:'or incorrect notices. 1 data delivered under a contract containing the clause without a limited rights notice or restricted rights', 17642:'notice, and without a copyright notice, will be presumed to have been delivered with unlimited rights, and the government assumesno', 17643:'liability for the disclosure, use, or reproduction ofthe data. however, to the extent thedata has not been disclosed without restriction', 17644:'outsidethe government, thecontractor may, within 6monthsora longer periodapproved by the contracting officer for good cause shown, requestpermission of thecontracting officer', 17645:'tohavethe omitted limited rightsor restricted rights notices, as applicable, placed on qualifying dataat the contractorsexpense. the contracting officer may permit', 17646:'adding appropriate notices if the contractor i identifies the data for which a notice is to be added; ii demonstrates', 17647:'that the omission of the proposed notice was inadvertent; iii establishes that use of the proposed notice is authorized; and', 17648:'iv acknowledges that the government has no liability with respect to any disclosure or use of any such data made', 17649:'prior to the addition of the notice or resulting from the omission of the notice. 2 the contractingofficer may also', 17650:'ipermit correction, at the contractor’sexpense, of incorrect notices ifthe contractor identifies the data on which correction of the notice is', 17651:'to be made, and demonstrates that the correct notice is authorized; or ii correct any incorrect notices. 27.4046inspectionof data at', 17652:'the contractor’s facility. contracting officersmay obtainthe right to inspect data atthe contractor’s facility byuse of the clause at 52.22714 with', 17653:'itsalternate v, which adds paragraph j to provide thatright. agencies may also adopt alternate v for general use. the data', 17654:'subject to inspection may be data withheld or withholdable under paragraph g1 of the clause. inspection may be made by', 17655:'the contracting officer or designeeincludingnongovernmental personnel under the sameconditions asthe contracting officer for thepurpose of verifying a contractor’s assertion regarding', 17656:'the limited rights orrestricted rights status of thedata, or for evaluating work performance under the contract. this right may be', 17657:'exercised up to 3 years after acceptance of all items to be delivered under the contract. the contract may specify', 17658:'data items that are not subject to inspection under paragraph j of the alternate. if the contractor demonstrates to the', 17659:'contractingofficer that therewouldbe a possibleconflictof interestif inspection were made by a particular representative, the contractingofficer shall designate an alternate representative.', 17660:'federal acquisition regulation 27.405 otherdata rights provisions. 27.4051 special works. a the clause at 52.22717, rights in dataspecialworks,is for use', 17661:'in contractsormay be made applicable toportions thereof that are primarily for the production or compilation of data other than limited', 17662:'rights data or restricted computer software for the government’sown use,or when there isa specific need to limit distribution and use', 17663:'of the data or to obtain indemnity for liabilities that may arise out of the content, performance, or disclosure of', 17664:'the data. examples are contracts for 1 the production of audiovisual works, including motion pictures or television recordings with or', 17665:'without accompanying sound, or for the preparation of motion picture scripts, musical compositions, sound tracks, translation, adaptation, and the like;', 17666:'2 histories of the respective agencies, departments, services, or units thereof; 3 surveys of government establishments; 4 works pertaining to', 17667:'the instruction or guidance ofgovernmentofficers and employees in the dischargeof their official duties; 5 the compilation of reports, books, studies,', 17668:'surveys, or similar documents that do not involve research, development, or experimental work; 6 the collection of data containing personally', 17669:'identifiable information such that the disclosure thereof would violate the right of privacy or publicity of the individual to whom', 17670:'the information relates; 7 investigatory reports; 8 the development, accumulation, or compilation of data other than that resulting from research,', 17671:'development, or experimental work performed by the contractor, the early release of which could prejudice followon acquisition activities or agency', 17672:'regulatory or enforcement activities; or 9 the development of computer software programs, where the program i may give a commercial', 17673:'advantage; or ii is agency mission sensitive, and release could prejudice agency mission, programs, or followon acquisitions. b the contract', 17674:'may specify the purposes and conditions including time limitations under which the data may be used, released, or reproduced other', 17675:'than for contract performance. contracts for the production of audiovisual works, sound recordings, etc., may include limitations in connection with', 17676:'talent releases, music licenses, and the like that are consistent with the purposes for which the works are acquired. c', 17677:'paragraph c1ii of the clause, which enables the government to obtain assignment of copyright in any data first produced in', 17678:'the performance of the contract, may be deletedif the contracting officer determines that such assignmentis not needed to further the', 17679:'objectives of the contract. d paragraph e of the clause, which requires the contractor to indemnify the government against any', 17680:'liability incurred as the resultof any violationof trade secrets, copyrights, right of privacy or publicity, or any libelous or otherunlawful', 17681:'matter arising out of or contained in any production or compilation of data that are subject to the clause, may', 17682:'be deleted or limited in scopewhere the contractingofficer determines that, because ofthe nature of the particular data involved, such liability', 17683:'will not arise. e when the audiovisual or other special works are produced to accomplish a public purpose other than', 17684:'acquisition for thegovernment’s ownuse such as for productionanddistribution to the public ofthe worksby other than afederal agency agencies are authorized', 17685:'to modify the clause for use in contracts, with rights in data provisions that meet agency mission needs yet protect', 17686:'free speech and freedom of expression, as well as the artistic license of the creator of the work. 27.4052 existing', 17687:'works. the clause at 52.22718, rights in dataexisting works, is for use in contracts exclusively for the acquisition without modification', 17688:'of existing works such as, motion pictures, television recordings, and other audiovisual works; sound recordings; musical, dramatic, and literary works;', 17689:'pantomimes and choreographic works; pictorial, graphic, and sculptural works; and works of a similar nature. the contract may set forth', 17690:'limitations consistent with the purposes for which the works covered by the contract are being acquired. examples of these limitations', 17691:'are means of exhibition or transmission, time, type of audience, and geographicallocation. however, ifthe contract requires thatworks of the type', 17692:'indicated in this paragraph are to be modifiedthroughediting, translation, oraddition ofsubject matter, etc. rather than purchased in existing form, then', 17693:'see 27.4051. subpart 27.4 rights in data and copyrights 27.4061 27.4053commercial computer software. a when contracting other than from gsa’s', 17694:'multipleaward schedule contracts for the acquisition ofcommercial computer software, no specific contract clause prescribed in this subpart need be used,', 17695:'but the contract shall specifically address the government’s rights to use,disclose, modify, distribute, andreproduce the software. section 12.212 sets forth', 17696:'the guidance for the acquisition of commercial computer software and states that commercial computer software or commercial computer software documentation', 17697:'shall be acquired under licenses customarily provided to the public to the extent the license is consistent with federal law', 17698:'and otherwise satisfies the government’s needs. the clause at 52.22719, commercial computer software license, may be used when there isany', 17699:'confusion as to whether the government’s needs are satisfied or whether a customarycommercial license is consistent with federal law. additional', 17700:'or lesser rights may be negotiated using the guidance concerning restricted rights as set forth in 27.4042d, or the clause', 17701:'at 52.22719. if greater rights than the minimum rights identified in the clause at 52.22719 are needed, or lesser rights', 17702:'are to be acquired, they shall be negotiated and set forth in the contract. this includes any additions to, or', 17703:'limitations on, the rights set forth in paragraph b of the clause at 52.22719 when used. examples of greater rights', 17704:'may be those necessary for networking purposes or use of the software from remote terminals communicating with a host computer', 17705:'where the software is located. if the computer software is to be acquired with unlimited rights, the contract shall also', 17706:'so state. in addition, the contract shall adequately describe the computer programs and/or databases, the media on which it is', 17707:'recorded, and all the necessary documentation. b if the contract incorporates, makes reference to, or uses a vendor’s standard commercial', 17708:'lease, license, orpurchase agreement, the contracting officer shall ensure that theagreement is consistent with paragrapha of this subsection. the contractingofficer', 17709:'should exercise caution inaccepting a vendor’s termsand conditions, since they may be directed to commercial sales and may not be', 17710:'appropriate for government contracts. any inconsistencies ina vendor’s standard commercial agreement shall beaddressed in the contractand the contract terms shall', 17711:'take precedence over thevendor’s standard commercial agreement. if the clause at 52.22719 is used, inconsistencies in the vendor’s standardcommercial agreementregarding', 17712:'the government’sright to use, reproduce or disclose the computer software arereconciled by that clause. c if a prime contractor under', 17713:'a contract containing the clause at 52.22714, rights in datageneral, with paragraph g4 alternate iii in the clause, acquires restricted', 17714:'computer software from a subcontractor at any tier as a separate acquisition for delivery to orforuse onbehalf ofthe government, thecontracting', 17715:'officer may approve any additions to, or limitations on the restricted rights in the restricted rights notice of paragraph g4', 17716:'in a collateral agreement incorporated in and made part of the contract. 27.4054 other existing data. a except for existing', 17717:'works pursuant to 27.4052 or commercial computer software pursuant to 27.4053, no clause contained in this subpart is required to', 17718:'be included in 1 contracts solely for the acquisition of books, periodicals, and other printed items in the exact form', 17719:'in which these items are to be obtained unless reproduction rights are to be acquired; or 2 other contracts that', 17720:'require only existing data other than limited rights data to be delivered and the data are available without disclosure prohibitions,', 17721:'unless reproduction rights to the data are to be obtained. b if the reproduction rights to the data are to', 17722:'be obtained in any contract of the type described in paragraph b1 i or ii of this section, the rights', 17723:'shall be specifically set forth in the contract. no clause contained in this subpart is required to be included in', 17724:'contracts substantially for online data base services in the same form as they are normally available to the general public.', 17725:'27.406acquisition of data. 27.4061 general. a it is the government’spracticeto determine,to the extent feasible, its data requirementsin time for inclusion', 17726:'in solicitations. the data requirements may be subject to revision during contract negotiations. since the preparation, reformatting, maintenance and updating,', 17727:'cataloging, and storage of data represents an expense to both the government and thecontractor, efforts should be madeto keep thecontract', 17728:'data requirements to aminimum, consistent withthe purposes of the contract. b the contractingofficer shall specify inthe contract all knowndata requirements,', 17729:'includingthe time and place for delivery and any limitationsand restrictions to be imposed onthe contractor in the handlingof the data.', 17730:'further, and to the extent feasible, in major system acquisitions, the contracting officershallset out datarequirements as separateline items. 27.4062 federal', 17731:'acquisition regulation in establishing the contract datarequirements and in specifying data items to be delivered bya contractor, agencies may, consistent', 17732:'with paragraph a of this subsection, developtheir own contract schedule provisions. agency procedures may, amongotherthings, provide for listing, specifying, identifying', 17733:'source, assuring delivery, and handling any data required tobe delivered, first produced, or specifically used in the performance of the', 17734:'contract. c data delivery requirements should normally not require that a contractor provide the government, as a condition of the', 17735:'procurement,unlimited rights in data that qualify as limited rights data or restricted computersoftware. rather, form, fit, and function data may', 17736:'be furnished with unlimited rights instead of the qualifying data, or the qualifying data may be furnished with limited rights', 17737:'or restricted rights if needed see 27.4042c and d. if greater rights are needed, they should be clearly set forth', 17738:'in the solicitation and the contractor fairly compensated for the greater rights. 27.4062additional data requirements. a in some contracting situations,', 17739:'such as experimental, developmental, research, or demonstration contracts, it may not be feasible to ascertain all the data requirements at', 17740:'contract award. the clause at 52.22716, additional data requirements, may be used to enable the subsequent ordering by the contracting', 17741:'officer ofadditional datafirstproduced orspecifically used in the performance of these contracts as the actual requirements become known. the clause shall', 17742:'normally be used in solicitations and contracts involving experimental, developmental, research or demonstration work other than basic or applied research', 17743:'to be performed under a contract solely by a university or college when the contract amount will be $500,000 or', 17744:'less unless all the requirements for data are believed to be known at the time of contracting and specified in', 17745:'the contract. if thecontract is for basicor applied research to be performed bya university or college, and the contracting officer', 17746:'believesthe contract effort will in thefuture exceed $500,000, even though the initial award doesnot,the contracting officer may include the clause', 17747:'in the initial award. b data may be ordered under the clause at 52.22716 at any time during contract performance', 17748:'or within a period of 3 years after acceptance of all items to be delivered under the contract. the contractor', 17749:'is to be compensated for converting thedata into the prescribed form, for reproduction, and for delivery. inorder to minimize storage', 17750:'costs for the retentionof data, the contracting officer may relievethe contractor ofthe retention requirements for specified data items at any', 17751:'time during the retentionperiod required bythe clause. the contracting officer maypermitthe contractor to identify and specify in the contract data', 17752:'not to be ordered for delivery under the clause if the data is not necessary to meet the government’s requirementsfordata.', 17753:'also, the contractingofficer may alter the clause by deleting the term or specifically used in paragraph a of the clauseif', 17754:'delivery of thedata is notnecessary tomeet thegovernment’s requirements for data. any data ordered under this clause will be subject to', 17755:'the clause at 52.22714, rights in datageneral, or other equivalent clause setting forth the respective rights of the government and', 17756:'the contractor in the contract. data authorized to be withheld under such clause will not be required to be delivered', 17757:'under the clause at 52.22716, except as provided in alternate ii or alternate iii, if included see 27.4042c and d.', 17758:'c absent an established program for dissemination of computer software, agencies should not order additional computer software under the clause', 17759:'at 52.22716, for the sole purpose of disseminating or marketing the software to the public. in ordering softwareforinternalpurposes, the contracting', 17760:'officer shall consider, consistentwith the government’sneeds, not ordering particular source codes, algorithms, processes, formulas, or flow charts of the software', 17761:'if the contractor shows that this aids itsefforts to disseminateor market the software. 27.4063 major system acquisition. a the clause', 17762:'at 52.22721, technical data declaration, revision,and withholding of paymentmajor systems, implements 41 u.s.c. 2302e. when using the clause at 52.22721,', 17763:'the section of the contract specifying data delivery requirements see 27.4061b shall expressly identify those line items of technical data', 17764:'to which the clause applies. upon delivery of the technicaldata, the contractingofficer shall review thetechnicaldata and thecontractor’sdeclaration relating to it', 17765:'to assure that the data are complete, accurate, and comply with contract requirements. if the data are not complete, accurate,', 17766:'or compliant,the contracting officershouldrequest the contractorto correct the deficiencies, andmay withhold payment. final payment shall not be made under the', 17767:'contract until it has been determined that the delivery requirements of those line items of data to which the clause', 17768:'applies have been satisfactorily met. b in a contract for, or in support of, a major system awarded by a', 17769:'civilian agencyotherthan nasa orthe u.s. coast guard, the following applies: 1 the contractingofficer shall require the delivery of any technical', 17770:'data relating to the major system or supplies for the major system, that are to be developed exclusively with federal', 17771:'funds if the delivery of the technical data is needed to ensure the competitive acquisition of supplies or services that', 17772:'will be required in substantial quantities in the future. subpart 27.4 rights in data and copyrights 27.409 the clause at', 17773:'52.22722, major systemminimum rights, is used in addition to the clause at 52.22714, rights in data general, and other required', 17774:'clauses, to ensure that the government acquires at least those rights required by pub. l. 98577 in technical data developed', 17775:'exclusively with federal funds. 2 technical data, relating to a major system or supplies for amajorsystem,procured orto beprocured bythe government', 17776:'and also relating to the design, development, or manufacture of products or processes offered or to be offered for sale', 17777:'to the public except for such data as may be necessary for the government to operate or maintain the product,', 17778:'or use the process if obtained by the government as an element of performance under the contract, shall not be', 17779:'required to be provided to the government from persons who have developed such products or processes as a condition for', 17780:'the procurement of such products or processes by the government. 27.407 rights totechnical data in successful proposals. the clause at', 17781:'52.22723, rights to proposal data technical, allowsthe government to acquire unlimited rights to technical datain successful proposals. pursuant to theclause,', 17782:'theprospective contractor is afforded the opportunity to specifically identify pages containing technical data to be excluded from the grant of', 17783:'unlimited rights. this exclusion is not dispositive of the protective status of the data, but any excluded technical data, as', 17784:'well as any commercial and financial information contained in the proposal, will remain subject to the policies in subpart 15.2', 17785:'or 15.6 or agency supplements relating to proposal information e.g., will be used for evaluation purposes only. if there is', 17786:'a need to have access to any of the excluded technical data during contract performance, consideration should be given to', 17787:'acquiring the data with limited rights, if they so qualify, in accordance with 27.4042c. 27.408 cosponsored research and development activities.', 17788:'a in contracts involving cosponsored research and development that require the contractor to make substantial contributions of funds or resources', 17789:'e.g., by costsharing or by repayment ofnonrecurringcosts,andthe contractor’s and the government’s respective contributions to any item, component, process, or computer', 17790:'software, developed orproduced under thecontract are not readily segregable,the contracting officermay limitthe acquisition of, oracquire less than unlimited rights to,', 17791:'any data developed and delivered under the contract. agencies may regulate the use of this authority in their supplements. lesser', 17792:'rights shall, at a minimum, assure use of the data for agreedto governmental purposes including reprocurement rights as appropriate, and', 17793:'address any disclosure limitations or restrictions to be imposed on the data. also, consideration may be given to requiring the', 17794:'contractor to directly license others if needed to carry out the objectives of the contract. since the purpose of the', 17795:'cosponsored research and development, the legitimate proprietary interests of the contractor, the needs of thegovernment, andthe respective contributions of bothparties', 17796:'may vary, no specificclauses are prescribed, but a clause providing less than unlimited rights in the government for data developed', 17797:'and delivered under the contract such as license rights may be tailored to the circumstances consistent with the foregoing and', 17798:'the policy set forth in 27.402. as a guide, a clause may be appropriate when the contractor contributes money or', 17799:'resources, or agrees to make repayment of nonrecurring costs, of a value of approximately 50 percent of the total cost', 17800:'of the contract i.e., government, contractor, and/or thirdparty paidcosts,andthe respective contributionsare not readily segregable for any work element to be', 17801:'performed under the contract. a clause may be used for all or for only specifically identified tasks or work elements', 17802:'under the contract. in the latter instance, its use will be in addition to whatever other data rights clause is', 17803:'prescribed under this subpart, with the contract specifically identifyingwhich clause is toapply to which tasks or work elements. further, this', 17804:'type of clause may not be appropriate where the purpose of the contract is to produce data for dissemination to', 17805:'the public, or to develop or demonstrate technologies that will be available, in any event, to the public for its', 17806:'direct use. b where the contractor’s contributions are readily segregableby performance requirements and the funding for the contract and so', 17807:'identified in the contract, any resulting data may be treated under this clause as limited rights data or restricted computer', 17808:'software in accordance with 27.4042c or d, as applicable; or if this treatment is inconsistent with the purpose of the', 17809:'contract, rightsto the data may, if so negotiated and stated in the contract,be treated in amanner consistent with paragraph a', 17810:'of this section. 27.409 solicitation provisions and contract clauses. a generally, acontract should contain only one data rights clause. however,', 17811:'wheremorethan one is needed,the contract should distinguish the portion of contract performance to which each pertains. b 1 insert the', 17812:'clause at 52.22714, rights in datageneral, in solicitations and contracts if it is contemplated that data will be produced, furnished,', 17813:'or acquired under the contract, unless the contract is federal acquisition regulation i for the production of special works of', 17814:'the type set forth in 27.4051, although in these cases insert the clause at 52.22714, rights in datageneral, and make', 17815:'it applicable to data other than special works, as appropriate see paragraph e of this section; ii for the acquisition', 17816:'of existing data, commercial computer software, or other existing data, as described in 27.4052 through 27.4054 see paragraphs f and', 17817:'g of this section; iii a small business innovation research contract see paragraph h of this section; iv to be', 17818:'performed outside the united states seeparagraph i1 of this section; v for architectengineer services or construction work see paragraph i2', 17819:'of this section; vi for the management, operation, design, or construction of a governmentowned facility to perform research, development, or', 17820:'production work see paragraph i3 of this section; or vii a contract involving cosponsored research and development in which a', 17821:'clause providing for less than unlimited right has been authorized see 27.408. 2 if an agency determines, in accordance with', 17822:'27.4042b, to adopt the alternate definition of limited rights data in paragraph a of the clause, use the clause with', 17823:'its alternate i. 3 if a contracting officerdetermines, in accordance with 27.4042c that it is necessary to obtain limited rights', 17824:'data, use the clause with its alternate ii. the contractingofficer shall completeparagraph g3 to include the purposes, if any, for', 17825:'which limited rights data are to be disclosed outside the government. 4 in accordance with 27.4042d, if a contracting officerdeterminesitis', 17826:'necessary to obtain restricted computer software, use the clause with its alternate iii. any greater or lesser rights regarding the', 17827:'use, reproduction, or disclosure of restricted computer software than those set forth in the restricted rights notice of paragraph g4', 17828:'of the clause shall be specified in the contract and the notice modified accordingly. 5 use the clause with its', 17829:'alternate iv in contracts for basic or applied research other than those for the management or operation of government facilities,', 17830:'and contracts and subcontracts in support of programs being conducted at those facilities or where international agreements require otherwise to', 17831:'be performed solely by universities and colleges. the clause may be used with its alternate iv in other contracts if', 17832:'in accordance with 27.4043a, an agency determines to grant permission for the contractor to assert claim to copyright subsisting in', 17833:'all data first produced without further request being made by the contractor. when alternate iv isused, the contract may exclude', 17834:'items or categoriesof data from the permission granted, either by express provisions in the contract or by the addition of', 17835:'a paragraph d4 to the clause see 27.4044. 6 in accordance with 27.4046,if the government needs the right to inspect', 17836:'certain dataat a contractor’s facility, use theclause with itsalternate v. c in accordance with 27.4042c2 and 27.4042d5, if the contractingofficer', 17837:'desires to have an offeror statein response to a solicitation whether limited rights data or restricted computer software are likely', 17838:'to be used in meeting the data delivery requirements set forth in the solicitation, insert the provision at 52.22715, representation', 17839:'of limited rights data and restricted computer software, in any solicitation containing the clause at 52.22714, rights in datageneral. the', 17840:'contractor’s response may provide an aidin determining whether the clauseshouldbe used with alternate ii and/oralternate iii. d insert the clause', 17841:'at 52.22716, additional data requirements, in solicitations and contracts involving experimental, developmental, research, or demonstration work other than basic or', 17842:'applied research to be performed solely by a university or college where the contract amount will be $500,000 or less', 17843:'unless all the requirements for data are believed to be known at the time of contracting and specified in the', 17844:'contract see 27.4062. this clause may also be used in other contracts when considered appropriate. for example, if the contract', 17845:'is for basic or applied research to be performed by a university or college, and thecontracting officer believesthe contract effort', 17846:'will in the future exceed $500,000, even though the initial award does not, the contracting officer may include the clause', 17847:'in the initial award. e in accordance with 27.4051, insert the clause at 52.22717,rights in dataspecial works, insolicitationsand contracts primarily', 17848:'for the production or compilation of data other than limited rights data or restricted computer software for thegovernment’s internal use,', 17849:'or when thereis a specific need to limit distributionanduse of the dataor to obtain indemnity for liabilities that may arise', 17850:'out of the content, performance, or disclosure of the data. examples of such contracts are set forth in 27.4051. 1', 17851:'insertthe clause if existing works are to be modified, as by editing, translation, addition of subject matter,etc. 2 the contract', 17852:'may specify the purposes and conditions including time limitations under which the data may be used, released, or reproduced by', 17853:'the contractor for other than contract performance. 3 contracts for the production of audiovisual works, sound recordings, etc. may include', 17854:'limitations in connection with talent releases, music licenses, and the like that are consistent with the purposes for which the', 17855:'data is acquired. subpart 27.4 rights in data and copyrights 27.409 4 the clause may be modified in accordance with', 17856:'paragraphs c through e of 27.4051. f insert the clause at 52.22718,rights in dataexistingworks, in solicitations and contractsexclusivelyforthe acquisition, without', 17857:'modification, of existing audiovisual and similar works of the type set forth in 27.4052. the contract may set forth limitations', 17858:'consistent with the purposes for which the work is being acquired. while no specific clause of this subpart is required', 17859:'to be included in contracts solely for the acquisition, without disclosure prohibitions, of books, publications, and similar items in the', 17860:'exact form in which the items exist prior to the request for purchase i.e., the offtheshelf purchase of such items,', 17861:'or in other contracts where only existing data available without disclosure prohibitions is to be furnished, if reproduction rights are', 17862:'to be acquired, the contract shall include terms addressing such rights. see 27.4054. g in accordance with 27.4053,when contracting other', 17863:'than fromgsa’smultiple award schedule contracts for theacquisition of commercialcomputer software, thecontracting officer may insert the clause at 52.22719, commercial computer', 17864:'software license, in the solicitation andcontract. in anyevent, the contracting officer shall assure that the contract contains terms to obtainsufficient', 17865:'rights for the government to fulfill the need for which thesoftware is being acquired and is otherwise consistent with 27.4053.', 17866:'h if the contract is a small business innovation research sbir contract, insert the clause at 52.22720, rights in datasbir', 17867:'program in all phase i, phase ii, and phase iii contracts awarded under the small business innovation research program established', 17868:'pursuant to 15 u.s.c. 638. the sbir protection period may be extended in accordance with the small business administration’s smallbusiness', 17869:'innovation research programpolicy directive september24,2002. i agencies may prescribe in their procedures, as appropriate, a clause consistent with the policy', 17870:'of 27.402 in contracts 1 to be performed outside theunited states; 2 for architectengineer services and construction work e.g., the', 17871:'clause at 52.22717, rightsin dataspecial works; or 3 for management, operation, design, or construction of governmentowned research, development, or production', 17872:'facilities, and in contracts and subcontracts in support of programs being conducted at such facilities. j in accordance with 27.4063a,', 17873:'insert the clause at 52.22721, technical data declaration, revision,and withholding of paymentmajor systems, in contracts for major systems acquisitions or', 17874:'for support of major systems acquisitions. this requirement includes contracts for detailed design, development, or production of a major system', 17875:'and contracts for any individualpart,component, subassembly, assembly, orsubsystem integral to themajorsystem, andother property that may be replaced during the service', 17876:'life of the system, including spare parts. when used, this clause requires that the technical data to which it applies', 17877:'be specified in the contract see 27.4063a. k in accordance with 27.4063b, in the case of civilian agencies other than', 17878:'nasa and the u.s. coast guard, insert the clause at 52.22722, major systemminimum rights, in contracts for major systems or', 17879:'contracts in support of major systems. l in accordance with 27.407,if a contracting officer desires to acquire unlimitedrights intechnical data', 17880:'containedin a successful proposal upon which a contract award is based, insert the clause at 52.22723, rights toproposal data technical.', 17881:'rights to technical data in a proposal are not acquired by mere incorporation by reference of the proposal in the', 17882:'contract, and if aproposal isincorporated by reference, the contracting officer shall follow 27.404 to assure that the rights are appropriately', 17883:'addressed. this page intentionally left blank. 27.412 subpart 27.5 foreign license and technical assistance agreements 27.501 subpart 27.5 foreign license', 17884:'and technical assistance agreements 27.501general. agencies shall provide necessary policy and procedures regarding foreign technical assistance agreements and license agreements', 17885:'involving intellectual property, including avoiding unnecessary royalty charges. this page intentionally left blank. 27.52 part 28 bonds and insurance sec.', 17886:'28.000 scope of part. 28.001 definitions. subpart 28.1 bonds and other financial protections 28.100 scope of subpart. 28.101 bid guarantees.', 17887:'28.1011 policy on use. 28.1012 solicitation provision or contract clause. 28.1013 authority of an attorneyinfact for a bid bond. 28.1014', 17888:'noncompliance with bid guarantee requirements. 28.102 performance and payment bonds and alternative payment protections for construction contracts. 28.1021 general. 28.1022', 17889:'amount required. 28.1023 contract clauses. 28.103 performance and payment bonds for other than construction contracts. 28.1031 general. 28.1032 performance bonds.', 17890:'28.1033 payment bonds. 28.1034 contract clause. 28.104 annual performance bonds. 28.105 other types of bonds. 28.1051 advance payment bonds. 28.1052', 17891:'patent infringement bonds. 28.106 administration. 28.1061 bonds and bondrelated forms. 28.1062 substitution of surety bonds. 28.1063 additionalbondandsecurity. 28.1064 contract clause.', 17892:'28.1065 consent of surety. 28.1066 furnishing information. 28.1067 withholdingcontractpayments. 28.1068 payment to subcontractors or suppliers. subpart 28.2 sureties and other', 17893:'security for bonds 28.200 scope of subpart. 28.201 requirements for security. 28.202 acceptability of corporate sureties. 28.203 individual sureties. 28.2031', 17894:'acceptability of individual sureties. 28.2032 substitution of assets. 28.2033 release of security interest. 28.2034 solicitation provision and contract clause. 28.2035', 17895:'exclusion of individual sureties. 28.204 alternatives in lieu of corporate or individual sureties. 28.2041 united states bonds or notes. 28.2042', 17896:'certified or cashier’s checks, bank drafts, money orders, or currency. 28.2043 irrevocable letter of credit. 28.2044 contract clause. subpart 28.3', 17897:'insurance 28.301 policy. 28.302 notice of cancellation or change. 28.303 insurance against loss of or damage to government property. 28.304', 17898:'riskpooling arrangements. 28.305 overseas workers’ compensation and war hazard insurance. 28.306 insurance under fixedprice contracts. 28.307 insurance under costreimbursement contracts.', 17899:'28.3071 group insurance plans. 28.3072 liability. 28.308 selfinsurance. 28.309 contract clauses for workers’ compensation insurance. 28.310 contract clause for work', 17900:'on a government installation. 28.311 solicitation provision and contract clause on liability insurance under costreimbursement contracts. 28.3111 contract clause. 28.3112', 17901:'agency solicitation provisions and contract clauses. 28.312 contract clause for insurance of leased motor vehicles. 28.313 contract clauses for insurance', 17902:'of transportation or transportationrelated services. this page intentionally left blank. subpart 28.1 bonds and other financial protections 28.1011 28.000scope of', 17903:'part. this part prescribes requirements for obtaining financial protection against losses under contracts that result from the use of the', 17904:'sealed bid or negotiated methods. it covers bid guarantees, bonds, alternative payment protections, security for bonds, and insurance. 28.001definitions. as', 17905:'used in this part attorneyinfact means an agent, independent agent, underwriter, or any other company or individual holding a power', 17906:'of attorney granted by a surety see also power of attorney at 2.101. bid means any response to a solicitation,', 17907:'including a proposal under a negotiatedacquisition. seethe definitionof offer at 2.101. bid guarantee means a form of security assuring that', 17908:'the bidder 1 will not withdraw a bid withinthe period specified for acceptance; and 2 will execute a written contractandfurnish', 17909:'required bonds, including any necessary coinsurance or reinsurance agreements, within the time specified in the bid, unless a longer time', 17910:'allowed, after receipt of the specified forms. bidder means any entity that is responding orhas respondedto a solicitation, including an', 17911:'offeror under a negotiated acquisition. bond means a written instrument executed by a bidder or contractor the principal, and a', 17912:'second party the surety or sureties except as provided in 28.204, toassure fulfillment of the principal’s obligations toa third party', 17913:'the obligee or government, identified in the bond. ifthe principal’s obligations arenot met, the bond assurespayment, to the extent stipulated,', 17914:'of any loss sustained by the obligee. the types of bonds and related documents are as follows: 1 an advance', 17915:'payment bond secures fulfillment of thecontractor’sobligations under an advance payment provision. 2 an annualbid bond isa single bondfurnished by a', 17916:'bidder, inlieu of separate bonds,which secure all bids on other than constructioncontractsrequiring bondssubmitted during a specific governmentfiscalyear. 3 an annualperformance', 17917:'bondis asingle bond furnished by a contractor, in lieu of separate performance bonds, to securefulfillment ofthe contractor’s obligations under contractsother', 17918:'than construction contracts requiring bonds entered into during aspecific government fiscal year. 4 a patent infringement bondsecures fulfillment of the', 17919:'contractor’s obligations under a patent provision. 5 a payment bond assures payments as required by law to all persons supplying', 17920:'labor or material in the prosecution of the work provided for in the contract. 6 a performancebond secures performance andfulfillment', 17921:'ofthe contractor’s obligations under the contract. consent of surety means an acknowledgment by a surety that its bond given in', 17922:'connection with a contract continues to apply to the contract as modified. penal sum or penal amount means the amount', 17923:'of money specified in a bond or a percentage of the bid price in a bid bond as the maximum', 17924:'payment for which the surety is obligated or the amount of security required to be pledged to the government in', 17925:'lieu of a corporate or individual surety for the bond. reinsurance meansa transaction which provides that a surety,fora consideration, agrees', 17926:'to indemnifyanother surety against loss which the latter may sustain under a bond which it has issued. subpart 28.1 bonds', 17927:'and other financial protections 28.100scope of subpart. this subpart prescribes requirements and procedures for the use of bonds, alternative payment', 17928:'protections, and all types of bid guarantees. 28.101bid guarantees. 28.1011 policy on use. a a contractingofficer shall not requirea bidguarantee', 17929:'unless a performance bond or a performance and payment bond is also required see 28.102 and 28.103. except as provided', 17930:'in paragraph c of this subsection, bid guarantees shall be required whenever a performance bond or a performance and payment', 17931:'bond is required. 28.1012 federal acquisition regulation b all types of bid guarantees are acceptable for supply or service contracts', 17932:'see annual bid bonds and annual performance bonds coverage in 28.001. only separate bid guarantees are acceptable in connection with', 17933:'construction contracts. agencies may specify that only separate bid bonds are acceptable in connection with construction contracts. c thechief of', 17934:'thecontracting office may waive the requirement to obtain a bid guarantee whena performance bond ora performance and payment bond is', 17935:'required if it is determined that a bid guarantee is not in the best interest of the government for a', 17936:'specific acquisition e.g., overseas construction, emergency acquisitions, solesource contracts. class waiversmay be authorized by the agency head or designee. 28.1012solicitation', 17937:'provision or contract clause. a thecontracting officer shall insert aprovision or clause substantiallythe same as theprovision at 52.2281, bid guarantee,', 17938:'in solicitations orcontracts that require a bid guarantee orsimilarguarantee. for example, the contractingofficer may modify this provision 1 to set', 17939:'a period oftime that is other than 10 days for the return of executed bonds; 2 for use in connection', 17940:'with construction solicitations when the agency has specified that only separate bid bonds are acceptable in accordance with 28.1011b; 3', 17941:'for use in solicitations for negotiated contracts; or 4 for use in service contracts containing options for extended performance. b', 17942:'the contractingofficer shall determine the amount of the bid guarantee for insertion inthe provisionat 52.2281 see 28.1022a. the amount shall', 17943:'be adequate to protect the government from loss should the successful bidder fail to execute further contractual documents and bonds', 17944:'as required. the bid guarantee amount shall be at least 20 percent of the bid price but shall not exceed', 17945:'$3 million. when the penal sum is expressed as a percentage, a maximum dollar limitation may be stated. 28.1013 authority', 17946:'of an attorneyinfact for a bid bond. a any person signing a bid bond as an attorneyinfact shall include with', 17947:'the bid bond evidence of authority to bind the surety. b an original, ora photocopy or facsimile of anoriginal, power', 17948:'of attorney is sufficient evidenceof such authority. c for purposes of this section, electronic, mechanicallyapplied and printed signatures, seals and', 17949:'dates on the power of attorney shall be consideredoriginal signatures,seals and dates, without regard to the order in which they', 17950:'were affixed. d the contractingofficer shall 1 treatthe failure toprovide asigned and dated power of attorney at the time of', 17951:'bid openingas a matter of responsiveness; and 2 treatquestions regarding the authenticity and enforceability of the power of attorney atthe', 17952:'time of bid opening asa matter of responsibility. these questions are handled after bidopening. e 1ifthecontractingofficercontactsthesuretytovalidatethepowerofattorney,thecontractingofficershall document the file providing,', 17953:'at a minimum, the following information: i name of person contacted. ii date and time of contact. iii response of', 17954:'the surety. 2 if, upon investigation, the surety declares the power of attorney to have been valid at the time', 17955:'of bid opening, the contracting officermay require correctionof any technical error. 3 if the surety declares the power of attorney', 17956:'tohavebeeninvalid, the contracting officer shall notallow the bidder to substitute a replacement power of attorney or a replacement surety. f', 17957:'determinations of nonresponsibility based on the unacceptability of a power of attorney are not subject to the certificate of competency', 17958:'process of subpart 19.6 if the surety hasdisavowedthe validity of the power of attorney. 28.1014noncompliance with bidguaranteerequirements. a in sealed', 17959:'bidding, noncompliance with a solicitation requirement for a bid guarantee requires rejection of the bid, except in the situations described', 17960:'in paragraph c of this subsection when the noncompliance shall be waived. b in negotiation, noncompliance with a solicitation requirement', 17961:'for a bid guarantee requires rejection of an initial proposal as unacceptable, if a determination is made to award the', 17962:'contract based on initial proposals without discussion, except in the situations described in paragraph c of this subsection when noncompliance', 17963:'shall be waived. see 15.306a2 for conditions regarding making awards based on initial proposals. if the conditions for awarding based', 17964:'on initial proposals subpart 28.1 bonds and other financial protections 28.1022 arenot met, deficiencies in bid guarantees submitted by offerors', 17965:'determinedto bein thecompetitive range shall be addressed during discussions and the offeror shall be given anopportunity tocorrect the deficiency. c', 17966:'noncompliance with a solicitation requirement for a bid guarantee shall be waived in the following circumstances unless thecontracting officer determines', 17967:'inwriting thatacceptance of the bid would be detrimental to thegovernment’s interest when 1 onlyoneoffer is received. in this case, the', 17968:'contractingofficer may require the furnishing of the bid guarantee before award; 2 the amount of the bid guarantee submitted is', 17969:'less thanrequired, but is equal to or greater than the difference between the offer price and the next higher acceptable', 17970:'offer; 3 the amount of the bid guarantee submitted, although less than that required by the solicitation for the maximum', 17971:'quantity offered, is sufficient for a quantity for which theofferor isotherwise eligible for award. any award tothe offeror shall not', 17972:'exceed the quantity covered by the bid guarantee; 4 the bid guarantee is received late, and late receipt is waived', 17973:'under 14.304; 5 a bid guarantee becomes inadequate as a result of the correction of a mistake under 14.407 but', 17974:'only if the bidder will increase the bid guarantee to the level required for the corrected bid; 6 an otherwise', 17975:'acceptable bid bond was submitted with a signed offer, but thebid bond was not signed by the offeror; 7 an', 17976:'otherwise acceptable bid bond is erroneously dated or bears no date at all; or 8 a bid bond does notlist', 17977:'theunited statesas obligee, but correctly identifies the offeror, the solicitation number, and the name and location of the project involved,', 17978:'so long as it is acceptable in all other respects. 28.102 performance and payment bonds and alternative payment protections for', 17979:'construction contracts. 28.1021 general. a 40 u.s.c. chapter 31, subchapter iii, bonds formerly known as the miller act, requires performance', 17980:'and payment bonds for any construction contract exceeding $150,000, except that this requirement may be waived 1 by thecontracting officer', 17981:'for as much of the work as is to be performed ina foreign country upon finding that it is impracticable', 17982:'for the contractor to furnish such bond; or 2 asotherwise authorized by the bondsstatuteor other law. b 1 pursuant to', 17983:'40 u.s.c. 3132, for construction contracts greater than $35,000, but not greater than $150,000, the contracting officershallselect two or moreof', 17984:'the following paymentprotections, giving particular consideration to inclusion of an irrevocable letter of credit as one of the selected alternatives:', 17985:'i a payment bond. ii an irrevocable letter of credit ilc. iii a tripartite escrow agreement. the prime contractor establishes', 17986:'an escrow account in a federally insured financial institution and enters into a tripartite escrow agreement with the financial institution,', 17987:'as escrow agent, and all of the suppliers of labor and material. the escrow agreement shall establish the terms of', 17988:'payment under the contract and of resolution of disputes among the parties. the government makes payments to the contractor’s escrow', 17989:'account, and the escrow agent distributes the payments in accordance with the agreement, or triggers the disputes resolution procedures if', 17990:'required. iv certificates of deposit. the contractor deposits certificates of deposit from a federally insured financial institutionwith the contracting officer,', 17991:'in an acceptableform, executable by the contracting officer. v a deposit of the types of security listed in 28.2041 and', 17992:'28.2042. 2 the contractorshallsubmit to the government one ofthe paymentprotections selected by the contracting officer. c the contractor shall furnish', 17993:'all bonds or alternative payment protection, including any necessary reinsurance agreements, before receiving a notice to proceed with the work', 17994:'or being allowed to start work. 28.1022amount required. a definition. as used in this subsection original contract price means the', 17995:'award price ofthe contract; or, for requirements contracts, the price payableforthe estimated total quantity; or, for indefinitequantity contracts, the price', 17996:'payable for the specified minimum quantity. original contract price does not include the price of any options, except those options', 17997:'exercised at the time of contract award. b contracts exceeding $150,000 1 performance bonds.unless thecontracting officer determines thata lesseramount is', 17998:'adequate for the protection of the government, the penal amount of performance bonds must equal 28.1023 federal acquisition regulation i', 17999:'100 percent of the original contract price; and ii if the contract price increases, an additional amount equal to 100', 18000:'percent of the increase. 2 payment bonds. i unless the contracting officer makes a written determination supported by specific findings', 18001:'that a payment bond in this amount is impractical, the amount of the payment bond must equal a 100 percent', 18002:'of the original contract price; and b if the contract price increases, an additional amount equal to 100 percent of', 18003:'the increase. ii the amount of the payment bond must be no less than the amount of the performance bond.', 18004:'c contracts exceeding $35,000 but not exceeding $150,000. unless the contracting officer determines that a lesser amount is adequate for', 18005:'the protection of the government, the penal amount of the payment bond or the amount of alternative payment protection must', 18006:'equal 1 100 percent of the original contract price; and 2 if the contract price increases, an additional amount equal', 18007:'to 100 percent of the increase. d securing additional payment protection. if the contract price increases, the government must secure', 18008:'any needed additional protection by directing the contractor to 1 increase the penal sum of the existing bond; 2 obtain', 18009:'an additional bond; or 3 furnish additional alternative payment protection. e reducing amounts.the contracting officer may reduce theamount of security', 18010:'to support a bond, subject to the conditions of 28.2033c or 28.204b. 28.1023 contract clauses. a insert a clause substantially', 18011:'the same as the clause at 52.22815, performance and payment bondsconstruction, in solicitations and contracts for construction that contain a', 18012:'requirement for performance and payment bonds if the resultant contract is expected to exceed $150,000. the contracting officer may revise', 18013:'paragraphs b1 and/or b2 of the clause to establish a lower percentage in accordance with 28.1022b. if the provision at', 18014:'52.2281 is not included in the solicitation, thecontracting officer must set a period oftime for return of executed bonds. b', 18015:'insert the clause at 52.22813, alternative payment protections, in solicitations and contracts for construction, when the estimated or actual value', 18016:'exceeds $35,000 but does not exceed $150,000. complete the clause by specifying the payment protections selected see 28.1021b1 and thedeadline', 18017:'for submission. the contracting officer mayrevise paragraph b of the clause to establish a lower percentage in accordance with 28.1022c.', 18018:'28.103performance and payment bonds for other than construction contracts. 28.1031 general. a generally, agencies shall not require performanceandpayment bonds for', 18019:'other than constructioncontracts. however, performance and payment bonds may be used as permitted in 28.1032 and 28.1033. b the contractor', 18020:'shall furnish all bonds before receiving a notice to proceed with the work. c no bond shall be required after', 18021:'the contract has been awarded if it was not specifically required in the contract, except as may be determined necessary', 18022:'for a contract modification. 28.1032 performance bonds. a performance bonds may be required for contracts exceeding the simplified acquisition threshold', 18023:'when necessary to protect thegovernment’s interest. the following situationsmay warrant aperformance bond: 1 government property or funds are to be', 18024:'provided to the contractor for use in performing the contract or as partial compensation as in retention of salvaged material.', 18025:'2 a contractor sells assets to or merges withanother concern, and the government, after recognizing the latter concern as the', 18026:'successor in interest, desires assurance that it is financially capable. 3 substantial progress payments are made before delivery of end', 18027:'items starts. 4 contracts are for dismantling, demolition, or removal of improvements. b the government may require additional performance bond', 18028:'protection when a contract price is increased. cthecontractingofficermustdeterminethecontractor’sresponsibilitysee subpart 9.1 even though a bond has been or can be obtained.', 18029:'subpart 28.1 bonds and other financial protections 28.1061 28.1033 payment bonds. a a payment bond is required only when a', 18030:'performance bond is required, and if the use of payment bond is in the government’s interest. b when a contract', 18031:'price is increased, the government may require additional bond protection in an amount adequate to protect suppliers of labor and', 18032:'material. 28.1034 contract clause. the contractingofficer shall inserta clause substantiallythe same as theclause at 52.22816, performance and payment bondsother than', 18033:'construction, in solicitations and contracts that contain a requirement for both payment and performance bonds. the contracting officershalldetermine theamount of', 18034:'each bond for insertion in the clause. the amount shall be adequate to protect the interest of the government. the', 18035:'contractingofficer shall also set a period oftime normally 10days for return of executed bonds. alternatei shall be used when only', 18036:'performance bonds are required. 28.104annual performance bonds. a annual performance bonds only apply to nonconstruction contracts. they shall provide a', 18037:'gross penal sum applicable to the total amount of all covered contracts. b when the penal sums obligated by contracts', 18038:'are approximately equal to or exceed the penal sum of the annual performance bond, an additional bond will be required', 18039:'to cover additional contracts. 28.105other types of bonds. the head of the contracting activity may approve using other types of', 18040:'bonds in connection with acquiring particular supplies or services. these types include advance payment bonds and patent infringement bonds. 28.1051', 18041:'advance payment bonds. advance payment bonds may be required only when the contract contains an advance payment provision and a', 18042:'performancebond is not furnished. the contracting officershalldetermine the amount ofthe advancepayment bond necessary to protect the government. 28.1052 patent infringement', 18043:'bonds. a contracts providing for patent indemnity may require these bonds only if 1 a performance bond is not furnished;', 18044:'and 2 the financial responsibility of the contractor is unknown or doubtful. b the contractingofficer shall determine the penal sum.', 18045:'28.106administration. 28.1061bondsand bondrelated forms. the following standard formssf’s and optional forms of’s, shall be used, except in foreign countries, when', 18046:'a bid bond, performance or payment bond, or an individual surety is required. the bond forms shall be used as', 18047:'indicated in the instruction portion of each form: a sf 24, bid bond see 28.101. b sf 25, performance bond', 18048:'see 28.1021 and 28.1063b. c sf 25a, payment bond see 28.1021 and 28.1063b. d sf 25b,continuationsheetforsf’s 24, 25, and 25a.', 18049:'e sf 28, affidavit ofindividual surety see 28.203. f sf 34, annual bid bond see 28.001. g sf 35, annual', 18050:'performance bond see 28.104. h sf 273, reinsurance agreement for a bonds statute performance bond see 28.202a4. i sf 274,', 18051:'reinsurance agreement for a bonds statute payment bond see 28.202a4. j sf 275, reinsurance agreement in favor of the united', 18052:'states see 28.202a4. k sf 1414, consent of surety see 28.1065. l sf 1415, consent of surety and increase of', 18053:'penalty see 28.1063. m sf 1416, payment bond for other than construction contracts see 28.1033 and 28.1063b. 28.1062 federal acquisition', 18054:'regulation n sf 1418, performance bond for other than construction contracts see 28.1032 and 28.1063b. o of 91, release of', 18055:'personal property from escrow see 28.2033. 28.1062substitutionof surety bonds. a a new surety bond covering all or part of the', 18056:'obligations on a bond previously approved may be substituted for the original bond if approved by the head of the', 18057:'contracting activity, oras otherwise specified in agencyregulation. b when anew surety bond is approved, the contractingofficer shall notifythe principal and', 18058:'surety of the originalbond of the effective dateof the new bond. 28.1063additional bond andsecurity. a when additional bond coverage is', 18059:'required and is secured in whole or in part by the original surety or sureties, agencies shall use standard form1415,', 18060:'consent of surety and increase ofpenalty. standard form1415 is authorized for local reproduction. b when additional bond coverage is required', 18061:'and is secured in whole or in part by a new surety or by one of the alternatives described in', 18062:'28.204 in lieu of corporate or individual surety, agencies shall use standard form25, performance bond; standard form1418, performance bond for', 18063:'other than construction contracts; standard form25a, payment bond; or standard form1416, payment bond for other than construction contracts. 28.1064 contract', 18064:'clause. a thecontracting officer shall insert the clause at 52.2282, additional bond security, in solicitations and contracts when bonds are', 18065:'required. b in accordance with secti on 806a3 of public law 102190, as amended by sections 2091 and 8105 of', 18066:'public law 103355 10 u.s.c. 4601 noteprec., thecontracting officer shall insert the clause at 52.22812, prospective subcontractor requests for bonds,', 18067:'in solicitations and contracts with respect to which a payment bond will be furnished pursuant to 40 u.s.c chapter 31,', 18068:'subchapter iii, bonds see 28.1021, except for contracts for the acquisition of commercial products or commercial services as defined in', 18069:'subpart 2.1. 28.1065consent of surety. a when any contract is modified,the contracting officer shall obtain the consent of suretyif 1', 18070:'an additional bond is obtained from other than the original surety; 2 no additional bond is required and i the', 18071:'modification is for new work beyond the scope of the original contract; or ii the modification does not change the', 18072:'contract scope but changes the contract price upward or downward by more than 25 percent or $50,000; or 3 consent', 18073:'of surety is required for a novation agreement see subpart 42.12. b when a contract for which performance or payment', 18074:'is secured by any of the types of security listed in 28.204 is modified as described in paragraph a of', 18075:'this subsection, no consent of surety is required. c agencies shall use standard form 1414, consent of surety, for all', 18076:'typesof contracts. 28.1066 furnishing information. a the surety on the bond, upon its written request, may be furnished information on', 18077:'the progress of the work, payments, and the estimated percentage of completion, concerning the contract for which the bond was', 18078:'furnished. b when apayment bondhas been provided, thecontracting officer shall, upon request, furnish the name and address of the surety', 18079:'or sureties to any subcontractor or supplier who has furnished or been requested to furnish labor or material for the', 18080:'contract. in addition, general information concerning the work progress, payments, and the estimated percentage of completion may be furnished to', 18081:'persons who have provided labor or materials and have not been paid. c when a payment bond has been provided', 18082:'for a contract, the head of the agency or designee shall furnish a certified copy of the bond and the', 18083:'contract for which it was given to any person who makes a request therefor and who furnishes an affidavit that', 18084:'the requestor has supplied labor or materials for such work andpayment therefor has not been madeor that the requestor is', 18085:'being sued on such bond. the person who makes the request shall be required to pay such costs of preparation', 18086:'as determined by the head of the agency or designee to be reasonable and appropriate see 40 u.s.c. 3133. d', 18087:'section 806a2 of public law 102190, as amended by sections 2091 and 8105 of public law 103355 10 u.s.c. 4601', 18088:'note prec., requires that the federal government provide information to subcontractors on payment bonds under subpart 28.1 bonds and other', 18089:'financial protections 28.1068 contracts for other than commercial products or commercial services as defined in subpart 2.1. upon the written', 18090:'or oral request ofa subcontractor/supplier, or prospective subcontractor/supplier, under a contract with respect to which a payment bondhas been furnished', 18091:'pursuantto thebonds statute, the contracting officer shall promptly provideto therequester, either orally or in writing, as appropriate, any of the', 18092:'following: 1 name and address of the surety or sureties on the payment bond. 2 penal amount of the payment', 18093:'bond. 3 copy of the payment bond. the contractingofficer may impose reasonable fees to cover thecostof copying and providing a', 18094:'copy of the payment bond. 28.1067withholding contractpayments. a during contract performance, agencies shall not withhold payments due contractors or assignees', 18095:'because subcontractors or suppliers have not been paid. b if, after completion of the contract work, the government receives written', 18096:'notice from the surety regarding the contractor’s failure tomeet itsobligation toits subcontractors orsuppliers, the contracting officer shall withhold final payment.', 18097:'however, thesurety mustagreeto hold thegovernment harmless from any liability resulting from withholding thefinal payment. thecontracting officer will authorize final paymentupon', 18098:'agreement betweenthe contractor and surety or upon a judicial determination of the rights of the parties. c for any withholding', 18099:'incident to the labor standards provisions of the contract, see part 22. 28.1068 payment to subcontractors or suppliers. the contractingofficer', 18100:'will only authorize payment tosubcontractors or suppliers from an ilc or any other cash equivalent security upon a judicial determination', 18101:'of the rights of the parties, a signed notarized statement by the contractor that the payment is due and owed,', 18102:'or a signed agreement between the parties as to amount due and owed. this page intentionally left blank. 28.18 subpart', 18103:'28.2 sureties and other security for bonds 28.2031 subpart 28.2 sureties and other security for bonds 28.200scope of subpart. this', 18104:'subpart prescribes procedures for the use of sureties and other security to protect the government from financial losses. 28.201 requirements', 18105:'for security. a agencies shall obtain adequate security for bonds including coinsurance and reinsurance agreements required or used with a', 18106:'contract for supplies or services including construction. acceptable forms of security include 1 corporate or individual sureties; or 2 any', 18107:'of the types of security authorized in lieu of sureties by 28.204. b solicitations shall not preclude offerors from using', 18108:'the types of surety or othersecurity permitted by this subpart, unless prohibited by law or regulation. 28.202 acceptabilityof corporate sureties.', 18109:'a 1corporatesuretiesofferedforbondsfurnishedwithcontractsperformedintheunitedstatesoritsoutlyingareas must appearon the list contained in the department of the treasurys listingof approved sureties treasury department circular 570,', 18110:'“companies holding certificates of authority as acceptable sureties on federal bonds and as acceptable reinsuring companies.” 2 the penal amount', 18111:'of the bond should notexceed the suretysunderwritinglimitstated in thetreasury department circular 570. if the penal amount exceeds the underwriting limit,', 18112:'the bond will be acceptable only if i the amount which exceeds the specified limit is coinsured or reinsured; and', 18113:'iithe amount of coinsurance or reinsurance does notexceed the underwriting limit of each coinsurer or reinsurer. 3 coinsurance or reinsurance', 18114:'agreements shall conform to the departmentof the treasury treasury regulations in 31 cfr 223.10 and 223.11. whenreinsurance is contemplated, the', 18115:'contracting officegenerally shall requirereinsurance agreements to be executed and submitted with the bonds before making a final determination on the', 18116:'bonds. 4 when specified inthe solicitation,the contracting officer mayaccept abond from the directwriting company in satisfaction of the total bond', 18117:'requirement of the contract. this is permissible until necessary reinsurance agreements are executed, even though the total bond requirement may', 18118:'exceed the insurers underwriting limitation. the contractor shall execute and submitnecessary reinsuranceagreements to the contracting officer within the timespecified on', 18119:'thebid form, which may not exceed 45 calendar days after the execution of the bond. the contractor shall use standard', 18120:'form sf 273, reinsurance agreement for a bonds statute performance bond, and sf 274, reinsurance agreement for a bonds statute', 18121:'payment bond, when reinsurance is furnished with the required performance or payment bonds. sf 275, reinsurance agreement in favor of', 18122:'the united states, is used when reinsurance is furnished with bonds for other purposes. b for contracts performedin a foreign', 18123:'country, sureties not appearing ontreasury department circular 570are acceptable ifthe contracting officerdeterminesthat it is impracticable for thecontractor to use treasury', 18124:'listed sureties. c treasury issues supplements totreasury department circular 570, notifyingall federal agencies of new approved corporate surety companies and', 18125:'the termination of the authority of any specific corporate surety to qualify as a surety on federalbonds. upon receipt of', 18126:'notification of termination of a company’sauthority toqualify as a suretyon federal bonds, thecontracting officer shall review the outstanding contractsandtake action', 18127:'necessaryto protect thegovernment,including, where appropriate, securing newbondswith acceptable sureties in lieu of outstanding bonds with the named company. d treasury', 18128:'department circular 570 may beobtained from the u.s. department of the treasury, bureau of the fiscal service, suretybond branch, 3201pennsy', 18129:'drive, buildinge, landover, md20785 or at https://www.fiscal.treasury.gov/ fsreports/ref/suretybnd/c570.htm. 28.203 individual sureties. 28.2031acceptability of individual sureties. a an individual surety is', 18130:'acceptable for all types of bonds except position schedule bonds. assets pledged by an individualsurety shall meet the eligibility requirementsof', 18131:'treasurys bureau ofthe fiscal service. per 31 u.s.c. 9310, individualsuretiesmust pledge eligible obligations, which treasury refersto as acceptable collateral or', 18132:'eligible collateral. a list of acceptable assets, entitled “acceptable collateral for 31 cfr part 225,” may be accessed by going', 18133:'to https:// 28.2032 federal acquisition regulation www.treasurydirect.gov/files/lawsandregulations/collateralprograms/2018final225listofacceptablecollateral.pdf and clicking on “acceptable collateral for 31 cfr part 225”. b 1 an', 18134:'individual surety shall execute the bond e.g., bid bond sf 24, performance bond sf 25, payment bond sf 25a. 2', 18135:'the net adjusted value of unencumbered assets is their market value minusthe margin. the margin tables are available at www.treasurydirect.gov.', 18136:'the netadjusted value of unencumbered assets pledgedby the individualsurety must equal or exceed the penal amount i.e., face value of', 18137:'each bond. 3 the individual surety shall execute the sf 28, affidavitof individual surety,and provide a security interest. one individual', 18138:'surety is adequate support for a bond, provided the net adjusted value of unencumbered assets pledged by that individual surety', 18139:'equals or exceeds the amount of the bond. 4 an offeror orcontractor may submitup to three individual sureties for each', 18140:'bond,in which case the net adjusted value of the pledged unencumbered assets, when combined, must equal or exceed the penal', 18141:'amount of the bond. each individual surety is jointly and severally liable to the extent of the penal amount of', 18142:'the bond. c using the information from the sf 28submitted by the offeror or contractor, the contracting officer shall notifythe', 18143:'treasurys collateraloperations support teamby email at bmt@fiscal.treasury.gov or by phone at 8885687343, of the individualsurety, the assets to be pledged,', 18144:'and the amount necessary to cover theindividual surety bond, i.e., the required amount to be collateralized. treasury will advise the', 18145:'contracting officer whether the assets are eligible to be pledged, consistent with 28.2031a, and of the valuation of theassetsoffered to', 18146:'be pledged,consistent with thevaluation standards in 28.2031b2. ifafter 3 business days the contracting officer has not receiveda responsefrom treasury, the', 18147:'contracting officer may seek assistance fromthe director, bank policy and oversight, at 2025043502. the contracting officer shall determine whether the', 18148:'individual surety bond is acceptable as to the amount necessary to cover the individual surety bond basedon the asset eligibility', 18149:'and valuation assessmentfrom treasury. the contracting officer shall notify both the offeror or contractor and the individual surety of this', 18150:'determination. d if the contracting officer determines the individual suretyis acceptable,the contracting officershallrequest the treasurys collateraloperations support teamset up the', 18151:'necessary individual suretypledged assetcollateral account. e if the contracting officerdeterminesthat no individual surety in support of a bid guarantee is', 18152:'acceptable, the offeror utilizing the individual surety shall berejectedas nonresponsible, except as provided in 28.1014. a finding of nonresponsibility basedon', 18153:'unacceptability of anindividual surety, need not bereferred to the small business administration for a certificate of competency. see 19.6021a and', 18154:'61 comp. gen. 456 1982. f ifa contractorsubmits an unacceptable individual surety, oronethat treasury could not assess the asseteligibility and', 18155:'valuation within a reasonable time, then the contracting officer maypermitthe contractor to substitute an acceptable surety within a reasonable time.', 18156:'g evidence of possible criminal or fraudulent activities by an individual surety shall be referred to the appropriate agency official', 18157:'in accordance with agency procedures. 28.2032 substitution of assets. an individual surety may request the government to accept a substitute', 18158:'asset for that currently pledged by submitting a written request, including a revised sf 28, to the responsiblecontracting officer. following', 18159:'the requirements setforth in 28.2031, the contracting officer may agree to thesubstitution of assets upon determining that the substitute assets', 18160:'to be pledged are adequate to protect the outstanding bond or guarantee obligations. 28.2033release of securityinterest. a after consultationwith legal', 18161:'counsel, the contracting officer shall releasethe security interest on the individual suretys assets using the optional form 91, release of', 18162:'personal property from escrow, ora similar release as soon aspossible consistent with the conditions in subparagraphs a1 and 2 of', 18163:'this section. a suretys assets pledged in support of a payment bond may be released to a subcontractor or supplier', 18164:'upon government receipt of a federal district court judgment, or a sworn statement by the subcontractor or supplier that the', 18165:'claim is correct along with a notarized authorization of the release by the surety stating that it approves of such', 18166:'release. 1 contracts subject to the bonds statute. see section 1.110 and section 28.1021, paragraph a. the security interest shall', 18167:'be maintained for the later of— i 1 year following final payment; ii until completion of any warranty period applicable', 18168:'only to performance bonds; or subpart 28.2 sureties and other security for bonds 28.204 iii pending resolution of all claims', 18169:'filed against the payment bond during the 1 year period following final payment. 2 contracts subject to alternative payment protection.', 18170:'see section 28.1021, paragraph b1. the security interest shall bemaintained for thefull contract performance period plus1 year. 3 other contracts', 18171:'not subject to the bonds statute. the security interest shall be maintained for 90 days following final payment or untilcompletion', 18172:'of any warranty periodapplicable only toperformance bonds,whichever islater. b upon written request by theindividual surety, the contractingofficer may release the', 18173:'securityinterest on the individual suretys assets in support of a bid guarantee based upon evidence that the offersupported by theindividual', 18174:'surety willnot result in contract award. c upon written request by the individual surety, thecontracting officer may release a portion', 18175:'of the security interest on the individual suretys assets based upon substantial performance of the contractors obligations under its performance', 18176:'bond. release of the security interest in support of a payment bond must comply with the subparagraphs a1 through 3', 18177:'of this section. in making this determination, the contracting officer willgive consideration as to whether the unreleased portion of thesecurity', 18178:'is sufficient tocover the remaining contract obligations,including payments to subcontractors and other potential liabilities. theindividual surety shall, as a condition', 18179:'ofthe partial release, furnish an affidavitagreeing thatthe release of such assets does not relieve the individual surety of its obligations', 18180:'under the bonds. 28.2034solicitation provision and contract clause. a insert the provision at 52.22817, individual surety—pledge of assets bid guarantee,', 18181:'in solicitations that require the submission of a bid guarantee. b insert the clause at 52.22811, individual surety—pledge of assets,', 18182:'in solicitations and contracts that require the submission of performance or payment bonds. 28.2035exclusion ofindividual sureties. a an individual maybe', 18183:'excluded from acting as a suretyon bondssubmitted by offerors on procurement by the executive branch of the federal government, by', 18184:'the acquiring agencys head or designee utilizing the procedures in subpart 9.4. the exclusion shall be for the purpose of', 18185:'protecting the government. b an individual may be excluded for any of the following causes: 1 failure to fulfill the', 18186:'obligations under any bond. 2 failure to disclose all bond obligations. 3 misrepresentation of the value of available assets or', 18187:'outstanding liabilities. 4 any false ormisleading statement, signature or representation on a bond or affidavit of individual suretyship. 5 any', 18188:'other cause affecting responsibility as a surety of such serious and compelling nature as maybe determined to warrant exclusion. c', 18189:'an individual surety excluded pursuant to this section shall be entered as an exclusion in the system for award management', 18190:'see 9.404. d contracting officersshallnot accept thebonds of individual sureties whose names appear inan active exclusion record in the system', 18191:'for award managementsee 9.404 unless the acquiring agencys head or a designee states in writing the compelling reasons justifying acceptance.', 18192:'e an exclusion of an individual surety under this section will also preclude such party from acting as a contractor', 18193:'in accordance with subpart 9.4. 28.204 alternativesin lieu of corporate or individual sureties. a any person required to furnish a', 18194:'bond to the government may furnish any of the types of security listed in 28.2041 through 28.2043 instead of a', 18195:'corporate or individual surety for the bond. when any of those types of security are deposited, a statement shall be', 18196:'incorporated in the bond form pledging the security in lieu of execution of the bond form by corporate or individual', 18197:'sureties. the contractor shall execute the bond forms as the principal. agencies shall establish safeguards to protect against loss of', 18198:'the security and shall return the security or its equivalent to the contractor when the bond obligation has ceased. b', 18199:'upon written request by any contractor securing a performance or payment bond by any of the types of security listed', 18200:'in 28.2041 through 28.2043, the contracting officer may release a portion ofthe security only whenthe conditions allowing the partial release', 18201:'of security in 28.2033c are met. the contractor shall, as a condition of the partial release, furnish an affidavit agreeing', 18202:'that the releaseof such security does not relievethe contractor ofits obligations under the bonds. 28.2041 federal acquisition regulation c the', 18203:'contractor may satisfy a requirement for bond security by furnishing a combination of the types of security listed in 28.2041', 18204:'through 28.2043 or a combination of bonds supported by these types of security and additional surety bonds under 28.202 or', 18205:'28.203. during the period for which a bond supported by security is required, the contractor may substitute one type of', 18206:'security listed in 28.2041 through 28.2043 for another, or may substitute,in wholeor combination,additional surety bonds under 28.202 or 28.203. 28.2041', 18207:'united states bonds or notes. any person required to furnish a bond to the government has the option, instead of', 18208:'furnishing a surety or sureties on the bond, of depositing certain united states bonds or notes in an amount equal', 18209:'at their par value to the penal sum of the bond the act of february 24,1919 31 u.s.c. 9303 and', 18210:'treasury department circular no.154 31 cfr part 225. in addition, a duly executed power of attorney and agreement authorizing the', 18211:'collection or sale of such united states bonds or notes in the event of default ofthe principal on the bond', 18212:'shall accompany the deposited bonds or notes. the contracting officermay a turn securities over to the finance or other authorized', 18213:'agency official;or b deposit them with thetreasurer ofthe unitedstates, a federal reserve bankorbranch with requisite facilities, or other depository designated', 18214:'for that purpose bythe secretary of the treasury, under procedures prescribedby the agency concerned and treasury department circularno.154 exception: the', 18215:'contractingofficer shall deposit all bonds and notes received in the district ofcolumbia withthe treasurer of theunited states. 28.2042certified or cashier’s', 18216:'checks, bank drafts, money orders,or currency. any person requiredto furnish a bond has anoption to furnisha certified orcashier’s check,bank draft,', 18217:'post office moneyorder, or currency,in anamount equal to the penal sum of the bond, instead of furnishing suretyor sureties on', 18218:'the bonds. those furnishing checks,drafts, or moneyordersshalldraw them to the order of theappropriatefederal agency. 28.2043irrevocable letter of credit. a any', 18219:'person required to furnish a bond has the option to furnish a bond secured by an irrevocable letter of credit', 18220:'ilc in an amount equal to the penal sum required to be secured see 28.204. a separate ilc is required', 18221:'for each bond. b the ilc shall be irrevocable, require presentation of no document other than a written demand and', 18222:'the ilc and letter of confirmation, if any, expire only as provided in paragraph f of this subsection, and be', 18223:'issued/confirmed by an acceptable federally insured financial institution as provided in paragraph g of this subsection. c to draw on', 18224:'the ilc, the contracting officershalluse the sight draft set forth in the clauseat 52.22814, and present it with the ilc', 18225:'including letter of confirmation, if any to the issuing financial institution or the confirming financial institution if any. d if', 18226:'the contractor does not furnish an acceptable replacement ilc, or other acceptable substitute, at least 30 days before anilc’s scheduled', 18227:'expiration, the contracting officer shall immediatelydraw on theilc. e if, after the period of performance of a contract where ilcs', 18228:'are used to support payment bonds, there are outstanding claims against the payment bond, thecontracting officer shall draw on the', 18229:'ilc priorto the expiration date of the ilc to cover these claims. f the period for which financial security is', 18230:'required shall be as follows: 1 if used as a bid guarantee, the ilc should expire no earlier than 60', 18231:'days after the close of the bid acceptance period. 2 if used as an alternative to corporate or individual sureties', 18232:'as security for a performance or payment bond, the offeror/contractor may submit an ilc with an initial expirationdate estimated to', 18233:'cover theentire period for which financial security is required or an ilc with an initial expiration date that is a', 18234:'minimum period of oneyear from the date of issuance. the ilc shall provide that, unless the issuer provides the beneficiary', 18235:'written notice of nonrenewal at least 60 days in advance of the current expiration date, the ilc is automatically extended', 18236:'without amendment for oneyear from the expiration date, orany future expiration date, until the period of required coverage iscompleted and', 18237:'thecontracting officer provides the financial institution with a written statement waiving the right to payment. the period of required coverage', 18238:'shall be: i for contracts subject to the bonds statute, the later of a oneyear following the expected date of', 18239:'final payment; b forperformance bonds only, until completion of any warranty period; or c forpayment bonds only, until resolutionof all', 18240:'claims filed against the payment bond duringthe oneyear period following final payment. ii for contracts not subject to the bonds', 18241:'statute, the later of a 90 days following final payment; or subpart 28.2 sureties and other security for bonds 28.2044', 18242:'b forperformance bonds only, until completion of any warranty period. g only federally insured financial institutions rated investment grade shall', 18243:'issue or confirm the ilc. unless the financial institutionissuing the ilc had letterof credit business of at least $25 millionin', 18244:'thepastyear, ilcs over $5 million must be confirmed by another acceptablefinancialinstitution thathadletter ofcredit business of at least $25 million in', 18245:'the past year. 1 the offeror/contractor is required by paragraph d of the clause at 52.22814. irrevocable letter of credit,', 18246:'to provide the contracting officer a credit rating from a recognized commercial rating service that indicates thefinancial institution has the', 18247:'required ratings as of the date of issuance of the ilc. 2 to support the credit rating of the financial', 18248:'institutions issuing or confirming theilc, the contracting officer shall verify the following information: ifederal insurance: each financial institution is federally', 18249:'insured. verification of federal insurance is available through the federal deposit insurance corporation fdic institution directory at the website http://www2.fdic.gov/idasp/', 18250:'index.asp. ii current credit rating. the current credit rating for each financial institution is investment grade and that the credit', 18251:'rating is from a nationally recognized statistical rating organizationnrsro. nrsros can be located at the website http://www.sec.gov/answers/nrsro.htm maintained by the', 18252:'sec. 3 the rating services listed in the website http://www.sec.gov/answers/nrsro.htm use different rating scales e.g., aaa, aa, a, bbb, bb,', 18253:'b, ccc, cc, c, and d; or aaa, aa, a, baa, ba, b, caa, ca, and c to provide evaluations', 18254:'of institutionalcredit risk;however, allsuch systemsspecify the range of investment grade ratingse.g., bbbaaa or baa aaa in the examples in this', 18255:'section and permit evaluation of the relative risk associated with a specific institution. if the contracting officerlearns that a financial', 18256:'institutions rating has dropped below investment grade level, the contracting officer shall give the contractor 30 days to substitute an', 18257:'acceptable ilc or shall draw on the ilc using the sight draft in paragraph g of the clause at 52.22814.', 18258:'h a copy of the uniform customs and practice ucp for documentary credits, 2007 edition, international chamber of commerce publication', 18259:'no. 600, is available from: icc books usa, 1212 avenue of the americas, 21 st floor,new york, ny 10036; phone:', 18260:'2127035078; fax: 2123916568; email: iccbooks@uscib.org; via the internetat:http://www.uscib.org/ucp600 ud4465/. 28.2044 contract clause. insert the clause at 52.22814, irrevocable letter of', 18261:'credit, in solicitations and contracts for services, supplies, or construction, when a bid guarantee, or performance bonds, or performance and', 18262:'payment bonds are required. this page intentionally left blank. 28.26 subpart 28.3 insurance 28.305 subpart 28.3 insurance 28.301 policy. contractors', 18263:'shall carry insurance under the following circumstances: a 1 the government requires any contractor subject to cost accounting standard cas', 18264:'416 48 cfr 9004.416 to obtain insurance, by purchase or selfcoverage, for the perils to which the contractor is exposed,', 18265:'except when ithe government, by providingin the contractin accordance with law,agrees toindemnifythe contractor under specified circumstances; or iithe contract specifically', 18266:'relievesthe contractor ofliability for lossof or damage to government property. 2 the government reserves therightto disapprove the purchase of any', 18267:'insurance coverage not in the government’s interest. 3 allowability of the insurance program’s cost shall be determined in accordance with', 18268:'the criteria in 31.20519. b contractors, whether or not their contracts are subject to cas 416, are required by law', 18269:'and this regulation to provide insurance for certain types of perils e.g., workers’ compensation. insurance is mandatory also when commingling', 18270:'of property,type of operation, circumstances ofownership, orcondition of thecontract makeitnecessary for the protection of the government. the minimum amounts of', 18271:'insurance required by this regulation see 28.3072 may be reduced when a contract is to be performed outside the united', 18272:'states and its outlying areas. when more than one agency is involved, theagency responsible for reviewand approval of a contractor’s', 18273:'insuranceprogramshallcoordinate withotherinterested agencies before acting on significant insurance matters. c contractors awarded nonpersonal services contracts for health care services are', 18274:'required to maintain medical liability insurance and indemnify thegovernment for liability producing acts or omissions by the contractor, its employees', 18275:'and agents see 37.400. 28.302notice of cancellation or change. when the government requires the contractor to provide insurance coverage, the', 18276:'policies shall contain an endorsement that any cancellationor material change in the coverage adversely affecting the government’s interest shall not', 18277:'beeffective unless theinsurer or the contractor gives written notice of cancellation or change as required by the contracting officer. when', 18278:'the coverage is provided by selfinsurance, the contractor shall not change or decrease the coverage without the administrative contracting officer’s', 18279:'prior approval see 28.308c. 28.303 insurance againstloss of or damage to government property. when the government requires or approves insurance', 18280:'to cover loss of or damage to government property see 45.104, responsibility and liability for government property, it may be', 18281:'provided by specific insurance policies or by inclusion of the risks in the contractor’s existing policies. the policies shall disclose', 18282:'thegovernment’s interest inthe property. 28.304riskpooling arrangements. agencies may establish riskpooling arrangements. these arrangements are designed to use the services of', 18283:'the insurance industry for safety engineering and the handling of claims at minimum cost to the government. the agency responsible', 18284:'shall appoint a single manager or point of contact for each arrangement. 28.305overseas workers’ compensation and warhazard insurance. a publicwork', 18285:'contract, as used in this subpart, means any contract for a fixed improvement or for any other project, fixed or', 18286:'not, for the public useof the united states orits allies, involving construction,alteration, removal, or repair, including projects or operations under', 18287:'service contracts and projects in connection with the national defense or with war activities, dredging, harbor improvements, dams, roadways, and', 18288:'housing, as well as preparatory and ancillary work in connection therewith at the site or on the project. b the', 18289:'defense base act 42 u.s.c.1651, etseq. extends the longshoremen’s and harbor workers’ compensation act 33 u.s.c. 901 to various classes', 18290:'of employees working outside the united states, including those engaged in performing 1 publicwork contracts; or 2 contracts approved or', 18291:'financed under the foreign assistance act of1961 pub.l.87195 other than icontracts approved or financed by the development loan fund unlessthe', 18292:'secretary of labor,acting upon the recommendation ofa departmentor agency, determines thatsuch contracts should be covered; or ii contracts exclusively for', 18293:'materials or supplies. federal acquisition regulation c when the defense base act applies see 42 u.s.c.1651, etseq. to these employees,', 18294:'the benefits of the longshoremen’s and harbor workers’ compensation act are extended through operation of the warhazards compensation act 42', 18295:'u.s.c.1701, etseq. to protect the employees against the risk of war hazards injury, death, capture, or detention. when, by means', 18296:'of an insurance policy or a selfinsurance program, the contractor provides the workers’ compensation coverage requiredby the defense base act,', 18297:'the contractor’s employeesautomatically receive warhazard risk protection. d when the agency head recommends a waiver to the secretary oflabor, the', 18298:'secretary maywaive theapplicability of the defense base act to any contract, subcontract, work location, or classification of employees. e if', 18299:'the defense base act is waived for someor all of the contractor’s employees, thebenefits of thewar hazards compensation act are', 18300:'automatically waived with respect to those employees for whom the defense base act is waived. for those employees, the contractor', 18301:'shall provide workers’ compensation coverage against the risk of work injury or death and assume liabilitytoward the employees and their', 18302:'beneficiaries for warhazardinjury, death, capture, ordetention. the contract shall provide either that the costs of this liability or the reasonable', 18303:'costs of insurance against this liability shall be allowed as a cost under the contract. 28.306insurance under fixedprice contracts. a', 18304:'general. although the government is notordinarily concernedwith the contractor’s insurance coverage ifthe contract is a fixedprice contract, in special circumstances', 18305:'agencies may specify insurance requirements under fixedprice contracts. examples of such circumstances include the following: 1 the contractor is, or', 18306:'has a separate operation, engaged principally in government work. 2 government property is involved. 3 the work is to be', 18307:'performed on a government installation. 4 the government elects to assume risks for which the contractor ordinarily obtains commercial insurance.', 18308:'b work on a government installation. 1 when the clause at 52.2285, insuranceworkon agovernmentinstallation, is required to be included in', 18309:'a fixedprice contract by 28.310, the coverage specified in 28.307 is the minimum insurance required and shall be included in', 18310:'the contract schedule orelsewhere in the contract. the contracting officermay require additional coverage and higher limits. 2 when the clause', 18311:'at 52.2285, insurancework ona government installation, is not required by 28.310 but is includedbecause the contractingofficer considers it to be', 18312:'in the government’s interestto do so, any of the typesof insurance specified in 28.307 may be omitted or the limits', 18313:'may be lowered, if appropriate. 28.307 insurance under costreimbursement contracts. costreimbursement contracts and subcontracts, if the terms of the prime', 18314:'contract are extended to the subcontract ordinarily require the types of insurance listed in 28.3072, with the minimum amounts of', 18315:'liability indicated. see 28.308 for selfinsurance. 28.3071group insuranceplans. a prior approval requirement. under costreimbursement contracts, before buying insurance under a', 18316:'group insurance plan, the contractor must submit the plan for approval, in accordance with agency regulations. any change in benefits', 18317:'provided under an approved plan that can reasonably be expected to increase significantly the cost to the government requires similar', 18318:'approval. b premium refunds or credits. the plan shall provide for the government to share in any premium refunds or', 18319:'credits paid orotherwise allowed to the contractor. in determining the extent of the government’s share in anypremium refunds or credits,', 18320:'any special reserves and other refunds to which the contractor may be entitled in the future shall be taken into', 18321:'account. 28.3072liability. a workers’ compensation and employer’s liability. contractors are required to comply with applicable federal and state workers’ compensation', 18322:'and occupational disease statutes. if occupational diseases are not compensable under those statutes, they shall be covered underthe employer’s liabilitysection', 18323:'of the insurance policy, except when contract operations are so commingled with a contractor’scommercial operations that it wouldnot be practical', 18324:'to requirethiscoverage. employer’s liability coverage of at least $100,000 shall be required, except in states with exclusive or monopolistic funds', 18325:'that do not permit workers’ compensation to be written by private carriers. see 28.305c for treatment of contracts subject to', 18326:'the defense base act. subpart 28.3 insurance 28.308 b general liability. 1 the contracting officer shall require bodily injury liability', 18327:'insurancecoverage written onthe comprehensive form of policy of at least $500,000 per occurrence. 2 property damage liability insurance shall be', 18328:'requiredonly in special circumstances as determinedby the agency. c automobile liability. the contracting officer shall require automobile liabilityinsurance written on', 18329:'the comprehensive form of policy. the policy shall provide for bodilyinjury and property damage liability covering the operationof all automobiles', 18330:'used in connection with performing the contract. policies covering automobiles operated in the united states shall provide coverage of at', 18331:'least $200,000 per person and $500,000 per occurrence for bodily injury and $20,000 per occurrence for property damage. the amount', 18332:'of liability coverage on other policies shall be commensurate with any legal requirementsof the localityand sufficient to meet normal and', 18333:'customary claims. d aircraft public and passenger liability. when aircraft are used in connection with performing the contract, the contracting', 18334:'officershallrequire aircraft public and passenger liability insurance. coverage shall be atleast $200,000 per person and $500,000 peroccurrenceforbodily injury, other thanpassenger', 18335:'liability, and $200,000 per occurrence for property damage. coverage for passenger liability bodily injury shall be at least $200,000 multiplied', 18336:'by the number of seats or passengers, whichever is greater. e vessel liability. when contractperformance involves use of vessels,the contracting', 18337:'officershallrequire, as determined by the agency, vessel collisionliability and protectionand indemnity liability insurance. 28.308selfinsurance. a when it is anticipated that', 18338:'50 percent or more of theselfinsurance costs to be incurred at asegment of a contractor’s business will be allocable tonegotiated', 18339:'government contracts, and the selfinsurancecosts at the segment for the contractor’s fiscal year are expected to be $200,000 or more,', 18340:'the contractor shall submit, in writing, information on its proposed self insurance program tothe administrative contracting officer and obtain that', 18341:'official’s approval ofthe program. the submission shall beby segment or segments of thecontractor’sbusinessto whichthe program appliesand shall include 1 a', 18342:'complete description of the program, including any resolution of the board of directors authorizing and adopting coverage, including types of', 18343:'risks, limits of coverage, assignments of safety and loss control, and legal service responsibilities; 2 if available, the corporate insurance', 18344:'manual and organization chart detailing fiscal responsibilities for insurance; 3 the terms regarding insurance coverage for any government property; 4', 18345:'the contractor’s latestfinancialstatements; 5 any selfinsurance feasibility studies or insurance market surveys reporting comparative alternatives; 6 loss history, premiums history,', 18346:'andindustry ratios; 7 a formula for establishing reserves, including percentage variations between losses paid and losses reserved; 8 claims administration', 18347:'policy, practices, and procedures; 9 the method of calculating the projected average loss; and 10 a disclosure of all captive', 18348:'insurance company and reinsurance agreements, including methods of computing cost. b programs of selfinsurance covering a contractor’s insurable risks, including', 18349:'the deductible portion of purchased insurance, may be approved when examinationof aprogramindicates that its application is in the government’s interest.', 18350:'agencies shall not approve a program of selfinsurance for workers’ compensation in a jurisdiction where workers’ compensation does not completely', 18351:'cover the employer’s liability to employees, unless the contractor 1 maintains an approved program of selfinsurance for any employer’s liabilitynot', 18352:'so covered; or 2 shows that the combined cost to the government of selfinsurance for workers’ compensation and commercial insurance', 18353:'for employer’s liability will not exceed the cost of coveringbothkinds of risk by commercialinsurance. c once the administrative contractingofficer hasapproved', 18354:'a program, the contractormust submit to that officialfor approval any major proposedchangesto the program. any program approval may bewithdrawnif a', 18355:'contracting officer finds that either 1 any part of a program does not comply with the requirements of this subpart', 18356:'and/or the criteria at 31.20519; or 2 conditions or situations existing at the time of approval that were a basis', 18357:'for original approval of the program have changed to the extentthat a program changeis necessary. d to qualify for a', 18358:'selfinsurance program, a contractor must demonstrate abilityto sustain the potential losses involved. in making the determination, the contracting officer shall', 18359:'consider the following factors: 1 the soundness of the contractor’s financial condition, including available lines of credit. 2 the geographic', 18360:'dispersion ofassets, so that the potential ofa single loss depleting all the assets is unlikely. 3 the history of previous', 18361:'losses, including frequency of occurrence and the financial impact of each loss. federal acquisition regulation 4 the type and magnitude', 18362:'of risk, such as minor coverage for the deductible portion of purchased insurance or major coverage for hazardous risks. 5', 18363:'the contractor’s compliance withfederal and state lawsand regulations. e agencies shall not approve a program of selfinsurance for catastrophic risks', 18364:'e.g., see 50.1043, special procedures for unusually hazardous or nuclear risks. should performance of government contracts create the risk of', 18365:'catastrophic losses, thegovernment may, to the extentauthorized by law, agree to indemnify thecontractor or recognize an appropriate share of premiums', 18366:'for purchased insurance, or both. f selfinsurance programs to protect a contractor against the costs of correcting its own defects', 18367:'in materials or workmanship shall not be approved. for these purposes, normal rework estimates and warranty costs will not be', 18368:'considered selfinsurance. 28.309contract clauses for workers’ compensation insurance. a thecontracting officer shall insert the clause at 52.2283, workers’ compensationinsurance defense', 18369:'base act,in solicitations and contracts when the defense base act applies see 28.305 and 1 the contract will be a', 18370:'publicwork contract performed outside the united states; or 2 the contract will be approved or financed under the foreign assistance', 18371:'act of1961 pub.l.87195 and is not excluded by 28.305b2. b the contractingofficer shall insertthe clause at 52.2284, worker’s compensation and', 18372:'warhazard insurance overseas, in solicitations and contracts when the contract will be a publicwork contract performed outside the united states', 18373:'and the secretary of labor waives the applicability of the defense base act see 28.305d. 28.310contract clause for work on', 18374:'a government installation. a insert the clause at 52.2285, insurancework ona government installation, in solicitations and contracts if a fixed', 18375:'price contract is contemplated, the contract amount is expected to exceed the simplified acquisition threshold, and the contract will require', 18376:'work on a government installation, unless 1 only a small amount of work is required on the government installation e.g.,a', 18377:'few brief visits permonth; or 2 all work on the government installation will be performed outside the united states and', 18378:'its outlying areas. b the contractingofficer may insert the clause at 52.2285 in solicitations and contracts described in paragraphs a1', 18379:'and 2 of thissection if it is in the government’s interestto do so. 28.311solicitation provision and contract clause on liability', 18380:'insuranceunder costreimbursement contracts. 28.3111 contract clause. in accordance with agency acquisition regulations,the contracting officer shall insert the clause at 52.2287,', 18381:'insurance liability to third persons, in solicitations and contracts, other than those for construction contracts and those for architect engineer', 18382:'services, when a costreimbursement contract is contemplated. 28.3112 agency solicitation provisions and contractclauses. agencies may prescribe their own solicitation provisions', 18383:'and contract clauses to implement the basic policies contained in this subpart 28.3. 28.312contract clause for insurance of leased motor', 18384:'vehicles. the contractingofficer shall insertthe clause at 52.2288, liability and insuranceleased motor vehicles, insolicitations and contracts for the leasing of', 18385:'motor vehicles see subpart 8.11. 28.313 contract clauses for insuranceof transportation or transportationrelated services. a thecontracting officer shall insert the', 18386:'clause at 52.2289, cargo insurance, in solicitations and contracts for transportation or for transportationrelated services, except when freight is shipped', 18387:'under rates subject to released or declared value. b the contractingofficer shall inserta clause substantiallythe same as that at 52.22810,', 18388:'vehicular and generalpublic liability insurance, in solicitations and contracts for transportation or for transportationrelated services when the contracting officer determines', 18389:'that vehicular liability or general public liability insurance requiredby law is not sufficient. part 29 taxes sec. 29.000 scope of', 18390:'part. 29.001 definitions. subpart 29.1 general 29.101 resolving tax problems. subpart 29.2 federal excise taxes 29.201 general. 29.202 general exemptions.', 18391:'29.203 other federal tax exemptions. 29.204 federal excise tax on specific foreign contract payments. subpart 29.3 state and local taxes', 18392:'29.300 scope of subpart. 29.301 [reserved] 29.302 application of state and local taxes to the government. 29.303 application of state', 18393:'and local taxes to government contractors and subcontractors. 29.304 matters requiring special consideration. 29.305 state and local tax exemptions. 29.401', 18394:'29.4011 29.4012 29.4013 29.4014 29.402 29.4021 29.4022 29.4023 29.4024 subpart 29.4 contract clauses domestic contracts. indefinitedelivery contracts for leased equipment.', 18395:'construction contracts performed in north carolina. federal, state, and local taxes. new mexico gross receipts and compensating tax. foreign contracts.', 18396:'foreign fixedprice contracts. foreign costreimbursement contracts. taxon certain foreign procurements. taxes—foreign contracts in afghanistan. this page intentionally left blank. subpart', 18397:'29.1 general 29.101 29.000scope of part. this part prescribes policies and procedures for a using tax clauses in contracts including', 18398:'foreign contracts, b asserting immunity or exemption from taxes, and c obtaining tax refunds. it explains federal, state, and local', 18399:'taxes on certain supplies and services acquired by executive agencies and the applicability of such taxes to the federal government.', 18400:'it is for the general information of government personnel and does not present the full scope of the tax laws', 18401:'and regulations. 29.001definitions. as used in this part— north atlantic treaty organization nato forces means the members of the force,', 18402:'members of the civilian component, nato personnel and all property,equipment, and materiel of nato, nato member states,andoperational partners present in', 18403:'the territory of afghanistan. u.s. forcesmeans theentity comprising the members of theforce andof the civiliancomponent, and all property, equipment, and', 18404:'materiel of the united states armed forces present in the territory of afghanistan. subpart 29.1 general 29.101 resolving tax problems.', 18405:'a contract tax problems are essentiallylegal innature andvary widely. specific tax questions must be resolved by reference to the applicable', 18406:'contract terms and to the pertinent tax laws and regulations. therefore, when tax questions arise, contracting officers should request assistance', 18407:'fromthe agencydesignated legal counsel. b to keep treatment within an agency consistent, contracting officers or other authorized personnelshallconsult the agencydesignated', 18408:'counsel before negotiating with any taxing authority for the purpose of 1 determining whether or not a tax is valid', 18409:'or applicable; or 2 obtaining exemption from, or refund of, a tax. c when the constitutional immunity of the government', 18410:'from state or local taxation may reasonably be at issue, contractors should be discouraged from negotiating independently with taxing authorities', 18411:'if the contract involved is either 1 a costreimbursement contract; or 2 a fixedprice contract containing a tax escalation clause.', 18412:'d before purchasing goodsor services froma foreignsource,the contracting officershouldconsult the agency designated counsel 1 for information on foreign tax treaties', 18413:'and agreements in force and on the implementation of any foreigntaxrelief programs; and 2 to resolve any other tax questions', 18414:'affecting the prospective contract. this page intentionally left blank. 29.12 subpart 29.2 federal excise taxes 29.204 subpart 29.2 federal excise', 18415:'taxes 29.201general. a federal excise taxes are levied on the sale or use of particular supplies or services. subtitle d', 18416:'of the internal revenue code of 1954, miscellaneous excisetaxes, 26 u.s.c.4041, etseq., and its implementing regulations, 26 cfr parts 40', 18417:'through 299, cover miscellaneous federal excise tax requirements. questions arising in this area should be directed to the agencydesignated counsel.', 18418:'the most common excise taxes are 1 manufacturers’ excise taxes imposed on certain motorvehicle articles, tires and inner tubes, gasoline,', 18419:'lubricating oils, coal, fishing equipment, firearms, shells, and cartridges sold by manufacturers, producers, or importers; and 2 specialfuels excise taxes', 18420:'imposed at the retail level on diesel fuel and special motor fuels. b sometimes the law exemptsthe federalgovernmentfrom these taxes.', 18421:'contracting officers should solicit prices on a taxexclusive basis when it is known that the government is exempt from these', 18422:'taxes, and on a taxinclusive basis when no exemption exists. c executive agencies shall take maximum advantage of available federal', 18423:'excise tax exemptions. 29.202general exemptions. no federal manufacturers’ or specialfuels excise taxes are imposed in many contracting situations as, for', 18424:'example, when the supplies are for any of the following: a the exclusive use of any state or political subdivision,', 18425:'including the district of columbia 26 u.s.c. 4041 and 4221. b shipment for export to a foreign country or an', 18426:'outlying area of the united states. shipment must occur within 6 months of the time title passes to the government.', 18427:'when the exemption is claimed, the words for export must appear on the contract or purchase document, and thecontracting officer', 18428:'must furnishthe seller proof ofexport see 26 cfr 48.42213. c further manufacture, or resale for further manufacture this exemption does', 18429:'not include tires and inner tubes 26 cfr 48.42212. d use asfuel supplies, shipsor sea stores, or legitimate equipment on', 18430:'vesselsof war, including 1 aircraft owned by the united states and constituting a part of the armed forces and 2', 18431:'guided missiles and pilotless aircraft owned or chartered by the united states. when this exemption is to be claimed, the', 18432:'purchase should be made on a taxexclusive basis. the contractingofficershallfurnishtheselleranexemptioncertificateforsuppliesforvesselsofwaranexampleisgivenin 26 cfr 48.42214d2 ; the irs will accept one certificate', 18433:'covering all orders under a single contract for a specified period of up to 12 calendar quarters 26 u.s.c. 4041', 18434:'and 4221. e a nonprofit educationalorganization 26 u.s.c. 4041 and 4221. f emergencyvehicles 26 u.s.c. 4053 and 4064b1c. 29.203other federal', 18435:'tax exemptions. a pursuant to 26 u.s.c.4293, the secretary of thetreasury has exempted the unitedstates from the communications excise tax', 18436:'imposed in 26 u.s.c.4251, when the supplies and services are for the exclusive use of the united states. secretarial authorization,', 18437:'june 20,1947, internal revenue cumulative bulletin,19471, 205. b pursuant to 26 u.s.c. 4483b, thesecretaryof the treasury has exempted the united', 18438:'states from the federal highway vehicle users tax imposed in 26 u.s.c. 4481. the exemption applies whether the vehicle is', 18439:'owned or leased by the united states. secretarial authorization, internal revenue cumulative bulletin,19562, 1369. 29.204 federalexcise tax on specific foreign', 18440:'contract payments. a title 26 u.s.c. 5000c and its implementing regulations at 26 cfr 1.5000c1 through 1.5000c7 require acquiring agencies', 18441:'to collect this excise tax via withholding on applicable contract payments see 29.4023, 31.20541b8. agencies merely withhold the tax section', 18442:'5000c tax for the internal revenue service irs. all substantive issues regarding the underlying section 5000c tax, e.g., the imposition', 18443:'of, and exemption from the tax, are matters under the jurisdiction of the irs. thecontracting officer will refer all questionsrelatingto', 18444:'theinterpretation of theirs regulations to https://www.irs.gov/ help/taxlawquestions. b in accordance with the clause 52.22912, tax on certain foreign procurements, contractors', 18445:'thatare subjectto the section 5000c tax will complete irs form w14, certificate of foreign contracting party receiving federal procurement payments,', 18446:'and submit this form with each voucher or invoice. in the absence of a completed irs form w14 accompanying a', 18447:'payment request, the default withholding percentage is 2 percent for the section 5000c withholding for that payment request. information about', 18448:'irs form w14 is available via the internet at www.irs.gov/w14. federal acquisition regulation c 1 exemptions from the withholding in', 18449:'the irs regulations at 26 cfr 1.5000c1d1 through 4 are captured under the provision prescription at 29.4023a i.e., the contractingofficer', 18450:'will not include theprovision when one of the 29.4023a exceptions applies. 2 the exemptions at 26 cfr 1.5000c1d5 through 7', 18451:'must beclaimed by the offeror when it submits anirs form w14 with the offer. if not submitted with the offer,', 18452:'exemptions will notbe applied to the contract. 3 any exemption claimed and selfcertified on the irs form w14 is subject', 18453:'to audit by the irs. any disputes regarding the imposition and collection of the section 5000c tax are adjudicated by', 18454:'the irs as the section 5000c tax is a tax matter, not a contract issue. d the exemptions in 29.201', 18455:'through 29.302 do not apply to this section 5000c tax. e additional information about this excise tax on specific foreign', 18456:'contract payments is available via the internet at https://www.irs.gov/governmententities/excisetaxonspecifiedfederalforeignprocurementpayments. subpart 29.3 state and local taxes 29.304 subpart 29.3 state and', 18457:'local taxes 29.300scope of subpart. this subpart prescribes the policies and procedures regarding the exemption or immunity of federal government', 18458:'purchases and property from state and local taxation. 29.301[reserved] 29.302application of state and local taxes to the government. a generally,', 18459:'purchases and leasesmade by the federal government are immune from state and local taxation. whether any specific purchaseor lease is', 18460:'immune, however,is alegal question requiring advice and assistance of theagencydesignated counsel. b when it is economically feasible to do so,', 18461:'executive agencies shall take maximum advantage of all exemptions from state and local taxation that maybe available. if appropriate, the', 18462:'contracting officer shall provide a standard form 1094, u.s. taxexemptionformsee part 53, or other evidence listed in 29.305a to establish', 18463:'that the purchase is being made by the government. 29.303application of state and local taxes to government contractors and subcontractors.', 18464:'a prime contractors and subcontractors shall not normally be designated as agents of the government for the purpose of claiming', 18465:'immunity from state or local sales or use taxes. before any activity contends that a contractor is an agent of', 18466:'the government, thematter shall be referredto theagency head for review. the referral shall include all pertinent data on which the', 18467:'contention is based, together with a thorough analysis of all relevant legal precedents. b when purchases are not made by', 18468:'the government itself, but by a prime contractor or by a subcontractor under a prime contract, the right to an', 18469:'exemptionof the transaction from a sales or usetax may not rest onthe government’s immunity from direct taxation by states and', 18470:'localities. it may rest instead onprovisionsof the particular state or local law involved, or, in some cases, the transaction maynot', 18471:'in fact be expressly exemptfrom the tax. the government’s interest shall be protected by using the procedures in 29.101. c', 18472:'frequently, property includingpropertyacquired under the progress payments clause of fixedprice contracts or the government property clause of costreimbursement contracts owned', 18473:'by the government is in the possession of a contractor or subcontractor. situations mayarisein which states or localities assert the', 18474:'right to tax government property directly or to taxthe contractor’s or subcontractor’s possession of, interest in, oruse of that property.', 18475:'in suchcases, the contractingofficer shall seek review and advice from the agencydesignated counsel on the appropriate course of action. 29.304', 18476:'matters requiring special consideration. the imposition of state and local taxes may result in special contract considerations including the following:', 18477:'a with coordination of the agencydesignated counsel, a contractmay 1 state thatthe contract price includes or excludes a specified tax', 18478:'or 2 require that the contractor take certain actions with regard to payment, nonpayment, refund, protest, or other treatment of', 18479:'a specified tax. such special treatment may be appropriate when there is doubt as to the applicability or allocability of', 18480:'the tax, or when the applicability of the tax is being litigated. b the applicability of state and local taxes', 18481:'to purchases by the federal government may depend on the place and terms of delivery. when thecontract pricewill be substantial,', 18482:'alternative placesand terms of delivery should be considered in light of possible tax consequences. c indefinitedelivery contracts for equipment rental', 18483:'may require the contractor to furnish equipment in any of the states. since leased equipment remainsthe contractor’s property,states and local', 18484:'governments impose a wide variety of property,use, orother taxes on equipment leased to thegovernment. the amount ofthese taxes canvary considerablyfrom', 18485:'jurisdiction to jurisdiction. see 29.4011 for the prescription of the contract clause to be included in contracts when delivery points', 18486:'are not known at time of contracting. d the north carolina state and local sales and use tax.1the north carolina', 18487:'sales and use tax act authorizes counties and incorporated cities and towns to obtain each year from the commissioner of', 18488:'revenue of the state of north carolina a refund of sales and use taxes indirectly paid on building materials, supplies,', 18489:'fixtures, and equipment that become a part of or are annexed to any building or structure erected, altered, or repaired', 18490:'for such counties and incorporated cities and towns in north carolina. in united states v. clayton,250 f. supp. 8271965, it', 18491:'was held that the united states is entitledto the benefit of the refund, but must follow the refund procedure of', 18492:'the act and the regulations to recover what it is due. federal acquisition regulation 2 the act provides that, to', 18493:'receive therefund,claimants must file,within 6months after the claimant’s fiscal year closes, a written request substantiated by such records, receipts, and', 18494:'information as the commissioner of revenue may require. no refund will be made on an application not filed within the', 18495:'time allowed and in such manner as the commissioner may require. the requirements of the commissioner are set forth in', 18496:'regulations that provide that, to substantiate a refund claim for sales oruse taxes paid onpurchases of building materials, supplies,fixtures,or equipment', 18497:'by a contractor, the government must secure from the contractor certified statements setting forth the cost of the property purchased', 18498:'from each vendor and the amount of sales oruse taxes paid. in the event thecontractor makes several purchases from the', 18499:'same vendor, the certified statement must indicate the invoice numbers, the inclusive dates of the invoices, the total amount of', 18500:'the invoices, and the sales and use taxes paid. the statement must also include the cost of any tangible personal', 18501:'property withdrawn from thecontractor’swarehouse stock and theamount of sales or use taxpaid by the contractor. similar certified statements by subcontractors', 18502:'must be obtained by the general contractor and furnished to the claimant. any local sales or use taxes included in', 18503:'the contractor’s statement mustbe shown separatelyfrom the state salesor usetaxes. 3 the clause prescribed at 29.4012 requires contractorsto submit to', 18504:'contractingofficers by november30 of each year a certified statement disclosing north carolina state and local sales and use taxes paid', 18505:'during the 12month period that ended the preceding september 30. the contracting officer shall ensure thatcontractors comply with this requirement', 18506:'and shall obtain the annual refund to which the government may be entitled. the application for refund must be filed', 18507:'each year before march 31 and in the manner and form required by the commissioner of revenue. copies of the', 18508:'form may be obtained from the state of north carolina, department of revenue, po box 25000 raleigh, north carolina 27640.', 18509:'29.305state and local tax exemptions. a evidence of exemption. evidence needed to establish exemption from state or local taxes depends', 18510:'on the grounds for the exemption claimed, the parties to the transaction, and the requirements of the taxing jurisdiction. such', 18511:'evidence may include the following: 1 a copy of the contract or relevant portion. 2 copies of purchase orders, shipping', 18512:'documents, creditcardimprinted sales slips, paid or acknowledged invoices, or similar documentsthat identify an agency or instrumentality of the united states', 18513:'as the buyer. 3 a u.s. taxexemption form sf 1094. 4 a state or local form indicating that the supplies', 18514:'or services are for the exclusive use of the united states. 5 any other state or locally required document for', 18515:'establishing general or specific exemption. 6 shipping documents indicating that shipments are in interstate or foreign commerce. b furnishing proof', 18516:'of exemption. if a reasonable basis to sustain a claimed exemption exists, the seller will be furnished evidence of exemption,', 18517:'as follows: 1 under a contract containing the clause at 52.2293, federal,state,andlocal taxes,or at 52.2294, federal, state, and local taxes', 18518:'state and localadjustments, in accordancewith the termsof those clauses. 2 under a costreimbursement contract,if requested by the contractor and approved', 18519:'by the contracting officer or at thediscretion of the contracting officer. 3 under a contract or purchase order that contains', 18520:'no tax provision, if irequested by the contractor and approved by thecontracting officer or at thediscretionof the contractingofficer; and iieither', 18521:'the contract price does not include the tax or,if the transaction or property is tax exempt,the contractor consents to a', 18522:'reduction in the contract price. subpart 29.4 contract clauses 29.4014 subpart 29.4 contract clauses 29.401domestic contracts. 29.4011 indefinitedelivery contracts for', 18523:'leased equipment. insert the clause at 52.2291, state and local taxes, insolicitationsand contracts for leased equipment when a a fixedprice', 18524:'indefinitedelivery contract is contemplated; b the contract will be performed wholly or partly in the united states or its outlying', 18525:'areas; and c the place or places of delivery are not known at the time of contracting. 29.4012construction contracts performed', 18526:'in north carolina. the contractingofficer shall insertthe clause at 52.2292, north carolina stateand local sales anduse tax, in solicitations and', 18527:'contracts for construction to be performed in north carolina. if the requirement is for vessel repair to be performed in', 18528:'north carolina, the clause shall be used with its alternatei. 29.4013 federal, state, and local taxes. a except as provided', 18529:'in paragraph b of this section, insert the clause at 52.2293,federal, state, and local taxes, in solicitations and contracts if', 18530:'1 the contract is to be performed wholly or partly in the united states or its outlying areas; 2 a', 18531:'fixedprice contract is contemplated; and 3 the contract is expected to exceed the simplified acquisition threshold. b in a noncompetitive', 18532:'contractthat meets all theconditions in paragrapha of this section,the contracting officermay insert the clause at 52.2294, federal, state, andlocal taxesstateandlocal', 18533:'adjustments, instead of theclause at 52.2293, if the price would otherwise include an inappropriate contingency for potential postaward changes in', 18534:'state or local taxes. 29.4014newmexico gross receipts and compensating tax. a definition. services, as used in this subsection,is as definedin', 18535:'thegross receipts and compensating taxactof the stateof new mexico, sec 793k nm sa1978, and means all activities engaged in for', 18536:'other persons for a consideration, which activities involve predominately the performance ofa service as distinguished from selling or leasing property.', 18537:'services includes activities performed by a person for its members or shareholders. in determining what is a service, the intended', 18538:'use, principal objective or ultimate objective of the contracting parties shall not be controlling. services also includes construction activities and', 18539:'all tangible personal property that will become an ingredient or component part of a construction project. such tangible personal property', 18540:'retains its character as tangible personal property until it is installed as an ingredient or component part ofa construction project', 18541:'in new mexico. however, salesof tangible personalpropertythat will become aningredient or component part of a construction project to persons engaged', 18542:'in the construction business are sales of tangible personal property. b contract clause. thecontracting officer shall insert the clause at', 18543:'52.22910, state of new mexico gross receipts and compensating tax, in solicitations and contracts issued by the agencies identified inparagraph', 18544:'cof this subsection when all three of the following conditions exist: 1 the contractor will be performing a costreimbursement contract.', 18545:'2 the contract directs or authorizes the contractor to acquire tangible personal property as a direct cost under a contract', 18546:'and title to such property passes directly to and vests in the united states upon delivery of the property by', 18547:'the vendor. 3 the contract will be for services to be performed in whole or in part within the state', 18548:'of new mexico. c participating agencies. 1 the agencies listed below have entered into an agreement with the state of', 18549:'new mexico to eliminate the double taxation of government costreimbursement contracts when contractors and their subcontractors purchase tangible personal property', 18550:'to be used in performing services in whole or in part in the state of new mexico and for which', 18551:'title to such property will pass to the united states upon delivery of the property to the contractor and its', 18552:'subcontractorsby the vendor. therefore, the clause applies only to solicitations and contracts issued by the united states defense advanced research', 18553:'projects agency; united states defense threat reduction agency; united states department of agriculture; federal acquisition regulation united states department of', 18554:'the air force; united states department of the army; unitedstates department of energy; united states department of health and human', 18555:'services; united states department of the interior; united states department of labor; united states department of the navy; unitedstates department', 18556:'of transportation; united states general services administration; united states missile defense agency; and united states national aeronautics and space administration.', 18557:'2 any other federal agency which expects to award costreimbursement contracts to be performed in new mexico should contact the', 18558:'new mexico taxation and revenue department to execute a similar agreement. 29.402 foreign contracts. 29.4021foreign fixedprice contracts. a thecontracting officer', 18559:'shall insert the clause at 52.2296, taxesforeign fixedprice contracts, in solicitations and contracts expected to exceed the simplified acquisition threshold', 18560:'when a fixedprice contract is contemplated and the contract is to be performed wholly orpartlyin a foreign country, unless it', 18561:'is contemplated that thecontract willbe with aforeign government. b the contractingofficer shall insertthe clause at 52.2297, taxesfixedprice contracts withforeign governments,', 18562:'in solicitations and contracts that exceed the simplified acquisition threshold when a fixedprice contract with a foreign government is contemplated.', 18563:'29.4022foreign costreimbursement contracts. a thecontracting officer shall insert the clause at 52.2298, taxesforeign costreimbursement contracts, in solicitations and contracts when', 18564:'a costreimbursement contract is contemplated and the contract is to be performed wholly or partly in a foreign country,unlessitis contemplated', 18565:'thatthe contract will bewith a foreigngovernment. b the contractingofficer shall insertthe clause at 52.2299, taxescostreimbursement contracts withforeign governments, in solicitations', 18566:'and contracts when a costreimbursement contract with a foreign government is contemplated. 29.4023taxon certain foreignprocurements. a insert the provision at', 18567:'52.22911, tax on certain foreign procurements—noticeand representation,in solicitations, including solicitations using part 12 procedures for the acquisition of commercial products', 18568:'and commercial services, unless one of the following exceptions applies: 1 acquisitions using simplified acquisition procedures that do not exceed', 18569:'the simplified acquisition threshold as defined in 2.101. 2emergencyacquisitionsusingtheemergencyacquisitionflexibilitiesdefinedin part 18. 3 acquisitions using the unusualand compelling urgencyauthority per 6.3032.', 18570:'4 contracts with a single individual for personal services that will not exceed the simplified acquisition threshold on an annual', 18571:'calendar year basis for all years of the contract. 5 acquisitions if the requiring activity identifies that the requirement is', 18572:'for certain foreign humanitarian assistance contracts which are payments made by the u.s. government agencies pursuant to a contract with', 18573:'a foreign contracting party to obtain goods or services described in or authorized under 7 u.s.c. 1691, et seq., 22', 18574:'u.s.c. 2151, et seq., 22 u.s.c 2601 et seq., 22 u.s.c. 5801 et seq., 22 u.s.c. 5401 et seq., 10', 18575:'u.s.c. 402, 10 u.s.c. 404, 10 u.s.c. 407, 10 u.s.c. 2557, and 10 u.s.c. 2561. b insert the clause at', 18576:'52.22912,tax on certain foreign procurements, in— 1 solicitations that contain the provision at 52.22911, taxon certainforeign procurements—notice and representation; and', 18577:'2 resultant contracts in which the contractor has indicated that it was a foreign person in solicitation provision 52.22911, tax', 18578:'oncertain foreign procurements—notice and representation. subpart 29.4 contract clauses 29.4024 29.4024taxes—foreign contractsin afghanistan. a use the clause at 52.22913, taxes—foreign', 18579:'contracts in afghanistan, insolicitationsand contracts with performance in afghanistan awarded by or on behalf of u.s. forces, unless the clause', 18580:'at 52.22914 is used. b use the clause at 52.22914, taxes—foreign contractsin afghanistan north atlantic treaty organization status of forces', 18581:'agreement, instead of the clause at 52.22913, taxes—foreigncontracts in afghanistan,in solicitations and contracts with performance in afghanistan awarded on behalf', 18582:'of or in support of thenorth atlantictreatyorganization nato, which are governed bythe natostatus of forces agreement sofa. this page intentionally', 18583:'left blank. 29.44 part 30 cost accounting standards administration sec. 30.000 scope of part. 30.001 definitions. subpart 30.1 general 30.101', 18584:'cost accounting standards. 30.102 cost accounting standards board publication. subpart 30.2 cas program requirements 30.201 contract requirements. 30.2011 cas applicability.', 18585:'30.2012 types of cas coverage. 30.2013 solicitation provisions. 30.2014 contract clauses. 30.2015 waiver. 30.2016 findings. 30.2017 cognizant federal agency responsibilities.', 18586:'30.202 disclosure requirements. 30.2021 general requirements. 30.2022 impracticality of submission. 30.2023 amendments and revisions. 30.2024 privileged and confidential information. 30.2025', 18587:'filing disclosure statements. 30.2026 responsibilities. 30.2027 determinations. 30.2028 subcontractor disclosure statements. subpart 30.3 cas rules and regulations [reserved] subpart 30.4', 18588:'cost accounting standards [reserved] subpart 30.5 cost accounting standards for educational institutions [reserved] subpart 30.6 cas administration 30.601 responsibility. 30.602', 18589:'materiality. 30.603 changes to disclosed or established cost accounting practices. 30.6031 required changes. 30.6032 unilateral and desirable changes. 30.604 processing', 18590:'changes to disclosed or established cost accounting practices. 30.605 processing noncompliances. 30.606 resolving cost impacts. 30.607 subcontract administration. this page', 18591:'intentionally left blank. subpart 30.1 general 30.101 30.000scope of part. this part describes policies and procedures for applying the cost', 18592:'accounting standards board casb rules and regulations 48 cfr chapter 99 to negotiated contracts and subcontracts. this part does not', 18593:'apply to sealed bid contracts or to any contract with a small business concern see 48 cfr 9903.2011b for these', 18594:'and other exemptions. 30.001definitions. as used in this part affected cascovered contract or subcontract means a contract or subcontract subject', 18595:'to cost accounting standards cas rules and regulations for which a contractor or subcontractor 1 used one cost accounting practice', 18596:'to estimate costs and a changed cost accounting practice to accumulate and report costs under the contract or subcontract; or', 18597:'2 used a noncompliant practice for purposes of estimating or accumulating and reporting costs under the contract or subcontract. cognizant', 18598:'federal agency official cfao means the contracting officer assigned by the cognizant federal agency to administer the cas. desirable change', 18599:'means a compliantchange to a contractor’s established or disclosed cost accounting practices that thecfao finds is desirable andnot detrimentalto thegovernment', 18600:'and is, therefore, not subject to the no increased cost prohibition provisions of cascovered contractsandsubcontractsaffected by thechange. fixedprice contracts and', 18601:'subcontracts means 1 fixedprice contracts and subcontracts described at 16.202, 16.203 except when price adjustments are based on actual costs', 18602:'of labor or material, described at 16.2031a2, and 16.207; 2 fixedprice incentive contracts and subcontracts where the price is not', 18603:'adjusted based on actual costs incurred subpart 16.4; 3 orders issued under indefinitedelivery contracts and subcontracts where final payment is', 18604:'not based on actual costs incurred subpart 16.5; and 4 the fixedhourly rate portion of timeandmaterials and laborhours contracts and', 18605:'subcontracts subpart 16.6. flexiblypriced contracts and subcontracts means 1 fixedprice contracts and subcontracts described at 16.2031a2, 16.204, 16.205, and 16.206;', 18606:'2 costreimbursement contracts and subcontracts subpart 16.3; 3 incentive contracts and subcontracts where the price may be adjusted based on', 18607:'actual costs incurred subpart 16.4; 4 orders issued under indefinitedelivery contracts and subcontracts where final payment is based on actual', 18608:'costs incurred subpart 16.5; and 5 the materials portion of timeandmaterials contracts and subcontracts subpart 16.6. noncompliance means a failure', 18609:'in estimating, accumulating, or reporting costs to 1 comply with applicable cas; or 2 consistently follow disclosed or established cost', 18610:'accounting practices. required change means 1 a change in cost accounting practice that a contractor is required to make in', 18611:'order to comply with applicable standards, modifications or interpretations thereto, that subsequently becomes applicable to an existing cascovered contract or', 18612:'subcontract due to the receipt of another cascovered contract or subcontract; or 2 a prospective change to adisclosed orestablished cost', 18613:'accounting practice whenthe cfao determines that the former practice was in compliance with applicable cas and the change is necessary', 18614:'for the contractor to remain in compliance. unilateral change means a change in cost accounting practice from one compliant practice', 18615:'to another compliant practice that a contractor with a cascovered contracts or subcontracts elects to make that has not been', 18616:'deemed a desirable change by the cfaoand for which thegovernmentwill pay no aggregate increasedcosts. subpart 30.1 general 30.101cost accounting standards.', 18617:'a 41 u.s.c. chapter 15, cost accounting standards, requires certain contractors and subcontractors to comply with cost accounting standards cas', 18618:'and to disclose in writing and follow consistently their cost accounting practices. federal acquisition regulation b contracts that refer to', 18619:'this part 30 for the purpose of applying the policies, procedures, standards and regulations promulgated by the casb pursuant to', 18620:'41 u.s.c. chapter 15, shall be deemed to refer to the cas, and any other regulations promulgated by the casb', 18621:'see 48 cfr chapter 99, all of which are hereby incorporated in this part 30. 30.102cost accounting standards board publication.', 18622:'copies of the casb standardsandregulations areprinted in title 48 of the code of federal regulations, chapter 99, and may be', 18623:'obtained by writing the superintendent of documents, us governmentpublishing office, washington,dc 20402 or bycalling the washington, dc, ordering deskat 202', 18624:'5121800. subpart 30.2 cas program requirements 30.2014 subpart 30.2 cas program requirements 30.201 contract requirements. title48 cfr 9903.2011 describes the', 18625:'rules for determining whether a proposed contract or subcontract is exempt from cas. negotiated contracts not exempt in accordance with', 18626:'48 cfr 9903.2011b shall be subject to cas. a cascovered contract may be subject to either full or modified coverage.', 18627:'the rules for determining whether full or modified coverage applies are in 48 cfr 9903.2012. 30.2011cas applicability. a see 48', 18628:'cfr 9903.2011. b in accordance with 41 u.s.c. 1502b1b, the threshold for determining the tentative applicability of cas at the', 18629:'contract level is the amount set forth in 10 u.s.c. 3702a1a, as adjusted for inflation in accordance with 41 u.s.c.', 18630:'1908. 30.2012types of cas coverage. see 48 cfr 9903.2012. 30.2013solicitation provisions. a thecontracting officer shall insert the provision at 52.2301,', 18631:'cost accounting standards notices and certification, in solicitations for proposed contracts subject to cas as specified in 48 cfr 9903.201.', 18632:'b if an award to an educationalinstitution is contemplated prior to july 1, 1997, thecontracting officer shall insert the basic', 18633:'provision set forth at 52.2301 with its alternate i, unless the contract is to be performed by a federally funded', 18634:'research and development center ffrdc see 48 cfr 9903.2012c5, or the provision at 48 cfr 9903.2012c6 applies. c insert the', 18635:'provision atfar 52.2307, proposal disclosurecost accounting practice changes, in solicitations for contracts subject to cas as specified in 48 cfr', 18636:'9903.201. 30.2014 contract clauses. a cost accounting standards. 1 the contracting officer shall insert the clause at far 52.2302, cost', 18637:'accounting standards, in negotiated contracts, unless the contract is exempted see 48 cfr 9903.2011, the contract is subject to modified', 18638:'coverage see 48 cfr 9903.2012, or the clause prescribed in paragraph c of this subsection is used. 2 the clause', 18639:'at far 52.2302 requires the contractor to comply with all cas specified in 48 cfr 9904, to disclose actual cost', 18640:'accounting practices applicable to cascovered contracts only, and to follow disclosed and established cost accounting practices consistently. b disclosure and', 18641:'consistency of cost accounting practices. 1 insert the clauseat far 52.2303, disclosure and consistency of cost accounting practices, in negotiated', 18642:'contracts when the contract amount is over $2 million, but less than $50 million, and the offeror certifies it is', 18643:'eligible for andelects to use modifiedcas coveragesee 48 cfr 9903.2012, unless the clause prescribed in paragraph c of this subsection', 18644:'is used. 2 the clause at far 52.2303 requires the contractor to comply with 48 cfr 9904.401, 9904.402, 9904.405, and', 18645:'9904.406 to disclose if it meets certain requirements actual cost accounting practices, and to follow consistently its established cost accounting', 18646:'practices. c disclosure and consistency of cost accounting practicesforeign concerns. 1 the contracting officer shall insert the clause at far', 18647:'52.2304, disclosure and consistency of cost accounting practicesforeign concerns, in negotiated contracts with foreign concerns, unless the contract is otherwise', 18648:'exempt from cas see 48 cfr 9903.2011. foreign concerns do not include foreign governments or their agents or instrumentalities. 2', 18649:'the clause at 52.2304 requires the contractor to comply with 48 cfr 9904.401 and 48 cfr 9904.402 to disclose if', 18650:'it meets certain requirements actual cost accounting practices, and to follow consistently its disclosed and established cost accounting practices. d', 18651:'administration of cost accounting standards. 1 the contracting officershallinsert the clauseat far 52.2306, administration of cost accounting standards, in contracts', 18652:'containing any of the clauses prescribed in paragraphs a, b, c, or e of this subsection. 2 the clause at', 18653:'far 52.2306 specifies rules for administering cas requirements and procedures to be followed in casesof failure to comply. 30.2015 federal', 18654:'acquisition regulation e cost accounting standardseducational institutions. 1 the contracting officer shall insert the clause at far 52.2305, cost accounting', 18655:'standardseducational institution, in negotiated contracts awarded to educational institutions, unless the contract is exempted see 48 cfr 9903.2011, the contract', 18656:'is to be performed by an ffrdc see 48 cfr 9903.2012c 5, or the provision at 48 cfr 9903.2012c6applies. 2', 18657:'the clause at far 52.2305 requires the educational institution to comply with all cas specified in 48 cfr 9905, to', 18658:'disclose actual cost accounting practices as required by 48 cfr 9903.2021f, and to follow disclosed and established cost accounting practices', 18659:'consistently. 30.2015waiver. a the head of the agency 1 may waive the applicability of cas for a particular contract or', 18660:'subcontract under the conditions listed in paragraph b of this subsection; and 2 must not delegate thiswaiver authority to any', 18661:'officialin theagency belowthe senior contract policymaking level. b the head of the agency may grant a waiver when one of', 18662:'the following conditions exists: 1 the contract or subcontract value is less than 15 million, and the head of the', 18663:'agency determines, in writing, that the segment of the contractor or subcontractor that will perform the contract or subcontract i', 18664:'is primarily engaged in the sale of commercial products or commercial services; and ii has no contracts or subcontracts that', 18665:'are subject to cas. 2 the head of the agency determines that exceptional circumstances exist whereby a waiver of cas', 18666:'is necessary to meetthe needsof the agency. exceptional circumstances exist only when thebenefits tobe derived from waiving the cas outweigh', 18667:'the risk associated with the waiver. the determination that exceptional circumstances exist must i be set forth in writing; and', 18668:'iiinclude a statementof the specific circumstances that justify grantingthe waiver. c when one of the conditions in paragraph b of', 18669:'this subsection exists, the request for waiver should include the following: 1 the amount of the proposed award. 2 a', 18670:'description of the contract or subcontract type e.g., firmfixedprice, costreimbursement. 3 whether the segments that will perform the contract or', 18671:'subcontract has cascovered contracts or subcontracts. 4 a description of the items being procured. 5 when the contractor or subcontractor', 18672:'will not accept the contract or subcontract if cas applies, a statement to that effect. 6 whether certified cost or', 18673:'pricing data will be obtained, and if so, a discussion of how the data will be used in negotiating the', 18674:'contract or subcontract price. 7 the benefits to the government of waiving cas. 8 the potential risk to the government', 18675:'of waiving cas. 9 the date by which the waiver is needed. 10 any other information that may be useful', 18676:'in evaluating the request. d when neither of the conditions in paragraph b of this subsection exists, the waiver request', 18677:'must be prepared in accordance with 48 cfr 9903.2015e and submitted to the cas board. e each agency must report', 18678:'any waivers granted under paragraph a of this subsection to the cas board, on a fiscal year basis, notlater than', 18679:'90 days after the closeof the government’s fiscal year. 30.2016 findings. see 48 cfr 9903.2016. 30.2017cognizant federal agency responsibilities. see', 18680:'48 cfr 9903.2017. 30.202 disclosure requirements. 30.2021general requirements. see 48 cfr 9903.2021. subpart 30.2 cas program requirements 30.2027 30.2022 impracticality', 18681:'of submission. see 48 cfr 9903.2022. 30.2023amendments andrevisions. see 48 cfr 9903.2023. 30.2024 privileged and confidential information. see 48 cfr', 18682:'9903.2024. 30.2025filing disclosure statements. see 48 cfr 9903.2025. 30.2026 responsibilities. a thecontracting officer is responsible for determiningwhen aproposed contractmay require', 18683:'cas coverage andfor including the appropriate notice inthe solicitation. the contracting officer must then ensure that the offeror has made', 18684:'the required solicitation certifications and that required disclosure statements are submitted. also see 48 cfr 9903.2013 and 9903.202. b the', 18685:'contractingofficer shall not award a cascovered contract until the cognizant federal agency official cfao has made a written determination that', 18686:'a required disclosure statement is adequate unless, in order to protect the governments interest, the agency head, on a nondelegable', 18687:'basis, authorizes award without obtaining submission of the required disclosure statement see 48 cfr 9903.2022. in this event, the contractor', 18688:'shall submit the required disclosure statement and the cfao shall make a determination of adequacy as soon as possibleafter the', 18689:'award. c the cognizant auditor is responsible for conducting reviews of disclosure statements for adequacy and compliance. d the cfao', 18690:'isresponsibleforissuing determinations of adequacy and compliance of thedisclosurestatement. 30.2027 determinations. a adequacy determination. 1 as prescribed by 48 cfr 9903.2026,', 18691:'the auditor shall i conduct a review of the disclosure statement to ascertain whether it is current, accurate, and complete;', 18692:'and iireport theresults to the cfao. 2 the cfao shall determine if the disclosure statement adequately describes the contractor’s cost', 18693:'accounting practices. also, the cfao shall i if the disclosure statement is adequate, notify the contractor in writing, and provide', 18694:'a copy to the auditor with a copyto the contracting officer if the proposal triggers submission of a disclosure statement.', 18695:'the noticeof adequacy shall state that athe disclosedpractices are adequately describedand the cfao currently is not aware of any additional', 18696:'practices that should be disclosed; b the notice is not a determination that all cost accounting practices were disclosed; and', 18697:'c the contractor shall not consider a disclosed practice, by virtue of such disclosure, an approved practice for estimating proposals', 18698:'or accumulating and reporting contract and subcontract cost data; or ii if the disclosure statement is inadequate, notify the contractor', 18699:'of the inadequacies and request a revised disclosure statement. 3 generally,the cfao should furnish the contractornotification of adequacy or inadequacywithin', 18700:'30 days after the cfao receives the disclosure statement. b compliance determination. 1 afterthe notificationof adequacy, the auditorshall i conduct', 18701:'a detailed compliance review to ascertain whether or not the disclosed practices comply with cas and part 31, as applicable;', 18702:'and iiadvise the cfao of the results. 2 the cfao shall make a determination of compliance or take actionregardinga report', 18703:'of alleged noncompliance in accordance with 30.605b. such action should include requesting a revised disclosure statement that corrects the cas', 18704:'noncompliance. noncompliances with part 31shallbeprocessedseparately. 30.2028 federal acquisition regulation 30.2028subcontractor disclosure statements. a when thegovernmentrequiresdeterminations of adequacyof subcontractor disclosure statements,', 18705:'thecfao for the subcontractor shall provide this determinationto thecfao for the contractor or nexthighertier subcontractor. the higher tier cfaoshallnot change', 18706:'the determination of the lowertier cfao. b any determinationthat it is impractical to secure a subcontractor’s disclosure statement must bemadein', 18707:'accordance with 48 cfr 9903.2022. subpart 30.3 cas rules and regulations [reserved] subpart 30.3 cas rules and regulations [reserved] note:', 18708:'see 48 cfr 9903.3. this page intentionally left blank. 30.32 subpart 30.4 cost accounting standards [reserved] subpart 30.4 cost accounting', 18709:'standards [reserved] note: see 48 cfr part 9904. this page intentionally left blank. 30.42 subpart 30.5 cost accounting standards for', 18710:'educational institutions [reserved] subpart 30.5 cost accounting standards for educational institutions [reserved] note: see 48 cfr part 9905. this page', 18711:'intentionally left blank. 30.52 subpart 30.6 cas administration 30.6031 subpart 30.6 cas administration 30.601 responsibility. a thecfao shall performcas administration', 18712:'for all contracts and subcontracts in abusiness unit, even when the contracting officerretains other administration functions. thecfao shall makeall casrelated', 18713:'requireddeterminations and findings see subpart 1.7 for all cascovered contracts and subcontracts, including 1 whether a change in cost accounting', 18714:'practice or noncompliance has occurred; and 2 if a change in cost accounting practice or noncompliance has occurred, how any', 18715:'resulting cost impacts are resolved. b within 30 days after the award of any new contract subject to cas, thecontracting', 18716:'officer makingthe award shall requestthecfaotoperformadministrationforcasmatterssee subpart 42.2. for subcontract awards, the contractor awarding the subcontract must follow the procedures at', 18717:'52.2306l, m, and n. c inperforming cas administration, the cfao shall request and consider theadviceof the auditor as appropriate see', 18718:'1.6022. 30.602 materiality. a indetermining materiality, the cfao shall usethe criteria in 48 cfr 9903.305. b a cfao determination of', 18719:'materiality 1 may be made before or after a general dollar magnitude proposal has been submitted, depending on the particular', 18720:'facts and circumstances; and 2 shall be based on adequate documentation. c when thecfao determines the cost impact is immaterial,', 18721:'the cfao shall 1 make no contract adjustments and conclude the cost impact process; 2 document the rationale for the', 18722:'determination; and 3 in the case of noncompliance issues, inform the contractor that i the noncompliance should be corrected; and', 18723:'ii if the noncompliance is not corrected, the government reserves the right to make appropriate contract adjustments should the cost', 18724:'impact become material in the future. d for required, unilateral, and desirable changes, and cas noncompliances, when the amount involved', 18725:'is material, the cfao shall follow the applicable provisions in 30.603, 30.604, 30.605, and 30.606. 30.603changes to disclosed or established', 18726:'cost accounting practices. 30.6031required changes. a general. offerors shall statewhetheror not theaward of a contract would require a change to', 18727:'an established cost accounting practice affecting existing contracts and subcontracts see 52.2301. the contracting officershallnotify the cfao ifthe offeror states', 18728:'that a change in cost accounting practice would be required. b cfao responsibilities. prior to making an equitable adjustment under', 18729:'the applicable paragraph s that address a required change at 52.2302, cost accounting standards; 52.2303, disclosure and consistency of cost', 18730:'accounting practices; or 52.2305, cost accounting standardseducational institution, thecfao shall determine that 1 the cost accounting practice change is required', 18731:'to comply with a cas, or a modification or interpretation thereof, that subsequently became applicable to one or more contracts', 18732:'or subcontracts; or 2 the former cost accounting practice was in compliance with applicable cas and the change is necessary', 18733:'to remain in compliance. c notice and proposal preparation. 1 when the award of a contract would require a change', 18734:'to an established cost accounting practice, the provision at 52.2307, proposaldisclosurecost accounting practice changes, requires the offeror to i prepare', 18735:'the contract pricing proposal in response to the solicitation using the changed cost accounting practice for the period of performance', 18736:'for which the practice will be used; and iisubmit a descriptionof the changedcost accountingpracticeto the contracting officer and the cfaoas', 18737:'pricing support for the proposal. 2 when a change is required to remain in compliance for reasons other than a', 18738:'contract award or to comply with a new or modified standard, the clause at 52.2306, administration of cost accounting standards,', 18739:'requires the contractor to 30.6032 federal acquisition regulation isubmit a description of the change to the cfao not lessthan 60', 18740:'days or other mutually agreeable date before implementation of the change; and ii submit rationale to support any contractor written', 18741:'statement that the cost impact of the change is immaterial. d equitable adjustments for new or modified standards. 1 required', 18742:'changes made to comply with new or modified standards mayrequire equitable adjustments, butonlyto those contracts awarded before the effective dateof', 18743:'the new or modified standard see 52.2302, 52.2303, or 52.2305. 2 when a contractor elects to implement a required change', 18744:'to comply with a new or modified standard prior to the applicability date ofthe standard, the cfao shall administer the', 18745:'change asa unilateral change see 30.6032. contractors shall not receive an equitable adjustment that will result in increased costs in', 18746:'the aggregate to the government prior to the applicability date unless the cfaodeterminesthat the unilateral change isa desirablechange. 30.6032 unilateral', 18747:'and desirable changes. a unilateral changes. 1 the contractor may unilaterally change its disclosed or established cost accounting practices, but', 18748:'the government shall not pay any increased cost, in the aggregate, as a result of the unilateral change. 2 prior', 18749:'to making any contract price or cost adjustments under the applicable paragraph s addressing a unilateral change at 52.2302, 52.2303,', 18750:'or 52.2305,the cfao shall determine that i the contemplated contract price or cost adjustments will protect the government from the', 18751:'payment of the estimated increased costs, in the aggregate; and iithe net effect of the contemplated adjustments will not result', 18752:'in the recovery of more than the increased costs to the government, in the aggregate. b desirable changes. 1 prior', 18753:'to taking action under the applicable paragraph s addressing a desirable change at 52.2302, 52.2303, or 52.2305, thecfao shall determine', 18754:'thechange is a desirable change and not detrimental to the interests of the government. 2 until thecfao has determined a', 18755:'change to a cost accounting practice isa desirablechange, the change is a unilateral change. 3 some factors to consider in', 18756:'determining if a change is desirable include, but are not limited to, whether i the contractor must change the cost', 18757:'accounting practices it uses for government contract and subcontract costing purposes to remain in compliance with the provisions of part', 18758:'31; ii the contractor is initiating management actions directly associated with the change that will result in cost savings for', 18759:'segments with cascovered contracts and subcontracts over a period for which forward pricing rates are developed or 5 years, whichever', 18760:'is shorter, and the cost savings are reflected in the forward pricing rates; and iii funds are available if the', 18761:'determination would necessitate an upward adjustment of contract cost or price. c notice and proposal preparation. 1 when a contractor', 18762:'makes a unilateral change, the clause at 52.2306, administration of cost accounting standards, requires the contractor to isubmit a description', 18763:'of the change to the cfao not lessthan 60 days or other mutually agreeable date before implementation of the change;', 18764:'and ii submit rationale to support any contractor written statement that the cost impact of the change is immaterial. 2', 18765:'if a contractor implements the change in cost accounting practice without submitting the notice as required in paragraph c1 ofthissubsection,', 18766:'the cfao may determine the change a failure to followa cost accounting practice consistently and process it as a noncompliance', 18767:'in accordance with 30.605. d retroactive changes. 1 if a contractor requests that a unilateral change be retroactive, the contractor', 18768:'shall submit supporting rationale. 2 the cfao shall promptly evaluate the contractor’s request and shall, as soon aspractical,notify the contractor', 18769:'in writing whether the request is or is not approved. 3 the cfao shall not approvea date for the retroactive', 18770:'change that is before the beginning of the contractor’s fiscal year in which the request is made. e contractor accounting', 18771:'changes due to external restructuring activities. the requirements for contract price and cost adjustments do not apply to compliant cost', 18772:'accounting practice changes that are directly associated with external restructuring activities that are subject to and meet the requirements of', 18773:'10 u.s.c. 3761. however, the disclosure requirements in 52.2306b shall be followed. 30.604 processingchanges to disclosed or established cost accountingpractices.', 18774:'a scope. this section applies to required, unilateral, and desirable changes in cost accounting practices. subpart 30.6 cas administration 30.604', 18775:'b procedures. upon receiptof the contractor’s notification and descriptionof the change incost accountingpractice, the cfao should review the proposed changeconcurrently', 18776:'for adequacy and compliance. the cfao shall 1 if the description of the change is both adequate and compliant, notify', 18777:'the contractor in writing and i for required or unilateral changes except those requested to be determined desirable changes, request', 18778:'the contractor submit ageneral dollar magnitudegdm proposal by a specified date, unless the cfao determines the cost impact is immaterial;', 18779:'or ii for unilateral changes that the contractor requests to be determined desirable changes, inform the contractor that the request', 18780:'shall include supporting rationale and a for any request based on the criteria in 30.6032b3ii, the data necessary to demonstrate', 18781:'the required cost savings; or b for any request other than those based on the criteria in 30.6032b3ii, a gdm', 18782:'proposal and any other datanecessary for the cfao to determine if thechange isa desirablechange; 2 if the description of the', 18783:'change is inadequate, request a revised description of the new cost accounting practice; and 3 if the disclosedpractice is noncompliant,notify', 18784:'the contractor inwriting that, if implemented, the cfaowill determine the cost accounting practice to be noncompliant and processitaccordingly. c evaluating', 18785:'requests for desirable changes. 1 when a contractor requests a unilateral change be determined a desirable change,the cfao shall promptly', 18786:'evaluate thecontractor’s request and,as soon as practical, notify the contractor in writing whether the change is a desirable change or', 18787:'the request is denied. 2 if the cfao determines the change is a desirable change,the cfao shall negotiate any cost', 18788:'or price adjustments that may be needed to resolve the cost impact see 30.606. 3 if the request isdenied, thechange', 18789:'isa unilateral change and shall be processedaccordingly. d general dollar magnitude proposal. the gdm proposal 1 provides information to the', 18790:'cfao on the estimatedoverallimpact of a change in cost accounting practice on affected cascovered contracts and subcontracts that were awarded', 18791:'based on the previouscost accountingpractice; 2 assists the cfao in determining whether individual contract price orcostadjustments are required; and 3', 18792:'the contractor may submit a detailed costimpact dci proposal in lieu of a gdm proposal provided the dci proposal is', 18793:'in accordance with paragraph g of this section. e general dollar magnitude proposal content. the gdm proposal 1 shall calculate', 18794:'the cost impact in accordance with paragraph h of this section; 2 may use one or more of the following', 18795:'methods to determine the increase or decrease in cost accumulations: iarepresentative sample of affected cascovered contractsandsubcontracts. ii the change in', 18796:'indirect rates multiplied by the total estimated base computed for each of the following groups: a fixedprice contracts and subcontracts.', 18797:'b flexiblypriced contracts and subcontracts. iii any other method that provides a reasonable approximation of the total increase or decrease', 18798:'in cost accumulations for allaffected fixedprice and flexiblypriced contracts and subcontracts. 3 maybe inany format acceptable to the cfao but,', 18799:'as a minimum,shallinclude the followingdata: iageneral dollar magnitudeestimateof the total increase ordecrease in cost accumulations by executive agency, including any', 18800:'impact the change may have on contract and subcontract incentives, fees, and profits, for each of the following groups: a', 18801:'fixedprice contracts and subcontracts. b flexiblypriced contracts and subcontracts. ii for unilateral changes, the increased or decreased costs to the', 18802:'government for each of the following groups: a fixedprice contracts and subcontracts. b flexiblypriced contracts and subcontracts; and 4 when', 18803:'requestedby the cfao, shall identify allaffected cascovered contracts and subcontracts. f general dollar magnitude proposal evaluation. the cfao shall promptly', 18804:'evaluate thegdm proposal. ifthe cost impact is immaterial, the cfao shall notify the contractorin writing andconclude the costimpact process with', 18805:'no contract adjustments. otherwise, the cfaoshall 1 negotiate and resolve the cost impact see 30.606. if necessary, thecfao mayrequest that', 18806:'the contractor submit a revised gdm proposal by a specified date with specific additional data needed to resolve the cost', 18807:'impact e.g., an expanded sample of affected cascovered contractsandsubcontractsor arevised method of computing the increaseor decrease in cost accumulations; or', 18808:'federal acquisition regulation 2 request that the contractor submit a dci proposalby aspecified date if the cfao determines that the', 18809:'gdm proposal is not sufficient toresolve the cost impact. g detailed costimpact proposal. if the contractor is required to submit', 18810:'a dci proposal, the cfao shall promptly evaluate the dci proposal and follow the procedures at 30.606 to negotiate and', 18811:'resolve the cost impact. the dci proposal 1 shall calculate the cost impact in accordance with paragraph h of this', 18812:'section; 2 shall show the estimated increase ordecrease in cost accumulations for each affected cascoveredcontract and subcontract unless the cfao', 18813:'and contractor agree to iinclude only thoseaffected cascovered contracts and subcontracts exceeding a specified amount; and iiestimatethe total increase or', 18814:'decreasein cost accumulations for allaffected cascovered contracts and subcontracts, using the results in paragraph g2i of this section; 3 maybe', 18815:'inany format acceptable to the cfao but, as a minimum,shallinclude the requirements at paragraphs e 3i and ii of this', 18816:'section; and 4 when requestedby the cfao, shall identify allaffected contracts and subcontracts. h calculating cost impacts. the cost impact', 18817:'calculation shall 1 includeallaffected cascovered contracts and subcontracts regardlessof their statusi.e., open or closed or the fiscal years in which', 18818:'the costs are incurred i.e., whether or not the final indirect rates have been established; 2 combine the costimpact for', 18819:'all affected cascovered contracts and subcontracts for all segments if the effect of a change results in costs flowing between', 18820:'those segments; 3 for unilateral changes i determine the increased or decreased cost to the government for flexiblypriced contracts and', 18821:'subcontracts as follows: a when the estimated cost to complete using the changed practice exceeds the estimated cost to complete', 18822:'using thecurrent practice, thedifference isincreased costto the government. b when the estimated costs to complete using the changed practice is', 18823:'less than the estimated cost to complete using the currentpractice, the differenceis decreased cost to the government. ii determine the', 18824:'increased or decreased cost to the government for fixedprice contracts and subcontracts as follows: a when the estimated cost to', 18825:'complete using the changed practice is less than the estimated cost to complete using the currentpractice, the differenceis increased cost', 18826:'tothe government. b when the estimated cost to complete using the changed practice exceeds the estimated cost to complete using', 18827:'thecurrent practice, thedifference isdecreasedcost to thegovernment. iii calculate the total increase or decrease in contract and subcontract incentives, fees, and', 18828:'profits associated with the increased or decreased cost to the government in accordance with 48 cfr 9903.306c. the associated increase', 18829:'or decrease is based on the difference betweenthe negotiatedincentives, feesandprofits and the amounts that would have been negotiated had the', 18830:'cost impact been known at the time the contracts and subcontracts were negotiated. iv calculate the increased cost to the', 18831:'government in the aggregate. 4 for required or desirable changes, negotiate an equitable adjustment as provided in the changes clause', 18832:'of the contract. i remedies. if the contractor does not submit the accounting change description or the proposals required in', 18833:'paragraph d or g ofthis section within the specifiedtime, or any extension granted by thecfao, the cfaoshall 1 estimate thegeneral', 18834:'dollar magnitudeof the cost impact onaffected cascovered contracts and subcontracts; and 2 takeoneor both of thefollowing actions: iwithholdan amountnot to', 18835:'exceed 10 percent of eachsubsequentpayment related to the contractor’s cas covered contracts up to the estimated general dollar magnitude of', 18836:'the cost impact, until the contractor furnishes the required information. ii issue a final decision in accordance with 33.211 and', 18837:'unilaterally adjust the contracts by the estimated amount of the cost impact. 30.605 processingnoncompliances. a general. prior to making any', 18838:'contract price or cost adjustments under the applicable paragraph s addressing noncompliance at 52.2302, 52.2303, or 52.2305, the cfao shall', 18839:'determine that 1 the contemplated contract price or cost adjustments will protect the government from the payment of increased costs,', 18840:'in the aggregate; subpart 30.6 cas administration 30.605 2 the net effectof the contemplated contract price or costadjustments will notresult', 18841:'in the recoveryof more than the increased costs to the government, in the aggregate; 3 the net effectof any invoice', 18842:'adjustments made to correct an estimatingnoncompliance will notresult in the recovery of more than the increased costs paid by the', 18843:'government, in the aggregate; and 4 the net effectof any interim and final voucherbilling adjustments made to correct a cost', 18844:'accumulation noncompliance will not result in the recovery of more than the increased cost paid by the government, in the', 18845:'aggregate. b notice and determination. 1 within 15days of receiving areport ofallegednoncompliance from the auditor, the cfao shall inotify the', 18846:'auditor thatthe cfao disagrees with the alleged noncompliance; or iiissuea noticeof potential noncompliance to the contractorandprovide acopy to the auditor.', 18847:'2 the notice of potential noncompliance shall i notify the contractor in writing of the exact nature of the noncompliance;', 18848:'and ii allow the contractor 60 days or other mutually agreeable date to a agree or submit reasons why the', 18849:'contractor considers the existing practices to be in compliance; and b submit rationale to support any written statement that the', 18850:'cost impact of the noncompliance is immaterial. 3 the cfao shall i if applicable, review the reasons why the contractor', 18851:'considers the existing practices to be compliant or the cost impact to be immaterial; ii make a determination of compliance', 18852:'or noncompliance consistent with 1.704; and iii notify the contractor and the auditor in writing of the determination of compliance', 18853:'or noncompliance and the basis for the determination. 4 if the cfao makes a determination of noncompliance,the cfao shall follow', 18854:'the procedures in paragraphsc through h of this section, as appropriate, unless the cfao also determines thecost impact is immaterial.', 18855:'if immaterial, the cfao shall i inform the contractor in writing that a the noncompliance should be corrected; and b', 18856:'if the noncompliance is not corrected, the government reserves the right to make appropriate contract adjustments should the noncompliance become', 18857:'material in the future; and ii conclude the costimpact process with no contract adjustments. c correcting noncompliances. 1 the clause', 18858:'at 52.2306 requires the contractor to submit a description of any cost accounting practice change needed to correct a noncompliance', 18859:'within 60 days after the earlier of iagreement with thecfao that there is a noncompliance; or iinotificationby the cfao of', 18860:'a determination of noncompliance. 2 the cfao should reviewthe proposed change to correct the noncompliance concurrently for adequacy and compliance', 18861:'see 30.2027. thecfao shall i when the description of the change is both adequate and compliant a notify the contractor', 18862:'in writing; b request that the contractor submit by a specified date a general dollar magnitude gdm proposal, unless the', 18863:'cfao determines the cost impactis immaterial; and c follow the procedures at paragraph b4 of thissection if the cfao determines', 18864:'thecostimpact is immaterial. ii if the description of the change is inadequate, request a revised description of the new cost', 18865:'accounting practice; or iii if thedisclosed practice isnoncompliant, notify the contractorin writingthat, ifimplemented, the cfao will determine the cost accounting', 18866:'practice to be noncompliant and processitaccordingly. d general dollar magnitude proposal content. the gdm proposal 1 shall calculate the cost', 18867:'impact in accordance with paragraph h of this section; 2 may use one or more of the following methods to', 18868:'determine the increase or decrease in contract and subcontract price or cost accumulations, as applicable: iarepresentative sample of affected cascovered', 18869:'contractsandsubcontractsaffected by thenoncompliance. ii when the noncompliance involves cost accumulation, the change in indirect rates multiplied by the applicable base', 18870:'for flexiblypriced contracts and subcontracts. federal acquisition regulation iii any other method that provides a reasonable approximation of the total', 18871:'increase or decrease in contract and subcontract prices and cost accumulations; 3 the contractor may submit a dci proposal in', 18872:'lieu of a gdm proposal provided the dci proposal is in accordance with paragraph f of this section. 4 maybe', 18873:'inany format acceptable to the cfao but, as a minimum,shallinclude the followingdata: i the total increase or decrease in contract', 18874:'and subcontract prices and cost accumulations, as applicable, by executive agency, including any impact the noncompliance mayhaveon contractandsubcontract incentives, fees,', 18875:'and profits, for each of the following groups: a fixedprice contracts and subcontracts. b flexiblypriced contracts and subcontracts. ii the', 18876:'increased or decreased costs to the government for each of the following groups: a fixedprice contracts and subcontracts. b flexiblypriced', 18877:'contracts and subcontracts. iii the total overpayments and underpayments for fixedprice and flexiblypriced contracts made by the government during the', 18878:'period of noncompliance; and 5 when requestedby the cfao, shall identify allaffected cascovered contracts and subcontracts. e general dollar magnitude', 18879:'proposal evaluation. the cfao shall promptly evaluate the gdm proposal. if the cost impact is immaterial, the cfao shall follow', 18880:'the requirements in paragraphb4 of this section. otherwise, the cfaoshall 1 negotiate and resolve the cost impact see 30.606. if', 18881:'necessary, thecfao mayrequest the contractorsubmit a revised gdm proposal by a specified date, with specific additional data needed to resolve', 18882:'the cost impact e.g., an expanded sample of affected cascovered contractsandsubcontractsor arevised method of computing the increaseor decrease in contract', 18883:'and subcontract price and cost accumulations; or 2 request that the contractor submit a dci proposalby aspecified date if the', 18884:'cfao determines that the gdm proposal is not sufficient toresolve the cost impact. f detailed costimpact proposal. if thecontractor is', 18885:'required to submit a dci proposal, the cfao shall promptly evaluate the dci proposal and follow the procedures at 30.606', 18886:'to negotiate and resolve the cost impact. the dci proposal 1 shall calculate the cost impact in accordance with paragraph', 18887:'h of this section. 2 shall show the increase or decrease in price and cost accumulations, asapplicable for eachaffected cascovered', 18888:'contract and subcontractunlessthe cfao and contractor agree to iinclude only thoseaffected cascovered contracts and subcontracts having a contract and subcontract', 18889:'values exceeding a specified amount when the noncompliance involves estimating costs; and b incurred costs exceeding a specified amount when', 18890:'the noncompliance involves accumulating costs; and iiestimatethe total increase or decreasein price and cost accumulations for all affected cascovered contracts', 18891:'and subcontracts using the results in paragraph f2i of this section; 3 maybe inany format acceptable to the cfao but,', 18892:'as a minimum,shallinclude the information in paragraph d4 of this section; and 4 when requestedby the cfao, shall identify allaffected', 18893:'cascovered contracts and subcontracts. g interest. the cfao shall 1 separately identify interest on any increased cost paid, in the', 18894:'aggregate, as a result of the noncompliance; 2 compute interest from the date of overpayment to the date of repayment', 18895:'using the rate specified in 26 u.s.c. 6621a2. h calculating cost impacts. the cost impact calculation shall 1 includeallaffected cascovered', 18896:'contracts and subcontracts regardlessof their statusi.e., open or closed or the fiscal year in which the costs are incurred i.e.,', 18897:'whether or not the final indirect cost rates have been established; 2 combine the costimpact for all affected cascovered contracts', 18898:'and subcontracts for all segments if the effect of a change results in costs flowing between those segments; 3 for', 18899:'noncompliances that involve estimating costs, determine the increased or decreased cost to the government for fixedprice contracts and subcontracts as', 18900:'follows: i when the negotiated contract or subcontract price exceeds what the negotiated price would have been had the contractor', 18901:'used acompliant practice, the difference is increased cost to the government. ii when the negotiated contract or subcontract price is', 18902:'less than what the negotiated price would have been had the contractor used acompliant practice, the difference is decreasedcostto thegovernment;', 18903:'subpart 30.6 cas administration 30.606 4 for noncompliances that involve accumulating costs, determine the increased or decreased cost to the', 18904:'government for flexiblypriced contracts and subcontracts as follows: i when the costs that were accumulated under the noncompliant practice exceed', 18905:'the costs that would have been accumulated using a compliant practice from the time the noncompliant practice was first implemented', 18906:'until the date the noncompliant practice was replaced with a compliant practice, the difference is increased cost to the government.', 18907:'ii when the costs that were accumulated under the noncompliant practice are less than the costs that would have been', 18908:'accumulated using a compliant practice from the time the noncompliant practice was first implemented until the date thenoncompliant practice was', 18909:'replaced with a compliantpractice the differenceis decreased cost to the government; 5 calculate the total increase or decrease in contract', 18910:'and subcontract incentives, fees, and profits associated with the increased or decreased costs to the government in accordance with 48', 18911:'cfr 9903.306c. the associated increase or decrease is based on the difference betweenthe negotiatedincentives, fees, and profits and the amounts', 18912:'that would have been negotiated had the contractor used a compliant practice; 6 determine the costimpact of each noncompliance that', 18913:'affects both cost estimating and cost accumulation by combining the cost impacts in paragraphs h3, h4, and h5 of this', 18914:'section; and 7 calculate the increased cost to the government in the aggregate. i remedies. if the contractor does not', 18915:'correct the noncompliance or submit the proposal required in paragraph d or f of this section withinthe specified time, or', 18916:'any extension grantedby the cfao, the cfao shall followthe procedures at 30.604i. 30.606resolving cost impacts. a general. 1 the cfaoshallcoordinate', 18917:'withthe affected contractingofficers beforenegotiating and resolving the cost impact whenthe estimated costimpact on any of their contracts is at least', 18918:'$100,000. however, thecfao has the sole authority for negotiating and resolving the cost impact. 2 the cfao may resolvea cost', 18919:'impactattributed to achange in cost accounting practice or a noncompliance by adjusting a single contract, several but not all contracts,', 18920:'all contracts, or any other suitable method. 3 in resolving thecostimpact,the cfao i shall not combine the cost impacts of', 18921:'any of the following: a a required change and a unilateral change. b a required change and a noncompliance. c', 18922:'a desirable change and a unilateral change. d a desirable change and a noncompliance. ii shall not combine the cost', 18923:'impacts of any of the following unless all of the cost impacts are increased costs to government: a one or', 18924:'more unilateral changes. b one or more noncompliances. c unilateral changes and noncompliances; and iii may consider thecostimpacts of a', 18925:'unilateral change affecting twoor more segments to be a single change if athe change affectsthe flowof costs between segments; or', 18926:'b implements a common cost accounting practice for two or more segments. 4 for desirable changes, the cfao should consider', 18927:'theestimated cost impact ofassociated managementactions on contract costs in resolving the cost impact. b negotiations. thecfao shall 1 negotiate and', 18928:'resolve the cost impact on behalf of all government agencies; and 2 at the conclusion ofnegotiations, preparea negotiationmemorandum and sendcopies', 18929:'tothe auditor and affected contracting officers. c contract adjustments. 1the cfaomay adjust some or all contracts with a material cost', 18930:'impact, subject tothe provisions in paragraphs c2 through c6 of this section. 2 in selecting the contract orcontracts to be', 18931:'adjusted, the cfao should assure, tothe maximum extentpractical and subject to the provisions in paragraphs c3 through c6 of this', 18932:'section, that the adjustments reflect a pro rata share of the cost impact based on the ratio of the cost', 18933:'impact of each executive agency to the total cost impact. 3 for unilateral changes and noncompliances, the cfao shall ito', 18934:'themaximum extent practical, not adjust theprice upward for fixedprice contracts; federal acquisition regulation ii if contract adjustments are made, preclude', 18935:'payment of aggregate increased costs by taking one or both of the following actions: a reduce the contract price on', 18936:'fixedprice contracts. b disallow costs on flexiblypriced contracts; and iii the cfao may, in consultation withthe affected contractingofficers, increase or', 18937:'decrease individual contract prices, including contractcost ceilings or target costs onflexiblypriced contracts. in such cases, the cfaoshall limit any upward', 18938:'contractprice adjustments on affected contracts tothe amountof downward priceadjustments toother affected contracts, i.e., the aggregateprice of all contracts affected bya', 18939:'unilateral change shall not beincreased 48cfr 9903.2016b. 4 for noncompliancesthat involve estimating costs, the cfao i shall, to the extent', 18940:'practical, not adjust the price upward for fixedprice contracts; ii shall, if contract adjustments are made, preclude payment of aggregate', 18941:'increased costs by reducing the contract price on fixedprice contracts; iii may, in consultation with the affectedcontracting officers, increase or', 18942:'decrease individualcontract prices, including costs ceilings or target costs on flexiblypriced contracts. in such cases,the cfao shall limit any upwardcontract', 18943:'price adjustments to affectedcontracts to the amountof downward price adjustments toother affected contracts, i.e., the aggregate priceof all contracts affected', 18944:'by a noncompliancethat involves estimating costs shall not be increased 48 cfr 9903.2016d; iv shall require the contractor to correct', 18945:'the noncompliance, i.e., ensure that compliant cost accounting practices will now be utilized to estimate proposed contract costs; and v', 18946:'shall require the contractor to adjust any invoices that were paid based on noncompliant contract prices to reflect the adjusted', 18947:'contract prices, after any contract price adjustments are made to resolve the noncompliance. 5 for noncompliancesthat involve costaccumulation,the cfao i', 18948:'shall require the contractor to acorrect noncompliant contractcost accumulations inthe contractor’s cost accounting records for affected contracts to reflect compliant', 18949:'contract cost accumulations; and b adjust interim payment requests public vouchers and/or progress payments and final vouchers to reflect thedifference', 18950:'between the costs paid using the noncompliant practice and thecosts thatshouldhavebeenpaid using the compliant practice; or iishalladjust contract prices. in', 18951:'adjusting contractprices, thecfao shall preclude payment ofaggregate increased costs by disallowing costs on flexiblypriced contracts. athe cfao may, in consultation', 18952:'withthe affected contractingofficers, increase ordecrease individual contract prices, including costs ceilings or target costs on flexiblypriced contracts. in suchcases, the', 18953:'cfao shall limit any upward contract price adjustments to affected contracts to theamount of downward price adjustmentsto other affected contracts,', 18954:'i.e., the aggregate priceof all contracts affected by a noncompliancethat involves cost accumulation shall not be increased 48 cfr 9903.2016d.', 18955:'b shall require the contractor to 1 correctcontract cost accumulations in the contractor’s cost accounting records to reflectthe contract price', 18956:'adjustments; and 2 adjust interim payment requests public vouchers and/or progress payments and final vouchers to reflect the contract price', 18957:'adjustments. 6 when contractadjustments aremade, the cfao shall iexecute the bilateral modifications if the cfao and contractor agree on the', 18958:'amount ofthe cost impact and the adjustments see 42.302a11iv; or iiwhen the cfaoand contractor do not agree onthe amountof the', 18959:'cost impactor the contract adjustments, issue a final decision in accordance with 33.211 and unilaterally adjust the contracts. d alternate', 18960:'methods. 1 thecfao mayuse an alternate methodinstead of adjustingcontracts to resolvethe cost impact, provided thegovernment will not pay more, inthe', 18961:'aggregate, than wouldbe paid if the cfao did notuse the alternate method and the contracting parties agree on the use', 18962:'of that alternate method. 2 the cfao may notuse an alternate methodforcontracts when application of the alternatemethod to contracts would', 18963:'result in i an under recovery of monies by the government e.g., due to cost overruns; or subpart 30.6 cas', 18964:'administration 30.607 iidistortionsof incentiveprovisionsandrelationships between target costs, ceiling costs, and actual costs for incentive type contracts. 3 when using analternate', 18965:'method that excludes the costs froman indirect cost pool,the cfao shall i apply such exclusion only to the determination of', 18966:'final indirect cost rates see 42.705; and ii adjust the exclusion to reflect the government participation rate for flexiblypriced contracts', 18967:'and subcontracts. for example, if there are aggregate increased costs to the government of $100,000, and the indirect cost pool', 18968:'where the adjustment isto beeffected hasa government participation rate of50 percentforflexiblypriced contracts and subcontracts, the contractor shall exclude $200,000 from', 18969:'the indirect cost pool $100,000/50% = $200,000. 30.607subcontract administration. when a negotiated cas price adjustment or a determination of noncompliance', 18970:'is required at the subcontract level, the cfao for the subcontractor shall furnish a copy of thenegotiation memorandum or the', 18971:'determination tothe cfao for the contractor ofthe next highertier subcontractor. the cfao of thecontractor or thenext highertier subcontractor shall not', 18972:'change the determination ofthe cfao for the lowertier subcontractor. if the subcontractor refuses to submit a gdm or dci proposal,', 18973:'remedies are made at the prime contractor level. this page intentionally left blank. 30.610 part 31 contract cost principles and', 18974:'procedures sec. 31.000 scope of part. 31.001 definitions. 31.002 availabilityofaccountingguide. subpart 31.1 applicability 31.100 scope of subpart. 31.101 objectives. 31.102', 18975:'fixedprice contracts. 31.103 contracts with commercial organizations. 31.104 contracts with educational institutions. 31.105 construction and architectengineer contracts. 31.106 [reserved] 31.107', 18976:'contracts with state, local, and federally recognized indian tribal governments. 31.108 contractswithnonprofitorganizations. 31.109 advance agreements. 31.110 indirect cost rate certification', 18977:'and penalties on unallowable costs. subpart 31.2 contracts with commercial organizations 31.201 general. 31.2011 composition of total cost. 31.2012 determining', 18978:'allowability. 31.2013 determining reasonableness. 31.2014 determining allocability. 31.2015 credits. 31.2016 accounting for unallowable costs. 31.2017 construction and architectengineer contracts. 31.202', 18979:'direct costs. 31.203 indirect costs. 31.204 application of principles and procedures. 31.205 selected costs. 31.2051 public relations and advertising costs.', 18980:'31.2052 [reserved] 31.2053 bad debts. 31.2054 bonding costs. 31.2055 [reserved] 31.2056 compensation for personal services. 31.2057 contingencies. 31.2058 contributions or', 18981:'donations. 31.2059 [reserved] 31.20510 costofmoney. 31.20511 depreciation. 31.20512 economic planning costs. 31.20513 employee morale, health, welfare, food service, and dormitory', 18982:'costs and credits. 31.20514 entertainment costs. 31.20515 fines,penalties,andmischargingcosts. 31.20516 31.20517 31.20518 31.20519 31.20520 31.20521 31.20522 31.20523 31.20524 31.20525 31.20526 31.20527', 18983:'31.20528 31.20529 31.20530 31.20531 31.20532 31.20533 31.20534 31.20535 31.20536 31.20537 31.20538 31.20539 31.20540 31.20541 31.20542 31.20543 31.20544 31.20545 31.20546 31.20547', 18984:'31.20548 31.20549 31.20550 31.20551 31.20552 31.301 31.302 31.303 gains and losses on disposition or impairment of depreciable property or other', 18985:'capital assets. idle facilities and idle capacity costs. independent research and development and bid and proposal costs. insurance and indemnification.', 18986:'interest and other financial costs. labor relations costs. lobbying and political activity costs. losses on other contracts. [reserved] manufacturing and', 18987:'production engineering costs. material costs. organization costs. other business expenses. plant protection costs. patent costs. plant reconversion costs. precontract costs.', 18988:'professional and consultant service costs. recruitment costs. relocation costs. rental costs. royalties and other costs for use of patents. selling', 18989:'costs. service and warranty costs. special tooling and special test equipment costs. taxes. terminationcosts. trade, business, technical and professional activity', 18990:'costs. training and education costs. [reserved] travel costs. costs related to legal and other proceedings. research and development costs. goodwill.', 18991:'[reserved] costs of alcoholic beverages. asset valuations resulting from business combinations. subpart 31.3 contracts with educational institutions purpose. general. requirements.', 18992:'subpart 31.4 [reserved] subpart 31.5 [reserved] subpart 31.7 contracts with nonprofit organizations subpart 31.6 contracts with state, 31.701 purpose. local,', 18993:'and federally recognized 31.702 general. indian tribal governments 31.703 requirements. 31.601 purpose. 31.602 general. 31.603 requirements. 31.000scope of part. this', 18994:'part contains cost principles and procedures for a the pricing of contracts, subcontracts, and modifications to contracts and subcontracts whenever', 18995:'cost analysis is performed see 15.4041c; and b the determination, negotiation, or allowance of costs when required by a contract', 18996:'clause. 31.001definitions. as used in this part accrued benefit cost method means an actuarial cost method under which units of', 18997:'benefits are assigned to each cost accounting period and are valued as they accrue; i.e., based on the services performed', 18998:'by each employee in the period involved. the measure of normal cost under this method for each cost accounting period', 18999:'is the present value of the units of benefit deemed to be creditedto employees for service in thatperiod. the measure', 19000:'of the actuarial accrued liabilityat a plan’s inception date is the present value of the units of benefit credited to', 19001:'employees for service prior to that date. this method is also known as the unit credit cost method without salary', 19002:'projection.. accumulating costs means collecting cost data in an organized manner, suchas through a systemof accounts. actual cash value means', 19003:'the cost of replacing damaged property with other property of like kind and quality in the physical condition of the', 19004:'property immediately before the damage. actual costs means except for subpart 31.6 amounts determined on the basis of costs incurred,', 19005:'as distinguished from forecasted costs. actual costs include standard costs properly adjusted for applicable variances. actuarial accrued liability means pension', 19006:'cost attributable, under the actuarial cost method in use, to years prior to the current period considered by a particular', 19007:'actuarial valuation. as of such date, the actuarial accrued liability represents the excess of the present value of future benefits', 19008:'and administrative expenses over the present value of future normal costs for all plan participants and beneficiaries. the excess of', 19009:'the actuarial accrued liability over the actuarial value of the assets of a pension plan is the unfunded actuarial liability.', 19010:'the excess of theactuarial value of theassetsof apensionplan overthe actuarial accrued liability is an actuarial surplus and is treated asa', 19011:'negative unfundedactuarial liability. actuarial assumption means anestimateof futureconditions affecting pension cost; e.g., mortality rate, employee turnover,compensation levels,earningson pensionplan assets,and changes', 19012:'in values of pension plan assets. actuarial cost method means a technique which uses actuarial assumptions to measure the present', 19013:'value of future pension benefits and pension plan administrative expenses, and that assigns the cost of such benefits and expenses', 19014:'to cost accounting periods. the actuarial cost method includes the asset valuation method used to determine the actuarial value of', 19015:'the assets of a pension plan. actuarial gain and loss means theeffect on pension cost resulting from differences between actuarialassumptions', 19016:'and actual experience. actuarial valuation means the determination,as of a specified date, ofthe normal cost, actuarialaccrued liability, actuarial value of', 19017:'the assets of a pension plan, and other relevant values for the pension plan. allocate means to assign an item', 19018:'of cost, or a group of items of cost, to one or more cost objectives. this term includes both direct', 19019:'assignment of cost and the reassignment of a share from an indirect cost pool. compensated personal absence means any absence', 19020:'from work for reasons such asillness, vacation, holidays, jury duty, military training, or personal activities for which an employer pays', 19021:'compensation directly to an employee in accordance with a plan or customof the employer. compensation for personal services means all', 19022:'remuneration paid currently or accrued, in whatever form and whether paid immediately or deferred, for services rendered by employees to', 19023:'the contractor. cost input means the cost, except general and administrative g&a expenses, which for contract costing purposes is allocable', 19024:'to the production of goods and services during a cost accounting period. cost objective means except for subpart 31.6afunction,organizationalsubdivision,contract,orotherworkunitfor which', 19025:'cost data are desired and for which provision is made to accumulate and measure the cost of processes, products, jobs,', 19026:'capitalized projects, etc. deferred compensation means an award made by an employer to compensate an employee in a future cost', 19027:'accounting period or periods for services rendered in one or more cost accounting periods before the date of the receipt', 19028:'of compensation by the employee. this definition shall not include the amount of year end accruals for salaries, wages, or', 19029:'bonuses that are to be paid within a reasonable period of time after the end of a cost accounting period.', 19030:'definedbenefit pension plan means a pension plan in which the benefits to be paid, or the basis for determining such', 19031:'benefits, are established in advance and the contributions are intended to provide the stated benefits. federal acquisition regulation definedcontribution pension', 19032:'plan means a pension plan in which the contributions to be made are established in advance and the benefits are', 19033:'determined thereby. directly associated cost means any cost which is generated solely as a result of the incurrence of another', 19034:'cost, and which would not have been incurred had the other cost not been incurred. estimating costs means the process', 19035:'of forecasting a future result in terms of cost, based upon information available at the time. expressly unallowable cost means', 19036:'a particular item or type of cost which, under the express provisions of an applicable law,regulation, or contract, is specifically', 19037:'named and stated to be unallowable. final cost objective means except for subparts 31.3 and 31.6 a cost objective that', 19038:'has allocated to it both direct and indirect costs and, in the contractor’s accumulationsystem, is one of thefinal accumulation points.', 19039:'fiscal year means the accounting period for which annual financial statements are regularly prepared, generally a period of 12 months,', 19040:'52 weeks, or 53 weeks. funded pension cost means the portion of pension cost for a current or prior cost', 19041:'accounting period that has been paid to a funding agency. home office means an office responsible for directingor managing two', 19042:'or more, but not necessarily all,segments of an organization. it typically establishes policy for, and providesguidance to, the segmentsin their', 19043:'operations. itusually performs management, supervisory, or administrative functions, and may also perform servicefunctions in supportof the operations of thevarioussegments. an', 19044:'organization whichhas intermediate levels, such as groups, may have severalhome offices which report to a common home office. an intermediate', 19045:'organization may be both a segment and ahome office. immediategain actuarial cost method means any of the several actuarial cost', 19046:'methods under which actuarial gains and losses are included as part of the unfunded actuarial liability of the pension plan,', 19047:'rather than as part of the normal cost of the plan. independent research and development ir&d cost means thecostof effort', 19048:'which is neithersponsored by a grant, nor required in performing a contract, and which falls within any of the following', 19049:'four areas a basic research, b applied research, c development, and d systems and other concept formulation studies. indirect cost', 19050:'pools means except for subparts 31.3 and 31.6 groupings of incurred costs identified with two or more cost objectives but', 19051:'not identified specifically with any final cost objective. insurance administration expenses means the contractor’s costs of administering an insurance program;', 19052:'e.g., the costs of operating an insurance or riskmanagement department, processing claims, actuarial fees, and service fees paid to insurance', 19053:'companies, trustees, or technical consultants. intangible capital asset means an asset that has no physical substance, has more than minimal', 19054:'value, and is expected to be held by an enterprise for continued use or possession beyond the current accounting period', 19055:'for the benefits it yields. job means a homogeneous clusterof work tasks, thecompletion of whichserves an enduring purpose for the', 19056:'organization. taken as a whole, the collection of tasks, duties,and responsibilitiesconstitutes the assignment for one ormoreindividuals whose work is of', 19057:'the same nature and is performed at the same skill/responsibility levelas opposed to a position, which is a collection of', 19058:'tasks assigned toa specific individual. within ajob,there may be pay categorieswhich are dependent onthe degree of supervision required by the', 19059:'employee while performing assigned tasks which are performed by all persons with the same job. job class of employees means', 19060:'employees performing in positions within the same job. labor cost at standard means a preestablished measure of the labor element', 19061:'of cost, computed by multiplying laborrate standard by labortime standard. labor market means a place where individuals exchange their labor', 19062:'for compensation. labor markets are identified and defined by a combination of the following factors 1 geography, 2 education and/or', 19063:'technical background required, 3 experience required by the job, 4 licensing or certification requirements, 5 occupational membership, and 6 industry.', 19064:'laborrate standard means a preestablished measure, expressed inmonetary terms, ofthe price oflabor. labortime standard means a preestablished measure, expressed in', 19065:'temporal terms, of the quantity oflabor. material cost at standard means a preestablished measure of the material elements of cost,', 19066:'computed by multiplying materialprice standard by materialquantity standard. materialprice standard means a preestablished measure, expressed in monetary terms, of the', 19067:'price of material. materialquantity standard means a preestablished measure, expressed in physical terms, of the quantity of material. moving average', 19068:'cost means an inventory costing method under which an average unit cost is computed after each acquisition by adding the', 19069:'cost of the newly acquired units to the cost of the units of inventory on hand and dividing this figure', 19070:'by the new total number of units. nonqualified pension plan means any pension plan other than a qualified pension plan', 19071:'as defined in this part. normal cost means the annual cost attributable, under the actuarial cost method in use, to', 19072:'current and future years as of a particular valuation date excluding any paymentin respectof an unfunded actuarial liability. original complement', 19073:'of low cost equipment means a group of items acquired for the initial outfitting of a tangible capital asset or', 19074:'an operationalunit, or a new addition toeither. the items in thegroup individually cost lessthan the minimum amount established by the', 19075:'contractor for capitalization for the classes of assets acquired but in the aggregate they represent a material investment. the group,', 19076:'as a complement, is expected to be held for continued service beyond the current period. initial outfitting of the unit', 19077:'is completed when the unit is ready and available for normal operations. payasyougo cost method means a method of recognizing', 19078:'pension cost only when benefits are paid to retired employees or their beneficiaries. pension plan means a deferred compensation plan', 19079:'established and maintained by one or more employers to provide systematically for the payment of benefits to plan participants after', 19080:'their retirements, provided that the benefits are paid for life or are payable for life at the option of the', 19081:'employees. additional benefits such as permanent and total disability and death payments, and survivorship payments to beneficiaries of deceased employees,', 19082:'may be an integral part of a pension plan. pension plan participant means any employee or former employee of an', 19083:'employer or any member or former member of anemployee organization, whois or may become eligible to receive abenefitfrom a pension', 19084:'plan which coversemployees of such employer or members ofsuch organizationwho have satisfied theplan’s participation requirements, or whose beneficiaries are receiving', 19085:'or may be eligible to receive any such benefit. a participant whose employment status with the employer has not been', 19086:'terminated is an active participant of the employer’spensionplan. profit center means except for subparts 31.3 and 31.6thesmallestorganizationallyindependentsegmentofacompany charged by management', 19087:'with profit and loss responsibilities. projected benefit cost method means either 1 any of the several actuarial cost methods that', 19088:'distribute the estimated total cost of all of the employees’ prospective benefits over a period of years, usually their working', 19089:'careers; or 2 a modification of the accrued benefit cost method that considers projected compensation levels. proposal means any offer', 19090:'or other submission used asa basisforpricing a contract, contractmodification,or termination settlement or for securing payments thereunder. qualified pension plan means', 19091:'a pension plan comprising a definite written program communicated to and for the exclusive benefit of employees that meets the', 19092:'criteria deemed essential by the internal revenue service as set forth in the internal revenue code for preferential tax treatment', 19093:'regarding contributions, investments, and distributions. any other plan is a nonqualified pension plan. selfinsurance charge means a cost which represents', 19094:'the projected average loss under a selfinsurance plan. service life means the period ofusefulness ofa tangible capital asset or groupof', 19095:'assetsto itscurrent owner. the period may be expressed in units of time or output. the estimated service life of a', 19096:'tangible capital asset or group of assets is a current forecast of its service life and is the period over', 19097:'which depreciation cost is to be assigned. spreadgain actuarial cost method means any of the several projected benefit actuarial cost', 19098:'methods under which actuarial gains and losses are included as part of the current and future normal costs of the', 19099:'pension plan. standard cost means any cost computed with the use of preestablished measures. tangible capital asset means an asset', 19100:'that has physical substance, more than minimal value, and is expected to be held by an enterprise for continued use', 19101:'or possession beyond the current accounting period for the services it yields. termination of employment gain or loss meansan actuarial', 19102:'gain orloss resulting from the difference between the assumed and actualratesat which pensionplan participants separate from employment for reasonsotherthan retirement,', 19103:'disability, or death. variance means the differencebetween apreestablishedmeasure and an actualmeasure. federal acquisition regulation weighted average cost means an inventory', 19104:'costing method under which an average unit cost is computed periodically by dividing the sum of the cost of beginning', 19105:'inventory plus the cost of acquisitions by the total number of units included in these two categories. welfare benefit fund', 19106:'means a trust or organization which receives andaccumulatesassetsto beused either for the payment of postretirement benefits, or for the purchase', 19107:'of such benefits, provided such accumulated assets form a part of a postretirement benefit plan. 31.002 availability of accounting guide.', 19108:'contractors needing assistance in developing or improving their accounting systems and procedures may request a copy of the defense contract', 19109:'audit agency pamphlet no.7641.90, information for contractors. the pamphlet is available via the internet at http://www.dcaa.mil. subpart 31.1 applicability 31.100scope', 19110:'of subpart. this subpart describes the applicability of the cost principles and procedures in succeeding subparts of this part to', 19111:'various types of contracts and subcontracts. it also describes the need for advance agreements. 31.101objectives. in recognition ofdiffering organizational characteristics,', 19112:'the costprinciples and procedures inthe succeeding subparts aregrouped basically by organizationaltype; e.g., commercial concerns and educational institutions. the overall objective', 19113:'is to provide that, to the extent practicable,all organizations ofsimilar types doingsimilarworkwill follow thesame cost principles and procedures. to achieve', 19114:'this uniformity, individual deviations concerningcost principlesrequire advance approval of the agency head or designee. class deviations for the civilian agencies', 19115:'require advance approval of the civilian agency acquisition council. class deviations for the national aeronautics and space administration require advance', 19116:'approval ofthe deputy chief acquisition officer. class deviations for the department of defense require advance approval of the principal director,', 19117:'defense pricing and contracting,office of the under secretary ofdefense for acquisition and sustainment. 31.102fixedprice contracts. the applicable subparts of part', 19118:'31 shall be used in the pricing of fixedprice contracts, subcontracts, and modifications to contracts and subcontracts whenever a cost', 19119:'analysis is performed, or ba fixedprice contract clause requires the determination or negotiation of costs. however, application ofcostprinciplesto fixedprice contracts', 19120:'andsubcontractsshall not be construed as a requirement to negotiate agreements on individual elements of cost in arriving at agreement on', 19121:'the total price. the final priceaccepted bythe parties reflects agreement only on the total price. further,notwithstanding the mandatory use of', 19122:'cost principles, the objective will continue to be to negotiate prices that are fair and reasonable, cost and other factors', 19123:'considered. 31.103 contractswith commercial organizations. this category includes all contracts and contract modifications for supplies, services, or experimental, developmental, or', 19124:'research worknegotiated with organizations otherthan educational institutions see 31.104, construction and architect engineer contracts see 31.105, state and local governments', 19125:'see 31.107andnonprofit organizations see 31.108 on the basis of cost. a the cost principles and procedures in subpart 31.2andagencysupplementsshallbeusedinpricingnegotiatedsupply, service,', 19126:'experimental,developmental, and research contractsand contractmodifications with commercialorganizations whenever cost analysis is performed as required by 15.4041c. binaddition,thecontractingofficershallincorporatethecostprinciplesandproceduresin subpart 31.2 and', 19127:'agency supplements by reference in contractswith commercial organizations as the basis for 1 determining reimbursable costs under i costreimbursement contracts', 19128:'and costreimbursement subcontracts under these contracts performed by commercial organizationsand ii the costreimbursement portion of timeandmaterials contracts except when material', 19129:'is priced on a basis other than at cost see 16.601c3; subpart 31.1 applicability 31.105 2 negotiating indirect cost rates', 19130:'see subpart 42.7; 3 proposing, negotiating, or determining costs under terminated contracts see 49.103 and 49.113; 4 price revision of', 19131:'fixedprice incentive contracts see 16.204 and 16.403; 5 price redetermination of price redetermination contracts see 16.205 and 16.206; and 6', 19132:'pricing changes and other contract modifications. 31.104contracts with educational institutions. this category includes all contracts and contract modifications for research', 19133:'and development, training, and other work performed by educational institutions defined as institutions of higher educations in the omb uniform', 19134:'guidance at 2 cfr part 200, subpart a, and 20 u.s.c. 1001. athecontractingofficershallincorporatethecostprinciplesandproceduresin subpart 31.3 by reference in cost reimbursement', 19135:'contracts with educational institutions as the basis for 1 determining reimbursable costs under the contracts and costreimbursement subcontracts thereunder performed', 19136:'by educational institutions; 2 negotiating indirect cost rates; and 3 settling costs of costreimbursement terminated contracts see subpart 49.3 and', 19137:'49.1097. b the cost principles in this subpart are to be used as a guide in evaluating costs in connection', 19138:'with negotiating fixed price contracts and termination settlements. 31.105 construction and architectengineer contracts. a this categoryincludes all contracts and contract', 19139:'modificationsnegotiated on the basis of cost with organizations other than educational institutions see 31.104, state and local governments see 31.107,', 19140:'and nonprofit organizations except those exempted under omb uniform guidance at 2 cfr part 200, appendix viii see 31.108 for', 19141:'construction management or construction,alterationor repair of buildings, bridges,roads,or other kinds of real property. it also includes architect engineer contracts related', 19142:'to construction projects. it does not include contracts for vessels, aircraft, or other kinds of personal property. b except as', 19143:'otherwise provided in d of this section, the cost principles and procedures in subpart 31.2 shall be used in the', 19144:'pricing of contracts and contract modifications in this category if cost analysis is performed as required by 15.4041c. cinaddition,thecontractingofficershallincorporatethecostprinciplesandproceduresin subpart', 19145:'31.2 as modified by d of this section by reference in contracts in this category as the basis for 1', 19146:'determining reimbursable costs under costreimbursement contracts, including costreimbursement subcontracts thereunder; 2 negotiating indirect cost rates; 3 proposing, negotiating, or determining', 19147:'costs under terminated contracts; 4 price revision of fixedprice incentive contracts; and 5 pricing changes and other contract modifications. d', 19148:'except as otherwise provided in this paragraph d, the allowability of costs for construction and architectengineer contracts shall be determined', 19149:'in accordance with subpart 31.2. 1 because of widely varying factors such as the nature, size, duration, and location of', 19150:'the construction project, advance agreements as set forth in 31.109, for suchitemsas homeoffice overhead, partners’ compensation, employment of consultants, and', 19151:'equipment usage costs, are particularly important in construction and architectengineer contracts. when appropriate, they serve to express the parties’ understanding', 19152:'and avoid possible subsequent disputes or disallowances. 2 construction equipment, as used in this section, means equipment including marine equipment', 19153:'in sound workable condition, either owned or controlled by the contractoror the subcontractor at any tier, or obtained from a', 19154:'commercial rental source, and furnished for use under government contracts. i allowable ownership and operating costs shall be determined as', 19155:'follows: a actual cost data shall be used when such data can be determined for both ownership and operations costs', 19156:'for each piece of equipment, or groups of similar serial or series equipment, fromthe contractor’s accounting records. when such costs', 19157:'cannot be so determined, the contracting agency may specify the use of a particular schedule of predetermined rates or any', 19158:'part thereof to determine ownership and operating costs of construction equipment see subdivisions d2i b and c of this section.', 19159:'however, costs otherwise unallowable under this part shall notbecome allowablethroughthe use of any schedule see 31.109c. for example, schedules need', 19160:'to be adjusted for government contract costing purposes if they are based on replacement cost, include unallowable interest costs, or', 19161:'use improper cost of money rates or computations. federal acquisition regulation contracting officersshouldreview the computations and factors included within the', 19162:'specified schedule and ensure that unallowable or unacceptably computed factors are not allowed in cost submissions. b predetermined schedules of', 19163:'construction equipment use rates e.g., the construction equipment ownership and operating expense schedule, published by the u.s. army corps of', 19164:'engineers, industry sponsored construction equipment cost guides, or commercially published schedules of construction equipment use cost provide average ownership and', 19165:'operating rates for construction equipment. the allowance for operating costs may include costs for such items as fuel, filters, oil,', 19166:'andgrease; servicing, repairs, and maintenance;andtire wear and repair. costs of labor, mobilization, demobilization, overhead, and profit are generally not reflected', 19167:'in schedules, and separate considerationmay be necessary. c when a schedule of predetermined use rates for construction equipment is used', 19168:'to determine direct costs, all costs of equipment that are included in the cost allowances provided by the schedule shall', 19169:'be identified and eliminated from thecontractor’sother direct and indirect costs charged tothe contract. if thecontractor’s accountingsystemprovides for site or home', 19170:'officeoverheadallocations, all costs which are included in the equipmentallowances may need to be included in any cost input base before', 19171:'computing the contractor’s overhead rate. in periods ofsuspension of work pursuant toa contract clause, the allowance for equipment ownership shall', 19172:'not exceed an amount for standby cost as determined by the schedule or contract provision. ii reasonable costs of renting', 19173:'construction equipment are allowable but see paragraph c of this subsection. a costs, such as maintenance and minor or running', 19174:'repairs incident to operating such rented equipment, that are not included in the rental rate are allowable. b costs incident', 19175:'to major repair and overhaul of rental equipment are unallowable. c the allowabilityof charges for construction equipment rented fromany division,', 19176:'subsidiary, ororganization under common control, will be determined in accordance with 31.20536b3. 3 costs incurred at the job site incident', 19177:'to performing the work, such as the cost of superintendence, timekeeping and clerical work, engineering, utility costs, supplies, material handling,', 19178:'restoration and cleanup, etc., are allowable as direct or indirect costs,provided the accounting practice usedis inaccordancewith the contractor’s establishedandconsistently followed', 19179:'cost accounting practices for all work. 4 rental and any other costs, less any applicable credits incurred in acquiring the', 19180:'temporary use of land, structures, and facilities are allowable. costs, less any applicable credits, incurred in constructing or fabricating structures', 19181:'and facilities of a temporary nature are allowable. 31.106[reserved] 31.107 contractswith state, local, and federally recognized indian tribal governments. a', 19182:'subpart 31.6 provides principles and standards for determining costs applicable to contracts with state, local, and federally recognized indian tribal', 19183:'governments. they provide the basis for a uniform approach to the problem of determining costsandto promoteefficiencyandbetter relationships between state, local,and', 19184:'federally recognized indian tribal governments, and federal government entities. they apply to all programs that involve contracts with state, local,', 19185:'and federally recognized indian tribal governments, except contracts with 1 publicly financed educational institutions subject to subpart 31.3; or 2', 19186:'publicly owned hospitals and other providers of medical care subject to requirements promulgated by the sponsoring government agencies. b the', 19187:'office ofmanagement and budget willapprove any other exceptionsin particular cases when adequate justification is presented. 31.108 contractswith nonprofit organizations. subpart', 19188:'31.7 provides principles andstandards for determining costs applicable tocontracts with nonprofitorganizations other than educational institutions see subpart 31.3, state and', 19189:'local governments see subpart 31.6, and those nonprofit organizationsexemptedundertheombuniformguidanceat2 cfr part 200, appendix viii see subpart 31.2 for the cost', 19190:'principles applicable tononprofit organizations exempt from the cost principles in the omb uniformguidance at 2 cfr part 200. 31.109 advance', 19191:'agreements. a the extent of allowability of the costs covered in this part applies broadly to many accounting systems in', 19192:'varying contract situations. thus, the reasonableness, the allocability and the allowability under the specific cost principles at subparts subpart 31.1', 19193:'applicability 31.110 31.2, 31.3, 31.6, and 31.7 of certain costs may be difficult to determine. to avoid possible subsequent disallowance', 19194:'or dispute based on unreasonableness, unallocability or unallowability under the specific cost principles at subparts 31.2, 31.3, 31.6, and 31.7,', 19195:'contracting officersandcontractors should seek advanceagreement on thetreatmentof special or unusual costs and on statistical sampling methodologies at 31.2016c. however, an', 19196:'advance agreement is not an absolute requirement and the absence of anadvance agreementon any cost will not, initself,affect the reasonableness,', 19197:'allocability or the allowability under the specific cost principles at subparts 31.2, 31.3, 31.6, and 31.7 of that cost. b', 19198:'advance agreements may be negotiated either before or during a contract but should be negotiated before incurrence of the costs', 19199:'involved. the agreements must be in writing, executed by both contracting parties, and incorporated into applicable current and future contracts.', 19200:'an advance agreement shall contain a statement of its applicability and duration. c thecontracting officer is notauthorized by this 31.109', 19201:'to agree to a treatment of costs inconsistent with this part. for example, an advance agreement may not provide that,', 19202:'notwithstanding 31.20520, interest is allowable. d advance agreements may be negotiated with a particular contractor for a single contract, a', 19203:'group of contracts, or all the contracts ofa contractingoffice, an agency, orseveral agencies. ethecognizantadministrativecontractingofficeraco,orothercontractingofficerestablishedin part 42, shall negotiate advance agreements', 19204:'except that an advance agreement affecting only one contract, or class of contracts from a single contracting office, shall be', 19205:'negotiated by a contracting officerin thecontracting office, or an aco when delegated by thecontracting officer. when the negotiation authority isdelegated,', 19206:'theaco shall coordinate the proposed agreementwith thecontracting officer beforeexecuting the advance agreement. f before negotiating an advance agreement, the government', 19207:'negotiator shall 1 determine if other contracting offices insidethe agencyor in other agencies have a significantunliquidateddollar balance in contracts with', 19208:'the same contractor; 2 inform any such office oragency of the mattersunder consideration for negotiation; and 3 asappropriate, invitethe officeor', 19209:'agency and the responsible audit agency to participate in prenegotiation discussions and/or in the subsequent negotiations. g upon completion of', 19210:'the negotiation, the sponsor shall prepare and distribute to other interestedagencies and offices, including the audit agency, copies of theexecuted', 19211:'agreementanda memorandum providing the information specified in 15.4063, as applicable. h examples for which advance agreements may be particularly important', 19212:'are 1 compensation for personal services,including but not limited toallowances for offsite pay, incentive pay, location allowances,hardship pay, cost of', 19213:'living differential, and termination of defined benefit pension plans; 2 use charges for fully depreciated assets; 3 deferred maintenance costs;', 19214:'4 precontract costs; 5 independent research and development and bid and proposal costs; 6 royalties and other costs for use', 19215:'of patents; 7 selling and distribution costs; 8 travel and relocation costs, as related to special or mass personnel movements,', 19216:'asrelated to travelvia contractor owned, leased, or chartered aircraft; or as related to maximum per diem rates; 9 costs of', 19217:'idle facilities and idle capacity; 10 severance pay to employees on support service contracts; 11 plantreconversion; 12 professional services e.g.,', 19218:'legal, accounting, and engineering; 13 general and administrative costs e.g., corporate, division, or branch allocations attributable to the general management,', 19219:'supervision, and conduct of the contractor’s business as a whole. thesecosts are particularly significant in construction, jobsite, architectengineer, facilities, and', 19220:'governmentowned contractor operated goco plant contracts see 31.203h; 14 costs of construction plant and equipment see 31.105d; 15 costs of', 19221:'public relations and advertising; and 16 statistical sampling methods see 31.2016c4. 31.110indirectcost rate certification and penalties on unallowable costs. a', 19222:'certain contracts require certification of the indirect cost rates proposed for final payment purposes. see 42.7032 for administrative procedures regarding', 19223:'the certification provisions and the related contract clause prescription. federal acquisition regulation b if unallowable costs are included in final', 19224:'indirect cost settlement proposals, penalties may be assessed. see 42.709 for administrative procedures regarding the penalty assessment provisions and the', 19225:'related contract clause prescription. subpart 31.2 contracts with commercial organizations 31.2014 subpart 31.2 contracts with commercial organizations 31.201general. 31.2011 composition', 19226:'of total cost. a the total cost, including standard costs properly adjusted for applicable variances, of a contract is the', 19227:'sum of the direct and indirect costs allocable to the contract, incurred or to be incurred, plus any allocable cost', 19228:'of money pursuant to 31.20510, less any allocable credits. in ascertaining what constitutes a cost, any generally accepted method of', 19229:'determining or estimating costs that is equitable and is consistently applied may be used. b while the total cost of', 19230:'a contract includes all costs properly allocable to the contract, the allowable costs to the government are limited to those', 19231:'allocable costs which are allowable pursuant to part 31 and applicable agency supplements. 31.2012determining allowability. a a cost is allowable', 19232:'only when the cost complies with all of the following requirements: 1 reasonableness. 2 allocability. 3 standards promulgated by the', 19233:'cas board, if applicable, otherwise, generally accepted accounting principles and practices appropriate to the circumstances. 4 terms of thecontract. 5', 19234:'any limitations set forth in this subpart. b certain cost principles in this subpart incorporate the measurement, assignment, and allocability', 19235:'rules of selected cas and limit the allowability of costs to the amounts determined using the criteria in those selected', 19236:'standards. only those cas or portions of standards specifically made applicable by the cost principles in this subpart are mandatory', 19237:'unless the contract is cascovered see part 30. business units that are not otherwise subject to these standards under a', 19238:'cas clause are subject to the selected standards only for the purpose of determining allowability of costs on government contracts.', 19239:'including the selected standards in the cost principles does not subject the business unit to any other cas rules and', 19240:'regulations. the applicability of thecas rules and regulations is determinedby the cas clause,if any, in the contract and the requirements', 19241:'of the standards themselves. c when contractor accounting practices are inconsistent with this subpart 31.2, costs resulting from such inconsistent', 19242:'practices in excess of the amount that would have resulted from using practices consistent with this subpart are unallowable. d', 19243:'a contractor is responsible for accounting for costs appropriately and for maintaining records, including supporting documentation, adequate to demonstrate that', 19244:'costs claimed have been incurred, are allocable to the contract, and comply with applicable costprinciples in this subpart and agency', 19245:'supplements. the contracting officermay disallow allor part of a claimed cost that is inadequately supported. 31.2013determining reasonableness. a a cost', 19246:'is reasonable if, in its nature and amount, it does not exceed that which would be incurred by a prudent', 19247:'person in the conduct of competitive business. reasonableness of specific costs must be examined with particular care in connection with', 19248:'firmsor their separatedivisions that may not besubject to effective competitive restraints. no presumption of reasonablenessshallbe attached tothe incurrence of costs', 19249:'by acontractor. if an initial review of the facts results in a challenge of a specific cost by the contracting', 19250:'officer orthe contracting officer’s representative,the burden ofproof shall be upon the contractor to establish that such cost is reasonable. b', 19251:'what is reasonable depends upon a variety of considerations and circumstances, including 1 whetheritis the typeof cost generally recognized as', 19252:'ordinary and necessary for the conduct of thecontractor’s business or the contract performance; 2 generally accepted sound business practices, arm’slength', 19253:'bargaining, and federal and state laws and regulations; 3 the contractor’s responsibilities to the government, other customers, the owners of', 19254:'the business, employees,and thepublicat large; and 4 any significantdeviationsfrom the contractor’s established practices. 31.2014determining allocability. a cost is allocable if', 19255:'it is assignable or chargeable toone or more cost objectives on the basis of relativebenefits received or other equitable relationship.', 19256:'subject to the foregoing, a cost is allocable to a government contract if it 31.2015 federal acquisition regulation a is', 19257:'incurred specifically for the contract; b benefits both the contract and other work, and can be distributed to them in', 19258:'reasonable proportion to the benefits received; or c is necessary to the overall operation of the business, although a direct', 19259:'relationship to any particular cost objective cannot be shown. 31.2015credits. the applicable portion of any income, rebate, allowance, or other', 19260:'credit relating to any allowable cost and received by or accruing to the contractor shall be credited to the government', 19261:'either as a cost reduction or by cash refund. see 31.2056j3 for rules governing refund or credit to the government', 19262:'associated with pension adjustments and asset reversions. 31.2016 accounting for unallowable costs. a costs that are expressly unallowable or mutually', 19263:'agreed to be unallowable, including mutually agreed to be unallowable directly associated costs, shall be identified and excluded from any', 19264:'billing, claim, or proposal applicable to a government contract. a directly associated cost is any cost that is generated solely', 19265:'as a result of incurring another cost, and that would not have been incurred had the other cost not been', 19266:'incurred. when an unallowable cost is incurred, its directly associated costs are also unallowable. b costs that specifically become designated', 19267:'as unallowable or as unallowable directly associated costs of unallowable costs asa result of a written decision furnished bya contractingofficer', 19268:'shall be identified ifincluded inor used in computing any billing, claim, or proposal applicable to a government contract. this identification', 19269:'requirement applies also to any costs incurred for the same purpose under like circumstances as the costs specifically identified as', 19270:'unallowable under either this paragraph or paragraph a of this subsection. c 1 the practices for accounting for and presentation', 19271:'of unallowable costs must be those described in 48 cfr 9904.405, accounting for unallowable costs. 2 statistical sampling is an', 19272:'acceptable practice for contractors to follow in accounting for and presenting unallowable costs provided the criteria in paragraphs c2i, c2ii,', 19273:'and c2iii of this subsection are met: i the statistical sampling results in an unbiased sample that is a reasonable', 19274:'representation of the sampling universe. iiany largedollarvalue or high risktransactionis separately reviewed for unallowable costs and excluded from the sampling', 19275:'process. iii the statistical sampling permits audit verification. 3 for any indirect cost in the selected sample that is subject', 19276:'to the penalty provisions at 42.709, the amount projected to the sampling universe from that sampled cost is also subject', 19277:'to the same penalty provisions. 4 use of statistical sampling methods for identifying and segregating unallowable costs should be the', 19278:'subject of an advance agreement under the provisions of 31.109 between the contractor and the cognizant administrative contracting officer orfederal', 19279:'official. theadvance agreementshouldspecify the basic characteristics of thesamplingprocess. the cognizantadministrative contracting officer or federalofficial shall request input from thecognizant auditor', 19280:'before entering into any such agreements. 5 in the absence of an advance agreement, if an initial review of the', 19281:'facts results in a challenge of the statistical sampling methods by the contracting officer orthe contracting officer’s representative,the burden of', 19282:'proof shall be on the contractor to establish that such a method meets the criteria in paragraph c2 of this', 19283:'subsection. d if a directly associated cost is included in a cost pool that is allocated over a base that', 19284:'includes the unallowable cost with which it is associated, the directly associated cost shall remain in the cost pool. since', 19285:'the unallowable costs will attract their allocable share of costs from the cost pool, no further action is required to', 19286:'assure disallowance of the directly associated costs. inall other cases,the directly associated costs, if material in amount, must be purged', 19287:'from the cost pool as unallowable costs. e 1 in determining the materiality of a directly associated cost, consideration should', 19288:'be given to the significance of i the actual dollar amount, iithe cumulative effect of all directly associated costs in', 19289:'a cost pool, and iii the ultimate effect on the costof government contracts. 2 salary expenses of employees who participate', 19290:'in activities that generate unallowable costs shall be treated as directly associated costs to theextent of the time spent on', 19291:'the proscribed activity,provided the costs are material in accordance with paragraph e1 of this subsection except when such salary expenses', 19292:'are, themselves, unallowable. the time spent in proscribed activities should be compared to total time spent on company activities to', 19293:'determine if the costs are subpart 31.2 contracts with commercial organizations 31.203 material. time spent byemployees outside the normal working', 19294:'hours should notbe consideredexceptwhen it is evident that an employee engages so frequently in company activities during periods outside normal', 19295:'working hours as to indicate that suchactivities are a part of the employee’s regular duties. 3 when a selected item', 19296:'of cost under 31.205 provides that directly associated costs be unallowable, such directly associated costs are unallowable only if determined', 19297:'to be material in amount in accordance with the criteria provided in paragraphs e1 and e2 of this subsection, except', 19298:'in those situations where allowance of any of the directly associated costs involved would be considered to be contrary topublic', 19299:'policy. 31.2017construction and architectengineer contracts. specific principles and procedures for evaluating and determining costs in connection with contracts and subcontracts', 19300:'for construction, and architectengineer contracts related to construction projects, are in 31.105. the applicability of these principles and procedures is', 19301:'set forth in 31.000 and 31.100. 31.202 direct costs. a no final cost objective shall have allocated to it as', 19302:'a direct cost any cost, if other costs incurred for the same purpose in like circumstances have been included in', 19303:'any indirect cost pool to be allocated to that or any other final cost objective. direct costs of the contract', 19304:'shall be charged directly to the contract. all costsspecifically identifiedwith other final costobjectives of the contractor aredirect costs of those', 19305:'cost objectives and arenot to be charged to the contractdirectlyor indirectly. b for reasons ofpracticality, thecontractor may treatanydirect cost of', 19306:'a minordollaramount as an indirect costif the accounting treatment 1 is consistently applied to all final cost objectives; and 2', 19307:'produces substantially the same results as treating the cost as a direct cost. 31.203 indirect costs. a for contracts subject', 19308:'to full cas coverage, allocation of indirect costs shall be based on the applicable provisions. for all other contracts, theapplicable', 19309:'cas provisions inparagraphs b through h of this section apply. b afterdirect costs have been determined andcharged directly to the', 19310:'contract orother work, indirect costs are those remaining to be allocated to intermediate or two or more final cost objectives.', 19311:'no final cost objective shall have allocated to it as an indirect cost any cost, if other costs incurred for', 19312:'the same purpose, in like circumstances, have been included as a direct cost of that or any other final cost', 19313:'objective. c the contractor shall accumulate indirect costs by logical cost groupings with due consideration of the reasons for incurring', 19314:'such costs. the contractor shall determine each grouping so as to permit use of an allocation base that is common', 19315:'to all cost objectives to which the grouping is to be allocated. the base selected shall allocate the grouping on', 19316:'the basis of the benefits accruing to intermediate and final cost objectives. when substantially the same results can be achieved', 19317:'through less precise methods, the number and composition of cost groupings should be governed by practical considerations and should not', 19318:'unduly complicate the allocation. d once an appropriate base for allocating indirect costs has been accepted, the contractor shall not', 19319:'fragment the base by removing individual elements. all items properly includable in an indirect cost base shall bear a pro', 19320:'rata share of indirect costs irrespective of their acceptance as government contract costs. for example, when a cost input base', 19321:'is used for the allocation of g&a costs, the contractor shall include in the base all items that would properly', 19322:'be part of the cost input base, whether allowable or unallowable, and these items shall bear their pro rata share', 19323:'of g&a costs. e the method of allocating indirect costs may require revision when there is a significant change in', 19324:'the nature of the business, the extent of subcontracting, fixedasset improvement programs, inventories, the volume of sales and production, manufacturing', 19325:'processes, the contractor’sproducts, or other relevant circumstances. f separatecost groupingsforcosts allocable tooffsitelocations may be necessary to permitequitable distribution of costs', 19326:'on the basis of the benefits accruing to the several cost objectives. g a base period for allocating indirect costs', 19327:'is the cost accounting period during which such costs are incurred and accumulated for allocation to work performed in that', 19328:'period. 1 for contracts subject to full or modified cas coverage, the contractor shall follow the criteria and guidance in', 19329:'48 cfr9904.406 for selecting the cost accounting periods to be used in allocating indirect costs. 2 for contracts other than', 19330:'those subject to paragraph g1 of this section, the base period for allocating indirect costs shall bethe contractor’s fiscal year', 19331:'usedforfinancial reportingpurposesin accordance with generallyaccepted accounting federal acquisition regulation principles. the fiscal year willnormally be 12months,but adifferent period may beappropriatee.g.,', 19332:'when a change in fiscal year occurs due to a business combination or other circumstances. h special care should be', 19333:'exercised in applying the principles of paragraphs c, d, and e of this section when governmentowned contractoroperatedgoco plantsare involved. the', 19334:'distribution of corporate, divisionor branch office g&a expenses to such plants operating with little or no dependence on corporate administrative', 19335:'activities may require more precise cost groupings, detailed accounts screening, and carefully developed distribution bases. iindirect coststhat meetthe definitionof excessivepassthrough', 19336:'charge in 52.21523, are unallowable. 31.204 application ofprinciples and procedures. a costs are allowable to the extent they are reasonable,', 19337:'allocable, and determined to be allowable under 31.201, 31.202, 31.203, and 31.205. these criteria applyto all of the selecteditems that', 19338:'follow, even if particular guidance is provided for certain items for emphasis or clarity. b 1 for the following subcontract', 19339:'types, costs incurred as reimbursements or payments to a subcontractor are allowable to the extent the reimbursements or payments are', 19340:'for costs incurred by the subcontractor that are consistent with this part: i costreimbursement. ii fixedprice incentive. iii price redeterminable', 19341:'i.e., fixedprice contracts with prospective price redetermination and fixedceilingprice contracts with retroactive price redetermination. 2 the requirements of paragraph b1', 19342:'of this section apply to any tier above the first firmfixedprice subcontract or fixedprice subcontract with economic price adjustment provisions.', 19343:'c costs incurred as payments under firmfixedprice subcontracts or fixedprice subcontracts with economic price adjustment provisions or modifications thereto, for', 19344:'which subcontract cost analysis was performed are allowable if the price was negotiated in accordance with 31.102. d section 31.205', 19345:'does not cover every element of cost. failure to include any item of cost does not imply that it is', 19346:'either allowable or unallowable. the determination of allowability shall be based on the principles and standards in this subpart and', 19347:'the treatment of similar or related selected items. when more than one subsection in 31.205 is relevant to a contractor', 19348:'cost, the cost shall be apportioned among the applicable subsections, and the determination of allowability of each portion shall be', 19349:'based on the guidance contained in the applicable subsection. when a cost, to which more than one subsection in 31.205', 19350:'is relevant, cannot be apportioned, the determination of allowability shall be based on the guidance contained in the subsection that', 19351:'most specifically deals with, or best captures the essential nature of, the cost at issue. 31.205selected costs. 31.2051public relations and', 19352:'advertising costs. a public relations means all functions and activities dedicated to 1 maintaining, protecting, and enhancing the image of', 19353:'a concern or its products; or 2 maintaining or promoting reciprocal understanding and favorable relations withthe public at large, orany', 19354:'segment of the public. the term public relations includes activities associated with areas such as advertising, customer relations, etc. b', 19355:'advertising means the use of media to promote the sale of products or services and to accomplish the activities referred', 19356:'to in paragraph d of this subsection, regardless of the medium employed, when the advertiser has control over the form', 19357:'and content of what will appear, themedia in which it will appear, and when it will appear. advertisingmedia include but', 19358:'are not limited to conventions, exhibits, free goods, samples, magazines, newspapers, trade papers, direct mail, dealer cards, window displays, outdoor', 19359:'advertising, radio, and television. c public relations and advertising costs include the costs of media time and space, purchased services', 19360:'performed by outside organizations, as well asthe applicable portion of salaries,travel, and fringe benefits of employees engaged in the functions', 19361:'and activities identified in paragraphs a and b of this subsection. d the only allowable advertising costs are those that', 19362:'are 1 specifically required by contract, or that arise from requirements of government contracts, and that are exclusively for i', 19363:'acquiring scarce items for contract performance; or ii disposing of scrap or surplus materials acquired for contract performance; subpart 31.2', 19364:'contracts with commercial organizations 31.2055 2 costs of activities to promote sales of products normally sold to the u.s. government,', 19365:'including trade shows, which contain a significant effort to promote exports from theunited states. such costs areallowable, notwithstanding paragraphs f1,', 19366:'f3, f4ii, and f5of this subsection. however,such costs donot include the costsof memorabilia e.g., models, gifts, and souvenirs, alcoholic beverages,', 19367:'entertainment, and physical facilities that are used primarily for entertainment rather than product promotion; or 3 allowable in accordance with', 19368:'31.20534. e allowable public relations costs include the following: 1 costs specifically required by contract. 2 costs of i responding', 19369:'to inquiries on company policies and activities; ii communicating with the public, press, stockholders, creditors, and customers; and iii conducting', 19370:'general liaisonwith news mediaand government public relations officers,to theextent that such activities are limited to communication and liaison necessary to', 19371:'keep the public informed on matters of public concern such as notice of contractawards, plant closings or openings, employee layoffs', 19372:'or rehires, financial information, etc. 3 costs of participation in community service activities e.g., blood bank drives, charity drives, savings', 19373:'bond drives, disaster assistance, etc. but see paragraph f8 of this section. 4 costs of plant tours and open houses', 19374:'but see paragraph f5 of this subsection. 5 costs of keel laying, ship launching, commissioning, and rollout ceremonies, to the', 19375:'extent specifically provided for by contract. f unallowable public relations and advertising costs include the following: 1 all public relations', 19376:'and advertising costs, other than those specified in paragraphs d and e of this subsection, whose primary purpose is to', 19377:'promote the sale of products or services by stimulating interest in a product or product line except for those costs', 19378:'made allowable under 31.20538b5, or by disseminating messages calling favorable attention to thecontractor for purposes of enhancing thecompany image to', 19379:'sell the company’s productsor services. 2 all costsof trade shows and other special eventswhich do not contain a significant effort', 19380:'to promote the export sales of products normally sold to the u.s. government. 3 costs of sponsoring meetings, conventions, symposia,', 19381:'seminars, and other special events when the principal purpose of the event is other than dissemination of technical information or', 19382:'stimulation of production. 4 costs of ceremonies such as i corporate celebrations and ii new product announcements. 5 costs of', 19383:'promotional material, motion pictures, videotapes, brochures, handouts, magazines, and other media that are designed to call favorable attention to the', 19384:'contractor and its activities. 6 costs of souvenirs, models, imprinted clothing, buttons, and other mementos provided to customers or the', 19385:'public. 7 costs of memberships in civic and community organizations. 8 costs associated with the donation of excess food to', 19386:'nonprofit organizationsin accordance with thefederal food donation act of 2008 42 u.s.c. 1792, see subpart 26.4. 31.2052 [reserved] 31.2053 bad', 19387:'debts. bad debts, including actual or estimated losses arising from uncollectible accounts receivable due from customers and other claims, and', 19388:'any directly associated costs such as collection costs, and legal costs are unallowable. 31.2054 bonding costs. a bonding costs arise', 19389:'when the government requires assurance against financial loss to itself or others by reason of the act or default of', 19390:'the contractor. they arise also ininstanceswhere the contractorrequiressimilar assurance. included are such bonds as bid, performance, payment, advance payment, infringement,', 19391:'and fidelity bonds. b costs of bonding required pursuant to the terms of the contract are allowable. c costs of', 19392:'bonding required by the contractor in the general conduct of its business are allowable to the extent that such bonding', 19393:'is in accordance with sound business practice and the rates and premiums are reasonable under the circumstances. 31.2055 [reserved] 31.2056', 19394:'federal acquisition regulation 31.2056 compensation for personal services. a general. compensation for personal services is allowable subject to the following', 19395:'general criteria and additional requirements contained in other parts of this cost principle: 1 compensation for personal services must be', 19396:'for work performed by the employee in the current year and must not represent a retroactive adjustment of prior years’', 19397:'salaries or wages but see paragraphs g, h, j, k, m, and o of this subsection. 2 the total compensation', 19398:'for individual employees or job classes of employees must be reasonable for the work performed; however, specificrestrictions on individual compensation', 19399:'elementsapply when prescribed. 3 the compensationmust be based upon and conform to the termsand conditions of the contractor’s established compensation', 19400:'planor practice followed soconsistently as to imply, in effect,an agreement to make thepayment. 4 no presumption of allowability will exist', 19401:'where the contractor introduces major revisions of existing compensation plans or new plans and the contractor has not provided the', 19402:'cognizant aco, either before implementation or within a reasonable period after it, an opportunity to review the allowability of the', 19403:'changes. 5 costs that are unallowable under other paragraphs of this subpart 31.2 are not allowable under this subsection 31.2056', 19404:'solely on the basis that they constitute compensation for personal services. 6 i compensation costs for certain individuals give rise', 19405:'to the need for special consideration. such individuals include: a owners of closely held corporations, members of limited liability companies,', 19406:'partners, sole proprietors, or members of their immediate families; and b persons who are contractually committed to acquire a substantialfinancialinterest', 19407:'in the contractor’s enterprise. ii for these individuals, compensation must a be reasonable for the personal services rendered; and b', 19408:'not be a distribution of profits which is not an allowable contract cost. iii for owners of closely held companies,', 19409:'compensation in excess of the costs that are deductible as compensation under the internal revenue code 26 u.s.c. and regulations', 19410:'under it is unallowable. b reasonableness 1 compensation pursuant to labormanagement agreements. if costs of compensation established under arm’s length', 19411:'labormanagement agreements negotiatedunder theterms ofthe federallabor relations act or similar state statutes are otherwise allowable, the costs are reasonable unless,', 19412:'as applied to work in performing government contracts, the costs are unwarranted by the character and circumstances of the work', 19413:'or discriminatory against the government. the application of the provisions of a labormanagement agreement designed to apply to a given', 19414:'set of circumstances and conditions of employment e.g., work involving extremely hazardous activities or work not requiring recurrent use of', 19415:'overtime is unwarranted when applied to agovernment contractinvolvingsignificantlydifferent circumstances and conditions of employment e.g., work involving less hazardous activities or', 19416:'work continually requiring use of overtime. it is discriminatory against the government if it results in employee compensation in whatever', 19417:'form or name in excess of that being paid for similar nongovernment work under comparable circumstances. 2 compensation not covered', 19418:'by labormanagement agreements. compensation for each employee or job class of employees must be reasonable for the work performed. compensation', 19419:'is reasonable if the aggregate of each measurable and allowable element sums to a reasonable total. in determining the reasonableness', 19420:'of total compensation, consider only allowable individual elements of compensation. in addition to the provisions of 31.2013, in testing the', 19421:'reasonableness of compensation for particular employees or job classes of employees, consider factors determined to be relevant by the contracting', 19422:'officer. factors that may be relevant include, butare not limited to, conformity with compensation practicesof other firms i of the', 19423:'same size; ii in the same industry; iii in the same geographic area; and iv engaged in similar nongovernment work', 19424:'under comparable circumstances. c [reserved] d form of payment. 1 compensation for personal services includes compensation paid or to be', 19425:'paid in the future to employees in the form of i cash; ii corporate securities, such as stocks, bonds, and', 19426:'other financial instruments see paragraph d2 of this subsection regarding valuation; or subpart 31.2 contracts with commercial organizations 31.2056 iii', 19427:'other assets, products, or services. 2 when compensation is paidwith securities of the contractor or of an affiliate, thefollowing additional', 19428:'restrictions apply: ivaluation placed onthe securities isthe fair market value onthe first date the number of shares awarded is known,', 19429:'determined upon the most objective basis available. ii accruals for the cost of securities before issuing the securities to the', 19430:'employees are subject to adjustment according to the possibilities that the employees will not receive the securities and that their', 19431:'interest in the accruals will be forfeited. e income tax differential pay. 1 differential allowances for additional incometaxes resultingfrom foreignassignments', 19432:'are allowable. 2 differentialallowances for additional income taxesresulting from domestic assignmentsare unallowable. however, payments for increased employee income or federal', 19433:'insurance contributions act taxesincident to allowable reimbursed relocation costs are allowable under 31.20535a10. f bonuses and incentive compensation. 1 bonuses', 19434:'and incentive compensation are allowable provided the iawards are paid or accrued under an agreemententered into in good faith between', 19435:'the contractor and the employees before the services are rendered or pursuant to an established plan or policy followed by', 19436:'the contractor so consistentlyas to imply, ineffect, an agreement to makesuch payment;and ii basis for the award is supported. 2', 19437:'when the bonus and incentive compensation payments are deferred, the costs are subject to the requirements of paragraphs f1 and', 19438:'k of this subsection. g severance pay. 1 severance pay is a payment in addition to regular salaries and wages', 19439:'by contractors to workers whose employment is being involuntarily terminated. payments for early retirement incentive plans are covered in paragraph', 19440:'j6 of this subsection. 2 severance pay is allowable only to the extent that, in each case, it is required', 19441:'by i law; ii employeremployee agreement; iii established policy that constitutes, in effect,an implied agreement onthe contractor’s part; or iv', 19442:'circumstances of the particular employment. 3 payments made in the event of employment with a replacement contractor where continuity of', 19443:'employment with credit for prior length of service is preserved under substantially equal conditions of employment, or continued employment by', 19444:'the contractor at another facility, subsidiary, affiliate, or parent company of thecontractor are notseverance payandare unallowable. 4 actual normal turnover', 19445:'severance payments shall be allocated to all work performed inthe contractor’s plant. however, if the contractor uses the accrual method', 19446:'to account for normal turnover severance payments, thatmethod will be acceptable if the amount of the accrual is i reasonable', 19447:'in light of payments actually made for normal severances over a representative past period; and iiallocated toall workperformed in the', 19448:'contractor’s plant. 5 abnormal or mass severance pay is of such a conjectural nature that accruals for this purpose are', 19449:'not allowable. however, the government recognizes its obligation to participate, to the extent of its fair share, in any specific', 19450:'payment. thus, the government will consider allowability on a casebycase basis. 6 under 10 u.s.c. 3744a13 and 41 u.s.c. 4304a13,', 19451:'the costs of severance payments to foreign nationals employed under a service contract performed outside the united states are unallowable', 19452:'to the extent that such payments exceed amounts typically paid to employeesproviding similar services in the same industry in the', 19453:'united states. further, under 10 u.s.c. 3744a14 and 41 u.s.c. 4304a14, all such costs of severance payments that are otherwise', 19454:'allowable are unallowable if the termination of employment of the foreign national is the result of the closing of, or', 19455:'the curtailment of activities at, a united states facility in that country at the request of the government of that', 19456:'country; this does not apply if the closing of a facility or curtailment of activities is made pursuant to a', 19457:'statusofforces or other countrytocountry agreement entered into with the government of that country before november 29, 1989. 10 u.s.c. 3744b', 19458:'and 41 u.s.c. 4304b permit the head of the agency to waive these cost allowability limitations under certain circumstances see', 19459:'37.113 and the solicitation provision at 52.2378. h backpay. backpay is a retroactive adjustment of prior years’ salaries or wages.', 19460:'backpay is unallowable except as follows: 31.2056 federal acquisition regulation 1 payments to employees resulting from underpaid work actually performed', 19461:'are allowable, if required by a negotiated settlement, order, or court decree. 2 payments to union employees for the difference', 19462:'in their past and current wage rates for working withouta contract or labor agreement during labor management negotiation are allowable.', 19463:'3 payments to nonunion employees based upon results of union agreement negotiation are allowable only if i a formal agreement', 19464:'or understanding exists between management and the employees concerning these payments; or iian established policy or practice existsand is followed', 19465:'by thecontractor so consistently as to imply,in effect,an agreement to make such payments. i compensation based on changes in the', 19466:'prices of corporate securities or corporate security ownership, such as stock options, stock appreciation rights, phantom stock plans, and junior', 19467:'stock conversions. 1 any compensation which is calculated, or valued, based on changes in the price of corporate securities is', 19468:'unallowable. 2 any compensation represented by dividend payments or which is calculated based on dividend payments is unallowable. 3 if', 19469:'a contractor pays an employee in lieu of the employee receiving or exercising a right, option, or benefit which would', 19470:'have been unallowable under this paragraph i, such payments are also unallowable. j pension costs. 1 pension plans are normally', 19471:'segregated into two types of plans: definedbenefit and defined contribution pension plans. the contractor shall measure, assign, and allocate the', 19472:'costs of all definedbenefit pension plans and the costs of all definedcontribution pension plans in compliance with 48 cfr9904.412cost accounting', 19473:'standard for composition and measurement of pension cost, and 48 cfr9904.413adjustment and allocation of pension cost. pension costs are allowable', 19474:'subject to the referenced standards and the cost limitations and exclusions set forth in paragraph j1i and in paragraphs j2', 19475:'through j6 of this subsection. i except for nonqualified pension plans using the payasyougo cost method, to be allowable in', 19476:'the current year, the contractor shall fund pension costs by the timeset for filing of the federal income taxreturn or', 19477:'anyextension. pension costs assignedto the current year, but not fundedby the tax return time, are notallowable in anysubsequent year. for', 19478:'nonqualified pension plans usingthe payasyougo method,to beallowable in the currentyear, thecontractor shall allocate pension costs in the cost accounting period', 19479:'that the pension costs are assigned. ii pension payments must be paid pursuant to an agreement entered into in good', 19480:'faith between the contractor and employees before the work or services are performed and to the terms and conditions of', 19481:'the established plan. the cost of changes in pension plans are not allowable if the changes are discriminatory to the', 19482:'government or are not intended to be applied consistently for all employees under similar circumstances in the future. iii except', 19483:'as provided for early retirement benefits in paragraph j6 of this subsection, onetimeonly pension supplements not available to all participants', 19484:'of the basic plan are not allowable as pension costs, unless the supplemental benefits represent a separate pension plan and', 19485:'the benefits are payable for life at the option of the employee. iv increases in payments to previously retired plan', 19486:'participants covering costofliving adjustments are allowable if paid in accordance with a policy or practice consistently followed. 2 definedbenefit pension', 19487:'plans. the cost limitations and exclusions pertaining to definedbenefit plans are as follows: i a except for nonqualified pension plans,', 19488:'pension costs see 48 cfr9904.41240a1 assigned to the current accounting period, but not funded during it, are not allowable in', 19489:'subsequent years except that a payment made to a fund by the time set for filing the federal income tax', 19490:'return or any extension thereof is considered to have been made during such taxable year. however, anyportion of pension cost', 19491:'computed for a cost accounting period, that exceeds the amount required to be funded pursuant to a waiver granted under', 19492:'the provisions of the employee retirement income security act of1974 erisa, will be allowable in those future accounting periods in', 19493:'which the funding of such excess amounts occurs see 48 cfr9904.41250c5. b for nonqualified pension plans, except those using the', 19494:'payasyougo cost method, allowable costs are limited to the amount allocable in accordance with 48 cfr9904.41250d2. c for nonqualified pension', 19495:'plans using the payasyougo cost method, allowable costs are limited to the amounts allocable in accordance with 48 cfr9904.41250d3. ii', 19496:'any amount funded in excess of the pension cost assigned to a cost accounting period is not allowable in that', 19497:'period and shall be accounted for as set forth at 48 cfr9904.41250a4. the excess amount is allowable in the future', 19498:'period to which it is assigned, to the extent it is not otherwise unallowable. subpart 31.2 contracts with commercial organizations', 19499:'31.2056 iii increased pension costs are unallowable if the increase is caused by a delay in funding beyond 30 days', 19500:'after each quarter of the year to which they are assignable. if a composite rate is used for allocating pension', 19501:'costs between the segments of a company and if, because of differences inthe timing ofthe funding by the segments, aninequity', 19502:'exists, allowable pension costs for each segment will be limited to thatparticular segment’s calculation of pension costs asprovided for in', 19503:'48 cfr9904.41350c. the contractor shall make determinations of unallowable costs in accordance with the actuarial method used in calculating pension', 19504:'costs. iv the contracting officer will consider theallowability of thecostof indemnifying the pension benefit guaranty corporation pbgc under erisa section', 19505:'4062 or 4064 arising from terminating an employee deferred compensation plan on a casebycase basis, provided that if insurance was', 19506:'required by the pbgc under erisa section 4023, it was so obtained and the indemnification payment is not recoverable under', 19507:'the insurance. consideration under the foregoing circumstances will be primarily for the purpose of appraising the extent to which the', 19508:'indemnification payment is allocable to government work. if a beneficial or other equitable relationship exists, the government will participate, despite', 19509:'the requirements of 31.20519c3 and d3, in the indemnification payment to the extent of its fair share. v increased pension', 19510:'costs resulting from the withdrawal of assets from a pension fund and transfer to another employee benefit plan fund, or', 19511:'transfer of assets to another account within the same fund, are unallowable except to the extent authorized by an advance', 19512:'agreement. if the withdrawal of assets from a pension fund is a plan termination under erisa, the provisions of paragraph', 19513:'j3 ofthis subsection apply. theadvance agreementshall astate the amount of thegovernment’s equitable sharein the gross amount withdrawn or transferred; and', 19514:'b provide that the government receives a credit equalto theamount of the government’sequitable share of the gross withdrawal or transfer.', 19515:'3 pension adjustments and asset reversions. i for segment closings, pension plan terminations, or curtailment of benefits, the amount of', 19516:'the adjustment shall be a for contracts and subcontracts that are subject to full coverage under the cost accounting standards', 19517:'cas board rules and regulations, the amount measured, assigned, and allocated in accordance with 48 cfr9904.41350c12; and b for contracts', 19518:'and subcontracts that are not subject to full coverage under the cas, the amount measured, assigned, and allocated in accordance', 19519:'with 48 cfr9904.41350c12, except the numerator of the fraction at 48 cfr9904.41350c12vi is the sum of the pension plan costs', 19520:'allocated to all noncascovered contracts and subcontracts that are subject to subpart 31.2 or for which certified cost or pricing', 19521:'data were submitted. iifor all other situations where assets revert to the contractor, or such assets are constructivelyreceived by it', 19522:'for any reason, the contractor shall, atthe government’s option, make a refund orgive acredit to the government for itsequitable share', 19523:'of thegross amount withdrawn. the government’s equitableshare shall reflect the government’s participation in pension costs through those contracts for which', 19524:'certified cost or pricing data were submitted or that are subject to subpart 31.2. excise taxes on pension plan asset', 19525:'reversions or withdrawals under this paragraph j3ii are unallowable in accordance with 31.20541b6. 4 definedcontribution pension plans. in addition to', 19526:'definedcontribution pension plans, this paragraph also covers profit sharing, savings plans, and other such plans, provided the plans fall within', 19527:'the definition of a pension plan at 31.001. i allowable pension cost is limited to the net contribution required to', 19528:'be made for a cost accounting period after taking into account dividends and other credits, where applicable. however,any portion of', 19529:'pension cost computed for a cost accounting period that exceeds the amount required to be funded pursuant to a waiver', 19530:'granted under the provisions of erisa will be allowable in those future accounting periods in which the funding of such', 19531:'excess amounts occurs see 48 cfr9904.41250c5. ii the provisions of paragraphs j2ii and iv of this subsection apply to definedcontribution', 19532:'plans. 5 pension plans using the payasyougo cost method. when using the payasyougo cost method, the contractor shall measure, assign,', 19533:'and allocate the cost of pension plans in accordance with 48 cfr9904.412 and 9904.413. pension costs for a pension plan', 19534:'using the payasyougo cost method are allowable to the extent they are not otherwise unallowable. 6 early retirement incentives.an early', 19535:'retirement incentive is an incentivegiven to an employee to retire early. for contract costing purposes, costs of early retirement incentives', 19536:'are allowable subject to the pension cost criteria contained in paragraphs j2i through iv of this subsection provided ithe contractor', 19537:'measures, assigns, and allocatesthe costs in accordance with the contractor’s accounting practices for pension costs; ii the incentives are in', 19538:'accordance with the terms and conditions of an early retirement incentive plan; 31.2056 federal acquisition regulation iii the contractor applies', 19539:'the plan only to active employees. the cost of extending the plan to employees who retired or were terminated before', 19540:'the adoption of the plan is unallowable; and iv the present value of thetotal incentives given to any employee in', 19541:'excess of the amount ofthe employee’s annual salary for the previousfiscalyear before the employee’s retirement is unallowable. thecontractor shall compute', 19542:'the present value in accordance with its accounting practices for pension costs. the contractor shall account for any unallowable costs', 19543:'in accordance with 48 cfr9904.41250a2. k deferred compensation other than pensions. the costs of deferred compensation awards are allowable subject', 19544:'to the following limitations: 1 the costs shall be measured, assigned, and allocated in accordance with 48 cfr 9904.415, accounting', 19545:'for the cost of deferred compensation. 2 the costs of deferred compensation awards are unallowable if the awards are made', 19546:'in periods subsequent to the period when the work being remunerated was performed. l compensation incidental to business acquisitions. the', 19547:'following costs are unallowable: 1 payments to employees underagreements in which theyreceivespecial compensation, in excess of the contractor’s normal severance', 19548:'pay practice, if their employment terminatesfollowing a changein themanagement control over, or ownership of, the contractoror a substantial portion of', 19549:'its assets. 2 payments to employees under plans introduced in connection with a change whether actual or prospective in the', 19550:'management control over, or ownership of, the contractor or a substantial portion ofits assets inwhich thoseemployees receive special compensation, which', 19551:'is contingent upon the employee remaining with the contractor for a specified period of time. m fringe benefits. 1 fringe', 19552:'benefits are allowances and services provided by the contractor to its employees as compensation in addition to regular wages and', 19553:'salaries. fringe benefits include, but are not limited to, the cost of vacations, sick leave, holidays, military leave, employee insurance,', 19554:'and supplemental unemployment benefit plans. except as provided otherwise in subpart 31.2, the costs of fringe benefits are allowable to', 19555:'the extent that they are reasonable and are required by law,employeremployee agreement, or an established policy of the contractor. 2', 19556:'that portion of the cost of companyfurnished automobiles that relates to personal use by employees including transportation to and from', 19557:'work is unallowable regardless of whether the cost is reported as taxable income to the employees see 31.20546d. n employee', 19558:'rebate and purchase discount plans. rebates and purchase discounts, in whatever form, granted to employees on products or services produced', 19559:'by the contractoror affiliates areunallowable. o postretirement benefits other than pensions prb. 1 prb covers all benefits, other than cash', 19560:'benefits and life insurance benefits paid by pension plans, provided to employees, their beneficiaries, and covered dependents during the period', 19561:'following the employees’ retirement. benefits encompassed include, but are not limited to, postretirement health care; life insurance provided outside a', 19562:'pension plan; and other welfare benefits such as tuition assistance, day care, legal services, and housing subsidies provided after retirement.', 19563:'2 to be allowable, prb costs shall be incurred pursuant to law, employeremployee agreement, or an established policy of the', 19564:'contractor,andshallcomply with paragraphs o2i, ii, or iii of this subsection. i payasyougo. prb costs are not accrued during the working', 19565:'lives of employees. costs are assigned to the period in which a benefits are actually provided; or b the costsare', 19566:'paid to an insurer, provider, or other recipient for current year benefits orpremiums. ii terminal funding. prb costs are not', 19567:'accrued during the working lives of the employees. aterminal funding occurs when theentire prb liabilityis paid in a lump sum', 19568:'uponthe terminationof employees or upon conversion to such a terminalfunded plan to an insurer or trustee to establish and maintain', 19569:'a fund or reserve for the sole purpose of providing prb to retirees. b terminal funded costsshallbe amortizedover a period', 19570:'of 15 years. iii accrual basis. prb costs are accrued during the working lives of employees. accrued prb costs shall', 19571:'comply with the following: a be measured and assigned in accordance with one of the following two methods described under', 19572:'paragraphs o2iiia1 or o2iiia2 of this subsection: 1 generally accepted accounting principles. however,transitions from the payasyougo method tothe accrual accounting', 19573:'method must be handled according to paragraphs o2iiia1i through iii of this subsection. subpart 31.2 contracts with commercial organizations 31.2056', 19574:'i in the year of transition from the payasyougo method to accrual accounting for purposes of government contract cost accounting,', 19575:'the transition obligation shall be the excess of the accumulated prb obligation over the fair value of plan assets determined', 19576:'in accordance with subparagraph e of this section; the fair value must be reduced by the prepayment credit as determined', 19577:'in accordance with subparagraph o2iiif of this subsection. ii prb cost attributable to the transition obligation assigned to the current', 19578:'year that is in excess of the amount assignable to accounting periods on the basis of a straight line amortization', 19579:'of the transition obligation over the average remaining working lives of active employees covered by the prb plan or a', 19580:'20year period, whichever period is longer, isunallowable. however,if the plan is comprised of inactive participants only, the prbcost attributable to', 19581:'the transition obligation assigned to the current year that is in excess of the amount assignable to accounting periods on', 19582:'a straight line amortization of the transition obligation over the average future life expectancy of the participants is unallowable. iii', 19583:'for a plan that transitioned from payasyougo to accrual accounting for government contract cost accounting prior to july 22, 2013,', 19584:'the unallowable amount of prb cost attributable to the transition obligation amortization shall continueto bebased on the costprinciple in effectat', 19585:'the timeof the transitionuntil the original transition obligation schedule is fully amortized. 2 contributions to a welfare benefit fund determined', 19586:'in accordance with applicable internal revenue code. allowable prb costs based on such contributions shall i be measured using reasonable', 19587:'actuarial assumptions, which shall include a health care inflation assumption unless prohibited by the internal revenue code provisions governing welfare', 19588:'benefit funds; ii be assigned to accounting periods on the basis of the average working lives of active employees covered', 19589:'bythe prb plan or a 15year period, whichever period islonger. however, if the plan is comprised ofinactive participants only,the cost', 19590:'shall be spreadover the averagefuture life expectancy of the participants; and iii exclude federal income taxes, whether incurred by the', 19591:'fund or the contractor including any increase in prb costs associated with such taxes, unless the fund holding the plan', 19592:'assets is taxexempt under the provisions of 26 usc 501c. b be paid to an insurer or trustee to establish', 19593:'and maintain a fund or reserve for the sole purpose of providing prb to retirees. theassetsshallbe segregated in the trust,or', 19594:'otherwise effectively restricted,sothat they cannot be used by the employer for other purposes. c be calculated in accordance with generally', 19595:'accepted actuarial principles and practices as promulgated by the actuarial standards board. d eliminate from costs of current and future', 19596:'periods the accumulated value of any prior period costs that were unallowable in accordance with paragraph o3 of this section,', 19597:'adjusted for interest under paragraph o4 of this section. e calculate the unfunded actuarial liability unfunded accumulated postretirement benefit obligation', 19598:'using the market fair value of assets that have been accumulated by funding costs assigned to prior periods for contract', 19599:'accounting purposes. f recognize as a prepayment credit the market fair value of assets that were accumulated by deposits or', 19600:'contributions that were not used to fund costs assigned to previous periods for contract accounting purposes. g comply with the', 19601:'following when changing from one accrual accounting method to another: the contractor shall 1 treatthe changein the unfunded actuarial liability', 19602:'unfunded accumulatedpostretirement benefit obligation as a gain or loss; and 2 present an analysis demonstrating that all costs assigned to', 19603:'prior periods have been accounted for in accordance with paragraphs o2iiid, e, and f of this section to ensure that', 19604:'no duplicate recovery of costs exists. any duplicate recovery of costs due to the change from one method to another', 19605:'is unallowable. the analysis and new accrual accounting method may be a subject appropriate for an advance agreement in accordance', 19606:'with 31.109. 3 to be allowable, prb costs mustbe funded by the time set for filing the federal incometax return', 19607:'or any extension thereof,or paid toan insurer,provider, or other recipient by the time set for filing the federal incometax return', 19608:'or extension thereof. prb costs assignedto the current year, but not funded, paidor otherwise liquidated by thetax return due date', 19609:'as extended are not allowable in any subsequent year. 4 increased prb costs caused by delay in funding beyond 30', 19610:'days after each quarter of the year to which they are assignable are unallowable. 5 the government shall receive an', 19611:'equitable share of any amount of previously funded prb costs which revert or inure tothe contractor. such equitable share shall', 19612:'reflectthe government’s previous participation in prbcosts through those contracts for which certified cost or pricing data were required or which', 19613:'were subject to subpart 31.2. 31.2056 federal acquisition regulation p limitation on allowability of compensation. employee compensation limits contract award', 19614:'date applicable agencies covered employees 31.2056 before june 24, 2014 executive agencies other than dod, nasa and coast guard senior', 19615:'executive p2 before december 31, 2011 dod, nasa and coast guard senior executive p2 on/after december 31, 2011, and before', 19616:'june 24, 2014 dod, nasa, and coast guard all employees p3 on/after june 24, 2014 all executive agencies all employees', 19617:'p4 1 definitions. as used in this paragraph p i compensation means the total amountof wages,salary, bonuses, deferred compensation see', 19618:'paragraph k of this subsection, and employer contributions to defined contribution pension plans see paragraphs j4 and q of this', 19619:'subsection, for thefiscalyear, whether paid, earned,or otherwise accruing,as recorded in the contractorscostaccounting records for thefiscalyear. ii senior executive means– a', 19620:'prior to january 2, 1999– 1 the chief executive officer ceo or anyindividual acting in a similar capacity at the', 19621:'contractors headquarters; 2 the four most highly compensated employees in management positions at the contractors headquarters, other than the ceo;', 19622:'and 3 if the contractor has intermediate homeoffices orsegments that reportdirectlyto thecontractors headquarters, thefive mosthighly compensated employeesin management positions ateach', 19623:'such intermediate home office or segment. b effective january 2, 1999, the five most highly compensated employees in management positions', 19624:'at each home office and each segment of the contractor, whether or not the home office or segment reports directly', 19625:'to the contractors headquarters. iii fiscal year means the fiscal year established by the contractor for accounting purposes. iv contractors', 19626:'headquartersmeans thehighest organizational level fromwhich executivecompensation costs are allocated to government contracts. 2 senior executive compensation limit for contracts awarded', 19627:'before june 24, 2014. i applicability. this paragraph p2 applies to the following: ato all executive agencies, other than dod,', 19628:'nasa and the coast guard, for contracts awarded before june 24, 2014; b todod, nasa, and the coast guard for', 19629:'contracts awarded before december 31, 2011; ii costs incurred after january 1, 1998, for the compensation of a senior executive', 19630:'in excess of the benchmark compensation amount determined applicable for the contractor fiscal year by the administrator, office of federal', 19631:'procurement policy ofpp, under 41 u.s.c. 1127 as in effect prior to june 24, 2014, are unallowable 10 u.s.c. 3744a', 19632:'16 and 41 u.s.c. 4304a16, as in effect prior to june 24, 2014. this limitation is the sole statutory limitation', 19633:'on allowable senior executive compensation costs incurred after january 1, 1998, under contracts awarded before june 24, 2014, andapplies whether', 19634:'or notthe affected contractswere previouslysubject to astatutory limitation on such costs. note that pursuant to section 804 of pub. l.', 19635:'105261, the definition of senior executive in paragraph p1 of this section has been changed for compensation costs incurred after', 19636:'january 1, 1999. see https://www.whitehouse.gov/wpcontent/ uploads/2017/11/contractorcompensationcapcontractsawardedbeforejune24.pdf. 3 all employee compensation limit for contracts awarded before june 24, 2014. i applicability.', 19637:'this paragraph p3 applies to dod, nasa, and the coast guard for contracts awarded on or after december 31, 2011,', 19638:'andbefore june24,2014. ii costs incurred after january 1, 2012, for the compensation of any contractor employee in excess of the', 19639:'benchmark compensation amount,determined applicableforthe contractor fiscal year bythe administrator, office offederal subpart 31.2 contracts with commercial organizations 31.2057 procurement policy', 19640:'ofpp under 41 u.s.c. 1127 as ineffect prior tojune 24, 2014are unallowable 10 u.s.c. 3744a 16 as ineffect prior tojune', 19641:'24, 2014. this limitation isthe sole statutory limitationon allowable employee compensation costs incurred after january 1, 2012, under contracts awarded', 19642:'on or after december31,2011 and beforejune 24, 2014. note that pursuant to section803 ofpub. l. 11281, 10 u.s.c. 3744, allowable', 19643:'costs under defense contracts, was amended by striking senior executives and inserting any contractor employee, making unallowable the excess compensation', 19644:'costs incurred afterjanuary 1, 2012, underaffected contracts. see https://www.whitehouse.gov/wpcontent/uploads/2017/11/ contractorcompensationcapcontractsawardedbeforejune24.pdf. 4 all employee compensation limit for contracts awarded on or', 19645:'after june 24, 2014. i applicability. this paragraph p4 applies to all executive agency contracts awarded on or after june', 19646:'24, 2014, and any subcontracts thereunder. ii costs incurred on or after june 24, 2014, for the compensation of all', 19647:'employees in excess of the benchmark compensation amount determined applicable for the contractor fiscal year by the administrator, office of', 19648:'federal procurement policy ofpp are unallowable under 10 u.s.c. 3744a16 and 41 u.s.c 4304a16,as in effect on or after june', 19649:'24, 2014, pursuant to section 702 of pub. l. 11367. this limitation is thesolestatutory limitation on allowable employee compensation costs', 19650:'incurred on or after june 24, 2014, under contracts awarded on or after june 24, 2014. see http://www.whitehouse.gov/omb/procurement/cecp. iii exceptions.', 19651:'an agencyheadmay establish one or more narrowlytargeted exceptions for scientists, engineers, or other specialists upon a determination that such exceptions', 19652:'are needed to ensure that the executive agency has continued access to neededskills and capabilities. in makingsuch a determination, the', 19653:'agency shall consider, at a minimum, for each contractor employee in a narrowlytargeted exceptedposition a the amount of taxpayer funded', 19654:'compensation to be received by each employee; and b the duties and services performed by each employee. q employee stock', 19655:'ownership plans esop. 1 an esop is a stock bonus plan designed to invest primarily in the stock of the', 19656:'employer corporation. the contractor’s contributions toan employee stock ownership trust esot maybe inthe form of cash, stock, or property. 2', 19657:'costs of esops are allowable subject to the following conditions: i the contractor measures, assigns, and allocates costs in accordance', 19658:'with 48 cfr 9904.415. ii contributions by the contractor in any oneyear that exceed the deductibility limits of the internal', 19659:'revenue code for that year are unallowable. iii when the contribution is in the form of stock, the value of', 19660:'the stock contribution is limited to the fair market value of the stockon the datethat title iseffectively transferred to the', 19661:'trust. iv when the contribution is in the form of cash a stock purchases by the esot in excess of', 19662:'fair market value are unallowable; and b when stock purchases are in excess of fair market value, the contractor shall', 19663:'credit the amount of the excess to the same indirect cost pools that were charged for the esop contributionsin theyear', 19664:'in whichthe stock purchase occurs. however, when the trust purchases the stockwith borrowed funds which will be repaid over a', 19665:'period of years by cash contributions from the contractor to the trust, the contractor shall credit the excess price over', 19666:'fair market value to the indirect cost pools pro rata over the period of years during which the contractor contributes', 19667:'the cash used by the trust to repay the loan. v when the fair market value of unissued stock or', 19668:'stock of a closely held corporation is not readily determinable, the valuation will be made on a casebycase basis taking', 19669:'into consideration the guidelines for valuation used by the irs. 31.2057 contingencies. a contingency, as used in thissubpart, means apossible', 19670:'future event or condition arising from presently knownor unknown causes, the outcome of which is indeterminable at the present time.', 19671:'b costs for contingencies are generally unallowable for historical costing purposes because such costing deals with costs incurred and recorded', 19672:'on thecontractor’s books. however, in some cases, as for example, terminations, a contingency factor may be recognized when it is', 19673:'applicable to a past period to give recognition to minor unsettled factors in the interest of expediting settlement. c in', 19674:'connection with estimates of future costs, contingencies fall into two categories: 1 those that may arise from presently knownandexisting conditions,the', 19675:'effects of which are foreseeable within reasonable limits of accuracy; e.g., anticipated costs of rejects and defective work. contingencies of', 19676:'this category are to be included in the estimates of future costs so as to provide the best estimate of', 19677:'performance cost. 31.2058 federal acquisition regulation 2 those that may arise from presently knownor unknown conditions, the effectof which cannot', 19678:'be measured so precisely as to provide equitable results to the contractor and to the government; e.g., results of pending', 19679:'litigation. contingencies of this category are to be excluded from cost estimates under the several items of cost, but should', 19680:'be disclosed separately including the basis upon which the contingency is computed to facilitate the negotiation of appropriate contractual coverage.', 19681:'see, for example, 31.2056g and 31.20519. 31.2058 contributions or donations. contributions or donations, including cash, property and services, regardless of', 19682:'recipient, are unallowable, except as provided in 31.2051e3. 31.2059 [reserved] 31.20510 cost of money. a general. cost of money 1', 19683:'is an imputed cost that is not a form of interest on borrowings see 31.20520; 2 is an incurred cost', 19684:'for costreimbursement purposes under applicable costreimbursement contracts and for progress payment purposes under fixedprice contracts; and 3 refers to i', 19685:'facilities capital cost of money 48 cfr9904.414; and ii cost of money as an element of the cost of capital', 19686:'assets under construction 48 cfr9904.417. b cost of money is allowable, provided 1 it is measured, assigned, and allocated to', 19687:'contracts in accordance with 48 cfr9904.414 or measured and added to the cost of capital assets under construction in accordance', 19688:'with 48 cfr9904.417, as applicable; 2 the requirements of 31.20552, which limit the allowability of cost of money, are followed;', 19689:'and 3 the estimated facilities capital cost of money is specifically identified and proposed in cost proposals relating to the', 19690:'contract under which the cost is to be claimed. c actual interest cost in lieu of the calculated imputed cost', 19691:'of money is unallowable. 31.20511depreciation. a depreciation on a contractor’s plant, equipment, and other capitalfacilities is an allowable contractcost, subject', 19692:'to thelimitations contained in this cost principle. for tangible personal property, only estimated residual values that exceed10 percent of the', 19693:'capitalized cost of the asset need be used in establishing depreciable costs. where either the declining balance method of depreciation', 19694:'or the class life asset depreciation range system is used, the residual value need not be deducted from capitalized cost', 19695:'to determine depreciable costs. depreciation cost that would significantly reduce the book value of a tangible capital asset below its', 19696:'residual value is unallowable. b contractors having contracts subject to 48 cfr9904.409, depreciationof tangible capital assets, shall adhereto the requirement', 19697:'of that standard for all fully cascovered contracts and may elect to adopt the standard for all other contracts. all', 19698:'requirements of 48 cfr9904.409 are applicable if the election is made, and contractors must continue to follow it until notification', 19699:'of final acceptance of all deliverable items on all open negotiated government contracts. c for contracts to which 48 cfr9904.409', 19700:'is not applied, except as indicated in paragraphs g and h of this subsection, allowable depreciation shall not exceed the', 19701:'amount used for financial accounting purposes, and shall be determined in a manner consistent with the depreciation policies and procedures', 19702:'followed in the same segment on nongovernment business. d depreciation,rental, or use charges are unallowable onpropertyacquired from the government at', 19703:'no cost by the contractor orby any division, subsidiary,or affiliate of the contractor under common control. e the depreciation on', 19704:'any item which meets the criteria for allowance at price under 31.20526e may be based on that price, providedthe same', 19705:'policiesand procedures are used for costing all business of the using division, subsidiary, or organizationunder common control. f no depreciation', 19706:'or rentalis allowed on property fully depreciated by the contractor or by any division, subsidiary, or affiliate of the contractor', 19707:'undercommon control. however, areasonable chargeforusing fully depreciated property may be agreed upon and allowed but, see 31.109h2. in determining the', 19708:'charge, consideration shall begiven to cost, total estimated useful life atthe time of negotiations,effect ofanyincreased maintenance chargesor decreased efficiency due', 19709:'to age, and the amount of depreciation previously charged to government contracts or subcontracts. g whether or not the contract', 19710:'is otherwise subject to cas the following apply: subpart 31.2 contracts with commercial organizations 31.20513 1 the requirements of 31.20552', 19711:'shall be observed. 2 in the event of a writedown from carrying value to fair value as a result of', 19712:'impairments caused by events or changes in circumstances, allowable depreciation of the impaired assets is limited to the amounts that', 19713:'would have been allowed had the assets not been written down see 31.20516g. however, this does not preclude a change', 19714:'in depreciation resulting from other causes such as permissible changes in estimates of service life, consumption of services, or residual', 19715:'value. 3 i in the event the contractor reacquires property involved in a sale and leaseback arrangement, allowable depreciation of', 19716:'reacquired property shall be based on the net book value of the asset as of the date the contractor originally', 19717:'became a lessee of the property in the sale and leaseback arrangement a adjusted for any allowable gain or loss', 19718:'determined in accordance with 31.20516b; and b less any amount of depreciation expense included in the calculation of the amount', 19719:'that would have been allowed had the contractor retained title under 31.20511h1 and 31.20536b2. ii as used in this paragraph', 19720:'g3, reacquired property is property that generated either any depreciation expense or any cost of money considered in the calculation', 19721:'of the limitations under 31.20511h1 and 31.20536b2 during the most recent accounting period prior to the date of reacquisition. h', 19722:'a capitallease, as defined in financial accountingstandards board’s accounting standards codification fasb asc 840, leases, is subject to the requirements', 19723:'of this cost principle. see 31.20536 for operating leases. fasb asc 840 requires that capital leases be treated as purchased', 19724:'assets, i.e., be capitalized, and the capitalized value of such assets bedistributed over theiruseful lives as depreciation charges or over', 19725:'the leased life as amortization charges, as appropriate, except that 1 lease costs under a sale and leaseback arrangement are', 19726:'allowable only up to the amount that would be allowed if the contractor retained title, computed based on the net', 19727:'book value of the asset on the date the contractor becomes a lessee of the property adjusted for any gain', 19728:'or loss recognized in accordance with 31.20516b; and 2 if it is determined thatthe terms of thecapital lease have been', 19729:'significantly affected bythe factthat thelessee and lessor arerelated,depreciation charges are not allowable in excess of those that wouldhaveoccurredif the lease', 19730:'contained terms consistent with those found in a lease between unrelated parties. 31.20512 economic planning costs. economic planning costs are', 19731:'the costs of general longrange management planning that is concerned with the future overall development of thecontractor’sbusinessand that may take', 19732:'into account the eventual possibility of economic dislocations or fundamental alterations in those markets in which the contractor currently does', 19733:'business. economic planning costs are allowable. economic planningcosts do not include organizationor reorganization costs coveredby 31.20527. see 31.20538 for market', 19734:'planning costs other than economic planning costs. 31.20513 employeemorale, health,welfare, food service, and dormitory costs andcredits. a aggregate costs incurred', 19735:'on activities designed to improve working conditions, employeremployee relations, employee morale, and employee performance less income generated by these activities', 19736:'are allowable, subject to the limitations contained in this subsection. some examples of allowable activities are 1 house publications; 2', 19737:'health clinics; 3 wellness/fitness centers; 4 employee counseling services; and 5 food and dormitory services for the contractor’semployees at ornearthe', 19738:'contractor’s facilities. theseservices include i operating or furnishing facilities for cafeterias, dining rooms, canteens, lunch wagons, vending machines, living accommodations;', 19739:'and ii similar types of services. b costs of gifts are unallowable. gifts do not include awards for performance made', 19740:'pursuant to 31.2056f or awards made in recognition of employee achievements pursuant to an establishedcontractor plan or policy. c costs', 19741:'of recreation are unallowable, except for the costs of employees’ participation in company sponsored sports teams or employee organizationsdesigned to', 19742:'improve company loyalty, team work, orphysical fitness. d 1 the allowability of food and dormitory losses are determined by the', 19743:'following factors: 31.20514 federal acquisition regulation ilosses from operating foodand dormitoryservicesare allowable only if the contractor’s objective is to operate', 19744:'such services on a breakeven basis. iilosses sustained because foodservicesor lodging accommodations are furnished without charge orat prices or rates', 19745:'which obviously would not be conducive to the accomplishment of the objective in paragraph d1i of this subsection are not', 19746:'allowable, except as described in paragraph d1iii of this subsection. iii a loss may be allowed to the extent that', 19747:'the contractor can demonstrate that unusual circumstances exist such that even withefficient management, operating the serviceson abreakeven basiswouldrequire charging inordinately', 19748:'high prices,or prices orrateshigher than those charged by commercial establishments offering the same services in the same geographical areas. the', 19749:'following are examples of unusual circumstances: a the contractor must provide food or dormitory services at remote locations where adequate', 19750:'commercial facilities are not reasonably available. b the contractor’s charged but unproductive labor costs would be excessive if theserviceswere not', 19751:'available. c if cessation or reduction of food or dormitory operations will not otherwise yield net cost savings. 2 costs', 19752:'of food and dormitory services shall include an allocable share of indirect expenses pertaining to these activities. e when the', 19753:'contractor has an arrangement authorizing an employee association to provide or operate a service, such as vending machines in thecontractor’s', 19754:'plant,andretain the profits, such profits shall betreated in the same manner as if the contractor were providing the service but', 19755:'see paragraph f of this subsection. f contributions by the contractor toan employee organization,including funds from vending machinereceipts or similar', 19756:'sources, are allowable only to the extent that the contractor demonstrates that an equivalent amount of the costs incurred by', 19757:'theemployee organization wouldbe allowable if directly incurred by the contractor. 31.20514 entertainment costs. costs of amusement, diversions, social activities, and', 19758:'any directly associated costs such as tickets to shows or sports events, meals, lodging, rentals, transportation, and gratuities are unallowable.', 19759:'costs made specifically unallowable under this cost principle are not allowable under any other cost principle. costs of membership in', 19760:'social, dining, or country clubs or other organizations havingthe same purposes are also unallowable, regardless of whether the cost is', 19761:'reported astaxable income to the employees. 31.20515 fines, penalties, and mischarging costs. a costs of fines and penalties resulting from', 19762:'violations of, or failure of the contractor to comply with, federal, state, local, or foreign laws and regulations, are unallowable', 19763:'except when incurred as a result of compliance with specific terms and conditions of thecontract or written instructionsfrom the contracting', 19764:'officer. b costs incurred in connection with,or related to, the mischarging of costs ongovernment contracts are unallowable when the costs', 19765:'arecaused by,or resultfrom, alteration or destruction of records, or other false orimpropercharging or recording of costs. such costs include those', 19766:'incurred to measure or otherwise determine the magnitude of the improper charging,and costs incurred to remedy orcorrect the mischarging, such', 19767:'as costs to rescreen and reconstruct records. 31.20516 gains and losses on disposition or impairment of depreciable property or other', 19768:'capital assets. a gains and losses from the sale, retirement, or other disposition but see 31.20519 of depreciable property shall', 19769:'beincluded inthe year in which they occur as credits or charges to the cost groupings in which the depreciation or', 19770:'amortizationapplicable to those assets was included but see paragraph f of thissubsection. however, no gain orloss shall be recognized as', 19771:'a result of the transfer of assets in a business combination see 31.20552. b notwithstanding the provisions in paragraph c', 19772:'of this subsection, when costs of depreciable property are subject to the sale and leaseback limitations in 31.20511h1 or 31.20536b2', 19773:'1 the gainor loss isthe difference between the net amount realizedandthe undepreciated balance of the asset on the date the', 19774:'contractor becomes a lessee; and 2 when the application of b1 of this subsection results in a loss i the', 19775:'allowable portion of the loss is zero if the fair market value exceeds the undepreciated balance of the asset on', 19776:'the date the contractor becomes a lessee; and iithe allowable portionof the loss is limitedto the difference betweenthe fair market', 19777:'value and the undepreciated balance of the asset on the date the contractor becomes a lessee if the fair market', 19778:'value is less than the undepreciated balance of the asset on the date the contractor becomes a lessee. subpart 31.2', 19779:'contracts with commercial organizations 31.20517 c gains and losses on disposition of tangible capital assets, including those acquired under capital', 19780:'leases see 31.20511h, shall be considered as adjustments of depreciation costs previously recognized. the gain or loss for each asset', 19781:'disposed of is thedifference between the net amount realized, including insurance proceeds frominvoluntary conversions, and its undepreciated balance. d the', 19782:'gainrecognizedforcontract costing purposes shall be limitedto the difference betweenthe acquisition cost or for assets acquired under a capital lease, the', 19783:'value at which the leased asset is capitalized of the asset and its undepreciated balance except see paragraphs e2i or', 19784:'ii of this subsection. e special considerations apply to an involuntary conversion which occurs when a contractor’s property is destroyed', 19785:'by events over which the owner has no control, such as fire, windstorm, flood, accident, theft, etc., and an insurance', 19786:'award is recovered. the following govern involuntary conversions: 1 when there is a cash award and the converted asset is', 19787:'not replaced, gain or loss shall be recognized in the period of disposition. thegain recognized for contractcosting purposes shall be', 19788:'limited to the differencebetween the acquisition cost of the asset and its undepreciated balance. 2 when the converted asset is', 19789:'replaced, the contractor shall either i adjust the depreciable basis of the new asset by the amount of the total', 19790:'realized gain or loss; or ii recognize the gain or loss in the period of disposition, in which case the', 19791:'government shall participate to the same extent as outlined in paragraph e1 of this subsection. f gains and losses on', 19792:'the disposition of depreciable property shall not be recognized asa separate charge or credit when 1 gains and losses are', 19793:'processed through the depreciation reserve account and reflected in the depreciation allowable under 31.20511; or 2 the property is exchanged', 19794:'as part of the purchase price of a similar item, and the gain or loss is taken into consideration in', 19795:'the depreciation cost basis of the new item. g gains and losses arising from mass or extraordinary sales, retirements, or', 19796:'other disposition other than through business combinations shall be considered on a casebycase basis. h gains and losses of any', 19797:'nature arising from the sale or exchange of capital assets other than depreciable property shall be excluded in computing contract', 19798:'costs. iwith respect tolonglivedtangibleandidentifiable intangible assets held for use, no loss shall be allowed for a write down from carrying', 19799:'value to fair value as a result of impairments caused by events or changes in circumstances e.g., environmental damage, idle', 19800:'facilities arising from a declining business base, etc.. if depreciable property or other capital assets have been written down from', 19801:'carrying value to fair value due to impairments, gains or losses upon disposition shall be the amounts that would have', 19802:'been allowed had the assets not been written down. 31.20517 idle facilities and idle capacity costs. a definitions. as used', 19803:'in this subsection costs of idle facilities or idle capacity means costssuch as maintenance, repair, housing, rent, and other relatedcosts;', 19804:'e.g., property taxes, insurance, and depreciation. facilities means plant or any portion thereof including land integral to the operation, equipment,', 19805:'individually or collectively,or any other tangible capital asset,wherever located, and whether owned or leased by the contractor. idle capacity meansthe', 19806:'unused capacity of partially used facilities. it is the difference between that which a facility could achieve under 100 percent', 19807:'operating time on a oneshift basis, less operating interruptions resulting from time lost for repairs, setups, unsatisfactory materials, and other', 19808:'normal delays, and the extent to which the facility was actually used to meet demands during the accounting period. a', 19809:'multipleshift basis may be used in the calculation instead of a oneshift basis if it can be shown that this', 19810:'amount of usage could normally be expected for the type of facility involved. idle facilities means completely unusedfacilities that are', 19811:'excess to the contractor’s current needs. b the costs of idle facilities are unallowable unless the facilities 1 are necessary', 19812:'to meet fluctuations in workload; or 2 were necessary when acquiredandare now idle because of changes in requirements, production economies,', 19813:'reorganization, termination, orothercauseswhich could not have been reasonablyforeseen. costs of idle facilities are allowable for a reasonable period, ordinarilynot to', 19814:'exceed 1 year, depending uponthe initiativetakento use, lease, or dispose of the idle facilities but see 31.20542. c costs of', 19815:'idle capacity are costs of doing business and are a factor in the normal fluctuations of usage or overhead rates', 19816:'from period to period. such costs are allowable provided the capacity is necessary or was originally reasonable and is not', 19817:'subject to reduction or elimination by subletting, renting, or sale, in accordance with sound business, economics, or security 31.20518 federal', 19818:'acquisition regulation practices. widespreadidle capacity throughoutan entire plant or among a group of assets having substantiallythe same function may be', 19819:'idle facilities. d any costs to be paid directly by the government for idle facilities or idle capacity reserved for', 19820:'defense mobilization production shall be the subject of a separate agreement. 31.20518 independent research and development and bid and proposal', 19821:'costs. a definitions. as used in this subsection applied research means that effort which1normally followsbasic research, butmay not be severablefrom', 19822:'the related basic research, 2 attemptsto determine and exploit the potential ofscientific discoveries or improvements in technology, materials, processes, methods,', 19823:'devices, or techniques, and 3 attempts to advance the state of the art. applied research does not include efforts whoseprincipal', 19824:'aim is design, development, or test of specific items orservicesto beconsidered for sale; these effortsare withinthe definitionof the term development,', 19825:'defined in thissubsection. basic research see 2.101. bid and proposal b&p costs means the costs incurred in preparing, submitting, and', 19826:'supporting bids and proposals whether or not solicited on potential government or nongovernment contracts. the term does not include the', 19827:'costs of effort sponsored by a grant or cooperative agreement, or required inthe performanceof acontract. company means alldivisions, subsidiaries, and', 19828:'affiliates of the contractor under common control. development means the systematic use, under whatever name, of scientific and technical knowledge', 19829:'in the design, development, test, or evaluation of a potential new product or service or of an improvement in an', 19830:'existing product or service for the purpose of meeting specific performance requirements or objectives. development includes the functions of design', 19831:'engineering, prototyping, and engineering testing. development excludes 1 subcontracted technical effortwhich is for the solepurpose of developing an additional sourceforan', 19832:'existing product, or 2 development effort for manufacturing or production materials,systems, processes,methods, equipment,tools, and techniques not intended for sale. independent', 19833:'research and development ir&d means a contractor’s ir&d cost that consists of projects fallingwithin the four following areas: 1 basic', 19834:'research, 2 applied research, 3 development, and 4 systems and other concept formulation studies. the termdoes not include the costs', 19835:'of effortsponsored by a grant or requiredin theperformance of a contract. ir&d effort shall notinclude technicaleffort expended in developing and', 19836:'preparing technical dataspecifically tosupport submitting a bid or proposal. systems and other concept formulation studies means analyses and studyefforts either', 19837:'relatedto specific ir&d efforts or directed toward identifying desirable new systems, equipment or components, or modifications and improvements to existing', 19838:'systems, equipment, or components. b composition and allocation of costs. the requirements of 48 cfr 9904.420, accounting for independent research', 19839:'and development costs and bid and proposal costs, are incorporated in their entirety and shall apply as follows 1 fullycascovered', 19840:'contracts. contracts that are fullycascovered shall be subject to all requirements of 48 cfr 9904.420. 2 modified cascovered and noncascovered', 19841:'contracts. contracts that are not cascovered or that contain terms or conditions requiring modified cas coverage shall be subject to', 19842:'all requirements of 48 cfr9904.420 except 48 cfr 9904.42050e2 and 48 cfr 9904.42050f2 , which are not then applicable. however,', 19843:'noncascovered or modified cascovered contracts awarded at a time the contractor has cascovered contracts requiring compliance with 48 cfr 9904.420,', 19844:'shall be subject to all the requirements of 48 cfr 9904.420. when the requirements of 48 cfr 9904.42050e2 and 48', 19845:'cfr 9904.42050f2 are not applicable, the following apply: i ir&d and b&p costs shall be allocated to final cost objectives', 19846:'on the same basis of allocation used for the g&a expense grouping of the profit center see 31.001 inwhich the', 19847:'costs are incurred. however, when ir&d and b&pcosts clearly benefit other profit centers or benefitthe entire company, thosecosts shall be', 19848:'allocated through the g&a of theother profit centers or through the corporate g&a, as appropriate. ii if allocations of ir&d', 19849:'or b&p through the g&a base do not provide equitable cost allocation, the contracting officer may approveuse ofa different base.', 19850:'c allowability. except as provided in paragraphs d and e of this subsection, or as provided in agency regulations, costs', 19851:'for ir&d and b&p are allowable as indirect expenses on contracts to the extent that those costs are allocable and', 19852:'reasonable. subpart 31.2 contracts with commercial organizations 31.20519 d deferred ir&d costs. 1 ir&d costs that were incurred in previous', 19853:'accounting periods are unallowable, except when a contractor has developed a specific product at its own risk in anticipation of', 19854:'recovering the development costs in the sale price of the product provided that i the total amount of ir&d costs', 19855:'applicable to the product can be identified; ii the proration of such costs to sales of the product is reasonable;', 19856:'iii the contractor had no government business during the time that the costs were incurred or did not allocate ir&d', 19857:'costs to government contracts except to prorate the cost of developing a specific product to the sales of that product;', 19858:'and iv no costs of current ir&d programs are allocated to government work except to prorate the costs of developing', 19859:'a specific product to the sales of that product. 2 when deferred costs are recognized, the contract except firmfixedprice and', 19860:'fixedprice with economic price adjustment will include a specific provision setting forth the amount of deferred ir&d costs that are', 19861:'allocable to the contract. the negotiation memorandum will state the circumstances pertaining to the case and the reason for accepting', 19862:'the deferred costs. e cooperative arrangements. 1 ir&d costs may be incurred by contractors working jointly with one or more', 19863:'nonfederal entities pursuant to a cooperative arrangement for example, joint ventures, limited partnerships, teaming arrangements, and collaboration and consortium arrangements.', 19864:'ir&d costs also may include costs contributed by contractors in performing cooperative research and development agreements, or similar arrangements, entered', 19865:'into under isection 12 of the stevensonwydlertechnology transfer act of1980 15 u.s.c. 3710a; ii sections203c5 and 6 of the national', 19866:'aeronautics and space act of1958, as amended 42 u.s.c. 2473c5 and 6; iii 10 u.s.c. 4021 for the defense advanced', 19867:'research projects agency; or iv otherequivalent authority. 2 ir&d costs incurred by a contractor pursuant to these types of cooperative', 19868:'arrangements should be considered as allowable ir&d costs if the work performed would have been allowed as contractor ir&d had', 19869:'there been no cooperative arrangement. 3 costs incurred in preparing,submitting, andsupporting offers on potential cooperativearrangements are allowable to the extent', 19870:'they are allocable, reasonable, and not otherwise unallowable. 31.20519 insurance and indemnification. a insurance by purchase or by selfinsuring includes', 19871:'1 coverage the contractor is required to carry or to have approved, under the terms of the contract; and 2', 19872:'any other coverage the contractor maintains in connection with the general conduct of its business. b for purposes of applying', 19873:'the provisions of this subsection, the government considers insurance provided by captive insurersinsurers owned by or under control ofthe contractor', 19874:'as selfinsurance, and chargesforitshallcomply with the provisions applicable to selfinsurance costs in this subsection. however, ifthe captive insurer also sells', 19875:'insurance to the general public in substantial quantitiesand it can be demonstrated that the charge tothe contractor is based on', 19876:'competitive market forces, the government will consider the insurance as purchased insurance. c whether or not the contractis subjectto cas,', 19877:'selfinsurancecharges areallowable subject to paragraph e of this subsection and the following limitations: 1 the contractor shall measure, assign, and', 19878:'allocate costs in accordance with 48 cfr9904.416, accounting for insurance costs. 2 the contractor shall comply with 48 cfr part', 19879:'28.however,approvalofacontractor’sinsuranceprogramin accordance with part 28doesnotconstituteadeterminationastotheallowabilityoftheprogram’scost. 3 if purchased insurance is available, any selfinsurance charge plusinsurance administration expensesin excess of the', 19880:'cost of comparable purchased insurance plus associated insurance administration expenses is unallowable. 4 selfinsurance charges for risksof catastrophic losses are', 19881:'unallowablesee 28.308e. d purchased insurance costs are allowable, subject to paragraph e of this subsection and the following limitations: 1', 19882:'for contracts subject to full cas coverage, the contractor shall measure, assign, and allocate costs in accordance with 48 cfr9904.416.', 19883:'2 for all contracts, premiums for insurance purchased from fronting insurance companies insurance companies not related to the contractor but', 19884:'who reinsure with a captive insurer of the contractor are unallowable to the extent they exceed the sum of 31.20520', 19885:'federal acquisition regulation i the amount that would have been allowed had the contractor insured directly with the captive insurer;', 19886:'and iireasonable fronting company charges for services rendered. 3 actual losses are unallowable unless expressly provided for in the contract,', 19887:'except i losses incurred under the nominal deductible provisions of purchased insurance, in keeping with sound business practice, are allowable;', 19888:'and ii minor losses, such as spoilage, breakage, and disappearance of small hand tools that occur in the ordinary course', 19889:'of business and that are not covered by insurance, are allowable. e selfinsurance and purchased insurance costs are subject to', 19890:'the cost limitations in the following paragraphs: 1 costs of insurance required or approved pursuant to the contract are allowable.', 19891:'2 costs of insurance maintained by the contractor in connection with the general conduct of its business are allowable subject', 19892:'to the following limitations: itypes and extent ofcoverage shall follow sound business practice, and theratesandpremiums shall be reasonable. ii costs', 19893:'allowed for business interruption or other similar insurance shall be limited to exclude coverage of profit. iii the cost of', 19894:'property insurance premiums for insurance coverage in excess of the acquisition cost of the insured assets is allowable only when', 19895:'the contractor has a formal written policy assuring that in the event the insured property is involuntarily converted, the new', 19896:'asset shall be valued at the book value of the replaced asset plus or minus adjustments for differences between insurance', 19897:'proceeds and actual replacement cost. if the contractor does not have such a formal written policy,the cost of premiums for', 19898:'insurance coverage in excess of theacquisitioncostof the insured asset is unallowable. iv costs of insurance for the risk of loss', 19899:'of government property are allowable to the extent that a the contractor is liable for such loss; b the contracting', 19900:'officerhas not revoked the government’s assumption of risk see 45.104b; and c such insurance does not cover loss of government', 19901:'property that results from willful misconduct or lack of goodfaith on thepart of any of the contractor’s managerial personnel as', 19902:'described in far 52.2451h1ii. v costs of insurance on the lives of officers, partners, proprietors, oremployees are allowable only to', 19903:'the extent that the insurance represents additional compensation see 31.2056. 3 the cost of insurance to protect the contractor against', 19904:'the costs of correcting its own defects in materials and workmanship is unallowable. however, insurancecosts tocover fortuitous or casualty losses', 19905:'resultingfrom defects in materials or workmanship are allowable as a normal business expense. 4 premiums for retroactive or backdated insurance', 19906:'written to cover losses that have occurred and are known are unallowable. 5 the government is obligated to indemnify thecontractor', 19907:'only to the extent authorized by law, as expressly provided for in the contract, except as provided in paragraph d3', 19908:'of this subsection. 6 late premium paymentcharges related to employee deferredcompensation plan insurance incurred pursuant to section 4007 29 u.s.c.', 19909:'1307 or section 4023 29 u.s.c. 1323 of the employee retirement income security act of1974 are unallowable. 31.20520 interest and', 19910:'otherfinancial costs. interest on borrowings however represented, bond discounts, costs of financing and refinancing capital net worth plus longterm liabilities,', 19911:'legal and professional fees paid in connection with preparing prospectuses, and costs of preparing and issuing stock rights are unallowable', 19912:'but see 31.20528. however, interest assessed by state or local taxing authorities under the conditions specified in 31.20541a3 is allowable.', 19913:'31.20521 labor relations costs. a costs incurred in maintaining satisfactory relations between the contractor and its employees other than those', 19914:'made unallowable in paragraph b of this section, including costs of shop stewards, labor management committees, employee publications, and other', 19915:'related activities, are allowable. b as required by executive order 13494, economy in government contracting, costs of any activities undertaken', 19916:'to persuade employees,of any entity, to exercise or not to exercise, or concerning themanner of exercising, therightto organize and bargain', 19917:'collectively through representatives of the employees’ own choosing are unallowable. examples ofunallowable costs under this paragraph include, but are not', 19918:'limited to, the costs of 1 preparing and distributing materials; 2 hiring or consulting legal counsel or consultants; subpart 31.2', 19919:'contracts with commercial organizations 31.20523 3 meetings including paying the salaries of the attendees at meetings held for this purpose;', 19920:'and 4 planning or conducting activities by managers, supervisors, or union representatives during work hours. 31.20522 lobbying and political activity', 19921:'costs. a costs associated with the following activities are unallowable: 1 attempts to influence the outcomes of any federal, state,', 19922:'or local election, referendum, initiative, or similar procedure, through in kind or cash contributions, endorsements, publicity, or similar activities; 2', 19923:'establishing, administering, contributingto, or paying the expenses of a political party,campaign, political action committee, or other organizationestablished for the purpose', 19924:'ofinfluencingthe outcomes of elections; 3 any attempt to influence i the introduction of federal, state, or local legislation, or ii', 19925:'the enactment or modification of any pending federal, state, or local legislation through communication with any member or employee of', 19926:'the congress or statelegislature including efforts to influence state or local officials to engage in similarlobbyingactivity,or withany government official or', 19927:'employeein connection with a decision tosign orveto enrolled legislation; 4 any attempt to influence i the introduction of federal, state,', 19928:'or local legislation, or ii the enactment or modification of any pending federal, state, or local legislation by preparing, distributing', 19929:'or using publicity or propaganda, or by urging members of the generalpublicor any segment thereof to contributeto or participate inany', 19930:'mass demonstration, march, rally,fund raisingdrive, lobbying campaign or letterwriting or telephone campaign; 5 legislative liaison activities, including attendance at legislative', 19931:'sessions or committee hearings, gathering information regarding legislation, and analyzing the effect of legislation,when such activities are carriedon in support', 19932:'of or in knowing preparation for an effort to engage in unallowable activities; or 6 costs incurred in attempting to', 19933:'improperly influence see 3.401, eitherdirectlyor indirectly, an employee or officer of the executive branch of thefederal government to give consideration', 19934:'to or act regarding a regulatory or contractmatter. b the following activities are excepted from the coverage of a of', 19935:'this section: 1 providing a technical and factual presentation of information on a topic directly related to the performance of', 19936:'a contract through hearing testimony, statements or lettersto thecongress or a state legislature, or subdivision, member, or cognizantstaff member thereof,', 19937:'in responseto a documented request including a congressional record notice requesting testimony orstatementsforthe recordat a regularlyscheduled hearingmadeby the recipient member,', 19938:'legislative bodyor subdivision, or a cognizant staffmember thereof; provided such information is readily obtainable and can be readilyput in deliverable', 19939:'form; and further provided that costs under this section for transportation, lodging or meals are unallowable unless incurred for the', 19940:'purpose of offering testimony at a regularly scheduled congressional hearing pursuantto a written request for such presentation made by the', 19941:'chairman or ranking minority member of the committee or subcommittee conducting such hearing. 2 any lobbying made unallowable by paragraph', 19942:'a3 of this subsection to influence state or local legislation in order to directly reduce contract cost, or to avoidmaterial', 19943:'impairment of the contractor’s authorityto perform the contract. 3 any activity specifically authorized by statute to be undertaken with funds', 19944:'from the contract. c when a contractor seeks reimbursement for indirect costs, total lobbying costs shall be separately identified in', 19945:'the indirect cost rate proposal, and thereafter treated as other unallowable activity costs. d contractors shall maintain adequate records to', 19946:'demonstrate that the certification of costs as being allowable or unallowable see 42.7032 pursuant to this subsection complies with the', 19947:'requirements of this subsection. e existing procedures should be utilized to resolve in advance any significant questions or disagreements concerning', 19948:'the interpretation or application of this subsection. 31.20523 losses on other contracts. an excess of costs over income underany othercontract', 19949:'includingthe contractor’s contributed portion under costsharing contracts is unallowable. 31.20524 federal acquisition regulation 31.20524 [reserved] 31.20525 manufacturing andproduction engineering costs.', 19950:'a thecosts of manufacturingandproduction engineering effort asdescribed in 1 through 4 of this paragraph are all allowable: 1 developing and', 19951:'deploying new or improved materials, systems, processes, methods, equipment, tools and techniques that are or are expected to be used', 19952:'in producing products or services; 2 developing and deploying pilot production lines; 3 improving current production functions, such as plant', 19953:'layout, production scheduling and control, methods and job analysis, equipment capabilities and capacities, inspection techniques, and tooling analysis including tooling', 19954:'design and application improvements; and 4 material and manufacturing producibility analysis for production suitability and to optimize manufacturing processes, methods,', 19955:'and techniques. b this cost principle does not cover 1 basic and applied research effort as defined in 31.20518a related', 19956:'to newtechnology, materials,systems, processes, methods, equipment, toolsandtechniques. such technical effort is governed by 31.20518, independent research and development and bid', 19957:'and proposal costs; and 2 development effort for manufacturing or production materials,systems, processes,methods, equipment,tools, and techniques that are intended for', 19958:'sale is also governed by 31.20518. c where manufacturing or production development costs are capitalized or required to be capitalized', 19959:'under the contractor’s capitalization policies, allowable cost will be determinedin accordance with therequirements of 31.20511, depreciation. 31.20526 material costs. a', 19960:'material costs include the costs of such items as raw materials, parts, subassemblies, components, and manufacturing supplies, whether purchased or', 19961:'manufactured by thecontractor, and mayinclude such collateral items as inbound transportation and intransit insurance. in computing material costs, the contractor', 19962:'shall consider reasonable overruns, spoilage, or defective work unless otherwise provided in any contract provision relating to inspecting and correcting', 19963:'defective work. b the contractor shall 1 adjust the costs of material for income and other credits, including available trade', 19964:'discounts, refunds, rebates, allowances, and cash discounts, and credits for scrap, salvage, and material returned to vendors; and 2 credit', 19965:'such income and other credits either directly to the cost of the material or allocate such income and other credits', 19966:'as a credit to indirect costs. when the contractor can demonstrate that failure to take cash discounts was reasonable, the', 19967:'contractor does not need to credit lost discounts. c reasonable adjustments arising fromdifferencesbetween periodic physicalinventories and book inventories may be', 19968:'included in arriving at costs; provided such adjustments relate to the period of contract performance. d when materials are purchased', 19969:'specifically for and are identifiable solely with performance under a contract, the actual purchase cost of thosematerials should be chargedto', 19970:'the contract. if material is issued from stores, any generallyrecognized method of pricing such material is acceptable if that method', 19971:'is consistently applied and the results are equitable. e allowance for all materials, supplies and services that are sold or', 19972:'transferred between any divisions, subdivisions, subsidiaries, or affiliates of the contractor under a common controlshallbe on the basis of cost', 19973:'incurred in accordance with this subpart. however,allowance may be at price when 1 it is theestablished practice ofthe transferring organization', 19974:'to priceinterorganizational transfers at other than cost for commercial work of thecontractor or any division, subsidiary oraffiliate of the contractor', 19975:'under a common control; and 2 the item being transferred qualifies for an exception under 15.4031band the contracting officerhas not', 19976:'determined the price to be unreasonable. f when a commercial product or commercial service under paragraph e of this section', 19977:'is sold or transferred at a price based on a catalog or market price, the contractor— 1 should adjust the', 19978:'price to reflect the quantities being acquired; and 2 may adjust the price to reflect the actual cost of any', 19979:'modifications necessary because of contract requirements. subpart 31.2 contracts with commercial organizations 31.20531 31.20527 organization costs. a except as provided', 19980:'in paragraph b of this subsection, expenditures in connection with 1 planning or executing theorganization or reorganization ofthe corporate structure', 19981:'ofa business, includingmergers and acquisitions,2resisting or planningto resist the reorganization ofthe corporate structure ofa business ora change inthe controlling interest', 19982:'in the ownership of a business, and 3 raising capital net worth plus longterm liabilities, are unallowable. such expenditures include', 19983:'but are not limited to incorporation fees and costs of attorneys, accountants, brokers, promoters and organizers, management consultantsandinvestment counselors,whetheror not', 19984:'employees of thecontractor. unallowable reorganization costsinclude the cost of any change in the contractor’s financialstructure,excluding administrativecosts of shortterm borrowings for', 19985:'working capital, resulting in alterations in the rights and interests of security holders, whether or not additional capital is raised.', 19986:'b the cost ofactivitiesprimarily intended to providecompensation will not be considered organizationalcosts subjectto this subsection, but will be governed by', 19987:'31.2056. these activities include acquiring stock for 1 executive bonuses, 2 employee savings plans, and 3 employee stock ownership plans.', 19988:'31.20528 other business expenses. the following types of recurring costs are allowable: a registry and transfer charges resulting from changes', 19989:'inownership ofsecurities issued by the contractor. b cost of shareholders’ meetings. c normal proxy solicitations. d preparing and publishing reports', 19990:'to shareholders. e preparing and submitting required reports and forms to taxing and other regulatory bodies. f incidental costs of', 19991:'directors’ and committee meetings. g other similar costs. 31.20529 plant protection costs. costs of items such as a wages, uniforms,', 19992:'and equipmentof personnel engaged in plantprotection, b depreciation on plant protection capital assets, and c necessary expenses to comply with', 19993:'military requirements, are allowable. 31.20530 patent costs. a the following patent costs are allowable to the extent that they are', 19994:'incurred as requirements of a government contract but see 31.20533: 1 costs of preparing invention disclosures, reports, and other documents.', 19995:'2 costs for searching the art to the extent necessary to make the invention disclosures. 3 other costs in connection', 19996:'with the filing and prosecution of a united states patent application where title or royalty free license is to be', 19997:'conveyed to the government. b general counseling services relating to patent matters, such as advice on patent laws, regulations, clauses,', 19998:'and employee agreements, are allowable but see 31.20533. c other than those for general counseling services, patent costs not required', 19999:'by the contract are unallowable. see also 31.20537. 31.20531 plant reconversion costs. plant reconversion costs are those incurredin restoring or', 20000:'rehabilitating the contractor’s facilities to approximatelythe same condition existing immediately before the start of the government contract, fair wear and', 20001:'tear excepted. reconversion costs are unallowable except for the cost of removing government property and the restoration or rehabilitation costs', 20002:'caused by such removal. however, in special circumstances where equitysodictates, additional costs may be allowed to the extent agreed upon', 20003:'before costs are incurred. care should be exercised to avoid duplication through allowance as contingencies, additional profit or fee, or', 20004:'in other contracts. 31.20532 federal acquisition regulation 31.20532 precontract costs. precontract costs means costs incurred before the effective date of', 20005:'the contract directly pursuant to the negotiation and in anticipation of the contract award when such incurrence is necessary to', 20006:'comply with the proposed contract delivery schedule. these costs are allowable to the extent that they would have been allowable', 20007:'if incurred after the date of the contract see 31.109. 31.20533 professional and consultantservice costs. a definition. professional and consultant', 20008:'services, as used in this subsection, means those services rendered by persons who are members of a particularprofession orpossess a', 20009:'special skill and whoare not officers or employees of thecontractor. examples include those services acquired by contractors or subcontractors in', 20010:'order to enhance their legal, economic, financial, or technical positions. professional and consultant services are generally acquired to obtain information,', 20011:'advice, opinions, alternatives, conclusions, recommendations, training, or direct assistance, such as studies, analyses, evaluations, liaison with government officials,or other forms', 20012:'of representation. b costs of professional and consultant services are allowable subject to this paragraph and paragraphs c through f', 20013:'of this subsection when reasonable in relation to the services rendered and when not contingent upon recovery of the costs', 20014:'from the government but see 31.20530 and 31.20547. c costs of professional and consultant services performed under any of the', 20015:'following circumstances are unallowable: 1 services to improperly obtain, distribute, or use information or data protected by law or regulation', 20016:'e.g., 52.2151e, restriction on disclosure and use of data. 2 services that are intended to improperly influence the contents of', 20017:'solicitations, the evaluation of proposals or quotations, or the selection of sources for contract award, whether award is by the', 20018:'government, or by a prime contractor or subcontractor. 3 any other services obtained, performed, or otherwise resulting in violation of', 20019:'any statute or regulation prohibiting improper business practices or conflicts of interest. 4 services performed which are not consistent with', 20020:'the purpose and scope of the services contracted for or otherwise agreed to. d in determining the allowability of costs', 20021:'including retainer fees in a particular case, no single factor or any special combination of factors is necessarilydeterminative. however, the', 20022:'contracting officer shall consider the following factors, among others: 1 the nature and scope of the service rendered in relation', 20023:'to the service required. 2 the necessity ofcontracting for the service,considering the contractor’s capability in the particular area. 3 the', 20024:'past pattern of acquiring such services and their costs, particularly in the years prior to the award of government contracts.', 20025:'4 the impactof government contracts on the contractor’s business. 5 whetherthe proportionof government work tothe contractor’s totalbusiness is suchas to', 20026:'influence the contractor in favor of incurring the cost, particularly when the services rendered are not of a continuing nature', 20027:'and have little relationship to work under government contracts. 6 whether the service can be performed more economically by employment', 20028:'rather than by contracting. 7 the qualifications of the individual orconcern rendering the service and the customary feecharged, especially on', 20029:'nongovernment contracts. 8 adequacy of the contractual agreement for the service e.g., description of the service, estimate of time required,', 20030:'rate of compensation, termination provisions. e retainer fees, to be allowable, must be supported by evidence that 1 the services', 20031:'covered by the retainer agreement are necessary and customary; 2 the level of past services justifies the amount of the', 20032:'retainer fees if no services were rendered, fees are not automatically unallowable; 3 the retainer fee is reasonable in comparison', 20033:'with maintaining an inhouse capability to perform the covered services, when factors such as cost and level of expertise are', 20034:'considered; and 4 the actual services performed are documented in accordance with paragraph f of this subsection. f fees for', 20035:'services rendered are allowable only when supported by evidence of the nature and scope of the service furnished see also', 20036:'31.20538c. however, retainer agreements generally arenot based on specific statements of work. evidence necessary to determine that work performed is', 20037:'proper and does not violate law or regulation shall include subpart 31.2 contracts with commercial organizations 31.20535 1 details of', 20038:'all agreements e.g., work requirements, rate of compensation, and nature and amount of other expenses, if anywith the individuals or', 20039:'organizations providingthe services and details of actual services performed; 2 invoices or billings submitted by consultants, including sufficient detail as', 20040:'to the time expended and nature of the actual services provided; and 3 consultants’ work products and related documents, such', 20041:'as trip reports indicating persons visited and subjects discussed, minutes of meetings, and collateral memoranda and reports. 31.20534 recruitment costs.', 20042:'a subject to paragraph b of this subsection, the following costs are allowable: 1 costs of helpwanted advertising. 2 costs', 20043:'of operatingan employment office needed tosecure and maintain an adequate labor force. 3 costs of operating an aptitude and educational', 20044:'testing program. 4 travel costsof employeesengaged in recruiting personnel. 5 travel costsof applicants for interviews. 6 costs for employment agencies,', 20045:'not in excess of standard commercial rates. b helpwanted advertising costs are unallowable if the advertising 1 does not describe', 20046:'specific positions or classes of positions; or 2 includes material that is not relevant for recruitment purposes, such as extensive', 20047:'illustrations or descriptions of the company’s products or capabilities. 31.20535 relocation costs. a relocation costs are costs incident to the', 20048:'permanent change of assigned work location for a period of 12 months or more of an existing employee or upon', 20049:'recruitment of a new employee. the following types of relocation costs are allowable as noted, subject to the limitations in', 20050:'paragraphs b and f of this subsection: 1 costs of travelof the employee and members of theemployee’simmediatefamilysee 31.20546 and transportation', 20051:'ofthe household and personal effects to thenew location. 2 costs of finding a new home, such as advance trips by', 20052:'the employee or the spouse, or both, to locate living quarters, and temporary lodgingduring the transitionperiod for the employee and', 20053:'members of the employee’s immediate family. 3 closing costs incident to the disposition of the actual residence owned by the', 20054:'employee when notified of the transfer e.g., brokeragefees, legal fees, appraisalfees, points,andfinance charges,exceptthat these costs, when added tothe costs described', 20055:'in paragraph a4 of this subsection, shall not exceed 14 percent of the sales price of the property sold. 4', 20056:'continuing costs of ownership of the vacant former actual residence being sold, such as maintenance of building and grounds exclusive', 20057:'of fixing up expenses, utilities, taxes, property insurance, and mortgage interest, after the settlement date or lease date of a', 20058:'new permanent residence, except that these costs, when added to the costs described in paragraph a 3 of this subsection,', 20059:'shall not exceed 14 percent of the sales price of the property sold. 5 other necessary and reasonable expenses normally', 20060:'incident to relocation, such as disconnecting and connecting household appliances;automobile registration; driver’s license and use taxes; cutting and fitting rugs,', 20061:'draperies, and curtains; forfeited utility fees and deposits; and purchase of insurance against damage to or loss of personal property', 20062:'while in transit. 6 costs incident to acquiring a home in the new work location, except that i these costs', 20063:'are not allowable for existing employees or newly recruited employees who were not homeowners before the relocation; and ii the', 20064:'total costs shall not exceed 5 percent of the purchase price of the new home. 7 mortgage interest differential payments,', 20065:'except that thesecosts are notallowable for existing ornewly recruited employees who, before the relocation, were not homeowners and the total', 20066:'payments are limited to an amount determined as follows: ithe difference betweenthe mortgage interest rates of the old and new', 20067:'residences times the current balance ofthe old mortgage times 3 years. iiwhen mortgagedifferentialpayments are made on a lumpsum basis and', 20068:'the employee leavesor is transferred again in less than 3 years, the amount initially recognized shall be proportionately adjusted to', 20069:'reflect payments only for the actual time of the relocation. 8 rental differential payments covering situations where relocated employees retain', 20070:'ownership of a vacated home in the old location and rent at the new location. the rented quarters at the', 20071:'new location must be comparable to those vacated, 31.20535 federal acquisition regulation and the allowable differential payments may not exceed', 20072:'the actual rental costs for the new home, less thefair market rent for the vacated home times 3 years. 9', 20073:'costs of canceling an unexpired lease. 10 payments for increased employee income or federal insurance contributions act 26 u.s.c.chapter21 taxes', 20074:'incident to allowable reimbursed relocation costs. 11 payments for spouse employment assistance. b the costs described in paragraph a of', 20075:'this subsection must also meet the following criteria to be considered allowable: 1 the move must be for the benefit', 20076:'of theemployer. 2 reimbursement must be in accordance with an established policy or practice that is consistently followed by the', 20077:'employer and is designedto motivate employees torelocate promptly and economically. 3 the costs must not be otherwise unallowable under subpart', 20078:'31.2. 4 amounts to be reimbursed shall not exceed the employee’s actual expenses, except as provided for in paragraphs b', 20079:'5 and b6 of this subsection. 5 for miscellaneous costs of the type discussed in paragraph a5 of this subsection,', 20080:'a lumpsum amount, not to exceed $5,000, may be allowed in lieu of actual costs. 6 i reimbursement on a', 20081:'lumpsum basis may be allowed for any of the following relocation costs when adequately supported by data on the individual', 20082:'elements e.g., transportation, lodging, and meals comprising the buildup of the lump sum amount to be paidbased on thecircumstances of', 20083:'theparticular employee’s relocation: a costs of finding a new home, as discussed in paragraph a2 of this subsection. b costs', 20084:'of travel to the new location, as discussed in paragraph a1 of this subsection but not costs for the transportation', 20085:'of household goods. c costs of temporary lodging, as discussed in paragraph a2 of this subsection. ii when reimbursement on', 20086:'a lumpsum basis is used, any adjustments to reflect actual costs are unallowable. c the following types of costs are', 20087:'unallowable: 1 loss on the sale of a home. 2 costs incident to acquiring a home in the new location', 20088:'as follows: i real estate brokers’ fees and commissions. ii costs of litigation. iii real and personal property insurance against', 20089:'damage or loss of property. iv mortgage life insurance. v owner’s title policy insurance when such insurance was not previously', 20090:'carriedby the employeeon the old residence. however, the cost of a mortgage title policy is allowable. vi property taxes and', 20091:'operating or maintenance costs. 3 continuing mortgage principal payments on a residence being sold. 4 costs incident to furnishing equity', 20092:'or nonequity loans to employees or making arrangements with lenders for employees to obtain lowerthanmarket rate mortgage loans. d if', 20093:'relocation costs for an employee have been allowed either as an allocable indirect or direct cost, and the employee resigns', 20094:'within 12months for reasons within the employee’s control, the contractorshallrefund or credit the relocation costs to the government. e subject', 20095:'to the requirements of paragraphs a through d of this section, the costs of family movements and of personnel movements', 20096:'ofa special or mass natureare allowable. the cost, however, should be assigned on the basis ofwork contracts or time period', 20097:'benefited. f relocation costs both outgoing and return of employees who are hired for performance on specific contracts or longterm', 20098:'field projects are allowable if 1 the term of employment is 12 months or more; 2 the employment agreement specifically', 20099:'limits the duration of employment to the time spent on the contract or field project for which the employee is', 20100:'hired; 3 the employment agreement provides for return relocation to the employee’s permanent and principal home immediately prior to the', 20101:'outgoing relocation, or other location of equal or lesser cost; and 4 the relocation costs are determined under the rulesof', 20102:'paragraphs a through d ofthissection. however,the costs to return employees, who are released from employment upon completion of field assignments', 20103:'pursuant to their employment agreements, are not subject to the refund or credit requirement of paragraph d. subpart 31.2 contracts', 20104:'with commercial organizations 31.20538 31.20536 rental costs. a this subsection is applicable to the cost of renting or leasing real', 20105:'or personal property acquired under operating leases as defined in financial accounting standards board’s accounting standards codification fasb asc 840,', 20106:'leases. see 31.20511 for capital leases. b the following costs are allowable: 1 rental costs under operating leases, to the', 20107:'extent that the rates are reasonable at the time of the lease decision, after consideration of irentalcosts of comparable property,', 20108:'if any; ii market conditions in the area; iii the type, lifeexpectancy, condition, andvalueof the property leased; iv alternatives available;', 20109:'and v other provisions of the agreement. 2 rental costs under a sale and leaseback arrangement only up to the', 20110:'amount the contractor would be allowed if the contractor retained title, computed based on the net book value of the', 20111:'asset on the date the contractor becomes a lessee of the property adjusted for any gain or loss recognized in', 20112:'accordance with 31.20516b. 3 charges in the nature of rent for property between any divisions, subsidiaries, or organizations under common', 20113:'control, to the extent that they do not exceed the normal costs of ownership, such as depreciation, taxes, insurance, facilities', 20114:'capitalcostofmoney,andmaintenanceexcludinginterestorotherunallowablecostspursuantto part 31, provided that no part of such costs shall duplicate any other allowed cost. rental cost of personal', 20115:'property leased from any division, subsidiary, or affiliate of the contractor under common control, that hasan established practice of leasingthe', 20116:'same or similar property to unaffiliatedlesseesshallbe allowed in accordance with paragraphb1 of this subsection. c the allowability of rental costs', 20117:'under unexpired leases in connection with terminations is treated in 31.20542e. 31.20537 royalties and other costs for use of patents.', 20118:'a royalties on a patent or amortization of the cost of purchasing a patent or patent rights necessary for the', 20119:'proper performance of the contract and applicable to contract products or processes are allowable unless 1 the government has a', 20120:'license or the right to a free use of the patent; 2 the patent has been adjudicated to be invalid,', 20121:'or has been administratively determined to be invalid; 3 the patent is considered to be unenforceable; or 4 the patent', 20122:'is expired. b care should be exercised in determining reasonableness when the royalties may have been arrived at as a', 20123:'result of lessthan arm’slength bargaining; e.g.,royalties 1 paid topersons, including corporations, affiliatedwith the contractor; 2 paid tounaffiliated parties, including corporations,', 20124:'under an agreemententered intoin contemplation that a government contract would be awarded; or 3 paid under an agreement entered into', 20125:'after the contract award. c inany case involving apatent formerly owned by the contractor, the royalty amount allowed should notexceed', 20126:'the cost which would have been allowed had the contractor retained title. d see 31.109 regarding advance agreements. 31.20538 selling', 20127:'costs. a selling is a generic term encompassing all efforts to market the contractor’s products or services, someof which are', 20128:'covered specifically in other subsections of 31.205. the costs of any selling efforts other thanthose addressed in this cost principle', 20129:'are unallowable. b selling activity includes the following broad categories: 1 advertising. advertising is defined at 31.2051b, and advertising costs', 20130:'are subject to the allowability provisions of 31.2051d and f. 2 corporate image enhancement. corporate image enhancement activities, including broadlytargeted', 20131:'sales efforts, other than advertising, are included within the definition of public relations at 31.2051a, and the costs ofsuch efforts', 20132:'are subject to the allowability provisions at 31.2051e and f. 3 bid and proposal costs. bid and proposal costs are', 20133:'defined at 31.20518 and are subject to the allowability provisions of that subsection. 31.20539 federal acquisition regulation 4 market planning.', 20134:'market planning involves market research and analysis and general management planning concerned with development of the contractor’s business. longrangemarketplanning costs', 20135:'aresubject to the allowability provisions of 31.20512. other market planning costs are allowable. 5 direct selling. direct sellingefforts arethose acts', 20136:'oractions to induceparticular customersto purchase particular products or services of the contractor. direct selling is characterized by persontoperson contact and', 20137:'includes suchefforts as familiarizing apotentialcustomerwith the contractor’s productsor services,conditions ofsale,service capabilities,etc. it also includes negotiation, liaison between customer and contractor', 20138:'personnel, technical and consulting efforts, individual demonstrations,andany otherefforts having as their purpose the application or adaptation of the contractor’s products', 20139:'or services for a particular customer’s use. the cost of direct selling efforts is allowable. c notwithstanding any other provision', 20140:'of this subsection, sellers’ or agents’ compensation, fees, commissions, percentages, retainer or brokerage fees, whether or not contingent upon the', 20141:'award of contracts, are allowable only when paid to bona fide employees or established commercial or selling agencies maintained by', 20142:'the contractor for the purpose of securing business. 31.20539 service and warranty costs. service and warranty costs include those arising', 20143:'from fulfillment of any contractual obligation of a contractor to provide services such as installation, training, correcting defects in the', 20144:'products, replacing defective parts, and making refunds in the case of inadequate performance. when not inconsistent with the terms of', 20145:'the contract, service and warranty costs are allowable. however, care should beexercised to avoid duplication of the allowance asan element', 20146:'of both estimated product cost and risk. 31.20540 special tooling and special test equipment costs. a the terms “ special', 20147:'tooling” and “ special test equipment” are defined in 2.101. b the cost of special tooling and special test equipment', 20148:'used in performing one or more government contracts is allowable and shall be allocated to the specific government contract or', 20149:'contracts for which acquired, except that the cost of 1 items acquired by the contractor before the effectivedate of the', 20150:'contractorreplacement of such items, whether or not altered or adapted for use in performing the contract, and 2 items which', 20151:'the contract schedule specifically excludes, shall be allowable only as depreciation or amortization. c when items are disqualified as special', 20152:'tooling or special test equipment because with relatively minor expense they can be made suitable for general purpose use and', 20153:'have a value as such commensurate with their value as special tooling or special test equipment, the cost of adapting', 20154:'the items for use under the contract and the cost of returning them to their prior configuration are allowable. 31.20541', 20155:'taxes. a the following types of costs are allowable: 1 federal, state, and local taxes see part 29, except as', 20156:'otherwise provided in paragraph b of this section that are required to be and are paid or accrued in accordance', 20157:'with generally accepted accounting principles. fines and penalties are not considered taxes. 2 taxes otherwise allowable under paragraph a1 of', 20158:'this section, but upon which a claimof illegality orerroneous assessment exists; provided the contractor,before payingsuch taxes ipromptly requests instructions from', 20159:'thecontracting officer concerning such taxes; and iitakes all actiondirected bythe contracting officer arising out of paragraph 2i of this sectionor', 20160:'an independent decision of the government as to the existence of a claim of illegality or erroneous assessment, to a', 20161:'determine the legality of the assessment or b secure a refund of such taxes. 3 pursuant to paragraph a2 of', 20162:'this section, the reasonable costs of any action taken by the contractor at the direction or with the concurrence of', 20163:'the contracting officer. interest or penaltiesincurred by thecontractor for nonpayment of any tax at the direction of the contracting officer', 20164:'or byreason of the failure of the contracting officerto ensure timely direction after a prompt request. 4 the environmental tax', 20165:'found atsection 59 a ofthe internal revenue code, also calledthe superfund tax. b the following types of costs are not', 20166:'allowable: 1 federal income and excess profits taxes. subpart 31.2 contracts with commercial organizations 31.20542 2 taxes inconnectionwith financing,refinancing, refunding', 20167:'operations, or reorganizations see 31.20520 and 31.20527. 3 taxes from which exemptions are available to the contractordirectly, or available to', 20168:'the contractor based on an exemption afforded the government, except when the contracting officer determines that the administrative burdenincident to', 20169:'obtaining the exemption outweighs the corresponding benefits accruing to the government. when partial exemption from atax is attributable to government', 20170:'contract activity,taxes charged to such work in excess of that amount resulting from application of the preferential treatment are unallowable.', 20171:'these provisions intend that tax preference attributable to government contract activity be realized by the government. the term exemption means', 20172:'freedom from taxation in whole or in part and includes a tax abatement or reduction resulting from mode of assessment,', 20173:'method of calculation, or otherwise. 4 special assessments on land that represent capital improvements. 5 taxes including excises on realor', 20174:'personal property, oron the value, use, possession or sale thereof, which is used solely in connection with work other than', 20175:'on government contracts see paragraph c of this section. 6 any excise tax in subtitled, chapter 43 of the internal', 20176:'revenue code of1986, as amended. that chapter includes excise taxes imposed in connection with qualified pension plans, welfare plans, deferred', 20177:'compensation plans, or other similar types of plans. 7 incometax accrualsdesigned to accountforthe taxeffects of differences between taxable income and', 20178:'pretax income as reflected by the books of account and financial statements. 8 any tax imposed under 26 u.s.c. 5000', 20179:'c. c taxes on property see paragraph b5 of this section used solely inconnectionwith either nongovernmentor government work should be', 20180:'considered directly applicable to the respective category of work unless the amounts involved are insignificant or comparable results would otherwise', 20181:'be obtained; e.g., taxes on contractorowned workinprocess which is used solely in connection with nongovernment work should be allocated to', 20182:'such work; taxes on contractorowned workinprocess inventory and governmentowned workinprocess inventory when taxed used solely in connection with government work', 20183:'should be chargedto suchwork. the cost of taxes incurred on property used in both government and nongovernment work shall be', 20184:'apportioned to all such work based upon the use of such property on the respective final cost objectives. d any', 20185:'taxes, interest, or penalties that were allowed as contract costs and are refunded to the contractor shall be credited or', 20186:'paid to the government in the manner it directs. if a contractor or subcontractor obtains a foreign tax credit that', 20187:'reduces its u.s. federal income tax because of the payment of any tax or duty allowed as contract costs, and', 20188:'if those costs were reimbursedby a foreign government, the amount ofthe reduction shall be paid to the treasurer of theunited', 20189:'statesat the time the federal incometax return is filed. however, any interestactually paid or credited toa contractorincidentto a refund of', 20190:'tax, interest, or penalty shall be paid or credited to the government only to the extent that such interest accrued', 20191:'over the period during which the contractor had been reimbursed by the government for the taxes, interest, or penalties. 31.20542', 20192:'termination costs. contract terminations generally give rise to the incurrence of costs or the need for special treatment of costs', 20193:'that would not have arisen had the contract not been terminated. the following cost principles peculiar to termination situations are', 20194:'to be used in conjunction with the other cost principles in subpart 31.2: a common items. thecosts of items reasonably', 20195:'usable on the contractor’s other work shall not beallowable unless the contractor submits evidence that the items could not be', 20196:'retained at cost without sustaining a loss. the contracting officer should consider the contractor’splans and orders for current and planned', 20197:'production when determining if items can reasonablybe usedon otherwork of the contractor. contemporaneous purchases of common items bythe contractor shall', 20198:'be regarded as evidence thatsuch items arereasonably usableon the contractor’s other work. any acceptance of common items as allocable to', 20199:'the terminated portion of the contract should be limited to the extent that the quantities of such items on hand,', 20200:'in transit, and on order are in excess of the reasonable quantitative requirements of other work. b costs continuing after', 20201:'termination. despite all reasonable effortsby the contractor, costs which cannot be discontinued immediately after theeffective date oftermination aregenerally allowable. however,', 20202:'any costs continuing after the effective date of the termination due to the negligent or willful failure of the contractor', 20203:'to discontinue the costs shall be unallowable. c initial costs. initial costs, including starting load and preparatory costs, are allowable', 20204:'as follows: 1 startingload costs not fully absorbed because of termination are nonrecurring labor, material, and related overhead costs incurred', 20205:'in the early part of production and result from factors such as i excessive spoilage due to inexperienced labor; ii', 20206:'idle time and subnormal production due to testing and changing production methods; 31.20543 federal acquisition regulation iii training; and iv', 20207:'lack of familiarity or experience with the product, materials, or manufacturing processes. 2 preparatory costs incurred in preparing to perform', 20208:'the terminated contract include such costs as those incurred for initial plant rearrangement and alterations, management and personnel organization, and', 20209:'production planning. they do not include special machinery and equipment and starting load costs. 3 when initialcosts are included in', 20210:'the settlement proposal asa directcharge,such costs shall notalsobe included in overhead. initial costs attributable to only one contract shall not', 20211:'be allocated to other contracts. 4 if initial costsare claimed and have notbeensegregated on the contractor’s books,they shall be segregated', 20212:'for settlement purposes from cost reports and schedules reflecting that high unit cost incurred during the early stages of the', 20213:'contract. 5 if the settlement proposal is on the inventory basis, initial costs should normally be allocated on the basis', 20214:'of total end items called for by the contract immediately before termination; however, if the contract includes end itemsof adiverse', 20215:'nature, some other equitable basis may be used, such as machine or labor hours. d loss of useful value. loss', 20216:'of useful value of special tooling, and special machinery and equipment is generally allowable, provided 1 the special tooling, or', 20217:'special machinery and equipment is not reasonably capable of use in the other work of the contractor; 2 the government’s', 20218:'interest is protectedby transfer of title or byothermeans deemed appropriateby the contracting officer; and 3 the loss of useful value', 20219:'for any one terminated contract is limited to that portion of the acquisition cost which bears the same ratio to', 20220:'the total acquisition cost as the terminated portion of the contract bears to the entire terminated contract and other government', 20221:'contracts for which the special tooling, or special machinery and equipment was acquired. e rental under unexpired leases. rental costs', 20222:'under unexpired leases, less the residual value of such leases, are generally allowable when shown to have been reasonably necessary', 20223:'for the performance of the terminated contract, if 1 the amount of rental claimed does not exceed the reasonable use', 20224:'value of the property leased for the period of the contract and such further period as may be reasonable; and', 20225:'2 the contractormakes all reasonable efforts to terminate, assign, settle, or otherwisereduce the cost of such lease. f alterations of', 20226:'leased property. the cost of alterations and reasonable restorations required by the lease may be allowed when the alterations were', 20227:'necessary for performing the contract. g settlement expenses. 1 settlement expenses, including the following, are generally allowable: i accounting, legal,', 20228:'clerical, and similar costs reasonably necessary for athe preparation and presentation, including supporting data, of settlement claims to the contracting', 20229:'officer; and b the termination and settlement of subcontracts. ii reasonable costs for the storage, transportation, protection, and disposition of', 20230:'property acquired or produced for the contract. iii indirect costs related to salary and wages incurred as settlement expensesin iand', 20231:'ii; normally, such indirect costs shall be limited to payroll taxes, fringe benefits, occupancy costs, and immediate supervision costs. 2', 20232:'if settlement expenses are significant, a cost account or work order shall be established to separately identify and accumulate them.', 20233:'h subcontractor claims. subcontractor claims, including the allocable portion of the claims common to the contract and to otherwork of', 20234:'the contractor, aregenerally allowable. an appropriate share ofthe contractor’s indirect expense may be allocated to the amount of settlements with', 20235:'subcontractors; provided, that the amount allocated is reasonably proportionate to the relative benefits received and is otherwise consistent with 31.2014', 20236:'and 31.203d. the indirect expense so allocated shall exclude the same and similar costs claimed directly or indirectly as settlement', 20237:'expenses. 31.20543 trade, business, technical and professionalactivity costs. the following types of costs are allowable: a membershipsin trade, business, technical,', 20238:'and professional organizations. b subscriptions to trade, business, professional, or other technical periodicals. c when the principal purpose of a', 20239:'meeting, convention, conference, symposium, or seminar is the dissemination of trade, business, technical or professional information or the stimulation of', 20240:'production or improved productivity subpart 31.2 contracts with commercial organizations 31.20546 1 costs of organizing,setting up, and sponsoring the meetings,conventions,symposia,', 20241:'etc., includingrental of meeting facilities, transportation, subsistence, and incidental costs; 2 costs of attendance by contractor employees, including travel costs', 20242:'see 31.20546; and 3 costs of attendance by individuals who arenot employees of the contractor, provided isuch costs are not', 20243:'also reimbursed to the individual by the employing companyor organization, and ii the individuals attendance is essential to achieve the', 20244:'purpose of the conference, meeting, convention, symposium, etc. 31.20544 training andeducation costs. costs of training and education that are related', 20245:'to the field in which the employee is working or may reasonably be expected to work are allowable, except as', 20246:'follows: a overtime compensation for training and education is unallowable. b the cost ofsalaries for attending undergraduate levelclasses or parttimegraduate', 20247:'level classes during working hours is unallowable, except when unusual circumstances do not permit attendance at such classes outside of', 20248:'regular working hours. c costs oftuition,fees, training materials and textbooks, subsistence, salary, and any other payments in connection with fulltime', 20249:'graduate level education are unallowable for any portion of the program that exceeds two school years or the length of', 20250:'the degree program, whichever is less. d grants to educational or training institutions, including the donation of facilities or other', 20251:'properties, scholarships, and fellowships are considered contributions and are unallowable. e training or educationcosts for other than bona fide employees', 20252:'are unallowable, except that the costs incurred for educating employee dependents primary and secondary level studies when the employee is', 20253:'working in a foreign country where suitable public education is not available may beincluded in overseas differential pay. f contractor', 20254:'contributions to college savings plans for employee dependents are unallowable. 31.20545 [reserved] 31.20546 travelcosts. a costs for transportation, lodging, meals,', 20255:'and incidental expenses.1costs incurred by contractor personnel on official company business are allowable, subject to the limitations contained in this', 20256:'subsection. costs for transportation may be based on mileage rates, actualcosts incurred, or on a combination thereof,providedthe methodused results in', 20257:'areasonable charge. costs for lodging, meals, and incidental expenses may be based on per diem, actual expenses, or a combination', 20258:'thereof, provided themethod usedresults in a reasonable charge. 2 except as provided in paragraph a3 of this subsection, costs incurred', 20259:'for lodging, meals, and incidental expenses as defined in the regulations cited in a2i through iii of this section shall', 20260:'be considered to be reasonable and allowable only tothe extent that they do not exceed on a daily basis the', 20261:'maximum per diem rates ineffect at thetime oftravel as set forth in the ifederal travel regulations, prescribed by thegeneral services', 20262:'administration, for travel in the contiguous united states, available on a subscription basis from the superintendent of documents u.s. government', 20263:'publishing office washington dc 20402 stock no.922002000002; iijoint travel regulation, volume2, dod civilian personnel, appendixa, prescribed by the department of', 20264:'defense, for travel in alaska, hawaii, and outlying areas of the united states, available on a subscription basis from the', 20265:'superintendent of documents u.s. government publishing office washington dc 20402 stock no.908010000001; or iii standardized regulationsgovernment civilians,foreignareas, section925, maximum travel', 20266:'per diem allowances for foreign areas, prescribed by the department of state, for travel in areas not covered in a2i', 20267:'and ii of this paragraph, available on a subscription basis from the superintendent of documents 31.20546 federal acquisition regulation u.s.', 20268:'government publishing office washington,dc 20402 stock no.744008000000. 3 in special or unusual situations, actual costs in excess of the abovereferenced', 20269:'maximum per diem rates are allowable provided that such amounts do not exceed the higher amounts authorized for federal civilian', 20270:'employees as permitted in the regulations referenced in a2i, ii, or iii of this section. for such higher amounts to', 20271:'be allowable, all of the following conditions must be met: i one of the conditions warranting approval of the actual', 20272:'expense method, as set forth in the regulations referenced in paragraphs a2i, ii, or iii of this section, must exist.', 20273:'iiawritten justificationforuse ofthe higher amounts must be approvedby an officer ofthe contractor’s organizationor designee to ensurethat the authority is properly', 20274:'administered and controlledto prevent abuse. iii if it becomes necessary to exercise the authority to use the higher actual expense', 20275:'method repetitively or on a continuing basis in a particular area,the contractor must obtain advanceapproval from the contracting officer. iv', 20276:'documentation to supportactual costs incurredshallbe inaccordance withthe contractor’s established practices, subject to paragraph a7 of this section, and provided that', 20277:'a receipt is required for each expenditure of $75.00 or more. the approved justification required by paragraph a3ii of this', 20278:'section and, if applicable, paragraph a3iii of this section must be retained. 4 paragraphs a2 and 3 of this section', 20279:'do not incorporate the regulations cited in paragraphs a2i, ii, and iii of this section intheir entirety. only the maximum', 20280:'per diem rates, the definitions oflodging, meals,andincidentalexpenses, and the regulatory coverage dealing with special or unusual situations are incorporated herein.', 20281:'5 an advance agreement see 31.109 with respect to compliance with paragraphs a2 and 3 of this subsection may be', 20282:'useful and desirable. 6 the maximum per diem rates referenced in paragraph a2 of this subsection generally would not constitute', 20283:'a reasonable daily charge i when no lodging costs are incurred; and/or ii on partial travel days e.g., day of', 20284:'departure and return. appropriate downward adjustments from the maximum per diem rates would normally be required under these circumstances. while', 20285:'these adjustments need not be calculated in accordance with the federal travel regulation or joint travel regulations,they must result in', 20286:'areasonable charge. 7 costs shall be allowable only if the following information is documented idate andplace city, town, or other', 20287:'similar designation of the expenses; ii purpose of the trip; and iii name ofperson ontrip and that person’s title orrelationship', 20288:'to the contractor. b airfare costs in excess of the lowest priced airfare available to the contractor during normal business', 20289:'hours are unallowable except when such accommodations require circuitous routing, require travel during unreasonable hours, excessivelyprolongtravel, result in increased cost', 20290:'thatwould offsettransportation savings, are not reasonablyadequate for thephysical or medical needs of the traveler, or arenot reasonably available to meet', 20291:'mission requirements. however, in order for airfare costs in excess of the above airfare to be allowable, the applicable conditions', 20292:'set forth above must be documented and justified. c 1 cost of travel by contractorowned, leased, or chartered aircraft, as', 20293:'used in this paragraph, includes the cost of lease, charter, operationincluding personnel, maintenance, depreciation, insurance, and other related costs. 2', 20294:'the costs of travel by contractorowned, leased, or chartered aircraft are limited to the allowable airfare described in paragraph b', 20295:'of this section for the flight destination unless travel by such aircraft is specifically required by contract specification, term, or', 20296:'condition,or ahigher amount is approved by the contracting officer. a higher amount may be agreed to when one or more', 20297:'of the circumstances for justifying higher than allowable airfare listed in paragraph b of this section are applicable, or when', 20298:'an advance agreement under paragraph c3 of this section has been executed. in all cases, travel by contractorowned, leased, or', 20299:'chartered aircraft must be fully documented and justified. for each contractorowned, leased, or charteredaircraftused for any business purpose which is', 20300:'charged orallocated, directly or indirectly, toa government contract, the contractor must maintain and make available manifest/logs for all flights on', 20301:'such company aircraft. as a minimum, the manifest/log shall indicate i date, time, and points of departure; ii destination, date,', 20302:'and time of arrival; iii name of each passenger and relationship to the contractor; subpart 31.2 contracts with commercial organizations', 20303:'31.20547 iv authorization for trip; and v purpose of trip. 3 where an advance agreement is proposed see 31.109, consideration', 20304:'may be given to the following: iwhether scheduled commercial airlines or other suitable, less costly,travel facilities are available at reasonable', 20305:'times, with reasonablefrequency, and serve the required destinations conveniently. iiwhether increased flexibility in scheduling results in time savings and more', 20306:'effective useof personnel that would outweigh additional travel costs. d costs of contractorowned or leased automobiles, as used in this', 20307:'paragraph, include the costs of lease, operation including personnel, maintenance, depreciation, insurance, etc. these costs are allowable, if reasonable, to', 20308:'the extent that the automobiles are used for company business. that portion of the cost of companyfurnished automobiles that relates', 20309:'to personal use by employees including transportation to and from work is compensation for personal services and is unallowable as', 20310:'stated in 31.2056m2. 31.20547 costs related tolegal and other proceedings. a definitions. as used in this subsection costs include, but', 20311:'are not limited to, administrative and clerical expenses; the costs of legal services, whether performed by inhouse or private counsel;', 20312:'the costs of the services of accountants, consultants, or others retained by the contractor or subcontractor to assist it; costs', 20313:'ofemployees, officers,and directors; and any similar costs incurredbefore, during, and after commencement of a judicial or administrative proceeding which bears', 20314:'a direct relationship to the proceeding. fraud means 1 acts of fraud or corruption or attempts to defraud the government', 20315:'or to corrupt its agents; 2 acts which constitute a cause for debarment or suspension under 9.4062a and 9.4072a; and', 20316:'3 acts which violate the false claims act, 31 u.s.c., sections37293731, or 41 u.s.c. chapter 87, kickbacks. penalty does not', 20317:'include restitution, reimbursement, or compensatory damages. proceeding includes an investigation. b costs incurred in connection with any proceeding brought by:', 20318:'a federal, state, local, or foreign government for a violation of, or failure to comply with, law or regulation by', 20319:'the contractor or subcontractor including its agents or employees 41 u.s.c. 4310 and 10 u.s.c. 3750; a contractor or subcontractor', 20320:'employee submitting a whistleblower complaint of reprisal in accordance with 41 u.s.c. 4712 or 10 u.s.c. 4701; or a third', 20321:'party in the name of the united states under the false claims act, 31 u.s.c.3730, are unallowable if the result', 20322:'is 1 in a criminal proceeding, a conviction; 2 in a civil or administrative proceeding, either a finding of contractor', 20323:'or subcontractor liability where the proceeding involves anallegation of fraud orsimilar misconduct; or imposition of a monetary penalty, or an', 20324:'order issued by the agency head to the contractor or subcontractor to take corrective action under 41 u.s.c. 4712 or', 20325:'10 u.s.c. 4701, where the proceeding does not involve an allegation of fraud or similar misconduct; 3 a final decision', 20326:'by an appropriate official of an executive agency to i debar or suspend the contractor or subcontractor; ii rescind or', 20327:'void a contract; or iii terminate a contract for default by reasonof aviolation orfailureto comply witha law orregulation. 4 disposition', 20328:'of the matter by consent or compromise if the proceeding could have led to any of the outcomes listed in', 20329:'paragraphs b1 through 3 of this subsection but see paragraphs c and d of this subsection; or 5 not covered', 20330:'by paragraphs b1 through 4 of this subsection, but where the underlying alleged contractor misconduct was thesame asthat whichled toa', 20331:'different proceeding whose costs are unallowable by reason of paragraphs b 1 through 4 of this subsection. c 1totheextenttheyarenototherwiseunallowable,costsincurredinconnectionwithanyproceedingunder paragraph', 20332:'b of this subsection commenced by the united states that is resolved by consent or compromise pursuant to an agreement', 20333:'entered into between the contractor or subcontractor and the united states, and which are unallowable solely because of paragraph b', 20334:'of this subsection, may be allowed to the extent specifically provided in such agreement 2 i in the event of', 20335:'a settlement of any proceeding brought by a third party under the false claims act in which the united states', 20336:'did not intervene, reasonable costs incurred by the contractor or subcontractor in connection with such a proceeding that are not', 20337:'otherwise unallowable by regulation or by separate agreement with the united states may be allowed if the contractingofficer, in consultationwith', 20338:'his orher legal advisor, determines that therewas very little likelihood that the third party would have been successful on the', 20339:'merits. 31.20547 federal acquisition regulation ii in the event of disposition by consent or compromise of a proceeding brought by', 20340:'a whistleblower for alleged reprisal in accordance with 41 u.s.c. 4712 or 10 u.s.c. 4701, reasonable costs incurred by a', 20341:'contractor or subcontractor in connection with such a proceeding that are not otherwise unallowable by regulation or by agreement with', 20342:'the united states may be allowed if the contracting officer, in consultation with his orher legal advisor, determined thatthere was', 20343:'very little likelihood that the claimant would have been successful on the merits. d to the extent that they arenot', 20344:'otherwise unallowable, costs incurred in connection with any proceeding under paragraph b of this subsection commenced by a state, local,', 20345:'or foreign government may be allowable when the contracting officer or other official specified inagency procedures determines, thatthe costs were', 20346:'incurred either: 1 as a direct result of a specific term or condition of a federal contract or subcontract; or', 20347:'2 asa result of compliance withspecific written direction ofthe cognizantcontracting officer. e costs incurred in connection with proceedings described in', 20348:'paragraph b of this subsection, but which are not made unallowable by that paragraph, may be allowable to the extent', 20349:'that: 1 the costs are reasonable in relation to the activities required to deal with the proceeding and the underlying', 20350:'cause of action; 2 the costs are not otherwise recovered fromthe federalgovernmentor athird party, either directly asa result of the', 20351:'proceeding or otherwise; and 3 the percentage of costs allowed does not exceed the percentage determined to be appropriate considering', 20352:'the complexity of procurement litigation, generally accepted principles governing the award of legal fees in civil actions involving the united', 20353:'states as aparty, and suchotherfactors as may beappropriate. such percentage shall not exceed 80 percent. agreements reachedunder paragraph c of', 20354:'this subsection shall be subject to this limitation. if, however, an agreement described in paragraph c1 of this subsection explicitly', 20355:'states the amount of otherwise allowable incurred legal fees and limits the allowable recovery to 80 percent or less of', 20356:'the stated legal fees, no additional limitation need be applied. the amount of reimbursement allowed for legal costs in connection', 20357:'with any proceeding described in paragraph c2 of this subsection shall be determined by the cognizant contracting officer, but shall', 20358:'notexceed 80percent ofotherwise allowable legal costs incurred. f costs not covered elsewhere in this subsection are unallowable if incurred in', 20359:'connection with the following: 1 defense against federal government claims or appeals or the prosecution of claims or appeals against', 20360:'the federal government see 2.101. 2 organization, reorganization, including mergers and acquisitions or resisting mergers and acquisitions see also 31.20527.', 20361:'3 defense of antitrust suits. 4 defense of suits brought by employees or exemployees of the contractor or subcontractor under', 20362:'section 2 of the major fraud act of 1988 where the contractor or subcontractor was found liable or settled. 5', 20363:'costs of legal, accounting, and consultant services and directly associated costs incurred in connection with the defense or prosecution of', 20364:'lawsuits or appeals between contractors or subcontractors arising from either— i an agreement or contract concerning a teaming arrangement, a', 20365:'joint venture, or similar arrangement of shared interest; or ii dual sourcing, coproduction, or similar programs, are unallowable, except when—', 20366:'a incurred as a result of compliance with specific terms and conditions of the contract or subcontract or written instructions', 20367:'from the contracting officer; or b whenagreed to in writing by the contracting officer. 6 patent infringement litigation, unless otherwise', 20368:'provided for in the contract or subcontract. 7 representation of, or assistance to, individuals, groups, or legal entities which the', 20369:'contractor or subcontractor is not legally bound to provide, arising from an action where the participant was convicted of violation', 20370:'of a law or regulation or was found liable in a civil or administrative proceeding. 8 protests of federal government', 20371:'solicitations or contract awards, or the defense against protests of such solicitations or contract awards, unless the costs of defending', 20372:'against a protest are incurred pursuant to a written request from the cognizantcontracting officer. 9 a congressional investigation or inquiry', 20373:'into an issue that is the subject matter of a proceeding resulting in a disposition as described in paragraphs b1', 20374:'through 5 of this section see 10 u.s.c. 3744a17. g costs which may be unallowable under 31.20547, including directly associated', 20375:'costs, shall be segregated and accounted for bythe contractor orsubcontractorseparately. during thependency of any proceedingcovered by paragraph b and paragraphs', 20376:'f4and f7 of this subsection, the contracting officer shall generally withhold payment ofsuch subpart 31.2 contracts with commercial organizations 31.20552', 20377:'costs. however, ifin thebestinterests of the government, the contracting officer may provide for conditional paymentupon provisionof adequate security, orother adequate', 20378:'assurance, and agreement by the contractor or subcontractor torepay all unallowable costs, plus interest, if the costs are subsequently determined', 20379:'to be unallowable. 31.20548 research and development costs. research and development, as used in this subsection, means the type of', 20380:'technical effort described in 31.20518 but sponsored by a grant or required in the performance of a contract. when costs', 20381:'are incurred in excess of either the price of a contract or amount of a grant for research and development', 20382:'effort, the excess is unallowable under any other government contract. 31.20549 goodwill. goodwill, an unidentifiable intangible asset, originates under the', 20383:'purchase method of accounting for a business combination when the price paid by the acquiring company exceeds the sum of', 20384:'the identifiable individual assets acquired less liabilities assumed, based upon their fair values. the excess is commonly referred to as', 20385:'goodwill. goodwill may arise from theacquisition of a company as a whole or a portion thereof. any costsforamortization, expensing, writeoff,', 20386:'or writedown of goodwill however represented are unallowable. 31.20550 [reserved] 31.20551 costs of alcoholic beverages. costs of alcoholic beverages are', 20387:'unallowable. 31.20552 asset valuations resulting from business combinations. a for tangible capital assets, when the purchase method of accounting for', 20388:'a business combination is used, whether or not the contract or subcontract is subject to cas, the allowable depreciation and', 20389:'cost of money shall be based on the capitalized asset values measured and assigned in accordance with 48 cfr9904.40450d, if', 20390:'allocable, reasonable, and not otherwise unallowable. b for intangible capital assets, when the purchase method of accounting for a business', 20391:'combination is used, allowable amortization and cost of money shall be limited to the total of the amounts that would', 20392:'have been allowed had the combination not taken place. this page intentionally left blank. 31.236 subpart 31.3 contracts with educational', 20393:'institutions 31.303 subpart 31.3 contracts with educational institutions 31.301purpose. this subpart provides the principles for determining the cost of research', 20394:'and development, training, and other work performed by educational institutions under contracts with the government. 31.302general. the omb uniform guidance', 20395:'at 2 cfr part 200, subpart e and appendix iii, provides principles for determining the costs applicable to research and', 20396:'development, training, and other work performed by educational institutions defined as institutions of higher education in the omb uniform guidance', 20397:'at 2 cfr part 200, subpart a, and 20 u.s.c. 1001 under contracts with the government. 31.303 requirements. a contracts', 20398:'that refer to this subpart 31.3 for determining allowable costs under contracts with educational institutions defined as institutions of higher', 20399:'education in the omb uniform guidance at 2 cfr part 200, subpart a, and 20 u.s.c. 1001 shall be deemed', 20400:'to refer to, and shall have the allowability ofcosts determined by the contracting officer in accordance with, the omb uniform', 20401:'guidance at 2 cfr part 200, subpart e andappendixiii,in effect on the date of thecontract. b agencies are not expected', 20402:'to place additional restrictions on individual items of cost. this page intentionally left blank. 31.32 subpart 31.4 [reserved] subpart 31.4', 20403:'[reserved] this page intentionally left blank. 31.42 subpart 31.5 [reserved] subpart 31.5 [reserved] this page intentionally left blank. 31.52 subpart', 20404:'31.6 contracts with state, local, and federally recognized indian tribal governments 31.603 subpart 31.6 contracts with state, local, and federally', 20405:'recognized indian tribal governments 31.601purpose. this subpart provides the principles for determining allowable cost of contracts and subcontracts with state,', 20406:'local, and federally recognized indian tribal governments. 31.602general. the omb uniform guidance at 2 cfr part 200, subpart e and', 20407:'appendices v and vii sets forth the principles for determining the allowable costs of contracts and subcontracts with state, local,', 20408:'and federally recognized indian tribal governments. these principles are for cost determination and are not intended to identify the circumstances', 20409:'or dictate the extent of federal and state or local participation in financing a particular contract. 31.603 requirements. a contracts', 20410:'that refer to this subpart 31.6 for determining allowable costs under contracts with state, local and indian tribalgovernmentsshallbe deemedto refer', 20411:'to,andshallhavethe allowability of costs determined by the contracting officer in accordance with, the omb uniform guidance at 2 cfr part', 20412:'200, subpart e and appendices v and vii, in effecton the date of the contract. b agencies are not expected', 20413:'toplace additionalrestrictions on individual items of cost. however, under 10 u.s.c. 3744, 41 u.s.c.4304, 31 u.s.c. 3730, and 41 u.s.c.', 20414:'4310, the following costs are unallowable: 1 costs of entertainment, including amusement, diversion, and social activities, and any costs directly', 20415:'associated with such costs such as tickets to shows or sports events, meals, lodging, rentals, transportation, and gratuities. 2 costs', 20416:'incurred to influence directly or indirectly legislative action on any matter pending before congress, a state legislature, or a legislative', 20417:'body of a political subdivision of a state. 3 costs incurred in defense of any civil or criminal fraud proceeding', 20418:'or similar proceeding including filing of any false certification brought by the united states where the contractor is found liable', 20419:'or has pleaded nolo contendere to a charge offraud or similar proceeding including filing ofa false certification. 4 payments of', 20420:'fines and penalties resulting from violations of, or failure to comply with, federal, state, local, or foreign laws and regulations,', 20421:'except when incurred as a result of compliance with specific terms and conditions of the contract or specific written instructions', 20422:'from the contracting officer authorizing in advance such payments in accordancewith applicable regulationsin the far oran executive agency supplement tothe', 20423:'far. 5 costs of any membership in any social, dining, or country club ororganization. 6 costs of alcoholic beverages. 7', 20424:'contributions or donations, regardless of the recipient. 8 costs of advertising designed to promote the contractor or its products. 9', 20425:'costs of promotional items and memorabilia, including models, gifts, and souvenirs. 10 costs for travel by commercial aircraft which exceed', 20426:'the amount of the standard commercial fare. 11 costsincurred in making any paymentcommonly known as a golden parachute payment which', 20427:'is i in an amount in excess of the normal severance pay paid by the contractor to an employee upon', 20428:'termination of employment; and iiispaid to the employee contingentupon, and following, a change in management control over, or ownershipof, thecontractor', 20429:'or a substantial portion of the contractor’s assets. 12 costs of commercialinsurance that protects against the costs of the contractor', 20430:'for correction of the contractor’s own defects in materials or workmanship. 13 costs of severance pay paid by the contractor', 20431:'to foreign nationals employed by the contractor under a service contract performed outside the united states, to the extent that', 20432:'the amount of the severance pay paid in any case exceeds the amount paid in the industry involved under the', 20433:'customary or prevailing practice for firms in that industry providing similar services inthe unitedstates, as determined byregulations in the far', 20434:'or in an executive agencysupplement to the far. 14 costs of severance pay paid by the contractor to a foreign', 20435:'national employed by the contractor under a service contract performed in a foreign country if the termination of the employment', 20436:'of the foreign national is the result of the closing of, or curtailment of activities at, a united states facility', 20437:'in that country at the request of the government of that country. federal acquisition regulation 15 unless any of the', 20438:'exceptions at 31.20547c ordapply, costs incurred bya contractoror subcontractor in connection with any criminal, civil, or administrative proceedings that result', 20439:'in dispositions described at 31.20547b1 through 5 commenced by: a federal, state, local, or foreign government, for a violation of,', 20440:'or failure to comply with, law or regulation by the contractor or subcontractor including its agents or employees; a contractor', 20441:'or subcontractor employee submitting a whistleblower complaint of reprisal in accordance with 41 u.s.c. 4712 or 10 u.s.c. 4701; or', 20442:'a third party in the name of the united states under the false claims act, 31 u.s.c. 3730. for any', 20443:'such proceeding that does not result in a disposition described at 31.20547b1 through 5, or to which 31.20547c exceptions apply,', 20444:'the costof that proceeding shall be subject to the limitations in 31.20547e. 16 costs incurred in connection with a congressional', 20445:'investigation or inquiry into an issue that is the subject matter of a proceeding resulting in a disposition as described', 20446:'at 31.20547b1 through 5. subpart 31.7 contracts with nonprofit organizations 31.703 subpart 31.7 contracts with nonprofit organizations 31.701purpose. this subpart', 20447:'providesthe principles for determining the cost applicable to work performed by nonprofit organizations undercontracts with the government. a nonprofit organization,', 20448:'for purpose of identification, is defined as a business entity organized and operated exclusively for charitable, scientific, oreducational purposes, of', 20449:'which nopart of thenet earnings inure to the benefit of any private shareholder or individual, of which no substantial part', 20450:'of the activities is carrying on propaganda or otherwise attempting to influence legislation or participating in any political campaign on', 20451:'behalf of any candidate for public office, and which are exemptfrom federal incometaxationunder section501 of the internal revenue code. 31.702general.', 20452:'the omb uniform guidance at 2 cfr part 200, subpart eandappendix iv,sets forth principles for determining the costs applicable to', 20453:'work performedby nonprofitorganizations as defined in the omb uniform guidance at 2 cfr part 200 under contracts as well as', 20454:'grants and other agreements with the government. see 31.108 for exceptions to the cost principles for nonprofit organizations. 31.703 requirements.', 20455:'a contracts which refer to this subpart 31.7 for determining allowable costs shall be deemed to refer to, and shall', 20456:'have theallowability of costsdetermined by the contracting officer in accordancewith, the omb uniform guidance at2 cfr part 200, subpart e', 20457:'andappendixiv in effecton the date of the contract. b agencies are not expected toplace additionalrestrictions on individual items of cost.', 20458:'however, under 10 u.s.c. 3744 and 41 u.s.c.4304, the costs cited in 31.603b are unallowable. this page intentionally left blank.', 20459:'31.72 part 32 contract financing sec. 32.000 scope of part. 32.001 definitions. 32.002 applicability of subparts. 32.003 simplified acquisition procedures', 20460:'financing. 32.004 contract performance in foreign countries. 32.005 consideration for contract financing. 32.006 reduction or suspension of contract payments upon', 20461:'finding of fraud. 32.0061 general. 32.0062 definition. 32.0063 responsibilities. 32.0064 procedures. 32.0065 reporting. 32.007 contract financing payments. 32.008 notification of', 20462:'overpayment. 32.009 providing accelerated payments to small business contractors and to prime contractors that subcontract with a small business concern.', 20463:'32.0091 general. 32.0092 contract clause. subpart 32.1 financing for other than acommercial purchase 32.100 scope of subpart. 32.101 authority. 32.102', 20464:'description of contract financing methods. 32.103 progress payments under construction contracts. 32.104 providing contract financing. 32.105 uses of contract financing.', 20465:'32.106 order of preference. 32.107 need for contract financing not a deterrent. 32.108 financial consultation. 32.109 terminationfinancing. 32.110 payment of', 20466:'subcontractors under cost reimbursement prime contracts. 32.111 contract clauses for noncommercial purchases. 32.112 nonpayment of subcontractors under contracts other than', 20467:'for commercial products and commercial services. 32.1121 subcontractor assertions of nonpayment. 32.1122 subcontractor requests for information. 32.113 customary contract financing.', 20468:'32.114 unusual contract financing. subpart 32.2 commercialproduct and commercial service purchase financing 32.200 scope of subpart. 32.201 statutory authority. 32.202', 20469:'general. 32.2021 policy. 32.2022 types of payments for commercial product and commercial service purchases. 32.2023 conducting market research about financing', 20470:'terms. 32.2024 security for government financing. 32.203 determining contract financing terms. 32.204 procedures for contracting officerspecified commercial contract financing. 32.205', 20471:'procedures for offerorproposed commercial contract financing. 32.206 solicitation provisions and contract clauses. 32.207 administration and payment of commercial financing payments.', 20472:'subpart 32.3 loan guarantees for defense production 32.300 scope of subpart. 32.301 definitions. 32.302 authority. 32.303 general. 32.304 procedures. 32.3041', 20473:'application for guarantee. 32.3042 certificate of eligibility. 32.3043 asset formula. 32.3044 guarantee amount and maturity. 32.3045 assignment of claims under', 20474:'contracts. 32.3046 other collateral security. 32.3047 contract surety bonds and loan guarantees. 32.3048 other borrowing. 32.305 loan guarantees for terminated', 20475:'contracts. 32.306 loan guarantees for subcontracts. subpart 32.4 advance payments for other thancommercial acquisitions 32.400 scope of subpart. 32.401 statutory', 20476:'authority. 32.402 general. 32.403 applicability. 32.404 exclusions. 32.405 applying pub.l.85804 to advance payments under sealed bid contracts. 32.406 letters of', 20477:'credit. 32.407 interest. 32.408 application for advance payments. 32.409 contracting officer action. 32.4091 recommendation for approval. 32.4092 recommendation for disapproval.', 20478:'32.4093 security,supervision,andcovenants. 32.410 findings, determination, and authorization. 32.411 agreement for special account at a financial institution. 32.412 contract clause. subpart', 20479:'32.5 progress payments based on costs 32.500 scope of subpart. 32.501 general. 32.5011 customary progress payment rates. 32.5012 unusual progress', 20480:'payments. 32.5013 contract price. 32.5014 [reserved] 32.5015 other protective terms. 32.502 preaward matters. 32.5021 use of customary progress payments. 32.5022', 20481:'contractfinanceofficeclearance. 32.5023 solicitation provisions. 32.5024 contract clauses. 32.503 postaward matters. 32.5031 [reserved] 32.5032 supervision of progress payments. 32.5033 initiation of', 20482:'progress payments and review of accounting system. 32.5034 approval of progress payment requests. 32.5035 administration of progress payments. 32.5036 suspension', 20483:'or reduction of payments. 32.5037 [reserved] 32.5038 liquidation ratesordinary method. 32.5039 liquidation ratesalternate method. 32.50310 establishing alternate liquidation rates. 32.50311', 20484:'adjustments for price reduction. 32.50312 maximum unliquidated amount. 32.50313 [reserved] 32.50314 protection of government title. 32.50315 application of government title', 20485:'terms. 32.50316 risk of loss. 32.504 subcontracts under prime contracts providing progress payments. subpart 32.6 contract debts 32.600 scope of', 20486:'subpart. 32.601 general. 32.602 responsibilities. 32.603 debt determination. 32.604 demand for payment. 32.605 final decisions. 32.606 debt collection. 32.607 installment', 20487:'payments and deferment of collection. 32.6071 installment payments. 32.6072 deferment of collection. 32.608 interest. 32.6081 interestcharges. 32.6082 interest credits. 32.609', 20488:'delays in receipt of notices or demands. 32.610 compromising debts. 32.611 contract clause. subpart 32.7 contract funding 32.700 scope of', 20489:'subpart. 32.701 [reserved] 32.702 policy. 32.703 contract funding requirements. 32.7031 general. 32.7032 contracts conditioned upon availability of funds. 32.7033 contracts', 20490:'crossing fiscal years. 32.704 limitation of cost or funds. 32.705 unenforceability of unauthorized obligations. 32.706 contract clauses. 32.7061 clauses for', 20491:'contracting in advance of funds. 32.7062 clauses for limitation of cost or funds. 32.7063 clause for unenforceability of unauthorized obligations.', 20492:'subpart 32.8 assignment of claims 32.800 scope of subpart. 32.801 definitions. 32.802 conditions. 32.803 policies. 32.804 extent of assignee’s protection.', 20493:'32.805 procedure. 32.806 contract clauses. subpart 32.9 prompt payment 32.900 scope of subpart. 32.901 applicability. 32.902 definitions. 32.903 responsibilities. 32.904', 20494:'determining payment due dates. 32.905 payment documentation and process. 32.906 making payments. 32.907 interest penalties. 32.908 contract clauses. 32.909 contractor', 20495:'inquiries. subpart 32.10 performancebased payments subpart32.11 electronicfundstransfer 32.1000 scope of subpart. 32.1001 policy. 32.1002 bases for performancebased payments. 32.1003 criteria', 20496:'for use. 32.1004 procedures. 32.1005 solicitation provision and contract clause. 32.1006 [reserved] 32.1007 administration and payment of performance based payments.', 20497:'32.1008 suspension or reduction of performance based payments. 32.1009 title. 32.1010 risk of loss. 32.1100 32.1101 32.1102 32.1103 32.1104 32.1105', 20498:'32.1106 32.1107 32.1108 32.1109 32.1110 scope of subpart. statutory requirements. definitions. applicability. protection of eft information. assignment of claims. eft', 20499:'mechanisms. payment information. payment by governmentwide commercial purchase card. eft information submitted by offerors. solicitation provision and contract clauses. this', 20500:'page intentionally left blank. 32.000scope of part. this part prescribes policies and procedures for contract financing and other payment matters.', 20501:'this part addresses a payment methods, including partial payments and progress payments based on percentage or stage of completion; b', 20502:'loan guarantees, advance payments, and progress payments based on costs; c administration of debts to the government arising out of', 20503:'contracts; d contract funding, including the use of contract clauses limiting costs or funds; e assignment of claims to aid', 20504:'in private financing; f selected payment clauses; g financing of purchases of commercial products and commercial services; h performancebased payments;', 20505:'and i electronic funds transfer payments. 32.001definitions. as used in this part— commercial interim payment means any payment that is', 20506:'not a commercial advance payment or a delivery payment. these payments are contract financing payments for prompt payment purposes i.e.,', 20507:'not subject to the interest penalty provisions of the prompt payment act in accordance with subpart 32.9. a commercial interim', 20508:'payment is given to the contractor after some work has been done, whereas a commercial advance payment is given to', 20509:'the contractor when no work has been done. contract action means an action resulting in a contract, as defined in', 20510:'subpart 2.1, including actions for additional supplies or services outside the existing contract scope, but not including actions that are', 20511:'within the scope and under the terms of the existing contract, such as contract modifications issued pursuant to the changes', 20512:'clause, or funding and other administrative changes. contract financing payment means an authorized government disbursement of monies to a contractor', 20513:'prior to acceptance of supplies or services by the government. 1 contract financing payments include i advance payments; ii performancebased', 20514:'payments; iii commercial advance and interim payments; iv progress payments based on cost under the clause at 52.23216, progress payments;', 20515:'v progress payments based on a percentage or stage of completion see 32.102e, except those made under the clause at', 20516:'52.2325, payments under fixedprice construction contracts, or the clause at 52.23210, payments under fixed price architectengineer contracts; and vi interim', 20517:'payments under a cost reimbursement contract, except for a cost reimbursement contract for services when alternate i of the clause', 20518:'at 52.23225, prompt payment, is used. 2 contract financing payments do not include i invoice payments; ii payments for partial', 20519:'deliveries; or iii lease and rental payments. customary contract financing means that financing deemed by an agency to be available', 20520:'for routine use by contracting officers. mostcustomary contract financing arrangementsshouldbe usableby contracting officerswithout specific reviews or approvals by higher management.', 20521:'delivery payment means a payment for accepted supplies or services, including payments for accepted partial deliveries. commercial financing payments are', 20522:'liquidated by deduction from these payments. delivery payments are invoice payments for prompt payment purposes. designated billing office means the', 20523:'office orpersongovernmental or nongovernmental designated in the contract where thecontractor first submits invoices and contract financing requests. the contract might', 20524:'designate different offices to receive invoices and contract financingrequests. the designated billing office might be 1 the government disbursing office;', 20525:'2 the contract administration office; 3 the office accepting the supplies delivered or services performed by the contractor; 4 the', 20526:'contract audit office; or 5 a nongovernmental agent. federal acquisition regulation designated payment office means the office designated inthe contract', 20527:'to makeinvoice payments orcontract financing payments. normally, this willbe thegovernmentdisbursingoffice. due date means the date on which payment should be', 20528:'made. invoice payment means a government disbursement of monies to a contractor under a contract or other authorization for supplies', 20529:'or services accepted by the government. invoice payments include payments for partial deliveries that have been accepted by the government;', 20530:'final cost or fee payments where amounts owed have been settled between the government and the contractor; for purposes of', 20531:'subpart 32.9only,allpaymentsmadeundertheclauseat 52.2325, payments under fixedprice construction contracts, and the clause at 52.23210, payments under fixedprice architectengineer contracts; and interim', 20532:'payments under a costreimbursement contract for services when alternate i of the clause at 52.23225, prompt payment, is used invoice', 20533:'payments do not include contract financing payments. liquidate means to decrease a payment for an accepted supply item or service', 20534:'under a contract for the purpose of recouping financing payments previouslypaid to the contractor. unusual contract financing means any financing', 20535:'not deemedcustomary contract financing bythe agency. unusual contract financing is financing that is legal and proper under applicable laws, but', 20536:'that the agency has not authorized contracting officers touse withoutspecific reviews or approvals by highermanagement. 32.002applicability of subparts. a the', 20537:'following sections and subparts of this part are applicable to all purchases subject to part 32: 1 sections 32.000 through', 20538:'32.009. 2 subpart 32.3, loan guarantees for defense production. 3 subpart 32.6, contract debts. 4 subpart 32.7, contract funding. 5', 20539:'subpart 32.8, assignment of claims. 6 subpart 32.9, prompt payment. 7 subpart 32.11, electronic funds transfer. b subpart 32.2, commercial', 20540:'product and commercial service purchase financing, is applicable only to purchases of commercial products and commercial services under authority of', 20541:'part 12. c the following subparts of this part are applicable to all purchases made under any authority other than', 20542:'part 12: 1 subpart 32.1, financing for other than a commercial purchase. 2 subpart 32.4, advance payments for other than', 20543:'commercial acquisitions. 3 subpart 32.5, progress payments based on costs. 4 subpart 32.10, performancebased payments. 32.003 simplified acquisition procedures financing.', 20544:'unless agency regulations otherwise permit, contract financing shall not be provided for purchases made under the authority of part 13.', 20545:'32.004 contract performance in foreigncountries. the enforceability of contract provisions for security of government financing in a foreign jurisdiction is', 20546:'dependent upon local law and procedure. prior to providing contract financing where foreign jurisdictions may become involved, the contracting officershallensure', 20547:'the government’s security isenforceable. this may require the provision of additional or different security thanthat normallyprovided for in thestandard contract', 20548:'clauses. 32.005consideration for contract financing. a requirement. when a contract financing clause is included at the inception of a contract,', 20549:'there shall be no separate consideration for the contract financing clause. the value of the contract financing to the contractor', 20550:'is expected to be reflected in either 1a bid or negotiated price that will be lower than such price would', 20551:'have been in the absence of the contract financing, or 2 contract terms and conditions, other than price, that are', 20552:'more beneficial to the government than they would have been in the absence of the contract financing. adequate new consideration', 20553:'is required for changes to, or the addition of, contract financing after award. 32.0064 b amount of new consideration. the', 20554:'contractor may provide new consideration by monetary or nonmonetary means, provided the value is adequate. the fair and reasonable consideration', 20555:'should approximate the amount by which the price would have been less had the contract financing terms been contained in', 20556:'the initial contract. in the absence of definite information on this point, thecontracting officer should apply the following criteria in', 20557:'evaluating whether the proposed new consideration is adequate: 1 the value to the contractor of the anticipated amount and duration', 20558:'of the contract financing at the imputed financial costs of the equivalent working capital. 2 the estimated profit rate to', 20559:'be earned through contract performance. c interest. except as provided in subpart 32.4, advance payments for other than commercial acquisitions,', 20560:'the contract shall not provideforany othertype of specificcharges, suchas interest, for contract financing. 32.006reduction or suspension of contract payments upon', 20561:'finding of fraud. 32.0061 general. a under 10 u.s.c. 3806j, the statutory authority implemented by this section is available to', 20562:'the department of defense and the national aeronautics and space administration; this statutory authority is not available to the united', 20563:'states coast guard. under 41 u.s.c. 4506, this statutory authority is available to all agencies subject to division c of', 20564:'subtitle i of title 41. b 10 u.s.c. 3806c and 41 u.s.c. 4506 provide for a reduction or suspension of', 20565:'further payments to a contractor when the agency head determines there is substantial evidence that the contractors request for advance,', 20566:'partial, or progress payments is based on fraud. this authority does not apply to commercial interim payments under subpart 32.2,', 20567:'or performancebased payments under subpart 32.10. c the agency head may not delegate his or her responsibilities under these statutes', 20568:'below level iv of the executive schedule. d authority to reduce or suspend payments under these statutes is in addition', 20569:'to other government rights, remedies, and procedures. e in accordance with these statutes, agency head determinations and decisions under this', 20570:'section may be made for an individualcontract orany group of contracts affected by the fraud. 32.0062 definition. remedy coordination official,', 20571:'as used in this section, means the person or entity in the agency who coordinates within that agency the administration', 20572:'of criminal, civil, administrative, and contractual remedies resulting from investigations of fraud or corruption related to procurement activities. see 10', 20573:'u.s.c. 3806a and 41 u.s.c. 4506a. 32.0063 responsibilities. a agencies shall establish appropriate procedures to implement the policies and procedures', 20574:'of this section. b government personnel shall report suspected fraud related to advance, partial, or progress payments in accordance with', 20575:'agency regulations. 32.0064procedures. a inany case in whichan agency’s remedy coordination official finds substantial evidence that a contractor’s request for', 20576:'advance, partial, or progress payments under a contract awarded by that agency is based on fraud, the remedy coordination official', 20577:'shall recommendthat theagency head reduce or suspend further payments to the contractor. theremedy coordination official shall submit to the agency', 20578:'head awritten report settingforth the remedy coordination official’s findings thatsupport each recommendation. b upon receivinga recommendationfrom the remedy coordination officialunder', 20579:'paragraph a of this subsection,the agency head shall determine whether substantial evidence exists that the request for payment under a', 20580:'contract is based on fraud. c if the agency head determines that substantial evidence exists, the agency head may reduce', 20581:'or suspend further payments tothe contractor under the affectedcontracts. suchreduction or suspensionshallbe reasonably commensurate with the anticipated loss to the', 20582:'government resulting from the fraud. d in determining whether to reduce or suspend further payments, as a minimum, the agency', 20583:'head shall consider 1 a recommendation from investigating officersthat disclosureof the allegationsof fraud to thecontractor may compromise an ongoing investigation;', 20584:'32.0065 federal acquisition regulation 2 the anticipated loss to the government as a result of the fraud; 3 the contractor’s', 20585:'overall financial condition andability tocontinue performanceif payments arereduced or suspended; 4 the contractor’s essentiality to thenational defense, orto the execution', 20586:'of the agency’s officialbusiness; and 5 assessment of all documentation concerning the alleged fraud, including documentation submitted by the contractor', 20587:'in its response to the notice required by paragraph e of this subsection. e before making a decision to reduce', 20588:'or suspend further payments, the agency head shall, in accordance with agency procedures 1 notify the contractor in writing of', 20589:'the action proposed by the remedy coordination officialand the reasons therefor such noticemust be sufficiently specific to permit the contractor', 20590:'to collect and presentevidence addressing theaforesaid reasons; and 2 provide the contractor an opportunity to submit information within a reasonable', 20591:'time, in response to the action proposed bythe remedycoordination official. f when more than one agencyhas contracts affected by thefraud,', 20592:'theagencies shall consider designating oneagency as the lead agency for making the determination and decision. g the agency shall retain', 20593:'in its files the written justification for each 1 decision of the agency head whether to reduce or suspend further', 20594:'payments; and 2 recommendation received by an agency head in connection with such decision. h not later than180 calendar daysafter', 20595:'the date of thereduction or suspension action, the remedy coordination official shall 1 review the agency head’s determination on which', 20596:'the reduction or suspension decision is based; and 2 transmita recommendationto theagency head as to whether the reduction or suspension', 20597:'should continue. 32.0065 reporting. a in accordance with 41 u.s.c. 4506h,the head of an agency, other than the department of', 20598:'defense, shall prepare a report for each fiscal year in which a recommendation has been received pursuant to 32.0064a. reports', 20599:'within the department of defense shall be prepared in accordance with 10 u.s.c. 3806h. b in accordance with 41 u.s.c.', 20600:'4506h and 10 u.s.c. 3806h, each report shall contain 1 each recommendationmadeby the remedy coordination official; 2 the actions taken', 20601:'on the recommendations, with reasons for such actions; and 3 an assessmentof the effects ofeach action on the government. 32.007contract', 20602:'financing payments. a 1 unless otherwise prescribed in agency policies and procedures or otherwise specified in paragraph b of this', 20603:'section,the due dateformaking contract financing payments by the designatedpayment officeis the 30th day afterthe designated billing officereceives a proper contract', 20604:'financing request. 2 if an audit or other review of a specific financing request is required to ensure compliance with', 20605:'the terms and conditions of thecontract, the designatedpayment officeis not compelledto make payment by the specified due date. 3 agency', 20606:'heads may prescribe shorter periods for payment based on contract pricing or administrative considerations. for example, a shorter period may', 20607:'be justified by an agency if the nature and extent of contract financing arrangements are integrated with agency contract pricing', 20608:'policies. 4 agency heads must not prescribe a period shorter than 7 days or longer than 30 days. b for', 20609:'advance payments, loans, or other arrangements that do not involve recurrent submission of contract financing requests,the designated payment office will', 20610:'make payment in accordance with the applicable contract financingterms oras directed by thecontracting officer. c a proper contract financing request', 20611:'must comply with the terms and conditions specified by the contract. the contractor must correct any defects in requests submitted', 20612:'in the manner specified in the contract or as directed by the contracting officer. d the designated billing office and', 20613:'designated payment officemust annotate each contract financing request withthe datetheir respective offices receivedthe request. e the government will not pay', 20614:'an interest penalty to the contractor as a result of delayed contract financing payments. subpart 32.1 financing for other than', 20615:'a commercial purchase 32.102 32.008notification of overpayment. if the contractor notifies the contracting officerof aduplicate payment or that the government', 20616:'has otherwise overpaid, the contracting officershallfollow the procedures at 32.604. 32.009 providing accelerated payments to small business contractors and to', 20617:'prime contractors that subcontractwith a small business concern. 32.0091 general. a 1 pursuant to 31 u.s.c. 3903a, agencies other than', 20618:'the department of defense dod shall provide accelerated payments, to the fullest extent permitted by law, with a goal of', 20619:'15days after receipt of a proper invoiceandallother required documentation, if a specific payment date is not established by contract, to—', 20620:'i small business contractors; and ii prime contractors that subcontract with a small business concern, if the prime contractor agrees', 20621:'to make payments to the small business subcontractor within 15 days of receiving the accelerated payment from the government, after', 20622:'receiptof aproper invoiceand allotherrequired documentation from thesmall business subcontractor, to the maximum extent practicable, without any furtherconsideration from or fees', 20623:'chargedto the subcontractor. 2 pursuant to 10 u.s.c. 3801b, dod shall provide accelerated payments, to the fullestextent permittedby law, with', 20624:'a goal of 15 days after receipt of a proper invoice and all other required documentation, to— i small business', 20625:'contractors; and ii prime contractors that subcontract with a small business concern, if the prime contractor agrees to make payments', 20626:'to the small business subcontractor within 15 days of receiving the accelerated payment from the government, after receiptof aproper invoiceand', 20627:'allotherrequired documentation from thesmall business subcontractor, to the maximum extent practicable, without any furtherconsideration from or fees chargedto the subcontractor.', 20628:'b this accelerationdoes not provideany new rights under the prompt payment act and doesnot affectthe applicationof the prompt payment act', 20629:'late payment interest provisions. c agencies may use the governmentwide commercial purchase card as a method of payment see 32.1108', 20630:'to facilitate accelerated payment, to earn refunds, and to reduce invoice processing costs. 32.0092 contract clause. insert clause 52.23240, providing', 20631:'accelerated payments to small business subcontractors, in all solicitations and contracts. subpart 32.1 financing for other than a commercial purchase', 20632:'32.100scope of subpart. this subpart provides policies and procedures applicable to contract financing and payment for any purchases other than', 20633:'purchases of commercial products or commercial services in accordance with part 12. 32.101 authority. the basic authority for the contract', 20634:'financing described in this part is contained in 41 u.s.c. chapter 45, contract financing, 10 u.s.c. chapter 277, and titleiii', 20635:'of the defense productionactof l950 50 u.s.c. app.2091. 32.102description of contract financing methods. a advance payments are advances of money', 20636:'by the government to a prime contractor before, in anticipation of, and for the purpose of complete performance under one', 20637:'or more contracts. they are expected to be liquidated from payments due to thecontractor incident to performance of thecontracts. since', 20638:'theyare not measured by performance,they differ from partial, progress, or other payments based on the performance or partial performance of', 20639:'a contract. advance payments may be made to prime contractors for the purpose of making advances to subcontractors. b progress', 20640:'payments based on costs are made on the basis of costs incurred by the contractor as work progresses under the', 20641:'contract. this form of contract financing does not include 1 payments based on the percentage or stage of completion accomplished;', 20642:'2 payments for partial deliveries accepted by the government; 3 partial payments for a contract termination proposal; or federal acquisition', 20643:'regulation 4 performancebased payments. c loan guarantees are made by federal reserve banks, on behalf of designated guaranteeing agencies, to', 20644:'enable contractors to obtain financing from private sources under contracts for the acquisition of supplies or services for the national', 20645:'defense. d payments for accepted supplies and services that are only a part of the contract requirements i.e., partial deliveries', 20646:'are authorized under 41 u.s.c. chapter 45 and 10 u.s.c. chapter 277. in accordance with 5 cfr 1315.4k, agencies must', 20647:'pay for partial delivery of supplies or partial performance of services unless specifically prohibited by the contract. although payments for', 20648:'partial deliveries generally are treated as a method of payment and not as a method of contract financing, using partial', 20649:'delivery payments can assist contractors to participate in contracts without, or with minimal, contract financing. when appropriate, contract statements of', 20650:'work and pricing arrangements must permit acceptance and payment for discrete portions of the work, as soon as accepted see', 20651:'32.906c. e 1 progress payments based on a percentage or stage of completion are authorized by the statutes cited in', 20652:'32.101. 2 this type of progress payment may be used as a payment method under agency procedures. agency procedures must', 20653:'ensure that payments are commensurate with work accomplished, which meets the quality standards established under the contract. furthermore, progress payments', 20654:'may not exceed 80 percent of the eligible costs of work accomplished on undefinitized contract actions. f performancebased payments are', 20655:'contract financing payments made on the basis of 1 performance measured by objective, quantifiable methods; 2 accomplishment of defined events;', 20656:'or 3 other quantifiable measures of results. 32.103 progress payments under constructioncontracts. when satisfactory progress has not been achieved by', 20657:'a contractor during any period for which a progress payment is to be made, a percentage of the progress payment', 20658:'may be retained. retainage should not be used as a substitute for good contract management, and thecontracting officer should not', 20659:'withhold funds without cause. determinations toretain and the specific amount to be withheld shall be made bythe contracting officers on', 20660:'a casebycase basis. such decisions will be based on the contracting officer’s assessment of past performanceand the likelihoodthat such performance', 20661:'will continue. the amountof retainage withheld shall not exceed 10 percent of the approved estimated amount in accordance with the', 20662:'terms of the contract and may be adjusted as the contract approaches completion to recognize better than expected performance, the', 20663:'ability to rely on alternative safeguards, and other factors. upon completion of all contract requirements, retained amounts shall be paid', 20664:'promptly. 32.104 providing contract financing. a prudent contract financing can be a useful working tool in government acquisition by expediting', 20665:'the performance of essential contracts. contractingofficers must consider the criteria in this partin determining whether to include contract financing in', 20666:'solicitations and contracts. resolve reasonable doubts by including contract financing in the solicitation. the contracting officermust 1 provide government financing', 20667:'only to the extentactually needed for prompt and efficient performance,considering the availability of private financing and the probable impact on', 20668:'working capital of the predelivery expenditures and production leadtimes associated with the contract, or groups of contracts or orders e.g.,', 20669:'issued under indefinitedelivery contracts, basic ordering agreements, or their equivalent; 2 administer contract financing so as to aid, not impede,', 20670:'the acquisition; 3 avoid any unduerisk ofmonetary loss to the government through the financing; 4 includethe form of contract financing', 20671:'deemed to be in the government’sbestinterest in the solicitation see 32.106 and 32.113; and 5 monitor the contractor’s use of', 20672:'the contract financing provided and thecontractor’s financial status. b if the contractor isa small business concern,the contracting officermust give special', 20673:'attention to meeting the contractor’s contract financing need. however,a contractor’s receipt ofa certificateof competency fromthe small business administration has no', 20674:'bearingon the contractor’s need for or entitlement to contract financing. c subject to specific agencyregulations and paragraph d of thissection,', 20675:'the contracting officer 1 may provide customary contract financing in accordance with 32.113; and 2 must not provide unusual contract', 20676:'financing except as authorized in 32.114. subpart 32.1 financing for other than a commercial purchase 32.108 d unlessotherwise authorized by', 20677:'agency procedures, thecontracting officer may provide contract financing in theform of performancebased payments see subpart 32.10 or customary progress payments', 20678:'see subpart 32.5 if the following conditions are met: 1 the contractor iwill not beable tobill for the first delivery', 20679:'ofproducts for a substantial time after work mustbegin normally 4 months or more for small business concerns, and 6 months', 20680:'or more for others, and will make expenditures for contract performanceduring the predelivery period thathavea significant impact on the contractor’s', 20681:'working capital; or ii demonstrates actual financial need or the unavailability of private financing. 2 if the contractor is not', 20682:'a small business concern i for an individual contract, the contract price is $3 million or more; or ii for', 20683:'an indefinitedelivery contract, a basic ordering agreement or a similar ordering instrument, the contracting officer expects the aggregatevalueof orders or', 20684:'contracts that individually exceed the simplified acquisition thresholdto have a totalvalueof $3 million ormore. thecontracting officer must limitfinancing to those', 20685:'orders or contractsthat exceed the simplified acquisition threshold. 3 if the contractor is a small business concern i for an', 20686:'individual contract, the contract price exceeds the simplified acquisition threshold; or ii for an indefinitedelivery contract, a basic ordering agreement', 20687:'or a similar ordering instrument, the contracting officer expects the aggregatevalueof orders or contracts to exceed the simplifiedacquisition threshold. 32.105uses', 20688:'of contract financing. a contract financing methods covered in this part are intended to be selfliquidating through contract performance. consequently,', 20689:'agencies shall onlyuse the methods for financing of contractor working capital,not for the expansion of contractorowned facilities orthe acquisition of', 20690:'fixed assets. however, under loan guarantees, exceptions may be madefor 1 facilities expansion of a minor or incidental nature, if', 20691:'a relatively small part of the guaranteed loan is used for the expansionand the contractor’s repayment would notbe delayed or', 20692:'impaired; or 2 other instances of facilities expansion for which contract financing is appropriate under agency procedures. b the limitations', 20693:'in this section do not apply to contracts under which facilities are being acquired for government ownership. 32.106 order of', 20694:'preference. the contractingofficer mustconsider the followingorder of preference when a contractor requests contract financing, unless anexception would be in thegovernment’s', 20695:'best interest in a specific case: a private financing without governmentguarantee. it is not intended, however, that the contracting officer', 20696:'require the contractor to obtain private financing 1 at unreasonable terms; or 2 from other agencies. b customary contract financing', 20697:'other than loan guarantees and certain advance payments see 32.113. c loan guarantees. d unusual contract financing see 32.114. e', 20698:'advance payments see exceptions in 32.402b. 32.107 need for contract financing not a deterrent. a if the contractor or offeror', 20699:'meets the standards prescribedforresponsible prospective contractors at 9.104, the contracting officershallnot treat the contractor’s need for contractfinancing as a handicap', 20700:'for a contract award; e.g., as a responsibility factor or evaluation criterion. b the contractor should not be disqualified from', 20701:'contract financing solely because the contractor failed to indicate a need for contract financing before the contract was awarded. 32.108financial', 20702:'consultation. each contractingoffice should have available and use the services ofcontract financing personnel competent to evaluate credit and financial problems.', 20703:'in resolving any questions concerning a thefinancialcapability of an offeror or contractor to perform acontract, or federal acquisition regulation b', 20704:'what form of contract financing isappropriatein a given case,the contracting officer should consult the appropriate contract financing office. 32.109 termination', 20705:'financing. to encouragecontractors to investtheir own funds in performance despite the susceptibility of the contractto termination for the convenience of', 20706:'the government, the contract financing procedures under this part may be applied to the financing of terminations either in connection', 20707:'with or independently of financing for contract performance see 49.1121. 32.110payment of subcontractors under costreimbursement prime contracts. if the contractor', 20708:'makes financing payments to a subcontractor under a costreimbursement prime contract, the contracting officer should acceptthe financing payments as reimbursable', 20709:'costs of the prime contract onlyunder thefollowing conditions: a the payments are made under the criteria in subpart 32.5 for', 20710:'customary progress payments based on costs, 32.2021 for commercial product or commercial service purchase financing, or 32.1003 for performancebased payments,', 20711:'as applicable. b if customary progress payments are made, the payments do not exceed the progress payment rate in 32.5011,', 20712:'unless unusual progress payments to the subcontractor have been approved in accordance with 32.5012. c if customary progress payments are', 20713:'made, the subcontractor complies with the liquidation principles of 32.5038, 32.5039, and 32.50310. d if performancebased payments are made, the', 20714:'subcontractor complies with the liquidation principles of 32.1004d. e the subcontract contains financing payments terms as prescribed in this part.', 20715:'32.111 contract clausesfor noncommercial purchases. a thecontracting officer shall insert the following clauses, appropriatelymodified with respect to payment duedates, in', 20716:'accordance with agency regulations 1 the clause at 52.2321, payments, in solicitations and contracts when a fixedprice supply contract, a', 20717:'fixedprice service contract, or a contract for nonregulated communication services is contemplated; 2 the clause at 52.2322, payment under fixedprice', 20718:'research and development contracts, in solicitations and contracts when a fixedprice research and development contract is contemplated; 3 the clause', 20719:'at 52.2323, payments under personal services contracts, in solicitations and contracts for personal services; 4 the clause at 52.2324, payments', 20720:'under transportation contracts and transportationrelated services contracts, in solicitations and contracts for transportation or transportationrelated services; 5 the clause at', 20721:'52.2325, payments under fixedprice construction contracts, in solicitations and contracts for construction when a fixedprice contract is contemplated; 6 the', 20722:'clause at 52.2326, payments under communication service contracts with common carriers, in solicitations and contracts for regulated communication services by', 20723:'common carriers; and 7 the clause at 52.2327, payments under timeandmaterials and laborhourcontracts, in solicitations and contracts whena timeandmaterials or', 20724:'laborhour contract iscontemplated. if the contractingofficer determines that it is necessaryto withhold paymentto protect thegovernment’s interests, paragraph a7 ofthe clause', 20725:'permits the contracting officer to unilaterallyissue a modification requiring the contractor to withhold 5 percent of amounts due,up to a', 20726:'maximum of $50,000 underthe contract. the contracting officer shall ensurethat themodification specifies the percentageandtotal amount of the withhold payment. normally,', 20727:'there should be no need to withhold payment for acontractor with a record of timely submittal ofthe release discharging the', 20728:'government from all liabilities, obligations, and claims, as required by paragraph g of the clause. b the contractingofficer shall insertthe', 20729:'following clauses, appropriately modified withrespect to payment due dates in accordance with agency regulations: 1 the clause at 52.2328, discounts', 20730:'for prompt payment, in solicitations and contracts when a fixedprice supply contract or fixedprice service contract is contemplated. 2 a', 20731:'clause, substantially the same as the clause at 52.2329, limitation on withholding of payments, in solicitations and contracts when a', 20732:'supply contract, research and development contract, service contract, timeandmaterials contract, or laborhour contract is contemplated that includes two or more', 20733:'terms authorizing the temporary withholding of amounts otherwise payable to the contractor for supplies delivered or services performed. subpart 32.1', 20734:'financing for other than a commercial purchase 32.113 c thecontracting officer shall insert the following clauses, appropriatelymodified with respect to', 20735:'payments due dates in accordance with agency regulations: 1 the clause at 52.23210, payments under fixedprice architectengineer contracts, in fixedprice', 20736:'architect engineer contracts. 2 the clause at 52.23211, extras, in solicitations and contracts when a fixedprice supply contract, fixedprice service', 20737:'contract, or a transportation contract is contemplated. 32.112nonpaymentof subcontractors under contractsother than for commercial products andcommercial services. 32.1121 subcontractor assertions', 20738:'of nonpayment. a in accordance with section 806a4 of pub.l.102190, as amended by sections2091 and 8105 of pub.l.103355 10 u.s.c.', 20739:'4601 note prec., upon the assertion by a subcontractor or supplier of a federal contractor that the subcontractor or supplier', 20740:'has not been paid in accordance with the payment terms of the subcontract, purchaseorder, or other agreement with theprimecontractor, the', 20741:'contracting officer may determine 1 for a construction contract, whether the contractor has made iprogress payments to the subcontractor orsupplierin', 20742:'compliancewith chapter 39 of title 31, unitedstates code prompt payment act; or iifinalpayment tothe subcontractor or supplier in compliance with', 20743:'the termsof the subcontract, purchase order, or other agreement with the prime contractor; 2 for a contract other than construction,', 20744:'whether the contractor has made progress payments, final payments, or other payments tothe subcontractor or supplier in compliance with the', 20745:'termsof the subcontract, purchase order,or other agreement with the prime contractor; or 3 for any contract, whether the contractor’s certificationof', 20746:'payment ofa subcontractor orsupplier accompanying its payment request to the government is accurate. b if, in making the determination inparagraphs', 20747:'a1 and 2 ofthissubsection, the contractingofficer finds theprime contractor is not incompliance, the contractingofficer may 1 encourage the contractor to', 20748:'make timely payment to the subcontractor or supplier; or 2 if authorizedby the applicable paymentclauses,reduce or suspend progress payments to', 20749:'the contractor. c if the contracting officerdeterminesthat a certification referred toin paragraph a3 ofthissubsection is inaccurate in any materialrespect, the', 20750:'contractingofficer shall initiateadministrative or otherremedialaction. 32.1122 subcontractor requestsfor information. a in accordance with section 806a1 of public law 102190, as', 20751:'amended by sections 2091 and 8105 of public law 103355 10 u.s.c. 4601 note prec., upon the request of a', 20752:'subcontractor or supplier under a federal contract other than for a commercial product or commercial service, thecontracting officer shall promptly', 20753:'advise the subcontractor or supplieras to— 1 whether the prime contractor has submitted requests for progress payments or other payments', 20754:'to the federal government under the contract; and 2 whetherfinal payment under the contract has been made by the federal', 20755:'government to the prime contractor. b in accordance with 5 u.s.c. 552b1, this subsection does not apply to matters that', 20756:'are 1 specifically authorized under criteria established by an executive order to be kept classified in the interest of national', 20757:'defense or foreign policy; and 2 properly classified pursuantto suchexecutive order. 32.113customary contract financing. the solicitation must specify the customary', 20758:'contract financing offerors may propose. the following are customary contract financing when provided in accordance with this part and agency', 20759:'regulations: a financing of shipbuilding,or ship conversion,alteration, orrepair, when agency regulationsprovide for progress payments based on a percentage or stage', 20760:'of completion. b financing of construction or architectengineer services purchased under the authority of part 36. c financing of contracts', 20761:'for supplies or services awarded under the sealed bid method of procurement in accordance with part 14 through progress payments', 20762:'based on costs in accordance with subpart 32.5. federal acquisition regulation d financing of contracts for supplies or services awarded', 20763:'under the competitive negotiation method of procurement in accordance with part 15, through either progress payments based on costs in', 20764:'accordance with subpart 32.5, or performance based payments in accordance with subpart 32.10 but not both. e financing of contracts', 20765:'for supplies or services awarded under a solesource acquisition as defined in 2.101 and using the procedures of part 15,', 20766:'through either progress payments based on costs in accordance with subpart 32.5, or performance based payments in accordance with subpart', 20767:'32.10 but not both. f financing of contracts for supplies or services through advance payments in accordance with subpart 32.4.', 20768:'g financing of contracts for supplies or services through guaranteed loans in accordance with subpart 32.3. h financing of contracts', 20769:'for supplies or services through any appropriate combination of advance payments, guaranteed loans, and either performancebased payments or progress payments', 20770:'but not both in accordance with their respective subparts. 32.114unusual contract financing. any contract financing arrangement that deviates from this', 20771:'part is unusual contract financing. unusual contract financing shall be authorized only after approval by the head of the agency', 20772:'or as provided for in agency regulations. subpart 32.2 commercial product and commercial service purchase financing 32.2022 subpart 32.2 commercial', 20773:'product and commercial service purchase financing 32.200scope of subpart. this subpart provides policies and procedures for commercial financing arrangements under', 20774:'commercial purchases pursuant to part 12. 32.201 statutory authority. 10 u.s.c. 3805 and 41 u.s.c.4505 provide that payment for commercial', 20775:'products or commercial services may be made under such terms and conditions as the head of the agency determines are', 20776:'appropriate or customary in the commercial marketplace and are in the best interest of the united states. 32.202general. 32.2021policy. a', 20777:'use of financing in contracts. it is the responsibility of the contractor to provide all resources needed for performance of', 20778:'the contract. thus, for purchases of commercial products or commercial services, financing of the contract is normally the contractor’s responsibility.', 20779:'however, in some markets the provision of financing by the buyer is a commercial practice. in these circumstances, thecontracting officer', 20780:'may include appropriate financing terms in contracts for commercial purchases when doing so will be in the best interest of', 20781:'the government. b authorization. commercial interim payments and commercial advance payments may be made under the following circumstances 1 the', 20782:'contract item financed is a commercial supply or service; 2 the contract price exceeds the simplified acquisition threshold; 3 the', 20783:'contractingofficer determines that it is appropriateor customaryin thecommercial marketplaceto make financing payments for the item; 4 authorizing this form of', 20784:'contract financing is in the best interest of the government see paragraph e of this subsection; 5 adequate security is', 20785:'obtained see 32.2024; 6 prior to any performance of work under the contract, the aggregate of commercial advance payments shall', 20786:'not exceed 15 percent of the contract price; 7 the contract isawarded onthe basis ofcompetitive procedures or, if only one', 20787:'offer is solicited, adequate consideration is obtained based on the time value of the additional financing to be provided if', 20788:'the financing is expected to besubstantially more advantageous tothe offeror than the offeror’snormal method of customer financing; and 8 the', 20789:'contractingofficer obtains concurrence from the payment office concerningliquidation provisions when required by 32.206e. c difference from other than commercial financing.', 20790:'government financing of commercial purchases under this subpart isexpectedtobedifferentfromthatusedforotherthancommercialpurchasesunder subpart 32.1 and its related subparts. while the contracting officer may', 20791:'adapt techniques and proceduresfrom the other than commercial subparts for use in implementing commercial contract financing arrangements, thecontracting officer must', 20792:'have a full understandingof effects of the differingcontract environments andof what is needed to protect the interestsof the government in', 20793:'commercial contract financing. d unusual contract financing. any contract financing arrangement not in accord with the requirements of agency regulations', 20794:'or this part is unusual contract financing and requires advance approval in accordance with agency procedures. if not otherwise specified,', 20795:'such unusual contract financing shall be approvedby the head ofthe contracting activity. e best interest of the government. the statutes', 20796:'cited in 32.201 do not allow contract financing by the government unless it is in the best interest of the', 20797:'united states. agencies may establish standards to determine whether contract financing is in the best interest of the government. these', 20798:'standards may be for certain types of procurements, certain types of items, or certain dollar levels of procurements. 32.2022types of', 20799:'paymentsfor commercial product and commercial service purchases. these definitions incorporate the requirements of the statutory commercial financing authority and the', 20800:'implementation of the prompt payment act. 32.2023 federal acquisition regulation commercial advance payment, as used in this section, means a', 20801:'payment made before any performance of work under the contract. the aggregate of these payments shall not exceed 15 percent', 20802:'of the contract price. these payments are contract financing payments for prompt payment purposes i.e., not subject to the interest', 20803:'penalty provisions of the prompt payment act in accordance with subpart 32.9. these payments are not subject to subpart 32.4,', 20804:'advance payments for other than commercial acquisitions. commercial interim payment see 32.001. delivery payment see 32.001. 32.2023conducting market researchabout financing', 20805:'terms. contract financing may be a subject included in the market research conducted in accordance with part 10. if market', 20806:'research for contract financing isconducted, the contracting officer should consider a the extent to which other buyers provide contract financing', 20807:'for purchases in that market; b the overall level of financing normally provided; c the amount or percentages of any', 20808:'payments equivalent to commercial advance payments see 32.2022; d the basis for any payments equivalent to commercial interim payments see', 20809:'32.001, as well as the frequency, and amounts or percentages; and e methods of liquidation of contract financing payments and', 20810:'any special or unusual payment terms applicable to delivery payments see 32.001. 32.2024 security for government financing. a policy. 1', 20811:'10 u.s.c. 3805 and 41 u.s.c.4505 require the government to obtain adequate security for government financing. the contracting officer shall', 20812:'specify in the solicitation the type of security thegovernmentwill accept. if the government iswilling to accept more than one form', 20813:'of security, theofferor shall berequired to specifythe form of security it will provide. if acceptableto the contracting officer,the resulting contract', 20814:'shall specify the security see 32.206b1iv. 2 subjectto agency regulations, the contracting officer may determine theofferor’s financial condition tobe adequate', 20815:'security, provided the offeror agrees to provide additional security should that financial condition become inadequate as security see paragraph c', 20816:'of the clause at 52.23229,terms for financing of purchases of commercialproducts and commercial services. assessment of the contractor’s financial conditionshallconsiderboth', 20817:'net worth and liquidity. if the contracting officerfinds the offeror’s financialcondition is notadequate security, the contracting officer shall require other', 20818:'adequate security. paragraphs b, c, and d ofthis subsection listother but not all formsof security that the contracting officer may', 20819:'find acceptable. 3 the value of the security must be at least equal to the maximum unliquidated amount of contract', 20820:'financing payments tobe made to the contractor. the value of securitymay be adjusted periodically during contract performance, as long as', 20821:'it is always equal to or greater than the amount of unliquidated financing. b paramount lien. 1 the statutes cited', 20822:'in 32.201 provide that if the government’ssecurity is in the form of a lien, such lien is paramount toall other', 20823:'liens and is effective immediately upon the first payment, without filing, notice, orotheraction by the united states. 2 when the', 20824:'government’s security isin the form of a lien, the contract shall specify what thelien isupon, e.g., the work in process,', 20825:'the contractor’splant, or the contractor’s inventory. contracting officers may be flexible in the choice of assets. the contract must also', 20826:'give the government a right to verify the existence and value of the assets. 3 provision of government financing shall', 20827:'be conditioned upon a contractor certification that the assets subject to the lien are free from any prior encumbrances. prior', 20828:'liens may result from such things as capital equipment loans, installment purchases, working capital loans, various lines of credit, and', 20829:'revolving credit arrangements. c other assets as security. contracting officers may consider theguidance at 28.203 and 28.204 in determining which', 20830:'typesofassetsmaybeacceptableassecurity. forthepurposeofapplyingtheguidancein part 28 to this subsection, the term surety and/or individual surety should be interpretedto mean offeror and/or contractor.', 20831:'d other forms of security. other acceptable forms of security include 1 an irrevocable letter of credit from a federally', 20832:'insured financial institution; 2abondfromasurety,acceptableinaccordancewith part 28 note that the bond must guarantee repayment of the unliquidated contract financing; 3 a', 20833:'guarantee of repayment from a person or corporation of demonstrated liquid net worth, connected by significant ownership to the contractor;', 20834:'or 4 titleto identifiedcontractor assets of adequateworth. subpart 32.2 commercial product and commercial service purchase financing 32.206 e management of', 20835:'risk and security. in establishing contract financing terms, thecontracting officer must be awareof certain risks. for example, very high amounts', 20836:'of financing early in the contract frontend loading may unduly increase the risk to the government. the security and the', 20837:'amounts and timing of financing payments must be analyzed as a whole to determine whether the arrangement will be in', 20838:'the best interest of the government. 32.203determining contract financing terms. when the criteria in 32.2021b are met,the contracting officermay either', 20839:'specify the financing terms in the solicitation see 32.204 or permit each offeror to propose its own customary financing terms', 20840:'see 32.205. whenthe contracting officer has sufficientinformationon financing terms that are customary in the commercial marketplace for the item, those', 20841:'terms may be specified in the solicitation. 32.204 procedures for contracting officerspecified commercial contractfinancing. the financing terms shall be included', 20842:'in the solicitation. contract financing shall not be a factor in the evaluation of resulting proposals, and proposals of alternative', 20843:'financing terms shall not be accepted but see 14.208 and 15.206 concerning amendments of solicitations. however, anoffer stating that thecontracting', 20844:'officerspecified contract financing terms will not be used by the offerordoes not alter the evaluation of theoffer, nor does it', 20845:'render the offer nonresponsive or otherwise unacceptable. in the event of award to an offeror who declined theproposed contract financing,', 20846:'the contract financing provisions shall not be included in the resulting contract. contractfinancing shall not be a basisforadjustingofferors’ proposed prices,', 20847:'because theeffect of contract financingis reflected in eachofferor’s proposed prices. 32.205 procedures for offerorproposed commercial contract financing. a under this', 20848:'procedure, each offeror may proposefinancing terms. the contracting officer must then determinewhich offer isin the bestinterests of theunited states. b', 20849:'solicitations. the contracting officermust include in the solicitation the provision at 52.23231, invitation to propose financing terms. the contracting officer', 20850:'must also 1 specify the delivery payment invoice dates that will be used in the evaluation of financing proposals; and', 20851:'2 specify the interest rate to be used in the evaluation of financing proposals see paragraph c4 of this section.', 20852:'c evaluation of proposals. 1 whencontract financing terms vary among offerors,the contracting officermust adjust each proposed price for evaluation purposes', 20853:'to reflect the cost of providing the proposed financing in order to determine the total cost to the government of', 20854:'that particular combination of price and financing. 2 contract financing results in the government making payments earlier than it otherwise', 20855:'would. in order to determine the cost to the government ofmaking payments earlier, the contractingofficer must compute the imputed cost', 20856:'of those financing payments and add it tothe proposed priceto determine the evaluated price for each offeror. 3 the imputed', 20857:'cost of a single financing payment is the amount of the payment multiplied by the annual interest rate, multiplied by', 20858:'the number of years, or fraction thereof, between the date of the financing payment and the date the amount would', 20859:'have been paid as a delivery payment. the imputed cost of financing is the sum of the imputed costs of', 20860:'each of the financing payments. 4 the contractingofficer mustcalculate the time value of proposalspecified contract financing arrangementsusing as the interestrate', 20861:'thenominal discount rate specified inappendixc ofthe office of management and budget omb circulara94, guidelines and discount rates for benefitcost analysis', 20862:'of federal programs, appropriate to the period of contract financing. where the period of proposed financingdoes not match the periods', 20863:'inthe ombcircular,the interest rate for theperiod closestto thefinance period shall be used. appendixcis updated yearly,and is available from the office', 20864:'of economic policy inthe office of management and budget omb. 32.206 solicitation provisions and contract clauses. a the contract shall', 20865:'contain the paragraph entitled payment of the clause at 52.2124,contract terms and conditions commercial productsand commercial services. if the contract', 20866:'will provide for contractfinancing,the contracting officer shall construct a solicitation provision and contract clause. this solicitation provision shall be constructed', 20867:'in accordance with 32.204 or 32.205. if the procedure at 32.205 is used, the solicitation provision at 52.23231, invitation to', 20868:'propose financing terms, shall be included. the contractclause shall be constructed in accordance with the requirements of this subpart and', 20869:'any agency regulations. b each contract financing clause shall include: 1 a description of the federal acquisition regulation i computation', 20870:'of the financing payment amounts see paragraph c of this section; ii specific conditions of contractor entitlement to those financing', 20871:'payments see paragraph c of this section; iii liquidation of those financing payments by delivery payments see paragraph e of', 20872:'this section; iv security the contractor will provide for financing payments and any terms or conditions specifically applicable thereto see', 20873:'32.2024; and v frequency, form,andany additional content of the contractor’s request for financing payment in addition to the requirements of', 20874:'the clause at 52.23229, terms for financing of purchases of commercial products and commercial services; and 2 unless agency regulations', 20875:'authorize alterations, the unaltered text of the clause at 52.23229,terms for financing of purchases of commercial products and commercial services.', 20876:'c computation of amounts, and contractor entitlement provisions. 1 contracts shall provide that delivery payments shall be made only for', 20877:'completed supplies and services accepted by the government in accordance with the terms of the contract. contracts may provide for', 20878:'commercial advance and commercial interim payments based upon a wide variety of bases, including but not limited to achievement or', 20879:'occurrence of specified events, the passage of time, or specified times prior to the delivery dates. the basis for payment', 20880:'must be objectively determinable. the clause written by the contracting officer shall specify, tothe extent accessis necessary, the information and/or', 20881:'facilities towhich the governmentshallhave access for the purposeof verifying the contractor’s entitlement to payment of contractfinancing. 2 if the contract', 20882:'is awarded using the offerorproposedprocedure at 32.205, the clause constructed by the contracting officer under paragraphb1 of this sectionshallcontain the', 20883:'following: iastatement that the offeror’sproposed listing of earliest times and greatest amounts of projected financing payments submitted in accordance with', 20884:'paragraph d2 of the provision at 52.23231, invitation to propose financing terms, is incorporatedinto the contract, and ii a statement', 20885:'that financing payments shall be made in the lesser amount and on the later of the date due in accordance', 20886:'with the financing terms of the contract, or in the amount and on the date projected in the listing of', 20887:'earliest times and greatest amounts incorporated in the contract. 3 if the security accepted by the contracting officer isthe contractor’s', 20888:'financial condition, thecontracting officer shall incorporate in the clause constructed under paragraph b1 of this section the following iastatement that', 20889:'the contractor’s financial condition has been accepted as adequate security for commercial financing payments; and iiastatement that the contractingofficer may', 20890:'exercise the government’srights torequire other security under paragraph c, security for government financing, of the clause at 52.23229, terms for', 20891:'financing of purchases of commercial productsand commercial services,in theevent the contractor’s financial condition changes and is found not to beadequate', 20892:'security. d instructions for multiple appropriations. if contract financing is to be computed for the contract as a whole, and', 20893:'if there ismorethan one appropriation account or subaccount funding payments under the contract,the contracting officer shall include, in the contract,', 20894:'instructions for distribution of financing payments to the respective funds accounts. distribution instructions and contract liquidation instructions must be mutually', 20895:'consistent. e liquidation. liquidation of contract financing payments shall be on the same basis as the computation of contract financing', 20896:'payments; that is, financing payments computed on a whole contract basis shall be liquidated on a whole contract basis; and', 20897:'a payment computed on a line item basis shall be liquidated against that line item. if liquidation is on a', 20898:'whole contract basis, thecontracting officer shall use auniform liquidation percentageas the liquidation method, unless the contracting officerobtains the concurrence of', 20899:'the cognizant paymentoffice thatthe proposed liquidation provisions can be executed by that office, or unless agencyregulations providealternative liquidation methods. f', 20900:'prompt payment for commercial purchase payments. the provisions of subpart 32.9, prompt payment, apply to contract financing and invoice payments', 20901:'for commercial purchases in the same manner they apply to other than commercial purchases. the contractingofficer is responsible for includingin', 20902:'thecontract all the information necessary to implement promptpayment. in particular, contractingofficers must be careful to clearly differentiate in the contract', 20903:'between contract financing and invoice payments and between itemshaving different prompt payment times. g installment payment financing for commercial products', 20904:'and commercial services. contracting officers mayinsert the clause at 52.23230, installment payments for commercial products and commercial services, in solicitations', 20905:'and contracts in lieu of constructing a specific clause in accordance with paragraphs b through e of this section, if', 20906:'the contract action qualifies under the criteria at 32.2021b and installment payments for the item are either customary or are', 20907:'authorized in accordance with agency procedures. subpart 32.2 commercial product and commercial service purchase financing 32.207 1 description. installment payment', 20908:'financing is payment by the government to a contractor of a fixed number of equal interim financing payments prior to', 20909:'delivery and acceptance of a contract item. the installment payment arrangement is designed to reduceadministrative costs. however, if acontract will', 20910:'have a large number ofdeliveries, the administrative costs may increase to the point where installment payments are not in the', 20911:'best interests of the government. 2 authorized types of installment payment financing and rates. installment payments may be made using', 20912:'the clause at 52.23230, installment payments for commercial products and commercial services, either at the 70 percent financing rate cited', 20913:'in the clause or at a lower rate in accordance with agency procedures. 3 calculating the amount of installment financing', 20914:'payments. the contractingofficer shall identifyin thecontract schedule those items for which installment payment financing is authorized. monthly installment payment amounts', 20915:'are to be calculated by the contractor pursuant to the instructions in the contract clause only for items authorized to', 20916:'receive installment payment financing. 4 liquidating installment payments. if installment payments have been made for an item, the amount paid', 20917:'to the contractor upon acceptance of the item by the government shall be reduced by the amount of installment payments', 20918:'made for theitem. the contractor’s requestforfinal payment for eachitem isrequired to show this calculation. 32.207 administration and payment of commercialfinancingpayments.', 20919:'a responsibility. the contractingofficer responsible for administration of the contract shall be responsibleforreview and approval of contract financing requests. b', 20920:'approval of financing requests. unless otherwise provided in agency regulations, or by agreement with the appropriate paymentofficial 1 the contractingofficer', 20921:'shall be responsible for receiving,approving, and transmitting all contract financing requests to the appropriate paymentoffice; and 2 each approval shall', 20922:'specify the amount to be paid, necessary contractual information, and the accounts see 32.206d tobe charged for the payment. c', 20923:'management of security. aftercontract award,the contracting officer responsibleforapproving requests for financing payments shall be responsiblefordeterminingthat the security continues tobe adequate.', 20924:'if the contractor’s financial condition is the government’s security, this contracting officer isalsoresponsibleformonitoringthe contractor’s financial condition. this page intentionally left', 20925:'blank. 32.26 subpart 32.3 loan guarantees for defense production 32.303 subpart 32.3 loan guarantees for defense production 32.300scope of subpart.', 20926:'this subpart prescribes policies and procedures for designated agencies’ guarantees of loans made by private financial institutions to borrowers performing', 20927:'contracts related to national defense see 30.102. 32.301definitions. as used in this subpart borrower means a contractor, subcontractor at any', 20928:'tier,or other supplier who receivesa guaranteed loan. federal reserve board means the board of governors of the federal reserve system.', 20929:'guaranteed loan or v loan means a loan, revolving credit fund, or other financial arrangement made pursuant to regulation v', 20930:'of the federal reserve board, under which the guaranteeingagency is obligated, on demand of the lender,to purchase a stated percentage', 20931:'of the loan and to share any losses in the amount of the guaranteed percentage. guaranteeing agency means any agency', 20932:'that the president has authorized to guarantee loans, through federal reserve banks, for expediting national defense production. 32.302 authority. congress', 20933:'has authorized federal reserve banks to act, on behalf of guaranteeing agencies, as fiscal agents of the united states in', 20934:'the making of loan guarantees for defense production section301, defense production act of1950 50 u.s.c. app.2091. by executive order10480, august', 20935:'14,1953 3 cfr194953, as amended, the president has designated the following agencies as guaranteeing agencies: a department of defense. b', 20936:'department of energy. c department of commerce. d department of theinterior. e department of agriculture. f general services administration. g', 20937:'national aeronautics and space administration. 32.303general. a section 301 of the defense production act authorizes loan guarantees for contract performance', 20938:'or other operations related to national defense, subject to amounts annually authorized by congress on the maximum obligation of any', 20939:'guaranteeing agency under any loan, discount, advance, or commitment in connection therewith, entered into under section 301. see 50 u.s.c.', 20940:'app.2091 for statutory limitations and exceptions concerning the authorization of loan guarantee amounts and the useof loan guarantees for the', 20941:'prevention of insolvency or bankruptcy. b the guarantee shall be for less than 100 percent of the loan unless the', 20942:'agency determines that 1 the circumstances are exceptional; 2 the operations of the contractor are vital to the national defense;', 20943:'and 3 no other suitable means of financing are available. c loan guarantees are not issued to other agencies of', 20944:'the government. d guaranteed loans are essentially the same as conventional loans made by private financial institutions, except that the', 20945:'guaranteeing agency is obligated, on demand of thelender, to purchase a stated percentage of the loan and to share any', 20946:'losses in the amount of guaranteed percentage. it is the responsibility of the private financial institution to disburse and collect', 20947:'funds and to administer the loan. under regulation v of the federal reserve board 12 cfr245, any private financing institution', 20948:'may submit an application to the federal reserve bank of its district for guarantee of a loan or credit. e', 20949:'federal reserve banks will make the loan guarantee agreements on behalf of the guaranteeing agencies. f under section 302c of', 20950:'executive order10480, august 14,1953 3 cfr194953, as amended, all actions and operations of federal reserve banks, as fiscal agents, are', 20951:'subject to the supervision of the federal reserve board. the federal reserve board is authorized to prescribe the following, after', 20952:'consultation with the heads of guaranteeing agencies: 1 regulations governing the actions and operations of fiscal agents. 2 rates of', 20953:'interest,guarantee and commitmentfees, and other charges that maybe made for loans, discounts, advances, or commitments guaranteed by the guaranteeing agencies', 20954:'through the federal reserve banks. these prescriptions may be in the form of specific rates or limits, or in other', 20955:'forms. federal acquisition regulation 3 uniform forms and procedures to be used in connection with the guarantees. g the guaranteeing', 20956:'agency is responsible for certifying eligibility for the guarantee and fixing the maximum dollar amount and maturitydate of the guaranteed', 20957:'loan tomeet thecontractor’s requirement for financing performance of the defense production contract on hand at the time the guarantee application', 20958:'is submitted. 32.304 procedures. 32.3041 application for guarantee. a a contractor, subcontractor,or supplier thatneeds operating funds to perform acontract relatedto', 20959:'national defense may apply to a financing institution for a loan. if the financing institution is willing to extend credit,', 20960:'but considers a government guarantee necessary, the institution may apply to the federal reserve bank ofits district for the guarantee.', 20961:'application forms and guidance are available at all federal reserve banks. b the federal reserve bank will promptly send a', 20962:'copy of the application, including a list of the relevant defense contracts heldby the contractor, tothe federal reserve board. the', 20963:'board will transmit the application and thelist of contracts to the interested guaranteeingagency,sothat theagency candetermine theeligibility of the contractor. c', 20964:'to expedite the process,the federalreserve bank may, pursuant to instructions ofa guaranteeing agency, submitlists of the defense contracts to the', 20965:'interestedcontracting officers. d while eligibility is being determined, the federal reserve bank will make any necessary credit investigations to supplement', 20966:'the information furnished by the applicant financing institution in order to 1 expedite necessary defense financing; and 2 protect the', 20967:'government against monetary loss. e the federal reserve bank will send its report and recommendation to the federal reserve board.', 20968:'the board will transmit them tothe interested guaranteeing agency. 32.3042certificate ofeligibility. a thecontracting officer shall prepare the certificate of eligibility', 20969:'for acontract that the contracting officer deems to be of material consequence, when 1 the contract financing office requestsit; 2', 20970:'another interested agency requests it; or 3 the application for a loan guarantee relates to a contract or subcontract within', 20971:'the cognizance of the contracting officer. b the agency shall evaluate the relevant data,including the certificateof eligibility, the accompanyingdata, and', 20972:'any other relevant information on the contractor’s financial status and performance, to determine whether authorization ofa loan guarantee wouldbe inthe', 20973:'government’s interest. c if the contractor has several major national defense contracts, it is normally not necessary to evaluate the', 20974:'eligibility of relatively minor contracts. the determination ofeligibility should be processed, withoutdelay, basedon the preponderance of the amount of the', 20975:'contracts. d the certificate of eligibility shall include the following determinations: 1 the supplies or services to be acquired are', 20976:'essential to the national defense. 2 the contractor has the facilities and the technical and management ability required for contract', 20977:'performance. 3 there is no practicable alternate source for the acquisition without prejudice to the national defense. this statement shall', 20978:'not be included if the contractor is a small business concern. e thecontracting officer shall consider the following factors in', 20979:'determining if apracticable alternate sourceexists: 1 prejudice to the national defense, because reletting of a contract with another source would', 20980:'conflict with a major policy on defense acquisition; e.g., policies relating to the mobilization base. 2 the urgency of contract', 20981:'performanceschedules. 3 the technical ability and facilities of other potential sources. 4 the extent to which other sources would need', 20982:'contract financing to perform. 5 the willingness of other sources to enter into contracts. 6 the time and expense involved', 20983:'in repurchasing for contracts or parts of contracts. this may include potential claims under a termination for convenience or delays', 20984:'incident to default at a later date. 7 the comparative prices available from other sources. 8 the disruption of established', 20985:'subcontracting arrangements. subpart 32.3 loan guarantees for defense production 32.3045 9 other pertinent factors. f the contracting officer shall attach', 20986:'sufficient data to the certificate of eligibility to supportthe determinationsmade. available pertinent information shall be included on 1 the contractor’s', 20987:'past performance; 2 the relationship of the contractor’s operationsto performanceschedules; and 3 other factors listed in paragraph e of this', 20988:'section, if relevant to the case under consideration. g if the contracting officer determines that a certificate of eligibilityis not', 20989:'justified,the facts and reasonssupporting that conclusion shall be documented and furnished to the agency contract financeoffice. h the guaranteeing agency', 20990:'shall review the proposed guarantee terms and conditions. if they are considered appropriate, the guaranteeing agency shall complete a standard', 20991:'form of authorization as prescribed by the federal reserve board. the agency shall transmit the authorization through the federal reserve', 20992:'board to the federal reserve bank. the bank is authorized to execute and deliver to the financing institution a standard', 20993:'form of guarantee agreement, with the terms and conditions approved for the particular case. the financing institution will then make', 20994:'the loan. isubstantially thesame procedure may be followedforthe applicationof an offeror who isactively negotiating or bidding for a defense contract,', 20995:'except that the guarantee shall not be authorized until the contract has been executed. jthe contracting officer shall report to', 20996:'the agencycontract finance officeanyinformationabout the contractor that would have a potentially adverse impact on a pending guarantee application. the contracting', 20997:'officeris not required, however, to initiate any special investigation for this purpose. k with regardto existingcontracts,the agency shall not consider', 20998:'the percentageof guarantee requested by the financing institutionin determining the contractor’seligibility. 32.3043 asset formula. a under guaranteed loans made primarily', 20999:'for working capital purposes, the agency shall normally limit the guarantee, by use of an asset formula,to anamount that does', 21000:'notexceed a specified percentage90percent orless of the contractor’s investment e.g., payrolls and inventories in defense production contracts. the asset formula', 21001:'may include all items under defense contracts for which the contractor would be entitled to payment on performance or termination.', 21002:'the formula shall exclude 1 amounts for which the contractor has not done any work or made any expenditure; 2', 21003:'amounts that would become due as the result of later performance under the contracts; and 3 cash collateral or bank', 21004:'deposit balances. b progress payments are deducted from the asset formula. c the agency may relax the asset formula to', 21005:'an appropriate extent for the time actually necessary for contract performance, if thecontractor’sworking capitalandcredit are inadequate. 32.3044guaranteeamountand maturity. the agency', 21006:'may change the guarantee amount or maturity date, within the limitations at 32.3043, as follows: a if the contractor enters', 21007:'into additional defense production contracts after the application for, but beforeauthorization of, a guarantee, the agency may adjust the loan', 21008:'guarantee amount or maturity date to meet any significant increase in financing need. b if the contractor enters into defense', 21009:'production contracts during the term of the guaranteed loan, the parties may adjust the existing guarantee agreement to provide for', 21010:'financing the new contracts. pertinent information and the federal reserve bank reports will be submitted to the guaranteeing agency under', 21011:'the procedures for the original guarantee application, described in 32.3041. normally, a newcertificate of eligibility is required. 32.3045 assignment of', 21012:'claims under contracts. a the agency shall generally require a contractor that is provided a guaranteed loan to execute an', 21013:'assignment of claims under defense production contracts including any contracts entered into during the term of the guaranteed loan that', 21014:'are eligible for financing under the loan; however, the agency need not require assignment if any of thefollowing conditions are', 21015:'present: 1 the contractor’s financial conditionis so strong that the protection to the government provided byan assignment of claims is', 21016:'unnecessary. 2 in connection with the assignment of claims under a major contract, the increased protection of the loan that', 21017:'would beprovided bythe assignments under additional, relatively smaller contracts is notconsidered necessary bythe agency. 32.3046 federal acquisition regulation 3 the', 21018:'assignment of claims would create an administrative burden disproportionate to the protection required; e.g., if thecontractor has a large number', 21019:'ofcontracts with individually small dollar amounts. b the contractor shall also execute an assignment of claims if requested to do', 21020:'so by the guarantor or the financing institution. c a subcontract or purchase order issued to a subcontractor shall not', 21021:'be considered eligible for financing under guaranteed loans when the issuer of the subcontract or purchase order reserves 1 the', 21022:'privilege of making payments directly to the assignor orto theassignor and assignee jointly,after notice of the assignment, or 2 the', 21023:'right to reduce or set off assigned proceeds underdefenseproduction contractsby reason of claims against the borrower arising after notice of', 21024:'assignment and independently of defense production contracts under which the borrower is theseller. 32.3046other collateralsecurity. the following are examples of', 21025:'other forms of security that, although seldom invoked under guaranteed loans, may be required when considered necessary for protection of', 21026:'the government interest: a mortgages on fixed assets. b liens against inventories. c endorsements. d guarantees. e subordinations or standbys', 21027:'of other indebtedness. 32.3047contractsurety bonds and loanguarantees. a contract surety bonds are incompatible withthe government’s interests under guaranteed loans, unless', 21028:'the interestsof the surety are subordinated to the guaranteed loan. b if a substantial shareof the contractor’s defense contractsare covered', 21029:'by surety bonds,or the amount of thebond is substantial in relation to the contractor’s net worth, the agency shall not', 21030:'authorize the guarantee of a loan on a bonded contract unless the surety enters into an agreementwith the financing institutionto', 21031:'subordinate the surety’s rights and claims in favor of the guaranteed loan. c the agency approval of a guarantee for', 21032:'a loan involving relatively substantial subcontracts covered by surety bonds shall also depend on the establishment of a reasonable allocation', 21033:'agreement between the sureties and the financing institution. the agreement should give the financing institution the benefit, with regard to', 21034:'payments to be made on the contract, of the portion of its loans fairly attributable to expenditures made under the', 21035:'bonded subcontracts before notice of default. 32.3048other borrowing. a because of the limitations under guaranteed loans, some contractors seek to', 21036:'supplement the loan by other borrowing outside the guarantee from the financing institution or other sources. it has been recognized', 21037:'in practice that, while prohibition of borrowings outside the guaranteed loan is preferable when practicable in a given vloan case,', 21038:'such other borrowings should be permittedwhen necessary. b if the agency consents to the contractor obtaining other borrowing during the', 21039:'guaranteed loan period, the agency shall apply the following restrictions: 1 a reasonable limit on the amount of other borrowing.', 21040:'2 if guaranteed and unguaranteed loans are made by the same financing institution, a requirement that any collateral security requested', 21041:'by the institution under the unguaranteed loan is also to be secondary collateral for the guaranteed loan. 3 a requirement', 21042:'that the contractor provide appropriatedocumentation to the guaranteeing agency, at intervals not longer than 30 days, to disclose outstanding unguaranteed', 21043:'borrowings. 32.305loan guarantees for terminated contracts. a the purpose of guaranteed loans; i.e., to provide for financingbased on theborrower’s recoverable', 21044:'investmentin defense production contracts, may also apply to contracts that have been terminated partially or totally for the convenience of', 21045:'the government. guaranteed loans also may be made before such termination if it is known that termination of particular contracts', 21046:'for the convenience of the governmentis about to occur. these loans are expected to provide necessary financing pending termination settlements', 21047:'and payments. they may also finance continuing performance of defense production contracts that are eligible for guaranteed loans. subpart 32.3', 21048:'loan guarantees for defense production 32.306 b the procedure for such guarantees is substantially the same as that outlined in', 21049:'32.304, except that certificates of eligibility are not required for 1 contracts that have been totally terminated or 2 the', 21050:'terminated portion of contracts that have been partially terminated. the agency shall take precautions necessary to avoid government losses and', 21051:'to ensure the loans will be selfliquidating from the proceeds of defense production contracts. c loan guarantees for contract termination', 21052:'financing shall not be provided before specific contract terminations are certain. 32.306loan guarantees for subcontracts. if the request for a', 21053:'loan guarantee concerns a subcontractor thatis financiallyweak incomparison with its contractor, thegovernment’s interests maybe fostered by the contractor makingprogresspaymentsto thesubcontractor.', 21054:'if so, the agency shall try to arrange for the contractor to provide the progress payments. as a result, the', 21055:'need for the loan guarantee may be reduced or eliminated and the contractor would bear part or all of the', 21056:'risk of loss arising from the selection of the subcontractor. this page intentionally left blank. 32.36 subpart 32.4 advance payments', 21057:'for other than commercial acquisitions 32.403 subpart 32.4 advance payments for other than commercial acquisitions 32.400scope of subpart. this subpart', 21058:'provides policies and procedures for advance payments on prime contracts and subcontracts. it does not include policies and procedures for', 21059:'advance payments for the types of transactions listed in 32.404. this subpart does not apply to commercial advance payments, which', 21060:'are subject to subpart 32.2. 32.401 statutory authority. the agency may authorize advance payments in negotiated and sealed bid contracts', 21061:'if the action is appropriate under a 41 u.s.c. chapter 45; b 10 u.s.c. chapter 277; or c pub.l.85804 50', 21062:'u.s.c. 14311435 and executive order10789, november 14,1958 3 cfr1958 supp. pp. 7274 see subpart 50.1 for other applications of this', 21063:'statute. 32.402general. a a limitation on authority to grant advance payments under pub.l.85804 50 u.s.c. 14311435 is described at 50.1023b4.', 21064:'b advance payments may be provided on anytype of contract; however, the agency shall authorizeadvance payments sparingly. except for the', 21065:'contracts described in 32.403a and b, advance payment is the least preferred method of contract financing see 32.106 and generally', 21066:'they should not be authorized if other types of financing are reasonably available to the contractor in adequateamounts. loans and', 21067:'credit at excessiveinterest rates orother exorbitant charges, or loans from other government agencies, are not considered reasonably available financing. c', 21068:'if statutory requirements and standards for advance payment determinations aremet, thecontracting officer shall generally recommend that the agency authorize advance', 21069:'payments. 1 the statutory requirements are that i the contractor gives adequate security; ii the advance payments will not exceed', 21070:'the unpaid contract price see 32.410b, paragraph a2; and iii the agency head or designee determines, based on written findings,', 21071:'that the advance payment a is in the public interest under 32.401a or b; or b facilitates the national defense', 21072:'under 32.401c. 2 the standards for advance payment determinations are that ithe advance payments will not exceedthe contractor’s interim cash', 21073:'needs based on a analysis of the cash flow required for contract performance; b consideration of the reimbursement or other', 21074:'payment cycle; and c tothe extent possible, employment of thecontractor’s own working capital; ii the advance payments are necessary to', 21075:'supplement other funds or credit available to a contractor; iii the recipient is otherwise qualified as a responsible contractor; iv', 21076:'the government will benefit from performance prospects or there are other practical advantages; and v the case fits one or', 21077:'more of the categories described in 32.403. d if necessary, the agency mayauthorize advancepaymentsin addition to progress or partial payments', 21078:'on thesame contract see 32.5011c. e each agency that provides advance payments shall 1 place the responsibility for making findings', 21079:'and determinations, and for approval of contract terms concerning advance payments see 32.410, at an organizationallevel high enough to ensure', 21080:'uniform applicationof this subpart see the limitation at 50.1021b which also applies to advance payments authorized under pub.l.85804 50 u.s.c.', 21081:'14311435; and 2 establish procedures for coordination, before advance payment authorization, with the activity that provides contract financing support. f', 21082:'ifthe contract providesforadvance payments under pub.l.85804, the contracting officer shall ensure conformance with the requirements of 50.1037. 32.403 applicability. advance', 21083:'payments may be considered useful and appropriate for the following: federal acquisition regulation a contracts for experimental, research, or development', 21084:'work with nonprofit educational or research institutions. b contracts solely for the management and operation of governmentowned plants. c contracts', 21085:'for acquisition, at cost, of property for government ownership. d contracts of such a highly classified nature that the agency', 21086:'considers it undesirable for national security to permit assignment of claims under the contract. e contracts entered into with financially', 21087:'weak contractors whose technical ability is considered essential to the agency. in these cases,the agencyshallclosely monitor the contractor’s performanceand financialcontrols', 21088:'to reduce the government’s financial risk. f contracts for which a loan by a private financial institution is not practicable,', 21089:'whether or not a loan guarantee under this part is issued; for example, if 1 financing institutions will not assume', 21090:'a reasonable portion of the risk under a guaranteed loan; 2 loans with reasonable interest rates or finance charges are', 21091:'not available tothe contractor; or 3 contracts involve operations so remote from a financial institution that the institution could not', 21092:'be expected to suitably administer a guaranteed loan. g contracts with small business concerns, under which circumstances that make advance', 21093:'payments appropriate often occur but see 32.104b. h contracts under which exceptional circumstances make advance payments the most advantageous contract', 21094:'financing method for boththe government and the contractor. 32.404exclusions. a this subpart does not apply to advance payments authorized by', 21095:'law for 1 rent; 2 tuition; 3 insurance premiums; 4 expenses of investigations in foreign countries; 5 extension or connection', 21096:'of public utilities for government buildings or installations; 6 subscriptions to publications; 7 purchases of supplies or services in foreign', 21097:'countries, if i the purchase price does not exceed $15,000 or equivalent amount of the applicable foreign currency; and ii', 21098:'the advance payment is required by the laws or government regulations of the foreign country concerned; 8 enforcement of the', 21099:'customs or narcotics laws; or 9 othertypes of transactions excluded by agency procedures understatutory authority. b agencies may issue their', 21100:'own instructions to deal with advance payment items in paragraph a of this section authorized under statutes relevant to their', 21101:'agencies. 32.405applying pub.l.85804 to advance payments under sealed bid contracts. a actions that designated agencies may take to facilitate the', 21102:'national defense without regard to other provisions of law relating to contracts, as explained in 50.1011a, also include making advance', 21103:'payments. these advance payments may be made at or after award of sealed bid contracts, as well as negotiated contracts.', 21104:'b bidders may request advance payments before or after award, even if the invitation for bids does not contain an', 21105:'advancepayment provision. however, thecontracting officer shall reject anybid requiring that advance payments be provided as a basis for acceptance. c', 21106:'when advance payments are requested, the agency may 1 enter into the contract and provide for advance payments conforming to', 21107:'this part 32; 2 enter into the contract without providing for advance payments if the contractor does not actually need', 21108:'advance payments; or 3 deny award of the contract if the request for advance payments has been disapproved under 32.4092', 21109:'and funds adequate for performance arenot otherwise available to theofferor. 32.406 letters of credit. a thedepartment ofthe treasury treasury prescribesregulations', 21110:'and instructions covering the use oflettersof credit for advancepaymentsunder contracts. see treasury department circular1075 31 cfr part 205, and the', 21111:'implementing instructions in thetreasury financial manual, available inoffices providing financial advice and assistance. subpart 32.4 advance payments for other than', 21112:'commercial acquisitions 32.408 b if agencies provide advance payments to contractors, use of the following methods is required unless the', 21113:'agency has obtaineda waiver from the treasury department: 1 by letter of credit if the contracting agency expects to have', 21114:'a continuing relationship with the contractor for a year or more, with advances totaling at least $120,000 a year. 2', 21115:'by direct treasury check if the circumstancesdo not meet the criteria in paragraphb1 of this section. c if the agency', 21116:'has entered into multiple contracts or a combination of contracts and assistance agreements involving eligibility of a contractor for more', 21117:'than one letter of credit, the agency shall follow arrangements made under treasury procedures for 1 consolidating funding to the', 21118:'same contractor under one letter of credit or 2 replacing multiple letters of credit with a single letter of credit.', 21119:'d the letter of credit enables the contractor to withdraw government funds in amounts needed to cover its own disbursements', 21120:'of cash for contract performance. whenever feasible, the agency shall, under the direction and approval of the department of thetreasury,', 21121:'use aletter of credit method that requires the contractornot to withdraw the government funds untilthe contractor’s checks have been 1', 21122:'forwarded to the payees delay of drawdown technique, or 2 presentedto the contractor’sbank for payment checks paid technique see 31', 21123:'cfr205.3 and 205.4d. e thetreasury regulations provide for terminating the advance financing arrangement if the contractor is unwilling or unable', 21124:'to minimize the elapsed time between receipt of the advance and disbursement of the funds. in such cases, if reversion', 21125:'to normal payment methods is not feasible, the treasury regulationprovides for use of a workingcapital methodof advance; i.e., for limiting', 21126:'advances to 1 only the estimated disbursements for a given initial period; and 2 subsequently, for only actualcash disbursements31 cfr205.3k', 21127:'and 205.7. 32.407 interest. a except as provided in paragraph d of this section, the contracting officer shall chargeinterest on', 21128:'the daily unliquidated balance of all advance payments at the higher of 1 the published prime rate of the financial', 21129:'institution depository in which the special account see 32.4093 is established; or 2 the rate establishedby the secretary ofthe treasury', 21130:'under 50u.s.c. app.1215b2. b the interest rate for advance payments shall be adjusted for changes in the prime rate of', 21131:'the depository and the semiannual determination by the secretary of thetreasury under 50 u.s.c. app.1215b2. the contracting officer shall obtain', 21132:'data from the depository on changes in the interest rate during the month. interest shall be computed at the end', 21133:'of each month on the daily unliquidated balance of advance payments at the applicable daily interest rate. c interest shall', 21134:'be required on contracts that are for acquisition, at cost, of property for government ownership, if the contracts are awarded', 21135:'in combination with, or in contemplation of, supply contracts or subcontracts. d the agency head or designee may authorize advance', 21136:'payments without interest under the following types of contracts, if in the government’sinterest: 1 contracts for experimental, research, or development', 21137:'work including studies, surveys, and demonstrations in socioeconomic areas with nonprofit education or research institutions. 2 contracts solely for the', 21138:'management and operation of governmentowned plants. 3 costreimbursement contracts with governments, including state or local governments, or their instrumentalities. 4', 21139:'other classes of contracts, or unusual cases, for which the exclusion of interest on advances is specifically authorized by agency', 21140:'procedures. e if a contract provides for interestfree advance payments, thecontracting officer may require the contractor to charge interest on', 21141:'advances or downpayments to subcontractors and credit the government for the proceeds from the interest charges. interest rates shall be', 21142:'determinedas describedin paragraphs aandbof this section. thecontracting officer need not require the contractor to charge interest on an advance to', 21143:'asubcontractorthat isan institution ofthe kind described in paragraph d1 of this section. f the contracting officer shall not allow interestcharges,', 21144:'required by this 32.407, as reimbursable costs under cost reimbursement contracts, whether the interestcharge was incurred bythe prime contractor ora', 21145:'subcontractor. 32.408application for advance payments. a a contractor may apply for advance payments before or after the award of a', 21146:'contract. federal acquisition regulation b the contractorshallsubmit any advance payment request in writing to the contracting officer and provide the', 21147:'following information: 1 a reference to the contract if the request concerns an existing contract, or a reference to the', 21148:'solicitation if the request concerns a proposed contract. 2 a cash flow forecast showing estimated disbursements and receipts for the', 21149:'period of contract performance. if the application pertains to a type of contract described in 32.403a or b, the contractor', 21150:'shall limit the forecast to the contract to be financed by advance payments. 3 the proposed total amount of advance', 21151:'payments. 4 the name and address of the financial institution at which the contractor expects to establish a special account', 21152:'as depository for the advance payments. if advance payments in the form of a letter of credit are anticipated, the', 21153:'contractor shall identify the specific account at the financial institution to be used. this paragraph b4 is not applicable if', 21154:'an alternate method is used under agency procedures. 5 a description of thecontractor’sefforts to obtain unguaranteed private financing or a', 21155:'vloan see 32.301 under eligible contracts. this requirement is not applicable to the contract types described in 32.403a or b.', 21156:'6 otherinformation appropriate to an understanding of i the contractor’s financial condition and need, ii the contractor’s ability to perform', 21157:'thecontract without loss to the government, and iiifinancial safeguards needed to protect the government’s interest. ordinarily,if the contractis atype describedin', 21158:'32.403a or b, the contractor may limit the response to this paragraphb6 to information on the contractor’s reliability,technicalability,andaccounting system and', 21159:'controls. 32.409contracting officer action. afteranalysisof the contractor’s application and any appropriate investigation,the contracting officershallrecommend approval or disapproval and transmit the', 21160:'request and recommendation to the approving authority designated under 32.402e. 32.4091recommendation for approval. if recommending approval, the contracting officershalltransmit the', 21161:'following, under agency procedures, to the approving authority: a contract data, including 1 identification and date of the award; 2', 21162:'citation of the appropriation; 3 type and dollar amount of the contract; 4 items to be supplied, schedule of deliveries', 21163:'or performance, and status of any deliveries or performance; 5 the contract fee or profit contemplated; and 6 a copy', 21164:'of the contract, if available. b the contractor’s requestandsupporting information. c a report on the contractor’spastperformance, responsibility, technicalability, andplant capacity.', 21165:'d comments on 1 the contractor’s need for advance payments; and 2 potential government benefits from the contract performance. e', 21166:'proposed advance payment contract terms, including proposed security requirements. f the findings, determination, and authorization see 32.410. g the recommendation', 21167:'for approval of the advance payment request. h justification of any proposal for waiver of interest charges see 32.407. 32.4092recommendation', 21168:'for disapproval. if recommending disapproval, the contractingofficer shall,under agency procedures, transmit a the items prescribed in 32.4091a, b, and c;', 21169:'and b the recommendation for disapproval and the reasons. 32.4093security,supervision, andcovenants. a if advance payments areapproved, thecontracting officer shall enter', 21170:'intoan agreement with the contractor covering special accounts and suitable covenantsprotecting the government’s interest see 32.411. this requirement generally applies', 21171:'under all statutory authorities, but modified requirements applicable to certain specific cases are prescribed in paragraphs e through g of', 21172:'this section. subpart 32.4 advance payments for other than commercial acquisitions 32.410 b the agency shall 1 ensure that the', 21173:'amount of advancepaymentsdoes not exceed thecontractor’sfinancial needs, and 2 closely supervisethe contractor’s withdrawal offundsfrom special accounts in which the advance', 21174:'payments are deposited. c inthe terms of theagreement, the contractingofficer should provide for a paramount lien in favor of the', 21175:'government. this lien may supplement or replace other security requirements. the lien should cover 1 supplies being acquired; 2 any', 21176:'credit balance in the special account in which advance payments are deposited; and 3 all property that the contractor acquires', 21177:'for performing the contract, except to the extent to which the government otherwisehas valid title to the property. d security', 21178:'requirements varyto fit the circumstances of different cases. minimum security requirements are coveredby theclauses prescribed in the contract. the contractingofficer', 21179:'may supplementthese asnecessary ineach case for protection of the government’sinterest. examples of additional security terms are 1 personal or corporate', 21180:'endorsements or guarantees; 2 pledges of collateral; 3 subordination or standby of other indebtedness; 4 controls or limitations on profit', 21181:'distributions, salaries, bonuses or commissions, rentals and royalties, capital expenditures, creation of liens, retirement of stock or debt, and creation', 21182:'of additional obligations; and 5 advance payment bonds rarely required. e in an advance payment agreement with an instrumentality of', 21183:'the government, a state, a local government, or an agency or instrumentality of a state or localgovernment, thecontracting officer may', 21184:'omitthe requirement for deposit ofthe advances ina special account, if the official approving theadvance determines thatotheradequate security exists to protect', 21185:'thegovernment’s interest. f the requirements of this 32.4093do not apply when using lettersof credit if an agency’s procedures provide for', 21186:'1 the use under a costreimbursement contract offederal funds deposited in the contractor’s accountat a financial institution without the contractor', 21187:'acquiring title to the funds; and 2 the security of such deposit of public moneys in accordancewith governing regulations of', 21188:'the treasury department. g if a separate special account is not required; e.g., advance payment by a letter of credit,', 21189:'an agency may require a special account for an individual case, or classes of cases, if the circumstances warrant. 32.410findings,', 21190:'determination, and authorization. a each determination concerning advance payments shall be supported by written findings see 32.402c1iii. b the following', 21191:'is an example of the format and text of findings, determination, and authorization with alternative words, phrases, and paragraphs to', 21192:'be selected to conform to the circumstances involved: findings, determination, and authorization for advance payments findings a the undersigned hereby', 21193:'finds that: 1 the [insert the name of the contracting activity] and [insert the name of the contractor] have entered', 21194:'propose to enter into negotiated sealed bid contract no., dated . [summarize the specific facts and significant circumstances concerning the', 21195:'contract and the contractor, that, together with the other findings, will clearly support the determination below.] 2 advance payments in', 21196:'an amount not to exceed $ at any time outstanding in an aggregate amount not exceeding $, less the aggregate', 21197:'amounts repaid, or withdrawn by the government are required by the contractor to perform under the contract. the amount does', 21198:'not exceed the unpaid contract price or the estimated interim cash needs arising during the reimbursement cycle. 3 the advance', 21199:'payments are necessaryforprompt, efficient contract performance that willbenefit the government. 4 the proposed advance payment clause provides for security for', 21200:'the protection of the government. the clause requires that allpaymentswill be deposited in a special account at the contractor’s financial', 21201:'institution and that the government will have a paramount lien oni the credit balancein the specialaccount, iianysupplies contracted for, and', 21202:'iiiany material or other property acquired for performance of the contract. [insert the following, if applicable: the contractor’s financial management', 21203:'system provides for effective control over and accountability for all federal funds under governing regulations of the treasury department.an advance', 21204:'payment bond is required.] this security is considered adequate. federal acquisition regulation 5 advance payments are the onlyadequate means of', 21205:'financing available to the contractor, and the amount designated in 2 of this sectionis based, to the extent possible, on', 21206:'the useof the contractor’s own workingcapital in performing the contract. [insert paragraph6, 7, or 8, as applicable.] 6 the contractor', 21207:'is a nonprofit educational and research institution, and the contract is for experimental , research and development work. 7 the', 21208:'contract is solely for the management and operation of a governmentowned plant. 8 the following unusual facts and circumstances favor', 21209:'making advance payments to the contractor without interest: [list the pertinent facts and circumstances.] determination b based on the findings', 21210:'in paragraph a of this section, the undersigned determined that the making of the proposed advance payments, with interest at', 21211:'the rate of [insert the interest rate computed in accordance with 32.407 ] percent on the daily unliquidated balance of', 21212:'the advance payments, without interest, except as provided by the proposed advance payment clause, is in the public interest will', 21213:'facilitate the national defense. authorization c the advance payments, of which the amount at any time outstanding the aggregate amount,', 21214:'less the aggregate amounts repaid, or withdrawn by the government, shall not exceed $, are hereby authorized under 41 u.s.c.', 21215:'chapter 45, contract financing 10 u.s.c. chapter 277 the extraordinary contracting authority of government agencies in connection with national defense', 21216:'functions 50 u.s.c. 14311435 and executive order no.10789 of november 14,1958 3 cfr 1958 supp. pp. 7274 [or, if other,', 21217:'cite appropriate authority] on terms substantially as contained in the proposed advance payment clause, a copy an outline of which', 21218:'is annexed to this authorization the following terms: [insert the appropriate terms.] all prior authorizations for advance payments under contract', 21219:'no. are superseded. [signature] [name typed] [titleof authorized official] [each findings, determination, and authorization shall be individually prepared to fit', 21220:'the particular circumstances at hand.paragraphsa1, 2, 3 and 4 and paragraphs b and c shall be used in each case.', 21221:'if the contract is a for experimental, developmental or research work and with a nonprofit educational or research institution, or', 21222:'b only for management and operation of a governmentowned plant, paragraph a5 should not be included.if the advance payment is', 21223:'to be made without interest to the contractor, include paragraph a6, 7, or 8. if any advance payments have previously', 21224:'been authorized for the contract, include the final sentence of paragraph c. the alternate parenthetical wording or other modifications may', 21225:'be used as appropriate.the paragraphs actually used shall be renumbered sequentially.] 32.411agreement for special account at a financial institution. the', 21226:'contractingofficer mustuse substantially the following form of agreementfora special account for advance payments: agreement for special account this agreement is', 21227:'entered into this day of , 20, between the united states of america the government, representedby the contracting officer executing', 21228:'this agreement, [insert the name of the contractor], a [insert the name of the state of incorporation] corporation the contractor,', 21229:'and , a financial institution operating under the laws of , located at the financial institution. recitals a under date', 21230:'of , 20, the government and the contractor entered into contract no. , or a related supplemental agreement, providing for', 21231:'advance payments to the contractor. a copy of the advance payment termswas furnished to the financial institution. b the contract', 21232:'or supplemental agreement requires that amounts advanced to the contractor be deposited separate from thecontractor’s general or other funds, in', 21233:'a special account at a member bank of thefederal reserve system, any insured bank within the meaning of the act', 21234:'creating the federal deposit insurance corporation 12 u.s.c. 1811, or a credit union subpart 32.4 advance payments for other than', 21235:'commercial acquisitions 32.412 insured by the national credit union administration. the parties agree to deposit the amounts with the financial', 21236:'institution, which meets the requirement. c this special account is designated [insert the contractor’s name], [insert the name of the', 21237:'government agency] special account. covenants in consideration of the foregoing, and for other good and valuable considerations, the parties agree', 21238:'to the following conditions: a the government shall have a lien on the credit balance in the account to secure', 21239:'the repayment of all advance payments made to the contractor. thelien isparamount to any lien or claimof the financial institutionregardingthe', 21240:'account. b the financial institution is bound by the terms of the contract relating to the deposit and withdrawal of', 21241:'funds in the special account, but is not responsible for the application of funds withdrawn from the account. the financial', 21242:'institution shall act on writtendirections from the contracting officer, the administering office, ora duly authorized representative of either. the financial', 21243:'institution is not liableto any party to this agreement for any actionthat complies with the written directions. any written directions', 21244:'received by the financial institution through the contracting officer on [insert the name of the agency] stationery and purporting to', 21245:'be signed by, orby the direction of ordulyauthorized representative, shall be, as far as the rights, duties, and liabilities of', 21246:'the financial institution are concerned, considered as being properly issued and filed with the financial institution by the [insert the', 21247:'name of the agency]. c the government, or its authorized representatives, shall have access to the books and records maintained', 21248:'by the financial institution regarding the special account at all reasonable times and for all reasonable purposes, including but not', 21249:'limited to, the inspection or copying of the books and records and any and all pertinent memoranda, checks, correspondence, or', 21250:'documents. the financial institution shall preserve the books and records for a period of 6 years after the closing of', 21251:'this special account. d in the event of the service of any writ of attachment, levy of execution, or commencement', 21252:'of garnishment proceedings regarding the special account, the financial institution will promptly notify [insert the name of the administering office].', 21253:'e while this special account exists, the financial institution shall inform the government each month of the financial institution’s published', 21254:'prime interestrate and changes to the rate during themonth. the financial institutionshallgive this information tothe contracting officeron the lastbusiness day', 21255:'of themonth. [this covenant will not be included in the special account agreements covering interestfree advance payments.] each of the', 21256:'parties to this agreement has executed the agreement on , 20. [signatures and official titles] 32.412contract clause. a thecontracting officer', 21257:'shall insert the clause at 52.23212, advance payments, in solicitations and contracts under which the government will provide advance payments,', 21258:'except as provided in 32.412b. b if the agencydesiresto waive the countersignature requirement because of the contractor’s financial strength,good performancerecord,', 21259:'and favorable experience concerning cost disallowances, the contracting officershalluse the clause with its alternate i. c if a costreimbursement contract', 21260:'iscontemplated,the contracting officershalluse the clausewith its alternateii. d if the agencyconsiders amorerapid liquidation appropriate, the contracting officershalluse the clause withits', 21261:'alternateiii. e if the agency provides advance payments under the contract atno interest to theprimecontractor, the contracting officer shall use', 21262:'theclause with itsalternateiv. f if the requirement for a special account is eliminated in accordance with 32.4093e or g, thecontracting', 21263:'officer shall insert in the solicitation or contract the clause set forth in alternate v of 52.23212, advance payments, instead', 21264:'of the basic clause. this page intentionally left blank. 32.48 subpart 32.5 progress payments based on costs 32.5013 subpart 32.5', 21265:'progress payments based on costs 32.500scope of subpart. this subpart prescribes policies, procedures, forms, solicitation provisions, and contract clauses for', 21266:'providing contract financing through progress payments based on costs. this subpart does not apply to a payments under costreimbursement contracts,', 21267:'but see 32.110 for progress payments made to subcontractors under costreimbursement prime contracts; or b contracts for construction orforshipbuilding or', 21268:'ship conversion, alteration, or repair, whenthe contracts providefor progress payments based on a percentage or stage of completion. 32.501general. progress', 21269:'payments may be customary or unusual. customary progress payments are those made under the general guidance in this subpart, using', 21270:'the customary progress payment rate, the cost base, and frequency of payment established in the progress payments clause, and either', 21271:'the ordinary liquidation method or the alternate method as provided in subsections 32.5038 and 32.5039. any other progress payments are', 21272:'considered unusual, and may be used only in exceptional cases when authorized in accordance with subsection 32.5012. 32.5011customary progress payment', 21273:'rates. a the customary progress payment rate is 80 percent, applicable to the total costs of performing the contract. the', 21274:'customary rate for contracts with small business concerns is 85 percent. b the contractingofficer must 1 consider any rate higher', 21275:'than those permitted in paragraph a of this section an unusual progress payment; and 2 not include a higher rate', 21276:'in a contract unless advance agency approval is obtained as prescribed in 32.5012. c when advancepayments andprogresspaymentsare authorized underthe same', 21277:'contract,the contracting officermust not authorize a progress payment rate higher than the customary rate. d in accordance with 10 u.s.c.', 21278:'3804b and 41 u.s.c. 4504b, the limit for progress payments is 80 percent on work accomplishedunder undefinitized contract actions. thecontracting', 21279:'officer must not authorizea higher rate under unusual progress payments or other customary progress payments for the undefinitized actions. 32.5012unusual', 21280:'progress payments. a thecontracting officer may provide unusual progress payments only if 1 the contract necessitates predelivery expenditures thatare largein', 21281:'relation to contractprice and in relation to the contractor’s workingcapital and credit; 2 the contractor fully documents an actual need', 21282:'to supplement any private financing available, including guaranteed loans; and 3 the contractor’s requestis approvedby the head ofthe contracting activityor', 21283:'adesignee. in addition, see 32.5022. b the excess of the unusual progress payment rate approved over the customary progress payment', 21284:'rate should be the lowest amount possible under the circumstances. c progress payments will not be considered unusual merely because', 21285:'they are on letter contracts or the definitive contracts that supersede letter contracts. 32.5013 contract price. a for the purpose', 21286:'of making progress payments and determining the limitation on progress payments, the contract price shall be as follows: 1 under', 21287:'firmfixed price contracts, the contract price is the current amount fixed by the contract plus the nottoexceed amount for any', 21288:'unpriced modifications. 2 if the contract is redeterminable or subject to economic price adjustment, the contract price is the initial', 21289:'price until modified. 3 under a fixedprice incentive contract, the contract price is the target priceplus the nottoexceed amount of', 21290:'unpriced modifications. however, if the contractor’s properly incurredcosts exceed the target price, thecontracting officer may provisionally increase the price up', 21291:'to the ceiling or maximum price. 4 under a letter contract, the contract price is the maximum amount obligated by', 21292:'the contract as modified. 32.5014 federal acquisition regulation 5 under an unpriced order issued against a basic ordering agreement, the', 21293:'contract price is the maximum amount obligated by the order, asmodified. 6 any portion of the contract specifically providing for', 21294:'reimbursement of costs only shall be excluded from the contract price. b the contractingofficer shall not make progress payments or', 21295:'increase the contract price beyond the funds obligated under the contract, as amended. 32.5014 [reserved] 32.5015other protective terms. if the', 21296:'contracting officer considers it necessary for protection of the government’s interest, protective terms such as the following may be used', 21297:'in addition to the progress payments clause of the contract: a personal or corporate guarantees. b subordinations or standbys of', 21298:'indebtedness. c special bank accounts. d protective covenants of the kinds in paragraph p of the clause at 52.23212, advance', 21299:'payments. e a provision, included in the solicitation and resultant contract when first article testing is required see subpart 9.3,', 21300:'limiting progress payments on first article work by a stated amount or percentage. 32.502 preaward matters. this section covers matters', 21301:'that generally are relevant only before contract award. this does not preclude taking actions discussed here after award, if appropriate;', 21302:'e.g., postaward addition of a progress payments clause for consideration. 32.5021use of customary progress payments. the contractingofficer may use aprogress', 21303:'payments clausein solicitations and contracts, in accordance with this subpart. the contractingofficer mustreject as nonresponsive bids conditioned on progress payments', 21304:'when the solicitation didnot provide for progress payments. 32.5022 contract finance office clearance. the contractingofficer shall obtain the approval ofthe', 21305:'contract finance office or other offices designated under agency procedures before taking any of the following actions: a providing a', 21306:'progress payment rate higher than the customary rate see 32.5011. b deviating from the progress payments terms prescribed in this', 21307:'part. c providing progress payments to a contractor 1 whose financial condition is in doubt; 2 who has had an', 21308:'advance payment request or loan guarantee denied for financial reasons or approved but withdrawn or lapsed within the previous 12', 21309:'months; or 3 who is named in the consolidated list of contractors indebted to the united states known commonly as', 21310:'the holdup list. 32.5023solicitation provisions. a thecontracting officer shall insert the provision at 52.23213, notice of progress payments, in invitations', 21311:'for bids and requests for proposals that include a progress payments clause. b 1 under the authority of the statutes', 21312:'cited in 32.101, an invitation for bids may restrict the availability of progress payments tosmall business concernsonly. 2 the contractingofficer', 21313:'shall insertthe provisionat 52.23214, notice of availability ofprogress payments exclusively for small business concerns, in invitations for bids if it', 21314:'is anticipated that i both small business concerns and others may submit bids in response to the same invitation; and', 21315:'ii only the small business bidders would need progress payments. c thecontracting officer shall insert the provision at 52.23215, progress', 21316:'payments not included, in invitations for bids if the solicitation will not contain one of the provisions prescribed in paragraphs', 21317:'a and b of this section. subpart 32.5 progress payments based on costs 32.5033 32.5024 contract clauses. a 1 insert', 21318:'the clause at 52.23216, progress payments, in i solicitations that may result in contracts providing for progress payments based on', 21319:'costs; and ii fixedprice contracts under which the government will provide progress payments based on costs. 2 if advance agency', 21320:'approval has been given in accordance with 32.5011, thecontracting officer may substitute a different customary rate for other than small', 21321:'business concerns for the progress payment and liquidation rate indicated. 3 if an unusual progress payment rate is approved for', 21322:'the prime contractor see 32.5012, substitute the approved rate for the customary rate in paragraphs a1, a6, and b of', 21323:'the clause. 4 if the liquidation rate is changed from the customary progress payment rate see 32.5038 and 32.5039, substitute', 21324:'the new rate for the rate in paragraphs a1, a6, and b of the clause. 5 if an unusual progress', 21325:'payment rate is approved for a subcontract see 32.504c and 32.5012, modify paragraph j6 of the clause to specify thenew', 21326:'rate, the name of the subcontractor, and that the new rateshallbe used for that subcontractor in lieu of the customary', 21327:'rate. b if the contractor is a small business concern, use the clause with its alternatei. c if the contract', 21328:'is a letter contract, use the clause with its alternateii. d if the contractor is not a small business concern,', 21329:'and progress payments are authorized under an indefinitedelivery contract, basic ordering agreement, or their equivalent, use the clause with its', 21330:'alternateiii. e if the nature of the contract necessitates separate progress payment rates for portions of work that are clearly', 21331:'severable and accounting segregation would be maintained e.g., annual production requirements, describe the application of separate progress payment rates in', 21332:'a supplementary special provision within the contract. the contractor must submit separate progress payment requests and subsequent invoices for the', 21333:'severable portions of work in order to maintain accounting integrity. 32.503postaward matters. this section covers matters that are generally relevant', 21334:'only after award of a contract. this does not preclude taking actions discussed here before award, if appropriate; e.g., preaward', 21335:'review of accounting systems and controls. 32.5031 [reserved] 32.5032supervision of progress payments. a theextent of progress payments supervision, by prepayment', 21336:'review or periodic review, should varyinverselywith the contractor’s experience, performancerecord, reliability, quality of management, and financial strength, and with the', 21337:'adequacy of the contractor’s accounting system and controls. supervision shall be of a kind and degree sufficient to provide timely', 21338:'knowledge ofthe need for,and timely opportunityfor, any actions necessary to protect government interests. b the administering office must keep itself', 21339:'informed ofthe contractor’s overall operationsand financialcondition, since difficulties encountered andlosses suffered in operations outside theparticular progress payment contractmay affect adversely', 21340:'the performance of that contract and the liquidation of the progress payments. c for contracts with contractors 1 whose financial', 21341:'condition is doubtful or not strong in relation to progress payments outstanding or to be outstanding; 2 with management of', 21342:'doubtful capacity; 3 whose accounting controls are found by experience to be weak; or 4 experiencing substantialdifficulties in performance, full', 21343:'information on progress under the contract involved including the status of subcontracts and on the contractor’s other operations and overall', 21344:'financial conditionshouldbe obtainedand analyzed frequently, witha view toprotecting the government’s interests betterandtakingsuch action as may be proper to make contract', 21345:'performance more certain. d so far as practicable, all cost problems, particularly those involving indirect costs, that are likely to', 21346:'create disagreements in future administration of the contract should be identified and resolved at the inception of the contract see', 21347:'31.109. 32.5033initiationof progress payments and review ofaccounting system. a for contractorsthat the administrativecontracting officer aco has found by previous experience', 21348:'orrecent audit review within the last 12 months to be 32.5034 federal acquisition regulation 1 reliable, competent, and capable of', 21349:'satisfactory performance; 2 possessed of an adequate accounting system and controls; and 3 in sound financial condition, progress payments in', 21350:'amounts requested by the contractor should be approved as a matter of course. b for all other contractors, the aco', 21351:'shall not approve progress payments before determining 1 that i the contractor will be capable of liquidating any progress payments', 21352:'or ii the government is otherwise protected against loss by additional protective provisions, and2that thecontractor’saccountingsystem and controls are adequate for', 21353:'proper administration of progress payments. the services of the responsible audit agency or office should be used to the greatest', 21354:'extent practicable. however, if the auditorso advises, a complete audit may not be necessary. 32.5034approval of progress payment requests. a', 21355:'when thereliability of thecontractor and the adequacyof the contractor’s accounting system and controlshavebeen established see 32.5033 of this section the', 21356:'aco may,in approving any particular progresspayment request including initial requestson new contracts, rely upon thataccountingsystem and upon the contractor’s certification,', 21357:'withoutrequiring audit or review of the request before payment. b the aco should not routinely askforaudits of progresspayment requests. however,', 21358:'when thereis reason to 1 questionthe reliability oraccuracy of the contractor’s certification;or 2 believe that the contract will involve a', 21359:'loss, the aco should ask for a review or audit of the request before payment is approved or the request', 21360:'is otherwise disposed of. c when there is reason to doubt the amount of a progress payment request, only the', 21361:'doubtful amount should be withheld, subject to later adjustment after review or audit; any clearly proper and due amounts should', 21362:'be paid without awaiting resolution of the differences. 32.5035administration ofprogress payments. a whilethe aco may, in approvingprogresspayment requests under 32.5033', 21363:'of this section, rely on the contractor’s accounting system and certification without prepayment review, postpayment reviews including audits when considered', 21364:'necessary shall be made periodically,or when considereddesirable by theaco to determine the validity of progress payments already made and expected', 21365:'to be made. b these postpayment reviews or audits shall, as a minimum, include a determination of whether or not', 21366:'1 the unliquidated progress payments are fairly supported by the value of the work accomplished on the undelivered portion of', 21367:'the contract; 2 the applicable limitation on progress payments in the progress payments clause has been exceeded; 3 i the', 21368:'unpaid balance of the contract price will be adequate to cover the anticipated cost of completion; or ii the contractor', 21369:'has adequate resources to complete the contract; and 4 there is reasonto doubt the adequacy and reliability of the contractor’s', 21370:'accounting systemandcontrols and certification. c under indefinitedeliverycontracts, the contracting officershouldadminister progress payments made under each individual order as if the', 21371:'order constituted a separate contract, unless agency procedures provide otherwise. when the contract will beadministered byan agencyother thanthe awarding agency,', 21372:'the contractingofficer shall coordinate with the contract administrationoffice if the awarding agency wantsthe administration of progress payments tobe on a', 21373:'basis other than orderbyorder. 32.5036suspensionor reductionof payments. a general. the progress payments clause provides a government right to reduce or', 21374:'suspend progress payments, or to increase the liquidation rate, under specified conditions. these conditions and actions are discussed in paragraphs', 21375:'b through g of this subsection. 1 the contractingofficer shall take these actionsonlyin accordance with thecontract terms and never precipitatelyor', 21376:'arbitrarily. these actions should be taken only after i notifying the contractor of the intended action and providing an opportunity', 21377:'for discussion; iievaluating theeffect of the action on the contractor’s operations, basedon the contractor’s financial condition, projected cash requirements, and', 21378:'the existing or available credit arrangements; and iii considering the general equities of the particular situation. subpart 32.5 progress payments', 21379:'based on costs 32.5036 2 the contractingofficer shall take immediate unilateral action only if warrantedby circumstances suchas overpayments or unsatisfactory', 21380:'contract performance. 3 in all cases,the contracting officer shall i act fairly and reasonably; ii base decisions on substantial evidence;', 21381:'and iii document the contract file. findings made under paragraph c of the progress payments clause shall be in writing.', 21382:'b contractor noncompliance. 1 the contractor must comply with all material requirements of the contract. this includes the requirement to', 21383:'maintain an efficient and reliable accounting system and controls, adequate for the proper administration of progress payments. if the system', 21384:'or controls are deemed inadequate, progress payments shall be suspended or theportion of progress payments associated with the unacceptableportion of', 21385:'the contractor’s accounting system shall be suspended until the necessary changes have been made. 2 if the contractor fails to', 21386:'comply with the contractwithout fault or negligence,the contracting officerwill not take action permitted by paragraph c1 of the progress payments', 21387:'clause, other than to correct overpayments and collect amounts due from the contractor. c unsatisfactory financial condition. 1 if thecontracting', 21388:'officer finds that contract performance including full liquidationof progress paymentsis endangeredby the contractor’s financial condition, or bya failure to make', 21389:'progress, thecontracting officer shall requirethe contractor to make additional operating or financial arrangements adequate for completing the contract without loss', 21390:'to the government. 2 if the contracting officer concludes that further progress payments would increasethe probable loss to the government,', 21391:'thecontracting officer shall suspend progress payments and all other payments until the unliquidated balance of progress payments is eliminated. d', 21392:'excessive inventory. if the inventory allocated to the contract exceeds reasonable requirements including a reasonable accumulation ofinventoryforcontinuity of operations, the', 21393:'contracting officer should, in addition to requiring thetransfer of excessive inventory from the contract, take oneor more of the following', 21394:'actions,as necessary,to avoid or correct overpayment: 1 eliminate the costs of the excessive inventory from the costs eligible for progress', 21395:'payments, with appropriate reduction in progress payments outstanding. 2 apply additional deductions to billings for deliveries increase liquidation. e delinquency', 21396:'in payment of costs of performance. 1 if the contractor is delinquent in paying the costs of contract performancein the', 21397:'ordinary course of business, thecontracting officer shall evaluate whether the delinquency iscaused by anunsatisfactory financial conditionand,if so, shall apply the', 21398:'guidancein paragraph c of thissection. if the contractor’s financial condition is satisfactory, the contracting officershallnot denyprogress paymentsif the contractor agrees', 21399:'to i cure the payment delinquencies; iiavoidfurther delinquencies;and iii make additional arrangements adequate for completing the contract without loss to', 21400:'the government. 2 if the contractor has, in good faith, disputed amounts claimed by subcontractors, suppliers, or others, the contracting', 21401:'officer shall notconsider the payments delinquent untilthe amounts due areestablished by the partiesthroughlitigation or arbitration. however, theamountsshallbe excluded from costs', 21402:'eligible for progress payments solongas they are disputed. 3 determinations of delinquency in making contributions under employee pension, profit sharing,', 21403:'or stock ownership plans, and exclusion of costs for such contributions from progress payment requests, shall be in accordance with', 21404:'paragraph a3 of the clause at 52.23216, progress payments, without regard to the provisions of 32.5036. f fair value of', 21405:'undelivered work. progress payments must be commensurate with the fair value of work accomplished in accordance withcontract requirements. the contracting', 21406:'officer must adjust progress payments when necessary to ensure that the fair value of undelivered work equals or exceeds the', 21407:'amount of unliquidated progress payments. on loss contracts, the application of a loss ratio as provided at paragraph g of', 21408:'this subsection constitutes this adjustment. g loss contracts. 1 if the sum of the total costs incurred under a contract', 21409:'plus the estimated costs to complete the performanceare likely to exceed the contract price, thecontracting officer shall computea loss ratio', 21410:'factor and adjust future progress payments to exclude the element of loss. the loss ratio factor is computed as follows:', 21411:'i revise the current contract price used in progress payment computations the current ceiling price under fixed price incentive contracts', 21412:'to include the nottoexceed amount for any pending change orders and unpriced orders. ii divide the revised contract price by', 21413:'the sum of the total costs incurred to date plus the estimated additional costs of completing the contract performance. 32.5036', 21414:'federal acquisition regulation 2 if the contracting officer believes aloss is probable, future progress paymentrequests shall be modified as follows:', 21415:'i the contract price shall be the revised amount computed under paragraph g1i of this section. ii the total costs', 21416:'eligible for progress payments shall be the product of a the sum of paid costs eligible for progress payments times;', 21417:'b the loss ratio factor computed under paragraph g1ii of this section. iii the costs applicable to items delivered, invoiced,', 21418:'and accepted shall not include costs in excess of the contract price of the items. 3 the contractingofficer may use', 21419:'audit assistance, technicalservices, management reports, and other sources of pertinent data to evaluate progress payment requests. if the contracting officer', 21420:'concludes that the contractor’s figures inthe contractor’s progress paymentrequest are notcorrect, the contracting officer shall i in the manner prescribed', 21421:'in paragraph g4 of this section, prepare a supplementary analysis to be attached to thecontractor’srequest; iiadvise the contractor in writing', 21422:'of the differences; and iii adjust all further progress payments in accordance with paragraph g1 of this section, using the', 21423:'contracting officer’s figures, until the difference is resolved. 4 the following is an example of the supplementary analysis required in', 21424:'paragraph g3 of this subsection: section i: contract price $2,850,000 change orders and unpriced orders to extent funds have been', 21425:'obligated $150,000 revised contract price $3,000,000 section ii: total costs incurred to date $2,700,000 estimated additional costs to complete $900,000', 21426:'total costs to complete $3,600,000 total costs eligible for progress payments $2,700,000 loss ratio factor ×83.3% recognized costs for progress', 21427:'payments $2,249,100 progress payment rate ×80.0% alternate amount to be used $1,799,280 section iii: factored costs of items delivered $750,000', 21428:'recognized costs applicable to undelivered items $2,249,100–$750,000 $1,499,100 this amount must be the same as the contract price of the', 21429:'items delivered. subpart 32.5 progress payments based on costs 32.50310 32.5037 [reserved] 32.5038 liquidation ratesordinary method. the government recoups progress', 21430:'payments through the deduction of liquidations from payments that would otherwise be due to the contractorforcompleted contract items. to determine', 21431:'the amount of the liquidation, thecontracting officer applies a liquidation rate to the contract price of contract items delivered and', 21432:'accepted. the ordinary method is that the liquidation rateis the same as the progress paymentrate. at the beginning ofa contract,', 21433:'thecontracting officer must usethismethod. 32.5039 liquidation ratesalternate method. a the liquidation rate determined under 32.5038 shall apply throughout the period', 21434:'of contract performance unless the contracting officeradjuststhe liquidationrate underthe alternate method in this 32.5039. the objective of the alternate liquidation', 21435:'rate method is to permit the contractor to retain the earned profit element of the contract prices for completed items', 21436:'in the liquidation process. the contracting officer may reduce the liquidation rate if 1 the contractor requests a reduction in', 21437:'the rate; 2 the rate has not been reduced in the preceding 12 months; 3 the contract delivery schedule extends', 21438:'at least 18 months from the contract award date; 4 data on actual costs are available i for the products', 21439:'delivered, or ii if no deliveries have been made, for a performance period of at least 12 months; 5 the', 21440:'reduced liquidation rate would result in the government recouping under each invoice the full extent of the progress payments applicable', 21441:'to the costs allocable to that invoice; 6 the contractor would not be paid for more than the costs of', 21442:'items delivered and accepted less allocable progress payments and the earned profit on those items; 7 the unliquidated progress payments', 21443:'would not exceed the limit prescribed in paragraph a5 of the progress payments clause; 8 the parties agree on an', 21444:'appropriate rate; and 9 the contractoragrees tocertifyannually,or more often if requested by the contracting officer, that the alternate rate continues', 21445:'to meet the conditions of subsections5, 6, and 7 of this section.the certificate must be accompanied by adequate supporting information.', 21446:'b the contractingofficer shall change the liquidation rate in the followingcircumstances: 1 the rate shall be increased for both previous', 21447:'and subsequent transactions, if the contractor experiences a lower profit rate than the rate anticipated at the time the liquidation', 21448:'rate was associated with contract items already delivered, as well as subsequent progress payments. 2 the rate shall be increased', 21449:'ordecreasedin keepingwith the successive changes tothe contract price or target profit when ithe targetprofit is changed under a fixedprice incentive', 21450:'contract with successive targets; or ii a redetermined price involves a change in the profit element under a contract with', 21451:'prospective price redetermination at stated intervals. c whenever the liquidation rate is changed, the contracting officer shall issue a contract', 21452:'modification to specify thenew rate in the progress payments clause.adequate consideration for these contract modifications is provided by the consideration', 21453:'included in the initial contract.the parties shall promptly make the payment or liquidation required in the circumstances. 32.50310 establishing alternate', 21454:'liquidation rates. a thecontracting officer must ensure thatthe liquidationrate is 1 high enough to result in government recoupment of the', 21455:'applicable progress payments on each billing; and 2 supported bydocumentation includedin the administration office contractfile. b the minimum liquidation rate', 21456:'is the expected progress payments divided by the contract price.each of these factors is discussed below: 1 the contractingofficer mustcompute', 21457:'theexpected progress payments by multiplyingthe estimated cost of performing the contract by the progress payment rate. 2 for purposes of', 21458:'computing the liquidation rate, the contracting officer may adjust theestimated cost and the contract price to include the estimated value', 21459:'of any work authorized but not yet priced and any projected economic 32.50311 federal acquisition regulation adjustments; however, the contractingofficer’s', 21460:'adjustment must not exceed the government’s estimate of the price ofall authorized work or the funds obligated for the contract.', 21461:'3 the following are examples of the computation. assuming an estimated price of $2,200,000 and total estimated costs eligible for', 21462:'progress payments of $2,000,000: i if the progress payment rate is 80 percent, the minimum liquidation rate should be 72.7', 21463:'percent, computed as follows: ii if the progress payment rate is 85 percent, the minimum liquidation rate should be 77.3', 21464:'percent, computed as follows: 4 minimum liquidation rates will generally be expressed to tenths of apercent. decimals between tenths will', 21465:'be rounded up to the next highest tenth not necessarily the nearest tenth, since rounding down would produce a rate', 21466:'below the minimum rate calculated. 32.50311adjustments for price reduction. a if a retroactive downward price reduction occurs under a redeterminable', 21467:'contract that provides for progress payments, thecontracting officer shall 1 determine the refund due and obtain repayment from the contractor', 21468:'for the excess of payments made for delivered items over amounts due as recomputed at the reduced prices; and 2', 21469:'increase the unliquidated progress payments amount for overdeductions made from the contractor’s billings for items delivered. b the contractingofficer shall', 21470:'also increase theunliquidatedprogress paymentsamount if the contractormakes an interim or voluntary price reduction under a redeterminable or incentive contract. 32.50312', 21471:'maximum unliquidated amount. a thecontracting officer shall ensure that any excess of the unliquidated progress payments overthe contractual limitation in', 21472:'paragraph a of the progress payments clause in the contract is promptly corrected through one or more of the following', 21473:'actions: 1 increasing the liquidation rate. 2 reducing the progress payment rate. 3 suspending progress payments. b the excess described', 21474:'in paragraph a of this section is most likely to arise under the following circumstances: 1 the costs of performance', 21475:'exceed the contract price. 2 the alternate method of liquidation see 32.5039is used and the actual costs of performance exceed', 21476:'the cost estimates used to establish the liquidation rate. 3 the rate of progress or the quality of contract performanceis', 21477:'unsatisfactory. 4 the rate of rejections, waste, or spoilage is excessive. c as required, the services ofthe responsible audit agency', 21478:'or officeshouldbe fully utilized, along with the services of qualified cost analysis and engineering personnel. 32.50313 [reserved] 32.50314 protection ofgovernment', 21479:'title. a since the progress payments clause gives the government title to all of the materials, workinprocess, finished goods, and', 21480:'other items of property described in paragraph d of the progress payments clause, under the contract under which progress payments', 21481:'have been made, the aco must ensure that the government title to these inventories is not compromised subpart 32.5 progress', 21482:'payments based on costs 32.504 by other encumbrances. ordinarily, the aco, in the absenceof reason tobelieveotherwise, may rely upon the', 21483:'contractor’s certification contained in the progress payment request. b if the acobecomes aware of anyarrangement orcondition thatwouldimpair the government’s title', 21484:'tothe property affected byprogresspayment, the aco shall require additional protective provisions see 32.5015 to establish and protect thegovernment’s title. c', 21485:'theexistence of any such encumbrance is aviolation ofthe contractor’s obligations under the contract, andthe aco may, if necessary, suspendor reduceprogresspaymentsunder', 21486:'theterms ofthe progress payments clause covering failure to comply with any material requirement of the contract. in addition, if the', 21487:'contractor fails to disclose an existing encumbrance in the progress payments certification, the aco should consult with legal counsel concerning', 21488:'possible violation of 31 u.s.c.3729, the false claims act. 32.50315 application of government title terms. a property to which the', 21489:'government obtains title by operation of the progress payments clause solely is not, as a consequence, governmentfurnishedproperty. b although property', 21490:'title is vested in the government under the progress payments clause, the acquisition, handling, and disposition of certain types of', 21491:'property are governed by 1 the clause at 52.2451, government property; and 2 the termination clauses at 52.249, for termination', 21492:'inventory. c the contractor may sell or otherwise dispose of current production scrap in the ordinary course of business on', 21493:'its own volition, even if titlehas vested in the government underthe progress payments clause. the contracting officershallrequire the contractor to', 21494:'credit the costs of the contract performance with the proceeds of the scrap disposition. d when the title to materials', 21495:'or other inventories is vested in the government under the progress payments clause, the contractor may transfer the inventory items', 21496:'from the contract for its own use or other disposition only if, and on terms, approved by thecontracting officer. the', 21497:'contractor shall 1 eliminate the costs allocable to the transferred property from the costs of contract performance, and 2 repay', 21498:'or credit to the government an amount equal to the unliquidated progress payments, allocable to the transferredproperty. e if excess', 21499:'property remains after the contract performance is complete and all contractor obligations under the contract are satisfied, including full liquidation', 21500:'of progress payments, the excess property is outside the scope of the progress payments clause. therefore, the contractor holds title', 21501:'to it. 32.50316 risk of loss. a under the progress payments clause, and except for normal spoilage, the contractor bears', 21502:'the risk of loss for government property under the clause, even though title is vested in the government, unless the', 21503:'government has expressly assumed this risk. the clauses prescribed in this regulation related to progress payments, default, and terminations do', 21504:'not constitute a government assumption of this risk. b if a loss occurs in connection with property for which the', 21505:'contractor bears the risk, the contractor is obligated to repay to the government the amount ofunliquidatedprogress paymentsbased on costsallocableto the', 21506:'property. c the contractor is not obligated to pay for the loss of property for which the government has assumed', 21507:'the risk of loss. however, a serious lossmay impedethe satisfactoryprogress of contract performance, so thatthe contracting officermay need to act', 21508:'under paragraph c5 of the progress payments clause. 32.504 subcontracts under prime contractsproviding progress payments. a subcontracts may include either', 21509:'performancebased payments, provided they meet the criteria in 32.1003, or progress payments, provided they meet the criteria in subpart 32.5', 21510:'for customary progress payments, but not both. subcontracts for commercial purchases may include commercial product or commercial service purchase financing', 21511:'terms, provided they meet the criteria in 32.2021. b the contractor’s requests for progress payments may include the full amount', 21512:'of commercial productor commercial servicepurchase financingpayments, performancebased payments, or progress payments to asubcontractor, whether paid or unpaid, provided that unpaid', 21513:'amounts are limited to amounts determined due and that the contractor will pay 1 in accordance with the terms and', 21514:'conditions of a subcontract or invoice; and 2 ordinarily within 30days of the submission of the contractor’s progress payment request', 21515:'tothe government. federal acquisition regulation c if the contractor is considering making unusualprogress paymentsto a subcontractor, the partieswill be guided', 21516:'by the policies in 32.5012.if the governmentapproves unusual progress payments for the subcontract, the contractingofficer must issue a contract modification', 21517:'to specify the new rate in paragraph j6 of the clause at 52.23216, progress payments, in the prime contract. this', 21518:'will allow the contractor to include the progress payments to the subcontractor in the cost basis for progress payments by', 21519:'the government. this modification is not a deviation and does not require the clearance prescribed in 32.5022b. d the contractor', 21520:'has a duty to ensure that financing payments to subcontractors conform to the standards and principles prescribed in paragraph j', 21521:'of the progress paymentsclause in the prime contract. althoughthe contracting officer should, to the extent appropriate, review the subcontract as', 21522:'part of the overall administration of progress payments in the prime contract, there isno specialrequirementforcontracting officer review orconsent merely because', 21523:'the subcontract includes financing payments, except as provided inparagraph cof this section. however, the contractingofficer mustensure that the contractor has', 21524:'installed the necessary management control systems, including internal audit procedures. e when financing payments are in the form of progress', 21525:'payments, the progress payments clause at 52.23216 requires that the subcontract include the substance of the progress payments clause in', 21526:'the prime contract, modified to indicate that the contractor, not thegovernment,awards the subcontract and administers the progresspayments. thefollowing exceptions apply', 21527:'to wording modifications: 1 the subcontract terms on title to property under progress payments shall provide for vesting of title', 21528:'in the government, not the contractor,as in paragraph d of the progresspayments clause in the prime contract. areference tothe contractor', 21529:'may, however, besubstituted for government in paragraphd2iv of the clause. 2 in the subcontract terms on reports and access to', 21530:'records, the contractor shall not delete the references to contracting officer and government in adapting paragraphgof the progress payments clause', 21531:'in thecontract, but may expand the terms as follows: ithe term contracting officer may be changed to contracting officeror prime', 21532:'contractor. iithe term the government may be changedto the government or prime contractor. 3 the subcontract special terms regarding default', 21533:'shall include paragraph h of the progress payments clause in the contract through its subdivision i. the rest of paragraph', 21534:'h is optional. f when financing payments are in the form of performancebased payments, the performancebased payments clause at 52.23232', 21535:'requires that the subcontract terms include the substance of the performancebased payments clause, modified to indicate that the contractor, not', 21536:'the government, awards the subcontractandadministers the performancebasedpayments, and include appropriately worded modifications similar to those noted in paragraph e of', 21537:'this section. g when financing payments are in the form of commercial product or commercial service purchase financing, the subcontract', 21538:'must include a contract financing clause structured in accordance with 32.206. subpart 32.6 contract debts 32.603 subpart 32.6 contract debts', 21539:'32.600scope of subpart. this subpart prescribes policies and procedures for identifying, collecting, and deferring collection of contract debts including interest,', 21540:'if applicable. sections 32.607, 32.608, and 32.610 of this subpart do not apply to claims against common carriers for transportation', 21541:'overcharges and freight and cargo losses 31 u.s.c. 3726. 32.601general. a contract debts are amounts that 1 have been paid', 21542:'to a contractor to which the contractor is not currently entitled under the terms and conditions of the contract; or', 21543:'2 are otherwise due from the contractor under the terms and conditions of the contract. b contract debts include, but', 21544:'are not limited to, the following: 1 billing and price reductions resulting from contract terms for price redetermination or for', 21545:'determination of prices under incentive type contracts. 2 price or cost reductions for defective certified cost or pricing data. 3', 21546:'financing payments determined to be in excess of the contract limitations at 52.23216a7, progress payments, or 52.23232d2, performancebased payments, or', 21547:'any contract clause for financing of commercial products or commercial services. 4 increases to financing payment liquidation rates. 5 overpayments', 21548:'disclosed by quarterly statements required under price redetermination or incentive contracts. 6 price adjustments resulting from cost accounting standards cas', 21549:'noncompliances or changes in cost accounting practice. 7 reinspection costs for nonconforming supplies or services. 8 duplicate or erroneous payments.', 21550:'9 damages or excess costs related to defaults in performance. 10 breach of contract obligations concerning progress payments, performancebased payments,', 21551:'advance payments, financing ofcommercial products or commercial services, or governmentfurnished property. 11 government expense of correcting defects. 12 overpayments related', 21552:'to errors inquantity orbilling or deficiencies in quality. 13 delinquency in contractor payments due under agreements or arrangements for deferral', 21553:'or postponement of collections. 14 reimbursement of amounts due under 33.102b3 and 33.104h8. 32.602responsibilities. a thecontracting officer has primary responsibility', 21554:'for identifyinganddemanding payment of contract debtsexcept those resulting fromerrors made by the payment office. the contracting officer shall not collectcontract', 21555:'debts or otherwise agree to liquidate contract debts e.g., offset the amount of thedebt against existing unpaid bills due the', 21556:'contractor, or allow contractors to retain contract debts to cover amounts that may become payable in future periods. b the', 21557:'payment office has primaryresponsibilityfor 1 collectingcontract debts identified by contracting officers; 2 identifying and collecting duplicate and erroneous payments; and', 21558:'3 authorizing the liquidation of contract debts in accordance with agency procedures. 32.603debt determination. a if the contracting officerhas anyindication', 21559:'that acontractor owes money to the government under a contract, the contracting officershalldetermine promptly whether an actual debt isdue and', 21560:'the amount. any unnecessary delay may contribute to 1 loss of timely availability of the funds to the program for', 21561:'which the funds were initially provided; 2 increased difficulty incollecting the debt; or 3 actual monetary loss to the government.', 21562:'b the amount of indebtedness determined bythe contracting officer shall be an amount that 1 is based on the merits', 21563:'of the case; and federal acquisition regulation 2 is consistent with the contract terms. 32.604demand for payment. a except as', 21564:'provided in paragraph c of this section, the contracting officershalltake thefollowing actions: 1 issue thedemand for paymentas soon as thecontracting', 21565:'officer has determined that an actualdebt is due the government and the amount. 2 issue the demand for payment even', 21566:'if i the debt is or will be the subject of a bilateral modification; ii the contractor is otherwise obligated', 21567:'to pay the money under the existing contract terms; or iii the contractor has agreed to repay the debt. 3', 21568:'issue the demand for payment as a part of the final decision, if a final decision is required by 32.605a.', 21569:'b the demand for payment shall include the following: 1 a description of the debt, including the debt amount. 2', 21570:'a distribution of the principal amount of the debt by lines of accounting subject to the following: iif the debtaffectsmultiple', 21571:'lines of accounting, the contracting officer shall, to the maximum extent practicable, identify all affected lines of accounting. ifitis not', 21572:'practicable to identify all affected lines ofaccounting,the contracting officer may selectrepresentative lines of accountingin accordance with paragraph b2iiof this section.', 21573:'iiin selecting representative lines of accounting, the contracting officer shall aconsider theaffected departmentsor agencies, years of appropriations, and the predominanttypes', 21574:'of appropriations; and b not distribute to any line of accounting an amount of the principal in excess of the', 21575:'total obligation for the line of accounting; and iii include the lines of accounting even if the associated funds are', 21576:'expired or cancelled. while cancelled funds will be deposited in a miscellaneous receiptaccount of the treasury if collected, the funds', 21577:'are tracked underthe closedyear appropriations to comply with the antideficiency act. iv ifthe debt affects multiple contracts and the lines', 21578:'ofaccountingare not readily available, thecontracting officer shall aissuethe demandforpayment without the distributionof the principal amountto theaffected lines of accounting; b', 21579:'include a statement in the demand for payment advising when the distribution will be provided; and c provide the distribution', 21580:'by the date identified in the demand for payment. 3 the basis for and amount ofany accrued interest or penalty.', 21581:'4 i for debts resulting from specific contract terms e.g., debts resulting from incentive clause provisions, quarterly limitation on payments', 21582:'statement, cost accounting standards, price reduction for defective pricing, a notification stating that payment should bemade promptly, and that interest', 21583:'is due in accordance with the terms of the contract. interest shall be computed from thedate specified in the applicable', 21584:'contract clauseuntil repayment by the contractor. theinterest rate shall be the rate specified in the applicable contract clause. in the', 21585:'case of a debt arising from a price reduction for defective pricing, or as specifically set forth in a cost', 21586:'accounting standards cas clause in the contract, interest is computed from the date of overpayment by the government until repayment', 21587:'by the contractor at the underpayment rate established by the secretary of thetreasury, for the periods affected,under 26 u.s.c .', 21588:'6621a2. ii for all other contract debts, a notification stating that any amounts not paid within 30 days from the', 21589:'date of the demand for payment will bear interest. interest shall be computed from the date of the demand for', 21590:'payment until repayment by the contractor. theinterest rate shall be the interest rate establishedby the secretary ofthe treasury, asprovidedin 41', 21591:'u.s.c. 7109, which is applicable to the period in which the amount becomes due, and then at the rate applicable', 21592:'for each six month period as established by the secretary until the amount is paid. 5 a statement advising the', 21593:'contractor ito contact the contracting officer if the contractorbelieves thedebt is invalid or the amount is incorrect; and iiif the', 21594:'contractor agrees, toremit a checkpayable to the agency’spayment office annotated with the contract number along with a copyof the demand', 21595:'for payment to the payment office identified inthe contract or as otherwise specified in the demand letter in accordance with', 21596:'agency procedures. 6 notification that the payment office may initiate procedures, inaccordance withthe applicable statutory and regulatory requirements, to offset', 21597:'the debtagainst any payments otherwisedue the contractor. subpart 32.6 contract debts 32.607 7 notification that the debt maybe subjectto administrative', 21598:'chargesin accordance with therequirements of 31 u.s.c. 3717e and the debt collection improvement act of 1996. 8 notification that the', 21599:'contractor may submit a request for installment payments or deferment of collection if immediate payment is not practicable or if', 21600:'the amount is disputed. c except as provided in paragraph d of this section, the contracting officer should notissue a', 21601:'demand for paymentif the contracting officeronly becomesaware of the debt when the contractor 1 provides a lump sum payment orsubmitsa', 21602:'creditinvoice. a credit invoice is a contractor’s request to liquidate the debt against existing unpaid bills due the contractor; or', 21603:'2 notifies thecontracting officer thatthe paymentoffice overpaid on an invoicepayment. whenthe contractor provides the notification,the contracting officershallnotify the payment office', 21604:'of the overpayment. d if a demandforpayment was not issued as provided for in paragraph c ofthis section, thecontracting officer', 21605:'shall issue a demandforpayment no sooner than 30days after the contracting officer becomes aware of thedebt unless 1 the contractor', 21606:'has liquidated the debt; 2 the contractor has requested an installment payment agreement; or 3 the payment office has issued', 21607:'a demand for payment. e thecontracting officer shall 1 furnish a copy of the demand for payment to the contractor', 21608:'by certified mail, return receipt requested, or by any other method that provides evidence of receipt; and 2 forward a', 21609:'copy of the demand to the payment office. 32.605final decisions. a thecontracting officer shall issue a final decision as required', 21610:'by 33.211 if 1 the contractingofficer and the contractorare unable to reach agreement on the existence or amount of a', 21611:'debt in a timely manner; 2 the contractorfails to liquidate a debt previouslydemandedby the contractingofficer within the timeline specified in', 21612:'the demand for payment unless the amounts were not repaid because the contractor has requested an installment payment agreement; or', 21613:'3 the contractorrequests a deferment ofcollection ona debtpreviously demanded by thecontracting officer see 32.6072. b if a demand for payment', 21614:'was previously issued for the debt, the demand for payment included in the final decision shall identify the same due', 21615:'date as the original demand for payment. c thecontracting officer shall 1 furnish the decision to the contractor by certified', 21616:'mail, return receipt requested, or by any other method that provides evidence of receipt; and 2 forward a copy to', 21617:'the payment office identified in thecontract. 32.606debt collection. a if the contractor has not liquidated the debt within 30 days', 21618:'of the date due or requested installment payments or deferment ofcollection, the payment office shall initiatewithholding of principal,interest, penalties,and administrative', 21619:'charges. in the event the contract is assignedunder theassignment ofclaims act of 1940 31 u.s .c. 3727 and41u.s .c. 6305,', 21620:'the rights of the assignee will be scrupulously respected and withholding of payments shall be consistent with those rights. for', 21621:'additional information on assignment of claims, see subpart 32.8. b asprovided for in thedebt collection improvement act of 1996 31', 21622:'u.s .c. 3711g1, payment officesare required to transfer any debt thatis delinquent more than 180 daysto the department of treasuryforcollection.', 21623:'c thecontracting officer shall periodically followup withthe paymentoffice todetermine whether the debt has been collected and credited to the correct', 21624:'appropriations. 32.607installment payments and deferment of collection. a thecontracting officer shall not approve ordeny a contractor’s request for installment payments', 21625:'or deferment of collections. theoffice designated in agency procedures is responsibleforapproving or denyingrequests for installment payments or deferment of collections.', 21626:'b if a contractor has not appealed the debt or filed an action under the disputes clause of the contract', 21627:'and the contractor has submitted a proposal for debt deferment or installment payments 32.6071 federal acquisition regulation 1 the office', 21628:'designatedin agency procedures may arrangefordeferment/installmentpaymentsif the contractor is unable to payat once in full orthe contractor’s operations under national defense', 21629:'contracts wouldbe seriously impaired. the arrangement shall include appropriate covenants and securities and should be limited to the shortest practicable', 21630:'maturity; and 2 the deferment/installment agreement shall include a specific schedule or plan for payment. it should permit the government', 21631:'to make periodic financial reviews of the contractor and to require payments earlier than required by the agreementif the government', 21632:'considers thecontractor’sability topayimproved. it should also provide for requiredstated or measurable payments on theoccurrence of specific events or contingenciesthat improve', 21633:'the contractor’s ability to pay. c if not already applicable under the contract terms, interest on contract debt shall be', 21634:'made an element of any agreement entered into for installment payments or deferment of collection. 32.6071 installment payments. if a', 21635:'contractor requests aninstallment paymentagreement, the contractingofficer shall notifythe contractor to send a written request for installmentpayments to theoffice designated in', 21636:'agency procedures. 32.6072 deferment of collection. a allrequests for deferment of collectionmust be submitted inwriting to the contracting officer. 1', 21637:'if the contractor has appealed the debt under the procedures of the disputes clause of the contract, the information with', 21638:'the request for deferment may belimited toan explanation of the contractor’s financial condition. 2 actions filed by contractors under the', 21639:'disputes clause shall not suspend or delay collection. 3 if there is no appeal pending or action filed under the', 21640:'disputes clause of the contract, the following information about the contractor should be submitted with the request: i financial condition.', 21641:'ii contract backlog. iii projected cash receipts and requirements. iv the feasibility of immediate payment of the debt. v the', 21642:'probableeffect on operations of immediate payment in full. b upon receipt ofthe contractor’s writtenrequest,the contracting officershallpromptly provide a notification to', 21643:'the paymentoffice and advisethe paymentoffice thatthe contractor’s request isunder consideration. c 1 the contracting officer should consider any information necessary', 21644:'to develop a recommendation on the deferment request. 2 the contractingofficer shall forward the following to theoffice designated in agency', 21645:'procedures for a decision: iacopy ofthe contractor’s request for a deferment of collection. ii a written recommendation on the request', 21646:'and the basis for the recommendation including the advisability of deferment to avoid possible overcollections. iii a statement as to', 21647:'whether the contractor has an appeal pending or action filed under the disputes clause of the contract and the docket', 21648:'number if the appeal has been filed. iv a copy of the contracting officer’s final decision see 32.605. d the', 21649:'office designatedin agency procedures may authorizea defermentpending the resolution of appeal to avoid possible overcollections. the agency is required to', 21650:'use unexpired funds to pay interest on overcollections. e deferments pending disposition of appeal may be granted to small business', 21651:'concerns and financially weak contractors, balancingthe need for government security against loss andundue hardshipon the contractor. f the deferment agreement', 21652:'shall not provide that a claim of the government will not become due and payable pending mutual agreementon the amount', 21653:'of theclaim or, in the case of a dispute, untilthe decision isreached. g at a minimum, the deferment agreement shall', 21654:'contain the following: 1 a description of the debt. 2 the date of first demand for payment. 3 notice of', 21655:'an interest charge, in conformitywith 32.608 andthe far clause at 52.23217, interest; or, in thecaseof a debt arising from a', 21656:'defective pricing or a cas noncompliance overpayment, interest, as prescribed by the applicable price reduction for defective certified cost or', 21657:'pricing data or cas clause see 32.607c. 4 identification ofthe office to which the contractor is to senddebt payments. 5', 21658:'a requirement for the contractor to submit financial information requested by the government and for reasonable access to thecontractor’s records', 21659:'and property bygovernment representatives. subpart 32.6 contract debts 32.611 6 provision for the government to terminate the deferment agreement and', 21660:'accelerate the maturity of the debt if the contractor defaults or ifbankruptcy or insolvency proceedings areinstituted by oragainst thecontractor. 7', 21661:'protective requirements that are considered by the government to be prudent and feasible in the specific circumstances. the coverage of', 21662:'protective terms at 32.409 and 32.5015 may be used as a guide. h if a contractor appeal of the debt', 21663:'determination is pending, the deferment agreement shall also include a requirement that the contractor shall 1 diligently prosecute the appeal;', 21664:'and 2 pay the debt in full when the appeal is decided, or when the parties reach agreement on the', 21665:'debt amount. i the deferment agreement may provide for the right to make early payments without prejudice, for refund of', 21666:'overpayments, and for crediting of interest. 32.608 interest. 32.6081interest charges. unless specified otherwise in the clause at 52.23217, interest, interest', 21667:'chargesshallapply to any contract debt unpaid after 30 days from the issuance of a demand unless a the contract is', 21668:'a kind excluded under 32.611; or b the contract or debthas been exempted frominterest charges under agency procedures. 32.6082interest credits.', 21669:'a an equitable interest credit shall be applied under the following circumstances: 1 when the amount of debt initially determined', 21670:'is subsequently reduced; e.g., through a successful appeal. 2 when any amount collected by the government is in excess of', 21671:'the amount found to be due on appeal under the disputes clause of the contract. 3 when the collection procedures', 21672:'followed in a given case result in an overcollection of the debt due. 4 when the responsible official determines thatthe', 21673:'government has unduly delayed payments to the contractor on the same contract atsome time during the period to which the', 21674:'interest chargeapplied, provided aninterest penalty wasnot paid for such late payment. b any appropriate interest credits shall be computed under', 21675:'the following procedures: 1 interest at the rate under 52.23217 shall be charged on the reduced debt from thedate of', 21676:'collection by the government untilthe datethe monies are remitted to the contractor. 2 interest may not be reduced for any', 21677:'time between the due date under the demand and the period covered by a deferment of collection, unless the contract', 21678:'includes an interest clause; e.g., the clause prescribed in 32.611. 3 interestshallnot be credited inan amountthat, when added toother amounts', 21679:'refunded orreleased tothe contractor, exceeds the total amount that has been collected, or withheld for the purpose of collecting the', 21680:'debt. this limitation shall be further reduced by the amount of any limitation applicable under paragraph b2 of this subsection.', 21681:'32.609 delays in receipt ofnotices or demands. if interest is accrued based on the date of the demand letter and', 21682:'delivery of the demand letter is delayed by the government e.g., undue delay afterdatingat the originating office or delays in', 21683:'the mail,the date of the debt and accrual of interest shall be extended to a time that is fair and', 21684:'reasonable under the particular circumstances. 32.610 compromisingdebts. for debts under $100,000, excluding interest, the designated agencyofficial may compromise the debt', 21685:'pursuant to the federal claims collection standards 31 cfr part 902 and agency regulations. unless specifically authorized by agency procedures,', 21686:'contracting officers cannot compromise debts. 32.611contract clause. a thecontracting officer shall insert the clause at 52.23217, interest, in solicitations and', 21687:'contracts unless it is contemplated that the contract will be in one or more of the following categories: 1 contracts', 21688:'at or below the simplified acquisition threshold. 2 contracts with government agencies. 3 contracts with astate or local government or', 21689:'instrumentality. federal acquisition regulation 4 contracts with aforeign government or instrumentality. 5 contracts without any provision for profitor fee with', 21690:'a nonprofit organization. 6 contracts described in subpart 5.5, paid advertisements. 7 any other exceptions authorized under agency procedures. b', 21691:'the contractingofficer may insert the far clauseat 52.23217, interest, in solicitations and contracts when it is contemplated that the contract', 21692:'will be in any of the categories specified in 32.611a. subpart 32.7 contract funding 32.704 subpart 32.7 contract funding 32.700scope', 21693:'of subpart. this subpart a describes basic requirements for contract funding and b prescribes procedures for using limitation of cost', 21694:'or limitation of funds clauses. detailed acquisition funding requirements are contained in agency fiscal regulations. 32.701[reserved] 32.702 policy. no officer', 21695:'or employeeof the government maycreate or authorize an obligationin excess of the funds available, or in advance of appropriations antideficiency', 21696:'act,31 u.s.c. 1341, unless otherwise authorized bylaw. before executing any contract, the contractingofficer shall a obtain written assurance from responsible', 21697:'fiscal authority that adequate funds are available or b expressly condition the contract upon availability of funds in accordance with', 21698:'32.7032. 32.703 contract funding requirements. 32.7031 general. a if the contract is fully funded, funds are obligated to cover the', 21699:'price or target priceof afixedpricecontract or the estimated cost and any fee of a costreimbursement contract. b if the contract', 21700:'is incrementally funded, funds are obligated to cover the amount allotted and any corresponding increment of fee. 32.7032 contracts conditioned', 21701:'upon availability of funds. a fiscal year contracts. the contracting officer may initiate a contractaction properly chargeableto funds of the', 21702:'new fiscal year before these funds are available, provided that the contract includes the clause at 52.23218, availability of funds', 21703:'see 32.7061a. this authority may be used only for operation and maintenance and continuing services e.g., rentals, utilities, and supply', 21704:'items not financed by stock funds 1 necessary for normal operations; and 2 for which congress previously had consistently appropriated', 21705:'funds, unless specific statutory authority exists permitting applicability to other requirements. b indefinitequantity or requirements contracts. a oneyear indefinitequantity or', 21706:'requirements contract for services that is funded by annual appropriations may extend beyond the fiscal year in which it begins;', 21707:'provided, that 1 any specified minimum quantities are certain to be ordered in the initial fiscal year see 37.106 and', 21708:'2 the contract includes the clause at 52.23219, availabilityof funds for the nextfiscal year see 32.7061b. c acceptance of supplies', 21709:'or services. the government shall not accept supplies or services under a contract conditioned uponthe availability of funds until the', 21710:'contractingofficer hasgiven the contractor notice, to be confirmed in writing, that funds are available. 32.7033contracts crossing fiscal years. a a', 21711:'contract that is funded by annual appropriations may not cross fiscal years, except in accordance with statutory authorization e.g., 41', 21712:'u.s.c.6302, 31 u.s.c.1308, 42 u.s.c. 2459a, 42 u.s.c.3515, and paragraph b of this subsection, or when the contract calls for', 21713:'an end product that cannot feasibly be subdivided for separate performance in each fiscal year e.g., contracts for expert or', 21714:'consultant services. b the head ofan executive agency, except nasa, may enterinto a contract, exercise an option, or place an', 21715:'order under a contract for severable services for a period that begins in one fiscal year and ends in the', 21716:'next fiscal year if the period of the contract awarded, option exercised, or order placed does not exceed oneyear 10', 21717:'u.s.c. 3133 and 41 u.s.c. 3902. funds made available for a fiscal year may be obligated for the total amount', 21718:'of an action enteredinto under thisauthority. 32.704limitation of cost or funds. a 1 when a contract contains the clause at', 21719:'52.23220, limitation of cost; or 52.23222, limitation of funds, the contracting officer, uponlearning that the contractor is approaching the estimated', 21720:'cost ofthe contract or thelimitof the funds federal acquisition regulation allotted, shall promptly obtain funding and programminginformationpertinent to the contract’s', 21721:'continuation and notifythe contractor in writing that i additional funds have been allotted, or the estimated cost has been increased,', 21722:'in a specified amount; ii the contract is not to be further funded and that the contractor should submit a', 21723:'proposal for an adjustment of fee, if any, based on the percentage of work completedin relation to the total work', 21724:'called for under the contract; iii the contract is to be terminated; or a the government is considering whether to', 21725:'allot additional funds or increase the estimated cost b the contractor is entitled by the contract terms to stop work', 21726:'when the funding or cost limit is reached; and c any work beyond the funding or cost limit will be', 21727:'atthe contractor’s risk. 2 upon learning that a partially funded contract containing any of the clauses referenced in paragraph a1', 21728:'of this section will receive no furtherfunds, the contracting officer shall promptly givethe contractor written notice of the decision not', 21729:'to provide funds. b under a costreimbursement contract,the contracting officer mayissue a change order, a direction to replace orrepair defective', 21730:'items or work, or a termination notice without immediately increasing the funds available. since a contractor is not obligated to', 21731:'incur costsin excess of the estimatedcostin thecontract, the contracting officer shall ensure availability of funds for directed actions. thecontracting officer', 21732:'may direct that any increasein theestimated cost or amount allotted to a contract be used for the sole purpose of', 21733:'funding termination or other specified expenses. c government personnel encouraging a contractor to continue work in the absence of funds', 21734:'will incur a violation of revised statutes section 3679 31 u.s.c. 1341 that may subject the violator to civil or', 21735:'criminal penalties. 32.705 unenforceability of unauthorizedobligations. many supplies or services are acquired subject to supplier license agreements. these are particularly', 21736:'common in information technology acquisitions, but they may apply to any supply or service. for example, computer software and services', 21737:'delivered through the internet web services are often subject to license agreements, referred to as end user license agreements eula,', 21738:'terms of service tos, or other similar legal instruments or agreements. many of these agreements contain indemnification clauses that are', 21739:'inconsistent with federal law and unenforceable, but which could create a violation of the antideficiency act 31 u.s.c. 1341 if', 21740:'agreed to by the government. 32.706contract clauses. 32.7061 clauses for contracting in advance of funds. a insert the clause at', 21741:'52.23218, availability of funds,in solicitations and contractsif the contractwill be chargeable to funds of the new fiscal year and the', 21742:'contract action will be initiated before the funds are available. b the contractingofficer shall insertthe clause at 52.23219,availability of fundsforthe', 21743:'next fiscal year, in solicitations and contracts if a oneyear indefinitequantity or requirements contract for services is contemplated and the', 21744:'contract 1 is funded by annual appropriations; and 2 is to extend beyond the initial fiscal year see 32.7032b. 32.7062', 21745:'clauses for limitation of cost or funds. a thecontracting officer shall insert the clause at 52.23220, limitation of cost, in', 21746:'solicitations and contracts if a fully funded costreimbursement contract is contemplated, whether or not the contract provides for payment of', 21747:'a fee. b the contractingofficer shall insertthe clause at 52.23222, limitation of funds, in solicitations and contracts if an incrementally', 21748:'funded costreimbursement contract is contemplated. 32.7063clause for unenforceability of unauthorized obligations. the contractingofficer shall insertthe clause at 52.23239, unenforceability of', 21749:'unauthorized obligations in all solicitations and contracts. subpart 32.8 assignment of claims 32.803 subpart 32.8 assignment of claims 32.800scope of', 21750:'subpart. this subpart prescribes policies and procedures for the assignment of claims under the assignment of claims act of1940, as', 21751:'amended, 31 u.s.c.3727, 41 u.s.c. 6305 hereafter referred to as the act. 32.801definitions. designated agency, as used in this subpart,', 21752:'means any department or agency of the executive branch of the united states government see 32.803d. nosetoff commitment, as used', 21753:'in this subpart, means a contractual undertaking that, to the extent permitted by the act, payments by the designated agency', 21754:'to the assignee under an assignment of claims will not be reduced to liquidate the indebtedness of the contractor to', 21755:'the government. 32.802conditions. under the assignment of claims act, a contractor may assign moneys due or to become due under', 21756:'a contract if all the following conditions are met: a the contract specifies payments aggregating $1,000 or more. b the', 21757:'assignment is made to abank, trust company,or other financing institution, includinganyfederal lendingagency. c the contract does not prohibit the assignment.', 21758:'d unless otherwise expressly permitted in the contract, the assignment 1 covers all unpaid amounts payable under the contract; 2', 21759:'is made only to one party, except that any assignment may be made toonepartyas agent or trustee for two or', 21760:'more parties participating in the financing of the contract; and 3 is not subject to further assignment. e the assignee', 21761:'sends a written notice of assignment together with a true copy of the assignment instrument to the 1 contracting officer', 21762:'or the agency head; 2 surety on any bond applicable to the contract; and 3 disbursingofficer designatedin thecontract to make', 21763:'payment. 32.803policies. a any assignment of claims that has been made under the act to any type of financing institution', 21764:'listed in 32.802b may thereafter be further assigned and reassigned to any such institution if the conditions in 32.802d and', 21765:'e continue to be met. b a contract may prohibitthe assignmentof claims if the agencydeterminesthe prohibition tobe inthe government’s interest.', 21766:'c under a requirements or indefinite quantity type contract that authorizes ordering and payment by multiple government activities, amounts due', 21767:'for individual orders for $1,000 or more may be assigned. d any contract ofa designated agency seefar 32.801, except a', 21768:'contract under which full payment has been made, may include a nosetoff commitment only whena determination ofneedis made by the', 21769:'head of the agency,in accordance with the presidential delegation of authority dated october 3,1995, and after such determination has been', 21770:'published in the federal register. the presidential delegation makes such determinations of need subject to further guidance issued by the', 21771:'office of federal procurement policy. the following guidance has been provided: use of the nosetoff provision may be appropriate to', 21772:'facilitate the national defense; inthe event of a national emergencyor natural disaster; or when the use of the nosetoff provision', 21773:'may facilitate private financing ofcontract performance. however, in the event an offeror issignificantlyindebted tothe unitedstates, the contracting officer should consider', 21774:'whether the inclusion of the nosetoff commitment in a particular contract isin the bestinterests of theunited states. insuch anevent, the', 21775:'contracting officershouldconsult with the government officers responsible for collecting the debts. e when an assigned contract does notinclude a nosetoff', 21776:'commitment,the government may apply against paymentsto the assignee any liability of the contractor to the government arising independently of the', 21777:'assigned contract if the liability existed at the time notice of the assignment was received even though that liability had', 21778:'not yet matured so as to be due and payable. federal acquisition regulation 32.804 extent of assignee’s protection. a no', 21779:'payments made by the government to the assignee under any contract assigned in accordance with the act may be recovered', 21780:'on account of any liability of thecontractor to the government. this immunity ofthe assignee is effectivewhether thecontractor’sliability arises from or', 21781:'independently of the assigned contract. b except as provided in paragraph c of this section, the inclusion of a nosetoff', 21782:'commitmentin anassigned contract entitles the assigneeto receive contract payments free of reductionor setoff for 1 any liability of the contractor', 21783:'to the government arising independently of the contract; and 2 any of the following liabilities of the contractor to the', 21784:'government arising from the assigned contract: i renegotiation under any statute or contract clause. ii fines. iii penalties, exclusive of', 21785:'amounts that may be collected or withheld fromthe contractor under, orforfailureto comply with, the terms of the contract. iv taxes', 21786:'or social securitycontributions. v withholdingor nonwithholding of taxes or social security contributions. c insome circumstances, a setoff may beappropriate even', 21787:'though the assigned contractincludes anosetoff commitment; e.g. 1 when the assignee has neither made a loan under the assignment nor', 21788:'made a commitment to do so; or 2 to the extent that the amount due on the contractexceeds the amount', 21789:'of any loans made or expected to be made under a firm commitment for financing. 32.805 procedure. a assignments. 1', 21790:'assignments by corporations shall be i executed by an authorized representative; ii attested by the secretary or the assistant secretary', 21791:'of the corporation; and iii impressed withthe corporate seal or accompaniedby atrue copyof the resolution of the corporation’s boardof directors', 21792:'authorizing the signing representative to execute the assignment. 2 assignments by a partnershipmay be signed byonepartner, if the assignment isaccompaniedby', 21793:'adequate evidence that the signer is a general partner of the partnership and is authorized to execute assignments on behalf', 21794:'of the partnership. 3 assignments by an individual shall be signed by that individual and the signature acknowledged before a', 21795:'notary public or other person authorized to administer oaths. b filing. the assignee shall forward to each party specified in', 21796:'32.802e an original and three copies of the notice of assignment, together with one true copy of the instrument of', 21797:'assignment. the true copy shall be a certified duplicate or photostat copy of the original assignment. c format for notice', 21798:'of assignment. the following is a suggested format for use by an assignee in providing the notice of assignment required', 21799:'by 32.802e. notice of assignment to: [address to one of the parties specified in 32.802e]. this has reference to contract', 21800:'no. dated , entered into between [contractor’s name and address] and [government agency, name of office, and address], for [describe', 21801:'nature of the contract]. moneys due or to become due under the contract described above have been assigned to the', 21802:'undersigned under the provisions of the assignment of claims act of1940, as amended, 31 u.s.c.3727, 41 u.s.c. 6305. a true', 21803:'copy of the instrument of assignment executed by the contractor on [date], is attached to the original notice. payments due', 21804:'or to become due under this contract should be made to the undersigned assignee. please return to the undersigned the', 21805:'three enclosed copies of this notice with appropriate notations showing the date and hour of receipt, and signed by the', 21806:'person acknowledging receipt on behalf of the addressee. very truly yours, [name of assignee] by [signature of signing officer] [titleof', 21807:'signing officer] [address of assignee] acknowledgement subpart 32.8 assignment of claims 32.806 receipt is acknowledged of the above notice and', 21808:'of a copy of the instrument of assignment. they were received a.m. p.m. on , 20. [signature] [title] on behalf', 21809:'of [name of addressee of this notice] d examination by the government. in examining and processing notices of assignment and', 21810:'before acknowledging their receipt, contracting officers should assure that the followingconditions and anyadditional conditions specified in agency regulations, have been', 21811:'met: 1 the contract has been properly approved and executed. 2 the contract is one under which claims may be', 21812:'assigned. 3 the assignment covers only money due or to become due under the contract. 4 the assignee isregisteredseparately in', 21813:'the system for award management unless one of the exceptions in 4.1102 applies. e release of assignment. 1 a release', 21814:'of an assignment is required whenever i there has been a further assignment or reassignment under the act; or iithe', 21815:'contractor wishesto reestablish its right to receive further payments afterthe contractor’s obligations to the assignee have been satisfied and a', 21816:'balance remains due under the contract. 2 the assignee, under a further assignment or reassignment, in order to establish a', 21817:'right to receive payment from the government, must file with the addressees listed in 32.802e a iwritten notice ofrelease ofthe', 21818:'contractor bythe assigning financing institution; ii copy of the release instrument; iii written noticeof the further assignment or reassignment;and iv', 21819:'copy of the further assignment or reassignment instrument. 3 if the assignee releases the contractor from an assignment ofclaimsunder a', 21820:'contract, the contractor, in order to establish a right to receive payment of the balance due under the contract, must', 21821:'file a written notice of release together with a true copy of the release of assignment instrument with the addressees', 21822:'noted in 32.802e. 4 the addressee of a notice of release of assignmentor the official acting on behalf of that', 21823:'addressee shall acknowledge receipt of the notice. 32.806contract clauses. a 1thecontractingofficershallinserttheclauseat 52.23223, assignment of claims, in solicitations and contracts expected', 21824:'to exceed the micropurchase threshold, unless the contract will prohibit the assignment of claims see 32.803b. the use of the', 21825:'clause is not requiredforpurchase orders. however, the clause may beused inpurchase orders expected to exceed the micropurchase threshold, that are', 21826:'acceptedin writing bythe contractor, ifsuch use is consistent with agency policies and regulations. 2 if a nosetoff commitment hasbeenauthorized see', 21827:'32.803d, the contracting officer shall use theclause with its alternatei. b the contractingofficer shall insertthe clause at 52.23224, prohibition of', 21828:'assignment of claims, in solicitations and contracts for which a determination has been made under agency regulations that the prohibition', 21829:'of assignment of claims is in thegovernment’s interest. this page intentionally left blank. 32.84 subpart 32.9 prompt payment 32.904 subpart', 21830:'32.9 prompt payment 32.900scope of subpart. this subpart prescribes policies, procedures, and clauses for implementing office of management and budget', 21831:'omb prompt payment regulations at 5 cfr part 1315. 32.901 applicability. a this subpart applies to invoice payments on all', 21832:'contracts, except contracts with payment terms and late payment penalties established by other governmental authority e.g., tariffs. b this subpart', 21833:'does not apply to contract financing payments see definition at 32.001. 32.902definitions. as used in this subpart discount for prompt', 21834:'payment means an invoice payment reduction offered by the contractor for paymentprior to the due date. mixed invoice meansan invoice', 21835:'that containsitems withdifferent payment due dates. payment date means the date on which a check for payment is dated or,foran', 21836:'electronic funds transfer eft, the settlement date. settlement date,as it applies to electronic funds transfer, means the date on which', 21837:'anelectronic funds transferpayment is credited tothe contractor’s financial institution. 32.903responsibilities. a agency heads 1 must establish the policies and procedures', 21838:'necessary to implement this subpart; 2 may prescribe additional standards for establishing invoice payment due dates see 32.904 necessary to', 21839:'support agency programs and foster prompt payment to contractors; 3 mayadopt different payment procedures inorder to accommodate unique circumstances, provided', 21840:'that such procedures are consistent with the policies in this subpart; 4 must inform contractors ofpoints of contact within their', 21841:'cognizant payment offices toenablecontractors to obtain status of invoices; and 5 may authorize the use of the accelerated payment methods', 21842:'specified at 5 cfr 1315.5, but see 32.0091a. b when drafting solicitations and contracts, contractingofficers must identify for each lineitem', 21843:'number, subline item number, or exhibit line item number 1 the applicable prompt payment clauses that apply to each item', 21844:'when the solicitation or contract contains items that will be subject to different payment terms; and 2 the applicable prompt', 21845:'payment food category e.g., which item numbers are meat or meat food products, which are perishable agricultural commodities, when the', 21846:'solicitation or contract contains multiple payment terms for various classes of foods and edible products. 32.904determining payment due dates. a', 21847:'general. agency procedures mustensure that, when specifying due dates, contracting officers give full consideration to the time reasonably requiredby government', 21848:'officials to fulfill their administrative responsibilities under the contract. b payment due dates. except as prescribed in paragraphs c through', 21849:'f of this section, or as authorized in 32.908a2 or c2, the due date for making an invoice payment is', 21850:'as follows: 1 the later of the following two events: ithe 30 thday after thedesignated billingoffice receives a proper invoice', 21851:'from the contractor except asprovided in paragraph b3 of this section. ii the 30 thday after government acceptance of supplies', 21852:'delivered or services performed. a for a final invoice, when the payment amount is subject to contract settlement actions, acceptance', 21853:'is deemed to occur onthe effective date of thecontract settlement. b for the sole purpose of computing an interest penalty', 21854:'that might be due the contractor federal acquisition regulation 1 government acceptance is deemed to occur constructively on the 7', 21855:'thday after the contractor delivers supplies or performs services in accordance with the terms and conditions of the contract, unless', 21856:'there is a disagreement over quantity, quality, or contractor compliance witha contract requirement; 2 if actual acceptance occurs within the', 21857:'constructive acceptance period, the government must base the determination of an interest penalty on the actual date of acceptance; 3', 21858:'the constructive acceptance requirement does not compel government officials to accept supplies or services, perform contract administration functions, or make', 21859:'payment prior to fulfilling their responsibilities; and 4 except for a contract for the purchase of a commercial product or', 21860:'commercial service, including a brandnamecommercial product for authorizedresale e.g.,commissary items, thecontracting officer may specify a longer period for constructive acceptancein', 21861:'the solicitation and resultingcontract, if required to affordthe government a reasonable opportunity to inspect and test the supplies furnished or', 21862:'to evaluate the services performed. the contracting officer must document in the contract file the justificationforextending the constructive acceptanceperiod beyond', 21863:'7 days. extended acceptance periods must not be a routine agency practice and must be used only when necessary to', 21864:'permit proper government inspection and testing of the supplies delivered or services performed. 2 if the contract does not require', 21865:'submission of an invoice for payment e.g.,periodic lease payments, the contracting officer must specify the due date in the contract.', 21866:'3 if the designated billing office fails to annotate the invoice with the actual date ofreceipt atthe time of receipt,', 21867:'the invoice payment due date is the 30 thday after the date of the contractors invoice, provided the designated billing', 21868:'officereceives a proper invoice and there is nodisagreement over quantity, quality,or contractor compliancewith contract requirements. c architectengineer contracts. 1 the', 21869:'due date for making payments on contracts that contain the clause at 52.23210, payments under fixedprice architectengineer contracts, is as', 21870:'follows: i the due date for work or services completed by the contractor is the later of the following two', 21871:'events: athe 30 thday after thedesignated billingoffice receives a proper invoice from thecontractor. b the 30 thday after governmentacceptance of', 21872:'the work or services completed by the contractor. 1 for a final invoice, when the payment amount is subject to', 21873:'contract settlement actions e.g., release of claims, acceptance is deemed to occur on the effective date of the settlement. 2', 21874:'for the sole purpose of computing an interest penalty thatmightbe due thecontractor, government acceptance is deemed to occur constructively on', 21875:'the 7 thday after the contractor completes the work or services in accordance with the terms and conditions of the', 21876:'contract see also paragraph c2 of this section. if actual acceptance occurs within the constructive acceptance period, the government must', 21877:'base the determination of an interest penalty on the actual date of acceptance. ii the due date for progress payments', 21878:'is the 30 thday after government approval of contractor estimates of work or services accomplished. for the sole purpose of', 21879:'computing an interest penalty that might be due the contractor agovernment approval is deemed to occur constructivelyon the 7 thdayafter', 21880:'the designated billing office receives the contractor estimates see also paragraph c2 of this section. b if actual approval occurs', 21881:'within the constructive approval period, the government must base the determination of an interest penalty on the actual date of', 21882:'approval. iii if thedesignated billingoffice fails toannotate the invoice or payment request withthe actual date of receipt at the time', 21883:'of receipt, the payment due date is the 30 thday after the date of thecontractor’sinvoice orpayment request, provided thedesignated billingoffice', 21884:'receives a proper invoice or payment request and there is no disagreementover quantity, quality, or contractor compliance withcontract requirements. 2', 21885:'the constructive acceptance and constructive approval requirements described in paragraphs c1i and ii of this section are conditioned uponreceipt of', 21886:'a proper paymentrequest and no disagreementover quantity,quality, contractor compliance with contract requirements, or the requested progress payment amount. these requirements', 21887:'do not compel government officials to accept work or services, approve contractor estimates, perform contractadministration functions, or make payment prior', 21888:'to fulfilling their responsibilities. the contracting officer mayspecify alonger period for constructive acceptance or constructive approval, if requiredto afford thegovernmenta', 21889:'reasonable opportunityto inspect and test the supplies furnished orto evaluate theservicesperformed. the contractingofficer must documentin the contractfile the justification for', 21890:'extending the constructive acceptance or approval period beyond 7 days. d construction contracts. 1 the due date for making payments', 21891:'on construction contracts is as follows: subpart 32.9 prompt payment 32.904 ithe due date for making progress payments based on', 21892:'contracting officer approval of the estimated amount and value of work or services performed, including payments for reaching milestones in', 21893:'any project, is 14 days after the designated billing officereceives a proper payment request. aif the designated billing office fails', 21894:'toannotate the payment requestwith the actual date of receipt at the time of receipt, the payment due date is the', 21895:'14 thday after the date of thecontractor’spayment request, provided thedesignated billing office receives a proper paymentrequest and there is nodisagreement', 21896:'over quantity, quality, or contractor compliance with contract requirements. b the contracting officermay specify a longer period inthe solicitationand resulting', 21897:'contract if required to affordthe government a reasonableopportunity to adequately inspectthe work and to determine the adequacy of the contractor’s', 21898:'performanceunder thecontract. the contracting officer mustdocument in the contract file the justification for extending the due date beyond 14 days.', 21899:'c the contracting officermust notapprove progress payment requests unless the certification and substantiation of amounts requested are provided as required', 21900:'by the clause at 52.2325, payments under fixedprice construction contracts. iithe due date for payment of any amounts retained by', 21901:'the contracting officer in accordance withthe clause at 52.2325, payments under fixedprice construction contracts, will beas specified inthe contract or,if', 21902:'notspecified,30 days after approvalby the contracting officerforrelease to the contractor. the contracting officermust base therelease ofretained amounts on the contracting', 21903:'officer’s determination thatsatisfactory progress has been made. iii the due date for final payments based on completion and acceptance of', 21904:'all work including any retained amounts, and payments for partial deliveries that have been accepted by the government e.g., each', 21905:'separate building, public work, or other division of the contract for which the price is stated separately in the contract', 21906:'is as follows: a the later of the following two events: 1 the 30thday afterthe designated billing officereceives a proper', 21907:'invoice fromthe contractor. 2 the 30thday aftergovernment acceptance ofthe work or services completed by thecontractor. fora final invoice, when the', 21908:'payment amount is subject to contract settlement actions e.g., release of contractor claims, acceptance is deemed to occur on the', 21909:'effective dateof the contract settlement. b if the designatedbilling office fails to annotatethe invoice with the actual date of receiptat', 21910:'the timeof receipt, theinvoice payment due date is the 30 thday afterthe date of the contractor’s invoice, provided the designated', 21911:'billing officereceives a proper invoice and there is nodisagreement over quantity, quality,or contractor compliancewith contract requirements. 2 for the sole', 21912:'purpose of computing an interest penalty that might be due the contractor for payments described in paragraph d1iii of this', 21913:'section i government acceptance or approval is deemed to occur constructively on the 7 thday after the contractor completes the', 21914:'work or services in accordance with the terms and conditions of the contract, unless there is a disagreement over quantity,', 21915:'quality,contractor compliance with a contract requirement,or the requested amount; ii if actual acceptance occurs within the constructive acceptance period, the', 21916:'government must base the determination of an interest penalty on the actual date of acceptance; iii the constructiveacceptance requirement does', 21917:'not compel government officials toaccept work or services, approve contractor estimates, perform contract administration functions, or make payment prior to', 21918:'fulfilling their responsibilities; and iv the contracting officer may specify a longerperiod for constructive acceptanceor constructive approvalin thesolicitation and resulting', 21919:'contract, if required toafford the government a reasonableopportunity toadequately inspect thework and to determine the adequacyof the contractor’s performance under', 21920:'the contract. the contracting officer must document in the contract file the justification for extending the constructive acceptance or approval', 21921:'beyond 7 days. 3 construction contracts contain special provisions concerning contractor payments to subcontractors, along with special contractor certification requirements.', 21922:'the office ofmanagement and budget has determinedthat these certifications must not beconstrued as finalacceptance ofthe subcontractor’s performance. the certification in', 21923:'52.2325c implements this determination; however, certificates arestill acceptable ifthe contractor deletes paragraph c4 of 52.2325 from the certificate. 4 i', 21924:'paragraph d of the clause at 52.2325, payments under fixedprice construction contracts, and paragraph e6 of the clause at 52.23227,', 21925:'prompt payment for construction contracts, provide for the contractor to pay interest on unearned amounts in certain circumstances. the government', 21926:'must recover this interest from subsequent payments to the contractor. therefore, contracting officers normally must makeno demand for payment. contracting', 21927:'officers must federal acquisition regulation a compute the amount in accordance with the clause; b provide the contractor with a', 21928:'final decision; and c notify the payment officeof the amount tobe withheld. iithe payment office is responsible for making the', 21929:'deduction of interest. amountscollectedin accordance with these provisions revert to the united states treasury. e costreimbursement contracts for services. for', 21930:'purposes of computing late paymentinterest penalties that mayapply, the due date for making interim payments on costreimbursement contracts for services', 21931:'is 30 days after the date of receipt of a proper invoice. f food and specified items. if the items', 21932:'delivered are: payment must be made as close as possible to, but not later than: 1 meat or meat food', 21933:'products. as defined in section 2a3 of the packers and stockyard act of 1921 7 u.s.c. 1823, and as further', 21934:'defined in public law98181, including any edible fresh or frozen poultry meat, any perishable poultry meat food product, fresh eggs,', 21935:'and any perishable egg product. 7th day after product delivery. 2 fresh or frozen fish. as defined in section 2043', 21936:'of the fish and seafood promotion act of 1986 16 u.s.c. 40033. 7th day after product delivery. 3 perishable agricultural', 21937:'commodities. as defined in section 14 of the perishable agricultural commodities act of 1930 7 u.s.c. 499a4. 10th day after', 21938:'product delivery, unless another date is specified in the contract. 4 dairy products. as defined in section 111e of the', 21939:'dairy production stabilization act of 1983 7 u.s.c. 4502e, edible fats or oils, and food products prepared from edible fats', 21940:'or oils. liquid milk, cheese, certain processed cheese products, butter, yogurt, ice cream, mayonnaise, salad dressings, and other similar products', 21941:'fall within this classification. nothing in the act limits this classification to refrigerated products. if questions arise regarding the proper', 21942:'classification of a specific product, the contracting officer must follow prevailing industry practices in specifying a contract payment due date.', 21943:'the burden of proof that a classification of a specific product is, in fact, prevailing industry practice is upon the', 21944:'contractor making the representation. 10th day after a proper invoice has been received. g multiple payment due dates. contracting officers', 21945:'may encourage, but not require,contractors to submit separate invoices for products with different payment due dates under the same contract', 21946:'or order. whenan invoice contains items with different paymentduedates i.e.,a mixed invoice, the payment office will, subject to agency policy', 21947:'1 pay the entire invoice on the earliest due date; or 2 split invoice payments, making payments by the applicable', 21948:'due dates. 32.905 paymentdocumentationand process. a general. payment will be based on receipt of a proper invoice and satisfactory contract', 21949:'performance. b content of invoices. 1 a proper invoice must include the following items except for interim payments on cost', 21950:'reimbursement contracts for services: iname and address of thecontractor. iiinvoice dateandinvoice number. contractors should date invoicesas closeas possibleto thedate of', 21951:'mailing or transmission. iii contract number or other authorization for supplies delivered or services performed including order number and line', 21952:'item number. iv description, quantity, unit of measure, unit price, and extended price of supplies delivered or services performed. v', 21953:'shipping and payment terms e.g., shipment number and date of shipment, discount for prompt payment terms. bill of lading number', 21954:'and weight of shipment will be shown for shipments on government bills of lading. subpart 32.9 prompt payment 32.906 vi', 21955:'name and address of contractor officialto whom payment is tobe sent must be the same as that inthe contract or', 21956:'in a proper notice of assignment. vii name where practicable, title, phonenumber, and mailing address of person to notifyin theevent', 21957:'of a defective invoice. viii taxpayer identification number tin. the contractor must include its tin on the invoice only if', 21958:'required by agency procedures. see 4.9 tin requirements. ix electronic funds transfer eft banking information. a the contractor must include', 21959:'eft banking information on the invoice only if required by agency procedures. b if eft banking information is not required', 21960:'to be on the invoice, in order for the invoice to be a proper invoice, the contractor must have submitted', 21961:'correct eft banking information in accordance with the applicable solicitation provision e.g., 52.23238, submission of electronic funds transfer information with', 21962:'offer, contract clausee.g., 52.23233, payment by electronic funds transfersystemforawardmanagement, or 52.23234, payment by electronic fundstransfer otherthan system for award management,', 21963:'orapplicable agency procedures. c eft banking information is not required if the government waived the requirement to pay byeft. x', 21964:'any other information or documentation required by the contract e.g., evidence of shipment. 2 an interim payment request under a', 21965:'costreimbursement contract for services constitutes a proper invoice for purposes of this subsection if it includes all of the information', 21966:'required by the contract. 3 if the invoice does notcomply with these requirements, thedesignated billingoffice must return it within 7', 21967:'days after receipt 3 days on contracts for meat, meat food products, or fish; 5 days on contracts for perishable', 21968:'agricultural commodities, dairy products, edible fats or oils, and food products prepared from edible fats or oils, with the reasons', 21969:'why it is not a proper invoice. if such notice is not timely, then thedesignated billingoffice must adjust the due', 21970:'date for the purpose of determining an interestpenalty, ifany. c authorization to pay. all invoice payments, with the exception of', 21971:'interim payments on costreimbursement contracts for services, must be supported by a receiving report or other government documentation authorizing payment', 21972:'e.g., government certified voucher. the agency receiving official should forward the receiving report or other government documentation to the designatedpayment', 21973:'officeby the 5th working day after government acceptance or approval, unless other arrangements have been made. this period of time', 21974:'does not extend the due dates prescribed in this section. acceptance should be completed as expeditiously as possible. the receiving', 21975:'report or other government documentation authorizing payment must, as a minimum, include the following: 1 contract number or other authorization', 21976:'for supplies delivered or services performed. 2 description of supplies delivered or services performed. 3 quantities of supplies received and', 21977:'accepted or services performed, if applicable. 4 date supplies delivered or services performed. 5 date thatthe designated government official i', 21978:'accepted the supplies or services; or ii approved the progress payment request, if the request is being made under the', 21979:'clause at 52.2325, payments under fixedprice construction contracts, or the clause at 52.23210, payments under fixedprice architectengineer contracts. 6 signature,', 21980:'printedname, title, mailing address, and telephone numberof the designated government official responsible for acceptance or approval functions. d billing office.', 21981:'the designated billing officemust immediately annotate each invoice with the actualdate it receives the invoice. e payment office. the designated', 21982:'payment office will annotate each invoice and receivingreport with theactual date it receives the invoice. 32.906making payments. a general. the', 21983:'government will not make invoice payments earlier than 7 days prior to the due dates specified in the contract unless', 21984:'the agency head determines 1 to make earlier paymenton a casebycase basis; or 2 that the use of accelerated payment', 21985:'methods is necessary. see 32.903a5, but see 32.0091a. b payment office.the designated payment office 1 will mail checks onthe same', 21986:'day they aredated; federal acquisition regulation 2 for paymentsmade by eft, willspecify adate on or before the established due dateforsettlement', 21987:'ofthe payment at a federal reserve bank; 3 when the due date falls on a saturday, sunday, orlegal holiday when', 21988:'government offices are closed,may make paymenton the following working daywithout incurring alate payment interest penalty. 4 when it is determined', 21989:'that the designated billing office erroneously rejected a proper invoice and upon resubmission of the invoice, will enter in the', 21990:'payment system the original date the invoice was received by the designated billing office for the purpose of calculating the', 21991:'correct payment due date and any interest penalties that may be due. c partial deliveries.1contracting officers must,where the nature of', 21992:'the work permits, write contract statements of work and pricing arrangements that allow contractors to deliver and receive invoice payments', 21993:'for discrete portions of the work as soon as completed and found acceptable by the government see 32.102d. 2 unless', 21994:'specifically prohibited by the contract, the clause at 52.2321, payments, provides that the contractor is entitled to payment for accepted', 21995:'partial deliveries of supplies or partial performance of services that comply with all applicable contract requirements and for which prices', 21996:'can be calculated from the contract terms. d contractor identifier. each payment or remittance advice will use the contractor invoice', 21997:'number in addition to any government or contract information in describing any payment made. e discounts. when adiscountforprompt payment is', 21998:'taken, the designated paymentoffice will make payment to the contractor as close as possible to, but not later than, the', 21999:'end of the discount period. the discount period is specified by the contractor and is calculated fromthe date of the', 22000:'contractor’s proper invoice. if the contractor has not placed a date onthe invoice, the due date is calculated from the', 22001:'date the designated billing office receives a proper invoice, provided the agency annotates such invoicewith the date ofreceipt atthe time', 22002:'of receipt. when the discount datefalls on asaturday, sunday, or legal holiday when government officesare closed, the designated payment officemay', 22003:'make payment onthe following working day and take a discount. payment terms are specified in the clause at 52.2328, discounts', 22004:'for prompt payment. 32.907 interest penalties. a late payment. the designated paymentoffice will pay an interest penalty automatically, without request', 22005:'from the contractor, when all of the following conditions, if applicable, have been met: 1 the designated billing office received', 22006:'a proper invoice. 2 the government processed a receiving report or other government documentation authorizing payment, and there was nodisagreement', 22007:'over quantity, quality, or contractor compliancewith anycontract requirement. 3 in the case of a final invoice, the payment amount is', 22008:'not subject to further contract settlement actions between the government and the contractor. 4 the designated payment office paid the', 22009:'contractor after the due date. 5 in the case of interim payments on costreimbursement contracts for services, when payment is', 22010:'made more than 30 daysafter the designated billing office receives a proper invoice. b improperly taken discount. the designatedpayment office', 22011:'will pay an interest penalty automatically, without request from the contractor, if the government takes a discount for prompt payment', 22012:'improperly. the interest penalty is calculated on the amount of discount taken for the period beginning with the firstday after', 22013:'the end of the discount period through the date when the contractor is paid. c failure to pay interest. 1', 22014:'the designated payment office will paya penalty amount,in addition to the interestpenalty amount, only if i the government owes an', 22015:'interest penalty of $1 or more; iithe designated payment officedoes not pay the interest penaltywithin 10 days after thedate the', 22016:'invoice amount is paid; and iii the contractor makes a written demand to thedesignated payment office for additional penalty payment', 22017:'in accordance with paragraph c2 of this section, postmarked not later than 40 days after the date the invoice amount', 22018:'is paid. 2 i contractors must support written demands for additional penalty payments with the following data. the government must', 22019:'not request additional data. contractors must a specifically assert that late payment interest is due under a specific invoice, and', 22020:'request payment of all overdue late payment interest penalty and such additional penalty as may be required; b attach a', 22021:'copy of the invoice on which the unpaid late payment interest is due; and c state that payment of the', 22022:'principal has been received, including the date of receipt. 3 if there is no postmark or the postmark is illegible', 22023:'subpart 32.9 prompt payment 32.909 ithe designatedpayment officethat receivesthe demand will annotate it with the date of receipt, provided the', 22024:'demand is received on or before the 40 thday after payment was made; or iiif the designated payment office fails', 22025:'to make the required annotation, the government willdetermine the demand’s validity basedon the date the contractor has placed on the', 22026:'demand; provided such date isno later thanthe 40 thday after payment was made. d disagreements. 1 the payment officewill not', 22027:'pay interest penaltiesif payment delays aredue to disagreement between the government and contractor concerning i the payment amount; ii contract', 22028:'compliance; or iii amounts temporarily withheld or retained in accordance with the terms of the contract. 2 the government and', 22029:'the contractor must resolve claims involving disputes, and any interest that may be payable in accordance with the disputes clause.', 22030:'e computation of interest penalties. the government will compute interest penalties in accordance with omb prompt payment regulations at 5', 22031:'cfr part 1315. these regulations are available via the internet at http://www.fms.treas.gov/prompt/. f unavailability of funds. the temporary unavailability of', 22032:'funds to make a timely payment does not relieve an agency from the obligation to pay interest penalties. 32.908contract clauses.', 22033:'a insert the clause at 52.23226, prompt payment for fixedprice architectengineer contracts, in solicitations and contracts that contain the clause', 22034:'at 52.23210, payments under fixedprice architectengineer contracts. 1 as authorized in 32.904c2, the contracting officermay modify the date in paragraph', 22035:'a4i of the clause to specify a period longer than 7 days for constructive acceptance or constructive approval, if requiredto', 22036:'afford thegovernment a practicable opportunity to inspect and test the supplies furnished or evaluate the services performed. 2 as provided', 22037:'in 32.903, agency policies and procedures may authorize amendment of paragraphs a1i and ii of the clause to insert a', 22038:'period shorter than 30 days but not less than 7 days for making contract invoice payments. b insert the clause', 22039:'at 52.23227, prompt payment for construction contracts, in all solicitations and contracts for construction see part 36. 1 as authorized', 22040:'in 32.904d1ib, thecontracting officer may modifythe date in paragraph a1ia of the clause to specify a period longerthan 14 days', 22041:'if required to afford the government a reasonable opportunity to adequately inspect the work and to determinethe adequacy of the', 22042:'contractor’s performance under the contract. 2 as authorized in 32.904d2iv, the contracting officermay modify the date in paragraph a4i of', 22043:'the clause to specify a period longer than 7 days for constructive acceptance or constructive approval ifrequired to afford the', 22044:'government a reasonable opportunity to inspect and test the supplies furnished or evaluate the services performed. c insert the clause', 22045:'at 52.23225, prompt payment, in all other solicitations and contracts, except when the clause at 52.2124, contract termsandconditionscommercial products and', 22046:'commercialservices, applies, or when payment terms and late payment penalties are established by other governmental authority e.g., tariffs. 1 as', 22047:'authorized in 32.904b1iib4, the contracting officer may modify the date in paragraph a5i of the clause to specify a period', 22048:'longerthan 7 days for constructive acceptance, ifrequired to afford the government areasonable opportunity to inspect and test the supplies furnished', 22049:'or to evaluate the services performed, except in the case of a contract for the purchase of a commercial product', 22050:'or commercial service, including a brandname commercial product for authorized resale e.g., commissary items. 2 as provided in 32.903, agency', 22051:'policies and procedures may authorize amendment of paragraphs a1i and ii of the clause to insert a period shorter than', 22052:'30 days but not less than 7 days for making contract invoice payments. 3 if the contract is a costreimbursement', 22053:'contract for services, use the clause with its alternate i. 32.909contractor inquiries. a direct questions involving 1 delinquent payments to', 22054:'the designated billing office ordesignated payment office; and 2 disagreementsin payment amount ortiming to the contracting officer for resolution. the', 22055:'contracting officer must coordinate withinappropriatecontracting channels and seek the advice of other offices as necessary to resolvedisagreements. federal acquisition regulation', 22056:'b small business concerns may contact the agency’s local small businessspecialist or representative fromthe office of small and disadvantaged business', 22057:'utilization to obtain additional assistance related to payment issues, late payment interest penalties, and information on the prompt payment act.', 22058:'subpart 32.10 performancebased payments 32.1004 subpart 32.10 performancebased payments 32.1000 scope of subpart. this subpart provides policy and procedures for', 22059:'performancebased payments under noncommercial purchases pursuant to subpart 32.1. 32.1001 policy. a performancebased payments are the preferredgovernment financing methodwhen the', 22060:'contractingofficer finds them practical, and the contractor agrees to their use. b performancebased payments are contract financing payments that are', 22061:'not payment for accepted items. c performancebased payments are fully recoverable, in the same manner as progress payments, in the', 22062:'event of default. d performancebased payments are contract financing payments and, therefore, are not subject to the interestpenalty provisions of', 22063:'prompt payment see subpart 32.9. thesepaymentsshallbemadeinaccordancewithagencypolicy. e performancebased payments shall not be used for 1 payments under costreimbursement line items;', 22064:'2 contracts for architectengineer services orconstruction, or for shipbuilding orship conversion, alteration, or repair, when the contracts provide for progress', 22065:'payments based upon a percentage or stage of completion; or 3 contracts awarded through sealed bid procedures. 32.1002 bases for', 22066:'performancebased payments. performancebased payments may be made on any of the following bases: a performance measured by objective, quantifiable methods.', 22067:'b accomplishment of defined events. c other quantifiable measures of results. 32.1003 criteria for use. the contractingofficer may use performancebasedpaymentsforindividual', 22068:'orders and contracts provided a thecontracting officer and offeror agree on the performancebased payment terms; b the contract, individual order,or', 22069:'line item is a fixedprice type; c for indefinite delivery contracts, the individual order does not provide for progress payments;', 22070:'and d for other than indefinite delivery contracts, the contract does not provide for progress payments. 32.1004 procedures. performancebased payments', 22071:'may be made either on a whole contract or on a deliverable item basis, unless otherwise prescribed by agency regulations.', 22072:'financing payments to be made on a whole contract basis are applicable to the entire contract, and not to specific', 22073:'deliverable items. financing payments to be made on a deliverable item basis are applicable to a specific individual deliverable item.', 22074:'a deliverable item for these purposes is a separate item with a distinct unit price. thus, a line item for', 22075:'10 airplanes, with a unit price of $1,000,000 each, has 10 deliverable itemsthe separate planes. a line item for 1', 22076:'lot of 10 airplanes, with a lot price of $10,000,000, has only one deliverable itemthe lot. a establishing performance bases.', 22077:'1 the basis for performancebased payments may be either specifically described events e.g., milestones or some measurable criterion of performance.', 22078:'each event or performance criterion that will trigger a finance payment shall be an integral and necessary part of contract', 22079:'performance and shall be identified in the contract, along with a description of what constitutes successful performance of the event', 22080:'or attainment of the performance criterion. the signing of contracts or modifications, the exercise of options, the passage of time,', 22081:'or other such occurrences do not represent meaningful efforts or actionsandshallnot be identified as events or criteria for performancebased payments.', 22082:'an event need not be a critical event in order to trigger a payment, but the government must be able', 22083:'to readily verify successful performance of each such event or performance criterion. 2 events or criteria may be either severable', 22084:'or cumulative. the successful completion of a severable event or criterion is independent of the accomplishment ofanyothereventor criterion. conversely, thesuccessfulaccomplishment', 22085:'of a cumulative event or criterion is dependent upon the previous accomplishment of another event. a contract may provide for', 22086:'more than one series of severable and/or cumulative performance events or criteria performed in parallel. the contracting officer shall include', 22087:'thefollowing in the contract: 32.1004 federal acquisition regulation i the contract shall not permit payment for a cumulative event or', 22088:'criterion until the dependent event or criterion has been successfully completed. ii the contract shall specifically identify severable events or', 22089:'criteria. iii the contract shall specifically identify cumulative events or criteria and identify which events or criteria are preconditions for', 22090:'the successful achievement of each event or criterion. iv because performancebased payments are contract financing, events or criteria shall not', 22091:'serve as a vehicle to reward the contractor for completion of performance levels over and above what is required for', 22092:'successful completion of the contract. v if payment of performancebased finance amounts is on a deliverable item basis, each event', 22093:'or performance criterion shall be part of the performance necessary for that deliverable item and shall be identified to a', 22094:'specific line item or subline item. b establishing performancebased finance payment amounts. 1 the contracting officer shall establish a complete,fully', 22095:'defined schedule of events or performance criteria and payment amounts when negotiating contract terms. if a contract action significantly affects', 22096:'theprice,or event or performance criterion, the contracting officer responsible for pricing the contract modification shall adjust the performancebased payment schedule', 22097:'appropriately. 2 total performancebasedpaymentsshall i reflect prudent contract financing provided only to the extent needed for contract performance see 32.104a;', 22098:'and ii not exceed 90 percent of the contract price if on a whole contract basis, or 90 percent of', 22099:'the delivery item price if on a delivery item basis. 3 the contract shall specifically state the amount of each', 22100:'performancebased payment either as a dollar amount or as a percentage of a specifically identified price e.g., contract price or', 22101:'unit price of the deliverable item. the payment of contract financing has a cost to the government interms ofinterest paidby', 22102:'the treasury toborrow funds to make the payment. because the contracting officer has widediscretion as to the timing and amount', 22103:'of theperformancebased payments, the contracting officershallensure that i the total contract price is fair and reasonable, all factors considered; and', 22104:'ii performancebased payment amounts are commensurate with the value of the performance event or performance criterion and are notexpected to', 22105:'resultin anunreasonably low or negative levelof contractor investment in the contract. to confirmsufficient investment, thecontracting officer may request expenditure profile', 22106:'information from offerors,but only if other information inthe proposal,or information otherwise available to the contractingofficer, isexpected to be insufficient. 4', 22107:'unless agency procedures prescribe the bases for establishing performancebased payment amounts, contracting officers may establish them on any rational basis,including', 22108:'but not limited to i engineering estimates of stages of completion; iiengineering estimates of hours or other measures of effort', 22109:'to be expended in performance ofan event or achievement of a performance criterion; or iii the estimated projected cost of', 22110:'performance of particular events. 5 when subsequent contractmodifications areissued, the contracting officer shall adjust the performancebased payment schedule as necessary', 22111:'to reflect the actions required by those contract modifications. c instructions for multiple appropriations. if there is more than one', 22112:'appropriation account or subaccount funding payments on the contract, the contracting officer shall provideinstructions to the government paymentoffice for distribution', 22113:'of financingpaymentsto therespective funds accounts. distribution instructions shall be consistent with the contract’s liquidation provisions. d liquidating performancebased finance payments.', 22114:'performancebased amounts shall be liquidated by deducting a percentage ora designated dollar amount fromthe deliverypayments. thecontracting officer shall specify the', 22115:'liquidation rate or designated dollar amount in the contract. the method of liquidation shall ensure complete liquidation no later than', 22116:'final payment. 1 if the contracting officer establishes the performancebased payments on a deliveryitem basis, the liquidation amount for each', 22117:'line item is the percent of that delivery item price that was previously paid under performancebased finance payments or the', 22118:'designated dollar amount. 2 if the performancebased finance payments are on a whole contract basis, liquidation is by predesignated liquidation', 22119:'amounts or liquidation percentages. e competitive negotiated solicitations. 1 if a solicitationrequests offerors to propose performancebased payments, the solicitation shall', 22120:'specify subpart 32.10 performancebased payments 32.1008 iwhat, if any, terms shall be included in all offers;and iithe extent towhich and', 22121:'how offerorproposed performancebased payment terms will be evaluated. unless agencies prescribe other evaluation procedures, if the contracting officer anticipates thatthe', 22122:'cost of providing performancebasedpayments wouldhavea significant impact on determining the best value offer, thesolicitation should state that the evaluationof the', 22123:'offeror’sproposed prices will includean adjustment toreflect the estimated cost tothe government of providing each offeror’s proposedperformancebased payments see alternatei to', 22124:'the provision at 52.23228. 2 the contractingofficer shall i review the proposed terms to ensure they comply with this section;', 22125:'and ii use the adjustment method at 32.205c if the price is to be adjusted for evaluation purposes in accordance', 22126:'with paragraph e1ii of this section. 32.1005 solicitation provisionand contract clause. a insert the clause at 52.23232, performancebased payments, in', 22127:'1 solicitations that may result in contracts providing for performancebased payments; and 2 fixedprice contracts under which the government will', 22128:'provide performancebased payments. b 1 insert the solicitation provision at 52.23228, invitation to propose performancebased payments, in negotiated solicitations that', 22129:'invite offerors topropose performancebased payments. 2 use the provision with its alternate i in competitive negotiated solicitations if the government', 22130:'intends to adjust proposed prices for proposal evaluation purposes see 32.1004e. 32.1006 [reserved] 32.1007 administration and payment of performancebased payments.', 22131:'a responsibility.the contracting officer responsible for administering performancebased payments see 42.302a13 for the contract shall review and approve all performancebased', 22132:'payments for that contract. b approval of financing requests. unless otherwise provided in agency regulations, or by agreement with the', 22133:'appropriate paymentofficial 1 the contractingofficer shall be responsible for receiving,approving, and transmitting all performancebased paymentrequests to the appropriate payment office;', 22134:'and 2 each approval shall specify the amount to be paid, necessary contractual information, and the appropriation accounts see 32.1004c', 22135:'to be charged for the payment. c reviews.the contracting officer isresponsible for determining what reviews arerequired for protection of the', 22136:'government’s interests. the contracting officer should consider the contractor’s experience, performance record, reliability, financial strength, and the adequacy of controls', 22137:'established by the contractor for the administration of performancebased payments. based upon the risk to the government, postpayment reviews and', 22138:'verifications should normally be arranged as consideredappropriateby the contracting officer. if considered necessary by the contracting officer, prepayment reviews may', 22139:'be required. d incomplete performance. the contracting officershallnot approve a performancebasedpayment until the specified event or performance criterion has been', 22140:'successfully accomplished in accordance with the contract. if an event is cumulative, thecontracting officer shall not approve the performancebased payment', 22141:'unless all identified preceding events or criteria are accomplished. e governmentcaused delay. entitlement to a performancebased payment is solely on', 22142:'the basis of successful performanceof the specifiedevents or performance criteria. however,if there is agovernmentcaused delay, the contracting officer may renegotiate', 22143:'the performancebased payment schedule to facilitate contractor billings for any successfully accomplished portions of the delayed event or criterion. 32.1008', 22144:'suspension or reduction of performancebased payments. the contractingofficer shall applythe policy and procedures in paragraphs a, b, c, and e', 22145:'of 32.5036, suspension or reductionof payments,whenever exercising thegovernment’s rights to suspendor reduce performancebased payments in accordance with paragraph e of', 22146:'the clause at 52.23232, performancebased payments. 32.1009 federal acquisition regulation 32.1009 title. a since the clause at 52.23232, performancebased payments,', 22147:'gives the government title to the property described in paragraph fof the clause, the contractingofficer shall ensure thatthe government title', 22148:'isnot compromised by other encumbrances. ordinarily, thecontracting officer,in theabsence of reason to believe otherwise, may rely upon the contractor’s certification', 22149:'contained in the payment request. b if the contracting officer becomes aware of any arrangement or condition that would impair', 22150:'the government’stitle to thepropertyaffected by theperformancebased payments clause, thecontracting officer shall requireadditional protective provisions. c theexistence of any such encumbrance', 22151:'is aviolation ofthe contractor’s obligations under the contract, andthe contracting officermay, if necessary, suspend or reduce payments under the termsof', 22152:'the performancebased payments clause covering failure to comply with a material requirement of the contract. in addition, if the contractor', 22153:'fails to disclose anexisting encumbrancein thecertification, the contracting officer should consult with legal counsel concerning possible violation of 31 u.s.c.3729,', 22154:'the false claims act. 32.1010 risk of loss. a under the clause at 52.23232, performancebased payments, and except for normal', 22155:'spoilage, the contractor bears the risk of lossforgovernmentproperty, even though title is vested in the government, unless the government has', 22156:'expressly assumed this risk. the clauses prescribed in this regulation related to performancebased payments, default, and terminations do not constitute', 22157:'a government assumption of risk. b if a loss occurs in connection with property for which the contractor bears the', 22158:'risk, and the property is needed for performance, the contractor isobligated to repay the government theperformancebased payments related to theproperty.', 22159:'c the contractor is not obligated to pay for the loss of property for which the government has assumed the', 22160:'risk of loss. however, a serious loss may impede the satisfactory progress of contract performance, so that the contractingofficer may', 22161:'need to act under paragraph e2 of the performancebased payments clause. in addition, while the contractor is not required to', 22162:'repay previous performancebased payments in the event of a loss for which the government has assumed the risk, such a', 22163:'loss may prevent the contractor from making the certification required by the performancebased payments clause. subpart 32.11 electronic funds transfer', 22164:'32.1105 subpart 32.11 electronic funds transfer 32.1100 scope of subpart. this subpart provides policy and procedures for contract financing and', 22165:'delivery payments to contractors by electronic funds transfer eft. 32.1101 statutory requirements. 31 u.s.c.3332 requires, subject to implementing regulations of', 22166:'the secretary of the treasuryat 31 cfr part 208, that eft be used to make all contract payments. 32.1102 definitions.', 22167:'as used in this subpart electronic funds transfer information eft means information necessary for making a payment by eft through', 22168:'specified eft mechanisms. governmentwide commercial purchase card means a card that is similar in nature to a commercial credit card', 22169:'that is used to make financing and delivery payments for supplies and services. the purchase card is an eft method', 22170:'and it may be used as a meansto meetthe requirement to pay by eft, to theextent that purchase card limits', 22171:'donot preclude such payments. payment information means the payment advice provided by the government to the contractor that identifies what', 22172:'the paymentis for, anycomputations or adjustments made by the government, and anyinformation required by the prompt payment act. 32.1103 applicability.', 22173:'the government shall provide all contract payments through eft except if a theoffice makingpayment undera contract that requires payment by', 22174:'eft, loses the ability to releasepayment by eft. to the extent authorizedby 31 cfr part 208,the paymentoffice shall make necessarypayments', 22175:'pursuant to paragraph a2 of the clause at either 52.23233 or 52.23234 until such time as it can make eft', 22176:'payments; b the payment is to be received by or on behalf of the contractor outside the united states and', 22177:'puerto rico but see 32.1106b; c a contract is paid in other than united states currency but see 32.1106b; d', 22178:'payment by eft under a classified contract could compromise the safeguarding of classified information or national security, or arrangements for', 22179:'appropriate eft payments would beimpracticaldue to securityconsiderations; e a contract isawarded bya deployed contractingofficer in the course of militaryoperations, including,', 22180:'but not limited to, contingency operations as defined in 2.101, or a contract is awarded by any contracting officerin theconduct', 22181:'of emergencyoperations, suchas responses to natural disasters or nationalor civilemergencies,if 1 eft is not known to be possible; or 2', 22182:'eft payment would not support the objectives of the operation; f the agency does not expect to make more than', 22183:'one payment to the same recipient within a oneyear period; g an agency’s need for supplies and services is of', 22184:'such unusual and compelling urgency that the government would be seriously injured unless payment is made by a method other', 22185:'than eft; h there is only one source for supplies and services and the government would be seriously injured unless', 22186:'payment is made by a method other than eft; or iotherwiseauthorized by departmentof the treasury regulations at31 cfr part 208.', 22187:'32.1104 protection ofeft information. the government shall protect against improper disclosure of contractors’ eft information. 32.1105 assignment of claims. the', 22188:'use of eft payment methods is not a substitute for a properly executed assignment of claims in accordance with subpart', 22189:'32.8.eftinformationthatshowstheultimaterecipientofthetransfertobeotherthanthecontractor,intheabsence of a proper assignment of claims, is considered to be incorrect eft information within the meaning of the suspension', 22190:'of payment paragraphs of the eft clauses at 52.23233 and 52.23234. 32.1106 federal acquisition regulation 32.1106 eft mechanisms. a domestic', 22191:'eft mechanisms. the eft clauses at 52.23233 and 52.23234 are designed for use with the domestic unitedstates banking system, usingunited', 22192:'statescurrency, and only thespecified mechanisms u.s. automated clearing house,and fedwire transfer system of eft. however, the head of anagency may', 22193:'authorize the use of any other eft mechanism for domestic eft with theconcurrence of the office oragency responsible for making', 22194:'payments. b nondomestic eft mechanisms and other than united states currency. the government shall provide payment by other than eft', 22195:'for payments received by or on behalf of the contractor outside the united states and puerto rico or for contracts', 22196:'paidin other than unitedstates currency. however, the head of anagency may authorize appropriate useof eft with the concurrence of the', 22197:'office or agency responsible for making paymentsif 1 the political, financial, and communications infrastructure in a foreign country supports payment', 22198:'by eft; or 2 payments of other than united states currency may be made safely. 32.1107 payment information. the payment', 22199:'or disbursing office shall forward tothe contractor available payment information that is suitable for transmission as of the date of', 22200:'release of the eft instruction to the federal reserve system. 32.1108 paymentby governmentwide commercial purchase card. a governmentwide commercialpurchase card', 22201:'chargeauthorizesthe third party e.g., financial institution that issued the purchase card tomakeimmediatepayment to the contractor. the government reimburses the third', 22202:'party ata later date for the third party’s payment to the contractor. a the clause at 52.23236, payment by third', 22203:'party, governs when a contractor submits a charge againstthe purchase card for contract payment. theclause provides thatthe contractor shall make', 22204:'such payment requests by a charge to a government account with the third party at the time the payment clauses', 22205:'of the contract authorizes the contractor to submit a request for payment, andforthe amountdue in accordance with the terms of', 22206:'the contract. to the extent that such a payment would otherwise be approved, the charge against the purchase card should', 22207:'notbe disputed when the charge is reported to thegovernment by the third party. to the extent that such payment would', 22208:'otherwise nothavebeenapproved, anauthorized individual see 1.6033 shall take action to removethe charge, suchas by disputing the charge with the third', 22209:'party or by requesting that the contractor credit the charge back tothe government under the contract. b 1writtencontractstobepaidbypurchasecardshouldincludetheclauseat 52.23236,paymentbythirdparty,as prescribed', 22210:'by 32.1110d. however, payment bya purchase card also may be made under a contract that does not contain the clause', 22211:'to the extent the contractor agrees to accept that method of payment. 2 i when it is contemplated that the', 22212:'governmentwide commercial purchase card will be used as the method of payment, andthe contract or order is above the micropurchase', 22213:'threshold, contracting officers are required toverify by looking in thesystemforaward management sam whether the contractorhas any delinquent debt subject to', 22214:'collection underthe treasury offset program top at contract award and order placement. information on top is available at http:// fms.treas.gov/debt/index.html.', 22215:'iithe contracting officer shall notauthorize thegovernmentwide commercial purchase card as a method of paymentduring any periodthe samindicates that the contractor', 22216:'has delinquentdebt subject to collection under the top. in such cases, payments under the contract shall be made in accordance', 22217:'with the clause at 52.23233, payment by electronic funds transfersystemforaward management, or 52.23234, payment by electronic fundstransferother than system for', 22218:'award management, as appropriate see far 32.1110d. iii contractingofficers shall not use the presence of the sam debt flag indicator', 22219:'toexclude a contractor from receipt ofthe contract award or issuance or placement of an order. iv the contracting officer may', 22220:'take steps to authorize payment bygovernmentwide commercial purchase card when a contractor alerts the contracting officer that the sam debt', 22221:'flag indicator has been changed tono longer show a delinquent debt. c the clause at 52.23236, payment by third party,', 22222:'requires that the contract 1 identify the third party and the particular purchase card to be used; and 2 not', 22223:'include the purchase card account number. the purchase card account number should beprovidedseparately to thecontractor. subpart 32.11 electronic funds transfer', 22224:'32.1110 32.1109 eft information submittedby offerors. if offerors are required to submit eft information prior to award, the successful offeror', 22225:'is not responsible for resubmitting this information after award of the contract except to make changes, or to place the', 22226:'information on invoices if required by agency procedures. therefore,contracting officers shall forward eft informationprovidedby the successful offeror to the appropriate', 22227:'office. 32.1110solicitation provision andcontract clauses. a thecontracting officer shall insert the clause at 1 52.23233, payment by electronic funds transfersystemforaward', 22228:'management, in solicitations and contracts that include the provision at 52.2047 system for award management, or anagency clause thatrequiresa contractorto', 22229:'be registered in sam and maintain registration until final payment, unless– i payment will be made through a third party', 22230:'arrangement see 13.301 and paragraph d of this section; or ii an exception listed in 32.1103a through i applies. 2', 22231:'i 52.23234,paymentbyelectronicfundstransferotherthansystemforawardmanagement,insolicitations and contracts that require eft as the method for payment but do not include the provision at 52.2047,', 22232:'system for award management, or a similar agency clause that requires the contractor to be registered in the sam. ii', 22233:'aifpermittedbyagencyprocedures,thecontractingofficermayinsertinparagraphb1oftheclause,a particular time after award, such as a fixed number of days, or event such as the submission of the', 22234:'first request for payment. b if no agency procedures are prescribed, the time period inserted in paragraph b1 of the', 22235:'clause shall be no later than 15 days prior to submission of the first request for payment. b if the', 22236:'head of the agency has authorized, in accordance with 32.1106, to use a nondomestic eft mechanism, the contracting officershallinsert in', 22237:'solicitations and contracts a clause substantially the sameas 52.23233 or 52.23234 that clearly addresses the nondomestic eft mechanism. c if', 22238:'eftinformation is to be submitted toother thanthe paymentoffice inaccordance withagency procedures, the contracting officershallinsert in solicitations and contracts the clause', 22239:'at 52.23235, designation ofofficeforgovernment receipt of electronic fundstransferinformation, or a clause substantially the sameas 52.23235 that clearly informs the contractor', 22240:'where to send the eft information. d if payment under a written contractwill be made bya charge to a government', 22241:'accountwith a third party suchas a governmentwide commercialpurchase card, then the contracting officer shall insert theclause at 52.23236, payment by', 22242:'third party, insolicitationsand contracts. payment by a purchasecard may also be made under acontract that does not contain the clause', 22243:'at 52.23236, to the extent the contractor agrees to accept that method of payment. when the clause at 52.23236 isincluded', 22244:'ina solicitation or contract, the contractingofficer shall also insert the clause at 52.23233, payment by electronic funds transfersystem for award', 22245:'management, or 52.23234,payment by electronic funds transferotherthan system for award management, as appropriate. e if the contract or agreement provides', 22246:'for the use of deliveryorders, and provides that the ordering officedesignate the method of payment for individual orders, the contracting', 22247:'officershallinsert, in the solicitation and contract or agreement, the clause at 52.23237, multiple payment arrangements, and, to the extent they', 22248:'are applicable, the clauses at 1 52.23233, payment by electronic funds transfersystemforaward management; 2 52.23234, payment by electronic funds transferother', 22249:'than system for award management;and 3 52.23236, payment by third party. f ifmore thanone disbursingoffice will make payment under a', 22250:'contract or agreement, the contracting officer, or ordering officeif the contract provides for choices betweeneft clauseson individual orders or classes', 22251:'oforders, shall include or identify the eft clause appropriate for each officeand shall identify the applicability by disbursing office and', 22252:'line item. g if the solicitation contains the clause at 52.23234, payment by electronic funds transferother than system for award', 22253:'management, and an offeror is required tosubmit eft information priorto award 1 the contractingofficer shall insertin thesolicitation the provision at', 22254:'52.23238, submission of electronic funds transfer informationwith offer,or aprovision substantially the same; and 2 for sealed bid solicitations,the contracting officer', 22255:'shall amend 52.23238 to ensure thata bidder’seft information i is not a part of the bid to be opened at', 22256:'the public opening; and ii may not be released to members of the general public who request a copy of', 22257:'the bid. this page intentionally left blank. 32.114 part 33 protests, disputes, and appeals sec. 33.000 scope of part. 33.001', 22258:'general. subpart 33.1 protests 33.101 definitions. 33.102 general. 33.103 protests to the agency. 33.104 protests to gao. 33.105 protest at', 22259:'the u.s. court of federal claims. 33.106 solicitation provision and contract clause. 33.201 33.202 33.203 33.204 33.205 33.206 33.207 33.208', 22260:'33.209 33.210 33.211 33.212 33.213 33.214 33.215 subpart 33.2 disputes and appeals definitions. disputes. applicability. policy. relationship of the disputes', 22261:'statute to pub. l.85804. initiation of a claim. contractor certification. interest on claims. suspected fraudulent claims. contracting officer’s authority. contracting', 22262:'officer’s decision. contracting officer’s duties upon appeal. obligation to continue performance. alternative dispute resolution adr. contract clauses. this page intentionally', 22263:'left blank. subpart 33.1 protests 33.102 33.000scope of part. this part prescribes policies and procedures for filing protests and for', 22264:'processing contract disputes and appeals. 33.001general. there are other federal courtrelated protest authorities and disputeappeal authorities that are not covered', 22265:'by this part of thefar, e.g., 28 u.s.c. 1491 for courtof federal claims jurisdiction. contracting officers should contact their designated', 22266:'legal advisor for additional information whenever they become aware of any litigation related to their contracts. subpart 33.1 protests 33.101definitions.', 22267:'as used in this subpart day means a calendarday, unless otherwise specified. in thecomputationof any period 1 the day of', 22268:'the act, event, or default from which the designated period of time begins to run is not included; and 2', 22269:'the last day after the act, event, or default is included unless ithe last day isa saturday,sunday, or federalholiday; or', 22270:'ii in the case of a filing of a paper at any appropriate administrative forum, the last day is a', 22271:'day on which weather or other conditions cause the closingof the forum for allor part of the day, in which', 22272:'event the next day on which the appropriate administrative forum is open is included. filed means the complete receipt of', 22273:'any document by an agency before its close of business. documents received after close of business are considered filedas of', 22274:'the nextday. unless otherwise stated, the agency close of business ispresumed to be 4:30 p.m., local time. interested party for', 22275:'the purpose of filing a protest means anactual or prospective offeror whose direct economic interest would beaffected by theaward of', 22276:'a contractor by thefailureto award a contract. protest means a written objection by an interested party to any of the', 22277:'following: 1 a solicitation or other request by an agency for offers for acontract for the procurementof property or services.', 22278:'2 the cancellation of the solicitation or other request. 3 an award or proposed award of the contract. 4 a', 22279:'termination or cancellation of an award of the contract, if the written objection contains an allegation that the termination or', 22280:'cancellation is based in whole or in part on improprieties concerning the award of the contract. protest venue means protestsfiled', 22281:'with the agency, the government accountability office, or the u.s. court offederal claims. u.s. district courts do not have any', 22282:'bid protest jurisdiction. 33.102general. a without regard to the protest venue, contracting officers shall consider all protests and seeklegal advice,', 22283:'whether protests are submittedbefore or afteraward and whether filed directly with theagency,the government accountability office gao, or the u.s. court', 22284:'of federalclaims. see 19.302 for protests of small business status, 19.305 for protests of disadvantaged business status, 19.306 for protests', 22285:'of hubzone small business status, and 19.307 for protests of service disabled veteranowned small business status, and m for protests', 22286:'of the status of an economically disadvantaged women owned small business concernor of a womenownedsmall business concern eligible under the', 22287:'womenownedsmall business program. b if, in connection with a protest, the head of an agency determines that a solicitation, proposed', 22288:'award, or award does not comply with the requirements of law or regulation, the head of the agency may 1', 22289:'takeanyaction that could have been recommendedby the comptroller general had the protest been filedwith the government accountability office; 2 pay', 22290:'appropriate costs as stated in 33.104h; and 3 require the awardee toreimburse the government’scosts, as provided in this paragraph, where', 22291:'a postaward protest is sustained as the resultof an awardee’s intentionalor negligent misstatement, misrepresentation,or miscertification. in addition to any other', 22292:'remedy available, and pursuant to the requirements of subpart 32.6, the government may collect this debt byoffsetting the amount againstany', 22293:'payment due the awardee under any contract between the awardee and the government. federal acquisition regulation i when a protest', 22294:'is sustained by gao under circumstances that may allow the government to seek reimbursement for protestcosts, the contracting officerwill determine', 22295:'whether the protest was sustained based on the awardee’s negligent or intentional misrepresentation. if the protest was sustained on several', 22296:'issues, protest costs shall be apportioned according to thecosts attributable to the awardee’s actions. iithe contracting officer shall reviewthe amount', 22297:'of the debt, degree of the awardee’sfault, and costs of collection, to determine whether a demand for reimbursement ought to', 22298:'be made. if it is in the best interests of the government to seek reimbursement, thecontracting officer shall notify the', 22299:'contractorin writing of the nature and amount of the debt, andthe intention to collect by offset if necessary. prior toissuing', 22300:'a finaldecision,the contracting officershallafford the contractor an opportunity to inspect and copy agency records pertaining to the debt to the', 22301:'extent permitted by statute and regulation, and to request review of the matter by the head of the contracting activity.', 22302:'iii when appropriate, thecontracting officer shall also refer the matter to the agency debarmentofficial for consideration under subpart 9.4. c', 22303:'in accordance with 31 u.s.c.1558, with respect to any protest filed with the gao, if the funds available to the', 22304:'agency for a contract atthe time a protest is filedin connection with a solicitation for, proposed award of, or award', 22305:'of such a contract would otherwise expire, such funds shall remain available for obligation for 100 days after the date', 22306:'on which the final ruling is made on the protest. a ruling is considered final on the date on which', 22307:'the time allowed for filing an appeal or request for reconsideration has expired, orthe date onwhich a decision is rendered', 22308:'onsuch appeal or request, whichever is later. d protest likely after award. the contracting officer may stay performance of a', 22309:'contract within the time period contained in paragraph 33.104c1 if the contracting officermakes a written determinationthat 1 a protest is', 22310:'likely to be filed; and 2 delay of performance is, under the circumstances, in the best interests of the united', 22311:'states. e an interested party wishing to protest is encouraged to seek resolution within the agency see 33.103 before filing', 22312:'a protest with the gao, but may protest to the gao in accordance with gao regulations 4 cfr part 21.', 22313:'f no person may file a protest at gao for a procurement integrity violation unless that person reported to the', 22314:'contracting officer the information constitutingevidence of the violation within 14 days after the personfirstdiscovered thepossible violation 41 u.s.c. 2106. 33.103', 22315:'protests to the agency. a reference. executive order12979, agency procurement protests, establishes policy on agency procurement protests. b priorto submission', 22316:'of an agency protest, all parties shall use their best effortsto resolve concerns raised by an interested party at the', 22317:'contracting officer levelthroughopen and frank discussions. c the agency should provide for inexpensive, informal, procedurally simple, and expeditious resolution of', 22318:'protests. where appropriate,the use of alternative dispute resolution techniques, third party neutrals, and anotheragency’s personnel are acceptable protest resolution methods.', 22319:'d the following procedures areestablished to resolve agency protestseffectively, to build confidence in the government’s acquisition system, and to reduce', 22320:'protests outside ofthe agency: 1 protestsshallbe concise andlogicallypresented to facilitatereview by theagency. failure to substantially comply with any of the', 22321:'requirements of paragraph d2 of this section may be grounds for dismissal of the protest. 2 protests shall include the', 22322:'following information: iname, address, and faxand telephone numbers of theprotester. iisolicitation or contract number. iii detailed statement of the legal', 22323:'and factual grounds for the protest, to include a description of resulting prejudice to the protester. iv copies of relevant', 22324:'documents. v request for a rulingby the agency. vi statement as to the form of relief requested. vii all information', 22325:'establishing that the protester is an interested party for the purpose of filing a protest. viii all information establishing the', 22326:'timeliness of the protest. 3 all protests filed directly with the agency willbe addressed to the contractingofficer or other official', 22327:'designated to receive protests. 4 in accordance with agency procedures, interested parties may request an independent review of their protest', 22328:'at a levelabove the contracting officer; solicitations should advise potential bidders and offerors that thisreview is available. agency procedures and/or', 22329:'solicitations shall notify potential bidders andofferorswhetherthisindependent review is subpart 33.1 protests 33.104 available as an alternative to considerationby the contractingofficer', 22330:'of a protest or is available as an appeal ofa contracting officer decisionon a protest. agencies shall designate the officials', 22331:'who are to conduct this independent review, but the officialsneednot be within the contractingofficer’s supervisory chain. whenpracticable, officials designated toconduct', 22332:'the independent review should not have had previous personal involvement in the procurement. if there is an agency appellate reviewof', 22333:'the contractingofficer’s decisionon the protest,itwill not extend gao’s timeliness requirements. therefore, any subsequent protest to the gao must be filed', 22334:'within 10 days of knowledge of initial adverse agency action 4 cfr21.2a3. e protests based on alleged apparent improprieties in', 22335:'a solicitation shall be filed before bid opening or the closing date for receipt of proposals. in all other cases,', 22336:'protests shall be filed no later than 10 days after the basis of protest is known or should have been', 22337:'known,whichever isearlier. the agency, for good causeshown, or where it determines that aprotest raises issues significant tothe agency’s acquisition system,', 22338:'may consider the merits of any protest which is not timely filed. f action upon receipt of protest. 1 upon', 22339:'receipt of a protest before award, a contract may not be awarded, pending agency resolutionof the protest,unlesscontract awardis justified, in', 22340:'writing, for urgent and compellingreasons or is determined, in writing, to be in the best interest of the government. such', 22341:'justification or determination shall be approved at a levelabove the contracting officer, or by anotherofficial pursuant to agency procedures. 2', 22342:'if award is withheld pending agency resolution of theprotest, the contractingofficer will inform the offerors whose offers might become eligible', 22343:'for award of the contract. if appropriate,the offerors should be requested, beforeexpiration of thetime for acceptance of theiroffers, toextend the', 22344:'time for acceptance to avoidthe need for resolicitation. in the event of failure to obtainsuch extension of offers, consideration should', 22345:'be given to proceedingwith award pursuant to paragraph f 1 of this section. 3 upon receipt ofa protest within 10', 22346:'days after contract award orwithin 5days after a debriefing dateoffered to the protester under a timely debriefing request in accordance', 22347:'with 15.505 or 15.506, whichever islater, the contracting officer shall immediately suspend performance, pendingresolution of the protestwithin the agency, including', 22348:'any reviewby an independent higher level official, unless continuedperformance is justified, in writing,forurgentand compelling reasonsor is determined, in writing, to', 22349:'be in the best interest of the government. such justification or determination shall be approved at a level above thecontracting', 22350:'officer, or by another official pursuantto agency procedures. 4 pursuing an agency protest does not extend the time for obtaining', 22351:'a stay at gao. agencies may include, as part of the agency protest process, a voluntary suspension period when agency', 22352:'protests are denied and the protester subsequently files at gao. g agencies shall make their best efforts to resolveagency protests', 22353:'within35 days after the protest is filed. to the extent permitted by law and regulation, the parties may exchange relevant', 22354:'information. h agency protest decisions shall be wellreasoned, and explain the agency position. the protest decision shall be provided to', 22355:'the protester using a method that provides evidence of receipt. 33.104 protests to gao. procedures for protests to gao are', 22356:'found at 4 cfr part 21 gao bid protest regulations. in the event guidance concerning gao procedure in this section', 22357:'conflicts with 4 cfr part 21, 4 cfr part 21 governs. a general procedure. 1 a protester isrequired to furnish', 22358:'a copy of its complete protest to the official and location designated inthe solicitationor, in the absence of such a', 22359:'designation, to the contracting officer, soitis receivedno later than 1 day after the protest is filed with the gao. the', 22360:'gao may dismiss the protest if the protester fails to furnish a complete copy of theprotest within1 day. 2 immediatelyafter', 22361:'receipt of the gao’swritten notice that a protest has been filed, theagency shall give noticeof theprotest tothe contractor if theaward', 22362:'hasbeenmade,or, if no award has been made, to allparties whoappear to have a reasonable prospect of receiving award if the', 22363:'protest is denied. the agency shall furnish copies of the protest submissions to such parties with instructions to i communicate', 22364:'directly with the gao, and ii provide copies of any such communication to the agency and to other participating parties', 22365:'when they becomeknown. however,if the protester has identified sensitive information and requests aprotective order, then the contracting officer shall obtain', 22366:'a redactedversionfrom the protester to furnish to other interested parties, if one has not already been provided. 3 iuponnoticethataprotesthasbeenfiledwiththegao,thecontractingofficershallimmediatelybegin compiling', 22367:'the information necessary for a report to the gao. the agency shall submit a complete report to the gao within', 22368:'30 days after the gao notifies the agency by telephone that a protest has been filed, or within 20 days', 22369:'after receipt from the gao of a determination to use the express option, unless the gao a advises the agency', 22370:'that the protest has been dismissed; or federal acquisition regulation b authorizes a longer period inresponse to an agency’s request', 22371:'for an extension. any new date is documented in the agency’s file. iiwhen a protest is filed with the gao,and', 22372:'an actualor prospective offeror so requests, the procuringagency shall, inaccordancewith anyapplicable protective orders, provide actual orprospective offerors reasonable access to', 22373:'the protestfile. however,if the gao dismisses theprotest beforethe documentsare submitted to the gao, thenno protest file need be made available.', 22374:'information exempt from disclosure under 5 u.s.c.552 may be redacted from the protest file. the protestfile shall bemade available to', 22375:'nonintervening actualor prospective offerors within a reasonable time after submittal of an agency report to the gao. the protest file', 22376:'shall include an index and as appropriate a the protest; b the offer submittedby the protester; c the offer being', 22377:'considered for award or being protested; d all relevant evaluation documents; e the solicitation, including the specifications or portions relevant', 22378:'to the protest; f the abstractof offers or relevantportions; and g any other documents that the agency determines are relevant', 22379:'to the protest, including documents specifically requested by theprotester. iii at least 5 days prior to the filing of the', 22380:'report, in cases in which the protester has filed a request for specific documents, the agency shall provide to all', 22381:'parties and the gao a list of those documents, or portions of documents, that the agency has released to the', 22382:'protester or intends to produce in its report, and those documents that the agency intends to withholdfrom the protester and', 22383:'thereasons for theproposed withholding. any objection tothe scope of the agency’s proposed disclosure or nondisclosure of the documents must be', 22384:'filed with the gao and the other parties within 2 days after receipt of this list. iv the agency report', 22385:'to the gao shall include a a copy of the documents described in 33.104a3ii; b the contracting officer’s signedstatement of', 22386:'relevant facts, including a best estimate of the contractvalue, and a memorandum oflaw. the contractingofficer’s statement shall set forth findings,', 22387:'actions, and recommendations, and any additional evidence or information not provided in the protest file that may be necessary to', 22388:'determine the merits of the protest; and c a list of parties being provided the documents. 4 i at the', 22389:'same time the agency submits its report to the gao, the agency shall furnish copies of its report to the', 22390:'protester and any intervenors. a party shall receive all relevant documents, except a those that the agency has decided to', 22391:'withhold from that party for any reason, including those covered by a protective order issued by the gao. documents covered', 22392:'by a protective order shall be released only in accordance with the terms of the order. examples of documents the', 22393:'agency may decide toexclude from a copy of the report include documents previously furnished to or prepared by a party;', 22394:'classified information; and information that would give the party a competitive advantage; and b protester’s documents which the agency determines,', 22395:'pursuant to law or regulation, to withhold from any interested party. i if the protester requests additional documents within 2', 22396:'days after the protester knew the existence or relevance of additional documents, or should have known, the agency shall provide', 22397:'the requested documents to the gao within 2 days of receipt of the request. a the additional documents shall also', 22398:'be provided to the protester and other interested parties within this 2day period unless the agency has decided to withhold', 22399:'them for any reason see subdivision a4i of this section. this includes any documents covered by a protective order issued', 22400:'by the gao. documents covered by a protective order shall be provided only inaccordance withthe terms of theorder. b the', 22401:'agency shall notify the gao of any documents withheld from the protester and other interested parties and shall state the', 22402:'reasons for withholding them. 5 the gao may issue protective orders which establish terms, conditions, and restrictions for the provision', 22403:'of any document to an interestedparty. protective orders prohibit or restrict the disclosure by the party ofprocurement sensitive information, trade', 22404:'secrets or other proprietary or confidential research, development or commercial information that is contained in such document. protective orders do', 22405:'not authorize withholding any documents or information from the united states congressor an executive agency. subpart 33.1 protests 33.104 i', 22406:'requests for protective orders. any party seeking issuance of a protective order shall file its request with the gao as', 22407:'soon as practicable after the protest is filed, with copies furnished simultaneously to all parties. ii exclusions and rebuttals. within', 22408:'2 days after receiptof acopy ofthe protective order request, any party may file with the gaoa requestthat particular documents be', 22409:'excluded from the coverage of the protective order, or that particular parties or individualsbe included in or excludedfrom the protective', 22410:'order. copies ofthe request shall be furnished simultaneously to all parties. iii additional documents. if the existence or relevance of', 22411:'additional documents first becomes evident after a protective order has been issued, any party may request that these additional documents', 22412:'be covered by the protective order. any party to the protective order also may request that individuals not already covered', 22413:'by the protective order be included in theorder. requests shall be filedwith the gao, with copies furnished simultaneously to all', 22414:'parties. iv sanctions and remedies. the gao may impose appropriate sanctions for any violation of the terms of the protective', 22415:'order. improper disclosure of protected information willentitle the aggrieved party to all appropriate remedies underlawor equity. thegao may also take', 22416:'appropriate action against an agency which fails to provide documents designated ina protective order. 6 the protester and other interested', 22417:'parties are required to furnish a copy of any comments on the agency report directly to the gao within 10', 22418:'days, or 5 days if express option is used, after receipt of the report, with copies provided to thecontracting officer', 22419:'and to otherparticipating interested parties. if a hearing is held, thesecommentsare due within 5 days after the hearing. 7 agencies', 22420:'shall furnishthe gao with the name,title,andtelephone number ofoneor more officials in both field and headquarters offices, if desired whom the', 22421:'gaomay contact who areknowledgeable about the subject matter of the protest. eachagency shall beresponsibleforpromptly advising the gaoof any changein thedesignated', 22422:'officials. b protests before award. 1 when the agency has received notice from the gao of a protest filed directly', 22423:'with the gao, a contract may not be awarded unless authorized, in accordance with agency procedures, by the head of', 22424:'the contracting activity, on a nondelegablebasis, upon a writtenfinding that iurgent and compellingcircumstances which significantly affect the interest of the', 22425:'united states will not permit awaiting the decision of the gao; and iiawardis likely to occurwithin 30 days of thewritten', 22426:'finding. 2 a contract award shall not be authorized until the agency has notified the gao of the finding in', 22427:'paragraph b1 of this section. 3 when a protest against the making of an award is received and award will', 22428:'be withheld pending disposition of the protest, the contracting officer should inform the offerors whose offersmightbecome eligibleforaward of theprotest. if', 22429:'appropriate, those offerors should be requested,before expiration ofthe time for acceptance of their offer, to extend thetime for acceptance to', 22430:'avoid the need for resolicitation. in theeventof failure to obtain such extensions of offers, consideration should be given to proceeding', 22431:'under paragraph b1 of this section. c protests after award. 1 when the agency receives notice of a protest from', 22432:'the gao within 10 days after contract award orwithin 5 days after a debriefing dateoffered to the protesterforanydebriefingthat isrequired by', 22433:'15.505 or 15.506, whichever is later, thecontracting officer shall immediately suspend performanceor terminate the awarded contract, except as provided in', 22434:'paragraphs c2 and 3 of this section. 2 in accordance with agency procedures, the head ofthe contracting activity may, ona', 22435:'nondelegable basis, authorize contract performance, notwithstanding the protest, upon a written finding that i contract performance will be in the', 22436:'best interests of the united states; or iiurgent and compellingcircumstances that significantly affect theinterests of the united states will not', 22437:'permit waitingforthe gao’s decision. 3 contract performance shall not be authorized until the agency has notified the gao of the', 22438:'finding in paragraph c 2 of this section. 4 when it is decided to suspendperformance or terminate the awarded contract,', 22439:'the contracting officer should attempt to negotiate a mutual agreement on a nocost basis. 5 when the agency receives notice', 22440:'of a protest filed with the gao after the dates contained in paragraph c1, thecontracting officer need not suspendcontract performance', 22441:'or terminate theawarded contract unless the contracting officer believes that an award may beinvalidated and a delay in receiving the', 22442:'supplies or servicesis not prejudicial to the government’s interest. federal acquisition regulation d findings and notice. if the decision is', 22443:'to proceed with contract award, or continue contract performance under paragraphs b orc of this section,the contracting officer shall include', 22444:'the written findings or other requireddocumentation in the file. the contracting officer also shall give written notice of the decision', 22445:'to the protester and other interested parties. e hearings. the gaomay hold a hearing at the requestof the agency, a', 22446:'protester, or other interested party who has responded to the notice in paragraph a2 of this section. a recording or', 22447:'transcription of the hearing will normally be made, and copies may be obtained from the gao. all parties may file', 22448:'comments on the hearing and the agency report within 5 days of the hearing. f gao decision time. gao issues', 22449:'its recommendation on a protest within 100 days from the date of filing of the protest with the gao, or', 22450:'within 65 days under the express option. the gao attempts to issue its recommendation on an amended protest that adds', 22451:'a new ground of protest within the time limit of the initial protest. if an amended protest cannot be resolved', 22452:'within the initial time limit, the gao may resolve the amended protest through an express option. g notice to gao.', 22453:'if the agency has not fully implemented the gao recommendations with respect to a solicitation for a contract or an', 22454:'award or a proposed award of a contract within 60 days of receiving the gao recommendations, the head of the', 22455:'contracting activity responsible for that contract shall report the failure to the gao not later than 5 days after the', 22456:'expiration of the 60day period. the report shall explainthe reasonswhy the gao’s recommendation, exclusiveof costs, has not been followed by', 22457:'the agency. h award of costs. 1 if the gao determines that a solicitation for a contract, a proposed award,', 22458:'or an award of a contract does not comply with a statute or regulation, the gao may recommend that the', 22459:'agency pay to an appropriate protester the cost, exclusive of profit, of filing and pursuing the protest,including reasonable attorney, consultant,and', 22460:'expertwitness fees, and bid and proposal preparation costs. the agency shall use funds available for the procurement to pay the', 22461:'costs awarded. 2 the protester shall file itsclaim for costs with the contracting agencywithin 60 days after receipt ofthe gao’s', 22462:'recommendation that the agency pay the protester its costs. failure to file the claim within that time may result in', 22463:'forfeiture of theprotester’s right to recover its costs. 3 the agency shall attempt to reach an agreement on the amount', 22464:'of costs to be paid. if the agency and the protester areunable to agree on theamount to be paid, thegao', 22465:'may,upon request ofthe protester, recommendto theagency the amount of costs that the agency should pay. 4 within 60 days after', 22466:'the gaorecommends the amount of costs the agencyshouldpaythe protester, the agency shall notify the gao of the action taken by', 22467:'the agency in response to the recommendation. 5 no agency shall pay a party,otherthan a smallbusinessconcern withinthe meaningof section 3a', 22468:'ofthe small business act see 2.101, small business concern, costs under paragraph h2 of this section i for consultant and', 22469:'expert witness fees that exceed the highest rate of compensation for expert witnesses paid by the government pursuant to 5', 22470:'u.s.c.3109 and 5 cfr 304.105; or iifor attorneys’ fees that exceed $150 per hour, unless the agency determines, based on', 22471:'the recommendation of thecomptroller generalon acasebycasebasis, that an increase in the cost of living or a special factor, such as', 22472:'the limited availability of qualified attorneys for the proceedings involved, justifies a higher fee. the cap placed on attorneys’ fees', 22473:'for businesses, other than small businesses, constitutes a benchmark as to a reasonable level for attorneys’ fees for small businesses.', 22474:'6 before paying a recommended award of costs, agency personnel should consult legal counsel. section 33.104h applies to all recommended', 22475:'awards of costs that have not yet been paid. 7 any costs the contractor receives under this section shall not', 22476:'be the subject of subsequent proposals, billings, or claims against the government, and those exclusions should be reflected in the', 22477:'cost agreement. 8 if the government pays costs, as provided in paragraph h1 of this section, where a postaward protest', 22478:'is sustained as the resultof an awardee’s intentionalor negligent misstatement, misrepresentation,or miscertification, the government may require the awardee to reimburse', 22479:'the government the amount of such costs. in addition to any other remedy available, and pursuant to the requirements of', 22480:'subpart 32.6,thegovernmentmaycollectthisdebtbyoffsettingtheamountagainstany payment due the awardee under any contract between the awardee and the government. 33.105 protest at the u.s.', 22481:'court of federal claims. procedures for protests at the u.s. court of federal claims are set forth in the rules', 22482:'of the u.s. court of federal claims. the rules may be found at http://www.uscfc.uscourts.gov/rulesandforms. subpart 33.1 protests 33.106 33.106 solicitation', 22483:'provision and contract clause. a thecontracting officer shall insert the provision at 52.2332, service of protest, in solicitations for contracts', 22484:'expected to exceed the simplified acquisition threshold. b the contractingofficer shall insertthe clause at 52.2333, protest after award, in all', 22485:'solicitations and contracts. if a cost reimbursement contract is contemplated, the contracting officer shall use theclause with itsalternate i. this', 22486:'page intentionally left blank. 33.18 subpart 33.2 disputes and appeals 33.204 subpart 33.2 disputes and appeals 33.201definitions. as used in', 22487:'this subpart accrual of a claim means the date when all events, that fix the alleged liability of either the', 22488:'government or the contractor and permit assertion of the claim, were known or should have been known. for liability to', 22489:'be fixed, some injury must have occurred. however,monetary damages need not have been incurred. alternative dispute resolution adr means any', 22490:'type of procedure or combination of procedures voluntarily used to resolve issues in controversy. these procedures may include, but are', 22491:'not limited to,conciliation, facilitation, mediation,factfinding, minitrials, arbitration, and use of ombudsmen. defective certification means a certificate which alters or otherwise', 22492:'deviates from the language in 33.207c or which is not executed by a person authorized to bind the contractor with', 22493:'respect to the claim. failure to certify shall not be deemed to be a defective certification. issue in controversy means', 22494:'a material disagreement between the government and the contractor that 1 may result in a claim; or 2 is all', 22495:'or part of an existing claim. misrepresentation of fact means a false statement of substantive fact, or any conduct which', 22496:'leads to the belief of a substantive fact material to proper understanding of the matter in hand, made with intent', 22497:'to deceive or mislead. 33.202disputes. 41 u.s.c. chapter 71, disputes, establishes procedures and requirements for asserting and resolving claims subject', 22498:'to the disputes statute. in addition, the disputes statute provides for a the payment of interest on contractor claims; b', 22499:'certification of contractor claims; and c a civil penalty for contractor claims that are fraudulent or based on a misrepresentation', 22500:'of fact. 33.203 applicability. a except as specified in paragraph b of this section, this part applies to any express', 22501:'or implied contract covered by the federal acquisition regulation. b this subpart does not apply to any contract with 1', 22502:'a foreign government or agency of that government; or 2 an international organizationor asubsidiary body ofthat organization, if theagency head', 22503:'determines that the application of the disputes statute to the contract would not be in the public interest. c this', 22504:'part applies toalldisputes with respectto contracting officerdecisions on matters arisingunder or relating to a contract. agency boards of contract appeals', 22505:'bcas authorized under the disputes statute continue to have all of the authority they possessed before the disputes statute with', 22506:'respect to disputes arising under a contract, as well as authority to decide disputes relating to a contract. the clause', 22507:'at 52.2331, disputes, disputes, recognizes the all disputes authority established by the disputes statute and states certain requirements and limitations', 22508:'of the disputes statute for the guidance of contractors and contracting agencies. theclause isnot intended to affectthe rightsand obligationsof the', 22509:'parties as provided by the disputes statute or to constrain the authority of the statutory agency bcas in the handling', 22510:'and deciding of contractor appeals under the disputes statute. 33.204 policy. the government’s policy is to try to resolve all', 22511:'contractual issues in controversy by mutual agreement at the contracting officer’s level. reasonable efforts should be made toresolve controversiesprior to', 22512:'the submission of a claim. agencies are encouraged to use adr procedures tothe maximum extentpracticable. certain factors, however, may make', 22513:'the use of adr inappropriate see 5 u.s.c. 572b. except for arbitration conducted pursuant to the administrative dispute resolution act', 22514:'adra, 5 u.s.c.571, etseq. agencies have authority which is separate from that provided by the adra to use adr procedures', 22515:'to resolve issues in controversy. agenciesmay alsoelect to proceed under the authority and requirements of the adra. federal acquisition regulation', 22516:'33.205relationship of the disputes statute to pub. l.85804. a requests for relief under public law85804 50 u.s.c. 14311435 are not', 22517:'claims within the disputes statute or the disputes clause at 52.2331, disputes, and shall be processed under subpart 50.1, extraordinary', 22518:'contractual actions. however, relief formerly available only under public law85804; i.e., legal entitlement to rescission or reformation for mutual mistake,is', 22519:'now available within the authority of thecontracting officer underthe contract disputes statute and the disputes clause. in case of a', 22520:'question whether the contracting officer has authority to settle ordecidespecific types of claims, thecontracting officer should seek legal advice. b', 22521:'a contractor’s allegation thatitis entitled to rescission or reformation of its contractin order to correct or mitigate theeffect ofa mistake', 22522:'shall be treatedas a claim underthe disputes statute. a contract may bereformedor rescindedby thecontracting officer if the contractor wouldbe entitled', 22523:'to such remedy or relief under the law of federal contracts. due to thecomplex legalissues likely to be associatedwith allegations', 22524:'of legal entitlement, contractingofficers shall make written decisions, prepared with the advice and assistance of legal counsel, either granting or', 22525:'denying relief in whole or in part. c a claim that is either denied or not approved in its entirety', 22526:'under paragraph b of this section may be cognizable as a request for relief under public law85804 as implemented by', 22527:'subpart 50.1.however,theclaimmustfirstbesubmitted to the contracting officerforconsideration under the disputes statute because the claimis not cognizable under public law85804, as implemented', 22528:'by subpart 50.1, unless other legal authority in the agency concerned is determined to be lacking or inadequate. 33.206initiation of', 22529:'a claim. a contractor claims shall besubmitted,in writing, to the contracting officer for adecision within 6 years after accrual of', 22530:'a claim, unless the contracting parties agreed to a shorter time period. this 6year time period does not apply to', 22531:'contracts awarded prior to october 1,1995. the contractingofficer shall document the contract file with evidence ofthe dateof receipt of any', 22532:'submission from the contractordeemed to be a claimby the contractingofficer. b the contractingofficer shall issue a written decision on any', 22533:'government claiminitiated againsta contractorwithin 6 years after accrual of the claim, unless the contracting parties agreed to a shorter time', 22534:'period. the 6year period shall not apply to contracts awarded prior to october 1,1995, or to a government claim based', 22535:'on a contractor claim involving fraud. 33.207contractor certification. a contractors shall provide the certification specified in paragraph c of this', 22536:'section when submitting any claim exceeding $100,000. b the certification requirement does not apply to issues in controversy that have', 22537:'not been submitted as all or part of a claim. c the certification shall state as follows: i certify that', 22538:'the claim is made in good faith; that the supporting data are accurate and complete to the best of my', 22539:'knowledge and belief; that the amount requested accurately reflects the contract adjustment for which the contractor believes thegovernment is liable;', 22540:'and that i am duly authorizedto certify theclaim on behalf of the contractor. d the aggregate amount of both increased', 22541:'and decreased costs shall be used in determining when the dollar thresholds requiring certification are met see example in 15.4034a1iii', 22542:'regarding certified cost or pricing data. e the certification may be executed by any person authorized to bind the contractor', 22543:'with respect to the claim. f a defective certification shall not deprive a court or an agency bca of jurisdiction', 22544:'over that claim. prior to the entry of a final judgment by a courtor adecision by an agency bca, however,', 22545:'the court oragency bca shall require adefective certification to be corrected. 33.208 interest on claims. a thegovernment shall pay intereston', 22546:'a contractor’s claim on theamount found dueandunpaid from the date that 1 the contractingofficer receives the claim certified if required', 22547:'by 33.207a; or 2 payment otherwise would be due, if that date is later, until the dateof payment. b simple', 22548:'intereston claims shall be paid at therate, fixed by thesecretaryof the treasury as provided in the disputes statute, which isapplicable', 22549:'to the period during which the contracting officerreceives theclaim and then at the rate applicable for each 6month period as', 22550:'fixed by thetreasury secretary during the pendency of the claim. see theclause at 52.23217 for the right of thegovernmentto collect', 22551:'interest onits claims againsta contractor. c with regard to claims having defectivecertifications,interest shall be paid from either the date that', 22552:'the contracting officer initially receives the claim oroctober29,1992, whichever is later. however, if a contractor has provided aproper subpart 33.2', 22553:'disputes and appeals 33.211 certificate prior to october 29,1992, after submission of a defective certificate, interest shall be paid from', 22554:'the date of receipt by the government of a proper certificate. 33.209suspected fraudulent claims. if the contractor is unable to', 22555:'support any part of the claim and there is evidence that the inability is attributable to misrepresentation of fact or', 22556:'to fraud on thepart of thecontractor, the contracting officer shall refer thematter tothe agency official responsible for investigatingfraud. 33.210 contracting', 22557:'officer’sauthority. except as provided in this section, contracting officers are authorized, within any specific limitations of their warrants, to decide', 22558:'or resolve all claims arising under or relating to a contract subject to the disputes statute. in accordance with agency', 22559:'policies and 33.214, contracting officersare authorized to useadr procedures to resolve claims. the authority to decide or resolve claims does', 22560:'not extend to a a claim or dispute for penalties or forfeitures prescribed by statute or regulation that another federal', 22561:'agency is specifically authorizedto administer, settle, or determine; or b the settlement, compromise, payment, or adjustment of any claim involving', 22562:'fraud. 33.211contractingofficer’s decision. a when a claim by or against a contractor cannot be satisfied or settled by mutual agreement', 22563:'and a decision on the claim is necessary, the contracting officer shall 1 review the facts pertinent to the claim;', 22564:'2 secure assistance from legal and other advisors; 3 coordinate with the contract administration officer or contracting office,as appropriate; and', 22565:'4 prepare a written decision that shall include i a description of the claim or dispute; ii a reference to', 22566:'the pertinent contract terms; iii a statement of the factual areas of agreement and disagreement; iv a statement of thecontracting', 22567:'officer’s decision, withsupporting rationale; v paragraphs substantially as follows: this is the final decision ofthe contracting officer. you may appeal', 22568:'this decision to the agency boardof contractappeals. if you decide to appeal, you must, within 90 days from the date', 22569:'you receive this decision, mail or otherwise furnish written notice to the agency board of contractappeals and provide a copy', 22570:'to the contracting officer from whose decision this appeal is taken. thenotice shall indicate thatan appeal is intended,reference this decision,', 22571:'and identify the contract by number. with regardto appealsto theagency board of contract appeals, you may,solely at yourelection,proceed under the', 22572:'board’s 1 small claim procedure for claims of $50,000 orless or, inthe case of a small business concernasdefined inthe small', 22573:'business act and regulations under that act, $150,000 or less; or 2 accelerated procedure for claims of $100,000 or less.', 22574:'instead of appealing to the agency board of contract appeals, you may bring an action directly in the united states', 22575:'court of federal claims except as provided in 41 u.s.c. 7102d, regarding maritime contracts within 12 months of the date', 22576:'you receive this decision; and vi demand for payment prepared in accordance with 32.604 and 32.605 in all cases where', 22577:'the decision results in a finding that the contractor is indebted to the government. b the contractingofficer shall furnisha copy', 22578:'of the decision to the contractor bycertifiedmail, return receipt requested, or by any other method that provides evidence of receipt.', 22579:'this requirement shall apply to decisions on claims initiated by or against the contractor. c thecontracting officer shall issue the', 22580:'decision within the following statutory time limitations: 1 for claims of $100,000 or less, 60 days after receiving a written', 22581:'request from the contractor that a decision be rendered within that period, or within a reasonable time after receipt of', 22582:'the claim if the contractor does not make such a request. 2 for claims over$100,000, 60 days afterreceiving a certified', 22583:'claim;provided, however, that ifa decisionwill not beissuedwithin 60 days,the contracting officershallnotify the contractor,within that period, of the timewithin which a', 22584:'decision will be issued. federal acquisition regulation d the contractingofficer shall issue a decision within a reasonable time, takinginto account', 22585:'1 the size and complexity of the claim; 2 the adequacyof the contractor’s supporting data; and 3 any other relevant', 22586:'factors. e thecontracting officer shall have no obligationto render a final decision on any claim exceeding $100,000 which contains a', 22587:'defective certification, if within 60 days afterreceipt of theclaim, the contracting officer notifies the contractor,in writing, of the reasons why', 22588:'any attempted certification was found to be defective. f in the event of undue delay by the contracting officer in', 22589:'rendering a decision ona claim, the contractor mayrequest the tribunal concerned to directthe contracting officerto issue a decision in a', 22590:'specified time period determinedby the tribunal. g any failure of the contracting officerto issuea decisionwithin therequired timeperiodswill be deemed adecision', 22591:'by thecontracting officer denying the claim and willauthorize thecontractor to file anappealor suit on theclaim. h the amount determined payable', 22592:'under the decision, lessany portion already paid, should be paid, if otherwise proper, without awaiting contractor action concerning appeal. such', 22593:'payment shall be without prejudice to the rights of either party. 33.212 contracting officer’sduties upon appeal. to the extent permitted', 22594:'by any agency procedures controlling contacts withagency bca personnel,the contracting officer shall provide data, documentation, information, and support as may', 22595:'be required by the agency bca for use on a pending appeal from the contractingofficer’s decision. 33.213obligation to continue performance.', 22596:'a in general, before passage of the disputes statute, the obligation to continue performance applied only to claims arising undera', 22597:'contract. however,the disputes statute, at 41 u.s.c. 7103g, authorizes agencies to require a contractor to continue contract performance in accordance', 22598:'with the contracting officer’sdecision pending a final resolution of any claim arising under, or relating to, the contract. a claim', 22599:'arising under a contract is a claim that can be resolved under a contract clause, other than the clause at', 22600:'52.2331,disputes,that provides for the relief sought by the claimant; however, relief for suchclaim can also be sought under the clause', 22601:'at 52.2331. a claim relating to a contract is a claim that cannot be resolved under a contract clause other', 22602:'than the clause at 52.2331. this distinction is recognized by the clause with its alternatei see 33.215. b in all', 22603:'contracts that include the clause at 52.2331, disputes, with its alternatei, in the event of a dispute not arising under,', 22604:'but relating to, the contract, the contracting officer shall consider providing, through appropriate agency procedures, financing ofthe continued performance; provided,that', 22605:'the government’s interest is properly secured. 33.214 alternative dispute resolution adr. a the objective of using adr procedures is to', 22606:'increase the opportunity for relatively inexpensive and expeditious resolution of issues incontroversy. essential elements of adr include 1 existence of', 22607:'an issue in controversy; 2 a voluntary election by both parties to participate in the adr process; 3 an agreement', 22608:'on alternative procedures and terms to be used in lieu of formal litigation; and 4 participation in the process by', 22609:'officials of both parties who have the authority to resolve the issue in controversy. b if the contracting officer rejects', 22610:'a contractor’s request for adr proceedings, the contractingofficer shall provide the contractor a written explanation citing one or more of', 22611:'the conditions in 5 u.s.c. 572b or such other specific reasons that adr procedures are inappropriate for the resolution of', 22612:'the dispute. in any case where a contractor rejects a request of anagency for adr proceedings, the contractorshallinform theagency in', 22613:'writing of the contractor’s specific reasons for rejecting the request. c adr procedures may be used at any time that', 22614:'the contracting officer has authorityto resolve the issue in controversy. if a claim has been submitted, adr procedures may be', 22615:'applied to all or a portion of the claim. when adr procedures areused subsequent tothe issuance of a contracting officer’s', 22616:'final decision, their usedoes not alter any of the time limitations or procedural requirements for filingan appeal of the contracting', 22617:'officer’s final decision and does not constitutea reconsideration of the final decision. d when appropriate, a neutral person may be', 22618:'used to facilitate resolution of the issue in controversy using the procedures chosen by the parties. e the confidentiality of', 22619:'adr proceedings shall be protected consistent with 5 u.s.c. 574. subpart 33.2 disputes and appeals 33.215 f 1asolicitationshallnotrequirearbitrationasaconditionofaward,unlessarbitrationisotherwiserequiredbylaw. contracting officersshouldhaveflexibilityto', 22620:'select the appropriate adr procedure to resolve the issues in controversy as they arise. 2 an agreement to use arbitration', 22621:'shall be in writing and shall specify a maximum award that may be issued by the arbitrator, as well asanyotherconditions', 22622:'limitingthe range of possible outcomes. g binding arbitration, as an adr procedure, may be agreed to only as specified in', 22623:'agency guidelines. such guidelines shall provide advice on the appropriate use of binding arbitration and when an agency has authority', 22624:'to settle an issue in controversy through binding arbitration. 33.215contract clauses. a insert the clause at 52.2331, disputes, in solicitations', 22625:'and contracts, unless the conditions in 33.203b apply. ifitis determined under agency procedures that continued performance is necessary pending resolution', 22626:'of any claim arising under or relating to the contract, thecontracting officer shall use the clause with its alternatei. b', 22627:'insert the clause at 52.2334 in all solicitations and contracts. this page intentionally left blank. 33.26 part 34 major system', 22628:'acquisition sec. 34.000 scope of part. 34.001 definition. 34.002 policy. 34.003 responsibilities. 34.004 acquisition strategy. 34.005 general requirements. 34.0051 competition.', 22629:'34.0052 missionoriented solicitation. 34.0053 concept exploration contracts. 34.0054 demonstration contracts. 34.0055 fullscale development contracts. 34.0056 full production. 34.100 34.101 34.102', 22630:'34.103 34.104 34.201 34.202 34.203 subpart 34.1 testing, qualification and use of industrialresourcesdeveloped under titleiii, defense productionact scope of subpart.', 22631:'definitions. policy. testing and qualification. contract clause. subpart 34.2 earned value management system policy. integrated baseline reviews. solicitation provisions and', 22632:'contract clause. this page intentionally left blank. 34.0052 34.000scope of part. this part describes acquisition policies and procedures for use', 22633:'in acquiring major systems consistent with omb circular no. a109; andthe use of anearned valuemanagement system inacquisitions designated as major', 22634:'acquisitionsconsistent withombcirculara11,part 7. 34.001definition. effective competition, as used in this part, is a market condition that exists when two or', 22635:'more contractors, acting independently, actively contend for the government’s business ina manner that ensures thatthe government will be offered the', 22636:'lowest cost or price alternative or best technical design meeting its minimum needs. 34.002 policy. the policies of this partare', 22637:'designed to ensurethat agenciesacquire major systems in the mosteffective, economical, and timelymanner. agencies acquiring major systemsshall a promote innovation and', 22638:'full and open competition as required by part 6 in the development of major system concepts by 1 expressing agencyneeds', 22639:'and major system acquisition program objectivesin terms of theagency’s mission and not in terms of specified systems to satisfy needs,', 22640:'and 2 focusing agency resources and special management attention on activities conducted in the initial stage of major programs; and', 22641:'b sustain effective competition between alternative system concepts and sources for as long as it is beneficial. 34.003responsibilities. a as', 22642:'required by a109, the agency head or designee shall establish written procedures for its implementation. b the agency procedures shall', 22643:'identify the key decision points of each major system acquisition and the agency officialsformaking those decisions. c systems acquisitions normally', 22644:'designated as major are those programs that, as determined by the agency head, 1 are directed at and criticalto fulfilling', 22645:'an agency mission need,2entail allocating relatively large resources for theparticular agency, and 3 warrant special management attention, including specific agencyheaddecisions.', 22646:'the agency procedures may establish additional criteria, as specified in a109, for designating major programs system acquisitions. 34.004 acquisition strategy.', 22647:'the program manager, as specified in agency procedures, shall develop an acquisition strategy tailored to the particular major system acquisition', 22648:'program. this strategy isthe program manager’s overall plan for satisfying the mission need in themost effective,economical, and timely manner. the', 22649:'strategyshallbe inwriting and prepared in accordance withthe requirements of subpart 7.1, except where inconsistent with this part, and shall qualify', 22650:'as the acquisition plan for the major system acquisition, as required by that subpart. 34.005 generalrequirements. 34.0051 competition. a the', 22651:'program manager shall, throughout the acquisition process, promote full and open competition and sustain effective competition between alternative major system', 22652:'concepts and sources,as long as it is economically beneficial and practicable to doso. notice of the proposed acquisition shall begiven', 22653:'the broadest and mosteffective circulationpracticable throughoutthe business, academic, and government communities. foreign contractors, technology, and equipmentmay be considered when it', 22654:'is feasible and permissible to do so. b the contractingofficer should time solicitation issuance and contract award tomaintaincontinuity of concept', 22655:'development during the transition from withdrawing concept proposer to new contractor. 34.0052 missionoriented solicitation. a before issuingthe solicitation, whenever practicable', 22656:'and consistentwith agency procedures, the contracting officer should take the actions outlined in paragraphs a1 and 2: 1 advance notification', 22657:'of the acquisition should be given the widest practicable dissemination, including publicizing through the governmentwide point of entry see subpart', 22658:'5.2 and should be sent to as wide a selection of potential sources as 34.0053 federal acquisition regulation practicable, including', 22659:'smaller and newer firms, government laboratories, federally funded research and development centers, educationalinstitutions and other notforprofit organizations, and, ifitwouldbe beneficial', 22660:'and is notprohibited, foreign sources. 2 if appropriate, hold a presolicitation conference see 15.201 and/or send copies of the proposed', 22661:'solicitation to allprospective offerors for theircomments. after evaluation ofthese comments, the solicitation should be revised, if appropriate. b the contractingofficer', 22662:'shall send the final solicitation to all prospective offerors. it shall 1 describe the nature of the need in terms', 22663:'of mission capabilities required, without reference to any specific systems to satisfy the need; 2 indicate, and explain when appropriate,', 22664:'the schedule, capability,andcostobjectives and any knownconstraints in the acquisition; 3 provide, or indicate how access can be obtained to, all', 22665:'government data related to the acquisition; 4 include selection requirements consistent with the acquisition strategy; and 5 clearly state that', 22666:'each offeroris free topropose itsown technical approach, main design features, subsystems,and alternatives to schedule, cost, and capability goals. 6 require', 22667:'the use of an earned value management system that complies withthe guidelines of electronic industries alliance standard 748 eia748 current', 22668:'version at time of solicitation. see 34.201 for earned value management systems and reporting requirements. c to the extentpracticable, the', 22669:'solicitation shall notreference or mandate government specifications orstandards, unless the agency is mandating a subsystem or other component as approved', 22670:'under agency procedure. 34.0053 concept exploration contracts. whenever practicable, contracts to be performed during the concept exploration phase shall be', 22671:'for relatively short periods, at planned dollar levels. thesecontracts are to refine the proposed concept and to reduce the concept’s', 22672:'technical uncertainties. the scopeof work for this phase of the program shall beconsistent with the government’s planned budget for the', 22673:'phase. followon contracts for such tasks in the exploration phase shall be awarded as long as the concept approach remains', 22674:'promising, the contractor’s progress is acceptable, and it is economically practicable to do so. 34.0054 demonstration contracts. whenever practicable, contracts', 22675:'for the demonstration phase should provide for contractors to submit, by the end of the phase, priced proposals, totallyfunded by', 22676:'the government, for fullscale development. thecontracting officer should provide contractors with operational test conditions, performance criteria, life cycle cost factors,', 22677:'and any other selection criteria necessary for the contractors to prepare their proposals. 34.0055 fullscale development contracts. whenever practicable, the', 22678:'fullscale development contracts should provide for the contractors to submit priced proposals for production that are based on the latest', 22679:'quantity, schedule, and logisticsrequirements and other considerations that willbe used in making the production decision. 34.0056full production. contracts for full', 22680:'production of successfully tested major systems selected from the fullscale development phase may be awarded if the agency head a', 22681:'reaffirmsthe mission need and program objectives; and b grants approval to proceed with production. subpart 34.1 testing, qualification and use', 22682:'of industrial resources developed under titleiii, defense production act 34.100scope of subpart. this subpart prescribes policies and procedures for the', 22683:'testing, qualification, and use of industrial resources manufactured or developed with assistance provided under section 301, 302, or 303 of', 22684:'the defense production act 50 u.s.c. app.20912093. titleiii of the defense production act authorizes various forms of government assistance to', 22685:'encourage expansion of production capacity and supply of industrial resources essential to national defense. subpart 34.1 testing, qualification and use', 22686:'of industrial resources developed under titleiii, defense production act 34.104 34.101definitions. item of supply,as used in this subpart, means any', 22687:'individual part, component, subassembly, assembly,or subsystem integral to a major system, and other property which may be replaced during the', 22688:'service life of the system. the term includes spare parts and replenishment parts, but does not include packaging or labeling', 22689:'associated with shipment or identification of an item. 34.102 policy. it is the policy of the government, as required by', 22690:'section 126 of public law102558, to pay for any testing and qualification required for the use or incorporation of the', 22691:'industrial resources manufactured or developed with assistance provided undertitleiii of the defense production act of1950. 34.103 testing and qualification. a', 22692:'contractorsreceiving requests froma titleiii project contractorfortesting and qualification of a titleiii industrial resource shall refer such requests tothe contracting officer.', 22693:'the contracting officer shall evaluate the request in accordance with agencyprocedures to determine whether: 1 the titleiiiindustrial resource is being', 22694:'or potentially may be used in the development or manufacture of a major system or item of supply; and 2', 22695:'for major systems in production, remaining quantitiesto beacquired are sufficient tojustify incurring the cost of testing and qualification. in evaluating', 22696:'this request, the contracting officershallconsult with the defense production act office, titleiii program,locatedat: wright patterson air force base oh 454337739.', 22697:'b if the determination at 34.103a isaffirmative, the contracting officer shall modify the contract to require the contractor to test', 22698:'the titleiii industrial resource for qualification. c thedefense productionactoffice, titleiii program, shall provide to the contractorthe industrial resource produced by', 22699:'the titleiii project contractor in sufficient amounts to meet testing needs. 34.104contract clause. insert the clause at 52.2341, industrial resources', 22700:'developed under titleiii, defense production act,in all contracts for major systemsand items of supply. this page intentionally left blank. 34.14', 22701:'subpart 34.2 earned value management system 34.203 subpart 34.2 earned value management system 34.201 policy. a an earnedvalue management system', 22702:'evms isrequired for major acquisitions for development, inaccordance with ombcircular a11. the government may also require an evmsforother acquisitions, in', 22703:'accordance with agency procedures. b if the offerorproposesto use a system that has not been determined to be in compliance', 22704:'withthe electronic industries alliance standard748 eia748, theofferor shall submit a comprehensive plan for compliance with theseevms standards. offerorsshallnot be eliminated', 22705:'from consideration for contract award because they do not have an evms thatcomplies with these standards. c as aminimum, contracting', 22706:'officers shall require contractors tosubmit evms monthly reports for those contracts for which an evms applies. d evms requirements will', 22707:'be applied to subcontractors usingthe same rulesas appliedto the prime contractor. e when an offeror is requiredto provide an evms', 22708:'plan as part of its proposal, the contractingofficer will determinethe adequacy of the proposed evms plan prior to contract award.', 22709:'34.202integrated baseline reviews. a when an evms is required, the government will conduct an integrated baseline review ibr. b the', 22710:'purpose of the ibr is to verify the technical content and the realism of the related performance budgets, resources, and', 22711:'schedules. it should provide a mutual understanding of theinherent risks in offerors’/ contractors’ performance plans and the underlying management control', 22712:'systems, and it should formulate a plan to handle these risks. c theibr isa joint assessment bythe offeror or contractor,', 22713:'and the government, of the 1 ability of theproject’s technical plan to achieve the objectivesof the scope of work; 2', 22714:'adequacy of the time allocated for performing the defined tasks to successfully achieve the project schedule objectives; 3 ability of', 22715:'the performance measurement baseline pmb to successfully execute the project and attain cost objectives, recognizing the relationship between budget resources,', 22716:'funding, schedule, and scope of work; 4 availability ofpersonnel, facilities, and equipment whenrequired,to perform the defined tasksneeded to execute the', 22717:'program successfully; and 5 the degree towhich the managementprocess provides effective and integrated technical/schedule/cost planningand baseline control. d the timing', 22718:'and conduct of the ibr shall be in accordance with agency procedures. if a preaward ibr will be conducted, the', 22719:'solicitation must includethe procedures for conducting theibr and address whether offerors will be reimbursedforthe associated costs. if permitted, reimbursement of', 22720:'offerors’ preaward ibr costs is governed bythe provisions of far part 31. 34.203 solicitation provisions and contract clause. a thecontracting', 22721:'officer shall insert aprovision thatis substantiallythe same as theprovision at far 52.2342, notice of earned value management systempreaward integrated baselinereview,', 22722:'in solicitations for contracts thatrequire the contractor to use an earned value managementsystemevms and for which the government requires an', 22723:'integrated baseline review ibr prior to award. b the contractingofficer shall inserta provision that is substantially the sameas the provision', 22724:'at 52.2343, notice of earned value managementsystempostaward integrated baseline review, in solicitations for contracts that require the contractor to use', 22725:'an earned value managementsystemevms and for which the government requires an integrated baseline review ibr after contract award. c thecontracting', 22726:'officer shall insert aclause that is substantially the same as the clauseat far 52.2344, earned value management system, in solicitations', 22727:'and contracts that require a contractor to use an evms. this page intentionally left blank. 34.22 part 35 research and', 22728:'development contracting sec. 35.000 scope of part. 35.001 definitions. 35.002 general. 35.003 policy. 35.004 publicizing requirements and expanding research and', 22729:'development sources. 35.005 work statement. 35.006 contracting methods and contract type. 35.007 solicitations. 35.008 evaluation for award. 35.009 subcontracting research', 22730:'and development effort. 35.010 scientific and technical reports. 35.011 data. 35.012 patent rights. 35.013 35.014 35.015 35.016 35.017 35.0171 35.0172', 22731:'35.0173 35.0174 35.0175 35.0176 35.0177 insurance. government property and title. contracts for research with educational institutions and nonprofit organizations. broad', 22732:'agency announcement. federally funded research and development centers. sponsoring agreements. establishing or changing an ffrdc. using an ffrdc. reviewingffrdc’s. terminatingan', 22733:'ffrdc. master listof ffrdc’s. limitation on the creation of newffrdc’s. this page intentionally left blank. part 35 research and development', 22734:'contracting 35.005 35.000scope of part. a this part prescribes policies and procedures of special application to research and development r&d', 22735:'contracting. b r&d integral to acquisition of major systems is covered in part 34. independent research and development ir&d is', 22736:'covered at 31.20518. 35.001definitions. applied research means the effort that a normally follows basic research, but may not be severable', 22737:'from the related basic research; b attempts to determine and exploit thepotentialof scientificdiscoveries or improvements in technology, materials, processes, methods,', 22738:'devices, or techniques; and c attempts to advance the state of the art. when being used by contractors in cost', 22739:'principle applications, this term does not include efforts whose principal aim is the design, development, or testing of specific items', 22740:'or services to be considered for sale; these efforts are within the definition of development, given below. development, as used', 22741:'in this part, means the systematic use of scientific and technical knowledge in the design, development, testing, or evaluation of', 22742:'a potential new product or service or of an improvement in an existing product or service to meet specific performance', 22743:'requirements or objectives. it includes the functions of design engineering, prototyping, and engineering testing; it excludes subcontracted technical effort that', 22744:'is for the sole purpose ofdeveloping an additional source for an existing product. recoupment, as used in this part, means', 22745:'the recovery by the government of governmentfunded nonrecurring costs from contractors that sell, lease, or license the resulting products or', 22746:'technology to buyers other than the federal government. 35.002general. the primary purpose of contracted r&d programs is to advance scientific', 22747:'and technical knowledge and apply that knowledge to the extent necessary to achieve agency and national goals. unlike contracts for', 22748:'supplies and services, most r&d contracts are directed toward objectives for which the work or methods cannot be precisely described', 22749:'in advance. it is difficult to judge the probabilities of success or required effort for technical approaches, some of whichoffer', 22750:'little or no early assurance of full success. the contracting process shall be used to encourage the best sources from', 22751:'the scientific and industrial community to become involved in the program and must provide an environment in which the work', 22752:'can be pursued with reasonable flexibility and minimum administrative burden. 35.003 policy. a use of contracts. contracts shall be used', 22753:'only when the principal purpose is the acquisition of supplies or services for the direct benefit or use of the', 22754:'federal government. grants or cooperative agreements should be used when the principal purpose of the transaction is to stimulate or', 22755:'support research and development for another public purpose. b cost sharing. cost sharing policies which are not otherwise required by', 22756:'law under government contracts shall be in accordance with 16.303, 42.707a and agency procedures. c recoupment. recoupment not otherwise required', 22757:'by law shall be in accordance with agency procedures. 35.004 publicizingrequirements and expanding research and development sources. a inorder to', 22758:'obtain a broad base of the best contractorsources from the scientific and industrialcommunity, agencies must, in addition to following the', 22759:'requirements of part 5, continually search for and develop information on sources including small business concerns competent to perform r&d', 22760:'work. these efforts should include 1 early identification and publication of agency r&d needs and requirements, including publicizing through the', 22761:'governmentwide point of entry gpe see part 5; 2 cooperationamong technical personnel,contracting officers, and government small businesspersonnel early in the', 22762:'acquisition process; and 3 providing agency r&d points of contact for potential sources. b see subpart 9.7 for information regarding', 22763:'r&d pools and subpart 9.6 for teaming arrangements. 35.005 workstatement. a a clear and complete work statement concerning the area', 22764:'of exploration for basic research or the end objectives for development and applied research is essential. the work statement should', 22765:'allow contractors freedom to exercise innovation and creativity. workstatementsmust be individually tailored by technical and contractingpersonnel to attain the desired', 22766:'degree of flexibility for contractor creativity and the objectives of the r&d. federal acquisition regulation b in basic research the', 22767:'emphasis is on achieving specified objectives and knowledge rather than on achieving predetermined end results prescribed in a statement of', 22768:'specific performance characteristics. this emphasis applies particularly during the early or conceptual phasesof the r&deffort. c inreviewing work statements, contractingofficers', 22769:'should ensure that language suitable for a levelofeffortapproach, which requires the furnishing of technicaleffort and areport on the results, is', 22770:'notintermingled withlanguage suitablefor a taskcompletion approach, which often requires the development of a tangible end item designed to achieve specific', 22771:'performance characteristics. the wording of the work statement should also be consistent with the type and form of contract to', 22772:'be negotiated see 16.207 and 16.306d. for example, the work statement for a costreimbursement contract promising thecontractor’sbest efforts for a', 22773:'fixed term would bephrased differently than a work statement for acostreimbursement completion contract promising the contractor’s best efforts for adefined', 22774:'task. differences betweenwork statements for fixed price contractsandcostreimbursementcontracts should be even clearer. d in preparing work statements, technical and contracting', 22775:'personnel shall consider and, as appropriate, provide in the solicitation 1 a statement of thearea of exploration, tasks to be', 22776:'performed, and objectives of the research or development effort; 2 background information helpful to a clear understanding of the objective', 22777:'or requirement e.g., any known phenomena,techniques, methodology, or resultsof related work; 3 information on factors such as personnel, environment, and', 22778:'interfaces that may constrain the resultsof the effort; 4 reporting requirements and information on any additional items that the contractor', 22779:'is required to furnish at specified intervals as the work progresses; 5 the typeandform ofcontract contemplatedby the government and, for', 22780:'levelofeffort work statements, an estimate of applicable professional and technical effort involved; and 6 any other considerations peculiar to the', 22781:'work to be performed; for example, any designtocost requirements. 35.006contracting methods and contract type. a in r&d acquisitions, the precise', 22782:'specifications necessary for sealed bidding are generally not available, thus making negotiation necessary. however, the use ofnegotiation in r&d contracting', 22783:'does not change the obligation to comply with part 6. b selectingthe appropriate contract type is the responsibility of the', 22784:'contracting officer. however, because of the importance of technical considerations in r&d, the choice of contract type should be made', 22785:'after obtaining the recommendations of technical personnel. although the government ordinarily prefers fixedprice arrangements in contracting, this preference applies in', 22786:'r&d contracting only to the extent that goals, objectives, specifications, and cost estimatesare sufficientto permit such apreference. theprecisionwith which the', 22787:'goals, performance objectives, and specificationsforthe work can be defined willlargely determinethe type ofcontract employed. thecontract typemust be selected to fit', 22788:'the work required. c because the absence of precise specifications and difficulties in estimating costs withaccuracy resulting ina lack of', 22789:'confidence in cost estimates normally precludes using fixedprice contracting for r&d, the use of costreimbursement contracts is usually appropriate see', 22790:'subpart 16.3. the nature of development work often requires a costreimbursement completion arrangement see 16.306d. when the use of cost', 22791:'and performance incentives is desirable and practicable, fixed price incentive and costplusincentivefee contracts should be considered in that order of', 22792:'preference. d when levels of effort canbe specified in advance, a shortdurationfixedpricecontract maybe useful for developing system design concepts, resolving', 22793:'potential problems, and reducing government risks. fixedprice contracting may also beused inminor projects when the objectives of the researchare well', 22794:'definedandthere is sufficient confidence in the cost estimate for price negotiations. see 16.207. e projects having productionrequirements as a followon', 22795:'to r&d efforts normally should progress from cost reimbursement contracts to fixedprice contracts as designs become more firmly established, risks', 22796:'are reduced, and production tooling, equipment, and processes are developed and proven. when possible, a final commitment to undertake specific', 22797:'product development and testing should be avoided until 1 preliminary exploration and studies have indicated a high degree of probability', 22798:'that development is feasible and 2 the government has determined both its minimum requirements and desired objectives for product performance', 22799:'and schedule completion. part 35 research and development contracting 35.007 35.007solicitations. a the submission and subsequent evaluation of an inordinate', 22800:'number of r&d proposals from sources lacking appropriate qualifications is costly and timeconsuming to both industry and the government. therefore,contracting', 22801:'officers should initially distribute solicitations only to sources technically qualified to perform research or development in the specific field of', 22802:'science or technology involved. cognizant technical personnel should recommend potential sources that appear qualified, as a result of 1 present', 22803:'and past performance of similar work; 2 professional stature and reputation; 3 relative position in a particular field of endeavor;', 22804:'4 ability to acquire and retain the professional and technical capability, including facilities, required toperformthe work; and 5 other relevant', 22805:'factors. b proposals generally shall be solicited from technically qualified sources, including sources that become known as a result of', 22806:'synopses or other means of publicizing requirements. if it is not practicable to initially solicit all apparently qualified sources,only a', 22807:'reasonable number need besolicited. in the interest of competition, contracting officers shall furnish copies of the solicitation to other apparently', 22808:'qualified sources. c solicitations shall require offerors to describetheir technical and management approach, identify technical uncertainties, and make specific proposals', 22809:'for the resolution of any uncertainties. thesolicitation should require offerors to include in the proposal any planned subcontracting of scientific', 22810:'or technical work see 35.009. d solicitations may require that proposals be organized so that the technicalportions can be efficiently', 22811:'evaluated by technical personnel see 15.2045b. solicitation and evaluation of proposals should beplanned tominimize offerors’ and government expense. e r&d', 22812:'solicitations should contain evaluation factors to be used to determine the most technically competent see 15.304, such as 1 the', 22813:'offeror’sunderstanding ofthe scope of the work; 2 the approach proposed to accomplish the scientific and technical objectives of the contract', 22814:'or the merit of the ideas or concepts proposed; 3 the availability and competence of experienced engineering, scientific, or other', 22815:'technical personnel; 4 the offeror’sexperience; 5 pertinent novel ideas in the specific branch of science and technology involved; and 6', 22816:'the availability, from any source, of necessary research, test,laboratory, or shopfacilities. f in addition to evaluation factorsfortechnicalcompetence, the contracting officershallconsider,', 22817:'as appropriate, management capability including cost management techniques, experience and past performance, subcontracting practices, and any other significant evaluation criteria', 22818:'e.g., unrealistically low cost estimates in proposals for costreimbursement or fixedprice incentive contracts. although cost or price is not normally', 22819:'the controlling factor in selecting a contractor to perform r&d, it should notbe disregarded in arriving at a selection that', 22820:'best satisfies the government’s requirement at afair and reasonable cost. g the contractingofficer should ensure thatpotentialofferorsfullyunderstand the details ofthe work,', 22821:'especiallythe government interpretation ofthe work statement. if theeffort is complex, the contracting officer should providepotential offerors anopportunity tocomment on the', 22822:'details of therequirements as containedin the work statement, the contract schedule, and any related specifications. this may be done at', 22823:'a preproposal conference see 15.201. h if it is appropriate to do so, solicitations should permit offerors to propose an', 22824:'alternative contracttype see 16.103. i in circumstances when a concern has a new idea or product to discuss that incorporates', 22825:'the results of independent r&d work funded by the concern in the private sector and is of interest to the', 22826:'government, there should be no hesitancy to discuss it; however, the concern should bewarned that thegovernmentwill not beobligated by the', 22827:'discussion. under such circumstances, it may be appropriate to negotiate directly with the concern without competition. also, see subpart 15.6', 22828:'concerning unsolicited proposals. j the government may issue an exploratory request to determine the existence of ideas or prior work', 22829:'in a specific field of research. any such request shall clearly state that it does not impose any obligation on', 22830:'the government or signify a firm intention to enter into a contract. federal acquisition regulation 35.008evaluation for award. a generally,', 22831:'an r&dcontract should be awardedto that organization, including any educational institution, that proposes the best ideas or concepts and has', 22832:'the highest competence in the specific field of science or technology involved. however, an award should notbe made to obtaincapabilities', 22833:'that exceed those needed for successful performance ofthe work. b in r&dcontracting, precise specificationsare ordinarily not available. thecontracting officer should', 22834:'therefore take special care in reviewing the solicitation evaluation factors to assure that they are properly presented and consistent with', 22835:'the solicitation. c when a small business concern would otherwise be selected for award but is considered not responsible, the', 22836:'sba certificate of competency procedure shall be followed see subpart 19.6. dthecontractingofficershouldusetheproceduresin subpart 15.5tonotifyanddebriefofferors. e it is important to evaluate', 22837:'a proposed contractor’s cost orprice estimate,not only to determine whether the estimate is reasonable but also toprovide valuableinsight into the', 22838:'offeror’s understanding of theproject, perceptionof risks, and ability to organizeand perform the work. cost or price analysis, as appropriate see', 22839:'15.4041c, is a useful tool. 35.009 subcontracting research and development effort. since the selection of r&d contractors is substantially based', 22840:'on the best scientific and technological sources, it is important thatthe contractor notsubcontract technical or scientific work withoutthe contracting officer’s', 22841:'advance knowledge. during thenegotiation of a costreimbursement r&d contract, the contractingofficer shall obtaincomplete information concerning the contractor’s plans for subcontracting', 22842:'any portion ofthe experimental, research, or development effort see also 35.007c. also, when negotiating a fixedprice contract, thecontracting officer should', 22843:'evaluate this information and may obtain anagreement thatprotects the government’s interests. the clause at 52.2442, subcontracts, prescribed for certain types', 22844:'of contracts at 44.204a, requires thecontracting officer’sprior approvalforthe placement of certain subcontracts. 35.010 scientific and technical reports. a r&d contracts', 22845:'shall require contractors to furnish scientific and technical reports, consistent with the objectives of the effort involved, asa permanentrecord of', 22846:'the work accomplished under the contract. b agencies should make r&d contract results available to othergovernment activities and the private', 22847:'sector. contracting officersshallfollow agency regulations regarding suchmatters as national security, protectionof data, and new technology dissemination policy. reports should be', 22848:'sent to the nationaltechnicalinformation servicentis 5285port royal road springfield, va 22161. when agencies require that completed reports be covered by', 22849:'a report documentation page, standard form sf 298, report documentation page, the contractor should submit a copy with the report.', 22850:'35.011data. a r&d contracts shall specify the technical data to be delivered under the contract, since the data clauses required', 22851:'by part 27 do not require the delivery of any such data. b in planning a developmental program when subsequent', 22852:'production contracts are contemplated, consideration should be given to the need and time required to obtain a technical package plans,', 22853:'drawings, specifications, and other descriptive information that can be used to achieve competition in production contracts. in some situations, the', 22854:'developmental contractor may be in the best position to produce such a technical package. 35.012patent rights. for a discussion of', 22855:'patent rights, see agency regulations and part 27. 35.013insurance. nonprofit, educational, or state institutions performing costreimbursement contracts often do not', 22856:'carry insurance. they may claim immunity from liability for torts, or, as stateinstitutions, they maybe prohibited by state law from', 22857:'expending funds for insurance. when this is the case, see 28.311 for appropriate clause coverage. part 35 research and development', 22858:'contracting 35.015 35.014 governmentproperty andtitle. a the requirements in part 45 for establishing and maintaining control over government property apply', 22859:'to all r&d contracts. b in implementing 31 u.s.c.6306, and unless an agency head provides otherwise, the policies in paragraphs', 22860:'1 through 4 following, regarding title to equipment and other tangible personal property purchased by the contractor using government funds', 22861:'provided for the conduct of basic or applied scientific research, apply to contracts with nonprofit institutions of higher education and', 22862:'nonprofit organizations whoseprimary purposeis the conduct of scientific research: 1 if the contractor obtainsthe contracting officer’s advanceapproval,the contractor shall automatically', 22863:'acquire and retain title to any item of equipment costing less than $5,000 or a lesser amount established by agency', 22864:'regulations acquired on a reimbursable basis. 2 if purchased equipment costs $5,000 or a lesser amount established by agency regulations', 22865:'or more, and as the parties specifically agree in the contract, title may ivest in the contractor uponacquisition without further', 22866:'obligation to the government; iivest in the contractor, subject to the government’s right to direct transfer of the title to', 22867:'the government or to a third party within 12 months after the contract’s completion or termination transfer of title to', 22868:'the governmentor third party shall not be the basis for any claim by the contractor; or iii vest inthe government,', 22869:'ifthe contracting officerdeterminesthat vesting of title in the contractor would not furtherthe objectives ofthe agency’s research program. 3 if titleto', 22870:'equipment is vested in the contractor, depreciation, amortization, oruse charges are notallowable with respect to that equipment under any existing', 22871:'or future government contract or subcontract. 4 if the contract is performed at a government installation and there is a', 22872:'continuing need for the equipment following contract completion, title need not be transferred to the contractor. c the absence of', 22873:'an agreement covering title to equipment acquired by the contractor with government funds that cost $1,000 or more does not', 22874:'limit an agency’srightto act tovest titlein a contractor as authorized by31 u.s.c.6306. d 1vestingtitleunderparagraphbofthissectionissubjecttocivilrightslegislation,42u.s.c.2000d. beforetitleis vested, the contractor must agree', 22875:'that no person in the united states or its outlying areas shall, on the ground of race, color, or national', 22876:'origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under this contemplated', 22877:'financial assistance title to equipment. 2 by signing the contract, the contractor accepts and agrees to comply with this requirement.', 22878:'e the policies in paragraphs b1 through b3 and paragraph d of this section are implemented in the government property', 22879:'clauses. 35.015 contractsfor researchwith educational institutions and nonprofit organizations. a general. 1 when the r&d work is not defined precisely', 22880:'and the contract states only a period during which work is conducted that is, a specific time for achievement of', 22881:'results is not required, research contracts with educational institutions and nonprofit organizations shall i state that the contractor bears primary', 22882:'responsibility for the research; ii give a the name of the principal investigator or project leader, if the decision to', 22883:'contract is based on that particular individual’s research effort andmanagementcapabilities; and b the contractor’s estimate of the amount of time', 22884:'that individual willdevote to the work; iii provide that the named individual shall be closely involved and continuously responsible for', 22885:'the conduct of the work; iv provide that the contractor must obtain thecontracting officer’s approval to change theprincipal investigator or', 22886:'project leader; v require that thecontractor advise the contracting officer if the principal investigator or project leaderwill, or plans to,', 22887:'devote substantially less effort to the workthan anticipated;and vi requirethat thecontractor obtain the contractingofficer’s approvalto change the phenomenon under study,the', 22888:'stated objectives ofthe research, or the methodology. 2 if a research contract does provide precise objectives or a specific date', 22889:'for achievement of results, the contracting officer may include in the contract the requirements set forth in paragraph a1 of', 22890:'this section,if it isnecessary for the government to exercise oversight and approval over the avenues of approach, methods, or schedule', 22891:'of work. federal acquisition regulation b basic agreements. 1 a basic agreement should be negotiated if the number of contracts', 22892:'warrants such an agreement see 16.702. basic agreements should be reviewed and updated at least annually. 2 to promote uniformity', 22893:'and consistency in dealing witheducational institutions and nonprofit organizations, agencies are encouraged to use basic agreements of other agencies. 35.016', 22894:'broadagencyannouncement. a general. this paragraph prescribes procedures for the use of the broad agency announcement baa with peer or scientific', 22895:'review see 6.102d2 for the acquisition of basic and applied research and that part of development not related to the', 22896:'development of a specific system or hardware procurement. baa’s may be used by agencies to fulfill their requirements for scientific', 22897:'study and experimentation directed toward advancing the stateoftheart or increasing knowledge or understanding rather than focusing on a specific system', 22898:'or hardware solution. the baa technique shall only be used when meaningful proposals with varying technical/scientific approaches can be reasonably', 22899:'anticipated. b the baa, together with any supporting documents, shall 1 describe the agency’s researchinterest, either for an individual program', 22900:'requirement or for broadly defined areas of interest covering thefull range of the agency’srequirements; 2 describe the criteria for selecting', 22901:'the proposals, their relative importance, and the method of evaluation; 3 specify the period of time during which proposals submitted', 22902:'in response to the baa will be accepted; and 4 contain instructions for the preparation and submission of proposals. c', 22903:'the availability of the baa must be publicized through the governmentwide point of entry gpe and, if authorized pursuant to', 22904:'subpart 5.5, may also be published in noted scientific, technical, or engineering periodicals. the notice must be published no lessfrequentlythan', 22905:'annually. d proposals received as a result of the baa shall be evaluated in accordance with evaluation criteria specified therein', 22906:'through a peer or scientific review process. written evaluation reports on individualproposalswill be necessary but proposals need not be evaluated', 22907:'against each other since they are not submitted in accordance with a common work statement. e the primary basis for', 22908:'selecting proposals for acceptance shall be technical, importance to agency programs, and fund availability. cost realism and reasonableness shall also', 22909:'beconsidered tothe extent appropriate. f synopsis under subpart 5.2, synopses of proposed contract actions, of individual contract actions based upon', 22910:'proposals received under the baa is not required. the notice published pursuant to paragraph c of this section fulfills the', 22911:'synopsis requirement. 35.017 federally funded research and development centers. a policy. 1 this section setsforth federal policyregardingthe establishment, use, review,', 22912:'and termination of federally funded research and development centers ffrdc’s and related sponsoring agreements. 2 an ffrdc meets some special', 22913:'longterm research or development need which cannot bemet as effectively by existinginhouse or contractor resources. ffrdc’s enable agencies to use', 22914:'private sector resourcesto accomplish tasks that areintegralto themissionandoperation of thesponsoring agency. an ffrdc, in orderto discharge its responsibilities to thesponsoring', 22915:'agency, has access, beyond that which iscommon to the normalcontractual relationship, to government and supplier data, including sensitive and proprietary', 22916:'data, and toemployees andinstallationsequipment and real property. the ffrdc is required to conduct its business in a manner befitting its', 22917:'special relationship with the government, to operate in the public interest with objectivity andindependence, to be free from organizational conflictsof', 22918:'interest, andto have fulldisclosure of itsaffairsto thesponsoring agency. it is not the government’sintent thatan ffrdcuse its privileged information or accessto', 22919:'installations equipment andreal property tocompete with the privatesector. however, an ffrdc may perform work for other than the sponsoring agency', 22920:'under the economy act, or other applicable legislation, when the work isnot otherwise available from theprivatesector. 3 ffrdc’s are operated,', 22921:'managed, and/or administeredby either a universityor consortium ofuniversities, other notforprofit or nonprofit organization, oran industrial firm, as an autonomous organization', 22922:'oras an identifiable separate operating unit of a parentorganization. 4 longterm relationships between the government and ffrdc’s are encouraged in', 22923:'orderto provide the continuity that will attract highquality personnel to the ffrdc. this relationship should be of a type to', 22924:'encourage the ffrdc to maintain currency in its fields of expertise, maintain its objectivity and independence, preserve its familiarity with', 22925:'the needs of its sponsors,and provide a quickresponse capability. b definitions. as used in this section part 35 research and', 22926:'development contracting 35.0172 nonsponsor means any other organization, in or outsideof the federal government, which funds specificwork to be performed', 22927:'by the ffrdc and is not a party to the sponsoring agreement. primary sponsor means the lead agency responsible for', 22928:'managing, administering, or monitoring overall use of the ffrdc under a multiple sponsorship agreement. sponsor means the executive agency which', 22929:'manages, administers, monitors, funds, and is responsible for the overall use of an ffrdc. multiple agency sponsorship ispossible aslong asone', 22930:'agency agrees to act as the primary sponsor. in the event of multiplesponsors, sponsor refers to the primary sponsor. 35.0171sponsoring', 22931:'agreements. a inorder to facilitate a longterm relationship between the government and an ffrdc, establish theffrdc’s mission, and ensure a', 22932:'periodic reevaluation of the ffrdc, a written agreement of sponsorship between the government and the ffrdc shall be prepared when', 22933:'the ffrdc is established. the sponsoring agreement may take various forms; it may be included in a contract between the', 22934:'government and the ffrdc, or in another legal instrument under which an ffrdc accomplishes effort, or it may be in', 22935:'aseparate writtenagreement. notwithstanding its form, the sponsoring agreement shall beclearly designatedas such by the sponsor. b while the specific content', 22936:'of any sponsoring agreement will vary depending on the situation, the agreement shall contain, as a minimum, therequirements of paragraph', 22937:'c ofthissubsection. the requirements for, and thecontents of, sponsoring agreements may be as further specified in sponsoring agencies’ policies and', 22938:'procedures. c as a minimum, the following requirements must be addressed in either a sponsoring agreement or sponsoring agencies’ policies', 22939:'and procedures: 1 a statement of the purpose and mission of the ffrdc. 2 provisions for the orderly termination or', 22940:'nonrenewal of the agreement, disposal of assets, and settlement of liabilities. the responsibility for capitalization of an ffrdc must be', 22941:'defined in such a manner that ownership of assets may bereadily andequitably determined upon termination ofthe ffrdc’s relationship with its', 22942:'sponsors. 3 a provision for the identification of retained earnings reserves and the development of a plan for their use', 22943:'and disposition. 4 a prohibition against the ffrdc competing with any nonffrdc concern in response to a federal agency request', 22944:'for proposal for other than the operation of an ffrdc. this prohibition is not required to be applied to any', 22945:'parent organization orothersubsidiary of the parent organization in its nonffrdc operations. requests for information, qualifications or capabilities can beanswered unless', 22946:'otherwise restricted by the sponsor. 5 a delineation of whether or not the ffrdc may accept work from other than', 22947:'the sponsors. if nonsponsor work can be accepted, a delineation of the procedures to be followed, along with any limitations', 22948:'as to the nonsponsors from which work canbe accepted other federal agencies, state or local governments, nonprofitor profit organizations, etc..', 22949:'d the sponsoring agreement or sponsoring agencies’ policies and procedures may also contain, as appropriate, other provisions, such as identification', 22950:'of 1 any cost elements which will require advance agreement if costtype contracts are used; and 2 considerations which will', 22951:'affect negotiation of fees where payment of fees is determinedby the sponsors to be appropriate. e theterm of the agreement', 22952:'will notexceed 5 years, butcan be renewed, as a resultof periodic review, in increments not to exceed 5 years. 35.0172', 22953:'establishing or changing an ffrdc. to establish an ffrdc, or changeits basic purpose and mission, the sponsor shall ensure the', 22954:'following: a existing alternativesources for satisfying agency requirements cannoteffectivelymeet thespecial researchor development needs. b the notices required for publication see', 22955:'5.205b are placed as required. c there issufficient government expertiseavailable to adequatelyand objectively evaluate the work to be performedby the', 22956:'ffrdc. d the executive office of thepresident, office of science and technology policy, washington, dc 20506, is notified. e controls', 22957:'are established to ensure that the costs of the services being provided to the government are reasonable. f the basic', 22958:'purpose and mission of theffrdc isstatedclearly enough to enable differentiation between work which should beperformed by the ffrdcandthat whichshouldbe performedby', 22959:'nonffrdc’s. 35.0173 federal acquisition regulation g a reasonable continuity in the level of support to the ffrdcis maintained, consistent with', 22960:'the agency’sneedforthe ffrdc and the terms of the sponsoring agreement. h the ffrdc is operated,managed, or administered by an autonomous', 22961:'organization or as anidentifiably separate operating unit of a parentorganization, and is required to operate in the public interest, freefrom', 22962:'organizational conflict of interest, and to disclose its affairs asan ffrdc to theprimary sponsor. i quantity production or manufacturing is', 22963:'not performed unless authorized by legislation. japproval is received from the head of the sponsoring agency. 35.0173 using an ffrdc.', 22964:'a allworkplacedwith the ffrdcmust be within the purpose, mission, general scope of effort,or specialcompetency of the ffrdc. b where the', 22965:'use of the ffrdcby a nonsponsoris permittedby the sponsor, the sponsor shall be responsible for compliance with paragraph a of', 22966:'this subsection. 1 the nonsponsoring agency shall provide the documentation required by 17.503eto the sponsoring agency. 2 when a d&f', 22967:'is required pursuant to 17.5022c, the nonsponsoring agency shall prepare the d&f and provide the documentation required by 17.503eto thesponsoring', 22968:'agency. 3 when permittedby the sponsor, afederal agencymay contractdirectlywith the ffrdc, in which case that federal agency is responsible for', 22969:'compliance with part 6. 35.0174reviewing ffrdc’s. a thesponsor, prior toextending the contract or agreement withan ffrdc, shall conduct acomprehensive review', 22970:'of the use and need for the ffrdc. the review will be coordinated with any cosponsors and may be performed', 22971:'in conjunction with the budget process. if the sponsor determines that its sponsorship is no longer appropriate, it shall apprise', 22972:'other agencies which use the ffrdc of the determination and afford them an opportunity to assume sponsorship. b approvalto continueor', 22973:'terminate the sponsorship shall rest with theheadof the sponsoring agency. this determination shall be based upon the results of the', 22974:'review conducted in accordance with paragraph c of this subsection. c an ffrdc review should include the following: 1 an', 22975:'examination of the sponsor’sspecial technical needs and mission requirements that are performed by the ffrdc to determine if and at', 22976:'what level they continue to exist. 2 consideration of alternative sources to meet the sponsor’s needs. 3 an assessmentof the', 22977:'efficiency and effectiveness of the ffrdcin meeting thesponsor’s needs,including the ffrdc’s ability to maintain its objectivity, independence, quick response capability,', 22978:'currency inits fields of expertise,and familiarity with the needs of itssponsor. 4 an assessmentof the adequacy of the ffrdc management', 22979:'inensuring a costeffective operation. 5 a determination that the criteria for establishing the ffrdc continue to be satisfied and that', 22980:'the sponsoring agreement is in compliance with 35.0171. 35.0175terminating an ffrdc. when asponsor’s need for the ffrdc nolonger exists, the', 22981:'sponsorship may be transferred to oneor more government agencies, if appropriatelyjustified. if the ffrdcis not transferredto anothergovernment agency, it shall', 22982:'be phased out. 35.0176masterlist of ffrdc’s. the national science foundationnsf maintains a mastergovernment list of ffrdc’s. primarysponsors will provide information', 22983:'on each ffrdc, including sponsoring agreements, mission statements, funding data, and type of r&d being performed, to the nsf upon', 22984:'its request for such information. 35.0177limitation onthe creation of new ffrdc’s. pursuant to 10 u.s.c. 4126, the secretary of defense,', 22985:'thesecretary of the army, thesecretary of the navy, the secretary of the air force, the secretaryof homeland security, and the', 22986:'administrator of the national aeronautics and space administration may not obligate or expend amounts appropriated to the department of defense', 22987:'for purposes of operating an ffrdc that was not in existence before june 2, 1986, until— a the head of', 22988:'the agency submits to congress a report with respect to such center that describes the purpose, mission, and general scope', 22989:'ofeffort of thecenter; and part 35 research and development contracting 35.0177 b a period of 60 days, beginning on the', 22990:'date such report is received by congress, has elapsed. this page intentionally left blank. 35.010 part 36 construction and architectengineer', 22991:'contracts sec. 36.000 scope of part. 36.001 definitions. subpart 36.1 general 36.101 applicability. 36.102 definitions. 36.103 methods of contracting. 36.104', 22992:'policy. subpart 36.2 special aspects of contracting for construction 36.201 evaluation of contractor performance. 36.202 specifications. 36.203 government estimate of', 22993:'construction costs. 36.204 disclosure of the magnitude of construction projects. 36.205 statutory cost limitations. 36.206 liquidated damages. 36.207 pricing fixedprice', 22994:'construction contracts. 36.208 concurrent performance of firmfixedprice and other types of construction contracts. 36.209 construction contracts with architect engineer firms.', 22995:'36.210 inspection of site and examination of data. 36.211 distribution of advance notices and solicitations. 36.212 preconstruction orientation. 36.213 special', 22996:'procedures for sealed bidding in construction contracting. 36.2131 general. 36.2132 presolicitation notices. 36.2133 invitations for bids. 36.2134 notice of award.', 22997:'36.214 special procedures for price negotiation in construction contracting. 36.215 special procedure for costreimbursement contracts for construction. subpart 36.3 twophase', 22998:'design build selection procedures 36.300 scope of subpart. 36.301 use of twophase designbuild selection procedures. 36.302 scope of work. 36.303', 22999:'procedures. 36.3031 phase one. 36.3032 phase two. subpart 36.4 [reserved] 36.500 36.501 36.502 36.503 36.504 36.505 36.506 36.507 36.508 36.509', 23000:'36.510 36.511 36.512 36.513 36.514 36.515 36.516 36.517 36.518 36.519 36.520 36.521 36.522 36.523 subpart 36.5 contract clauses scope of', 23001:'subpart. performance ofworkby the contractor. differing siteconditions. site investigation and conditions affecting the work. physical data. material and workmanship. superintendence', 23002:'by the contractor. permits and responsibilities. other contracts. protection of existing vegetation, structures, equipment, utilities, and improvements. operations and storage', 23003:'areas. use and possession prior to completion. cleaning up. accident prevention. availability and use of utility services. schedules for construction', 23004:'contracts. quantity surveys. layout of work. work oversight in costreimbursement construction contracts. organization and direction of thework. contracting by negotiation.', 23005:'specifications and drawings for construction. preconstruction conference. site visit. subpart36.6 architectengineerservices subpart 36.7 standard and optional 36.600 scope of subpart.', 23006:'forms for contracting for construction, 36.601 policy. architectengineer services, and dismantling, 36.6011 public announcement. demolition, or removal of improvements 36.6012', 23007:'competition. 36.700 scope of subpart. 36.6013 applicable contracting procedures. 36.701 standard and optional forms for use in 36.6014 implementation. contracting', 23008:'for construction or dismantling, 36.602 selection of firms for architectengineer demolition, or removal of improvements. contracts. 36.702 forms for use', 23009:'in contracting for architect36.602 1 selection criteria. engineer services. 36.6022 evaluation boards. 36.6023 evaluation board functions. 36.6024 selection authority. 36.6025', 23010:'short selection process for contracts not to exceed the simplified acquisition threshold. 36.603 collecting data on and appraising firms qualifications.', 23011:'36.604 performance evaluation. 36.605 government cost estimate for architect engineer work. 36.606 negotiations. 36.607 release of information on firm selection.', 23012:'36.608 liability for government costs resulting from design errors or deficiencies. 36.609 contract clauses. 36.6091 design within funding limitations. 36.6092', 23013:'redesign responsibility for design errors or deficiencies. 36.6093 work oversight in architectengineer contracts. 36.6094 requirements for registration of designers. subpart', 23014:'36.1 general 36.104 36.000scope of part. this part prescribes policies and procedures peculiar to contracting for construction and architectengineer services.', 23015:'it includes requirements for using certain clauses and standard forms that apply also to contracts for dismantling, demolition, or removal', 23016:'of improvements. 36.001definitions. as used in this part construction and demolition materials and debris means waste materials and debris generated', 23017:'during construction, renovation, demolition, or dismantling of all structures and buildings and associated infrastructure. diverting means redirecting materialsfrom disposal inlandfills', 23018:'or incinerators to recycling orrecovery, excluding diversion to wastetoenergy facilities. modernization project means a project that includes the comprehensive replacement', 23019:'or restoration of virtually all major systems, interior finishes such as ceilings, partitions, doors, and floor finishes, and building features.', 23020:'subpart 36.1 general 36.101 applicability. a construction and architectengineer contracts are subject to the requirements in other parts of this', 23021:'regulation, which shall be followed when applicable. b when a requirement in this part is inconsistent with a requirement in', 23022:'another part of this regulation, this part 36 shall take precedence if the acquisition of construction or architectengineer services is', 23023:'involved. c a contract for both construction and supplies or services shall include 1 clauses applicable to the predominant part', 23024:'of the work see subpart 22.4, or 2 if the contract is divided into parts, the clauses applicable to each', 23025:'portion. 36.102definitions. as used in this part contract is intended to refer to a contract for construction or a contract', 23026:'for architectengineer services, unless another meaning is clearly intended. design means defining the construction requirement including the functional relationships and', 23027:'technical systems to be used, such as architectural, environmental, structural, electrical, mechanical, and fire protection, producing the technical specifications and', 23028:'drawings, and preparing the construction cost estimate. designbidbuild means the traditional delivery method where design and construction are sequential and', 23029:'contracted for separately with two contracts and two contractors. designbuild means combining designandconstruction ina single contract with one contractor. firm', 23030:'in conjunction with architectengineer services, means any individual, partnership, corporation, association, or other legal entity permitted by law to practice', 23031:'the professions of architecture or engineering. plans and specifications means drawings, specifications, and other data for and preliminary to the', 23032:'construction. record drawings means drawings submitted by a contractor or subcontractor at any tier to show the construction of a', 23033:'particular structure or work as actually completed under the contract. twophase designbuild selection procedures is aselection method in whicha limited', 23034:'number of offerors normallyfive or fewerisselectedduringphaseonetosubmitdetailedproposalsforphasetwosee subpart 36.3. 36.103methods of contracting. a thecontracting officer shall use sealedbid procedures for a', 23035:'construction contract if the conditions in 6.401a apply, unless the contract will be performed outside the united states and its', 23036:'outlying areas. see 6.401b2. b contracting officersshallacquire architectengineer services by negotiation, and select sources in accordancewith applicable law, subpart 36.6,', 23037:'and agency regulations. 36.104 policy. a unless the traditional acquisition approach of designbidbuild established under 40 u.s.c. chapter 11, selection', 23038:'of architects and engineers,or another acquisition procedure authorized bylawis used, the contracting officer shall use the twophase selection procedures authorized', 23039:'by 10 u.s.c. 3241 or 41 u.s.c.3309 when entering into a contract for the design federal acquisition regulation and constructionof', 23040:'apublicbuilding, facility, or work, ifthe contracting officer makes a determination that the procedures are appropriate for use see subpart 36.3.', 23041:'other acquisition procedures authorized by law include the procedures established in this part and other parts of this chapter and,', 23042:'for dod, the designbuild process described in 10 u.s.c. 2862. b agencies shall implement highperformance sustainable building design, construction, renovation,', 23043:'repair, commissioning, operation and maintenance, management, and deconstruction practices so as to— 1 ensure that— i all new construction and', 23044:'modernization projects greater than 25,000 gross square feet are designed, constructed, and maintained to meet and, wherever practicable, exceed federal', 23045:'sustainable design and operations principles for new construction and modernization projects in accordance with the council on environmental qualitys guiding', 23046:'principles for sustainable federal buildings and associated instructions guiding principles available at https://www.sustainability.gov/ pdfs/guidingprinciplesforsustainablefederalbuildings.pdf; and ii all renovation projects of', 23047:'existing federal buildings must use, to the greatest extent technically feasible and practicable, federal sustainable design and operations principles for', 23048:'existing buildings in accordance with the guiding principles; 2 identify alternatives to renovation that reduce existing assets deferred maintenance costs;', 23049:'3 ensure that rehabilitation of federallyowned historic buildings utilizes best practices and technologies in retrofitting to promote longterm viability of', 23050:'the buildings; and 4 ensure pollution prevention and eliminate waste by diverting at least 50 percent of nonhazardous construction and', 23051:'demolition materials and debris. c 1 agencies shall require the use of a project labor agreement for federal construction projects', 23052:'with a total estimated construction cost at or above $35 million, unless an exception applies see subpart 22.5. 2 contracting', 23053:'officersconducting market research for federal construction contracts, valued at or above the threshold in paragraph c1 of this section, shall', 23054:'ensure that the procedures at 10.002b1 involve a current and proactive examination of the market conditions in the project area', 23055:'to determine national, regional, and local entity interest in participating on a project that requires a project labor agreement, and', 23056:'to understand the availability of unions, and unionized and nonunionized contractors. contracting officers may coordinate with agency labor advisors, as', 23057:'appropriate. subpart 36.2 special aspects of contracting for construction 36.205 subpart 36.2 special aspects of contracting for construction 36.201evaluation of', 23058:'contractor performance. see 42.1502e for the requirements for preparing past performance evaluations for construction contracts. 36.202specifications. a construction specifications shall', 23059:'conform to the requirements in part 11 of this regulation. b whenever possible,contracting officers shall ensurethat references inspecifications are to', 23060:'widely recognized standards or specifications promulgated by governments, industries, or technical societies. c when brandnameor equal descriptions arenecessary, specifications mustclearly', 23061:'identifyanddescribe the particular physical, functional, or other characteristics of the brandname items which are considered essential to satisfying the requirement.', 23062:'36.203government estimate of construction costs. a an independent government estimate of constructioncosts shall be prepared and furnished to the contracting', 23063:'officer at the earliest practicable time for each proposed contract and for each contract modification anticipated to exceed the simplified', 23064:'acquisition threshold. the contracting officer mayrequire anestimatewhen the cost ofrequired work is not anticipated to exceed the simplified acquisition threshold.', 23065:'the estimate shall be prepared in as much detail as though the government were competing for award. b when twostep', 23066:'sealed bidding is used, the independent government estimate shall be prepared when the contract requirements are definitized. c access toinformation', 23067:'concerning the government estimate shall be limited to government personnel whoseofficial duties require knowledge of the estimate. an exception to', 23068:'this rule may be made during contract negotiations to allow the contracting officerto identify aspecialized task and disclose theassociated cost', 23069:'breakdown figures in the government estimate, but only to the extent deemed necessary to arrive at a fair and reasonable', 23070:'price. the overall amount of the government’s estimate shall not be disclosed except as permitted by agency regulations. 36.204 disclosure', 23071:'ofthe magnitude of construction projects. advance notices and solicitations shall state the magnitude of the requirement in terms of physical', 23072:'characteristics and estimated price range. in no event shall thestatement of magnitude disclose the government’s estimate. therefore,the estimated price should', 23073:'be described in terms of one of the following price ranges: a less than $25,000. b between $25,000 and $100,000.', 23074:'c between $100,000 and $250,000. d between $250,000 and $500,000. e between $500,000 and $1,000,000. f between $1,000,000 and $5,000,000.', 23075:'g between $5,000,000 and $10,000,000. h more than $10,000,000. 36.205statutory cost limitations. a contracts for construction shall not be awarded', 23076:'at a cost to the government 1 in excess of statutory cost limitations, unless applicable limitations can be and are', 23077:'waived in writing for the particular contract; or 2 which, with allowances for governmentimposed contingencies and overhead, exceeds the statutory', 23078:'authorization. b solicitations containing one or more items subject to statutory cost limitations shall state 1 the applicable cost limitation', 23079:'for eachaffected itemin a separate schedule; 2 that an offer which does not contain separatelypriced schedules willnot be considered; and', 23080:'3 that the price on each schedule shall include an approximate apportionment of all estimated direct costs, allocable indirect costs,', 23081:'and profit. c thegovernment shall reject anoffer if its prices exceed applicable statutory limitations, unless laws or agency procedures providepertinent', 23082:'exemptions. however, if it is in the government’s interest,the contracting officermay include federal acquisition regulation a provision in the solicitation', 23083:'which permits the award of separate contracts for individual items whose prices are within or subject to applicable statutory limitations.', 23084:'d the government shall also reject an offer if itsprices arewithin statutory limitations only because it ismaterially unbalanced. anoffer is', 23085:'unbalanced ifits pricesare significantly lessthan cost for some work, and overstated for other work. 36.206liquidated damages. the contractingofficer mustevaluatethe need', 23086:'for liquidated damages in a constructioncontract in accordance with 11.502 and agency regulations. 36.207pricing fixedprice construction contracts. a generally, firmfixedprice', 23087:'contracts shall beused to acquire construction. theymay be priced 1 on a lumpsum basis when a lump sum is paid', 23088:'for the total work or defined parts of the work, 2 on a unitprice basis when a unit price is', 23089:'paid for a specified quantity of work units, or 3 using a combination of the two methods. b lumpsum pricing', 23090:'shall be used in preference to unit pricing except when 1 largequantities of work such as grading, paving, building outside', 23091:'utilities, orsite preparation are involved; 2 quantities of work, such as excavation, cannot be estimated with sufficient confidence to permit', 23092:'a lumpsum offer without a substantial contingency; 3 estimated quantities of work required may change significantly during construction; or 4', 23093:'offerorswould have to expendunusualeffort to develop adequate estimates. c fixedprice contracts with economic price adjustment may be used if such', 23094:'a provision is customary in contracts for the type of work being acquired, or when omission of an adjustment provision', 23095:'would preclude a significant number of firms from submitting offers or would result in offerors including unwarranted contingencies in proposed', 23096:'prices. 36.208 concurrent performance offirmfixedprice and othertypes of constructioncontracts. in view of potential labor and administrative problems, costplusfixedfee, priceincentive, or', 23097:'other types of contracts with cost variationor cost adjustment features shall not be permitted concurrently,at the same work site, with', 23098:'firmfixedprice, lump sum,or unit price contractsexceptwith the prior approval of theheadof the contractingactivity. 36.209 construction contracts witharchitectengineer firms. no contract', 23099:'for the construction of a project shall be awarded to the firm that designed the project or its subsidiaries or', 23100:'affiliates, except with theapproval of theheadof the agency or authorized representative. 36.210inspection of site and examination of data. the contractingofficer', 23101:'should make appropriate arrangements for prospectiveofferorsto inspect the work site and to have the opportunity to examine data available to', 23102:'the government which may provide information concerning the performance of the work, such as boring samples, original boring logs, and', 23103:'records and plans of previous construction. the data should be assembled in one place and made available for examination. the', 23104:'solicitation should notifyofferorsof the time and place for thesite inspection and data examination. if it is not feasible for offerors', 23105:'toinspect the site or examine thedata on their own, thesolicitation should also designate an individual who will show the site', 23106:'ordata tothe offerors. significant site information and the data should bemadeavailable to all offerors in the same manner, including information', 23107:'regarding any utilities to befurnished during construction. arecord should be keptof the identity andaffiliation of all offerors’ representatives who inspect', 23108:'the site or examine the data. 36.211distribution of advance notices and solicitations. a advance notices and solicitations should be distributed', 23109:'to reach as many prospective offerors as practicable. contracting officersmay send notices and solicitations to organizations that maintain, without charge', 23110:'to the public, display rooms for the benefitof prospective offerors, subcontractors,andmaterial suppliers. ifrequested bysuch organizations, this may be done for', 23111:'all ora stated class of constructionprojects on an annual or semiannual basis. contracting officers may determine the geographical extent of', 23112:'distribution of advance notices and solicitations on a casebycase basis. b as required by 15 u.s.c. 644w, the contractingofficer shall', 23113:'transmit to the governmentwide point ofentry gpe a notice see 5.205h, in solicitation notices posted at the gpe for construction', 23114:'contracts anticipated to be awarded to a small subpart 36.2 special aspects of contracting for construction 36.2132 business pursuant to', 23115:'part 19. the notice shall include certain information regarding the agencys definitization of equitable adjustments for change orders under construction', 23116:'contracts. this information includes: 1 a description of agency policies orprocedures,in addition to that outlined in far 43.204, that apply', 23117:'to definitization of equitable adjustments for change orders under construction contracts. this description may be provided in a notice by', 23118:'including an address of an agencyspecific, publicly accessible website containing this information. if no agency specific additional policies and procedures', 23119:'exist, thenotice shall includea statement tothat effect. 2 data on the agencys past performance, for the prior 3 fiscal years,', 23120:'regarding the time required to definitize equitable adjustments for change orders under construction contracts see 43.204. if fewer than 3', 23121:'fiscal years of data are available, agencies shall provide data for the number of fiscal years that are available. data', 23122:'shall be provided in the solicitation notice as shown in the following table, or provide the address of an agencyspecific,', 23123:'publicly accessible website containing this information. an adequate change orderdefinitization proposal shall containsufficient information to enable thecontracting officer toconduct meaningful', 23124:'analyses and auditsof the information contained in the proposal. table 1 to paragraph b2 timetodefinitizeafterreceiptofan numberofchangeorderproposals adequate change order definitization', 23125:'definitized under construction contracts proposal under construction contracts 30 days or less 31 to 60 days 61 to 90 days', 23126:'91 to 180 days 181 to 365 days 366 or more days after completion of contract performance via a contract', 23127:'modification addressing all undefinitized equitable adjustments received during contract performance 36.212 preconstruction orientation. a thecontracting officer will inform the successful', 23128:'offeror of significant matters of interest, including 1 statutory matters such as labor standards subpart 22.4, and subcontracting plan requirements', 23129:'subpart 19.7; and 2 other matters of significant interest, including who has authority to decide matters such as contractual, administrative', 23130:'e.g., security,safety,and fire and environmental protection, and construction responsibilities. b asappropriate, the contracting officer may issue an explanatory letteror conduct', 23131:'a preconstruction conference. c if a preconstruction conference is to be held, the contracting officer shall 1 conduct the conference', 23132:'prior to the start of construction at the work site; 2 notify the successful offeror of the date, time, and', 23133:'location of the conferencesee 36.522; and 3 inform the successful offeror ofthe proposed agenda and any need for attendance by', 23134:'subcontractors. 36.213 special procedures for sealed bidding in construction contracting. 36.2131 general. contractingofficersshallfollowtheproceduresforsealedbiddingin part 14, as modified and supplemented by', 23135:'the requirements in this subpart. 36.2132presolicitation notices. a unless the requirement is waived by theheadof the contractingactivity or a designee,', 23136:'the contractingofficer shall issue presolicitation notices on any construction requirement when the proposed contract is expected to exceed the simplified', 23137:'acquisition threshold. presolicitation notices may also be used when the proposed contract is not expected to exceed the simplified acquisitionthreshold.', 23138:'these notices shall be issued sufficiently in advance of the invitation for bids to stimulate the interest of the greatest', 23139:'number of prospective bidders. b presolicitation notices must 36.2133 federal acquisition regulation 1 describe the proposedworkin sufficient detail to disclose', 23140:'thenature and volume of work in terms of physical characteristics and estimated price range see 36.204; 2 state the location', 23141:'of the work; 3 include tentative dates for issuing invitations, opening bids, and completing contract performance; 4 state whereplans will', 23142:'be available for inspection without charge; 5 specify a date by which requests for the invitation for bids should be', 23143:'submitted; 6 state whether award is restricted to small businesses; 7 specify any amount tobe charged for solicitation documents; and', 23144:'8 be publicized through the governmentwide point of entry in accordance with 5.204. 36.2133 invitations for bids. a invitations for', 23145:'bids for construction shall allow sufficient time for bid preparationi.e., the period of time between the date invitations are distributed', 23146:'and the date set for opening of bids but see 5.203 and 14.2021 to allow bidders an adequate opportunity to', 23147:'prepare and submit their bids, giving due regard to the construction season and the time necessary for bidders to inspect', 23148:'the site, obtain subcontract bids, examine data concerning the work, and prepare estimates based on plans and specifications. b invitations', 23149:'for bids shall be prepared in accordance with subpart 14.2 and this section using the forms prescribed in part 53.', 23150:'c contracting officers should assure that eachinvitation for bids includes the following information, when applicable. the appropriate wage determination of', 23151:'the secretary of labor see subpart 22.4,or,iftheinvitationforbidsmustbeissued before the wage determination is received, a notice that the schedule of minimum', 23152:'wage rates to be paid under the contract will be issued as an amendment to the invitation for bids before', 23153:'the opening date for bids see 14.208 and subpart 22.4. 1 the performanceof workby the contractor clause see 36.501 and', 23154:'52.2361. 2 the magnitude of the proposed construction project see 36.204. 3 the period of performance see subpart 11.4. 4', 23155:'arrangements made for bidders to inspect the site and examine the data concerning performance of the work see 36.210. 5', 23156:'information concerning anyfacilities,such as utilities, office space, and warehouse space, to be furnished during construction. 6 information concerning the prebid', 23157:'conference see 14.207. 7 any special qualifications or experience requirements that will be considered in determining the responsibility of bidders', 23158:'see subpart 9.1. 8 any special instructions concerning bids, alternate bids, and award. 9 any instructions concerning reporting requirements. d', 23159:'the contractingofficer shall send invitationsforbids to prospective bidders who requestedthem in responseto the presolicitation notice, and should send them to', 23160:'other prospective bidders upon their specific request see 5.102a. 36.2134 notice of award. when anotice of award isissued, it shall', 23161:'be donein writing or electronically, shall containinformationrequired by 14.408, and shall a identify the invitation for bids; b identifythe contractor’s', 23162:'bid; c state the award price; d advise the contractor that any required payment and performance bonds must be promptly', 23163:'executed and returned to thecontracting officer; e specify the date of commencement of work, or advise that a notice to', 23164:'proceed will be issued. 36.214 special procedures for price negotiation in construction contracting. a agencies shall follow the policies and', 23165:'procedures in part 15 when negotiating prices for construction. b the contractingofficer shall evaluate proposals and associated certified cost or', 23166:'pricingdata and dataother than certified cost or pricing data and shall compare them to the government estimate. 1 when submission', 23167:'of certified cost or pricing data is not required see 15.4031 and 15.4032, and any element of proposed cost differs', 23168:'significantly fromthe government estimate, thecontracting officer should request the offeror to submit subpart 36.2 special aspects of contracting for construction', 23169:'36.215 cost information concerning that element e.g., wage rates or fringe benefits, significant materials, equipment allowances, and subcontractor costs. 2', 23170:'when aproposed price is significantly lowerthan the government estimate, the contracting officer shall make sure both theofferor and the government', 23171:'estimator completely understand thescope of the work. if negotiations reveal errors in the government estimate, the estimate shall be corrected', 23172:'and the changes shall be documented in the contract file. c when appropriate, additional pricing tools may be used. for', 23173:'example, proposed prices may be compared to current prices for similartypes of work, adjustedfordifferences in the work site and the', 23174:'specifications. also, rough yardsticks may be developed and used, such as cost per cubic foot for structures, cost per linear', 23175:'foot for utilities, and cost per cubic yard for excavation or concrete. 36.215 special procedure forcostreimbursement contracts for construction. contracting', 23176:'officersmay usea costreimbursement contract to acquire construction only when its use isconsistent with subpart 16.3 and part 15 see 15.4044c4i', 23177:'for fee limitation on costreimbursement contracts. this page intentionally left blank. 36.26 subpart 36.3 twophase designbuild selection procedures 36.3031 subpart', 23178:'36.3 twophase designbuild selection procedures 36.300scope of subpart. this subpart prescribes policies and procedures for the use of the twophase', 23179:'designbuild selection procedures authorized by 10 u.s.c. 3241 and 41 u.s.c. 3309. 36.301 use of twophasedesignbuild selection procedures. a during', 23180:'formal or informal acquisition planning see part 7, if considering the use of twophase designbuild selection procedures, thecontracting officer shall', 23181:'conduct the evaluation in paragraph b of this section. b the twophase designbuildselection procedures shall be used whenthe contracting officer', 23182:'determines that this method is appropriate, based on the following: 1 three or more offers are anticipated. 2 design work', 23183:'must be performed by offerors before developing price or costproposals,andofferorswill incur a substantial amountof expense in preparing offers. 3 the', 23184:'following criteria have been considered: i the extent to which the project requirements have been adequately defined. ii the time', 23185:'constraints for delivery of the project. iii the capability and experience of potential contractors. iv the suitability of the project', 23186:'for use of the twophase selection method. v the capability of the agency to manage the twophase selection process. vi', 23187:'othercriteria establishedby the head ofthe contracting activity. 36.302scope of work. the agency shall develop, either inhouse or by contract, a', 23188:'scope of work that defines the project and states the government’s requirements. the scope of work may include criteria and', 23189:'preliminarydesign, budget parameters, and schedule or delivery requirements. if the agency contracts for development of the scope of work, the', 23190:'procedures in subpart 36.6 shall be used. 36.303 procedures. one solicitation may be issued covering both phases, or two solicitations', 23191:'may be issued in sequence. proposals will be evaluated in phase one todetermine whichofferorswill submit proposals for phase two. onecontract', 23192:'will be awarded using competitive negotiation. 36.3031 phase one. a phase one of the solicitations shall include 1 the scope', 23193:'of work; 2 the phaseone evaluation factors, including itechnicalapproachbutnot detailed design ortechnicalinformation; iitechnical qualifications, such as a specialized experience and', 23194:'technical competence; b capability to perform; c pastperformance of the offeror’s teamincludingthe architectengineerand construction members; and iii other appropriate factors', 23195:'excluding cost or price related factors, which are not permitted in phase one; 3 phasetwo evaluation factors see 36.3032; and', 23196:'4 a statement of themaximum number of offerors that will be selected to submitphasetwoproposals. the maximum number specifiedin the solicitation', 23197:'shall notexceed fiveunlessthe contracting officerdetermines, for that particular solicitation, that a number greater than five is in the governments interest', 23198:'and is consistent with the purposes and objectives of the twophase designbuild selection procedures. the contracting officer shall documentthisdetermination in', 23199:'the contract file. for acquisitions greaterthan $4.5 million, the determination shall be approved by the head of thecontracting activity, delegable', 23200:'to a levelno lower than the senior contracting official withinthe contracting activity. in civilian agencies, for paragraph a4 ofthissection, thesenior', 23201:'contracting official is theadvocate for competitionforthe procuring activity, unless theagency designates adifferent positionin agency procedures. the approval shall bedocumented in', 23202:'the contract file. 36.3032 federal acquisition regulation b afterevaluating phaseoneproposals, the contracting officer shall selectthe most highly qualified offerors not', 23203:'to exceed the maximum number specified in the solicitation in accordance with 36.3031a4 and request that only those offerors submitphasetwo', 23204:'proposals. 36.3032phasetwo. aphasetwoofthesolicitationsshallbepreparedinaccordancewith part 15, and include phasetwo evaluation factors, developed in accordance with 15.304. examples of potential phasetwo technical', 23205:'evaluation factors include design concepts, management approach, key personnel, and proposed technical solutions. b phase two of the solicitations shall', 23206:'require submission of technical and price proposals, which shall be evaluated separately, in accordance with part 15. subpart 36.4 [reserved]', 23207:'subpart 36.4 [reserved] this page intentionally left blank. 36.42 subpart 36.5 contract clauses 36.506 subpart 36.5 contract clauses 36.500scope of', 23208:'subpart. a this subpart prescribes provisions and clauses for insertion in solicitations and contracts for— 1 construction; and 2 dismantling,', 23209:'demolition, or removal of improvements contracts. b provisions and clauses prescribedelsewhere in the federalacquisition regulation far shall also beused insuch', 23210:'solicitations and contracts when the conditions specified in the prescriptions for the provisions and clauses are applicable. 36.501 performance of', 23211:'work by the contractor. a to assure adequate interest in and supervision of all work involved in larger projects, the', 23212:'contractor shall berequired to perform a significant part of the contract work with its own forces. the contract shall express', 23213:'this requirement in terms of a percentage that reflects the minimum amount of work the contractor must perform with its', 23214:'own forces. this percentage is 1 as high as the contracting officer considersappropriateforthe project, consistentwith customary or necessary specialty subcontracting', 23215:'and the complexity and magnitude of the work, and 2 ordinarily not less than 12 percent unless a greater percentage', 23216:'is required by law or agency regulation. specialties such as plumbing, heating, and electrical work are usually subcontracted, and should', 23217:'not normally be considered in establishing the amount of work required to be performed by the contractor. b the contractingofficer', 23218:'shall insertthe clause at 52.2361, performance of work by the contractor, in solicitations and contracts, except those awarded pursuant to', 23219:'subparts 19.5, 19.8, 19.13, 19.14, or 19.15 when a fixedprice construction contract is contemplated andthe contract amount is expected to', 23220:'exceed $1.5 million. the contracting officer may insert the clause in solicitations and contracts when a fixedprice construction contract is', 23221:'contemplated and the contract amount is expected to be $1.5 million or less. 36.502differing site conditions. the contractingofficer shall insertthe', 23222:'clause at 52.2362, differing site conditions, in solicitations and contracts when a fixedprice construction contract or a fixedprice dismantling, demolition,', 23223:'or removal of improvements contract is contemplated and the contract amount isexpected to exceedthe simplified acquisitionthreshold. the contractingofficer may insert', 23224:'the clause in solicitations and contracts when a fixedprice construction or a fixedprice contract for dismantling, demolition, or removal of', 23225:'improvements is contemplated and the contract amount is expected to be at or below the simplified acquisition threshold. 36.503site investigation', 23226:'and conditions affecting the work. the contractingofficer shall insertthe clause at 52.2363, site investigationand conditions affecting the work,in solicitations and', 23227:'contracts when a fixedprice construction contract or a fixedprice dismantling, demolition, or removal of improvements contract is contemplated and the', 23228:'contract amount is expected to exceed the simplified acquisition threshold. the contractingofficer may insert the clause insolicitationsandcontracts when a fixedprice', 23229:'construction ora fixedprice contract for dismantling, demolition, or removal of improvements is contemplated and the contract amount is expected to', 23230:'be at or below the simplified acquisition threshold. 36.504physical data. the contractingofficer shall insertthe clause at 52.2364, physical data, in', 23231:'solicitations and contracts when a fixedprice construction contract is contemplated and physical data e.g., test borings, hydrographic data, weather conditions', 23232:'data will be furnishedor made available toofferors. 36.505material and workmanship. the contractingofficer shall insertthe clause at 52.2365, materialandworkmanship, in solicitations', 23233:'and contracts for construction contracts. 36.506 superintendenceby the contractor. the contractingofficer shall insertthe clause at 52.2366, superintendenceby the contractor,in solicitations', 23234:'and contracts when a fixedprice construction contract or a fixedprice dismantling, demolition, or removal of improvements contract is contemplated and', 23235:'the contract amount isexpected to exceedthe simplified acquisitionthreshold. the contractingofficer federal acquisition regulation may insert the clause in solicitations and', 23236:'contracts when a fixedprice construction or a fixedprice contract for dismantling, demolition, or removal of improvements is contemplated and the', 23237:'contract amount is expected to be at or below the simplified acquisition threshold. 36.507 permits and responsibilities. the contractingofficer shall', 23238:'insertthe clause at 52.2367, permits and responsibilities, in solicitations and contracts when a fixedprice or costreimbursement construction contract or a', 23239:'fixedprice dismantling, demolition, or removal of improvements contract is contemplated. 36.508other contracts. the contractingofficer shall insertthe clause at 52.2368, other', 23240:'contracts, in solicitations and contracts when a fixed price construction contract or a fixedprice dismantling, demolition, or removal of improvements', 23241:'contract is contemplated and the contractamount is expected toexceed the simplified acquisition threshold. the contracting officermay insertthe clause in solicitations', 23242:'and contracts when a fixedprice construction or a fixedprice contract for dismantling, demolition, or removal of improvements is contemplated and', 23243:'the contract amount is expected to be at or below the simplified acquisition threshold. 36.509 protection ofexisting vegetation, structures, equipment,', 23244:'utilities, andimprovements. the contractingofficer shall insertthe clause at 52.2369, protection of existing vegetation, structures, equipment, utilities, and improvements, in solicitations', 23245:'and contracts when a fixedprice construction contract or a fixedprice dismantling, demolition, or removal of improvements contract is contemplated and', 23246:'the contract amount is expected to exceed thesimplified acquisition threshold. the contracting officer may insert the clause in solicitations and', 23247:'contracts whena fixed price construction or a fixedprice contract for dismantling, demolition, or removal of improvements is contemplated and the', 23248:'contract amount is expected to be at or below the simplified acquisition threshold. 36.510 operations and storage areas. the contractingofficer', 23249:'shall insertthe clause at 52.23610, operations and storage areas, in solicitations and contracts when a fixedprice construction contract or a', 23250:'fixedprice dismantling, demolition, or removal of improvements contract is contemplated and the contract amount isexpected to exceedthe simplified acquisitionthreshold. the', 23251:'contractingofficer may insert the clause in solicitations and contracts when a fixedprice construction or a fixedprice contract for dismantling, demolition,', 23252:'or removal of improvements is contemplated and the contract amount is expected to be at or below the simplified acquisition', 23253:'threshold. 36.511use and possession prior to completion. the contractingofficer shall insertthe clause at 52.23611, use and possession prior to completion,', 23254:'in solicitations and contracts when a fixedprice construction contract is contemplated and the contract award amount is expected to exceed', 23255:'the simplified acquisition threshold. this clause may be inserted in solicitations and contracts when the contract amount is expected to', 23256:'be at or below the simplified acquisition threshold. 36.512cleaning up. the contractingofficer shall insertthe clause at 52.23612, cleaning up, in', 23257:'solicitations and contracts when a fixedprice construction contract or a fixedprice dismantling, demolition, or removal of improvements contract is contemplated', 23258:'and the contract amountis expected to exceed the simplified acquisition threshold. thecontracting officer may insert the clause in solicitations and', 23259:'contracts when a fixedprice construction or a fixedprice contract for dismantling, demolition, or removal of improvements is contemplated and the', 23260:'contract amount is expected to be at or below the simplified acquisition threshold. 36.513 accident prevention. a thecontracting officer shall', 23261:'insert the clause at 52.23613, accident prevention, in solicitations and contracts when a fixedprice construction contract or a fixedprice dismantling,', 23262:'demolition, or removal of improvements contract is contemplated and the contract amount isexpected to exceedthe simplified acquisitionthreshold. the contractingofficer may', 23263:'insert the clause in solicitations and contracts when a fixedprice construction or a fixedprice contract for dismantling, demolition, or removal', 23264:'of improvements is contemplated and the contract amount is expected to be at or below the simplified subpart 36.5 contract', 23265:'clauses 36.521 acquisition threshold. if thecontract will involve work ofa long durationor hazardous nature, the contracting officer shall use the', 23266:'clause with its alternatei. b the contractingofficer shall insertthe clause or theclause with itsalternatei in solicitations and contractswhen a contract', 23267:'for services to be performed at government facilities see 48 cfr part 37 is contemplated, and technical representatives advise that', 23268:'special precautions are appropriate. c thecontracting officer should informthe occupationalsafety and health administration osha, or other cognizant federal, state, orlocal', 23269:'officials, of instances where the contractor has been notified to take immediate action to correct serious or imminent dangers. 36.514', 23270:'availability and use of utilityservices. the contractingofficer shall insertthe clause at 52.23614,availability and use of utility services, in solicitations and', 23271:'contracts when a fixedprice construction contract or a fixedprice dismantling, demolition, or removal of improvements contract is contemplated, the contractis', 23272:'tobe performedon government sites, andthe contracting officer decides a that the existingutility systems is adequate for theneeds of both thegovernment', 23273:'and the contractor, and b furnishing it is in the government’s interest. when this clause is used,the contracting officer shall', 23274:'list the availableutilities in the contract. 36.515schedules for construction contracts. the contractingofficer may insert the clause at 52.23615, schedules for', 23275:'construction contracts, in solicitations and contracts when a fixedprice construction contract is contemplated, the contract amount is expected to exceed', 23276:'the simplified acquisition threshold, and the period of actual work performance exceeds 60 days. this clause may also be inserted', 23277:'in such solicitations and contracts when work performance is expected to last less than 60 days and an unusual situation', 23278:'exists that warrants imposition of the requirements. this clause should not be used in the same contract with clauses covering', 23279:'other management approaches for ensuring that a contractor makes adequate progress. 36.516quantity surveys. the contractingofficer may insert the clause at', 23280:'52.23616, quantity surveys, in solicitations and contracts when a fixed price construction contract providing for unit pricing of items and', 23281:'for payment based on quantity surveys is contemplated. if it is determined ata level above that of the contracting officer', 23282:'that it is impracticable for government personnel to perform the original and final surveys, and the government wishes the contractor', 23283:'to perform these surveys, the clause shall be used with its alternate. 36.517layout of work. the contractingofficer shall insertthe clause', 23284:'at 52.23617,layout of work, in solicitations and contracts when a fixed price construction contract is contemplated and use of this', 23285:'clause is appropriate due to a need for accurate work layout and for siting verification during work performance. 36.518 workoversight', 23286:'in costreimbursementconstructioncontracts. the contractingofficer shall insertthe clause at 52.23618,work oversightin costreimbursementconstruction contracts, in solicitations and contracts when a costreimbursement construction', 23287:'contract is contemplated. 36.519 organization and direction ofthe work. the contractingofficer shall insertthe clause at 52.23619,organization anddirection of the work,', 23288:'in solicitations and contracts when a costreimbursement construction contract is contemplated. 36.520contracting by negotiation. the contractingofficer shall insertin solicitations for', 23289:'constructionthe provisionat 52.23628, preparation of offers construction, when contracting by negotiation. 36.521specifications and drawings for construction. the contractingofficer shall insertthe', 23290:'clause at 52.23621, specifications and drawings for construction, in solicitations and contracts when a fixedprice construction contract or a fixedprice', 23291:'dismantling, demolition, or removal of improvements contract is contemplated and the contract amount is expected to exceed the simplified acquisition', 23292:'threshold. the contracting officer may insert the clause in solicitations and contracts whena fixedprice construction or a fixedprice contractfor federal', 23293:'acquisition regulation dismantling, demolition, or removal of improvements is contemplated and the contract amount is expected to be at or', 23294:'below thesimplified acquisition threshold. when the government needs record drawings, the contractingofficer shall a use the clause with its alternatei,', 23295:'if reproducible shop drawings are needed; or b use the clause with its alternateii, if reproducible shop drawings are not', 23296:'needed. 36.522 preconstruction conference. if the contracting officer determines it maybe desirable to hold a preconstruction conference, the contracting officer', 23297:'shall insert a clause substantially the same as the clause at 52.23626, preconstruction conference, in solicitations and fixed price contracts', 23298:'for construction or for dismantling, demolition or removal of improvements. 36.523site visit. the contractingofficer shall inserta provision substantially the same', 23299:'as the provision at 52.23627,site visit construction, in solicitations which include the clauses at 52.2362, differing site conditions,and 52.2363, site', 23300:'investigations and conditions affecting the work. alternatei may be used when an organized site visit will beconducted. subpart 36.6 architectengineer', 23301:'services 36.6014 subpart 36.6 architectengineer services 36.600scope of subpart. this subpart prescribes policies and procedures applicable to the acquisition of', 23302:'architectengineer services, including orders for architectengineer services under multiagency contracts see 16.505a9. 36.601 policy. 36.6011 public announcement. the government shall', 23303:'publicly announce all requirements for architectengineer services and negotiate contracts for these services based on the demonstrated competence and qualifications', 23304:'of prospective contractors to perform the services at fair and reasonable prices. see 40 u.s.c. 1101 et seq. 36.6012 competition.', 23305:'acquisition of architectengineer services in accordance with the procedures in this subpart will constitute a competitive procedure. see 6.102d1. 36.6013applicable', 23306:'contracting procedures. a 1forfacilitydesigncontracts,thestatementofworkshallrequirethatthearchitectengineerspecify,inthe construction design specifications, use of the maximum practicable amount of recovered materials consistent with the performancerequirements,', 23307:'availability, pricereasonableness,and costeffectiveness. where appropriate,the statement of work also shall require the architectengineer to consider energy conservation, pollution prevention, andwaste', 23308:'reduction to the maximum extent practicable in developing the construction design specifications. 2 facility design solicitations and contracts that include', 23309:'thespecificationof energyconsuming products must comply with the requirements at subpart 23.1073. b sources for contracts for architectengineer services shall be', 23310:'selected in accordance with the procedures in this subpart rather than the solicitation or source selection procedures prescribed in parts', 23311:'13, 14, and 15 of this regulation. c when the contract statement of work includes both architectengineer services and other', 23312:'services, the contracting officer shall followthe procedures in this subpart ifthe statement of work, substantially or to a dominant extent,', 23313:'specifies performanceor approval by a registered or licensed architect or engineer. if thestatement ofworkdoes not specifysuch performanceorapproval,thecontractingofficershallfollowtheproceduresin parts 13, 14,', 23314:'or 15. d other than incidental services as specified in the definition of architectengineer services in 2.101 and in 36.6014a', 23315:'3, services that donot require performance by a registered or licensedarchitect or engineer, notwithstanding the fact that architectengineers also may', 23316:'perform those services, should be acquired pursuant to parts 13, 14, and 15. 36.6014 implementation. a contracting officers should consider', 23317:'the following services to be architectengineer services subject to the procedures of this subpart: 1 professionalservicesof an architectural or engineering', 23318:'nature,as defined by applicable state law, which thestate law requires to be performed or approved by a registered architect or', 23319:'engineer. 2 professional services of an architectural or engineering nature associated with design or construction of real property. 3 other', 23320:'professional services of an architectural or engineering nature or services incidental thereto including studies, investigations, surveying and mapping, tests, evaluations,', 23321:'consultations, comprehensive planning, program management, conceptual designs, plans and specifications, value engineering, construction phase services, soils engineering, drawing reviews, preparation', 23322:'of operating and maintenance manuals and other related services that logically or justifiably require performance by registered architects or engineers', 23323:'or their employees. 4 professional surveying and mapping services of an architectural or engineering nature. surveying is considered to be', 23324:'an architectural and engineering service and shall be procured pursuant to section 36.601 from registered surveyors or architects and engineers.', 23325:'mapping associated with the research, planning, development, design, construction, or alteration of real property is considered to be an architectural', 23326:'and engineering service and is to be procured pursuant to section 36.601. however, mapping services that are not connected to', 23327:'traditionallyunderstoodor acceptedarchitectural and engineering federal acquisition regulation activities, are not incidental to such architectural and engineering activities or have not', 23328:'in themselves traditionally been considered architectural and engineering services shall be procured pursuant to provisions in parts 13, 14, and', 23329:'15. b contracting officersmay award contracts for architectengineer servicesto any firm permitted by law to practice the professions of architecture', 23330:'or engineering. 36.602 selection of firmsfor architectengineer contracts. 36.6021 selection criteria. a agencies shall evaluate each potential contractor in terms', 23331:'of its 1 professional qualifications necessary for satisfactory performance of required services; 2 specialized experience and technical competence in the', 23332:'type of work required, including, where appropriate, experience in energy conservation, pollution prevention, wastereduction,and the use of recovered materials; 3', 23333:'capacity to accomplish the work in the required time; 4 past performance on contracts with government agencies and private industry', 23334:'in terms of cost control, quality of work, and compliance with performance schedules; 5 location in the general geographical area', 23335:'of the project and knowledge of the locality of the project; provided, that application of this criterion leaves an appropriate', 23336:'number of qualified firms, given the nature and size of the project; and 6 acceptability under other appropriate evaluation criteria.', 23337:'b when the use of design competition is approved by the agency head or a designee, agencies may evaluate firms', 23338:'on the basis of their conceptual design of the project. design competition may be used when 1 unique situations exist', 23339:'involving prestige projects, such as the design of memorials and structures of unusual national significance; 2 sufficient time is available', 23340:'for the production and evaluationof conceptual designs; and 3 the design competition, with its costs, will substantially benefit the project.', 23341:'c hold discussions with at least three of the most highly qualified firms regarding concepts, the relative utility of alternative', 23342:'methods and feasible ways to prescribe the useof recovered materialsandachievewaste reduction and energy efficiency in facility design see part 23.', 23343:'36.6022 evaluation boards. a when acquiring architectengineer services, an agency shall provide for one or more permanent or ad hoc', 23344:'architect engineer evaluation boards which may include preselection boards when authorized by agency regulations to be composed of members who,collectively,', 23345:'have experience in architecture, engineering, construction, and government and related acquisition matters. members shall be appointed from among highly qualified', 23346:'professional employees of the agency or other agencies, and if authorized by agency procedure, private practitioners of architecture, engineering, or', 23347:'related professions. one government member of each board shall be designated as the chairperson. b no firm shall be eligible', 23348:'for award of an architectengineer contract during the period in which any of its principals or associates are participatingas members', 23349:'of the awarding agency’s evaluation board. 36.6023 evaluation board functions. under thegeneral direction of the head of thecontracting activity,an evaluationboard', 23350:'shall perform thefollowing functions: a review the current data files on eligible firms and responses to a public notice concerning', 23351:'the particular project see 36.603. b evaluate the firms in accordance with the criteria in 36.6021. c hold discussions with', 23352:'at least three of the most highly qualified firms regarding concepts and the relative utility of alternative methods of furnishing', 23353:'the required services. d prepare a selection report for the agency head or other designated selection authority recommending, in order', 23354:'of preference, at least three firms that are considered to be the most highly qualified to perform the required services.', 23355:'the report shall include a description of the discussions and evaluation conducted by the board to allow the selection authority', 23356:'to review the considerations upon which the recommendations are based. 36.6024selection authority. a thefinal selectiondecision shall be made by the', 23357:'agencyheador adesignated selection authority. subpart 36.6 architectengineer services 36.603 b the selection authority shall review the recommendations of the evaluation', 23358:'board and shall, with the advice of appropriate technical and staff representatives, make the final selection. this final selection shall', 23359:'be alisting, in order of preference, of the firms considered most highly qualified to perform the work. if the firm', 23360:'listed as the most preferred is not the firm recommended as the most highly qualified by the evaluation board, the', 23361:'selection authority shall provide for the contract file a written explanation of the reason for the preference. all firms on', 23362:'the final selection list are considered selected firms withwhich the contractingofficer may negotiate in accordance with 36.606. c the selection', 23363:'authority shall not add firms to the selection report. if the firms recommended in the report are not deemed to', 23364:'be qualified or the report is considered inadequate for any reason, the selection authority shall record the reasons and return', 23365:'the report through channels to the evaluation board for appropriate revision. d the board shall be promptly informed of the', 23366:'final selection. 36.6025short selection process for contractsnot to exceed the simplified acquisitionthreshold. when authorized by theagency, either or both of', 23367:'the short processes described inthis subsection may beused to select firms for contracts not expected to exceed the simplified acquisition', 23368:'threshold. otherwise, the procedures prescribed in 36.6023 and 36.6024 shall be followed. a selection by the board. the board shall', 23369:'review and evaluate architectengineer firms in accordance with 36.6023, except that the selection report shall serve as thefinal selectionlist and', 23370:'shall beprovided directly to thecontracting officer. the report shall serveas an authorization for thecontracting officer tocommence negotiations in accordance with', 23371:'36.606. b selection by the chairperson of the board. when the board decides that formal action by the board is', 23372:'not necessary in connection with a particular selection, the following procedures shall be followed: 1 the chairperson of the board', 23373:'shall perform the functions required in 36.6023. 2 the agency head or designated selection authority shall review the report and', 23374:'approve it or return it to the chairperson for appropriate revision. 3 upon receipt ofan approved report, the chairperson of', 23375:'the board shall furnish thecontracting officer a copy of the report which will serve as an authorization for the contracting', 23376:'officer to commence negotiations inaccordance with 36.606. 36.603collecting data on and appraising firms qualifications. a establishing offices. agencies shall maintain', 23377:'offices or permanent evaluation boards, or arrange to usethe offices or boards of other agencies, to receive and maintain data', 23378:'on firms wishing to be considered for government contracts. each officeor board shall be assigned a jurisdiction by itsparent agency,making', 23379:'it responsible for a geographical region orarea, or a specialized type of construction. b qualifications data. tobe consideredforarchitectengineer contracts, a', 23380:'firm must file with the appropriate office or board the standard form 330, architectengineer qualifications, part ii, and when applicable,', 23381:'sf 330, part i. c data files and the classification of firms. underthe direction of theparent agency, offices orpermanent evaluation', 23382:'boards shall maintain an architectengineer qualifications data file. these offices or boards shall reviewthe sf 330 filed, and shall classify', 23383:'each firm with respect to 1 location; 2 specialized experience; 3 professional capabilities; and 4 capacity, with respectto thescope of', 23384:'work that can be undertaken. a firm’s ability andexperience in computer assisted design should be considered, when appropriate. d currency', 23385:'of files. any office or boardmaintaining qualifications data files shall review and updateeach file at least once a year. this', 23386:'processshouldinclude: 1 encouraging firms to submit annually an updated statement of qualifications and performance data on a sf 330, part', 23387:'ii. 2 reviewing the sf 330, part ii, and, if necessary, updating thefirm’s classification see 36.603c. 3 recording any contract', 23388:'awards made to thefirm in the past year. 4 assuring that the file contains a copy of each pertinent performance', 23389:'evaluation see 42.1502f. 5 discarding any material that has not been updated within the past three years, if it is', 23390:'no longer pertinent, see 42.1502f. 6 posting the date of the review in the file. e use of data files.', 23391:'evaluation boards and other appropriate government employees, including contracting officers, shall use data files on firms. federal acquisition regulation 36.604performance', 23392:'evaluation. see 42.1502f for the requirements for preparing past performance evaluations for architectengineer contracts. 36.605 governmentcost estimate for architectengineerwork. a', 23393:'an independent government estimate of the cost of architectengineer services shall be prepared and furnished to the contracting officerbefore commencing', 23394:'negotiationsforeach proposed contract or contract modification expected to exceed the simplified acquisition threshold. the estimate shall be prepared on the', 23395:'basis of a detailed analysis of the required work as though the government were submitting a proposal. b access to', 23396:'information concerning the governmentestimateshallbe limited to government personnel whose official duties require knowledge of the estimate. an exception to this', 23397:'rule may be made during contract negotiations to allow the contracting officerto identify aspecialized task and disclose theassociated cost breakdown', 23398:'figures in the government estimate, but only to the extent deemed necessary to arrive at a fair and reasonable price.', 23399:'the overall amount of the government’s estimate shall not be disclosed except as permitted by agency regulations. 36.606negotiations. a unless', 23400:'otherwise specifiedby the selection authority, the finalselection authorizes thecontracting officer tobegin negotiations. negotiations shall be conducted in accordance with part', 23401:'15ofthischapter,beginningwiththemostpreferred firm in the final selection see 15.4044c4i on fee limitation. b the contractingofficer should ordinarily request a proposalfrom the', 23402:'firm, ensuringthat thesolicitation does not inadvertently preclude the firm from proposing the use of modern design methods. c thecontracting officer', 23403:'shall informthe firm that no construction contract may be awardedto the firm that designed the project, except as provided in', 23404:'36.209. d during negotiations,the contracting officer should seek advance agreement see 31.109 on any chargesforcomputerassisted design. whenthe firm’s proposaldoes not', 23405:'cover appropriate modern and costeffective design methods e.g., computerassisted design, the contractingofficer should discuss this topicwith the firm. e because', 23406:'selection of firms is based upon qualifications, the extent of any subcontracting is an important negotiation topic. the clause prescribed', 23407:'at 44.204b, subcontractors and outside associates and consultants architectengineer services see 52.2444,limits afirm’s subcontracting to firmsagreed upon during negotiations. f', 23408:'ifa mutually satisfactorycontract cannot benegotiated, the contractingofficer shall obtain a written final proposal revision from the firm, andnotify the firm', 23409:'thatnegotiations have been terminated. the contracting officer shall theninitiate negotiations with the next firm on the final selection list. this', 23410:'procedure shall be continued until a mutually satisfactory contract has been negotiated. if negotiations fail with allselected firms, the contractingofficer', 23411:'shall referthe matter to the selection authority who, afterconsulting with thecontracting officer as to why a contract cannot be negotiated,', 23412:'may directthe evaluation board to recommend additional firms in accordance with 36.602. 36.607release of information on firm selection. a after', 23413:'final selection hastaken place, the contractingofficer may release informationidentifying only the architect engineer firm with which a contract will be', 23414:'negotiated for certain work. the work should be described in any release only in general terms, unless information relating to', 23415:'the work is classified. if negotiations are terminated without awarding a contract to the highestrated firm, the contracting officermay releasethat', 23416:'information and state that negotiations will be undertaken with another named architectengineer firm. when an awardhas been made, the contracting', 23417:'officer may release award information see 5.401. b debriefings of successful and unsuccessful firms will be held after final selection', 23418:'has taken place and will be conducted, to the extent practicable, in accordance with 15.503, 15.506b through f, and 15.507c.', 23419:'note that 15.506d2 through d5 do not apply to architectengineer contracts. 36.608 liability for government costs resulting from design errors', 23420:'or deficiencies. architectengineer contractorsshallbe responsible for theprofessional quality, technical accuracy, and coordination of all services required under their contracts. a', 23421:'firm may be liable for government costs resulting from errors or deficiencies in designs furnished under its contract. therefore, when', 23422:'a modification to a construction contract is required because of an error or deficiency in theservices provided under an architectengineer', 23423:'contract, the contracting officer with the advice of technical personnel and legal counsel shall consider the extent to which the', 23424:'architectengineer contractor may be reasonably liable. the contracting officer shall enforcethe liability and issue a demand for payment of theamount', 23425:'due, if the recoverable subpart 36.6 architectengineer services 36.6094 cost will exceed theadministrativecost involved or is otherwise in the government’sinterest.', 23426:'the contractingofficer shall include in the contract file a written statement of the reasons for the decision to recover or', 23427:'not to recover the costs from the firm. 36.609contract clauses. 36.6091 design within funding limitations. a the government may require', 23428:'the architectengineer contractor to design the project so that construction costs will not exceed a contractually specified dollar limit funding', 23429:'limitation. if the price of construction proposed in response to a government solicitation exceeds the construction funding limitation in the', 23430:'architectengineer contract, the firm shall be solely responsible for redesigning the project within the funding limitation. these additional services shall', 23431:'be performed at no increasein theprice of this contract. however, if thecost of proposed construction is affected by eventsbeyond the', 23432:'firm’s reasonablecontrol e.g., if there is an increase in material costs which could not have been anticipated, or an undue', 23433:'delay by the government in issuing a construction solicitation, the firm shall not be obligated to redesign at no cost', 23434:'to the government. if a firm’s design fails to meet the contractual limitationon construction cost and the government determines that', 23435:'the firm should not redesign the project, a written statement of the reasons for that determination shall be placed in', 23436:'the contract file. b the amount of the construction funding limitation to be inserted in paragraph c of the clause', 23437:'at 52.23622 is to be established during negotiations between the contractor and the government. this estimated construction contract price shall', 23438:'take into account any statutory or other limitations and exclude any allowances for government supervision and overhead and any amounts', 23439:'setaside bythe government for contingencies. in negotiating theamount, the contracting officer should make available to the contractor the information upon', 23440:'which the government has based its initial construction estimate and any subsequently acquired information that may affectthe constructioncosts. c thecontracting', 23441:'officer shall insert the clause at 52.23622, designwithin funding limitations, in fixedprice architectengineer contracts except when 1 the head of', 23442:'the contracting activity or a designee determines in writing that cost limitations are secondary to performance considerations and additional project', 23443:'funding can be expected, if necessary; 2 the design is for a standard structure and is not intended for a', 23444:'specific location; or 3 there is littleor no design effort involved. 36.6092redesign responsibilityfor design errors or deficiencies. a under architectengineer', 23445:'contracts, contractors shall be required to make necessary corrections at no cost to the government when the designs, drawings, specifications,', 23446:'or other items or services furnished contain any errors, deficiencies, or inadequacies. if, ina given situation,the government doesnot require a', 23447:'firm to correct such errors, the contracting officer shall include a written statement of the reasons for that decision in', 23448:'the contract file. b the contractingofficer shall insertthe clause at 52.23623,responsibility ofthe architectengineer contractor, in fixedprice architectengineer contracts. 36.6093work oversight', 23449:'inarchitectengineer contracts. the contractingofficer shall insertthe clause at 52.23624,work oversightin architectengineer contracts,in all architectengineer contracts. 36.6094requirements forregistration of designers. insert', 23450:'the clause at 52.23625, requirements for registration of designers, in architectengineer contracts, except that it may be omitted when the', 23451:'design will be performed a outside the united states and its outlying areas; or b in a state or outlying', 23452:'area of the united states that does not have registration requirements for the particular field involved. this page intentionally left', 23453:'blank. 36.66 subpart 36.7 standard and optional forms for contracting for construction, architectengineer services, and dismantling, demolition, or removal of', 23454:'improvements subpart 36.7 standard and optional forms for contracting for construction, architectengineer services, and dismantling, demolition, or removal of improvements', 23455:'36.700scope of subpart. this subpart sets forth requirements for the use of standard and optional forms, prescribed in part 53,', 23456:'for contracting for construction, architectengineer services, or dismantling, demolition, or removal of improvements. a listing of the standard forms is', 23457:'located in subpart 53.3. 36.701 standard and optional forms for usein contractingfor construction or dismantling, demolition, or removal of improvements.', 23458:'a standard form 1442, solicitation, offer, and award construction, alteration, or repair,shallbe used to solicit and submitoffers, and award construction', 23459:'or dismantling, demolition, or removal of improvements contractsexpected to exceed the simplified acquisition thresholds, and may be used for contracts', 23460:'at or below the simplified acquisition threshold. in all sealed bid solicitations, or when the government otherwiserequiresa noncancellable offer acceptance', 23461:'period, the contracting officer shall insert inthe blank provided in block 13d the number of calendar daysthat the offer mustbe', 23462:'available for acceptance after thedate offersare due. b optional form 347, order for supplies or services, may be used for', 23463:'construction or dismantling, demolition, or removal of improvements contracts that are at or below the simplified acquisition threshold; provided, that', 23464:'the contracting officerincludestheclausesrequiredsee subpart 36.5 in the simplified acquisitions see part 13. c contracting officers may use optional form 1419,abstract', 23465:'of offersconstruction,and optional form 1419a, abstract of offersconstruction, continuationsheet, or the automated equivalent, to record offers submittedin response to a', 23466:'sealed bid solicitation see 14.403 and mayalso use it to record offers submitted in response tonegotiated solicitations. 36.702 forms for', 23467:'use in contracting for architectengineerservices. a contracting officers mustuse standard form 252, architectengineer contract, to award fixedprice contracts for architectengineer', 23468:'services when the services will be performed in the united states or its outlying areas. b the sf 330, architectengineer', 23469:'qualifications, shall be used to evaluate firms before awarding a contract for architect engineer services: 1 use the sf 330,', 23470:'part icontractspecific qualifications, to obtain information from an architectengineer firm about its qualifications for a specific contract when the contract', 23471:'amount is expected to exceed the simplified acquisition threshold. part i may be used when the contract amount is expected', 23472:'to be at or below the simplified acquisition threshold, if thecontracting officer determines thatits use is appropriate. 2 use the', 23473:'sf 330, part iigeneral qualifications, to obtain information from an architectengineer firm about its general professional qualifications. this page intentionally', 23474:'left blank. 36.72 part 37 service contracting sec. 37.000 scope of part. subpart 37.1 service contractsgeneral 37.101 definitions. 37.102 policy.', 23475:'37.103 contracting officer responsibility. 37.104 personal services contracts. 37.105 competition in service contracting. 37.106 funding and term of service contracts.', 23476:'37.107 service contract labor standards. 37.108 small business certificate of competency. 37.109 services of quasimilitary armed forces. 37.110 solicitation provisions', 23477:'and contract clauses. 37.111 extension of services. 37.112 government use of private sector temporaries. 37.113 severance payments to foreign nationals.', 23478:'37.1131 waiver of cost allowability limitations. 37.1132 solicitation provision and contract clause. 37.114 special acquisition requirements. 37.115 uncompensated overtime. 37.1151', 23479:'scope. 37.1152 general policy. 37.1153 solicitation provision. subpart 37.2 advisory and assistance services 37.200 scope of subpart. 37.201 definition. 37.202', 23480:'exclusions. 37.203 policy. 37.204 guidelines for determining availability of personnel. 37.205 contracting officer responsibilities. subpart 37.3 dismantling, demolition, or removalof', 23481:'improvements 37.300 scope of subpart. 37.301 labor standards. 37.302 bonds or other security. 37.303 payments. 37.304 contract clauses. subpart 37.4', 23482:'nonpersonal health care services 37.400 scope of subpart. 37.401 policy. 37.402 contracting officer responsibilities. 37.403 contract clause. subpart 37.5 management', 23483:'oversight of service contracts 37.500 scope of subpart. 37.501 definition. 37.502 exclusions. 37.503 agencyhead responsibilities. 37.504 contracting officials’ responsibilities. subpart', 23484:'37.6 performancebased acquisition 37.600 scope of subpart. 37.601 general. 37.602 performance work statement. 37.603 performance standards. 37.604 quality assurance surveillance', 23485:'plans. this page intentionally left blank. subpart 37.1 service contractsgeneral 37.102 37.000scope of part. this part prescribes policy and procedures', 23486:'that are specific to the acquisition and management of services by contract. this part applies to all contracts and orders', 23487:'for services regardless of the contract type or kind of service being acquired. this part requires the use of performancebased', 23488:'acquisitions for services to the maximum extent practicable and prescribes policies and procedures for use of performancebased acquisition methods see', 23489:'subpart 37.6. additional guidance for research and development services is in part 35; architectengineering services is in part 36; information', 23490:'technology is in part 39; and transportation services is in part 47. parts 35,36,39, and 47 take precedence over this', 23491:'part in the event of inconsistencies. this part includes, but is not limited to, contracts for services to which 41', 23492:'u.s.c. chapter 67, service contract labor standards, applies see subpart 22.10. subpart 37.1 service contractsgeneral 37.101definitions. as used in this', 23493:'part adjusted hourly rate including uncompensated overtime is the rate that results from multiplying the hourly rate for a 40hour', 23494:'work week by 40, and then dividing by the proposed hours per week which includes uncompensated overtime hours over and', 23495:'above the standard 40hour work week. for example, 45 hours proposed on a 40hour work week basis at $20 per', 23496:'hour would be converted to an uncompensated overtime rate of $17.78 per hour $20.00 x 40 / 45 = $17.78.', 23497:'child care services means child protective services including the investigation of child abuse and neglect reports, social services, health and', 23498:'mental health care, child day care, education whether or not directly involved in teaching, foster care, residential care, recreational or', 23499:'rehabilitative programs, and detention, correctional, or treatment services. nonpersonal services contract means a contract under which the personnel rendering the', 23500:'services are not subject, either by thecontract’s terms or by the manner of its administration, to the supervision and control', 23501:'usually prevailing in relationships between the government and its employees. service contract meansa contract that directly engages the time and', 23502:'effort of a contractor whose primarypurpose is to perform anidentifiable task rather than to furnish an end item of supply.', 23503:'a service contract may beeither anonpersonalor personal contract. it can also cover services performed by either professional or nonprofessional personnel', 23504:'whether on an individualor organizational basis. some of theareas in which service contracts are found includethe following: 1 maintenance,overhaul,repair, servicing,', 23505:'rehabilitation, salvage, modernization, or modification ofsupplies, systems, or equipment. 2 routinerecurringmaintenance of realproperty. 3 housekeeping and base services. 4 advisory', 23506:'and assistance services. 5 operation of governmentowned equipment, realproperty, and systems. 6 communications services. 7 architectengineering see subpart 36.6. 8', 23507:'transportation and related services see part 47. 9 research and development see part 35. uncompensated overtime means the hours worked', 23508:'without additional compensation in excess of an average of 40 hours per week by direct charge employees whoare exempt fromthe', 23509:'fair laborstandards act. compensated personal absences such as holidays, vacations, and sick leave shall be included in the normal work', 23510:'week for purposes of computing uncompensated overtime hours. 37.102 policy. a performancebased acquisition see subpart 37.6 is the preferred method', 23511:'for acquiring services public law106398, section 821. when acquiring services, including those acquired under supply contracts or orders, agencies must', 23512:'1 use performancebased acquisition methods to the maximum extent practicable, except for i architectengineer services acquired in accordance with 40', 23513:'u.s.c. 1101 et seq. ; ii construction see part 36; iii utility services see part 41; or iv services that', 23514:'are incidental to supply purchases; and 2 use the following order of precedence public law106398, section 821a; iafirmfixedprice performancebasedcontract ortaskorder.', 23515:'federal acquisition regulation ii a performancebased contract or task order that is not firmfixed price. iii a contract or task', 23516:'order that is not performancebased. b agencies shall generally rely on the private sector for commercial services see omb circular', 23517:'no. a76, performance of commercial activities and subpart 7.3. c agencies shall not award a contract for the performance of', 23518:'an inherently governmental function see subpart 7.5. d nonpersonal service contracts are proper under general contracting authority. e agency program', 23519:'officials areresponsible for accurately describing theneedto befilled, or problem to be resolved, through service contracting in a manner that ensures', 23520:'full understanding and responsive performance by contractors and, in so doing, should obtain assistance from contracting officials, as needed. to', 23521:'the maximum extent practicable,the program officials shall describe the need to be filled usingperformancebased acquisition methods. f agencies shall establish', 23522:'effective management practices in accordance with office of federal procurement policy ofpp policy letter 931, management oversight of service contracting,', 23523:'to prevent fraud, waste, and abuse in service contracting. g services are to be obtained in the most costeffective manner,', 23524:'without barriers to full and open competition, and freeof any potential conflicts of interest. h agencies shall ensure that sufficiently', 23525:'trained and experienced officials are available within the agency tomanage and oversee the contract administration function. iagencies shall ensure that', 23526:'service contractsthat require the delivery, use, or furnishingof products are consistentwith subpart 23.1 see 23.103c. j except for dod, see', 23527:'15.1012d for limitations on the use of the lowest price technically acceptable source selection process to acquire certain services. 37.103', 23528:'contracting officer responsibility. a thecontracting officer is responsible for ensuring that a proposed contractforservices is proper. for this purposethe contracting', 23529:'officershall 1 determine whether the proposed service is for a personal or nonpersonal services contract using the definitions at 2.101', 23530:'and 37.101 and the guidelines in 37.104; 2 in doubtful cases, obtain the review of legal counsel; and 3 document', 23531:'the file except as provided in paragraph b of this section with ithe opinion of legal counsel, ifany, ii a', 23532:'memorandum of the facts and rationale supporting the conclusion that the contract does not violate the provisions in 37.104b, and', 23533:'iii any further documentation that the contracting agency may require. b nonpersonal services contracts are exempt from the requirements of', 23534:'paragraph a3 of this section. c ensure that performancebased acquisition methods are used to the maximum extent practicable when acquiring', 23535:'services. d ensure that contracts for child care services include requirements for criminal history background checks on employees who will', 23536:'perform child care services under the contract in accordance with 34 u.s.c. 20351 and agency procedures. e ensure that service', 23537:'contractor reporting requirements are met in accordance with subpart 4.17, service contracts inventory. 37.104personal services contracts. a a personal services', 23538:'contract is characterized by the employeremployee relationship it creates between the government and the contractor’spersonnel. the government is normally required', 23539:'to obtain its employees by directhire under competitive appointment or other procedures required by the civil service laws. obtaining personal', 23540:'services by contract, rather than by direct hire, circumvents those laws unless congress has specifically authorized acquisition of the services', 23541:'by contract. b agencies shall not award personal services contracts unless specifically authorized by statute e.g., 5 u.s.c. 3109 to', 23542:'do so. c 1anemployeremployeerelationshipunderaservicecontractoccurswhen,asaresultofithecontract’sterms or ii the manner of its administration during performance, contractor personnel are subject to the relatively', 23543:'continuous supervision and control of a government officer or employee. however, giving an order for a specific articleor service, with', 23544:'subpart 37.1 service contractsgeneral 37.107 the right to reject the finished product or result, is not the type of supervision', 23545:'or control that converts an individual who is an independent contractor such as a contractor employee into a government employee.', 23546:'2 each contract arrangement must be judged in the light of its own facts and circumstances, the key question always', 23547:'being: will the government exercise relatively continuous supervisionandcontrol over thecontractor personnel performing thecontract. thesporadic, unauthorized supervisionof only one of a', 23548:'largenumber of contractor employees might reasonably be considered not relevant, while relatively continuous government supervision of a substantial number of', 23549:'contractor employees would have to be taken strongly into account see d of this section. d the following descriptive elements', 23550:'should be used as a guide in assessing whether or not a proposed contract is personal in nature: 1 performance', 23551:'on site. 2 principal tools and equipment furnished by the government. 3 services are applied directly to the integral effortof', 23552:'agencies or an organizational subpart in furtheranceof assigned function or mission. 4 comparable services, meeting comparable needs, are performed in', 23553:'the same or similar agencies using civil service personnel. 5 the need for the type of service provided can reasonablybe', 23554:'expectedto last beyond1 year. 6 the inherent nature of theservice, or themanner in which it is provided, reasonablyrequiresdirectlyor indirectly, government', 23555:'direction or supervision of contractor employees in order to iadequately protect thegovernment’s interest; ii retain control of the function involved;', 23556:'or iii retain full personal responsibility for thefunction supported in adulyauthorized federal officer oremployee. e when specific statutory authority for', 23557:'a personal service contract is cited, obtain the review and opinion of legal counsel. f personal services contracts for the', 23558:'services of individual experts or consultants are limited by the classification act. in addition,the office of personnelmanagement has established requirements', 23559:'which apply inacquiring the personal services of experts or consultants in this manner e.g., benefits, taxes, conflicts of interest. therefore,the', 23560:'contracting officer shall effect necessarycoordination with thecognizant civilian personnel office. 37.105competition in service contracting. a unless otherwise provided by statute,', 23561:'contracts for services shall be awarded through sealed bidding whenever the conditions in 6.401a are met, except see 6.401b. b', 23562:'the provisions of statute and part 6 of this regulation requiring competition apply fully to service contracts. the method of', 23563:'contracting used to provide for competition may vary with the type of service being acquired and may not necessarily be', 23564:'limited to price competition. 37.106funding and term of service contracts. a when contracts for services are funded by annual appropriations,', 23565:'the term of contracts so funded shall not extend beyond the end of the fiscal year of the appropriation except', 23566:'when authorized by law see paragraph b of this section for certain service contracts, 32.7032 for contracts conditioned upon availability', 23567:'of funds, and 32.7033 for contracts crossing fiscal years. b the head ofan executive agency, except nasa, may enterinto a', 23568:'contract, exercise an option, or place an order under a contract for severable services for a period that begins in', 23569:'one fiscal year and ends in the next fiscal year if the period of the contract awarded, option exercised, or', 23570:'order placed does not exceed oneyear 10 u.s.c. 3133 and 41 u.s.c. 3902. funds made available for a fiscal year', 23571:'may be obligated for the total amount of an action enteredinto under thisauthority. c agencies with statutory multiyear authority shall', 23572:'consider the use of this authority to encourage and promote economical business operations when acquiring services. 37.107service contract labor standards.', 23573:'41 u.s.c. chapter 67, service contract labor standards, provides for minimum wages and fringe benefits as well as other conditions', 23574:'of work under certain types of service contracts. whether or not the service contract labor standards statute applies to a', 23575:'specific service contract will be determined by the definitions and exceptions given in the service contract labor standards statute, or', 23576:'implementing regulations. federal acquisition regulation 37.108 smallbusinesscertificate ofcompetency. in those service contracts for which the government requires the highest competence', 23577:'obtainable, as evidenced in a solicitation by a request for a technical/management proposal and a resultant technical evaluation and source', 23578:'selection, the small business certificate of competency procedures may not apply see subpart 19.6. 37.109 services of quasimilitary armedforces. contracts', 23579:'with pinkerton detective agenciesor similar organizations are prohibited by 5 u.s.c. 3108. this prohibition applies onlyto contracts with organizations that', 23580:'offer quasimilitaryarmed forces for hire, or with their employees, regardless of the contract’s character. an organization providing guardor protective services', 23581:'does not therebybecome a quasimilitary armed force, eventhough the guards are armedor the organization provides general investigative or detectiveservices. see', 23582:'57 comp. gen. 524. 37.110solicitation provisions and contractclauses. a thecontracting officer shall insert the provision at 52.2371, site visit,in solicitations', 23583:'for services to be performed on government installations, unless the solicitation is for construction. b the contractingofficer shall insertthe clause', 23584:'at 52.2372, protection of government buildings, equipment, and vegetation, in solicitations and contracts for servicesto beperformed on governmentinstallations, unless a', 23585:'construction contract is contemplated. c thecontracting officer may insert the clause at 52.2373, continuity of services, in solicitations and contracts', 23586:'for services, when 1 the services under the contract are considered vital to the government and must be continued without', 23587:'interruption and when, upon contractexpiration, asuccessor, either the government or anothercontractor, may continue them; and 2 the government anticipates difficulties', 23588:'during the transition from one contractor toanother or to the government. examples of instances where use of the clause may', 23589:'be appropriate are services in remote locations or services requiring personnel with special security clearances. d see 9.508 regarding the', 23590:'use of an appropriate provision and clause concerning the subject of conflictofinterest, which may at times be significant in solicitations', 23591:'and contracts for services. e thecontracting officer shall also insert in solicitations and contractsforservicesthe provisions and clauses prescribed elsewhere in', 23592:'the far, as appropriate for each acquisition, depending on the conditions that are applicable. 37.111extension of services. award of contractsforrecurringandcontinuingservice', 23593:'requirementsare often delayeddueto circumstances beyondthe control of contracting offices. examples of circumstancescausing such delays are bid protests and alleged mistakes', 23594:'in bid. in order to avoid negotiation of short extensions to existing contracts,the contracting officer mayinclude an optionclause see 17.208f', 23595:'in solicitations and contracts which will enable the government to require continued performance of any services within the limitsandat the', 23596:'rates specified in the contract. however, these rates may be adjusted only as a resultof revisions to prevailing labor rates', 23597:'provided by the secretaryof labor. the optionprovision may be exercised more than once, but the total extension of performance thereunder', 23598:'shall not exceed 6 months. 37.112government use of private sector temporaries. contracting officersmay enter into contracts with temporary help service', 23599:'firmsforthe brief or intermittent use of the skills of private sector temporaries. services furnished by temporary help firms shall not', 23600:'be regarded or treated as personal services. these services shall not be used in lieu of regular recruitment under civil', 23601:'service laws or to displace a federal employee. acquisition of theseservices shall comply with the authority, criteria, andconditions of5 cfr', 23602:'part 300, subparte, use of private sector temporaries, and agency procedures. 37.113severance payments toforeign nationals. 37.1131 waiver of costallowability limitations.', 23603:'a the head of the agency may waive the 31.2056g6 cost allowability limitations on severance payments to foreign nationals for', 23604:'contracts that 1 provide significant support services for i members of the armed forces stationed or deployed outside the united', 23605:'states, or subpart 37.1 service contractsgeneral 37.1152 ii employees of an executive agency posted outside the united states; and 2', 23606:'will be performedin whole or in partoutside the united states. b waiverscan be granted only before contract award. c waivers', 23607:'cannotbe grantedfor 1 military banking contracts, which are covered by 10 u.s.c. 3744d; or 2 severance payments made by a', 23608:'contractor to a foreign national employed by the contractor under a dod service contract in the republic of the philippines,', 23609:'if the discontinuation of the foreign national is the result of the termination of basing rights of the united states', 23610:'military in the republic of the philippines section1351b of public law102484, 10 u.s.c.1592, note. 37.1132 solicitation provision and contractclause. a', 23611:'use the provision at 52.2378, restriction on severance payments to foreign nationals, in all solicitations that meet the criteria in', 23612:'37.1131a, except for those excluded by 37.1131c. b when the head of an agency has granted a waiver pursuant to', 23613:'37.1131, use the clause at 52.2379,waiverof limitation on severance payments to foreign nationals. 37.114special acquisition requirements. contracts for services which', 23614:'require the contractor to provide advice, opinions, recommendations, ideas, reports, analyses, or other work products have thepotentialforinfluencingthe authority, accountability, and', 23615:'responsibilitiesof government officials. thesecontracts require special management attention to ensure thatthey do not result inperformance of inherently governmental functions bythe', 23616:'contractor and that government officials properly exercisetheir authority. agencies must ensure that a a sufficient number ofqualified government employees areassigned', 23617:'to oversee contractor activities, especially those that involve support of government policy or decision making. during performance of service contracts,', 23618:'the functions being performed shall not be changed or expanded to become inherently governmental. b a greater scrutiny and an', 23619:'appropriate enhanced degree of management oversight is exercised when contracting for functions that are not inherently governmental but closely support', 23620:'the performance of inherently governmental functions see 7.503c. c all contractor personnel attending meetings, answering government telephones, and working in', 23621:'other situations where their contractor status is not obvious to third parties are required to identify themselves as such to', 23622:'avoid creating an impression in the minds of members of the public or congress that theyare government officials, unless, in', 23623:'the judgment of the agency, no harm can come from failing to identifythemselves. they must also ensure that all documents', 23624:'or reports produced by contractors are suitably marked as contractor products or that contractor participation is appropriately disclosed. 37.115uncompensated overtime.', 23625:'37.1151 scope. the policies in this section are based on section 834 of public law101510 10 u.s.c. 4507. 37.1152 general', 23626:'policy. a use of uncompensated overtime is not encouraged. b when professional or technical services are acquired on the basis', 23627:'of the number of hours to be provided, rather than on the task to be performed, the solicitation shall require', 23628:'offerors toidentify uncompensated overtime hours and the uncompensated overtimerate for direct charge fair labor standards actexempt personnelincluded in their proposals', 23629:'and subcontractor proposals. this includes uncompensated overtime hours that are in indirect cost pools for personnel whose regular hours are', 23630:'normallycharged direct. c contracting officers mustensure that the useof uncompensatedovertime in contracts to acquire services onthe basis of the number', 23631:'of hours providedwill not degrade the level of technical expertise required to fulfill the government’s requirements see 15.305 for competitive', 23632:'negotiations and 15.4041d for cost realism analysis. when acquiring these services, contracting officers must conduct arisk assessment and evaluate, for', 23633:'award on that basis, any proposals received that reflect factors such as 1 unrealistically low labor rates or other costs', 23634:'that may result in quality or service shortfalls; and 2 unbalanced distribution of uncompensated overtime among skill levels and its', 23635:'use in key technical positions. 37.1153 federal acquisition regulation d whenever there is uncompensated overtime, the adjusted hourly rate including', 23636:'uncompensated overtime see definition at 37.101, rather than the hourly rate, shall be applied to all proposed hours, whether regular', 23637:'or overtime hours. 37.1153 solicitation provision. the contractingofficer shall insertthe provisionat 52.23710, identification of uncompensated overtime, in all solicitations valued', 23638:'above the simplified acquisition threshold, for professional or technical services to be acquired on the basis of the number of', 23639:'hours to be provided. subpart 37.2 advisory and assistance services 37.203 subpart 37.2 advisory and assistance services 37.200scope of subpart.', 23640:'this subpart prescribes policies and procedures for acquiring advisory and assistance services by contract. the subpart applies to contracts, whether', 23641:'made with individuals or organizations, thatinvolve either personal ornonpersonalservices. 37.201definition. covered personnel means 1 an officer or anindividual who is', 23642:'appointed in the civilservice by one ofthe following acting inan official capacity i the president; ii a member of congress;', 23643:'iii a member of the uniformed services; iv an individual who is an employee under 5 u.s.c. 2105; v the', 23644:'head of a governmentcontrolled corporation; or vi an adjutant general appointed by the secretary concerned under 32 u.s.c. 709c. 2', 23645:'a member of the armed services of the united states. 3 a person assigned to a federal agency who has', 23646:'been transferred to another position in the competitive service in anotheragency. 37.202exclusions. the following activities and programs are excluded or', 23647:'exempted from the definition of advisory or assistance services: a routine information technology services unless they are an integral part', 23648:'of a contract for the acquisition of advisory and assistance services. b architectural and engineering services as defined in 40', 23649:'u.s.c. 1102. c research on theoretical mathematics and basic research involving medical, biological, physical, social, psychological, or other phenomena. 37.203', 23650:'policy. a the acquisition of advisory and assistance services is a legitimate way to improve government services and operations. accordingly,', 23651:'advisory and assistance services may beused at all organizational levels to help managers achievemaximum effectiveness or economy in their operations.', 23652:'b subject to 37.205, agencies maycontract for advisory and assistance services, when essential tothe agency’s mission, to 1 obtain outside', 23653:'points of view to avoid too limited judgment on critical issues; 2 obtainadviceregarding developments in industry,university, or foundation research; 3', 23654:'obtain the opinions, special knowledge, or skills of noted experts; 4 enhance the understanding of, and develop alternative solutions to,', 23655:'complex issues; 5 support and improve the operation of organizations; or 6 ensure the moreefficient or effective operation of managerial', 23656:'or hardwaresystems. c advisory and assistance services shall not be 1 used in performing work ofa policy, decisionmaking, ormanagerial nature', 23657:'which isthe direct responsibility of agency officials; 2 used to bypass or undermine personnel ceilings, pay limitations, or competitive employment', 23658:'procedures; 3 contracted for on a preferential basis to former government employees; 4 used under any circumstances specifically to aid', 23659:'in influencing or enacting legislation; or 5 used to obtain professional or technical advice which is readily available within the', 23660:'agency or another federal agency. d limitation on payment for advisory and assistance services. contractors may not be paid for', 23661:'services to conduct evaluations or analyses of any aspect of a proposal submitted for an initial contract award unless 1', 23662:'neithercovered personnel from the requesting agency, nor from anotheragency, withadequate training and capabilities to perform the required proposal evaluation, are', 23663:'readily available and a written determination is made in accordance with 37.204; federal acquisition regulation 2 the contractor is a', 23664:'federallyfunded research and development center ffrdc as authorized in 41 u.s.c. 1709c and the work placed under the ffrdcs contract', 23665:'meets the criteria of 35.0173; or 3 suchfunctions are otherwise authorized bylaw. 37.204guidelines for determining availability of personnel. a theheadof', 23666:'an agency shall determine, for eachevaluation or analysis ofproposals, if sufficient personnel with the requisite training and capabilities are available', 23667:'within the agency to perform the evaluation or analysis of proposals submitted for the acquisition. b if, for a specificevaluation', 23668:'or analysis, such personnel are not available withinthe agency, the head of the agency shall 1 determine which federal agencies', 23669:'may have personnel with the required training and capabilities; and 2 consider the administrative cost and time associated with conducting', 23670:'the search, the dollar value of the procurement, other costs, such as travel costs involved in the use of such', 23671:'personnel, and the needs of the federal agencies to make management decisions on thebestuse ofavailable personnel in performing the agency’s', 23672:'mission. c if the supporting agency agrees to make the required personnel available, the agencies shall execute an agreement for', 23673:'thedetail of the supporting agency’s personnel to the requestingagency. d if the requestingagency, after reasonable attempts to obtain personnelwith the', 23674:'required training and capabilities, is unable to identify such personnel, the head of the agency may make the determination required', 23675:'by 37.203. e an agency may make a determination regarding the availability of covered personnel for a class of proposals', 23676:'for which evaluation and analysis would require expertise so unique or specialized that it is not reasonable to expect such', 23677:'personnel to be available. 37.205 contracting officer responsibilities. the contractingofficer shall ensure thatthe determination required in accordance with the guidelines', 23678:'at 37.204 has been made prior to issuing a solicitation. subpart 37.3 dismantling, demolition, or removal of improvements 37.304 subpart', 23679:'37.3 dismantling, demolition, or removal of improvements 37.300scope of subpart. this subpart prescribes procedures for contracting for dismantling or demolition', 23680:'of buildings, ground improvements and other real property structures and for the removal of such structures or portions of them', 23681:'hereafter referred to as dismantling, demolition, or removal of improvements. 37.301labor standards. contracts for dismantling, demolition, or removal of improvements', 23682:'are subject to either 41 u.s.c. chapter 67, service contract labor standards, or 40 u.s.c. chapter 31, subchapter iv, wage', 23683:'rate requirements construction. ifthe contract is solely for dismantling, demolition, or removal of improvements, the service contract labor standards statute', 23684:'applies unless further work which will result in the construction, alteration, or repair of a public building or public work', 23685:'at that location is contemplated. if such further construction work is intended,eventhough by separate contract, then the construction wage rate', 23686:'requirements statute applies to the contract for dismantling, demolition, or removal. 37.302 bonds orother security. when a contract is solely', 23687:'for dismantling, demolition, or removal of improvements,40 u.s.c. chapter 31, subchapter iii, bonds, see 28.102 does not apply. however, the', 23688:'contracting officer may requirethe contractor to furnish aperformance bond or other security see 28.103 in an amount that the contractingofficer', 23689:'considers adequate to a ensure completion of the work; b protect property to be retained by the government; c protect', 23690:'property to be provided as compensation to the contractor; and d protect the government against damageto adjoining property. 37.303payments. a', 23691:'the contract may provide that the 1 government pay the contractor for the dismantling or demolition of structures; or 2', 23692:'contractor pay the government for the right to salvage and remove the materials resulting from the dismantling or demolition operation.', 23693:'b the contractingofficer shall consider the usefulness tothe government of all salvageable property. any of the property that is more', 23694:'useful to the government than its value as salvage to the contractor should be expressly designated in thecontract for retention', 23695:'by the government. the contracting officer shall determine the fair market value of any property not so designated, since the', 23696:'contractorwill get title to this property,andits value will thereforebe importantin determining what payment, if any, shall be made to the', 23697:'contractor and whether additional compensation will be made ifthe contract is terminated. 37.304contract clauses. a thecontracting officer shall insert the', 23698:'clause at 52.2374, payment by governmentto contractor, in solicitations and contracts solely for dismantling, demolition, or removal of improvements whenever', 23699:'the contractingofficer determines that the government shall make payment to the contractor in addition to any title to property that', 23700:'the contractor may receive under thecontract. ifthe contracting officerdeterminesthat all material resultingfrom the dismantling or demolition workis to be retained', 23701:'by the government, use the basic clause with its alternatei. b the contractingofficer shall insertthe clause at 52.2375, payment by', 23702:'contractor to government in solicitations and contracts for dismantling, demolition, or removal of improvements whenever the contractor is to receive', 23703:'title to dismantled or demolished property and anet amount of compensation isdueto the government,exceptif the contracting officer determines that it', 23704:'would be advantageous to the government for the contractor to pay in increments and the government to transfer title to', 23705:'the contractor for increments of property only upon receipt of those payments. c thecontracting officer shall insert the clause at', 23706:'52.2376, incremental payment by contractor to government, in solicitations and contracts for dismantling, demolition, or removal of improvements if l', 23707:'the contractor is to receive title to dismantled or demolished property and a net amount of compensationis due the government,', 23708:'and 2 the contracting officer determines that it would be advantageous to the government for the contractor to pay in', 23709:'increments, and for the government to transfer title to the contractor for increments of property only upon receipt of those', 23710:'payments. this determination may be appropriate, for example, if it encourages greater competition or participation of small business concerns. this', 23711:'page intentionally left blank. 37.32 subpart 37.4 nonpersonal health care services 37.403 subpart 37.4 nonpersonal health care services 37.400scope of', 23712:'subpart. this subpart prescribes policies and procedures for obtaining health care services of physicians, dentists and other health care providers', 23713:'by nonpersonal services contracts, as defined in 37.101. 37.401 policy. agencies may enter into nonpersonal health care services contracts with', 23714:'physicians, dentists and other health care providers under authority of 10 u.s.c. chapter 221 and 41 u.s.c. chapter 33, planning', 23715:'and solicitation. each contract shall a state that the contract is a nonpersonal health care services contract, as defined in', 23716:'37.101, under which the contractor is an independent contractor; b state that the government may evaluate the quality of professional', 23717:'and administrative services provided, but retains no control over the medical, professional aspects of services rendered e.g., professional judgments, diagnosis', 23718:'for specific medical treatment; c require that the contractor indemnify thegovernment for any liability producing act or omissionby the contractor,', 23719:'its employees and agents occurring during contract performance; d require that the contractor maintain medical liability insurance, in a coverage', 23720:'amount acceptable to the contracting officer, which is not less thanthe amountnormally prevailing within the local community for themedical specialty', 23721:'concerned; and e state that the contractor is required to ensure that its subcontracts for provisions of health care services,', 23722:'contain the requirements of the clause at 52.2377, including the maintenance of medical liability insurance. 37.402 contracting officer responsibilities. contracting', 23723:'officersshallobtain evidence of insurability concerning medical liability insurancefrom the apparent successful offeror prior to contract award and shall obtain evidence', 23724:'of insurance demonstrating the required coverage prior to commencement of performance. 37.403contract clause. the contractingofficer shall insertthe clause at 52.2377,', 23725:'indemnification and medical liability insurance, in solicitations and contracts for nonpersonal healthcare services. the contracting officer may include the clausein', 23726:'bilateral purchase orders for nonpersonal health care services awarded under the procedures in part 13. this page intentionally left blank.', 23727:'37.42 subpart 37.5 management oversight of service contracts 37.504 subpart 37.5 management oversight of service contracts 37.500scope of subpart. this', 23728:'subpart establishes responsibilities for implementing office offederal procurement policy ofpp policy letter931, management oversight of service contracting. 37.501definition. best practices,', 23729:'as used in this subpart, means techniques that agencies may use to help detect problems in the acquisition, management, and', 23730:'administration of service contracts. best practices are practical techniques gained from experience that agencies may use to improve the procurement', 23731:'process. 37.502exclusions. a this subpart does not apply to services that are 1 obtained through personnel appointments and advisory committees;', 23732:'2 obtained through personal service contracts authorized by statute; 3 for construction as defined in 2.101; or 4 obtained through', 23733:'interagency agreements where the work is being performed by inhouse federal employees. b services obtained under contracts below the simplified', 23734:'acquisition threshold and services incidental to supply contracts also are excluded fromthe requirements of this subpart. however, good management practices', 23735:'and contract administration techniques should be used regardless of the contracting method. 37.503 agencyheadresponsibilities. the agency head or designee should', 23736:'ensure that a requirements for services are clearly defined and appropriate performance standards are developed so that the agency’s requirements', 23737:'can be understood bypotentialofferorsand that performance in accordance with contract terms and conditions will meetthe agency’s requirements; b service contracts', 23738:'are awarded and administered in a manner that will provide the customer its supplies and services within budget and in', 23739:'a timely manner; c specific procedures are in place before contracting for services to ensure that inherently governmental functions are', 23740:'performed by government personnel; and d strategies aredevelopedandnecessary staff training is initiated to ensureeffective implementation of the policies in 37.102.', 23741:'37.504 contracting officials’ responsibilities. contracting officials should ensure that bestpractices techniques are used when contracting for services and in contract', 23742:'management and administration see ofpp policy letter931. this page intentionally left blank. 37.52 subpart 37.6 performancebased acquisition 37.604 subpart 37.6', 23743:'performancebased acquisition 37.600scope of subpart. this subpart prescribes policies and procedures for acquiring services using performancebased acquisition methods. 37.601general. a', 23744:'solicitations may use either a performance work statement or a statement of objectives see 37.602. b performancebased contracts for services', 23745:'shall include 1 a performance work statement pws; 2 measurable performance standards i.e., in termsof quality, timeliness, quantity,etc. and the', 23746:'method of assessing contractor performance against performance standards; and 3 performance incentives where appropriate. when used, the performance incentives shall', 23747:'correspond to the performance standards set forth in the contract see 16.4022. 37.602performance work statement. a a performance work statement', 23748:'pws may be prepared by the government or result from a statement of objectives soo prepared by the government where', 23749:'the offeror proposes the pws. b agencies shall, to the maximum extent practicable 1 describe the work in terms of', 23750:'the required results rather than either how the work is to be accomplished or the number of hours to be', 23751:'provided see 11.002a2 and 11.101; 2 enable assessment of work performance against measurable performance standards; 3 rely on the use', 23752:'of measurable performance standards and financial incentives in a competitive environment to encourage competitors to develop and institute innovative and', 23753:'costeffective methods ofperforming thework. c offerors use the soo to develop the pws; however, the soo does not become part', 23754:'of the contract. the soo shall, at a minimum, include 1 purpose; 2 scope or mission; 3 period and place', 23755:'of performance; 4 background; 5 performance objectives, i.e., required results; and 6 any operating constraints. 37.603performance standards. a performance standards', 23756:'establish the performance level required by the government to meet the contract requirements. the standards shall be measurable and structured', 23757:'to permit an assessmentof the contractor’s performance. b when offerors propose performance standards in response toa soo, agencies shall evaluate', 23758:'theproposed standards to determine if they meet agency needs. 37.604quality assurance surveillance plans. requirements for quality assurance and quality assurance', 23759:'surveillance plans are in subpart 46.4. the government may eitherprepare the quality assurance surveillance plan or require the offerors to', 23760:'submit a proposed quality assurance surveillance plan for the government’s consideration in development of the government’splan. this page intentionally left', 23761:'blank. 37.62 part 38 federal supply schedule contracting sec. 38.000 38.101 scope of part. subpart 38.1 federal supply schedule program', 23762:'general. subpart 38.2 establishing and administering federal supply schedules 38.201 coordination requirements. this page intentionally left blank. subpart 38.1 federal', 23763:'supply schedule program 38.101 38.000scope of part. this part prescribes policies and procedures for contracting for supplies and services under', 23764:'the federal supply schedule program, which is directed and managed by the general services administration see subpart 8.4, federal supply', 23765:'schedules, for additional information. gsa may delegate certain responsibilities to other agencies e.g., gsa has delegated authority to thedepartment ofveterans', 23766:'affairs va to procure medical supplies under the va federal supply schedules program. the vafederal supply schedules program is covered', 23767:'by this subpart. additionally, the department of defense manages a similar system of schedulecontracting for military items; however, the departmentof', 23768:'defense systems are nota partof the federal supply schedule program. subpart 38.1 federal supply schedule program 38.101general. a the federal', 23769:'supply schedule program, pursuant to 41 u.s.c. 1523, provides federal agencies with a simplified process of acquiring commercial supplies and', 23770:'commercial services in varying quantities while obtaining volume discounts. indefinitedelivery contracts are awarded using competitive procedures to firms. the firms', 23771:'provide supplies and services at stated prices for given periods of time, for delivery within a stated geographic area such', 23772:'as the 48 contiguous states, thedistrict of columbia, alaska, hawaii, and overseas. the schedule contracting officeissues federal supplyschedule publications that', 23773:'contain a general overview of the federal supply schedule fss program and address pertinent topics. b each schedule identifies agencies', 23774:'that are required to use the contractsas primary sources of supply. c federal agencies not identified in the schedules as', 23775:'mandatory users may issue orders under the schedules. contractors are encouraged to accept the orders. d although gsa awards most', 23776:'federal supply schedule contracts, it may authorize other agencies to award schedule contracts and publishschedules. for example, thedepartment ofveterans affairs', 23777:'awards schedule contracts for certain medical and nonperishable subsistence items. e when establishingfederal supply schedules, gsa, or an agency delegated', 23778:'that authority, is responsible for complying with all applicable statutory and regulatory requirements e.g., parts 5, 6, and 19. the', 23779:'requirements of parts 5, 6, and 19 apply at the acquisition planningstage prior to issuingthe schedule solicitation and, generally, do', 23780:'not apply toordersand bpas placed under resulting schedulecontracts exceptsee 8.404 and 8.4055. this page intentionally left blank. 38.12 subpart 38.2', 23781:'establishing and administering federal supply schedules 38.201 subpart 38.2 establishing and administering federal supply schedules 38.201 coordinationrequirements. a subject to', 23782:'interagencyagreements, contracting officers havingresponsibilityforawarding federal supplyschedule contracts shall coordinateandobtainapproval of the general servicesadministration’s federal supply service fss before 1 establishing', 23783:'new schedules; 2 discontinuing existing schedules; 3 changing the scope of agency or geographical coverage of existing schedules; or 4', 23784:'adding or deleting special item numbers, national stock numbers, or revising their description. b requests should be forwarded to the:', 23785:'general services administration federalsupply service office of acquisition fcwashington,dc20406. this page intentionally left blank. 38.22 fac 202501 november 12, 2024', 23786:'part 39 acquisition of information technology sec. 39.000 scope of part. subpart 39.2 information and 39.001 applicability. communication technology 39.002', 23787:'definitions. 39.201 scope of subpart. 39.202 definition. subpart 39.1 general 39.203 applicability. 39.101 policy. 39.204 exceptions. 39.102 management of risk.', 23788:'39.205 exemptions. 39.103 modular contracting. 39.104 information technology services. 39.105 privacy. 39.106 contract clause. this page intentionally left blank. subpart', 23789:'39.1 general 39.101 39.000scope of part. this part prescribes acquisition policies and procedures for use in acquiring— a information technology,', 23790:'includingfinancialmanagementsystems, consistent withother parts of this regulation,omb circular no.a127, financial management systems and omb circular no.a130, management of federal information', 23791:'resources. b information and communication technology see 2.101. 39.001 applicability. this part applies to the acquisition of— a information technology', 23792:'by or for the use of agencies except for acquisitions of information technology for national security systems. however, acquisitions of', 23793:'information technology for national security systemsshallbe conducted in accordance with 40 u.s.c. 11302 with regard to requirements for performance and', 23794:'resultsbased management; the role of the agency chief information officer in acquisitions; and accountability. these requirements are addressed in omb', 23795:'circular no. a130; and b information and communication technology by or for the use of agencies or for the use', 23796:'of the public, unless an exception see 39.204 or an exemption see 39.205 applies. see 36 cfr 1194.1. 39.002definitions. as', 23797:'used in this part modular contracting means use of one or more contracts to acquire information technology systems in successive,', 23798:'interoperable increments. national security system means any telecommunications or information system operated by the united states government, the function, operation,', 23799:'or use of which 1 involves intelligence activities; 2 involves cryptologic activities related to national security; 3 involves command and', 23800:'control of military forces; 4 involves equipment that is an integral part of a weapon or weapons system; or 5', 23801:'is critical to the direct fulfillment of military or intelligence missions. this does not include a system that is to', 23802:'be used for routine administrative and business applications, such as payroll, finance, logistics, and personnel management applications. subpart 39.1 general', 23803:'39.101 policy. a 1inacquiringinformationtechnology,agenciesshallidentifytheirrequirementspursuantto iomb circulara130, includingconsideration of security of resources, protection of privacy, national security and emergency preparedness, accessibility', 23804:'for individuals with disabilities, and energy efficiency; ii the requirements for sustainable products and services as defined in 2.101 in', 23805:'accordance with subpart 23.1; iii policies toenablepowermanagement and other energyefficient or environmentally preferable features on all agency electronic products; and', 23806:'iv best management practicesforenergyefficient management of servers and federal data centers. 2 when developingan acquisition strategy, contracting officers should consider', 23807:'the rapidly changing nature of information technology through market research see part 10 and the application of technology refreshment techniques.', 23808:'b agencies must follow omb circular a127, financial management systems, when acquiring financial management systems. agencies may acquire only core', 23809:'financial management software certified by the joint financial management improvement program. c inacquiring information technology, agencies shall include the appropriate', 23810:'informationtechnology security policies and requirements, including use of common security configurations available from the national institute of standards and technology’swebsiteat', 23811:'http://checklists.nist.gov. agency contracting officersshouldconsult with the requiring official to ensure the appropriate standards are incorporated. d when acquiring information technology', 23812:'using internet protocol, agencies must include the appropriate internet protocol compliance requirements in accordance with 11.002g. fac 202501 november 12,', 23813:'2024 federal acquisition regulation e contracting officers shall not purchase any hardware, software,or services developed or provided by kasperskylab that', 23814:'the government will use on or after october 1, 2018. see 4.2002. f 1onorafteraugust13,2019,contractingofficersshallnotprocureorobtain,orextendorrenewacontractto procure or obtain, any equipment, system,', 23815:'or service that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as', 23816:'critical technology as part of any system on or after august 13, 2019, unless an exception applies or a waiver', 23817:'is granted. see subpart 4.21. 2 on or after august 13, 2020, agencies are prohibited from entering into a contract,', 23818:'or extending or renewing a contract, with an entity that uses any equipment, system, or service that uses covered telecommunications', 23819:'equipment or services as a substantial or essential component of any system, or as critical technology as part of any', 23820:'system, unless an exception applies or a waiver is granted see subpart 4.21. this prohibition applies to the use of', 23821:'covered telecommunications equipment or services, regardless of whether that use is in performance of work under a federal contract. g', 23822:'see the prohibition in 4.2202 on the presence or use of a covered application “tiktok”. h executive agencies are prohibited', 23823:'from procuring or obtaining, or extending or renewing a contract to procure or obtain, any covered article, or any products', 23824:'or services produced or provided by a source, including contractor use of covered articles or sources, if prohibited fromdoing so', 23825:'by an applicable fascsa orderissuedby the director ofnational intelligence, secretary of defense, or secretary of homeland security see 4.2303. i', 23826:'executive agencies must comply with the prohibitions on unmanned aircraft systems e.g., drones in accordance with 40.202. 39.102management of risk.', 23827:'a prior to entering into a contract for information technology, anagency should analyze risks, benefits, and costs. see part 7', 23828:'for additional information regarding requirements definition. reasonable risk taking is appropriate as long as risks arecontrolled and mitigated. contracting and', 23829:'program office officials arejointly responsible for assessing, monitoring and controlling risk when selecting projects for investment and during program implementation.', 23830:'b types of risk may include schedule risk, risk of technical obsolescence, cost risk, riskimplicit in a particular contract type,', 23831:'technical feasibility, dependenciesbetween a new project and other projects orsystems, the numberof simultaneous high risk projects to be monitored, funding', 23832:'availability,and program management risk. c appropriate techniques should be applied to manage and mitigate risk during the acquisition of information', 23833:'technology. techniques include, but arenot limited to: prudent project management; use of modular contracting; thorough acquisition planning tied tobudget planning', 23834:'bythe program, financeand contracting offices; continuous collection and evaluation of riskbased assessment data; prototyping prior to implementation; post implementation reviews', 23835:'to determine actual project cost, benefits and returns; and focusing on risks and returns using quantifiable measures. 39.103modular contracting. a', 23836:'this section implements 41 u.s.c. 2308. modular contracting is intended to reduce program risk and to incentivize contractor performance whilemeetingthe', 23837:'government’s need for timely access to rapidly changing technology. consistent with the agency’sinformationtechnology architecture, agencies should, to the maximum extentpracticable,', 23838:'use modular contracting to acquire major systems see 2.101 of information technology. agencies may also use modular contracting to acquire', 23839:'nonmajorsystems of information technology. b when using modular contracting, an acquisition of a system of information technology may be divided', 23840:'into several smaller acquisition increments that 1 are easier to manage individually than would be possible in one comprehensive acquisition;', 23841:'2 address complex information technology objectives incrementally in order to enhance the likelihood of achieving workable systems or solutions for', 23842:'attainment of those objectives; 3 provide for delivery, implementation, and testing of workable systems orsolutions in discrete increments, each of', 23843:'which comprises a system or solution that is not dependent on any subsequent increment in order to perform its principal', 23844:'functions; 4 provide an opportunity for subsequent increments to take advantage of any evolution in technology or needs that occur', 23845:'during implementation and use of the earlier increments; and 5 reduce risk of potential adverse consequences on the overall project', 23846:'by isolating and avoiding customdesigned components of the system. c the characteristics of an increment may vary depending upon the', 23847:'type of information technology being acquired and the nature of the system being developed. the following factors may be considered:', 23848:'subpart 39.1 general 39.106 1 to promote compatibility, theinformationtechnology acquired through modular contracting for eachincrement should comply with common or', 23849:'commercially acceptable information technology standards when available and appropriate, and shall conform to the agency’s master information technology architecture. 2', 23850:'the performance requirements of each increment should be consistent with the performance requirements of the completed, overall system within which', 23851:'the information technology will function and should address interface requirements with succeeding increments. d for each increment, contractingofficers shall choose', 23852:'an appropriatecontracting technique that facilitates the acquisition of subsequent increments. pursuant to parts 16 and 17ofthefederalacquisitionregulation,contractingofficers shall select the contract', 23853:'type and method appropriate to the circumstances e.g., indefinite delivery, indefinite quantity contracts, single contract with options, successive contracts, multiple', 23854:'awards, task order contracts. contracts shall be structured to ensure that the government is not required to procure additional increments.', 23855:'e to avoid obsolescence,a modular contractforinformation technology should, to the maximumextent practicable, be awarded within 180 days after the date', 23856:'on which the solicitation is issued. if award cannot be made within 180 days, agencies should consider cancellation of the', 23857:'solicitation in accordance with 14.209 or 15.206e. to the maximumextent practicable, deliveries under the contract should be scheduled to occur', 23858:'within 18 months after issuance of the solicitation. 39.104information technology services. when acquiring information technology services, solicitations must not describe', 23859:'any minimum experience or educational requirement for proposed contractorpersonnel unless the contracting officer determines that the needsof the agency a', 23860:'cannot be met without that requirement; or b require the use of other than a performancebased acquisition see subpart 37.6.', 23861:'39.105 privacy. agencies shall ensure that contracts for information technology address protection of privacy in accordance with the privacy act', 23862:'5 u.s.c. 552a and part 24. in addition, each agency shall ensure that contracts for the design, development, or operation', 23863:'of a system of records using commercial information technology services or information technology support services include the following: a agency', 23864:'rules of conductthat thecontractor and the contractor’s employees shall berequired to follow. b a list of the anticipated threats and', 23865:'hazards that the contractor must guard against. c a description of the safeguards that the contractor must specifically provide. d', 23866:'requirements for a program of government inspection during performance of the contract that will ensure the continued efficacyandefficiencyof safeguards and', 23867:'the discovery and countering of new threats andhazards. 39.106contract clause. the contractingofficer shall inserta clause substantiallythe same as theclause at', 23868:'52.2391, privacy or security safeguards, in solicitations and contracts for informationtechnology which require security of information technology, and/ or are', 23869:'for the design, development, or operation of a system of records using commercial information technology services or support services. this', 23870:'page intentionally left blank. 39.14 subpart 39.2 information and communication technology 39.204 subpart 39.2 information and communication technology 39.201scope of', 23871:'subpart. a this subpart implements section 508 of the rehabilitation act of 1973 29 u.s.c. 794d, and the architectural and', 23872:'transportation barriers compliance boards u.s. access board information and communication technology ict accessibility standards at 36cfr 1194.1. b further information', 23873:'on section 508 is available via the internet at http://www.section508.gov. c when acquiring ict, agencies must ensure that— 1 federal', 23874:'employees with disabilities have access to and use of information and data that is comparable to the access and use', 23875:'by federal employees who are not individuals with disabilities; and 2 members of the public with disabilities seeking information or', 23876:'services from an agency have access to and use of information and data that is comparable to the access to', 23877:'and use of information and data by members of the public who are not individuals with disabilities. 39.202definition. undue burden,', 23878:'as used in this subpart, means a significantdifficulty or expense. 39.203 applicability. a general. unless an exception at 39.204 or', 23879:'an exemption at 39.205 applies, acquisitions for ict supplies and services shall meet the applicable ict accessibility standards at 36', 23880:'cfr 1194.1. b indefinitequantity contracts. confirmation of an exception or a determination of an exemption is not required prior to', 23881:'award of an indefinitequantity contract, except for requirements that are to be satisfied by initial award. the contract must identify', 23882:'which supplies and services the contractor indicates as compliant and show where full details of compliance can be found e.g.,', 23883:'vendors or other exact website location. c task order or delivery order. at the time of issuance of a task', 23884:'order or delivery order under an indefinitequantity contract, the requiring and ordering activities shall ensure compliance with the ict accessibility', 23885:'standards and document an exceptionor exemption if applicable. anytaskorder or delivery order, or portion thereof, issued for a noncompliantict item', 23886:'shall besupported by theappropriate exception or exemption documented by the requiring activity. d commercial products and commercial services. when acquiring', 23887:'commercial products and commercial services, an agency must comply with those ict accessibility standards that can be met with supplies', 23888:'or services that are available in the commercial marketplace and that best address the agencys needs, but see 39.205a3. e', 23889:'legacy ict. any component or portion of existing ict i.e., ict that was procured, maintained, or used on or before', 23890:'january 18, 2018 is not required to comply with the current ict accessibility standards if it— 1 complies with an', 23891:'earlier standard issued pursuant to section 508 of the rehabilitation act of 1973 29 u.s.c. 794d, which is set forth', 23892:'in appendix d to 36cfr 1194.1; and 2 has not been altered i.e., a change that affects interoperability, the user', 23893:'interface, or access to information or data after january 18, 2018. f alterations of legacy ict. when altering any component', 23894:'or portion of existingict, after january 18, 2018,the component or portion must be modified to conform to the current ict', 23895:'accessibility standards in 36cfr 1194.1. 39.204exceptions. a the requirements in 39.203 do not apply to acquisitions for— 1 national security', 23896:'systems. ict operated by agencies as part of a national security system, as defined by 40 u.s.c 11103a; 2 incidental', 23897:'contract items. ict acquired by a contractor incidental to a contract, i.e., for inhouse use by the contractor to perform', 23898:'the contract; or 3 maintenance or monitoring spaces. the portions of ict that are operable parts i.e., hardwarebased user controls', 23899:'for activating, deactivating, or adjusting ict or status indicators, and that are located in spaces frequented only by service personnel', 23900:'for maintenance, repair, oroccasionalmonitoringof equipment. b the contractingofficer shall receive,as apart of therequirements documentation, written confirmation fromthe requiring activity that', 23901:'an exception, in accordance with paragraph a1, 2, or 3 of this section, applies to the ict supply or service', 23902:'see 7.105b5iv. this documentation shall be maintained in the contract file. federal acquisition regulation 39.205exemptions. a allowable exemptions. an agency', 23903:'may grant an exemption for the following: 1 undue burden. when an agency determines the acquisition of ict conforming with', 23904:'all the applicable ict accessibility standardswouldimpose an undue burden on theagency, compliance with the ict accessibility standards is only required', 23905:'to the extent that it would not impose an undue burden. in determining whether conformance to one or more ict', 23906:'accessibility standards would impose an undue burden, an agency shall consider the extent to which conformance would impose significantdifficulty or', 23907:'expense considering the agency resourcesavailable to the program or component for which the ict supply or service is being procured.', 23908:'2 fundamental alteration. when an agency determines that acquisition of ict that conforms with all applicable ict accessibility standards wouldresult', 23909:'in afundamentalalterationin thenature of the ict, such acquisition is required to conform only tothe extent that conformance willnot resultin a', 23910:'fundamental alteration in the nature of the ict. 3 nonavailability of conforming commercial products and commercial services. where there are', 23911:'no commercial products and commercial services that fully conform to the ict accessibility standards, the agency shall procure the supplies', 23912:'or service available in the commercial marketplace that best meets the ict accessibility standards consistent with the agencys needs. b', 23913:'alternative means of access.an agency shall provide individuals with disabilities access to and use of information and data by an', 23914:'alternative means to meet the identified needs when an exemption in paragraphs a1, 2, or 3 of this section applies.', 23915:'c documentation. when anexemption applies, the contracting officer shall obtain, as part ofthe requirements documentation, a written determination from the', 23916:'requiring activity explaining the basis for the exemption in paragraphs a 1, 2 or 3 of this section. this documentation', 23917:'shall be maintained in the contract file. 1 undue burden. a determination of undue burden shall address why and to', 23918:'what extent compliance with applicable ict accessibility standards constitutes an undue burden. 2 fundamental alteration. a determination of fundamental alteration', 23919:'shall address the extent to which compliance with the applicable ict accessibility standardswouldresult in a fundamentalalterationin the natureof the ict.', 23920:'3 nonavailability of conforming commercial products and commercial services. a determination of commercial products and commercial services nonavailability shall include—', 23921:'i a description of the market research performed; ii a listing of the requirements that cannot be met; and iii', 23922:'the rationale for determining that the ict to be procured best meets the ict accessibility standards in 36 cfr 1194.1,', 23923:'consistent with the agencys needs. fac 202501 november 12, 2024 part 40 information security and supply chain security sec. 40.000', 23924:'scope of part. subpart 40.1 [reserved] subpart 40.2 security prohibitions and exclusions 40.200 scope of subpart. 40.201 definitions. 40.202 prohibition', 23925:'on the procurement and operation of unmanned aircraft systems manufactured or assembled by american security drone actcovered foreign entities. 40.2021', 23926:'scope. 40.2022 applicability. 40.2023 prohibition. 40.2024 exemptions. 40.2025 exceptions. 40.2026 waivers. 40.2027 procedures. 40.2028 contract clause. subpart 40.3 [reserved] this', 23927:'page intentionally left blank. subpart 40.1 [reserved] 40.000 40.000scope of part. a this part addresses broad security requirements that apply', 23928:'to acquisitions of products and services. it prescribes policies and procedures for managing information security and supply chain security when', 23929:'acquiring products and services that include, but are not limited to, information and communications technology ict. b see part 39forsecurityrelatedpoliciesandproceduresthatonlyapplytoict.', 23930:'c see parts 4, 24, and 46 for additional policies and procedures related to managing information security and supply chain', 23931:'security. d information and supply chain policies and procedures that are unrelated to security are covered in other parts of', 23932:'the far e.g., part 22forlaborandhumantraffickingrisksand part 23 for climaterelated risks. subpart 40.1 [reserved] this page intentionally left blank. 40.12 fac', 23933:'202501 november 12, 2024 subpart 40.2 security prohibitions and exclusions 40.2023 subpart 40.2 security prohibitions and exclusions 40.201 scope of', 23934:'subpart. a this subpart provides policies and procedures to implement security prohibitions and exclusions that restrict federal agencies from procuring,', 23935:'obtaining, or using certain products, services, or sources. b the following prohibitions and exclusions are implemented in this subpart: 1', 23936:'the american security drone act of 2023, of the national defense authorization act for fiscal year 2024 pub. l. 11831,', 23937:'41 u.s.c. 3901 note prec., which provides a prohibition on the procurement and operation of unmanned aircraft systems. 2 [reserved]', 23938:'c additional security prohibitions and exclusions are found at subparts 4.20 through 4.23 and 25.7. 40.201 definitions. as used in', 23939:'this subpart american security drone actcovered foreign entitymeans an entity included on a list developed and maintained by the federal', 23940:'acquisition security council fasc and published in the system for award management sam at https:// www.sam.gov section 1822 of pub.', 23941:'l. 11831, 41 u.s.c. 3901 note prec.. fascprohibited unmanned aircraft systemmeans an unmanned aircraft system manufactured or assembled by an', 23942:'american security drone actcovered foreign entity. unmanned aircraftmeans an aircraft that is operated without the possibility of direct human intervention', 23943:'from within or on the aircraft 49 u.s.c. 4480111. unmanned aircraft systemmeans an unmanned aircraft and associated elements including communication', 23944:'links and the components that control the unmanned aircraft that are required for the operator to operate safely and efficiently', 23945:'in the national airspace system 49 u.s.c. 4480112. 40.202 prohibition on the procurement and operation of unmanned aircraft systems manufactured', 23946:'or assembled by american security drone actcovered foreign entities. s. a section 40.202 prescribes policies and procedures regarding the procurement', 23947:'and operation of unmanned aircraft systems, which includes unmanned aircraft i.e., drones and associated elements. b the authorities in 40.202', 23948:'expire on december 22, 2028 section 1833 of pub. l. 11831, 41 u.s.c. 3901 note prec.. 40.2021 scope. a section', 23949:'40.202 prescribes policies and procedures regarding the procurement and operation of unmanned aircraft systems, which includes unmanned aircraft i.e., drones', 23950:'and associated elements. b the authorities in 40.202 expire on december 22, 2028 section 1833 of pub. l. 11831, 41', 23951:'u.s.c. 3901 note prec.. 40.2022 applicability. section 40.202 applies to all acquisitions, including contracts at or below the micropurchase threshold', 23952:'and to contracts for commercial products or for commercial services. 40.2023 prohibition. unless an exemption, exception, or waiver applies see', 23953:'40.2024, 40.2025, and 40.2026, respectively, executive agencies are prohibited from a procuring a fascprohibited unmanned aircraft system section 1823 and', 23954:'1826 of pub. l. 11831, 41 u.s.c. 3901 note prec.. the prohibition includes extending or renewing a contract e.g., exercising', 23955:'an option; b on or after december 22, 2025, procuring services for the operation of a fascprohibited unmanned aircraft system', 23956:'section 1824 of pub. l. 11831, 41 u.s.c. 3901 note prec.. the prohibition includes extending or renewing a contract e.g.,', 23957:'exercising an option; and c on or after december 22, 2025, using federal funds for the procurement or operation of', 23958:'a fascprohibited unmanned aircraft system section 1825 of pub. l. 11831, 41 u.s.c. 3901 note prec.. 40.21 fac 202501 november', 23959:'12, 2024 40.2024 federal acquisition regulation 40.2024 exemptions. the prohibitions in 40.202 do not apply to the following see sections', 23960:'1823, 1824, and 1825 of pub. l. 11831, 41 u.s.c. 3901 note prec. : a department of homeland security, department', 23961:'of defense, department of state, and the department of justice exemptions. the secretary of homeland security, the secretary of defense,', 23962:'the secretary of state, and the attorney general are exempt from the prohibitions in 40.202 if the procurement or operation', 23963:'is required in the national interest of the united states and 1 is for the sole purposes of research, evaluation,', 23964:'training, testing, or analysis for electronic warfare, information warfare operations, cybersecurity, or development of unmanned aircraft system or counterunmanned aircraft', 23965:'system technology; 2 is for the sole purposes of conducting counterterrorism or counterintelligence activities, protective missions, or federal criminal or', 23966:'national security investigations, including forensic examinations, or for electronic warfare, information warfare operations, cybersecurity, or development of an unmanned aircraft', 23967:'system or counterunmanned aircraft system technology; or 3 is an unmanned aircraft system that, as procured or as modified after', 23968:'procurement but before operational use, can no longer transfer to, or download data from, an american security drone actcovered foreign', 23969:'entity and otherwise poses no national security cybersecurity risks as determined by the exempting official, as described in agency procedures.', 23970:'b department of transportation exemption. the secretary of transportation is exempt from the prohibitions in 40.202 if the operation or', 23971:'procurement is deemed to support the safe, secure, or efficient operation of the national air space system or maintenance of', 23972:'public safety. c national transportation safety board exemption. the national transportation safety board, in consultation with the secretary of homeland', 23973:'security, is exempt from the prohibitions, in 40.202 if the operation or procurement is necessary for the sole purpose of', 23974:'conducting safety investigations. d national oceanic and atmospheric administration noaa exemption. the administrator of noaa, in consultation with the secretary', 23975:'of homeland security, is exempt from the prohibitions of 40.202, if the operation or procurement for the purposes of meeting', 23976:'noaa’s science or management objectives or operational mission. 40.2025 exceptions. the prohibitions in this section do not apply to the', 23977:'following section 1832 of pub. l. 11831, 41 u.s.c. 3901 note prec. : a wildfire management operations and search and', 23978:'rescue operations exception. the prohibitions in section 40.202 do not apply to an appropriate federal agency to the extent that', 23979:'an authorized official at the agency, in consultation with the secretary of homeland security, determines that the procurement or operation', 23980:'is necessary for the purposes of supporting the full range of wildfire management operations or search and rescue operations. b', 23981:'intelligence activities exception. the prohibitions of 40.202 do not apply to any activity subject to the reporting requirements under title', 23982:'v of the national security act of 1947 50 u.s.c. 3091 et seq., any authorized intelligence activities of the united', 23983:'states, or any activity or procurement that supports an authorized intelligence activity. c tribal law enforcement or emergency service agency', 23984:'exception. the prohibitions in 40.202 do not apply to tribal law enforcement or tribal emergency service agencies to the extent', 23985:'that an authorized official at the agency, in consultation with the secretary of homeland security, determines that the procurement or', 23986:'operation is necessary for the purposes of supporting the full range of law enforcement operations or search and rescue operations', 23987:'on indian lands. 40.2026 waivers. the head of the agency may waive the prohibitions under 40.202 on a casebycase basis', 23988:'in accordance with agency procedures and based on the statutory waiver provisions sections 1823, 1824, and 1825 of pub. l.', 23989:'11831, 41 u.s.c. 3901 note prec.— a with the approval of the director of the office of management and budget,', 23990:'after consultation with the fasc; and b upon notification to 1 the committee on homeland security and governmental affairs of', 23991:'the senate; 2 the committee on oversight and accountability in the house of representatives; and 3 other appropriate congressional committees', 23992:'of jurisdiction. 40.22 fac 202501 november 12, 2024 subpart 40.2 security prohibitions and exclusions 40.2028 40.2027procedures. a documenting exemptions, exceptions,', 23993:'or waivers. the contracting officer shall document the file with any exemption, exception, orwaiver provided by theprogramoffice or requiring activity.', 23994:'additionally, the contracting officer shall work with theprogramoffice or requiring activity to ensure the presence and scoping of any such', 23995:'exemptions, exceptions, or waivers are identified in the solicitation and resultant contract. b assessment of unmanned aircraft systems. except where', 23996:'an exemption, exception, or waiver applies, the contracting officer shall work with the program office or requiring activity to review', 23997:'proposals to ensurethey are not proposing delivery of a fascprohibited unmanned aircraft system. on or after december 22, 2025, this', 23998:'assessment shall expand to include review for not onlyproposed delivery, but also operation, of a fascprohibited unmanned aircraft system. 40.2028', 23999:'contract clause. insert the clause at 52.2401, prohibition on unmanned aircraft systems manufactured or assembled by american security drone actcovered', 24000:'foreign entities, in all solicitations and contracts. this page intentionally left blank. 40.24 subpart 40.3 [reserved] subpart 40.3 [reserved] this', 24001:'page intentionally left blank. 40.32 part 41 acquisition of utility services sec. subpart 41.1 general 41.100 scope of part. 41.101', 24002:'definitions. 41.102 applicability. 41.103 statutory and delegated authority. subpart 41.2 acquiring utility services 41.201 policy. 41.202 procedures. 41.203 gsa assistance.', 24003:'41.204 gsa areawide contracts. 41.205 separate contracts. 41.206 interagency agreements. subpart 41.3 requests for assistance 41.301 requirements. 41.401 41.402 41.501', 24004:'41.601 41.701 41.702 subpart 41.4 administration monthly and annual review. rate changes and regulatory intervention. subpart 41.5 solicitation provision and', 24005:'contract clauses solicitation provision and contract clauses. subpart 41.6 forms utility services forms. subpart 41.7 formats formats for utility service', 24006:'specifications. formats for annualutility service review. this page intentionally left blank. subpart 41.1 general 41.102 subpart 41.1 general 41.100scope of', 24007:'part. this part prescribes policies, procedures, and contract format for the acquisition of utility services. see 41.102b for services that', 24008:'are excluded from this part. 41.101definitions. as used in this part, areawide contract means a contract entered into between the', 24009:'general services administration gsa and a utility service supplier to coverutility serviceneeds of federal agencies withinthe franchise territoryof the supplier.', 24010:'each areawide contract includes an authorization form for requesting service, connection, disconnection, or change in service. authorization means the document', 24011:'executed by the ordering agency and the utility supplier to order service under an areawide contract. connection charge means all', 24012:'nonrecurring costs, whether refundable or nonrefundable, to be paid by the government to the utility supplier for the required connecting', 24013:'facilities, which are installed, owned, operated, and maintained by the utility supplier see terminationliability. delegated agency means an agency that', 24014:'has received a written delegation of authority from gsa to contract for utility services for periods not exceeding tenyears see', 24015:'41.103b. federal power and water marketing agency means a government entity that produces, manages, transports, controls, and sells electrical and', 24016:'water supply service to customers. franchise territory means a geographical area that a utility supplier has a right to serve', 24017:'based upon a franchise, a certificate ofpublicconvenience and necessity, or other legalmeans. intervention means action by gsa or a delegated', 24018:'agency to formally participate in a utility regulatory proceeding on behalf of all federal executive agencies. multiple service locations means', 24019:'the various locations or deliverypoints inthe utility supplier’s service area to which it provides service under a single contract. rates', 24020:'may include rate schedules, riders, rules, terms and conditions of service,and othertariff and service charges, e.g., facilities use charges. separate', 24021:'contract means a utility services contract other than a gsa areawide contract, an authorization under an areawide contract, or an', 24022:'interagency agreement, to cover the acquisition of utility services. termination liability means a contingent government obligation to pay a utility', 24023:'supplier the unamortized portion of a connection charge and any other applicable nonrefundable service charge asdefined in the contract inthe', 24024:'event the government terminates the contract before the cost of connection facilities has been recovered by the utility supplier see', 24025:'connection charge. utility service means a servicesuch as furnishingelectricity, natural ormanufactured gas, water, sewerage, thermal energy, chilledwater,steam,hotwater,orhightemperaturehotwater. theapplicationof part 41', 24026:'to other services e.g., rubbish removal, snow removal may be appropriate when the acquisition is not subject to the 41', 24027:'u.s.c. chapter 67, service contract labor standards see 37.107. 41.102 applicability. a except as provided in paragraph b of this', 24028:'section, this part applies to the acquisition of utility services for the government, including connection charges and terminationliabilities. b this', 24029:'part does not apply to 1 utility services produced, distributed, or sold byanother federal agency. in those cases,agencies shall use', 24030:'interagency agreements see 41.206; 2 utility services obtained by purchase, exchange, or otherwise by a federal power or water marketing', 24031:'agency incident tothat agency’s marketing or distribution program; 3 cable television catv and telecommunications services; 4 acquisition of natural or', 24032:'manufactured gas when purchased as a commodity; 5 acquisition of utilities services in foreign countries; 6 acquisition of rights in', 24033:'real property, acquisition of public utilityfacilities,and onsite equipment needed for the facility’s own distribution system, or construction/maintenance ofgovernmentownedequipment and real', 24034:'property; or federal acquisition regulation 7 third party financed sharedsavings projects authorized by 42 u.s.c. 8287.however,agenciesmayutilize part 41 for any', 24035:'energy savings or purchased utility servicedirectlyresulting from implementationof athird partyfinanced shared savings project under 42 u.s.c.8287 for periods not to', 24036:'exceed 25 years. 41.103 statutory and delegated authority. a statutory authority. 1 the general services administration gsa is authorized by', 24037:'40 u.s.c. 501 to prescribe policies and methods governing the acquisition and supply of utility services for federal agencies. this', 24038:'authority includes related functions such as managing public utility services and representing federal agencies in proceedings before federal and state', 24039:'regulatory bodies. gsa is authorized by 40 u.s.c.501 to contract for utility services for periods not exceeding tenyears. 2 the', 24040:'department of defense dod is authorized by 10 u.s.c. 3201a and 40u.s.c. 113e3 to acquire utility services for military facilities.', 24041:'3 the department of energy doe is authorized by the departmentof energy organizationact42 u.s.c.7251, etseq.to acquire utility services. doe isauthorized', 24042:'by the atomic energy act of1954, asamended 42 u.s.c. 2204, to enter into new contracts or modify existing contracts for', 24043:'electric services for periods not exceeding 25 years for uranium enrichment installations. b delegated authority. gsa has delegated its authority', 24044:'to enter into utility service contracts for periods not exceeding tenyears to dod and doe,and for connection charges only to', 24045:'the department of veteran affairs. contracting pursuant tothis delegated authority shall be consistent with the requirements of this part. other', 24046:'agencies requiring utility service contracts for periods over oneyear, but not exceedingtenyears,may request a delegation of authority fromgsa at the', 24047:'address specified in 41.301a. inkeeping with its statutory authority, gsa will, as necessary, conduct reviews of delegated agencies’ acquisitions of', 24048:'utility services to ensure compliance with the terms of the delegation and applicable laws and regulations. c requests for delegations', 24049:'of contracting authorityfrom gsa shall include a certification from the acquiring agency’s senior procurement executive that the agency has 1', 24050:'an established acquisition program; 2 personnel technically qualified to deal with specialized utilities problems; and 3 the ability to accomplish', 24051:'its own preaward contract review. subpart 41.2 acquiring utility services 41.202 subpart 41.2 acquiring utility services 41.201 policy. a subject', 24052:'to paragraph d of this section, it is the policy of the federal government that agencies obtain required utility services', 24053:'from sources ofsupplywhich are most advantageous to the government in termsof economy, efficiency, reliability, or service. b except for acquisitions', 24054:'at or below the simplified acquisition threshold, agencies shall acquire utility services by a bilateral written contract, which must include', 24055:'the clauses required by 41.501, regardless of whether rates or terms and conditions of serviceare fixed or adjusted bya regulatory', 24056:'body. agencies may not use the utility supplier’s forms and clauses to avoid the inclusion of provisions and clauses required', 24057:'by 41.501 or by statute. see 41.202c for procedures to be used when the supplier refuses to execute a written', 24058:'contract. c specific operating and management details, suchas procedures for internal agencycontract assistance and review, delegations of authority, and approval', 24059:'thresholds, maybe prescribedby an individualagency subject to compliance with applicable statutes and regulations. d 1 section 8093 of the department', 24060:'of defense appropriations act of1988, pub.l.100202, provides that none of the funds appropriated by that act or any other act', 24061:'withrespect toany fiscal year by any department, agency, or instrumentality of the united states, may be used for the purchase', 24062:'of electricity by the government in any manner that is inconsistent with state law governing the providing of electric utility', 24063:'service, including state utility commission rulings and electric utility franchises or service territories established pursuant to state statute, state regulation,', 24064:'or stateapproved territorial agreements. 2 the act does not preclude i the head of a federal agency from entering into', 24065:'a contract pursuant to 42 u.s.c.8287 which pertains to the subject of shared energy savings including cogeneration; ii the secretary', 24066:'of a military department from entering into a contract pursuant to 10 u.s.c. 2922a which pertains to contracts for energy', 24067:'or fuel for militaryinstallationsincluding the provision and operation ofenergy production facilities; or iii the secretary of a military department from', 24068:'purchasing electricity from any provider when the utility or utilities having applicable stateapproved franchise or other service authorizations are found', 24069:'by the secretary to be unwilling or unable to meet unusual standards for service reliability that are necessary for purposes', 24070:'of national defense. 3 additionally, the head of a federal agency may iconsistent with applicable state law, enter into contracts', 24071:'for the purchase or transferof electricity to the agency by a nonutility, including a qualifying facility under the public utility', 24072:'regulatory policies act of1978; ii enter into an interagency agreement, pursuant to 41.206 and 17.5, with a federal power marketing', 24073:'agency or the tennessee valley authority for thetransferof electric power to the agency; and iii enter into a contract withan', 24074:'electric utility underthe authority or tariffs of thefederal energy regulatorycommission. e prior to acquiringelectric utility serviceson acompetitive basis, the contracting', 24075:'officer shall determine, withthe advice of legal counsel, by a market survey or any other appropriate means, e.g.,consultation with the', 24076:'state agency responsible for regulating public utilities, that such competition would not be inconsistent with state law governing the provision', 24077:'of electric utility service, including state utility commission rulings and electric utility franchises or service territories established pursuant to state', 24078:'statute, state regulation, or stateapproved territorial agreements. proposals from alternative electric suppliers shall provide a representation that service can be', 24079:'provided in a manner consistent with section 8093 of public law100202 see 41.201d. 41.202 procedures. apriortoexecutingautilityservicecontract,thecontractingofficershallcomplywith parts 6 and 7', 24080:'and subsections 41.201d and e of this part. in accordance with parts 6 and 7, agencies shall conduct market surveys', 24081:'and perform acquisition planning in orderto promoteandprovide for full and open competitionprovided that thecontracting officer determines that any resultant contract', 24082:'would not be inconsistent with applicable state law governing the provision of electric utility services. if competition for an entire', 24083:'utility service is not available, the market survey may be used to determine the availability of competitive sources for certain', 24084:'portions of the requirement. the scope of the term entire utility service includes the provision ofthe utility service capacity, energy,', 24085:'water, sewage, transportation, standby or backup service, transmission and/or distribution service,qualityassurance, system reliability,system operation and maintenance, metering, and billing. federal', 24086:'acquisition regulation b in performing a market survey see 7.101, the contracting officer shall consider,in addition to alternative competitive sources,', 24087:'use of the following: 1 gsa areawide contracts see 41.204. 2 separate contracts see 41.205. 3 interagency agreements see 41.206.', 24088:'c when a utility supplier refuses to execute a tendered contract as outlined in 41.201b, the agency shall obtain a', 24089:'written definite and final refusal signed by acorporate officer or other responsible official of thesupplierorif unobtainable, document any unwritten refusal', 24090:'and transmit this document, along with statements of the reasons for the refusal and the record of negotiations, to gsa', 24091:'at the address specified at 41.301a. unless urgent and compelling circumstances exist, the contracting officershallnotify gsa priorto acquiring utility services', 24092:'without executinga tendered contract. after such notification, the agency may proceed with the acquisition and pay for the utility service', 24093:'under the provisions of 31 u.s.c. 1501a8 1 by issuing a purchase order in accordance with 13.302; or 2 by', 24094:'ordering the necessary utility service and paying for it upon the presentation of an invoice, provided that a determination is', 24095:'approved by the head of the contracting activity that a written contract cannot be obtained and that the issuance of', 24096:'a purchase order is not feasible. d when obtaining servicewithout abilateral writtencontract, the contracting officer shall establish a utilityhistory file', 24097:'on eachacquisitionof utility service provided by a contractor. this utility history fileshallcontain, in addition to applicable documents in 4.803, the', 24098:'following information: 1 the unsigned, tendered contract and any related letter of transmittal. 2 the reasons stated by the utility', 24099:'supplier for not executing the tendered contract, the record of negotiations, and a written definite andfinal refusal by a corporate', 24100:'officer or otherresponsible official ofthe supplier or if unobtainable, documentation of unwritten refusal. 3 services to be furnished and the', 24101:'estimated annual cost. 4 historical recordof any applicable connection charges. 5 historical record of any applicable ongoing capital credits. 6', 24102:'a copy of the applicable rate schedule. e if the government obtainsutility service pursuant to paragraph c of this section,', 24103:'the contracting officershall, on an annual basis beginning from the date of final refusal, take action to execute a bilateral', 24104:'written contract. the contracting officer shall document the utilityhistory file with the efforts made andthe agencyshallnotify gsa, in writing, if', 24105:'theutility continues to refuse to execute a bilateral contract. 41.203gsa assistance. a gsa will, upon request, provide technical and acquisition', 24106:'assistance, or will delegate its contracting authority for thefurnishing of theservicesdescribed in this part for any federal agency, mixedownershipgovernmentcorporation, the', 24107:'district of columbia, the senate, the house of representatives, or the architect of the capitol and any activity under the', 24108:'architect’s direction. b agencies, seeking assistance shall provide upon request by gsa the information listed in 41.301. 41.204 gsa areawide', 24109:'contracts. a purpose. gsa enters into areawide contracts see 41.101 for use by federal agencies. areawide contracts provide a preestablished', 24110:'contractual vehicle for ordering utility services under the conditions in paragraph c1 of this section. b features. 1 areawide contracts', 24111:'generally provide for ordering utility service at rates approved and/or established by a regulatory bodyand published in a tariff orrate', 24112:'schedule. however,agencies are permitted to negotiateother rates and terms and conditions of service with the supplier see paragraph c of', 24113:'this section. rates other than those published may require theapproval of theregulatorybody. 2 areawidecontracts are negotiated withutility servicesuppliers for theprovision', 24114:'of service within the supplier’s franchise territory or service area. 3 due to the regulated nature of the utility industry,', 24115:'as well as statutory restrictions associated with the procurement of electricity see 41.201d, competition is typically not available within the', 24116:'entire geographical area covered by an areawide contract, although it may beavailable atspecific locations within theutility’s service area. when competing', 24117:'suppliers are available, theprovisions of paragraph c1 of this section apply. subpart 41.2 acquiring utility services 41.206 c procedures for', 24118:'obtaining service. 1 any federal agency having a requirement for utility services within an area covered by an areawide contract', 24119:'shall acquire services under that areawide contract unless iservice is available from more than one supplier, or ii the head', 24120:'of the contracting activity or designee otherwise determines that use of the areawide contract is not advantageous to the government.', 24121:'if service isavailablefrom more than onesupplier, serviceshallbe acquired using competitive acquisition procedures see 41.202a. the determination required by paragraph c1ii', 24122:'of this section shall be documented in the contract file with an information copy furnished to gsa at the address', 24123:'in 41.301a. 2 each areawide contract includes an authorization form for ordering service, connection, disconnection, or change in service. upon', 24124:'execution of an authorization by the contracting officer and utility supplier, the utilitysupplieris required to furnish services, without further negotiation,', 24125:'at the current, applicable published or unpublished rates, unless other rates, and/ or terms and conditions are separatelynegotiated by the', 24126:'federal agency withthe supplier. 3 the contractingofficer shall execute the authorization, and attach it to a standard form sf 26,', 24127:'award/contract, along with any modifications such as connection charges,special facilities, or service arrangements. thecontracting officer shall also attach anyspecific fiscal,', 24128:'operational, and administrative requirements of the agency, applicable rateschedules, technical information and detailed maps or drawings of delivery points, details', 24129:'on government ownership, maintenance, or repair of facilities, and other information deemed necessary to fully define the service conditions in', 24130:'the authorization/ contract. d list of areawide contracts.alist of current gsa areawidecontracts is available from the gsa office specified at', 24131:'41.301a. the list identifies the types of services and the geographic area served. a copy of the contract may also', 24132:'be obtainedfrom this office. e notification. agencies shall provide gsa at the address specified at 41.301a a copy of each', 24133:'sf 26 and executed authorization issued under an areawide contract within 30 days after execution. 41.205separate contracts. a in the', 24134:'absence of an areawide contract or interagency agreement see 41.206, agencies shall acquire utility services by separatecontract subject tothispart, and', 24135:'subject to agencycontracting authority. b if an agency enters into a separatecontract, the contracting officer shall document the contractfile with', 24136:'thefollowing information: 1 the number of available suppliers. 2 any special equipment, service reliability,or facility requirements and related costs. 3', 24137:'the utility supplier’s rates, connectioncharges, and terminationliability. 4 total estimated contract value including costs in paragraphsb2 and 3 of this', 24138:'subsection. 5 any technical or special contract terms required. 6 any unusual characteristics of services required. 7 the utility’swheelingor transportation', 24139:'policy for utilityservice. c if requesting gsa assistance with a separate contract, the requesting agency shall furnish the technical and', 24140:'acquisition data specified in 41.205b, 41.301, and such other data as gsa may deem necessary. d a contract exceeding a', 24141:'1year period, but not exceeding tenyears except pursuant to 41.103, may be justified, and is usually required, where any of', 24142:'the following circumstances exist: 1 the government will obtainlower rates, larger discounts, or morefavorable termsandconditions ofservice. 2 a proposed connection', 24143:'charge, termination liability, or any other facilities chargeto bepaid by the federal government will be reduced or eliminated; 3 the', 24144:'utility service supplier refuses to render the desired service except under a contract exceeding a 1year period. 41.206 interagency agreements.', 24145:'agencies shall use interagency agreements e.g., consolidated purchase, joint use, or crossservice agreements when acquiring utility service or facilities from', 24146:'other government agencies and shall comply with the policies and procedures at 17.5022, the economy act. this page intentionally left', 24147:'blank. 41.24 subpart 41.3 requests for assistance 41.301 subpart 41.3 requests for assistance 41.301 requirements. a requests for delegations of', 24148:'gsa contracting authority assistance with a proposed contract as provided in 41.203, and the submission of other information required by', 24149:'this part, shall be sent or submitted to the general services administration gsa region in whichservice is required. the names', 24150:'and locations of gsa regional offices are available from the: general services administration, energy division pma, 1800 f st, nw,', 24151:'washington, dc 20405; website: https:// www.gsa.gov/energy; email: energy@gsa.gov in its place. b requests for contracting assistance for utility services shall', 24152:'be sent not later than 120 days prior to the date new services are required to commence or an existing', 24153:'contract will expire. requests for assistance shall contain the following information: 1 a technical description or specification of the type,', 24154:'quantity, and quality of service required, and a delivery schedule. 2 a copy of any service proposal or proposed contract.', 24155:'3 copies of all current publishedor unpublished rates of theutility supplier. 4 identification ofanyunusualfactors affecting the acquisition. 5 identification ofall', 24156:'availablesources or methods ofsupply, ananalysisof the costeffectiveness of each, and a statement of the ability of each source to provide', 24157:'the required service, including the location and a description of each available supplier’s facilities at the nearest point of service,andthe', 24158:'cost of providing or obtainingnecessary backup and other ancillary services. c for new utility service requirements, the agency shall furnish', 24159:'the information in paragraph a of this section and the following as applicable: 1 the date initial service is required.', 24160:'2 for the first 12 months of full service, estimated maximum demand, monthly consumption, other pertinent information e.g., demand side', 24161:'management, load or energy management, peak shaving, on site generation, loadshaping, and annual cost of the service. 3 known or', 24162:'estimated time schedule for growth to ultimate requirements. 4 estimated ultimate maximum demand and ultimate monthly consumption. 5 a simple', 24163:'schematic diagram or line drawing showing the meter locations, the location of the new utility facilities to be constructed on', 24164:'federal property by the federal agency, andanyrequired new connectionfacilities on either side of the delivery point to be constructed by', 24165:'the utility supplier to provide the new services. 6 accounting andappropriation data to cover the required utility services and any', 24166:'connection charges required tobe paid by the agency receiving such utility services. 7 the following data concerning proposed facilitiesand related', 24167:'charges or costs: iproposed refundable ornonrefundable connection charge, termination liability, or other facilities chargeto be paid by the agency, togetherwith', 24168:'a description of the supplier’s proposed facilities and estimatedconstruction costs, and its rationale for thecharge, e.g., tariff provisions or policies.', 24169:'iiacopy ofthe acquiring agency’sestimateto make itsown connection tothe supplier’s facilities through use of its own resources or by separate contract.', 24170:'when feasible, the acquiring agency shall provide its estimates to construct and operate its own utility facilities in lieu of', 24171:'participating in a costsharing construction program with the proposed utility supplier. d for existing utility service, the agency shall furnish', 24172:'gsa the information in paragraph b of this section and the following, as applicable: 1 a copy of the most', 24173:'recent 12months’ service invoices. 2 a tabulation, by month, for the most recent 12 months, showing the actual utility demands,', 24174:'consumption, connection charges,fuel adjustment charges, and the averagemonthly cost per unit ofconsumption. 3 an estimate, by month, for the next', 24175:'12 months, showing the estimated maximum demands, monthly consumption, other pertinent information e.g., demand sidemanagement,load or energy management, peak shaving,on', 24176:'site generation, load shaping, and annual cost of the service. 4 accounting and appropriation data to cover the costs for', 24177:'the continuation of utility services. 5 a statement noting whether the transformer, or other system components, on either side ofthe', 24178:'delivery point are owned by the federal agency or the utility supplier,and if the meteringis on theprimary or secondarysideof the', 24179:'transformer. this page intentionally left blank. 41.32 subpart 41.4 administration 41.402 subpart 41.4 administration 41.401 monthly andannual review. agencies shall', 24180:'review utility service invoices on a monthly basis and all utility accounts with annual values exceeding the simplified acquisition threshold', 24181:'on an annual basis. annual reviews of accounts with annual values at or below the simplified acquisition threshold shall be', 24182:'conducted when deemed advantageous to the government. the purpose of the monthly review is to ensure the accuracy of utility', 24183:'service invoices. the purpose of the annual review is to ensure that the utility supplier is furnishing the services to', 24184:'each facility under the utility’smost economical,applicable rate and to examine competitive markets for more advantageous service offerings. the annual review', 24185:'shall be based upon the facility’s usage, conditions and characteristics of service at each individual delivery point for the most', 24186:'recent 12 months. if a more advantageous rate is appropriate, the federal agency shall requestthe supplier to make such rate', 24187:'change immediately. 41.402 rate changesand regulatoryintervention. a when a change is proposed to rates or terms and conditions of service', 24188:'to the government, the agency shall promptly determine whether the proposed change is reasonable, justified, and not discriminatory. b if', 24189:'a change is proposed to rates or terms and conditions of service that may be of interest to other federal', 24190:'agencies, and intervention before a regulatory body is considered justified, the matter shall be referred to gsa. the agency may', 24191:'request from gsa a delegation of authority for the agency to intervene on behalf of the consumer interests of the', 24192:'federal executive agencies see 41.301. c pursuant to 52.2417,change in rates or terms and conditions ofservice for regulated services, ifa', 24193:'regulatory body approves a rate change, any rate change shall be made a part of the contract by unilateral contract', 24194:'modification or otherwise documented in accordancewith agency procedures. the approved applicable rate shall beeffective on thedate determined by the regulatory', 24195:'body and resultingrates andcharges shall bepaid promptly to avoid late paymentprovisions. copies of themodification containing theapproved rate change shall be', 24196:'sent to the agency’s paying office or officeresponsiblefor verifying billed amounts see 41.401. d if the utility supplier is not', 24197:'regulated and the rates, terms, and conditions of service are subject to negotiation pursuant to the clause at 52.2418, change', 24198:'in rates or terms andconditions of serviceforunregulated services,anyrate change shall bemadea partof the contract by contract modification, with copiessent to', 24199:'theagency’s paying officeor office responsible for verifying billed amounts. this page intentionally left blank. 41.42 subpart 41.5 solicitation provision and', 24200:'contract clauses 41.501 subpart 41.5 solicitation provision and contract clauses 41.501 solicitation provision and contract clauses. a because the terms', 24201:'and conditions under which utility suppliers furnish service may vary from area to area, the differences may influence the terms', 24202:'and conditions appropriate to a particular utility’s contracting situation. to accommodate requirements that are peculiar to the contracting situation, this', 24203:'section prescribes provisions and clauses on a substantially the same as basis see 52.101which permits the contracting officer to prepare', 24204:'and utilize variations of the prescribed provision and clauses in accordance with agency procedures. b the contractingofficer shall insertin solicitations', 24205:'for utility servicesa provision substantially the same as the provision at 52.2411, electricservice territorycompliancerepresentation,when proposals fromalternativeelectric suppliersare sought. c thecontracting', 24206:'officer shall insert in solicitations and contracts for utility services clauses substantially the same as the clauses at 1 52.2412,', 24207:'order of precedenceutilities; 2 52.2413, scope and duration of contract; 3 52.2414, change in class of service; 4 52.2415, contractor’s', 24208:'facilities; and 5 52.2416, service provisions. d the contractingofficer shall insertclauses substantially the sameas the clauses listedbelow in solicitations and', 24209:'contracts under the prescribed conditions 1 52.2417, changein rates or terms and conditions of service for regulated services, when theutility', 24210:'services aresubject to a regulatory body. except for gsaareawide contracts, the contractingofficer shall insertin theblank space provided inthe clause the', 24211:'name of the contracting officer. for gsa areawide contracts, the contracting officer shall insert the following: gsa and each areawide', 24212:'customer with annual billings that exceed $250,000. 2 52.2418, changein rates or terms and conditions of service for unregulated services,', 24213:'when theutility services arenot subject to a regulatory body. 3 52.2419, connection charge,when arefundable connectioncharge is required to be paid', 24214:'bythe government to compensate the contractor for furnishing additional facilities necessary to supply service. use alternatei to the clause if', 24215:'a nonrefundable charge is to be paid. when conditionsrequire the incorporation of a nonrecurring, nonrefundable service charge ora termination liability,', 24216:'see paragraphs d6 and d4of this section. 4 52.24110, terminationliability, whenpayment is to be madeto thecontractor upon termination of servicein', 24217:'conjunction with or in lieu ofa connection chargeupon completion ofthe facilities. 5 52.24111, multiple service locations as defined in 41.101,', 24218:'when providing for possible alternative service locations, except under areawide contracts, is required. 6 52.24112, nonrefundable, nonrecurring service charge, when', 24219:'the governmentis required to pay anonrefundable, nonrecurring membershipfee, acharge for initiation of service,or acontribution for the cost of facilities construction.', 24220:'the government may provideforinclusion of such agreed amount or fee asa partof the connection charge, a part ofthe initial paymentforservices,', 24221:'oras periodic payments to fulfill the government’s obligation. 7 52.24113, capital credits, when the federal government is a member of', 24222:'a cooperative and is entitled to capital credits, consistent with the bylaws and governing documents of the cooperative. e dependingon', 24223:'the conditions thatare appropriate for each acquisition, thecontracting officer shall also insert in solicitations and contracts for utility services the', 24224:'provisions and clausesprescribed elsewhere in the far. this page intentionally left blank. 41.52 subpart 41.6 forms 41.601 subpart 41.6 forms', 24225:'41.601utility services forms. a if acquiring utility services under other than an areawide contract, a purchase order or an interagency', 24226:'agreement, the standard form sf 33, solicitation,offer and award; sf 26, award/contract;or sf 1447, solicitation/contract, shall be used. b the', 24227:'contractingofficer shall incorporate the applicable rate schedulein each contract, purchase order ormodification. this page intentionally left blank. 41.62 subpart 41.7', 24228:'formats 41.702 subpart 41.7 formats 41.701formats for utility service specifications. a the following specification formats for use in acquiring utility', 24229:'services are available from the address specified at 41.301aandmay be used and modified at theagency’s discretion: 1 electric service. 2', 24230:'waterservice. 3 steam service. 4 sewage service. 5 natural gas service. b contracting officersmay modify thespecificationformat referenced in paragraph a', 24231:'of this section and attach technical items, details on government ownership of equipment and real property and maintenance or repair', 24232:'obligations, maps or drawings of delivery points, and other information deemed necessary to fully define the service conditions. c the', 24233:'specifications and attachments see paragraph b of this section shall be inserted in section c of the utility service solicitation', 24234:'and contract. 41.702 formatsfor annual utilityservice review. a formats for use in conducting annual reviews of the following utility services', 24235:'are available from the address specified at 41.301a and maybe usedat the agency’s discretion: 1 electric service. 2 gas service.', 24236:'3 waterandsewage service. b contracting officersmay modify theannual utility service review formatas necessary to fully coverthe serviceused. this page intentionally', 24237:'left blank. 41.72 part 42 contract administration and audit services sec. 42.000 scope of part. 42.001 [reserved] 42.002 interagency agreements.', 24238:'42.003 cognizantfederalagency. subpart 42.1 contract audit services 42.101 contract audit responsibilities. 42.102 assignment of contract audit services. 42.103 contractauditservicesdirectory. subpart', 24239:'42.2 contract administration services 42.201 contract administration responsibilities. 42.202 assignment of contract administration. 42.203 contractadministrationservicesdirectory. subpart 42.3 contract administration office', 24240:'functions 42.301 general. 42.302 contract administration functions. subpart 42.4 correspondence and visits 42.401 contract correspondence. 42.402 visits to contractors’ facilities.', 24241:'42.403 evaluationofcontractadministrationoffices. subpart 42.5 postaward orientation 42.500 scope of subpart. 42.501 general. 42.502 selecting contracts for postaward orientation. 42.503 postaward', 24242:'conferences. 42.5031 postaward conference arrangements. 42.5032 postaward conference procedure. 42.5033 postaward conference report. 42.504 postaward letters. 42.505 postaward subcontractor conferences.', 24243:'subpart 42.6 corporate administrative contracting officer 42.601 general. 42.602 assignment and location. 42.603 responsibilities. subpart 42.7 indirectcost rates 42.700 scope', 24244:'of subpart. 42.701 definition. 42.702 purpose. 42.703 general. 42.7031 policy. 42.7032 certificate of indirect costs. 42.704 billing rates. 42.705 final', 24245:'indirect cost rates. 42.7051 contracting officer determination procedure. 42.7052 auditor determination procedure. 42.7053 educational institutions. 42.7054 state and local governments.', 24246:'42.7055 nonprofit organizations other than educational and state and local governments. 42.706 distribution of documents. 42.707 costsharing rates and limitations', 24247:'on indirect cost rates. 42.708 quickcloseout procedure. 42.709 penalties for unallowable costs. 42.7091 scope. 42.7092 general. 42.7093 responsibilities. 42.7094 assessingthepenalty.', 24248:'42.7095 computing interest. 42.7096 waiver of the penalty. 42.7097 contract clause. subpart 42.8 disallowance of costs 42.800 scope of subpart.', 24249:'42.801 notice of intent to disallow costs. 42.802 contract clause. 42.803 disallowing costs after incurrence. subpart 42.9 bankruptcy 42.900 scope', 24250:'of subpart. 42.901 general. 42.902 procedures. 42.903 solicitation provision and contract clause. subpart 42.10 [reserved] subpart42.11 production surveillance and reporting', 24251:'42.1101 general. 42.1102 applicability. 42.1103 policy. 42.1104 surveillance requirements. 42.1105 assignmentofcriticalitydesignator. 42.1106 reporting requirements. 42.1107 contract clause. subpart 42.12 novation', 24252:'and subpart 42.14 [reserved] changeofname agreements 42.1200 scope of subpart. subpart 42.15 contractor 42.1201 [reserved] performance information 42.1202 responsibility for', 24253:'executing agreements. 42.1500 scope of subpart. 42.1203 processing agreements. 42.1501 general. 42.1204 applicability of novation agreements. 42.1502 policy. 42.1205 agreement', 24254:'to recognize contractor’s change 42.1503 procedures. of name. 42.1504 contract clause. subpart 42.13 suspension of work, stopsubpart 42.16 small business', 24255:'work orders, and government delay of work contract administration 42.1301 general. 42.1601 general. 42.1302 suspension of work. 42.1303 stopwork orders.', 24256:'subpart 42.17 forward 42.1304 government delay of work. pricing rate agreements 42.1305 contract clauses. 42.1701 procedures. subpart 42.1 contract audit', 24257:'services 42.102 42.000scope of part. this part prescribes policies and procedures for assigning and performing contract administration and contract audit', 24258:'services. 42.001[reserved] 42.002 interagency agreements. a agencies shall avoid duplicate audits, reviews, inspections, and examinations of contractors or subcontractors, by', 24259:'more than one agency, through the use of interagency agreements. b subject to the fiscal regulations of the agencies and', 24260:'applicable interagency agreements, the requesting agency shall reimburse the servicing agency for rendered services in accordance with the economy act', 24261:'31 u.s.c. 1535. c when an interagency agreement is established, the agencies are encouraged to consider establishing procedures for the', 24262:'resolution of issues that may arise under the agreement. 42.003 cognizantfederal agency. a for contractorsotherthan educational institutions and nonprofit organizations,the', 24263:'cognizant federal agency normally will be the agency with the largest dollar amount of negotiated contracts, including options. foreducational institutions', 24264:'defined as institutions of higher education in the omb uniform guidance at 2 cfr part 200, subpart a, and 20', 24265:'u .s.c. 1001 and nonprofit organizations as definedin theomb uniform guidance at2 cfr part 200, the cognizant federal agency for', 24266:'indirect costs is established according to the omb uniform guidance at 2 cfr part 200, appendices iii andiv, respectively. b', 24267:'oncea federal agency assumes cognizance for acontractor, it should remain cognizant for atleast 5 years to ensure continuityandeaseof administration. if,at', 24268:'the end of the 5year period,another agency hasthe largest dollar amount of negotiated contracts, including options, the two agencies shall', 24269:'coordinate and determine which will assume cognizance. however, if circumstanceswarrant it and the affectedagencies agree, cognizance may transfer prior to', 24270:'the expiration ofthe 5year period. subpart 42.1 contract audit services 42.101 contract audit responsibilities. a the auditor is responsible for', 24271:'1 submitting information and advice tothe requesting activity,based on the auditor’s analysis of the contractor’s financial and accounting records or', 24272:'other related data as tothe acceptability of the contractor’sincurred and estimatedcosts; 2 reviewingthe financial and accounting aspects ofthe contractor’s cost', 24273:'controlsystems; and 3 performing other analyses and reviews that require access to the contractor’s financial and accounting records supporting proposed', 24274:'and incurred costs. b normally,forcontractors other than educational institutionsandnonprofit organizations, thedefense contractaudit agency dcaa isthe responsible government auditagency. however, there', 24275:'maybe instances where anagency other than dcaa desires cognizance of a particular contractor. inthose instances, the two agencies shall agree', 24276:'onthe most efficient and economical approach to meet contract audit requirements. for educational institutions defined as institutions of higher education', 24277:'in the omb uniform guidance at 2 cfr part 200, subpart a, and 20 u .s.c. 1001and nonprofitorganizations as defined', 24278:'in the omb uniform guidance at 2 cfr part 200, audit cognizance will be determined according to the provisions of', 24279:'the omb uniform guidance at 2 cfr part 200, subpart f. 42.102assignment of contract audit services. a as provided in', 24280:'agency procedures or interagency agreements, contracting officers may request auditservices directly from the responsible audit agency cited in the directory', 24281:'of federal contract audit offices. the audit request should include a suspense date andshouldidentify any information needed by thecontracting officer.', 24282:'b the responsible audit agency may decline requests for services on a casebycase basis, if resources of the audit agency', 24283:'are inadequate to accomplish the tasks. declinations shall be in writing. federal acquisition regulation 42.103 contract audit services directory. a', 24284:'dcaa maintainsand distributes the directory of federal contract audit offices. the directory identifiescognizant audit offices and the contractors over whichthey', 24285:'have cognizance. changes to audit cognizance shall be provided to dcaa so that the directory can be updated. b agencies', 24286:'may obtain acopy ofthe directory orinformationconcerning cognizant audit offices by contacting the defense contract auditagency attn: cmo publications officer 8725', 24287:'johnj. kingman road suite 2135 fort belvoir, va220606219. subpart 42.2 contract administration services 42.202 subpart 42.2 contract administration services 42.201', 24288:'contract administration responsibilities. a for each contract assignedforadministration, thecontract administration officecao see 2.101 shall 1 perform the functions listed in', 24289:'42.302a to the extent that they apply to the contract, except for the functions specifically withheld; 2 perform the functions', 24290:'listed in 42.302b only when and to the extent specifically authorized by the contracting officer; and 3 request supporting contract', 24291:'administration under 42.202e and f when it is required. b the defense contract management agencyand otheragencies offer a widevariety of', 24292:'contractadministration and support services. 42.202assignment of contract administration. a delegating functions. as provided in agencyprocedures,contracting officers maydelegatecontract administration or specialized', 24293:'support services, either through interagency agreements or by direct request to the cognizant cao listed in the federal directory of', 24294:'contract administration services components. the delegation should include 1 the name and address of the cao designated to perform the', 24295:'administration this information also shall be entered in the contract; 2 any special instructions, including any functions withheld or any', 24296:'specific authorization to perform functions listed in 42.302b; 3 a copy of the contract to be administered; and 4 copies', 24297:'of all contracting agency regulations or directives that are i incorporated into the contract by reference; or iiotherwisenecessary toadminister the', 24298:'contract, unless copies have been provided previously. b special instructions. as necessary, thecontracting officer also shall advise the contractor and', 24299:'other activities as appropriate of any functions withheld from or additional functions delegated to the cao. c delegating additional functions.', 24300:'for individual contracts or groups ofcontracts, the contracting office may delegate to the cao functions not listed in 42.302, provided', 24301:'that 1 prior coordination with the cao ensures the availability of required resources; 2 in the case of authority to', 24302:'issue orders under provisioning procedures in existing contracts and under basic ordering agreements for items and services identified in the', 24303:'schedule, the head of the contracting activity or designee approves the delegation; and 3 the delegation does not require the', 24304:'cao to undertake new or followon acquisitions. d rescinding functions. the contracting officer at the requesting agency may rescind or', 24305:'recall a delegation to administer a contract or perform a contract administration function, except for functions pertaining to cost accounting', 24306:'standards and negotiation of forward pricing rates and indirect cost rates also see 42.003. the requesting agency must coordinate with', 24307:'the aco to establish a reasonable transition period prior to rescinding or recalling the delegation. e secondary delegations of contract', 24308:'administration. 1 a cao that has been delegated administration of a contract underparagraph aor c of this section, or a', 24309:'contracting officeretaining contract administration,may request supporting contract administration from the cao cognizant of the contractor location where performance of specific', 24310:'contract administration functions is required. the request shall i be in writing; ii clearly state the specific functions to be', 24311:'performed; and iii be accompanied by a copy of pertinent contractual and other necessary documents. 2 the prime contractoris responsible', 24312:'for managing itssubcontracts. the cao’s review ofsubcontractsis normally limitedtoevaluatingtheprimecontractor’smanagementofthesubcontractssee part 44. therefore, supporting contract administration shall not be used for', 24313:'subcontracts unless i the government otherwise would incur undue cost; ii successful completion of the prime contract is threatened; or', 24314:'iii it is authorized under paragraph f of this section or elsewhere in this regulation. f special surveillance. for major', 24315:'system acquisitions see part 34,thecontractingofficermaydesignatecertainhigh risk or critical subsystems or components for special surveillance in addition to requesting supporting contract', 24316:'administration. federal acquisition regulation this surveillance shall be conducted in a manner consistent with the policy of requesting that the', 24317:'cognizant cao perform contract administrationfunctions at a contractor’s facility see 42.002. g refusing delegation of contract administration. an agency may', 24318:'decline a request for contract administration services on a casebycase basis if resources of the agency are inadequate to accomplish', 24319:'the tasks. declinations shall be in writing. 42.203 contract administration servicesdirectory. the defense contract management agency dcma maintains the federal', 24320:'directory of contract administration services components. the directory lists the names and telephone numbers of those dcma and other agencyoffices', 24321:'that offer contract administration services within designated geographic areas and at specified contractor plants. federal agencies may access it on', 24322:'the internet at https://piee.eb.mil/pcm/xhtml/unauth/index.xhtml. for additional information contact defense contract managementagency 3901 a avenuebuilding 10500 ft. lee, va 238011809. subpart', 24323:'42.3 contract administration office functions 42.302 subpart 42.3 contract administration office functions 42.301general. when a contract is assigned for administration', 24324:'under subpart 42.2,thecontractadministrationofficecaoshallperform contract administration functions in accordance with 48 cfr chapter 1, the contract terms, and, unless otherwise agreed', 24325:'to in an interagency agreement see 42.002, the applicable regulations of the servicing agency. 42.302contract administration functions. a thecontracting officer', 24326:'normally delegates the following contract administrationfunctions to acao. the contracting officer may retain any of these functions, except those inparagraphs', 24327:'a5, a9, a11 and a12 of this section, unless the cognizant federal agency see 2.101 has designatedthe contracting officerto perform', 24328:'these functions. 1 review the contractor’scompensation structure. 2 review the contractor’sinsurance plans. 3 conduct postaward orientation conferences. 4 review and', 24329:'evaluate contractors’ proposals under subpart 15.4 and, when negotiation will be accomplished by the contracting officer, furnish comments and recommendationsto', 24330:'that officer. 5 negotiate forward pricing rate agreements see 15.4073. 6 negotiate advance agreements applicable to treatment of costs under', 24331:'contracts currently assigned for administration see 31.109. 7 determine the allowability of costs suspended or disapproved as required see subpart', 24332:'42.8, direct the suspension or disapproval of costs when there is reason to believe they should be suspended or disapproved,', 24333:'and approve final vouchers. 8 issue notices of intent to disallow or not recognize costs see subpart 42.8. 9 establish', 24334:'final indirect cost rates and billingrates for those contractors meetingthe criteria for contracting officer determination in subpart 42.7. 10attempttoresolveissuesincontroversy,usingadrprocedureswhenappropriatesee subpart', 24335:'33.2; prepare findings of fact and issue decisions under the disputes clause on matters in whichthe administrative contracting officer aco', 24336:'has the authority to take definitive action. 11 in connection with cost accounting standards see 30.601 and 48 cfr chapter', 24337:'99 ideterminethe adequacy ofthe contractor’s disclosure statements; ii determine whether disclosure statements are in compliance with cost accounting standards and', 24338:'part 31; iii determine the contractor’s compliancewith cost accounting standardsanddisclosure statements, ifapplicable; and iv negotiate price adjustments and execute supplemental', 24339:'agreements under the cost accounting standards clauses at 52.2302, 52.2303, 52.2304, 52.2305, and 52.2306. 12 determine the adequacyof the contractor’s', 24340:'accounting system. the contractor’s accounting systemshouldbe adequate during theentire period ofcontract performance. the adequacy of the contractor’s accounting system and', 24341:'its associated internal controlsystem,as well as contractor compliancewith the cost accounting standards cas, affect the quality and validity of the', 24342:'contractor data upon which the government must rely for its management oversight of the contractor and contract performance. 13 review', 24343:'and approve or disapprovethe contractor’s requestsforpaymentsunder theprogresspaymentsor performancebased payments clauses. 14 make payments on assigned contracts when prescribed in agency', 24344:'acquisition regulations. 15 manage special bank accounts. 16 ensure timely notification by the contractor of any anticipated overrun or underrun', 24345:'of the estimated cost under costreimbursement contracts. 17 monitorthe contractor’s financial condition and advise the contractingofficer when it jeopardizes contract', 24346:'performance. 18 analyze quarterly limitation on payments statements and take action in accordance with subpart 32.6 to recover overpayments from', 24347:'the contractor. 19 issue tax exemption forms. 20 ensure processing and execution of dutyfree entry certificates. 21 for classified contracts,', 24348:'administer those portions of the applicable industrial security program delegated to the cao see subpart 4.4. federal acquisition regulation 22', 24349:'issue work requests under maintenance, overhaul, and modification contracts. 23 negotiate prices and execute supplemental agreements for spare parts and', 24350:'other items selected through provisioning procedures when prescribed by agency acquisition regulations. 24 negotiate and execute contractual documents for settlement', 24351:'of partial and complete contract terminations for convenience, except as otherwise prescribed by part 49. 25 negotiate and execute contractualdocuments', 24352:'settling cancellation charges under multiyearcontracts. 26 process and execute novation and change of name agreements under subpart 42.12. 27 perform', 24353:'property administration see part 45. 28 performnecessary screening,redistribution, and disposal of contractor inventory. 29 issue contract modifications requiring the contractor', 24354:'to provide packing, crating, and handling services on excess government property. when the acodeterminesitto bein thegovernment’s interests, the services may', 24355:'be secured from a contractor other than the contractor in possession of the property. 30 when contractors request government property', 24356:'ievaluate the contractor’s requestsforgovernmentpropertyand for changes to existing government property and provide appropriate recommendations tothe contracting officer; ii ensure required', 24357:'screening of government property before acquisition by the contractor; iii evaluate the use of government property on a noninterference basis', 24358:'in accordance with the clause at 52.2459, use andcharges; iv ensure payment by the contractor of any rental due; and', 24359:'v modify contracts to reflect the addition of governmentfurnished property and ensure appropriate consideration. 31 perform production support, surveillance, and', 24360:'status reporting, including timely reporting of potential and actual slippages in contract delivery schedules. 32 perform preaward surveys see subpart', 24361:'9.1. 33 adviseandassist contractors regarding their priorities and allocations responsibilities and assistcontracting offices in processing requests for special assistance and', 24362:'for priority ratings for privately owned capital equipment. 34 monitorcontractor industrial labor relations matters under the contract; apprise the contracting', 24363:'officer and, if designated by theagency, the cognizantlaborrelations advisor, of actual or potential labor disputes; and coordinate the removal of', 24364:'urgently required material from thestrikebound contractor’splant upon instruction from, and authorization of, the contracting officer. 35 performtraffic management services, including', 24365:'issuance and control of government bills ofladingandother transportation documents. 36 review the adequacyof the contractor’s traffic operations. 37 review and', 24366:'evaluate preservation, packaging, and packing. 38 ensure contractor compliance with contractual quality assurance requirements see part 46. 39 ensure contractor', 24367:'compliance with contractual safety requirements. 40 perform engineering surveillance to assess compliance with contractual terms for schedule, cost, and technical', 24368:'performance in the areas of design, development, and production. 41 evaluate for adequacy and perform surveillance of contractor engineering efforts', 24369:'and management systemsthat relate to design, development, production, engineering changes, subcontractors, tests, management of engineering resources, reliability and maintainability,data controlsystems,', 24370:'configuration management, and independent research and development. 42 review and evaluate for technical adequacy the contractor’slogistics support, maintenance,and modification programs.', 24371:'43 report to the contractingoffice any inadequacies notedin specifications. 44 perform engineering analyses of contractor cost proposals. 45 review and', 24372:'analyze contractorproposed engineering and design studies and submit comments and recommendations to the contracting office, asrequired. 46 review engineering change', 24373:'proposals for proper classification, and when required, for need, technical adequacy of design, producibility,and impact on quality,reliability, schedule, and cost;', 24374:'submit comments to the contracting office. 47 assist in evaluating and make recommendations for acceptance or rejection of waivers and', 24375:'deviations. 48 evaluate and monitor the contractor’s procedures for complying with procedures regarding restrictive markings on data. 49 monitorthe contractor’s', 24376:'value engineering program. 50review,approveordisapprove,andmaintainsurveillanceofthecontractor’spurchasingsystemsee part 44. subpart 42.3 contract administration office functions 42.302 51 consent to the placement of subcontracts.', 24377:'52 review, evaluate, and approve plantor divisionwidesmall,smalldisadvantaged,womenowned, veteranowned, hubzone, and servicedisabled veteranowned small business master subcontracting plans. 53 obtain the', 24378:'contractor’scurrently approved companyor divisionwideplans for small, small disadvantaged, womenowned, veteranowned, hubzone, and servicedisabled veteranowned small business subcontracting for its commercial', 24379:'products, or, ifthere is no currentlyapproved plan, assistthe contracting officer in evaluatingthe plansforthose products. 54 assist the contracting officer,upon request,', 24380:'in evaluating an offeror’s proposed small, small disadvantaged womenowned, veteranowned, hubzone, and servicedisabled veteranowned small business subcontracting plans, including documentation', 24381:'of compliance with similar plans under prior contracts. 55 by periodic surveillance, ensure the contractor’s compliance with small, small disadvantaged,', 24382:'womenowned, veteranowned, hubzone, and servicedisabled veteranowned small business subcontracting plans and any labor surplus area contractual requirements; maintain documentation of', 24383:'the contractor’s performance under and compliance with these plans and requirements; and provide advice and assistance to the firms involved,', 24384:'as appropriate. 56 maintain surveillance of flight operations. 57 assign and perform supporting contract administration. 58 ensure timely submission of', 24385:'required reports. 59 issue administrative changes, correcting errors or omissions in typing, contractor address, facility or activity code, remittance address,', 24386:'computations which do not require additional contract funds, and other such changes see 43.101. 60 cause release of shipmentsfrom contractor’s', 24387:'plants according tothe shipping instructions. whenapplicable, the order of assigned priority shall be followed; shipments within the same priority shall', 24388:'be determined by date of the instruction. 61 obtain contractor proposals for any contract price adjustments resulting from amended shipping', 24389:'instructions. review all amended shipping instructions on a periodic, consolidated basis to ensure that adjustments are timely made. except when', 24390:'the aco has settlement authority, the aco shall forwardthe proposal to the contracting officer for contract modification. the aco shall', 24391:'not delay shipments pending completion and formalization of negotiations of revised shipping instructions. 62 negotiate and/or execute supplemental agreements, as', 24392:'required, making changes in packaging subcontractors or contract shipping points. 63 cancelunilateralpurchase orders whennotified ofnonacceptance by the contractor. the cao', 24393:'shall notify the contracting officerwhen the purchase orderis canceled. 64 negotiate and execute onetime supplemental agreements providing for the extension', 24394:'of contract delivery schedules up to 90 days on contracts with an assigned criticality designator of c see 42.1105. notification', 24395:'that the contract delivery schedule is being extended shall be providedto the contracting office. subsequent extensions onanyindividual contract shall be', 24396:'authorizedonly upon concurrenceof the contractingoffice. 65 accomplish administrative closeout procedures see 4.8045. 66 determine that the contractor has a drugfree', 24397:'workplace program and drugfree awareness program see subpart 26.5. 67 support the program, product, and project offices regardingprogramreviews, program status,', 24398:'program performance and actual or anticipated program problems. 68 monitorthe contractor’s environmental practices for adverse impacton contractperformance or contract cost,', 24399:'and for compliance with environmental requirements specified in the contract. aco responsibilities include i requesting environmental technical assistance, if needed;', 24400:'iimonitoring contractor compliancewith specifications or other contractual requirements requiring the delivery, use, or furnishing of sustainable products and services as', 24401:'defined in 2.101 in accordance with the clause at 52.22323. this must occur as part of the quality assurance procedures', 24402:'set forth in part 46; and iii as required in the contract, ensuring that the contractor complies with the reporting', 24403:'requirements relating to recovered material content see 52.2239 and biobased products see 52.2232 utilized in contract performance. 69 administer commercial', 24404:'financing provisions and monitor contractor security to ensure its continued adequacy to cover outstanding payments, when onsite review is required.', 24405:'70 deobligate excess funds after final price determination. 71 ensure that the contractor has implemented the requirements of 52.20313, contractor', 24406:'code of business ethics and conduct. federal acquisition regulation b the cao shall perform the following functions only when and', 24407:'to the extent specifically authorized by the contracting office: 1 negotiate or negotiate and execute supplemental agreements incorporating contractor proposals', 24408:'resulting from change orders issued under the changes clause. before completing negotiations, coordinate any delivery schedule change with the contracting', 24409:'office. 2 negotiate prices and execute priced exhibits for unpriced orders issued bythe contracting officerunder basic ordering agreements. 3 negotiate', 24410:'or negotiate and execute supplemental agreements changing contract delivery schedules. 4 negotiate or negotiate and execute supplemental agreements providing for', 24411:'the deobligation of unexpended dollar balances considered excess to known contract requirements. 5 issue amended shipping instructionsand, when necessary,negotiate andexecute', 24412:'supplemental agreements incorporating contractor proposals resulting from these instructions. 6 negotiate changes to interim billing prices. 7 negotiate and definitize', 24413:'adjustments to contract prices resulting from exercise of an economic price adjustment clause see subpart 16.2. 8 issue change orders', 24414:'and negotiate and execute resulting supplemental agreements under contracts for ship construction, conversion, andrepair. 9 execute supplemental agreements on firmfixedprice', 24415:'supply contracts to reduce required line item quantities and deobligate excess funds when notified by the contractor of an inconsequential', 24416:'delivery shortage, and it is determined that such action is in the best interests of the government, notwithstanding the default', 24417:'provisions of the contract. such action will be taken only upon the written request of the contractor and, in no', 24418:'event, shall the total downward contract price adjustment resulting from an inconsequential delivery shortage exceed $250.00 or 5 percent of', 24419:'the contract price, whichever is less. 10 execute supplemental agreements to permit a change in place of inspection at origin', 24420:'specified in firmfixedprice supply contracts awarded to nonmanufacturers,as deemed necessary to protect the government’sinterests. 11 prepare evaluations of contractor performance', 24421:'in accordance with subpart 42.15. c any additional contract administration functions not listed in 42.302a and b, or not otherwise', 24422:'delegated, remain the responsibility of the contracting office. subpart 42.4 correspondence and visits 42.403 subpart 42.4 correspondence and visits 42.401', 24423:'contract correspondence. a thecontracting officer or other contracting agency personnel normallyshall1forward correspondence relating to assigned contractadministration functions through the cognizant', 24424:'contract administration office cao tothe contractor, and 2 provide a copy for the cao’sfile. when urgency requires sending such correspondence', 24425:'directly to the contractor, a copy shall be sent concurrently to the cao. b the cao shall sendthe contracting office', 24426:'a copy of pertinent correspondence conducted betweenthe cao and the contractor. 42.402 visits to contractors’ facilities. a government personnel planning', 24427:'to visit a contractor’s facility in connection withone or more government contracts shall provide the cognizant cao with the following', 24428:'information, sufficiently in advance to permit the cao tomake necessary arrangements. such notification is for the purpose of eliminating duplicative', 24429:'reviews, requests, investigations, and audits relating to the contract administration functions in subpart 42.3delegatedtocao’sandshall,asaminimum,include the following see also paragraph b', 24430:'of this section: 1 visitors’ names, official positions, and security clearances. 2 date and duration of visit. 3 name and', 24431:'address of contractor and personnel to be contacted. 4 contractnumber, program involved, and purpose of visit. 5 if desired,visitorsto a', 24432:'contractor’s plant may request that a representative ofthe cao accompany them. in any event, thecao has final authority to decide', 24433:'whether a representative shall accompanya visitor. b if the visit will result in reviewing, auditing, or obtaining any information from', 24434:'the contractor relating to contract administration functions, the prospective visitor shall identify the information in sufficient detail so as to', 24435:'permit the cao, after consultation with the contractor and the cognizant audit office, to determine whether such information,adequate to fulfill', 24436:'the requirement, has recently been reviewed by or is available within the government. if so, the cao will discourage thevisit', 24437:'and refer the prospective visitor to thegovernmentoffice where such information is located. wherethe officeis the cao,such information will be immediately', 24438:'forwardedor otherwise made available to therequestor. c visitors shall fully inform the caoof any agreements reached with the contractor or', 24439:'other results ofthe visit that may affect the cao. 42.403evaluation of contract administration offices. onsite inspections or evaluations of theperformance', 24440:'of the assigned functions of a contract administration office shall be accomplishedonlyby or under the directionof the agency of whichthat', 24441:'officeis apart. this page intentionally left blank. 42.42 subpart 42.5 postaward orientation 42.5031 subpart 42.5 postaward orientation 42.500scope of subpart.', 24442:'this subpart prescribes policies and procedures for the postaward orientation of contractors and subcontractors through a a conference; or b', 24443:'a letter or other form of written communication. 42.501general. a a postaward orientation aids both government and contractor personnel to', 24444:'1 achieve a clear and mutual understanding of all contract requirements, and 2 identify and resolve potential problems. however, it', 24445:'is not a substitutefor thecontractor’sfullyunderstanding the work requirements at thetime offers are submitted, nor isitto beused toalter the final agreement', 24446:'arrived at in any negotiations leading to contract award. b postaward orientation is encouraged to assist see part 19 1', 24447:'small business concerns; 2 small disadvantaged business concerns; 3 veteranowned small business concerns; 4 servicedisabled veteranowned small business concerns; 5', 24448:'hubzone small business concerns; and 6 womenowned small business concernsincluding economically disadvantaged womenowned small business concerns and womenowned small business', 24449:'concerns eligible underthe womenowned small business program. c whilecognizant government or contractorpersonnel may requestthe contracting officer to arrange for orientation,', 24450:'it is up to the contractingofficer to decide whether a postaward orientationin any form is necessary. d maximum benefits will', 24451:'be realized when orientation is conducted promptly after award. 42.502selecting contracts for postaward orientation. when deciding whether postaward orientation is', 24452:'necessaryand, if so, whatform it shall take,the contracting officer shall consider,as a minimum, the a nature and extent of the', 24453:'preaward survey and any other prior discussions with the contractor; b type, value, and complexity of the contract; c complexity', 24454:'and acquisition history of the product or service; d requirements for spare parts and related equipment; e urgency of the', 24455:'delivery schedule and relationship of theproduct or serviceto critical programs; f length of the planned production cycle; g extent of', 24456:'subcontracting; h contractor’sperformance history and experiencewith the product or service; icontractor’s status, if any,as a smallbusiness, smalldisadvantaged, womenowned, veteranowned,hubzone, or', 24457:'servicedisabled veteranowned small business concern; jcontractor’s performancehistory withsmall, smalldisadvantaged, womenowned, veteranowned,hubzone, and servicedisabled veteranowned small business subcontracting programs; k safety', 24458:'precautions required for hazardous materials or operations; and l complex financing arrangements, such as progress payments, advance payments, or guaranteed', 24459:'loans. 42.503 postaward conferences. 42.5031postaward conference arrangements. a thecontracting officer who decides that a conference is needed is responsible for', 24460:'1 establishing the time and place of the conference; 2 preparing the agenda, when necessary; 3 notifying appropriate government representatives', 24461:'e.g., contracting/contract administration officeand the contractor; 4 designating or acting as the chairperson; 5 conducting a preliminary meeting of government', 24462:'personnel; and 6 preparing a summary report of the conference. 42.5032 federal acquisition regulation b when the contractingoffice initiates a', 24463:'conference,the arrangements maybe made by that office or, at its request, by thecontract administration office. 42.5032postaward conference procedure. the chairperson', 24464:'of the conference shall conduct the meeting. unless a contract change is contemplated, the chairperson shall emphasize that it is', 24465:'not the purpose of the meeting to change the contract. the contracting officer may make commitments or give directionswithin thescope', 24466:'of the contracting officer’s authority and shall putin writingandsign any commitment or direction, whether or not it changes the contract.', 24467:'any change to the contract that results from the postaward conference shall be made only by a contract modification referencing', 24468:'the applicable terms of the contract. participants without authority to bind the government shall not take action that in any', 24469:'way alters the contract. the chairperson shall include in the summary report see 42.5033 all information and guidance providedto the', 24470:'contractor. 42.5033postaward conference report. the chairperson shall prepare and sign a report of the postaward conference. the report shall cover', 24471:'all items discussed, including areas requiring resolution, controversial matters, the names of the participants assigned responsibility for further actions,andthe due', 24472:'dates for theactions. the chairperson shall furnish copies of thereport to the contractingoffice, the contract administrationoffice, the contractor, and otherswho', 24473:'require the information. 42.504postaward letters. in some circumstances, a letter or other written form of communication to the contractor may', 24474:'be adequate postaward orientation in lieu of a conference. the letter should identify the government representative responsible for administering the', 24475:'contract and cite any unusual or significant contract requirements. the rules on changes to the contract in 42.5032 also apply', 24476:'here. 42.505 postaward subcontractor conferences. a theprimecontractor is generally responsible for conductingpostaward conferences with subcontractors. however, the prime contractor may', 24477:'invite government representatives to a conference with subcontractors, or the government may request that the prime contractor initiate a conference', 24478:'with subcontractors. the prime contractor should ensure that representatives from involved contract administrationoffices are invited. b government representatives 1 must', 24479:'recognize the lack of privity of contract between the government and subcontractors; 2 shall not take action that is inconsistent', 24480:'with or alters subcontracts; and 3 shall ensure that any changes in direction or commitment affecting the prime contract orcontractor', 24481:'resulting from a subcontractor conference are madeby written direction of the contracting officer to the prime contractor in thesame manner', 24482:'as described in 42.5032. subpart 42.6 corporate administrative contracting officer 42.603 subpart 42.6 corporate administrative contracting officer 42.601general. contractors with', 24483:'more than one operational location e.g., division, plant, or subsidiary often have corporatewide policies,procedures,and activities requiring government review and approvalandaffecting', 24484:'the work ofmore thanone administrative contracting officer aco. in thesecircumstances,effective and consistent contractadministration may require theassignment of a corporate administrative', 24485:'contracting officercaco to deal with corporate management and to perform selected contract administration functions on a corporatewide basis. 42.602assignment and', 24486:'location. a a cacomay be assigned onlywhen 1 the contractorhas at leasttwo locationswith resident aco’s or 2 the need for', 24487:'a caco is approved by the agency head or designee for this purpose, a nonresident aco will be considered as', 24488:'residentif at least 75percent ofthe aco’s effortis devoted to asingle contractor. one of the resident aco’s may be designated to', 24489:'perform the caco functions, or a fulltime caco may be assigned. in determining the location of the caco, theresponsible agency', 24490:'shall take into account such factorsas the locations of the corporate records, corporate office, major plant, cognizantgovernment auditor, and overall', 24491:'cost effectiveness. b a decision to initiate or discontinue a caco assignment should be based on such factors as the', 24492:'1 benefits of coordination and liaison at the corporate level; 2 volumeof government sales; 3 degree ofcontrol exercised by the', 24493:'contractor’s corporate office over governmentoriented lowertier operating elements; and 4 impact of corporate policies and procedures on those elements. c', 24494:'responsibility for assigning a caco shall be determined as follows: 1 when all locations of a corporate entityare under the', 24495:'contract administration cognizanceof asingle agency, that agency is responsible. 2 when the locationsare underthe contract administrationcognizance of more than one', 24496:'agency, the agencies concerned shall agree on the responsible agency normallyon the basisof the agency with the largest dollar balance,', 24497:'including options, ofaffected contracts. in such cases, agencies may also consider geographic location. d the directory of contract administration services', 24498:'components referenced in 42.203 includes a listing of caco’s and thecontractors for whichthey are assigned responsibility. 42.603responsibilities. a the caco', 24499:'shall perform, on a corporatewide basis, the contract administration functions as designated by the responsible agency. typicalcaco functions include 1', 24500:'the determination of final indirect cost rates for costreimbursement contracts; 2 establishmentof advance agreements or recommendations on corporate/ home office', 24501:'expense allocations; and 3 administration of cost accounting standards cas applicable to corporatelevel and corporatedirected accounting practices. b the caco', 24502:'shall 1 fully utilize the responsible contract audit agency financial and advisory accounting services, including i advice regarding the acceptability', 24503:'of corporatewide policies; and ii advisory audit reports; 2 keepcognizant aco’s and auditors informedof important matters underconsideration and determinations made;', 24504:'and 3 solicit their advice and participation as appropriate. this page intentionally left blank. 42.62 subpart 42.7 indirect cost rates', 24505:'42.7032 subpart 42.7 indirect cost rates 42.700scope of subpart. this subpart prescribes policies and procedures for establishing a billing rates;', 24506:'and b final indirect cost rates. 42.701definition. billing rate, as used in this subpart, means an indirect cost rate 1', 24507:'established temporarily for interim reimbursement of incurred indirect costs; and 2 adjusted as necessary pending establishment of final indirect cost', 24508:'rates. 42.702purpose. a establishing final indirect cost rates under this subpart provides 1 uniformity of approach with a contractor when', 24509:'more than one contract or agency is involved; 2 economy of administration; and 3 timely settlement undercostreimbursementcontracts. b establishing billing', 24510:'rates provides a method for interim reimbursement of indirect costs at estimated rates subject to adjustment during contract performance and', 24511:'at the time the final indirect cost rates are established. 42.703general. 42.7031policy. a a single agency see 42.7051 shall be', 24512:'responsible for establishing final indirect cost rates for each business unit. these ratesshallbe binding onall agencies and their contracting offices,', 24513:'unless otherwisespecifically prohibited by statute. an agency shall notperform an audit ofindirectcostrates when the contracting officerdeterminesthat the objectives of the', 24514:'audit can reasonably be met by accepting the results of an audit that was conducted by any other department or', 24515:'agency of the federal government 10 u.s.c. 3841e and 41 u.s.c. 4706e. b billing rates and final indirect cost rates', 24516:'shall be used in reimbursing indirect costs under costreimbursement contracts and in determining progress payments under fixedprice contracts. c to', 24517:'ensure compliancewith 10 u.s.c. 3743a and 41 u.s.c. 4303a 1 final indirect cost rates shall be used for contract closeout', 24518:'for a business unit, unless the quickcloseout procedure in 42.708 is used. these final rates shall be binding for all', 24519:'costreimbursement contracts at the business unit, subject to any specific limitation in a contract or advance agreement; and 2 established', 24520:'final indirect cost rates shall be used in negotiating the final price of fixedprice incentive and fixed price redeterminable contracts', 24521:'and in other situations requiring that indirect costs be settled before contract prices are established, unless the quickcloseout procedure in', 24522:'42.708 is used. 42.7032certificate ofindirect costs. a general. in accordance with 10 u.s.c. 3747 and 41 u.s.c.4307, a proposal shall', 24523:'not be accepted and no agreement shall bemadeto establish finalindirectcostrates unless the costs have been certified by the contractor. b', 24524:'waiver of certification. 1 the agency head, or designee, may waive the certification requirement when i it is determined to', 24525:'be in the interest of the united states; and ii the reasons for the determination are put in writing and', 24526:'made available to the public. 2 a waiver may be appropriate for a contract with iaforeign government or international organization,', 24527:'such as a subsidiary body of the north atlantic treaty organization; ii a state or local government subject to the', 24528:'omb uniform guidance at 2 cfr part 200, subpart e and appendices v and vii; iii an educational institution defined', 24529:'as an institution of higher education in the omb uniform guidance at 2 cfr part 200, subpart a, and 20', 24530:'u.s.c. 1001 subject to the omb uniform guidance at 2 cfr part 200, subpart e and appendix iii; and federal', 24531:'acquisition regulation iv a nonprofit organization as defined in the ombuniform guidance at 2 cfr part 200 subject to the', 24532:'omb uniform guidance at 2 cfr part 200, subpart e and appendix iv. c failure tocertify. 1 if the contractor', 24533:'has not certified its proposal for final indirect cost rates and a waiver is not appropriate, the contractingofficer may unilaterally', 24534:'establish the rates. 2 rates established unilaterally should be i based on audited historical data or other available data as', 24535:'long as unallowable costs are excluded; and ii set low enough to ensure that unallowable costs will not be reimbursed.', 24536:'d false certification. the contracting officer should consult with legalcounsel to determine appropriate action when a contractor’s certificate offinal indirect', 24537:'costs isthought to be false. e penalties for unallowable costs. 10 u.s.c. 3743 and 41 u.s.c.4303 prescribe penalties for submission', 24538:'of unallowable costs in final indirect cost rate proposals see 42.709 for penalties and contractingofficer responsibilities. f contract clause. 1', 24539:'except as provided in paragraph f2 of this subsection, the clause at 52.2424, certification of final indirect costs, shall be', 24540:'incorporated into all solicitations and contracts which provide for establishment of final indirect cost rates. 2 the department of energy', 24541:'may providean alternate clause inits agencysupplement for itsmanagement and operating contracts. 42.704billing rates. a thecontracting officer or cognizant federal agency', 24542:'official or auditor responsible under 42.705 for establishing the final indirect cost rates also shall be responsible for determining the', 24543:'billing rates. b the contractingofficer or cognizant federalagency officialor auditor shall establishbilling rateson the basisof information resulting from recent review,', 24544:'previousrate audits or experience, or similar reliable data or experience ofother contracting activities. inestablishing billing rates, the contracting officer or', 24545:'cognizant federal agency officialor auditor should ensure that the billingrates are as close as possible to the final indirect cost', 24546:'rates anticipated for the contractor’s fiscal period,as adjusted for any unallowable costs. whenthe contracting officer or cognizant federal agency official', 24547:'or auditor determines that the dollar value of contracts requiring use of billing rates does not warrant submission of a', 24548:'detailed billing rateproposal, thebilling rates may be established by making appropriateadjustments from the prior year’s indirect cost experience to eliminate', 24549:'unallowable and nonrecurring costs and to reflect new or changed conditions. c once established, billing rates may be prospectively or', 24550:'retroactively revised by mutual agreement of the contracting officer or cognizant federal agency official or auditor and thecontractor ateither party’s', 24551:'request, to preventsubstantial overpayment or underpayment. when agreement cannot be reached, the billing rates may be unilaterally determined by the', 24552:'contracting officerorcognizant federal agency official. d the elements of indirect cost and the base or bases used in computing billing', 24553:'rates shall not be construed as determinative of the indirect costs to be distributed or of the bases of distribution', 24554:'to be used in the final settlement. e when thecontractor provides to thecognizant contracting officer the certified final indirect cost', 24555:'rateproposal in accordance with 42.7051b or 42.7052b, the contractor and the government may mutually agree to revise billing rates to', 24556:'reflect the proposed indirect cost rates, as approved by the government to reflect historically disallowed amounts from prior years’ audits,', 24557:'until the proposal has been audited and settled. the historical decrement will be determined by either the cognizantcontracting officer 42.7051b', 24558:'or the cognizant auditor 42.7052b. 42.705 final indirectcost rates. a final indirect cost rates shall be established on the basis', 24559:'of 1 contracting officer determination procedure see 42.7051, or 2 auditor determination procedure see 42.7052. b within 120days or longer', 24560:'period, if approvedin writing bythe contracting officer, after settlement of thefinal annual indirect cost rates for all years of a', 24561:'physically complete contract, the contractor must submit a completion invoice or voucher reflecting the settled amounts and rates. to determine', 24562:'whether a periodlonger than 120 days is appropriate, the contracting officer should consider whether there are extenuating circumstances, suchas the', 24563:'following: 1 pending closeout of subcontracts awaiting government audit. 2 pending contractor, subcontractor, or governmentclaims. 3 delays in the dispositionof', 24564:'government property. 4 delays in contract reconciliation. 5 any other pertinent factors. subpart 42.7 indirect cost rates 42.7051 c 1', 24565:'if the contractor fails to submit a completion invoice or voucher within the time specified in paragraph b of this', 24566:'section,the contracting officer may i determine the amounts due to the contractor under the contract; and ii record this determination', 24567:'in a unilateral modification to the contract. 2 this contracting officer determination must beissuedas afinal decision in accordance with 33.211.', 24568:'42.7051contractingofficer determination procedure. a applicability and responsibility. contracting officer determination shall beused for thefollowing, with the indicated cognizantcontracting officer or', 24569:'cognizant federal agency official responsible for establishing the final indirect cost rates: 1 business units of a multidivisional corporation under', 24570:'the cognizance of a corporate administrative contracting officer see subpart 42.6, with thatofficer responsible for the determination, assisted, as required,', 24571:'by the administrative contracting officers, assigned to the individual business units. negotiations may be conducted ona coordinated or centralized basis,', 24572:'depending uponthe degree of centralizationwithin thecontractor’sorganization. 2 business units not underthe cognizance of a corporate administrative contractingofficer, but having a', 24573:'resident administrative contracting officer see 42.602, with that officer responsibleforthe determination. forthispurpose, a nonresident administrative contractingofficer is consideredas resident if', 24574:'atleast 75 percent of theadministrative contracting officer’s timeis devoted to a single contractor. 3 for business unitsnot included in paragrapha1', 24575:'or a2 of this subsection, the contracting officer or cognizant federalagency official will determine whether the rates will be contractingofficer', 24576:'or auditor determined. 4 educational institutions see 42.7053. 5 state and local governments see 42.7054. 6 nonprofit organizations other than', 24577:'educational and state and local governments see 42.7055. b procedures. 1 in accordance with the allowable cost and payment clause', 24578:'at 52.2167, the contractor is required to submitan adequatefinal indirect cost rate proposal tothe contracting officerorcognizant federal agency official and', 24579:'to the cognizantauditor. i the required content of the proposal and supporting data will vary depending on such factors as', 24580:'business type, size, and accounting system capabilities. the contractor, contracting officer, and auditormust work together tomakethe proposal,audit, and negotiation process', 24581:'as efficient aspossible. ii each contractor is required to submit the final indirect cost rate proposal within the sixmonth period', 24582:'following theexpiration of each of its fiscal years. the contracting officer may grant, inwriting, reasonableextensions, for exceptional circumstances only, when', 24583:'requested in writing by the contractor. iii upon receipt of the proposal athe cognizant auditor will reviewthe adequacy of the', 24584:'contractor’s proposalforaudit in support of negotiating final indirect cost rates and will provide a written description of any inadequacies to', 24585:'the contractor and contracting officer. b if the auditor andcontractor are unable toresolve the proposal’sinadequacies identified by theauditor, the auditor', 24586:'will elevate the issue to the contractingoffice toresolve the inadequacies. iv the proposal must be supported with adequate supporting data,', 24587:'some of which may be required subsequent to finding that the proposal is adequate for audit in support of negotiating', 24588:'final indirect cost rates e.g., during the course of the performance of the advisory audit. see the clause at 52.2167d2', 24589:'for the description of an adequate final indirect cost rate proposal and supporting data. 2 once a proposal has been', 24590:'determined to be adequate for audit in support of negotiating final indirect cost rates, the auditor will audit the proposal', 24591:'andprepare an advisory audit report tothe contracting officer or cognizant federal agency official, includinga listing ofanyrelevant advance agreements or restrictiveterms', 24592:'ofspecific contracts. 3 the contractingofficer or cognizant federalagency officialshallheadthe government negotiating team, which includes the cognizant auditor and technical or', 24593:'functional personnel as required. contracting offices having significant dollar interest shall be invited to participate in the negotiation and in', 24594:'the preliminary discussion of critical issues. individuals or offices thathaveprovided a significant input to the governmentposition should be invited to', 24595:'attend. 4 the government negotiating team shall develop a negotiation position. pursuant to 10 u.s.c. 3745 and 41 u.s.c.4305, the', 24596:'contracting officer shall i not resolve any questioned costs until obtaining a adequate documentation on the costs; and b the', 24597:'contract auditor’s opinion on the allowability of the costs. 42.7052 federal acquisition regulation ii whenever possible, invite the contract auditor', 24598:'to serve as an advisor at any negotiation or meeting with the contractor onthe determination of the contractor’s final indirect', 24599:'cost rates. 5 the cognizant contracting officer shall i conduct negotiations; ii prepare a written indirect cost rate agreement conforming', 24600:'to the requirements of the contracts; iii prepare, sign, and place in the contractor general file see 4.801c3 a negotiation', 24601:'memorandum covering a the disposition of significant matters in the advisory audit report; b reconciliation of all costs questioned, with', 24602:'identification of items and amounts allowed or disallowed in the final settlement as well as the disposition of period costing', 24603:'or allocability issues; c reasons why any recommendations of the auditor or other government advisors were not followed; and d', 24604:'identification of certified cost or pricing data submitted during the negotiations and relied upon in reaching a settlement; and iv', 24605:'distribute resulting documents in accordance with 42.706. v notify the contractor of the individual costs which were considered unallowable and', 24606:'the respective amounts of the disallowance. 42.7052auditordeterminationprocedure. a applicability and responsibility. 1 the cognizant government auditor shall establish final indirect', 24607:'cost rates for business units not covered in 42.7051a. 2 in addition, auditor determination may be used for business units', 24608:'that are covered in 42.7051a when the contracting officerorcognizant federal agency official and auditor agree thatthe indirect costs can be', 24609:'settled with little difficulty and any ofthe following circumstances apply: i the business unit has primarily fixedprice contracts, with only', 24610:'minor involvement in costreimbursement contracts. iithe administrative cost of contracting officer determination wouldexceed the expected benefits. iii the business unit', 24611:'does not have a history of disputes and there are few cost problems. iv the contracting officer or cognizant federal', 24612:'agency officialand auditor agree that special circumstances require auditor determination. b procedures. 1 the contractor shall submit to the cognizant', 24613:'contractingofficer or cognizant federalagency official and auditor a final indirect cost rate proposal in accordance with 42.7051b1. 2 once a', 24614:'proposal has been determined to be adequate for audit in support of negotiating final indirect cost rates, the auditor shall', 24615:'i audit the proposal and prepare an advisory audit report, including a listing of any relevant advance agreements or restrictive', 24616:'terms of specific contracts; ii seek agreement on indirect costs with the contractor; iii prepare an indirect cost rate agreement', 24617:'conforming to the requirements of the contracts.the agreement shall be signed by the contractor and the auditor; iv ifagreement with', 24618:'the contractoris not reached,forward theaudit report to thecontracting officer or cognizant federalagency official identified in the directory of contract administration', 24619:'servicescomponents see 42.203, who will then resolve the disagreement; and v distribute resulting documents in accordance with 42.706. 42.7053 educational', 24620:'institutions. a general. 1 postdetermined final indirect cost rates shall be used in the settlement of indirect costs for all', 24621:'cost reimbursement contracts with educational institutions, unless predetermined final indirect cost rates are authorized and used see paragraph b of', 24622:'this subsection. 2 the omb uniform guidance at 2 cfr part 200, appendix iii assigns each educational institution defined as', 24623:'an institution of higher education in the omb uniform guidance at 2 cfr part 200, subpart a, and 20 u.s.c.', 24624:'1001 to a single government agency for the negotiation of indirect cost rates and provides that those rates shall be', 24625:'accepted by all federal agencies. cognizant government agencies and educational institutions are listed in the directory of federal contract audit', 24626:'offices see 42.103. 3 the cognizant agency for indirect costs shall establish the billing rates and final indirect cost rates', 24627:'at the educational institution defined as an institution of higher education in 2 cfr 200, subpart a, and 20 u.s.c.', 24628:'1001 consistent with the subpart 42.7 indirect cost rates 42.7055 requirements of this subpart, subpart 31.3, and the omb uniform', 24629:'guidance at 2 cfr part 200, subpart e and appendix iii. the agency shall follow the procedures outlined in 42.7051b.', 24630:'4 if the cognizant agency is unable to reach agreement with an institution, the appeals system of the cognizant agency', 24631:'shall be followed for resolution of the dispute. b predetermined final indirect cost rates. 1 under costreimbursement research and development', 24632:'contracts with universities, colleges, or other educational institutions 41 u.s.c. 4708, payment for reimbursable indirect costs may be made on', 24633:'the basis of predetermined final indirect cost rates. the cognizant agency is not required to establish predetermined rates, but if', 24634:'they are established, their use must be extendedto all theinstitution’sgovernmentcontracts. 2 in deciding whether the use of predetermined rates would', 24635:'be appropriate for the educational institution concerned, theagency should consider both thestability of the institution’s indirect costsandbases overa period of', 24636:'years and any anticipated changes in the amount of the direct and indirect costs. 3 unless their use is approved', 24637:'at a level in the agency see paragraph a2 of this subsection higher than the contracting officer, predeterminedratesshallnot be used', 24638:'when i there has been no recent audit of the indirect costs; ii there have been frequent or wide fluctuations', 24639:'in the indirect cost rates and the bases over a period of years; or iii the estimatedreimbursable costs for any', 24640:'individual contract are expected to exceed $1 millionannually. 4 iifpredeterminedratesaretobeusedandnorateshavebeenpreviouslyestablishedfortheinstitution’scurrent fiscal year, the agency shall obtain from the institution a', 24641:'proposal for predetermined rates. ii if the proposal is found to be generally acceptable, the agency shall negotiate the predetermined', 24642:'rates with the institution. theratesshouldbe based onan audit of the institution’s costs for the year immediatelypreceding the year in which', 24643:'the rates are being negotiated. if this is not possible, an earlier audit may be used, but appropriate steps should', 24644:'be taken to identify and evaluate significant variations in costs incurred or in bases used that may have a bearing', 24645:'on the reasonableness of the proposed rates. however, in thecaseof smallercontracts i.e., contracts that do not exceed the simplified acquisition', 24646:'threshold, an audit made at an earlier date is acceptable if atherehavebeenno significant changes in the contractor’s organization; and b', 24647:'itis reasonably apparent that another audit would have little effect on the rates finally agreed upon and the potential for', 24648:'overpayment of indirect cost is relatively insignificant. 5 if predetermined rates are used ithe contracting officer shall include thenegotiated rates', 24649:'and bases in the contract schedule; and ii see 16.307g, which prescribes the clause at 52.21615, predetermined indirect cost rates.', 24650:'6 predetermined indirect cost rates shall be applicable for a period of not more than fouryears. the agency shall obtain', 24651:'thecontractor’s proposal for new predetermined rates sufficientlyin advance sothat the new rates, based oncurrent data, may be promptly negotiated near', 24652:'the beginning of the new fiscal year or other period agreed to by the parties see paragraphs b and d', 24653:'of the clause at 52.21615, predetermined indirect cost rates. 7 contracting officersshalluse billingrates established by the agency to reimburse the', 24654:'contractor for workperformed during a period not covered by predetermined rates. 8 the omb uniform guidance at 2 cfr part', 24655:'200, subpart e and appendix iii, provides additional guidance on how long predetermined rates may be used. 42.7054 state and', 24656:'local governments. the omb uniform guidance at 2 cfr part 200, subpart eandappendix v, concerningcostprinciplesforstate and local governments see subpart', 24657:'31.6 establishes the cognizant agency concept and the procedures for determining a cognizant agency for approving state and local government', 24658:'indirect costs associated with federallyfunded programs and activities. the indirect cost rates negotiated and approved by the cognizant agency for', 24659:'indirect costs will be used by all federal agencies that also award contracts to these same state and local governments.', 24660:'42.7055nonprofitorganizationsother than educational andstate and local governments. see the omb uniform guidance at 2 cfr part 200, subpart e and', 24661:'appendix iv; but see appendix viii for nonprofit organizations exempt fromsubparte. federal acquisition regulation 42.706distribution of documents. a thecontracting officer', 24662:'or auditor shall promptly distribute executed copies of the indirect cost rateagreement to thecontractor and toeach affected contracting agency and', 24663:'shall provide copies of the agreement for the contract files, in accordance with the guidance for contract modifications in subpart', 24664:'4.2, contract distribution. b copies of the negotiation memorandumprepared under contracting officerdetermination or audit report prepared underauditor determination shall be', 24665:'furnished, as appropriate, tothe contracting offices and government auditoffices. 42.707 costsharing ratesand limitations on indirect cost rates. a costsharing arrangements,', 24666:'when authorized, may call for the contractor to participate in the costs of the contract by accepting indirect cost rates', 24667:'lower than the anticipated actual rates. in such cases, a negotiated indirect cost rate ceiling may be incorporated into the', 24668:'contract for prospective application. for cost sharing under research and development contracts, see 35.003b. b 1 other situations may make', 24669:'it prudent to provide a final indirect cost rate ceiling in a contract. examples of such circumstances are when the', 24670:'proposed contractor iisa new or recently reorganized company, and there is nopast or recent record ofincurred indirect costs; ii has', 24671:'a recent record of a rapidly increasing indirect cost rate due to a declining volume of sales without a commensurate', 24672:'decline in indirect expenses; or iii seeks to enhance its competitive position in a particular circumstance by basing its proposal', 24673:'on indirect cost rates lower than those that may reasonably be expected to occur during contract performance, thereby causing a', 24674:'cost overrun. 2 in such cases, an equitable ceiling covering the final indirect cost rates may be negotiated and specified', 24675:'in the contract. c when ceiling provisions are utilized, the contract shall also provide that 1 the government will not', 24676:'be obligated to pay any additional amount should the final indirect cost rates exceed the negotiated ceiling rates, and 2', 24677:'in the event the final indirect cost rates are less than the negotiated ceiling rates, the negotiated rates will be', 24678:'reduced to conform with the lower rates. 42.708 quickcloseout procedure. a thecontracting officer responsible for contract closeout shall negotiate thesettlement', 24679:'ofdirect and indirect costs for a specific contract, task order, ordelivery order to be closed, in advance of the determination', 24680:'of finaldirect costs and indirect rates set forth in 42.705, if 1 the contract, task order, or delivery order is', 24681:'physically complete; 2 the amount of unsettleddirect costs and indirect coststo beallocatedto the contract, task order, ordelivery order is relatively', 24682:'insignificant. cost amounts will be considered relatively insignificant when the total unsettled direct costs and indirect costs to be allocatedto', 24683:'any one contract, task order, or delivery order does not exceed the lesser of i $1,000,000; or ii10 percentof the', 24684:'total contract,taskorder,or delivery order amount; 3 the contractingofficer performs a risk assessmentanddeterminesthat the useof the quickcloseout procedure is appropriate. the', 24685:'risk assessment shall include iconsideration of the contractor’s accounting, estimating, and purchasing systems; ii other concerns of the cognizant contract', 24686:'auditors; and iii any other pertinent information, such as, documented history of federal government approved indirect cost rateagreements, changes to', 24687:'contractor’s rate structure, volatility of rate fluctuations during affectedperiods, mergers or acquisitions, special contract provisions limiting contractor’s recovery ofotherwise allowable', 24688:'indirect costs under cost reimbursement or timeandmaterials contracts; and 4 agreement can be reached on a reasonable estimate of allocable', 24689:'dollars. b determinations of final indirect costs under the quickcloseout procedure provided for by the allowable cost and payment clause', 24690:'at 52.2167 shall be final for the contract it covers and no adjustment shall be made to other contracts for', 24691:'over or underrecoveries of costs allocated or allocable to the contract covered by the agreement. c indirect cost rates used', 24692:'in the quick closeout of a contract shall not be considered a binding precedent when establishing the final indirect cost', 24693:'rates for other contracts. subpart 42.7 indirect cost rates 42.7094 42.709penalties for unallowable costs. 42.7091 scope. a this section implements', 24694:'10 u.s.c. 3743 and 41 u.s.c. 4303. it covers the assessment of penalties against contractors which include unallowable indirect costs', 24695:'in 1 final indirect cost rate proposals; or 2 the final statement of costs incurred or estimated to be incurred', 24696:'under a fixedprice incentive contract. b this section applies to all contracts in excess of $800,000, except fixedprice contracts without', 24697:'cost incentives or any firmfixedprice contracts for the purchase of commercial products or commercial services. 42.7092 general. a the following', 24698:'penalties apply to contracts covered by this section: 1 if the indirect cost is expresslyunallowable under a cost principle inthe', 24699:'far,or an executive agencysupplement to thefar, that defines the allowability of specificselected costs,the penalty is equal to i the amount', 24700:'of the disallowed costs allocated to contracts that are subject to this section for which an indirect cost proposal has', 24701:'been submitted; plus iiinterest on the paid portion, if any, ofthe disallowance. 2 if the indirect cost was determined to', 24702:'be unallowable for that contractor before proposal submission, the penalty is two times the amount in paragraph a1i of this', 24703:'section. b these penalties are in addition toother administrative, civil, and criminal penalties provided bylaw. c it is notnecessary for', 24704:'unallowable costs tohavebeenpaid to the contractor in order to assess a penalty. 42.7093 responsibilities. a thecognizant contracting officer is responsible', 24705:'for— 1 determining whether the penalties in 42.7092a should be assessed; 2 determining whether such penalties should be waived pursuant', 24706:'to 42.7096; and 3 referring the matter to the appropriate criminal investigative organization for review and for appropriate coordination of', 24707:'remedies, if there is evidence that the contractor knowingly submitted unallowable costs. b the contract auditor, in the review and/or', 24708:'the determination of finalindirectcost proposalsforcontracts subject to this section, is responsible for— 1 recommending to the contracting officerwhich costs may', 24709:'be unallowableandsubject to the penalties in 42.7092a; 2 providing rationale and supporting documentation for any recommendation; and 3 referring the', 24710:'matter to the appropriate criminal investigative organization for review and for appropriate coordination of remedies, if there is evidence that', 24711:'the contractor knowingly submitted unallowable costs. 42.7094assessing the penalty. unless a waiver is granted pursuant to 42.7096, thecognizant contracting officer', 24712:'shall a assess the penalty in 42.7092a1, when the submitted cost is expressly unallowable under a cost principle in the', 24713:'far or an executive agency supplement that defines the allowability of specific selectedcosts; or b assess the penalty in 42.7092a2,', 24714:'when the submitted cost was determined to be unallowable for that contractor prior to submission of the proposal. prior determinations', 24715:'of unallowability may be evidenced by 1 a dcaa form1, notice of contract costs suspended and/or disapproved see 48 cfr', 24716:'242.7052, or any similar notice which the contractor elected not to appeal and was not withdrawn by the cognizant government', 24717:'agency; 2 a contracting officerfinal decision which was not appealed; 3 a prior executiveagency board of contract appeals or court', 24718:'decision involving the contractor,which upheld the cost disallowance; or 4 a determination or agreement of unallowability under 31.2016. c issue', 24719:'a final decision see 33.211 which includes a demand for payment of any penalty assessed under paragraph a or b', 24720:'of this section. the letter shall state that the determination is a final decision under the disputes clause of the', 24721:'contract. demanding payment of the penalty is separate from demanding repayment of any paid portion of the disallowed cost. 42.7095', 24722:'federal acquisition regulation 42.7095computing interest. for 42.7092a1ii, compute interest on any paid portion of the disallowed cost as follows: a', 24723:'consider the overpayment to have occurred, and interest to have begun accumulating, from the midpoint of the contractor’s fiscal year.', 24724:'use an alternate equitable method if the cost was not paidevenly over thefiscalyear. b use the interest rate specified bythe', 24725:'secretary of the treasury pursuant to pub.l.9241 85 stat. 97. c compute interest from the date of overpaymentto the date', 24726:'of the demand letter for payment of the penalty. d determine the paid portion ofthe disallowedcosts in consultation with thecontract', 24727:'auditor. 42.7096waiver ofthe penalty. the cognizant contracting officer shall waive the penalties at 42.7092a when— a the contractor withdraws the', 24728:'proposal before the government formally initiates an audit of the proposal and the contractor submits a revised proposal an audit', 24729:'will be deemed to be formally initiated when the government provides the contractor with written notice, or holds an entrance', 24730:'conference, indicating that audit work on a specific final indirect cost proposal has begun; b the amount of the unallowable', 24731:'costs under the proposal which are subject to the penalty is $10,000 or less i.e., if the amount of expressly', 24732:'or previously determined unallowable costs which would be allocated to the contracts specified in 42.7091b is $10,000 or less; or', 24733:'c thecontractor demonstrates, to the cognizant contractingofficer’s satisfaction, that 1 it has established policies and personnel training and an internal', 24734:'control and review system that provide assurance that unallowable costs subject to penalties are precluded from beingincluded inthe contractor’s final', 24735:'indirect cost rate proposals e.g., the types of controls required for satisfactory participation in the department of defense sponsored self', 24736:'governance programs, specific accounting controls over indirect costs, compliance tests which demonstrate that the controls areeffective, and government auditswhich have', 24737:'not disclosed recurring instances of expressly unallowable costs; and 2 the unallowable costs subject to the penalty were inadvertently incorporated', 24738:'into the proposal; i.e., their inclusion resulted from anunintentional error, notwithstanding the exercise of duecare. 42.7097 contract clause. use the', 24739:'clause at 52.2423, penalties for unallowable costs, in all solicitations and contracts over $800,000 except fixedprice contracts without cost incentives', 24740:'or any firmfixedprice contract for the purchase of commercial products or commercial services. generally, covered contractsare thosewhich contain one of', 24741:'theclauses at 52.2167, 52.21616, or 52.21617, or a similar clause from an executiveagency’s supplement to the far. subpart 42.8 disallowance', 24742:'of costs 42.803 subpart 42.8 disallowance of costs 42.800scope of subpart. this subpart prescribes policies and procedures for a issuing', 24743:'notices of intent to disallow costs; and b disallowing costs already incurred during the course of performance. 42.801notice of intent', 24744:'to disallow costs. a at any time during the performance of a contract of a type referred to in 42.802,', 24745:'the cognizant contracting officer responsible for administering the contract may issue the contractor a written notice of intent to disallow', 24746:'specified costs incurred orplanned for incurrence. however,before issuing the notice, the contracting officer responsible for administering thecontract shall makeevery reasonable', 24747:'effort to reach asatisfactory settlement through discussions with the contractor. b a notice of intent to disallow such costs usually', 24748:'results from monitoring contractor costs. the purpose of the notice is to notify the contractor as early as practicable during', 24749:'contract performance that the cost is considered unallowable under the contract terms and to provide for timely resolution of any', 24750:'resulting disagreement. in the event of disagreement, the contractor may submit to the contracting officer a writtenresponse. any suchresponse shall', 24751:'be answered bywithdrawal of the notice or by making a written decision within 60 days. c as a minimum, the', 24752:'notice shall 1 refer to the contract’s notice of intent to disallow costs clause; 2 state the contractor’s name and', 24753:'list the numbersof the affectedcontracts; 3 describe the costs to be disallowed, including estimated dollar value by item and applicable', 24754:'time periods, and state the reasons for the intended disallowance; 4 describe the potential impact on billing rates and forward', 24755:'pricing rate agreements; 5 state the notice’seffective date and the date by which written responsemust be received; 6 list the', 24756:'recipients of copies of the notice; and 7 request the contractor to acknowledge receipt of the notice. d the contractingofficer', 24757:'issuingthe notice shall furnish copiesto all contracting officers cognizant ofany segment of thecontractor’sorganization. e if the notice involves elements of', 24758:'indirect cost, it shall not beissuedwithout coordinationwith the contracting officer or auditor having authority for final indirect cost settlement see', 24759:'42.705. f in the event the contractor submits a response that disagrees with the notice see paragraph b of this', 24760:'section, the contracting officerwho issued the noticeshalleither withdraw thenotice or issue the written decision,exceptwhen elements of indirect cost are involved,', 24761:'in which case the contracting officerresponsible under 42.705 for determining final indirect cost rates shall issue the decision. 42.802contract clause.', 24762:'the contractingofficer shall insertthe clause at 52.2421, notice of intent to disallow costs, in solicitations and contracts when a costreimbursement', 24763:'contract, a fixedprice incentive contract, or a contract providing for price redetermination is contemplated. 42.803 disallowing costs after incurrence. costreimbursement', 24764:'contracts, the costreimbursement portion of fixedprice contracts, letter contracts that provide for reimbursement of costs, and timeandmaterial and laborhour contracts', 24765:'provide for disallowing costs during the course of performance after the costs have been incurred. the following procedures shall apply:', 24766:'a contracting officer receipt of vouchers. when contracting officers receive vouchers directly from the contractor and, with or without auditor', 24767:'assistance, approve or disapprove them, the process shall be conducted in accordance with the normal procedures ofthe individual agency. b', 24768:'auditor receipt of vouchers. 1 when authorized by agency regulations, the contract auditor may be authorized to i receive reimbursement', 24769:'vouchers directly from contractors, ii approve for payment those vouchers found acceptable, and iiisuspend payment of questionable costs. the auditor', 24770:'shall forward approved vouchers for payment to the cognizant contracting, finance, or disbursing officer,as appropriate under the agency’s procedures. 2', 24771:'if the examination of a voucher raises a question regarding the allowability of a cost under the contract terms, the', 24772:'auditor, afterinformal discussion as appropriate, may, where authorized by agencyregulations, issuea notice of contract federal acquisition regulation costs suspended and/or', 24773:'disapproved simultaneously to the contractor and thedisbursingofficer, with a copyto thecognizant contracting officer, for deduction from currentpayments with respect to', 24774:'costs claimed but not considered reimbursable. 3 if the contractor disagrees with the deduction from current payments, the contractor may', 24775:'isubmit a written requestto thecognizant contracting officer to consider whether the unreimbursed costsshould be paid and to discuss the findings', 24776:'with the contractor; iifile aclaim under the disputes clause, which the cognizant contractingofficer will processin accordance with agency procedures; or', 24777:'iii do both of the above. subpart 42.9 bankruptcy 42.903 subpart 42.9 bankruptcy 42.900scope of subpart. this subpart prescribes policies', 24778:'and procedures regarding actions to be taken when a contractor enters into proceedings relating to bankruptcy. it establishes arequirementforthe contractor', 24779:'to notifythe contracting officerupon filing a petition for bankruptcy. it further establishesminimum requirementsforagencies tofollow in the event of a contractor', 24780:'bankruptcy. 42.901general. the contract administration office shall take prompt action to determine the potential impact of a contractor bankruptcy on', 24781:'the government in order to protect the interests of the government. 42.902 procedures. a when notified of bankruptcy proceedings, agencies', 24782:'shall, as a minimum 1 furnishthe notice of bankruptcy tolegal counsel and other appropriate agency officese.g., contracting, financial, property and', 24783:'affected buying activities; 2 determine the amount ofthe government’s potential claim against the contractorin assessing this impact, identify and review', 24784:'any contracts that have not been closed out, including those physically completed or terminated; 3 takeactions necessaryto protect thegovernment’s financial', 24785:'interests and safeguard government property; and 4 furnish pertinent contract information to the legal counsel representing the government. b the', 24786:'contractingofficer shall consult with legal counsel, whenever possible,prior to taking any action regarding the contractor’s bankruptcyproceedings. 42.903 solicitation provision and', 24787:'contract clause. the contractingofficer shall insertthe clause at 52.24213,bankruptcy, in all solicitations and contracts exceeding the simplified acquisition threshold. this', 24788:'page intentionally left blank. 42.92 subpart 42.10 [reserved] subpart 42.10 [reserved] this page intentionally left blank. 42.102 subpart 42.11 production', 24789:'surveillance and reporting 42.1105 subpart 42.11 production surveillance and reporting 42.1101 general. production surveillance is a function of contract administration', 24790:'used to determine contractor progress and to identify any factors that may delay performance. production surveillance involves government review and', 24791:'analysis of a contractor performance plans, schedules, controls, and industrial processes; and b the contractor’s actual performance under them. 42.1102', 24792:'applicability. this subpart applies to all contracts for supplies or services other than construction contracts, and federal supply schedule contracts.', 24793:'see part 37, especially subpart 37.6, regarding surveillance of contracts for services. 42.1103 policy. the contractor is responsible for timely', 24794:'contract performance. the government will maintain surveillance of contractor performanceas necessary to protect its interests. when the contractingoffice retainsa contract', 24795:'for administration, the contracting officeradministering thecontract shall determine theextent of surveillance. 42.1104 surveillance requirements. a thecontract administration officedeterminesthe extent of', 24796:'production surveillance on the basis of 1 the criticality degree ofimportance to the government assigned by the contracting officer see', 24797:'42.1105 to the supplies or services; and 2 consideration of the following factors: i contract requirements for reporting production progress', 24798:'and performance. ii the contract performance schedule. iii the contractor’s productionplan. iv the contractor’s historyof contractperformance. v the contractor’s experiencewith', 24799:'the contract supplies or services. vi the contractor’s financial capability. vii anysupplementarywritten instructionsfrom the contracting office. b contracts at or', 24800:'below the simplified acquisition threshold should not normally require production surveillance. c inplanning and conducting surveillance,contract administration offices shall make', 24801:'maximum use of anyreliable contractor production control or data management systems. d in performing surveillance,contract administration officepersonnel shall avoid any', 24802:'action that may 1 be inconsistent with any contract requirement; or 2 result in claims of waivers, of changes, or', 24803:'of other contract modifications. 42.1105 assignmentof criticalitydesignator. contracting officersshallassigna criticality designator to each contract in the space for designatingthe contract', 24804:'administration office, as follows: criticality designator criterion a critical contracts, including dxrated contracts see subpart 11.6, contracts citing the authority', 24805:'in 6.3022 unusual and compelling urgency, and contracts for major systems. b contracts other than those designated a for items', 24806:'needed to maintain a government or contractor production or repair line, to preclude outofstock conditions or to meet user needs', 24807:'for nonstock items. c all contracts other than those designated a or b. 42.1106 federal acquisition regulation 42.1106 reporting requirements.', 24808:'a when information on contract performance status is needed,contracting officers mayrequire contractors to submit production progress reports see 42.1107a. reporting', 24809:'requirements shall be limited to that information essential to government needs and shall take maximum advantage of data output generated', 24810:'by contractor management systems. b contractadministration offices shall review and verify theaccuracy of contractorreports and advise the contracting officer ofanyrequired', 24811:'action. the accuracyof contractorprepared reports shall beverified eitherby a program of continuous surveillance of the contractor’s reportpreparation system orby individual', 24812:'review of each report. c thecontract administration officemay atanytime initiate a report to advisethe contracting officer and the inventory manager,', 24813:'if one is designated inthe contractof any potential or actualdelay in performance. this advice shall 1 be in writing; 2', 24814:'be provided in sufficienttime for the contracting officer to take necessaryaction; and 3 provide a definite recommendation, if action is', 24815:'appropriate. 42.1107 contract clause. a thecontracting officer shall insert the clause at 52.2422, production progress reports, in solicitations and contracts', 24816:'when production progress reporting is required; unless a construction contract, or a federal supply schedule contract is contemplated. b when', 24817:'the clause at 52.2422 isused, the contracting officer shall specify appropriate reporting instructions in the schedule see 42.1106a. subpart 42.12', 24818:'novation and changeofname agreements 42.1203 subpart 42.12 novation and changeofname agreements 42.1200 scope of subpart. this subpart prescribes policies and', 24819:'procedures for a recognition of a successor in interest to government contracts when contractor assets are transferred; b recognition of', 24820:'a change in a contractor’s name; and c execution of novation agreements and changeofname agreements by the responsible contracting officer.', 24821:'42.1201 [reserved] 42.1202 responsibility for executingagreements. the contractingofficer responsible for processing and executing novationand changeofname agreements shall be determined as', 24822:'follows: a if any of theaffected contracts held by the transferor have been assigned toan administrative contracting officer aco see', 24823:'2.1 and 42.202, the responsible contractingofficer shall be 1 this aco; or 2 the aco responsible for thecorporate office, if', 24824:'affected contracts arein more than one plantor division of the transferor. b if none of the affected contracts heldby the', 24825:'transferor have been assigned to an aco, the contractingofficer responsible for the largest unsettled unbilledplus billedbut unpaid dollar balance of', 24826:'contractsshallbe the responsible contracting officer. c if several transferors areinvolved,the responsible contracting officershallbe 1 the aco administeringthe largest unsettleddollarbalance;or 2', 24827:'the contractingofficer or aco designated by the agency having the largest unsettled dollar balance,if none of the affected contractshavebeenassigned to', 24828:'an aco. 42.1203 processing agreements. a if a contractor wishes the government to recognize a successor in interest to its', 24829:'contracts or a name change, the contractor must submita written request to the responsible contractingofficer see 42.1202. if the contractor', 24830:'received its contract under subpart 8.7 under 41 u.s.c. chapter 85, committee for purchase from people who are blind or', 24831:'severely disabled, use the procedures at 8.716 instead. b the responsible contracting officer shall 1 identify and request that the', 24832:'contractor submit the information necessary to evaluate the proposed agreement for recognizing a successor in interest or a name change.', 24833:'this information should include the items identified in 42.1204e and f or 42.1205a, as applicable; 2 notify eachcontract administration officeandcontracting', 24834:'office affectedby a proposed agreement for recognizing a successor ininterest, and providethose offices with alist of all affected contracts; and', 24835:'3 request submission of any comments or objections to the proposed transfer within 30 days after notification. any submission should', 24836:'be accompanied by supporting documentation. c upon receiptof the necessary information, the responsible contracting officer shall determine whether or notitis', 24837:'in the government’s interestto recognize the proposed successor in interest onthe basis of 1 the comments received from the affectedcontract', 24838:'administration offices and contracting offices; 2theproposedsuccessor’sresponsibilityunder subpart 9.1, responsible prospective contractors; and 3 any factor relating to the proposed successor’s', 24839:'performance of contracts with thegovernment that the government determines would impair the proposed successor’sability toperform the contract satisfactorily. d the', 24840:'execution of a novation agreement does not preclude the use of any other method available to the contracting officer to', 24841:'resolve any other issues related toa transfer of contractor assets, including thetreatmentof costs. e any separate agreement between the transferor', 24842:'and transferee regarding the assumption of liabilities e.g., longterm incentive compensation plans, cost accounting standards noncompliances, environmental cleanup costs, and', 24843:'final overhead costs should be referenced specifically in the novation agreement. f beforenovation and changeofnameagreements are executed, the responsible contracting', 24844:'officer shall ensure that government counsel has reviewed them for legal sufficiency. g the responsible contracting officer shall 42.1204 federal', 24845:'acquisition regulation 1 forward a signed copy of the executed novation or changeofname agreement to the transferor and to the', 24846:'transferee; and 2 retain a signed copy in the case file. h following distribution of the agreement, theresponsible contracting officer', 24847:'shall 1 prepare a standard form 30, amendment of solicitation/modification of contract, incorporating a summary of the agreementandattaching a complete', 24848:'listof contracts affected; 2 retain the original standard form 30 with the attached list in the case file; 3 send', 24849:'a signed copy of the standard form 30, with attached list to the transferor and to the transferee; and 4', 24850:'send a copy of this standard form 30 withattachedlist toeach contract administration office or contracting office involved, which shall be', 24851:'responsible for further appropriate distribution. 42.1204 applicability of novation agreements. a 41 u.s.c.6305prohibits transferof government contracts from the contractorto a', 24852:'third party. the government may, when in its interest, recognize a third party as the successorin interest toa government contract', 24853:'when the third party’s interest in the contract arises out of the transfer of 1 all the contractor’s assets; or', 24854:'2 the entire portion of the assets involved in performing the contract. see 14.4042l for theeffect of novation agreements after', 24855:'bid opening but before award. examples of such transactions include, but are not limited to i sale of these assets', 24856:'with a provision for assuming liabilities; iitransferof theseassetsincidentto a merger or corporate consolidation; and iii incorporation of a proprietorship or', 24857:'partnership, or formation of a partnership. b a novation agreement is unnecessary when there is a change in the ownership', 24858:'of a contractor as a result of a stock purchase, withno legal change in the contracting party,andwhen that contracting partyremains', 24859:'incontrol of the assets and is the party performing the contract. however, whether there isa purchase of assets ora stock', 24860:'purchase,there may be issues related to the change in ownership that appropriately should be addressed in a formal agreement between', 24861:'the contractor and the government see 42.1203e. c when it is in the government’s interest not to concur in the', 24862:'transfer ofa contract from one company toanother company, the original contractor remainsunder contractualobligation tothe government, and thecontract maybe terminated for', 24863:'reasons of default, should the original contractor not perform. d when considering whether to recognize a third party as a', 24864:'successor in interest to government contracts, the responsible contracting officershallidentify and evaluate any significantorganizational conflicts of interest in accordance with', 24865:'subpart 9.5.if the responsiblecontracting officer determines thata conflict ofinterest cannot be resolved, but that it is in the best interest', 24866:'of the government to approve the novation request, a request for a waiver may be submitted in accordance with the', 24867:'procedures at 9.503. e when a contractor asks the government to recognize a successor in interest, the contractor shall submit', 24868:'to the responsible contracting officerthree signed copiesof the proposednovation agreement and one copy each, as applicable, of the following: 1', 24869:'the document describing the proposed transaction, e.g., purchase/sale agreement or memorandum of understanding. 2 a listof all affected contracts between', 24870:'the transferor andthe government, as of the date ofsale or transfer of assets, showing for each, as of that date,', 24871:'the i contract number and type; iiname and address of thecontracting office; iii total dollar value, as amended; and iv', 24872:'approximate remaining unpaid balance. 3 evidenceof the transferee’s capability to perform. 4 any other relevant information requested by theresponsible contracting', 24873:'officer. f except as provided in paragraphgof this section, the contractor shall submitto theresponsible contracting officer one copy of each', 24874:'of the following documents, as applicable, as the documents become available: 1 an authenticated copy of the instrumenteffecting the transfer', 24875:'ofassets; e.g., bill ofsale,certificate of merger, contract, deed, agreement, or court decree. 2 a certified copy of each resolution of', 24876:'the corporate parties’ boards of directors authorizing the transfer of assets. 3 a certified copy of theminutes of eachcorporate party’s', 24877:'stockholdermeeting necessary to approvethe transfer of assets. subpart 42.12 novation and changeofname agreements 42.1204 4 an authenticated copy of the', 24878:'transferee’s certificate andarticlesof incorporation, if a corporation was formed for the purpose of receiving the assets involved in performing the', 24879:'government contracts. 5 the opinion of legal counselforthe transferorand transfereestating that the transferwas properly effected under applicable law and the', 24880:'effective date of transfer. 6 balance sheets of the transferor and transferee as of the dates immediately before and after', 24881:'the transfer of assets, audited by independent accountants. 7 evidence that any security clearance requirements have been met. 8 the', 24882:'consent of sureties on all contracts listed under paragraph e2 of this section if bonds are required, or a statement', 24883:'from the transferor that none are required. g if the government has acquired the documents during its participationin thepremerger or', 24884:'preacquisition review process,or the government’s interests areadequately protected with analternativeformulation of the information, the responsible contracting officermay modify the list', 24885:'of documents tobe submitted by the contractor. h when recognizinga successor in interestto a government contract is consistent with the', 24886:'government’s interest,the responsible contracting officershallexecutea novationagreement with the transferor and the transferee. it shall ordinarily provide in part that 1', 24887:'the transferee assumesallthe transferor’s obligations underthe contract; 2 the transferor waives all rights under the contract against the government; 3', 24888:'the transferor guarantees performance of the contract by the transferee a satisfactory performance bond may be accepted instead of the', 24889:'guarantee; and 4 nothing inthe agreement shall relievethe transferoror transferee fromcompliance with any federal law. ithe responsible contracting officer shall', 24890:'use thefollowing format for agreements when thetransferor and transferee are corporations and all the transferor’s assets are transferred. this format', 24891:'may be adapted to fit specific cases and may be used as a guide in preparing similar agreements for other', 24892:'situations. novation agreement the abc corporationtransferor, a corporation dulyorganized and existing under the laws of [insert state] with its principal', 24893:'office in [insert city]; the xyz corporation transferee,[if appropriate add formerly known as the efg corporation] a corporation duly organized', 24894:'and existing under the laws of [insert state] with itsprincipal officein [insert city]; and the united states of america government', 24895:'enter into this agreement as of [insert the date transfer of assets became effective under applicable state law]. a the', 24896:'parties agree to the following facts: 1 the government, represented by various contracting officers of the [insert names of agencyies],', 24897:'has entered into certain contracts with the transferor,namely: [insert contract or purchase order identifications]; [or delete namely and insert as', 24898:'shown in the attached list marked ‘exhibit a’ and incorporated in this agreement by reference.]. the term the contracts, as', 24899:'used in this agreement, means the above contracts and purchase orders and all other contracts and purchase orders, including all', 24900:'modifications, made between the government and the transferor before the effective date of thisagreement whether or not performance and paymenthavebeencompleted', 24901:'and releases executed ifthe government or the transferor has any remaining rights, duties, orobligations under these contracts and purchase orders.', 24902:'included in the term the contracts are also all modifications made under the terms and conditions of these contracts andpurchase', 24903:'orders between the government and thetransferee, on orafter the effective date of this agreement. 2 asof , 20, the transferor', 24904:'has transferredto thetransferee all the assets of thetransferor by virtue of a [insert term descriptive of the legal transaction involved]', 24905:'between the transferor and the transferee. 3 the transferee has acquired all the assets of thetransferor by virtue of the', 24906:'above transfer. 4 the transferee has assumedall obligations and liabilities of the transferor under the contracts by virtue of the', 24907:'above transfer. 5 the transferee is in a position tofullyperform allobligations that may exist under the contracts. 6 it is', 24908:'consistent with the government’s interestto recognizethe transferee as the successor party to the contracts. 7 evidence of the above transfer', 24909:'has been filed with the government. [when a change of name is also involved; e.g.,a prior or concurrent change of', 24910:'the transferee’s name, an appropriate statement shall be inserted see example in paragraph8 of this agreement]. 8 a certificate dated', 24911:', 20, signed by the secretary of state of [insert state], tothe effect that the corporate name of efg corporation', 24912:'was changed to xyz corporation on , 20, has been filed with the government. 42.1204 federal acquisition regulation b in', 24913:'consideration of these facts, the parties agree that by this agreement 1 the transferor confirmsthe transfer to the transferee, and', 24914:'waives any claims and rightsagainst thegovernment that it now has or may have in the future in connection with the', 24915:'contracts. 2 the transferee agreesto bebound by and toperformeach contract in accordance with the conditions contained in thecontracts. the transferee', 24916:'alsoassumes all obligations and liabilities of, and all claims against,the transferor under the contracts asif the transferee were theoriginal party', 24917:'to the contracts. 3 the transferee ratifies all previousactions taken by the transferor with respectto thecontracts, withthe same force and', 24918:'effect as if the action had been takenby the transferee. 4 the government recognizes the transferee asthe transferor’s successor ininterest', 24919:'in and tothe contracts. the transferee by this agreement becomes entitled to all rights, titles, and interestsof the transferor in', 24920:'and to the contracts as if thetransferee were the original party to the contracts. followingthe effective date of this agreement,the', 24921:'term contractor, as used in the contracts, shall refer to the transferee. 5 except as expressly provided in this agreement,', 24922:'nothing in it shall be construed as a waiver of any rights of the government against the transferor. 6 all', 24923:'payments and reimbursements previously made bythe government to the transferor, and all other previous actions taken by the governmentunder thecontracts,shallbe', 24924:'consideredto have discharged those parts ofthe government’s obligations under the contracts. all payments and reimbursements made by the government after', 24925:'the date of this agreement in the name ofor to the transferor shall have the sameforce and effect as if', 24926:'made tothe transferee, and shall constitute a complete discharge ofthe government’s obligationsunder thecontracts,to the extent of theamountspaid or reimbursed. 7', 24927:'the transferor and the transferee agree thatthe government isnot obligated to pay or reimburse either ofthem for, or otherwise give', 24928:'effect to, any costs, taxes, or other expenses, or any related increases,directlyor indirectlyarising out of or resulting from the transfer', 24929:'or this agreement, other than those that the government in the absence of this transfer or agreement would have been', 24930:'obligated to pay or reimburse under the terms of the contracts. 8 the transferor guarantees payment of all liabilities andthe', 24931:'performanceof all obligationsthat thetransferee i assumes under this agreement; or iimay undertake in the future should these contracts be modified', 24932:'under their terms andconditions. the transferor waives notice of, and consents to, any such future modifications. 9 the contractsshallremainin fullforce', 24933:'and effect, except as modifiedby this agreement. each party has executed this agreement as of the day and year first', 24934:'above written. united states of america, by title abc corporation, by title [corporate seal] xyz corporation, by title [corporate seal]', 24935:'certificate i, , certify that i am the secretary of abc corporation, that , who signed this agreement for this', 24936:'corporation, was then of this corporation; and that this agreement was duly signed for and on behalf of this corporation', 24937:'by authority of its governing body andwithin thescope of its corporate powers. witness my hand and the seal of this', 24938:'corporation this day of 20 . by [corporate seal] certificate i, , certify that i am the secretary of xyz', 24939:'corporation, that , who signed this agreement for this corporation, was then of this corporation; and that this agreement was', 24940:'duly signed for and on behalf of thiscorporation by authority of its governing bodyandwithin the scope of its corporate powers.', 24941:'witness my hand and the seal of this corporation this day of 20. by subpart 42.12 novation and changeofname agreements', 24942:'42.1205 [corporate seal] 42.1205 agreement to recognize contractor’s changeof name. a if onlya change of the contractor’sname is involved and', 24943:'the government’sandcontractor’srights and obligations remain unaffected, the partiesshallexecutean agreement to reflect the name change. the contractor shall forward to the', 24944:'responsible contracting officerthree signed copiesof the changeofname agreement,and one copyeach of thefollowing: 1 the documenteffectingthe name change,authenticated by a proper', 24945:'official of thestate having jurisdiction. 2 the opinion of the contractor’s legal counsel stating that the change of name was', 24946:'properly effected under applicable law and showing the effective date. 3 a listof all affected contracts and purchase orders remaining', 24947:'unsettled between the contractor and the government, showing for eachthe contract number and type, and name and address of the', 24948:'contracting office. thecontracting officer may request the total dollar value as amended and the remaining unpaid balance for each contract.', 24949:'b the following suggested format for an agreement may be adapted for specific cases: changeofname agreement the abc corporationcontractor, acorporation', 24950:'duly organized and existing under the lawsof [insert state], and the united states of america government, enter into this agreement', 24951:'as of [insert date when the change of name became effective under applicable state law]. a the parties agree to', 24952:'the following facts: 1 the government, represented by various contracting officers of the [insert names of agencyies], has entered into', 24953:'certain contracts and purchase orders with the xyz corporation, namely: [insert contract or purchase order identifications]; [or delete namely and', 24954:'insert as shown in the attached list marked exhibit a and incorporated in this agreement by reference.]. the term the', 24955:'contracts, as used in this agreement, means the above contracts and purchase orders and all other contracts and purchase orders,', 24956:'including all modifications, made by the government and the contractorbefore theeffective date ofthis agreement whether or notperformance and payment have', 24957:'been completed and releases executed if the government or the contractor has any remaining rights, duties, or obligations under these', 24958:'contracts and purchase orders. 2 the xyz corporation, by an amendment to its certificate of incorporation, dated 20, has changed', 24959:'its corporate name to abc corporation. 3 this amendment accomplishes a change of corporate name only and all rights and', 24960:'obligations of the government and of the contractor under the contracts are unaffected by this change. 4 documentary evidence of', 24961:'this change of corporate name has been filed with the government. b in consideration of these facts, the parties agree', 24962:'that 1 the contracts covered by this agreement are amended by substituting the name abc corporation for the name xyz', 24963:'corporation wherever it appears in the contracts; and 2 each party has executed this agreement as of the day and', 24964:'year first above written. united states of america, by title abc corporation, by title [corporate seal] certificate i, , certify', 24965:'that i am the secretary of abc corporation; that , who signed this agreement for this corporation, was then of', 24966:'this corporation; and that this agreement was duly signed for and on behalf of this corporation by authority of its', 24967:'governing body and within the scope of its corporatepowers. witnessmy handandthe seal of this corporation this day of 20. by', 24968:'[corporate seal] this page intentionally left blank. 42.126 subpart 42.13 suspension of work, stopwork orders, and government delay of work', 24969:'42.1305 subpart 42.13 suspension of work, stopwork orders, and government delay of work 42.1301 general. situations may occur during contract', 24970:'performance that cause the government to order a suspension of work, or a work stoppage. this subpart provides clauses to', 24971:'meet these situations and a clause for settling contractor claims for unordered government caused delays that are not otherwise covered', 24972:'in the contract. 42.1302 suspension of work. a suspensionof work under a constructionor architectengineer contract may be ordered by thecontracting', 24973:'officer for a reasonable period of time. if the suspension is unreasonable, the contractor may submit a written claim for', 24974:'increases in the cost of performance, excluding profit. 42.1303 stopwork orders. a stopwork orders may beused, when appropriate, in anynegotiated', 24975:'fixedprice or costreimbursement supply, research and development, or service contract if work stoppage may be required for reasons such as', 24976:'advancement in the stateoftheart, production or engineering breakthroughs, or realignment of programs. b generally,a stopwork orderwill be issued only if', 24977:'it is advisable to suspend work pending a decision bythe government and a supplemental agreement providing for the suspension is', 24978:'not feasible. issuance of a stopwork order shall beapproved at a level higher than thecontracting officer. stopwork orders shall not', 24979:'beused inplace of a termination notice after a decision to terminate has been made. c stopwork orders should include 1', 24980:'a description of the work to be suspended; 2 instructions concerning the contractor’s issuance of further orders for materialsor services;', 24981:'3 guidance to the contractor on action to be taken on any subcontracts; and 4 other suggestions to the contractor', 24982:'for minimizing costs. d promptly after issuing thestopwork order, the contracting officer should discussthe stopwork order with the contractor and', 24983:'modify the order, if necessary, inlight of the discussion. e as soon as feasible after a stopwork order is issued,', 24984:'but before its expiration,the contracting officer shall take appropriate action to 1 terminate thecontract; 2 cancel the stopwork order any', 24985:'cancellation of a stopwork order shall be subject to the same approvals as were required for its issuance; or 3', 24986:'extend the period of the stopwork order if it is necessary and if the contractor agrees any extension of the', 24987:'stop work order shall be by a supplemental agreement. 42.1304 government delay of work. a the clause at 52.24217, government', 24988:'delay of work, provides for the administrative settlementof contractor claims that arisefrom delays and interruptions in the contract work causedby', 24989:'the acts, orfailures toact, of the contracting officer. this clause is not applicable if the contract otherwise specifically provides for', 24990:'an equitable adjustment because of the delay or interruption; e.g., when the changes clause is applicable. b the clause doesnot', 24991:'authorize the contracting officer to order a suspension, delay, or interruption of the contract work and it shall not be', 24992:'used asthe basis orjustification of such an order. c if the contracting officerhas noticeof an unordered delay or interruption covered', 24993:'bythe clause,the contracting officer shall act to end the delay or take other appropriate action as soon as practicable. d', 24994:'the contractingofficer shall retain inthe file arecord of all negotiations leading to any adjustmentmadeunder the clause, and related certified cost', 24995:'or pricing data, or data other than certified cost or pricing data. 42.1305 contract clauses. a thecontracting officer shall insert', 24996:'the clause at 52.24214, suspension of work, insolicitationsand contracts when a fixedprice construction or architectengineer contract is contemplated. b 1thecontractingofficermay,whencontractingbynegotiation,inserttheclauseat', 24997:'52.24215,stopworkorder,in solicitations and contracts for supplies, services, or research and development. 2 if a costreimbursement contract is contemplated, the contracting', 24998:'officer shall use theclause with itsalternatei. 42.1305 federal acquisition regulation c thecontracting officer shall insert the clause at 52.24217, government', 24999:'delay of work, in solicitations and contracts when a fixedprice contract is contemplated for supplies other than commercial or modifiedcommercial', 25000:'products. the clause use is optional when a fixedprice contract is contemplated for services, or for supplies that are commercial', 25001:'or modified commercial products. subpart 42.14 [reserved] subpart 42.14 [reserved] this page intentionally left blank. 42.142 subpart 42.15 contractor performance', 25002:'information 42.1502 subpart 42.15 contractor performance information 42.1500 scope of subpart. this subpart provides policies and establishes responsibilities for recording', 25003:'and maintaining contractor performance information. this subpart does not apply to procedures used by agencies in determining fees under award', 25004:'or incentive fee contracts. see subpart 16.4. however, the fee amount paid tocontractors should bereflectiveof the contractor’s performance and the', 25005:'past performance evaluation should closely parallel and be consistent with the fee determinations. 42.1501 general. a past performance information including', 25006:'the ratings and supporting narratives is relevant information, for future source selection purposes, regardinga contractor’s actions under previously awardedcontracts or', 25007:'orders. itincludes, for example, the contractor’s recordof 1 conforming to requirements and to standards of good workmanship; 2 forecasting and', 25008:'controlling costs; 3 adherence to schedules, including the administrative aspects of performance; 4 reasonable and cooperative behavior and commitment to', 25009:'customer satisfaction; 5 complying with the requirements of the small business subcontracting plan see 19.7057b; 6 reporting into databases see', 25010:'subpart 4.14, and reporting requirements in the solicitation provisions and clauses referenced in 9.1047; 7 integrity and business ethics; and', 25011:'8 businesslikeconcern for the interest of the customer. b agencies shall monitor their compliance with the past performance evaluation requirements', 25012:'see 42.1502, and use the contractor performance assessment reporting system cparsmetric toolsto measure the quality and timely reporting of past', 25013:'performanceinformation. cpars is the official source for past performance information. 42.1502 policy. a general. past performance evaluations shall be prepared', 25014:'at least annually and at the time the work under a contract or order is completed. past performance evaluations are', 25015:'required for contracts and orders as specified in paragraphs b through f of this section, including contracts and orders performed', 25016:'outside the united states. these evaluations are generally for theentity, division, or unit thatperformed the contractor order. past performance information', 25017:'shall be entered into cpars, the governmentwide evaluation reporting tool for all past performance reports on contracts and orders. instructions', 25018:'for submitting evaluations into cpars are available at http://www.cpars.gov/. b contracts. except as provided in paragraphs e, f, and h', 25019:'of this section, agencies shall prepare evaluations of contractorperformanceforeachcontractasdefinedinfar part 2 that exceeds the simplified acquisition threshold and for each', 25020:'order that exceeds the simplified acquisition threshold. agencies are required to prepare an evaluation if a modification to the contract', 25021:'causes the dollar amount to exceed the simplified acquisition threshold. c orders under multipleagency contracts. agencies shall prepare an evaluation', 25022:'of contractor performance for each order that exceeds the simplified acquisition threshold that is placed under a federal supply schedule', 25023:'contract or placed under a taskorder contract or a deliveryorder contract awarded by another agency i.e., governmentwide acquisition contract or', 25024:'multiagency contract. agencies placing orders under their own multipleagency contract shall also prepare evaluations for their own orders. this evaluation', 25025:'shall not consider the requirements under paragraph g of this section. agencies are required to prepare an evaluation if a', 25026:'modification to the order causes the dollar amount to exceed the simplified acquisition threshold. d ordersunder singleagency contracts. for singleagency', 25027:'taskorderanddeliveryorder contracts, the contractingofficer may require performance evaluations for each order in excess of the simplified acquisition threshold when such', 25028:'evaluations would produce more usefulpast performance information for source selectionofficialsthan that contained in the overall contract evaluation e.g., when the', 25029:'scope of the basic contract is very broad and the nature of individual orders could be significantly different. this evaluation', 25030:'need not consider therequirements under paragraph g of thissection unless the contracting officerdeems it appropriate. e past performance evaluations shall', 25031:'be prepared for each construction contract of $750,000 or more, and for each construction contract terminated for default regardless of', 25032:'contract value. past performance evaluations may also be prepared for construction contracts below $750,000. 42.1503 federal acquisition regulation f past', 25033:'performance evaluations shall be prepared for each architectengineer services contract of $35,000 or more, and for each architectengineer services contract', 25034:'that is terminated for default regardless of contract value. past performance evaluations may also be prepared for architectengineer services contracts', 25035:'below $35,000. g past performance evaluations shall include an assessment of the contractors 1 performance against, and efforts to achieve,', 25036:'the goals identifiedin the small business subcontracting plan when the contract includes the clause at 52.2199, small business subcontracting plan;', 25037:'and 2 reduced or untimely payments as defined in 19.701, made to small business subcontractors, determined by the contracting officerto', 25038:'beunjustified. thecontracting officer shall i consider and evaluate a contractors written explanation for a reduced or an untimely payment when', 25039:'determining whether the reduced or untimely payment is justified; and ii determine that a history of unjustified reduced or untimely', 25040:'payments has occurred when the contractor has reported three or more occasions of unjustified reduced or untimely payments under a', 25041:'single contract within a 12month period see 42.1503h1vi and the evaluation ratings in 42.1503 procedures. [for the small business subcontracting', 25042:'evaluationfactor, when 52.2199 is used]. the following payment or nonpayment situations are not considered to be unjustified: a there is', 25043:'a contract dispute on performance. b a partial payment is made for amounts not in dispute. c a payment is', 25044:'reduced due to past overpayments. d there is an administrative mistake. e late performance bythe subcontractor leads to later paymentby', 25045:'the prime contractor. h agencies shall not evaluate performance for contracts awarded under subpart 8.7. i agencies shall promptly report', 25046:'other contractor information in accordance with 42.1503h. 42.1503 procedures. a 1 agencies shall assign responsibility and management accountability for the', 25047:'completeness of past performance submissions. agency procedures for the past performance evaluation system shall igenerallyprovide for input to the evaluations', 25048:'fromthe technical office, contractingoffice, program management office, and where appropriate, quality assurance and end users of the product or service;', 25049:'ii identify and assign past performance evaluation roles and responsibilities to those individuals responsible for preparing and reviewing interim evaluations,', 25050:'if prepared, and final evaluations e.g., contractingofficers, contracting officer representatives, project managers, and program managers. those individuals identified may obtain', 25051:'information for the evaluationof performance from theprogramoffice, administrative contracting office, auditoffice, end users of theproduct or service, andanyothertechnicalor business advisor,', 25052:'asappropriate;and iii address management controls and appropriate management reviews of past performance evaluations, to include accountability for documenting past performance', 25053:'oncpars. 2 if agency procedures do not specify the individuals responsible for past performance evaluation duties, the contracting officeris responsible', 25054:'for this function. 3 interim evaluations may be prepared as required, in accordance with agency procedures. b 1theevaluationshouldincludeaclear,nontechnicaldescriptionoftheprincipalpurposeofthecontractororder. the evaluation', 25055:'should reflect how the contractor performed. the evaluation should include clear relevant information that accurately depicts the contractor’s performance, and', 25056:'bebased on objective facts supported by program andcontract ororder performance data. the evaluations should be tailored to the contract type,', 25057:'size, content, and complexity of the contractual requirements. 2 evaluation factors for each assessment shall include, at a minimum, the', 25058:'following: itechnicalquality ofproduct or service. ii cost control not applicable for firmfixedprice or fixedprice with economic price adjustment arrangements. iii', 25059:'schedule/timeliness. iv management or business relations. v small business subcontracting, including reduced or untimely payments to small business subcontractors when', 25060:'19.702a requires a subcontracting plan as applicable, see 42.1503 procedures. [for the small business subcontracting evaluationfactor, when 52.2199 is used].', 25061:'subpart 42.15 contractor performance information 42.1503 vi otherasapplicable e.g., trafficking violations, tax delinquency, failure to report in accordance with contract', 25062:'terms and conditions, defective cost or pricing data, terminations, suspension and debarments, and failure to comply with limitations on subcontracting.', 25063:'3 evaluation factors may include subfactors. 4 each factor and subfactor used shall be evaluatedanda supportingnarrative provided. each evaluationfactor, as', 25064:'listed in paragraph b2 of this section, shall be rated in accordance with a five scale rating system i.e., exceptional,', 25065:'very good, satisfactory, marginal, andunsatisfactory. the ratingsand narratives must reflect the definitions in the tables 42.1503 procedures. or 42.1503 procedures.', 25066:'[for the small businesssubcontractingevaluation factor, when 52.2199 is used] of this section. c 1 when the contract provides for incentive', 25067:'fees, the incentivefee contract performance evaluation shall be entered into cpars. 2 when the contract provides for award fee, the', 25068:'award feecontract performance adjectival rating as described in 16.401e3 shall be entered into cpars. d agency evaluations of contractor performance,', 25069:'including both negative and positive evaluations, prepared under this subpart shall be provided to the contractor as soon as practicable', 25070:'after completion of the evaluation. the contractor will receive a cparssystem generated notification when an evaluation is ready for comment.', 25071:'contractors shall be afforded up to 14 calendar days from the date of notification of availability of the past performance', 25072:'evaluation to submit comments, rebuttingstatements, or additional information. agencies shall provide for review at a level above thecontracting officer to', 25073:'consider disagreements between the parties regarding the evaluation. the ultimate conclusion on the performance evaluation is a decision of the', 25074:'contracting agency. copiesof the evaluation, contractor response, and review comments, if any,shallbe retained as part of the evaluation. these evaluations', 25075:'may be used to support future award decisions, and should therefore be marked source selection information. evaluation of federal prison', 25076:'industries fpi performance may be used to support a waiver request see 8.604 when fpi is a mandatory source in', 25077:'accordance with subpart 8.6. the completed evaluation shall not be released to other than government personnel and the contractor whose', 25078:'performance is being evaluated during the period the information may be used to provide source selection information. disclosure of such', 25079:'information could cause harm both to the commercial interest of the government and to the competitive position of the contractor', 25080:'being evaluated as well as impede theefficiencyof government operations. evaluations used in determining award or incentive fee payments may also', 25081:'be used to satisfy the requirements of this subpart. a copy of the annual or final past performance evaluation shall', 25082:'be provided to the contractor as soon as it is finalized. e agencies shall require frequent evaluation e.g., monthly, quarterly', 25083:'of agency compliance with thereporting requirements in 42.1502, so agencies can readily identify delinquent past performance reports and monitor their', 25084:'reports for quality control. f agencies shall prepare and submit all pastperformance evaluations electronicallyin cpars at https://www.cpars.gov. these evaluations, including', 25085:'any contractorsubmitted information with indication whether agency review is pending, become available for source selectionofficialsnot later than14 days afterthe date', 25086:'onwhich the contractor is notified of the evaluations availability for comment. the government shall updatecpars withanycontractor comments provided after 14', 25087:'days, as well as any subsequent agency review of comments received. past performance evaluations for classified contracts and special access', 25088:'programs shall not be reported in cpars, but will be reported asstated in this subpart and in accordance with agency', 25089:'procedures. agencies shall ensure that appropriate management and technical controls are in place to ensure that only authorized personnel have', 25090:'access to the data and the information safeguarded in accordance with 42.1503d. g agencies shall usethe past performance information in', 25091:'cpars. that is within threeyears six for construction and architectengineercontractsof the completion of performance of the evaluated contract or order,', 25092:'and information contained in the federalawardee performanceandintegrity information system fapiis, e.g., terminations for default or cause. h other contractor performance', 25093:'information. 1 agencies shall ensure information is accurately reported inthe fapiis module of cpars within 3 calendar days after a', 25094:'contracting officer i issues a final determination that a contractor has submitted defective cost or pricing data; ii makes a', 25095:'subsequent change to the final determination concerning defective cost or pricing data pursuant to 15.4071d; iii issues a final termination', 25096:'for cause or default notice; iv makes a subsequent withdrawal or a conversion of a termination for default to a', 25097:'termination for convenience; v receives a final determination after an administrative proceeding, in accordance with 22.1704d1, that substantiates an allegationof', 25098:'aviolation ofthe trafficking in persons prohibitions in 22.1703a and 52.22250b; or 42.1503 federal acquisition regulation vi determines that a contractor', 25099:'has a history of three or more unjustified reduced or untimely payments to small business subcontractors under a single contract', 25100:'within a 12month period see 42.1502g2. 2 the information to be posted in accordance with this paragraph h is information', 25101:'relating to contractor performance, but does not constitute a pastperformance review, which would be exempted from public availability in accordance', 25102:'withsection 3010 of the supplemental appropriations act, 2010 pub. l. 111212. therefore, all such information posted in fapiis will be', 25103:'publiclyavailable, unless covered by a disclosure exemption under the freedom of information act see 9.1052b2. 3 agencies shall establish cpars', 25104:'focal points who will register users to report data into the fapiis module of cpars available at https://www.cpars.gov/. 4 with', 25105:'regardto information thatmay be coveredby a disclosure exemption underthe freedom of information act, thecontracting officer shall follow the procedures at', 25106:'9.1052b2iv. table 421 evaluation rating definitions rating definition note a exceptional performance meets contractual requirements and exceeds many to the', 25107:'government’s benefit. the contractual performance of the element or sub element being evaluated was accomplished with few minor problems for', 25108:'which corrective actions taken by the contractor were highly effective. to justify an exceptional rating, identify multiple significant events and', 25109:'state how they were of benefit to the government. a singular benefit, however, could be of such magnitude that it', 25110:'alone constitutes an exceptional rating. also, there should have been no significant weaknesses identified. b very good performance meets contractual', 25111:'requirements and exceeds some to the government’s benefit. the contractual performance of the element or subelement being evaluated was accomplished', 25112:'with some minor problems for which corrective actions taken by the contractor were effective. to justify a very good rating,', 25113:'identify a significant event and state how it was a benefit to the government. there should have been no significant', 25114:'weaknesses identified. c satisfactory performance meets contractual requirements. the contractual performance of the element or sub element contains some minor', 25115:'problems for which corrective actions taken by the contractor appear or were satisfactory. to justify a satisfactory rating, there should', 25116:'have been only minor problems, or major problems the contractor recovered from without impact to the contract/order. there should have', 25117:'been no significant weaknesses identified. a fundamental principle of assigning ratings is that contractors will not be evaluated with a', 25118:'rating lower than satisfactory solely for not performing beyond the requirements of the contract/order. d marginal performance does not meet', 25119:'some contractual requirements. the contractual performance of the element or subelement being evaluated reflects a serious problem for which the', 25120:'contractor has not yet identified corrective actions. the contractor’s proposed actions appear only marginally effective or were not fully implemented.', 25121:'to justify marginal performance, identify a significant event in each category that the contractor had trouble overcoming and state how', 25122:'it impacted the government. a marginal rating should be supported by referencing the management tool that notified the contractor of', 25123:'the contractual deficiency e.g., management, quality, safety, or environmental deficiency report or letter. subpart 42.15 contractor performance information 42.1503 rating', 25124:'definition note e unsatisfactory performance does not meet most contractual to justify an unsatisfactory rating, identify requirements and recovery is', 25125:'not likely in a multiple significant events in each category timely manner. the contractual performance of that the contractor had', 25126:'trouble overcoming the element or subelement contains a serious and state how it impacted the government. a problems for which', 25127:'the contractor’s corrective singular problem, however, could be of such actions appear or were ineffective. serious magnitude that it alone', 25128:'constitutes an unsatisfactory rating. an unsatisfactory rating should be supported by referencing the management tools used to notify the contractor', 25129:'of the contractual deficiencies e.g., management, quality, safety, or environmental deficiency reports, or letters. note 1:plus or minussignsmay be used', 25130:'to indicate an improving + or worsening trend insufficient to changethe evaluation status. note 2: n/a not applicable should be', 25131:'used if the ratings are not going to be applied to a particular area for evaluation. table 422 evaluation rating', 25132:'definitions [for the small business subcontracting evaluation factor, when 52.2199 is used] rating definition note a exceptional exceeded all statutory', 25133:'goals or goals as negotiated. to justify an exceptional rating, identify had exceptional success with initiatives to multiple significant events', 25134:'and state how assist, promote, and utilize small business sb, they were a benefit to small business small disadvantaged business', 25135:'sdb, womenutilization. a singular benefit, however, owned small business wosb, hubzone could be of such magnitude that it small business,', 25136:'veteranowned small business constitutes an exceptional rating. small vosb and service disabled veteran owned businesses should be given meaningful small', 25137:'business sdvosb. complied with far and innovative work directly related to the 52.2198, utilization of small business concerns. contract, and', 25138:'opportunities should not be exceeded any other small business participation limited to indirect work such as cleaning requirements incorporated in', 25139:'the contract/ offices, supplies, landscaping, etc. also, order, including the use of small businesses in there should have been no', 25140:'significant mission critical aspects of the program. went weaknesses identified. above and beyond the required elements of the subcontracting plan', 25141:'and other small business requirements of the contract/order. completed and submitted individual subcontract reports and/or summary subcontract reports in an', 25142:'accurate and timely manner. did not have a history of three or more unjustified reduced or untimely payments to small', 25143:'business subcontractors within a 12month period. 42.1503 federal acquisition regulation rating definition note b very good met all of the', 25144:'statutory goals or goals as negotiated. had significant success with initiatives to assist, promote and utilize sb, sdb, wosb, hubzone,', 25145:'vosb, and sdvosb. complied with far 52.2198, utilization of small business concerns. met or exceeded any other small business participation', 25146:'requirements incorporated in the contract/order, including the use of small businesses in mission critical aspects of the program. endeavored to', 25147:'go above and beyond the required elements of the subcontracting plan. completed and submitted individual subcontract reports and/or summary subcontract', 25148:'reports in an accurate and timely manner. did not have a history of three or more unjustified reduced or untimely', 25149:'payments to small business subcontractors within a 12month period. to justify a very good rating, identify a significant event and', 25150:'state how it was a benefit to small business utilization. small businesses should be given meaningful and innovative opportunities to', 25151:'participate as subcontractors for work directly related to the contract, and opportunities should not be limited to indirect work such', 25152:'as cleaning offices, supplies, landscaping, etc. there should be no significant weaknesses identified. c satisfactory demonstrated a good faith effort', 25153:'to meet all of the negotiated subcontracting goals in the various socioeconomic categories for the current period. complied with far', 25154:'52.2198, utilization of small business concerns. met any other small business participation requirements included in the contract/order. fulfilled the requirements', 25155:'of the subcontracting plan included in the contract/ order. completed and submitted individual subcontract reports and/or summary subcontract reports in', 25156:'an accurate and timely manner. did not have a history of three or more unjustified reduced or untimely payments to', 25157:'small business subcontractors within a 12month period. to justify a satisfactory rating, there should have been only minor problems, or', 25158:'major problems the contractor has addressed or taken corrective action. there should have been no significant weaknesses identified. a fundamental', 25159:'principle of assigning ratings is that contractors will not be assessed a rating lower than satisfactory solely for not performing', 25160:'beyond the requirements of the contract/order. d marginal deficient in meeting key subcontracting plan elements. deficient in complying with far', 25161:'52.2198, utilization of small business concerns, and any other small business participation requirements in the contract/order. did not submit individual', 25162:'subcontract reports and/or summary subcontract reports in an accurate or timely manner. failed to satisfy one or more requirements of', 25163:'a corrective action plan currently in place; however, does show an interest in bringing performance to a satisfactory level and', 25164:'has demonstrated a commitment to apply the necessary resources to do so. required a corrective action plan. did not have', 25165:'a history of three or more unjustified reduced or untimely payments to small business subcontractors within a 12month period. to', 25166:'justify a marginal rating, identify a significant event that the contractor had trouble overcoming and how it impacted small business', 25167:'utilization. a marginal rating should be supported by referencing the actions taken by the government that notified the contractor of', 25168:'the contractual deficiency. subpart 42.15 contractor performance information 42.1504 rating definition note e unsatisfactory noncompliant with far 52.2198 and 52.2199,', 25169:'and any other small business participation requirements in the contract/order. did not submit individual subcontract reports and/or summary subcontract reports', 25170:'in an accurate or timely manner. showed little interestin bringing performance to a satisfactory level or is generally uncooperative. required', 25171:'a corrective action plan. had a history of three or more unjustified reduced or untimely payments to small business subcontractors', 25172:'within a 12month period. to justify an unsatisfactory rating, identify multiple significant events that the contractor had trouble overcoming and', 25173:'state how it impacted small business utilization. a singular problem,however, could be of such serious magnitude that it alone constitutes', 25174:'an unsatisfactory rating. an unsatisfactory rating should be supported by referencing the actions taken by the government to notify the', 25175:'contractor of the deficiencies. when an unsatisfactory rating is justified, the contractingofficer must consider whether the contractor made a good', 25176:'faith effort to comply with the requirements of the subcontracting plan required by far 52.2199 and follow the procedures outlined', 25177:'in 52.21916, liquidated damagessubcontracting plan. note 1:plus or minussignsmay be used to indicate an improving + or worsening trend insufficient', 25178:'to change evaluation status. note 2:generally, zero percent is not a goal unless the contracting officer determinedwhen negotiating the subcontracting', 25179:'plan that no subcontracting opportunities exist in aparticular socioeconomic category. in such cases, the contractor shall be considered to have', 25180:'met the goal for any socioeconomic category where the goal negotiated in the plan was zero. 42.1504 contract clause. insert', 25181:'the clause at 52.2425, payments to small business subcontractors, in all solicitations and contracts containing the clause at 52.2199, small', 25182:'business subcontracting plan. this page intentionally left blank. 42.158 subpart 42.16 small business contract administration 42.1601 subpart 42.16 small business', 25183:'contract administration 42.1601 general. the contractingofficer shall make everyreasonable effortto respond in writing within 30 days toanywritten request to the', 25184:'contracting officerfrom a small business concernwith respect toa contract administration matter. inthe event the contracting officercannot respond to the request', 25185:'within the 30day period, the contractingofficer shall,within the period, transmit to the contractor a written notification of thespecific datethe contracting', 25186:'officerexpects torespond. this provision shall not apply to arequest for acontracting officer decision under 41 u.s.c. chapter 71, contract disputes.', 25187:'this page intentionally left blank. 42.162 subpart 42.17 forward pricing rate agreements 42.1701 subpart 42.17 forward pricing rate agreements 42.1701', 25188:'procedures. a negotiation of forward pricingrate agreements fpra’s may berequested bythe contracting officeror the contractor or initiated by the administrative', 25189:'contractingofficer aco. in determining whether or notto establish such an agreement, the aco should consider whether the benefitsto bederived from', 25190:'the agreement are commensurate with the effort of establishing and monitoring it. normally, fpra’s should be negotiated only withcontractors having', 25191:'asignificant volume ofgovernment contract proposals. the cognizant contract administration agency shall determine whether an fpra will be established. b the', 25192:'aco shall obtain the contractor’s forward pricingrate proposal and require that it include cost or pricingdata that are accurate, complete,', 25193:'and current as of the date of submission but see 15.4073c. the aco shall invite the cognizant contract auditorand contracting', 25194:'offices having a significant interest toparticipate in developing agovernment objective and in the negotiations. upon completing negotiations, the aco shall', 25195:'prepare a price negotiation memorandum pnm see 15.4063 and forward copies ofthe pnmandfpra to the cognizant auditor and toallcontracting officesthat', 25196:'areknown to beaffected by the fpra. c the fpra shall provide specific terms and conditions covering expiration, application, and data', 25197:'requirements for systematic monitoring to ensure the validity of the rates. the agreement shall provide for cancellation at the option', 25198:'of either party and shall require the contractor to submit to the aco and to the cognizant contract auditor any', 25199:'significant change in cost or pricing data used to support the fpra. d when an fpra is invalid, the contractor', 25200:'should submit and negotiate a new proposal to reflect the changed conditions. if an fpra has not been established or', 25201:'has been invalidated, the aco will issue a forward pricing rate recommendation fprr to buying activities with documentation to assist', 25202:'negotiators. in the absence of an fpra or fprr, the aco shall include support for rates utilized. e the aco', 25203:'may negotiate continuous updates to the fpra. the fpra will provide specific terms and conditions covering notification, application, and data', 25204:'requirements for systematic monitoring to ensure the validity of the rates. this page intentionally left blank. 42.172 part 43 contract', 25205:'modifications sec. 43.000 scope of part. subpart 43.2 change orders 43.201 general. subpart 43.1 general 43.202 authority to issue change', 25206:'orders. 43.101 definitions. 43.203 change order accounting procedures. 43.102 policy. 43.204 administration. 43.103 types of contract modifications. 43.205 contract clauses.', 25207:'43.104 notification of contract changes. 43.105 availability of funds. subpart 43.3 forms 43.106 [reserved] 43.301 use of forms. 43.107 contract', 25208:'clause. this page intentionally left blank. subpart 43.1 general 43.103 43.000scope of part. this part prescribes policies and procedures for', 25209:'preparing and processing contract modifications for all types of contracts including construction and architectengineer contracts. it does not apply to', 25210:'a orders for supplies or services not otherwise changing the terms of contracts or agreements e.g., delivery orders under indefinitedelivery', 25211:'contracts; or b modifications for extraordinary contractual relief see subpart 50.1. subpart 43.1 general 43.101definitions. as used in this part', 25212:'administrative change means a unilateral see 43.103b contract change,in writing, that does not affect the substantive rights of the parties', 25213:'e.g.,achange in the paying office or the appropriation data. effective date 1 for a solicitation amendment, changeorder, or administrative change,', 25214:'the effective dateshallbe the issue date of the amendment, change order, or administrative change. 2 for a supplemental agreement, the', 25215:'effective dateshallbe thedate agreedupon by the contracting parties. 3 for a modification issued as a confirming notice of termination for', 25216:'the convenience of the government, the effective date of theconfirming noticeshallbe thesame asthe effective date of theinitial notice. 4 for', 25217:'a modification converting a termination for default to a termination for the convenience of the government, the effective date shall', 25218:'be the sameas the effectivedate of the termination for default. 5 for a modificationconfirming the termination contracting officer’sprevious letter determination', 25219:'of the amount due in settlementof acontract termination for convenience,the effective date shall be the sameas the effectivedate of the', 25220:'previous letter determination. 43.102 policy. a only contracting officersacting within the scope oftheir authority are empowered toexecute contract modifications on', 25221:'behalf of the government. other government personnel shall not 1 execute contract modifications; 2 act in such a manner as', 25222:'to cause the contractor to believe that they have authority to bind the government; or 3 direct or encourage the', 25223:'contractor to perform work that should be the subject of a contract modification. b contractmodifications, including changes that could be', 25224:'issued unilaterally, shall be pricedbefore their execution if this canbe done without adversely affecting the interest of the government. if', 25225:'a significant cost increase could result from a contract modification and time does not permit negotiation of a price, at', 25226:'least a ceiling price shall be negotiated unless impractical. 43.103 typesof contractmodifications. contract modifications are of the following types: a', 25227:'bilateral. a bilateral modification supplemental agreement is a contract modification that is signed by the contractor and the contracting officer.', 25228:'bilateralmodifications areused to 1 make negotiated equitable adjustments resulting from the issuance of a change order; 2 definitize letter contracts;', 25229:'and 3 reflect other agreements of the parties modifying the terms of contracts. b unilateral. aunilateralmodification is a contract modification', 25230:'that is signed only by thecontracting officer. unilateral modifications are used, for example, to 1 make administrative changes; 2 issue', 25231:'change orders; 3 make changes authorized by clauses other than a changes clause e.g., property clause, options clause, or suspension', 25232:'of workclause; and 4 issue termination notices. federal acquisition regulation 43.104notification of contract changes. a when a contractor considers that', 25233:'the governmenthas effectedor may effect a change inthe contract thathas notbeen identified as suchin writing andsigned by the contracting officer,', 25234:'it is necessary that the contractor notify the government in writing as soon as possible. this will permit the government', 25235:'to evaluate the alleged change and 1 confirm that it is a change, direct the mode of further performance, and', 25236:'plan for its funding; 2 countermand the alleged change; or 3 notify the contractor that no change is considered to', 25237:'have occurred. b the clause at 52.2437, notification of changes, which is prescribed in 43.107 1 incorporates the policy expressed', 25238:'in paragraph a of this section; 2 requires the contractor to notify the government promptly of any government conduct that', 25239:'the contractor considers a change to the contract, and 3 specifies the responsibilities of the contractor and the government with', 25240:'respect to such notifications. 43.105 availability of funds. a thecontracting officer shall not execute a contract modification thatcausesor will cause', 25241:'an increasein funds without havingfirstobtained a certificationof fund availability, except for modificationsto contracts that 1 are conditioned on availability of', 25242:'funds see 32.7032; or 2 contain a limitation of cost or funds clause see 32.704. b the certification required by', 25243:'paragraph a of this section shall be based on the negotiated price, except that modifications executed before agreement on price', 25244:'may be based on the best available estimate of cost. c in accordance with 10 u.s.c. 983, do not provide', 25245:'funds by contract or contract modification, or make contract payments, to an institution ofhigher educationthat has a policyor practice of', 25246:'hindering senior reserve officer training corps units or military recruiting on campus as described at 9.110. the prohibition in this', 25247:'paragraph c does not apply to acquisitions at or below the simplified acquisition threshold or to acquisitions of commercial products,', 25248:'including commercially availableofftheshelf items, and commercialservices. 43.106[reserved] 43.107contract clause. the contractingofficer may insert a clause substantially the same as the', 25249:'clauseat 52.2437, notification of changes, in solicitations and contracts. the clause is available for use primarily in negotiated research and', 25250:'development or supply contracts for the acquisition of major weapon systems or principal subsystems. if the contract amount is expected', 25251:'to be less than $1,000,000, the clause shall not be used, unless the contracting officer anticipates that situations will arise', 25252:'that may result in a contractor alleging that the governmenthas effectedchangesotherthan those identified as such in writingand signed bythe contracting', 25253:'officer. subpart 43.2 change orders 43.204 subpart 43.2 change orders 43.201general. a generally, government contracts contain a changes clausethat permitsthe', 25254:'contracting officerto make unilateral changes, in designated areas, within the general scope of the contract. these are accomplished by issuing', 25255:'written change orders on standard form 30, amendment of solicitation/modification of contract sf 30, unless otherwise provided see 43.301. b', 25256:'the contractor must continue performance of the contract as changed, except that in costreimbursement or incrementally funded contracts the contractor', 25257:'is not obligated to continue performance or incur costs beyond the limits established in the limitation of cost or limitation', 25258:'of funds clause see 32.7062. c thecontracting officer may issuea change order byelectronic means without a sf 30under unusual or', 25259:'urgent circumstances, provided that the message contains substantially the information required by the sf 30 and immediate action is taken', 25260:'to issue the sf 30. 43.202authority to issue change orders. change orders shall be issued by the contractingofficer except when', 25261:'authority is delegated to an administrative contracting officersee 42.202c. 43.203 change orderaccounting procedures. a contractors’ accounting systems are seldom designed', 25262:'to segregate the costs of performing changed work. therefore, beforeprospective contractors submit offers, the contractingofficer should advise them of the', 25263:'possible need torevise their accounting procedures to comply with the cost segregation requirements of the change order accounting clause at', 25264:'52.2436. b the following categories of direct costs normally are segregable and accountable under the terms of the change order', 25265:'accounting clause: 1 nonrecurring costs e.g., engineering costs and costs of obsolete or reperformed work. 2 costs of added distinct', 25266:'work caused by the change order e.g., new subcontract work, new prototypes, or new retrofit or backfit kits. 3 costs', 25267:'of recurring work e.g., labor and material costs. 43.204administration. a change order documentation. when change orders are not forward priced,', 25268:'they require two documents: the change order and a supplemental agreement reflecting the resulting equitable adjustment in contract terms. if', 25269:'an equitable adjustment in the contract price or delivery terms or both can be agreed upon in advance, only a', 25270:'supplemental agreement need be issued, but administrative changes and changes issued pursuant to a clause giving the government a unilateral', 25271:'right to make a change e.g., an option clause initially require only one document. b definitization. 1 icontractingofficersshallnegotiateequitableadjustmentsresultingfromchangeordersintheshortest practicable time.', 25272:'ii agencies shall, in accordance with agency procedures, record and maintain data regarding the time required to definitize equitable adjustments', 25273:'associated with change orders for construction. the definitization of an equitable adjustment begins upon receipt of an adequate change order', 25274:'definitization proposalby the contractingofficer, and ends upon the contracting officers execution ofa contractual action todefinitizethe change order. the contracting officer', 25275:'shall ensure the data is recorded promptly in accordance with agency procedures. see 36.211b. 2 administrative contractingofficers negotiating equitable adjustments', 25276:'by delegation under 42.302b1, shall obtain thecontracting officer’s concurrence before adjusting the contract delivery schedule. 3 contracting offices and contract', 25277:'administration offices, as appropriate, shall establish suspense systems adequate to ensure accurate identification and prompt definitization of unpriced change orders.', 25278:'4 the contractingofficer shall ensure thata cost analysis ismade, if appropriate, under 15.4041c and shall consider thecontractor’ssegregable costsof the change,', 25279:'if available. if additional funds are required as a result of the change, the contracting officershallsecure the funds before makinganyadjustment', 25280:'to the contract. 5 when the contractingofficer requires a field pricing review of requests for equitableadjustment, the contracting officer shall', 25281:'providea list of any significant contract eventswhich may aidin the analysis of the request. this list should include federal acquisition', 25282:'regulation i date and dollar amount of contract award and/or modification; ii date of submission of initial contract proposal and', 25283:'dollar amount; iii date of alleged delays or disruptions; iv performance dates as scheduled at date of award and/or modification;', 25284:'v actual performance dates; vi date entitlement to an equitable adjustment was determined or contracting officer decisionwas rendered if applicable;', 25285:'vii date of certification of the request for adjustment if certification is required; and viii dates of any pertinent government', 25286:'actions or other key events during contract performance which may have animpact on the contractor’s requestforequitable adjustment. c complete and', 25287:'final equitable adjustments. to avoid subsequent controversiesthat may result from asupplemental agreementcontaining an equitable adjustment as the resultof achange order,', 25288:'the contracting officer should 1 ensure that all elements of the equitable adjustment have been presented and resolved; and 2', 25289:'include, in the supplemental agreement, a release similar to the following: contractor’sstatement of release in consideration of the modificationsagreed to', 25290:'hereinas completeequitable adjustments for the contractor’s describe proposals for adjustment, the contractor hereby releases the government from any and all', 25291:'liability under this contract for further equitable adjustments attributable to such facts or circumstances giving rise to the proposals for', 25292:'adjustment except for . 43.205contract clauses. a 1thecontractingofficershallinserttheclauseat 52.2431, changesfixedprice, in solicitations and contracts when a fixedprice contract for supplies', 25293:'is contemplated. 2 if the requirement is for services, other than architectengineer or other professional services, and no supplies are', 25294:'to befurnished, the contractingofficer shall usethe clause withits alternatei. 3 if the requirement is for services other than architectengineer services,', 25295:'transportation, or research and development and suppliesare tobe furnished, the contracting officer shall use the clause with its alternateii. 4', 25296:'if the requirement is for architectengineer or other professional services,the contracting officer shall use the clause with its alternateiii. 5', 25297:'if the requirement is for transportationservices, the contracting officer shall use theclause with itsalternateiv. 6 if it is desired to', 25298:'include the clause in solicitations and contracts when a research and development contract is contemplated, thecontracting officer shall use the', 25299:'clause with its alternate v. b 1thecontractingofficershallinserttheclauseat 52.2432, changescostreimbursement, in solicitations and contracts when a costreimbursement contract for supplies is', 25300:'contemplated. 2 if the requirement is for services and no supplies areto befurnished, the contractingofficer shall usethe clause with its', 25301:'alternatei. 3 if the requirement is for services and supplies are to be furnished, the contracting officershalluse the clause withits', 25302:'alternateii. 4 if the requirement is for construction,the contracting officer shall use the clausewith its alternateiii. 5 [reserved] 6 if', 25303:'it is desired to include the clause in solicitations and contracts when a research and development contract is contemplated, thecontracting', 25304:'officer shall use the clause with its alternate v. c insert the clause at 52.2433, changestimeandmaterials or laborhours, in solicitations', 25305:'and contracts when a timeand materials or laborhourcontract is contemplated. the contracting officer mayvary the 30day periodin paragraph c of', 25306:'the clause according to agency procedures. d the contractingofficer shall insertthe clause at 52.2434, changes, in solicitations and contracts for', 25307:'1 dismantling, demolition, or removal of improvements; and 2 construction, when a fixedprice contract is contemplated and the contract amount', 25308:'is expected to exceed the simplified acquisition threshold. e thecontracting officer shall insert the clause at 52.2435, changes and changed', 25309:'conditions, in solicitations and contracts for construction, when the contract amount is not expected to exceed the simplified acquisition threshold.', 25310:'f the contracting officer may insert aclause, substantially the same as the clause at 52.2436, change order accounting, in solicitations', 25311:'and contracts for supply and research and development contracts ofsignificant technical complexity, if subpart 43.2 change orders 43.205 numerous changes', 25312:'are anticipated. the clause may be included in solicitations and contracts for construction if deemed appropriate by the contracting officer.', 25313:'this page intentionally left blank. 43.24 subpart 43.3 forms 43.301 subpart 43.3 forms 43.301use of forms. a 1 the standard', 25314:'form 30 sf 30, amendment of solicitation/modification of contract, shall except for the options stated in 43.301a2 or actions processed', 25315:'under part 15 be used for i any amendment to a solicitation; ii change orders issued under the changes clause', 25316:'of the contract; iii any other unilateral contract modification issued under a contract clause authorizing such modification without the consent', 25317:'of the contractor; iv administrative changes such as thecorrection of typographicalmistakes,changesin thepaying office, and changes in accounting and appropriation data;', 25318:'v supplemental agreements see 43.103; and vi removal, reinstatement, or addition of funds to a contract. 2 the sf 30', 25319:'may be used for i modifications that change the price of contracts for the acquisition of petroleum as a result', 25320:'of economic price adjustment; iitermination notices; and iii purchase order modifications as specified in 13.3023. 3 if it is anticipated', 25321:'that a change will result in a price change, the estimated amount of the price change shall not be shown', 25322:'on copies of sf 30 furnishedto thecontractor. b the optional form 336 of 336, continuation sheet, ora blank sheet of', 25323:'paper,may be usedas acontinuationsheet for a contract modification. this page intentionally left blank. 43.32 part 44 subcontracting policies and procedures', 25324:'sec. 44.000 scope of part. subpart 44.1 general 44.101 definitions. subpart 44.2 consent to subcontracts 44.201 consent and advance notification', 25325:'requirements. 44.2011 consent requirements. 44.2012 advance notification requirements. 44.202 contracting officer’s evaluation. 44.2021 responsibilities. 44.2022 considerations. 44.203 consent limitations. 44.204', 25326:'contract clauses. subpart 44.3 contractors’ purchasing systems reviews 44.301 objective. 44.302 requirements. 44.303 extent of review. 44.304 surveillance. 44.305 granting,', 25327:'withholding, or withdrawing approval. 44.3051 responsibilities. 44.3052 notification. 44.3053 withholdingorwithdrawingapproval. 44.306 disclosure of approval status. 44.307 reports. subpart 44.4 subcontracts', 25328:'for commercial products andcommercial services 44.400 scope of subpart. 44.401 applicability. 44.402 policy requirements. 44.403 contract clause. this page intentionally', 25329:'left blank. subpart 44.1 general 44.101 44.000scope of part. a this part prescribes policies and procedures for consent to subcontracts', 25330:'or advance notification of subcontracts, and for review, evaluation, and approvalof contractors’ purchasing systems. b the consent and advance notification', 25331:'requirements of subpart 44.2 are not applicable to prime contracts for commercial supplies or commercial services acquired pursuant to part', 25332:'12. subpart 44.1 general 44.101definitions. as used in this part approved purchasing system means a contractor’s purchasing system that has', 25333:'been reviewed and approvedin accordance with this part. contractor meansthe total contractor organization ora separate entity of it, such as', 25334:'an affiliate, division, or plant, that performs its own purchasing. contractor purchasing system review cpsr meansthe complete evaluation ofa contractor’s', 25335:'purchasingof material and services, subcontracting, and subcontract management from development of the requirement through completion of subcontract performance. subcontract means', 25336:'any contract as defined in subpart 2.1 entered into by a subcontractor to furnish supplies or services for performance of', 25337:'a prime contract or a subcontract. it includes but is not limited to purchase orders, and changes and modifications to', 25338:'purchase orders. subcontractor means any supplier,distributor, vendor,or firm thatfurnishes supplies or servicesto or for a prime contractor oranother subcontractor. this', 25339:'page intentionally left blank. 44.12 subpart 44.2 consent to subcontracts 44.2022 subpart 44.2 consent to subcontracts 44.201 consentand advance notification', 25340:'requirements. 44.2011consent requirements. a if the contractor has an approved purchasing system, consent is required for subcontracts specifically identified by', 25341:'thecontracting officer inthe subcontracts clause of thecontract. thecontracting officer may require consent to subcontract if the contractingofficer hasdetermined that an', 25342:'individual consent actionis required to protectthe government adequately because ofthe subcontract type, complexity,or value, or because the subcontract needs specialsurveillance.', 25343:'these can be subcontracts for critical systems, subsystems, components, or services. subcontracts may be identified by subcontract number or by', 25344:'class of items e.g., subcontracts for engines on a prime contract for airframes. b if the contractor does not have', 25345:'an approved purchasing system, consent to subcontract is required for cost reimbursement, timeandmaterials, laborhour, or letter contracts, and also for', 25346:'unpriced actions including unpriced modifications and unpriced delivery orders under fixedprice contracts that exceed the simplified acquisition threshold, for 1', 25347:'costreimbursement, timeandmaterials, or laborhour subcontracts; and 2 fixedprice subcontracts that exceed i for the department of defense, the coast guard,', 25348:'and the national aeronautics and space administration, the greater of the simplified acquisition threshold or 5 percent of the total', 25349:'estimated cost of the contract; or ii for civilian agencies other than the coast guard and the national aeronautics and', 25350:'space administration, either the simplified acquisition threshold or 5 percent of the total estimated cost of the contract. c consent', 25351:'may be required for subcontracts under prime contracts for architectengineer services. dthecontractingofficer’swrittenauthorizationforthecontractortopurchasefromgovernmentsourcessee part 51 constitutes consent. 44.2012advance notification requirements. under', 25352:'costreimbursement contracts, the contractor is requiredby statute to notify thecontracting officer as follows: a for the department of defense, the', 25353:'coast guard, and the national aeronautics and space administration, unless the contractor maintains an approved purchasing system, 10 u.s.c. 3322c', 25354:'requires notification before the award of any costplus fixedfee subcontract, or any fixedprice subcontract that exceeds the greater of the', 25355:'simplified acquisition threshold or 5 percent of the total estimated cost of the contract. b for civilian agencies other than', 25356:'the coast guard and the national aeronautics and space administration, even if the contractor has an approved purchasing system, 41', 25357:'u.s.c. 3905 requires notification before the award of any costplusfixedfee subcontract, or any fixedprice subcontract that exceeds either the simplified', 25358:'acquisition threshold or 5 percent of the total estimated cost of the contract. 44.202 contracting officer’sevaluation. 44.2021 responsibilities. a thecognizant', 25359:'administrative contracting officer acois responsible for consent to subcontracts,exceptwhen the contracting officerretains the contractforadministration or withholds the consent responsibilityfrom delegation', 25360:'to the aco. in such cases, thecontract administration officeshouldassist the contracting office in its evaluation asrequested. b the contractingofficer responsible', 25361:'for consent shall review the contractor’s notification and supportingdata toensure that the proposed subcontract is appropriate for the risks involved', 25362:'and consistent with current policy and sound business judgment. c designation of specific subcontractors during contract negotiations does not in', 25363:'itself satisfy the requirements for advance notification or consent pursuant to the clause at 52.2442. however, if, in the opinionof', 25364:'the contractingofficer, the advance notification or consent requirements were satisfied for certain subcontracts evaluated during negotiations, the contracting officershallidentify those', 25365:'subcontracts in paragraph jof the clause at 52.2442. 44.2022 considerations. a thecontracting officer responsible for consent must, at a minimum,', 25366:'review the request and supporting dataand consider the following: federal acquisition regulation 1 is thedecision to subcontract consistent withthe contractor’s', 25367:'approved makeorbuy program,if any see 15.4072? 2 is the subcontract for special test equipment, equipment or real property that are', 25368:'available from government sources? 3 is the selection of the particular supplies, equipment, or services technically justified? 4 has the', 25369:'contractor complied with the prime contract requirements regarding i small business subcontracting, including, if applicable, its plan for subcontracting with', 25370:'small, veteranowned, servicedisabled veteranowned, hubzone, small disadvantaged and womenowned small business concerns see part 19; and ii purchase from nonprofit', 25371:'agencies designated by the committee for purchase from people who are blind or severely disabled 41 u.s.c.8504 see part 8?', 25372:'5 was adequate price competition obtained or itsabsence properly justified? 6 did the contractoradequately assess and dispose of subcontractors’ alternateproposals,if', 25373:'offered? 7 does the contractor have a sound basis for selecting and determining the responsibility of the particular subcontractor? 8', 25374:'has the contractor performed adequate cost or price analysis or price comparisons and obtained certified cost or pricing data and', 25375:'data other than certified cost or pricing data? 9 is the proposed subcontract type appropriate for the risks involved and', 25376:'consistent with current policy? 10 has adequate consideration been obtained for any proposed subcontract that will involve the use of', 25377:'government provided equipment and real property? 11 has thecontractor adequately and reasonably translated prime contract technical requirements into subcontract requirements?', 25378:'12 does the prime contractor comply with applicable cost accounting standards for awarding the subcontract? 13istheproposedsubcontractorlistedasexcludedinthesystemforawardmanagementsee subpart 9.4? b particularly', 25379:'careful and thorough consideration under paragraph a of this section is necessary when 1 the prime contractor’s purchasingsystemor performance is', 25380:'inadequate; 2 closeworking relationships orownership affiliations between the prime and subcontractor may precludefree competition or result in higher prices; 3', 25381:'subcontracts are proposed for award on a noncompetitive basis, at prices that appear unreasonable, or at prices higher than those', 25382:'offered to the government in comparable circumstances; or 4 subcontracts are proposed on a costreimbursement, timeandmaterials, or laborhour basis. 44.203consent', 25383:'limitations. a thecontracting officer’s consent to a subcontract or approval of the contractor’s purchasing system does not constitute a determination', 25384:'of the acceptability of the subcontract terms or price, or of the allowability of costs, unless the consent or approval', 25385:'specifies otherwise. b contracting officersshallnot consent to 1 costreimbursement subcontracts if the fee exceeds the fee limitations of 15.4044c4i; 2', 25386:'subcontracts providing for payment on a costplusapercentageofcost basis; 3 subcontracts obligating the contracting officer to deal directly with the subcontractor;', 25387:'4 subcontracts that make the results of arbitration, judicial determination, or voluntary settlement between the prime contractor and subcontractor binding', 25388:'on the government; or 5 repetitive or unduly protracted use of costreimbursement, timeandmaterials, or laborhour subcontracts contracting officers should follow', 25389:'the principlesof 16.103c. c contracting officers should not refuse consent to a subcontract merely becauseitcontains aclause giving the subcontractor theright', 25390:'of indirect appeal toan agencyboard of contract appealsif the subcontractor is affected by a dispute between the government and the', 25391:'prime contractor. indirectappealmeans assertion by thesubcontractorof the prime contractor’s right to appeal or the prosecution of an appeal bythe prime', 25392:'contractor onthe subcontractor’s behalf. theclause may also provide that theprimecontractor and subcontractor shall be equally bound by the contracting officer’s', 25393:'or board’s decision. the clause may notattempt toobligate the contracting officer orthe appealsboard todecidequestions thatdo not arise between the government', 25394:'and the prime contractor or that are not cognizable under the clause at 52.2331, disputes. subpart 44.2 consent to subcontracts', 25395:'44.204 44.204contract clauses. a 1thecontractingofficershallinserttheclauseat 52.2442, subcontracts, in solicitations and contracts when contemplating i a costreimbursement contract; ii a letter', 25396:'contract that exceeds the simplified acquisition threshold; iii a fixedprice contract that exceeds the simplified acquisition threshold under which unpriced', 25397:'contract actions including unpriced modifications or unpriced delivery orders are anticipated; iv a timeandmaterials contract that exceeds the simplified acquisition', 25398:'threshold; or v a laborhour contract that exceeds the simplified acquisition threshold. 2 if a costreimbursement contract is contemplated, for', 25399:'civilian agencies other than the coast guard and the national aeronautics and space administration,the contracting officershalluse the clausewith its alternate', 25400:'i. 3 use of this clause is not required in i fixedprice architectengineer contracts; or iicontracts for mortuaryservices, refuseservices, orshipmentand', 25401:'storage of personal property,when an agency prescribed clause on approval of subcontractors’ facilities is required. b the contractingofficer may insert', 25402:'the clause at 52.2444, subcontractors and outside associates and consultants architectengineer services, in architectengineer contracts. c thecontracting officer shall, when', 25403:'contracting bynegotiation, insert the clause at 52.2445, competition in subcontracting, in solicitations and contracts when the contract amount is expected', 25404:'to exceed the simplified acquisition threshold, unless 1 a firmfixedprice contract, awarded on the basis of adequate price competition or', 25405:'whose prices are set by law or regulation, is contemplated; or 2 a timeandmaterials, laborhour, or architectengineer contract is contemplated.', 25406:'this page intentionally left blank. 44.24 subpart 44.3 contractors’ purchasing systems reviews 44.304 subpart 44.3 contractors’ purchasing systems reviews 44.301objective.', 25407:'the objective of a contractor purchasing system review cpsr is to evaluate theefficiencyandeffectiveness with which the contractor spends government funds', 25408:'and complies with government policy when subcontracting. the review provides theadministrativecontracting officer aco a basis for granting, withholding,or withdrawingapproval of', 25409:'the contractor’s purchasing system. 44.302 requirements. a theaco shall determine the need for a cpsrbased on, but notlimited to, the', 25410:'past performance ofthe contractor, and thevolume, complexity and dollar valueof subcontracts. if a contractor’ssales to the government excluding competitively awarded', 25411:'firmfixedprice and competitively awarded fixedprice with economic price adjustment contracts and sales of commercial supplies and commercial services pursuant to', 25412:'part 12 are expected to exceed $25 million during the next 12 months, perform a review to determine if a', 25413:'cpsr is needed. sales include those represented by prime contracts, subcontracts undergovernment prime contracts, and modifications. generally, acpsr is notperformed', 25414:'for a specificcontract. thehead of the agency responsible for contract administration may raise or lower the $25 million review level', 25415:'if it is considered to be in the government’s best interest. b once an initial determination has been made under', 25416:'paragraph a of this section, at least every three years the aco shall determine whether a purchasing system review is', 25417:'necessary. if necessary,the cognizantcontract administration office will conduct apurchasing system review. 44.303 extent of review. a cpsrrequiresan evaluationof the contractor’s', 25418:'purchasing system. unless segregation of subcontracts is impracticable, this evaluation shall not include subcontracts awarded by the contractor exclusively in', 25419:'support of government contracts that are competitively awarded firmfixedprice, competitively awarded fixedprice with economic price adjustment, or awarded for commercial', 25420:'supplies and commercial services pursuant to part 12. the considerations listed in 44.2022 for consent evaluation of particular subcontracts alsoshallbe', 25421:'usedto evaluate thecontractor’spurchasing system, including the contractor’s policies,procedures,andperformance underthat system. special attention shall be given to a the results of', 25422:'market research accomplished; b the degree of price competition obtained; c pricing policies and techniques, including methods of obtaining certified', 25423:'cost or pricing data, and data other than certified cost or pricing data; d methods of evaluating subcontractor responsibility, including', 25424:'thecontractor’suse ofthe system for award management exclusions see 9.404 and, if the contractor has subcontracts with parties on the exclusions', 25425:'list, the documentation,systems, and procedures thecontractor has established to protect the government’s interests see 9.4052; e treatment accorded affiliates and', 25426:'other concernshaving close working arrangementswith the contractor; f policies and procedures pertaining to small business concerns, including small disadvantaged, womenowned,', 25427:'veteran owned, hubzone, and servicedisabled veteranowned small business concerns; g planning, award, and postaward management of major subcontract programs; h', 25428:'compliance with cost accounting standards in awarding subcontracts; i appropriateness of types of contracts used see 16.103; j management control', 25429:'systems, including internal audit procedures, to administer progress payments to subcontractors; and k implementation of higherlevel quality standards. 44.304surveillance. a', 25430:'theaco shall maintain a sufficient level of surveillance to ensure that the contractor is effectively managing its purchasing program. b', 25431:'surveillance shall be accomplished in accordance with a plan developed by the aco with the assistance of subcontracting, audit, pricing,technical,', 25432:'or otherspecialists asnecessary. the plan should cover pertinent phases of a contractor’s purchasing system preaward,postaward, performance, and contract completion and', 25433:'pertinentoperations that affect the contractor’s purchasing andsubcontracting. theplan should also provide for reviewing the effectiveness of the federal acquisition regulation', 25434:'contractor’s correctiveactions taken as a result of previous government recommendations. duplicative reviews of the same areas by cpsr and other', 25435:'surveillance monitors should be avoided. 44.305 granting, withholding, or withdrawingapproval. 44.3051 responsibilities. the cognizant aco is responsible for granting, withholding,', 25436:'or withdrawing approval ofa contractor’s purchasingsystem. the aco shall a approve a purchasing system only after determining thatthe contractor’s purchasing', 25437:'policies and practicesare efficient and provide adequate protection ofthe government’s interests; and b promptly notify the contractor in writing of', 25438:'the granting, withholding, or withdrawal of approval. 44.3052 notification. a the notification granting system approval shall include 1 identification of', 25439:'the plant or plants covered by the approval; 2 the effective date of approval;and 3 a statement that system approval', 25440:'i applies to all federal government contracts at that plant to the extent that crossservicing arrangements exist; iiwaives the contractual', 25441:'requirement for advance notification in fixedprice contracts, but notforcostreimbursement contracts; iii waives the contractual requirement for consentto subcontracts in fixedprice', 25442:'contracts and for specified subcontracts in costreimbursement contracts but not for those subcontracts, ifany, selected for special surveillanceand identified in', 25443:'the contract schedule; and iv may be withdrawn at any time atthe aco’s discretion. b in exceptional circumstances, consent to', 25444:'certain subcontracts or classes of subcontracts may be required even though thecontractor’spurchasing system has been approved. thesystemapproval notification shall identify', 25445:'theclass or classes of subcontracts requiring consent. reasons for selecting the subcontracts include the fact that a cpsr or continuing', 25446:'surveillance has revealedsufficient weaknessesin a particulararea of subcontracting to warrant specialattentionby the aco. c when recommendations are made for improvement', 25447:'of an approved system, the contractor shall be requested to reply within 15 days with a position regarding the recommendations.', 25448:'44.3053withholding or withdrawingapproval. a theaco shall withhold or withdraw approval of a contractor’s purchasing system when thereare major weaknesses or', 25449:'whenthe contractor is unable to provide sufficient information upon which to make an affirmative determination. the aco may withdraw approval', 25450:'at any time on the basis of a determination that there has been a deteriorationof the contractor’s purchasing system or', 25451:'to protect the government’s interest. approval shall be withheld or withdrawn when thereis a recurring noncompliance with requirements, including but', 25452:'not limited to 1 certified cost or pricing data see 15.403; 2 implementation of cost accounting standards see 48 cfr', 25453:'chapter 99; 3 advance notification as required by the clauses prescribed in 44.204; or 4 small business subcontracting see subpart', 25454:'19.7. b when approval of the contractor’spurchasing system is withheld or withdrawn,the aco shall within 10 days after completing the', 25455:'inplant review 1 inform the contractor in writing, 2 specify the deficiencies that must be corrected to qualify the system', 25456:'for approval, and 3 request the contractor to furnish within 15 days a plan for accomplishing the necessary actions. if', 25457:'the plan is accepted, the aco shall make a followup review as soon as the contractor notifies the aco that', 25458:'the deficiencies have been corrected. 44.306 disclosure ofapproval status. upon request, the aco may inform a contractor that the purchasing', 25459:'system of a proposed subcontractor has been approved or disapproved, but shall caution that the government will not keep the', 25460:'contractor advised of any changes in the approval status. if the proposedsubcontractor’s purchasingsystemhas not been reviewed, the contractor shall besoadvised.', 25461:'subpart 44.3 contractors’ purchasing systems reviews 44.307 44.307reports. the aco shall distribute copies of cpsr reports; notifications granting, withholding, or', 25462:'withdrawing system approval; and government recommendations for improvement of an approved system, including the contractor’s response, to at least a', 25463:'thecognizant contract audit office; b activities prescribed by the cognizant agency; and c thecontractor exceptthat furnishing copies of the contractor’sresponse', 25464:'is optional. this page intentionally left blank. 44.34 subpart 44.4 subcontracts for commercial products and commercial services 44.403 subpart 44.4', 25465:'subcontracts for commercial products and commercial services 44.400scope of subpart. this subpart prescribes the policies limiting the contract clauses a', 25466:'contractor may be required to apply to any subcontractors that are furnishing commercial products, including commercial components, or commercial services', 25467:'in accordance with 41 u.s.c. 3307. 44.401 applicability. this subpart applies to all contracts and subcontracts. for the purpose of', 25468:'this subpart, the term subcontract has the same meaning as defined in part 12. 44.402 policy requirements. a contractors and', 25469:'subcontractors at all tiers shall, to the maximum extent practicable: 1 be required to incorporate commercial products, commercial services, or', 25470:'nondevelopmental items as components of items delivered to the government; and 2 not be requiredto apply toanyof its divisions, subsidiaries,', 25471:'affiliates,subcontractors or suppliers that are furnishing commercial products or commercial services any clause, except those i required to implement provisions', 25472:'of law or executive orders applicable to subcontractors furnishing commercial products or commercial services; or ii determined to be consistent', 25473:'with customary commercial practice for the item being acquired. b the clause at 52.2446, subcontracts for commercial products and commercial', 25474:'services, implements the policy in paragraph a of this section. notwithstanding any other clause in the prime contract, only those', 25475:'clauses identified in the clause at 52.2446 are required to be in subcontracts for commercial products or commercial services. c', 25476:'agencies may supplement the clause at 52.2446 only as necessary to reflect agency unique statutes applicable to the acquisition of', 25477:'commercial products and commercial services. 44.403contract clause. the contractingofficer shall insertthe clause at 52.2446, subcontracts for commercial products and commercial', 25478:'services, in solicitations and contracts other than those for commercial products or commercial services. this page intentionally left blank. 44.42', 25479:'part 45 government property sec. 45.000 scope of part. subpart 45.5 support government property administration subpart 45.1 general 45.501 prime', 25480:'contractor alternate locations. 45.101 definitions. 45.502 subcontractor and alternate prime contractor 45.102 policy. locations. 45.103 general. 45.503 support property administrator', 25481:'findings. 45.104 responsibility and liability for government property. subpart 45.6 reporting, 45.105 contractors’ property management system reutilization, and disposal compliance.', 25482:'45.600 scope of subpart. 45.106 transferring accountability. 45.601 [reserved] 45.107 contract clauses. 45.602 reutilization of government property. 45.6021 inventory disposal', 25483:'schedules. subpart 45.2 solicitation 45.6022 reutilization priorities. and evaluation procedures 45.6023 screening. 45.201 solicitation. 45.6024 interagency property transfer costs. 45.202', 25484:'evaluation procedures. 45.603 abandonment or destruction of personal property. subpart 45.3 authorizing the use 45.604 sale of surplus personal property.', 25485:'and rental of government property 45.6041 sales procedures. 45.301 use and rental. 45.6042 use of gsa sponsored sales centers. 45.302', 25486:'contracts with foreign governments or 45.6043 proceeds from sales of surplus property. international organizations. 45.6044 sale of property pursuant to', 25487:'the exchange/ 45.303 use of government property on independent sale authority. research and development programs. 45.605 inventory disposal reports. 45.606', 25488:'contractor scrap procedures. subpart 45.4 title to government property 45.401 title to governmentfurnished property. 45.402 title to contractoracquired property. this', 25489:'page intentionally left blank. subpart 45.1 general 45.101 45.000scope of part. a this part prescribes policies and procedures for providing', 25490:'government property to contractors; contractors’ management and use of government property;andreporting,redistributing, and disposing of contractorinventory. b it does not apply', 25491:'to 1 government property provided underany statutory leasing authority, except asto nongovernment use of property under 45.301f; 2 property to', 25492:'which the government has acquired a lien or title solely because of partial, advance, progress, or performance based payments; 3', 25493:'disposal of real property; 4 software and intellectual property; or 5 government property that is incidental to the place of', 25494:'performance, when the contract requires contractor personnel to be located on a government site or installation, and when the property', 25495:'used by the contractor within the location remains accountable to the government. items consideredto beincidentalto theplace of performance include, for', 25496:'example, office space, desks, chairs, telephones, computers, and fax machines. subpart 45.1 general 45.101definitions. as used in this part cannibalize', 25497:'means to remove partsfrom government property for use orforinstallation on other government property. contractoracquired property means property acquired, fabricated, or', 25498:'otherwise provided by the contractor for performing a contract and to which the government has title. contractor inventory means 1', 25499:'any property acquired by and in the possession of a contractor or subcontractor under a contract for which title is', 25500:'vested in the government and which exceeds the amounts needed to complete full performance under the entire contract; 2 any', 25501:'property that the government is obligated or has the option to take over under any type of contract, e.g., as', 25502:'a result either of any changes in the specifications or plans thereunder or of the termination of the contract or', 25503:'subcontract thereunder, before completion of the work, for the convenience or at the option of the government; and 3 governmentfurnished', 25504:'property that exceeds the amounts needed to complete full performance under the entire contract. contractor’s managerial personnel means the contractor’sdirectors,officers,', 25505:'managers,superintendents, or equivalent representatives who have supervision or direction of 1 all orsubstantially all of the contractor’s business; 2 all', 25506:'orsubstantially all of the contractor’s operation at any one plant or separate location; or 3 a separate and complete major', 25507:'industrial operation. demilitarization means rendering a product unusablefor, and not restorable to, the purpose for which it wasdesigned oris customarily', 25508:'used. discrepancies incident to shipment meansany differences e.g., count or condition between the items documented to have been shipped and', 25509:'items actually received. equipment means a tangible item that is functionally complete for its intended purpose, durable, nonexpendable, and needed', 25510:'for the performance of a contract. equipment is not intended for sale, and does not ordinarily lose its identity or', 25511:'become acomponent partof another article when put into use. equipmentdoes not include material, real property, special test equipment or special', 25512:'tooling. governmentfurnished property means property in the possession of, or directly acquired by,the government and subsequently furnished to the contractor', 25513:'for performance of a contract. governmentfurnished property includes, but is not limitedto, spares and property furnished for repair, maintenance, overhaul,', 25514:'or modification. governmentfurnished property also includes contractoracquired property if the contractoracquired property is a deliverable under a cost contract when', 25515:'accepted by the government for continued use under the contract. government property means all property owned or leased by the', 25516:'government. government property includes both governmentfurnishedpropertyandcontractoracquired property. government property includes material, equipment, special tooling, specialtest equipment, and realproperty. government property', 25517:'doesnot include intellectual property and software. loss of government property means unintended, unforeseen or accidental loss, damage, or destruction of', 25518:'government property that reduces the government’s expectedeconomic benefits ofthe property. loss of government property doesnot federal acquisition regulation include occurrences', 25519:'such as purposeful destructive testing,obsolescence, normal wear and tear, or manufacturing defects. loss of government property includes, but is not', 25520:'limited to 1 items that cannot be found after a reasonable search; 2 theft; 3 damage resulting in unexpected harm', 25521:'to property requiring repair to restore the item to usable condition; or 4 destruction resulting from incidents that render the', 25522:'item useless for its intended purpose or beyond economical repair. material means property that may be consumed or expended during', 25523:'the performance of a contract, component parts of a higher assembly, or items that lose their individual identitythroughincorporation into an', 25524:'enditem. material does notinclude equipment, special tooling,special test equipment or real property. nonseverable means property that cannot be removed after', 25525:'construction or installation without substantial loss of value or damage to the installed property or to the premises where installed.', 25526:'precious metals means silver, gold, platinum, palladium,iridium, osmium, rhodium, and ruthenium. production scrap means unusable material resulting from production,engineering, operations', 25527:'and maintenance, repair,and research and development contract activities. production scrap may have value when remelted or reprocessed, e.g., textile and', 25528:'metal clippings, borings, and faulty castings and forgings. property means all tangible property,bothreal and personal. property administrator means an authorized', 25529:'representativeof the contractingofficer appointed in accordancewith agency procedures, responsible for administering the contract requirements and obligations relating to government property', 25530:'in the possession ofa contractor. property records means the records created and maintained by the contractor in support of its', 25531:'stewardship responsibilities for themanagement of government property. provide means to furnish, as in governmentfurnished property, or toacquire, as in contractoracquiredproperty.', 25532:'real property see federal management regulation 10271.20 41 cfr 10271.20. sensitive property means property potentially dangerous to the public safety', 25533:'or security if stolen, lost, or misplaced, or that shall be subject to exceptional physical security, protection, control, andaccountability. examples', 25534:'include weapons, ammunition, explosives, controlled substances, radioactive materials, hazardous materials or wastes, or precious metals. unit acquisition cost means 1', 25535:'for governmentfurnished property,the dollar value assigned by the governmentandidentified in the contract; and 2 for contractoracquired property, the cost derived', 25536:'from the contractor’s records that reflectconsistently applied generally accepted accounting principles. 45.102 policy. a contractors are ordinarily required to furnish', 25537:'all property necessary to perform government contracts. b contracting officersshallprovide property to contractors only when it isclearly demonstrated 1 to', 25538:'be in the government’s best interest; 2 that the overall benefit to the acquisition significantly outweighs the increased cost of', 25539:'administration, including ultimate property disposal; 3 that providing the property does not substantially increase the government’sassumption of risk; and 4', 25540:'that government requirements cannot otherwise be met. c thecontractor’sinability or unwillingness to supply its own resources is notsufficient reason for', 25541:'the furnishing or acquisition of property. d exception. property provided under contractsforrepair, maintenance, overhaul, or modificationis not subject to the', 25542:'requirements of paragraph b of this section. e government property, other than foundations and similar improvements necessary for installing special', 25543:'tooling, special test equipment, or equipment, shall not be installed or constructed on contractorowned real property in such fashion as', 25544:'to become nonseverable, unless the head of the contracting activity determines that such installation or construction is necessary and in', 25545:'the government’s interest. 45.103general. a agencies shall 1 allow and encourage contractors to use voluntary consensus standards see far 11.101b', 25546:'and industryleading practices and standards to manage government property in their possession; subpart 45.1 general 45.106 2 eliminate to the', 25547:'maximum practical extent any competitive advantage a prospective contractor may have by using government property; 3 ensure maximum practical reutilization', 25548:'of contractor inventory for government purposes; 4 require contractors to use government property already in their possession to the maximum', 25549:'extent practical in performing government contracts; 5 charge appropriate rentals when the property isauthorized for useon otherthan arentfree basis; and', 25550:'6 require contractors to justify retaining government property not needed for contract performance and to declare property as excess when', 25551:'no longer needed for contract performance. b agencies will not generally require contractors to establish property management systems that are', 25552:'separate from a contractor’s established procedures, practices, and systemsused to account for and manage contractorowned property. 45.104 responsibility and liability', 25553:'for government property. a generally, contractorsare not held liable for loss ofgovernment property under the following types of contracts: 1', 25554:'costreimbursement contracts. 2 timeandmaterial contracts. 3 laborhour contracts. 4 fixedprice contracts awarded on the basis of submission of certified cost', 25555:'or pricing data. b the contractingofficer may revoke the government’sassumption of risk when the property administrator determines that the contractor’s', 25556:'property management practices are noncompliant withcontract requirements. c a prime contractor that provides government property to a subcontractor shall not', 25557:'be relieved of any responsibility to the government that the prime contractor may have under the terms of the prime', 25558:'contract. d with respectto lossof government property, the contracting officer, in consultation with the property administrator, shall determine 1 the', 25559:'extent, if any,of contractor liability based uponthe amount of damages corresponding to the associated property loss; and 2 the appropriate', 25560:'form and method of government recovery may include repair, replacement,or other restitution. e any monies received as financial restitution shall', 25561:'becredited to the treasury ofthe united states as miscellaneous receipts, unless otherwise authorized by statute 31 u.s.c. 3302b. 45.105 contractors’', 25562:'property managementsystem compliance. a theagency responsible for contract administration shall conduct ananalysisof the contractor’s property management policies, procedures, practices, and', 25563:'systems. this analysis shall be accomplished as frequently as conditions warrant, in accordance with agency procedures. b the property administrator', 25564:'shall notify the contractor in writing when the contractors property management system does not comply with contractual requirements, shall request', 25565:'prompt correction of deficiencies, and shall request from the contractor a corrective action plan, including a schedule for correction of', 25566:'the deficiencies. if the contractor does not correct thedeficiencies in accordance with the schedule, the contracting officershallnotify the contractor,in writing,', 25567:'that failure to take the required corrective actions may result in 1 revocation of the government’s assumptionof riskforloss of government', 25568:'property; and/or 2 the exercise of other rights or remedies available tothe contracting officer. c if the contractor fails to', 25569:'take the required corrective actions in response to the notification provided by the contracting officer in accordance with paragraphbof this', 25570:'section, the contracting officer shall notify the contractor in writingof any government decision to apply the remedies described in paragraphs', 25571:'b1 and b2 of this section. d when the property administrator determines that a reported case of loss of government', 25572:'property is a risk assumed by the government, the property administrator shall notify the contractor in writing that it is', 25573:'granted relief of stewardship responsibility and liability in accordance with 52.2451f1vii. where the property administrator determines that the risk of', 25574:'loss of government property is not assumed by the government, the property administrator shall request that the contracting officerhold the', 25575:'contractor responsible and liable. 45.106 transferring accountability. government property shall be transferred from one contract to another only when firm', 25576:'requirements exist under the gaining contract see 45.102. such transfers shall be documented by modifications to both gaining and losing', 25577:'contracts. once transferred, all property shall be considered governmentfurnished property to the gaining contract. the warranties of federal acquisition regulation', 25578:'suitability of use and timely delivery of governmentfurnished property do not apply to property acquired or fabricated by the contractor', 25579:'ascontractoracquired property that is subsequently transferred to another contract with the same contractor. 45.107contract clauses. a 1exceptasprovidedinparagraphdofthissection,thecontractingofficershallinserttheclauseat 52.2451, government property,', 25580:'in i all costreimbursement and timeandmaterial type solicitations and contracts, and laborhour solicitations when property is expected to be furnished', 25581:'for the laborhour contracts. iifixedprice solicitations and contractswhen the government willprovide government property. iiicontractsormodificationsawardedunderfar part 12 procedures where government property', 25582:'that exceeds thesimplified acquisition threshold,as defined in far 2.101, is furnished or where the contractor is directed to acquire property', 25583:'for use under the contract that is titled in the government. 2 the contractingofficer shall usethe clause with its alternatei', 25584:'in contracts other than thoseidentified in far 45.104a, responsibility and liabilityforgovernment property. 3 the contractingofficer shall usethe clause with its', 25585:'alternateii when a contract for the conductof basic or applied research at nonprofit institutions of highereducation or at nonprofit organizations', 25586:'whose primary purpose is the conductof scientific research see 35.014 is contemplated. b the contractingofficer shall also insert the clause', 25587:'at 52.2452, government property installation operation services, in fixedprice service contracts to be performed on a government installation when governmentfurnished', 25588:'property will be provided for initial provisioning only and the government is not responsible for repair or replacement. c thecontracting', 25589:'officer shall insert the clause at 52.2459, use andcharges,in solicitations and contracts when the clause at 52.2451 is included. d', 25590:'purchase orders for property repair need not include a government property clause when the unit acquisition cost of government property', 25591:'to be repaired does not exceed the simplified acquisition threshold, unless other government property not for repair is provided. subpart', 25592:'45.2 solicitation and evaluation procedures 45.202 subpart 45.2 solicitation and evaluation procedures 45.201solicitation. a thecontracting officer shall insert alisting of', 25593:'the government property to be offered inallsolicitationswhere governmentfurnished property is anticipated see 45.102. the listing shall include at a minimum', 25594:'1 the name, partnumber and description, manufacturer,model number, and national stock number if needed for additional item identification tracking and', 25595:'management, and disposition; 2 quantity/unit of measure; 3 unit acquisition cost; 4 uniqueitem identifier or equivalent if available and necessary', 25596:'for individual item tracking and management; and 5 a statement as to whether the property is to be furnished in', 25597:'an asis condition and instructions for physical inspection. b when government property is offered for use in a competitive acquisition,', 25598:'solicitations should specify thatthe contractor is responsible for all costs related to making the property available for use, such as', 25599:'payment of all transportation, installation or rehabilitation costs. c thesolicitation shall describe the evaluation proceduresto befollowed, includingrental charges orequivalentsand other', 25600:'costs orsavings to be evaluated, and shall require all offerors to submit the followinginformationwith their offers 1 a listor descriptionof', 25601:'all government property that the offeroror its subcontractorspropose to useon arentfree basis. the list shall identify the accountable contract under', 25602:'which the property is held and the authorization for its use from thecontracting officer havingcognizance of the property; 2 the', 25603:'dates during which the property will be available for use including the first, last, and all intervening months and, for', 25604:'any property that will be used concurrently in performing two or more contracts, the amounts of the respective uses in', 25605:'sufficient detail tosupport prorating the rent; 3 the amount of rent that would otherwisebe charged in accordancewith far 52.2459, useand', 25606:'charges; and 4 a description of theofferorspropertymanagement system,plan,and any customary commercial practices, voluntary consensus standards, or industryleading practices and standardsto', 25607:'beused by the offeror in managing government property. d any additional instructions to thecontractor regarding property management,accountability, and use, not', 25608:'addressed in far clause 52.2451, government property,shouldbe specifically addressedin thestatement ofworkon the contract providing property or in a special provision.', 25609:'45.202 evaluation procedures. a thecontracting officer shall consider any potentially unfair competitive advantage that may result froman offeroror contractor possessinggovernmentproperty.', 25610:'this shall be done by adjusting the offers byapplying, for evaluation purposes only,a rentalequivalent evaluationfactor asspecified in far 52.2459. b', 25611:'the contractingofficer shall ensure the offeror’s property management plans, methods, practices, orprocedures for accounting for property are consistent with the', 25612:'requirements of the solicitation. this page intentionally left blank. 45.22 subpart 45.3 authorizing the use and rental of government property', 25613:'45.303 subpart 45.3 authorizing the use and rental of government property 45.301 use andrental. this subpart prescribes policies and procedures', 25614:'for contractor use and rentalof government property. a government property shall normally be provided on a rentfree basis in performance', 25615:'of the contract under which it is accountable or otherwise authorized. b rental charges,to theextent authorized do not apply to', 25616:'government property that is left in place orinstalled on contractorowned property for mobilization or futuregovernment production purposes; however,rental charges shall', 25617:'apply to that portion of property or its capacity used for nongovernment commercial purposes or otherwise authorized for use. c', 25618:'thecontracting officer cognizant of the government property may authorize the rentfree useof property in the possession ofnonprofit organizations when used', 25619:'for research, development,or educational work and 1 the use of the property is in the national interest; 2 the property', 25620:'willnot be used for the directbenefit of a profitmaking organization; and 3 the government receives some direct benefit, such as', 25621:'rightsto use theresults of the workwithout charge, fromits use. d in exchangeforconsideration as determined by the cognizant contractingofficers,the contractor may', 25622:'use government property under fixedprice contracts other than the contract to which it is accountable. when, after contract award, a', 25623:'contractor requests the use of governmentproperty, thecontracting officer shall obtain afair rental or other adequate consideration if use is authorized.', 25624:'e thecognizant contracting officers mayauthorize theuse ofgovernment property on arentfree basis on a cost type government contract other than the', 25625:'contract to which it is accountable. f in exchangeforconsideration as determined bythe cognizant contracting officer, the contractor may use government', 25626:'property for commercial use. prior approval of the head of the contracting activity is required where nongovernment use is expected', 25627:'to exceed 25 percent of the total use of government and commercial work performed. 45.302 contractswith foreign governments orinternational organizations.', 25628:'requestsby, or for the benefit of, foreign governments or international organizations to use government property shall be processed in accordance', 25629:'with agency procedures. 45.303 use of government property on independent research and development programs. the contractingofficer may authorize a contractor', 25630:'to use the property onan independent research and development ir&d program, if a such use will not conflict with the', 25631:'primary use of the property or enable the contractor to retain property that could otherwise be released; b the contractor', 25632:'agrees not to claim reimbursement against any government contract for the rental value of the property; and c a rentalcharge', 25633:'for the portion of the contractor’s ir&d program cost allocated to commercialworkis deducted from theclaim for reimbursement ofany agreedupon government', 25634:'share ofthe contractor’s ir&d costs. this page intentionally left blank. 45.32 subpart 45.4 title to government property 45.402 subpart 45.4', 25635:'title to government property 45.401 title to governmentfurnished property. the government retains title to all governmentfurnished property until properly disposed', 25636:'of, as authorized by law or regulation. property that is leased by the government and subsequently furnished to the contractor', 25637:'for use shall be considered governmentfurnished property under the clause 52.2451,governmentproperty. 45.402 title to contractoracquired property. a title vestsin the', 25638:'government for all property acquired or fabricated by thecontractor in accordance with the financing provisions or other specific requirements for', 25639:'passage of title in the contract. under fixedprice type contracts, in the absence of financing provisions or other specific requirements', 25640:'for passage of title in the contract, the contractor retains title to all property acquired by the contractor for use', 25641:'on the contract, except for property identified as a deliverable end item. if a deliverable item is to be retained', 25642:'by the contractor for use after inspection and acceptance by the government, it shall be made accountable to thecontract through', 25643:'a contract modification listing theitem as governmentfurnished property. b under cost type and timeandmaterial contracts, the government acquires title to', 25644:'all property to which the contractor is entitled to reimbursement, in accordance with paragraph e3 of clause 52.2451. this page', 25645:'intentionally left blank. 45.42 subpart 45.5 support government property administration 45.503 subpart 45.5 support government property administration 45.501prime contractor alternate', 25646:'locations. the property administrator assigned to the prime contract may request support property administration from another contract administrationoffice, for purposes', 25647:'of evaluatingprimecontractor management of property located at subcontractors and alternate locations. 45.502subcontractor and alternate prime contractor locations. a to ensure', 25648:'subcontractor compliancewith government property administration requirements, and with prime contractor consent, the property administrator assigned to the prime contract may', 25649:'request support property administration from another contract administrationoffice. if the prime contractor does not provide consent to support property administration', 25650:'at subcontractor locations, the property administrator shall refer the matter to the contractingofficer for resolution. b the prime property administrator', 25651:'shall accept the findings of the delegated support property administrator and advise theprimecontractor of theresults of property management reviews, including', 25652:'deficiencies found with the subcontractor’s property management system. c prime contractor consent is not required for support delegations involving prime', 25653:'contractor alternate locations. 45.503 supportproperty administrator findings. in instances wherethe prime contractor does not concur with the findingsof the support', 25654:'property administrator, the prime property administrator shall immediatelyrefer the matter to the contractingofficer. this page intentionally left blank. 45.52 subpart', 25655:'45.6 reporting, reutilization, and disposal 45.6022 subpart 45.6 reporting, reutilization, and disposal 45.600scope of subpart. this subpart establishes policies and', 25656:'procedures for the reporting, reutilization, and disposal of contractor inventory excess to contracts and of property that forms the basis', 25657:'of a claim against the government e.g., termination inventory under fixed price contracts. this subpart does not apply to the', 25658:'disposal of real property or to property for which the government has a lien or title solely as a result', 25659:'of advance, progress, or performancebased payments that have been liquidated. 45.601[reserved] 45.602 reutilization of governmentproperty. this section is applicable to', 25660:'the reutilization, including transfer and donation, of government property that is not required for continued performance of a government contract.', 25661:'except for 45.6021, this section does not apply to scrap other than scrap aircraft parts. 45.6021 inventory disposal schedules. a', 25662:'plant clearance officers should review and accept, or return for correction, inventory disposal schedules within 10 days following receipt from', 25663:'a contractor. schedules that are completed in accordancewith the instructions for standard form 1428 should be accepted. b plant clearance', 25664:'officers shall 1 use standard form 1423 to verify, in accordancewith agency procedures, accepted schedules within 20 days following acceptance;', 25665:'2 require the contractor to correct any discrepancies found during verification; 3 require the contractor to correct any failure to', 25666:'complete predisposal requirements of the contract; and 4 provide the contractor disposition instructions for property identified on an acceptable inventory', 25667:'disposal schedule within 120 days. a failure to provide timely disposition instructions may entitle the contractor to an equitable adjustment.', 25668:'c thecontractor may request the plant clearance officer’s approval to remove the governmentpropertyfrom an inventory schedule. 1 plant clearance officers', 25669:'should approveremoval of government property from aninventoryschedule when i the contractor wishes to purchase a contractoracquired or contractorproduced item at', 25670:'unit acquisition cost and credit the contract; ii the contractor is able to return unused property to the supplier at', 25671:'fair market value and credit the contract less, if applicable, a reasonable restockingfee thatis consistentwith the supplier’s customary practices; iii', 25672:'the government has authorized the contractor to use the property on another government contract; or iv the contractor hasrequested continueduse', 25673:'ofthe government property, and the contractingofficer has authorized its retention and further use. 2 if the screening process see 45.6023', 25674:'has not begun, the plant clearance officer shall adjust theschedule or return theschedule to the contractor for correction. if screening', 25675:'has begun, the plant clearance officer shall promptly notify the activity performing the screening that the items should be removed', 25676:'from the screening process. 45.6022 reutilization priorities. plant clearance officers shall initiate reutilization actionsforallpropertynot meeting the abandonmentor destruction criteria of', 25677:'45.603b. authorized methods, listed indescending orderfrom highest to lowest priority,are a reuse within the owning agency; b transfer of educationally', 25678:'useful equipment toschools and nonprofit organizations see executive order12999, educational technology: ensuring opportunity forall children in the next century,april 17,', 25679:'1996,and 15 u.s.c. 3710i; c report to gsa for reuse within the federal government or donation as surplus property; d', 25680:'dispose of the following property in accordance with agency procedures without reporting to gsa: 1 property determined appropriate for abandonment', 25681:'or destruction see federal management regulation fmr 10236.305, 41 cfr 10236.305. 2 property furnished to nonappropriated fund activities see fmr', 25682:'10236.165, 41 cfr 10236.165. 3 foreign excess personal property see fmr 10236.380, 41 cfr 10236.380. 45.6023 federal acquisition regulation 4', 25683:'scrap, except aircraft in scrap condition. 5 perishables, defined for the purposes of this section as any personal property subjectto', 25684:'spoilage or decay. 6 tradingstamps and bonus goods. 7 hazardous waste or toxic and hazardous materials. 8 controlled substances. 9', 25685:'property dangerous topublic healthand safety. 10 classified items or property determined to be sensitive for reasons of national security; and', 25686:'e dispose of nuclear materials see 45.6033b5 in accordance with the nuclear regulatory commission, applicable state licenses, applicable federal regulations,', 25687:'and agency regulations. 45.6023screening. the screening period begins uponthe plant clearance officer’s acceptanceof an inventory disposal schedule. the plant clearance', 25688:'officer shall determine whether standardor special screeningis appropriate and initiatescreening actions. a standard screening. the standard screening period is 46', 25689:'days. 1 first through twentieth dayscreening by the contracting agency. the contracting agency has 20 days to screen property reported', 25690:'on the inventory disposal schedule for: other use within the agency; transfer of educationally useful equipment to other federal agencies', 25691:'that have expressed a need for the property; and transfer of educationally useful equipment to schoolsand nonprofitorganizations if a federal', 25692:'agency hasnot expressed a need for the property. excess personal property,meeting the conditions of 45.603, may be abandoned, destroyed, or', 25693:'donated to public bodies. no later than the21st day, the plantclearance officershallsubmit four copies ofthe revised schedules and standard form', 25694:'sf 120, report of excess personal property, or an electronicequivalent to gsa see 41 cfr 10236.215. 2 twentyfirst through fortysixth', 25695:'day 21 days concurrent screening plus5 daysdonation processing.i screening by other federal agencies. gsa will normally honor requests for transfers', 25696:'of property on a firstcomefirstserved basis through the41st day. whena requestis honored,the gsaregional officeshallpromptly transmit to the plantclearance officer an', 25697:'approved transferorder that includes shipping instructions. ii screening for possible donation. screening for donation is also completed during days 21', 25698:'through 41. property is not available for allocation to donees until after the completion of screening. days 42 through 46', 25699:'are reserved for gsa to make such allocation. 3 screening period transfer request. if an agency receives an intraagency transfer', 25700:'request during the screening periods described inparagraph a2 of this section, the plant clearance officer shall request gsa approval to', 25701:'withdraw the item from the inventory disposal schedule. b special screening requirements. 1 special tooling and special test equipment without', 25702:'commercial components. agencies shall follow the procedures in paragraph a of this section. this property owned by the department of', 25703:'defense dod or the national aeronautics and space administration nasa may be screened for reutilization only within these agencies. 2', 25704:'special test equipment with commercial components. i agencies shall complete the screening required by paragraph a of this section. if', 25705:'an agency has no further need for the property and the contractor has not expressed an interest in using or', 25706:'acquiringthe property by annotating the inventory disposal schedule,the plant clearance officer shall forward the inventory disposal schedule tothe gsaregional officethat', 25707:'serves theregion in which thepropertyis located. ii if the contractor has expressed an interest in using the property on another', 25708:'government contract, the plant clearance officer shall contact the contracting officer for that contract. if the contracting officer concurs withthe', 25709:'proposed use, thecontracting officer for the contract under which thepropertyis accountable shall transfer the property’s accountability to thatcontract. ifthe contracting', 25710:'officer does not concurwith the proposed use, the plantclearance officer shall deny the contractor’s requestandshallcontinue thescreening process. iii if the', 25711:'property is contractoracquired or produced, and the contractor or subcontractor has expressed an interest in acquiring the property, and no', 25712:'other party expresses an interest during agency or gsa screening, the property may besold to the contractor or subcontractor at', 25713:'acquisition cost. 3 printing equipment. agenciesshallreport all excess printing equipment tothe publicprinter,government publishing office, 732 north capitol street,nw, washington, dc', 25714:'20401, afterscreening within theagency see 44 u.s.c. 312. if the public printer does not express a need for the equipment', 25715:'within 21 days, the agency shall submit the report to gsa for further use and donation screening as described in', 25716:'paragraph a of this section. subpart 45.6 reporting, reutilization, and disposal 45.6041 4 nonnuclear hazardous materials, hazardous wastes, and classified', 25717:'items. these items shall be screened in accordance with agency procedures. report nonnuclear hazardous materials to gsa if the agency', 25718:'has no requirement for them. 5 nuclear materials. the possession, use, and transfer of certain nuclear materials are subject to', 25719:'the regulatory controls of the nuclear regulatory commission nrc. contracting activities shall screen excess nuclear materials in the following categories:', 25720:'i byproduct material. any radioactive material except special nuclear material yielded in or made radioactive by exposure to the radiation', 25721:'incident to producing or using special nuclear material. ii source material. uranium or thorium, or any combination thereof, in any', 25722:'physical or chemical form; or ores that contain by weight onetwentieth of 1 percent 0.05 percent or more of uranium,', 25723:'thorium, or any combination thereof. source material does not include special nuclear material. iii special nuclear material. plutonium, uranium 233,', 25724:'uranium enriched in the isotope 233 or in the isotope 235, any other material that the nrc determines to be', 25725:'special nuclear material but not including source material; or any material artificially enriched by any nuclear material. 45.6024interagency property transfer', 25726:'costs. agencies whose property is transferred to other agencies shall not be reimbursed for the property in any manner unless', 25727:'thecircumstances of fmr 10236.28541cfr10236.285 apply. the agencyreceiving thepropertyshallpay any transportation costs that are not thecontractor’s responsibilityandany costs topack, crate, or', 25728:'otherwise prepare the property for shipment. the contract administration office shall process appropriate contractmodifications. toaccelerate plant clearance, the receiving agency', 25729:'shall promptly furnish funding data, and transfer or shipping documents to the contract administration office. 45.603 abandonment ordestruction of personal', 25730:'property. a when contractor inventory is processed through the reutilization screening process prescribed in 45.6022 without success, and provided the', 25731:'property has no commercial value, does not require demilitarization, and does not constitute a dangerto public health or welfare,plant clearance', 25732:'officers orother authorizedofficialsmay without further approval 1 direct the contractor to destroy the property; 2 abandon nonsensitive property at thecontractor’s', 25733:'or subcontractor’s premises; or 3 abandon sensitive property at the contractor’s or subcontractor’spremises, with contractor consent. b provided a governmentreviewing', 25734:'official at least one levelhigher than the plant clearance officer or other agency authorized official approves, plant clearance officers or', 25735:'other agencyauthorized officials may authorize the abandonment, or order the destruction of other contractor inventory at the contractor’sor subcontractor’spremises, in', 25736:'accordance withfmr 10236.305 through 325 41 cfr 10236.305325 and consistent with the following: 1 the property is not considered sensitive,', 25737:'does not require demilitarization, has no commercial value or reutilization, transfer or donation potential, and does not constitute a danger', 25738:'to public health or welfare. 2 the estimated cost of continued care and handling of the property including advertising, storage', 25739:'and other costs associated with making the sale, exceed the estimated proceeds from its sale. c inlieu of abandonment or', 25740:'itsauthorized destruction, the plant clearance officer or authorized official may authorize the donation ofpropertyincluding unsold surplus property to public bodies,', 25741:'provided thatthe property is notsensitive property, does not require demilitarization, and it does not constitute a danger to public health', 25742:'or welfare. the government will not bear any of the costs incident to such donations. d unless the property qualifies', 25743:'for one of the exceptions under fmr 10236.330 41 cfr 10236.330, the plant clearance officer or requesting officialwill ensure prior', 25744:'public notice of suchactions of abandonment or destruction consistent with fmr 10236.325 41 cfr 10236.325. 45.604 sale of surplus personal', 25745:'property. 45.6041sales procedures. surplus personal property that has completed screening in accordance with 45.6023a shall be sold in accordance with', 25746:'the policy for the sale of surplus personal property contained in the federal management regulation, at part 10238 41 cfr', 25747:'part 10238. agencies may specify implementing procedures. 45.6042 federal acquisition regulation 45.6042use of gsa sponsoredsales centers. agencies may use sales', 25748:'center services. use of such centers for sale of surplus property is authorized when in the best interest of the', 25749:'government, consistent with contract terms and conditions. 45.6043proceeds from sales of surplus property. proceedsof any sale are to be credited', 25750:'to the treasury of the united states as miscellaneous receipts, unless otherwise authorized by statute or the contract or any', 25751:'subcontract thereunder authorizes the proceeds to be credited to the price or cost of the work 40 u.s.c. 571 and', 25752:'574. 45.6044sale ofproperty pursuant tothe exchange/sale authority. agencies should consider the sale of property pursuant to the exchange/sale authority in', 25753:'fmr 10239 41 cfrpart10239 when agencies are acquiring or plan to acquire similar products and other requirements of the authority', 25754:'are satisfied. 45.605 inventorydisposal reports. the plantclearance officershallpromptly prepare an sf1424, inventory disposal report, following disposition of the property identified', 25755:'on an inventory disposal schedule and the crediting of any related proceeds. the report shall identify any lost or otherwise', 25756:'unaccounted for property and any changes in quantity or value of the property made by the contractor after submission of', 25757:'theinitial inventory disposal schedule. the report shall be provided to the administrative contractingofficer or, for terminationinventory, to the termination contracting', 25758:'officer,with a copy tothe property administrator. 45.606 contractor scrap procedures. a thepropertyadministrator should, in coordination with the plant clearance officer,', 25759:'ensurethat contractor scrap disposal processes,methods, andpractices allow for effective, efficient, and properdisposition and are properly documented in the contractor’s property', 25760:'management procedures. b the property administrator should determine the extent to which separate disposal processing or physical segregation for different', 25761:'scraptypes is or may be required. such scrap may require physical segregation, unique disposal processing, or separate plant clearance reporting.', 25762:'for example, the scope of work may create scrap 1 consisting of sensitive items; 2 containing hazardous materials or wastes;', 25763:'3 contaminated with hazardous materials or wastes; 4 that is classified or otherwise controlled; 5 containing precious or strategic metals;', 25764:'or 6 that is dangerous topublic healthor safety. c absent contract terms and conditionsto thecontrary, the government may abandon parts', 25765:'removed and replaced from property as a result of normal maintenance actionsor removed from property as a result of the', 25766:'repair,maintenance, overhaul, or modification process. part 46 quality assurance sec. 46.000 scope of part. subpart 46.1 general 46.101 definitions. 46.102', 25767:'policy. 46.103 contracting office responsibilities. 46.104 contract administration office responsibilities. 46.105 contractor responsibilities. subpart 46.2 contract quality requirements 46.201 general.', 25768:'46.202 types of contract quality requirements. 46.2021 contracts for commercial products and commercial services. 46.2022 government reliance on inspection by', 25769:'contractor. 46.2023 standard inspection requirements. 46.2024 higherlevel contract quality requirements. 46.203 criteria for use of contract quality requirements. subpart 46.3', 25770:'contract clauses 46.301 contractor inspection requirements. 46.302 fixedprice supply contracts. 46.303 costreimbursement supply contracts. 46.304 fixedprice service contracts. 46.305 costreimbursement', 25771:'service contracts. 46.306 timeandmaterial and laborhour contracts. 46.307 fixedprice research and development contracts. 46.308 costreimbursement research and development contracts. 46.309', 25772:'research and development contracts short form. 46.310 [reserved] 46.311 higherlevel contract quality requirement. 46.312 construction contracts. 46.313 contracts for dismantling,', 25773:'demolition, or removal of improvements. 46.314 transportation contracts. 46.315 certificate of conformance. 46.316 responsibility for supplies. 46.317 reporting nonconforming items.', 25774:'subpart 46.4 government contract quality assurance 46.401 general. 46.402 government contract quality assurance at source. 46.403 government contract quality assurance', 25775:'at destination. 46.404 government contract quality assurance for acquisitions at or below the simplified acquisition threshold. 46.405 subcontracts. 46.406 foreign', 25776:'governments. 46.407 nonconforming supplies or services. 46.408 singleagency assignments of government contract quality assurance. subpart 46.5 acceptance 46.501 general. 46.502', 25777:'responsibility for acceptance. 46.503 place of acceptance. 46.504 certificate of conformance. 46.505 transfer of title and risk of loss. subpart', 25778:'46.6 material inspection and receiving reports 46.601 general. subpart 46.7 warranties 46.701 [reserved] 46.702 general. 46.703 criteria for use of', 25779:'warranties. 46.704 authority for use of warranties. 46.705 limitations. 46.706 warrantytermsandconditions. 46.707 pricing aspects of fixedprice incentive contract warranties. 46.708', 25780:'warrantiesofdata. 46.709 warrantiesofcommercialproductsand commercial services. 46.710 contract clauses. subpart 46.8 contractor liability for loss of ordamage to propertyof thegovernment 46.800', 25781:'scope of subpart. 46.801 applicability. 46.802 definition. 46.803 policy. 46.804 [reserved] 46.805 contract clauses. this page intentionally left blank. subpart', 25782:'46.1 general 46.102 46.000scope of part. this part prescribes policies and procedures to ensure that supplies and services acquired under', 25783:'government contract conform to the contract’squalityand quantity requirements. included are inspection, acceptance,warranty, and other measures associated with quality requirements. subpart', 25784:'46.1 general 46.101definitions. as used in this part acceptance means the act of an authorized representative of the government by', 25785:'which the government, for itself or as agent of another, assumes ownershipof existing identified supplies tendered or approves specificservices renderedas', 25786:'partial or complete performance of the contract. conditional acceptance means acceptance of supplies or services that do not conform to', 25787:'contract quality requirements, or are otherwise incomplete, that the contractor is required to correct or otherwise complete by a specified', 25788:'date. contract quality requirements means the technical requirements in the contract relating to the quality of the product or serviceand', 25789:'those contract clauses prescribing inspection,andotherqualitycontrolsincumbent on thecontractor, to assure that the product or service conforms to the contractual requirements. counterfeit', 25790:'item means an unlawful or unauthorized reproduction, substitution, or alteration that has been knowingly mismarked, misidentified,or otherwise misrepresented tobe an', 25791:'authentic, unmodified itemfrom the originalmanufacturer, or a source with theexpress written authority of the original manufacturer orcurrent design activity, includingan', 25792:'authorized aftermarket manufacturer. unlawfulor unauthorized substitution includes useditemsrepresented as new, orthe false identificationof grade, serial number, lot number,date code, or', 25793:'performancecharacteristics. critical item means an item, the failure of which is likely to result in hazardous or unsafe conditions for', 25794:'individuals using, maintaining, or depending upon the item; or is likely to prevent performance of a vital agency mission. critical', 25795:'nonconformance means a nonconformance that is likely to result in hazardous or unsafe conditions for individuals using, maintaining, or depending', 25796:'upon the supplies or services; or is likely to prevent performance of a vital agency mission. design activity means an', 25797:'organization,government or contractor, that has responsibility for the design and configuration of an item, includingthe preparation or maintenanceof design documents.', 25798:'design activitycould be the original organization, or an organization to which design responsibility has been transferred. government contract quality assurance', 25799:'means the various functions, including inspection, performed by the government to determine whether a contractor has fulfilled thecontract obligations pertainingto', 25800:'quality and quantity. major nonconformance means a nonconformance, other than critical, that is likely to result in failure of the', 25801:'supplies or services, or to materially reduce the usability of the supplies or services for their intended purpose. minor nonconformance', 25802:'means a nonconformance that is not likely to materially reduce the usability of the supplies or services for their intended', 25803:'purpose, oris adeparture fromestablished standardshaving little bearing on the effective useor operation of the supplies or services. offtheshelf item means', 25804:'anitem produced and placed in stock by a contractor, or stocked bya distributor,before receiving orders or contracts for its sale.', 25805:'the item may be commercial or produced to military or federal specifications or description. patent defect means any defect which', 25806:'exists at the time of acceptance and is not a latent defect. subcontractor see 44.101. suspect counterfeit item means an', 25807:'item for which credible evidence including but not limited to, visual inspection or testing provides reasonable doubt that the item', 25808:'is authentic. testing means that element of inspection that determines the properties or elements, including functional operation of supplies or', 25809:'their components, by the application of established scientific principles and procedures. 46.102 policy. agencies shall ensure that a contracts include', 25810:'inspection and other quality requirements, including warranty clauses when appropriate, that are determined necessary to protect the government’s interest; b', 25811:'supplies or services including commercial services tendered by contractors meet contract requirements; c government contract quality assurance is conducted before', 25812:'acceptance except as otherwise provided in this part, by or under the direction of government personnel; d no contract precludes', 25813:'the government from performing inspection; federal acquisition regulation e nonconforming supplies or services are rejected, except as otherwise provided in', 25814:'46.407; f contracts for commercialproducts relyon a contractor’s existing quality assurance system as a substitute for compliance with government inspection', 25815:'and testing before tender for acceptance unless customary market practices for the commercial product being acquired permit inprocess inspection 41', 25816:'u.s.c. 3307. any inprocess inspection by the government shall be conducted in a manner consistent with commercial practice; and g', 25817:'the quality assurance and acceptanceservices of otheragencies are used when this will be effective, economical, or otherwiseinthegovernment’sinterestsee 42.002 and subpart', 25818:'42.2. 46.103 contracting office responsibilities. contracting offices are responsible for a receiving from the activity responsible for technical requirements any', 25819:'specifications for inspection, testing, and other contract quality requirements essential to ensure the integrity of the supplies or services the', 25820:'activity responsible for technical requirementsis responsible for prescribing contract quality requirements, such as inspection and testing requirements or, for service', 25821:'contracts, a quality assurance surveillance plan; b including in solicitations and contracts theappropriate requirements for the contractor’s control of quality', 25822:'for the supplies or services to be acquired; c issuing any necessary instructions to the cognizant contract administration office and', 25823:'acting onrecommendations submitted by that office see 42.301 and 46.104f; d when contract administration is retained see 42.201, verifying that', 25824:'the contractor fulfills the contract quality requirements; and e ensuring that nonconformances are identified, and establishing the significance of a', 25825:'nonconformance when considering the acceptability of supplies or services which do not meet contract requirements. 46.104 contract administration office responsibilities.', 25826:'when acontract is assigned for administration tothe contract administrationoffice cognizant ofthe contractor’s plant, that office, unless specifiedotherwise, shall a develop', 25827:'and apply efficient procedures for performing government contract quality assurance actions under the contract inaccordancewith the writtendirection of the contracting', 25828:'office; b perform all actions necessary to verify whether the supplies or services conform to contract quality requirements; c maintain,', 25829:'as part of the performance records of the contract, suitable records reflecting 1 the nature of government contract quality assurance', 25830:'actions, including, when appropriate, the number of observations made and the number and type of defects; and 2 decisions regarding', 25831:'the acceptability of the products, the processes, and the requirements, as well as action to correct defects. d implementanyspecific written', 25832:'instructions from the contractingoffice; e report to the contracting officeanydefects observedin design or technical requirements, including contract quality requirements; and', 25833:'f recommend any changes necessary to the contract, specifications, instructions, or other requirements that will provide more effective operations or', 25834:'eliminateunnecessary costs see 46.103c. 46.105 contractor responsibilities. a the contractor is responsible for carrying out its obligations under the contract', 25835:'by 1 controlling the quality of supplies or services; 2 tendering to the governmentforacceptance only those supplies or servicesthat conform', 25836:'to contractrequirements; 3 ensuring that vendors or suppliers of raw materials, parts, components, subassemblies, etc., have an acceptable quality control', 25837:'system; and 4 maintaining substantiating evidence, when required by the contract, that the supplies or services conform to contract quality', 25838:'requirements, and furnishing such information to the government as required. b the contractor may be required to provide and maintain', 25839:'an inspection system or program for the control of quality that is acceptable to the government see 46.202. c the', 25840:'control of quality by the contractor may relate to, but is not limited to 1 manufacturing processes,to ensure that the', 25841:'productis produced to, and meets, the contract’s technical requirements; subpart 46.1 general 46.105 2 drawings, specifications, and engineering changes, to', 25842:'ensure that manufacturing methods and operations meet the contract’stechnicalrequirements; 3 testing and examination, toensure that practices and equipment provide the', 25843:'means for optimum evaluation of the characteristics subject to inspection; 4 reliability and maintainability assessment life, endurance, and continued readiness;', 25844:'5 fabrication and delivery of products, to ensure that only conforming products are tendered to the government; 6 technical documentation,including', 25845:'drawings, specifications, handbooks, manuals, and other technical publications; 7 preservation, packaging, packing, and marking; and 8 procedures and processes for', 25846:'services to ensure that services meet contract performance requirements. d the contractor is responsible for performing all inspections and test', 25847:'required by the contract except those specifically reserved for performance by the government see 46.201c. this page intentionally left blank.', 25848:'46.14 subpart 46.2 contract quality requirements 46.2024 subpart 46.2 contract quality requirements 46.201general. a thecontracting officer shall include in the', 25849:'solicitationandcontract the appropriate quality requirements. the typeand extent of contract quality requirements needed depends on the particular acquisition and may', 25850:'range from inspection at time of acceptance to a requirement for thecontractor’simplementation of a comprehensiveprogramforcontrolling quality. b as feasible, solicitations', 25851:'and contracts may provide for alternative, but substantially equivalent, inspection methods to obtain wide competition and low cost. the contracting', 25852:'officer mayalso authorize contractorrecommendedalternatives when in the government’s interestand approved bythe activity responsiblefortechnicalrequirements. c although contracts generally make contractors responsible', 25853:'for performing inspection before tendering supplies to the government, there are situations in which contracts will provide for specialized inspections', 25854:'to be performed solely by the government. among situations of this kind are 1 tests that require use of specializedtest', 25855:'equipment or facilitiesnot ordinarily available insuppliers’ plantsor commercial laboratories e.g., ballistic testing of ammunition, unusual environmental tests, and simulated service', 25856:'tests; and 2 contracts that require government testing for first article approval see subpart 9.3. d except as otherwise specified', 25857:'by thecontract, requiredcontractor testingmay be performed in the contractor’s or subcontractor’s laboratory or testing facility, or inanyotherlaboratoryor testingfacility acceptable to', 25858:'the government. 46.202 typesof contractquality requirements. contract quality requirements fall into four general categories, depending on the extent of quality', 25859:'assurance needed by the government for the acquisition involved. 46.2021contracts for commercial products andcommercial services. when acquiring commercial products see', 25860:'part 12, the government shall rely on contractors existing quality assurance systems as a substitute for government inspection and testing', 25861:'before tender for acceptance unless customary market practices for the commercial product being acquired include inprocess inspection. any inprocess inspection', 25862:'by the government shall be conducted in a manner consistent with commercial practice. the government shall rely on the contractor', 25863:'to accomplish all inspection and testing needed to ensure that commercial services acquired conform to contract requirements before they are', 25864:'tendered to the government. 46.2022government reliance on inspection bycontractor. a except as specified in b of this section, the government', 25865:'shall rely on the contractor to accomplish all inspection and testing needed to ensure that supplies or services acquired at', 25866:'or below the simplified acquisition threshold conform to contract quality requirements before they are tendered to the government see 46.301.', 25867:'b the government shall not rely on inspection by the contractor if the contracting officerdeterminesthat the government has a need', 25868:'to test the supplies or services in advance of their tender for acceptance, or to pass judgment upon the adequacy', 25869:'ofthe contractor’s internal work processes. in makingthe determination, thecontracting officer shall consider 1 the nature of the supplies and services', 25870:'being purchased and their intended use; 2 the potential losses in the event of defects; 3 the likelihood of uncontested', 25871:'replacement or correction of defective work; and 4 the cost of detailed government inspection. 46.2023standard inspection requirements. a standard inspection', 25872:'requirements are contained in the clauses prescribed in 46.302 through 46.308, and in the product and service specifications that are', 25873:'included in solicitations and contracts. b the clauses referred to in a of this section 1 require the contractor to', 25874:'provide and maintain an inspection system that is acceptable to the government; 2 give the government the right to make', 25875:'inspections and tests while work is in process; and 3 require the contractor to keep complete, and make available to', 25876:'the government, records of its inspection work. 46.2024higherlevel contract quality requirements. a agencies shall establish procedures for determining whenhigherlevelcontract quality', 25877:'requirements are necessary, for determining the risk both thelikelihood and theimpactof nonconformance, and for advising the contracting officer about federal', 25878:'acquisition regulation which higherlevel standards should be applied and included in the solicitation and contract. requiring compliance with higherlevel quality', 25879:'standards is necessary in solicitations and contracts for complex or critical items see 46.203or when the technical requirements of the', 25880:'contract require 1 control of such things as design, work operations, inprocess controls, testing, and inspection; or 2 attention to', 25881:'such factors as organization, planning, work instructions,documentation control,and advanced metrology. b examples of higherlevel quality standards include overarching quality management', 25882:'system standards such as iso 9001, asq/ansi e4, asme nqa1, sae as9100, sae as9003, and iso/ts 16949, and product or', 25883:'process specific quality standards such as sae as5553. 46.203 criteria foruse of contract quality requirements. the extent of contract quality', 25884:'requirements, including contractor inspection, required under a contract shall usually be based upon the classification of the contract item supply', 25885:'or service as determined by its technical description, its complexity, and thecriticality of its application. a technical description. contract items', 25886:'may be technically classified as 1 commercial described in commercial catalogs, drawings, or industrial standards; see part 2; or 2', 25887:'militaryfederal described in government drawings and specifications. b complexity. 1 complex items have quality characteristics, not wholly visible in the', 25888:'end item, for which contractual conformance must be established progressively through precise measurements, tests, and controls applied during purchasing, manufacturing,', 25889:'performance,assembly, and functional operation either as an individual item orin conjunction with other items. 2 noncomplex items have quality characteristics', 25890:'for which simple measurementandtest of the end item are sufficient to determine conformance to contract requirements. c criticality. 1 a', 25891:'critical application of an item is one in which the failure of the item could injure personnel or jeopardizea vital', 25892:'agencymission. a critical itemmay be either peculiar, meaning it has only one application,or common, meaning it has multiple applications. 2', 25893:'a noncritical application is any other application. noncritical items may also be either peculiar or common. subpart 46.3 contract clauses', 25894:'46.308 subpart 46.3 contract clauses 46.301 contractor inspection requirements. the contractingofficer shall insertthe clause at 52.2461, contractor inspection requirements, in', 25895:'solicitations and contracts for supplies or services when the contract amount is expected to be at or below the simplified', 25896:'acquisition threshold and a inclusionof the clause is necessary to ensurean explicit understanding of the contractor’sinspectionresponsibilities, or b inclusion of', 25897:'the clause is requiredunder agencyprocedures. the clauseshallnot be used if the contracting officer has made the determination specified in 46.2022b.', 25898:'46.302fixedprice supply contracts. the contractingofficer shall insertthe clause at 52.2462, inspection of suppliesfixedprice, in solicitations and contracts for supplies, or', 25899:'services that involve the furnishing of supplies, when a fixedprice contract is contemplated and the contract amount is expectedto exceed', 25900:'thesimplified acquisition threshold. the contracting officer may insert theclause in such solicitations and contracts when the contract amount is expected', 25901:'to be at or below the simplified acquisition threshold and inclusion of the clause is inthe government’s interest. if a', 25902:'fixedprice incentive contract is contemplated, the contracting officer shall use theclause with itsalternatei. if a fixedceilingprice contract withretroactive price redetermination', 25903:'is contemplated, thecontracting officer shall use the clause with its alternateii. 46.303 costreimbursement supply contracts. the contractingofficer shall insertthe clause', 25904:'at 52.2463, inspection of suppliescostreimbursement, in solicitations and contracts for supplies, or services that involve the furnishing of supplies, when', 25905:'a costreimbursement contract is contemplated. 46.304fixedprice service contracts. the contractingofficer shall insertthe clause at 52.2464, inspection of servicesfixedprice, in solicitations', 25906:'and contracts for services, or supplies that involve the furnishing of services, when a fixedprice contract is contemplated and the', 25907:'contract amount is expectedto exceed thesimplified acquisition threshold. the contracting officer may insert theclause in such solicitations and contracts when', 25908:'the contract amount is expected to be at or below the simplified acquisition threshold and inclusion isin thegovernment’s interest. 46.305', 25909:'costreimbursement servicecontracts. the contractingofficer shall insertthe clause at 52.2465, inspection of servicescost reimbursement, in solicitations and contracts for services, or', 25910:'supplies that involve the furnishing of services, when a costreimbursement contract is contemplated. 46.306 timeandmaterial and laborhour contracts. the contractingofficer', 25911:'shall insertthe clause at 52.2466, inspectiontimeandmaterialandlaborhour, in solicitations and contracts when a timeandmaterial contract or a laborhour contract is contemplated.', 25912:'if government inspection and acceptance are to be performed at the contractor’s plant, the contracting officer shall use the clause', 25913:'with its alternatei. 46.307 fixedprice researchand development contracts. a thecontracting officer shall insert the clause at 52.2467, inspection of research', 25914:'and developmentfixedprice, in solicitations and contracts for research and development when 1 the primary objective of the contract is the', 25915:'delivery of end items other than designs, drawings, or reports, 2 a fixedprice contract is contemplated, and 3 the contract', 25916:'amount is expected to exceed the simplified acquisition threshold; unless use of the clause is impractical and the clause prescribed', 25917:'in 46.309 is considered to be more appropriate. b the contractingofficer may insert the clause insuch solicitations and contracts whenthe', 25918:'contract amountis expected to be at or belowthe simplified acquisition threshold, and itsuse is in the government’s interest. 46.308 costreimbursement', 25919:'research and development contracts. the contractingofficer shall insertthe clause at 52.2468, inspection of research and developmentcostreimbursement, in solicitations and contracts', 25920:'for research and development when a the primary objective of the contract is the delivery of federal acquisition regulation end', 25921:'items other than designs, drawings, or reports, and ba costreimbursement contract is contemplated; unless use of the clause is impractical', 25922:'and the clause prescribed in 46.309 is considered to be more appropriate. if it is contemplated that the contract will', 25923:'beon anofee basis, the contracting officer shall use the clause with its alternatei. 46.309 research and development contracts short form.', 25924:'the contractingofficer shall insertthe clause at 52.2469, inspection of research and development short form, in solicitations and contracts for research', 25925:'and development when the clause prescribed in 46.307 or the clause prescribed in 46.308 is not used. 46.310[reserved] 46.311higherlevel contract', 25926:'quality requirement. a thecontracting officer shall insert the clause at 52.24611, higherlevel contract quality requirement, in solicitations and contracts when', 25927:'the inclusion of a higherlevel contract quality requirement is necessary see 46.2024. b for each higherlevel quality standard, the contracting', 25928:'officershallfill in thetitle, number, date, andtailoring if any. 46.312construction contracts. the contractingofficer shall insertthe clause at 52.24612, inspection of construction,', 25929:'in solicitations and contracts for construction when a fixedprice contract is contemplated and the contract amount is expected to exceed', 25930:'the simplified acquisition threshold. the contracting officer mayinsert the clausein such solicitations and contracts when the contract amount is expectedto', 25931:'beat or below thesimplified acquisition threshold,andits use is in the government’s interest. 46.313 contractsfor dismantling,demolition,or removalof improvements. the contractingofficer shall', 25932:'insertthe clause at 52.24613, inspectiondismantling, demolition, or removal of improvements, in solicitations and contracts for dismantling, demolition, or removal of', 25933:'improvements. 46.314 transportation contracts. the contractingofficer shall insertthe clause at 52.24614,inspection of transportation, in solicitations and contracts for freight transportation', 25934:'services including localdrayage by rail, motor including bus, domestic freight forwarder, and domestic water carriers includinginland, coastwise,andintercoastal. the contracting officer', 25935:'shall not use the clauseforthe acquisition of transportation services by domestic or international air carriers or by international ocean carriers,', 25936:'or to freight services provided under bills of lading or to those negotiated for reduced rates under 49 u.s.c. 10721', 25937:'or 1 3712. see part 47, transportation. 46.315certificate of conformance. the contractingofficer shall insertthe clause at 52.24615, certificate of conformance,', 25938:'in solicitations and contracts for supplies or services when the conditions in 46.504 apply. 46.316responsibility for supplies. the contractingofficer shall', 25939:'insertthe clause at 52.24616, responsibility for supplies, in solicitations and contracts for a supplies, b services involving the furnishing of', 25940:'supplies, or c research and development, when a fixedprice contract is contemplatedand the contract amountis expectedto exceed the simplified acquisition', 25941:'threshold. the contracting officer may insert the clause in such solicitations and contracts when the contract amount is not expected', 25942:'to exceed the simplified acquisition threshold and inclusion of the clause is authorized under agency procedures. 46.317reporting nonconforming items. a', 25943:'except as provided in paragraph b of this section, the contracting officer shall insert theclause at 52.24626, reporting nonconforming items,', 25944:'in solicitations and contracts as follows: 1 for an acquisition by any agency,including the department of defense, of– i any', 25945:'items that are subject to higherlevel quality standards in accordance with the clause at 52.24611, higher level contract quality requirement;', 25946:'iiany items thatthe contracting officer, inconsultation with the requiring activity determines to be critical items for which use of the', 25947:'clause is appropriate; subpart 46.3 contract clauses 46.317 2 in addition as required by paragraph c4 of section 818 of', 25948:'the national defense authorization act for fiscal year 2012 pub. l. 11281,foran acquisition that exceeds the simplified acquisition thresholdand is', 25949:'by, or for, the department of defense of electronic parts or end items, components, parts, or materials containing electronic parts,', 25950:'whether or not covered in paragraph a1 of this section; or 3 for the acquisition of services, if the contractor', 25951:'will furnish, as part of the service, any items that meet the criteria specified in paragraphs a1 through a2 of', 25952:'this section. b the contractingofficer shall not insert the clause at 52.24626, reporting nonconforming items, in solicitations and contracts when', 25953:'acquiring— 1 commercial products and commercial services using part 12 procedures; or 2 medical devices that are subject to the', 25954:'food and drug administration reporting requirements at 21 cfr 803. c if required by agency policy, thecontracting officer may modifyparagraph', 25955:'b4of the clause at 52.24626, but only to change the responsibility for the contractor to submit reports to the agency', 25956:'rather than to governmentindustry data exchange program gidep, so that the agency instead of the contractor submits reports to gidep', 25957:'within the mandatory 60 days. this page intentionally left blank. 46.34 subpart 46.4 government contract quality assurance 46.403 subpart 46.4', 25958:'government contract quality assurance 46.401general. a government contract quality assurance shall be performed at such times including any stage of', 25959:'manufacture or performance of services and places including subcontractors’ plants as may be necessary to determine that the supplies or', 25960:'services conform to contract requirements. quality assurance surveillance plans should be prepared in conjunction with the preparation of the statement', 25961:'of work. the plans should specify 1 all work requiring surveillance; and 2 the method of surveillance. b each contract', 25962:'shall designate the place or places where the government reserves the right to perform quality assurance. c if the contract', 25963:'provides for performance of government quality assurance at source, the place or places of performance may notbe changed without the', 25964:'authorization of the contracting officer. d if a contract provides for delivery and acceptance at destination and the government inspects', 25965:'the supplies at a place other than destination, thesupplies shall notordinarily be reinspected at destination, but should be examined for', 25966:'quantity, damage in transit, and possible substitution or fraud. e government inspection shall be performed by or under the direction', 25967:'or supervision of government personnel. f government inspection shall be documented on an inspection or receiving report form or commercial', 25968:'shipping document/packing list, under agency procedures see subpart 46.6. g agencies may prescribe the use of inspection approval or disapproval', 25969:'stamps to identify and control supplies and material that have been inspected for conformance with contract quality requirements. 46.402 governmentcontract', 25970:'quality assuranceat source. agencies shall perform contract quality assurance, including inspection, at source if a performance at any other place', 25971:'would require uneconomical disassembly or destructive testing; b considerable loss would result from the manufacture and shipment of unacceptable supplies,', 25972:'or from the delay in making necessary corrections; c special required instruments, gauges, or facilities are available only at source;', 25973:'d performance at any other place would destroy or require the replacement of costly special packing and packaging; e government', 25974:'inspection during contract performance is essential; or f it is determined for other reasons tobe inthe government’s interest. 46.403government contract', 25975:'quality assurance at destination. a government contract quality assurance that can be performed at destination is normally limited to inspection', 25976:'of the supplies or services. inspection shall be performed at destination under the following circumstances 1 supplies are purchasedofftheshelf and', 25977:'require no technical inspection; 2 necessary testing equipment is located only at destination; 3 perishable subsistence supplies purchased within the', 25978:'united states, except that those supplies destined for overseas shipment will normally be inspected for condition and quantity at points', 25979:'of embarkation; 4 brand nameproducts purchasedforauthorized resalethroughcommissariesor similar facilities however, supplies destined for directoverseas shipment may be acceptedby the contractingofficer', 25980:'or an authorizedrepresentative on the basis of a tally sheetevidencing receipt of shipment signed bythe port transportation officeror other designatedofficial', 25981:'at the transshipment point; 5 the products being purchased are processed under direct control of the national institutes of health', 25982:'or the food and drug administration of the department of health and human services; 6 the contract is for services', 25983:'performed at destination; or 7 it is determined for other reasons to be in the government’sinterest. b overseas inspection of', 25984:'supplies shipped from the united states shall not be required except in unusual circumstances, and then only whenthe contracting officer', 25985:'determines in advancethat inspection can be performedor makes necessary arrangements for its performance. federal acquisition regulation 46.404 governmentcontract quality assurancefor', 25986:'acquisitionsat or below the simplified acquisition threshold. a in determining the type and extent of government contract quality assurance to', 25987:'be required for contracts at or below thesimplified acquisition threshold,the contracting officershallconsider the criticality of application ofthe supplies or services,', 25988:'the amount of possible losses, and the likelihood of uncontested replacement of defective work see 46.2022. b when the conditions', 25989:'in 46.2022b apply,the following policies shall govern: 1 unless a special situation exists, the government shall inspect contracts at or', 25990:'below the simplified acquisition threshold at destination and only for type and kind; quantity; damage; operability if readily determinable; and', 25991:'preservation, packaging, packing, and marking, if applicable. 2 special situations may require more detailed quality assurance and the use of', 25992:'a standard inspection or higher level contract quality requirement. these situations include those listed in 46.402 and contracts for items', 25993:'having critical applications. 3 detailed government inspection may be limited to those characteristics that are special or likely to cause', 25994:'harm to personnel or property. when repetitive purchases ofthe same itemare made from the same manufacturer witha history of defectfree', 25995:'work, government inspection may be reduced to a periodic check of occasional purchases. 46.405subcontracts. a government contract quality assurance on', 25996:'subcontracted supplies or services shall be performed only when required in the government’s interest. the primary purpose is toassist the', 25997:'contract administration office cognizantof the prime contractor’s plant in determining the conformance of subcontracted supplies or services with contract requirements', 25998:'orto satisfy one or more of the factors included in b of this section. it does not relieve the prime', 25999:'contractor of any responsibilities under the contract. when appropriate, the prime contractor shall be requested to arrange for timely government', 26000:'access to the subcontractor facility. b the government shall perform quality assurance at the subcontract level when 1 the item', 26001:'is to be shipped from thesubcontractor’s plant to theusing activity and inspection at source isrequired; 2 the conditions for quality', 26002:'assurance at source are applicable see 46.402; 3 the contract specifies that certain quality assurance functions, which canbe performed onlyat', 26003:'the subcontractor’s plant, are to be performed by the government; or 4 it is otherwiserequired by thecontract ordetermined to be', 26004:'in the government’sinterest. c supplies or services for which certificates, records, reports, or similar evidence of quality are available at', 26005:'the prime contractor’s plant shall notbe inspected at the subcontractor’s plant, except occasionally toverify this evidence or when required under', 26006:'b of this section. d all oral and written statements and contract terms and conditions relating to government quality assurance', 26007:'actions at the subcontract level shall be worded so as not to 1 affect thecontractual relationship between theprimecontractor and the', 26008:'government, orbetween the prime contractor and the subcontractor; 2 establish a contractual relationship between the government and the subcontractor; or', 26009:'3 constitute a waiver of the government’sright to acceptor reject the suppliesor services. 46.406 foreign governments. government contract quality assurance', 26010:'performed for foreign governments or international agencies shall be administered according to the foreign policy and security objectives of the', 26011:'united states. such support shall be furnished only when consistent with or required by legislation, executive orders, or agency policies', 26012:'concerning mutual international programs. 46.407nonconforming supplies or services. a thecontracting officer should rejectsupplies orservices not conforming in allrespectsto contract requirements', 26013:'see 46.102. in thoseinstances where deviation from this policy is foundto bein the government’s interest, such supplies or services may', 26014:'be accepted only as authorized in this section. b the contractingofficer ordinarily must give the contractoran opportunityto correct or replace', 26015:'nonconformingsupplies or services when this can be accomplished within the required delivery schedule. unless the contract specifies otherwise as may', 26016:'be the case in some costreimbursement contracts, correction or replacement must be without additional cost to the government. paragraph e2', 26017:'of the clause at 52.2462, inspection of suppliesfixedprice, reserves to the government the right to charge the contractor the cost', 26018:'of government reinspection and retestsbecause of prior rejection. subpart 46.4 government contract quality assurance 46.408 c 1insituationsnotcoveredbyparagraphbofthissection,thecontractingofficerordinarilymustrejectsupplies or services whenthe', 26019:'nonconformance is critical or major or the supplies or services are otherwise incomplete. however, there may be circumstances e.g., reasons', 26020:'ofeconomy or urgency whenthe contracting officer determines acceptance or conditional acceptance of supplies or services isin the bestinterest ofthe government.', 26021:'the contractingofficer must make this determination based upon i advice of the technical activity that the item is safe to', 26022:'use and will perform its intended purpose; ii information regarding the nature and extent of the nonconformance or otherwise incomplete', 26023:'supplies or services; iii a request from the contractor for acceptance of the nonconforming or otherwise incomplete supplies or services', 26024:'if feasible; iv a recommendation for acceptance, conditional acceptance, or rejection, with supporting rationale; and v the contract adjustment considered', 26025:'appropriate,including any adjustment offered by the contractor. 2 the cognizant contractadministration office,or other government activity directly involved, must furnish this', 26026:'data to the contracting officerin writing, except that inurgentcases it may befurnished orally and later confirmed in writing. before making', 26027:'a decision toaccept, the contracting officermust obtain the concurrence ofthe activity responsibleforthe technical requirementsof the contract and, where healthfactors are', 26028:'involved, ofthe responsible health official of the agency concerned. d if the nonconformance is minor, the cognizant contract administration office', 26029:'may make thedeterminationto accept or reject, except where this authority iswithheld by the contractingoffice of the contracting activity. to assistin', 26030:'making this determination, thecontract administration office mayestablish a joint contractorcontract administrative office reviewgroup. acceptance of supplies and services with critical', 26031:'or major nonconformances is outside the scope of the review group. e thecontracting officer must discourage the repeated tender ofnonconforming', 26032:'supplies or services, including those with only minornonconformances, by appropriate action, such as rejection and documentingthe contractor’s performance record. f', 26033:'when supplies or services are accepted with critical or major nonconformances as authorized in paragraph c of this section,the contracting', 26034:'officer must modifythe contract toprovide for an equitable price reduction or otherconsideration. in the case of conditional acceptance, amounts withheld', 26035:'from payments generally should be atleast sufficient to cover the estimated cost and related profit to correct deficiencies and complete', 26036:'unfinished work. the contracting officer must document in the contract file the basisforthe amounts withheld. forservices, the contracting officer canconsideridentifying', 26037:'the value of the individual work requirements or tasks subdivisions that may be subject to price or fee reduction. this', 26038:'value may beused todetermine anequitable adjustmentfornonconforming services. however, whensupplies orservices involving minor nonconformances are accepted, the contract need not be', 26039:'modified unless it appears that the savings to the contractor in fabricating the nonconforming supplies or performing the nonconforming services', 26040:'will exceed the cost to the government of processing the modification. g notices of rejection must include the reasons for', 26041:'rejection and be furnished promptly tothe contractor. promptness in giving this notice is essential because, if timely nature of rejection', 26042:'is not furnished, acceptance may in certain cases be implied as a matter of law. the noticemust be in writing', 26043:'if 1 the supplies or services have been rejected at a place other than the contractor’s plant; 2 the contractorpersists', 26044:'in offering nonconforming suppliesor services for acceptance; or 3 delivery or performance was late without excusable cause. h the contractingofficer', 26045:'shall provide disposition instructions for counterfeit or suspect counterfeititemsin accordance with agencypolicy. agency policy may require the contracting officer to', 26046:'direct the contractor toretain such items for investigative or evidentiary purposes. 46.408singleagency assignments of government contract quality assurance. a governmentwide', 26047:'responsibility for quality assurance support for acquisitions of certain commodities is assigned as follows: 1 for drugs, biologics, and other', 26048:'medical suppliesthe food and drug administration; 2 for food, except seafoodthe department of agriculture. 3 for seafoodthe national marine fisheries', 26049:'service of the department of commerce. b agencies requiring quality assurance support for acquiring these supplies should request the support', 26050:'directly from the cognizantoffice. this page intentionally left blank. 46.44 subpart 46.5 acceptance 46.505 subpart 46.5 acceptance 46.501general. acceptance constitutes', 26051:'acknowledgment that the supplies or services conform with applicable contract quality and quantity requirements, except as provided in this subpart', 26052:'and subject to other terms and conditions of the contract. acceptance may takeplace before delivery,at the timeof delivery, or after', 26053:'delivery, depending on the provisions of the terms and conditions of the contract. supplies or services shall ordinarily not be', 26054:'accepted before completion of government contract quality assurance actions however, see 46.504. acceptance shall ordinarily be evidenced by execution of', 26055:'an acceptance certificate on an inspection or receiving report form or commercial shipping document/packing list. 46.502responsibility for acceptance. acceptance of', 26056:'supplies or services isthe responsibility of the contracting officer. when this responsibility is assigned to a cognizantcontract administration office or', 26057:'to another agency see 42.202g, acceptanceby that office or agencyis binding on the government. 46.503place of acceptance. each contract shall', 26058:'specify the place of acceptance. contracts that provide for government contract quality assurance at source shall ordinarily provide for acceptance', 26059:'at source. contracts that provide for government contract quality assurance at destination shall ordinarily provide for acceptance at destination. for', 26060:'transportation terms, see subpart 47.3. supplies accepted at a place other than destination shall not be reinspected at destination for', 26061:'acceptance purposes, but should be examinedat destination for quantity,damage in transit,andpossible substitution or fraud. 46.504certificate of conformance. a certificate of', 26062:'conformance see 46.315 may be used in certain instances instead of source inspection whether the contract calls for acceptance at', 26063:'source or destination at the discretion ofthe contracting officerif the following conditions apply: a acceptance on the basis ofa contractor’s', 26064:'certificate of conformance is in thegovernment’s interest. b 1 small losses would be incurred in the event of a defect;', 26065:'or 2 because of the contractor’s reputation or past performance, it is likely that the supplies or services furnished will', 26066:'be acceptable and any defective work would be replaced, corrected, or repaired without contest. in no case shall the government’s', 26067:'right to inspect supplies under the inspection provisions of the contract be prejudiced. 46.505 transfer of title and riskof loss.', 26068:'a titleto supplies shall pass tothe government upon formal acceptance, regardless ofwhen or where the government takes physical possession, unless', 26069:'the contract specifically provides for earlier passage of title. b unless the contract specifically provides otherwise, risk of loss of', 26070:'or damage to supplies shall remain with the contractor until, and shall pass to the government upon 1 delivery of', 26071:'the supplies to a carrier if transportation is f.o.b. origin; or 2 acceptance by the government or delivery of the', 26072:'supplies to the government at the destination specified in the contract, whichever is later, if transportation is f.o.b. destination. c', 26073:'paragraph b of this section shall not apply to supplies that so fail to conform to contract requirements as to', 26074:'give a right of rejection. the risk of loss of or damage to such nonconforming supplies remains with the contractor', 26075:'until cure or acceptance. after cure or acceptance, paragraph b of this sectionshallapply. d under paragraph b of this section,', 26076:'the contractor shall not be liable for loss of or damage to supplies caused by the negligence of officers, agents,', 26077:'or employeesof the government actingwithin thescope of theiremployment. e the policy expressed in a through d of this section is', 26078:'specified in the clause at 52.24616, responsibility for supplies, which is prescribed in 46.316. this page intentionally left blank. 46.52', 26079:'subpart 46.6 material inspection and receiving reports 46.601 subpart 46.6 material inspection and receiving reports 46.601general. agencies shall prescribe procedures', 26080:'and instructions for the use, preparation, and distribution of material inspection and receiving reports and commercial shipping document/packing lists to', 26081:'evidence government inspection see 46.401 and acceptance see 46.501. this page intentionally left blank. 46.62 subpart 46.7 warranties 46.705 subpart', 26082:'46.7 warranties 46.701[reserved] 46.702general. a the principal purposes of a warranty in a government contract are 1 to delineate the', 26083:'rights and obligations of the contractor and the government for defective items and services; and 2 to foster quality performance.', 26084:'b generally,a warranty should provide 1 a contractual right for the correction of defects notwithstanding any other requirement of the', 26085:'contract pertaining to acceptance of the supplies or services by the government; and 2 a stated period of time or', 26086:'use, or the occurrence of a specified event, after acceptance by the government to assert a contractual right for the', 26087:'correction of defects. c the benefits to be derived from a warranty must be commensurate with the cost of the', 26088:'warranty to the government. 46.703criteria for use of warranties. the use of warranties is notmandatory. in determining whether a warranty', 26089:'is appropriate for a specific acquisition, the contracting officershallconsider the followingfactors: a nature and use of the supplies or services.', 26090:'this includes such factors as 1 complexity and function; 2 degree of development; 3 state of the art; 4 end', 26091:'use; 5 difficulty in detecting defectsbefore acceptance; and 6 potential harm to the government if the item is defective. b', 26092:'cost. warranty costs arise from 1 the contractor’s charge for accepting thedeferred liability created bythe warranty; and 2 government administration', 26093:'and enforcement of the warranty see paragraph c of this section. c administration and enforcement. the government’sability toenforce the warranty', 26094:'isessential to the effectiveness of any warranty. there must besome assurancethat anadequate administrative system for reporting defects exists or can', 26095:'be established. the adequacy of a reporting system may depend upon such factors as the 1 nature and complexity of', 26096:'the item; 2 location and proposed use of the item; 3 storage time for the item; 4 distance of the', 26097:'using activity from the source of the item; 5 difficulty in establishing existence of defects; and 6 difficulty in tracing', 26098:'responsibility for defects. d trade practice. in many instances an item is customarily warranted in the trade, and, as a', 26099:'result of that practice, the cost of an item to the government will be the same whether or not a', 26100:'warranty is included. in those instances, it would be in thegovernment’s interest toinclude such a warranty. e reduced requirements. the', 26101:'contractor’s charge for assumption of added liabilitymay be partially orcompletely offset by reducing the government’scontract quality assurance requirements wherethe warranty', 26102:'provides adequate assurance of a satisfactory product. 46.704authority for use of warranties. the use of a warranty in an acquisition', 26103:'shall be approved in accordance with agency procedures. 46.705limitations. a except for the warranties in the clauses at 52.2463, inspection', 26104:'of suppliescostreimbursement, and 52.2468, inspection of research and developmentcostreimbursement, the contracting officer shall notinclude warranties in cost reimbursement contracts, unless', 26105:'authorized in accordance with agency regulations see 46.708. bwarrantyclausesshallnotlimitthegovernment’srightsunderaninspectionclausesee subpart 46.3 in relation to latent defects, fraud, or gross mistakes', 26106:'that amount to fraud. federal acquisition regulation c except for warranty clauses in construction contracts, warranty clauses shall provide that', 26107:'the warranty applies notwithstanding inspection and acceptance or other clauses or terms of the contract. 46.706 warrantyterms and conditions. a', 26108:'to facilitatethe pricing and enforcement of warranties, the contracting officer shall ensure that warranties clearlystate the 1 exact nature of', 26109:'the item and its components and characteristics that the contractor warrants; 2 extent of the contractor’s warrantyincluding all of thecontractor’sobligations', 26110:'to the governmentforbreach of warranty; 3 specific remedies available to the government; and 4 scope andduration of thewarranty. b the', 26111:'contractingofficer shall consider the following guidelines when preparing warranty termsandconditions: 1 extent of contractor obligations. i generally, the contractor’s obligationsunder', 26112:'warrantiesextend to all defects discovered during the warranty period, but do not include damage caused by the government. when a', 26113:'warranty for the entire item is not advisable, a warranty may be required for a particular aspect of the item', 26114:'that may require special protection e.g., installation, components, accessories, subassemblies, preservation, packaging, and packing, etc.. ii if the government specifies', 26115:'the design of the end item and its measurements, tolerances, materials, tests, or inspection requirements, the contractor’s obligationsforcorrection of defectsshallusually', 26116:'be limited to defects inmaterial and workmanship or failure to conform to specifications. if the government does not specify the', 26117:'design, the warranty extends also to the usefulness of the design. iii if express warranties are included in a contract', 26118:'except contracts for commercial products and commercial services, all implied warranties of merchantability and fitness for a particular purpose shall', 26119:'be negated by the use of specific language in the clause see clauses 52.24617, warranty of suppliesof anoncomplexnature; 52.24618, warranty', 26120:'of supplies of a complex nature; and 52.24619, warranty of systems andequipment under performance specifications or design criteria. 2 remedies.', 26121:'i normally, awarranty shall provideas a minimum thatthe government may a obtain an equitable adjustment of the contract, or b', 26122:'direct the contractor to repair or replace the defective itemsat the contractor’s expense. iiif it is notpractical to directthe contractor', 26123:'to make the repair orreplacement, or,because of thenature of the item,the repair or replacement does not afford an appropriateremedy to', 26124:'the government, thewarranty should provide alternate remedies, such as authorizing the government to a retain the defective item and reduce', 26125:'the contract price by an amount equitable under the circumstances; or b arrange for the repair or replacement of the', 26126:'defective item, by the government or by another source, at the contractor’s expense. iii if it can be foreseenthat it', 26127:'will not be practical to returnan itemto the contractor for repair, to remove it to an alternate source for repair,', 26128:'or to replace the defective item, the warranty should provide thatthe government may repair,or require the contractor to repair, theitem', 26129:'in place at thecontractor’s expense. thecontract shall providethat in thecircumstance where the government isto accomplish therepair, thecontractor will furnish at', 26130:'the placeof delivery the material or parts, and the installation instructions required tosuccessfully accomplish the repair. iv unless providedotherwise in', 26131:'the warranty, the contractor’s obligation to repair or replace thedefective item, or to agree to an equitable adjustment of the', 26132:'contract, shall include responsibility for the costs of furnishing all labor and material to a reinspect items that the government', 26133:'reasonably expected to be defective, b accomplish the required repair or replacement of defective items, and c test, inspect,package, pack,', 26134:'and mark repaired or replaced items. v if repair or replacement of defective items is required, the contractor shall generally', 26135:'be required by the warranty to bear the expense of transportation for returning the defective item from the place of', 26136:'delivery specified in the contract irrespective of thef.o.b. point or the point of acceptance to thecontractor’s plant and subsequent return.', 26137:'when defective items are returned to the contractor from other than the place of delivery specified in the contract, or', 26138:'when the government exercises alternate remedies, the contractor’sliability for transportation charges incurred shall notexceed an amount equal to the cost', 26139:'of transportation by the usual commercial method of shipment between the place of delivery specified in the contract and the', 26140:'contractor’splant and subsequent return. subpart 46.7 warranties 46.710 3 duration of the warranty. the time period or duration of the', 26141:'warranty must be clearly specified and shall be established after consideration of such factors as i the estimated useful life', 26142:'of the item, ii the nature of the item including storage orshelflife, and iii tradepractice. the period specifiedshallnot extendthe contractor’s', 26143:'liabilityforpatent defects beyond a reasonable time after acceptance by the government. 4 notice. the warranty shall specify a reasonable time', 26144:'for furnishing notice to the contractor regarding the discovery of defects. this notice period, which shall apply to all defects', 26145:'discovered during the warranty period, shall be long enough to assurethat the government hasadequate time to givenotice to the contractor.', 26146:'thecontracting officer shall consider the following factors when establishing the notice period: i the time necessary for the government to', 26147:'discover the defects. ii the time reasonably required for the government to take necessary administrative steps and make a timely', 26148:'report of discoveryof the defects to the contractor. iii the time required to discover and report defective replacements. 5 markings.', 26149:'i the packaging and preservation requirements of the contract shall require the contractor to stamp or mark the suppliesdelivered or', 26150:'otherwise furnishnotice withthe supplies of theexistence of the warranty. the purpose of the markings or notice is to inform government', 26151:'personnel who store, stock, or use the supplies that the supplies are under warranty. markings maybe brief but should include—', 26152:'a a brief statement that a warranty exists; b the substance of the warranty; c its duration; and d who', 26153:'to notify if the supplies are found to be defective. ii for commercial products see 46.709, the contractors trade practice', 26154:'in warranty marking is acceptable if sufficient information is presented for supply personnel andusersto identify warrantedsupplies. 6 consistency. contracting officers', 26155:'shall ensure thatthe warranty clauseand any other warranty conditions in the contract e.g., in the specifications or an inspection clause', 26156:'are consistent. to the extentpracticable, all of the warranties to be contained in the contract should be expressed in the', 26157:'warranty clause. 46.707pricing aspects of fixedprice incentive contract warranties. if a fixedprice incentive contract contains a warranty see 46.708, the', 26158:'estimated cost of the warranty to the contractor should beconsidered inestablishing theincentive target price and the ceiling price ofthe contract.', 26159:'all costs incurred, or estimated to be incurred, by the contractor in complying with the warranty shall be considered when', 26160:'establishing the total final price. contractor compliance with the warranty after the establishment of the total final price shall be', 26161:'at no additional cost to the government. 46.708 warranties ofdata. warranties ofdata shall be developed andused inaccordance withagency regulations. 46.709', 26162:'warranties ofcommercial products and commercial services. the contractingofficer should take advantage of commercial warranties,including extended warranties,where appropriate and in the', 26163:'government’s best interests, offeredby the contractorforthe repair and replacement of commercial products and commercial services see part 12. 46.710contract clauses.', 26164:'the clauses and alternates prescribed in this section may be used in solicitations and contracts in which inclusion of a', 26165:'warranty is appropriate see 46.709 for warranties for commercial products and commercial services. however, because of the many situations that', 26166:'may influence the warranty terms and conditions appropriate to a particular acquisition, the contracting officermay varythe terms and conditionsof the', 26167:'clausesandalternates to the extent necessary. thealternates prescribed in this section addressthe clauses; however, the conditionspertaining toeach alternate must be consideredif', 26168:'the terms and conditions are varied to meet a particular need. a 1thecontractingofficermayinsertaclausesubstantiallythesameastheclauseat 52.24617,warrantyof supplies of a noncomplex nature, in', 26169:'solicitations and contracts for noncomplex items when a fixedprice supply contract is contemplated and the use of a warranty clause', 26170:'has been approved under agency procedures. if the contractor’sdesign rather than the government’s design will be used, insert the word', 26171:'design before material in paragraph b1i. federal acquisition regulation 2 if it is desirable to specify that necessary transportation incident', 26172:'to correction or replacement will be at the government’s expense as might be the case if, for example, the cost', 26173:'of a warranty would otherwisebe prohibitive, the contracting officermay usethe clause withits alternate ii. 3 if the supplies cannot be', 26174:'obtained from anothersource,the contracting officermay usethe clause withits alternate iii. 4 if a fixedprice incentive contract is contemplated, the contracting', 26175:'officer may use theclause with itsalternate iv. 5 if it is anticipated that recovery of the warranted items will involve', 26176:'considerable government expense for disassembly and/orreassembly of largeritems, the contracting officer mayuse the clausewith its alternate v. b 1thecontractingofficermayinsertaclausesubstantiallythesameastheclauseat 52.24618,warrantyofsupplies', 26177:'of a complex nature, in solicitations and contracts for deliverable complex items when a fixedprice supply or research and development', 26178:'contract is contemplated and the use of a warranty clause has been approved under agency procedures. if the contractor’s design', 26179:'rather than the government’sdesign will be used, insertthe word design before material in paragraph b1. 2 if it is desirable', 26180:'to specify that necessary transportation incident to correction or replacement will be at the government’s expense as might be the', 26181:'case if, for example, the cost of a warranty would otherwisebe prohibitive, the contracting officermay usethe clause withits alternate ii.', 26182:'3 if a fixedprice incentive contract is contemplated, the contracting officer may use theclause with itsalternate iii. 4 if it', 26183:'is anticipated that recovery of the warranted item will involve considerable government expense for disassembly and/orreassembly of largeritems, the contracting', 26184:'officer mayuse the clausewith its alternate iv. c 1thecontractingofficermayinsertaclausesubstantiallythesameastheclauseat 52.24619,warrantyofsystems and equipment under performance specifications or design criteria, in solicitations', 26185:'and contracts when performance specificationsor design are of major importance; a fixedprice supply, service,or research and development contract for systems', 26186:'and equipment is contemplated; and the use of a warranty clause has been approved under agency procedures. 2 if it', 26187:'is desirable to specify that necessary transportation incident to correction or replacement will be at the government’s expense as might', 26188:'be the case if, for example, the cost of a warranty would otherwisebe prohibitive, the contracting officermay usethe clause withits', 26189:'alternate i. 3 if a fixedprice incentive contract is contemplated, the contracting officer may use theclause with itsalternate ii. 4', 26190:'if it is anticipated that recovery of the warranted item will involve considerable government expense for disassembly and/orreassembly of largeritems,', 26191:'the contracting officer mayuse the clausewith its alternate iii. d the contractingofficer may insert a clause substantially the same as', 26192:'the clauseat 52.24620, warranty of services, in solicitations and contracts for services when a fixedprice contract for services is contemplated', 26193:'and the use of warranty clause has been approved under agency procedures; unless a clause substantially the same as the', 26194:'clause at 52.24619,warranty of systems and equipment under performance specifications or design criteria, has been used. e 1thecontractingofficermayinsertaclausesubstantiallythesameastheclauseat 52.24621,warrantyof construction,', 26195:'in solicitations and contracts when a fixedprice construction contract see 46.705c is contemplated and the use of a warranty clause', 26196:'has been approved under agency procedures. 2 if the government specifies in the contract the use of any equipment by', 26197:'brand name and model, the contracting officer may use the clausewith its alternate i. subpart 46.8 contractor liability for loss', 26198:'of or damage to property of the government 46.805 subpart 46.8 contractor liability for loss of or damage to property', 26199:'of the government 46.800scope of subpart. this subpart prescribes policies and procedures for limiting contractor liability for loss of or', 26200:'damage to property of the government that a occurs after acceptance and b results from defects or deficiencies in the', 26201:'supplies delivered or services performed. 46.801 applicability. a this subpart does not apply to commercial products and commercial services. this', 26202:'subpart applies to contracts other than those for— 1 information technology, including telecommunications; 2 construction; 3 architectengineer services; and 4', 26203:'maintenance and rehabilitation ofreal property. b see subpart 46.7,warranties,forpoliciesandproceduresconcerningcontractorliabilitycausedbynonconforming technical data. 46.802definition. highvalue item, as used in this subpart, means', 26204:'a contract end item that 1 has a high unit cost normally exceeding $100,000 per unit, such as an aircraft,', 26205:'an aircraft engine, a communication system, a computer system, a missile, or a ship, and 2 is designated by thecontracting', 26206:'officer as a highvalue item. 46.803 policy. a general. the government will generally act as a selfinsurer by relieving contractors,', 26207:'as specified in this subpart, of liability for loss of or damage to property of the government that 1 occurs', 26208:'after acceptance of supplies delivered or services performed under a contract and 2 results from defects ordeficiencies in the suppliesor', 26209:'services. however, the government will not relieve the contractor of liability for loss of or damage to the contract end', 26210:'item itself, except for highvalue items. b highvalue items. in contracts requiring delivery of highvalue items, the government will relieve', 26211:'contractors of contractualliability for lossof or damage to those items. however, thisrelief shall not limit thegovernment’s rights arising under the', 26212:'contract to 1 have any defective item or its components corrected, repaired, or replaced when the defect or deficiency is', 26213:'discovered before the loss of or damage to a highvalue item occurs; or 2 obtain equitable relief when the defect', 26214:'or deficiency is discovered after such loss or damage occurs. c exception. the government will not provide contractual relief under', 26215:'paragraphs a and b of this section when contractor liability can be preserved without increasing the contract price. d limitations.', 26216:'subject to the specific terms of the limitation of liability clause included in the contract, the relief provided under paragraphs', 26217:'a and b of this section does not apply 1 to the extent that contractor liability is expressly provided under', 26218:'acontract clause authorized bythisregulation; 2 when adefector deficiency in, or government’sacceptance of, the suppliesor services results from willful misconduct or', 26219:'lack of good faithon the part of the contractor’s managerialpersonnel; or 3 to the extent that any contractor insurance, or', 26220:'selfinsurance reserve, covers liability for loss or damage suffered by the government through purchase or use of the supplies delivered', 26221:'or services performed under the contract. 46.804[reserved] 46.805contract clauses. a contracts that exceed the simplified acquisition threshold. the contracting officer', 26222:'shall insert theappropriate clause or combination of clauses specified in paragraphs a1 through a5 of this section in solicitations and', 26223:'contracts when the contract amount is expected to be in excess of the simplified acquisition threshold and the contract is', 26224:'subject to the requirements of this subpart as indicated in 46.801: federal acquisition regulation 1 in contracts requiring delivery of', 26225:'end items that are not highvalue items, insert the clause at 52.24623, limitation of liability. 2 in contracts requiring delivery', 26226:'of highvalue items, insert the clause at 52.24624, limitation of liabilityhigh valueitems. 3 in contracts requiring delivery of both highvalue', 26227:'items and other end items, insert both clauses prescribed in a 1 and a2 of this section, alternatei of the', 26228:'clause at 52.24624, and identify clearly in the contract schedule the line items designated as highvalue items. 4 in contracts', 26229:'requiring the performance of services, insert the clause at 52.24625, limitation of liabilityservices. 5 in contracts requiring both the performance', 26230:'of services and the delivery of end items, insert the clause prescribed in paragraph a4 of this section and the', 26231:'appropriate clause or clauses prescribed in paragraph a1, 2, or 3 of this section, and identify clearly in the contract', 26232:'schedule any highvalue line items. b acquisitions at or below the simplified acquisition threshold. the clauses prescribed by paragraph a', 26233:'of this section arenot required for contracts at or below the simplifiedacquisitionthreshold. however, in responseto a contractor’s specific request, the', 26234:'contracting officer may insert theclauses prescribed in paragrapha1 or a4 of this sectionin a contract ator below the simplified acquisition', 26235:'threshold and may obtain any price reduction that is appropriate. part 47 transportation sec. 47.000 scope of part. subpart 47.3', 26236:'transportation 47.001 definitions. in supply contracts 47.002 applicability. 47.300 scope of subpart. 47.301 general. subpart 47.1 general 47.3011 responsibilities of', 26237:'contracting officers. 47.101 policies. 47.3012 participation of transportation officers. 47.102 transportation insurance. 47.3013 using the defense transportation system 47.103 transportation', 26238:'payment and audit dts. regulation. 47.302 place of deliveryf.o.b. point. 47.1031 general. 47.303 standard delivery terms and contract clauses. 47.1032', 26239:'contract clause. 47.3031 f.o.b. origin. 47.104 government rate tenders under sections 47.3032 f.o.b. origin, contractor’s facility. 10721 and 13712 of', 26240:'the interstate commerce 47.3033 f.o.b. origin, freight allowed. act 49 u.s.c. 10721 and 13712. 47.3034 f.o.b. origin, freight prepaid. 47.1041', 26241:'government rate tender procedures. 47.3035 f.o.b. origin, with differentials. 47.1042 fixedprice contracts. 47.3036 f.o.b. destination. 47.1043 costreimbursement contracts. 47.3037 f.o.b.', 26242:'destination, within consignee’s 47.1044 contract clauses. premises. 47.1045 citation of government rate tenders. 47.3038 f.a.s. vessel, port of shipment. 47.105', 26243:'transportation assistance. 47.3039 f.o.b. vessel, port of shipment. 47.30310 f.o.b. inland carrier, point of exportation. subpart 47.2 contracts for transportation', 26244:'47.30311 f.o.b. inland point, country of importation. or for transportationrelated services 47.30312 ex dock, pier, or warehouse, port of 47.200', 26245:'scope of subpart. importation. 47.201 definitions. 47.30313 c. & f. destination. 47.202 presolicitation planning. 47.30314 c.i.f. destination. 47.203 [reserved] 47.30315', 26246:'f.o.b. designated air carrier’s terminal, point 47.204 singlemovement contracts. of exportation. 47.205 availability of term contracts and basic 47.30316 f.o.b.', 26247:'designated air carrier’s terminal, point ordering agreements for transportation or for of importation. transportationrelated services. 47.30317 contractorprepaid commercial bills of', 26248:'47.206 preparation of solicitations and contracts. lading, small package shipments. 47.207 solicitation provisions, contract clauses, and 47.304 determination of delivery', 26249:'terms. special requirements. 47.3041 general. 47.2071 qualifications of offerors. 47.3042 shipments within conus. 47.2072 duration of contract and time of', 26250:'47.3043 shipments from conus for overseas performance. delivery. 47.2073 description of shipment, origin, and 47.3044 shipments originating outside conus. destination.', 26251:'47.3045 exceptions. 47.2074 determination of weights. 47.305 solicitation provisions, contract clauses, and 47.2075 contractor responsibilities. transportation factors. 47.2076 rates and', 26252:'charges. 47.3051 solicitation requirements. 47.2077 liability and insurance. 47.3052 solicitations f.o.b. origin and f.o.b. 47.2078 government responsibilities. destinationlowest overall cost.', 26253:'47.2079 annotation and distribution of shipping and 47.3053 f.o.b. origin solicitations. billing documents. 47.3054 f.o.b. destination solicitations. 47.20710 discrepancies incident', 26254:'to shipments. 47.3055 destination unknown. 47.20711 volume movements within the contiguous 47.3056 shipments to ports and air terminals. united states.', 26255:'47.3057 quantity analysis, direct delivery, and 47.208 report of shipment repship. reduction of crosshauling and backhauling. 47.2081 advance notice. 47.3058', 26256:'consolidation of small shipments and the use 47.2082 contract clause. of stopoff privileges. 47.3059 commodity description and freight classification. 47.30510', 26257:'packing, marking, and consignment instructions. 47.30511 options in shipment and delivery. 47.30512 delivery of governmentfurnished property. 47.30513 transit arrangements. 47.30514', 26258:'mode of transportation. 47.30515 loading responsibilities of contractors. 47.30516 shipping characteristics. 47.30517 returnable cylinders. 47.306 transportationfactorsintheevaluationof offers. 47.3061 transportation cost', 26259:'determinations. 47.3062 lowest overall transportation costs. 47.3063 adequacy of loading and unloading facilities. subpart 47.4 air transportation by u.s.flag carriers', 26260:'47.401 definitions. 47.402 policy. 47.403 guidelines for implementation of the fly america act. 47.4031 availability and unavailability of u.s.flag air', 26261:'carrier service. 47.4032 air transport agreements between the united states and foreign governments. 47.4033 disallowance of expenditures. 47.404 air freight', 26262:'forwarders. 47.405 contract clause. subpart 47.5 ocean transportation by u.s.flag vessels 47.500 scope of subpart. 47.501 definitions. 47.502 policy. 47.503', 26263:'applicability. 47.504 exceptions. 47.505 construction contracts. 47.506 procedures. 47.507 contract clauses. 47.000scope of part. a this part prescribes policies and', 26264:'procedures for 1 applyingtransportation and trafficmanagementconsiderations in the acquisitionof supplies;and 2 acquiring transportation or transportationrelated services by contract methods other', 26265:'than bills of lading, transportation requests, transportation warrants, andsimilar transportation forms. transportation and transportation services can be obtained byacquisitionsubject to', 26266:'the far or by acquisition under 49 u.s.c. 10721 or 49 u.s.c. 13712. even though thefar does not regulate the', 26267:'acquisition of transportation or transportationrelatedservices when the bill of lading is the contract, this contract method is widely used and,', 26268:'therefore, relevant guidance on the use of the bill of lading is provided in this part see 47.104. b the', 26269:'definitions in this part have been condensed from statutory definitions. in case of inconsistency between the language of this part', 26270:'and the statutory requirements, the statute shall prevail. 47.001definitions. as used in this part bill of lading means a transportation', 26271:'document, used as a receipt of goods, as documentary evidence of title, for clearing customs, and generally used as a', 26272:'contract of carriage. 1 commercial bill of lading cbl, unlike the government bill of lading, is not an accountable transportation', 26273:'document. 2 government bill of lading gbl is an accountable transportation document, authorized and prepared by a government official. carrier', 26274:'or commercial carrier meansa commoncarrieror acontract carrier. common carrier means a person holding itself out to the general public to', 26275:'provide transportation for compensation. contract carrier means a person providing transportation for compensation under continuing agreements with one person or', 26276:'a limited number of persons. government rate tender under 49 u.s.c. 10721 and 13712means an offerby acommon carrier to the', 26277:'united states ata ratebelow the regulated rate offered to the general public. household goods in accordance with 49 u.s.c. 13102', 26278:'means personal effects andpropertyused or to be used in a dwelling, when a part ofthe equipment orsupplyof such dwelling, and', 26279:'similar property if thetransportation of sucheffects or property is arranged and paid for by 1 the householder, except such termdoes', 26280:'not include property movingfrom a factoryor store, other than property that the householder has purchased with the intent to use', 26281:'in his or her dwelling and is transported at the request of, and the transportation charges are paidto thecarrierby, the', 26282:'householder; or 2 another party. noncontiguous domestic trade means transportation except with regard to bulk cargo, forest products, recycledmetal scrap,', 26283:'waste paper, and paper waste subjectto regulation bythe surface transportation boardinvolving traffic originating in or destined to alaska, hawaii, or', 26284:'a territory or possession of the united states see 49 u.s.c. 1310215 and 13702. released or declared value means the', 26285:'assigned value of the cargo for reimbursement purposes, not necessarily the actual value of the cargo. released value may be', 26286:'more or less than the actual value of thecargo. the released value is the maximum amount that could be recovered', 26287:'by the agency in the event of loss or damage for the shipments of freight and household goods. 47.002 applicability.', 26288:'all government personnel concerned with the following activities shall follow the regulations in part 47 as applicable: a acquisition of', 26289:'supplies. b acquisition of transportation and transportationrelated services. c transportation assistance and traffic management. d administration of transportation contracts, transportationrelated', 26290:'services, and other contracts that involve transportation. e the making and administration of contracts under which payments are made from', 26291:'government funds for 1 the transportation of supplies; 2 transportationrelated services; or 3 transportation of contractor personnel and their personalbelongings.', 26292:'federal acquisition regulation subpart 47.1 general 47.101policies. a for domestic shipments,the contracting officershallauthorize shipmentson commercial bills of ladingcbl’s. government bills', 26293:'ofladinggbl’s maybe used for international or noncontiguous domestic trade shipments or when otherwise authorized. b the contract administration office cao', 26294:'shall ensurethat instructionsto contractors resultin themost efficient and economicaluse oftransportation services and equipment. transportation personnelwill assist and provide transportation management', 26295:'expertise to the cao. specific responsibilities and details on transportation management are located in the federalmanagement regulation at 41 cfr', 26296:'parts 102117 and 102118. for thedepartment ofdefense, dod 4500.9r, defense transportation regulation. c thecontracting officer shall obtain trafficmanagementadviceand assistance see', 26297:'47.105 in the consideration of transportation factors required for 1 solicitations and awards; 2 contract administration, modification, and termination; and', 26298:'3 transportation of property bythe government to and fromcontractors’ plants. d 1thepreferredmethodoftransportingsuppliesforthegovernmentisbycommercialcarriers. however, governmentowned, leased, or chartered vehicles, aircraft, and', 26299:'vessels may be used if i they are available and not fully utilized; ii their use will result in substantial', 26300:'economies; and iii their use is in accordance with all applicable statutes, agency policies and regulations. 2 if the three', 26301:'circumstances listed in paragraph d1 of this section apply, government vehicles may be used for purposes such as i local', 26302:'transportation of supplies between government installations; ii pickup and delivery services that commercial carriers do not perform in connection with', 26303:'linehaul transportation; iii transportation of supplies to meet emergencies; and iv accomplishment of program objectives that cannot be attained by', 26304:'using commercial carriers. e agencies shall not accord preferential treatment to any mode of transportation or to any particular carrier', 26305:'either in awarding or administering contracts for the acquisition of supplies or in awarding contracts for the acquisition of transportation.', 26306:'see subparts 47.2 and 47.3forsituationsinwhichthecontractingofficerispermittedtousespecificmodes of transportation. f agencies shall place with small business concerns purchases and contracts for transportation', 26307:'and transportationrelated services as prescribed in part 19. g agencies shall comply with theflyamerica act, the cargo preference act,andrelated statutes', 26308:'as prescribed in subparts 47.4,airtransportationbyu.s.flagcarriers,and 47.5,oceantransportationbyu.s.flagvessels. h when a contract specifies delivery of supplies f.o.b. origin with transportation costs to', 26309:'be paid by the government, the contractor shall make shipments on bills of lading, or on other shipping documents prescribed', 26310:'by military surface deployment and distribution command sddc in the case of seavan containers, either at the direction of or', 26311:'furnished by thecao orthe appropriate agencytransportation office. 47.102 transportation insurance. a the government generally 1 retains the risk of loss', 26312:'of and/or damage to its property that is not the legal liability of commercial carriers and 2 does not buy', 26313:'insurance coverage for its property in the possession of commercial carriers 40 u.s.c. 17307. see part 28, bonds and insurance.', 26314:'b under special circumstances the government may, if suchaction is considerednecessary and in the government’s interest, 1 buy insurance coverage', 26315:'for government property or 2 require the carrier to i assume full responsibility for lossof or damage to the government', 26316:'property in its possession and iibuy insurance to coverthe carrier’s assumed responsibility. the cost of this insurance tothe carrier shall', 26317:'be part of the transportation cost. the secretaryof the treasury prescribes regulations regarding shipments of valuables in 31 cfr parts', 26318:'361 and 362. c 1ifspecialcircumstancesdictatetheneedforthegovernmenttobuyinsurancecoverage,thecontractingofficer shall ascertain that i there is no statutory prohibition; and subpart 47.1 general 47.104 ii', 26319:'funds for insurance are available. 2 the contractingofficer shall document the need andauthorizationforinsurance coveragein the contractfile. 47.103 transportation payment and', 26320:'audit regulation. 47.1031 general. a 1 regulations and procedures governing the bill of lading, documentation, payment, and audit of transportation', 26321:'services acquired by the united states government are prescribed in 41 cfr part 102118, transportation payment and audit. 2 for', 26322:'dodshipments, corresponding guidanceis in dod 4500.9r, defense transportation regulation, part ii. b under 31 u.s.c. 3726, all agencies are required', 26323:'to establish a prepayment audit program. for details on the establishment of a prepayment audit, see 41 cfr part 102118.', 26324:'c the agency designated in paragraph a3 of the clause at 52.24767 shall forward original copies of paid freight bills/', 26325:'invoices, bills of lading, passenger coupons, and supporting documents as soon as possible following the end of the month, in', 26326:'one package for postpaymentaudit to the general services administration, transportation audit division qmca, crystal plaza 4, room 300, 2200 crystaldrive,', 26327:'arlington, va 22202. the specified agency shall include the paid freight bills/invoices, bills of lading, passenger coupons, and supporting documents', 26328:'for firsttier subcontractors under a cost reimbursement contract. if the inclusion of the paid freight bills/invoices, bills of lading, passenger', 26329:'coupons, and supporting documents for any subcontractor in the shipment is not practicable, the documents may be forwarded to gsa', 26330:'in a separate package. d any original transportation billsor other documents requested by gsa shall be forwarded promptly. the specified', 26331:'agency shall ensure that the name of the contracting agency is stamped or written on the face of the bill', 26332:'before sending it to gsa. e a statement prepared in duplicate by the specified agency shall accompany each shipment of', 26333:'transportation documents. gsa will acknowledge receipt of the shipment by signing and returning the copy of the statement. the statement', 26334:'shall show 1 the name and address of the specified agency; 2 the contract number, including any alphanumeric prefixidentifying the', 26335:'contractingoffice; 3 the name andaddress of the contracting office; 4 the total number of bills submitted with the statement; and', 26336:'5 a listing of the respective amounts paid or, in lieu of such listing,an adding machine tapeof the amounts paid', 26337:'showing the contractor’s voucher orchecknumbers. 47.1032 contract clause. complete and insert the clause at 52.24767, submission of transportation documents for', 26338:'audit, in solicitations and contracts when a costreimbursement contract is contemplated and the contract or a firsttier costreimbursement subcontract thereunder', 26339:'will authorize reimbursement of transportation asa directcharge to the contractor subcontract. 47.104 governmentrate tenders under sections 10721 and 13712of the', 26340:'interstate commerce act 49u.s.c. 10721 and 13712. a this section explains statutory authorityforcommon carriers subject to the jurisdiction of thesurface', 26341:'transportation board motor carrier, water carrier, freight forwarder, railcarrier to offer totransport persons or property for the account of theunited', 26342:'stateswithout charge or at a rate reduced from the applicable commercial rate. reduced ratesare offered in a government rate tender.', 26343:'additional informationforcivilian agencies isavailable in the federal managementregulation 41 cfr parts 102117 and102118 and for dod in the defense transportation', 26344:'regulationdod 4500.9r. b reduced rates offered in a government rate tenderare authorized for transportation provided bya rail carrier, for the', 26345:'movement of household goods, and for movement by or with a water carrier in noncontiguous domestic trade. 1 for government', 26346:'rate tenderssubmitted by arail carrier, a rate reduced from theapplicable commercial rate is a rate reduced from a rate regulated', 26347:'by thesurface transportation board. 2 for government rate tenders submitted for the movement of household goods, a rate reduced from', 26348:'the applicable commercial rate is a ratereduced froma rate contained in apublished tariff subjectto regulation bythe surface transportation board. 47.1041', 26349:'federal acquisition regulation 3 for government rate tenders submitted for movement by or with a water carrier in noncontiguous domestic', 26350:'trade, a ratereduced from the applicable commercialrate is a ratereduced from a rate contained in a published tariff required to', 26351:'be filed with the surface transportation board. 47.1041government rate tender procedures. a 49 u.s.c. 10721 and 13712 rates are published', 26352:'in government rate tenders and apply to shipments moving for the account of the government on 1 commercial bills of', 26353:'ladingendorsed to show that total transportation chargesare assignableto, and will be reimbursedby, the government seethe clause at 52.2471, commercial bill', 26354:'of lading notations; and 2 government bills of lading. b agencies may negotiate with carriers for additional or revised 49', 26355:'u.s.c. 10721 and 13712 rates in appropriate situations. only personnel authorized in agency procedures may carry out these negotiations. the', 26356:'following are examples of situations in which negotiations for additional or revised 49 u.s.c. 10721 and 13712 rates may be', 26357:'appropriate: 1 volumemovements areexpected. 2 shipments will be made on a recurring basis between designated places, and substantial savings in', 26358:'transportation costs appear possible even though a volume movement is not involved. 3 transit arrangements are feasible and advantageous to', 26359:'the government. 47.1042 fixedprice contracts. a f.o.b. destination. 49 u.s.c. 10721 and 13712 rates do not apply to shipments under', 26360:'fixedprice f.o.b. destination contracts delivered price. b f.o.b. origin. ifitis advantageous to the government, the contractingofficer may occasionally require the', 26361:'contractor to prepaythe freight charges to a specific destination. in such cases, the contractor shall use acommercial bill of lading', 26362:'and be reimbursed for the direct and actual transportation cost as a separate item in the invoice. the clause at', 26363:'52.2471, commercial bill of lading notations, will ensure that the government in this type of arrangement obtains the benefit of', 26364:'49 u.s.c. 10721 and 13712 rates. 47.1043costreimbursement contracts. a 49 u.s.c. 10721 and 13712 rates may be applied to shipments', 26365:'other than those made by the government if the total benefit accrues to the government, i.e., the government shall pay', 26366:'the charges or directly and completely reimburse theparty that initially bears the freight charges. therefore, 49 u.s.c. 10721 and 13712', 26367:'rates may be used for shipments moving on commercial bills of lading in cost reimbursement contracts under which the transportation', 26368:'costs are direct and allowable costs under the cost principles of part 31. b 49 u.s.c. 10721 and 13712 rates', 26369:'may beapplied to the movement of household goods and personal effects of contractor employees who are relocated for the convenience', 26370:'and at the direction of the government and whose total transportation costs are reimbursed by the government. c the clause', 26371:'at 52.2471, commercial bill of lading notations, will ensure that the government receives the benefit of lower 49 u.s.c. 10721', 26372:'and 13712 rates in costreimbursement contracts as described in paragraphs a and b of this section. d contracting officersshall 1', 26373:'includein contracts a statement requiring the contractor to use carriers that offer acceptable serviceat reduced rates if available; and 2', 26374:'ensure that contractors receive the name and location of the transportation officer designated tofurnish support and guidance when using government', 26375:'rate tenders. e thetransportation office shall 1 advise and assist contracting officers and contractors; and 2 make available to contractors', 26376:'the names of carriers that provide service under 49 u.s.c. 10721 and 13712 rates, cite applicable rate tenders, andadvise contractors', 26377:'of the statement that must be shown on the carrier’scommercial bill of lading see the clause at 52.2471, commercial bill', 26378:'of lading notations. 47.1044 contract clauses. a in order to ensure the application of 49 u.s.c. 10721 and 13712 rates,', 26379:'where authorized see 47.104b, insert the clause at 52.2471, commercial bill of lading notations, in solicitations and contracts when the', 26380:'contracts will be subpart 47.1 general 47.105 1 costreimbursement contracts, including those that may involve the movement of household goods', 26381:'see 47.1043b; or 2 fixedprice f.o.b. origin contracts other than contracts at or below the simplified acquisition threshold see 47.1042b', 26382:'and 47.1043. b the contractingofficer may insert the clause at 52.2471, commercial bill of lading notations, in solicitations and contracts', 26383:'made at or below the simplified acquisition threshold when it is contemplated that the delivery terms will be f.o.b. origin.', 26384:'47.1045 citation of government rate tenders. when 49 u.s.c. 10721 and 13712 ratesapply, transportation offices or contractors, as appropriate, shall', 26385:'identify the applicable government rate tender by endorsement on bills of lading. 47.105 transportation assistance. a civilian government activities that', 26386:'do not have transportation officers, or otherwise need assistance ontransportation matters, shall obtain assistance from 1 the gsa regional federal', 26387:'supply service bureau that provides support to the activity or 2 the transportationelement of thecontract administration office designated in the', 26388:'contract. b military installations shall obtaintransportation assistance from the transportation office ofthe contracting activity, unless another military activity has been', 26389:'designated as responsible for furnishing assistance, guidance, or data. military transportation offices shall request needed additional aid from the military', 26390:'surface deploymentanddistribution command sddc. this page intentionally left blank. 47.16 subpart 47.2 contracts for transportation or for transportationrelated services 47.204', 26391:'subpart 47.2 contracts for transportation or for transportationrelated services 47.200scope of subpart. a this subpart prescribes procedures for the acquisition', 26392:'by sealed bid or negotiated contracts of 1 freight transportation including local drayage from rail, motor including bus, domestic water', 26393:'including inland, coastwise, and intercoastal carriers, and from freight forwarders; and 2 transportationrelated services includingbut not limitedto stevedoring, storage, packing,marking,', 26394:'and ocean freight forwarding. b except as provided in paragraph c of this section, this subpart does not apply to', 26395:'1 the acquisition of freight transportation from i domestic or international air carriers; and ii international ocean carriers see subparts', 26396:'47.4 and 47.5; 2 freight transportation acquired by bills of lading; 3 household goods for which rates are negotiated under', 26397:'49 u.s.c. 10721 and 13712. these statutes do not apply in intrastate moves; or 4 contracts at or below the', 26398:'simplified acquisition threshold. c with appropriate modifications,the procedures in this subpart may beapplied to the acquisitionof freight transportation from the', 26399:'carriers listed in paragraph b1 of this section and passenger transportation from any carrier or mode. d the procedures in', 26400:'this subpart are applicable to the transportation of household goods of persons being relocated at government expense except when acquired', 26401:'1 under thecommuted rate schedules as required in the federal travel regulation 41 cfr chapter 302; 2 by dod under', 26402:'the dod 4500.9r, defense transportationregulation; or 3 under 49 u.s.c. 10721 and 13712 rates. these statutes do not apply in', 26403:'intrastate moves. e additional guidancefordod acquisitionof freightandpassenger transportation is in the defense transportation regulation. 47.201definitions. as used in this subpart', 26404:'general freight means supplies, goods, and transportable property not encompassed in the definitions of household goods or office furniture. office', 26405:'furniture means furniture, equipment, fixtures, records, and other equipment and materials used in government offices, hospitals, andsimilar establishments. 47.202 presolicitationplanning.', 26406:'contracting officersshallinform activities that plan to acquire transportation or transportationrelated services of the applicable leadtime requirements, that is a theservice', 26407:'contract labor standards statute requirement to obtain awage determination by accessing thewage determinations at sam.gov website https://www.sam.gov using thewage determinations', 26408:'atsam.gov process or by submitting a request directly to the department of labor on this website using the e98 process', 26409:'before the issuance of an invitation for bid, request for proposal, or commencement of negotiations for any contract exceeding $2,500', 26410:'that may be subject to the service contract labor standards statute see subpart 22.10; b the possible requirement to provide,', 26411:'during thesolicitation period,time for prospective offerors or contractors to inspect origin and destination locations; or c the possible requirement for', 26412:'inspection by agency personnel of prospective contractor facilities and equipment. 47.203[reserved] 47.204singlemovement contracts. singlemovement contracts may be awarded for unique', 26413:'transportation services that are not otherwise available under carrier tariffs or covered by dod or gsa contracts; e.g., special requirements', 26414:'at origin and/or destination. federal acquisition regulation 47.205 availability of term contracts andbasic ordering agreements for transportation or fortransportationrelated services.', 26415:'a all government agencies may contract for transportation or for transportationrelated services and execute basic orderingagreementsboa’ssee subpart 16.7unlessagencyregulationsprescribeotherwise. however,itisgenerally more', 26416:'economical andefficient for most agencies to make useof term contracts andbasic ordering agreements that have been executed by agencies that', 26417:'employ personnel experienced in contracting for transportation or for transportationrelated services. the department of defense dod and the general services', 26418:'administration gsa contract for transportation or for transportationrelated services on behalf of other activities and agencies. for instance, gsa awards', 26419:'term contracts for services suchas local drayage, office moves, and oceanfreightforwarding see 47.105 for assistance. b agencies may obtain transportation', 26420:'or transportationrelated services for which the cost does not exceed the simplified acquisition threshold if term contracts or basic ordering', 26421:'agreements are not available. 47.206 preparationof solicitationsand contracts. a contracting officers shall prepare solicitations and contractsfortransportation or for transportationrelated services', 26422:'as prescribed elsewhere in the far for fixedprice servicecontracts to the extent thatthose requirementsare applicable and not inconsistent with the', 26423:'requirements in subpart 47.2. b in addition, the contractingofficer shall includein solicitations and contractsfortransportation or for transportation related services provisions,', 26424:'clauses, and instructions as prescribed in section 47.207. 47.207 solicitation provisions, contract clauses, and special requirements. the contractingofficer shall includeprovisions,', 26425:'clauses, and special requirements in solicitations and contractsfor transportation or for transportationrelated services as prescribed in 47.2071 through 47.2079. 47.2071qualifications', 26426:'of offerors. a operating authorities. the contracting officershallinsert the clauseat 52.2472, permits, authorities, or franchises, when regulated transportation is involved.', 26427:'the clauseneednot be used when a federal officemove is intrastate andthe contracting officerdeterminesthat it is in thegovernment’s interest not to', 26428:'applythe requirement for holding or obtaining state authority to operate within the state. b performance capability for federaloffice moving contracts.', 26429:'1 the contracting officer shall insert the clause at 52.2473, capability to perform a contract for the relocation of a', 26430:'federaloffice, whena federal office isrelocated, to ensure that offerors are capable to perform interstateor intrastatemoving contracts involving the relocation offederal', 26431:'offices. 2 if a federaloffice move is intrastate and thecontracting officer determines thatitis in the government’sinterest not to apply the', 26432:'requirements for holding or obtaining state authority to operate within the state, and to maintain a facility within thestate or', 26433:'commercialzone, the contracting officer shall use the clause with its alternatei. c inspection of shipping and receiving facilities.the contracting officer', 26434:'shall insert theprovision at 52.2474, inspection of shipping and receiving facilities, when it isdesired for offerors to inspect the shipping,', 26435:'receiving, orothersites to ensure realistic bids. d familiarization with conditions. thecontracting officer shall insert the clause at 52.2475, familiarization with', 26436:'conditions, to ensure thatofferorsbecome familiar with conditions underwhich and where the serviceswill be performed. e financial statement.the contracting officer shall', 26437:'insert the provision at 52.2476, financial statement, to ensure that offerors arepreparedto furnish financial statements. 47.2072 duration of contract and', 26438:'time of performance. the contractingofficer shall a establish a specific expiration date month, day, and year for the contractor state', 26439:'thelength of time that the contract will remain in effect; e.g.,6 months commencing from the date of award; and b', 26440:'include the following items as appropriate: 1 a statement of the time period during which the service is required when', 26441:'the service is a onetime job; e.g.,a routine officerelocation. 2 a time schedule for the performance of segments of a', 26442:'major job; e.g., an office relocation for which the work phases must be coordinated tomeet other needs ofthe agency. 3', 26443:'statements of performance times for particular services; e.g., pickup and delivery services. specify i on which days of the week', 26444:'and during which hours of the day pickup and delivery services may be required; subpart 47.2 contracts for transportation or', 26445:'for transportationrelated services 47.2075 ii the maximum time allowable to the contractor for accomplishing delivery under regular or priority service;', 26446:'and iii how much advance notice the contractor will be given for regular pickup services and, if applicable, priority pickup', 26447:'services. 47.2073 description of shipment, origin, and destination. a origin of shipments.the contracting officer shall include in solicitations full details', 26448:'regarding thelocation from which thefreight is to be shipped. for example,if a single locationis shown, furnish theshipper’s name, street address,city,state,', 26449:'and zip code. if several or indefinite locations are involved, as in the case of multiple shippers or drayage contracts,', 26450:'describe the area of origin including boundaries and zip codes. b destination of shipments. the contracting officer shall include full', 26451:'details regardingdelivery points. for example,if a single delivery point is shown, furnish the consignee’sname,streetaddress, city, state, and zip code. if', 26452:'severalor indefinite delivery points are involved, describe the delivery area, including boundaries and zip codes. c description of the freight.', 26453:'the contracting officershallinclude in solicitations 1 an inventory if the freight consists of nonbulk items; and 2 the freight classification', 26454:'description,which should be obtained fromthe transportation office. if afreight classification description is not available, use a clear nontechnical description. include', 26455:'additional details necessary to ensure that the prospective offerors have completeinformationabout the freight; e.g., size, weight, hazardous material, whether packed', 26456:'for export, or unusual value. d exclusion of freight. thecontracting officer shall 1 clearly identify any freight or types of', 26457:'shipments that are subject to exclusion; e.g., bulk freight, hazardous commodities, or shipments under or over specified weights; and 2', 26458:'insert a clause substantially the same as the clause at 52.2477, freight excluded, when any commodities or types of shipments', 26459:'have been identified for exclusion. e quantity. 1 the contractingofficer shall state the actual weight ofthe freight or a reasonably', 26460:'accurate estimate. the following are examples: i if the contract covers transportation services required over an extended period of time,', 26461:'include a schedule of actual or estimated tonnage or number of items to be transported per week, month, or other', 26462:'time period. ii if the contract covers a group movement of household goods, give an estimate of the aggregate weights', 26463:'and the basis for determining the aggregate weight. 2 the contractingofficer shall insertthe clause at 52.2478, estimated weights or quantities', 26464:'not guaranteed, when weights or quantities are estimates. 47.2074determination ofweights. the contractingofficer shall specify inthe contract the method of determining', 26465:'the weights of shipments asappropriatefor the kind of freight involved and the type of service required. a shipments of freight', 26466:'other than household goods and office furniture. 1 the contracting officer shall insert the clause at 52.2479, agreed weight—general freight,', 26467:'when the shipping activity determines theweight of shipments of freight other than householdgoods or office furniture. 2 the contractingofficer shall', 26468:'insertthe clause at 52.24710,netweight—general freight,when the weight of shipmentsof freightotherthan household goods or officefurniture is not known at the time', 26469:'of shipment and the contractor is responsible for determining the net weight of the shipments. b shipments of household goods', 26470:'or office furniture. the contractingofficer shall insertthe clause at 52.24711, net weight—householdgoods or office furniture, when movementsof government employees household', 26471:'goods or relocations of government offices are involved. 47.2075contractor responsibilities. contractor responsibilities varywith the kinds offreight to be shipped and', 26472:'services required. thecontracting officer shall specify clearly those service requirements that are not considered normal transportation or transportationrelated requirements. a', 26473:'type of equipment. if appropriate, thecontracting officer shall specify the type and size of equipmentto befurnished by the contractor. otherwise,', 26474:'state that the contractor shall furnishclean and sound closedtype equipment of sufficientsize to accommodate the shipment. 47.2076 federal acquisition regulation', 26475:'b supervision, labor, or materials. the contractingofficer shall insert a clause substantiallythe same as theclause at 52.24712, supervision,labor, or materials,', 26476:'when the contractor is requiredto furnish supervision,labor, or materials. c accessorial servicesmoving contracts. the contracting officer shall insert a clause', 26477:'substantially the sameas the clause at 52.24713,accessorial servicesmoving contracts, in contractsforthe transportation ofhousehold goods or office furniture. d receipt of', 26478:'shipment. thecontracting officer shall insert the clause at 52.24714, contractor responsibility for receipt of shipment. e loading and unloading. thecontracting', 26479:'officer shall insert the clause at 52.24715, contractor responsibility for loading and unloading, when the contractor is responsible for loading', 26480:'and unloading shipments. f return of undelivered freight. thecontracting officer shall insert the clause at 52.24716, contractor responsibility for returning', 26481:'undelivered freight, when the contractor is responsible for returning undelivered freight. 47.2076 rates and charges. a 1thecontractingofficershallincludeinthesolicitationastatementthatthechargesinthecontractshallnotexceed thecontractor’scharges for thesame', 26482:'service thatis iavailable to the generalpublic;or ii otherwise tendered to the government. 2 the contractingofficer shall insertthe clause at 52.24717,charges.', 26483:'b the contractingofficer shall includein the solicitation a tabulation listingeach required serviceand the basisforthe rate price; e.g.,unit of weight or', 26484:'per workhour, leaving sufficient space for offerors to insert the rates offeredforeach service. c the following guidelines apply to the', 26485:'composition of a tabulation of transportation or of transportationrelated services and their rate price bases: 1 combination of pricing bases.', 26486:'if various types of serviceswith different basesforassessing charges are required under the same contract, show each service separately and the', 26487:'applicable basis for that service. 2 hourly rate basis. if chargesare based onan hourly rate, state the method for charging', 26488:'for fractions of an hour; e.g. iaperiod of 30minutes or less is charged at onehalf thehourly rate;and ii the hourly', 26489:'rate applies to any portion of an hour that exceeds 30 minutes. 3 shipments of varying weights. if charges are', 26490:'based on weight and shipments will vary inweight, request rates on a graduated weightbasis. include a tableof graduated weights for', 26491:'offerors to insert rates. 4 multiple origins and/or destinations. specify whether rates are requested for each origin and/or each destination', 26492:'or for specific groups of origins and/or destinations. 5 multiple shipments from one origin. if multiple shipments will be tendered', 26493:'at one time to the contractor for delivery to two or more consignees at the same destination, request the rate', 26494:'applicable to the aggregate weight. if such shipments are for delivery to various destinations along the route between origin and', 26495:'last destination, request the rate applicable to the aggregate weight and a stopoff charge for each intermediate destination. ithe contracting', 26496:'officer shall insert the clause at 52.24718, multiple shipments, when multiple shipments are tendered at one time to the contractor', 26497:'for transportation from one origin to two or more consignees at the same destination. iithe contracting officer shall insert theclause', 26498:'at 52.24719, stopping in transit for partial unloading, when multiple shipments are tendered at one time to the contractor for', 26499:'transportation from one origin to two or more consignees along the route between origin and last destination. 6 estimated quantities', 26500:'or weights. the contracting officershallinsert in solicitations the provision at 52.24720, estimated quantitiesor weights for evaluation of offers, when quantities', 26501:'or weights of shipmentsbetween each origin and destination arenot known, stating estimated quantity or weight for each origin/destination pair. 7', 26502:'additional services. if services in addition to those covered in the basic rate are anticipated; e.g., inside delivery, state the', 26503:'conditions under which payment will be made for those services. 47.2077 liability and insurance. a thecontracting officer shall specify 1', 26504:'the contractor’s liability for injuryto personsor damage to property other than thefreight being transported; 2 the contractor’s liability for loss', 26505:'ofand/or damage to the freightbeing transported; and 3 the amount of insurance the contractor is required to maintain. subpart 47.2', 26506:'contracts for transportation or for transportationrelated services 47.20711 b when the contractor’s liability for loss of and/or damage to the', 26507:'freightbeing transported is not specified, the usual measure ofliability as prescribed in section 11706 of the interstate commerce act 49', 26508:'u.s.c. 11706 applies. c thecontracting officer shall insert the clause at 52.24721, contractor liability for personal injury and/or property damage.', 26509:'d the contractingofficer shall insertthe clause at 52.24722, contractor liability for loss of and/or damage to freight other than household', 26510:'goods, in solicitations and contracts for the transportation of freight other than household goods. e thecontracting officer shall insert the', 26511:'clause at 52.24723, contractor liability for loss of and/or damage to household goods, in solicitations and contracts for the transportation', 26512:'of household goods, including the rate per pound appropriate to the situation. f when freight is not shipped under rates', 26513:'subject to released or declared value, see 28.313a and the clause at 52.2289, cargo insurance. g when the contractingofficer determines', 26514:'that vehicular liability and/or general publicliability insurance required by law are not sufficientfora contract, see 28.313b and the clause at', 26515:'52.22810, vehicular and generalpublic liability insurance. 47.2078government responsibilities. a thecontracting officer shall state clearly the government’sresponsibilities that have a direct', 26516:'bearingon the contractor’s performanceunder thecontract; e.g., the government’sresponsibilityto notify the contractor in advance when hazardous materials are included in a', 26517:'shipment. 1 advance notification. the contracting officershallinsert the clauseat 52.24724, advance notification by the government, when the government is responsible', 26518:'for notifying the contractor of specific service times or unusual shipments. 2 government equipment with or without operators. i the', 26519:'contracting officer shall insert theclause at 52.24725, governmentfurnished equipment with or without operators, when thegovernmentfurnishes equipment with or without operators.', 26520:'ii insert the kind of equipment and the locations where the equipment will be furnished. 3 direction and marking. the', 26521:'contracting officershallinsert the clauseat 52.24726, government direction and marking,when office relocations are involved. b the contractingofficer shall insertthe clause at', 26522:'52.24727,contract not affected by oral agreement. 47.2079 annotation and distribution of shipping and billing documents. a thecontracting officer shall state', 26523:'in detail the responsibilities of thecontractor, the contracting agency, and, if appropriate, the consignee for the annotation and distribution of', 26524:'shipping and billing documents. see 41 cfr part 102118, transportation payment and audit. b in instances of mass movements of', 26525:'freight made available to the contractor at one time, it is particularly important that the contracting officerspecifiesthat bills ofladingbe crossreferenced', 26526:'so that the government benefits from applicable volume rates. c thecontracting officer shall insert the clause at 52.24728, contractor’s invoices,', 26527:'indrayage or other term contracts. 47.20710 discrepanciesincident to shipments. discrepancies incident to shipment include overage, shortage, loss, damage, and other', 26528:'discrepancies between the quantity and/or condition of supplies received from commercial carrier and the quantity and/or condition of these supplies', 26529:'as shown on the covering bill of lading or other transportation document. regulations and procedures for reporting and adjusting discrepancies', 26530:'in government shipments are in 41cfr parts 102117 and 118. for the department of defense dod, see dod 4500.9r, defensetransportation', 26531:'regulation,partii, chapter 210. 47.20711volume movements within the contiguous unitedstates. a for purposes of contract administration, a volume movement is 1', 26532:'in dod, the aggregate of freight shipments amounting to or exceeding 25 carloads, 25 truckloads, or 500,000 pounds, to move', 26533:'during the contract period from one origin point for delivery to one destination point or area; and 2 in civilian', 26534:'agencies, 50 short tons 100,000 pounds in the aggregate to move during the contract period from one origin point for', 26535:'delivery to one destination point or area. b transportation personnel assigned to or supporting the cao, orappropriateagency personnel,shallreport plannedand actual', 26536:'volume movements in accordance with agency regulations. dod activities report to the military surface deployment federal acquisition regulation and distribution', 26537:'command sddc under dod 4500.9r, defense transportation regulation. civilianagencies reportto the localoffice of gsa’s office of transportation see www.gsa.gov/transportation click', 26538:'on transportation management zone offices in lefthand column, then click ontransportation management zones under contacts on righthand column. 47.208report of', 26539:'shipment repship. 47.2081 advance notice. military and as required, civilian agency storage and distribution points, depots, and other receiving activities', 26540:'require advancenotice of shipmentsen route fromcontractors’ plants. generally, this notificationis required only for classified material; sensitive, controlled, and certain other', 26541:'protected material; explosives, and some other hazardous materials; selected shipments requiring movement control; or minimum carload or truckload shipments. it', 26542:'facilitates arrangements for transportation control, labor, space, and use of materials handling equipment at destination. also, timely receiptof notices by', 26543:'theconsignee transportationoffice precludes the incurring of demurrageandvehicle detention charges. 47.2082 contract clause. the contractingofficer shall insertthe clause at 52.24768, report', 26544:'of shipment repship, in solicitations and contracts when advance notice of shipment is required for safety or security reasons, or', 26545:'where carload or truckload shipments will be made to dodinstallationsor, asrequired,to civilianagency facilities. subpart 47.3 transportation in supply contracts 47.3013', 26546:'subpart 47.3 transportation in supply contracts 47.300scope of subpart. a this subpart prescribespolicies and procedures for the applicationof transportation and', 26547:'traffic management considerations in the acquisition of supplies. the terms and conditions contained in this subpart are applicable to fixedprice', 26548:'contracts. b if a special requirement exists for application of any of these terms and conditions to other types of', 26549:'contracts; e.g., costreimbursement contracts, for which transportation arrangements are normally the responsibility of the contractor and transportation costs are allowable,', 26550:'the contracting officer shall use theterms and conditions prescribed in this subpart asa guide for 1 contract coverage of transportation;', 26551:'and 2 instructions to the contractor to minimize the ultimate transportation costs to the government. 47.301general. a transportation andtraffic management', 26552:'factorsare important in awarding and administering contractsto ensure that 1 acquisitions are made on the basis most advantageous to the', 26553:'government and 2 supplies arrive in good order and condition and on time at the required place. see 47.104 for', 26554:'possible reduced transportation rates for government shipments. b the requiring activity shall 1 consider all transportation factors including present and', 26555:'future requirements, positioning of supplies, and subsequent distribution to the extent known or ascertainable; and 2 provide thecontracting office with', 26556:'information and instructions reflecting transportation factorsapplicable to the particular acquisition. 47.3011 responsibilities of contracting officers. a contracting officers shall obtain', 26557:'from traffic management offices transportation factorsrequired for 1 solicitations and awards; and 2 contract administration, modification, and termination, including the', 26558:'movement of property by the government to and from contractors’ plants. b contracting officersshallrequest transportation office participation especially before making', 26559:'an initial acquisition of supplies that are unusuallylarge, heavy, high, wide, or long; have sensitive or dangerous characteristics; or lend', 26560:'themselves to containerized movements fromthe source. in determining total transportation charges, contracting officersshallalsoconsider additional costs arising from factors such as', 26561:'the use of special equipment, excess blocking and bracing material, or circuitous routing. 47.3012 participation of transportation officers. agencies’ transportation', 26562:'officers shall participate in the solicitation and evaluation of offers to ensure thatallnecessary transportation factors, such as transportation costs, transit', 26563:'arrangements, time in transit, and port capabilities, are considered and result insolicitationsandcontracts advantageous to the government. transportation officersshallprovide traffic management', 26564:'assistance throughout the acquisition cycle see 47.105, transportation assistance. 47.3013using the defense transportation system dts. a all military and civilian', 26565:'agencies shipping, or arranging for the acquisition and shipment by government contractors, through the use of militarycontrolled transport or through', 26566:'military transshipment facilities shall follow department of defense dod regulation dod 4500.9r, defensetransportation regulation part ii. this establishes uniform procedures', 26567:'and documents for the generation, documentation, communication, and use of transportation information, thus providing the capability for control of shipments', 26568:'moving in the dts. dod 4500.9r, defense transportation regulationpart ii hasbeen implemented on a worldwide basis. b contracting activities are', 26569:'responsible for 1 ensuring that the requirements of the dod 4500.9r, defense transportation regulation part iiregulation are included in appropriate', 26570:'contractsforall applicable shipments and 2 enforcing these requirements with regard to shipments under their control. this includes requirements relating to', 26571:'documentation, marking, advance notification of shipment dates, and terminal clearances. c contractual documents shall designate a contract administration office see', 26572:'42.202a as the contact point to which the contractor will provide necessary information to federal acquisition regulation 1 effect dod4500.9r,defense', 26573:'transportation regulation part iidocumentation and movementcontrol, including air or water terminal shipment clearances; and 2 obtain data necessary for shipment', 26574:'marking and freight routing. contractual documents shall specify that the contractor shall not ship directly to a military air or', 26575:'water port terminal without authorization from the designated contract administration office see 47.3056f. 47.302place of deliveryf.o.b. point. a the policies', 26576:'and procedures in 47.3041, 2, and 3 govern the transportation of supplies from sources in the contiguous united states conus,exceptwhen', 26577:'identifiablecosts, natureof the supplies security,safety, or value, delivery requirements premium modes of transport, escorts, transit arrangements, and tentative conditions, or', 26578:'other advantages, limitations, or requirements dictate otherwise. the policies and procedures in 47.3044 govern the transportation of supplies from sources', 26579:'outside conus. b generally,the contracting officershallsolicit offers, and award contracts,with delivery terms on the basis prescribed in 47.304.the contracting officer', 26580:'shall document the contract file see 4.801 with justifications for solicitations that do not specify delivery on the basis prescribed', 26581:'in 47.304. c 1 the place of performance of government acquisition quality assurance actions and the place of acceptance shall', 26582:'not control the delivery term, except that if acceptance is at destination, transportation shall be f.o.b. destination see 47.3041f. 2', 26583:'the fact that transportation is f.o.b. destination does not alone necessitate changing the place of acceptance from origin to destination;', 26584:'and the fact that acceptance is at origin does not necessitate an f.o.b. origin delivery term. providing for inspection and', 26585:'acceptance at origin if appropriate under 46.402, in conjunction with an f.o.b. destination term, may be advantageous to boththe government', 26586:'and the contractor. acceptance of titleat origin by the government permits payment of the contractor,providedthe invoice is supportedeither by a', 26587:'copy of the signed commercial bill of lading indicating the carrier’s receipt of thesupplies covered by the invoice for transportation', 26588:'to theparticular destination specifiedin thecontract or byother appropriate evidence of shipment to the particular destination for thecontractor’saccount. 47.303standard delivery terms', 26589:'and contract clauses. standard delivery terms are listed in 47.3031 through 47.30316 but see 47.300 regarding applicability to cost reimbursement', 26590:'contracts. 47.3031f.o.b. origin. a explanation of delivery term.f.o.b. origin meansfree of expense tothe government delivered 1 on board the indicated', 26591:'type of conveyance of the carrier or of the government, if specified at a designated point in the city, county,', 26592:'and statefrom whichthe shipment will be made and from which linehaul transportation serviceas distinguished from switching, local drayage, or other', 26593:'terminal service will begin; 2 to,andplacedon,the carrier’s wharf at shipside, withinreachof the ship’sloading tackle, whenthe shipping point is within a', 26594:'port area havingwater transportationservice or thecarrier’s freight station; 3 to a u.s. postal service facility; or 4 if stated in', 26595:'the solicitation, to any governmentdesignated point located within the same city or commercial zone as the f.o.b. origin point specified', 26596:'in the contract the federal motor carrier safety administration prescribes commercial zones at subpart b of 49 cfr part 372.', 26597:'b contractor responsibilities. the contractor shall 1 i pack and mark the shipment to comply with contract specifications; or ii', 26598:'in the absence of specifications, prepare the shipment in conformance with carrier requirements to protect the goods and to ensure', 26599:'assessmentof the lowestapplicable transportationcharge; 2 i order specified carrier equipment requested by the government; or ii if not specified, order', 26600:'appropriate carrier equipment not in excess of capacity to accommodate shipment; 3 deliverthe shipment in good order and condition to', 26601:'the carrier, and load, stow, trim, block, and/or brace carload or truckloadshipment when loaded bythe contractor on orin thecarrier’s conveyance', 26602:'as required bycarrier rules and regulations; 4 be responsible for any loss of and/or damage to the goods i occurring', 26603:'before delivery to the carrier; ii resulting from improper packing and marking; or subpart 47.3 transportation in supply contracts 47.3034', 26604:'iii resulting from improper loading, stowing, trimming, blocking, and/or bracing of the shipment, if loaded by the contractor onor in', 26605:'the carrier’s conveyance; 5 completethe government bill of lading supplied by the ordering agency or, when a government bill of', 26606:'lading is not supplied, prepare a commercial bill of lading or other transportation receipt. the bill of lading shall show', 26607:'iadescription ofthe shipment in terms of the governing freightclassification ortariff or government rate tender under which lowest freight rates are', 26608:'applicable; iithe seals affixedto theconveyance with theirserialnumbers or other identification; iii lengths and capacities of cars or trucks ordered and', 26609:'furnished; iv otherpertinent information required to effect prompt delivery to the consignee, including name,delivery address, postal address and zip code', 26610:'of consignee, routing, etc. ; v special instructions or annotations requested by the ordering agency for commercial bills of lading;', 26611:'e.g., this shipment isthe property of, and the freight charges paid to the carriers will be reimbursed by, the government', 26612:'; and vi the signature of the carrier’s agent and the date the shipment is received bythe carrier; and 6', 26613:'distribute the copies of thebill oflading, orothertransportation receipts, as directed by the ordering agency. c contract clause. the contracting officer', 26614:'shall insert insolicitationsandcontracts the clause at 52.24729, f.o.b. origin, when the delivery term is f.o.b. origin. 47.3032f.o.b. origin,contractor’s facility. a', 26615:'explanation of delivery term.f.o.b. origin, contractor’s facility means free of expense to the government delivered on board the indicated type', 26616:'ofconveyance ofthe carrier or of the government if specified at the designatedfacility,on the named street or highway, in the city,', 26617:'county, andstate from which the shipment willbe made. b contractor responsibilities. thecontractor’s responsibilities are the same as those listed in', 26618:'47.3031b. c contract clause. the contracting officer shall insert insolicitationsandcontracts the clause at 52.24730, f.o.b. origin, contractor’sfacility, when the delivery', 26619:'term is f.o.b. origin, contractor’s facility. 47.3033f.o.b. origin,freight allowed. a explanation of delivery term.f.o.b. origin, freightallowed means 1 free of', 26620:'expense to the government delivered i on board the indicated type or conveyance of the carrier or of the government,', 26621:'if specified at a designated point in the city, county, and statefrom whichthe shipmentswill be made and from whichlinehaul transportation', 26622:'service as distinguished from switching, local drayage, or other terminal service will begin; iito, and placed on, thecarrier’s wharf at', 26623:'shipside, within reach of the ship’s loadingtackle, when theshipping point is within a port area havingwater transportationservice or thecarrier’s freight', 26624:'station; iii to a u.s. postal service facility; or iv if stated in the solicitation, to any governmentdesignated point located', 26625:'within the same city or commercial zone as the f.o.b. origin point specified in the contract the federal motor carrier', 26626:'safety administration prescribes commercial zones at subpart b of 49 cfr part 372; and 2 an allowance for freight,based on', 26627:'applicable publishedtariff rates or government rate tenders between the points specified in the contract, is deducted from the contract price.', 26628:'b contractor responsibilities. thecontractor’s responsibilities are the same as those listed in 47.3031b. c contract clause. the contracting officer shall', 26629:'insert insolicitationsandcontracts the clause at 52.24731, f.o.b. origin, freight allowed, when the delivery term is f.o.b. origin, freight allowed. 47.3034f.o.b.', 26630:'origin,freight prepaid. a explanation of delivery term.f.o.b. origin, freightprepaid means 1 free of expense to the government delivered i on', 26631:'board the indicated type of conveyance of the carrier or of the government, if specified at a designated point in', 26632:'the city, county, and statefrom whichthe shipmentswill be made and from whichlinehaul transportation service as distinguished from switching, local drayage,', 26633:'or other terminal service will begin; iito, and placed on, thecarrier’s wharf at shipside, within reach of the ship’s loadingtackle,', 26634:'when theshipping point is within a port area havingwater transportationservice or thecarrier’s freight station; iii to a u.s. postal service', 26635:'facility; or 47.3035 federal acquisition regulation iv if stated in the solicitation, to any governmentdesignated point located within the same', 26636:'city or commercial zone as the f.o.b. origin point specified in the contract the federal motor carrier safety administration prescribes', 26637:'commercial zones at subpart b of 49 cfr part 372; and 2 the cost oftransportation,ultimately the government’s obligation, isprepaid by', 26638:'the contractor tothe point specified in the contract. b contractor responsibilities. thecontractor’s responsibilities are the same as those listed in', 26639:'47.3031b, except that the contractor shall prepare commercial billsof lading or other transportation receipts and shall prepay all freight charges', 26640:'to the extent specified in the contract. c contract clause. the contracting officer shall insert insolicitationsandcontracts the clause at 52.24732,', 26641:'f.o.b. origin, freight prepaid, when the delivery term is f.o.b. origin, freight prepaid. 47.3035f.o.b. origin,with differentials. a explanation of delivery', 26642:'term.f.o.b. origin, with differentials means 1 free of expense to the government delivered i on board the indicated type of', 26643:'conveyance of the carrier or of the government, if specified at a designated point in the city, county, and statefrom', 26644:'whichthe shipmentswill be made and from whichlinehaul transportation service as distinguished from switching, local drayage, or other terminal service will', 26645:'begin; iito, and placed on, thecarrier’s wharf at shipside, within reach of the ship’s loadingtackle, when theshipping point is within', 26646:'a port area havingwater transportationservice or thecarrier’s freight station; iii to a u.s. postal service facility; or iv if stated', 26647:'in the solicitation, to any governmentdesignated point located within the same city or commercial zone as the f.o.b. origin point', 26648:'specified in the contract the federal motor carrier safety administration prescribes commercial zones at subpart b of 49 cfr part', 26649:'372; and 2 differentials for mode of transportation, type ofvehicle,or place of delivery as indicated incontractor’s offermay be added to', 26650:'the contract price. b contractor responsibilities. thecontractor’s responsibilities are the same as those listed in 47.3031b. c contract clause. insert', 26651:'in solicitations and contracts the clause at 52.24733, f.o.b. origin, with differentials, when it is likely that offerors may include', 26652:'inf.o.b. origin offers a contingency to compensate for unfavorable routing conditions by the government at the time of shipment. 47.3036f.o.b.', 26653:'destination. a explanation of delivery term.f.o.b. destinationmeans 1 free of expense to the government delivered,on board the carrier’s conveyance, at', 26654:'aspecified delivery point where theconsignee’s facility plant, warehouse, store, lot, or other location towhich shipment can be madeis located; and', 26655:'2 supplies shall be delivered to the destination consignee’s wharf if destination is a port city andsupplies are for export,', 26656:'warehouse unloading platform, or receiving dock, atthe expense of the contractor. thegovernment shall not be liable for any delivery, storage,', 26657:'demurrage,accessorial, orother charges involved before the actual delivery or constructive placement as definedin carrier tariffs of thesupplies to the destination,', 26658:'unless such charges are caused by an actor order of thegovernment acting in its contractual capacity. if rail carrier is', 26659:'used, supplies shall bedelivered to the specified unloading platform of the consignee. if motor carrier including piggyback is used, supplies', 26660:'shall be delivered to truck tailgate at the unloading platform of the consignee, except when the supplies delivered meet the', 26661:'requirements of item568 of the national motor freight classification for heavy or bulky freight. when supplies meeting the requirements of', 26662:'the referenced item568 are delivered, unloading including movement to the tailgate shall be performed by the consignee, with assistance from', 26663:'the truck driver, if requested. if the contractoruses railcarrier or freight forwarderforless than carload shipments,the contractor shall ensure that the', 26664:'carrier will furnish tailgate delivery when required, if transfer to truck is required to complete delivery to consignee. b contractor', 26665:'responsibilities. the contractor shall 1 i pack and mark the shipment to comply with contract specifications; or ii in the', 26666:'absence of specifications, prepare the shipment in conformance with carrier requirements; 2 prepare and distribute commercial bills of lading; 3', 26667:'deliver the shipment in good order and condition to the point of delivery specified in the contract; 4 be responsible', 26668:'for any loss of and/or damage to the goods occurring before receipt of the shipment by the consignee at the', 26669:'delivery point specified in the contract; subpart 47.3 transportation in supply contracts 47.3039 5 furnish a delivery schedule and designate', 26670:'the mode of delivering carrier; and 6 pay and bear all chargesto thespecified point of delivery. c contract clause. the', 26671:'contracting officer shall insert insolicitationsandcontracts the clause at 52.24734, f.o.b. destination, when the delivery term is f.o.b. destination. 47.3037f.o.b. destination,', 26672:'within consignee’s premises. a explanation of delivery term.f.o.b. destination, within consignee’s premises means freeof expense to the government delivered and', 26673:'laid down within the doors of the consignee’spremises, including delivery tospecific rooms within a building if so specified. b contractor', 26674:'responsibilities. thecontractor’s responsibilities are the same as those listed in 47.3036b. c contract clause. the contracting officer shall insert insolicitationsandcontracts', 26675:'the clause at 52.24735, f.o.b. destination,within consignee’s premises, whenthe deliveryterm is f.o.b. destination,within consignee’spremises. 47.3038f.a.s. vessel, port of shipment. a', 26676:'explanation of delivery term.f.a.s. vessel, port ofshipment means free ofexpenseto the government delivered alongside the ocean vessel and within reach', 26677:'of its loading tackle at the specified port of shipment. b contractor responsibilities. the contractor shall 1 i pack and', 26678:'mark the shipment to comply with contract specifications; or ii in the absence of specifications, prepare the shipment for ocean', 26679:'transportation in conformance with carrier requirementsto protect thegoods andto ensure assessment of the lowest applicable transportation charge; 2 i deliver', 26680:'the shipment in good order and condition alongside the ocean vessel and within reach of its loading tackle, at the', 26681:'point of delivery and on the date or within the period specified in the contract; and iipay and bearall applicable', 26682:'charges,including transportation costs, wharfage, handling, and heavylift charges, if necessary, up to this point; 3 provide a clean dock or', 26683:'ship’s receipt; 4 be responsible for any loss of and/or damage to the goods occurring before delivery of the shipment', 26684:'to the point specified in the contract; and 5 at the government’s requestand expense,assist in obtainingthe documents required for i', 26685:'exportation; or ii importation at destination. c contract clause. the contracting officer shall insert insolicitationsandcontracts the clause at 52.24736, f.a.s.', 26686:'vessel, port of shipment, when the delivery term is f.a.s. vessel, port of shipment. 47.3039f.o.b. vessel, port of shipment. a', 26687:'explanation of delivery term.f.o.b. vessel, port shipment means free of expense to the governmentloaded, stowed, and trimmed on board the', 26688:'ocean vessel at the specified port of shipment. b contractor responsibilities. the contractor shall 1 i pack and mark the', 26689:'shipment to comply with contract specifications; or ii in the absence of specifications, prepare the shipment for ocean transportation in', 26690:'conformance with carrier requirementsto protect thegoods andto ensure assessment of the lowest applicable transportation charge; 2 i deliver the shipment', 26691:'on board the ocean vessel in good order and condition on the date or within the period fixed; and iipay', 26692:'and bearall charges incurred in placing the shipment actually onboard; 3 provide a clean ship’s receiptor onboard ocean bill of', 26693:'lading; 4 be responsible for any loss of and/or damage to the goods occurring before delivery of the shipment on', 26694:'board the ocean vessel; and 5 at the government’s requestand expense,assist in obtainingthe documents required for i exportation; or ii', 26695:'importation at destination. c contract clause.the contracting officer shall insert insolicitationsandcontracts the clause at 52.24737, f.o.b. vessel, port of shipment,', 26696:'when the delivery term is f.o.b. vessel, port of shipment. 47.30310 federal acquisition regulation 47.30310 f.o.b. inland carrier, point of', 26697:'exportation. a explanation of delivery term.f.o.b. inland carrier,pointof exportation means freeof expense to the government, on boardthe conveyance of theinlandcarrier,', 26698:'delivered to thespecified point of exportation. b contractor responsibilities. the contractor shall 1 i pack and mark the shipment to', 26699:'comply with contract specifications; or ii in the absence of specifications, prepare the shipment for ocean transportation in conformance with', 26700:'carrier requirementsto protect thegoods andto ensure assessment of the lowest applicable transportation charge; 2 prepare and distribute commercial bills of', 26701:'lading; 3 i deliver the shipment in good order and condition in or on the conveyance of the carrier on', 26702:'the date or within the period specified; and iipay and bearall applicable charges,including transportation costs, to the point of delivery', 26703:'specifiedin the contract; 4 be responsible for any loss of and/or damage to the goods occurring before delivery of the', 26704:'shipment to the point of delivery specified in the contract; and 5 at the government’s requestand expense,assist in obtainingthe documents', 26705:'required for i exportation; or ii importation at destination. c contract clause. the contracting officer shall insert insolicitationsandcontracts the clause', 26706:'at 52.24738, f.o.b. inland carrier, point of exportation, when thedelivery term is f.o.b. inland carrier,pointof exportation. 47.30311f.o.b. inland point, country', 26707:'of importation. a explanation of delivery term.f.o.b. inland point, country ofimportation means free of expense to the government, on boardthe', 26708:'indicated type of conveyance of the carrier, delivered to the specified inland point where the consignee’s facilityis located. b contractor', 26709:'responsibilities. the contractor shall 1 i pack and mark the shipment to comply with contract specifications; or ii in the', 26710:'absence of specifications, prepare the shipment for ocean transportation in conformance with carrier requirements to protect the goods; 2 ideliver,inorontheinlandcarrier’sconveyance,theshipmentingoodorderandconditiontothespecified', 26711:'inland point where the consignee’s facilityis located; iipay and bearall applicable charges incurred up to the point ofdelivery,including transportation costs;export,', 26712:'import, or other fees or taxes; costs of landing; wharfage costs; customs duties and costs of certificates of origin; consular', 26713:'invoices; and other documents that may be required for importation; and 3 be responsible for anyloss of and/or damage to', 26714:'thegoods until their arrival on orin the carrier’s conveyance at the specified inland point. c contract clause. the contracting officer', 26715:'shall insert insolicitationsandcontracts the clause at 52.24739, f.o.b. inland point, country of importation, when the delivery term is f.o.b. inland', 26716:'point, country of importation. 47.30312 ex dock, pier, or warehouse, port of importation. a explanation of delivery term.ex dock, pier,or', 26717:'warehouse,portof importation meansfree of expense tothe government delivered on the designated dock or pier or in the warehouse at the', 26718:'specified port of importation. b contractor responsibilities. the contractor shall 1 i pack and mark the shipment to comply with', 26719:'contract specifications; or ii in the absence of specifications, prepare the shipment for ocean transportation in conformance with carrier requirements', 26720:'to protect the goods; 2 i deliver shipment in good order and condition; and iipay and bearall charges up to', 26721:'the point ofdelivery specified in the contract, including transportation costs; export, import, or other fees or taxes; costs of wharfage', 26722:'and landing, if any; customs duties; and costs of certificates of origin, consular invoices, or other documents that may be', 26723:'required for exportation or importation; and 3 be responsible for any loss of and/or damage to the goods occurring before', 26724:'delivery of the shipment to the point of delivery specified in the contract. c contract clause. the contracting officer shall', 26725:'insert insolicitationsandcontracts the clause at 52.24740, ex dock, pier,or warehouse, port of importation, when the delivery termis ex dock, pier,', 26726:'or warehouse, port of importation. subpart 47.3 transportation in supply contracts 47.30316 47.30313 c. & f. destination. a explanation of', 26727:'delivery term.c.&f. cost & freight destination means free of expense to the government delivered on board the ocean vessel to', 26728:'thespecified point of destination, with the cost of transportation paid by thecontractor. b contractor responsibilities. the contractor shall 1 i', 26729:'pack and mark the shipment to comply with contract specifications; or ii in the absence of specifications, prepare the shipment', 26730:'for ocean transportation in conformance with carrier requirements; 2 i deliver the shipment in good order and condition; and iipay', 26731:'and bearall applicable charges to the point of destination specified in thecontract, includingtransportation costs andexport taxes or other fees or', 26732:'charges levied because of exportation; 3 obtain and dispatch promptly to the government clean onboard ocean bills of lading to', 26733:'the specified point of destination. 4 be responsible for any loss of and/or damage to the goods occurring before delivery;', 26734:'and 5 at the government’s requestand expense,provide certificates of origin, consular invoices, oranyotherdocuments issued in the country of origin or', 26735:'of shipment, or both, that may be required for importation into the country of destination. c contract clause. the contracting', 26736:'officer shall insert insolicitationsandcontracts the clause at 52.24741, c.&f. destination, when the delivery term is c.&f. cost & freight destination.', 26737:'47.30314 c.i.f. destination. a explanation of delivery term.c.i.f. cost, insurance, freight destination means free of expense to the government delivered', 26738:'on board the ocean vessel to the specified point of destination, with the cost of transportation and marine insurance paid', 26739:'by the contractor. b contractor responsibilities. thecontractor’s responsibilities are the same as those listed in 47.30313b, except that, in addition,', 26740:'the contractor shall obtain and dispatch to the government an insurance policy or certificate providing the amount and extent of', 26741:'marine insurance coverage specified in the contract or agreed upon by the government contracting officer. c contract clause. the contracting', 26742:'officer shall insert insolicitationsandcontracts the clause at 52.24742, c.i.f. cost, insurance, freight destination, when the delivery term is c.i.f. destination.', 26743:'47.30315 f.o.b. designated aircarrier’s terminal, point of exportation. a explanation of delivery term.f.o.b. designated air carrier’s terminal, point of exportation', 26744:'means free of expense to the government loaded aboard the aircraft, or delivered to the custody of the air carrier', 26745:'if only the air carrier performs the loading, at theair carrier’s terminal specified in the contract. b contractor responsibilities. the', 26746:'contractor shall 1 i pack and mark the shipment to comply with contract specifications; or ii in the absence of', 26747:'specifications, prepare the shipment for air transportation in conformance with carrier requirementsto protect thegoods andto ensure assessment of the lowest', 26748:'applicable transportation charge; 2 idelivertheshipmentingoodorderandconditionintotheconveyanceofthecarrier,ortothecustodyofthe carrier if only the carrier performs the loading, at the point of delivery and on', 26749:'the date or within the period specified in the contract; and iipay and bearall applicable charges up tothispoint; 3 provide', 26750:'a clean bill of lading and/or air waybill; 4 be responsible for any loss of and/or damage to the goods', 26751:'occurring before delivery of the goods to the point specified in the contract; and 5 at the government’s requestand expense,assist', 26752:'in obtainingthe documents required for the purpose of exportation. c contract clause. the contracting officer shall insert insolicitationsandcontracts the clause', 26753:'at 52.24743. f.o.b. designated air carrier’s terminal, point of exportation, when the delivery term is f.o.b. designated air carrier’s terminal,', 26754:'point of exportation. 47.30316 f.o.b. designated aircarrier’s terminal, point of importation. a explanation of delivery term.f.o.b. designated air carrier’s terminal,', 26755:'point of importation means free ofexpenseto thegovernment delivered to the air carrier’s terminalat the point of importation specifiedin the contract.', 26756:'b contractor responsibilities. the contractor shall 47.30317 federal acquisition regulation 1 i pack and mark the shipment to comply with', 26757:'contract specifications; or ii in the absence of specifications, prepare the shipment for air transportation in conformance with carrier requirements', 26758:'to protect the goods; 2 prepare and distribute bills of lading or air waybills; 3 i deliver the shipment in', 26759:'good order and condition to the point of delivery specified in the contract; and iipay and bearall charges incurred up', 26760:'to thepointof delivery specifiedin the contract, including transportation costs; export, import, or other fees or taxes; cost of landing, if', 26761:'any; customs duties; and costs of certificates of origin, consular invoices, or other documents that may be required for exportation', 26762:'or importation; and 4 be responsible for any loss of and/or damage to the goods until delivery of the goods', 26763:'to the government at the designated aircarrier’s terminal. c contract clause. the contracting officer shall insert insolicitationsandcontracts the clause at', 26764:'52.24744, f.o.b. designated air carrier’s terminal, point of importation, when the delivery term is f.o.b. designated air carrier’s terminal, point', 26765:'of importation. 47.30317 contractorprepaidcommercial bills of lading, small package shipments. a if it is advantageous tothe government, thecontracting officer may', 26766:'authorizethe contractor to shipsupplies, which have been acquired f.o.b. origin, to domestic destinations, including dod air and water terminals by', 26767:'common carriers on commercial bills of lading. such shipments shall not exceed 150 pounds by commercial air or 1,000 pounds', 26768:'by other commercial carriers and shall not have a security classification. b the contractingofficer may authorize the shipments under paragraph', 26769:'a of this subsectionto beconsolidated with the contractor’s own prepaid shipments for delivery to one or more destinations, if all', 26770:'appropriate f.o.b. origin shipmentsunder one or more government contracts have been consolidated initially. thecontractor may be authorizedto consolidate lessthancarload or', 26771:'lessthantruckload government shipments with its own shipments so that the government can take advantage of lower carload or truckload freight', 26772:'costs. the government shall assume its pro rata share of the combined shipment cost. agency transportation personnel shall evaluate overall', 26773:'transportation costs before authorizing any movement to ensure savings to the government consistent withother contract and traffic management considerations. when', 26774:'consolidation is authorized, a copy of the commercial bill of lading shall be mailed promptly to each consignee. c shipments', 26775:'under prepaid commercial bills of lading, as authorized in paragraph a of this subsection, do not require a contract modification.', 26776:'unless otherwise provided in the contract, the supplies move for the account of, and at the risk of, thegovernment. the', 26777:'suppliesbecome government property whenloaded on the carrier’sequipment and the contractorhas obtainedthe carrier’s receipt. the contractor pays the transportation charges and', 26778:'is reimbursed by thegovernment. lossor damage claims shall be processed in accordance with agency regulations. d the contractor’s invoice for', 26779:'reimbursement by the government shall show the prepaid transportation chargesas agreed see paragraph b of this subsection, as a separate', 26780:'item for each individual shipment. the contractor shall support the transportation charges with acopy ofthe carrier’sreceipted freight bill or other', 26781:'evidenceof receipt, except as follows: 1 a government agency may determine that receipted freight bills or other evidence of receipt', 26782:'are not required for transportation charges of $100 or less. 2 a government agency may pay an invoiced but unsupported', 26783:'transportation charge of$250 or less per transaction i.e., purchase, invoice, or aggregate billing or payment for multiple purchases, if i', 26784:'the contractor cannot reasonably provide a receipted freight bill; and iithe agency has determinedthat thecharges arereasonable. determination of reasonableness may', 26785:'be based on apast experience authenticatedtransportation charges for similar shipments; b rate checks; c copies of previous freight bills submitted', 26786:'by the contractor; or d other information submitted by the contractor to substantiate the amount claimed. 3 receiptedfreight billsin support', 26787:'of invoicedtransportation charges of $100 or less arenot required for reimbursement by the government, if i the underlying contract specifies', 26788:'retention by the contractor of all records for at least 3 years after final payment under the contract; and ii', 26789:'the contractor agrees to furnish evidence of payment when requested by the government. e shipments and invoices shall not be', 26790:'split toreduce transportation charges to$100 or less per transaction as a means of avoidingthe required documented support for the charges.', 26791:'see paragraphd2 of this subsection for unsupported transportation charges of $250 or less. subpart 47.3 transportation in supply contracts 47.3043', 26792:'f the contracting officer shall insertthe clause at 52.24765,f.o.b. origin, prepaid freightsmall packageshipments, in solicitations and contracts when f.o.b. origin', 26793:'shipments are to be made. 47.304determination of delivery terms. 47.3041 general. a thecontracting officer shall determinef.o.b. terms generally on the', 26794:'basis ofoverall costs,giving due consideration to the criteria given in 47.304. b solicitations shall specify whether offerors must submitoffers f.o.b.', 26795:'origin, f.o.b. destination, or both; or whether offerors may choose the basis on which they make an offer. the contracting', 26796:'officer shall consider the mostadvantageous delivery point, such as 1 f.o.b. origin, carrier’sequipment, wharf,or specified freight stationnear contractor’splant; or 2', 26797:'f.o.b. destination. c in determining whether f.o.b. origin or f.o.b. destination is more advantageous to the government, the contracting officer', 26798:'shall consider the availability of lower freight rates government rate tenders to thegovernmentforf.o.b. origin acquisitions. f.o.b. origincontracts also present other', 26799:'desirable traffic management features, in that they 1 permit use of transit privileges see 47.30513; 2 permit diversions to new', 26800:'destinations without price adjustment for transportation see 47.30511; 3 facilitate use of special routings or types of equipment e.g., circuitous', 26801:'routing or oversize shipments see 47.30514; 4 facilitate, if necessary, useof premium cost transportation andpermitgovernmentcontrolled transportation; 5 permit negotiations for', 26802:'reduced freight rates see 47.1041b; and 6 permit use of small shipment consolidation stations. d when destinations are tentative or', 26803:'unknown, the solicitation shall be f.o.b. origin only see 47.3055. e when the size or quantity of supplies with confidential', 26804:'or higher security classification requires commercial transportation services, thecontracting officer shall generallyspecify f.o.b. origin acquisitions. f when acceptance must be', 26805:'at destination, solicitation shall be on an f.o.b. destination only basis. g following are examples of situations when solicitations shall', 26806:'normally be on an f.o.b. destination only basis because it is advantageous to the government see 47.3054: 1 bulk supplies,', 26807:'such as coal, that require other than governmentowned or operated handling, storage, and loading facilities, are destined for shipment outside', 26808:'conus. 2 steel or other bulk construction products are destined for shipment outside conus. 3 supplies consist of forestproducts such', 26809:'as lumber. 4 perishable or medical supplies are subject to intransit deterioration. 5 evaluationof f.o.b. origin offersis anticipated to result', 26810:'inincreased administrativelead time or administrative cost that would outweigh the potential advantages of an f.o.b. origin determination. 47.3042 shipments within', 26811:'conus. a solicitations shall providethat offers may be submitted onthe basis of either or both f.o.b origin andf.o.b. destination and', 26812:'that they will be evaluated on the basis of the lowest overall cost to the government. b when sufficient reasons', 26813:'exist not to follow this policy,the contract fileshallbe documented to include the reasons. 47.3043shipments from conus for overseas delivery. a', 26814:'when government acquisitions involve shipments from conus to overseas destinations, delivery f.o.b. origin may afford not only theeconomies of lower', 26815:'freight rates available to the government withinconus,but also flexibility for selection of 1 the port of export; and 2 the', 26816:'ocean transportation providing the lowest overall cost to the government. b 1 unless there are valid reasons to the contrary', 26817:'see 47.3045, acquisition of supplies originating within conus for ultimate delivery to destinations outside conus shall be made on the', 26818:'basis of f.o.b. origin. this policy applies to supplies and equipment to be shipped either directly to a port area', 26819:'for export or to a storage or holding area for subsequent forwarding to a port area for export. 47.3044 federal', 26820:'acquisition regulation 2 justification for the solicitation of offers on other than an f.o.b. originbasis shall be recorded and the', 26821:'contract file documented accordingly. c export cargo involves considerations of operational and cost factors from the point of origin withinconus', 26822:'to the overseas port destination. the lowest cost of shipping can be determined only by evaluating and comparing the various', 26823:'prospective landed costs including inland, terminal, and ocean costs. also, agencies may have export licensing privileges for shipmentsto foreigndestinations. the', 26824:'contracting officershallobtain advice from the transportation officer to ensure full use of these privileges. 47.3044 shipments originating outside conus. a', 26825:'unless there are valid reasons to the contrary see 47.3045, acquisition of supplies originating outside conus for ultimate delivery to', 26826:'destinations within conus or elsewhere, regardless of the quantity of the shipments, shall be on the basis of f.o.b. origin', 26827:'or f.o.b. destination, whichever is more advantageous to the government. b the contractingofficer shall request theadviceof the transportationofficer to determine', 26828:'the most appropriate place of delivery to be specified in acquisition documents, giving full consideration to the possible use of', 26829:'government transportation facilities, reduced rates available, special licensing or custom requirements, and availability of u.s. flag shipping services between the', 26830:'points involved see subpart 47.5. 47.3045 exceptions. a unusual conditions or circumstances may require the use of terms other than', 26831:'f.o.b. origin or f.o.b. destination. such conditions or circumstances include, but are not limited to 1 transportation disabilitiesat origin or', 26832:'destination; 2 mode of transportation required; 3 availability ofgovernmentor commercial loading, unloading,or transshipment facilities; 4 characteristics of the supplies; 5', 26833:'trade customs related tocertain supplies; 6 origins or destinations in alaska and hawaii; and 7 program requirements. b contracting officersshallobtain', 26834:'assistance from transportation officersbefore issuing solicitations when unusual conditions or circumstances exist that relate to f.o.b. terms. 47.305 solicitation provisions,', 26835:'contract clauses, and transportationfactors. a thecontracting officer shall coordinate transportation factors withthe transportation office during theplanning, solicitation, and award phases', 26836:'of the acquisition process see 47.105. b to the extent feasible, activities shall schedule deliveries to effectsavings in transportation costs,', 26837:'and concomitant reductions in energy consumption bycarriers see 47.3057 and 47.3058 for specific possibilities. 47.3051solicitation requirements. when the acquisition ofsupplies', 26838:'is on f.o.b. origin or f.o.b. destination delivery terms, the contracting officer shall include in solicitations a requirement that theofferor', 26839:'furnish the governmentas muchof the following data asis applicableto the particular acquisition: a modes of transportation and, if rail transportation', 26840:'is used,names of rail carriers serving the offeror’s facility. b the numberof railroadcars, motor trucks, or other conveyances that can', 26841:'be loadedper day. c typeof packaging; e.g., box, carton, crate, drum, bundle, skids, and when applicable, package number from the', 26842:'governing freight classification. d number of units packed in one container. e guaranteed maximum shipping weight;cubicmeasurement; and length, width, andheight', 26843:'of each container. f minimum size of each shipment. g number of containers or units thatcan be loaded in a', 26844:'car, truck, or other conveyance of the size normally used specify type and size for the commodity. h description ofmaterial', 26845:'interms ofthe governingfreight classification or tariff or government rate tender under which lowest freight rates are applicable. ibenefits available to', 26846:'the government under transit arrangementsmadeby the offeror. j other requirements as stated under specific section headings. subpart 47.3 transportation in', 26847:'supply contracts 47.3054 47.3052 solicitations f.o.b. origin and f.o.b. destinationlowest overall cost. a solicitations, when appropriate, shall specify that offersmay', 26848:'be f.o.b. origin, f.o.b. destination, or both; and that they will be evaluated on the basis of the lowest overall', 26849:'cost to the government. b when offers are solicitedon the basisof both f.o.b. origin and f.o.b. destination, the contracting officer', 26850:'shall insert in solicitations the provision at 52.24745, f.o.b. origin and/or f.o.b. destination evaluation. 47.3053f.o.b. origin solicitations. when preparing f.o.b.', 26851:'origin solicitations, the contracting officershallreferto 47.303, where f.o.b. origin clauses relating to standard delivery terms are prescribed. supply solicitations that', 26852:'will or may result in f.o.b. origin contracts shall also contain requirements, information, provisions, and clauses concerning the following items:', 26853:'a delivery in carload or truckload lots f.o.b. carrier’s equipment, wharf, orfreight station. b the requirement that the offeror furnish', 26854:'the following information with the offer: 1 location of theofferor’s actual shipping points streetaddress, city, state, and zip code from', 26855:'which supplieswill be delivered to the government. 2 whetherthe offeror’s shipping point has aprivaterailroad siding, andthe name of the railcarrier', 26856:'serving it. 3 when the offeror’sshipping point does not have a private siding, the names and addresses of the nearest', 26857:'public rail sidingandof the carrier serving it. this will enable transportation officers,when issuing routing instructions, to select the mode of', 26858:'transportation that will provide the required service at the lowest possible overall cost. 4 i the quantity of supplies to', 26859:'be shipped from each shipping point. iithe contracting officer shall insert inf.o.b. origin solicitations the provision at 52.24746, shipping points', 26860:'used in evaluation of f.o.b. originoffers, when price evaluation for shipments fromvariousshipping points is contemplated. c when deliveryis f.o.b. origin,', 26861:'contractor’s facility, and the designated facilityis not coveredby the linehaul transportation rate, the charges required todeliverthe shipment to the point', 26862:'where the linehaulrate is applicable. d when delivery is f.o.b. origin, freight allowed, the basis onwhich transportation charges will be', 26863:'allowed,including theorigin and destinationfrom and to which transportationcharges will be allowed. e if f.o.b. origin offers only are desired, astatement', 26864:'that offers submittedon any other basis will be rejected as nonresponsive. f 1 the methods of transportation used in evaluating', 26865:'offers. the government normally uses land transportation by regulated common carriers between points in the 48 contiguous united states and', 26866:'the district of columbia. 2 the contractingofficer shall insertthe provisionat 52.24747, evaluationf.o.b. origin, insolicitationsthat require prices f.o.b. origin for the', 26867:'purpose of establishing the basison which offerswill be evaluated. g 1whenitisbelievedthatprospectivecontractorsarelikelytoincludeinf.o.b. originoffersacontingencyto compensate for what may be an unfavorable routing', 26868:'condition by the government at the time of shipment, the contracting officer may permitprospective contractors to statein offers areimbursable differential', 26869:'thatrepresents the cost ofbringing the supplies to any f.o.b. origin place of delivery specified by the government at the time', 26870:'of shipment see the clause at 52.24733, f.o.b. origin, with differentials. 2 following are situations that might impose on the', 26871:'contractor a substantial cost above at plant or commercial shipping point prices because of governmentrequired routings: i the loading nature', 26872:'of the supplies; e.g., wheeled vehicles. iithe different methods of shipment specified bythe government; e.g., towaway, driveaway, trilevel vehicle, or', 26873:'rail car, that may increase the contractor’s cost in varying amounts for bringing thesupplies to, or loadingand bracing the supplies', 26874:'at,the specified placeof delivery. iii the contractor’s f.o.b. origin shipping point is a port city servedby united states inland,coastwise, or', 26875:'intercoastal water transportation, and the contractor would incur additional costs to make delivery f.o.b. a wharf in that city to', 26876:'accommodate water routing specified by the government. iv the contractor’s plantdoes not have a private rail siding and in order', 26877:'to shipby governmentspecified rail routing, the contractor would be required to deliver the supplies to a public siding or freight', 26878:'terminal and to load, brace, and install dunnage in rail cars. 47.3054f.o.b. destination solicitations. a when preparing f.o.bdestinationsolicitations, the contracting', 26879:'officer shall refer to 47.303 for the prescription of f.o.b. destination clauses relating to standard delivery terms. 47.3055 federal acquisition', 26880:'regulation b if f.o.b. destination only offers are desired, the solicitation shall state that offers submittedon abasis other than f.o.b.', 26881:'destination will be rejected as nonresponsive. c when supplies will or may be purchased f.o.b. destination but inspection and acceptance', 26882:'will be at origin, the contracting officershallinsert in solicitations and contracts the clause at 52.24748, f.o.b. destinationevidenceof shipment. 47.3055 destination', 26883:'unknown. a 1whendestinationsareunknown,solicitationsshallbef.o.b. originonly. 2 the contractingofficer shall includein the contractfile justifications for such solicitations. b 1 when the exact', 26884:'destination of the supplies to be acquired is not known, but the general location of the users can be reasonably', 26885:'established, the acquiring activity shall designate tentative destinations for the purpose of computing transportation costs, showing estimated quantities for each', 26886:'tentative destination. 2 the contractingofficer shall insertin solicitations theprovision at 52.24749, destination unknown, when destinationsare tentative and only for the', 26887:'purpose ofevaluating offers. 3 if it is necessary to control subsequent shipping weights, the solicitation shall state that subsequent shipments', 26888:'shall be made in carloads or truckloads see the clause at 52.24759, f.o.b. origincarload and truckload shipments. c 1 when', 26889:'exact destinations are not known and it is impracticable to establish tentative or general delivery places for thepurpose of evaluating', 26890:'transportation costs, the contracting officer shall insert insolicitationsthe provisionat 52.24750, no evaluation of transportationcosts. 2 the solicitation shall also state', 26891:'that the transportation costs of subsequent shipments must be controlled see, for example, the clause at 52.24761, f.o.b. originminimum size', 26892:'of shipments. 47.3056 shipments to ports and air terminals. a when supplies are acquired on the basis of the delivery', 26893:'terms in 47.3038 through 47.30316, the solicitation shall include a requirement that the offeror furnish the government the following information:', 26894:'1 when the delivery term is f.a.s. vessel, port of shipment, f.o.b. vessel, port of shipment, or f.o.b. inland carrier,', 26895:'point of exportation, the required data shall include i a delivery schedule in number of units and/or long or short', 26896:'tons; ii maximum quantities available per shipment; iii the quantity that can be made available for loading to vessel per', 26897:'running day of 24 hours if acquisition involves a commodity to be shipped in bulk; iv the minimum leadtime required', 26898:'to make supplies available for loading to vessel; and v the port and pier or other designation and, when applicable,', 26899:'the maximum draft of vessel in feet that can be accommodated. 2 when the delivery term is:f.o.b. inland point, country', 26900:'of importation or f.o.b. designated aircarrier’s terminal, point of importation, the required data shall include i a delivery schedule in', 26901:'number of units and/or long or short tons; ii maximum quantities available per shipment; and iii other dataappropriate to shipment', 26902:'by air carrier. 3 when the delivery term is ex dock, pier or warehouse, port of importation or c.&f. cost', 26903:'& freight destination, the required data shall include i a delivery schedule in number of units and/or long or short', 26904:'tons; ii maximum quantities available per shipment; and iii the number of containers orunits that can be loaded in a', 26905:'car, truck, or otherconveyance ofthe size normally usedspecifytype and size for the commodity. 4 when the delivery term is c.i.f.', 26906:'cost, insurance, freight destination, the required data shall include i the same as specified in 47.3056a3; and ii the amount', 26907:'and type of marine insurance coverage; e.g., whether the coverage is with average or freeof particular average and whether it', 26908:'covers any special risks or excludes any of theusual risks associated with thespecific commodity involved. 5 when the delivery term', 26909:'is f.o.b. designated air carrier’s terminal, point of exportation, the required data shall include i a delivery schedule number of', 26910:'units, type of package, and individual weight and dimensions of each package; ii minimum leadtime required to make supplies available', 26911:'for loading into aircraft; subpart 47.3 transportation in supply contracts 47.3057 iii name of airport and location to which shipment', 26912:'will be delivered; and iv otherdata appropriate toshipmentby air carrier. b when supplies are acquired for known destinations outside conus', 26913:'and originate within conus, the contracting officer shall, for transportation evaluation purposes, note in the solicitationthe conus port of loading', 26914:'or point ofexit aerial or water and the water port of debarkation that serves the overseas destination. c thecontracting officer', 26915:'may also, for evaluation purposes, list in the solicitation other conusports thatmeet the eligibility criteria compatible with the nature and', 26916:'quantity of the supplies, their destination, type of carrier required, and specified overseas delivery dates. this permits offerors that are', 26917:'geographically remote fromthe port that normally serves the overseas destination to be competitive as far as transportation costs are concerned.', 26918:'d unless logistics requirements limit the ports of loading to the ports listed in the solicitation, the solicitation shall state', 26919:'that 1 offerorsmay nominate additional ports includingports inalaskaandhawaiimore favorably located to their shipping points; and 2 these ports will be', 26920:'considered in the evaluation of offers if theypossess all requisitecapabilities ofthe listed ports in relation to the supplies being acquired.', 26921:'e when supplies are to be exported through conusports and offersare solicited on an f.o.b. originor f.o.b. destination basis, the', 26922:'contracting officer shall insert insolicitationsthe provisionat 52.24751, evaluation of export offers. the contracting officershalluse the provision with its 1 alternatei,', 26923:'when the conus ports of export are dod water terminals; 2 alternateii, when offers are solicited on an f.o. b.', 26924:'origin only basis; or 3 alternateiii,when offers are solicitedon an f.o.b. destination onlybasis. f 1whenthesuppliesaretomoveinthedefensetransportationsystemdtssee 47.3013, the contract shall specify', 26925:'that iatransportationcontrol movement document tcmd must be dispatched tothe appropriate dod air or water clearanceauthority inaccordance withdod 4500.9r, defense transportation', 26926:'regulation, part ii, procedures for all shipments consigned to dod air or water terminal transshipment points; and ii an export', 26927:'release must be obtained for supplies to be transshipped via a water port of loading to overseas destinations, except for', 26928:'shipments for which an export release is not required, generally shipments of less than 10,000 pounds,see dod 4500.9r, defense transportation', 26929:'regulation, part ii. 2 when shipments willbe consigned to dod air or water terminal transshipment points,the contracting officershall insert in', 26930:'solicitations and contracts the clause at 52.24752, clearance and documentation requirementsshipments to dod air or waterterminal transshipment points. g when', 26931:'a contract will not generate any shipments that require an export release, only the dod conus ports that serve theoverseas', 26932:'destination shall belisted in the solicitation, except that the responsible contractingofficer may limit the water ports listed when such limitation', 26933:'is considered necessary to meet delivery or other requirements. h the awardshallspecify the united states ports of loadingthat afford thelowest', 26934:'overallcostto theoverseas destination. i when supplies will be from origins outside conus to destinations either within or outside conus, the', 26935:'contracting officer shall use theappropriatef.o.b. term and include evaluationofoffers information. jin furtheranceof the cargo preference act of1954 46 u.s.c. 1241b,', 26936:'to encourage and foster the american merchant marine, the port of delivery of supplies originating outside the united states and', 26937:'shipped by ocean vessel shall be based on the availability of united statesflag vessels between the ports involved, unless the', 26938:'acquiring activity has given other specific instructions. see subpart 47.5oceantransportationbyu.s.flagvessels. k for application of the fly america act to the', 26939:'transportation of supplies and personnel when the government is responsible for the transportation costs, see subpart 47.4airtransportationbyu.s.flagcarriers. lmilitary and civilianagencies', 26940:'shall obtain assistance from transportation offices in connection with allexport shipments see 47.105. 47.3057quantity analysis, direct delivery,and reduction ofcrosshauling and', 26941:'backhauling. a quantity analysis. 1 the requiring activity shall consider the acquisition of carload or truckload quantities. 2 when additional', 26942:'quantities of the supplies being acquired can be transported at lower unit transportation costs or with a relatively small increase', 26943:'in total transportation costs, with no impairment to the program schedule, the contracting officer shall ascertain fromthe requiring activity whether', 26944:'thereis a known requirement for additional quantities. this may 47.3058 federal acquisition regulation be the case, for example, when the', 26945:'additional quantity could profitably be stored by the activity for future use, or could be distributed advantageously to several using', 26946:'activities on the same transportation route or in the same geographical area. b direct delivery. when it is the usualpracticeof', 26947:'arequiring activity toacquire supplies in large quantities for shipment to a centralpointand subsequentdistribution to using activities, as needed, consideration shall', 26948:'begiven, if sufficient quantitiesare involved to warrant scheduling direct delivery, to the feasibility of providing for direct delivery from the', 26949:'contractor to the using activity,thereby reducing the cost of transportation and handling. c crosshauling and backhauling. the contracting officer shall', 26950:'select distribution and transshipment facilities intermediate to origins and ultimate destinations to reduce crosshauling and backhauling; i.e., to the transportation', 26951:'of personal property of the same kind in opposite directions or the return of the property to or through areas', 26952:'previously traversed in shipment. 47.3058 consolidation of small shipments and the use of stopoff privileges. a consolidation of small shipments.', 26953:'consolidation of small shipmentsinto larger lots frequently resultsin lower transportation costs. therefore, the contracting officer, after consultation withthe transportation office', 26954:'and the activity requiring the supplies, may revise thedelivery schedulesto provide for deliveries in larger quantities. b stopping for partial', 26955:'unloading. when feasible, schedules for delivery of supplies to multiple destinations shall be consolidated and the stopoffprivileges permitted under carrier', 26956:'tariffs shall be used for partial unloading at one or more points directly en route between the point of origin', 26957:'and the last destination. 47.3059commoditydescription and freight classification. a generally, the freight rateforsupplies is based on the rating applicableto thefreight', 26958:'classification description published in the national motor freight classification nmfc for carriers and the uniform freight classification ufc for rail', 26959:'filedwith federal and state regulatory bodies. therefore, thecontracting officer shall show in the solicitation a complete description of the commodity', 26960:'to be acquired and of packing requirements to determine proper transportation charges for the evaluation of offers. if supplies cannot', 26961:'beproperlyclassified through reference tofreight classification tariffs or if doubtexists, the contractingofficer shall obtain the applicable freight classificationfrom the transportation office.', 26962:'in some situationsprospective contractors have establishedan officialfreight classification description that can be applied. b 1 when the supplies being acquired', 26963:'are new to the supply system, nonstandard, or modifications of previously shipped items, and different freight classifications may apply, the', 26964:'contracting officer shall insert in solicitations the provision at 52.24753, freight classification description. 2 the contractingofficer shall alert the transportation', 26965:'officer to the possibility of negotiations for appropriate freight classification ratings and reasonable transportation rates. c the solicitation shall contain', 26966:'adequate descriptions of explosives and other dangerous supplies according to 1 the regular freight classification; and 2 the hazardous material', 26967:'description and hazard class as shown in 49 cfr172.101. d the contractingofficer shall furnishthe freight classification informationdevelopedin 47.3059a, b, and', 26968:'c of this section to the contractadministration office. 47.30510 packing, marking, and consignment instructions. a acquisition documents shall include packing', 26969:'and marking requirements necessary to prevent deterioration of supplies and damages due to the hazards of shipping, handling, and storage,', 26970:'and, when appropriate, marking in accordance with the requirements of 49 cfr 172.300. b contracts shall include complete consignment and', 26971:'marking instructions at the time the contract is awarded to ensure that supplies are delivered to proper destinations without delay.', 26972:'if complete consignment information is notinitially known, thecontracting officer shall issue amended delivery instructionsunder thechanges clause of the contractsee 43.205', 26973:'as soon as the information becomes known. c if necessary to meet required delivery schedules, the contracting officer may issue', 26974:'instructions by telephone or electronic means. thecontracting officer shall confirm telephonic instructions in writing, and confirm electronic instructions if the', 26975:'contractingofficer did not receive confirmation of receipt. d marking and consignment instructions for military shipments shall conform to the current', 26976:'issue of milstd129 military standard marking for shipment and storage and other applicable dod regulations. shipments for civilian agencies shall', 26977:'be marked as specified in federal standard 123, marking for domestic shipment civil agencies. subpart 47.3 transportation in supply contracts', 26978:'47.30513 47.30511options in shipment anddelivery. although the clauses prescribed in subpart 43.2allowcertainchangestobemadeinregardtoshipmentanddelivery,it may be desirable to provide specifically for certain', 26979:'options in the solicitation. the government may reserve the right to a direct deliveries of all or part of the', 26980:'contract quantity to destinations or to consignees other than those specified in the solicitation and in the contract; b direct', 26981:'shipments in quantities that may require transportation rates different fromthose on whichthe contract price is based; and c direct shipments', 26982:'by a mode of transportation other than that stipulated in the solicitation and in the contract. 47.30512 delivery of governmentfurnished', 26983:'property. a 1 when government property is furnished to a contractor and transportation costs to the government are a factor', 26984:'in theevaluation of offers, the contractingofficer shall includein thesolicitation a clear description of the property, its location, and other information', 26985:'necessary for the preparation of cost estimates. 2 the contractingofficer shall insertin solicitations and contracts the clause at 52.24755, f.o.b.', 26986:'point for deliveryof governmentfurnished property, whengovernmentpropertyis tobe furnished under acontract andthe government will be responsible for transportation arrangements and costs.', 26987:'b the contractingofficer shall describe explosive and dangerous material accordingto 1 the regular freight classification and 2 the hazardous material', 26988:'description and hazard class as shown in 49 cfr172.101. 47.30513 transitarrangements. a transit privileges. 1 transitarrangements permit the stopping of', 26989:'a carload or truckload shipmentat a specific intermediate point en route to the finaldestinationforstorage, processing,or other purposes,as specified incarrier tariffsor', 26990:'ratetenders. a single through rate is charged from originto final destinationplus a transit or other related charge, rather than a', 26991:'more expensive combination of rates to and from the transit point. 2 the contractingofficer shall consider possible benefits available to', 26992:'the government through theuse ofexisting transit arrangements or through efforts to obtainadditional transit privileges from the carriers. solicitationsincorporating transit arrangements', 26993:'shall berestricted tof.o.b. origin offers, as f.o.b. destination offers can only quotefixed overall delivered prices at first destination. 3 i', 26994:'traffic management personnel shall furnish information and analyses of situations in which transit arrangements may be beneficial. thequantity to be', 26995:'awarded must be ofsufficient tonnageto ensure that carload/truckload shipments can bemadeby the contractor, and there should be reasonable certainty that', 26996:'shipments out of the transit point willbe requested in carload/truckload quantities. iithe contracting officer shall insert insolicitationsthe provisionat 52.24756, transit', 26997:'arrangements, when benefits mayaccrueto thegovernment because transit arrangements may apply. b transit credits. 1 inevaluations of f.o.b. origin offers for', 26998:'large quantitiesof suppliesthat contractors normally have in process orstorage atintermediate points,contracting officers shall make use ofcontractors’ earnedcommercial transit credits, which', 26999:'are recorded with the carriers. a transit credit represents the transportation costs for a recorded tonnage from theinitial point to', 27000:'an intermediate point. the remainingtransportation charges from theintermediate point to the government destination, because they are based on through rates,', 27001:'arefrequentlylower than the transportation chargesthat would apply for the same tonnage if the intermediate point were the initial origin point.', 27002:'2 if transit credits apply, the contractshallstate that the contractor shall ship the goods on prepaid commercialbills of lading, subject', 27003:'to reimbursement by the government. the contracting officer shall ensurethat this does not preclude a proper change in delivery terms', 27004:'under the changes clause. the shipments move for the account and at the risk of the government, as they become', 27005:'government property at origin. 3 the contractorshallshow the transportation and transit chargesas separate amounts on the invoice for each individualshipment.', 27006:'the amount to be reimbursed by the government shall not exceedthe amountquoted in the offer. 4 the contractingofficer shall insertin', 27007:'solicitations and contracts the clause at 52.24757, transportationtransit privilege credits,when suppliesare of such a nature, or whenitis the custom of', 27008:'thetrade,that offerors may have potential transit credits available and the government may reduce transportation costs through the use of transit', 27009:'credits. 47.30514 federal acquisition regulation 47.30514 mode of transportation. generally,solicitationsshallnot specify a particularmode oftransportation or a particularcarrier. if theuse ofparticular', 27010:'types of carriers isnecessary tomeet program requirements, the solicitation shall provide that only offers involving the specified types of carrierswill', 27011:'be considered. the contracting officer shall obtain all specifications for mode, route, delivery, etc.,from the transportation office. 47.30515 loading responsibilities', 27012:'of contractors. a 1 contractors are responsible for loading, blocking, and bracing carload shipments as specified in standards published by', 27013:'the association of american railroads. 2 the contractingofficer shall insertin solicitations and contracts the clause at 52.24758, loading, blocking, and', 27014:'bracing of freight car shipments, when supplies may be shipped in carload lots by rail. b if the nature of', 27015:'thesupplies orsafety,environmental, or transportability factors require specialmethodsforsecuring thesupplies onthe carrier’sequipment, or ifonlya special mode of transportation or type vehicle is', 27016:'appropriate, the contracting officershallinclude in solicitations detailed specificationsthat have been coordinated with the transportation office. 47.30516 shipping characteristics. a required', 27017:'shipping weights. the contractingofficer shall insert in solicitations and contracts the clauseat 52.24759, f.o.b. origincarload and truckload shipments, whenitis contemplated', 27018:'that they may result in f.o.b. origincontracts with shipmentsin carloads ortruckloads. this will facilitate realistic freight costevaluationsof offers and ensurethat', 27019:'contractors produce economical shipments of agreed size. b guaranteed shipping characteristics. 1 the contracting officershallinsert in solicitations and contracts, excluding', 27020:'those at or below the simplified acquisition threshold, the clause at 52.24760, guaranteed shipping characteristics, when shipping and other characteristics', 27021:'are required to evaluate offersas to transportationcosts. when all ofthe shipping characteristics listed in paragraph a of the clause at', 27022:'52.24760 are notrequired to evaluate offers as to transportation costs, thecontracting officer shall delete the characteristicsnot required from the clause.', 27023:'2 the award document shall show the shipping characteristics used in the evaluation. c minimum size of shipments. when volume', 27024:'ratesmay apply, thecontracting officer shall insert in solicitations and contracts the clause at 52.24761, f.o.b. originminimum size of shipments. d', 27025:'specific quantities unknown. 1 when total requirements and destinations to which shipments will be made are known,but the specific quantityto', 27026:'beshippedto each destination cannot bepredetermined, solicitations shall state that offers areto besubmitted on the basis of delivery f.o.b. origin and/or', 27027:'f.o.b. destination and that offers will be evaluated onboth bases. 2 the contractingofficer shall insertin solicitations and contracts the clause', 27028:'at 52.24762, specific quantities unknown, when total requirements and destinations to which shipments will be made are known, but the', 27029:'specific quantity to be shipped to each destination cannot be predetermined. this clause protects the interests of both the government', 27030:'and the contractor during the course of the performance of the contract. 47.30517 returnable cylinders. the contractingofficer shall insertthe clause', 27031:'at 52.24766, returnable cylinders, in a solicitation and contract whenever the contract involves the purchase of gas in contractorfurnished returnable', 27032:'cylinders and the contractor retains title to the cylinders. 47.306 transportation factors in the evaluation of offers. when evaluating offers,', 27033:'contracting officersshallconsider transportation and transportationrelated costs aswell as the offerors’ shippingand receiving facilities. 47.3061transportation cost determinations. when requesting the transportation', 27034:'officer to assist in evaluating offers,the contracting officershallgive the transportation officer all pertinent data, including the followinginformation: a a complete', 27035:'description of the commodity being acquired including packaging instructions. b planned date of award. c date of initial shipment. subpart', 27036:'47.3 transportation in supply contracts 47.3063 d total quantity to be shipped including weight and cubic content, when appropriate. e', 27037:'delivery schedule. f contract period. g possibleuse oftransit privileges, including stopoffs for partial loading orunloading, orboth. 47.3062 lowest overall transportation', 27038:'costs. a for the evaluation of offers,the transportation officershallgive to the contracting officer, and the contractingofficer shall use, the lowest', 27039:'availablefreight rates and related accessorial and incidental charges that 1 are in effect on, or become effective before,the expected date', 27040:'of the initial shipment; and 2 are on file or published on the date of the bid opening. b if', 27041:'rates orrelated charges become available after the bid opening orthe due dateof offers, they shall notbe usedin the evaluation unless', 27042:'they cover transportation for which no applicable rates or accessorial or incidental costs were in existence at thetime ofbid opening', 27043:'or due date of the offers. 47.3063 adequacy of loading and unloading facilities. a when determining thetransportation capabilitiesof an offeror,', 27044:'the contracting officer shall consider thetype and adequacy ofthe offeror’s shipping facilities, including the ability to consolidate and shipin carload', 27045:'or truckload lots. b the contractingofficer shall consider the type and adequacyof the consignee’s receiving facilities to avoid shipping schedules', 27046:'that cannot be properly accommodated. this page intentionally left blank. 47.318 subpart 47.4 air transportation by u.s.flag carriers 47.4031 subpart', 27047:'47.4 air transportation by u.s.flag carriers 47.401definitions. as used in this subpart air freight forwarder means an indirect air carrier', 27048:'that is responsible for the transportation of property from the point of receipt to the point of destination, and utilizes', 27049:'for the whole or any part of such transportation the services of a direct air carrier or its agent,or of', 27050:'anotherair freight forwarder. gateway airport abroad means the airport from which the traveler last embarks en route to the united', 27051:'states or at which the traveler first debarks incident to travel from the united states. gateway airport in the united', 27052:'states means the last u.s. airport from which thetraveler’s flight departsor the first u.s. airport at which thetraveler’s flight arrives.', 27053:'international air transportation means transportation by air between a place in the united states and a place outside the united', 27054:'states or between two places both of which are outside the united states. united states means the 50 states, the', 27055:'district of columbia, and outlying areas of the united states. u.s.flag air carrier means an air carrier holding a certificate', 27056:'undersection 401 of the federal aviation act of1958 49 u.s.c. 41102. 47.402 policy. federal employees and their dependents, consultants, contractors,', 27057:'grantees, and others must use u.s.flag air carriers for u.s. governmentfinancedinternational airtravel and transportation of their personaleffects or property, if', 27058:'available section5 of the international air transportation fair competitive practices act of1974 49 u.s.c. 40118 fly america act. 47.403guidelines for', 27059:'implementation of the fly america act. this section 47.403 is based on the guidelines for implementation of the fly america', 27060:'act case number b138942, issued by the comptroller general of the united states on march 31,1981. 47.4031availabilityand unavailability of u.s.flag', 27061:'air carrier service. a if a u.s.flag air carrier cannot provide the international air transportation needed or if the use', 27062:'of u.s.flag air carrier servicewould not accomplish an agency’s mission, foreignflag air carrier service may be deemed necessary. b u.s.flag', 27063:'air carrier service is considered available even though 1 comparable or a different kindof service can be provided at lesscost', 27064:'bya foreignflag air carrier; 2 foreignflag air carrier service ispreferred by, or is moreconvenient for, the agency ortraveler;or 3 service', 27065:'by a foreignflag air carrier can be paid for in excess foreign currency unless u.s.flag air carriers decline to accept', 27066:'excess or near excess foreign currencies for transportation payable only out of such monies. c except as provided in paragraph', 27067:'47.4031a, u.s.flag air carrier service shall be used for u.s. governmentfinanced commercial foreign air travel if service provided by u.s.flag', 27068:'air carriers is available. in determining availability of a u.s.flag air carrier, the followingscheduling principles shall befollowed unless their application', 27069:'would result in the lastor first leg of travel to or from the united states being performed by a foreignflag', 27070:'air carrier: 1 u.s.flag air carrier service available at point of origin shall beused to destination or,in theabsence of direct', 27071:'or through service, to the farthest interchange point on a usually traveled route. 2 when an origin or interchange point', 27072:'isnot served by a u.s.flag air carrier, foreignflagair carrier serviceshallbe used only to the nearest interchange point on a usually', 27073:'traveled route to connect with u.s.flag air carrier service. 3 when au.s.flag air carrier involuntarily reroutes thetravelervia a foreignflag air', 27074:'carrier, the foreignflag air carrier may be used notwithstanding the availability of alternative u.s.flag air carrier service. d for travel', 27075:'between a gateway airport in the united states and a gateway airport abroad, passenger service by u.s.flag air carrier shall', 27076:'not be considered available if 1 the gatewayairport abroad is thetraveler’s origin or destination airport and theuse ofu.s.flag air carrier', 27077:'service would extend the time in a travel status, including delay at origin and accelerated arrival at destination, by at', 27078:'least 24 hours more than travel by a foreignflag air carrier; or 2 the gateway airport abroad is an interchange', 27079:'point and the use of u.s.flag air carrier service would require the traveler to wait 6 hours or more to', 27080:'make connections at that point, or if delayed departure from, or accelerated arrival at, the 47.4032 federal acquisition regulation gateway', 27081:'airport in the united states would extend time in a travel status by at least 6 hours more than travel', 27082:'by a foreignflag air carrier. e for travel between two points outside the united states, the rules in paragraphs 47.4031a,', 27083:'b, and c shall be applicable, but passenger service by a u.s.flag air carrier shall not be considered to be', 27084:'reasonably available if 1 travel by a foreignflagair carrier would eliminatetwo ormore aircraft changes en route; 2 one of the', 27085:'two points abroad is the gateway airport en route to or from the united states and the use of a', 27086:'u.s.flag air carrierwould extend the timein a travel statusby atleast 6 hours more than travel by aforeignflag air carrier, including', 27087:'accelerated arrival at the over seas destination or delayed departure from the overseas origin, as well as delay at the', 27088:'gateway airport or other interchange point abroad; or 3 the travel is not part of the trip to or from', 27089:'the united states and the use of a u.s.flag air carrier would extend the time in a travel status by', 27090:'at least 6 hours more than travel by a foreignflag air carrier including delay at origin, delay en route, and', 27091:'accelerated arrival at destination. f for all shortdistance travel under either paragraph d or paragraph e of 47.4031, u.s. air', 27092:'carrier service shall not be considered available when the elapsed travel time on a scheduled flight from origin to destination', 27093:'airport by foreignflag air carrier is 3 hours or less and service by a u.s.flag air carrier would involve twice', 27094:'such travel time. 47.4032airtransport agreements betweenthe united states andforeign governments. nothing in the guidelines of the comptroller general see 47.403', 27095:'shall preclude, and no penalty shall attend, the use of a foreignflag air carrier that provides transportation under an air', 27096:'transport agreement between the united states and a foreign government, the terms of which are consistent with the international aviation', 27097:'policy goals at 49 u.s.c. 1502b and provide reciprocal rights and benefits. 47.4033disallowanceof expenditures. a agencies shall disallow expenditures for', 27098:'u.s. governmentfinanced commercial international air transportation on foreignflag air carriers unless there is attached to the appropriate voucher a memorandum', 27099:'adequately explaining why service by u.s.flag air carriers was not available, or why it was necessary to use foreignflag air', 27100:'carriers. b when the travel is by indirect route or the traveler otherwise fails to use available u.s.flag air carrier', 27101:'service, the amount to be disallowed against the traveler isbased on theloss of revenues suffered by u.s.flagair carriers asdetermined under', 27102:'the following formula, which is prescribed and more fully explained in 56 comp. gen. 209 1977: c thejustification requirement is', 27103:'satisfied bythe contractor’s use of a statementsimilar to theonecontained inthe clause at 52.24763, preference for u.s.flag air carriers. see 47.405.', 27104:'subpart 47.4 air transportation by u.s.flag carriers 47.405 47.404 air freight forwarders. a agencies may use air freight forwarders that', 27105:'are engaged in international air transportation 49 u.s.c. 1301c for u.s. governmentfinancedmovements of property. the rule ondisallowance of expenditures in', 27106:'47.4033a applies also to the air carriers used by these international air freight forwarders. b agency personnel shall inform international', 27107:'air freight forwarders that to facilitate prompt payments of their bills, they shall submit with their bills 1 a copy', 27108:'of the airway bill or manifest showing the air carriers used; and 2 justification for the use of foreignflag air', 27109:'carriers similar to the one shown in the clause at 52.24763, preference for u.s.flag air carriers. 47.405contract clause. the contractingofficer', 27110:'shall insertthe clause at 52.24763, preference for u.s.flag air carriers, in solicitations and contracts whenever it is possible that u.s.', 27111:'governmentfinanced international air transportation of personnel and their personal effects or property will occur in the performance of the contract.', 27112:'this clause does not apply to contracts awarded using the simplified acquisition procedures in part 13 or contracts for commercial', 27113:'products see part 12. this page intentionally left blank. 47.44 subpart 47.5 ocean transportation by u.s.flag vessels 47.502 subpart 47.5', 27114:'ocean transportation by u.s.flag vessels 47.500scope of subpart. this subpart prescribes policy and procedures for giving preference to u.s.flag vessels', 27115:'when transportation of supplies by ocean vessel is required. this subpart does not apply to the department of defense dod.', 27116:'policy and procedures applicable to dodappear in dfars subpart 247.5. 47.501definitions. as used in this subpart dry bulk carrier means', 27117:'a vessel used primarily for the carriage of shipload lots of homogeneous unmarked nonliquid cargoes such as grain, coal, cement,', 27118:'and lumber. dry cargo liner means a vessel usedforthe carriage of heterogeneous marked cargoes in parcellots. however, any cargo may', 27119:'be carriedin these vessels, including part cargoesof dry bulk items or,when carriedin deep tanks,bulkliquids suchas petroleum and vegetable oils. foreignflag', 27120:'vessel means any vessel of foreign registry including vessels owned by u.s. citizens but registered in a nation other than', 27121:'the united states. government vessel means a vessel owned by the u.s. government and operated directly by the government or', 27122:'for thegovernment by an agent orcontractor, including a privately owned u.s.flag vessel under bareboat charter to the government. privately owned', 27123:'u.s.flag commercial vessel means a vessel 1 registered and operated under the laws of the united states, 2 used in', 27124:'commercial trade of the united states, 3 owned and operated by u.s. citizens, including a vessel under voyage or time', 27125:'charter to the government, and 4 a governmentowned vessel under bareboat charter to, andoperated by,u.s. citizens. tanker means avessel used', 27126:'primarily for the carriage of bulk liquid cargoes such asliquid petroleum products,vegetable oils, and molasses. u.s.flag vessel when used independently', 27127:'means either a government vessel or a privately owned u.s.flag commercial vessel. 47.502 policy. a the policy of the united', 27128:'states regarding the use of u.s.flag vessels is stated in the following acts: 1 the cargo preference act of 190410', 27129:'u.s.c. 2631, which requires the department of defense to use only u.s.flag vessels for ocean transportation of supplies for the', 27130:'army, navy, air force, or marine corpsunlessthose vessels are not available at fair and reasonable rates. 2 the merchant marine', 27131:'act of 1936 46 u.s.c. 1101, which declares it is the policy of the united states to foster the development', 27132:'and encourage the maintenance of its merchant marine. 3 the cargo preference act of 195446 u.s.c. 1241b, which is section', 27133:'901b of the merchant marine act. under this act, government agencies acquiring, either within or outside the united states, supplies', 27134:'that may require ocean transportation shall ensure that at least 50 percent of the gross tonnage of these supplies computed', 27135:'separately for dry bulk carriers, dry cargo liners, and tankers is transported on privately ownedu.s.flag commercial vessels tothe extent that', 27136:'such vessels are available at rates that are fair and reasonable for u.s.flag commercial vessels. this applies when the supplies', 27137:'are i acquired for the account of the united states; ii furnished to, or for the account of, a foreign', 27138:'nation without provision for reimbursement; iii furnished for the account of a foreign nation in connection with which the united', 27139:'states advances funds or credits, or guarantees the convertibility of foreign currencies; or iv acquired with advance of funds, loans,', 27140:'or guaranties made by or on behalf of the united states. b additional policies providing preference for the use of', 27141:'u.s.flag vessels are contained in 1 46 u.s.c. 1241aforofficial business travel byofficers and employees of the united states and for', 27142:'the transportation oftheir personal effects; and 2 46 u.s.c. 1241e for the transportation of motor vehicles owned by government personnel', 27143:'when transportation is at government expense or otherwise authorized by law. federal acquisition regulation c theprovisionsof the cargo preference act', 27144:'of 1954may be temporarily waivedwhen the congress, the president, or the secretary of defense declares that an emergency justifying a', 27145:'temporary waiver exists and so notifies the appropriate agency or agencies. 47.503 applicability. a except as stated in paragraph b', 27146:'of this section and in 47.504, thecargo preference actsof1904 and1954 described in 47.502aapply to the following cargoes: 1 supplies owned', 27147:'by the government and in the possession of i the government; ii a contractor; or iii a subcontractor atanytier. 2', 27148:'supplies for use of the government that are contracted for and require subsequent delivery to a government activity but are', 27149:'not owned by the government at the time of shipment. 3 supplies not owned by the government at the time', 27150:'of shipment that are to be transported for distribution to foreign assistance programs, but only if these supplies are not', 27151:'acquired or contracted for with local currency funds see 47.504b. b governmentowned supplies to be shipped commercially that are 1', 27152:'in the possession of a department, a contractor,or asubcontractorat anytier and 2 for use of military departments shall be transported', 27153:'exclusively in privately owned u.s.flag commercial vessels if such vessels are available at rates that are fair and reasonable for', 27154:'u.s.flag commercial vessels. c the 50percent requirement shall not prevent the use of privately owned u.s.flag commercial vessels for transportation', 27155:'ofup to 100 percent of the cargo subjectto thecargo preference act of1954. 47.504exceptions. the policy and procedures in this subpart', 27156:'do not apply to the following: a shipments aboard vessels as required orauthorized by law or treaty. b ocean transportation', 27157:'between foreign countries of supplies purchased with foreign currencies made available, or derived from funds that are made available, under', 27158:'the foreign assistance act of1961 22 u.s.c. 2353. c shipments of classified supplies when the classification prohibits the use of', 27159:'nongovernment vessels. d subcontracts for the acquisition of commercial products, including commercial components, or commercial services see 12.504a1anda11. this exception', 27160:'does not apply to 1 grantsinaid shipments, such as agricultural and foodaid shipments; 2 shipments covered under 46 u.s.c. app.12411,', 27161:'such as those generated by exportimport bank loans or guarantees; 3 subcontracts under i government contracts or agreements for ocean', 27162:'transportation services; or ii construction contracts; or 4 shipments of commercial products that are iitems the contractor is reselling or', 27163:'distributing to the government without adding value seefar 12.501b. generally,the contractor does not add value to the items when it', 27164:'subcontracts items for f.o.b. destination shipment; or ii shipped in direct support of u.s. military a contingency operations; b exercises;', 27165:'or c forces deployed in connectionwith united nationsor north atlantic treaty organization humanitarian or peacekeeping operations. 47.505construction contracts. a except', 27166:'as stated in paragraph b of this section, construction contractors, including subcontractors and suppliers, engaged in overseas work shall comply', 27167:'with the policies and regulations in this subpart. b these requirements shall not apply to military assistance, foreign aid, or', 27168:'similar projects under the auspices of the u.s. government when the recipient nation furnishes, or paysfor, at least 50 percent', 27169:'of the transportation, in which event foreign flag vessels may be used for a portion not to exceed 50 percent', 27170:'of the gross tonnage for the project. subpart 47.5 ocean transportation by u.s.flag vessels 47.507 47.506 procedures. a thecontracting officer', 27171:'shall obtain assistancefrom the transportation activity see 47.105 in developing appropriate shipping instructions and delivery terms for inclusion in solicitations', 27172:'and contracts that may involve ocean transportation of supplies subject to therequirements of the cargopreference act of1954 see 47.502a3. b', 27173:'when the contractornotifies thecontracting officer thata privately owned u.s.flag commercialvessel is not available, thecontracting officer shall seek assistance from thetransportation', 27174:'activity. c for purposes of determining the availability of privately owned u.s.flag commercial vessels at fair and reasonable rates, rates', 27175:'filed and published in accordance with the requirements of the federal maritime commission may be accepted as fair andreasonable. when', 27176:'applicablerates for charter cargoes are notin published tariffs, a determinationas to whether the rates are fair and reasonable shall be', 27177:'obtained from the maritime administration. d the maritime administration has issued regulations 46 cfr381 that require agencies to submit reports', 27178:'regarding ocean shipments. contracting officers shall follow agencyregulations whenpreparing, orfurnishing information for, these reports. 47.507contract clauses. a 1 insert the', 27179:'clause at 52.24764,preferenceforprivatelyownedu.s.flagcommercialvessels,insolicitationsand contracts that may involve oceantransportation of supplies subject to thecargo preference act of1954. for application of thecargo', 27180:'preference act of1954, see 47.502a3, 47.503a, and 47.504. 2 if an applicable statute requires, or if it has been determined', 27181:'under agency procedures, that the supplies to be furnished under the contracts must be transported exclusively in privately owned u.s.flag', 27182:'commercial vessels see 47.502a 1 and 47.503b, use the clause with its alternatei. 3 except for contracts or agreements for', 27183:'ocean transportation services or construction contracts, use the clause with its alternate ii if any of the supplies to be', 27184:'transported are commercial products that are shipped in direct support of u.s. military i contingency operations; ii exercises; or iii', 27185:'forcesdeployedin connection with unitednations ornorth atlantictreaty organizationhumanitarianor peacekeeping operations. b the contractingofficer may insert in solicitations and contracts, under agencyprocedures,additional', 27186:'appropriate clauses concerning the vessels to be used. this page intentionally left blank. 47.54 part 48 value engineering sec. 48.000', 27187:'scope of part. subpart 48.2 contract clauses 48.001 definitions. 48.201 clauses for supply or service contracts. 48.202 clause for construction', 27188:'contracts. subpart 48.1 policies and procedures 48.101 general. 48.102 policies. 48.103 processing value engineering change proposals. 48.104 sharing arrangements. 48.1041', 27189:'determining sharing period. 48.1042 sharing acquisition savings. 48.1043 sharing collateral savings. 48.1044 sharing alternativenocost settlement method. 48.105 relationship to other', 27190:'incentives. this page intentionally left blank. 48.000scope of part. this part prescribes policies and procedures for using and administering value', 27191:'engineering techniques in contracts. 48.001definitions. as used in this part acquisition savings means savings resulting from the application of a', 27192:'value engineering change proposal vecp to contracts awarded by the same contracting office orits successor for essentially thesame unit. acquisition', 27193:'savingsinclude 1 instant contract savings, that are the net cost reductions on the contract under which the vecp is submitted', 27194:'and accepted, and that are equal tothe instant unit cost reduction multiplied by the number of instant contract units affected', 27195:'by the vecp, less thecontractor’sallowable development and implementation costs; 2 concurrent contract savings, that are net reductions in the prices', 27196:'of other contracts that are definitized and ongoing at the time the vecp is accepted; and 3 future contract savings,', 27197:'that are the product of the future unit cost reduction multiplied by the number of future contract units in the', 27198:'sharing base. on an instant contract, future contract savings include savings on increases in quantities after vecp acceptance that are', 27199:'due to contract modifications, exercise of options, additional orders, and funding of subsequent year requirements on a multiyear contract. collateral', 27200:'costs means agencycosts of operation, maintenance, logistic support, or governmentfurnished property. collateral savings means those measurable net reductions resulting from', 27201:'avecp in the agency’s overall projected collateral costs, exclusive of acquisition savings, whether or not the acquisition cost changes. contracting', 27202:'office includes any contractingoffice thatthe acquisition is transferred to, such as another branch of the agency or another agency’soffice thatis', 27203:'performing a jointacquisition action. contractor’s development and implementation costs means those costs the contractor incurs on a vecp specifically in', 27204:'developing, testing, preparing, and submitting the vecp, as well as those costs the contractor incurs to make thecontractual changes required', 27205:'bygovernmentacceptance ofa vecp. future unit cost reduction means theinstant unitcostreduction adjusted as the contracting officer considers necessary for projected learning', 27206:'or changes in quantity during the sharing period. it is calculated at the time the vecp is accepted and applies', 27207:'either 1 throughout the sharing period, unless the contracting officer decidesthat recalculationis necessary because conditions are significantly different from those', 27208:'previously anticipated,or 2 to the calculation of a lumpsumpayment, thatcannot later be revised. government costs means those agencycosts that result', 27209:'directly from developing and implementing thevecp, such as any net increases in the cost of testing, operations, maintenance, and logistics', 27210:'support. the term does not include the normal administrative costs of processing the vecp or any increase in instant contract', 27211:'cost or price resulting from negative instant contract savings, except that for use in 52.2483, see the definition at 52.2483b.', 27212:'instant contract means the contract under which the vecp is submitted. it does not include increases in quantities after acceptance', 27213:'of the vecp that are due to contract modifications, exercise of options, or additional orders. if the contract is a', 27214:'multiyear contract, the term does not include quantities funded after vecp acceptance. in a fixedprice contract with prospective price redetermination,', 27215:'the term refers to the period for which firm prices have been established. instant unit cost reduction means the amount', 27216:'of the decrease in unit cost of performance without deducting any contractor’s development or implementation costs resultingfrom usingthe vecp on', 27217:'the instant contract. in service contracts, the instant unit cost reduction is normally equal to the number of hours per', 27218:'lineitem task saved by using the vecp on the instant contract, multiplied by the appropriate contract labor rate. negative instant', 27219:'contract savings means the increase in the instant contract cost or price when the acceptance of a vecp results in', 27220:'an excess ofthe contractor’s allowable development and implementation costs overthe product ofthe instant unit cost reduction multiplied by the number', 27221:'of instant contract units affected. net acquisition savings means total acquisition savings, including instant, concurrent, and future contract savings, less', 27222:'government costs. sharing base means the numberof affected end items on contractsof the contractingoffice accepting the vecp. sharing period means', 27223:'the period beginning with acceptance of the first unit incorporating the vecp and ending at a calendar date or eventdetermined', 27224:'by the contracting officer for each vecp. unit means the itemor task to which the contracting officerand the contractor agree', 27225:'the vecpapplies. federal acquisition regulation value engineering proposal means, in connection with an ae contract, a change proposal developed by', 27226:'employees of the federal government or contractor value engineering personnel under contract to an agency to provide value engineering services', 27227:'for the contract or program. subpart 48.1 policies and procedures 48.101general. a value engineeringis the formal techniqueby which contractors may', 27228:'1 voluntarily suggest methods for performing more economically and share in any resulting savings or 2be required to establish a', 27229:'program to identify and submit to thegovernment methods for performing more economically. value engineering attempts to eliminate,without impairing essential functions', 27230:'or characteristics, anything that increases acquisition, operation, or support costs. b there are two value engineering approaches: 1 the first', 27231:'is an incentive approach in which contractor participation is voluntary and the contractor uses its own resources to develop and', 27232:'submit any value engineering changeproposalsvecp’s. the contract provides for sharing of savings and for payment ofthe contractor’s allowable development and', 27233:'implementation costs only if a vecp is accepted. this voluntary approach should not in itself increase costs to the government.', 27234:'2 the second approach is a mandatory program in which the government requires and pays for a specific value engineering', 27235:'program effort. the contractormust perform value engineering ofthe scope andlevel of effortrequired by thegovernment’s program plan andincluded as a separately', 27236:'priced itemof work inthe contract schedule. no value engineering sharing is permitted in architect engineer contracts. all other contracts with', 27237:'a program clause share in savings on accepted vecp’s, but at a lower percentagerate than under the voluntary approach. the', 27238:'objective of this valueengineering program requirement is to ensure that the contractor’s value engineering effort is appliedto areas of thecontract', 27239:'that offer opportunities for considerable savings consistent with the functional requirements of the end item of the contract. 48.102policies. a', 27240:'as required by 41 u.s.c. 1711, agencies shall establish and maintain costeffectivevalue engineeringprocedures and processes. agencies shall provide contractors a', 27241:'substantial financial incentive to develop and submit vecp’s. contracting activities will include value engineering provisions in appropriatesupply, service, architectengineer and', 27242:'construction contracts as prescribed by 48.201 and 48.202 except where exemptions are granted on a casebycase basis, or for specific', 27243:'classes of contracts, by the agency head. b agencies shall 1 establish guidelines for processing vecp’s, 2 process vecp’sobjectively and', 27244:'expeditiously, and 3 provide contractors a fair share ofthe savings on accepted vecp’s. c agencies shall consider requiring incorporation of', 27245:'value engineering clauses in appropriate subcontracts. d 1 agencies other than the department of defense shall use the value engineering', 27246:'program requirement clause 52.2481, alternates i or ii in initial production contracts for major system programs see definition of major', 27247:'system in 34.001 and for contracts for major systems research and development except where the contracting officer determines and documents', 27248:'the file to reflect that such use is not appropriate. 2 in department of defense contracts, the ve program requirement', 27249:'clause 52.2481, alternates i or ii, shall be placed in initial production solicitations and contracts first and second production buys', 27250:'for major system acquisition programs as defined in dod directive 5000.1, except as specified in subdivisions d2i and ii of', 27251:'this section. a program requirement clause may be included in initial production contracts for less than major systems acquisition programs', 27252:'if there is a potential for savings. the contracting officer is not required to includea program requirement clause in initialproduction', 27253:'contracts iwhere, inthe judgment of the contracting officer, theprimecontractor has demonstrated an effective veprogram during either earlier program phases, or', 27254:'during other recent comparable production contracts. ii which are awarded on the basis of competition. e value engineeringincentive payments donot', 27255:'constitute profit or fee within the limitationsimposedby 10 u.s.c. 3322b and 41 u.s.c.3905 see 15.4044c4i. f generally, profitor fee on', 27256:'the instantcontract should not be adjusted downward as a resultof acceptance of a vecp. profit or fee shall be excluded', 27257:'when calculating instant or future contract savings. subpart 48.1 policies and procedures 48.1041 g the contractingofficer determines the sharing periods', 27258:'and sharing rates on a casebycase basisusing the guidelines in 48.1041 and 48.1042, respectively. inestablishing a sharing period and sharing', 27259:'rate, the contractingofficer must consider the following, as appropriate, and must insert supporting rationale in the contract file: 1 extent', 27260:'of the change. 2 complexity of the change. 3 development risk e.g., contractor’s financial risk. 4 development cost. 5 performance', 27261:'and/or reliability impact. 6 production period remaining at the time of vecp acceptance. 7 number of units affected. h contracts', 27262:'for architectengineer services must require a mandatory value engineering program to reduce total ownership cost in accordance with 48.101b2. however,', 27263:'there must be nosharingof value engineering savings in contracts for architectengineer services. iagencies shall establish procedures for funding and payment', 27264:'of the contractor’sshare of collateralsavings and future contract savings. 48.103 processingvalue engineering change proposals. a instructions to the contractor for', 27265:'preparing a vecp and submitting it to the government are included in paragraphs c and d of the value engineering', 27266:'clauses prescribed in subpart 48.2.uponreceivingavecp,thecontractingofficerorother designated officialshallpromptly process and objectively evaluate the vecp in accordance withagency procedures and shall document', 27267:'the contractfile with therationaleforaccepting or rejecting the vecp. b the contractingofficer is responsible for accepting or rejecting thevecp within 45', 27268:'days from itsreceipt by the government. if the government will need more time to evaluate the vecp, the contracting officer', 27269:'shall notify the contractor promptly in writing, giving the reasons and the anticipated decision date. the contractor may withdraw, in', 27270:'whole or in part, any vecp not accepted by the government within the period specified in the vecp. any vecp', 27271:'may be approved, in whole or in part, bya contract modification incorporating the vecp. until the effective date of the', 27272:'contract modification, the contractor shall perform in accordance with the existing contract. if the government accepts thevecp, but properly rejects', 27273:'units subsequently delivered or does not receive units on which a savings share was paid, the contractor shall reimburse the', 27274:'government for the proportionate shareof these payments. if the vecp is notaccepted, the contracting officer shall provide the contractor with', 27275:'prompt written notification, explaining the reasons for rejection. c the following government decisions are unilateral decisions made solely at the', 27276:'discretion of the government: 1 the decisionto accept or reject a vecp. 2 the determination of collateral costs or collateral', 27277:'savings. 3 the decision as to which of the sharing rates applies when alternateii of the clause at 52.2481, value', 27278:'engineering, is used. 4 the contractingofficer’s determinationof the durationof the sharing period and thecontractor’s sharing rate. 48.104sharing arrangements. 48.1041 determining', 27279:'sharing period. a contracting officers mustdetermine discrete sharing periods for each vecp. ifmorethan one vecp is incorporated into a contract,', 27280:'the sharing period for each vecp need not be identical. b the sharing period begins with acceptance of the first', 27281:'unit incorporating thevecp. except as provided inparagraph c of this subsection, the end of the sharing period is a specific', 27282:'calendar date that is the later of 1 36 to 60 consecutive months set at the discretion ofthe contracting officer', 27283:'for each vecp after the first unit affected bythe vecp is accepted; or 2 the last scheduled delivery date of', 27284:'an item affected by the vecp under the instant contract deliveryschedulein effect atthe time the vecp is accepted. c for', 27285:'engineeringdevelopment contracts and contracts containing lowrateinitialproduction or early production units, the end of the sharing period is based not on', 27286:'a calendar date, but on acceptance of a specified quantity of future contract units. this quantityis the number of units', 27287:'affected by thevecp that are scheduled tobe deliveredover a period of between 36 and 60 consecutive months set at thediscretionof', 27288:'the contractingofficer for each vecp that spans the highest planned production, based on planning and programming or production documentation at', 27289:'the time the vecp is accepted. the 48.1042 federal acquisition regulation specified quantity begins with thefirstfuture contract unit affectedby the', 27290:'vecp and continues over consecutivedeliveries until the sharing period ends at acceptance of the last of the specified quantity of', 27291:'units. d for contracts other than those in paragraph c of this subsection for items requiring a prolonged production schedule', 27292:'e.g., ship construction, major system acquisition, the end of the sharing period is determined according to paragraph b of this', 27293:'subsection. agencies may prescribe sharing of future contract savings on all future contract units to be delivered under contracts awarded', 27294:'within the sharing period for essentially the same item, even if the scheduled delivery date is outside the sharing period.', 27295:'48.1042 sharing acquisition savings. a supply or service contracts. 1 the sharing base for acquisition savings is the number of', 27296:'affected enditemson contracts ofthe contracting office accepting the vecp. thesharingrates government/contractorfornet acquisition savings for supplies and services are based on', 27297:'the type of contract, the value engineering clause or alternate used, and the type of savings, as follows: contract type', 27298:'sharing agreement concurrent and future contract rate fixedprice includes fixedpriceawardfee; excludes other 75/25 fixedprice incentive contracts incentive fixedprice or cost', 27299:'other than award fee 75/25 costreimbursement includes costplusawardfee; excludes 85/15 other costtype incentive contracts incentive voluntary program requirement mandatory instant', 27300:'contract rate concurrent and future contract rate instant contract rate 50/50 50/50 75/25 50/50 75/25 75/25 85/15 thecontracting officermay increase', 27301:'the contractor’s sharing rateto as high as 75percent foreach vecp. see 48.102g 1 through 7. same sharing arrangementasthecontract’s profit or', 27302:'fee adjustment formula. the contractingofficer mayincreasethecontractor’s sharing rate toas high as 50 percent for each vecp. see 48.102g 1 through', 27303:'7. government/contractor shares of net acquisition savings figures in percent 2 acquisition savings may be realized on the instant contract,', 27304:'concurrent contracts, and future contracts. the contractor is entitled to a percentage share see paragraph a1 of any net acquisition', 27305:'savings. net acquisition savings result when the total of acquisition savings becomes greater than the total of government costs and', 27306:'any negative instant contract savings. this may occur on the instant contract or it may not occur until reductions have', 27307:'been negotiated on concurrent contracts or until future contract savings are calculated, either through lumpsum payment or as each future', 27308:'contract is awarded. iwhen the instant contract isnot an incentive contract, the contractor’s share of net acquisitionsavings is calculated and', 27309:'paid eachtime such savings are realized. thismay occuronce, several times, or,in rare cases,not atall. ii when the instant contract is', 27310:'an incentive contract, the contractor shares in instant contract savings through the contract’sincentive structure. incalculating acquisition savings underincentive contracts,the contracting', 27311:'officer shall add any negative instant contractsavings to the target cost or to the target price and ceilingprice and then', 27312:'offset these negative instant contract savings and any government costs against concurrent and future contract savings. 3 the contractorsharesin thesavings', 27313:'on all affectedunits scheduled for delivery during thesharingperiod. the contractor is responsible for maintaining, for 3 years after final payment', 27314:'on the contract under which the vecp was accepted, records adequateto identify the first delivered unit incorporatingthe applicable vecp. 4', 27315:'contractor shares of savings are paid through the contract under which the vecp was accepted. on incentive contracts, the contractor’sshare', 27316:'of concurrent and future contract savings andof collateral savings shall be paid as a separate firmfixedprice line item on the', 27317:'instant contract. 5 within 3 months afterconcurrent contracts have been modified to reflect price reductions attributableto use of the vecp,', 27318:'the contracting officer shall modify the instant contract to provide the contractor’s shareof savings. subpart 48.1 policies and procedures 48.105', 27319:'6 the contractor’s share of future contractsavings may be paid as subsequent contracts are awardedor in a lumpsum paymentat the', 27320:'timethe vecp is accepted. the lumpsummethod may be used only if the contractingofficer hasestablished that this is thebestway to proceed', 27321:'and thecontractor agrees. the contractingofficer ordinarily shall make calculations as future contracts are awarded and, within 3 months afteraward, modify', 27322:'theinstant contract to provide thecontractor’s share of the savings. for future contract savings calculated under the optional lumpsum method, the', 27323:'sharing base is an estimate of the number ofitems that the contracting officer will purchase for delivery during thesharingperiod. in', 27324:'deciding whether or not to use the more convenient lumpsum methodforan individual vecp, the contractingofficer shall consider i the accuracy', 27325:'with which the number of items to be delivered during the sharing period can be estimated and the probability of', 27326:'actual production of the projected quantity; ii the availability of funds for a lumpsum payment; and iii the administrative expense', 27327:'of amending the instant contract as future contracts are awarded. b construction contracts. sharing on construction contracts applies only to', 27328:'savings on the instant contract and to collateral savings. the government’s share ofsavings isdetermined by subtracting government costs from instantcontract', 27329:'savings and multiplying the result by 145 percent for fixedprice contracts or 275 percent for costreimbursement contracts. valueengineering sharing does', 27330:'not apply toincentive construction contracts. 48.1043 sharing collateral savings. a thegovernment sharescollateral savingswith the contractor,unlessthe head of the contracting activity', 27331:'has determined that the cost of calculating and tracking collateral savings will exceed the benefits to be derived see 48.201e.', 27332:'b the contractor’s share of collateral savings may range from20 to 100 percent of the estimated savings tobe realized during', 27333:'a typical year of use but must not exceed the greater of 1 the contract’s firmfixedprice, target price, target cost,', 27334:'or estimated cost,at the timethe vecp is accepted; or 2 $100,000. c thecontracting officer must determine the sharing rate for', 27335:'eachvecp. d in determining collateral savings, the contracting officer must consider any degradation of performance, service life, or capability. 48.1044', 27336:'sharing alternativenocost settlement method. in selecting an appropriate mechanism for incorporatinga vecp into a contract, the contractingofficer shall analyze thedifferentapproaches', 27337:'available todetermine which onewouldbe inthe government’s best interest. contracting officers should balance the administrative costs of negotiating a settlement against', 27338:'the anticipated savings. a nocost settlement may beused if,in thecontracting officer’s judgment, reliance on other vecp approaches likely would not', 27339:'be more costeffective, and the nocost settlement would provide adequate consideration to the government. under this method of settlement, thecontractor', 27340:'would keep all of thesavings on the instant contract, and all savings on itsconcurrent contracts only. the government would keep', 27341:'all savings resulting from concurrent contracts placed with other sources, savings from all future contracts, and all collateral savings. use', 27342:'of this method must be by mutual agreement of both parties for individual vecps. 48.105relationship to other incentives. contractors should', 27343:'be offeredthe fullest possiblerange ofmotivation, yet the benefits ofan accepted vecp should not be rewarded bothas value engineering sharesand under', 27344:'performance,designtocost, or similar incentives ofthe contract. to that end,when performance, designtocost,or similar targets are setand incentivized, thetargets of such incentives', 27345:'affected by the vecp are not to be adjusted becauseof the acceptance of the vecp. onlythose benefits of an accepted', 27346:'vecpnot rewardable under other incentives are rewarded under a value engineering clause. this page intentionally left blank. 48.16 subpart 48.2', 27347:'contract clauses 48.201 subpart 48.2 contract clauses 48.201clauses for supply or service contracts. a general. the contracting officershallinsert a value', 27348:'engineering clause in solicitations and contractswhen the contract amount is expected to exceed the simplified acquisition threshold, except as specified', 27349:'in paragraphs a1 through 5 and in paragraph f of this section. a value engineeringclause maybe included in contracts oflesser', 27350:'value ifthe contracting officer seesa potential for significantsavings. unlessthe chief of the contracting officeauthorizesits inclusion, the contracting officer shall notinclude', 27351:'a value engineering clause in solicitations and contracts 1 for research and development other than fullscale development; 2 for engineeringservices', 27352:'from notforprofit or nonprofit organizations; 3 for personal services see subpart 37.1; 4 providing for product or component improvement, unless', 27353:'the value engineering incentive application is restricted to areas not covered by provisions for product or component improvement; 5 for', 27354:'commercial products see part 11 that do not involve packaging specifications or other special requirements or specifications; or 6 when', 27355:'the agency head has exempted the contract or a class of contracts from the requirements of this part 48. b', 27356:'value engineering incentive. to provide a value engineering incentive,the contracting officer shall insert the clause at 52.2481, valueengineering, in solicitations', 27357:'and contracts except as provided in paragrapha of this section but see paragraph e1 of this section. c value engineeringprogramrequirement.', 27358:'1 if amandatory valueengineering effortis appropriate i.e., if the contracting officerconsiders that substantial savings tothe government may result from asustained', 27359:'value engineering effort of a specified level, the contracting officer shall use the clause with its alternatei but see paragraph', 27360:'e2 of this section. 2 the value engineering program requirement may be specified by the government in the solicitationor, in', 27361:'the case of negotiated contracting, proposed by the contractor as partof its offer and included as a subject for negotiation.', 27362:'the program requirement shall be shown as a separately priced line item in the contract schedule. d valueengineering incentive and', 27363:'program requirement. 1 if both a value engineering incentive and a mandatory program requirement areappropriate, the contracting officer shall use', 27364:'theclause with itsalternateii but seeparagraph e3 of this section. 2 the contract shall restrict the value engineering program requirement to', 27365:'welldefined areas of performance designated by line item in the contract schedule. alternateii applies a value engineering program to the', 27366:'specified areas and a value engineering incentive to the remaining areas of the contract. e collateral savings computation not costeffective.', 27367:'if the head of the contracting activity determines for a contract or class of contracts that the cost of computing', 27368:'and tracking collateral savings will exceed the benefits to be derived, the contracting officershalluse the clausewith its 1 alternateiii if', 27369:'a value engineering incentive is involved; 2 alternateiii and alternatei if a value engineering program requirement is involved; or 3', 27370:'alternateiii and alternateii if both an incentive and a program requirement are involved. f architectengineer contracts. thecontracting officer shall insert', 27371:'the clause at 52.2482, valueengineering architect engineer, insolicitationsandcontracts whenever the government requires and paysfora specific value engineering effort in architectengineer', 27372:'contracts. the clause at 52.2481, value engineering, shall notbe usedin solicitations and contracts for architectengineer services. g engineeringdevelopment solicitations and', 27373:'contracts. for engineeringdevelopment solicitations and contracts, and solicitations and contracts containing lowrateinitialproduction or earlyproduction units, the contractingofficer must modify the', 27374:'clause at 52.2481, value engineering, by 1 revising paragraph i3i of the clause by substituting a number equal to the', 27375:'quantity required to be delivered over a period ofbetween 36 and 60 consecutive months set at the discretion ofthe contracting', 27376:'officerforeach vecp that spans the highest planned production, based on planning and programming or production documentation at the time the', 27377:'vecp is accepted; for the number of future contract units scheduled for delivery during the sharing period; and 2 revising', 27378:'the first sentence under paragraph 3 of the definition of acquisition savings by substituting a number equal to the quantity', 27379:'to be delivered over a period of between 36 and 60 consecutive months set at the discretion of the contracting', 27380:'officerforeach vecp that spans the highestplanned production,based on planning and programmingor production documentation at the time the vecp is accepted.', 27381:'for the number of future contract units in the sharing base. federal acquisition regulation h extended production period solicitations and', 27382:'contracts. in solicitations and contracts for items requiring an extended period for production e.g., ship construction, major system acquisition, if', 27383:'agency procedures prescribe sharing of future contract savings on all units to be delivered under contracts awarded during the sharing', 27384:'period see 48.1041c, the contracting officermust modify the clause at 52.2481, value engineering, by revising paragraph i3i of the clause', 27385:'and the first sentence under paragraph 3 of the definition of acquisition savings by substituting under contracts awarded during the', 27386:'sharing period for during the sharing period. 48.202clause for construction contracts. the contractingofficer shall insertthe clause at 52.2483, value engineeringconstruction,', 27387:'in construction solicitations and contracts when the contract amount is estimated to exceed the simplified acquisition threshold, unless an incentive', 27388:'contract is contemplated. thecontracting officer may include the clause in contracts of lesservalue if the contracting officer seesa potential for', 27389:'significantsavings. the contractingofficer shall not include the clause inincentivetypeconstruction contracts. if the head of the contracting activity determines that the', 27390:'cost of computing and tracking collateral savings for a contract will exceed thebenefits to be derived, the contracting officer shall', 27391:'use the clause with its alternatei. part 49 termination of contracts sec. 49.000 scope of part. subpart 49.2 additional principles', 27392:'49.001 definitions. for fixedprice contracts 49.002 applicability. terminated for convenience 49.201 general. subpart 49.1 general principles 49.202 profit. 49.100 scope', 27393:'of subpart. 49.203 adjustment for loss. 49.101 authorities and responsibilities. 49.204 deductions. 49.102 notice of termination. 49.205 completed end items.', 27394:'49.103 methods of settlement. 49.206 settlement proposals. 49.104 duties of prime contractor after receipt of 49.2061 submission of settlement proposals.', 27395:'notice of termination. 49.2062 bases for settlement proposals. 49.105 duties of termination contracting officer after 49.2063 submission of inventory disposal', 27396:'schedules. issuance of notice of termination. 49.207 limitation on settlements. 49.1051 termination status reports. 49.208 equitable adjustment after partial 49.1052', 27397:'release of excess funds. termination. 49.1053 termination case file. 49.1054 cleanup of construction site. subpart 49.3 additional principles 49.106 fraud', 27398:'or other criminal conduct. for costreimbursement contracts 49.107 audit of prime contract settlement proposals terminated for convenience and subcontract settlements.', 27399:'49.301 general. 49.108 settlement of subcontract settlement 49.302 discontinuance of vouchers. proposals. 49.303 procedure after discontinuing vouchers. 49.1081 subcontractor’s rights.', 27400:'49.3031 submission of settlement proposal. 49.1082 prime contractor’s rights and obligations. 49.3032 submission of inventory disposal schedules. 49.1083 settlement procedure.', 27401:'49.3033 audit of settlement proposal. 49.1084 authorization for subcontract settlements 49.3034 adjustment of indirect costs. without approval or ratification. 49.3035', 27402:'final settlement. 49.1085 recognition of judgments and arbitration 49.304 procedure for partial termination. awards. 49.3041 general. 49.1086 delay in settling', 27403:'subcontractor settlement 49.3042 submission of settlement proposal fee only. proposals. 49.3043 submission of vouchers. 49.1087 government assistance in settling 49.305', 27404:'adjustment of fee. subcontracts. 49.3051 general. 49.1088 assignment of rights under subcontracts. 49.3052 construction contracts. 49.109 settlement agreements. 49.1091 general.', 27405:'subpart 49.4 termination for default 49.1092 reservations. 49.401 general. 49.1093 government property. 49.402 termination of fixedprice contracts for 49.1094 nocost', 27406:'settlement. default. 49.1095 partial settlements. 49.4021 the government’s right. 49.1096 joint settlement of two or more settlement 49.4022 effect of', 27407:'termination for default. proposals. 49.4023 procedure for default. 49.1097 settlement by determination. 49.4024 procedure in lieu of termination for default.', 27408:'49.110 settlement negotiation memorandum. 49.4025 memorandum by the contracting officer. 49.111 review of proposed settlements. 49.4026 repurchase against contractor’s account.', 27409:'49.112 payment. 49.4027 other damages. 49.1121 partial payments. 49.4028 reporting information. 49.1122 final payment. 49.403 termination of costreimbursement contracts 49.113', 27410:'cost principles. for default. 49.114 unsettled contract changes. 49.404 suretytakeover agreements. 49.115 settlement of terminated incentive contracts. 49.405 completion by', 27411:'another contractor. 49.406 liquidation of liability. subpart 49.5 contract termination clauses 49.501 general. subpart 49.6 contract termination forms and formats', 27412:'49.502 termination for convenience of the 49.601 notice of termination for convenience. government. 49.6011 electronic notice. 49.503 termination for convenience', 27413:'of the 49.6012 letter notice. government and default. 49.602 forms for settlement of terminated contracts. 49.504 49.505 termination of fixedprice', 27414:'contracts for default. other termination clauses. 49.6021 49.6022 49.6023 49.6024 49.6025 49.603 termination settlement proposal forms. inventory forms. schedule of', 27415:'accounting information. partial payments. settlement agreement. formats for termination for convenience 49.6031 49.6032 49.6033 settlement agreements. fixed price contractscomplete termination.', 27416:'fixedprice contractspartial termination. cost reimbursement contractscomplete termination, if settlement includes cost. 49.6034 costreimbursement contractscomplete termination, with settlement limited to fee.', 27417:'49.6035 costreimbursement contractspartial termination. 49.6036 nocost settlement agreementcomplete termination. 49.6037 nocost settlement agreementpartial termination. 49.6038 49.6039 fixedprice contractssettlements with subcontractors', 27418:'only. settlement of reservations. 49.604 release of excess funds under terminated contracts. 49.605 49.606 request to settle subcontractor settlement proposals.', 27419:'granting subcontract settlement authorization. 49.607 delinquency notices. subpart 49.1 general principles 49.100 49.000scope of part. this part establishes policies and', 27420:'procedures relating to the complete or partial termination of contracts for the convenience of the government or for default. it', 27421:'prescribes contract clauses relating to termination and excusable delay and includes instructions for using termination and settlement forms. 49.001definitions. as', 27422:'used in this part other work means any current or scheduled work of thecontractor, whether government orcommercial, other than work', 27423:'related to the terminated contract. plant clearance period, asused inthis subpart,means theperiod beginning on the effective date of contractcompletion or', 27424:'termination and ending 90days or suchlonger period as may beagreed toafter receipt by thecontracting officer of acceptable inventory schedules for', 27425:'each property classification. the final phase of the plant clearance period means that period after receipt of acceptable inventory schedules.', 27426:'settlement agreement means a written agreement in the form of a contract modification settling all or a severable portion of', 27427:'a settlement proposal. settlement proposal means a proposal for effectingsettlement ofa contract terminated in whole or inpart,submitted by a contractor', 27428:'or subcontractor in the form, and supported by the data, required by this part. a settlement proposal is included within', 27429:'the generic meaning of the word claim under false claims acts see 18 u.s.c.287 and 31 u.s.c. 3729. unsettled contract', 27430:'change means any contract change or contract term for which a definitive modification is required but has not been executed.', 27431:'49.002 applicability. a 1 this part applies to contracts that provide for termination for the convenience of the government or', 27432:'for the default of the contractor see also 12.403 and 13.3024. 2 this part does not apply to commercial product', 27433:'and commercial service contracts awarded using part 12 procedures. see 12.403 for termination policies for contracts for the acquisition of', 27434:'commercial products and commercial services. however, for contracts for the acquisitionof commercial products and commercial services, thispart provides administrative guidance', 27435:'which may be followed unless it is inconsistent with the requirements and procedures in 12.403, termination, and the clause at', 27436:'52.2124, contract termsand conditionscommercial products andcommercial services. b contractors shall use this part, unless inappropriate, to settle subcontracts terminated as', 27437:'a result of modification of prime contracts. the contracting officer shall use this part as a guide in evaluating settlements', 27438:'of subcontracts terminated for the convenience of a contractor whenever the settlement will be the basis of a proposal for', 27439:'reimbursement from the government under a costreimbursement contract. c thecontracting officer may use this part in determining an equitable adjustment', 27440:'resultingfrom a modification under the changes clause of any contract, except costreimbursement contracts. d when action to be taken or', 27441:'authority to be exercised under this part depends upon the amount of the settlement proposal, that amount shall be determined', 27442:'by deducting from the gross settlement proposed the amounts payable for completed articles or work at the contract price and', 27443:'amounts for the settlement of subcontractor settlement proposals. credits for retention or other disposal of termination inventory and amounts for', 27444:'advance or partial payments shall not be deducted. subpart 49.1 general principles 49.100scope of subpart. a this subpart deals with', 27445:'1 the authority and responsibility of contracting officers toterminatecontracts in whole or inpart for the convenience of the government or', 27446:'for default; 2 duties ofthe contractor and the contracting officer afterissuance ofthe notice oftermination; 3 general procedures for the settlement', 27447:'of terminated contracts; and 4 settlement agreements. b additional principles applicable to the termination for convenience and settlement of fixedprice', 27448:'and cost reimbursement contracts are included in subparts 49.2 and 49.3. additional principles applicable to the termination of contracts for', 27449:'default are included in subpart 49.4. federal acquisition regulation 49.101 authorities andresponsibilities. a thetermination clauses orother contract clauses authorize contracting', 27450:'officers to terminate contractsforconvenience, or for default, and to enter into settlement agreements under this regulation. b the contractingofficer shall', 27451:'terminate contracts, whether for default or convenience, onlywhen it is in the government’s interest. thecontracting officer shall effect a nocost', 27452:'settlement instead of issuing atermination notice when 1 it is known that the contractor will accept one, 2 government property', 27453:'was not furnished, and 3 there are no outstanding payments, debts due the government, or other contractor obligations. c when', 27454:'the price of the undelivered balance of the contract is less than $5,000, the contract should not normally be terminated', 27455:'for convenience but should be permitted to run to completion. d afterthe contracting officerissues a notice of termination, the termination', 27456:'contracting officer tco is responsible for negotiating anysettlement with thecontractor, including a nocost settlement if appropriate. auditors and tco’s shall', 27457:'promptly schedule and complete audit reviews and negotiations, giving particular attention to the need for timely action on all settlements', 27458:'involving small business concerns. e if the same item is undercontract with both large and small business concerns and it', 27459:'is necessaryto terminate for convenience part of the units still to be delivered, preference shall be given to the continuing', 27460:'performance of small business contracts over large business contracts unless the chief of the contracting office determines that this is', 27461:'notin the government’s interest. f the contracting officer is responsible for the releaseof excess funds resulting from the termination unless', 27462:'this responsibility is specifically delegated to the tco. 49.102notice of termination. a general. the contracting officershallterminatecontracts for convenienceor default only', 27463:'by awritten notice to the contractor see 49.601. the notice of termination may be expedited by means of electronic communication', 27464:'capable of providing confirmation of receipt by the contractor. when the noticeis mailed, it shall be sent bycertifiedmail, return receipt', 27465:'requested. when the contracting officearranges for hand delivery of thenotice,a written acknowledgment shall be obtained from the contractor. the notice', 27466:'shall state 1 that the contract is being terminated for the convenience of the government or for default under the', 27467:'contract clause authorizing the termination; 2 the effective date of termination; 3 the extent of termination; 4 any special instructions;', 27468:'and 5 the steps the contractor should take to minimize the impact on personnel if the termination, together with all', 27469:'other outstandingterminations, willresult in asignificant reduction inthe contractor’s work force see paragraphgof the notice in 49.6012. if the termination notice', 27470:'is by telegram, include these steps in the confirming letter or modification. b distribution of copies. the contracting officershallsimultaneouslysend thetermination', 27471:'notice to the contractor, and a copy to the contract administration office and toanyknown assignee, guarantor, orsurety of the contractor.', 27472:'c amendment of termination notice. the contracting officer may amend atermination notice to 1 correct nonsubstantive mistakes in the notice;', 27473:'2 add supplemental data or instructions; or 3 rescind thenotice if it is determined thatitems terminated had been completed or', 27474:'shipped beforethe contractor’s receipt of the notice. d reinstatement of terminated contracts. upon writtenconsent of thecontractor, the contracting office mayreinstate', 27475:'the terminated portion of a contract in whole or in part by amending the notice of termination if it has', 27476:'been determined in writing that 1 circumstances clearly indicate a requirement for the terminated items; and 2 reinstatement is advantageous', 27477:'to the government. 49.103methods of settlement. settlement of terminated costreimbursement contracts and fixedprice contracts terminated for convenience may be effected', 27478:'bya negotiated agreement,bdeterminationby the tco, c costingout under vouchers using sf 1034, public voucherforpurchasesandservicesotherthanpersonal,forcostreimbursementcontractsasprescribedin subpart 49.3, subpart 49.1 general principles', 27479:'49.105 or d a combination of these methods. when possible, the tco should negotiate a fair and prompt settlement with', 27480:'the contractor. the tco shall settlea settlement proposal by determination only when it cannot be settled by agreement. 49.104 dutiesof', 27481:'prime contractor afterreceipt of notice of termination. after receipt of the notice of termination, the contractor shall comply with the', 27482:'notice and the termination clause of the contract, except as otherwise directed by the tco. the notice and clause applicable', 27483:'to convenience terminations generally require that the contractor a stop work immediately on the terminated portion of the contract and', 27484:'stop placing subcontracts thereunder; b terminate all subcontracts related to the terminated portion ofthe prime contract; c immediately advise the', 27485:'tco of any special circumstances precluding the stoppage of work; d perform the continued portion of the contract and submit', 27486:'promptly any request for an equitable adjustment of price for the continued portion, supported by evidence of any increase in', 27487:'the cost, if the termination is partial; e take necessary or directed action to protect and preserve property in the', 27488:'contractor’s possession inwhich the government has or may acquire an interest and, as directed by the tco, deliver the property', 27489:'to the government; f promptly notify the tco in writing of any legal proceedings growing out of any subcontract or', 27490:'other commitment related to the terminated portion of the contract; g settle outstanding liabilities and proposals arising out of termination', 27491:'of subcontracts, obtaining any approvals or ratifications required by the tco; h promptly submit the contractor’s own settlement proposal, supported', 27492:'by appropriate schedules; and idispose of termination inventory, as directed or authorized bythe tco. 49.105duties of termination contracting officer after', 27493:'issuance of notice of termination. a consistent with the termination clause and the notice of termination, the tco shall 1', 27494:'direct the action required of the prime contractor; 2 examine the settlement proposal of the prime contractor and, when appropriate,', 27495:'the settlement proposals of subcontractors; 3 promptly negotiate settlement with the contractor and enter into a settlement agreement; and 4', 27496:'promptly settle the contractor’s settlement proposal by determination for the elements that cannot be agreed on, if unable to negotiate', 27497:'a complete settlement. b to expedite settlement, thetco may request specially qualifiedpersonnel to 1 assist in dealings with the contractor;', 27498:'2 advise on legal and contractual matters; 3 conduct accounting reviews and advise and assist on accounting matters; and 4', 27499:'perform the following functions regarding termination inventory see subpart 45.6: iverifyits existence. iidetermine qualitative and quantitative allocability. iii make recommendations', 27500:'concerningserviceability. iv undertake necessary screening and redistribution. v assist the contractor in accomplishing other disposition. c thetco should promptly hold', 27501:'a conference withthe contractor to develop a definite program for effecting the settlement. when appropriate in the judgment of the', 27502:'tco,after consultingwith the contractor, principal subcontractors should berequested to attend. topicsthat should bediscussedat the conference and documented include 1 general', 27503:'principles relating to the settlement of any settlement proposal, including obligations of the contractor under the termination clause of the', 27504:'contract; 2 extent of the termination, point at which work is stopped, and status of any plans, drawings, and information', 27505:'that would have been delivered had the contract been completed; 3 status of any continuing work; 4 obligation of the', 27506:'contractor to terminate subcontracts and general principles to be followed in settling subcontractor settlement proposals; 5 names of subcontractors involved', 27507:'and the dates termination notices were issued to them; 6 contractor personnel handling review and settlement of subcontractor settlement proposals', 27508:'and the methods being used; 7 arrangements for transfer of title and delivery to the government of any material required', 27509:'by the government; 49.1051 federal acquisition regulation 8 general principles andprocedures to be followedin theprotection, preservation, and disposition ofthe contractor’s', 27510:'and subcontractors’ termination inventories, including the preparation of termination inventory schedules; 9 contractor accounting practices and preparation of sf 1439', 27511:'schedule of accounting information 49.6023; 10 form in which to submit settlement proposals; 11 accounting review ofsettlement proposals; 12 any', 27512:'requirement for interim financing in the nature of partial payments; 13 tentative time schedule for negotiation of the settlement, including', 27513:'submission bythe contractor and subcontractors of settlement proposals, termination inventory schedules, and accounting information schedules see 49.2063 and 49.3032; 14', 27514:'actionstaken by the contractorto minimize impactupon employees affected adversely by thetermination see paragraph g of the letter notice in 49.6012;', 27515:'and 15 obligation of the contractor to furnish accurate, complete, and current cost or pricing data, and to certify to', 27516:'that effect in accordance with 15.4034a1 when the amount of a termination settlement agreement, or a partial termination settlement agreement', 27517:'plus the estimate to complete the continued portion of the contract exceeds the threshold in 15.4034. 49.1051termination statusreports. when the', 27518:'tcoand contracting officer arein different activities, the tco will furnish periodic status reports on terminationactions to the contractingoffice upon request.', 27519:'the contracting office shall specify the information required. 49.1052 release of excess funds. a the tco shall estimate the funds', 27520:'required to settle the termination, and within 30 days after the receipt of the terminationnotice,recommend the release of excess funds', 27521:'tothe contracting officer. the initial deobligation of excess funds should beaccomplished ina timely manner by the contracting officer, or thetco,', 27522:'if delegated theresponsibility. the tco shall not recommend the release of amounts under $1,000, unless requested by thecontracting officer. b', 27523:'the tco shall maintain continuous surveillance of required funds to permit timely release of any additional excess funds a recommended', 27524:'format for release of excess funds is in 49.604. if previous releases of excess funds result in a shortage of', 27525:'the amount requiredforsettlement, the tco shall promptly inform the contracting officer, who shall reinstate the funds within 30 days. 49.1053termination', 27526:'case file. the tco responsible for negotiating the final settlement shall establish a separate case file for each termination. this', 27527:'file will include memoranda and records of all actions relative to the settlement see 4.801. 49.1054 cleanup of construction site.', 27528:'in the case of terminated construction contracts, the contracting officer shall direct actionto ensure the cleanupof the site, protection of', 27529:'serviceable materials, removal of hazards, and other action necessary to leave a safe and healthful site. 49.106fraud or other criminal', 27530:'conduct. if the tco suspects fraud or other criminal conduct related to the settlement of a terminated contract, the tco', 27531:'shall discontinue negotiations and report the facts under agency procedures. 49.107 auditof prime contract settlement proposals and subcontract settlements. a', 27532:'the tco shall refer each prime contractor settlement proposal valued at or above the threshold for obtaining certified cost or', 27533:'pricing data setforth in far 15.4034a1 to the appropriate audit agency for review and recommendations. the tco may submit settlement', 27534:'proposals of less than the threshold for obtaining certified cost or pricing data to the audit agency. referrals shall indicate', 27535:'any specific information or data that thetco considers relevant and shall include facts and circumstances that will assist the audit', 27536:'agency in performing its function. the audit agency shall develop requested information and may make any further accounting reviews it', 27537:'considers appropriate. after its review,the audit agency shall submit written comments and recommendations to the tco. when a formal examination', 27538:'of settlement proposals valued under the threshold for obtaining certified cost or pricing data is not warranted, the tco will', 27539:'perform or have performed a desk review and include a written summary of the review in the termination case file.', 27540:'b the tco shall refer subcontract settlements received for approval or ratification to the appropriate audit agency for review and', 27541:'recommendations when— subpart 49.1 general principles 49.1083 1 the amount exceeds the threshold for obtaining certified cost or pricing data;', 27542:'or 2 the tco determines that a complete or partial accounting review is advisable. the audit agency shall submit written', 27543:'comments and recommendations to the tco. the review by the audit agency does not relieve the prime contractor or higher', 27544:'tier subcontractor ofthe responsibility for performing an accounting review. c 1 the responsibility of the prime contractor and of each', 27545:'subcontractor see 49.108 includes performance of accounting reviews and any necessaryfield audits. however, the tco should request thegovernmentaudit agency to', 27546:'perform the accounting review of a subcontractor’s settlementproposal when i a subcontractor objects, for competitive reasons, to an accounting review', 27547:'of its records by an upper tier contractor; iithe government audit agency is currently performing audit work at thesubcontractor’s plant,', 27548:'orcan perform the audit more economically or efficiently; iii audit by the government is necessary for consistent audit treatment and', 27549:'orderly administration; or iv the contractor hasa substantial or controllingfinancial interest in the subcontractor. 2 the audit agency should avoid', 27550:'duplication of accounting reviews performed by the upper tier contractor on subcontractor settlement proposals. however, this should not preclude thegovernment', 27551:'from making additional reviews when appropriate. when the contractor is performing accounting reviews according to this section, the tco should', 27552:'request theaudit agency to periodically examine thecontractor’saccountingreview procedures and performance,andto make appropriate comments and recommendations to the tco. d the', 27553:'auditreport isadvisory only, and is for thetco touse in negotiating a settlement or issuing aunilateral determination. government personnel handling audit', 27554:'reports must be careful not to reveal privileged information or information thatwill jeopardize the negotiation position ofthe government, the prime', 27555:'contractor, or a higher tier subcontractor. consistent withthis, andwhen in the government’sinterest, thetco may furnish audit reports under paragraph c', 27556:'of this section to prime and higher tier subcontractors for their use in settling subcontract settlement proposals. 49.108 settlement of', 27557:'subcontract settlement proposals. 49.1081subcontractor’s rights. a subcontractor has no contractual rights against the government upon the termination of a prime', 27558:'contract. a subcontractor may have rights against the prime contractor or intermediate subcontractor with whom it has contracted. upon termination', 27559:'of a prime contract, the prime contractor and each subcontractor are responsible for the prompt settlement of the settlement proposals', 27560:'of their immediate subcontractors. 49.1082primecontractor’s rights andobligations. a termination for convenience clauses provide that after receipt of a terminationnotice the', 27561:'prime contractorshall, unless directed otherwise by the tco, terminate all subcontracts to the extent that they relate to the performance', 27562:'of prime work terminated. therefore, prime contractors should include a termination clause in their subcontracts for their own protection. suggestions', 27563:'regarding use of subcontract termination clauses are in subpart 49.5. b the failure of a prime contractor to include an', 27564:'appropriate termination clause in any subcontract, or to exercise the clause rights, shall not 1 affect thegovernment’s right to require', 27565:'the termination of the subcontract; or 2 increase the obligation of the government beyond what it would have been if', 27566:'the subcontract had contained an appropriate clause. c inany case,the reasonableness of the prime contractor’s settlementwith the subcontractor should normally', 27567:'be measured by the aggregate amount due under paragraph f of the subcontract termination clause suggested in 49.502e. the tco', 27568:'shall allow reimbursement in excess of that amount only in unusual cases and then only to the extent that the', 27569:'terms of thesubcontract did not unreasonablyincrease the rights of the subcontractor. 49.1083settlementprocedure. a contractors shall settle with subcontractors in general', 27570:'conformity with the policies and principles relating to settlement of prime contracts in this subpart and subparts 49.2 or 49.3.however,thebasisandformofthesubcontractor’ssettlement', 27571:'proposal mustbe acceptable to the prime contractor or the next highertier subcontractor. each settlement must besupported by accounting data and', 27572:'other information sufficient for adequate review by the government. in no event willthe government 49.1084 federal acquisition regulation pay the', 27573:'prime contractor any amount for loss of anticipatory profits or consequential damages resulting from the termination of any subcontract but', 27574:'see 49.1085. b except as provided in 49.1084, the tco shall require that 1 all subcontractor termination inventory be disposed', 27575:'of and accounted for in accordance with the procedures contained in paragraph j of the clause at 52.2451, government property;', 27576:'and 2 the prime contractor submit, for approval or ratification, all termination settlements with subcontractors. c the tco shall promptly', 27577:'examine each subcontract settlement received to determine that the subcontract termination was made necessary by the termination of the prime', 27578:'contract or by issuance of a change ordersee 49.002b. the tco will also determine if the settlement was arrived at', 27579:'in good faith, is reasonable in amount, and is allocable to the terminated portion of the contract or, if allocable', 27580:'only inpart,that the proposed allocation is reasonable. in considering the reasonableness of any subcontract settlement, the tco shall generally be', 27581:'guided by the provisions of this part relating to the settlement of prime contracts, and shall comply with any applicable', 27582:'requirements of 49.107 and 49.111 relating to accounting and other reviews. after the examination, the tco shall notify the contractor', 27583:'in writing of 1 approval or ratification, or 2 the reasons for disapproval. 49.1084authorization for subcontract settlementswithout approval orratification. a', 27584:'1thetcomay,uponwrittenrequest,givewrittenauthorizationtotheprimecontractortoconcludesettlementsof subcontracts terminated in whole or in part without approval or ratification when the amount of settlement see 49.002d is', 27585:'$100,000 or less, if i the tco is satisfied with the adequacy of the procedures used by the contractor in', 27586:'settling settlement proposals, including proposals for retention, sale, or other disposal of termination inventory of the immediate and lower tier', 27587:'subcontractors the tco shall obtain the advice and recommendations of athe appropriate audit agencyrelatingto the adequacy of thecontractor’saudit administration, including', 27588:'personnel, and b the cognizantplant clearance officer relating to the adequacy of the contractor’s procedures and personnel for the administration', 27589:'of property disposal matters; ii any termination inventory included in determining the amount of the settlement will be disposed of', 27590:'as directed by the prime contractor,exceptthat thedisposition of the inventory shall not be subject to a review by the tco', 27591:'under 49.1083c; or b the screening requirements in 45.6023; and iii a certificate similar to the certificate in the settlement', 27592:'proposal form in 49.6021a will accompany the settlement. 2 except as provided in paragraph a4 of this section, authority granted', 27593:'to a prime contractor under paragraph a1 of this section by any tco shall apply to all executive agencies’ prime', 27594:'contracts that are terminated, or modified by change orders. 3 except as provided in paragraph a4 of this section,the tco', 27595:'shall accept,as part of the prime contractor’s settlement proposal, settlementsof terminated lower tiersubcontractsconcludedby any of theprimecontractor’s immediate or lower tier', 27596:'subcontractors who have been granted authority as prime contractors to settle subcontracts; provided, that thesettlement is within the limit of', 27597:'the authority. authorizationto settleproposalsof lower tier subcontractors shall not begranted directly tosubcontractors. however, a prime contractor authorizedto approve subcontractor settlements', 27598:'may also exercise thisauthority inits capacity as a subcontractor, with respect to its terminated subcontracts and orders. when exercising this', 27599:'authorityas a subcontractor, the contractor shall notify the purchaser. 4 the provisions of paragraphs a1, 2, and 3 of this', 27600:'section shall not apply to contracts under the administration of any contracting officer ifthe contracting officer so notifies the prime', 27601:'contractorconcerned. this notice shall i be in writing, and iiif paragraph a3 of this section is involved, specify any subcontractor', 27602:'affected. b section 45.602shallapply to disposal of completedenditems allocable to the terminatedsubcontract. however,these items may be disposed of without review', 27603:'by the tco under 49.1083 and without screening under 45.6023, if the items do not require demilitarization and the total', 27604:'amount at the subcontract price when added to the amount of the settlement does not exceed the amount authorized under', 27605:'this subsection. c a tco granting the authorization in paragraph a1 of this section shall periodically at least annually make', 27606:'a selective review of settlements and settlement procedures to determine if the contractor is making adequate reviews and fair subpart', 27607:'49.1 general principles 49.1088 settlements, and whether the authorization should remainin effect. the tco shall obtain the advice and recommendations', 27608:'of theappropriateaudit agency and the cognizant plantclearance officer. whenitis determined that the contractor’s procedures are not adequate, or that improper', 27609:'settlements are being made, or when the authority has not been used in the preceding 2 years, the tco shall', 27610:'revoke the authorization by written notice to the contractor, effective on the date ofreceipt. d the contractor may make any', 27611:'number of separate settlements with a single subcontractor but shall not divide settlement proposals solely to bring them under an', 27612:'authorization limit. separate settlement proposals that would normally be included in a single proposal, such as those based on a', 27613:'series of separate orders for the same item under one contract, shall be consolidated whenever possible. e upon written request', 27614:'of the contractor, the tcomay increase anauthorizationgranted underparagraph a1 of this subsection to authorize the contractor to conclude settlements under', 27615:'a particular prime contract. the tco may limit the increased authorization to specific subcontracts or classes of subcontracts. f authorizations', 27616:'granted under this 49.1084 shall not authorize the settlement of requisitions or orders placed with any unit within thecontractor’s corporateentity.', 27617:'g recommended formats for a request to settle subcontractor settlement proposals and the tco’s letter ofauthorization to the contractor are', 27618:'in 49.605 and 49.606, respectively. 49.1085 recognition of judgments and arbitration awards. a when a subcontractor obtains a final judgmentagainst', 27619:'a prime contractor,the tco shall, for the purposes of settling theprimecontract, treat the amount of the judgment as a cost', 27620:'of settling with the contractor, tothe extent the judgment is properly allocable to the terminated portion of the prime contract,', 27621:'if 1 the prime contractorhas madereasonable efforts toinclude in the subcontract a termination clause described in 49.502e, 49.503c, or a', 27622:'similar clause excluding payment of anticipatory profits or consequential damages; 2 the provisions of the subcontract relating to the rights', 27623:'of the parties upon its termination are fair and reasonable and do not unreasonably increase the common law rights of', 27624:'the subcontractor; 3 the contractormade reasonable efforts to settle thesettlement proposal of the subcontractor; 4 the contractorgaveprompt notice to the', 27625:'contractingofficer of the initiation of the proceedingsin whichthe judgment was rendered and did not refuse to give the government control', 27626:'of the defense of the proceedings; and 5 the contractordiligently defended the suit or, if the government assumedcontrol ofthe defense', 27627:'of the proceedings, rendered reasonable assistance requested by the government. b if the conditions in paragraphs a1 through 5 of', 27628:'this section are not all met, the tco may allow the contractor the part of the judgment considered fair for', 27629:'settling the subcontract settlement proposal, giving due regard to the policies in this part for settlement of proposals. c when', 27630:'a contractor and a subcontractor submit the subcontractor’ssettlement proposal toarbitration underany applicable law or contract provision, the tco shall recognize', 27631:'the arbitration award as the cost of settling the proposal of the contractor to the same extent and under the', 27632:'same conditions as in paragraphs a and b of this section. 49.1086delay in settling subcontractor settlement proposals. when aprimecontractor’s inabilityto', 27633:'settlewith a subcontractor delaysthe settlement of theprimecontract, the tco may settle with the prime contractor. thetco shall except the subcontractor', 27634:'settlement proposal fromthe settlement in whole or part and reserve the rights of the government and the prime contractor with', 27635:'respect to the subcontractor proposal. 49.1087 government assistance in settling subcontracts. in unusual cases the tcomay determine, with the consentof', 27636:'the prime contractor, that it is inthe government’s interest to provide assistance to the prime contractor in the settlement of', 27637:'a particular subcontract. in these situations, the government, theprimecontractor, and a subcontractor may enterinto an agreement covering the settlement of', 27638:'one or moresubcontracts. in these settlements, the subcontractor shall be paid through the prime contractor as part of the overall', 27639:'settlement with the prime contractor. 49.1088 assignment of rights under subcontracts. a the termination for convenience clauses in 52.249, except', 27640:'the shortform clauses, obligate the prime contractor to assign to the government, as directed by the tco, all rights, titles,', 27641:'and interest under any subcontract terminated because of terminationof the prime contract. the tcoshallnot require the assignment unless it is', 27642:'in the government’s interest. federal acquisition regulation b the termination for convenience clauses except the shortform clauses also provide the', 27643:'government the right, in its discretion, to settle and pay any settlement proposal arising out of the termination of subcontracts.', 27644:'this right does not obligate the government to settle and pay settlement proposals of subcontractors. as a general rule, the', 27645:'prime contractor is obligated to settleand pay theseproposals. however, when the tco determines that it is in the government’s interest,', 27646:'the tco shall, afternotifying the contractor, settle the subcontractor’s proposal using the procedures for settlement of prime contracts. an examplein', 27647:'whichthe government’s interest wouldbe served is when a subcontractor is asole sourceand it appears that adelayby the prime contractorin settlement', 27648:'or paymentof the subcontractor’s proposal will jeopardize the financial position of the subcontractor. direct settlements with subcontractors are not encouraged.', 27649:'49.109 settlement agreements. 49.1091 general. when a termination settlement has been negotiated and all required reviews have been obtained, the', 27650:'contractor and the tco shall execute a settlement agreement on standard form 30 amendment of solicitation/modification of contract see 49.603.', 27651:'the settlement shall cover a any setoffs thatthe government has againstthe contractor that may beapplied against the terminated contract and', 27652:'b all settlement proposals of subcontractors, except proposals that are specifically excepted from the agreement and reserved for separate settlement.', 27653:'49.1092 reservations. a the tco shall 1 reserve in the settlement agreement any rights or demands of the parties that', 27654:'are excepted from the settlement; 2 ensure that the wording of the reservation does not create any rights for the', 27655:'parties beyond those in existence before execution of the settlement agreement; 3 mark each applicable settlement agreement with this settlement', 27656:'agreement contains a reservation and retain the contract file until the reservation is removed; 4 ensure that sufficient funds are', 27657:'retained to cover complete settlementof the reserved items; and 5 at the appropriate time, prepare a separate settlement of reserved', 27658:'items and include it in a separate settlement agreement. b a recommended format for settlement of reservations appears in 49.6039.', 27659:'49.1093government property. before execution of a settlement agreement, the tco shall determine the accuracy of the government property account for', 27660:'the terminated contract. if an audit discloses property for which the contractor cannot account, the tco shall reserve in the', 27661:'settlement agreement the rights of the government regarding that property or make an appropriate deduction from the amount otherwise due', 27662:'the contractor. 49.1094 nocost settlement. the tco shall execute a nocost settlement agreement see 49.6036 or 49.6037, as applicable if', 27663:'a the contractor has not incurred costs for the terminated portion of the contract or b the contractor is willing', 27664:'to waive the costs incurred and c no amounts are due the government under the contract. 49.1095 partial settlements. the', 27665:'tco should attempt to settle in one agreement all rights and liabilities of the parties under the contract except those', 27666:'arisingfrom any continuedportion of the contract. generally, the tco shall not attempt to make partial settlements covering particular items of', 27667:'theprimecontractor’ssettlement proposal. however, whena tco cannot promptlycomplete settlement under the terminated contract, a partial settlement may be entered into if', 27668:'a the issues on which agreement has been reached are clearly severable from other issues and b the partial settlement', 27669:'will not prejudice the government’sor contractor’s interests indisposing of the unsettled part of the settlement proposal. subpart 49.1 general principles', 27670:'49.1097 49.1096joint settlement of twoor more settlement proposals. a with the consent of the contractor, the tco ortco’s concerned maynegotiate', 27671:'jointlytwo ormore termination settlement proposals of the samecontractor under different contracts, even thoughthe contracts are withdifferent contracting offices or agencies.', 27672:'insuch cases, accounting workshallbe consolidatedto thegreatest extent practical. theresulting settlement may be evidenced by one settlement agreement covering all contracts', 27673:'involved or by a separate agreement for each contract involved. b when the settlement agreement covers more than one contract,', 27674:'it shall 1 clearly identify the contracts involved, 2 assign an amendment modification number to each contract, 3 apportion the', 27675:'total amount of the settlement among the several contracts on some reasonable basis, 4 have attached or incorporated a schedule', 27676:'showing the apportionment, and 5 be distributed and attached to each contract involved in the same manner as other contract', 27677:'modifications. 49.1097 settlement by determination. a general. if the contractor and tco cannot agree on a termination settlement, or if', 27678:'a settlement proposal is not submitted within the period required by the termination clause, the tco shall issue a determination', 27679:'of the amount due consistent with the termination clause, including any cost principles incorporated by reference. the tco shall comply', 27680:'with 49.1091 through 49.1096 in making a settlement by determination and with 49.203 in making an adjustment for loss, if', 27681:'any. copies of determinations shall receive the same distribution as other contract modifications. b notice to contractor. before issuing adetermination', 27682:'of the amount due thecontractor, the tco shall give the contractor at least 15 days notice by certified mail return', 27683:'receipt requested to submit written evidence, so as to reach the tco on or before a stated date, substantiating the', 27684:'amount previously proposed. c justification of settlement proposal. 1 the contractor has the burden of establishing, by proof satisfactory to', 27685:'the tco, the amount proposed. 2 the contractormay submit vouchers,verified transcripts of books of account, affidavits, auditreports, andother documents as', 27686:'desired. the tco may request the contractor to submit additional documents and data, and may request appropriate accountings, investigations, and', 27687:'audits. 3 the tco may accept copies of documents and records without requiring original documents unless there is a question', 27688:'of authenticity. 4 the tco may hold any conferences considered appropriate ito conferwith the contractor, iito obtain additional information from', 27689:'governmentpersonnel or from independent experts, or iii to consultpersons who have submitted affidavits or reports. d determinations. after reviewing the', 27690:'information available, the tco shall determine the amount due and shall transmit a copy of the determination to the contractor', 27691:'by certified mail return receipt requested, or by any other method that provides evidence of receipt. the transmittal letter shall', 27692:'advise the contractor that the determination is a final decision from which the contractor may appeal under the disputes clause,', 27693:'except as shown in paragraph f of this section. the determination shall specify the amount due the contractor and will', 27694:'be supported by detailed schedules conforming generally to the forms for settlement proposals prescribed in 49.6021 and by additional information,', 27695:'schedules, and analyses as appropriate. the tco shall explain each major item of disallowance. the tco need not reconsider any', 27696:'other action relating to the terminated portionof the contract that was ratified or approved by the tco or another contracting', 27697:'officer. e preservation of evidence. the tco shall retain all written evidence and other data relied upon in making a', 27698:'determination, except that copies of original books of account need not be made. the tco shall return books of account,', 27699:'together with other original papers and documents, to the contractor within a reasonable time. f appeals. the contractor may appeal,', 27700:'under the disputes clause, any settlement by determination, except when the contractor has failed to submit the settlement proposal within', 27701:'the time provided in the contract and failed to request an extension of time. the pendency of anappealshallnot affectthe authority', 27702:'of the tcoto settle the settlement proposal orany part by negotiation with the contractor at any time before the appeal', 27703:'is decided. g decision on the contractor’s appeal. the tco shall giveeffect to adecision of theclaims courtor aboard of contract', 27704:'appeals, whennecessary,by an appropriate modification to the contract. whenappropriate, the tco should obtain a release from the contractor. tco’s are', 27705:'authorized to modify the formats of settlement agreements in 49.603 to agree with this provision. federal acquisition regulation 49.110settlement negotiation', 27706:'memorandum. a the tco shall, at the conclusion of negotiations, prepare a settlement negotiation memorandum describing the principal elements of', 27707:'the settlement for inclusion in the termination case file and for use by reviewing authorities. pricing aspects of the settlement', 27708:'shall be documented in accordance with 15.4063. the memorandum shall be distributed in accordance with 15.4063. b if the settlement', 27709:'was negotiated on the basis of individual items, the tco shall specify the factors considered for each item. if the', 27710:'settlement was negotiated on an overall lumpsum basis, the tco need not evaluate each item or group of items individually,', 27711:'but shall support the total amountof the recommended settlement in reasonable detail. the memorandum shall include explanationsof mattersinvolvingdifferences and doubtful', 27712:'questions settled by agreement, and the factorsconsidered. the tco should include any other matters that will assist reviewing authorities in', 27713:'understanding the basis for the settlement. 49.111 review of proposed settlements. each agency shall establish procedures, when necessary, for theadministrativereview', 27714:'of proposed termination settlements. when one agency provides terminationsettlement services for another agency, the agency providing the services shall also', 27715:'perform the settlement review function. 49.112payment. 49.1121 partial payments. a general. if the contract authorizes partial payments on settlement proposals', 27716:'before settlement, a prime contractor may request them on the form prescribed in 49.6024 at any time after submission of', 27717:'interim or final settlement proposals. the government will process applications for partial payments promptly. a subcontractor shall submit its application', 27718:'through the prime contractor which shall attach itsown invoice and recommendations to thesubcontractor’s application. partialpayments to a subcontractor shall be', 27719:'made only through the prime contractor and only after the prime contractor has submitted its interim or final settlement proposal.', 27720:'except for undelivered acceptable finished products, partial payments shall not be made for profit or fee claimed under the terminated', 27721:'portion of the contract. in exercising discretion on the extent of partial payments to be made, the tco shall consider', 27722:'the diligence of the contractor in settling with subcontractors and in preparing its own settlement proposal. b amount of partial', 27723:'payment. before approving any partial payment, the tco shall obtain any desired accounting, engineering, or other specialized reviews of the', 27724:'data submitted in support of thecontractor’s settlement proposal. if the reviews and the tco’s examinationof the data indicate thatthe requested', 27725:'partial payment is proper, reasonablepayments may be authorized in the discretion of the tco up to 1 100 percent of', 27726:'the contract price, adjusted for undelivered acceptable items completed before the termination date, or later completed with the approval of', 27727:'the tco see 49.205; 2 100 percent of the amount of any subcontract settlement paid by the prime contractor if', 27728:'the settlement was approved or ratified by the tco under 49.1083c or was authorized under 49.1084; 3 90 percent of', 27729:'the direct cost of termination inventory, includingcosts of raw materials, purchased parts, supplies, and direct labor; 4 90 percent of', 27730:'other allowable costs including settlement expense and manufacturing and administrative indirect costs allocable to the terminated portion of the contract', 27731:'and not included in paragraphs b1, 2, or 3 of this section; and 5 100 percent of partial payments made', 27732:'to subcontractors under this section. c recognition of assignments. when an assignment of claims has been made under the contract,', 27733:'the government shall not make partial payments to other than the assignee unless the parties to the assignment consent in', 27734:'writing see 32.805e. d security for partial payments. if any partial payment is made for completed end items or for', 27735:'costs of termination inventory,the tco shall protect the government’sinterest. this shall be done by obtainingtitle to the completed end items', 27736:'or termination inventory, or by the creation of a lien in favor of the government,paramountto all other liens, on the', 27737:'completedend items or terminationinventory, or by other appropriate means. e deductions in computing amount of partial payments. the tco shall', 27738:'deduct from the gross amount of any partial payment otherwise payable under 49.1121b 1 all unliquidated balancesof progress and advancepayments', 27739:'includinginterest made to the contractor, which are allocable to the terminated portion of the contract; and 2 the amounts ofallcredits', 27740:'arisingfrom the purchase, retention, or sale ofproperty, thecosts of whichare included in the application for payment. subpart 49.1 general principles', 27741:'49.115 f limitation on total amount. the total amount of all partial payments shall not exceed the amount that will,', 27742:'in the opinion of the tco, become due to the contractor because of the termination. g effect of overpayment. if', 27743:'the total of partial payments exceeds the amount finally determined due on the settlement proposal, the contractor shall repay the', 27744:'excess to the government on demand, together with interest. the interest shall be computed at therate established by the secretaryof', 27745:'the treasury under50 u.s.c. app.1215b2 from thedate the excess paymentwas receivedby the contractorto thedate of repayment. however, interestwill not becharged', 27746:'for any 1 excess payment attributable to a reduction in the settlement proposal because of retention or other disposition of', 27747:'terminationinventory, until10 days after the date ofthe retention or disposition, or a later date determined bythe tco, or 2 overpayment', 27748:'under costreimbursement research and development contracts without profit or fee if the overpayments are repaid to the government within 30', 27749:'days after demand. h certification and approval of partial payments. 1 the contractor shall place the following certification on vouchers', 27750:'or invoices for partial payments: the payment covered by this voucheris apartial payment onthe contractor’ssettlement proposal undercontract no. under part', 27751:'49 of the federal acquisition regulation. 2 the tco shall approve the invoice or voucher by noting on it the', 27752:'following: payment of $ is approved. 49.1122 final payment. a negotiated settlement. after execution of a settlement agreement, the contractor', 27753:'shall submit a voucher or invoice showing the amount agreed upon, less any portion previously paid. the tco shall attach', 27754:'a copy of the settlement agreement to the voucher orinvoice and forward the documents tothe disbursing officer for payment. b', 27755:'settlement by determination. if the settlement is by determination and 1 there is no appeal within the allowed time, the', 27756:'contractor shall submit a voucher or invoice showing the amount determined due, less any portion previously paid; or 2 there', 27757:'is an appeal, the contractor shall submit a voucher or invoice showing the amount finally determined due on the appeal,', 27758:'less any portion previously paid. pending determination of any appeal, the contractor may submit vouchers or invoices for charges thatare', 27759:'not directly involved with the portion being appealed, without prejudice to the rights of either party on the appeal. c', 27760:'construction contracts. in the case ofconstruction contracts, beforeforwarding the final payment voucher, the contracting officershallascertain whether there areany outstanding labor', 27761:'violations. if so, thecontracting officer shall determine the amount to be withheld from the final payment see subpart 22.4. d', 27762:'interest. the government shall not pay interest on the amount due under a settlement agreement or a settlement by determination.', 27763:'the government may, however, pay interest on a successful contractor appeal from acontracting officer’s determination under the disputes clause at', 27764:'52.2331. 49.113cost principles. the cost principles and procedures in the applicable subpart of part 31 shall, subject to the general', 27765:'principles in 49.201 a be used in asserting, negotiating, or determining costs relevant to termination settlements under contracts with other', 27766:'than educational institutions, and b be a guide for the negotiation of settlements under contracts for experimental, developmental, or research', 27767:'work with educational institutions but see 31.104. 49.114unsettled contract changes. a before settlement of a completely terminated contract, the tco', 27768:'shall obtain from the contractingoffice a list ofall related unsettled contract changes. the tco shall settle, as part of final', 27769:'settlement, all unsettled contract changes after obtaining the recommendationsof the contractingoffice concerning the changes. b when the contract has been', 27770:'partially terminated, any outstanding unsettled contract changes will usually be handled by thecontracting officer. however, the contractingofficer may delegate this', 27771:'function to the tco. 49.115settlement of terminated incentive contracts. a fixedprice incentive contracts. the tco shall settle terminated fixedprice incentive', 27772:'fpi contracts under the provisions of paragraph j of the clause at 52.21616, incentive price revisionfirmtarget, and 52.2492, termination for', 27773:'convenience of the government fixedprice. federal acquisition regulation 1 partial termination. under a partially terminated contract, the tco shall negotiate', 27774:'a settlement as provided in the termination clause of the contract, and paragraph j of the clause at 52.21616, incentive', 27775:'pricerevisionfirm target, or paragraph 1 of the clause at 52.21617, incentiveprice revisionsuccessive targets. thecontracting officer shall apply the incentive price', 27776:'revision provisions to completed items accepted by the government, including any for which the contractor may requestreimbursement in the settlementproposal.', 27777:'the tcoshallreimburse the contractor at target price for completed articles included in the settlement proposal for which a final price', 27778:'has not been established. the tco shall incorporate in the settlement agreement an appropriate reservation as to final price for', 27779:'these completed articles. 2 complete termination. if anyitemswere delivered and acceptedby the government, the contracting officer shall establish prices under', 27780:'the incentive provisions of the contract. on the terminated portion of the contract, the provisions of the termination clause see', 27781:'52.2492, termination for convenience of the government fixedprice shall governand theprovisionsof the incentive clause shall not apply. the tco responsible', 27782:'for thetermination settlement will ensure, on thebasis of evidence considered properincludingcoordination with thecontracting officer,that no portion of thecosts considered in', 27783:'the negotiations under the incentive provisions are included in the termination settlement. b costplusincentivefee contracts. the tco shall settle terminated', 27784:'costplusincentivefee contracts under the clause at 52.2496, termination costreimbursement. 1 partial termination. under a partial termination, the tco shall limit', 27785:'thesettlement to an adjustment of target fee as provided in paragraph e of the clause at 52.21610, incentive fee. the', 27786:'settlement agreement shall include a reservation regarding any adjustment of target cost resulting from thepartial termination. the contracting officer shall', 27787:'adjustthe target cost, if required. 2 complete termination. the parties shall negotiate the settlement under the provisions of subpart 49.3', 27788:'and the clause at 52.2496, termination cost reimbursement. the fee shall beadjusted on the basis of thetarget fee,andthe incentive provisions', 27789:'shall not be applied or considered. subpart 49.2 additional principles for fixedprice contracts terminated for convenience 49.203 subpart 49.2 additional', 27790:'principles for fixedprice contracts terminated for convenience 49.201general. a a settlement should compensate the contractor fairly for the work done', 27791:'and the preparations made for the terminated portions of the contract, including a reasonable allowance for profit. fair compensation is', 27792:'a matter of judgment and cannot be measured exactly. in agiven case, various methods may be equallyappropriateforarriving at fair compensation.', 27793:'the use of business judgment, as distinguished from strict accounting principles, is the heart of a settlement. b the primary', 27794:'objective is to negotiate a settlement by agreement. the parties may agree upon a total amount to be paid the', 27795:'contractor without agreeing on or segregating the particular elements of costs or profit comprising this amount. c cost and accounting', 27796:'data may provide guides, but are not rigid measures, for ascertaining fair compensation. in appropriate cases, costsmay be estimated, differences', 27797:'compromised, and doubtful questions settled by agreement. other types of data, criteria, or standards may furnish equally reliable guides to', 27798:'fair compensation. the amount of recordkeeping, reporting, and accounting related to the settlement of terminated contracts should be kept to', 27799:'a minimum compatible with the reasonable protection of the public interest. 49.202 profit. a the tco shall allow profit on', 27800:'preparations made and work done by the contractor for the terminated portion of the contract but not on the settlement', 27801:'expenses. anticipatory profits and consequential damages shall not be allowed but see 49.1085. profitforthe contractor’s efforts in settling subcontractor proposals', 27802:'shall not be based on the dollar amountof thesubcontract settlement agreements but thecontractor’s efforts will be considered in determining the', 27803:'overall rate of profit allowed the contractor. profit shall not beallowed the contractor for material or services that,as of theeffective', 27804:'date of termination, have not been delivered by a subcontractor,regardless of the percentage of completion. thetco may use any reasonable', 27805:'method to arrive at a fair profit. b in negotiating or determining profit, factors to be considered include 1 extent', 27806:'and difficulty ofthe work done by thecontractor as compared with the total work required bythe contract engineering estimates of the', 27807:'percentage of completion ordinarily should not be required, but if available should be considered; 2 engineering work, production scheduling, planning,', 27808:'technical study and supervision, and other necessary services; 3 efficiency of the contractor,with particular regardto i attainment of quantity and', 27809:'quality production; ii reduction of costs; iii economic use of materials, facilities, and manpower; and iv disposition of termination inventory;', 27810:'4 amount and source of capital and extent of risk assumed; 5 inventive and developmental contributions, and cooperation with the', 27811:'government and other contractors in supplying technical assistance; 6 character of the business, including the source and nature of materials', 27812:'and the complexity of manufacturing techniques; 7 the rate of profit that the contractor would have earned had the contract', 27813:'been completed; 8 the rate of profit both parties contemplated at the time the contract was negotiated; and 9 character', 27814:'and difficultyof subcontracting,including selection, placement, and management of subcontracts, and effort in negotiating settlements of terminated subcontracts. c when computing', 27815:'profit on theterminated portionof aconstruction contract, the contracting officershall 1 comply with paragraphs a and b of this section; 2', 27816:'allow profit on theprimecontractor’ssettlements withconstruction subcontractors for actual work in place atthe job site; and 3 exclude profiton the prime', 27817:'contractor’s settlements with constructionsubcontractors for materials on handand for preparations made to complete the work. 49.203adjustment for loss. a in', 27818:'the negotiation or determination of any settlement, the tco shall not allow profit if it appears that the contractor would', 27819:'have incurred a loss had the entire contract been completed. the tco shall negotiate or determine the amount of loss', 27820:'federal acquisition regulation and make an adjustment in the amount of settlement as specified in paragraph b or c of', 27821:'this section. in estimating the cost to complete, the tco shall consider expected production efficiencies and other factors affectingthe cost', 27822:'tocomplete. b if the settlement is on an inventory basis see 49.2062a, the contractor shall not be paid more than', 27823:'the total of the amounts in paragraphs b1, 2, and 3 of this section, less all disposal credits and all', 27824:'unliquidated advance and progress payments previously made under the contract: 1 the amount negotiated or determined for settlement expenses. 2', 27825:'the contract price, as adjusted, for acceptable completed end items see 49.205. 3 the remainder of the settlement amount otherwise', 27826:'agreed upon or determined including the allocable portion of initial costs see 31.20542c, reduced by multiplying the remainder by the', 27827:'ratio of i the total contract price to ii the total cost incurred before termination plus the estimated cost to', 27828:'complete the entire contract. c if the settlement is on a total cost basis see 49.2062b, the contractor shall not', 27829:'be paid more than the total of the amounts in paragraphs c1 and 2 of this section, less all disposal', 27830:'and other credits, all advance and progress payments, and all other amounts previously paid under the contract: 1 the amount', 27831:'negotiated or determined for settlement expenses. 2 the remainder of the total settlement amount otherwise agreed upon or determined lines', 27832:'7 and 14 of sf 1436, settlement proposal totalcost basis reduced by multiplyingthe remainder by the ratio of i the', 27833:'total contract price to ii the remainder plus the estimated cost to complete the entire contract. 49.204deductions. from the amount', 27834:'payable to the contractor under a settlement, the tco shall deduct a theagreed price for anypart of thetermination inventory purchased', 27835:'or retainedby the contractor, and theproceeds from any materials sold that have not been paid or credited to the government;', 27836:'b the fair value, as determined by the tco, of any part of the termination inventory that, before transfer of', 27837:'title to the government or to a buyer under part 45, is lost or so damaged as to become undeliverable', 27838:'normal spoilage is excepted, as is inventory for which the government has expressly assumed the risk of loss; and c', 27839:'any other amounts as appropriate in the particular case. 49.205completed end items. a promptly after the effective date of termination,', 27840:'the tco shall 1 have all undelivered completed end itemsinspected and accepted if they comply with the contract requirements, and', 27841:'2 determine which accepted end items are to be delivered under the contract. the contractor shall invoice accepted and delivered', 27842:'end items at the contract price in the usual manner and shall not include them in the settlement proposal. when', 27843:'completed end items, though accepted, are not to be delivered under the contract, the contractor shall include them in the', 27844:'settlement proposal at the contract price, adjusted for any saving of freight or other charges, together with any creditsfortheir purchase,retention,', 27845:'or sale. b work inplace accepted by the government under a construction contract is notconsidered a completed item even though', 27846:'that work may have been paid for at unit prices specified in the contract. 49.206 settlement proposals. 49.2061submission of settlement', 27847:'proposals. a subject to the provisions of the termination clause, the contractor should promptly submit to the tco a settlement', 27848:'proposal for the amount claimed because of the termination. the final settlement proposal must be submitted within oneyear from the', 27849:'effective date of the termination, unless the period isextended by thetco. termination charges under a single prime contract involving two', 27850:'or more divisions or units of the prime contractor may be consolidated and included in a single settlement proposal. b', 27851:'the settlement proposal must cover all cost elements including settlements with subcontractors and any proposed profit. with the consent ofthe', 27852:'tco, proposals maybe filed in successive steps coveringseparate portions of thecontractor’s costs. such interim proposals shall include all costs of', 27853:'a particular type, except as the tco may authorize otherwise. c settlement proposals must be on the forms prescribed in', 27854:'49.602 unless the forms are inadequate for a particular contract. settlement proposals must be in reasonable detail supported by adequate', 27855:'accounting data. actual, standard appropriately adjusted, or average costs may be used in preparing settlement proposals if they are determined', 27856:'under subpart 49.2 additional principles for fixedprice contracts terminated for convenience 49.2062 generallyrecognizedaccounting principles consistently followed by the contractor. when', 27857:'actual, standard, or average costs are not reasonably available, estimated costs may be used if the method of arriving at', 27858:'the estimates is approved by the tco. contractors shall not be required to maintain unduly elaborate cost accounting systems merely', 27859:'because their contracts may subsequently be terminated. d the contractor may use the settlement proposal short form, sf 1438 see', 27860:'49.6021d and 53.249, when the total proposal is less than $10,000, unless otherwise instructed by the tco. settlement proposals that', 27861:'would normally be included in a single settlement proposal; e.g., those based on a series of separate orders for the', 27862:'same item under one contract, should be consolidated whenever possible and not divided to bring them below $10,000. e the', 27863:'schedule of accounting information, sf 1439, must be submitted for each termination under a contract for which a settlement proposal', 27864:'is submitted, except when the standard form 1438 is used. although several interim proposals may be submitted, sf 1439 need', 27865:'be submitted only once unless, subsequent to filing the original form, major changes occur in the information submitted. 49.2062bases for', 27866:'settlementproposals. a inventory basis. 1 use of the inventory basis for settlement proposals is preferred. under this basis, the contractor', 27867:'may propose only costs allocable to the terminated portion of the contract, and the settlement proposal must itemize separately i', 27868:'metals, raw materials, purchased parts, work in process, finished parts, components, dies, jigs, fixtures, and tooling, at purchase or manufacturing', 27869:'cost; iicharges such as engineering costs, initial costs, andgeneral administrative costs; iii costs of settlements with subcontractors; iv settlement expenses;', 27870:'and v otherproper charges. 2 an allowance for profit 49.202 or adjustment for loss 49.203b must be made to complete', 27871:'the gross settlement proposal. all unliquidated advance and progress payments and all disposal and other credits known when the proposal', 27872:'is submitted must then be deducted. 3 this inventory basis is also appropriate for use under the following circumstances: i', 27873:'the partial termination of a construction or related professional services contract. ii the partial or complete termination of supply orders', 27874:'under any terminated construction contract. iii the complete termination of a unitprice as distinguished from a lumpsum professional services contract.', 27875:'b total cost basis. 1 when use of the inventory basis is not practicable or will unduly delay settlement, the', 27876:'totalcost basis sf 1436 may be used if approved in advance by the tco as in the following examples: i', 27877:'if production has not commenced and the accumulated costs represent planning and preproduction or get ready expenses. iiif, under the', 27878:'contractor’s accounting system, unit costs for work in processand finished products cannot readily be established. iii if the contract does', 27879:'not specify unit prices. iv if the termination is complete and involves a letter contract. 2 when the totalcost basis', 27880:'is used under a complete termination, the contractor must itemize costs incurred under thecontract upto the effective date of termination.', 27881:'the costsof settlements with subcontractors and applicable settlement expenses must also be added. an allowance for profit 49.202 or adjustment', 27882:'for loss 49.203c must be made. the contract price for all end items delivered or to be delivered and accepted', 27883:'must be deducted. all unliquidated advance and progress payments and disposal and other credits known when the proposal is submitted', 27884:'must also be deducted. 3 when the totalcost basis is used under a partial termination, the settlement proposal shall not', 27885:'be submitted until completion of the continued portion of the contract. the settlement proposal must be prepared as in paragraph', 27886:'b2 of this section, except that all costs incurred to the date of completion of the continued portion of the', 27887:'contract must be included. 4 if a construction contract or a lumpsum professional services contract is completely terminated, the contractor', 27888:'shall i use the total cost basis of settlement; ii omit line 10 deductfinished product invoiced or to be invoiced', 27889:'from section ii of sf 1436 settlement proposal total cost basis; and iii reduce the gross amount of the settlement', 27890:'by the total of all progress and other payments. 49.2063 federal acquisition regulation c other basis. settlement proposals may not', 27891:'be submitted on any basis other than paragraph a or b of this section without the priorapproval of thechief of', 27892:'the contracting or contract administration office. 49.2063 submission of inventory disposal schedules. subject to the terms of the termination clause,', 27893:'and whenever termination inventory is involved, the contractor shall submit complete inventory disposal schedules to the tco reflecting inventory that', 27894:'is allocable to the terminated portion of the contract. the inventory disposal schedules shall be submitted within 120 days fromthe', 27895:'effective date of terminationunless otherwise extended by the tco based on a written justification to support the extension. the inventory', 27896:'schedules shall be prepared on standard form 1428, inventory disposal schedule. 49.207limitation on settlements. the total amount payable to the', 27897:'contractor for a settlement, before deducting disposal or other credits and exclusive of settlement costs, must not exceed the contract', 27898:'price less payments otherwise made or to be made under the contract. 49.208equitable adjustment after partial termination. under the termination', 27899:'clause, after partial termination, a contractor may request an equitable adjustment in the price or prices of the continuedportion of', 27900:'a fixedprice contract. the tco shall forward the proposal tothe contracting officer except when negotiation authority is delegated to the', 27901:'tco. the contractor shall submit the proposal in the format of table 151 of 15.408. a when thecontracting officer retainsresponsibility', 27902:'for negotiating theequitable adjustment andexecuting a supplemental agreement, thecontracting officer shall ensure that no portion ofan increase in price is', 27903:'included ina termination settlement made or in process. b the tco shall also ensure that no portion of the costs', 27904:'included in the equitable adjustment are included in the termination settlement. subpart 49.3additionalprinciples for costreimbursementcontractsterminatedfor convenience 49.3035 subpart 49.3 additional', 27905:'principles for cost reimbursement contracts terminated for convenience 49.301general. terminationclauses for costreimbursement contracts see 49.503a provide for the settlementof costs', 27906:'and fee, if any. the contract clauses governing costs shall determine what costs are allowable. 49.302discontinuance of vouchers. a when', 27907:'the contract has been completely terminated, the contractor shall not use standard form 1034 public voucher for purchases and services', 27908:'other than personal after the last day of the sixth month following the month in which the terminationis effective. the', 27909:'contractormay electto stop using vouchersat anytime duringthe 6month period. when the contractor has vouchered out all costs within the 6monthperiod,', 27910:'a proposal for fee,if any, may be submittedon sf 1437 see 49.6021 or by letter appropriately certified. the contractor must', 27911:'submit a substantiated proposal for fee to the tco within 1 year from theeffective date oftermination, unless the period is', 27912:'extendedby the tco. when theuse of vouchers is discontinued, the contractor shall submitall unvouchered costs and the proposedfee, ifany, as', 27913:'specifiedin 49.303. b when the contract is partially terminated, 49.304 shall apply. 49.303 procedure afterdiscontinuing vouchers. 49.3031submission of settlement proposal.', 27914:'the contractor shall submit a final settlement proposal covering unvouchered costs and any proposed fee to within 1 year from', 27915:'the effective date of termination, unless the period is extended bythe tco. thecontractor shall usethe form prescribed in 49.6021, unless', 27916:'the tco authorizes otherwise. the proposal shall not include costs that have been a finally disallowedby the contracting officer; or', 27917:'b previously vouchered and formally questioned by the government but not yet decided asto allowability. 49.3032 submission of inventory disposal', 27918:'schedules. subject to the terms of the termination clause, and whenever termination inventory is involved, the contractor shall submit complete', 27919:'inventory disposal schedules to the tco reflecting inventory that is allocable to the terminated portion of the contract. the inventory', 27920:'disposal schedules shall be submitted within 120 days fromthe effective date of terminationunless otherwise extended by the tco based on', 27921:'a written justification to support the extension. the inventory disposal schedules shall be prepared on standard form 1428 inventory disposal', 27922:'schedule. 49.3033audit of settlement proposal. the tco shall submit the settlement proposal to the appropriate audit agency for review see', 27923:'49.107. however, if the settlement proposal is limited to an adjustment of fee, no referral to the audit agency is', 27924:'required. 49.3034adjustmentof indirect costs. a if the contract contains the clause at 52.2167, allowable cost and payment, and it appears', 27925:'that adjustment of indirect costs will unduly delay final settlement, the tco,after obtaining information from the appropriate auditagency,may agree with', 27926:'the contractor to 1 negotiate the amount of indirect costs for the contract period for which final indirect cost rates', 27927:'have not been negotiated, or to use billing rates as final rates for this period if the billing rates appear', 27928:'reasonable; or 2 reserve any indirect cost adjustment in the final settlement agreement, pending establishment of negotiated rates under subpart', 27929:'42.7. b when an amount of indirect cost is negotiated under paragraph a1 of this section, the contractor shall eliminate', 27930:'the indirect cost and the related direct costs on which it was based from the total pool and base used', 27931:'to compute indirect costs for other contracts performed during the applicable accounting period. 49.3035 final settlement. a the tco shall', 27932:'proceed with the settlement and execution of a settlement agreement upon receipt of the audit report, if applicable, and the', 27933:'contract audit closing statement covering vouchered costs. b the tco shall adjust the fee as provided in 49.305. federal acquisition', 27934:'regulation c the final settlement agreement may include all demands of the government and proposals of the contractor under the', 27935:'terminated contract. however, no amount shall be allowedforanyitem ofcost disallowed by thegovernment,nor for any other item of cost of the', 27936:'same nature. d if an overall settlementof costs is agreed upon, agreement on each element of costis not necessary. if', 27937:'appropriate, differences may be compromised and doubtful questions settled byagreement. anoverall settlement shall not include costs that are clearly not', 27938:'allowable under the terms of the contract. 49.304 procedure for partial termination. 49.3041 general. a ina partial termination, thetco shall', 27939:'limit the settlement toan adjustment of the fee, if any, and with the concurrence of the contracting officeto a reduction', 27940:'in the estimated cost. the tco shall adjust the fee as provided in 49.3042 and 49.305, unless 1 the terminated', 27941:'portion is clearly severable from the balance of the contract; or 2 performance of the contract is virtually complete, or', 27942:'performance of any continued portion is only on subsidiary items or spare parts, or is otherwise not substantial. b in', 27943:'the case of the exceptions in paragraph a, the procedures in 49.302 and 49.303 apply. 49.3042submission of settlement proposalfee only.', 27944:'the contractor shall limit the settlement proposal to a proposed reduction in the amount of fee. the final settlement proposal', 27945:'shall be submitted to the tco within oneyear from the effective date of termination, unless the period is extended by', 27946:'the tco. the proposal may be submitted in the form prescribed in 49.6021 or by letter appropriately certified. the contractor', 27947:'shall substantiate the amount of fee claimed see 49.305. 49.3043 submission of vouchers. when a partial termination settlement is limited', 27948:'to adjustment of fee, the contractor shall continue to submit the sf 1034, public voucherforpurchases andservices other than personal, for', 27949:'costs reimbursable underthe contract. the contractor shall not be reimbursed for costs of settlements with subcontractors unless required approvals or', 27950:'ratifications have been obtained see 49.108. 49.305adjustment of fee. 49.3051 general. a thetco shall determinethe adjusted fee to be paid,', 27951:'if any, inthe mannerprovided bythe contract. the determination is generally based on a percentage of completion of the contract or', 27952:'of the terminated portion. when this basis is used, factors such as theextent and difficulty of the work performed bythe', 27953:'contractor e.g., planning, scheduling,technicalstudy, engineering work, production and supervision, placing and supervising subcontracts, and work performed by the contractor in', 27954:'1 stopping performance, 2 settling terminated subcontracts, and 3 disposing of termination inventory shall be compared with the total work', 27955:'required bythe contract or by the terminatedportion. the contractor’s adjusted feeshallnot include an allowance for fee for subcontract effortincluded insubcontractors’', 27956:'settlementproposals. b the ratio of costs incurred to the total estimated cost of performing the contract or the terminated portion', 27957:'is only one factor in computing the percentage of completion. this percentage may be either greater or less than that', 27958:'indicated by the ratio of costs incurred, depending upon the evaluation by the tco of other pertinent factors. 49.3052 construction', 27959:'contracts. a thepercentage of completion basis refers to the contractor’s total effort and not solely tothe actualconstruction work. generally,the effort', 27960:'ofa contractorunder a costreimbursement construction or professional services contract can be segregated into factors such as 1 mobilization including organization,', 27961:'2 use of finances, 3 contracting for and receipt of materials, 4 placement of subcontracts, 5 preparation of shop drawings,', 27962:'subpart 49.3additionalprinciples for costreimbursementcontractsterminatedfor convenience 49.3052 6 work inplace performedby own forces, 7 supervision of subcontractors’ work, 8 job administration,', 27963:'and 9 demobilization. b each of the applicable factors in paragraph a of this section shall be assigned a weighted', 27964:'value depending on itsimportance and difficulty. the total weight value of all factors should be easily divisible e.g., by 100', 27965:'to determine percentages. the percentage of completion of each factor must be established based upon the specific facts of each', 27966:'contract. when totaled, the percentage of completion of each factor applied to the weighted value of each factor results in', 27967:'the overall percentage of contract completion. the percentage of completion is then applied to the total contract fee or to', 27968:'the fee applicable to the terminated portion of the contract to arrive at an equitable adjustment. this page intentionally left', 27969:'blank. 49.34 subpart 49.4 termination for default 49.4022 subpart 49.4 termination for default 49.401general. a termination for default is generallythe', 27970:'exerciseof the government’s contractual rightto completely or partially terminate a contract because of the contractor’sactual or anticipated failure to perform', 27971:'its contractual obligations. b if the contractor can establish, or it is otherwise determined that the contractor was not in', 27972:'default or that the failure to perform is excusable; i.e., arose out of causes beyond thecontrol and withoutthe fault or', 27973:'negligence of the contractor,the default clauses prescribed in 49.503 and located at 52.249 provide that a termination for default will', 27974:'be considered to have been a termination for the convenience of the government, and the rights andobligations ofthe parties governedaccordingly.', 27975:'c thegovernment may, in appropriate cases, exercisetermination or cancellation rightsin addition to those inthe contract clauses see for example, paragraph', 27976:'h of the default clause at 52.2498. d for default terminations of orders under federal supply schedule contracts, see subpart', 27977:'8.4. e notwithstanding the provisions of this 49.401, the contractingofficer may, with the written consentof the contractor, reinstate the terminated', 27978:'contract by amending the notice of termination, after a written determination is made that the supplies or services are still', 27979:'required and reinstatement is advantageous to the government. 49.402 termination of fixedprice contracts for default. 49.4021the government’s right. under contracts', 27980:'containing the default clause at 52.2498, the government has the right, subject to the notice requirements of the clause, to', 27981:'terminate the contract completely or partially for default if the contractor fails to a make delivery of the supplies or', 27982:'perform the services within the time specified in the contract, b perform any other provision of the contract, or c', 27983:'make progress and that failure endangers performance of the contract. 49.4022 effect of termination for default. a under a terminationfordefault,', 27984:'the government is notliable for thecontractor’scosts on undelivered work and is entitled to therepayment of advance andprogresspayments, if any,applicable to', 27985:'thatwork. the government may elect, under the default clause, to require the contractor to transfer title and deliver to the', 27986:'government completed supplies and manufacturing materials, as directed by the contracting officer. b the contractingofficer shall not use the default', 27987:'clauseas authority to acquire anycompleted supplies or manufacturing materials unless it has been ascertained that the government does not already', 27988:'have title under some other provisionof the contract. the contractingofficer shall acquire manufacturing materialsunder thedefault clause for furnishing to another', 27989:'contractor onlyafter considering the difficultiesthe other contractor may have in using the materials. c subject to paragraph d of this', 27990:'section, the government shall pay the contractor the contract price for any completed supplies, and the amount agreedupon by the', 27991:'contracting officer and the contractor for any manufacturing materials, acquired by the government under the default clause. d the government', 27992:'must beprotected from overpayment that might result fromfailureto provide for the government’s potential liability to laborers and material suppliers for', 27993:'lien rights outstanding against the completed supplies or materials after the government has paid the contractor for them. to accomplish', 27994:'this, before paying for supplies or materials, the contracting officershalltake one or more of the followingmeasures: 1 ascertain whether the', 27995:'payment bonds,if any, furnished by the contractor areadequate to satisfy all lienors’ claims or whether it is feasible to obtain', 27996:'similar bonds to cover outstanding liens. 2 require the contractor to furnish appropriate statements from laborers and material suppliers disclaiming', 27997:'any lien rights they may have to the supplies and materials. 3 obtainappropriate agreement by thegovernment, the contractor, and lienors', 27998:'ensuring releaseof the government from any potential liability to the contractor or lienors. 4 withhold from the amount due for', 27999:'thesupplies ormaterials any amount the contracting officer determines necessary to protectthe government’s interest, butonlyif the measures in paragraphs d1, 2,', 28000:'and 3 of this section cannotbe accomplished or are considered inadequate. 5 takeother appropriate actionconsidering the circumstancesand the degree of', 28001:'thecontractor’ssolvency. e the contractor is liable to the government for any excess costs incurred in acquiring supplies and services similar', 28002:'to those terminated for default see 49.4026, and for any other damages, whether or notrepurchase is effectedsee 49.4027. 49.4023 federal', 28003:'acquisition regulation 49.4023procedure for default. a when a default termination is being considered, the government shall decide which type of', 28004:'termination action to take i.e., default, convenience, or nocost cancellation only after review by contracting and technical personnel, and by', 28005:'counsel, to ensure the propriety of the proposed action. b the administrative contractingofficer shall not issue a show cause noticeor', 28006:'cure notice without the priorapproval of thecontracting office, which should be obtained bythe most expeditious means. c subdivision a1i of', 28007:'the default clause covers situations when the contractor has defaulted by failure to make delivery of the supplies or to', 28008:'perform the services within the specified time. in these situations, no notice of failure or of the possibility of termination', 28009:'for default is required to be sent to the contractor before the actual notice of termination but see paragraph e', 28010:'of this section. however, if the government has taken any actionthat might be construed as a waiverof the contract deliveryor', 28011:'performance date,the contracting officer shall send a notice to the contractor setting a new date for the contractor to make', 28012:'deliveryor complete performance. the notice shall reservethe government’s rights under the default clause. d subdivisions a1ii and a1iii of the', 28013:'default clause cover situations when the contractor fails to perform some of the other provisions of the contract such as', 28014:'not furnishing a required performance bond or so fails to make progress as to endanger performanceof the contract. if the', 28015:'termination is predicated uponthis type of failure, the contracting officer shall give the contractor written notice specifying the failure and', 28016:'providing a period of 10 days or longer period as necessary in which to cure the failure. when appropriate, this', 28017:'notice may be made a part of the notice described in paragraph e1 of this section. uponexpiration of the 10', 28018:'days or longer period, thecontracting officer may issuea notice of termination for default unless it is determined that the failure', 28019:'to perform has been cured. a format for a cure notice is in 49.607. e 1ifterminationfordefaultappearsappropriate,thecontractingofficershould,ifpracticable,notifythecontractor in writing of the', 28020:'possibilityof the termination. this noticeshallcall the contractor’s attention to the contractual liabilities if the contract is terminated for default, and', 28021:'request the contractor to show cause why the contract should not be terminated for default. the notice may further state', 28022:'that failure of the contractor to present an explanation may be taken as an admission that no valid explanation exists.', 28023:'when appropriate, the notice may invite the contractor to discuss the matter at a conference. a format for a show', 28024:'cause notice is in 49.607. 2 when atermination for default appears imminent, the contracting officershallprovide awritten notification to the surety.', 28025:'if the contractor is subsequently terminated for default, a copy of the notice of default shall be sent to the', 28026:'surety. 3 if requested by the surety, and agreedto by the contractor and any assignees, arrangementsmay be made to have', 28027:'future checks mailed to the contractor in careof the surety. in thiscase, the contractor must forward a written request tothe', 28028:'designated disbursing officer specifically directing a change in addressformailingchecks. 4 if the contractor isa small business firm, the contracting officer', 28029:'shall immediately provide a copy of any cure notice or show cause notice tothe contracting office’s small business specialist and', 28030:'the small business administration area office nearestthe contractor. the contracting officer should, wheneverpracticable, consultwith the small business specialist before proceeding', 28031:'with a default termination see also 49.4024. f the contracting officer shall consider the following factors in determining whether toterminatea', 28032:'contract for default: 1 the terms of the contract and applicable laws and regulations. 2 the specific failure of the', 28033:'contractor and the excuses for the failure. 3 the availability of the supplies or services from other sources. 4 the', 28034:'urgency of the need for the supplies or services and the period oftime required to obtain them from other sources,as', 28035:'compared withthe time delivery could beobtained from the delinquentcontractor. 5 the degree of essentiality of the contractor in thegovernmentacquisition program', 28036:'and the effect of a termination for default uponthe contractor’s capability as a supplier under other contracts. 6 the effect', 28037:'of a terminationfordefault onthe abilityof the contractorto liquidate guaranteed loans,progress payments, or advance payments. 7 any other pertinent facts and', 28038:'circumstances. g if, after compliance with the procedures in paragraphs a through f of this 49.4023, thecontracting officer determines that', 28039:'a termination for default is proper, the contracting officer shall issue a notice of termination stating 1 the contract number', 28040:'and date; 2 the acts or omissions constituting the default; 3 that the contractor’s right toproceed further under the contract', 28041:'or a specified portionof the contract is terminated; 4 that the supplies or services terminatedmay be purchasedagainst thecontractor’saccount, and that', 28042:'the contractor will be held liable for any excess costs; subpart 49.4 termination for default 49.4026 5 if the contracting', 28043:'officer has determined that thefailureto perform isnot excusable,that the notice of termination constitutes such decision, and that the contractor has', 28044:'the right to appeal such decision under the disputes clause; 6 that the government reservesallrights and remedies provided by law', 28045:'or under the contract, in additionto charging excess costs; and 7 that the notice constitutes a decision that the contractor', 28046:'is in default as specified and that the contractor has the right to appeal under the disputes clause. h the', 28047:'contractingofficer shall make the same distribution of the termination notice aswas made of the contract. a copy shall also be', 28048:'furnished to the contractor’s surety, if any, when the notice is furnishedto the contractor. the surety should berequested to advise', 28049:'if it desires to arrange for completion of the work. in addition, the contractingofficer shall notify thedisbursingofficer to withhold furtherpaymentsunder', 28050:'theterminated contract, pending further advice, whichshouldbe furnished at the earliest practicable time. iin the case ofa construction contract, promptlyafter issuanceof', 28051:'the termination notice, the contractingofficer shall determine the manner in which the work is to be completed and whether the', 28052:'materials, appliances, and plant that are on the site will be needed. jif the contractingofficer determines before issuing thetermination notice', 28053:'that the failure to perform is excusable, thecontract shall not be terminated for default. if termination is in the government’s', 28054:'interest, thecontracting officer may terminate the contract for the convenience of the government. k if the contracting officer has not', 28055:'been able to determine, before issuance of the notice of termination whether the contractor’s failure toperform is excusable, the contractingofficer', 28056:'shall make awritten decision onthat point as soonas practicable after issuance of the notice of termination. the decision shall be', 28057:'delivered promptly to the contractor with a notification that the contractor has the right to appeal as specified in the', 28058:'disputes clause. 49.4024procedure in lieuof terminationfor default. the following coursesof action, among others,are available tothe contracting officerin lieu of termination', 28059:'for default when in the government’s interest: a permit thecontractor, the surety, or the guarantor, to continue performance of the', 28060:'contract undera reviseddelivery schedule. b permit the contractor to continue performance of the contract by means of a subcontract or', 28061:'other business arrangement with an acceptable third party, providedthe rightsof the government are adequately preserved. c if the requirement for', 28062:'the supplies and services in the contract no longer exists, and the contractor is not liable to the government for', 28063:'damages as provided in 49.4027, execute a nocost termination settlement agreement using the formats in 49.6036 and 49.6037 as a', 28064:'guide. 49.4025memorandum by thecontracting officer. when a contract is terminated for default or a procedure authorized by 49.4024 is followed,', 28065:'the contractingofficer shall prepare a memorandum for the contract file explaining the reasons for the action taken. 49.4026repurchase against contractor’s', 28066:'account. a when thesupplies orservices are still required after termination, the contracting officer shall repurchasethe same or similar supplies or', 28067:'services againstthe contractor’s accountas soon as practicable. the contracting officer shall repurchase at as reasonable aprice as practicable,considering the quality', 28068:'and delivery requirements. thecontracting officer may repurchase a quantity in excess of the undelivered quantity terminated for default when the', 28069:'excess quantity is needed, but excess cost may notbe charged against the defaulting contractor for more thanthe undelivered quantityterminated for', 28070:'default including variations in quantitypermitted by the terminatedcontract. generally,the contracting officer will make adecision whether or not to repurchase before', 28071:'issuing the termination notice. b if the repurchase is for a quantity not over the undelivered quantity terminated for default,', 28072:'the default clause authorizes thecontracting officer touse any terms and acquisition method deemedappropriateforthe repurchase. however, thecontracting officer shall obtain competition', 28073:'to the maximum extent practicable for the repurchase. the contracting officer shall cite the default clauseas the authority. ifthe repurchase', 28074:'is for aquantity over theundelivered quantity terminated for default, the contractingofficer shall treat the entire quantity as a new acquisition.', 28075:'c if repurchase is madeat a price over theprice of thesupplies orservices terminated, the contracting officer shall, after completion and', 28076:'final payment of the repurchase contract, make written demand on the contractor for the total amount of the excess, giving', 28077:'consideration to any increases or decreases in other costs such as transportation, discounts, etc. if the 49.4027 federal acquisition regulation', 28078:'contractorfailstomakepayment,thecontractingofficershallfollowtheproceduresin subpart 32.6 for collecting contract debts due the government. 49.4027 other damages. a if the contracting officerterminates a contractfordefaultor', 28079:'follows a course ofaction instead oftermination for default see 49.4024, the contractingofficer promptly must assess and demandanyliquidated damages to which', 28080:'the government is entitled under the contract. under the contract clause at 52.21111, these damages are in addition to any', 28081:'excess repurchase costs. b if the government has suffered any other ascertainable damages, including administrative costs, asa result of the', 28082:'contractor’s default, the contractingofficer must, on the basis oflegal advice, take appropriate action asprescribed in subpart 32.6 to assert the', 28083:'government’s demand for the damages. 49.4028 reporting information. the contractingofficer, in accordance with agency procedures, shall ensurethat information relating tothe', 28084:'terminationfor default notice and a subsequent withdrawal or a conversion to a termination for convenience is reported in accordance with', 28085:'42.1503h. 49.403 termination of costreimbursement contracts for default. a theright to terminate a costreimbursement contract for default is provided for', 28086:'inthe terminationfordefault or for convenience of the government clause at 52.2496. a 10day notice to the contractor before termination for', 28087:'default is required in every case by the clause. b settlement of a costreimbursement contract terminated for default is subject', 28088:'to the principles in subparts 49.1 and 49.3 the same as when a contract is terminated for convenience, except that', 28089:'1 the costs of preparing the contractor’s settlement proposal are not allowable seeparagraph h3 of the clause; and 2 the', 28090:'contractoris reimbursed the allowable costs, and an appropriate reduction is made in thetotal fee, if any, see paragraph h4 of', 28091:'the clause. c thecontracting officer shall use the proceduresin 49.402 to the extent appropriate in considering the termination for default', 28092:'of a costreimbursement contract. however, a costreimbursement contract does notcontain anyprovision for recovery of excess repurchase costs after termination for', 28093:'default but see paragraph g of the clause at 52.2463 with respect to failure of the contractor to replace or', 28094:'correct defective supplies. 49.404 suretytakeover agreements. a theprocedures in this section apply primarily, but not solely,to fixedprice constructioncontracts terminatedfor default.', 28095:'b since the surety is liablefordamages resulting fromthe contractor’s default, the suretyhas certainrights and interests in the completionof the contract', 28096:'work and application of any undisbursedfunds. therefore, the contracting officer must consider carefullythe surety’s proposals for completing the contract. the', 28097:'contracting officer must take actionon the basisof thegovernment’s interest, including the possible effect uponthe government’s rights against the surety. c', 28098:'thecontracting officer should permit surety offers tocomplete the contract,unlessthe contracting officerbelieves that the persons or firms proposed by the surety', 28099:'to complete the work are not competent and qualified or the proposal is not in the best interest of the', 28100:'government. d there may beconflicting demands for the defaulting contractor’sassets, including unpaid prior earnings retained percentages and unpaid progress estimates.', 28101:'therefore, the surety may include a takeover agreement in its proposal, fixing thesurety’srights topayment from those funds. thecontracting officer may', 28102:'but not before the effective date of termination enter intoa written agreement with the surety. the contracting officer should consider', 28103:'using a tripartite agreement among thegovernment,the surety, and the defaulting contractor toresolve the defaulting contractor’sresidual rights, including assertions to unpaid', 28104:'prior earnings. e any takeover agreementmust require the surety to complete thecontract andthe government to pay the surety’s costs and', 28105:'expenses up to the balance of the contract price unpaid at the time of default, subject to the following conditions:', 28106:'1 any unpaid earnings of thedefaulting contractor, including retained percentagesandprogress estimates for work accomplishedbefore termination, must besubject to debts due', 28107:'the government by the contractor, except to theextent that subpart 49.4 termination for default 49.406 the unpaid earnings may be', 28108:'used to pay the completing surety its actual costs and expenses incurred in the completion of the work, but not', 28109:'including its payments and obligations under the payment bond given in connection with the contract. 2 the surety is bound', 28110:'by contract terms governing liquidated damages for delays in completion of the work, unless the delays are excusable under the', 28111:'contract. 3 if the contract proceeds have been assigned to a financing institution, the surety must not be paid from', 28112:'unpaid earnings, unless the assignee provides written consent. 4 the contractingofficer mustnot pay the surety morethan the amount it expended', 28113:'completing thework and discharging its liabilities under the defaulting contractor’s payment bond. payments to the surety to reimburse it for', 28114:'discharging its liabilities under the payment bond of the defaulting contractor must be only on authority of imutual agreement among', 28115:'the government, the defaulting contractor, and the surety; ii determination of the comptroller general as to payee and amount; or', 28116:'iii order of a court of competent jurisdiction. 49.405 completion by anothercontractor. if the surety does not arrange for completion', 28117:'of thecontract, the contracting officer normallywill arrange for completion of the work by awarding a new contract based on the', 28118:'same plans and specifications. the new contract may be the result of sealed bidding or anyother appropriate contractingmethod or procedure.', 28119:'the contractingofficer shall exercise reasonable diligence to obtain the lowest price available for completion. 49.406 liquidation of liability. 1the contract', 28120:'provides that the contractor and the surety are liable to the government for resultant damages. the contracting officershalluse all retained', 28121:'percentages of progress payments previously madeto thecontractor and any progress payments due for work completed before the termination to liquidate', 28122:'the contractor’s and the surety’s liability to thegovernment. if the retained and unpaid amounts are insufficient, the contracting officer shall', 28123:'take steps to recover the additional sum from the contractor and thesurety. this page intentionally left blank. 49.46 subpart 49.5', 28124:'contract termination clauses 49.502 subpart 49.5 contract termination clauses 49.501general. this subpart prescribes the principal contract termination clauses. this subpart', 28125:'does not apply to contracts that use the clause at 52.2134, terms and conditionssimplified acquisitions other than commercial productsand commercial', 28126:'services. in appropriate cases, agencies may authorize the use ofspecial purpose clauses, ifconsistent with this chapter. 49.502 termination for convenience', 28127:'of the government. a fixedprice contracts that do not exceed the simplified acquisition threshold short form 1 general use. the', 28128:'contracting officershallinsert the clauseat 52.2491,termination for convenienceof the government fixedprice short form, in solicitations and contracts when a fixedprice contract', 28129:'is contemplated and the contract amount is not expected to exceed the simplified acquisition threshold, except i if use of', 28130:'the clause at 52.2494, termination for convenience of the government services short formis appropriate, ii in contracts for research and', 28131:'development work with an educational or nonprofit institution on a noprofit basis, iii in contracts for architectengineer services, or iv', 28132:'if one of the clauses prescribed or cited at 49.505a or c, is appropriate. 2 dismantling and demolition. if the', 28133:'contract is for dismantling, demolition, or removal of improvements, the contracting officershalluse the clausewith its alternatei. b fixedprice contracts that', 28134:'exceed the simplified acquisition threshold 1 i general use. thecontracting officer shall insert the clause at 52.2492, termination for convenience', 28135:'of the government fixedprice,in solicitations and contracts when a fixedprice contract is contemplated and the contract amount is expected to', 28136:'exceed the simplified acquisition threshold except in contracts for a dismantling and demolition, b research and development work with an', 28137:'educational or nonprofit institution on a noprofit basis, or c architectengineer services; it shall not be used if the clause', 28138:'at 52.2494, termination for convenience of the government services short form, is appropriate see 49.502c, or one of the clauses', 28139:'prescribed or cited at 49.505a or c, is appropriate. 2 construction. if the contract isforconstruction, the contractingofficer shall usethe clause', 28140:'with its alternatei. i partial payments. if the contract is with an agency of the u.s. government or with state,', 28141:'local, or foreign governments or their agencies, and ifthe contracting officerdeterminesthat therequirementto pay interest on excess partial payments is inappropriate,', 28142:'the contractingofficer shall usethe clause with its alternateii. in suchcontracts for construction, thecontracting officer shall use the clause with its', 28143:'alternateiii. ii dismantling and demolition. the contracting officer shall insert the clause at 52.2493,termination for convenience of the government dismantling,', 28144:'demolition, or removal of improvements in solicitations and contracts for dismantling, demolition, or removal of improvements, when a fixedprice contract', 28145:'is contemplated and the contract amount is expected to exceed the simplified acquisition threshold. if the contract is with an', 28146:'agency of the u.s. government or with state, local, or foreign governments or theiragencies, and ifthe contracting officer determines that', 28147:'therequirementto pay interest on excess partial payments is inappropriate, the contracting officer shall use the clause with its alternatei. c', 28148:'service contracts short form. thecontracting officer shall insert the clause at 52.2494, terminationforconvenience of the government services short form, in', 28149:'solicitations and contracts for services, regardless of value, when a fixedprice contract is contemplated andthe contracting officer determines that because', 28150:'ofthe kind of services required, the successful offeror will not incur substantial chargesin preparation for and in carrying out the', 28151:'contract, and would, if terminated for the convenience of the government,limittermination settlement charges to services rendered before the date oftermination.', 28152:'examples of services where this clause may be appropriate are contracts for rental of unreserved parking space, laundry and dry', 28153:'cleaning, etc. d research and development contracts. the contracting officer shall insert the clause at 52.2495, termination for the convenience', 28154:'of the government educational and other nonprofit institutions, in solicitations and contracts when either a fixedprice or costreimbursement contract is', 28155:'contemplated for research and development work with an educational or nonprofit institution on a nonprofit or nofee basis. e subcontracts', 28156:'1 general use. the prime contractor may find the clause at 52.2491, termination for convenience of the government fixedprice short', 28157:'form, or at 52.2492, termination for convenience of the governmentfixedprice, as appropriate, suitable for use in fixedprice subcontracts, except as', 28158:'noted in paragraph e2 of this section; provided, that federal acquisition regulation the relationship between the contractor and subcontractor is', 28159:'clearly indicated. inapplicable conditions e.g., paragraph d in 52.2492shouldbe deleted and theperiodsreduced for submitting the subcontractor’s terminationsettlement proposal e.g.,6 months,', 28160:'and for requesting an equitable price adjustment e.g.,45 days. 2 research and development. the prime contractor may find the clause', 28161:'at 52.2495, termination for the convenience of the government educational and other nonprofit institutions, suitable for use in subcontracts placed', 28162:'with educational or nonprofit institutions on a noprofit or nofee basis; provided, that the relationship between the contractor and subcontractor', 28163:'is clearly indicated. inapplicable conditions e.g., paragraph h should be deleted, the period for submitting thesubcontractor’s termination settlementproposal should bereduced', 28164:'e.g.,6 months, the subcontract should be placed on a noprofit or nofee basis, and the subcontract should incorporate or be', 28165:'negotiated on the basis of the cost principles in part 31 of the federal acquisition regulation. 49.503 termination for convenience', 28166:'of the governmentand default. a costreimbursement contracts 1 general use. insert the clause at 52.2496, terminationcostreimbursement, in solicitations and contracts', 28167:'when a costreimbursement contract is contemplated, except contracts for research and development with an educational or nonprofit institution on a', 28168:'nofee basis. 2 construction. if the contract isforconstruction, the contractingofficer shall usethe clause with its alternatei. 3 partial payments. if', 28169:'the contract is with an agency of the u.s. government or with state, local, or foreign governments or their agencies,', 28170:'and ifthe contracting officerdeterminesthat therequirementto pay interest on excess partial payments is inappropriate, the contractingofficer shall usethe clause with its', 28171:'alternateii. in suchcontracts for construction, thecontracting officer shall use the clause with its alternateiii. 4 timeandmaterial and laborhour contracts. if', 28172:'the contract is a timeandmaterial or laborhour contract, the contracting officershalluse the clausewith its alternateiv. if the contract is with', 28173:'anagency of the u.s. government or with state, local, or foreign governments or theiragencies, and ifthe contracting officer determines that', 28174:'therequirementto pay interest on excess partial payments is inappropriate, the contracting officer shall use the clause with its alternate v.', 28175:'b insert the clause at 52.2497, termination fixedprice architectengineer,in solicitations and contractsforarchitectengineer services, when a fixedprice contract is contemplated. c', 28176:'subcontracts. the prime contractor may find the clause at 52.2496, termination costreimbursement, suitable for use in costreimbursement subcontracts; provided, that', 28177:'the relationship between the contractor and subcontractor is clearly indicated. inapplicable conditions e.g., paragraphs e, j and n should be', 28178:'deleted and the period for submitting the subcontractor’s termination settlement proposal should be reduced e.g.,6 months. 49.504 termination of fixedprice', 28179:'contracts for default. a 1 supplies and services. the contracting officer shall insert theclause at 52.2498, default fixedprice supply and', 28180:'service, in solicitations and contracts when a fixedprice contract is contemplated and the contract amount is expected to exceedthe simplified', 28181:'acquisition threshold. the contractingofficer may use the clause when the contractamount is at or below the simplified acquisition threshold, if', 28182:'appropriate e.g., if the acquisition involves items with a history of unsatisfactory quality. 2 transportation. if thecontract is for transportation', 28183:'or transportationrelatedservices, the contracting officer shall use the clause with its alternatei. b research and development. the contracting officer shall', 28184:'insert the clause at 52.2499, default fixedprice research and development, in solicitations and contracts for research and development when a', 28185:'fixedprice contract is contemplated and the contract amount is expected to exceed the simplified acquisition threshold, except those with educational', 28186:'or nonprofit institutions on a noprofit basis. the contracting officermay usethe clause when thecontract amount is at or below the', 28187:'simplified acquisition threshold;, if appropriate e.g., if thecontracting officer believesthat key personnel essential to the work may be devoted to', 28188:'other programs. c 1 construction. the contracting officer shall insert theclause at 52.24910, default fixedprice construction, in solicitations and contracts', 28189:'for construction, when a fixedprice contract is contemplated and the contract amount is expected to exceedthe simplified acquisition threshold. the', 28190:'contractingofficer may use the clause when the contractamount is at or below the simplified acquisition threshold, if appropriate e.g., if', 28191:'completion dates are essential. 2 dismantling and demolition. if the contract is for dismantling, demolition, or removal of improvements, the', 28192:'contracting officershalluse the clausewith its alternatei. 3 national emergencies. if the contractis tobe awarded during a period of nationalemergency,the contracting', 28193:'officer may use the clause subpart 49.5 contract termination clauses 49.505 iwith its alternateii when a fixedprice contractforconstruction is contemplated,', 28194:'or iiwithits alternateiiiwhen acontract for dismantling, demolition,or removal ofimprovements is contemplated. 49.505other termination clauses. a personal service contracts. the contracting', 28195:'officer shall insert the clause at 52.24912, termination personal services, in solicitations and contracts for personal services see part 37.', 28196:'b excusable delays. thecontracting officer shall insert the clause at 52.24914, excusable delays, in solicitations and contracts for supplies, services,', 28197:'construction, and research and development on a fee basis, when a costreimbursement contract is contemplated. thecontracting officer shall also insertthe', 28198:'clause in timeandmaterial contracts, andlaborhour contracts. c communication service contracts. this regulation does not prescribe a clause for the cancellation', 28199:'or termination of orders under communication service contracts with common carriers because of special agency requirements that apply to these', 28200:'services. an appropriate clause, however, shall be prescribed at agency level, within those agencies contracting for these services. this page', 28201:'intentionally left blank. 49.54 subpart 49.6 contract termination forms and formats 49.6012 subpart 49.6 contract termination forms and formats 49.601notice', 28202:'of termination for convenience. see 49.4023g for notice of termination for default. 49.6011electronic notice. the contractingofficer may provide expeditednotice of', 28203:'terminationby electronicmeans thatincludes arequirementfor thecontractor to confirm receipt. if the contractor does not confirm receipt promptly, the contracting officer shall', 28204:'resend the notice electronically, and expedite the letter noticedescribed in 49.6012. if confirmation of the electronic notice is received, and', 28205:'the electronic notice includes all content in 49.6012,the contracting officer need not send the letter noticedescribed in 49.6012. a complete', 28206:'termination: the following electronic notice is suggested for use if a supply contract is being completely terminated for convenience. if', 28207:'appropriately modified, the notice may be used for other than supply contracts. date xyz corporation new york, ny 12345 contractno.', 28208:'is completely terminated underclause , effective [insert immediately,today’s date or on , 20, or as soon as you have delivered,', 28209:'including prior deliveries, the following items: list]. immediately stop all work, terminate subcontracts, and place no further orders except to', 28210:'the extent [insert if applicable necessary to complete items not terminated or] that you or a subcontractor wish to retain', 28211:'and continue for your own account any workinprocess or other materials. provide by electronic means similar instructions to allsubcontractors and', 28212:'suppliers. detailed instructions follow. contractingofficer b partial termination:the following electronic notice is suggested for use if a supply contract is', 28213:'being partially terminated for convenience. if appropriately modified, the notice may be used for other than supply contracts. date xyz', 28214:'corporation new york, ny 12345 contractno. is partially terminated under clause , effective [insert immediately, today’s date or on ,', 28215:'20]. reduce items to be delivered as follows: [insert instructions]. immediately stop all work, terminate subcontracts, and place no further', 28216:'orders except as necessary to perform the portion not terminated or that you or a subcontractor wish to retain and', 28217:'continue for your account any workinprocess or other materials. provide by electronic meanssimilar instructions to all subcontractors and suppliers. detailed', 28218:'instructions follow. contractingofficer 49.6012 letter notice. the following letter notice of termination is suggested for use if a contract for', 28219:'supplies is being terminated for convenience. with appropriatemodifications, it may beused in terminating contracts for other thansupplies and in terminatingsubcontracts.', 28220:'this notice shall be sent by certified mail, return receipt requested, or electronically, provided evidence of receipt is received by', 28221:'the contracting officer. if no prior electronicnotice was issued, or if no confirmation of an electronic notice was received, use', 28222:'the alternate notice that follows this notice. notice of termination to prime contractors [at the top of the notice, set', 28223:'out all special details relating to the particular termination; e.g.,name and address of company, contract number of terminated contract, line', 28224:'items, etc.] 49.6012 federal acquisition regulation a effective date of termination. this confirmsthe government’s electronicnotice to you dated , 20,', 28225:'terminating [insert completely or in part] contract no. referred to as the contract for the government’s convenience under the clause', 28226:'entitled [insert title of appropriate termination clause]. the termination is effectiveon the date and in the manner stated in the', 28227:'electronic notice. b cessation of work and notification to immediate subcontractors. you shall takethe following steps: 1 stop all work,', 28228:'make no further shipments, and place no further orders relating to the contract, except for i the continued portion of', 28229:'the contract, if any; iiworkinprocess or othermaterials that you may wish to retain for yourown account;or iii workinprocessthat thecontracting officer', 28230:'authorizes you to continue a for safety precautions, bto clear or avoid damage to equipment, cto avoid immediate complete spoilage', 28231:'of workinprocess having a definite commercial value, or dto prevent any other undue loss to the government. if you believe', 28232:'this authorization is necessary or advisable, immediately notifythe contracting officerby telephone or personal conference and obtain instructions. 2 keep adequate', 28233:'records of your compliance with paragraph b1 of this section showing the idate you received the notice of termination; iieffective', 28234:'date ofthe termination;and iii extent of completion ofperformance on the effective date. 3 furnishnotice of termination to each immediate subcontractor', 28235:'and supplier that will be affected by this termination. in the notice i specify your government contract number; ii state', 28236:'whether the contract has been terminated completely or partially; iii provide instructions to stop all work, make no further shipments,', 28237:'place no further orders, and terminate all subcontracts under the contract, subject to the exceptions in paragraph b1 of this', 28238:'section; iv provide instructions to submit any settlement proposal promptly; and v request that similar notices and instructions be given', 28239:'to its immediate subcontractors. 4 notify the contracting officer ofallpending legal proceedings that are based on subcontracts or purchase orders', 28240:'under the contract, or in which a lien has been or may be placed against termination inventory to be reported', 28241:'to the government. also, promptly notify the contracting officer of any such proceedings thatare filed afterreceipt of this notice. 5', 28242:'takeanyotheraction required by thecontracting officer or under the termination clausein the contract. c termination inventory.1asinstructedby the contracting officer, transfer title', 28243:'anddeliver to thegovernmentall termination inventory of the following types or classes, including subcontractor termination inventory that you have the right', 28244:'to take: [contracting officer insert proper identification or none]. 2 to settle yourproposal, it will be necessary to establish that', 28245:'all prime and subcontractor termination inventory has beenproperlyaccountedfor. fordetailedinformation,see part 45. d settlements with subcontractors. you remain liable toyour subcontractorsandsuppliers', 28246:'for proposals arisingbecause of the termination oftheir subcontracts or orders. you are requested to settle these settlement proposals as promptly', 28247:'as possible. for purposes of reimbursement by the government, settlements will be governed by the provisions of part 49. e', 28248:'completed end items.1 notify the contracting officer of the number of items completedunder thecontract and still on hand and arrange', 28249:'for their delivery or other disposal see 49.205. 2 invoice acceptable completed end items under the contract in the usual', 28250:'way and do not include them in the settlement proposal. f patents. if required by the contract, promptlyforward thefollowing to', 28251:'the contracting officer: 1 disclosure of all inventions, discoveries, and patent applications made in the performance of the contract. 2', 28252:'instruments of license or assignment on all inventions, discoveries, and patent applications made in the performance of the contract. g', 28253:'employees affected.1if this termination, together with other outstanding terminations, will necessitate a significant reduction in yourworkforce, you areurgedto i promptly', 28254:'inform the local state employment service of your reductioninforce schedule in numbers and occupations, so that the service can take', 28255:'timely action in assisting displaced workers; iigive affectedemployees maximum practical advance noticeof the employment reductionand inform them of thefacilities and', 28256:'services available to them through the local state employment service offices; iii advise affected employeesto file applications withthe state employment', 28257:'serviceto qualify for unemployment insurance, if necessary; iv inform officials oflocal unions havingagreements with you of the impending reductioninforce; and', 28258:'subpart 49.6 contract termination forms and formats 49.6024 v inform the local chamber ofcommerceandotherappropriate organizations whichare prepared to offer practical', 28259:'assistance in finding employment for displaced workers of the impending reductioninforce. 2 if practicable, urge subcontractors to take similar actions', 28260:'to those described in paragraph1of this section. h administrative. the contract administrationoffice named in the contract will identify the contracting', 28261:'officer who will bein charge ofthe settlement of this terminationand who will, uponrequest, provide the necessary settlementforms. matters not covered', 28262:'by this notice should be brought to the attention of the undersigned. iplease acknowledge receipt of thisnotice as provided below.', 28263:'contracting officer name ofoffice address acknowledgment of notice the undersigned acknowledges receipt of a signed copy of this notice on', 28264:', 20. two signed copies of this notice are returned. name of contractor by name title end of notice alternate', 28265:'notice. substitute the following paragraph a for paragraph a of 49.6012, notice of terminationto prime contractors, if no prior electronic', 28266:'notice was issued, or if no confirmation of an electronic notice was received: a effective date of termination. you are', 28267:'notified that contract no. referred to as the contract is terminated [insert completely or in part] for the government’s convenience', 28268:'under the clauseentitled [insert title of appropriate termination clause]. the termination is effective [insert either immediately upon receipt of this', 28269:'notice or on , 20, or as soon as you have delivered, including prior deliveries, the following items: list]. reduce', 28270:'items to be delivered as follows: [insert instructions]. 49.602forms for settlement of terminated contracts. the standard forms listed below shall', 28271:'be used for settling terminated prime contracts. the forms at 49.6021 and 49.6012 may also be used for settling terminated', 28272:'subcontracts. a listing of the standard forms is located in subpart 53.3. 49.6021termination settlementproposal forms. a standard form 1435, settlement', 28273:'proposal inventory basis, shall be used to submit settlement proposals resulting from the termination of fixedprice contracts if the proposals', 28274:'are computed on an inventory basis see 49.2062a. b standard form 1436,settlement proposaltotal costbasis, shall be used to submit settlement', 28275:'proposals resulting from the termination of fixedprice contracts if the proposals are computed on a total cost basis see 49.2062b.', 28276:'c standard form 1437, settlementproposal for costreimbursement type contracts, shall be used to submit settlement proposals resulting from the termination', 28277:'of costreimbursement contracts see 49.302. d standard form 1438, settlement proposal short form, shall be used to submit settlement proposals', 28278:'resulting from the termination of fixedprice contracts if the total proposal is less than $10,000 see 49.2061d. 49.6022 inventory forms.', 28279:'standard form sf 1428, inventory disposal schedule, and sf 1429, inventory disposal schedulecontinuation sheet, shall be used to support settlement', 28280:'proposals submitted on the forms specified in 49.6021b and d. 49.6023 schedule of accounting information. standard form 1439, schedule of', 28281:'accounting information, shall be filed in support of a settlement proposal unless the proposal is filed on standard form 1438,', 28282:'settlement proposal short form see 49.2061e. 49.6024 partial payments. standard form 1440, application for partial payment, shall be used to', 28283:'apply for partial payments see 49.1121. 49.6025 federal acquisition regulation 49.6025settlementagreement. standard form30 sf 30, amendment of solicitation/modification of contract,', 28284:'shall be used to execute a settlement agreement see 49.1091. 49.603 formatsfor terminationfor conveniencesettlementagreements. the formats to be used for', 28285:'termination for convenience settlement agreements should be substantially as shown in this section see 49.109. terminationcontracting officers tco’s may,however,modify thecontents', 28286:'of these agreements to conform with special termination clauses prescribed or authorized by their agencies e.g., see 49.501 and 49.505c.', 28287:'49.6031 fixed price contractscomplete termination. [insert the following in block 14 of sf 30 for settlements of fixedprice contracts completely', 28288:'terminated.] a this supplemental agreement settles thesettlement proposal resulting from the notice of termination dated . b the parties agree', 28289:'to the following: 1 the contractor certifies that all contract termination inventory including scrap has been retained or acquired by', 28290:'thecontractor, sold tothird parties, returned to suppliers, delivered to or stored for thegovernment, or otherwise properly accounted for, and thatall', 28291:'proceeds and retention creditshavebeenused in arriving at this agreement. 2 the contractor certifies thateach immediate subcontractor, whose settlement proposal is', 28292:'included in the proposal settled by this agreement, has furnished the contractor a certificate stating ithat all subcontract termination inventory', 28293:'including scrap has been retained or acquiredby the subcontractor, sold to third parties, returned to suppliers, deliveredto or stored for', 28294:'the government, or otherwise properly accounted for, and that all proceeds and retention credits were used in arriving at the', 28295:'settlement of the subcontract, and ii that the subcontractor has received a similar certificate from each immediate subcontractor whose proposal', 28296:'was included in its proposal. 3 the contractorcertifies that all items of termination inventory, the costs of whichwere used in', 28297:'arriving atthe amount of this settlement or the settlement of any subcontract settlement proposal included in this settlement, i are', 28298:'properly allocable to the terminated portion of the contract, iido not exceed the reasonable quantitative requirements of the terminated portion', 28299:'of the contract, and iiido not include any items reasonably usable without loss to the contractor on its other work.', 28300:'the contractor further certifies that the contracting officer hasbeeninformed of any substantial change in the status of the items between', 28301:'the dates of the termination inventory schedules and the date of this agreement. 4 the contractor transfers,conveys, and assignsto the', 28302:'government all the right, title, and interest, if any, that the contractor has received, or is entitled to receive, in', 28303:'and to subcontract termination inventory not otherwise properly accounted for. 5 the contractor shall, within 10 days after receipt of', 28304:'the payment specified in this agreement, pay to each of its immediate subcontractors or their respective assignees the amounts to', 28305:'which they are entitled, after deducting any prior payments and, if the contractor so elects, any amounts due and payable', 28306:'to the contractor by those subcontractors. 6i the contractor has received $ for work and services performed, or items delivered,', 28307:'under the completedportion of the contract. the government confirmsthe right of the contractor, subject to paragraph 7 of this section,', 28308:'to retain this sum and agrees that it constitutes a portion of the total amount to which the contractor is', 28309:'entitled in complete and final settlement of the contract. iifurther, thegovernment agrees to pay to the contractor or its assignee,', 28310:'uponpresentation of a proper invoice or voucher, the sum of $ [insert net amount of settlement], arrived at by deducting', 28311:'from the sum of $ [for proposals on an inventory basis insert gross amount of settlement; for proposals on a', 28312:'total cost basis, insert gross amount of settlement less amount shown in subdivision6i of this subsection] a the amount of', 28313:'$ for all unliquidated partial or progress payments previously made to the contractor or its assignee and all unliquidated advance', 28314:'payments with any interest, b the amount of $ for all applicable property disposal credits [insert if appropriate, and c', 28315:'the amount of $ for all other amounts due the government under this contract, except as provided in paragraph 7', 28316:'of this section.] iii the net settlement of $ in subdivisioniiof this section, together with sums previously paid, constitutes payment', 28317:'in full and complete settlement of the amount due the contractor for the complete termination of the contract and all', 28318:'other demands and liabilities of the contractor and the government under the contract, except as provided in paragraph b7 of', 28319:'this section. subpart 49.6 contract termination forms and formats 49.6032 7 regardless of any other provision of this agreement, the', 28320:'following rights and liabilities of the parties under the contract are reserved: [the following list of reserved or excepted rights', 28321:'and liabilities is intended to cover those that should most frequently be reserved and that should be scrutinized at the', 28322:'time a settlement agreement is negotiated see 49.1092. the suggested language of the excepted items on the list may be', 28323:'varied at the discretion of the contracting officer. if accuracy or completeness can be achieved by referencing the number of', 28324:'a contract clause or provision covering the matter in question, then follow that method of enumerating reserved rights and liabilities.', 28325:'omit any of the following that are not applicable and add any additional exceptions or reservations required.] iall rights and', 28326:'liabilities, if any, of the parties, as to matters covered by any renegotiation authority. iiall rights ofthe government to take', 28327:'thebenefitof agreementsor judgmentsaffecting royalties paid orpayable in connection with the performance of the contract. iii all rights and liabilities,if any,', 28328:'of theparties under those clausesinserted in the contract because of the requirements of acts of congress and executive orders, including,', 28329:'without limitation, any applicable clauses relating to: labor law,contingent fees, domestic articles,and employment of aliens. [if the contract contains clauses', 28330:'of this character inserted for reasons other than requirements of acts of congress or executive orders, the suggested language should', 28331:'be appropriately modified.] iv all rights and liabilities of the parties arising under the contract and relating to reproduction rights,', 28332:'patent infringements, inventions, or applications for patents, including rights to assignments, invention reports, licenses, covenants of indemnity against patent risks,', 28333:'and bonds for patent indemnity obligations, together with all rights and liabilities under the bonds. v all rights and liabilities', 28334:'of the parties, arising under the contract or otherwise, and concerning defects, guarantees, or warranties relating to any articles or', 28335:'component parts furnished to the government by the contractor under the contract or this agreement. vi all rights and liabilities', 28336:'of the parties under the contract relating to any contract termination inventory stored for the government. vii all rights and', 28337:'liabilities of the parties under agreements relating to the future care and disposition by the contractor of governmentowned property remaining', 28338:'in thecontractor’s custody. viii all rights and liabilities of the parties relating to government property furnished to the contractor for', 28339:'the performance of this contract. ix all rights and liabilities of the parties under the contract relating to options except', 28340:'options to continue or increasethe work underthe contract,covenants notto compete, and covenantsof indemnity. x all rights and liabilities, if any,', 28341:'ofthe parties under those clauses of the contractrelatingto price reductions for defective certified cost or pricing data. end of agreement', 28342:'49.6032 fixedprice contractspartial termination. [insert the following in block14 of sf 30 for settlements of fixedprice contracts partially terminated.] a', 28343:'this supplemental agreement settles thesettlement proposal resulting from the notice of termination dated . b the parties agree to the', 28344:'following: 1 the terminated portion of the contract is as follows: [specify the terminated portion clearly as to i line', 28345:'item numbers, ii descriptions, iii quantity terminated, iv unit price of items, v total price of terminated items, and vi', 28346:'any other explanation necessary to avoid uncertainty or misunderstanding]. 2 the contractor certifies that all contract termination inventory including scrap', 28347:'has been retained or acquired by thecontractor, soldto third parties, returned tosuppliers, delivered to or storedforthe government, or otherwise properly', 28348:'accounted for, and thatall proceeds and retention creditshavebeenused in arriving at this agreement. 3 the contractor certifies thateach immediate subcontractor,', 28349:'whose settlement proposal is included in the proposal settled by this agreement, has furnished the contractor a certificate stating 49.6032', 28350:'federal acquisition regulation ithat all subcontract termination inventory including scrap has been retained or acquiredby the subcontractor, sold to third', 28351:'parties, returned to suppliers, deliveredto or stored for the government, or otherwise properly accounted for, and that all proceeds and', 28352:'retention credits were used in arriving at the settlement of the subcontract, and ii that the subcontractor has received a', 28353:'similar certificate from each immediate subcontractor whose proposal was included in its proposal. 4 the contractor certifies thatall itemsof termination', 28354:'inventory, the costsof which were used in arriving at the amount of this settlement or the settlement of any subcontract', 28355:'settlement proposal included in this settlement, i are properly allocable to the terminated portion of the contract, iido not exceed', 28356:'the reasonable quantitative requirements of the terminated portion of the contract, and iiido not include any items reasonably usable without', 28357:'loss to the contractor on its other work. the contractor further certifies that the contracting officer hasbeeninformed of any substantial', 28358:'change in the status of the items between the dates of the termination inventory schedules and the date of this', 28359:'agreement. 5 the contractor transfers,conveys, and assignsto the government all the right, title, and interest, if any, that the contractor', 28360:'has received, or is entitled to receive, in and to subcontract termination inventory not otherwise properly accounted for. 6 the', 28361:'contractor shall, within 10 days after receipt of the payment specified in this agreement, pay to each of its immediate', 28362:'subcontractors or their respective assignees the amounts to which they are entitled, after deducting any prior payments and, if the', 28363:'contractor so elects, any amounts due and payable to the contractor by those subcontractors. 7i the government agrees to pay', 28364:'to the contractor or its assignee, upon presentationof aproper invoiceor voucher, the sum of $ [insert net amount of settlement],', 28365:'arrived at by deducting from $ [insert gross amount of settlement], a the amount of $ for all unliquidated partial', 28366:'or progress payments previously made to the contractor or its assignee and all unliquidated advance payments with any interest applicable', 28367:'to the terminated portion of the contract and b the amount of $ for all applicable property disposal credits. ii', 28368:'the net settlement of $ in subdivision b7i of this section, together with sums previously paid, constitutes payment in full', 28369:'and complete settlement of the amount due the contractor for the terminated portion of the contract, except as provided in', 28370:'paragraph b8 of this section. iii upon payment of the net settlement of $, all obligations of the contractor to', 28371:'perform further work or services or to make further deliveries under the terminated portion of the contract and all obligations', 28372:'of the government to take further payments or carry out other undertakings concerning the terminated portion of the contract shall', 28373:'cease; provided, that nothing in this agreement shall impair or affect any covenants,terms, or conditions of the contract relating to', 28374:'the completed or continued portion of this contract. 8 regardless of any other provision of this agreement, the following rights', 28375:'and liabilities of the parties under the contract are reserved: [the following list of reserved or excepted rights and liabilities', 28376:'is intended to cover those that should most frequently be reserved and that should be scrutinized at the time a', 28377:'settlement agreement is negotiated see 49.1092. the suggested language of the excepted items in the list may be varied at', 28378:'the discretion of the contracting officer. if accuracy or completeness can be achieved by referencing the number of a contract', 28379:'clause or provision covering the matter in question, then follow that method of enumerating reserved rights and liabilities. omit any', 28380:'of the following that are not applicable and add any additional exceptions or reservations required.] iall rights and liabilities, if', 28381:'any, of the parties, as to matters covered by any renegotiation authority. iiall rights ofthe government to take thebenefitof agreementsor', 28382:'judgmentsaffecting royalties paid orpayable in connection with the performance of the contract. iii all rights and liabilities,if any, of theparties', 28383:'under those clausesinserted in the contract because of the requirements of acts of congress and executive orders, including, without limitation,', 28384:'any applicable clauses relating to: labor law,contingent fees, domestic articles,and employment of aliens. [if the contract contains clauses of this', 28385:'character inserted for reasons other than requirements of acts of congress or executive orders, the suggested language should be appropriately', 28386:'modified.] iv all rights and liabilities of the parties arising under the contract and relating to reproduction rights, patent infringements,', 28387:'inventions, or applications for patents, including rights to assignments, invention reports, licenses, covenants of indemnity against patent risks, and bonds', 28388:'for patent indemnity obligations, together with all rights and liabilities under the bonds. v all rights and liabilities of the', 28389:'parties, arising under the contract or otherwise, and concerning defects, guarantees, or warranties relating to any articles or component parts', 28390:'furnished to the government by the contractor under the contract or this agreement. subpart 49.6 contract termination forms and formats', 28391:'49.6033 vi all rights and liabilities of the parties under the contract relating to any contract termination inventory stored for', 28392:'the government. vii all rights and liabilities, if any, of the parties under those clauses of the contract relating to', 28393:'price reductions for defective certified cost or pricing data. end of agreement 49.6033cost reimbursement contractscomplete termination, ifsettlementincludes cost. [insert the', 28394:'following in block 14 of sf 30 for settlement of costreimbursement contracts that are completely terminated, if settlement includes costs.]', 28395:'a this supplemental agreement settles thesettlement proposal resulting from the notice of termination dated . b the parties agree to', 28396:'the following: 1 the contractor certifies that all contract termination inventory including scrap has been retained or acquired by thecontractor,', 28397:'soldto third parties, returned tosuppliers, delivered to or storedforthe government, or otherwise properly accounted for, and thatall proceeds and retention', 28398:'creditshavebeenused in arriving at this agreement. 2 the contractor certifies thateach immediate subcontractor, whose settlement proposal is included in the', 28399:'proposal settled by this agreement, has furnished the contractor a certificate stating ithat all subcontract termination inventory including scrap has', 28400:'been retained or acquiredby the subcontractor, sold to third parties, returned to suppliers, deliveredto or stored for the government, or', 28401:'otherwise properly accounted for, and that all proceeds and retention credits were used in arriving at the settlement of the', 28402:'subcontract; and ii that the subcontractor has received a similar certificate from each immediate subcontractor whose proposal was included in', 28403:'its proposal. 3 the contractor certifies thatall itemsof termination inventory, the costsof which were used in arriving at the amount', 28404:'of this settlement or he settlement of any subcontract settlement proposal included in this settlement, i are properly allocable to', 28405:'the terminated portion of the contract, ii do not exceed the reasonable quantitative requirements of the terminated portion of the', 28406:'contract, and iii do not include any items reasonably usable without loss to the contractor on its other work. the', 28407:'contractor further certifies that the contracting officer hasbeeninformed of any substantial change in the status of the items between the', 28408:'dates of the termination inventory schedules and the date of this agreement. 4 the contractor transfers,conveys, and assignsto the government', 28409:'all the right, title and interest, ifany, that the contractor has received, or is entitled to receive, in and to', 28410:'subcontract termination inventory not otherwise properly accounted for. 5 the contractor shall, within 10 days after receipt of the payment', 28411:'specified in this agreement, pay to each of its immediate subcontractors or their respective assignees the amounts to which they', 28412:'are entitled, after deducting any prior payments and, if the contractor so elects, any amounts due and payable to the', 28413:'contractor by those subcontractors. 6i the contractor has received $ for work and services performed, or articles delivered, under the', 28414:'contract beforethe effective date of termination. the government confirmsthe right of the contractor, subject to paragraph b7 of this section,', 28415:'to retain this sum and agrees that it constitutes a portion of the total amount to which the contractor is', 28416:'entitled in complete and final settlement of the contract. iifurther, thegovernment agrees to pay to the contractor or its assignee,', 28417:'uponpresentation of a proper invoice or voucher, the sum of $ [insert net amount of settlement], arrived at by deducting', 28418:'from the sum of $ [insert gross amount of settlement less amount shown in subdivision6i a of this section] a', 28419:'the amount of $ for all unliquidated partial or progress payments previously made to the contractor or its assignee and', 28420:'all unliquidated advance payments with any interest, b the amount of $ for all applicable property disposal credits [insert if', 28421:'appropriate, and c the amount of $ for all other amounts due the government under this contract, except as provided', 28422:'in paragraph b7 of this section.] iii the net settlement of $ in subdivision b6ii of this section, together with', 28423:'sums previously paid, constitutes payment in full and complete settlement of the amount due the contractor for the complete termination', 28424:'of the contract and of all other demands and liabilities of the contractor and the government under the contract, except', 28425:'as provided in paragraph b7 in this section. 7 regardless of any other provision of this agreement, the following rights', 28426:'and liabilities of the parties under the contract are reserved: [the following list of reserved or excepted rights and liabilities', 28427:'is intended to cover those that should most frequently be reserved and that should be scrutinized at the time a', 28428:'settlement agreement is negotiated see 49.1092. the suggested language of the excepted items on the list may be varied at', 28429:'the discretion of the contracting officer. if accuracy or completeness can be achieved by referencing the number of a contract', 28430:'clause or provision covering the matter in question, 49.6034 federal acquisition regulation then follow that method of enumerating reserved rights', 28431:'and liabilities. omit any of the following that are not applicable and add any additional exceptions or reservations required.] iall', 28432:'rights and liabilities, if any, of the parties, as to matters covered by any renegotiation authority. iiall rights ofthe government', 28433:'to take thebenefitof agreementsor judgmentsaffecting royalties paid orpayable in connection with the performance of the contract. iii all rights and', 28434:'liabilities,if any, of theparties under those clausesinserted in the contract because of the requirements of acts of congress and executive', 28435:'orders, including, without limitation, any applicable clauses relating to: labor law,contingent fees, domestic articles,and employment of aliens. [if the contract', 28436:'contains clauses of this character inserted for reasons other than requirements of acts of congress or executive orders, the suggested', 28437:'language should be appropriately modified.] iv all rights and liabilities of the parties arising under the contract and relating to', 28438:'reproduction rights, patent infringements, inventions, or applications for patents, including rights to assignments, invention reports, licenses, covenants of indemnity against', 28439:'patent risks, and bonds for patent indemnity obligations, together with all rights and liabilities under the bonds. v all rights', 28440:'and liabilities of the parties, arising under the contract or otherwise, and concerning defects, guarantees, or warranties relating to any', 28441:'articles or component parts furnished to the government by the contractor under the contract or this agreement. vi all rights', 28442:'and liabilities of the parties under the contract relating to any contract termination inventory stored for the government. vii all', 28443:'rights and liabilities of the parties under agreements relating to the future care and disposition by the contractor of governmentowned', 28444:'property remaining in thecontractor’s custody. viii all rights and liabilities of the parties relating to government property furnished to the', 28445:'contractor for the performance of this contract. ix all rights and liabilities of the parties under the contract relating to', 28446:'options except options to continue or increasethe work underthe contract,covenants notto compete, and covenantsof indemnity. x unresolved demands or assertions', 28447:'by the contractor against the government for costs under government accountabilityofficeexceptions orothercosts of thesame nature that are excludedfrom the settlementwithout', 28448:'prejudice to therights of eitherparty, as follows: [insert amount and describe charges not waived.] xi claims by the contractor against', 28449:'the government, whenthe contractor’srights of reimbursement are disputed, that are excluded without prejudice to the rights of either party are', 28450:'as follows: [insert the amounts and describe the claims on which the contracting officer has made findings and has disallowed', 28451:'and on which the contractor has taken, or intends to take, timely appeal.] xii unresolved demands or assertions by the', 28452:'contractor against the government that are unknown in amount and involve costs alleged to be reimbursable under the contract are', 28453:'as follows: [insert the estimated amounts and describe the charges.] xiii unknown amounts alleged by the contractor against the government,', 28454:'based upon responsibility of the contractor to third parties that involve costs reimbursable under the contract. xiv debts due the', 28455:'government by the contractor that are based on refunds, rebates, credits, or other amounts not now known to the government,', 28456:'with interest, now due or that may become due the contractor from third parties, if the amounts arise out of', 28457:'transactions for which reimbursement has been made to the contractor under the contract. the contractor shall pay to the government,', 28458:'within 30 days after receipt, any of these amounts that become due from any third party or any other source.', 28459:'interest atthe rateestablished by the secretary of the treasuryunder 50 u.s.c. app. 1215b2 shall accrue and shall be paid to', 28460:'the government on any amounts that remain unpaid after the 30day period. xv all rights andliabilities, if any, of the', 28461:'parties under those clausesof the contract relating to price reductionsfor defective certified cost or pricing data. end of agreement 49.6034costreimbursement', 28462:'contractscomplete termination, with settlement limitedto fee. [insert the following in block 14 of sf 30 for settlement of costreimbursement contracts', 28463:'that are completely terminated, if settlement is limited to fee.] a this supplemental agreement settles the amount of fee due', 28464:'under the contract, terminated in its entirety by notice of terminationdated . b the parties agree to the following: subpart', 28465:'49.6 contract termination forms and formats 49.6035 1 the contractor has received $ on account of its fee underthe contract', 28466:'before the effective date of termination. 2 the government agrees to payto thecontractor or its assignee, upon presentation of a', 28467:'proper invoice or voucher, $ [insert net amount to be paid on account of fee]. this sum, with sums previously', 28468:'paid, constitutes payment in full and complete settlement of the amount due the contractor on account of its fee under', 28469:'the contract. 3 the contractor’s allowable costsunder thecontract willbe paid under the terms and conditions of thecontract and parts 31', 28470:'and 49 of the federal acquisition regulation. [insert paragraph a3 of this subsection only if there are costs to be', 28471:'vouchered out see 49.302 or if there are costs to be covered later by a separate settlement agreement.] 4 regardless', 28472:'of any other provision of this agreement, the following rights and liabilities of the parties under the contract are reserved:', 28473:'[the following list of reserved or excepted rights and liabilities is intended to cover those that should most frequently be', 28474:'reserved and that should be scrutinized at the time a settlement agreement is negotiated see 49.1092. the suggested language of', 28475:'the excepted items on the list may be varied at the discretion of the contracting officer. if accuracy or completeness', 28476:'can be achieved by referencing the number of a contract clause or provision covering the matter in question, then follow', 28477:'that method of enumerating reserved rights and liabilities. omit any of the following that are not applicable and add any', 28478:'additional exceptions or reservations required.] iall rights and liabilities, if any, of the parties, as to matters covered by any', 28479:'renegotiation authority. iiall rights and liabilities,if any, of theparties under those clauses inserted in the contract because of the requirements', 28480:'of acts of congress and executive orders, including, without limitation, any applicable clauses relating to: labor law,contingent fees, domestic articles,and', 28481:'employment of aliens. [if the contract contains clauses of this character inserted for reasons other than requirements of acts of', 28482:'congress or executive orders, the suggested language should be appropriately modified.] iii all rights and liabilities of the parties arising', 28483:'under the contract and relating to reproduction rights, patent infringements, inventions, or applications for patents, including rights to assignments, invention', 28484:'reports, licenses, covenants of indemnity against patent risks, and bonds for patent indemnity obligations, together with all rights and liabilities', 28485:'under the bonds. iv all rights and liabilities of the parties, arising under the contract or otherwise, and concerning defects,', 28486:'guarantees, or warranties relating to any articles or component parts furnished to the government by the contractor under the contract', 28487:'or this agreement. v all rights and liabilities of the parties under agreements relating to the future care and disposition', 28488:'by the contractor of governmentowned property remaining in thecontractor’s custody. vi all rights and liabilities ofthe parties relating to government', 28489:'property furnished to, or acquired by,the contractor for the performance of the contract. vii all rights and liabilities of the', 28490:'parties under the contract relating to options except options to continue or increasethe work underthe contract,covenants notto compete, and covenantsof', 28491:'indemnity. viii allrights and liabilities, if any,of the parties under those clauses of the contract relating to pricereductions for defective', 28492:'certified cost or pricing data. end of agreement 49.6035costreimbursement contractspartial termination. [insert the following in block 14 of sf 30,', 28493:'amendment of solicitation/modification of contract, for settlement agreements for costreimbursement contracts as a result of partial termination.] a this supplemental', 28494:'agreement settles thetermination settlement proposal resultingfrom the noticeof termination dated . b the parties agree as follows: 1 the contract', 28495:'is amended by deleting the terminated portion as follows: [specify the terminated portion clearly as to i line item numbers,', 28496:'ii descriptions, iii quantity terminated, iv unit and total price of terminated items, and v any other explanation necessary to', 28497:'avoid uncertainty or misunderstanding]. 2 the fee stated in the contract is decreased by $, from $ to $ [insert,', 28498:'if appropriate,3 the estimated cost of the contract is decreased by $, from $ to $]. 49.6036 federal acquisition regulation', 28499:'c thecontractor’s allowable costs and earnedfee, if any, for theterminated portionof the contract will continue tobe reimbursed on sf 1034,public', 28500:'voucher for purchase andservices other than personal, underthe applicable provisions of the contract and part 31 of the federal acquisition', 28501:'regulation. end of agreement 49.6036nocost settlement agreementcomplete termination. [insert the following in block 14 of sf 30 if a nocost', 28502:'settlement agreement, under a complete termination, is to be executed.] a this supplemental agreement [insert modifies the contract to reflect', 28503:'a nocost settlement agreement with respect to the notice of terminationdated or, if not previously terminated, terminates the contract in', 28504:'its entirety]. b the parties agree as follows: the contractor unconditionallywaivesany charges against the government because of the termination of', 28505:'the contractand, except as setforth below, releases it from all obligations under the contractor due toits termination. thegovernmentagrees that all', 28506:'obligations under the contract are concluded, except as follows: [list reserved or excepted rights and liabilities. see 49.1092 and 49.6031b7.]', 28507:'end of agreement 49.6037nocost settlement agreementpartial termination. [insert the following in block 14 of sf 30 if a nocost settlement', 28508:'agreement, under partial termination, is to executed.] a this supplemental agreement modifies the contract to reflect a nocost settlement agreement', 28509:'with respect to the notice of termination dated . b the parties agree as follows: 1 the terminated portion of', 28510:'the contract is as follows: [specify i line item numbers, ii descriptions, iii quantity terminated, iv unit and total price', 28511:'of terminated items, and v any other explanation necessary to avoid uncertainty or misunderstanding.] 2 the contractor unconditionallywaivesany charges against', 28512:'the government arising under the terminatedportion of the contract or by reason of its termination, including, without limitation, all obligations', 28513:'of the government to make further payments or to carry out any further undertakings under the terminated portion of the', 28514:'contract. the government acknowledges that the contractor has no obligation to perform further work or services or to make further', 28515:'deliveries under theterminated portion of the contract. nothing inthisparagraph affects anyother covenants, terms,or conditionsof the contract. under the terminated portion', 28516:'of the contract, the following rights and liabilities of the parties are reserved: [list reserved or excepted rights and liabilities.', 28517:'see 49.1092 and 49.6031b7.] end of agreement 49.6038fixedprice contractssettlements with subcontractors only. [insert the following in block 14 of sf', 28518:'30 for settlements of fixedprice contracts covering only settlements with subcontractors.] a this agreement settles that portion of the settlement', 28519:'proposal of the contractor that is based upon termination of the following subcontracts entered into in performing this contract: [insert', 28520:'a list of the terminated subcontracts included in this settlement.] b the parties agree to the following: 1 the contractor', 28521:'certifies thateach immediate subcontractor, whose settlement proposal is included in the proposal settled by the agreement, has furnished the contractor', 28522:'a certificate stating ithat all subcontract termination inventory including scrap has been retained or acquiredby the subcontractor, sold to third', 28523:'parties, returned to suppliers, deliveredto or stored for the government, or otherwise properly accounted for, and that all proceeds and', 28524:'retention credits were used in arriving at the settlement of the subcontract, and ii that the subcontractor has received a', 28525:'similar certificate from each immediate subcontractor whose proposal was included in its proposal. 2 the contractor certifies thatall itemsof termination', 28526:'inventory, the costsof which were used in arriving at the amount of this settlement or the settlement of any subcontract', 28527:'settlement proposal included in this settlement, subpart 49.6 contract termination forms and formats 49.604 i are properly allocable to the', 28528:'terminated portion of the contract, ii do not exceed the reasonable quantitative requirements of the terminated portion of the contract,', 28529:'and iii do not include any items reasonably usable without loss to the contractor on its other work. the contractor', 28530:'furthercertifies that the contracting officer has been informed of any substantial changein thestatus of the items between the dates of', 28531:'the termination inventory schedules and the date of this agreement. 3 the contractor transfers,conveys, and assignsto the government all the', 28532:'right, title, and interest, if any, thatthe contractor has received or is entitled to receive, in and to subcontract termination', 28533:'inventory not otherwise properly accounted for. 4 the contractor shall, within 10 days after receipt of the payment specified in', 28534:'this agreement, pay to each of its immediate subcontractors or their respective assignees the amounts to which they are entitled,', 28535:'after deducting any prior payments and, if the contractor so elects, any amounts due and payable to the contractor by', 28536:'those subcontractors. 5 the government agrees to paythe contractor or itsassignee, upon presentation ofa properinvoice or voucher, $ [insert net', 28537:'amount of settlement], which, together with the amount of $ previously paid the contractor as partial, progress, or advance payments,', 28538:'constitutes payment in full and complete settlement, except as provided in paragraph b6 of this section, of the amount due', 28539:'the contractor for that portion of its settlement proposal that is based upon termination of the subcontracts listed above. 6', 28540:'regardless of any other provision of this agreement, the following rights and liabilities of the parties under the contract are', 28541:'reserved: [list reserved or excepted rights and liabilities. see 49.1092 and 49.6031b7.] end of agreement 49.6039settlementof reservations. [insert the following', 28542:'in block14 of sf 30 for settlement of reservations.] a supplemental agreement no. , dated , was executed to reflect', 28543:'the settlement of the termination of this contract. the supplemental agreement excepted from the settlement certain items described in the', 28544:'agreement including the items described in paragraph b of this section. this supplemental agreement settles those items listed in paragraph', 28545:'b of this section. b the parties agree to the following: 1 the government agrees to pay the contractor $', 28546:'for the following reserved or excepted items: [list items.] 2 the contractor releases and forever discharges the government from all', 28547:'liability and from all existing andfuture claims and demands that it may have under this contract, insofar as it pertains', 28548:'to the contract, for the items described in paragraph 1 of this section. when payment is due the government, reverse', 28549:'the words government and contractor in paragraphs b1 and b2. end of agreement 49.604release of excess funds under terminated contracts.', 28550:'the following format shall be used to recommend the release of excess funds under terminated contracts, except if the contracting', 28551:'office retains responsibilityforsettlement ofthe termination: : terminationcontracting officer [address] to: contracting office [address] subj: terminated contract no with [contractor] refs:', 28552:'a [cite termination notice and effective date.] b [cite prior letters releasing excess funds, if any.] 1 referenced termination notice,', 28553:'[insert completely or partially] terminated contract . 2 based on the best information available, it is estimated that the gross', 28554:'settlement cost will be $ the amount available for release as excess to the contract is $. any payments previously', 28555:'made to the contractor for terminated items have been considered in arriving at the above amounts. [if prior letters recommending', 28556:'release of excess funds are cited, use the following as paragraph 2: federal acquisition regulation the estimated settlement costs previously', 28557:'reported by reference b in the amount of $ are revised. on the best evidence now available, it is estimated', 28558:'that the settlement costs will be $ the additional amount available for release is $.] 3 the related appropriations and', 28559:'amounts involved are: appropriations allocated amounts copies to: paying office accounting and finance office other 49.605 request to settle subcontractor', 28560:'settlement proposals. contractors requesting authority to settle subcontractor settlement proposals shall furnish applicable information from the listbelow and any additional', 28561:'information required by thecontracting officer: a name of contractor andaddress of principal office. b name and location of divisionsof the', 28562:'applicant’s plant for which authorization isrequested. c an explanation of the necessity and justification for the authorization requested. d a', 28563:'fulldescription ofthe applicant’s organization for handling terminations, including the names of the officials in charge ofprocessingandsettling proposals. e the number', 28564:'and dollar amount estimated if necessary of uncompleted contracts with government agencies and the percentage applicable to each agency. f', 28565:'the number and dollar amount estimated if necessary of uncompleted subcontracts under government contracts and thepercentage applicableto each agency. g', 28566:'the extentof the applicant’s experience intermination matters,including the handling of proposals of subcontractors. h the approximate amount and general nature', 28567:'of terminations of the applicant currently in process. iastatement that no other application has been made for any divisionof the', 28568:'applicant’s plant covered bythe application or, ifonehas been made, a fullstatement of the facts. j the limit of authorization requested.', 28569:'49.606granting subcontract settlement authorization. contracting officersshalluse the followingformat whengranting subcontract settlement authorization: letter of authorization a your request of date', 28570:'is approved, and you are authorized, subject to the limitations of subsection 49.1084 and those statedbelow, to settle, without further', 28571:'approval of the government, allsubcontractsand purchase orders terminated by you as a result of a government contract being terminated or', 28572:'modified 1 for the convenience of the government or 2 under any other circumstances that may require the government to', 28573:'bear the cost of their settlement. b this authorization does not extend to the disposition of governmentfurnished material or articles', 28574:'completed but undelivered under the subcontractor purchaseorder,as theserequire screening and approval ofdisposal actions by the government, except that allocable completed', 28575:'articles may be disposed of without government approval or screening if the total amount at subcontract price when added to', 28576:'the amount of settlement as computed below does not exceed $ [insert limit of authorization being granted]. c this authorization', 28577:'is subject to the following conditions and requirements: 1 the amount of the subcontract termination settlement does not exceed $', 28578:'[insert limit of authorization being granted], computed as follows: i do not deduct advance or partial payments or credits for', 28579:'retention or other disposal of termination inventory allocated to the settlement proposal. ii deduct amounts payable for completed articles or', 28580:'work at the contract price or for the settlement of termination proposals of subcontractors except those settlements that have not', 28581:'been approved by the government. 2 any termination inventory involved has been disposed of under subsection 49.1084, except that screening', 28582:'and government approval of scrap and salvage determinations are not required. subpart 49.6 contract termination forms and formats 49.607 3', 28583:'the contracting officer may incorporate into eachnotice of termination specificinstructions about the disposition of specific items of termination inventory, orthe', 28584:'contracting officermay, at any time before finalsettlement, issuespecific instructions. these instructions will not affect any disposal action taken byyou or', 28585:'your subcontractors before theirreceipt. 4 the settlements made by you with your subcontractors and suppliers under this authorization, including sales,', 28586:'retention, or other dispositions of property involved in making these settlements, are reimbursable under part 49 and the terminationclause ofthe', 28587:'contract, and do not require approval of the contractingofficer. 5 any number of separate settlements of $ [insert limit of', 28588:'authorization granted] or less may be made with a single subcontractor. settlement proposals that would normally be included in a', 28589:'single proposal; e.g., those based on a series of separate orders for the same item under one contract, should be', 28590:'consolidated whenever possible and shall not be divided to bring them within the authorization. 6 this authorization does not applyif', 28591:'a subcontractor or supplier isaffiliated with you. for this purpose, youshould consider a contractor tobe affiliatedwith you if you are', 28592:'under common controlor ifthere is any common interest between you by reason ofstock ownership, or otherwise, that is sufficient tocreate', 28593:'areasonable doubt thatthe bargaining betweenyou is completely at arm’s length. 7 a representative of this office will,from time totime, review', 28594:'the methods used in negotiating settlements with your subcontractors and will make a selective examination of the settlements made by', 28595:'you. if the review indicates that you are not adequately protecting the government’s interest,thisdelegation will be revoked. end of letter', 28596:'49.607delinquency notices. the formats of the delinquency notices in this section may be used to satisfy the requirements of 49.4023.', 28597:'all notices will be sent with proof of delivery requested. see subpart 42.13 for stopwork orders. a cure notice. if', 28598:'a contract is to be terminated for default before the delivery date, a cure notice is required by the default', 28599:'clause. before using this notice, it must be ascertained that an amount of time equal to or greater than the', 28600:'period of cure remains in the contract delivery schedule or any extension to it. if the time remaining in the', 28601:'contract delivery schedule is not sufficient to permit a realistic cure periodof 10 days or more, the curenotice should notbe', 28602:'issued. the cure notice may be in the following format: cure notice you arenotified that the government considers your [specify', 28603:'the contractor’s failure or failures] a condition that is endangering performance of the contract. therefore, unless this condition is cured', 28604:'within 10 days after receipt of this notice [or insert any longer time that the contracting officer may consider reasonably', 28605:'necessary], the government may terminate for default under the terms and conditions of the [insert clause title] clause of this', 28606:'contract. end of notice b show cause notice. if the time remaining in the contractdelivery schedule isnot sufficientto permit a', 28607:'realistic cure period of 10 days or more, the following show cause notice may be used. it should be sent', 28608:'immediately upon expiration of the delivery period. show cause notice since you have failed to [insert perform contract no. within', 28609:'the time required by its terms, or cure the conditions endangering performance under contract no as describedto you inthe government’s', 28610:'letter of date], the government is considering terminating the contract under the provisions for default of this contract. pending a', 28611:'final decision in this matter, it will be necessary to determine whether your failure toperform arose from causes beyond your', 28612:'control and without fault or negligence on your part. accordingly, you are giventhe opportunityto present, in writing, any facts bearing', 28613:'on the question to [insert the name and complete address of the contracting officer], within 10 days after receipt ofthisnotice.', 28614:'your failure to present any excuses withinthis time maybe considered asan admissionthat none exist. your attention is invited to the', 28615:'respective rights of the contractorandthe government and the liabilities that may be invoked if a decision is made to terminate', 28616:'for default. any assistance given to you on this contract or any acceptance by the government of delinquent goods or', 28617:'services will be solely for the purpose of mitigating damages, and it is not the intention of the government to', 28618:'condone any delinquency or to waive any rights the government has under the contract. end of notice this page intentionally', 28619:'left blank. 49.614 part 50 extraordinary contractual actions and the safety act sec. 50.000 scope of part. subpart 50.2 support', 28620:'antiterrorism by fostering effective technologies act of 2002 subpart 50.1 extraordinary 50.200 scope of subpart. contractual actions 50.201 definitions. 50.100', 28621:'definitions. 50.202 authorities. 50.101 general. 50.203 general. 50.1011 authority. 50.204 policy. 50.1012 policy. 50.205 procedures. 50.1013 records. 50.2051 safety act', 28622:'considerations. 50.102 delegation of and limitations on exercise of 50.2052 prequalification designation notice. authority. 50.2053 authorization of offers contingent upon', 28623:'50.1021 delegation of authority. safety act designation or certification 50.1022 contract adjustment boards. before contract award. 50.1023 limitations on exercise', 28624:'of authority. 50.2054 authorization of awards made presuming 50.103 contract adjustments. safety act designation or certification 50.1031 general. after contract', 28625:'award. 50.1032 types of contract adjustment. 50.206 solicitation provisions and contract clause. 50.1033 contract adjustment. 50.1034 facts and evidence. 50.1035', 28626:'processing cases. 50.1036 disposition. 50.1037 contract requirements. 50.104 residual powers. 50.1041 standards for use. 50.1042 general. 50.1043 special procedures for', 28627:'unusually hazardous or nuclear risks. 50.1044 contract clause. this page intentionally left blank. subpart 50.1 extraordinary contractual actions 50.1013 50.000scope', 28628:'of part. this part a 1 prescribes policies and procedures for entering into, amending, or modifying contracts in order to', 28629:'facilitate the national defense underthe extraordinary emergency authority granted by publiclaw 85804 50 u.s.c. 14311434 and executive order 10789, dated', 28630:'november 14, 1958. it does not cover advance payments see subpart 32.4; and 2 implements indemnification authority granted by pub.', 28631:'l. 85804 and paragraph 1 a of e.o. 10789 with respect to any matter that has been, or could be,', 28632:'designated by the secretary of homeland security as a qualified antiterrorism technology as definedin the support antiterrorism by fostering effective', 28633:'technologiesactof 2002 safetyact; and b implements safety act liability protections to promote development and use of antiterrorism technologies. subpart 50.1', 28634:'extraordinary contractual actions 50.100definitions. as used in this part approving authority means an agency officialor contract adjustment board authorized to', 28635:'approve actions under pub. l. 85804 and e.o. 10789. secretarial level means a level at or above the level of', 28636:'a deputy assistant agency head, or a contract adjustment board. 50.101general. 50.1011authority. a pub. l. 85804 empowers the president to', 28637:'authorize agencies exercising functions in connection with the national defense to enter into, amend, and modify contracts, without regard to', 28638:'other provisions of law related to making, performing, amending, or modifying contracts, whenever the president considers that such action would', 28639:'facilitate the national defense. b e.o. 10789 authorizes the heads of the following agencies to exercise the authority conferred by', 28640:'pub. l. 85804 and to delegate it to other officials within the agency: the governmentpublishing office; the department of homeland', 28641:'security; thetennessee valley authority;the nationalaeronauticsand space administration; the general services administration; thedefense, army, navy, air force,treasury, interior, agriculture, commerce, and', 28642:'transportation departments;the department of energy for functions transferred to that department from other authorized agencies; and any other agency that', 28643:'may be authorized by the president. 50.1012policy. a the authority conferred by pub. l. 85804 may not 1 be used', 28644:'in a manner that encouragescarelessness and laxityon the partof persons engaged in the defenseeffort; or 2 be reliedupon when other', 28645:'adequate legal authority exists within the agency. b actions authorized under pub. l. 85804 shall be accomplished as expeditiously as', 28646:'practicable, consistent with the care, restraint,and exercise of sound judgmentappropriateto theuse of such extraordinaryauthority. c certain kinds of relief previously', 28647:'available only under pub. l. 85804; e.g., rescission or reformation for mutual mistake, are now available under the authority of', 28648:'41 u.s.c. chapter 71, contract disputes. in accordance with paragraph a 2 of this subsection, part 33 must be followed', 28649:'in preference to subpart 50.1 for such relief. in case of doubt as to whether part 33applies,thecontractingofficershouldseeklegaladvice. 50.1013 records. agencies', 28650:'shall maintain complete records of all actions taken under this subpart 50.1. for each request for relief processed, these records', 28651:'shall include, as a minimum a thecontractor’srequest; b all relevant memorandums, correspondence, affidavits, and other pertinent documents; c the memorandum', 28652:'of decision see 50.1036 and 50.1042; and d a copy of the contractual document implementing an approved request. federal acquisition', 28653:'regulation 50.102 delegation of andlimitations onexercise of authority. 50.1021delegationof authority. an agency head may delegate in writing authority under pub.', 28654:'l. 85804 and e.o. 10789, subject to the following limitations: a authority delegated shall be to a level high enough', 28655:'to ensure uniformity of action. b authority to approve requests to obligate the government in excess of $75,000 may not', 28656:'be delegated below the secretarial level. c regardless of dollar amount, authority to approve any amendment without consideration that increases', 28657:'the contract price or unit price may not be delegated below the secretarial level, except in extraordinary cases or classes', 28658:'of cases when the agency head finds that special circumstances clearly justify such delegation. d regardless of dollar amount, authority', 28659:'to indemnify against unusually hazardous or nuclear risks, including extension of such indemnification to subcontracts, shall be exercised only by', 28660:'the secretary or administrator of the agency concerned, thepublic printer, or the chairman of the board of directors of thetennessee', 28661:'valley authoritysee 50.1043. 50.1022 contract adjustment boards. an agency head may establish a contract adjustment board with authority to approve,', 28662:'authorize, and direct appropriate action under this subpart 50.1 and to make all appropriate determinations and findings. the decisions of', 28663:'the board shall not besubject to appeal; however, the board may reconsiderand modify,correct, orreverse its previous decisions. theboard shall determine', 28664:'its own procedures and have authority to take all action necessary or appropriate to conduct its functions. 50.1023limitations on exercise', 28665:'of authority. a pub. l. 85804 is not authority for 1 using a costplusapercentageofcost system of contracting; 2 making any', 28666:'contract that violates existing law limiting profit or fees; 3 providing for other than full and open competition for award', 28667:'of contracts for supplies or services; or 4 waiving any bid bond,payment bond, performance bond, orother bond required by law.', 28668:'b no contract, amendment, or modification shall be made under pub. l. 85804’s authority 1 unless the approving authority finds', 28669:'that the action will facilitate the national defense; 2 unless other legal authority within the agency concerned is deemed to', 28670:'be lacking or inadequate; 3 except withinthe limits of the amounts appropriated and the statutorycontract authorization however, indemnification agreements authorized', 28671:'by an agency head 50.1043 are not limited to amounts appropriated or to contract authorization; and 4 that will obligate', 28672:'the government for any amount over $150 million unless the senate and house committees on armed services are notified in', 28673:'writing of the proposed obligation and 60 days of continuous session of congress have passed since the transmittal of such', 28674:'notification. however,this paragraph b4does not apply to indemnificationagreements authorized under 50.1043. c no contract shall be amended or modified unless', 28675:'the contractor submits a request before all obligations including final payment under the contract have been discharged. no amendment or', 28676:'modification shall increase the contract price to an amount higher than the lowest rejected bid of any responsible bidder, ifthe', 28677:'contract was negotiated under 14.4041f. d no informal commitment shall be formalized unless 1 the contractor submits a written request', 28678:'for payment within 6 months after furnishing, or arranging to furnish, supplies or services in reliance upon the commitment; and', 28679:'2 the approving authority finds that, at the time the commitment was made, it was impracticable to use normal contracting', 28680:'procedures. e theexercise of authority by officials below the secretarial level is subject to the following additional limitations: 1 the', 28681:'action shall not i release a contractor from performance of an obligation over $75,000; ii result in an increase in', 28682:'cost to the government over $75,000; iii dealwith, ordirectlyaffect, any matter that has been submitted tothe government accountability office; or', 28683:'iv involve disposal of governmentsurplus property. 2 mistakes shall not be corrected by an action obligating the government for over', 28684:'$1,000, unless the contracting officer receives notice of themistake before final payment. subpart 50.1 extraordinary contractual actions 50.1032 3 the', 28685:'correction of a contract because of a mistake in its making shall not increase the original contract price to an', 28686:'amount higher than the next lowest responsive offer of a responsibleofferor. f no executive department or agency shall exercise the', 28687:'indemnification authority granted under paragraph 1 a of e.o. 10789 with respect to any supply or service that has been,', 28688:'or could be, designated by the secretary of homeland security as a qualified antiterrorism technology unless 1 for the department', 28689:'of defense, the secretary of defense has determined that the exercise of authority under e.o. 10789 is necessaryforthe timely andeffective', 28690:'conduct ofthe united states military orintelligence activities, after consideration of the authority provided under the safety act subtitle g of', 28691:'title viii of the homeland security act of 2002, 6 u.s.c. 44 1444; or 2 for other departments and agencies', 28692:'that have authority under e.o. 10789 i the secretary of homeland security has advised whether the use of the authority', 28693:'under the safety act would be appropriate; and iithe director of the office of management and budget hasapproved the exercise', 28694:'ofauthority under the executive order. 50.103contract adjustments. this section prescribes standards and procedures for processing contractors’ requests for contract adjustment', 28695:'under pub. l. 85804 and e.o. 10789. 50.1031 general. the fact that losses occur under a contract is notsufficient basisforexercisingthe', 28696:'authority conferred by pub. l. 85804. whether appropriate action will facilitate the national defense is a judgment to be made', 28697:'on the basis of all of the facts of the case. although it is impossible to predict or enumerate all', 28698:'the types of cases in which action may be appropriate, examples are included in 50.1032. even if all of the', 28699:'factors in any of the examples are present, other considerations may warrant denying a contractors request for contract adjustment. the', 28700:'examples are not intended to exclude other cases in which the approving authority determines that the circumstances warrant action. 50.1032types', 28701:'of contract adjustment. a amendments without consideration. 1 when an actual or threatened loss under a defense contract, however caused,', 28702:'will impair the productive ability of a contractor whose continued performance on any defense contract or whose continued operation as', 28703:'a source of supply is found to be essential to the national defense, the contract may be amended without consideration,', 28704:'butonly to theextent necessary to avoidsuch impairmentto thecontractor’sproductive ability. 2 when acontractor suffers aloss not merely adecrease in anticipated profits', 28705:'under adefensecontract because of government action, the character of the action will generally determine whether any adjustment in the contract', 28706:'will be made, and its extent. when the government directs its action primarily at the contractor and acts in its', 28707:'capacity as the other contracting party, the contract may be adjusted inthe interest of fairness. thus, when government action, while', 28708:'not creating any liability on the government’s part, increases performancecost andresults in a loss to thecontractor, fairness may make some', 28709:'adjustment appropriate. b correcting mistakes. 1 a contract may be amendedor modified to correct or mitigate the effectof amistake. the', 28710:'following are examples of mistakes that may make such action appropriate: iamistake or ambiguity consisting ofthe failure to express, or', 28711:'express clearly,in a writtencontract, the agreement as both parties understood it. iiacontractor’smistake so obvious that it was or should have', 28712:'been apparent to the contracting officer. iii a mutual mistake as to a material fact. 2 amending contracts to correct', 28713:'mistakes with the least possible delay normally will facilitate the national defense by expediting the contracting program and assuringcontractors that', 28714:'mistakes will becorrected expeditiously andfairly. c formalizing informal commitments. under certain circumstances, informal commitments may be formalized to permit payment', 28715:'to persons who have taken action without a formal contract; for example, when a person, responding to an agency official’s', 28716:'written or oral instructions and relying ingood faith upon the official’sapparent authority to issue them, has furnishedor arranged to furnish', 28717:'supplies or services to the agency, orto a defense contractor orsubcontractor, without formal contractual coverage. formalizing commitments under such circumstances', 28718:'normally will facilitate the national defense by assuringsuch persons that they will be treated fairly and paid expeditiously. 50.1033 federal', 28719:'acquisition regulation 50.1033 contract adjustment. a contractor requests. a contractor seeking a contract adjustment shall submit a request in duplicate', 28720:'to the contracting officer oran authorized representative. the request, normally a letter, shall state asa minimum 1 the precise adjustment', 28721:'requested; 2 the essential facts, summarized chronologically in narrative form; 3 the contractor’s conclusions based on these facts, showing, in', 28722:'terms of theconsiderations setforth in 50.1031 and 50.1032, when the contractor considers itself entitled to the adjustment; and 4 whether', 28723:'or not iall obligationsunder thecontracts involved have been discharged; ii final payment under the contracts involved has been made; iii', 28724:'any proceeds fromthe request willbe subjectto assignmentor other transfer, and to whom; and iv the contractor has sought the same,', 28725:'or a similar or related, adjustment from the government accountability office or any other partof the government, or anticipates doingso.', 28726:'b contractor certification. a contractor seeking a contract adjustment that exceeds the simplified acquisition threshold shall, at the time the', 28727:'request is submitted, submit a certification by a person authorized to certify the request on behalf of the contractor that', 28728:'1 the request is made in good faith; and 2 the supportingdata are accurate and complete to the best of', 28729:'that person’sknowledge and belief. 50.1034 facts and evidence. a general. whenitis appropriate,the contracting officeror other agency official shall request thecontractor', 28730:'to support any request made under 50.1033a with any of the following information: 1 a brief description of the contracts', 28731:'involved, the dates of execution and amendments, the items being acquired, the price or prices, the delivery schedules, and any', 28732:'special contract provisions relevant to the request. 2 a history of performance indicating when work under the contracts or commitments', 28733:'began, the progress made to date, an exact statement of thecontractor’s remaining obligations, andthe contractor’s expectations regarding completion. 3 a', 28734:'statement of payments received, due, and yet to be received or to become due, including advance and progress payments; amounts', 28735:'withheld by the government; and information as to any obligations of the government yet to be performed under the contracts.', 28736:'4 a detailed analysis ofthe request’s monetary elements,including precisely how the actual orestimated dollar amount was determined and the effectof', 28737:'approval or denial onthe contractor’s profits before federal income taxes. 5 a statement of thecontractor’s understanding of why the request’s', 28738:'subjectmatter cannot now,andcould not atthe time it arose, be disposed of under the contract terms. 6 the best supporting evidence', 28739:'available to the contractor, including contemporaneous memorandums, correspondence, and affidavits. 7 relevant financial statements, cost analyses, or other such data,', 28740:'preferably certified by a certified public accountant, as necessary to support therequest’s monetaryelements. 8 a listof persons connected with the', 28741:'contracts who have factualknowledge of thesubject matter, including, when possible, their names, offices or titles, addresses,andtelephone numbers. 9 a statement', 28742:'and evidence of steps taken to reduce losses and claims to a minimum. 10 any other relevant statements or evidence', 28743:'that may be required. b amendments without considerationessentiality a factor. when a request involves possible amendment without consideration, and essentiality', 28744:'to the national defense is a factor 50.1032a1, the contractor may be asked to furnish, in addition to the facts', 28745:'and evidence listed in paragraph a of this subsection, any of the following information: 1 a statement and evidence of', 28746:'the contractor’s original breakdown of estimated costs, including contingency allowances, and profit. 2 a statement and evidence of the contractor’s', 28747:'present estimate oftotal costsunder thecontracts involved if it is enabled to complete them, broken down between costs accrued to date', 28748:'and completion costs, and between costs paid and those owed. 3 a statement and evidence of the contractor’s estimate of', 28749:'the final price ofthe contracts, taking into account all known or contemplated escalation, changes, extras, and the like. 4 a', 28750:'statement of any claims known or contemplated by the contractor against the government involving the contracts, other than those stated', 28751:'in response to paragraph b3 of this subsection. subpart 50.1 extraordinary contractual actions 50.1034 5 an estimate of thecontractor’s total', 28752:'profit or lossunder thecontracts ifitis enabledto complete them at the estimated final contract price, broken down between profit or loss', 28753:'to date and completion profit or loss. 6 an estimate of thecontractor’s total profit or lossfrom other government business andall', 28754:'other sources, fromthe date of the first contract involved to the estimated completion date of the last contract involved. 7', 28755:'a statement of the amount of any tax refunds to date, and an estimate of those anticipated, for the period', 28756:'from the date of the first contract involved to the estimated completion date of the last contract involved. 8 a', 28757:'detailed statement of efforts the contractorhas madeto obtain funds from commercial sources toenablecontract completion. 9 a statement of the minimum', 28758:'amount the contractor needs as an amendment without consideration to enable contract completion, and the detailed basis for that amount.', 28759:'10 an estimate of the time required to complete each contract if the request is granted. 11 a statement ofthe', 28760:'factors causingthe lossunder thecontracts involved. 12 a statement of the course of events anticipated if the request is denied. 13', 28761:'balancesheets,preferablycertifiedby a certified public accountant,i for the contractor’s fiscal year immediately preceding the date of the first contract, ii for', 28762:'each subsequent fiscal year, iii as of the request date, and iv projected asof the completion date of all the', 28763:'contracts involved assuming the contractor is enabled to complete them at the estimated final prices, together with income statements for', 28764:'annual periods subsequent to the date of the first balance sheet. balance sheets and income statements should beboth consolidated and', 28765:'broken down by affiliates. theyshouldshow all transactionsbetween thecontractor and its affiliates,stockholders, and partners, including loans tothe contractor guaranteed by anystockholder', 28766:'or partner. 14 a list ofall salaries,bonuses, and other compensation paid or furnished to the principalofficers or partners, and of', 28767:'all dividends and other withdrawals, and of all payments to stockholders in any form since the date of the first', 28768:'contract involved. c amendments without considerationessentiality not a factor. when a request involves possible amendment without consideration because of government', 28769:'action, and essentiality to the national defense is not a factor 50.1032a2, the contractor may be asked to furnish, in', 28770:'addition to the facts and evidence listed in paragraph a of this subsection, any of the following information: 1 a', 28771:'clear statement of the precise government action that the contractor considers to have caused a loss under the contract, with', 28772:'evidence to support each essential fact. 2 a statement and evidence of the contractor’s original breakdown of estimated costs, including', 28773:'contingency allowances, and profit. 3 the estimated total loss under the contract, with detailed supporting analysis. 4 the estimated loss', 28774:'resulting specifically from the government action, with detailed supporting analysis. d correcting mistakes. when a request involves possible correction of', 28775:'a mistake 50.1032b, the contractor may be asked to furnish, in addition to the facts and evidence listed in paragraph', 28776:'a of this subsection, any of the following information: 1 a statement and evidence of the precise error made, ambiguity', 28777:'existing, or misunderstanding arising, showing what it consists of, how it occurred, and the intention of the parties. 2 a', 28778:'statement explaining when the mistake was discovered, when the contracting officer wasgiven noticeof it, and whether this notice was givenbefore', 28779:'completion ofwork under, or the effective termination date of, the contract. 3 an estimate of profit or loss under the', 28780:'contract, with detailed supporting analysis. 4 an estimate of the increase in cost to the government resulting from the adjustment', 28781:'requested, with detailed supporting analysis. e formalizing informal commitments. when a request involves possible formalizing of an informal commitment 50.1032c,', 28782:'the contractor may be asked to furnish, in addition to the facts and evidence listed in paragraph a of this', 28783:'subsection, any of the following information: 1 copies of any written instructions or assurances or a sworn statement of any', 28784:'oral instructions or assurances given thecontractor, and identification of the government official who gave them. 2 a statement as to', 28785:'when the contractor furnished or arranged to furnish the supplies or services involved, and to whom. 3 evidence that the', 28786:'contractor relied upon the instructions or assurances, with a full description of the circumstances that led to this reliance. 50.1035', 28787:'federal acquisition regulation 4 evidence that, when performing the work, the contractor expected to be compensated directly for it by', 28788:'the government and didnot anticipate recovering the costsin some other way. 5 a cost breakdown supporting the amount claimed as', 28789:'fair compensation for the work performed. 6 a statement and evidence of the impracticability of providing, in an appropriate contractual', 28790:'instrument, for the work performed. 50.1035processing cases. a in response to a contractor request made in accordance with 50.1033a, the', 28791:'contracting officer or anauthorized representative shall make a thorough investigation to establish the facts necessary to decide a given case.', 28792:'facts and evidence, including signed statements of material facts within the knowledge of individuals when documentary evidence is lacking, and', 28793:'audits if considered necessary to establish financial or cost facts, shall be obtained from contractor and government personnel. b when', 28794:'acaseinvolvesmatters ofinterest to more than one government agency, the interested agencies should maintain liaison with each other to determine whether', 28795:'joint action should be taken. c when additional funds are required from anotheragency, the contracting agency may not approveadjustmentrequests beforereceiving', 28796:'advice that the funds will be available. the request for this advice shall givethe contractor’s name, the contract number, the', 28797:'amount of proposed relief, a brief description of the contract, and the accounting classification or fund citation. if the other', 28798:'agency makes additional funds available, the agency considering the adjustment request shall be solely responsible for any action taken on', 28799:'the request. d when essentiality to the national defense is an issue 50.1032a1, agencies considering requests for amendment without consideration', 28800:'involving another agency shall obtain advice on the issue from the other agency before making the final decision. when this', 28801:'advice is received, the agency considering the request for amendment without consideration shall be responsible for taking whatever action is', 28802:'appropriate. 50.1036 disposition. when approving ordenying acontractor’s request made in accordance with 50.1033a, the approving authority shall sign and date', 28803:'a memorandum of decision containing a thecontractor’snameand address, thecontract identification, and the nature of the request; b a concise description', 28804:'of the supplies or services involved; c the decision reached and the actual cost or estimated potential cost involved, if', 28805:'any; d a statement of the circumstances justifying the decision; e identification of any of the foregoing information classified confidential', 28806:'or higher instead of being included in the memorandum, such information may be set forth in a separate classified document', 28807:'referenced in the memorandum; and f if some adjustment is approved, a statement in substantially the following form: i find', 28808:'that the action authorized herein will facilitate the national defense. the case files supporting this statement will show the derivation', 28809:'and rationale for the dollar amount of the award. when the dollar amount exceeds the amounts supported by audit or', 28810:'other independent reviews, the approving authority will further document the rationale for deviating from the recommendation. 50.1037contractrequirements. a pub. l.', 28811:'85804 and e.o. 10789 require that every contract entered into, amended, or modified under this subpart 50.1 shall contain— 1', 28812:'a citation of pub. l. 85804 and e.o. 10789; 2 a brief statement of the circumstances justifying the action; and', 28813:'3 a recital of the finding that the action will facilitate the national defense. b the authority in 50.1011a shall', 28814:'not be used to omit from contracts, when otherwise required, the clauses at 52.2035, covenant against contingent fees; 52.2152, audit', 28815:'and recordsnegotiation; 52.2224, contract work hours and safety standardsovertime compensation; 52.2226, construction wage rate requirements; 52.22210, compliance with copeland act', 28816:'requirements; 52.22220, contracts for materials, supplies, articles, and equipment;52.22226, equal opportunity; and 52.23223, assignment of claims. 50.104residual powers. this section', 28817:'prescribes standards and procedures for exercising residual powers under pub. l. 85804. the term residual powers includes all authority under', 28818:'pub. l. 85804 except subpart 50.1 extraordinary contractual actions 50.1043 a that covered by section 50.103; and b the authority', 28819:'to make advance payments see subpart 32.4. 50.1041 standards for use. subject to the limitations in 50.1023, residual powers may', 28820:'be used in accordance with the policies in 50.1012 when necessary and appropriate, all circumstances considered. in authorizing the inclusion', 28821:'of the clause at 52.2501, indemnification under public law 85804, in a contract or subcontract, an agency head may require', 28822:'the indemnified contractor to provide and maintain financial protection of the type and amount determined appropriate. in deciding whether to', 28823:'approve use of the indemnification clause, and in determining the type and amount of financial protection the indemnified contractor is', 28824:'to provide and maintain, an agency head shall consider such factors as selfinsurance, other proof of financial responsibility, workers’ compensation', 28825:'insurance,andthe availability, cost, andterms ofprivate insurance. the approvaland determination shall be final. 50.1042 general. a when approving or denying a', 28826:'proposal for the exercise of residual powers, the approving authority shall sign and date a memorandum of decision containing substantially', 28827:'the same information called for by 50.1036. b every contract entered into, amended, or modified under residual powers shall comply', 28828:'with the requirements of 50.1037. 50.1043special procedures for unusually hazardousor nuclear risks. a indemnification requests. 1 contractor requests for the', 28829:'indemnification clause to cover unusually hazardous or nuclear risks should be submittedto the contracting officer and shall include thefollowing information:', 28830:'i identification of the contract for which the indemnification clause is requested. ii identification and definition of the unusually hazardous', 28831:'or nuclear risks for which indemnification is requested, with a statement indicating how the contractor would be exposed to them.', 28832:'iii a statement, executed by a corporate official with bindingcontractual authority, of all insurance coverage applicable to the risks to', 28833:'be definedin the contractas unusually hazardous or nuclear, including a names of insurance companies, policy numbers, and expiration dates; b', 28834:'a description of the types of insurance provided including the extent to which the contractor is selfinsured or intends to', 28835:'selfinsure, with emphasis on identifying the risks insured against and the coverage extended to persons or property,or both; c dollar', 28836:'limits per occurrence and annually, and any other limitation, for relevant segments of the total insurance coverage; ddeductibles, ifany, applicable', 28837:'to losses under the policies; e any exclusions from coverage under such policies for unusually hazardous or nuclear risks; and', 28838:'f applicable workers’ compensation insurance coverage. iv the controlling or limiting factors for determining the amount of financial protection the', 28839:'contractor is to provide and maintain, with information regarding the availability, cost,andterms ofadditional insurance or other forms of financial protection.', 28840:'v whetherthe contractor’s insurance program hasbeenapproved oraccepted byany government agency; and whether the contractor has an indemnification agreement covering similar', 28841:'risks under any other government program, and, if so, a brief description of any limitations. vi if the contractor is', 28842:'a division or subsidiary of a parent corporation a a statement of any insurance coverage of the parent corporation that', 28843:'bears on the risks for which the contractor seeks indemnification; and b a description of the precise legal relationship between', 28844:'parent and subsidiary or division. 2 if the dollar value of the contractor’s insurancecoverage varies by10 percent or morefrom that', 28845:'stated in an indemnification request submitted in accordance with paragraph a1 of this subsection, or if other significant changes in', 28846:'insurance coverage occur after submission and before approval, the contractor shall immediately submit to the contracting officer a brief description', 28847:'of thechanges. b action on indemnification requests. 1 the contractingofficer, with assistancefrom legal counsel and cognizant program officepersonnel, shall review', 28848:'the indemnificationrequest and ascertain whether it contains allrequired information. if the contracting officer, after considering the facts and evidence, denies', 28849:'the request, the contracting officer shall notify the 50.1044 federal acquisition regulation contractor promptlyof the denial andof the reasons for', 28850:'it. if recommending approval, the contracting officer shall forward therequest as modified, if necessary,by negotiation through channels tothe appropriate officialspecified', 28851:'in 50.1021d. the contractingofficer’s submission shall include all information submitted by thecontractor and i all pertinent information regarding the proposed', 28852:'contract or program, including the period of performance, locations, and facilities involved; ii a definition of the unusually hazardous or', 28853:'nuclear risks involved in the proposed contract or program, with a statement that the parties have agreed to it; iii', 28854:'a statement by responsible authority that the indemnification action would facilitate the national defense; iv a statement that the contract', 28855:'will involve unusually hazardous or nuclear risks that could impose liability upon the contractor in excess of financial protection reasonably', 28856:'available; v a statement that the contractor is complying with applicable government safety requirements; vi a statement of whether the', 28857:'indemnification should be extended to subcontractors; and vii a description of any significant changes in the contractors insurance coverage see', 28858:'50.1043a2 occurring since submission of the indemnification request. 2 approval of a request to include the indemnification clause in a', 28859:'contract shall be by a memorandum of decision executed by the appropriate official specified in 50.1021d. 3 when use of', 28860:'the indemnification clause is approved under paragraph b2 of this subsection, the definition of unusually hazardous or nuclear risks see', 28861:'paragraph b1ii of this subsection shall be incorporated into the contract, along with the clause. 4 when approval is i', 28862:'authorized in the memorandum of decision; and iijustifiedby the circumstances, the contracting officer may approve the contractor’s written request to', 28863:'providefor indemnification of subcontractors, using the same procedures as those required for contractors. 50.1044 contract clause. the contractingofficer shall insertthe', 28864:'clause at 52.2501, indemnification under public law 85804, in contracts wheneverthe approving official determines that the contractorshallbe indemnified against unusually', 28865:'hazardous or nuclear risks also see 50.1043b3. incostreimbursementcontracts, the contracting officershalluse the clause withits alternate i. subpart 50.2 support antiterrorism', 28866:'by fostering effective technologies act of 2002 50.203 subpart 50.2 support antiterrorism by fostering effective technologies act of 2002 50.200scope', 28867:'of subpart. this subpart implements thesupport antiterrorism by fosteringeffective technologies act of 2002 safety act liability protections to promote development', 28868:'and use of antiterrorism technologies. 50.201definitions. act of terrorism means any act determined to have met the following requirements or', 28869:'such other requirements as defined and specified by the secretary of homeland security: 1 is unlawful. 2 causes harm,including financial', 28870:'harm,to a person,property, or entity, in the united states, or in the case of a domestic united states air carrier', 28871:'or a united statesflag vessel or a vessel based principally in the united states on which united states income tax', 28872:'is paid and whose insurance coverage is subject to regulation in the united states, in or outside the united states.', 28873:'3 uses or attempts to use instrumentalities, weapons or other methods designed or intended to cause mass destruction, injury or', 28874:'other loss to citizens or institutions of the united states. block certification means safety act certification of a technology class', 28875:'that the department of homeland security dhs has determined to be anapproved class of approved productsforhomeland security. block designation means', 28876:'safety act designation of a technology class that the dhs has determined to be a qualified antiterrorism technology qatt. prequalification', 28877:'designation notice means a notice in a procurement solicitation or other publication by the government stating that the technology to', 28878:'be procuredeither affirmativelyor presumptively satisfies the technicalcriteria necessary to be deemed aqualified antiterrorism technology. a prequalificationdesignation notice authorizes offerors to', 28879:'submit streamlined safety act applications for safety act designation and receive expedited processing of those applications. qualified antiterrorism technology qatt', 28880:'means any technology designed, developed, modified, procured, or sold for the purpose of preventing, detecting, identifying, or deterring acts of', 28881:'terrorism or limiting the harm such acts might otherwise cause,forwhich a safety act designation has been issued. for purposes of', 28882:'defining a qatt, technologymeans any product, equipment, service including support services, device, or technology including information technology or any combination', 28883:'of the foregoing. design services, consulting services, engineering services, software development services, software integration services, threat assessments, vulnerability studies, and', 28884:'other analyses relevant to homeland security may bedeemed a technology. safety act certification means a determination by dhs pursuant to', 28885:'6 u.s.c. 442d, as further delineated in 6 cfr 25.8 and 25.9, that a qatt for which a safety act', 28886:'designation has been issued is anapproved productforhomeland security, i.e., it will perform as intended, conforms to the seller’s specifications, and', 28887:'is safe for use as intended. safety act designation means a determination by dhs pursuant to 6 u.s.c. 441 b', 28888:'and 6 u.s.c. 443a, as further delineated in 6 cfr 25.4,that a particularantiterrorism technology constitutes a qatt under the safety', 28889:'act. 50.202authorities. the following authorities apply: a support antiterrorism by fostering effectivetechnologies act of 2002 safety act, 6 u.s.c. 441444.', 28890:'b executive order 13286 of february 28, 2003, amendment of executive orders, and other actions, in connection with thetransfer of', 28891:'certain functions to the secretary of homeland security. c executive order 10789 of november 14, 1958, contracting authority of government', 28892:'agencies in connection with national defense functions. d 6 cfr part 25. 50.203general. a as part of the homeland security', 28893:'act of 2002, pub. l. 107296, congress enacted the safety act to 1 encourage the development and use of antiterrorism', 28894:'technologies that will enhance the protection of the nation; and 2 provide risk management and litigation management protections for sellers', 28895:'of qatts and others in thesupplyand distribution chain. b the safety act’s liability protections are complementary to the terrorism risk', 28896:'insurance act of 2002. federal acquisition regulation c questions concerning thesafety act may bedirected to dhsoffice of safety act implementation', 28897:'osai. additional information about the safety act may be found at http://www.safetyact.gov. included on this website are block designations and', 28898:'block certifications granted by dhs. 50.204 policy. a agencies should 1 determine whether the technology to be procured is appropriate', 28899:'for safety act protections and, if appropriate, formally relay this determination to dhs for purposes of supporting contractor applications for', 28900:'safety act protections in relation to criteria bviii of 6 cfr 25.4, designation of qualified antiterrorism technologies; 2 encourage offerors', 28901:'toseek safety act protectionsfortheir offeredtechnologies, even inadvance of the issuance of a solicitation; and 3 not mandate safety act protections', 28902:'for acquisitions because applying for safety act protections for a particular technologyis the choice of the offeror. b agencies shall', 28903:'not solicit offers contingent upon safety act designationor certificationoccurringbefore contract award unless authorized in accordance with 50.2053. c agencies shall', 28904:'not solicit offers or award contracts presuming dhswill issue a safety act designation or certification after contract award unless authorized', 28905:'in accordance with 50.2054. d the dhs determination to extend safety act protections for a particular technology is not a', 28906:'determination that the technology meets, or fails to meet, the requirements of a solicitation. 50.205 procedures. 50.2051 safety act considerations.', 28907:'a safety act applicability. requiring activities should review requirements to identify potential technologies that prevent, detect, identify, or deter actsof', 28908:'terrorism or limit the harm such acts might cause,and may be appropriate for safety act protections. in questionable cases, the', 28909:'agency shall consult with dhs. for acquisitions involving such technologies, the requiring activity should ascertain through discussions with dhs whether', 28910:'a block designation or block certification exists for the technology being acquired. 1 if onedoes exist, the requiring activity should', 28911:'request thatthe contracting officernotify offerors. 2 if one does not exist, see 50.2052, prequalification designation notice. b early consideration of', 28912:'the safety act. acquisition officials shall consider safetyactissues asearly in the acquisition cycle as possible see 7.105b20v. normally, this would', 28913:'be at the point where the required capabilities or performance characteristics are addressed. this is important because the processing times', 28914:'for issuing determinations on all types of safety act applications vary depending on many factors, including the influx of applications', 28915:'to dhs and the technical complexity of individual applications. c industry outreach. when applicable,acquisition officials should includesafety act considerations in', 28916:'all industry outreachefforts including, butnot limited to, requests for information, draft requests for proposal, and industry conferences. d reciprocal waiver', 28917:'of claims. for purposes of 6 cfr 25.5e, the government is not a customer from which a contractor must request', 28918:'a reciprocal waiver of claims. 50.2052prequalification designation notice. a requiring activity responsibilities. 1 if the requiring activity determines that the', 28919:'technology to be acquired may qualify for safety act protection, the requiring activity is responsible for requesting a prequalification designation', 28920:'notice from dhs. such a request for a prequalification designation notice should be made once the requiring activity has determined', 28921:'that the technology specifications or statementof work are established and areunlikely to undergo substantive modification. dhswill then determinewhetherthe technology identified', 28922:'in the request either affirmatively or presumptively satisfies thetechnicalcriteria for safety act designation. anaffirmativedetermination means the technologydescribed in the prequalification', 28923:'designation noticesatisfies the technical criteria for safety act designationas a qatt. a presumptivedeterminationmeans that the technology is a goodcandidate for', 28924:'safety act designation asa qatt. in either case, the noticewill authorize offerors to i submit a streamlined application for safety', 28925:'act designation; and ii receive expedited review of their application for safety act designation. subpart 50.2 support antiterrorism by fostering', 28926:'effective technologies act of 2002 50.206 2 the requiring activity shall make requests using the procurement prequalification request form available', 28927:'at http:// www.safetyact.gov. the website includes instructions for completing and submitting the form. 3 the requiring activity shall provide a', 28928:'copy of the request, as well as a copy of the resulting prequalification designation notice or dhs denial, to the', 28929:'contracting officer. b contracting officer responsibilities. upon receipt of the documentation specified in paragraph a3 of this subsection, thecontracting officer', 28930:'shall 1 include in any presolicitation notice subpart 5.2 that a prequalification designation notice has been i requested and is', 28931:'under review by dhs; ii denied by dhs; or iii issued and a copy will be included with the solicitation;', 28932:'and 2 incorporate the prequalification designation notice into the solicitation. 50.2053authorization of offerscontingent uponsafety actdesignation or certification beforecontract award. a', 28933:'contracting officers may authorize such contingent offers,onlyif 1 dhs has issued ifor offers contingent upon safety act designation, a prequalification', 28934:'designation noticeor ablock designation; or iifor offers contingent uponsafety act certification,a block certification; 2 to the contracting officer’s knowledge, the', 28935:'government has not provided advance noticesothat potential offerors could have obtained safety act designations/ certifications for theiroffered technologies before release', 28936:'of anysolicitation; and 3 market research showsthat there willbe insufficient competition without safetyactprotections orthe subject technology would be sold to', 28937:'the government only with safety act protections. b contracting officersshallnot authorize offers contingent uponobtaining a safety act certification as opposed', 28938:'to a safety act designation, unless a block certification applies to the class of technology to be acquired under the', 28939:'solicitation. 50.2054authorization of awards made presuming safetyact designation or certification after contract award. a when necessary to award a contract', 28940:'priorto dhs issuingsafety act protections,contracting officers mayaward contracts presuming that dhs will issue a safety act designation/certification to the contractor', 28941:'after contract award only if 1 the criteria of 50.2053a are met; 2 the chiefof the contractingoffice or other official', 28942:'designated in agency procedures approves the action;and 3 the contractingofficer advises dhs of the timelines for potential award and consults', 28943:'dhs asto when dhs could reasonablycomplete evaluations ofofferors’ applications for safety act designations or certifications. b contracting officersshallnot authorize offers', 28944:'presuming that safety act certification will be obtained as opposed to a safety act designation, unless a block certification applies', 28945:'to the class of technology to be acquired under the solicitation. 50.206 solicitation provisions and contract clause. a insert the', 28946:'provision at 52.2502, safety act coverage not applicable, in solicitations if 1 the agency consulted with dhs on a questionable', 28947:'case of safety act applicability to an acquisition in accordance with 50.2051a, and after the consultation, the agency has determined', 28948:'that safety act protection is not applicable for the acquisition; or 2 dhs has denied approval of a prequalification designation', 28949:'notice. b 1 insert the provision at 52.2503, safety act block designation/certification, in a solicitation when dhs has issued a', 28950:'block designation/certification for the solicited technologies. 2 use the provision at 52.2503 withits alternate i when contingent offers are authorizedin', 28951:'accordance with 50.2053. 3 use the provision at 52.2503 withits alternate ii when offerspresuming safety act designation or certification are', 28952:'authorized in accordance with 50.2054. if this alternate is used, the contracting officermay increase the number of days within which', 28953:'offerors must submit theirsafety act designation or certification application. c 1 insert the provision at 52.2504, safety act prequalification designation', 28954:'notice, in a solicitation for which dhs has issued a prequalification designation notice. federal acquisition regulation 2 use the provision', 28955:'at 52.2504 withits alternate i when contingent offers are authorizedin accordance with 50.2053. 3 use the provision at 52.2504 withits', 28956:'alternate ii when offerspresuming safety act designation or certification are authorized in accordance with 50.2054. if this alternate is used,', 28957:'the contracting officermay increase the number of days within which offerors must submit theirsafety act designation or certification application. d', 28958:'insert the clause at 52.2505, safety actequitable adjustment 1 in the solicitation, if the provision at 52.2503 or 52.2504 is', 28959:'used with its alternate ii; and 2 in any resultant contract,if dhs hasnot issued safety act designation or certification tothe', 28960:'successful offeror before contract award. part 51 use of government sources by contractors sec. 51.000 scope of part. subpart 51.2', 28961:'contractor use of interagency fleet management system ifms vehicles subpart 51.1 contractor use 51.200 scope of subpart. of government supply', 28962:'sources 51.201 policy. 51.100 scope of subpart. 51.202 authorization. 51.101 policy. 51.203 means of obtaining service. 51.102 authorization to use', 28963:'government supply 51.204 use of interagency fleet management system sources. ifms vehicles and related services. 51.103 ordering from government supply', 28964:'sources. 51.205 contract clause. 51.104 furnishing assistance to contractors. 51.105 payment for shipments. 51.106 title. 51.107 contract clause. this page', 28965:'intentionally left blank. subpart 51.1 contractor use of government supply sources 51.102 51.000scope of part. this part prescribes policies and', 28966:'procedures for the use by contractors of government supply sources and interagency fleet management system ifms vehicles and related services.', 28967:'subpart 51.1 contractor use of government supply sources 51.100scope of subpart. this subpart prescribes policies and procedures for the use', 28968:'of government supply sources see 51.102c by contractors. in this subpart, the terms contractors and contracts include subcontractors and subcontracts.', 28969:'51.101 policy. a if it is inthe government’s interest, and if supplies or services required in the performance of a', 28970:'government contract areavailablefrom government supply sources, contracting officers may authorize contractors touse these sources in performing 1 government costreimbursement contracts;', 28971:'2 othertypes of negotiated contracts when the agency determines that a substantialdollarportion of the contractor’s contracts are of a government', 28972:'costreimbursement nature; or 3 a contract under 41 u.s.c. chapter 85, committee for purchase from people who are blind or', 28973:'severely disabled, if i the nonprofit agency requesting use of the supplies and services is providing a commodity or service', 28974:'to the federal government; and ii the supplies or services received are directly used in making or providing a commodity', 28975:'or service, approved by the committee for purchase from people who are blind or severely disabled, to the federal government', 28976:'see subpart 8.7. b contractors with fixedprice government contracts that require protection of security classified information may acquire security equipment', 28977:'through gsa sources see 41 cfr 10126.507. c contracting officers shall authorize contractors purchasing supply items for government use that', 28978:'are available from the committee for purchase from people who are blind or severely disabled see subpart 8.7 to purchase', 28979:'such items from the defense logistics agencydla, the generalservices administration gsa, and the departmentof veterans affairs va if they are', 28980:'available from these agencies through their distribution facilities. mandatory supplies that are not available from dla/gsa/vashallbe ordered through the appropriatecentral', 28981:'nonprofitagency see 52.2089c. 51.102 authorizationto use government supply sources. a before issuing an authorization to a contractor to use government', 28982:'supply sources in accordance with 51.101a or b, thecontracting officer shall place in the contract file a written finding supporting', 28983:'issuance of the authorization. a written finding is not required when authorizing use of government supply sources in accordance with', 28984:'51.101c. except for findings under 51.101a3, the determination shall be based on, but not limited to, considerations of the following', 28985:'factors: 1 the administrative cost of placing orders with government supply sources and the program impact of delay factors, if', 28986:'any. 2 the lower cost of items available through government supply sources. 3 suitability of items available through government supply', 28987:'sources. 4 delivery factors such as cost and time. 5 recommendationsof the contractor. b authorizations to subcontractors shall be issued', 28988:'through, and with the approvalof, the contractor. c upon deciding to authorize a contractor touse government supply sources, the contractingofficer', 28989:'shall request, in writing, as applicable 1 a fedstrip activity address code, through the agency’s centralcontact point for matters involvingactivity', 28990:'address codes, from the general services administration gsa fxs washington, dc 20406; 2 a milstrip activity address code from the', 28991:'appropriate department of defense dod service point listed in section 1 of the introduction to the dod activity address directory;', 28992:'3 approvalforthe contractor to use department of veterans affairs va supply sources from the executive director, office of acquisitionand logistics', 28993:'003a, department of veteransaffairs,810 vermont avenue,nw, washington dc 20420; or federal acquisition regulation 4 approval from the appropriate agency for', 28994:'the contractor to use a government supply source other than those identified in paragraphs c1 through c3 of this section.', 28995:'d each request made under paragraph c of this section shall contain 1 the complete addressesto whichthe contractor’s mail, freight,', 28996:'and billing documents are to be directed; 2 a copy of thecontracting officer’s letter ofauthorizationto the contractor; 3 the prime', 28997:'contract numbers; and 4 the effective date and durationof each contract. e ineach authorization to the contractor, the contracting officer', 28998:'1 shall cite the contract numbers involved; 2 shall, when practicable, limit the period of the authorization; 3 shall specify,', 28999:'as appropriate, that iwhen requisitioningfrom gsa or dod, the contractor shall use fedstrip or milstrip, asappropriate, and include the activity', 29000:'address code assigned by gsa or dod; and iiwhen requisitioningfrom the va, the contractor should use fedstrip or milstrip, as', 29001:'appropriate, optional form 347, order for supplies or services see 53.302347, or an agencyapproved form; 4 mayinclude anyother limitations or', 29002:'conditions deemed necessary. for example, the contracting officer may i authorize purchases from government supply sources of any overhead supplies,', 29003:'but no production supplies; ii limit any authorization requirement to use government sources to a specific dollar amount, thereby leaving', 29004:'the contractor free to make smaller purchases from other sources if so desired; iii restrict the authorization to certain facilities', 29005:'or to specific contracts; or iv provide specifically if vesting of title is to differ from otherpropertyacquired or otherwise furnished', 29006:'by the contractor for use under the contract; and 5 shall instruct the contractor to comply with the applicable policies', 29007:'and procedures prescribed in this subpart. f after issuing the authorization, the authorizing agency shall be responsible for 1 ensuring', 29008:'that contractors comply with the terms of their authorizations and that supplies and services obtained from government supply sources are', 29009:'properly accounted for and properly used; 2 any indebtedness incurred for supplies or services and not satisfied by the contractor;', 29010:'and 3 submitting, in writing, to the appropriate government sources, address changes of the contractor and deletions when contracts are', 29011:'completed or terminated. 51.103 ordering from government supply sources. a contractors placing orders under federal supply schedules shall follow the', 29012:'terms of the applicable schedule and authorization and include with each order 1 a copy of the authorization unless a', 29013:'copy was previously furnished to the federal supply schedule contractor; and 2 the following statement: this order is placed under', 29014:'written authorization from dated . in the event of any inconsistency between the terms and conditions of this order and', 29015:'those of your federal supply schedule contract, the latter will govern. b contractors placing orders for government stock shall 1', 29016:'comply with therequirements of the contracting officer’s authorization, using fedstrip or milstrip procedures, as appropriate; 2 use only the government', 29017:'activity address code obtained bythe contracting officer in accordance with 51.102e along with the contractor’s assigned access code, when ordering', 29018:'from gsa customer supply centers. 3 order only those items required in the performance of their contracts. 51.104furnishing assistance to', 29019:'contractors. afterreceiving anactivity address code, the contracting officer will notify the appropriategsa regional office or military activity, which willcontactthe contractor', 29020:'and a provide initial copies of ordering information and instructions; and b when necessary, assist the contractorin preparing and submitting,', 29021:'as appropriate 1 the initial fedstrip or milstrip requisitions, the optional form 347, or the agencyapproved forms; 2 a completed', 29022:'gsa form 457, fss publications mailing list application, so that the contractor will automatically receive current copies of required publications;', 29023:'or subpart 51.1 contractor use of government supply sources 51.107 3 a completed gsa form 3525, application for customer supply', 29024:'center services and address change. 51.105payment for shipments. gsa, dod, and va will not forward bills to contractors for supplies', 29025:'ordered from government stock until after the supplies have been shipped. receiptof billing is sufficient evidenceto establish contractor liability and', 29026:'to provide a basis for payment. contracting officers should direct their contractors to make payment promptly upon receipt of billings.', 29027:'51.106 title. a titleto all property acquired bythe contractor under the contractingofficer’s authorization shall vest in the parties as provided', 29028:'in the contract, unless specifically provided for otherwise. b if contracts are with educational institutions and the government property clause', 29029:'at 52.2451, alternateii, is used, title to property having a unit acquisition cost of less than $5,000 shall vest in', 29030:'the contractor as provided in the clause. agencies may provide higher thresholds, if appropriate. 51.107contract clause. the contractingofficer shall insertthe', 29031:'clause at 52.2511, government supply sources, in solicitations and contracts when thecontracting officer authorizes the contractor to acquire supplies or', 29032:'services from a governmentsupplysource. this page intentionally left blank. 51.14 subpart 51.2 contractor use of interagency fleet management system ifms', 29033:'vehicles 51.203 subpart 51.2 contractor use of interagency fleet management system ifms vehicles 51.200scope of subpart. this subpart prescribes policies', 29034:'and procedures for the use by contractors of interagency fleet management system ifms vehicles and related services. in this subpart,', 29035:'the terms contractors and contracts include subcontractors and subcontracts see 45.102. 51.201 policy. a if it is inthe government’s interest,', 29036:'the contracting officer may authorize costreimbursement contractorsto obtain, for official purposes only, interagency fleet management system ifms vehicles and relatedservices,', 29037:'including 1 fuel and lubricants, 2 vehicleinspection, maintenance,andrepair, 3 vehiclestorage,and 4 commercially rented vehicles for shortterm use. b complete rebuilding', 29038:'of major components of contractorowned or leased equipment requires the approval of the contracting officerin each instance. c government contractors', 29039:'shall not be authorized to obtain interagency fleet management system ifms vehicles and related services for use in performance of', 29040:'any contract other than a costreimbursement contract, except as otherwise specifically approved by the administrator of the general services administration', 29041:'at the request of the agency involved. 51.202authorization. a thecontracting officer may authorize a costreimbursement contractor to obtain interagency fleet', 29042:'management system ifms vehicles andrelated services, if thecontracting officer has 1 determined that the authorization will accomplish theagency’s contractual objectivesandeffect', 29043:'demonstrable economies; 2 received evidence that the contractor has obtained motor vehicle liability insurance covering bodily injury and property damage,with', 29044:'limits of liabilityas required or approved by the agency, protecting thecontractor and the government against thirdparty claims arising from the', 29045:'ownership, maintenance, or use of an interagency fleet management system vehicle ifms; 3 arranged for periodic checks to ensure that', 29046:'authorized contractors are using vehicles and related services exclusively under costreimbursement contracts; 4 ensured that contractors shall establish and enforce', 29047:'suitable penalties for their employees who use or authorize the use of government vehicles for other than performance of government', 29048:'contracts see 41 cfr 10138.3011; 5 received a written statement that the contractor will assume, without the right of reimbursement', 29049:'from the government, the cost or expense of any use of interagency fleet management vehicles ifms and services not related', 29050:'to the performance of the contract; and 6 considered any recommendations of the contractor. b the authorization shall 1 be', 29051:'in writing; 2 cite the contract number; 3 specify any limitations on the authority, including its duration,and any other pertinent', 29052:'information; and 4 instruct the contractor to comply with the applicable policies and procedures provided in this subpart. c authorizations', 29053:'tosubcontractors shall be issued through, and with the approval of, the contractor. d contracting officersauthorizingcontractor useof interagency fleetmanagementsystem ifmsvehicles and', 29054:'related services subject their agencies to the responsibilities and liabilities provided in 41 cfr 10139.4 regarding accidents and claims. 51.203means', 29055:'of obtaining service. a authorized contractors shall submit requests for interagency fleet management system ifms vehicles and related services inwriting', 29056:'tothe appropriate gsa regional federal supply service bureau, attention: regionalfleet manager, except that requests for more than five vehicles shall', 29057:'be submitted to: general services administration fbf washington dc 20406, and not to the regions. each request shall include the', 29058:'following: federal acquisition regulation 1 two copies ofthe agency authorization to obtain vehicles and related services fromgsa. 2 the number', 29059:'of vehicles and related services required and period of use. 3 a listof the contractor’s employees who are authorized torequest', 29060:'vehicles and relatedservices. 4 a listing of the make, model, and serial numbers of contractorowned orleased equipment authorized to be', 29061:'serviced. 5 billing instructions and address. b contractors requesting unusual quantities ofvehicles should do so as farin advance as possibleto', 29062:'facilitate availability. 51.204 use of interagency fleet management system ifms vehicles and related services. contractors authorized to use interagency fleet', 29063:'management system ifms vehicles and related services shall comply with the requirements of 41 cfr 10139 and 41 cfr 10138.3011', 29064:'and theoperator’s packet furnished with each vehicle. see 41 cfr 1016.4 for additional guidance for hometowork use of government vehicles.', 29065:'51.205contract clause. the contractingofficer shall insertthe clause at 52.2512, interagencyfleet management system ifms vehicles and related services, in solicitations and', 29066:'contracts when a costreimbursement contract is contemplated and the contracting officer may authorize the contractor to use interagency fleet management', 29067:'system ifms vehicles and relatedservices. volume iiparts 52 & 53 federal acquisition regulation issued fiscal year 2019 by the: generalservicesadministration', 29068:'departmentofdefense national aeronautics andspaceadministration title48federal acquisition regulations system chapter 1 federal acquisition regulation volume i foreword the far is the', 29069:'primary regulation for use by all executive agencies in their acquisitionofsupplies andserviceswithappropriatedfunds. it became effective on april 1, 1984, and', 29070:'is issued within applicable laws under the joint authorities of the administrator of general services, the secretary of defense, and', 29071:'the administrator for the national aeronautics and space administration, under the broad policy guidelines of the administrator, office of federal', 29072:'procurement policy, office of management and budget. the far precludes agency acquisition regulations that unnecessarily repeat, paraphrase,orotherwiserestatethefar,limitsagencyacquisitionregulationsto thosenecessarytoimplementfarpoliciesandprocedureswithinanagency,and provides for', 29073:'coordination, simplicity, and uniformity in the federal acquisition process. it also provides for agency and public participation in developing the', 29074:'far and agency acquisition regulation. the federal acquisition regulation far includes all federal acquisition circulars through 202501. beginning in fiscal', 29075:'year 2019, designation of federal acquisition circulars was changed to reflect the fiscal year in the first four digits and', 29076:'the sequence of the issued circular in the last two digits. part 52 solicitation provisions and contract clauses sec. 52.000', 29077:'scope of part. 52.20319 prohibition on requiring certain internal confidentiality agreements or statements. subpart 52.1 instructions for 52.204 [reserved] using', 29078:'provisions and clauses 52.2041 approval of contract. 52.100 scope of subpart. 52.2042 security requirements. 52.101 using part 52. 52.2043 taxpayer', 29079:'identification. 52.102 incorporating provisions and clauses. 52.2044 [reserved] 52.103 identification of provisions and clauses. 52.2045 womenowned business other than small', 29080:'52.104 procedures for modifying and completing business. provisions and clauses. 52.2046 unique entity identifier. 52.105 procedures for using alternates. 52.2047', 29081:'system for award management. 52.106 [reserved] 52.2048 annual representations and certifications. 52.107 provisions and clauses prescribed in subpart 52.2049 personal', 29082:'identity verification of contractor 52.1. personnel. 52.20410 reporting executive compensation and subpart 52.2 text of provisions and clauses firsttier subcontract', 29083:'awards. 52.200 scope of subpart. 52.20411 [reserved] 52.201 [reserved] 52.20412 unique entity identifier maintenance. 52.2011 acquisition 360: voluntary survey. 52.20413', 29084:'system for award management 52.202 [reserved] maintenance. 52.2021 definitions. 52.20414 service contract reporting requirements. 52.203 [reserved] 52.20415 service contract reporting', 29085:'requirements for 52.2031 [reserved] indefinitedelivery contracts. 52.2032 certificate of independent price 52.20416 commercial and government entity code determination. reporting. 52.2033', 29086:'gratuities. 52.20417 ownership or control of offeror. 52.2034 [reserved] 52.20418 commercial and government entity code 52.2035 covenant against contingent fees.', 29087:'maintenance. 52.2036 restrictions on subcontractor sales to the 52.20419 incorporation by reference of government. representations and certifications. 52.2037 antikickback procedures.', 29088:'52.20420 predecessor of offeror. 52.2038 cancellation, rescission, and recovery of 52.20421 basic safeguarding of covered contractor funds for illegal or', 29089:'improper activity. information systems. 52.2039 [reserved] 52.20422 alternative line item proposal. 52.20310 price or fee adjustment for illegal or 52.20423', 29090:'prohibition on contracting for hardware, improper activity. software, and services developed or 52.20311 certification and disclosure regarding provided by kaspersky', 29091:'lab covered payments to influence certain federal entities. transactions. 52.20424 representation regarding certain 52.20312 limitation on payments to influence certain', 29092:'telecommunications and video surveillance federal transactions. services or equipment. 52.20313 contractor code of business ethics and 52.20425 prohibition on contracting', 29093:'for certain conduct. telecommunications and video surveillance 52.20314 display of hotline posters. services or equipment. 52.20315 whistleblower protections under the', 29094:'52.20426 covered telecommunications equipment or american recovery and reinvestment act of servicesrepresentation. 2009. 52.20427 prohibition on a bytedance covered 52.20316', 29095:'preventing personal conflicts of interest. application. 52.20317 contractor employee whistleblower rights. 52.20428 federal acquisition supply chain security 52.20318 prohibition on', 29096:'contracting with entities act orders—federal supply schedules, that require certain internal confidentiality governmentwide acquisition contracts, and agreements or statementsrepresentation. multiagency', 29097:'contracts. fac 202501 november 12, 2024 52.20429 federal acquisition supply chain security act orders—representation and disclosures. 52.20430 federal acquisition supply', 29098:'chain security act orders—prohibition. 52.205 [reserved] 52.206 [reserved] 52.207 [reserved] 52.2071 notice of standard competition. 52.2072 notice of streamlined competition.', 29099:'52.2073 right of first refusal of employment. 52.2074 economic purchase quantitysupplies. 52.2075 option to purchase equipment. 52.2076 solicitationofoffersfromsmallbusiness concerns andsmallbusiness', 29100:'teaming arrangementsor jointventures multiple award contracts. 52.208 [reserved] 52.2081 [reserved] 52.2082 [reserved] 52.2083 [reserved] 52.2084 vehicleleasepayments. 52.2085 condition of leased', 29101:'vehicles. 52.2086 markingofleasedvehicles. 52.2087 tagging of leased vehicles. 52.2088 [reserved] 52.2089 contractor use of mandatory sources of supply or services.', 29102:'52.209 [reserved] 52.2091 qualification requirements. 52.2092 prohibition on contracting with inverted domestic corporationsrepresentation. 52.2093 firstarticleapprovalcontractortesting. 52.2094 firstarticleapprovalgovernmenttesting. 52.2095 certification regarding', 29103:'responsibility matters. 52.2096 protectingthegovernment’sinterestwhen subcontracting with contractors debarred, suspended, or proposed for debarment. 52.2097 information regarding responsibility matters. 52.2098 [reserved]', 29104:'52.2099 updatesofpubliclyavailableinformation regarding responsibility matters. 52.20910 prohibition on contracting with inverted domestic corporations. 52.20911 representation by corporations regarding delinquent tax', 29105:'liability or a felony conviction under anyfederal law. 52.20912 certificationregardingtaxmatters. 52.20913 violationofarmscontroltreatiesor agreementscertification. 52.20914 reserve officer training corps and military', 29106:'recruiting on campus. 52.210 [reserved] 52.2101 market research. 52.211 [reserved] 52.2111 52.2112 52.2113 52.2114 52.2115 52.2116 52.2117 52.2118 52.2119 52.21110', 29107:'52.21111 52.21112 52.21113 52.21114 52.21115 52.21116 52.21117 52.21118 52.212 52.2121 52.2122 52.2123 52.2124 52.2125 52.213 52.2131 52.2132 52.2133 availability ofspecifications', 29108:'listed in the gsa index of federal specifications, standards and commercial item descriptions, fpmr part 10129. availability ofdefense specifications, standards,', 29109:'and data item descriptions in the acquisition streamlining and standardization information system assist website. availability ofspecifications not listed in the', 29110:'gsa index of federal specifications, standards and commercial item descriptions. availability for examination of specifications not listed in the gsa', 29111:'index of federal specifications, standards and commercial item descriptions. material requirements. brand name or equal. alternatives to governmentunique standards. timeof', 29112:'delivery. desired and required time of delivery. commencement, prosecution, and completion of work. liquidated damagessupplies, services, or research and development.', 29113:'liquidated damagesconstruction. timeextensions. notice of priority rating for national defense,emergency preparedness, and energy programuse. defense priority and allocation requirements. variation', 29114:'in quantity. delivery of excess quantities. variation in estimated quantity. [reserved] instructions to offerors—commercial products and commercial services. evaluation—commercial products', 29115:'and commercial services. offeror representations and certifications —commercial products and commercial services. contractterms and conditions— commercial products and commercial services.', 29116:'contractterms and conditions required to implement statutes or executive orders —commercial products and commercial services. [reserved] fast payment procedure. invoices.', 29117:'notice to supplier. fac 202501 november 12, 2024 52.2134 terms and conditions—simplified acquisitions other than commercial products and commercial services.', 29118:'52.214 [reserved] 52.2141 [reserved] 52.2142 [reserved] 52.2143 amendments to invitations for bids. 52.2144 false statements in bids. 52.2145 submission of', 29119:'bids. 52.2146 explanation to prospective bidders. 52.2147 late submissions, modifications, and withdrawals of bids. 52.2148 [reserved] 52.2149 [reserved] 52.21410 contractawardsealedbidding.', 29120:'52.21411 [reserved] 52.21412 preparation of bids. 52.21413 [reserved] 52.21414 place of performancesealed bidding. 52.21415 period for acceptance of bids. 52.21416', 29121:'minimum bid acceptance period. 52.21417 [reserved] 52.21418 preparation of bidsconstruction. 52.21419 contractawardsealedbidding construction. 52.21420 bid samples. 52.21421 descriptive literature. 52.21422', 29122:'evaluationofbidsformultipleawards. 52.21423 late submissions, modifications, revisions, and withdrawals of technical proposals undertwostep sealed bidding. 52.21424 multipletechnicalproposals. 52.21425 step two of', 29123:'twostep sealed bidding. 52.21426 audit and recordssealed bidding. 52.21427 price reduction for defective certified cost or pricing datamodificationssealed bidding. 52.21428', 29124:'subcontractor certified cost or pricing data modificationssealed bidding. 52.21429 order of precedencesealed bidding. 52.21430 [reserved] 52.21431 facsimile bids. 52.21432 [reserved]', 29125:'52.21433 [reserved] 52.21434 submissionofoffersintheenglish language. 52.21435 submissionofoffersinu.s. currency. 52.215 [reserved] 52.2151 instructions to offerorscompetitive acquisition. 52.2152 audit and recordsnegotiation. 52.2153', 29126:'request for information or solicitation for planning purposes. 52.2154 [reserved] 52.2155 facsimile proposals. 52.2156 place of performance. 52.2157 [reserved] 52.2158', 29127:'52.2159 52.21510 52.21511 52.21512 52.21513 52.21514 52.21515 52.21516 52.21517 52.21518 52.21519 52.21520 52.21521 52.21522 52.21523 52.216 52.2161 52.2162 52.2163 52.2164', 29128:'52.2165 52.2166 52.2167 52.2168 52.2169 52.21610 52.21611 52.21612 52.21613 52.21614 52.21615 52.21616 52.21617 52.21618 52.21619 52.21620 52.21621 52.21622 52.21623 52.21624', 29129:'52.21625 order of precedenceuniform contract format. changes or additions to makeorbuy program. price reduction for defective certified cost or pricing', 29130:'data. price reduction for defective certified cost or pricing datamodifications. subcontractor certified cost or pricing data. subcontractor certified cost or', 29131:'pricing data modifications. integrity of unit prices. pension adjustments and asset reversions. facilities capital cost of money. waiver of facilities', 29132:'capital cost of money. reversion or adjustment of plans for postretirement benefits prb other than pensions. notification of ownership changes.', 29133:'requirements for certified cost or pricing data and data other than certified cost or pricing data. requirements for certified cost', 29134:'or pricing data and data other than certified cost or pricing datamodifications. limitationson passthrough charges identification ofsubcontract effort. limitationson passthrough', 29135:'charges. [reserved] type ofcontract. economic price adjustmentstandard supplies. economic price adjustmentsemistandard supplies. economic price adjustmentlabor and material. price redeterminationprospective. price', 29136:'redeterminationretroactive. allowable cost and payment. fixed fee. fixed feeconstruction. incentive fee. cost contractno fee. costsharing contractno fee. [reserved] [reserved] predetermined', 29137:'indirect cost rates. incentiveprice revisionfirm target. incentiveprice revisionsuccessive targets. ordering. order limitations. definitequantity. requirements. indefinitequantity. execution andcommencement of work. limitation', 29138:'of governmentliability. contract definitization. 52.21626 payments of allowable costs before definitization. 52.21627 single or multiple awards. 52.21628 multipleawardsforadvisoryand assistance services.', 29139:'52.21629 timeandmaterials/laborhourproposal requirements—other than commercial acquisition with adequate price competition. 52.21630 timeandmaterials/laborhourproposal requirements—other than commercial acquisition without adequateprice competition. 52.21631', 29140:'timeandmaterials/laborhourproposal requirements—commercial acquisition. 52.21632 taskorder and deliveryorder ombudsman. 52.217 [reserved] 52.2171 [reserved] 52.2172 cancellation under multiyear contracts. 52.2173 evaluation exclusive', 29141:'of options. 52.2174 evaluationofoptionsexercisedattimeof contractaward. 52.2175 evaluation of options. 52.2176 option for increased quantity. 52.2177 option for increased quantityseparately priced', 29142:'line item. 52.2178 option to extend services. 52.2179 optiontoextendthetermofthecontract. 52.21710 reverse auction 52.21711 reverse auction—orders. 52.21712 reverse auction services. 52.218', 29143:'[reserved] 52.219 [reserved] 52.2191 small business program representations. 52.2192 equal low bids. 52.2193 notice of hubzone setaside or sole source', 29144:'award. 52.2194 notice of price evaluation preference for hubzone small business concerns. 52.2195 [reserved] 52.2196 noticeoftotalsmallbusinesssetaside. 52.2197 notice of partial', 29145:'small business setaside. 52.2198 utilization of small business concerns. 52.2199 small business subcontracting plan. 52.21910 incentive subcontracting program. 52.21911 special', 29146:'8a contract conditions. 52.21912 special 8a subcontract conditions. 52.21913 notice of setaside of orders. 52.21914 limitations on subcontracting. 52.21915 [reserved]', 29147:'52.21916 liquidated damagessubcontracting plan. 52.21917 section8aaward. 52.21918 notification of competition limited to eligible 8a participants. 52.21919 [reserved] 52.21920 [reserved] 52.21921', 29148:'[reserved] 524 52.21922 52.21923 52.21924 52.21925 52.21926 52.21927 52.21928 52.21929 52.21930 52.21931 52.21932 52.21933 52.220 52.221 52.222 52.2221 52.2222 52.2223', 29149:'52.2224 52.2225 52.2226 52.2227 52.2228 52.2229 52.22210 52.22211 52.22212 52.22213 52.22214 52.22215 52.22216 52.22217 52.22218 52.22219 52.22220 52.22221 52.22222 52.22223', 29150:'[reserved] [reserved] [reserved] [reserved] [reserved] notice of setaside for, or solesource award to, servicedisabledveteranowned small business sdvosb concerns eligible under', 29151:'the sdvosb program. postaward small business program rerepresentation. notice of setaside for, or solesource award to, economicallydisadvantaged womenowned small business', 29152:'concerns. notice of setaside for, or solesource award to, womenownedsmallbusiness concerns eligible under the womenowned small business program. notice of', 29153:'small business reserve. orders issued directly under small business reserves nonmanufacturer rule. [reserved] [reserved] [reserved] notice to the government of', 29154:'labor disputes. payment for overtime premiums. convictlabor. contractwork hours and safety standards overtime compensation. construction wage raterequirements secondary site of', 29155:'the work. construction wage raterequirements. withholdingof funds. payrolls and basic records. apprentices and trainees. compliance with copeland act requirements. subcontracts', 29156:'labor standards. contractterminationdebarment. compliance with construction wage rate requirements and related regulations. disputes concerning labor standards. certification of eligibility. approvalof', 29157:'wage rates. [reserved] certification regarding knowledge of child labor for listed end products. child laborcooperation with authorities and remedies. contracts', 29158:'for materials, supplies, articles, and equipment. prohibition of segregated facilities. previous contracts and compliance reports. notice of requirement for affirmative', 29159:'action to ensure equal employment opportunity for construction. 52.22224 preaward onsite equal opportunity compliance evaluation. 52.22225 affirmative action compliance. 52.22226', 29160:'equal opportunity. 52.22227 affirmative action compliance requirements for construction. 52.22228 [reserved] 52.22229 notification of visa denial. 52.22230 constructionwageraterequirementsprice adjustment none', 29161:'or separately specified method. 52.22231 constructionwageraterequirementsprice adjustment percentage method. 52.22232 constructionwageraterequirementsprice adjustment actual method. 52.22233 notice of requirement for project', 29162:'labor agreement. 52.22234 project labor agreement. 52.22235 equal opportunity for veterans. 52.22236 equal opportunity for workers with disabilities. 52.22237 employment', 29163:'reports on veterans. 52.22238 compliance with veterans’ employment reporting requirements. 52.22239 [reserved] 52.22240 notification of employee rights under the national', 29164:'labor relations act. 52.22241 service contract labor standards. 52.22242 statement of equivalent rates for federal hires. 52.22243 fair labor standards', 29165:'act and service contract labor standardsprice adjustment multiple yearand option contracts. 52.22244 fair labor standards act and service contract labor', 29166:'standardsprice adjustment. 52.22245 [reserved] 52.22246 evaluation of compensation for professional employees. 52.22247 [reserved] 52.22248 exemption from application of the service', 29167:'contract labor standards to contracts for maintenance, calibration, or repair of certain equipmentcertification. 52.22249 service contract labor standardsplace of performance', 29168:'unknown. 52.22250 combating trafficking in persons. 52.22251 exemption from application of the service contract labor standards to contracts for maintenance,', 29169:'calibration, or repair of certain equipmentrequirements. 52.22252 exemption from application of the service contract labor standards to contracts for certain', 29170:'servicescertification. 52.22253 exemption from application of the service contract labor standards to contracts for certain servicesrequirements. 52.22254 employment eligibility verification.', 29171:'52.22255 52.22256 52.22257 52.22258 52.22259 52.22260 52.22261 52.22262 52.223 52.2231 52.2232 52.2233 52.2234 52.2235 52.2236 52.2237 52.2238 52.2239 52.22310 52.22311', 29172:'52.22312 52.22313 52.22314 52.22315 52.22316 52.22317 52.22318 52.22319 52.22320 52.22321 52.22322 52.22323 52.224 52.2241 52.2242 52.2243 52.225 52.2251 52.2252 52.2253', 29173:'52.2254 minimum wages for contractorworkers under executive order 14026. certification regarding traffickingin persons compliance plan. [reserved]. [reserved]. [reserved]. [reserved]. [reserved].', 29174:'paid sick leave under executive order 13706. [reserved] biobased product certification. reporting of biobased products under service and construction contracts.', 29175:'hazardous material identification and material safety data. recovered material certification. pollution prevention and righttoknow information. [reserved] notice of radioactive materials.', 29176:'[reserved] estimate of percentage of recovered material content for epadesignated items. waste reduction program. ozonedepleting substances and highglobal warmingpotential hydrofluorocarbons.', 29177:'maintenance,service, repair, or disposal of refrigeration equipment and air conditioners. [reserved] [reserved] [reserved] [reserved] [reserved] [reserved] compliance with environmental management', 29178:'systems. aerosols. foams. public disclosure of greenhouse gas emissions and reduction goals representation. sustainable products and services. [reserved] privacy act', 29179:'notification. privacy act. privacy training. [reserved] buy americansupplies buy american certificate. buy americanfree trade agreements israeli trade act. buy americanfree', 29180:'trade agreements israeli trade act certificate. 52.2255 trade agreements. 52.2256 trade agreements certificate. 52.2257 waiver of buy american statute for', 29181:'civil aircraft and related articles. 52.2258 dutyfree entry. 52.2259 buy americanconstruction materials. 52.22510 notice of buy american requirement construction materials.', 29182:'52.22511 buy americanconstruction materials under trade agreements. 52.22512 notice of buy american requirement construction materials under trade agreements. 52.22513 restrictions', 29183:'on certain foreign purchases. 52.22514 inconsistencybetweenenglishversionand translation of contract. 52.22515 [reserved] 52.22516 [reserved] 52.22517 evaluationofforeigncurrencyoffers. 52.22518 place of manufacture. 52.22519', 29184:'contractor personnel in a designated operational area or supporting a diplomatic or consular mission outside the united states. 52.22520 prohibition', 29185:'on conducting restricted business operations in sudancertification. 52.22521 required use of american iron, steel, and manufactured goodsbuy american statute construction', 29186:'materials. 52.22522 notice of required use of american iron, steel, and manufactured goodsbuy american statuteconstruction materials. 52.22523 required use of', 29187:'american iron, steel, and manufactured goodsbuy american statuteconstruction materials undertrade agreements. 52.22524 notice of required use of american iron, steel,', 29188:'and manufactured goodsbuy american statuteconstruction materials under trade agreements. 52.22525 prohibition on contracting with entities engaging in certain activities or', 29189:'transactionsrelating to iran— representation and certifications. 52.22526 contractors performing private security functions outside the united states. 52.226 [reserved] 52.2261 utilizationofindianorganizationsand', 29190:'indianowned economic enterprises. 52.2262 historically black college or university and minority institution representation. 52.2263 disaster or emergency area representation. 52.2264', 29191:'noticeofdisasteroremergencyareaset aside. 52.2265 restrictions on subcontracting outside disaster or emergency area. 52.2266 52.2267 52.2268 52.227 52.2271 52.2272 52.2273 52.2274 52.2275', 29192:'52.2276 52.2277 52.2278 52.2279 52.22710 52.22711 52.22712 52.22713 52.22714 52.22715 52.22716 52.22717 52.22718 52.22719 52.22720 52.22721 52.22722 52.22723 52.228 52.2281', 29193:'52.2282 52.2283 52.2284 52.2285 52.2286 52.2287 52.2288 52.2289 52.22810 52.22811 52.22812 52.22813 52.22814 52.22815 promoting excess food donation to nonprofit', 29194:'organizations. drugfree workplace. encouraging contractor policiesto ban text messaging while driving. [reserved] authorization and consent. notice and assistance regarding patent', 29195:'and copyright infringement. patent indemnity. patent indemnityconstruction contracts. waiver of indemnity. royalty information. patentsnotice of government licensee. [reserved] refund of', 29196:'royalties. filing of patent applicationsclassified subjectmatter. patent rightsownership bythe contractor. [reserved] patent rightsownership by the government. rights in datageneral. representation', 29197:'of limited rights data and restricted computer software. additional data requirements. rights in dataspecialworks. rights in dataexisting works. commercial computer', 29198:'software license. rights in datasbir program. technical data declaration, revision,and withholdingof paymentmajor systems. major systemminimum rights. rights to proposal data', 29199:'technical. [reserved] bid guarantee. additional bond security. workers’ compensationinsurance defense base act. workers’ compensationand warhazard insurance overseas. insurancework ona government', 29200:'installation. [reserved] insuranceliability to third persons. liability and insuranceleased motor vehicles. cargo insurance. vehicular and general public liability insurance. individual', 29201:'surety—pledge of assets. prospective subcontractor requests for bonds. alternative payment protections. irrevocable letter of credit. performance and payment bonds construction.', 29202:'52.22816 performance and payment bondsother than construction. 52.22817 individual surety—pledge of assets bid guarantee. 52.229 [reserved] 52.2291 stateandlocaltaxes. 52.2292 north', 29203:'carolina state and local sales and use tax. 52.2293 federal, state, and local taxes. 52.2294 federal,state,andlocaltaxesstateand local adjustments. 52.2295 [reserved]', 29204:'52.2296 taxesforeign fixedprice contracts. 52.2297 taxesfixedprice contracts with foreign governments. 52.2298 taxesforeign costreimbursement contracts. 52.2299 taxescostreimbursement contracts with foreign governments.', 29205:'52.22910 state of new mexico gross receipts and compensating tax. 52.22911 taxoncertainforeignprocurements— notice and representation. 52.22912 taxoncertainforeignprocurements. 52.22913 taxes—foreign contracts', 29206:'in afghanistan. 52.22914 taxes—foreign contracts in afghanistan north atlantic treaty organization status of forces agreement. 52.230 [reserved] 52.2301 cost accounting', 29207:'standards notices and certification. 52.2302 cost accounting standards. 52.2303 disclosure and consistency of cost accounting practices. 52.2304 disclosure and consistency', 29208:'of cost accounting practicesforeign concerns. 52.2305 cost accounting standardseducational institution. 52.2306 administration of cost accounting standards. 52.2307 proposal disclosurecost accounting', 29209:'practice changes. 52.231 [reserved] 52.232 [reserved] 52.2321 payments. 52.2322 payments under fixedprice research and development contracts. 52.2323 payments under personal', 29210:'services contracts. 52.2324 payments under transportation contracts and transportationrelated services contracts. 52.2325 payments under fixedprice construction contracts. 52.2326 payment under', 29211:'communication service contracts with common carriers. 52.2327 payments under timeandmaterials and laborhour contracts. 52.2328 discounts for prompt payment. 52.2329 52.23210', 29212:'52.23211 52.23212 52.23213 52.23214 52.23215 52.23216 52.23217 52.23218 52.23219 52.23220 52.23221 52.23222 52.23223 52.23224 52.23225 52.23226 52.23227 52.23228 52.23229 52.23230', 29213:'52.23231 52.23232 52.23233 52.23234 52.23235 52.23236 52.23237 52.23238 52.23239 52.23240 52.233 52.2331 52.2332 52.2333 52.2334 52.234 52.2341 limitation on withholding', 29214:'of payments. payments under fixedprice architect engineer contracts. extras. advance payments. notice of progress payments. notice of availability of progress', 29215:'payments exclusively for small business concerns. progress payments not included. progress payments. interest. availability offunds. availability offunds for thenext fiscal', 29216:'year. limitation of cost. [reserved] limitation of funds. assignment of claims. prohibition of assignment of claims. prompt payment. prompt payment', 29217:'for fixedprice architect engineer contracts. prompt payment for construction contracts. invitation to propose performancebased payments. terms for financing of purchases', 29218:'of commercial products and commercial services. installment payments for commercial products and commercial services. invitationto propose financing terms. performancebased payments.', 29219:'payment by electronic funds transfer system for award management. payment by electronic funds transferother than system for award management. designation', 29220:'ofoffice for government receipt of electronic fundstransfer information. payment by third party. multiple payment arrangements. submission of electronic funds transfer', 29221:'information withoffer. unenforceability of unauthorized obligations. providing accelerated payments to small business subcontractors. [reserved] disputes. service of protest. protest after', 29222:'award. applicable law for breach of contract claim. [reserved] industrial resources developedundertitle iii, defense production act. fac 202501 november 12,', 29223:'2024 52.2342 noticeofearnedvaluemanagement systempreaward integrated baseline review. 52.2343 noticeofearnedvaluemanagement systempost award postaward integrated baseline review. 52.2344 earnedvaluemanagementsystem. 52.235 [reserved] 52.236', 29224:'[reserved] 52.2361 performanceofworkbythecontractor. 52.2362 differingsiteconditions. 52.2363 site investigation and conditions affecting thework. 52.2364 physical data. 52.2365 material and workmanship. 52.2366', 29225:'superintendence by the contractor. 52.2367 permits and responsibilities. 52.2368 other contracts. 52.2369 protection of existing vegetation, structures, equipment, utilities, and', 29226:'improvements. 52.23610 operations and storage areas. 52.23611 use and possession prior to completion. 52.23612 cleaning up. 52.23613 accident prevention. 52.23614', 29227:'availability and use of utility services. 52.23615 schedules for construction contracts. 52.23616 quantity surveys. 52.23617 layout of work. 52.23618 work', 29228:'oversight in costreimbursement construction contracts. 52.23619 organizationanddirectionofthework. 52.23620 [reserved] 52.23621 specifications and drawings for construction. 52.23622 designwithinfundinglimitations. 52.23623 responsibility of', 29229:'the architectengineer contractor. 52.23624 work oversight in architectengineer contracts. 52.23625 requirements for registration of designers. 52.23626 preconstruction conference. 52.23627 site', 29230:'visit construction. 52.23628 preparation of proposalsconstruction. 52.237 [reserved] 52.2371 site visit. 52.2372 protection of government buildings, equipment, and vegetation. 52.2373', 29231:'continuity of services. 52.2374 paymentbygovernmenttocontractor. 52.2375 payment by contractor to government. 52.2376 incremental payment by contractor to government. 52.2377 indemnification', 29232:'and medical liability insurance. 52.2378 restriction on severance payments to foreign nationals. 52.2379 52.23710 52.238 52.239 52.2391 52.240 52.2401 52.241', 29233:'52.2411 52.2412 52.2413 52.2414 52.2415 52.2416 52.2417 52.2418 52.2419 52.24110 52.24111 52.24112 52.24113 52.242 52.2421 52.2422 52.2423 52.2424 52.2425 52.2426', 29234:'52.2427 52.2428 52.2429 52.24210 52.24211 52.24212 52.24213 52.24214 52.24215 52.24216 52.24217 52.243 52.2431 52.2432 52.2433 52.2434 52.2435 52.2436 52.2437 52.244', 29235:'waiver of limitationon severancepayments to foreign nationals. identification of uncompensated overtime. [reserved] [reserved] privacy or security safeguards. [reserved] prohibition on', 29236:'unmanned aircraft systems manufactured or assembled by american security drone actcovered foreign entities. utility services provisions and clauses. electricservice territorycompliance', 29237:'representation. order of precedenceutilities. scope and duration of contract. change in class of service. contractor’sfacilities. service provisions. change in ratesor', 29238:'termsandconditions of service for regulated services. change in ratesor termsandconditions of service for unregulated services. connection charge. terminationliability. multiple service', 29239:'locations. nonrefundable, nonrecurring service charge. capital credits. [reserved] notice of intent to disallow costs. production progress reports. penalties for unallowable', 29240:'costs. certification of final indirect costs. payments to small business subcontractors. [reserved] [reserved] [reserved] [reserved] [reserved] [reserved] [reserved] bankruptcy. suspension', 29241:'of work. stopwork order. [reserved] government delay of work. [reserved] changesfixedprice. changescostreimbursement. changestimeandmaterials or labor hours. changes. changes and changed', 29242:'conditions. change order accounting. notification of changes. [reserved] fac 202501 november 12, 2024 52.2441 [reserved] 52.2442 subcontracts. 52.2443 [reserved] 52.2444', 29243:'subcontractors and outside associates and consultants architectengineer services. 52.2445 competition in subcontracting. 52.2446 subcontracts for commercial products and commercial services.', 29244:'52.245 [reserved] 52.2451 government property. 52.2452 government property installation operation services. 52.2453 [reserved] 52.2454 [reserved] 52.2455 [reserved] 52.2456 [reserved] 52.2457', 29245:'[reserved] 52.2458 [reserved] 52.2459 useandcharges. 52.246 [reserved] 52.2461 contractor inspection requirements. 52.2462 inspection of suppliesfixedprice. 52.2463 inspection of suppliescostreimbursement. 52.2464', 29246:'inspection of servicesfixedprice. 52.2465 inspection of servicescostreimbursement. 52.2466 inspectiontimeandmaterial and labor hour. 52.2467 inspection of research and development fixedprice. 52.2468', 29247:'inspection of research and developmentcost reimbursement. 52.2469 inspection of research and development short form. 52.24610 [reserved] 52.24611 higherlevel contract quality', 29248:'requirement. 52.24612 inspection of construction. 52.24613 inspectiondismantling, demolition, or removal of improvements. 52.24614 inspection of transportation. 52.24615 certificate of conformance.', 29249:'52.24616 responsibility for supplies. 52.24617 warrantyofsuppliesofanoncomplex nature. 52.24618 warrantyofsuppliesofacomplexnature. 52.24619 warrantyofsystemsandequipmentunder performance specifications or design criteria. 52.24620 warrantyofservices. 52.24621 warrantyofconstruction.', 29250:'52.24622 [reserved] 52.24623 limitation of liability. 52.24624 limitation of liabilityhighvalue items. 52.24625 limitation of liabilityservices. 52.24626 reporting nonconforming items. 52.247', 29251:'[reserved] 52.2471 commercial bill of lading notations. 52.2472 permits, authorities, or franchises. 52.2473 52.2474 52.2475 52.2476 52.2477 52.2478 52.2479 52.24710', 29252:'52.24711 52.24712 52.24713 52.24714 52.24715 52.24716 52.24717 52.24718 52.24719 52.24720 52.24721 52.24722 52.24723 52.24724 52.24725 52.24726 52.24727 52.24728 52.24729 52.24730', 29253:'52.24731 52.24732 52.24733 52.24734 52.24735 52.24736 52.24737 52.24738 52.24739 52.24740 52.24741 52.24742 52.24743 capability to perform a contract for the', 29254:'relocation of a federal office. inspection of shipping and receiving facilities. familiarization with conditions. financial statement. freight excluded. estimated weights', 29255:'orquantities not guaranteed. agreed weightgeneral freight. net weightgeneral freight. net weighthousehold goods oroffice furniture. supervision, labor, or materials. accessorial servicesmoving', 29256:'contracts. contractor responsibility for receipt of shipment. contractor responsibility for loading and unloading. contractor responsibility for returning undelivered freight. charges.', 29257:'multiple shipments. stopping in transit for partial unloading. estimated quantitiesor weights for evaluationof offers. contractor liability for personal injury and/', 29258:'or property damage. contractor liability for loss of and/or damage to freight other than household goods. contractor liability for loss', 29259:'of and/or damage to household goods. advance notification by the government. governmentfurnished equipment with or without operators. government direction and', 29260:'marking. contractnot affected by oral agreement. contractor’sinvoices. f.o.b. origin. f.o.b. origin,contractor’s facility. f.o.b. origin,freight allowed. f.o.b. origin,freight prepaid. f.o.b. origin,with', 29261:'differentials. f.o.b. destination. f.o.b. destination, withinconsignee’s premises. f.a.s. vessel, portof shipment. f.o.b. vessel, portof shipment. f.o.b. inland carrier, point of', 29262:'exportation. f.o.b. inland point,country ofimportation. ex dock,pier, or warehouse, port of importation. c.& f. destination. c.i.f. destination. f.o.b. designated aircarrier’s', 29263:'terminal, point of exportation. 52.24744 f.o.b. designated air carrier’s terminal, 52.2494 termination for convenience of the point of importation. government', 29264:'services short form. 52.24745 f.o.b. origin and/or f.o.b. destination 52.2495 termination for convenience of the evaluation. government educational and other', 29265:'52.24746 shipping points used in evaluation of nonprofit institutions. f.o.b. origin offers. 52.2496 termination costreimbursement. 52.24747 evaluationf.o.b. origin. 52.2497 termination', 29266:'fixedprice architect52.247 48 f.o.b. destinationevidence of shipment. engineer. 52.24749 destination unknown. 52.2498 default fixedprice supply and service. 52.24750 no evaluation', 29267:'of transportation costs. 52.2499 default fixedprice research and 52.24751 evaluation of export offers. development. 52.24752 clearance and documentation requirements52.249 10', 29268:'default fixedprice construction. shipments to dod air or water terminal 52.24911 [reserved] transshipment points. 52.24912 termination personal services. 52.24753 freight', 29269:'classification description. 52.24913 [reserved] 52.24754 [reserved] 52.24914 excusable delays. 52.24755 f.o.b. point for delivery of government52.250 [reserved] furnished property. 52.2501', 29270:'indemnification under public law85804. 52.24756 transit arrangements. 52.2502 safety act coverage not applicable. 52.24757 transportation transit privilege credits. 52.2503 safety', 29271:'act block designation/ 52.24758 loading, blocking, and bracing of freight certification. car shipments. 52.2504 safety act prequalification designation 52.24759 f.o.b.', 29272:'origincarload and truckload notice. shipments. 52.2505 safety actequitable adjustment. 52.24760 guaranteed shipping characteristics. 52.251 [reserved] 52.24761 f.o.b. originminimum size of', 29273:'shipments. 52.2511 government supply sources. 52.24762 specific quantities unknown. 52.2512 interagency fleet management system 52.24763 preference for u.s.flag air carriers.', 29274:'vehicles and related services. 52.24764 preference for privately owned u.s.flag 52.252 [reserved] commercial vessels. 52.2521 solicitation provisions incorporated by 52.24765', 29275:'f.o.b. origin, prepaid freightsmall package reference. shipments. 52.2522 clauses incorporated by reference. 52.24766 returnable cylinders. 52.2523 alterations in solicitation. 52.24767', 29276:'submission of transportation documents for 52.2524 alterations in contract. audit. 52.2525 authorized deviations in provisions. 52.24768 report of shipment repship.', 29277:'52.2526 authorized deviations in clauses. 52.248 [reserved] 52.253 [reserved] 52.2481 value engineering. 52.2531 computer generated forms. 52.2482 value engineeringarchitectengineer. 52.2483', 29278:'value engineeringconstruction. subpart 52.3 provision and clause matrix 52.249 [reserved] 52.300 scope of subpart. 52.2491 termination for convenience of the', 29279:'52.301 solicitation provisions and contract clauses government fixedprice short form. matrix. 52.2492 termination for convenience of the 52.3011 far matrix', 29280:'government fixedprice. 52.3012 matrix notes 52.2493 termination for convenience of the government dismantling, demolition, or removal of improvements. subpart 52.1', 29281:'instructions for using provisions and clauses 52.101 52.000scope of part. this part a gives instructions for using provisions and clauses', 29282:'in solicitations and/or contracts; b sets forth the solicitation provisions and contract clauses prescribed by this regulation; and c presents', 29283:'a matrixlisting the farprovisionsandclauses applicableto each principal contract type and/orpurpose e.g., fixedprice supply,costreimbursementresearch and development. subpart 52.1 instructions for using', 29284:'provisions and clauses 52.100scope of subpart. this subpart a gives instructions for using part 52, including the explanation and use', 29285:'of provision and clause numbers, prescriptions, prefaces, and the matrix; b prescribes procedures for incorporating, identifying, and modifying provisions and', 29286:'clauses in solicitations and contracts, and for using alternates; and c describes the derivation offar provisions and clauses. 52.101using part', 29287:'52. a definition. modification, as used in this subpart, means a minor change in the details of a provision or', 29288:'clause that is specifically authorizedby the far and doesnot alter the substance ofthe provisionor clausesee 52.104. b numbering— 1 far', 29289:'provisions and clauses. subpart 52.2setsforththetextofallfarprovisionsandclauses,each in its own separate subsection. the subpart isarranged by subject matter, in the same order', 29290:'as, and keyedto, the parts of the far. each far provision or clause is uniquelyidentified. all far provision andclause numbers', 29291:'begin with 52.2, since thetextofallfarprovisionsandclausesappearin subpart 52.2. the next two digits of the provision or clause number correspond tothe number', 29292:'ofthe far subject partin whichthe provisionor clauseis prescribed. thefar provision or clause number is then completed by a hyphen and', 29293:'a sequential number assigned within each section of subpart 52.2. the following example illustrates the makeup of the farprovision or', 29294:'clause number see figure 1 below. 2 provisionsorclausesthatsupplementthefar. iprovisionsorclausesthatsupplementthefarare a prescribed and included in authorized agency acquisition regulations issued within', 29295:'an agency to satisfy the specific needs of the agency as a whole; b prescribed and included in a regulation', 29296:'issued bya suborganizationof an agency to satisfythe needs of that particular suborganization; or c developed for use at a suborganizational', 29297:'levelof an agency, notmeant for repetitive use, butintended to meet theneeds of an individual acquisition and, thus,impracticalto include ineither an', 29298:'agency or suborganization acquisition regulation. see 1.301c. ii supplemental provisions or clauses published in agency acquisition regulations shall be in', 29299:'full text and the prescription for the use of each shall be included. supplemental provisions or clauses published in agency', 29300:'acquisition regulations shall be numbered in the same mannerin which far provisions and clauses are numberedexceptthat a if it is', 29301:'included in an agency acquisition regulation that is published in the federal register and is codified in title48, code of', 29302:'federal regulations 48 cfr, the number shall be preceded by the chapter number within 48 cfr assigned by the cfrstaff;', 29303:'and b the sequential number shall be 70 or a higher number see 1.303. federal acquisition regulation iii the sequential', 29304:'number at the end of thenumber of a provision orclause that supplements thefar, likeits counterpart at the end of any', 29305:'far provision or clause number, indicates the subsection location of the provision orclause in subpart 52.2 of the agency acquisition', 29306:'regulation that contains its full text. if, for example, an agency acquisition regulation contains only one provision followed by only', 29307:'one clausesupplementing the far in its section 52.236 construction and architectengineer contracts, then the sequential numbers would be 70 for', 29308:'the provision and 71 for the clause. c prescriptions. each provision or clause in subpart 52.2isprescribedatthatplaceinthefartextwherethesubject matter of the provision', 29309:'or clause receives its primary treatment. the prescription includes all conditions, requirements, and instructions for using the provision or clause', 29310:'and its alternates, if any. the provision or clause may be referredto in other far locations. d introductory text. within', 29311:'subpart 52.2, the introductory text of each provision or clause includes a crossreference to thelocationin thefar subject text that prescribes', 29312:'its use. e matrix. 1 the matrix in subpart 52.3 contains a column for each principal type and/or purpose of', 29313:'contract e.g., fixedprice supply,costreimbursement research and development. thematrixliststhe i required solicitation provisions; ii requiredwhenapplicable solicitation provisions; iii optional solicitation provisions;', 29314:'iv required contract clauses; v requiredwhenapplicable contract clauses; and vi optional contract clauses. 2 for each provision or clause listed,', 29315:'the matrix provides information on i whether incorporation by reference is or is not authorized see 52.102; ii the section', 29316:'of the uniform contract format ucf in which it is to be located, if it is used in an acquisition', 29317:'that is subject to the ucf; iii its number; iv the citation of thefar text that prescribes its use; and', 29318:'v its title. 3 since the matrix does not provide sufficient information todetermine the applicability of a provision or clause', 29319:'inthe requiredwhenapplicable and optional categories, contracting officers shall refer to the far text cited in the matrix that prescribes its', 29320:'use. 4 the far matrix may be reproduced at agencylevels, and at subordinatelevels, for the purpose ofsupplementing it with agencydeveloped', 29321:'provisions and clauses. the resulting consolidated matrices may be included in agency acquisition regulations. f dates. since they are subject', 29322:'to revision from time to time, all provisions, clauses, and alternates are dated; e.g.,dec 1983. to avoid questions concerning which', 29323:'version of any provision, clause, or alternate is operative in any given solicitation or contract, its date shall be included', 29324:'whether it is incorporated by reference or in full text. 52.102 incorporatingprovisionsand clauses. a provisions and clauses should be incorporated', 29325:'by reference to the maximum practical extent, rather than being incorporated in full text, even if they 1 are used', 29326:'with one or more alternates or on an optional basis; 2 are prescribed on a substantially as follows or substantially', 29327:'the same as basis, provided they are used verbatim; 3 require modification or the insertion by the government of fillin', 29328:'material see 52.104; or 4 require completion by the offeror or prospective contractor. this instruction also appliesto provisions completedas annual', 29329:'representations and certifications. b except for provisions and clauses prescribed in 52.107, any provision or clause that can be accessed', 29330:'electronically by the offeror orprospective contractor maybe incorporatedby reference in solicitations and/or contracts. however, the contracting officer, uponrequest,shallprovide the full', 29331:'text ofany provision or clause incorporated by reference. c agency approved provisions and clauses prescribed in agency acquisition regulations, and', 29332:'provisions and clauses not authorized by subpart 52.3 to be incorporated by reference, need not be incorporated in full text,', 29333:'provided the contracting officer includesin thesolicitation and contract a statementthat 1 identifies all provisions and clauses that requirecompletion by theofferor', 29334:'or prospective contractor; 2 specifies thatthe provisions and clauses must be completed by theofferor or prospective contractor and must be', 29335:'submitted with thequotation or offer; and subpart 52.1 instructions for using provisions and clauses 52.104 3 identifies to the offeror', 29336:'or prospective contractor at least one electronic addresswhere the full text maybe accessed. d an agency may develop a group', 29337:'listing of provisions and clauses that apply to a specific category of contracts. an agency group listing may be incorporated', 29338:'by reference in solicitations and/or contracts in lieu of citing the provisions and clauses individually, provided the grouplistingis made available', 29339:'electronicallyto offerors and prospective contractors. e a provision or clause that is not available electronically to offerors and prospective contractorsshallbe', 29340:'incorporatedin solicitations and/or contracts in full text if it is 1 a far provision orclause that otherwise is not authorized', 29341:'to be incorporated by reference see sub part 52.3; or 2 a provision or clause prescribed for use in an', 29342:'agency acquisition regulation. f provisions or clauses may not be incorporated by reference by being listed in the 1 provision', 29343:'at 52.2523, alterations in solicitations; or 2 clause at 52.2524, alterations in contract. 52.103 identification of provisions and clauses. a', 29344:'whenever any far provisionor clauseis used withoutdeviation in asolicitation or contract, whether it is incorporated by referenceor in full text,', 29345:'it shall be identified bynumber, title, and date. this identification shall also be used if the far provisionor clauseis used', 29346:'with an authorized deviation, except that the contractingofficer shall then insert deviation after the date. solicited firms and contractors will', 29347:'be advised of the meaning of this insertion through the use of the 1 provision at 52.2525, authorized deviations in', 29348:'provisions, or 2 clause at 52.2526, authorized deviations in clauses. the above mentioned provision and clause are prescribed in 52.107e', 29349:'and f. b any provision or clause thatsupplementsthe far whether it is incorporated by reference or in full text shall', 29350:'be clearly identified by number, title, date, and name ofthe regulation. when asupplemental provision or clause is usedwith an authorized', 29351:'deviation, insert deviation after the name of the regulation. c a provision or clause of the type described in 52.101b2ic', 29352:'shall be identified by the title, date, and the name of theagency or suborganizationwithin the agency that developed it. d', 29353:'except for provisions or clauses covered by 52.103c, the following hypothetical examples illustrate how a provision or clause that supplements', 29354:'the far shall be identified when it is incorporated in solicitations and/or contracts by reference or in full text: 1', 29355:'if part 14 sealed bidding of the x agency acquisition regulation, published in the federal register and codified as chapter', 29356:'99 in 48 cfr, prescribes the use of a provision entitled bid envelopes, dated october 1983, and that provision is', 29357:'sequentially the first provision or clause appearing in section 52.214 of the x agency acquisition regulation, then the identification of', 29358:'that provision shall be 9952.21470bid envelopes oct 1983. 2 assume that y, a major organizational element ofthe x agency, is', 29359:'authorized toissue the y acquisition regulation, which is not published in the federal register and codified in 48 cfr. if', 29360:'part 36 construction and architect engineer contracts of the y acquisition regulation prescribes the use of a clause entitled refrigerated', 29361:'display cases, dated march 1983, pertaining to a specialized type of construction work, and that clause is sequentially the second', 29362:'provision or clause appearing in section 52.236 of the y acquisition regulation, then the identification of that clause shall be', 29363:'52.23671refrigerated display cases mar 1983y acquisition regulation. 52.104 procedures for modifying and completing provisions and clauses. a thecontracting officer must', 29364:'not modify provisions and clausesunlessthe far authorizes their modification. for example 1 the contractingofficer may use aperiod shorter than 60days', 29365:'but not less than 30 daysin paragraph x of the clause; or 2 the contractingofficer may substitute the words ‘taskorder’', 29366:'for the word ‘schedule’ whereverthat word appears in the clause. b when modifying provisions or clauses incorporated by reference, insert', 29367:'the changed wording directly below the title of the provision or clause identifying to the lowest level necessary e.g., paragraph,', 29368:'sentence, word, to clearly indicate what is being modified. c when modifying provisions or clauses incorporated in full text, modify', 29369:'the language directly by substituting the changed wording as permitted. d when completing blanks in provisions or clauses incorporated by', 29370:'reference, insert the fillin information directly below the title of the provision or clause identifying to the lowest level necessary', 29371:'to clearly indicate the blanks being filled in. federal acquisition regulation e when completing blanks in provisions or clauses incorporated', 29372:'in full text, insert the fillin information in the blanks of the provision or clause. 52.105 procedures for using alternates.', 29373:'a thefar accommodates a major variation in a provision or clause by use of analternate. the farprescribes alternates to a', 29374:'given provision orclause in the far subject text wherethe provisionor clauseis prescribed. thealternates to each provision or clause are titled', 29375:'alternate i, alternate ii, alternate iii, etc. b when an alternate is used, its date shall be cited along with', 29376:'the date of the basic provision or clause; e.g., 52.2093 first article approvalcontractor testing oct 1983alternate i dec 1983. c', 29377:'under certain circumstances, a provision or clause may be used with two or more alternates. in these circumstances, each of', 29378:'the applicable alternates shall be cited, whether incorporated by reference or in full text; e.g., 52.2093 first article approvalcontractor testing', 29379:'oct 1983alternate i dec 1983 and alternate ii feb 1984. however, under no circumstances may an alternate to a specific', 29380:'provision or clause be applied to any other provision or clause. 52.106[reserved] 52.107 provisionsand clauses prescribed in subpart52.1. a thecontracting', 29381:'officer shall insert the provision at 52.2521, solicitation provisions incorporated by reference, in solicitations in order to incorporate provisions by', 29382:'reference. b the contractingofficer shall insertthe clause at 52.2522, clauses incorporated by reference, in solicitations and contracts in order to', 29383:'incorporate clauses by reference. c thecontracting officer shall insert the provision at 52.2523, alterations in solicitation, in solicitations in order', 29384:'to revise or supplement, asnecessary,other parts of the solicitation that apply to the solicitationphase only, except for any provision authorized', 29385:'for use with a deviation. d the contractingofficer shall insertthe clause at 52.2524, alterations in contract, in solicitations and contracts', 29386:'in order to revise orsupplement, as necessary, other parts of the contract, or parts of the solicitations that apply to', 29387:'the contract phase, except for any clause authorized for use with a deviation. e thecontracting officer shall insert the provision', 29388:'at 52.2525, authorized deviations in provisions, in solicitations that include any far or supplementalprovision with an authorizeddeviation. whenever any faror', 29389:'supplementalprovision is used with an authorized deviation, the contractingofficer shall identify it bythe same number, title,and date assigned to the', 29390:'provision when it is used without deviation, include regulation name for any supplemental provision, except that the contracting officershallinsert deviation', 29391:'after the dateof the provision. f the contracting officer shall insertthe clause at 52.2526, authorized deviations in clauses, in solicitations', 29392:'and contracts that include any faror supplemental clause with an authorizeddeviation. whenever any far or supplemental clause is used withan', 29393:'authorized deviation,the contracting officer shall identify it by the same number, title, and date assigned to the clause when it', 29394:'is used without deviation, include regulation name for any supplemental clause, except that the contracting officershallinsert deviation after the dateof', 29395:'the clause. subpart 52.2 text of provisions and clauses 52.2011 subpart 52.2 text of provisions and clauses 52.200scope of subpart.', 29396:'this subpart setsforth the text of allfar provisions and clauses see 52.101b1 and gives a crossreference to the location inthe', 29397:'far that prescribes the provision or clause. 52.201[reserved] 52.2011acquisition360: voluntary survey. as prescribed in 1.1023b, insert the following provision: acquisition', 29398:'360: voluntary survey sep 2023 a allactual and potential offerors are encouraged toprovide feedback on the preaward and debriefing processes,', 29399:'as applicable. feedback may be provided to agencies up to 45 days after award. the feedback is anonymous, unless the', 29400:'participant selfidentifies in the survey. actual and potential offerors can participate in the survey by selecting the following link: https://www.acquisition.gov/360.', 29401:'b the contracting officer will not review the information provided until after contractaward and will not consider it in the', 29402:'award decision. the survey is voluntary and does not convey any protections, rights, or grounds for protest. it creates a', 29403:'way for actual and potential offerors toprovide the government constructive feedback about thepreaward and debriefing processes, as applicable, used for', 29404:'a specific acquisition. end of provision this page intentionally left blank. 52.22 subpart 52.2 text of provisions and clauses 52.2021', 29405:'52.202[reserved] 52.2021 definitions. as prescribed in 2.201, insert the following clause: definitions jun 2020 when a solicitation provision or contract', 29406:'clause uses a word or term that is defined in the federal acquisition regulation far, theword or term has thesame', 29407:'meaning as thedefinition in far 2.101 in effect at the time the solicitation was issued, unless a thesolicitation, or amendedsolicitation,', 29408:'provides a different definition; b the contractingparties agree to adifferentdefinition; c thepart, subpart,or section ofthe far where theprovision or clause', 29409:'is prescribed providesa different meaning; dthewordortermisdefinedinfar part 31, for use in the cost principles and procedures; or e the word', 29410:'or term defines an acquisitionrelated threshold, and if the threshold is adjusted for inflation as set forth in far 1.109a,', 29411:'then the changed threshold applies throughout the remaining term of the contract, unless there is a subsequent threshold adjustment; see', 29412:'far 1.109d. end of clause this page intentionally left blank. 52.24 subpart 52.2 text of provisions and clauses 52.2033 52.203[reserved]', 29413:'52.2031 [reserved] 52.2032 certificate of independent price determination. as prescribed in 3.1031, insert the following provision. if the solicitation is', 29414:'a request for quotations, the terms quotation and quoter may be substituted for offer and offeror. certificate of independent price', 29415:'determination apr 1985 a theofferor certifies that 1 the prices inthisoffer have been arrived at independently, without, for the purpose', 29416:'ofrestricting competition, any consultation, communication, or agreement with any other offeror orcompetitor relating to i those prices; iithe intentionto submit', 29417:'an offer; or iii the methods or factorsused tocalculate the prices offered. 2 the prices inthisoffer have not been and', 29418:'will notbe knowingly disclosed by theofferor,directlyor indirectly, to any other offeror or competitor before bid opening inthe case of a', 29419:'sealed bid solicitation or contractaward in thecaseof a negotiated solicitation unless otherwise required by law; and 3 no attempt has', 29420:'been made or willbe made by the offeror to induceany otherconcern tosubmit or notto submitan offer for the purpose ofrestricting', 29421:'competition. b each signature on the offer is considered tobe a certification bythe signatory that the signatory 1 is thepersonin', 29422:'theofferor’s organization responsible for determining the pricesbeing offered in this bid or proposal, and that the signatory has not participated', 29423:'and will not participate in any action contrary to paragraphs a1 through a3 of this provision; or 2 i has', 29424:'been authorized, in writing, to act as agent for the following principals in certifying that those principals have not participated,', 29425:'and will not participate in any action contrary to paragraphs a1 through a3 of this provision [insert full name of', 29426:'persons in the offeror’s organization responsible for determining the prices offered in this bid or proposal, and the title of', 29427:'his or her position in the offeror’s organization]; ii as an authorized agent, does certify that the principals named in', 29428:'subdivision b2i of this provision have not participated, and will not participate, in any action contrary to paragraphs a1 through', 29429:'a3 of this provision; and iii as an agent, has not personally participated, and will not participate, in any action', 29430:'contrary to paragraphs a1 through a3 of this provision. c if the offeror deletesor modifies subparagrapha2 above, the offerormust furnish', 29431:'with its offera signedstatement setting forth in detail the circumstances of the disclosure. end of provision 52.2033 gratuities. as prescribed', 29432:'in 3.202, insert the following clause: gratuities apr 1984 a the right of the contractor to proceed may be terminated', 29433:'by written notice if, after notice and hearing, the agency head or a designee determines that the contractor,its agent, or', 29434:'another representative 1 offered orgavea gratuity e.g., an entertainmentor gift toan officer,official, or employee of the government;and 2 intended, by', 29435:'the gratuity, toobtaina contract or favorabletreatmentunder a contract. b the facts supporting this determination may be reviewed by any court', 29436:'having lawful jurisdiction. c if this contract is terminated under paragraph a of this clause, the government is entitled 1', 29437:'to pursuethe same remedies as in a breach ofthe contract; and 2 in addition toany otherdamages providedby law, to exemplary', 29438:'damages of notless than 3 nor more than 10 times the cost incurred by the contractor in giving gratuities to', 29439:'the person concerned, as determined by the agency head or a designee. this paragraph c2 is applicable only if this', 29440:'contract uses money appropriated to the department of defense. 52.2034 federal acquisition regulation d the rights and remedies of the', 29441:'government provided in this clause shall not be exclusive and are in addition to any other rights and remedies provided', 29442:'by law or under this contract. end of clause 52.2034 [reserved] 52.2035 covenant against contingent fees. as prescribed in 3.404,', 29443:'insert the following clause: covenant against contingent fees may 2014 a the contractor warrants that no person or agency has', 29444:'been employed or retained to solicit or obtain this contract upon anagreement or understanding for acontingent fee, except a bonafide', 29445:'employee oragency. for breach or violation of this warranty, the government shall have the rightto annul this contract without liability', 29446:'or, to deduct fromthe contract price or consideration, orotherwise recover, the full amount of the contingent fee. b bona fide', 29447:'agency, as used in this clause, means an establishedcommercial or selling agency, maintained by a contractor for the purpose of', 29448:'securing business, that neither exerts nor proposes to exert improper influence to solicit or obtain government contracts nor holds itself', 29449:'out as being able to obtain any government contract or contracts through improper influence. bona fide employee, as used inthisclause,', 29450:'means a person, employed bya contractorandsubject to the contractor’s supervision and control as to time, place, and manner of performance,', 29451:'who neither exerts nor proposes to exert improper influence to solicit or obtain government contracts nor holds out as being', 29452:'able to obtain any government contract or contracts through improper influence. contingent fee, as used in this clause, means any', 29453:'commission, percentage, brokerage, or other fee that is contingent upon the success that a person or concern has in securing', 29454:'a government contract. improper influence, as used in this clause, means any influence that induces or tends to induce a', 29455:'government employee or officer to give consideration orto act regarding agovernment contracton any basis other than the meritsof the matter.', 29456:'end of clause 52.2036 restrictions on subcontractor sales to the government. as prescribed in 3.5032, insert the following clause: restrictions', 29457:'on subcontractor sales to the government jun 2020 a except as provided in b of this clause, the contractor shall', 29458:'not enter into any agreement with an actual or prospective subcontractor,norotherwise act in any manner, which hasor may have theeffect', 29459:'of restricting sales by such subcontractors directly to the government of any item or process including computer software made or', 29460:'furnished by the subcontractor under this contract or under any followon production contract. b the prohibition in a of this', 29461:'clause does not preclude the contractor from asserting rights that are otherwise authorized by law or regulation. c the contractor', 29462:'agrees to incorporate the substance of this clause, including this paragraph c, in all subcontracts under this contract which exceed', 29463:'the simplified acquisition threshold, as defined in federal acquisition regulation 2.101 on the date of subcontract award. end of clause', 29464:'alternate i nov 2021. as prescribed in 3.5032, substitute the following paragraph in place of paragraph b of the basic', 29465:'clause: b the prohibition in paragraph a of this clause does not preclude the contractor from asserting rights that are', 29466:'otherwise authorized by law or regulation. for acquisitions of commercial products or commercial services. the prohibition in paragraph a applies', 29467:'only to the extent that any agreement restricting sales by subcontractors results in the federal subpart 52.2 text of provisions', 29468:'and clauses 52.2038 government being treated differently fromany otherprospective purchaser for the sale ofthe commercial products and commercial services. 52.2037antikickback', 29469:'procedures. as prescribed in 3.5023, insert the following clause: antikickback procedures jun 2020 a definitions. kickback, asused inthis clause, means', 29470:'any money, fee, commission, credit, gift,gratuity, thing of value, or compensation of any kind which is provided toanyprimecontractor, prime contractor', 29471:'employee, subcontractor,or subcontractor employee for the purpose of improperly obtaining or rewarding favorable treatment in connection with a prime contract', 29472:'or in connection with a subcontract relating to a prime contract. person, as used in this clause, means a corporation,', 29473:'partnership, business association of any kind, trust, jointstock company, or individual. prime contract, as used in this clause, means a', 29474:'contract or contractual action entered into by the united states for the purpose of obtaining supplies, materials, equipment, or services', 29475:'of any kind. prime contractor as used in this clause, means a person who has entered into a prime contract', 29476:'with the united states. prime contractor employee, as used in thisclause, meansany officer, partner, employee, or agent of a prime', 29477:'contractor. subcontract, as used in this clause, means a contract or contractual action entered into by a prime contractor or', 29478:'subcontractor for the purpose of obtaining supplies, materials, equipment, or services of any kind under a prime contract. subcontractor, as', 29479:'used inthisclause, 1 means any person,other thanthe prime contractor, who offers to furnish or furnishes any supplies, materials, equipment, or', 29480:'services of any kind under a prime contract or a subcontract entered into in connection with suchprimecontract, and 2 includesanypersonwho', 29481:'offers to furnish or furnishes general supplies to the prime contractor or a highertier subcontractor. subcontractor employee, asused inthis clause,', 29482:'means any officer,partner,employee, or agent of a subcontractor. b 41 u.s.c. chapter 87, kickbacks, prohibits any person from 1 providingor', 29483:'attemptingto provide oroffering to provide any kickback; 2 soliciting, accepting, or attempting to accept any kickback; or 3 including, directly', 29484:'or indirectly, the amountof any kickback in the contract price charged by a prime contractor to theunited statesor in the', 29485:'contract price charged by a subcontractor to a prime contractor or higher tier subcontractor. c 1 the contractor shall have', 29486:'in place and follow reasonable procedures designed to prevent and detect possible violations described in paragraph b of this clause', 29487:'in its own operations and direct business relationships. 2 when the contractor has reasonable grounds to believe that a violation', 29488:'described in paragraph b of this clause may have occurred, the contractor shall promptly report in writing the possible violation.', 29489:'such reports shall be made to theinspectorgeneral ofthe contracting agency, the head of the contracting agencyif the agency does not', 29490:'have an inspector general, or the attorney general. 3 the contractor shall cooperate fully with any federal agency investigating a', 29491:'possible violation described in paragraph b of this clause. 4 the contracting officer may i offset the amount of the', 29492:'kickbackagainst any moniesowed by the united states under the prime contract and/or ii direct that the prime contractor withhold from', 29493:'sums owed a subcontractor under the prime contract the amount of the kickback. the contracting officer may order that monies', 29494:'withheldunder subdivision c4 iiof this clause be paid over to the government unless the government has already offset those monies', 29495:'under subdivision c4i of this clause. in eithercase, the primecontractor shall notify thecontracting officer when the monies arewithheld. 5 the', 29496:'contractor agrees to incorporate the substance of this clause, including this paragraph c5 but excepting paragraph c1 of this clause,', 29497:'in all subcontracts under this contract that exceed the threshold specified in federal acquisition regulation 3.5022i on the date of', 29498:'subcontract award. end of clause 52.2038cancellation, rescission, and recovery of funds for illegal or improper activity. as prescribed in 3.1049a,', 29499:'insert the following clause: 52.2039 federal acquisition regulation cancellation, rescission, and recovery of funds for illegal or improper activity may', 29500:'2014 a if the government receives information that a contractor or a person has violated 41 u.s.c. 21022104, restrictions on', 29501:'obtaining and disclosing certain information, the government may 1 cancel the solicitation, if the contract has not yet been awarded', 29502:'or issued; or 2 rescind the contract with respect to which ithe contractoror someone acting for the contractor has been', 29503:'convicted for an offense wherethe conduct violates 41 u.s.c.2102 for the purpose of either a exchanging the information covered by', 29504:'such subsections for anything of value; or b obtaining or giving anyone a competitive advantage in the award of a', 29505:'federal agency procurement contract; or ii the head of the contracting activity has determined, based upon a preponderance of the', 29506:'evidence, that the contractor or someone acting for the contractor has engaged in conduct punishable under 41 u.s.c. 2105a. b', 29507:'if the government rescinds the contract underparagraph aof this clause, the government is entitled to recover, in addition to any', 29508:'penalty prescribed by law,the amountexpendedunder thecontract. c the rights and remedies of the government specified herein are not exclusive, and', 29509:'are in addition to any other rights and remedies provided bylaw, regulation, or under this contract. end of clause 52.2039', 29510:'[reserved] 52.20310 price or feeadjustmentfor illegalor improper activity. as prescribed in 3.1049b, insert the following clause: price or fee adjustment', 29511:'for illegal or improper activity may 2014 a the government, at its election, may reduce the price of a fixedprice', 29512:'type contract and the total cost and fee under a costtype contract by the amount of profit or fee determined', 29513:'as set forth in paragraph b of this clause if the head of the contracting activity or designee determines that', 29514:'there was a violation of 41 u.s.c.2102 or 2103, as implemented in section 3.104 of the federal acquisition regulation. b', 29515:'the price or fee reduction referred to in paragraph a of this clause shall be 1 for costplusfixedfee contracts, the', 29516:'amount of the fee specified in the contract at the time of award; 2 for costplusincentivefee contracts, the targetfee specified', 29517:'in the contract at thetime of award,notwithstanding any minimum fee or fee floor specified in the contract; 3 for costplusawardfee', 29518:'contracts i the base fee established in the contract at the time of contract award; ii if no base fee', 29519:'is specified in the contract, 30 percent of the amount of each award fee otherwise payable to the contractor for', 29520:'each award fee evaluation period or at each award fee determination point. 4 for fixedpriceincentive contracts, the government may ireduce', 29521:'the contract target price and contract target profit bothby an amount equal to the initial targetprofit specified in the contract', 29522:'at the time of contract award; or iiif an immediate adjustment to thecontract target price and contract target profit would', 29523:'have asignificant adverse impact onthe incentive price revision relationship under the contract,or adversely affect the contract financing provisions, thecontracting officer', 29524:'may defer suchadjustment until establishmentof the total final priceof the contract. the total final price established in accordance with the', 29525:'incentive price revision provisions of the contract shall be reduced by an amount equal to the initial target profit specified', 29526:'inthe contract at the time of contract award and such reduced price shall be the total final contract price. 5', 29527:'for firmfixedprice contracts, by 10 percent of the initial contract price or a profit amount determined by the contracting officerfrom', 29528:'records ordocuments in existence prior to the date ofthe contract award. c thegovernment may, at itselection,reduce a prime contractor’s price', 29529:'or fee in accordance with the procedures of paragraph b of this clause for violations of the statute by its', 29530:'subcontractors by an amount not to exceed the amount of profit or fee reflected in the subcontract at the time', 29531:'the subcontract was first definitively priced. subpart 52.2 text of provisions and clauses 52.20312 d in addition to the remedies', 29532:'in paragraphs a and c of this clause, the government may terminate this contract for default. the rights and remedies', 29533:'of the government specified herein are not exclusive, and are in addition to any other rights and remedies provided by', 29534:'law or under this contract. end of clause 52.20311certificationand disclosure regardingpayments toinfluence certain federaltransactions. as prescribed in 3.808a, insert the', 29535:'following provision: certification and disclosure regarding payments to influence certain federal transactions sep 2024 a definitions. as used in this', 29536:'provisionlobbying contact has the meaning provided at 2 u.s.c. 16028. the terms agency, influencing or attempting to influence, officer oremployee', 29537:'of anagency, person, reasonable compensation, and regularlyemployed are definedin the far clause of this solicitation entitled limitation onpayments to influence', 29538:'certain federal transactions 52.20312. b prohibition.the prohibition and exceptions contained in the far clauseof this solicitationentitled limitation on payments to', 29539:'influence certain federaltransactions 52.20312 are hereby incorporated by reference in this provision. c certification. theofferor,by signing its offer, hereby certifies', 29540:'to the best of its knowledge and belief that no federal appropriated funds have been paid or will be paid', 29541:'toanypersonforinfluencingor attemptingto influencean officer or employeeof any agency, a memberof congress,an officer or employee of congress, or an employee of', 29542:'a member of congress on its behalf in connection with the awarding of this contract. d disclosure. if any registrants', 29543:'under the lobbying disclosure act of 1995 have made a lobbying contact on behalf of the offeror with respect to', 29544:'this contract, theofferor shall complete and submit, with its offer, omb standard form lll, disclosure of lobbying activities, to provide', 29545:'thenameof the registrants. the offerorneednot reportregularly employed officers or employees of theofferor to whom payments of reasonable compensation weremade. e', 29546:'penalty. submission of this certification and disclosure is a prerequisite for making or entering into this contract imposed by 31', 29547:'u.s.c. 1352. any person who makes an expenditure prohibited under this provision or who fails to file or amend the', 29548:'disclosure required to be filed or amended by this provision, shall be subject to civil penalties as provided in 31', 29549:'u.s.c. 1352. an imposition of a civil penalty does not prevent the government from seeking any other remedy that may', 29550:'be applicable. end of provision 52.20312 limitation on payments to influence certain federal transactions. as prescribed in 3.808b, insert the', 29551:'following clause: limitation on payments to influence certain federal transactions jun 2020 a definitions. as used in this clause agency', 29552:'means executive agency as defined in federal acquisition regulation far 2.101. covered federal action means any of the following actions:', 29553:'1 awarding anyfederal contract. 2 making any federal grant. 3 making any federal loan. 4 entering into any cooperative agreement.', 29554:'5 extending, continuing, renewing, amending, or modifying any federal contract, grant, loan, or cooperative agreement. indian tribe and tribal organization', 29555:'have the meaning provided in section 4 of the indian selfdetermination and education assistance act 25 u.s.c. 450b and include', 29556:'alaskan natives. influencing or attempting to influence means making, with the intent to influence, any communication to or appearance beforean', 29557:'officer or employee of any agency, a member of congress, an officer or employee of congress, or an employee of', 29558:'a member of congress in connection with any covered federal action. 52.20312 federal acquisition regulation local government means a unit', 29559:'of government in a state and, if chartered, established, or otherwise recognized by a state for the performance ofa governmental', 29560:'duty, includinga local public authority, a special district, an intrastate district, a council of governments, a sponsor group representative organization,', 29561:'and any other instrumentality of a local government. officer or employee of an agency includes the following individuals who are', 29562:'employed by an agency: 1 an individual whois appointed toa positionin thegovernment under title 5, united states code, including a', 29563:'position under a temporary appointment. 2 a member of the uniformed services, as definedin subsection1013, title 37, united states code.', 29564:'3 a special government employee, as defined insection 202, title 18, united states code. 4 an individual who is a', 29565:'member of a federal advisory committee, as defined by the federal advisory committee act, title 5, unitedstates code,appendix 2. person', 29566:'means an individual, corporation,company, association,authority,firm,partnership, society, state, and local government, regardless of whether such entity is operated for profit, or', 29567:'not for profit. this term excludes an indian tribe, tribalorganization, or any other indianorganization eligible to receive federal contracts, grants,cooperative', 29568:'agreements, or loans from an agency, but only with respect to expenditures by such tribe ororganization thatare made for purposes', 29569:'specified in paragraph b of this clauseandare permitted by other federal law. reasonable compensation means, with respectto a regularly employed', 29570:'officeror employee of anyperson, compensation that is consistent withthe normal compensation for suchofficer or employee for work that is notfurnished', 29571:'to, not funded by, or not furnished in cooperation with the federal government. reasonable payment means, with respect to professional', 29572:'and other technical services, a payment in an amount that is consistent with the amount normally paid for such services', 29573:'in the private sector. recipient includes the contractor and all subcontractors. this term excludes anindian tribe, tribal organization, or any', 29574:'other indianorganization eligible to receive federal contracts, grants,cooperative agreements, orloans from an agency, but only with respect to expenditures by', 29575:'such tribe or organization that are made for purposes specified in paragraphbof this clause and are permitted byotherfederal law. regularly', 29576:'employed means, with respect to an officer or employeeof aperson requesting or receiving afederal contract, anofficer or employee who is', 29577:'employed by such person for atleast 130 working days within 1 year immediatelypreceding thedate of the submission that initiates agency', 29578:'consideration of such person for receipt of such contract. an officer or employee who is employed by such person for', 29579:'less than 130 working days within 1 year immediately preceding the date of the submission that initiates agency consideration of', 29580:'such person shall be considered to be regularly employed as soon as he or she is employed by such person', 29581:'for 130 working days. state means a state of the united states, the district of columbia, or an outlying area', 29582:'of the united states, an agency or instrumentality of a state, and multistate, regional, or interstate entity having governmental duties', 29583:'and powers. b prohibition. 31 u.s.c. 1352 prohibits a recipient of a federal contract, grant, loan, or cooperative agreement from', 29584:'using appropriated funds topay any person for influencing or attempting to influence an officer oremployee of any agency, a member', 29585:'of congress, an officer oremployee of congress, or anemployee of a member of congress inconnectionwith any covered federal actions. in', 29586:'accordance with 31 u.s.c. 1352 the contractor shall not use appropriated funds to pay any person for influencing or attempting', 29587:'toinfluence anofficer or employee ofany agency, amember of congress, an officer or employee of congress, or an employee of a', 29588:'member of congress in connection with the award of this contractor the extension, continuation, renewal, amendment, or modification of this', 29589:'contract. 1 the term appropriated funds does not include profit or fee from a covered federal action. 2 to the', 29590:'extent the contractor can demonstrate that the contractorhas sufficient monies, other than federal appropriated funds, the government will assume that', 29591:'these other monies were spent for any influencing activities that would be unallowable if paid for with federal appropriated funds.', 29592:'c exceptions. the prohibition in paragraph b of this clause does not apply under the following conditions: 1 agency and', 29593:'legislative liaison by contractor employees. i payment of reasonable compensation made to an officer oremployee of the contractorif the payment', 29594:'isforagency and legislative liaison activities not directly related to this contract. for purposes of this paragraph, providing any information specifically', 29595:'requested by an agency or congress is permitted at any time. ii participating with an agency in discussions that are', 29596:'not related to a specific solicitation for any covered federal action, but that concern athe qualitiesand characteristics including individual demonstrations', 29597:'of the person’s products or services, conditions or terms of sale, and service capabilities; or b the application or adaptationof', 29598:'the person’s products or servicesforan agency’s use. subpart 52.2 text of provisions and clauses 52.20312 iii providing prior to formal', 29599:'solicitation of any covered federal action any information not specifically requested but necessary for an agency to make an informed', 29600:'decision about initiation of a covered federal action; iv participating in technical discussions regarding thepreparationof an unsolicited proposal prior to', 29601:'its official submission; and v making capability presentations prior to formal solicitation of any covered federal action by persons seeking', 29602:'awards from an agency pursuant to the provisions of the small business act, as amended by pub. l. 95507, and', 29603:'subsequent amendments. 2 professional and technical services. iapayment of reasonable compensation made to an officeror employee of a person requesting', 29604:'or receiving a covered federal action or an extension, continuation, renewal, amendment, or modification of a covered federal action, if', 29605:'payment is for professional or technical services rendered directly in the preparation, submission, or negotiation of any bid, proposal, or', 29606:'application for that federal action or for meeting requirements imposed by or pursuant to law as a condition for receiving', 29607:'that federal action. iiany reasonable payment to aperson, other than an officer or employeeof apersonrequesting or receiving a covered federal', 29608:'action or an extension, continuation, renewal, amendment, or modification of a covered federal action if the payment is for professional', 29609:'or technical services rendered directly in the preparation, submission, or negotiation of any bid, proposal, or application for that federal', 29610:'action or for meeting requirements imposed by or pursuant to law as a condition for receivingthat federalaction. personsotherthan officers oremployees', 29611:'ofa person requesting or receiving a covered federal action include consultants and trade associations. iii as used in paragraph c2', 29612:'of this clause, professional and technical services are limited to advice and analysis directly applying any professional ortechnicaldiscipline for examples,', 29613:'see far 3.803a2iii. iv requirements imposed by or pursuant to law as a condition for receiving a covered federal award', 29614:'include those required by law or regulation and any other requirements in the actual award documents. 3 only those communications', 29615:'and services expressly authorized by paragraphs c1 and 2 of this clause are permitted. d disclosure. 1 if the contractor', 29616:'did not submit omb standard form lll, disclosure of lobbying activities, with its offer, but registrantsunder thelobbying disclosure act of1995', 29617:'have subsequently made alobbyingcontacton behalfof the contractor with respect to this contract, the contractor shall complete and submit omb standard', 29618:'form lll to provide the name of the lobbying registrants, including the individuals performing the services. 2 if the contractor', 29619:'did submitomb standard form llldisclosure pursuant to paragraph d of the provision at far 52.20311, certification and disclosure regarding paymentsto', 29620:'influence certain federal transactions,anda change occurs that affects block 10of the omb standard form lll name and address of lobbying', 29621:'registrant orindividuals performing services, the contractor shall, at the end of the calendar quarter in which the change occurs, submit', 29622:'to the contracting officer within 30days an updated disclosure usingomb standard form lll. e penalties. 1 any person who makes', 29623:'an expenditure prohibited under paragraph b of this clause or who fails to file or amend the disclosure to be', 29624:'filed or amended by paragraph d of this clause shall be subject to civil penalties as provided for by 31', 29625:'u.s.c. 1352. an imposition of a civil penalty does not prevent the government from seeking any other remedy that may', 29626:'be applicable. 2 contractors may rely without liability on the representation made by their subcontractors in the certification and disclosure', 29627:'form. f cost allowability. nothing in this clause makes allowable or reasonable any costs which would otherwise be unallowable or', 29628:'unreasonable. conversely,costs made specifically unallowable by therequirements inthis clause will not be made allowable under any other provision. g subcontracts.', 29629:'1 the contractor shall obtain a declaration, including the certification and disclosure in paragraphs c and d of the provision', 29630:'at 52.20311, certification and disclosure regarding payments to influence certain federal transactions, from each person requesting or receivinga subcontract under', 29631:'this contract that exceeds thethreshold specified in far 3.808 on the date of subcontract award. the contractor or subcontractor that', 29632:'awards the subcontract shall retain the declaration. 2 a copy of each subcontractor disclosure form but not certifications shall be', 29633:'forwarded from tier to tier until received by the prime contractor. the prime contractorshall, at the end of thecalendar quarter', 29634:'in which the disclosure form is submitted bythe subcontractor,submit tothe contracting officerwithin 30 days acopy ofalldisclosures. each subcontractor certification shall', 29635:'be retained in the subcontract file of the awarding contractor. 52.20313 federal acquisition regulation 3 the contractor shall include the', 29636:'substance of this clause, including this paragraph g, in any subcontract that exceeds the thresholdspecified in far 3.808 onthe dateof', 29637:'subcontract award. end of clause 52.20313 contractor code of business ethics and conduct. as prescribed in 3.1004a, insert the following', 29638:'clause: contractor code of business ethics and conduct nov 2021 a definitions. as used in this clause— agent meansany individual,', 29639:'including a director, anofficer, an employee, or anindependent contractor, authorized to act on behalf of the organization. full cooperation 1', 29640:'means disclosure to the governmentof the information sufficient for law enforcement to identify thenature and extent ofthe offense andthe individuals', 29641:'responsible for the conduct. it includesproviding timely and complete response to government auditors’ and investigators request for documents and access', 29642:'to employees with information; 2 does not foreclose any contractor rights arising in law, the far, or the terms of', 29643:'the contract. it does notrequire iacontractor to waiveits attorneyclient privilege or the protections affordedby the attorney work product doctrine; or', 29644:'iiany officer,director, owner, oremployee of the contractor, including a sole proprietor, to waivehisor her attorney client privilege or fifth amendment', 29645:'rights; and 3 does not restrict a contractor from i conducting an internal investigation; or ii defending a proceeding or', 29646:'dispute arising under the contract or related to a potential or disclosed violation. principal means an officer, director, owner,partner, or', 29647:'a personhaving primarymanagementor supervisory responsibilities within a business entity e.g., general manager; plant manager; head of a division or business', 29648:'segment; and similar positions. subcontract means any contract entered into by a subcontractor to furnish supplies or services for performance', 29649:'of a prime contract or a subcontract. subcontractor means any supplier,distributor, vendor,or firm thatfurnished supplies or services to or for', 29650:'a prime contractor oranother subcontractor. united states, means the 50 states, the district of columbia, and outlying areas. b code', 29651:'of business ethics and conduct. 1 within 30 daysafter contractaward, unless the contracting officer establishes a longer time period, the', 29652:'contractor shall— i have a written code of business ethics and conduct; and ii make a copy of the code', 29653:'available to each employee engaged in performance of the contract. 2 the contractor shall i exercise due diligence to prevent', 29654:'and detect criminal conduct; and iiotherwisepromote an organizational culture that encouragesethical conductanda commitment to compliance with the law. 3 ithecontractorshalltimelydisclose,inwriting,totheagencyofficeoftheinspectorgeneraloig,with', 29655:'a copyto the contractingofficer, whenever, in connection with the award, performance, or closeoutof this contract or any subcontract thereunder, thecontractor', 29656:'has credible evidence that a principal,employee, agent, or subcontractor of the contractor has committed aaviolation offederal criminal law involving fraud,conflictof', 29657:'interest, bribery, orgratuity violations found in title18 of theunited statescode; or b a violation of the civil false claims act', 29658:'31 u.s.c. 37293733. ii the government, to the extent permitted by law and regulation, will safeguard and treat information obtained', 29659:'pursuant to the contractor’s disclosure as confidential wherethe information has been marked confidential or proprietary by the company. to the', 29660:'extentpermitted bylawandregulation, such information will not be releasedby the government to the public pursuant to a freedom of information act', 29661:'request, 5 u.s.c. section 552, without prior notification to the subpart 52.2 text of provisions and clauses 52.20313 contractor. the', 29662:'governmentmay transfer documents provided by the contractor to any department or agencywithin the executive branch ifthe information relates tomatters within', 29663:'the organization’s jurisdiction. iii if the violation relates to an order against a governmentwide acquisition contract, a multiagency contract, a', 29664:'multipleaward schedule contract such as the federal supply schedule, or any other procurement instrument intended for use by multiple agencies,', 29665:'the contractor shall notify the oig of the ordering agency and the ig of the agency responsible for the basic', 29666:'contract. c business ethics awareness and compliance program and internal control system. this paragraph c does not apply if the', 29667:'contractor has represented itself as a small business concern pursuant to the award of this contract or if this contract', 29668:'is for theacquisition of a commercial productor commercial service as definedat far 2.101. the contractor shall establish the following within', 29669:'90days after contract award, unless the contractingofficer establishesa longer timeperiod: 1 an ongoing business ethics awareness and compliance program. i', 29670:'this program shall include reasonable steps to communicate periodically and in a practical manner the contractor’sstandards and procedures and other', 29671:'aspects ofthe contractor’sbusiness ethicsawarenessandcompliance program and internal control system, by conducting effective training programs and otherwise disseminating information appropriate toan', 29672:'individual’s respective roles and responsibilities. iithe trainingconductedunder this program shall beprovidedto thecontractor’s principals and employees, and as appropriate, thecontractor’s agentsandsubcontractors.', 29673:'2 an internal control system. ithe contractor’s internal control system shall— a establish standards and procedures to facilitate timely discovery', 29674:'of improper conduct in connection with government contracts; and b ensure corrective measures are promptly instituted and carried out. iiat', 29675:'a minimum, the contractor’s internal controlsystemshallprovide for the following: aassignment ofresponsibilityat a sufficientlyhighlevel and adequate resources toensure effectiveness of the', 29676:'business ethics awareness and compliance program and internal control system. b reasonable efforts not to include an individualas aprincipal, whom', 29677:'due diligence would have exposed as havingengaged in conduct that is in conflict with the contractor’s code of businessethics andconduct.', 29678:'c periodic reviews of company business practices, procedures, policies, and internal controls for compliance with the contractor’s code of business', 29679:'ethics and conduct and the special requirementsof government contracting, including 1 monitoring and auditing to detect criminal conduct; 2 periodic', 29680:'evaluation of theeffectiveness ofthe business ethics awareness and complianceprogramand internal control system, especially if criminal conduct has been detected; and', 29681:'3 periodic assessment of the risk of criminal conduct, with appropriate steps to design, implement, or modify the business ethics', 29682:'awareness and compliance program and the internal control system as necessary to reduce the risk of criminal conduct identified through', 29683:'this process. dan internal reporting mechanism, suchas ahotline, which allows for anonymity or confidentiality, by which employees may report suspected', 29684:'instances of improper conduct, and instructions that encourage employees to make such reports. e disciplinary action for improper conduct or', 29685:'for failing to take reasonable steps to prevent or detect improper conduct. f timely disclosure, in writing, tothe agency oig,', 29686:'with a copy to the contracting officer, whenever, in connection with the award, performance, or closeout of any government contract', 29687:'performed by the contractor or a subcontract thereunder, thecontractor has credible evidencethat a principal, employee, agent,or subcontractor of the contractor', 29688:'has committeda violation of federal criminal law involving fraud, conflict ofinterest, bribery, or gratuity violations foundin title 18 u.s.c. or', 29689:'aviolation ofthe civil false claims act 31 u.s.c. 37293733. 1 if a violation relates to more than one government contract,', 29690:'the contractor may make the disclosure to the agency oigand contractingofficer responsible for the largest dollar value contract impacted by', 29691:'the violation. 2 if the violation relates to an order against a governmentwide acquisition contract, a multiagency contract, a multipleaward', 29692:'schedule contract such as the federal supply schedule, or any other procurement instrument intended for use by multiple agencies, the', 29693:'contractor shall notify the oig of the ordering agency and the ig of the agency responsible for thebasic contract, and', 29694:'the respective agencies’ contracting officers. 3 the disclosure requirement for an individual contract continues until at least 3 years after', 29695:'final payment on the contract. 52.20314 federal acquisition regulation 4 the government will safeguard such disclosures in accordance with paragraph', 29696:'b3ii of this clause. g full cooperation with any government agencies responsible for audits, investigations, or corrective actions. d subcontracts.', 29697:'1 the contractor shall include the substance of this clause, including this paragraph d, in subcontracts that exceedthe threshold specified', 29698:'infar 3.1004a on the date of subcontract award and a performance period of more than 120 days. 2 in altering', 29699:'this clause to identify the appropriate parties, all disclosures of violation of the civil false claims act or of federal', 29700:'criminal law shall be directed to the agency office of the inspector general, with a copyto thecontracting officer. end of', 29701:'clause 52.20314 display of hotline posters. as prescribed in 3.1004b, insert the following clause: display of hotline posters nov 2021', 29702:'a definition. united states, as used in this clause, means the 50 states, the district of columbia, and outlying areas.', 29703:'b display of fraud hotline posters. except as provided in paragraph c— 1 during contract performance in the united states,', 29704:'the contractor shall prominently display in common work areas within business segments performing work under this contract and at contract', 29705:'work sites i any agency fraud hotline poster or department of homeland security dhs fraud hotline poster identified in paragraph', 29706:'b3 of this clause; and iiany dhs fraud hotline poster subsequently identified by the contracting officer. 2 additionally, if the', 29707:'contractor maintains a companywebsiteas amethod of providing information toemployees, the contractor shall display an electronic version of the posters at', 29708:'the website. 3 any required posters may be obtained as follows: posters obtain from contracting officer shall insert— i appropriate', 29709:'agency names and/or title of applicable department of homeland security fraud hotline poster; and ii the websites or other contact', 29710:'information for obtaining the posters. c if the contractor has implemented a business ethics and conduct awareness program, including a', 29711:'reporting mechanism, suchas ahotlineposter, thenthe contractor need not display anyagency fraud hotline posters asrequired in paragraph b of this clause,', 29712:'other than any required dhs posters. d subcontracts. the contractor shall include the substance of this clause, including this paragraph', 29713:'d, in all subcontracts that exceed the threshold specified in federal acquisition regulation 3.1004b1 on the date of subcontract award,', 29714:'except when the subcontract— 1 is for the acquisition of a commercial product or commercial service; or 2 is performed', 29715:'entirely outside the united states. end of clause 52.20315 whistleblower protectionsunder the american recovery and reinvestmentact of 2009. as prescribed', 29716:'in 3.9077, use the following clause: whistleblower protections under the american recovery and reinvestment act of 2009 june 2010 subpart', 29717:'52.2 text of provisions and clauses 52.20316 a the contractor shall post notice of employees rights and remedies for whistleblower', 29718:'protections provided under section 1553 of the american recovery and reinvestment act of2009 pub. l. 1115recovery act. b the contractor', 29719:'shall include the substance of this clause, including this paragraph b, in all subcontracts that are funded in whole or', 29720:'in part with recovery act funds. end of clause 52.20316 preventing personalconflictsof interest. as prescribed in 3.1106 , insert the', 29721:'following clause: preventing personal conflicts of interest jun 2020 a definitions. as used in this clause— acquisition function closely associated', 29722:'with inherently governmental functions means supporting or providing advice or recommendations with regard to the following activities of a federal', 29723:'agency: 1 planning acquisitions. 2 determining what supplies or services are to be acquired by the government, including developing statements', 29724:'of work. 3 developing or approving any contractual documents, to include documents defining requirements, incentive plans, and evaluation criteria. 4', 29725:'evaluating contract proposals. 5 awarding governmentcontracts. 6 administering contracts including ordering changes or giving technical direction in contract performance or', 29726:'contract quantities, evaluating contractor performance, and accepting or rejecting contractor products or services. 7 terminatingcontracts. 8 determining whether contract costs', 29727:'are reasonable, allocable, and allowable. covered employee means an individual who performs an acquisition function closely associated with inherently governmental', 29728:'functions and is— 1 an employee of the contractor; or 2 a subcontractor that is a selfemployed individual treated as', 29729:'a covered employee of the contractor because there is no employer to whom such an individual could submit the required', 29730:'disclosures. nonpublic information means any government or thirdparty information that 1 is exempt from disclosure under the freedom of information', 29731:'act 5 u.s.c. 552 or otherwise protected from disclosureby statute,executive order, or regulation; or 2 has not been disseminated to', 29732:'the general public and the government has not yet determined whether the information can or will be made available to', 29733:'the public. personal conflict of interest means a situationin whicha coveredemployee has afinancialinterest, personal activity, or relationship that couldimpair the', 29734:'employee’s abilityto act impartially and inthe best interest of the governmentwhen performingunder thecontract. a de minimis interest that wouldnot impair', 29735:'the employee’s ability to act impartially and in the best interest of the government is not covered under this definition.', 29736:'1 among the sources of personal conflicts of interest are i financial interests of the covered employee, of close family', 29737:'members, or of other members of the covered employee’s household; ii other employment or financial relationships including seeking or negotiating', 29738:'for prospective employment or business; and iii gifts, including travel. 2 for example, financial interests referred to in paragraph 1', 29739:'of this definition may arise from i compensation, including wages, salaries, commissions, professional fees, or fees for business referrals; ii', 29740:'consulting relationships including commercial and professional consulting and service arrangements, scientific and technical advisory board memberships, or serving as an', 29741:'expert witness in litigation; iii services provided in exchange for honorariums or travel expense reimbursements; iv research funding or other', 29742:'forms of research support; 52.20316 federal acquisition regulation v investment in the form of stock or bond ownership or partnership', 29743:'interest excluding diversified mutual fund investments; vi real estate investments; vii patents, copyrights, and other intellectual property interests; or viii', 29744:'business ownership and investment interests. b requirements. the contractor shall— 1 have procedures in place to screen covered employees for', 29745:'potential personal conflicts of interest, by i obtaining and maintaining from each covered employee, when the employee is initially assigned', 29746:'to the task underthe contract, adisclosure of interests that might be affected by the task to which the employee has', 29747:'been assigned, as follows: a financial interests of the covered employee, of close family members, or of other members of', 29748:'the covered employee’s household. b other employment or financial relationships of the covered employee including seeking or negotiating for prospective', 29749:'employment or business. c gifts, including travel; and iirequiring each covered employee to update the disclosure statement whenever the employee’s', 29750:'personal or financial circumstances change in such a way that a new personal conflict of interest might occur because of', 29751:'the task the covered employee is performing. 2 for each covered employee— i prevent personal conflicts of interest, including not', 29752:'assigning or allowing a covered employee to perform any task under the contract for which the contractor has identified a', 29753:'personal conflict of interest for the employee that the contractor or employee cannot satisfactorily prevent or mitigate in consultation with', 29754:'the contracting agency; ii prohibit use of nonpublic information accessed through performance of a government contract for personal gain; and', 29755:'iii obtain a signed nondisclosure agreement to prohibit disclosure of nonpublic information accessed through performance of a government contract. 3', 29756:'inform covered employees of their obligation ito disclose and prevent personalconflicts of interest; ii not to use nonpublic information accessed', 29757:'through performance of a government contract for personal gain; and iii to avoid even theappearance of personal conflicts ofinterest; 4', 29758:'maintain effective oversightto verify compliance with personal conflictofinterest safeguards; 5 takeappropriate disciplinary action in thecaseof covered employees who fail tocomply', 29759:'with policiesestablished pursuant to this clause; and 6 reportto thecontracting officer any personal conflictofinterest violation by acovered employee assoon as', 29760:'it is identified. this report shall include a description of the violation and the proposed actions to be taken by', 29761:'the contractor in response tothe violation. providefollowup reports of corrective actions taken, as necessary. personal conflictofinterest violations include i failure', 29762:'by a covered employee to disclose a personal conflict of interest; ii use by a covered employee of nonpublic information', 29763:'accessed through performance of a government contract for personal gain; and iii failure of a covered employee to comply with', 29764:'the terms of a nondisclosure agreement. c mitigationor waiver. 1 in exceptional circumstances, if the contractor cannot satisfactorily prevent a', 29765:'personal conflict of interest as required by paragraph b2i of this clause, the contractor may submit a request through the', 29766:'contracting officerto the head of the contracting activity for i agreement to a plan to mitigate the personal conflict of', 29767:'interest; or ii a waiver of the requirement. 2 the contractor shall include in the request any proposed mitigation of', 29768:'the personal conflict of interest. 3 the contractor shall icomply, and require compliance by the covered employee,with any conditions imposed', 29769:'by the government as necessary to mitigate the personal conflict of interest; or ii remove the contractor employee or subcontractor', 29770:'employee from performance of the contract or terminate the applicable subcontract. subpart 52.2 text of provisions and clauses 52.20319 d', 29771:'subcontracts. the contractor shall include the substance of this clause, including this paragraph d, in subcontracts— 1 that exceed the', 29772:'simplified acquisition threshold, as defined in federal acquisition regulation 2.101 on the date of subcontract award; and 2 in which', 29773:'subcontractor employees will perform acquisition functions closely associated with inherently governmental functions i.e., instead of performance only by a selfemployed', 29774:'individual. end of clause 52.20317 contractor employee whistleblower rights. as prescribed in 3.906, insert the following clause: contractor employee whistleblower', 29775:'rights nov 2023 a this contract and employees working on this contract will be subject to the whistleblower rights and', 29776:'remedies established at 41 u.s.c. 4712and federal acquisition regulationfar 3.900 through 3.905. b the contractor shall inform its employees in', 29777:'writing, in the predominant language of the workforce, of employee whistleblower rights and protections under 41 u.s.c. 4712, as described', 29778:'in far 3.900 through 3.905. c the contractor shall insert the substance of this clause, including this paragraph c, in', 29779:'all subcontracts. end of clause 52.20318 prohibitionon contractingwith entities that require certain internalconfidentiality agreements or statementsrepresentation. as prescribed in 3.9093a,', 29780:'insert the following provision: prohibition on contracting with entities that require certain internal confidentiality agreements or statementsrepresentation jan 2017 a', 29781:'definition. as used in this provision internal confidentiality agreement or statement, subcontract, and subcontractor , are defined in the clause', 29782:'at 52.20319, prohibition on requiring certain internal confidentiality agreements or statements. b in accordance with section 743 of divisione, title', 29783:'vii, ofthe consolidated and further continuing appropriations act, 2015 pub. l. 113235 and its successor provisionsin subsequent appropriations acts and', 29784:'as extended in continuing resolutions, government agencies are not permitted to use funds appropriated or otherwise made available for contracts', 29785:'with an entity that requires employees or subcontractors of such entity seeking to report waste, fraud, or abuse to sign', 29786:'internal confidentiality agreements or statements prohibiting or otherwise restricting such employees or subcontractors from lawfully reporting such waste, fraud, or', 29787:'abuse to a designated investigative or law enforcement representative of a federal department or agency authorized to receive such information.', 29788:'c the prohibition in paragraph b of this provision does not contravene requirements applicable to standard form 312, classified information', 29789:'nondisclosure agreement, form 4414 sensitive compartmented information nondisclosure agreement, or any other form issued by a federal department or agency', 29790:'governing the nondisclosure of classified information. d representation. by submission ofits offer, the offeror representsthat it will not require its', 29791:'employeesor subcontractors to sign or comply with internal confidentiality agreements or statements prohibiting or otherwise restricting such employees or subcontractors', 29792:'from lawfully reporting waste, fraud, or abuse related to the performance of a government contract to a designated investigative or', 29793:'law enforcement representative of a federal department or agency authorized to receive suchinformatione.g., agency office of the inspector general. end', 29794:'of provision 52.20319 prohibitionon requiring certain internal confidentialityagreements or statements. as prescribed in 3.9093b, insert the following clause: 52.20319 federal', 29795:'acquisition regulation prohibition on requiring certain internal confidentiality agreements or statements jan 2017 a definitions. as used in this clause', 29796:'internal confidentiality agreement or statement means a confidentiality agreement or any other written statement that the contractor requires any of', 29797:'its employees or subcontractors to sign regarding nondisclosure of contractor information, except that it does not include confidentiality agreements arising', 29798:'out of civil litigation or confidentiality agreements that contractor employees or subcontractorssign at thebehest of a federalagency. subcontract means any', 29799:'contract as defined in subpart 2.1 entered into by a subcontractor to furnish supplies or services for performance of a', 29800:'prime contract or a subcontract. it includes but is not limited to purchase orders, and changes and modifications to purchase', 29801:'orders. subcontractor means any supplier,distributor, vendor,or firm including a consultantthat furnishes supplies or services to or for a prime contractor', 29802:'or another subcontractor. b the contractor shall not require its employees or subcontractors to sign or comply with internal confidentiality', 29803:'agreements or statements prohibiting or otherwise restricting such employees or subcontractors from lawfully reporting waste, fraud, or abuse related to', 29804:'the performance of a government contract to a designated investigative or law enforcement representative of a federal department or agency', 29805:'authorized to receive such information e.g., agencyofficeof the inspector general. c the contractor shall notify current employees and subcontractors that', 29806:'prohibitions and restrictions of any preexisting internal confidentiality agreements or statements covered by this clause, to the extent that such', 29807:'prohibitions and restrictions areinconsistent with the prohibitions of this clause,are no longer in effect. d the prohibition in paragraph b', 29808:'of this clause does not contravene requirements applicable to standard form 312 classified information nondisclosure agreement, form 4414 sensitive compartmented', 29809:'information nondisclosure agreement, or any other form issued by a federal department or agency governing the nondisclosure of classified information.', 29810:'e inaccordance withsection 743 of division e, title vii,of the consolidatedandfurthercontinuing appropriations act, 2015, pub. l. 113235, and its successor', 29811:'provisions in subsequent appropriationsacts andas extended in continuing resolutions use of funds appropriated or otherwise made available is prohibited, if', 29812:'the government determines that the contractor is not in compliance with the provisions of this clause. f the contractor shall', 29813:'include the substance of this clause, including this paragraph f, in subcontracts under such contracts. end of clause subpart 52.2', 29814:'text of provisions and clauses 52.2042 52.204[reserved] 52.2041approval of contract. as prescribed in 4.103, insert the following clause: approval of', 29815:'contractdec 1989 this contract is subject to the written approval of [identify title of designated agency official here] and shall', 29816:'not be binding until so approved. end of clause 52.2042security requirements. as prescribed in 4.404a, insert the following clause: security', 29817:'requirements mar 2021 a this clause applies to the extent that this contract involves access to information classified confidential, secret,', 29818:'or top secret. b the contractor shall comply with 1 the security agreement dd form441, including the national industrial security', 29819:'program operating manual 32 cfr part117; and 2 any revisions tothat manual, notice of whichhas been furnished to the contractor.', 29820:'c if, subsequent to the date of this contract, the security classification or security requirements under this contract are changed', 29821:'bythe government and if the changes cause an increase or decrease in security costsor otherwise affect any other term or', 29822:'condition of this contract, the contract shall be subject to an equitable adjustment as if the changes were directed under', 29823:'the changes clause of this contract. d the contractor agrees to insert terms that conform substantially to the language of', 29824:'this clause, including this paragraph d but excluding any reference to the changes clause of this contract, in all subcontracts', 29825:'under this contract that involve access to classified information. end of clause alternate i apr 1984. if a cost contract', 29826:'for research and development with an educational institution is contemplated, add the following paragraphs e, f, and g to the', 29827:'basic clause: e if a change in security requirements, as provided in paragraphs b and c, results 1in a change', 29828:'in the security classification of this contract or any of its elements from an unclassified status or a lower classification', 29829:'to a higher classification, or 2in more restrictive area controls than previously required, the contractor shall exert every reasonable effort', 29830:'compatible with the contractor’s established policies to continue the performance of workunder thecontract in compliance with the change insecurity classification', 29831:'or requirements. if, despite reasonable efforts, the contractor determines that the continuation of work under this contract is not practicable', 29832:'because of the change in security classification or requirements,the contractor shall notify the contracting officer in writing. until resolution of', 29833:'the problem ismade by the contracting officer, thecontractor shall continue safeguarding all classified material as requiredby this contract. f after', 29834:'receiving the written notification,the contracting officershallexplore thecircumstances surrounding the proposed change in security classification or requirements, and shall endeavor to', 29835:'work out a mutually satisfactory method whereby the contractor can continue performance of the work under this contract. g if,', 29836:'15 days after receipt bythe contracting officerof the notification of thecontractor’s stated inability to proceed, 1 the application to this', 29837:'contract of the change in security classification or requirements has not been withdrawn, or 2a mutually satisfactory method for continuing', 29838:'performance of work under this contract has not been agreed upon, the contractor may request the contracting officer to terminate', 29839:'the contract in whole or in part. the contracting officer shall terminate the contract in whole or in part, as', 29840:'may be appropriate, and the termination shall be deemed a termination under the terms of thetermination for theconvenience of the', 29841:'government clause. 52.2043 federal acquisition regulation alternate ii apr 1984. if employee identification is required for security or other reasons', 29842:'in a construction contract or architectengineer contract, add the following paragraph e to the basic clause: e the contractor shall', 29843:'be responsible for furnishing to each employee and for requiring each employee engaged on the work to display suchidentification as', 29844:'may be approvedand directedby the contracting officer. all prescribed identification shall immediately be delivered to the contracting officer, for cancellationupon', 29845:'therelease ofany employee. whenrequired by the contractingofficer, the contractor shall obtain and submitfingerprints of all persons employedor to be employed', 29846:'on the project. 52.2043taxpayer identification. as prescribed in 4.905, insert the following provision: taxpayer identification oct 1998 a definitions. common', 29847:'parent, as used in this provision, means thatcorporate entity thatowns orcontrols an affiliated group of corporations that files its federal', 29848:'incometax returns on a consolidatedbasis, and of which the offeroris amember. taxpayer identification number tin, as used in this provision,', 29849:'means the number required by the internal revenue serviceirs to be used by theofferor in reporting income tax and other', 29850:'returns. the tin may beeither asocial security number or anemployer identification number. b all offerors must submitthe information required in', 29851:'paragraphs d through f of this provision to comply with debt collection requirements of 31 u.s.c. 7701c and 3325d, reporting', 29852:'requirements of 26 u.s.c.6041, 6041 a, and 6050 m, and implementing regulations issued by the irs. if the resulting contract', 29853:'is subject to the payment reporting requirements described infederal acquisition regulation far 4.904, the failure or refusal by the offeror', 29854:'tofurnish the information may result in a 31 percent reduction of payments otherwise due under the contract. c thetin may', 29855:'be used by the government tocollect and report on any delinquent amounts arising out of the offeror’s relationship with the', 29856:'government 31 u.s.c. 7701c3. if the resulting contract is subject to the payment reporting requirementsdescribed in far 4.904, the tin', 29857:'provided hereunder may be matched with irs records to verify the accuracy of the offeror’s tin. d taxpayer identification number', 29858:'tin. □ tin: . □ tin has been appliedfor. □ tin is not required because: □ offeror is a nonresident', 29859:'alien, foreign corporation, or foreignpartnership thatdoes not have income effectively connected with the conduct of a trade orbusinessin the united', 29860:'states and does nothavean office orplace of business ora fiscal paying agent in the united states; □ offeror is an', 29861:'agency or instrumentality of a foreign government; □ offeror is an agency or instrumentality of the federal government. e type', 29862:'of organization. □ sole proprietorship; □ partnership; □ corporate entity not taxexempt; □ corporate entity taxexempt; □ government entity federal,', 29863:'state, or local; □ foreign government; □ international organization per 26 cfr 1.60494; □ other. f common parent. □ offeror', 29864:'is not owned or controlled bya commonparent asdefined in paragraph a of this provision. □ name and tin of common', 29865:'parent: □ name. □ tin. end of provision fac 202501 november 12, 2024 subpart 52.2 text of provisions and clauses', 29866:'52.2047 52.2044 [reserved] 52.2045womenowned business other than small business. as prescribed in 4.607a, insert the following provision: womenowned business other', 29867:'than small business oct 2014 a definition.womenowned business concern, as used in this provision, means a concern that is atleast', 29868:'51 percent owned by one or more women; or in the case of any publicly owned business, at least 51', 29869:'percent of its stock is owned by one or more women; and whose management and daily business operations are controlled', 29870:'by one or more women. b representation. [complete only if the offeror is a womenowned business concern and has not', 29871:'represented itself as a small business concern in paragraph c1 of far 52.2191, small business program representations, of this solicitation.]', 29872:'the offeror represents that it □ is a womenowned business concern. end of provision 52.2046uniqueentity identifier. as prescribed in 4.607b,', 29873:'insert the following provision: unique entity identifier oct 2016 a definition. as used in this provision electronic funds transfer eft', 29874:'indicator meansa fourcharactersuffix to the unique entity identifier. thesuffix is assigned atthe discretion of the commercial, nonprofit, or government entityto', 29875:'establish additional system for award management records for identifying alternative eft accounts see subpart 32.11forthesameentity. unique entity identifier means a', 29876:'number or other identifier used to identify a specific commercial, nonprofit, or government entity. see www.sam.gov for the designated entity', 29877:'for establishing unique entity identifiers. b the offeror shall enter, in the block with its name and address on the', 29878:'cover page of its offer, the annotation unique entity identifier followed by the unique entity identifier thatidentifies theofferors name and', 29879:'address exactly as stated inthe offer. the offeror also shall enter its eft indicator, if applicable. c if the offeror', 29880:'does not have a unique entityidentifier, it should contact theentity designated at www.sam.gov for establishmentof the unique entity identifier directly', 29881:'toobtainone. the offeror should be prepared to provide thefollowing information: 1 company legal business name. 2 tradestyle, doing business,or other', 29882:'name by which your entity iscommonlyrecognized. 3 company physical street address, city,state and zip code. 4 company mailing address, city,', 29883:'stateand zip code if separatefrom physical. 5 company telephone number. 6 date the company was started. 7 number of employees', 29884:'at your location. 8 chief executiveofficer/key manager. 9 line of business industry. 10 company headquarters name and address reporting relationship', 29885:'within your entity. end of provision 52.2047system for award management. as prescribed in 4.1105a1, use the following provision: system for', 29886:'award management nov 2024 a definitions. as used in this provision— fac 202501 november 12, 2024 52.2048 federal acquisition regulation', 29887:'electronic funds transfer eft indicator means afourcharacter suffixto theunique entity identifier. the suffix is assigned atthe discretion of the commercial,', 29888:'nonprofit, or government entityto establish additional system for award management records for identifying alternative eft accounts see subpart 32.11forthesameentity. registered', 29889:'in the system for award management sam means that– 1 the offeror has entered all mandatory information,including the unique entity', 29890:'identifier and the eftindicator, if applicable, the commercial and government entity cage code, as well as data required by the', 29891:'federal funding accountabilityandtransparencyactof2006see subpart 4.14 into sam 2 the offeror has completed the core, assertions,andrepresentations and certifications, and points of', 29892:'contact sections of the registration in sam; 3 the government has validated all mandatory data fields, toinclude validation of the', 29893:'taxpayer identification number tin with the internal revenue service irs. the offeror will be required toprovide consent for tinvalidation to', 29894:'the government as a part of the sam registration process; and 4 the government has marked the record active. unique', 29895:'entity identifier means a number or other identifier used to identify a specific commercial, nonprofit, or government entity. see www.sam.gov', 29896:'for the designated entity for establishing unique entity identifiers. b 1 anofferorisrequiredtoberegisteredinsamwhensubmittinganofferorquotationandattimeofawardsee far clause 52.20413, system for award management maintenance,', 29897:'for the requirement to maintain sam registration during performance and through final payment. 2 the offeror shall enter, in the', 29898:'block with its name and address on the cover page of its offer, the annotation unique entity identifier followed by', 29899:'the unique entity identifier thatidentifies theofferors name and address exactly as stated inthe offer. the offeror also shall enter its', 29900:'eft indicator, if applicable. the unique entity identifierwill be used by the contracting officer to verify thatthe offeror isregisteredin thesam.', 29901:'c if the offeror does not have a unique entityidentifier, it should contact theentity designated at www.sam.gov for establishmentof the', 29902:'unique entity identifier directly toobtainone. the offeror should be prepared to provide thefollowing information: 1 company legal business name. 2', 29903:'tradestyle, doing business,or other name by which your entity iscommonlyrecognized. 3 company physical street address, city,state,and zip code. 4 company', 29904:'mailing address, city, stateand zip code if separatefrom physical. 5 company telephone number. 6 date the company was started. 7', 29905:'number of employees at your location. 8 chief executiveofficer/key manager. 9 line of business industry. 10 company headquarters name and', 29906:'address reporting relationship within your entity. d processing time should be taken into considerationwhen registering. offerors who are not registered', 29907:'insam should consider applying for registration immediately upon receipt of this solicitation. see https://ww.sam.gov for information on registration. end of', 29908:'provision alternate i oct 2018. as prescribed in 4.1105a2 , substitute the following paragraph b1 for paragraph b1 of the', 29909:'basic provision: b1 an offeror is requiredto beregisteredin samas soon as possible. if registration is notpossible when submitting anoffer or', 29910:'quotation, theawardee shall be registered in sam in accordance withthe requirementsof clause 52.20413, system for award management maintenance. 52.2048annual representations', 29911:'and certifications. as prescribed in 4.1202a, insert the following provision: annual representations and certifications may 2024 subpart 52.2 text of', 29912:'provisions and clauses 52.2048 a 1 the north american industry classification system naics code for this acquisition is [insert naics', 29913:'code]. 2 the small business size standard is [insert size standard]. 3 the small businesssize standardfora concern that submits anoffer,', 29914:'other than ona construction or service acquisition, but proposes to furnish an end item that it did not itself manufacture,', 29915:'process, or produce is 500 employees, or 150 employees for information technology valueadded resellers under naics code 541519 if the', 29916:'acquisition— i is set aside for small business and has a value above the simplified acquisition threshold; iiuses the hubzoneprice', 29917:'evaluation preference regardlessof dollar value, unless the offeror waives the price evaluation preference; or iii is an 8a, hubzone, servicedisabled', 29918:'veteranowned, economically disadvantaged womenowned, or women owned small business setaside or solesource award regardless of dollar value. b 1 if', 29919:'the provision at 52.2047,systemforawardmanagement,isincludedinthissolicitation,paragraphdofthis provision applies. 2 if the provision at 52.2047,systemforaward management, is not included in this solicitation, and', 29920:'the offeror has an active registration in the system for award management sam, the offeror maychoose to use paragraph d', 29921:'of this provisioninstead of completing the correspondingindividual representations and certifications inthe solicitation. the offeror shall indicate which option applies by', 29922:'checking one of the following boxes: i □ paragraph d applies. ii □ paragraph d does not apply and the', 29923:'offeror has completed the individual representations and certifications in the solicitation. c 1 the following representations or certifications in sam', 29924:'are applicable to this solicitation as indicated: i 52.2032, certificate of independent price determination. this provision applies to solicitations when', 29925:'a firm fixedprice contract or fixedprice contract with economic price adjustment is contemplated, unless– a the acquisition is to be', 29926:'made under the simplified acquisition procedures in part 13; b the solicitation is a request for technical proposals under twostep', 29927:'sealed bidding procedures; or c the solicitation is for utility services for which rates are set by law or regulation.', 29928:'ii 52.20311, certification and disclosure regarding payments toinfluence certainfederal transactions. this provision applies to solicitations expected to exceed $150,000. iii', 29929:'52.20318, prohibition on contracting with entities that require certain internal confidentiality agreements or statementsrepresentation. this provision applies to all solicitations.', 29930:'iv 52.2043, taxpayer identification. this provision applies to solicitations that do not include the provision at 52.2047, system for award', 29931:'management. v 52.2045, womenowned business otherthan small business. this provision applies to solicitations that a are not set aside for', 29932:'small business concerns; b exceed the simplified acquisition threshold; and c are for contracts that will be performed in the', 29933:'united states or its outlying areas. vi 52.20426, covered telecommunications equipment orservicesrepresentation. this provisionapplies to all solicitations. vii 52.2092, prohibition', 29934:'on contracting with inverted domestic corporationsrepresentation. viii 52.2095, certification regarding responsibility matters. this provision applies to solicitations where the contract', 29935:'value is expected to exceed the simplified acquisition threshold. ix 52.20911, representation by corporations regardingdelinquent tax liability or a felony', 29936:'conviction under any federallaw. this provision applies to all solicitations. x 52.21414, place of performancesealed bidding. this provision applies to', 29937:'invitations for bids except those in which the place of performance is specified by the government. xi 52.2156, place of', 29938:'performance. this provision applies to solicitations unless the place of performance is specified by the government. xii 52.2191, small business', 29939:'program representations basic, alternates i, and ii. this provision applies to solicitations when the contract is for supplies to be', 29940:'delivered or services to be performed in the united states or its outlying areas,orwhenthecontractingofficerhasapplied part 19 in accordance with 19.000b1ii.', 29941:'a the basic provision applies when the solicitations are issued by other than dod, nasa, and the coast guard. b', 29942:'the provision with its alternate i applies to solicitations issued by dod, nasa, or the coast guard. 52.2048 federal acquisition', 29943:'regulation c the provision with its alternate ii applies to solicitations that will result in a multipleaward contract with more', 29944:'than one naics code assigned. xiii 52.2192, equal low bids. this provision applies to solicitations when contracting by sealed bidding', 29945:'and the contract is for supplies to be delivered or services to be performed in the united states or its', 29946:'outlying areas, or when the contractingofficerhasapplied part 19 in accordance with 19.000b1ii. xiv 52.22222, previous contracts and compliance reports. this', 29947:'provision applies to solicitations that include the clause at 52.22226,equalopportunity. xv 52.22225, affirmative action compliance. this provisionapplies to solicitations,other thanthose', 29948:'for construction, when the solicitation includes the clause at 52.22226, equal opportunity. xvi 52.22238, compliance withveterans’ employment reportingrequirements. this provision', 29949:'appliesto solicitations when it is anticipated the contract award will exceed the simplified acquisition threshold and the contract is not', 29950:'for acquisition of commercial products or commercial services. xvii 52.2231, biobased product certification. this provision applies to solicitations that require', 29951:'the delivery or specify the use of biobased products in usdadesignated product categories; or include the clause at 52.2232, reporting', 29952:'of biobased products under service and construction contracts. xviii 52.2234, recovered material certification. this provision applies to solicitations that are', 29953:'for, or specify the use of, epa–designated items. xix 52.22322, public disclosure of greenhouse gas emissions and reduction goalsrepresentation. this', 29954:'provision applies to solicitations that include the provision at 52.2047. xx 52.2252, buy american certificate. this provision applies to solicitations', 29955:'containing the clause at 52.2251. xxi 52.2254, buy americanfree trade agreementsisraeli trade act certificate. basic, alternates ii and iii. this', 29956:'provision applies to solicitations containing the clause at 52.2253. a if the acquisition value is less than $50,000, the basic', 29957:'provision applies. b if the acquisition value is $50,000 or more but is less than $100,000, the provision with its', 29958:'alternate ii applies. c if the acquisition value is $100,000 or more but is less than $102,280, the provision with', 29959:'its alternate iii applies. xxii 52.2256, trade agreements certificate. this provision applies to solicitations containing the clause at 52.2255. xxiii', 29960:'52.22520, prohibition on conducting restricted business operations in sudancertification. this provision applies to all solicitations. xxiv 52.22525, prohibition on contracting', 29961:'with entities engaging in certain activitiesor transactions relating to iranrepresentation and certifications. this provision applies to all solicitations. xxv 52.2262,', 29962:'historically black college or university and minority institution representation. this provision applies to solicitations for research, studies, supplies, or services', 29963:'of the type normally acquired from higher educational institutions. 2 the following representations or certifications areapplicable asindicated bythe contracting officer:', 29964:'[contracting officer check as appropriate.] i 52.20417,ownershiporcontrolofofferor. ii 52.20420,predecessorofofferor. iii 52.22218, certification regarding knowledge of child labor for listed end', 29965:'products. iv 52.22248, exemption from application of the service contract labor standards to contracts for maintenance, calibration, or repair of', 29966:'certain equipment certification. v 52.22252, exemption from application of the service contract labor standards to contracts for certain servicescertification. vi', 29967:'52.2276, royalty information. a basic. b alternate i. vii 52.22715, representation of limited rights data and restricted computer software. d', 29968:'the offeror has completed the annualrepresentations and certificationselectronically in sam website accessed through https://www.sam.gov. after reviewing thesam information, the offeror', 29969:'verifies by submission of the offer thatthe representations and certifications currently posted electronically that apply to this solicitation as indicated', 29970:'in paragraph c of this provision have been entered or updated within the last 12 months, are current, accurate, complete,', 29971:'and applicable to this subpart 52.2 text of provisions and clauses 52.2049 solicitation including the business size standard applicable to', 29972:'the naics code referenced for this solicitation, as of the date of this offerand are incorporated in this offerby reference', 29973:'see far 4.1201; except for the changes identified below [offeror to insert changes, identifying change by clause number, title, date].', 29974:'these amended representations and/or certifications arealso incorporated inthis offer and are current, accurate,andcomplete asof the date of this offer. far', 29975:'clause titledate change any changes provided bythe offerorare applicable to this solicitation only, anddo not result in an update to', 29976:'the representations and certifications posted on sam. end of provision alternate i mar 2023. as prescribed in 4.1202a , substitute', 29977:'the following paragraph a for paragraph a of the basic provision: a1 the north american industry classification system naics codes', 29978:'and corresponding size standards for this acquisition are as follows; the categories or portions these naics codes are assigned to', 29979:'are specified elsewhere in the solicitation: naics code size standard [contracting officer to insert naics codes and size standards]. 2', 29980:'the small businesssize standardfora concern that submits anoffer, other than ona construction or service acquisition, but proposes to furnish an', 29981:'end item that it did not itself manufacture, process, or produce, i.e., nonmanufacturer, is 500 employees, or 150 employees for', 29982:'information technology valueadded resellers under naics code 541519, if the acquisition— i is set aside for small business and has', 29983:'a value above the simplified acquisition threshold; iiuses the hubzoneprice evaluation preference regardlessof dollar value, unless the offeror waives the', 29984:'price evaluation preference; or iii is an 8a, hubzone, servicedisabled veteranowned, economically disadvantaged womenowned, or women owned small business setaside', 29985:'or solesource award regardless of dollar value. 52.2049personal identity verification of contractor personnel. as prescribed in 4.1303, insert the following', 29986:'clause: personal identity verification of contractor personnel jan 2011 a the contractor shall comply with agency personal identity verification procedures', 29987:'identified in the contract that implement homelandsecurity presidentialdirective12 hspd12, office of management and budget omb guidance m0524 and federal information', 29988:'processing standards publication fips pub number 201. b the contractor shall account for all forms of governmentprovided identification issued to', 29989:'the contractor employees in connection with performance under this contract. the contractor shall return such identification to the issuing agency', 29990:'at the earliest of any of the following, unless otherwise determined by the government: 1 when no longer needed for', 29991:'contract performance. 2 upon completion of the contractor employee’s employment. 3 upon contract completion or termination. c thecontracting officer may', 29992:'delay final payment under a contract if the contractor fails to complywith these requirements. 52.20410 federal acquisition regulation d the', 29993:'contractor shall insert the substance of this clause, including this paragraph d, in all subcontracts when the subcontractor’s employeesare required', 29994:'to have routinephysical access to a federallycontrolled facility and/or routine access to a federallycontrolled information system. it shall be the', 29995:'responsibility of the prime contractor to return such identification to the issuing agency in accordance with the terms set forth', 29996:'in paragraph b of this section, unless otherwise approved in writing by the contracting officer. end of clause 52.20410 reporting', 29997:'executive compensation and firsttier subcontract awards. as prescribed in 4.1403a, insert the following clause: reporting executive compensation and firsttier subcontract', 29998:'awards jun 2020 a definitions. as used in this clause: executive means officers, managing partners, or any other employees in', 29999:'management positions. firsttier subcontract means a subcontract awarded directly by the contractor for the purpose of acquiring supplies or services', 30000:'including constructionforperformance of a prime contract. it does not include the contractor’s supplier agreements with vendors, such as longterm arrangements', 30001:'for materials or supplies that benefit multiple contracts and/or the costs of which are normally applied to a contractor’sgeneral and', 30002:'administrative expenses or indirect costs. month of award means the month in which a contract is signed bythe contracting officeror', 30003:'the month inwhich a first tier subcontract is signed by thecontractor. total compensation means thecash and noncash dollar value earned', 30004:'by theexecutive duringthe contractor’spreceding fiscal year and includes the following for more information see 17 cfr 229.402c2: 1 salary and', 30005:'bonus. 2 awards of stock, stock options, and stock appreciation rights. use the dollar amount recognized for financial statement reporting', 30006:'purposes with respect to the fiscal year in accordance with the financial accounting standards board’s accounting standards codificationfasb asc 718,compensationstock', 30007:'compensation. 3 earnings for services under nonequity incentive plans. this does not include group life, health, hospitalization or medical reimbursement', 30008:'plans that do not discriminate in favor of executives, and are available generally to all salaried employees. 4 change in', 30009:'pension value. this is the change in present value of defined benefit and actuarial pension plans. 5 abovemarket earnings on', 30010:'deferred compensation which is not taxqualified. 6 other compensation, if the aggregate value of all such other compensation e.g., severance,', 30011:'termination payments, value of life insurance paid on behalf of the employee, perquisites or property for the executive exceeds $10,000.', 30012:'b section2d2 of the federalfunding accountability and transparency act of 2006pub. l. 109282, as amended by section 6202 ofthe government', 30013:'funding transparency act of 2008pub. l. 110252, requires the contractorto report information on subcontract awards. the law requires all reported', 30014:'information be made public, therefore, the contractor is responsible for notifying its subcontractors that the required information will be made', 30015:'public. c nothing in this clause requires the disclosure of classified information d 1executivecompensationoftheprimecontractor. asapartofitsannualregistrationrequirementinthesystem for award management sam federalacquisition', 30016:'regulation far provision 52.2047, the contractor shall report the namesand total compensationof each of the five most highlycompensated executives for', 30017:'its precedingcompleted fiscal year, if– iin the contractor’s preceding fiscal year, the contractor received a 80 percent or more of', 30018:'its annual gross revenues from federal contracts and subcontracts, loans, grants and subgrants, cooperative agreements, and other forms of federal', 30019:'financial assistance; and b $25,000,000 or more in annual gross revenues from federal contracts and subcontracts, loans, grants and subgrants,', 30020:'cooperative agreements, and other forms of federal financial assistance; and ii the public does not have access to information about', 30021:'the compensation of the executives through periodic reports filed under section 13a or 15d of the securities exchange act of', 30022:'1934 15 u.s.c. 78ma, 78od or section 6104 of the internalrevenuecode of 1986. to determine if the public hasaccess tothe', 30023:'compensation information, see theu.s. security and exchange commission total compensation filings at http://www.sec.gov/answers/execomp.htm. subpart 52.2 text of provisions and clauses', 30024:'52.20410 2 firsttier subcontract information. unless otherwise directed by the contracting officer, or as provided in paragraph g of this', 30025:'clause, by the end of the month following the month of award of a firsttier subcontract valued at or above', 30026:'the threshold specified in far 4.1403a on the date of subcontract award, the contractor shall report the following information at', 30027:'http://www.fsrs.gov for that firsttier subcontract. the contractor shall follow the instructions at http:// www.fsrs.gov to report the data. iuniqueentity identifier', 30028:'for the subcontractor receiving the award andforthe subcontractors parent company, if thesubcontractorhas a parent company. iiname of the subcontractor. iii', 30029:'amount of the subcontract award. iv date of the subcontract award. v a description of the products or services including', 30030:'construction being provided under the subcontract, including the overall purpose and expected outcomes or results of the subcontract. vi subcontract', 30031:'number the subcontract number assigned by the contractor. vii subcontractor’s physical address including street address, city,state,and country. alsoinclude the ninedigit', 30032:'zip code and congressional district. viii subcontractor’s primary performance location including street address,city,state, and country. also include the ninedigit zip', 30033:'code and congressional district. ix the prime contract number, and order number ifapplicable. x awarding agency name and code. xi', 30034:'funding agency name and code. xii government contractingoffice code. xiii treasury account symbol tas as reported in fpds. xiv the', 30035:'applicable north american industry classification system code naics. 3 executive compensation of the firsttier subcontractor. unless otherwise directed by the', 30036:'contracting officer, by the end of the month following the month of award of a firsttier subcontract valued at or', 30037:'above the threshold specified in far 4.1403a on the date of subcontract award, and annually thereafter calculated from the prime', 30038:'contract award date, the contractor shall report the names and total compensation of each of the five most highly compensated', 30039:'executives for that firsttiersubcontractorforthe firsttiersubcontractor’s preceding completed fiscal year at http://www.fsrs.gov, if iin the subcontractor’s preceding fiscal year,the subcontractor received', 30040:'a 80 percent or more of its annual gross revenues from federal contracts and subcontracts, loans, grants and subgrants, cooperative', 30041:'agreements, and other forms of federal financial assistance; and b $25,000,000 or more in annual gross revenues from federal contracts', 30042:'and subcontracts, loans, grants and subgrants, cooperative agreements, and other forms of federal financial assistance; and ii the public does', 30043:'not have access to information about the compensation of the executives through periodic reports filed under section 13a or 15d', 30044:'of the securities exchange act of 1934 15 u.s.c. 78ma, 78od or section 6104 of the internalrevenuecode of 1986. to', 30045:'determine if the public hasaccess tothe compensation information, see theu.s. security and exchange commission total compensation filings at http://www.sec.gov/answers/execomp.htm. e', 30046:'the contractor shall not split or break down firsttier subcontract awards to a value below the threshold specified in far', 30047:'4.1403a, on the date of subcontract award, to avoid the reporting requirements in paragraph d of this clause. f the', 30048:'contractor is required to report information on a firsttier subcontract covered by paragraph d when the subcontract is awarded. continued', 30049:'reporting on the same subcontract is not required unless one of the reported data elements changes during the performance of', 30050:'the subcontract. the contractor is not required to make further reports after the firsttier subcontract expires. g 1 if the', 30051:'contractor in the previous tax year had gross income, from all sources, under $300,000, the contractor is exempt from the', 30052:'requirement to report subcontractor awards. 2 if a subcontractor in the previous tax year had gross income from all sources', 30053:'under $300,000, the contractor does not need to reportawards for that subcontractor. h the fsrs database at http://www.fsrs.gov will be', 30054:'prepopulated with some information from sam and the fpds database. iffpdsinformationis incorrect, the contractor should notify the contractingofficer. if the', 30055:'sam information is incorrect, the contractor is responsible for correcting this information. end of clause 52.20411 federal acquisition regulation 52.20411', 30056:'[reserved] 52.20412 unique entity identifier maintenance. as prescribed in 4.607c, insert the following clause: unique entity identifier maintenance oct 2016', 30057:'a definition. uniqueentity identifier, as used in thisclause, meansa numberor other identifierused to identify a specific commercial,nonprofit, or governmententity. see', 30058:'www.sam.gov for the designated entity for establishing unique entity identifiers. b the contractor shall ensure that the unique entity identifier', 30059:'is maintained with the entity designated at the system for award management sam for establishment of theunique entity identifier throughout', 30060:'the life of thecontract. the contractor shall communicate any change to the unique entity identifierto thecontracting officer within 30 days', 30061:'after the change, so an appropriate modification can be issued to update the data on the contract. a change in', 30062:'the unique entity identifier does not necessarily require a novation be accomplished. end of clause 52.20413 systemfor awardmanagement maintenance. as', 30063:'prescribed in 4.1105b, use the following clause: system for award management maintenance. oct 2018 a definitions. as used in this', 30064:'clause— electronic funds transfer eft indicator meansa fourcharactersuffix to the unique entity identifier. thesuffix is assigned atthe discretion of the', 30065:'commercial, nonprofit, or government entityto establish additional system for award management sam records for identifying alternative eft accounts see subpart', 30066:'32.11forthesameentity. registered in the system for award management sam means that– 1 the contractor has entered all mandatory information, including', 30067:'the unique entity identifier and the eft indicator if applicable, the commercial and government entity cage code, as well as', 30068:'data required by the federal funding accountabilityandtransparencyactof2006see subpart 4.14, into sam; 2 the contractor has completed the core, assertions, representations', 30069:'and certifications, and points of contact sections of the registration in sam; 3 the government has validated all mandatory data', 30070:'fields, toinclude validation of the taxpayer identification number tin with the internal revenue service irs. the contractor will be required', 30071:'to provide consent for tin validation to the government as a part of the sam registration process; and 4 the', 30072:'government has marked the record active. system for award management sam means the primary government repository for prospective federal awardee', 30073:'and federal awardee information and the centralized government system for certain contracting, grants, and other assistance related processes. it includes–', 30074:'1 data collected from prospective federal awardees required for the conduct of business with the government; 2prospectivecontractorsubmittedannualrepresentationsandcertificationsinaccordancewithfar subpart 4.12; and', 30075:'3 identification of those parties excluded from receiving federal contracts, certain subcontracts, and certain types of federal financial and nonfinancial', 30076:'assistance and benefits. unique entity identifier means a number or other identifier used to identify a specific commercial, nonprofit, or', 30077:'government entity. see www.sam.gov for the designated entity for establishing unique entity identifiers. b if the solicitation for this contract', 30078:'contained the provision 52.2047 with its alternate i, and the contractor was unable to register prior to award, the contractor', 30079:'shall be registered in sam within 30 days after award or before three days prior to submission of the first', 30080:'invoice, whichever occurs first. c the contractor shall maintain registration in sam during contract performance and through final payment of', 30081:'any contract, basic agreement, basic ordering agreement, or blanket purchasing agreement. the contractor is responsible for the currency, accuracy and', 30082:'completenessof the data within sam,andforany liability resulting from the governments reliance subpart 52.2 text of provisions and clauses 52.20414 on', 30083:'inaccurate or incomplete data. toremainregisteredin samafter the initial registration, the contractor isrequired to review and update on an annual basis,', 30084:'from the date of initial registration or subsequent updates, its information in sam to ensure it is current, accurate and', 30085:'complete. updating information in sam does not alter the terms and conditions of this contract and is not a substitute', 30086:'for a properly executed contractual document. d 1 i if a contractor has legally changed its business name or doing', 30087:'business as name whichever is shown on the contract, or has transferred the assets used in performing the contract, but', 30088:'has not completed the necessary requirements regarding novation and changeofname agreements in subpart 42.12, the contractor shall provide the responsible', 30089:'contracting officera minimum of one business days written notification of itsintention to— a change the name in sam; b comply', 30090:'with the requirements of subpart 42.12 of the far; and c agree in writing to the timelineand procedures specified by', 30091:'the responsible contracting officer. the contractor shall provide with thenotification sufficient documentation to supportthe legally changedname. ii if the contractor', 30092:'fails to comply with the requirements of paragraph d1i of this clause, or fails to perform the agreement at paragraph', 30093:'d1ic of this clause, and, in the absence of a properly executed novation or changeofname agreement, the sam information that', 30094:'shows the contractor to be other than the contractor indicated in the contract will be considered to be incorrect information', 30095:'within the meaning of the suspension of payment paragraph of the electronic funds transfer eft clause of this contract. 2', 30096:'the contractor shall not change the name or address for eft payments or manual payments, as appropriate, in samrecordtoreflectanassigneeforthepurposeofassignmentofclaimsseefar subpart', 30097:'32.8, assignment of claims. assigneesshallbe separately registered in the sam. information provided tothe contractor’ssam recordthat indicates payments, including those made', 30098:'by eft,to anultimate recipient other than thatcontractor willbe consideredto beincorrect information within the meaning of the suspension of payment paragraph', 30099:'of the eft clause of this contract. 3 the contractor shall ensure that the unique entity identifier is maintained with', 30100:'the entity designated at www.sam.gov for establishment of the unique entity identifier throughout the life of the contract. the contractor', 30101:'shall communicate any change tothe uniqueentity identifier to the contractingofficer within 30 daysafter the change, soan appropriate modification can be', 30102:'issued to update the data on the contract. a change in the unique entity identifier does not necessarily require a', 30103:'novation be accomplished. e contractors may obtain additional information on registration and annual confirmation requirements at https:// www.sam.gov. end of', 30104:'clause 52.20414 service contract reporting requirements. as prescribed in 4.1705a, insert the following clause: service contract reporting requirementsoct 2016 a', 30105:'definition. firsttier subcontract means a subcontract awarded directly by the contractor for the purpose of acquiring supplies or services including', 30106:'constructionforperformance of a prime contract. it does not include the contractor’s supplier agreements with vendors, such as longterm arrangements for', 30107:'materials or supplies that benefit multiple contracts and/or the costs of which are normally applied to a contractor’sgeneral and administrative', 30108:'expenses or indirect costs. b the contractor shall report, in accordance with paragraphs c and d of this clause, annually', 30109:'by october 31, for services performed under this contract during the preceding government fiscal year october 1september 30. c the', 30110:'contractor shall report the following information: 1 contractnumber and, as applicable, order number. 2 the total dollar amount invoiced for', 30111:'services performed during the previous government fiscal year under the contract. 3 the number of contractor direct labor hours expended', 30112:'on the services performed during the previous government fiscal year. 4 data reported by subcontractors under paragraph f of this', 30113:'clause. d the information required in paragraph c of this clause shall be submitted via the internet at www.sam.gov. see', 30114:'sam user guide. if the contractor fails to submit the report in a timely manner, the contractingofficer will exercise appropriate', 30115:'52.20415 federal acquisition regulation contractualremedies. in addition, the contracting officer will make the contractor’s failure to comply with the reporting', 30116:'requirementsapartofthecontractor’sperformanceinformationunderfar subpart 42.15. e agencies will review contractor reported information for reasonableness and consistency with available contract information. in the', 30117:'event the agency believes that revisions to the contractor reported information are warranted, the agency will notify the contractor no', 30118:'later than november 15. by november 30, the contractor shall revise the report, or document its rationale for theagency. f', 30119:'1 the contractor shall require each firsttier subcontractor providing services under this contract, with subcontracts each valued at or above', 30120:'the thresholds set forth in 4.1703a2, to provide the following detailed information to the contractor insufficient time to submit the', 30121:'report: i subcontract number including subcontractor name and unique entity identifier; and ii the number of firsttier subcontractor directlabor hours', 30122:'expended on the services performed during the previous government fiscal year. 2 the contractor shall advise the subcontractor that the', 30123:'information will be made available to the public as required by section 743 of division c of the consolidated appropriations', 30124:'act, 2010. end of clause 52.20415 service contract reporting requirements for indefinitedelivery contracts. as prescribed in 4.1705b, insert the following', 30125:'clause: service contract reporting requirements for indefinitedelivery contractsoct 2016 a definitions. firsttier subcontract means a subcontract awarded directly by the', 30126:'contractor for the purpose of acquiring supplies or services including constructionforperformance of a prime contract. it does not include the', 30127:'contractor’s supplier agreements with vendors, such as longterm arrangements for materials or supplies that benefit multiple contracts and/or the costs', 30128:'of which are normally applied to a contractor’sgeneral and administrative expenses or indirect costs. b the contractor shall report, in', 30129:'accordance with paragraphs c and d of this clause, annually by october 31, for services performed during the preceding government', 30130:'fiscal year october 1september 30 under this contract for orders that exceed the thresholds established in 4.1703a2. c the contractor', 30131:'shall report the following information: 1 contractnumber and order number. 2 the total dollar amount invoiced for services performed during', 30132:'the previous government fiscal year under the order. 3 the number of contractor direct labor hours expended on the services', 30133:'performed during the previous government fiscal year. 4 data reported by subcontractors under paragraph f of this clause. d the', 30134:'information required in paragraph c of this clause shall be submitted via the internet at www.sam.gov. see sam user guide.', 30135:'if the contractor fails to submit the report in a timely manner, the contracting officer will exerciseappropriate contractualremedies. in addition,', 30136:'the contracting officer will make the contractor’s failure to comply with the reporting requirementsapartofthecontractor’sperformanceinformationunderfar subpart 42.15. e agencies will review', 30137:'contractor reported information for reasonableness and consistency with available contract information. in the event the agency believes that revisions to', 30138:'the contractor reported information are warranted, the agency will notify the contractor no later than november 15. by november 30,', 30139:'the contractor shall revise the report, or document its rationale for theagency. f 1 the contractor shall require each firsttier', 30140:'subcontractor providing services under this contract, with subcontracts each valued at or above the thresholds set forth in 4.1703a2, to', 30141:'provide the following detailed information to the contractor insufficient time to submit the report: i subcontract number including subcontractor name', 30142:'and unique entity identifier, and ii the number of firsttier subcontractor directlabor hours expended on the services performed during the', 30143:'previous government fiscal year. subpart 52.2 text of provisions and clauses 52.20416 2 the contractor shall advise the subcontractor that', 30144:'the information will be made available to the public as required by section 743 of division c of the consolidated', 30145:'appropriations act, 2010. end of clause 52.20416 commercial and government entity code reporting. as prescribed in 4.1804a, use the following', 30146:'provision: commercial and government entity code reporting aug 2020 a definition. as used in this provision – commercial and government', 30147:'entity cage code means– 1 an identifier assigned to entities located in the united states or its outlying areas by', 30148:'the defense logistics agency dla commercial and government entity cage branch to identify a commercial or government entity by unique', 30149:'location; or 2 an identifierassigned by a member of the northatlantic treatyorganization nato or by the nato supportand procurement agency', 30150:'nspa toentitieslocated outside theunited statesandits outlying areas that the dla commercial and government entity cage branch records and maintains in', 30151:'the cage master file. this type of code is known as a natocage ncage code. b the offeror shall provide', 30152:'its cagecodewith its offer with its name and location address or otherwise includeit prominently in its proposal. the cage code', 30153:'must be for that name and location address. insert the word cage before the number. the cage code is required', 30154:'prior to award. c cage codes may be obtained via– 1 registration in the system for award management sam at', 30155:'www.sam.gov.if the offeror is located in the united states or its outlying areas and does not already have a cage', 30156:'code assigned, the dla commercial and government entity cage branch will assign a cage code as a part of the', 30157:'sam registration process. sam registrants located outside the united states and its outlying areas shall obtain a ncage code prior', 30158:'to registration in sam see paragraph c3 of this provision. 2 the dla contractor and government entity cage branch. if', 30159:'registration in sam is not required for the subject procurement,andthe offeror does not otherwise register in sam, an offeror located', 30160:'in the united states orits outlying areas may request that a cage code be assigned by submitting a request at', 30161:'https://cage.dla.mil. 3 the appropriate country codification bureau. entities located outside the united states and its outlying areas may obtain an', 30162:'ncage code by contacting the codification bureau in the foreign entitys country if that country is a member of natoor', 30163:'asponsored nation. ncage codes may be obtained from the nspa at https://eportal.nspa.nato.int/ac135public/ scage/cagelist.aspx if the foreign entity’s country is not', 30164:'a member ofnato or a sponsored nation. pointsof contact for codification bureaus, as well as additional information on obtaining ncage', 30165:'codes, are available at http://www.nato.int/ structur/ac/135/main/links/contacts.htm. d additional guidance for establishing and maintaining cage codes is available at https://cage.dla.mil. e', 30166:'when a cage code is required for the immediate owner and/or the highestlevel owner by federal acquisition regulation far 52.20417', 30167:'or 52.2123p, theofferor shall obtainthe respective cage code fromthat entity to supply the cage code to the government. f do', 30168:'not delay submission of theoffer pending receipt of a cagecode. g if the solicitationincludes far clause 52.2042, security requirements, a', 30169:'subcontractor requiring access to classified information under a contract shall be identified with a cage code on the dd form', 30170:'254. the contractor shall require a subcontractor requiring access to classified information to provide its cage code with its name', 30171:'and location address or otherwise include it prominently in the proposal. each location of subcontractor performance listed on the dd', 30172:'form 254 is required to reflect a corresponding unique cage code for each listed location unless the work is being', 30173:'performed at a government facility, in which case the agency location code shall be used. the cage code must be', 30174:'for that name and location address. insert the word cage before the number. the cage code isrequired priorto award. end', 30175:'of provision 52.20417 federal acquisition regulation 52.20417 ownership or controlof offeror. as prescribed in 4.1804b, use the following provision: ownership', 30176:'or control of offeror aug 2020 a definitions. as used in this provision– commercial and government entity cage code means–', 30177:'1 an identifier assigned to entities located in the united states or its outlying areas by the defense logistics agency', 30178:'dla commercial and government entity cage branch to identify a commercial or government entity by unique location; or 2 an', 30179:'identifierassigned by a member of the northatlantic treatyorganization nato or by the nato supportand procurement agency nspa toentitieslocated outside theunited', 30180:'statesandits outlying areas that the dla commercial and government entity cage branch records and maintains in the cage master file.', 30181:'this type of code is known as a natocage ncage code. highestlevel owner means theentity thatowns orcontrolsan immediate owner of', 30182:'the offeror, or that owns or controls one or more entities that control an immediate owner of the offeror. no', 30183:'entity owns or exercisescontrol of the highest level owner. immediate owner means an entity, other than the offeror, that has', 30184:'direct control of the offeror. indicators of control include, but are not limited to, one or more of the following:', 30185:'ownership or interlocking management, identity of interests among family members, shared facilities and equipment, and the common use of employees.', 30186:'b the offeror represents that it □ has or □ does nothavean immediate owner. ifthe offeror has more than one', 30187:'immediate owner such asa joint venture, then the offerorshallrespond to paragraph c and if applicable, paragraph d of this provision', 30188:'for each participant in the joint venture. c if the offeror indicates has in paragraph b of this provision, enter', 30189:'the following information: immediate owner cage code: immediate owner legal name: do not use a doing business as name is', 30190:'the immediate owner owned or controlled by another entity? : □ yes or □ no. d if the offeror indicates', 30191:'yes in paragraph c of this provision, indicating that the immediate owner is owned or controlled byanother entity, then enter', 30192:'the following information: highestlevel owner cage code: highestlevel owner legal name: do not use a doing business as name end', 30193:'of provision 52.20418 commercial and government entity code maintenance. as prescribed in 4.1804c, use the following clause: commercial and government', 30194:'entity code maintenance aug 2020 a definition. as used in this clause– commercial and government entity cage code means– 1', 30195:'an identifier assigned to entities located in the united states or its outlying areas by the defense logistics agency dla', 30196:'commercial and government entity cage branch to identify a commercial or government entity by unique location; or 2 an identifierassigned', 30197:'by a member of the northatlantic treatyorganization nato or by the nato supportand procurement agency nspa toentitieslocated outside theunited statesandits', 30198:'outlying areas that the dla commercial and government entity cage branch records and maintains in the cage master file. this', 30199:'type of code is known as a natocage ncage code. b contractors shall ensure that the cage code is maintained', 30200:'throughout the life of the contract for each location of contract, including subcontract,performance. for contractors registered in the system for', 30201:'award managementsam, the dla commercial and government entity cage branch shall only modify data received from sam in the cage', 30202:'master subpart 52.2 text of provisions and clauses 52.20420 file if the contractor initiates those changes via update of its', 30203:'sam registration. contractors undergoing a novation or change ofname agreement shall notifythe contracting officer in accordance with subpart 42.12. the', 30204:'contractor shall communicate any change to the cage code to the contracting officer within 30days after the change, so that', 30205:'amodification can be issued to update the cage code on the contract. c contractors located in the united states or', 30206:'its outlying areas that are not registered in sam shall submit written change requests to the dla commercial and government', 30207:'entity cage branch. requests for changes shall be provided at https:// cage.dla.mil. change requests to the cage master file are', 30208:'accepted from the entity identified by the code. d contractors located outside the united states and its outlying areas that', 30209:'are not registered in sam shall contact the appropriate national codification bureau points of contact available at http://www.nato.int/structur/ac/135/main/links/ contacts.htm or', 30210:'nspa at https://eportal.nspa.nato.int/ac135public/scage/cagelist.aspx to request cage changes. e additional guidance for maintaining cage codes is available at https://cage.dla.mil. f if', 30211:'the contract includes federal acquisition regulation clause 52.2042, security requirements, the contractor shall ensure that subcontractors maintain their cage codes', 30212:'throughout the life of the contract. end of clause 52.20419 incorporation byreferenceof representations and certifications. as prescribed in 4.1202b, insert', 30213:'the following clause: incorporation by reference of representations and certifications dec 2014 the contractor’s representationsand certifications, including thosecompleted electronically via', 30214:'the system for award management sam, are incorporated by reference into the contract. end of clause 52.20420 predecessor of offeror.', 30215:'as prescribed in 4.1804d, insert the following provision: predecessor of offeror aug 2020 a definitions. as used in this provision–', 30216:'commercial and government entity cage code means– 1 an identifier assigned to entities located in the united states or its', 30217:'outlying areas by the defense logistics agency dla commercial and government entity cage branch to identify a commercial or government', 30218:'entity by unique location; or 2 an identifierassigned by a member of the northatlantic treatyorganization nato or by the nato', 30219:'supportand procurement agency nspa toentitieslocated outside theunited statesandits outlying areas that the dla commercial and government entity cage branch records', 30220:'and maintains in the cage master file. this type of code is known as a natocage ncage code. predecessor means', 30221:'an entitythat isreplaced by a successor and includes any predecessors of the predecessor. successor means an entity that hasreplaced a', 30222:'predecessor by acquiring the assets and carrying out the affairs of the predecessor under a new name oftenthroughacquisitionor merger. the', 30223:'term successor doesnot includenew offices/ divisions of the same company or a company that only changes its name. the extent', 30224:'of the responsibility of the successor for theliabilities of the predecessormay vary, depending on state law and specific circumstances. b', 30225:'the offeror represents that it □ is or □ is not a successor to a predecessor that held a federal', 30226:'contract or grant within the last three years. c if the offeror has indicated is in paragraphbof this provision, enter', 30227:'the followinginformationforall predecessors that held afederal contract or grant withinthe last threeyears ifmore thanone predecessor, listin reverse chronological order: predecessor', 30228:'cage code: or mark unknown. predecessor legal name: . 52.20421 federal acquisition regulation do not use a doing business as', 30229:'name. end of provision 52.20421 basicsafeguarding of covered contractor information systems. as prescribed in 4.1903, insert the following clause: basic', 30230:'safeguarding of covered contractor information systems nov 2021 a definitions. as used in this clause— covered contractor information system means', 30231:'an information system that is owned or operated by a contractor that processes, stores, or transmits federal contract information. federal', 30232:'contract information means information, not intended for public release, that is provided by or generated for the government under a', 30233:'contract to develop or deliver a product or service to the government, but not including information provided by the government', 30234:'to the public such as on public websites or simple transactional information, such as necessary to process payments. information means', 30235:'any communication or representation of knowledge such as facts, data, or opinions, in any medium or form, including textual, numerical,', 30236:'graphic, cartographic, narrative, or audiovisual committee on national security systems instruction cnssi 4009. information system means a discrete set of', 30237:'information resources organized for the collection, processing, maintenance, use, sharing, dissemination, or disposition of information 44 u.s.c. 3502. safeguarding means', 30238:'measures or controls that are prescribed to protect information systems. b safeguarding requirements and procedures. 1 the contractor shall apply', 30239:'the following basic safeguarding requirements and procedures to protect covered contractor information systems. requirements and procedures for basic safeguarding of', 30240:'covered contractor information systems shall include, at a minimum, the following security controls: i limit information system access to authorized', 30241:'users, processes acting on behalf of authorized users, or devices including other information systems. ii limit information system access to', 30242:'the types of transactions and functions that authorized users are permitted to execute. iii verify and control/limitconnections to and useof', 30243:'external informationsystems. iv control information posted or processed on publicly accessible information systems. v identify information system users, processes acting', 30244:'on behalf of users, or devices. vi authenticate or verify the identities of those users, processes, or devices, as a', 30245:'prerequisite to allowing access to organizational information systems. vii sanitize or destroy information system media containing federal contract information before', 30246:'disposal or release for reuse. viii limit physical accessto organizationalinformationsystems, equipment, and therespective operating environments to authorized individuals. ix escort', 30247:'visitors and monitor visitor activity; maintain audit logs of physical access; and control and manage physical access devices. x monitor,', 30248:'control, and protect organizational communications i.e., information transmitted or received by organizationalinformation systems atthe external boundaries and key internal boundariesof', 30249:'the information systems. xi implement subnetworks for publicly accessible system components that are physically or logically separated from internal networks.', 30250:'xii identify, report, and correctinformationandinformationsystemflaws in a timelymanner. xiii provide protectionfrom malicious code atappropriatelocations within organizational information systems. xiv update', 30251:'malicious code protection mechanisms when new releases are available. xv perform periodic scans of the information system and realtime scans', 30252:'of files from external sources as files are downloaded, opened, or executed. 2 other requirements. this clause does not relieve', 30253:'the contractor of any other specific safeguarding requirements specified by federal agencies and departments relating to covered contractor information systems', 30254:'generally or other federal safeguarding requirements for controlled unclassified information cui as established by executive order 13556. subpart 52.2 text', 30255:'of provisions and clauses 52.20423 c subcontracts. the contractor shall include the substance of this clause, including this paragraph c,', 30256:'in subcontracts under this contract including subcontracts for the acquisition of commercial products or commercial services, other than commercially availableofftheshelf', 30257:'items, in whichthe subcontractor may have federal contractinformation residingin or transiting through its information system. end of clause 52.20422 alternative', 30258:'line item proposal. as prescribed in 4.1008, insert the following provision: alternative line item proposaljan 2017 a thegovernment recognizes that', 30259:'theline items established in thissolicitation may notconformto theofferor’s practices. failure tocorrect these issues can result in difficultiesin acceptance of deliverables', 30260:'and processing payments. therefore, the offeroris invited to propose alternative lineitemsforwhich bids, proposals, orquotes are requested in this solicitation to', 30261:'ensure that the resulting contract is economically and administratively advantageous to the government and the offeror. b the offeror maysubmit', 30262:'one or more additional proposals with alternative line items, provided that alternative line items are consistent with subpart 4.10ofthefederalacquisitionregulation. however,acceptanceofanalternativeproposal', 30263:'is a unilateral decision madesolely at thediscretionof the government. offers that do not comply with the line items specified in', 30264:'this solicitation may be determined to be nonresponsive or unacceptable. end of provision 52.20423 prohibitionon contractingfor hardware, software,and services developedor', 30265:'provided by kaspersky lab covered entities. as prescribed in 4.2004, insert the following clause: prohibition on contracting for hardware, software,', 30266:'and services developed or provided by kaspersky lab covered entities. dec 2023 a definitions. as used in this clause— kaspersky', 30267:'lab covered article means any hardware, software, or service that– 1 is developed or provided by a kaspersky lab covered', 30268:'entity; 2 includes any hardware, software, or service developed or provided in whole or in part by a kaspersky lab', 30269:'covered entity; or 3 contains components using any hardware or software developed in whole or in part by a kaspersky', 30270:'lab covered entity. kaspersky lab covered entity means– 1 kaspersky lab; 2 any successor entity to kaspersky lab, including any', 30271:'change in name, e.g., “kaspersky”; 3 any entity that controls, iscontrolled by,or is under common controlwith kaspersky lab; or 4', 30272:'any entity of which kaspersky lab has a majority ownership. b prohibition.section 1634of divisionaof the national defense authorizationactforfiscal year 2018', 30273:'pub. l. 11591 prohibitsgovernment useof any kaspersky labcovered article. thecontractor is prohibited from— 1 providing any kaspersky lab covered article', 30274:'that the government will use on or after october 1, 2018; and 2 using any kaspersky lab covered article on', 30275:'or after october 1, 2018, in the development of data or deliverables first produced in the performance of the contract.', 30276:'c reporting requirement. 1 in the event the contractoridentifies a kaspersky lab covered article provided to the government during contract', 30277:'performance, or the contractor is notified of such by a subcontractor at any tier or any other source, the contractor', 30278:'shall report,in writing, to the contracting officer or, in the case of thedepartment ofdefense, tothe website at https:// dibnet.dod.mil. for', 30279:'indefinite delivery contracts, the contractor shall report to thecontracting officer for theindefinite 52.20424 federal acquisition regulation delivery contractandthe contracting officersforanyaffected', 30280:'order or, in the case ofthe department of defense, identify both theindefinite delivery contract and any affected orders in the', 30281:'report provided at https://dibnet.dod.mil. 2 the contractor shall report the following information pursuant to paragraph c1 of this clause: iwithin', 30282:'3 business days from thedate of such identification or notification: thecontract number; the order numbers, if applicable;supplier name; brand; model', 30283:'numberoriginalequipment manufacturer oem number, manufacturer part number, or wholesaler number; item description; and any readily available information about mitigation actions', 30284:'undertaken or recommended. iiwithin 10 businessdays of submitting the report pursuant to paragraph c1 of this clause: any furtheravailable information', 30285:'about mitigation actions undertaken or recommended. in addition, the contractor shall describe the efforts it undertook to prevent use or', 30286:'submission of a kaspersky lab covered article, any reasons that led to the use or submission of thekaspersky lab coveredarticle,', 30287:'and any additional effortsthat will be incorporated to prevent future use or submission of kaspersky lab covered articles. d subcontracts.', 30288:'the contractor shall insert the substance of this clause, including this paragraph d, in all subcontracts including subcontracts for the', 30289:'acquisition of commercial products or commercial services. end of clause 52.20424 representation regarding certain telecommunicationsand video surveillance services or equipment.', 30290:'as prescribed in 4.2105a, insert the following provision: representation regarding certain telecommunications and video surveillance services or equipment nov 2021', 30291:'the offeror shall not completethe representation at paragraph d1 of this provision ifthe offeror has representedthat it doesnot provide covered', 30292:'telecommunicationsequipment or services as a part of its offeredproducts or services to the government in the performance of any contract,', 30293:'subcontract, or other contractual instrument in paragraph c1 in the provision at 52.20426, covered telecommunications equipmentor services—representation, or in paragraphv2i', 30294:'of the provision at 52.2123, offerorrepresentations and certificationscommercial products orcommercial services. the offeror shall not completethe representation in paragraph d2', 30295:'of this provision if the offeror has represented that it does not use covered telecommunications equipment or services, or any', 30296:'equipment, system, or service that uses covered telecommunications equipment or services in paragraph c2 of the provision at 52.20426, or', 30297:'in paragraph v2ii of the provision at 52.2123. a definitions. as used in this provision— backhaul, covered telecommunications equipment or', 30298:'services, critical technology, interconnection arrangements, reasonable inquiry, roaming, and substantial or essential component have the meanings provided in the clause', 30299:'52.20425, prohibition on contracting for certain telecommunicationsandvideo surveillance servicesor equipment. b prohibition. 1 section 889a1a of the john s. mccain', 30300:'national defense authorization act for fiscal year 2019 pub. l. 115232 prohibitsthe head of an executive agency on or after', 30301:'august 13, 2019,from procuring or obtaining, or extending or renewing a contract to procure or obtain, any equipment, system, or', 30302:'service that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical', 30303:'technology as part of any system. nothing in the prohibition shall be construed to— i prohibit the head of an', 30304:'executive agency from procuring with an entity to provide a service that connects to the facilities ofa thirdparty, such as', 30305:'backhaul,roaming, or interconnectionarrangements; or iicover telecommunications equipment that cannotrouteor redirect user data traffic orcannot permit visibility into any user data', 30306:'or packets that such equipment transmits or otherwise handles. 2 section889a1b of the john s. mccain national defense authorization act', 30307:'for fiscal year 2019pub. l. 115232 prohibits the head of an executive agency on or after august 13, 2020, from', 30308:'enteringinto acontract or extending or renewing a contract with an entity that uses any equipment, system, or service that uses', 30309:'covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part', 30310:'of any system. this prohibition applies to the use of covered telecommunications equipment or services, regardless of whether that use', 30311:'is in performance of work under a federal contract. nothing in the prohibition shall be construed to— i prohibit the', 30312:'head of an executive agency from procuring with an entity to provide a service that connects to the facilities ofa', 30313:'thirdparty, such as backhaul,roaming, or interconnectionarrangements; or subpart 52.2 text of provisions and clauses 52.20425 iicover telecommunications equipment that cannotrouteor', 30314:'redirect user data traffic orcannot permit visibility into any user data or packets that such equipment transmits or otherwise handles.', 30315:'c procedures. the offeror shall review the list ofexcluded partiesin the system for awardmanagement sam https:// www.sam.gov for entities excluded', 30316:'from receiving federal awards for covered telecommunications equipment or services. d representation. the offeror represents that— 1 it □ will,', 30317:'□ will not provide covered telecommunications equipment or services to the government in the performanceof any contract,subcontract or other contractual', 30318:'instrument resulting from this solicitation. the offerorshall provide the additionaldisclosure information required at paragraph e1 of this section if the', 30319:'offeror responds will in paragraph d1 of this section; and 2 afterconducting a reasonable inquiry, for purposes of this representation,', 30320:'the offeror represents that— it □ does, □ does not use covered telecommunications equipment or services, or use any equipment,', 30321:'system, or service that uses covered telecommunications equipmentor services. the offeror shall provide the additional disclosure information required at paragraph', 30322:'e2 ofthis section if the offerorresponds does inparagraph d2of this section. e disclosures. 1 disclosure for the representation in paragraph', 30323:'d1 of thisprovision. if the offeror hasresponded will in the representation in paragraph d1 ofthisprovision, the offerorshallprovide the following information', 30324:'as part of theoffer: i for covered equipment— a the entity that produced the covered telecommunications equipment include entity name,', 30325:'unique entity identifier, cage code, and whether the entity was theoriginal equipmentmanufacturer oemor adistributor, if known; b a description of', 30326:'all covered telecommunications equipmentoffered include brand; model number, suchas oem number, manufacturer partnumber, orwholesaler number; and item description, as applicable;', 30327:'and c explanation of the proposed use of covered telecommunications equipment and any factors relevant to determining if such use', 30328:'would be permissible under the prohibition in paragraph b1 of this provision. ii for covered services— a if the service', 30329:'is related to item maintenance: a description of all covered telecommunications services offered include onthe item beingmaintained: brand; modelnumber, such', 30330:'as oem number, manufacturer partnumber, or wholesaler number; and item description, as applicable; or b if not associated with maintenance,', 30331:'the product service code psc of the service being provided; and explanation of the proposed use of covered telecommunications services', 30332:'and any factors relevant to determining if such use would be permissible under the prohibition in paragraph b1 of this', 30333:'provision. 2 disclosure for therepresentation in paragraph d2 ofthis provision. if the offeror has responded does in the representation in', 30334:'paragraph d2 of this provision,the offeror shall provide the followinginformationas part of the offer: i for covered equipment— a the', 30335:'entity that produced the covered telecommunications equipment include entity name, unique entity identifier, cage code, and whether the entity was', 30336:'theoem or a distributor, if known; b a description of all covered telecommunications equipmentoffered include brand; model number, suchas oem', 30337:'number, manufacturer partnumber, orwholesaler number; and item description, as applicable; and c explanation of the proposed use of covered telecommunications', 30338:'equipment and any factors relevant to determining if such use would be permissible under the prohibition in paragraph b2 of', 30339:'this provision. ii for covered services— a if the service is related to item maintenance: a description of all covered', 30340:'telecommunications services offered include onthe item beingmaintained: brand; modelnumber, such as oem number, manufacturer partnumber, or wholesaler number; and item', 30341:'description, as applicable; or b if not associated with maintenance, the psc of the service being provided; and explanation of', 30342:'the proposed use of covered telecommunications services and any factors relevant to determining if such use would be permissible under', 30343:'the prohibition in paragraph b2 of this provision. end of provision 52.20425 prohibitionon contractingfor certain telecommunications and video surveillance services', 30344:'orequipment. as prescribed in 4.2105b, insert the following clause: 52.20425 federal acquisition regulation prohibition on contracting for certain telecommunications and', 30345:'video surveillance services or equipment nov 2021 a definitions. as used in this clause— backhaul means intermediate links between the', 30346:'core network, or backbone network, and the small subnetworks at the edge of the network e.g., connecting cell phones/towers to', 30347:'the core telephone network. backhaul can be wireless e.g., microwave or wired e.g., fiber optic, coaxial cable, ethernet. covered foreign', 30348:'country means the people’s republic ofchina. covered telecommunications equipment or services means– 1 telecommunications equipment produced by huawei technologies company', 30349:'orzte corporation or any subsidiary oraffiliate of such entities; 2 for the purpose of public safety, security ofgovernment facilities, physical', 30350:'security surveillance of critical infrastructure, and other national security purposes, video surveillance and telecommunications equipment produced by hytera communications corporation,', 30351:'hangzhou hikvision digitaltechnology company,or dahua technology company or any subsidiary oraffiliateof such entities; 3 telecommunications or video surveillance services provided', 30352:'by such entities or using such equipment; or 4 telecommunications or video surveillance equipment or servicesproduced orprovidedby an entity that', 30353:'the secretary of defense, in consultation with the director of national intelligence or the director of the federal bureau of', 30354:'investigation, reasonably believes to be an entity owned or controlled by, orotherwise connected to, the government of a covered foreign', 30355:'country. critical technology means– 1 defense articles or defense services included on the united states munitions list set forth in', 30356:'the international trafficin arms regulationsunder subchapterm of chapter i of title 22, code of federalregulations; 2 items included on the', 30357:'commerce control list set forth in supplement no. 1 to part 774 of the export administration regulations under subchapter c', 30358:'of chapter vii of title 15, code of federal regulations, and controlled ipursuant to multilateral regimes, including for reasons relating', 30359:'to national security, chemical and biological weapons proliferation, nuclear nonproliferation, or missile technology; or ii for reasons relating to regional', 30360:'stability or surreptitious listening; 3 specially designed and prepared nuclear equipment, parts and components, materials, software, and technology covered bypart', 30361:'810 of title 10, codeof federal regulations relatingto assistance to foreignatomic energy activities; 4 nuclear facilities, equipment, andmaterial covered by', 30362:'part110 oftitle 10, code offederal regulations relating to export and import of nuclear equipment and material; 5 select agents and', 30363:'toxins covered by part 331 of title 7, code of federal regulations, part 121 of title 9 of such code,', 30364:'or part 73 of title 42 of such code; or 6 emerging and foundationaltechnologies controlled pursuant to section 1758 of', 30365:'theexport control reform act of 2018 50 u.s.c. 4817. interconnection arrangements means arrangements governing the physical connection of two or', 30366:'more networks to allow theuse of anothersnetwork to hand off traffic where it is ultimatelydelivered e.g., connection of a customer', 30367:'of telephone provider a to a customer of telephone company b or sharing data and other information resources. reasonable inquiry', 30368:'means an inquiry designed to uncover any information in the entitys possession about the identity of the producer or provider', 30369:'of covered telecommunications equipment or services used by the entity that excludes the need to include an internal or thirdparty', 30370:'audit. roaming means cellular communications services e.g., voice, video, data received from a visited network when unable to connect to', 30371:'the facilities of the homenetwork eitherbecause signalcoverage is too weak or because traffic is toohigh. substantial or essential component means', 30372:'any component necessary for the proper function or performance of a piece of equipment, system, or service. b prohibition. 1', 30373:'section 889a1a of the john s. mccain national defense authorization act for fiscal year 2019 pub. l. 115232 prohibitsthe head', 30374:'of an executive agency on or after august 13, 2019,from procuring or obtaining, or extending or renewing a contract to', 30375:'procure or obtain, any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential', 30376:'component of any system, or as critical technology as part of any system. the contractor is prohibited from providing to', 30377:'the government any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component', 30378:'of any system, or subpart 52.2 text of provisions and clauses 52.20426 as critical technology as part of any system,', 30379:'unless an exception at paragraph c of this clause applies or the covered telecommunication equipment or services arecovered by a', 30380:'waiver described infar 4.2104. 2 section889a1b of the john s. mccain national defense authorization act for fiscal year 2019pub. l.', 30381:'115232 prohibits the head of an executive agency on or after august 13, 2020, from enteringinto acontract, orextending or renewing', 30382:'a contract, with an entity that uses any equipment, system, or service that uses covered telecommunications equipment or services as', 30383:'a substantial or essential component of any system, or as critical technology as part of any system, unless an exception', 30384:'at paragraph c of this clause applies or the covered telecommunication equipment or services are covered bya waiver describedin far', 30385:'4.2104. this prohibition applies to the use of covered telecommunications equipment or services, regardless of whether that use is in', 30386:'performance of work under a federal contract. c exceptions. this clause does not prohibit contractors from providing— 1 a servicethat', 30387:'connects to the facilitiesof athirdparty, such asbackhaul, roaming, or interconnection arrangements; or 2 telecommunications equipment that cannot route or redirect', 30388:'user data traffic or permit visibilityinto any userdata or packets that such equipment transmits or otherwise handles. d reporting requirement.', 30389:'1 in the event the contractor identifies covered telecommunications equipment or services used as a substantial or essential component of', 30390:'any system, or as critical technology as part of any system, during contract performance, or the contractor is notified of', 30391:'such by a subcontractor at any tier or by any other source, the contractor shall report the information in paragraphd2', 30392:'of this clause to the contracting officer, unless elsewhere in this contract are established procedures for reporting the information; in', 30393:'the case of the department of defense, the contractor shall report to the website at https://dibnet.dod.mil. forindefinite delivery contracts, thecontractor', 30394:'shall report tothe contracting officer for theindefinite delivery contract and the contracting officers for any affected order or, in thecaseof', 30395:'the department of defense,identify both the indefinite delivery contract and any affected orders in the report provided at https://dibnet.dod.mil. 2', 30396:'the contractor shall report the following information pursuant to paragraph d1 of this clause iwithin one business day from the', 30397:'date of such identification ornotification: the contractnumber; the order numbers, if applicable; supplier name; supplier unique entity identifier if known;', 30398:'supplier commercial and government entity cage code if known; brand; model number originalequipment manufacturer number, manufacturer part number, or wholesaler', 30399:'number; item description; and any readily available information about mitigation actions undertaken or recommended. iiwithin 10 businessdays of submitting the', 30400:'information in paragraph d2i of this clause: any further available information about mitigation actions undertaken or recommended. in addition, the', 30401:'contractor shall describe the efforts it undertook to prevent useor submissionof covered telecommunications equipment or services, andanyadditional efforts that will', 30402:'be incorporated to prevent future use or submission of covered telecommunications equipment or services. e subcontracts. the contractor shall insert', 30403:'the substance of this clause, including this paragraph e and excluding paragraph b2, in all subcontracts and other contractual instruments,', 30404:'including subcontracts for the acquisition of commercial products or commercial services. end of clause 52.20426 covered telecommunications equipmentor servicesrepresentation. as', 30405:'prescribed in 4.2105c, insert the following provision: covered telecommunications equipment or servicesrepresentation oct 2020 a definitions. as used in this', 30406:'provision, covered telecommunications equipment or services and reasonable inquiry have the meaning provided in the clause 52.20425, prohibition oncontracting for', 30407:'certain telecommunications and video surveillance services or equipment. b procedures. the offeror shall review thelist of excluded parties in the', 30408:'system for award management sam https:// www.sam.gov for entities excluded from receiving federal awards for covered telecommunications equipment or services.', 30409:'c 1 representation. the offeror represents that it □ does, □ does not provide covered telecommunications equipment or services as', 30410:'a part of its offered productsor services to the government in the performance of any contract, subcontract, or other contractual', 30411:'instrument. 52.20427 federal acquisition regulation 2 afterconducting a reasonable inquiry for purposes ofthis representation, the offeror represents that it □', 30412:'does, □ does not use covered telecommunications equipment or services, or any equipment, system, or service that uses covered telecommunications', 30413:'equipment or services. end of provision 52.20427 prohibitionon a bytedancecoveredapplication. as prescribed in 4.2203, insert the following clause: prohibition on', 30414:'a bytedance covered application jun 2023 a definitions. as used in this clause— covered application means the social networking servicetiktok', 30415:'or any successor application orservice developed or provided by bytedance limited or an entity owned by bytedance limited. information technology,', 30416:'as defined in 40 u.s.c. 111016— 1 means any equipment or interconnected system or subsystem of equipment, used in the', 30417:'automatic acquisition, storage, analysis, evaluation, manipulation, management, movement, control, display,switching, interchange, transmission, or reception of dataor information by the executive', 30418:'agency, if the equipmentis used bythe executive agency directly oris used by a contractor under a contract with the executive', 30419:'agency that requires the use— i of that equipment; or ii of that equipment to a significant extent in the', 30420:'performance of a service or the furnishing of a product; 2 includes computers, ancillary equipment including imaging peripherals, input, output,', 30421:'and storage devices necessary for security and surveillance, peripheral equipment designed to be controlled by the central processing unit of', 30422:'a computer, software, firmware and similar procedures, services including support services, and relatedresources; but 3 does not include any equipment', 30423:'acquired by a federal contractor incidental to a federal contract. b prohibition.section 102 of division r of the consolidated appropriations', 30424:'act, 2023pub. l. 117328, the no tiktok on government devices act, and itsimplementing guidance underoffice of management and budgetomb memorandum', 30425:'m2313, dated february 27, 2023, “no tiktok on government devices” implementation guidance, collectively prohibitthe presence or use of a covered', 30426:'application on executive agency information technology, including certain equipment used by federal contractors. the contractor is prohibited from having or', 30427:'using a covered application on any information technology owned or managed by the government, or on any information technology used', 30428:'or provided by thecontractor under this contract, including equipment provided by the contractor’s employees; however, this prohibition doesnot apply if', 30429:'the contracting officer provides writtennotification to the contractor thatan exception has been granted in accordance with omb memorandum m2313. c', 30430:'subcontracts. the contractor shall insert the substance of this clause, including this paragraph c, in all subcontracts, including subcontracts for', 30431:'the acquisition of commercial products or commercial services. end of provision 52.20428 federal acquisition supply chain security act orders—federal supply', 30432:'schedules, governmentwide acquisition contracts, and multiagency contracts. as prescribed in 4.2306a, insert the following clause: federal acquisition supply chain security', 30433:'act orders—federal supply schedules, governmentwide acquisition contracts, and multiagency contracts dec 2023 a definitions. as used in this clause— covered', 30434:'article as defined in 41 u.s.c. 4713k, means— 1 information technology, as defined in 40 u.s.c. 11101, including cloud computing', 30435:'services of all types; 2 telecommunications equipment or telecommunications service, as those termsare definedin section 3 of the communications act', 30436:'of 1934 47 u.s.c. 153; 3 the processing of information on a federal or nonfederal information system, subject to the', 30437:'requirements of the controlled unclassified information program see 32 cfr part 2002; or subpart 52.2 text of provisions and clauses', 30438:'52.20428 4 hardware, systems, devices,software, or services that includeembeddedor incidental informationtechnology. fascsa order, means any of the following orders issued', 30439:'under the federal acquisition supply chain security act fascsa requiring the removal ofcovered articles fromexecutive agency information systems orthe exclusion', 30440:'of one or more named sources or named covered articles from executive agency procurement actions, as described in 41 cfr', 30441:'201– 1.303d and e: 1 the secretary of homeland securitymay issue fascsaordersapplicable to civilian agencies, to theextent not covered by', 30442:'paragraph2or 3 of this definition. this typeof fascsa order may be referred to as a department of homeland security dhs', 30443:'fascsaorder. 2 the secretary of defense may issue fascsa orders applicable tothe department of defense dod and national security systems', 30444:'other than sensitive compartmented informationsystems. this type of fascsa order may be referred to as a dod fascsa order. 3', 30445:'the directorof national intelligence dni may issue fascsa orders applicable tothe intelligence community and sensitive compartmented information systems, to the', 30446:'extent not covered by paragraph 2 of this definition. this type of fascsaorder may be referred toas adni fascsa order.', 30447:'intelligence community, as defined by 50 u.s.c. 30034, means the following— 1 the office ofthe director of national intelligence; 2', 30448:'the central intelligence agency; 3 the national security agency; 4 the defense intelligence agency; 5 the national geospatialintelligence agency; 6', 30449:'the national reconnaissance office; 7 otheroffices within the department of defense for thecollection of specialized national intelligence through reconnaissance programs;', 30450:'8 the intelligence elements of thearmy, the navy,the air force, themarine corps,the coast guard, the federal bureau ofinvestigation, the drugenforcement', 30451:'administration, and thedepartment ofenergy 9 the bureau of intelligence and research of the department of state; 10 the office of', 30452:'intelligence and analysis of the departmentof the treasury; 11 the office of intelligence and analysis of the departmentof homeland security;', 30453:'or 12 such other elements of any department or agency as may be designated by the president, or designated jointly', 30454:'by the director of national intelligence and the head of the department or agency concerned, as an element of the', 30455:'intelligence community. national security system, as defined in 44 u.s.c. 3552, means any information system including any telecommunications system used', 30456:'or operated by an agency orby a contractor of an agency, or otherorganization on behalf of an agency— 1 the', 30457:'function, operation, or use of which involves intelligence activities; involves cryptologic activities related to national security; involves command and control', 30458:'of military forces; involves equipment that is an integral part of a weapon or weapons system; or is critical to', 30459:'the direct fulfillment of military or intelligence missions, but does not include a system that is to be used for', 30460:'routine administrative and business applications including payroll, finance, logistics, and personnel management applications; or 2 is protected at all times', 30461:'by procedures established for information that have been specifically authorized under criteria established by an executive order or an act', 30462:'of congress to be kept classified in the interest of national defense or foreign policy sensitive compartmented information means classified', 30463:'information concerning or derived from intelligence sources, methods, or analytical processes, which is required to be handled within formal access', 30464:'control systems established by the director of national intelligence. sensitive compartmented information system means a national security system authorized to', 30465:'process or store sensitive compartmented information. source meansa nonfederalsupplier, or potential supplier, of products or services, at any tier. b', 30466:'notice. during contract performance, the contractor shall be required to comply with any of the following that apply: dhsfascsa orders,', 30467:'dod fascsa orders, or dni fascsa orders. the applicablefascsa orderswill be identified in the request for quotation see 8.4052, or', 30468:'in the notice of intent to place an order see 16.505b. fascsa orders will be identified in paragraph b1 offar', 30469:'52.20430, federal acquisition supply chain security act orders—prohibition, with its alternate ii. 52.20429 federal acquisition regulation c removal. upon notification', 30470:'fromthe contracting officer, during the performance ofthe contract, the contractor shall promptly make any necessary changes or modifications to remove', 30471:'any covered article or any product or service produced or provided by a source that is subjectto anapplicable governmentwide fascsa', 30472:'order see far 4.2303b. end of clause 52.20429 federal acquisition supplychain security act orders—representationand disclosures. as prescribed in 4.2306b, insert', 30473:'the following provision: federal acquisition supply chain security act orders—representation and disclosures dec 2023 a definitions. as used in this', 30474:'provision, covered article, fascsa order, intelligence community, national security system, reasonable inquiry, sensitive compartmented information, sensitive compartmented information system, and', 30475:'source have the meaning provided in the clause 52.20430, federal acquisition supply chain security act orders—prohibition. b prohibition. contractors are', 30476:'prohibited from providing or using as part of the performance of the contract any covered article, or any products or', 30477:'services produced or provided by a source, if the prohibition is set out in an applicable federal acquisition supply chain', 30478:'security act fascsa order, asdescribed in paragraph b1 of far 52.20430, federal acquisition supply chain security act orders—prohibition. c procedures.', 30479:'1theofferorshallsearchforthephrase “fascsaorder” inthesystemforawardmanagement sam https://www.sam.gov for any covered article, or any products or services produced or provided by a source,', 30480:'if there is an applicablefascsa order describedin paragraph b1 of far 52.20430, federal acquisition supply chain security act orders—prohibition. 2', 30481:'the offeror shall review the solicitation for any fascsa orders that are not in sam,but are effectiveanddo apply to the', 30482:'solicitation and resultant contract see far 4.2303c2. 3 fascsaordersissuedafter the date of solicitationdo not apply unless addedby an amendment to', 30483:'the solicitation. d representation. by submission ofthis offer, the offeror represents that it has conducted a reasonable inquiry,and that theofferor', 30484:'does not proposeto provide oruse in response to this solicitationanycovered article, orany products orservices produced or provided by a source,', 30485:'ifthe covered article or the source is prohibited byan applicable fascsa order in effect on the date the solicitation was', 30486:'issued, except as waived by the solicitation, or as disclosed in paragraph e. e disclosures. the purpose for this disclosure', 30487:'is so the government may decide whether to issue a waiver. for any covered article, or any products or services', 30488:'produced or provided by a source, if the covered article or the source is subject to anapplicable fascsa order, and', 30489:'the offeroris unableto represent compliance, thenthe offeror shall provide the following information as part of the offer: 1 name of', 30490:'the product or service provided to the government; 2 name of the covered article orsource subject to a fascsa order;', 30491:'3 if applicable, name of the vendor,including the commercialandgovernment entity code and uniqueentity identifier if known,that supplied the covered articleor', 30492:'the productor service to the offeror; 4 brand; 5 model numberoriginal equipment manufacturer number, manufacturer partnumber, orwholesaler number; 6 item', 30493:'description; 7 reason why the applicable covered article or the product or service is being provided or used; f executive', 30494:'agency review of disclosures. the contracting officer will review disclosures provided in paragraphe to determine if any waiver may be', 30495:'sought. a contracting officermay choose not to pursuea waiver for covered articles or sources otherwise subject to a fascsaorder and', 30496:'may instead make anaward to an offeror that does not require a waiver. end of provision 52.20430 federal acquisition supplychain', 30497:'security act orders—prohibition. as prescribed in 4.2306c, insert the following clause: federal acquisition supply chain security act orders—prohibition dec 2023', 30498:'a definitions. as used in this clause— subpart 52.2 text of provisions and clauses 52.20430 covered article, as defined in', 30499:'41 u.s.c. 4713k, means— 1 information technology, as defined in 40 u.s.c. 11101, including cloud computing services of all types;', 30500:'2 telecommunications equipment or telecommunications service, as those termsare definedin section 3 of the communications act of 1934 47 u.s.c.', 30501:'153; 3 the processing of information on a federal or nonfederal information system, subject to the requirements of the controlled', 30502:'unclassified information program see 32 cfr part 2002; or 4 hardware, systems, devices,software, or services that includeembeddedor incidental informationtechnology. fascsa', 30503:'order means any of the following orders issued under the federal acquisition supply chain security act fascsa requiring the removal', 30504:'ofcovered articles fromexecutive agency information systems orthe exclusion of one or more named sources or named covered articles from executive', 30505:'agency procurement actions, as described in 41 cfr 201– 1.303d and e: 1 the secretary of homeland securitymay issue fascsaordersapplicable', 30506:'to civilian agencies, to theextent not covered by paragraph2or 3 of this definition. this typeof fascsa order may be referred', 30507:'to as a department of homeland security dhs fascsaorder. 2 the secretary of defense may issue fascsa orders applicable tothe', 30508:'department of defense dod and national security systems other than sensitive compartmented informationsystems. this type of fascsa order may be', 30509:'referred to as a dod fascsa order. 3 the directorof national intelligence dni may issue fascsa orders applicable tothe intelligence', 30510:'community and sensitive compartmented information systems, to the extent not covered by paragraph 2 of this definition. this type of', 30511:'fascsaorder may be referred toas adni fascsa order. intelligence community, as defined by 50 u.s.c. 30034, means the following— 1', 30512:'the office ofthe director of national intelligence; 2 the central intelligence agency; 3 the national security agency; 4 the defense', 30513:'intelligence agency; 5 the national geospatialintelligence agency; 6 the national reconnaissance office; 7 otheroffices within the department of defense for', 30514:'thecollection of specialized national intelligence through reconnaissance programs; 8 the intelligence elements of thearmy, the navy,the air force, themarine corps,the', 30515:'coast guard, the federal bureau ofinvestigation, the drugenforcement administration, and thedepartment ofenergy; 9 the bureau of intelligence and research of', 30516:'the department of state; 10 the office of intelligence and analysis of the departmentof the treasury; 11 the office of', 30517:'intelligence and analysis of the departmentof homeland security; or 12 such other elements of any department or agency as may', 30518:'be designated by the president, or designated jointly by the director of national intelligence and the head of the department', 30519:'or agency concerned, as an element of the intelligence community. national security system, as defined in 44 u.s.c. 3552, means', 30520:'any information system including any telecommunications system used or operated by an agency orby a contractor of an agency, or', 30521:'otherorganization on behalf of an agency— 1 the function, operation, or use of which involves intelligence activities; involves cryptologic activities', 30522:'related to national security; involves command and control of military forces; involves equipment that is an integral part of a', 30523:'weapon or weapons system; or is critical to the direct fulfillment of military or intelligence missions, but does not include', 30524:'a system that is to be used for routine administrative and business applications including payroll, finance, logistics, and personnel management', 30525:'applications; or 2 is protected at all times by procedures established for information that have been specifically authorized under criteria', 30526:'established by an executive order or an act of congress to be kept classified in the interest of national defense', 30527:'or foreign policy. reasonable inquiry means an inquiry designed to uncover any information in the entitys possession about the identity', 30528:'of any covered articles, or any products or services produced or provided by a source. this applies when the covered', 30529:'article or thesource is subject to an applicable fascsa order. a reasonableinquiry excludes theneedto include an internal orthirdparty audit. 52.20430', 30530:'federal acquisition regulation sensitive compartmented information means classified information concerning or derived from intelligence sources, methods, or analytical processes, which', 30531:'is required to be handled within formal access control systems established by the director of national intelligence. sensitive compartmented information', 30532:'system means a national security system authorized to process or store sensitive compartmented information. source meansa nonfederalsupplier, or potential supplier,', 30533:'of products or services, at any tier. b prohibition. 1 unless an applicable waiver has been issued by the issuing', 30534:'official, contractors shall not provide or use as part of the performance of the contract any covered article, or any', 30535:'products or services produced or provided by a source, if the coveredarticle or the source is prohibitedby an applicable fascsa', 30536:'orders asfollows: ifor solicitations and contracts awarded by a department of defense contracting office, dod fascsaorders apply. iifor all other', 30537:'solicitations and contracts dhs fascsa orders apply. 2 the contractor shall searchforthe phrase “fascsa order” in the system for award', 30538:'managementsamat https://www.sam.gov to locate applicable fascsa orders identified in paragraph b1. 3 the government mayidentify in the solicitation additional fascsa', 30539:'orders that are not in sam, whichare effective and apply to the solicitation and resultant contract. 4 a fascsaorder issued', 30540:'after the date ofsolicitation applies to this contract only if addedby an amendment to the solicitation or modification to the', 30541:'contract see far 4.2304c. however, see paragraph c of thisclause. 5 iifthecontractorwishestoaskforawaiveroftherequirementsofanewfascsaorderbeingappliedthrough modification, then the contractor shall disclose the following:', 30542:'a name of the product or service provided to the government; b nameof the coveredarticle or sourcesubject to afascsa order;', 30543:'c if applicable, name of the vendor, including the commercial and governmententity code and unique entity identifier if known,that supplied', 30544:'or supplies the covered articleor the productor service to the offeror; d brand; e modelnumber original equipmentmanufacturer number, manufacturer part', 30545:'number, or wholesaler number; f item description; g reason why the applicable covered article or the product or service is', 30546:'being provided or used; ii executive agency review of disclosures. the contracting officer willreview disclosures providedin paragraph b 5i to', 30547:'determine ifanywaiver is warranted. a contracting officer may choose not to pursue a waiver for coveredarticlesor sources otherwise coveredby a', 30548:'fascsa orderandto instead pursue otherappropriateaction. c notice and reporting requirement. 1 during contract performance, the contractor shall review sam.gov at', 30549:'least once every three months, or as advisedby the contracting officer, to check for covered articles subjectto fascsa orders, or', 30550:'for products or services produced by asource subject to fascsa orders not currentlyidentified under paragraphbof this clause. 2 if the', 30551:'contractor identifies a newfascsa ordersthat could impact theirsupplychain,then the contractor shall conduct a reasonable inquiry to identify whether a covered', 30552:'article or product or service produced or provided by a source subject to the fascsa orders was provided tothe government', 30553:'or used during contract performance. 3 ithecontractorshallsubmitareporttothecontractingofficeasidentifiedinparagraphc3iiofthisclause,if thecontractor identifies, including through any notification by asubcontractorat anytier, that a covered article', 30554:'or product or service produced or provided by a source was provided to the government or used during contract performance', 30555:'and is subject to a fascsa orders identified in paragraphbof this clause, or a new fascsaorder identified in paragraph c2of', 30556:'this clause. for indefinite deliverycontracts, the contractor shall report to both the contracting office for the indefinitedelivery contract and thecontracting', 30557:'office for any affectedorder. iiif a report is required tobe submitted to a contracting office underc3iof this clause,the contractor shall', 30558:'submit the report as follows: aif a department of defense contractingoffice, the contractor shall report to the website at https://', 30559:'dibnet.dod.mil. b forall other contractingoffices, the contractorshallreport to the contracting officer. 4 the contractor shall report the following information for', 30560:'each covered article or each product or service produced or provided by a source, where the covered article or source', 30561:'issubject to afascsa order, pursuant to paragraph c3i of this clause: iwithin 3 business days from thedate of such identification', 30562:'or notification: subpart 52.2 text of provisions and clauses 52.20430 a contract number; b order numbers, if applicable; c name', 30563:'of the product or service provided to the government or used during performance of the contract; dname of the covered', 30564:'article or source subject to a fascsa order; e ifapplicable, name ofthe vendor, including thecommercial and government entity code and', 30565:'unique entity identifier if known, that supplied the covered article or the product or service to the contractor; f brand;', 30566:'gmodel number originalequipment manufacturer number, manufacturer part number, or wholesaler number; h item description; and i any readily available information', 30567:'about mitigation actions undertaken or recommended. iiwithin 10 businessdays of submitting the information in paragraph c4i of this clause: a', 30568:'any further available information about mitigation actions undertaken or recommended. b in addition, the contractor shall describe the efforts it', 30569:'undertook toprevent submission or use of thecovered article or the product or service produced or provided bya source subject toan', 30570:'applicable fascsa order, and anyadditional efforts that willbe incorporatedto prevent future submission or use of the covered article or theproduct', 30571:'or serviceproduced or provided by a source that is subject to an applicablefascsa order. d removal. for federal supply schedules,', 30572:'governmentwide acquisition contracts, multiagency contracts or any other procurement instrumentintended for use by multiple agencies, upon notification from the contractingofficer,', 30573:'during the performance of the contract, the contractor shall promptly make any necessary changes or modifications to remove any product', 30574:'orservice produced or provided by a source that is subjectto anapplicable fascsa order. e subcontracts. 1 the contractor shall insert', 30575:'the substance of this clause, including this paragraph e and excluding paragraph c1 of this clause, in all subcontracts and', 30576:'other contractual instruments, including subcontracts for the acquisition of commercial products and commercial services. 2 the government mayidentify in the', 30577:'solicitation additional fascsa orders that are not in sam, whichare effective and apply to the contract and any subcontracts and', 30578:'other contractual instruments under the contract. the contractor or higher tier subcontractor shall notifytheir subcontractors, and suppliers under other contractualinstruments,', 30579:'that the fascsa orders in the solicitation that are not in sam apply to the contract and all subcontracts. end', 30580:'of clause alternate i dec 2023. as prescribed in 4.2306c, substitute the following paragraph b1 for paragraph b1 of the', 30581:'basic clause: b prohibition. 1 contractors are prohibited from providing or using as part of the performance of the contract', 30582:'any covered article, or any products or services produced or provided by a source, if the covered article or the', 30583:'source is prohibited by any applicable fascsaordersidentified bythe checkboxes in this paragraph b1. [ contracting officer must select either “yes”', 30584:'or “no” for each of the following types of fascsa orders:] yes □ no □ dhsfascsa order yes □ no', 30585:'□ dod fascsa order yes □ no □ dni fascsaorder alternate ii dec 2023. as prescribed in 4.2306c2ii, substitute the', 30586:'following paragraph b in place of paragraph b of the basic clause. this clause applies to each order as identified', 30587:'by the contracting officer. b prohibition. 1 contractors are prohibited from providing or using as part of the performance of', 30588:'the contract any covered article, or any products or services produced or provided by a source, if the covered article', 30589:'or the source is prohibited by any applicable fascsaordersidentified bythe checkboxes in this paragraph b1. [ contracting officer must select', 30590:'either “yes” or “no” for each of the following types of fascsa orders:] yes □ no □ dhsfascsa order yes', 30591:'□ no □ dod fascsa order yes □ no □ dni fascsaorder 2 the contractor shall searchforthe phrase “fascsa order”', 30592:'in the system for award managementsamat https://www.sam.gov to locate applicable fascsa orders identified in paragraph b1of this clause. 3 the', 30593:'government may identify in the request for quotation rfq or in the notice of intent to place an order additional', 30594:'fascsa orders that are notin sam, butare effective and apply to the order. federal acquisition regulation 4 a fascsaorder issued', 30595:'after the date ofthe rfq or the notice of intent to place an order applies tothiscontract only if added by', 30596:'an amendment to the rfq or in the notice of intent to place an order or added by modification to', 30597:'the order see far 4.2304c. however, see paragraph c ofthisclause. 5i if thecontractor wishes to ask for a waiver, the', 30598:'contractorshalldisclosethe following: a name of the product or service provided to the government; b nameof the coveredarticle or sourcesubject to', 30599:'afascsa order; c if applicable, name of the vendor, including the commercial and governmententity code and unique entity identifier if', 30600:'known,that supplied the covered articleor the productor service to the offeror; d brand; e modelnumber original equipmentmanufacturer number, manufacturer part', 30601:'number, or wholesaler number; f item description; g reason why the applicable covered article or the product or service is', 30602:'being provided or used; ii executive agency review of disclosures. the contracting officer willreview disclosures providedin paragraph b 5i of', 30603:'this clause to determine ifany waiver may besought. a contracting officer may choose not to pursue awaiver for covered articles', 30604:'or sources otherwise covered by a fascsaorder and may instead make award to an offeror that does not require a', 30605:'waiver. 52.205[reserved] 52.206[reserved] subpart 52.2 text of provisions and clauses 52.2073 52.207[reserved] 52.2071 notice of standard competition. as prescribed in', 30606:'7.305a, insert the following provision: notice of standard competitionmay 2006 a this solicitation is part ofa standard competition under office', 30607:'of management and budget circular no. a76 revised, performance of commercial activities, dated may 29, 2003 hereafter the circular, to', 30608:'determine whether to accomplish the specified work under contract or by government performance. b the government will evaluate privatesector offers,the', 30609:'agency tender, and public reimbursable tenders,as providedin this solicitation and the circular. c a performance decision resulting from this standard', 30610:'competition will be publicly announced in accordance with the circular. if the performance decision favors a private sector offeror, acontract', 30611:'willbe awarded. if theperformance decision favors anagency or a public reimbursable tender, the contracting officer shall establish, respectively, either a', 30612:'most efficient organization letter of obligation ora feeforservice agreement, asthose terms are defined in the circular. d asprovided in thecircular,directlyinterested', 30613:'partiesmay file contests, whichare governed by the proceduresin federal acquisition regulation 33.103. until resolution of any contest, or the expiration', 30614:'of the time for filing a contest, only legalagents for directly interested parties shall have access to thecertifiedstandard competition form,', 30615:'the agencytender, and public reimbursable tenders. end of provision 52.2072notice of streamlined competition. as prescribed in 7.305b, insert the following', 30616:'provision: notice of streamlined competition may 2006 a this solicitation is part ofa streamlined competition under office ofmanagement and budget', 30617:'circular no. a76 revised, performance of commercial activities, dated may 29, 2003 hereafter the circular, to determine whether to accomplish', 30618:'the specified work under contract or by government performance. b the government will evaluate the cost of private sector and', 30619:'agency or public reimbursable performance, as provided in this solicitation and the circular. c a performance decision resulting from this', 30620:'streamlined competition will be publicly announced in accordance with the circular. if the performance decision favors private sector performance, the', 30621:'contractingofficer shall eitheraward acontract or issue a competitive solicitation for privatesector offers. if the performance decision favors agency or public', 30622:'reimbursable performance, the agency shall establish, respectively, either a letter of obligation or a feeforservice agreement, asthose terms are defined', 30623:'in the circular. end of provision 52.2073 right of first refusal of employment. as prescribed in 7.305c, insert the following', 30624:'clause: right of first refusal of employment may 2006 a thecontractor shall givegovernment personnel whohavebeenor will beadversely affectedor separated as', 30625:'a result of award of this contract the right of first refusal for employment openings under the contract in positions', 30626:'for which they are qualified, if that employment is consistent with postgovernment employment conflict of interest standards. b within 10', 30627:'days after contractaward,the contracting officerwill provide to the contractor a list ofall government personnel who have been or willbe adversely', 30628:'affected or separated asa result of awardof this contract. 52.2074 federal acquisition regulation c thecontractor shall report to the contracting', 30629:'officer the names of individuals identifiedon the list who are hired within 90 days after contract performance begins. this report', 30630:'shall be forwarded within 120 days after contract performance begins. end of clause 52.2074economic purchasequantitysupplies. as prescribed in 7.203, insert', 30631:'the following provision: economic purchase quantitysupplies aug 1987 a offerors are invited to state anopinion on whether thequantityies of supplies', 30632:'on whichbids, proposals or quotes are requested in this solicitation is are economically advantageous to the government. b each offeror', 30633:'who believes that acquisitions in different quantities would be more advantageous is invited to recommend an economic purchasequantity. if different', 30634:'quantities are recommended, a total anda unitprice mustbe quoted for applicable items. an economic purchase quantity is that quantity at', 30635:'which a significant price break occurs. if there are significant price breaksat different quantity points, this information isdesired as well.', 30636:'offerorrecommendations item quantity price quotation total c the information requested in this provision is being solicited to avoid acquisitions in', 30637:'disadvantageous quantities and to assist the government in developing a data base for future acquisitions ofthese items. however, the governmentreserves', 30638:'the right to amend or cancel the solicitation and resolicit with respect to any individual item in the event quotations', 30639:'received and thegovernment’s requirements indicate that different quantities should be acquired. end of provision 52.2075option topurchase equipment. as prescribed in', 30640:'7.404, insert a clause substantially the same as the following: option to purchase equipment feb 1995 a the government may', 30641:'purchase the equipment provided on a lease or rental basis under this contract. the contracting officer may exercise this option', 30642:'only by providing a unilateral modification to the contractor. the effectivedate of the purchase will be specified in the unilateral', 30643:'modification and may be any time during the period of the contract, including any extensions thereto. b except for final', 30644:'payment and transfer of title to the government, the lease or rental portion of the contract becomes complete and lease', 30645:'or rentalcharges shall bediscontinued on theday immediately precedingthe effective date of purchase specified in the unilateral modification required in paragraph', 30646:'a of this clause. c thepurchase conversioncostof the equipmentshallbe computed as ofthe effective date specified inthe unilateral modification required in', 30647:'paragraph a of this clause, on the basis of the purchase price set forth in the contract, minus the total', 30648:'purchase option credits accumulated during the period of lease or rental, calculated by the formula contained elsewhere in this contract.', 30649:'subpart 52.2 text of provisions and clauses 52.2076 d the accumulated purchase option credits available to determine the purchase conversion', 30650:'cost will also include any credits accrued during a period of lease or rental of the equipment under any previous', 30651:'government contract if the equipment has been on continuous lease or rental. the movement of equipment from one site to', 30652:'another site shall be continuous rental. end of clause 52.2076solicitation of offers from small business concernsand small business teaming arrangementsor', 30653:'joint venturesmultipleaward contracts. as prescribed in 7.1076, insert the following provision: solicitation of offers from small business concerns and small', 30654:'business teaming arrangements or joint ventures multipleaward contracts aug 2024 a definition.smallbusiness teaming arrangement, as used inthisprovision 1 means an', 30655:'arrangement where– itwo ormore smallbusinessconcerns have formed a joint venture; or iiasmall business offeror agrees withone or more other small', 30656:'business concerns to have themact as its subcontractorsunder a specified government contract. a small business teamingarrangement between the offeror and', 30657:'its small business subcontractors exists through a written agreement between the parties that– aisspecifically referred to as a small businessteamingarrangement;', 30658:'and b setsforth the different responsibilities, roles, and percentagesorotherallocationsof work as it relates tothe acquisition; 2 i for civilian agencies,', 30659:'may include two business concerns in a mentorprotégé relationship when both the mentor and the protégé aresmall or the protégé', 30660:'is small and the concerns have received an exception to affiliation pursuant to 13 cfr 121.103h3ii or iii. ii for', 30661:'dod, may include two business concerns in a mentorprotégé relationship in the department of defense mentorprotégé program see 10 u.s.c.', 30662:'4902 when both the mentor and the protégé are small. there is no exception to joint venturesize affiliation for offers', 30663:'received from teaming arrangements under the dod mentorprotégé program; and 3 see 13 cfr 121.103b9 regarding the exception to affiliation', 30664:'for offers receivedfrom small business teaming arrangementsin the case of a solicitation ofoffers for a bundled contract with a reserve.', 30665:'b the government is soliciting and will consideroffers from any responsible source, including responsiblesmall business concerns and offersfrom small business', 30666:'teaming arrangements or joint ventures ofsmallbusiness concerns. end of provision this page intentionally left blank. 52.250 subpart 52.2 text of', 30667:'provisions and clauses 52.2086 52.208[reserved] 52.2081 [reserved] 52.2082 [reserved] 52.2083 [reserved] 52.2084vehicle lease payments. as prescribed in 8.1104a, insert the', 30668:'following clause in solicitations and contracts for leasing motor vehicles, unless the motor vehicles are leased in foreign countries: vehicle', 30669:'lease payments apr 1984 a upon the submission of proper invoices or vouchers, the government shall pay rent for each', 30670:'vehicle at the rates specified in this contract. b rent shall accrue from the beginning of this contract, or from', 30671:'the date each vehicle is delivered to the government, whichever is later, and shall continue until theexpiration of the contractterm', 30672:'or thetermination of this contract. however, rent shall accrue only for the period that each vehicle is in the possession', 30673:'of the government. c rent shall notaccrueforanyvehicle that the contractingofficer determines does not complywith the condition of leasedvehicles clause of', 30674:'thiscontract orotherwise doesnot comply with the requirements of thiscontract, untilthe vehicle is replaced or the defects are corrected. d rent', 30675:'shall not accrue for any vehicle during any period when the vehicle is unavailable or unusable as a result of', 30676:'the contractor’sfailureto render servicesforthe operation and maintenance of thevehicleas prescribed bythiscontract. e rent stated in monthly terms shall be prorated', 30677:'on the basis of 1/30 th of the monthly rate for each day the vehicle is in thegovernment’s possession. ifthis', 30678:'contractcontains amileage provision, thegovernmentshallpay rent as provided inthe schedule. end of clause 52.2085condition of leasedvehicles. as prescribed in 8.1104b, insert', 30679:'the following clause in solicitations and contracts for leasing motor vehicles, unless the motor vehicles are leased in foreign countries:', 30680:'condition of leased vehicles apr 1984 each vehicle furnished under this contract shall be of good quality and in safe', 30681:'operating condition, and shall comply with the federal motor vehicle safety standards 49 cfr571 and state safety regulationsapplicable to the', 30682:'vehicle. the government shall accept or reject the vehicles promptly afterreceipt. if the contracting officer determines thatanyvehicle furnishedis not in', 30683:'compliance with this contract, the contracting officer shall promptly inform the contractor in writing. if thecontractor failsto replace thevehicle or', 30684:'correct the defects as required by the contracting officer, the government may a by contract or otherwise, correctthe defect or', 30685:'arrange for the lease of a similar vehicle andshallcharge or set off against the contractor any excess costs occasioned thereby;', 30686:'or b terminate thecontract under the default clauseof this contract. end of clause 52.2086marking of leased vehicles. as prescribed in', 30687:'8.1104c, insert the following clause in solicitations and contracts for leasing motor vehicles, unless the motor vehicles are leased in', 30688:'foreign countries: marking of leased vehicles apr 1984 52.2087 federal acquisition regulation a thegovernment may place nonpermanent markings or decals,', 30689:'identifying theusing agency, on each side, and on the front and rear bumpers, of any motor vehicle leased under this', 30690:'contract. the government shall use markings or decals that are removable without damage to the vehicle. b the contractor may', 30691:'use placards for temporary identification of vehicles except that the placards may not contain any references to the contractor that', 30692:'maybe construedas advertising or endorsement by thegovernment of the contractor. end of clause 52.2087tagging ofleased vehicles. as prescribed in 8.1104d,', 30693:'insert a clause substantially as follows: tagging of leased vehicles may 1986 while it is the intent that vehicles leased', 30694:'under this contract will operate on federal tags, the government reserves the right to utilize state tags if necessary to', 30695:'accomplish its mission. should state tags be required, the contractor shall furnish the government documentation necessary to allow acquisition of', 30696:'such tags. federal tags are the responsibility of the government. end of clause 52.2088 [reserved] 52.2089contractor use of mandatory sources', 30697:'of supply orservices. as prescribed in 8.005, insert the following clause: contractor use of mandatory sources of supply or services', 30698:'may 2014 a certain supplies or services to be provided under this contract for use by the government are required', 30699:'by law to be obtained from nonprofit agencies participating in the program operated by the committee for purchase from people', 30700:'who are blind or severely disabled the committee under 41 u.s.c. 8504.additionally, certain of these supplies are available from the', 30701:'defense logistics agency dla, thegeneral services administrationgsa, or the department of veterans affairs va. the contractor shall obtain mandatory supplies', 30702:'or services tobe provided for government use under this contract from the specific sources indicated in the contract schedule. b', 30703:'the contractor shall immediately notify the contracting officer if a mandatory source isunable to provide thesupplies or services by the', 30704:'timerequired, or ifthe quality of supplies or services provided by the mandatory source is unsatisfactory. the contractor shall not purchase', 30705:'the supplies or servicesfrom other sources until the contractingofficer has notified the contractor that the committee or an abilityone central', 30706:'nonprofit agency has authorized purchase from other sources. c price and delivery information for the mandatory supplies is available from', 30707:'thecontracting officer for thesupplies obtainedthroughthe dla/gsa/vadistribution facilities. for mandatory suppliesor services that are not available from dla/gsa/va, priceand delivery information', 30708:'isavailablefrom the appropriate central nonprofit agency. payments shall be made directly to the source making delivery. points of contactforabilityone central', 30709:'nonprofit agencies are: 1 nationalindustries for the blind 1310braddock place alexandria, va 223141691 703 3100500; and 2 nish 8401 oldcourthouse', 30710:'road vienna, va22182 571 2264660. end of clause subpart 52.2 text of provisions and clauses 52.2092 52.209[reserved] 52.2091qualificationrequirements. as prescribed', 30711:'in 9.2062, insert the following clause: qualification requirements feb 1995 a definition. qualification requirement, as used in this clause, means', 30712:'a government requirement for testing or other quality assurance demonstration that must be completed before award. b one or more', 30713:'qualification requirements apply to the supplies or services covered by this contract. for those supplies or services requiring qualification, whether', 30714:'the covered product or service is an end item under this contract or simply a component of an end item,', 30715:'the product,manufacturer,or source must have demonstrated that it meetsthe standards prescribed for qualification beforeaward of this contract. the product, manufacturer,', 30716:'orsource must be qualifiedat the time of award whether ornot the name ofthe product, manufacturer, orsource is actually included on', 30717:'aqualified products list, qualified manufacturers list, or qualified bidders list. offerors should contact the agency activity designatedbelow to obtain all', 30718:'requirements that they or their products or services, or their subcontractors or their products or services, must satisfy to become', 30719:'qualified and to arrange for an opportunity to demonstrate their abilities to meet the standards specified for qualification. name address', 30720:'c if an offeror, manufacturer, source, productor service coveredby aqualification requirement has alreadymet the standards specified, the relevant information noted', 30721:'below should be provided. offeror’s name manufacturer’s name source’s name item name service identification test number to the extent known', 30722:'d even though a product or service subject to a qualification requirement is not itself an end item under this', 30723:'contract, theproduct, manufacturer, or source must nevertheless bequalified at thetime ofaward of this contract. thisis necessary whether the contractor or', 30724:'a subcontractor will ultimately provide the product or service in question. if, after award, the contracting officerdiscovers thatan applicable qualification', 30725:'requirement was not in fact met at the time ofaward, the contracting officermay either terminate this contract for default or', 30726:'allow performance to continue if adequate consideration is offered and the action is determinedto beotherwise inthe government’s best interests. e', 30727:'if an offeror, manufacturer, source, productor service has met the qualificationrequirementbut is not yet on a qualified products list, qualified', 30728:'manufacturers list, or qualified bidders list, the offeror must submit evidence ofqualification prior to award ofthis contract. unless determined to', 30729:'be in the government’s interest, award of this contract shall not bedelayed to permit anofferor to submit evidence of qualification.', 30730:'f any change in location or ownership of the plant where a previously qualified product or service was manufactured or', 30731:'performed requires reevaluation of the qualification. similarly, any change in location or ownership ofa previously qualified manufacturer or source requires', 30732:'reevaluation of the qualification. the reevaluation must be accomplished before the date of award. end of provision 52.2092prohibition on contracting', 30733:'with inverted domestic corporationsrepresentation. as prescribed in 9.1085a, insert the following provision: 52.2093 federal acquisition regulation prohibition on contracting with', 30734:'inverted domestic corporationsrepresentation nov 2015 a definitions. inverted domestic corporation and subsidiary have the meaning given in the clause of', 30735:'this contract entitled prohibition on contracting with inverted domestic corporations 52.20910. b government agencies are not permitted to use appropriated', 30736:'or otherwise made available funds for contracts with either an inverted domestic corporation, or a subsidiary of an inverted domestic', 30737:'corporation, unless the exception at 9.1082b applies or the requirement is waived in accordance with the procedures at 9.1084. c', 30738:'representation. the offeror representsthat 1 it □ is, □ is not an inverted domestic corporation; and 2 it □ is,', 30739:'□ is not a subsidiary of an inverted domestic corporation. end of provision 52.2093first article approvalcontractor testing. as prescribed in', 30740:'9.3081a and b, insert the following clause: first article approvalcontractor testing sept 1989 [contracting officer shall insert details] a the', 30741:'contractor shall test units of lot/item as specified in this contract. at least calendar days beforethe beginning of first article', 30742:'tests, the contractor shall notify the contracting officer, inwriting, of the time and location of the testing so that the', 30743:'government may witness the tests. b the contractor shall submit the first article test report within calendar days from the', 30744:'date of this contract to [insert address of the government activity to receive the report] marked first article test report:', 30745:'contract no. , lot/item no. within calendar days after the government receives the test report, the contracting officer shall notifythe', 30746:'contractor, in writing, of the conditional approval, approval, or disapproval of thefirst article. the notice of conditional approval or approval', 30747:'shall not relieve the contractor from complying with all requirements of the specifications and all other terms and conditions of', 30748:'this contract. a notice of conditional approval shall state any further action requiredof the contractor. a noticeof disapproval shall cite', 30749:'reasonsforthe disapproval. c if the first article is disapproved, the contractor,upon government request, shall repeat any or allfirstarticle tests. after', 30750:'each request for additional tests, the contractor shall make any necessary changes, modifications, or repairs to the first article or', 30751:'select anotherfirstarticle for testing. all costs related to these testsare tobe borne bythe contractor, including any and all costs for', 30752:'additional tests following a disapproval. the contractor shall then conduct the tests and deliver another report to the government under', 30753:'the terms and conditions and within the time specified by the government. the government shall take action on this report', 30754:'within the time specified in paragraph b of this subsection. the government reserves the right to require an equitable adjustment', 30755:'of the contract price for any extension of the delivery schedule, or for any additional costs to the government related', 30756:'to these tests. d if the contractor fails to deliver any first article reporton time, orthe contracting officerdisapproves any first', 30757:'article, the contractor shall be deemed to have failed to make delivery within the meaning of the default clause of', 30758:'this contract. e unless otherwise provided in the contract, and if the approved first article is not consumed or destroyed', 30759:'in testing, the contractor may deliver the approved first article as part of the contract quantity if it meets all', 30760:'contract requirements for acceptance. f if the government does not act within the time specified in paragraph b or c', 30761:'of this subsection, the contracting officer shall,upon timelywritten request from thecontractor, equitablyadjust under the changes clause of this contract the', 30762:'delivery or performance dates and/or the contract price, and any other contractual term affected bythe delay. g before first article', 30763:'approval, the acquisitionof materialsor components for,or the commencement of production of, thebalanceof the contract quantity is at the sole risk', 30764:'of the contractor. before first article approval, the coststhereof shall not be allocable to this contract for 1 progress payments,', 30765:'or 2 termination settlements if the contract is terminated for the convenience of the government. subpart 52.2 text of provisions', 30766:'and clauses 52.2094 h the government may waive the requirement for first article approval test where supplies identical or similar', 30767:'to those called for in the schedule have been previously furnished by the offeror/contractor and have been accepted by the', 30768:'government. the offeror/contractor mayrequest awaiver. end of clause alternate i jan 1997. as prescribed in 9.3081a2 and b2, add the', 30769:'following paragraph i to the basic clause: ithe contractorshallproduce boththe first articleand the production quantityat the same facility. alternate ii', 30770:'sept1989. as prescribed in 9.3081a3 and b3, substitute the following paragraph g for paragraph g of the basic clause: g', 30771:'before first article approval, the contracting officer may,by written authorization, authorize the contractor toacquire specific materials or components or to', 30772:'commence production to the extent essential to meet the delivery schedules. until first article approval is granted, only costs for', 30773:'the first article and costs incurred under this authorization are allocable to this contract for 1 progress payments, or 2', 30774:'termination settlements if the contract is terminated for the convenience of the government. if first article tests reveal deviations from', 30775:'contract requirements, the contractor shall, at the location designated by the government, make the required changes or replace all items', 30776:'produced under this contract at no change in the contract price. 52.2094first article approvalgovernmenttesting. as prescribed in 9.3082a and b,', 30777:'insert the following clause: first article approvalgovernment testing sep 1989 [contracting officer shall insert details] a the contractor shall deliver', 30778:'units of lot/item within calendar days from the date of this contract to the government at [insert name and address', 30779:'of the testing facility] for first article tests. the shipping documentation shall contain this contract number and the lot/item identification.', 30780:'the characteristics that the first article must meet and the testing requirements are specified elsewhere in this contract. b within', 30781:'calendardays after the government receives the first article, the contractingofficer shall notify the contractor, in writing, of the conditional approval,', 30782:'approval, ordisapproval of thefirstarticle. the notice ofconditional approval or approval shall not relieve the contractor from complying with all requirements', 30783:'of the specifications and all other terms and conditions of this contract. a notice of conditional approval shall state any', 30784:'further action required of the contractor. a notice ofdisapproval shall cite reasons for the disapproval. c if the first article', 30785:'is disapproved, the contractor,upon government request, shall submit an additional first article for testing. after each request, the contractor shall', 30786:'make any necessary changes, modifications, or repairs to the first article or selectanother first articlefortesting. all costsrelated to these tests', 30787:'are to be borne by thecontractor, including any and all costs for additional tests following a disapproval. the contractor shall', 30788:'furnish any additional first article to the government under the terms and conditions and within the time specified by the', 30789:'government. the government shall act on this first article within the time limit specified in paragraph b of this clause.', 30790:'the government reserves the right to require an equitable adjustment of the contract price for any extension of the delivery', 30791:'schedule or for any additional costs to the government related to these tests. d if the contractor fails to deliver', 30792:'any first article on time,or the contracting officer disapprovesanyfirstarticle, the contractor shall be deemed to have failed to make delivery', 30793:'within the meaning of the default clause of this contract. e unless otherwise provided in the contract, the contractor 1', 30794:'maydeliverthe approved first article as a part of the contract quantity, provided it meets all contract requirements for acceptance and', 30795:'was not consumed or destroyed in testing; and 2 shall removeanddispose ofanyfirstarticle from the government test facility at thecontractor’s expense.', 30796:'f ifthe government doesnot actwithin the time specifiedin paragraph b or c of this clause, the contracting officer shall, upon', 30797:'timely written request from the contractor, equitably adjustunder thechanges clause of this contract thedelivery or performance dates and/or the contractprice,and', 30798:'any other contractual termaffected by the delay. g the contractor is responsible for providing operating and maintenance instructions, spare parts', 30799:'support, and repair of the first article during any first article test. 52.2095 federal acquisition regulation h before first article', 30800:'approval, the acquisitionof materialsor components for,or the commencement of production of, thebalanceof the contract quantity is at the sole risk', 30801:'of the contractor. before first article approval, the coststhereof shall not be allocable to this contract for 1 progress payments,', 30802:'or 2 termination settlements if the contract is terminated for the convenience of the government. i the government may waive', 30803:'the requirement for first article approval test where supplies identical or similar to those called for in the schedule have', 30804:'been previously furnished by the offeror/contractor and have been accepted by the government. the offeror/contractor mayrequest awaiver. end of clause', 30805:'alternate i jan 1997. as prescribed in 9.3082a2 and b2, add the following paragraph j to the basic clause: jthe', 30806:'contractorshallproduce boththe first articleand the production quantityat the same facility. alternate ii sept 1989. as prescribed in 9.3082a3 and b3,', 30807:'substitute the following paragraph h for paragraph h of the basic clause: h before first article approval, the contracting officer', 30808:'may,by written authorization, authorize the contractor toacquire specific materials or components or to commence production to the extent essential to', 30809:'meet the delivery schedules. until first article approval is granted, only costs for the first article and costs incurred under', 30810:'this authorization are allocable to this contract for 1 progress payments, or 2 termination settlements if the contract is terminated', 30811:'for the convenience of the government. if first article tests reveal deviations from contract requirements, the contractor shall, at the', 30812:'location designated by the government, make the required changes or replace all items produced under this contract at no change', 30813:'in the contract price. 52.2095 certification regarding responsibility matters. as prescribed in 9.1047a, insert the following provision: certification regarding responsibility', 30814:'matters aug 2020 a 1theofferorcertifies,tothebestofitsknowledgeandbelief,that— ithe offeror and/or anyof its principals– a are □ are not □ presently debarred, suspended,', 30815:'proposed for debarment, or declared ineligible for the award of contracts by any federal agency; b have □ have not', 30816:'□, within a threeyear period preceding this offer, been convicted of or had acivil judgment rendered against them for: commission', 30817:'offraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public federal, state, or local', 30818:'contract or subcontract; violation of federal or state antitrust statutes relating to the submission of offers; or commission ofembezzlement, theft,', 30819:'forgery, bribery, falsification or destruction of records, making falsestatements,tax evasion, violating federal criminal tax laws, or receiving stolen property if', 30820:'offeror checks have, the offeror shall also see 52.2097, if included in this solicitation; c are □ are not □', 30821:'presentlyindictedfor, or otherwise criminallyor civilly charged by a governmentalentity with, commission of any ofthe offenses enumerated inparagraph a1ib ofthis provision;', 30822:'d have □, have not □, within a threeyear period precedingthisoffer, been notified of any delinquentfederal taxes in an amount', 30823:'that exceeds the threshold at 9.1045a2 for which the liability remains unsatisfied. 1 federal taxes are considered delinquent if both', 30824:'of the following criteria apply: i the tax liability is finally determined. the liability is finally determined if it has', 30825:'been assessed. a liability is not finally determined if there is a pending administrative or judicial challenge. in the case', 30826:'of a judicial challenge to the liability, the liability is not finally determined until alljudicial appeal rights have been exhausted.', 30827:'ii the taxpayer is delinquent in making payment. a taxpayer is delinquent if the taxpayer has failed to pay the', 30828:'tax liability when full payment was due and required. a taxpayer is not delinquent in cases where enforced collection action', 30829:'is precluded. 2 examples. i the taxpayer has received a statutorynotice of deficiency, under i.r.c. § 6212, which entitles the', 30830:'taxpayerto seek tax court review of a proposed tax deficiency. this is not a delinquent tax because it is nota', 30831:'final tax liability. should thetaxpayer seek tax court review,this will not bea final tax liability until the taxpayer has exercised', 30832:'all judicial appeal rights. subpart 52.2 text of provisions and clauses 52.2096 ii the irs has filed a notice offederal', 30833:'taxlien with respect to an assessed tax liability, and thetaxpayer has been issued a notice under i.r.c. § 6320 entitlingthe', 30834:'taxpayerto request a hearingwith the irs office ofappeals contesting thelien filing, and to further appeal to the tax court if', 30835:'theirs determines tosustainthe lien filing. in the course of the hearing, the taxpayer is entitled to contest the underlying tax', 30836:'liability because the taxpayer has had no prior opportunity to contest the liability. this is not a delinquent tax because', 30837:'it is nota final tax liability. should the taxpayer seek tax court review, this will notbe a final taxliability untilthe', 30838:'taxpayer has exercised all judicialappealrights. iii the taxpayer has entered into an installment agreement pursuant to i.r.c. § 6159. the', 30839:'taxpayer is making timely payments and is in full compliance with the agreement terms. the taxpayer is not delinquent because', 30840:'the taxpayer is not currently required to make full payment. iv the taxpayer has filed for bankruptcy protection. the taxpayer', 30841:'is not delinquent because enforced collection action is stayed under 11u.s.c. 362 the bankruptcy code. iithe offeror has □ has', 30842:'not □, withina threeyearperiod preceding this offer, had one or more contracts terminated for default by any federal agency. 2', 30843:'principal, for the purposes of this certification, means anofficer, director, owner, partner, or a person having primary management or supervisory', 30844:'responsibilities within a business entity e.g., general manager; plant manager; head of a division or business segment; and similar positions.', 30845:'this certification concernsa matter within the jurisdictionof an agency of the united states and the making ofa false, fictitious, or', 30846:'fraudulent certification may render themaker subject to prosecution under section 1001, title18,united states code. b the offeror shall provide immediate', 30847:'written notice to thecontracting officer if,at any time prior to contract award, theofferor learns that its certification was erroneouswhen submitted', 30848:'or has become erroneous by reason ofchanged circumstances. c a certification that any of the items in paragraph a of', 30849:'this provision exists will not necessarily result in withholding of an award underthissolicitation. however,the certification will beconsidered inconnection witha determination', 30850:'ofthe offeror’s responsibility. failure of the offeror to furnish a certification or provide such additional information asrequested by thecontracting officer', 30851:'may render the offeror nonresponsible. d nothing contained in the foregoing shall be construed to require establishment of a system', 30852:'of records in order to render, in good faith, the certificationrequired by paragraph a of this provision. the knowledge and', 30853:'information of an offeror isnot required toexceed that which is normally possessed bya prudentpersonin theordinarycourse of business dealings. e the', 30854:'certification in paragraph a of this provision is a material representation of fact upon which reliance was placed when making', 30855:'award. if it is later determinedthat theofferor knowingly rendered an erroneouscertification, in addition to otherremedies available tothe government, the contracting', 30856:'officer may terminate thecontract resultingfrom this solicitation for default. end of provision 52.2096protecting thegovernment’s interest whensubcontracting withcontractorsdebarred, suspended, or proposedfor', 30857:'debarment. as prescribed in 9.409, insert the following clause: protecting the government’s interest when subcontracting with contractors debarred, suspended, or', 30858:'proposed for debarment nov 2021 a definition. commercially available offtheshelf cots item, as used in this clause— 1 means any', 30859:'item of supply including construction material that is– i a commercial product as defined in paragraph 1 of the definition', 30860:'of “commercial product” in federal acquisition regulationfar2.101; ii sold in substantial quantities in the commercial marketplace; and iii offered tothe', 30861:'government, under a contract or subcontract at any tier, without modification, in the same form in which it is sold', 30862:'in the commercial marketplace; and 52.2097 federal acquisition regulation 2 does not include bulk cargo, as defined in 46 u.s.c.', 30863:'401024, such as agricultural products and petroleum products. b the government suspends or debarscontractors to protect the government’s interests. other', 30864:'than a subcontract for a commercially available offtheshelf item, the contractorshallnot enter into any subcontract, in excessof the threshold specified', 30865:'in far 9.4052b on the date of subcontract award, with a contractor that is debarred, suspended, or proposed for debarment', 30866:'by any executive agency unless there is a compelling reason to do so. c the contractor shall require each proposed', 30867:'subcontractor whose subcontract will exceed the threshold specified in far 9.4052b on the date of subcontractaward, otherthan asubcontractorproviding a commercially', 30868:'available offtheshelf item,to disclose to the contractor,in writing, whether asof the time of award of the subcontract,the subcontractor,or its principals,', 30869:'is or is not debarred, suspended, or proposed for debarment by the federal government. d a corporate officer or a', 30870:'designeeof the contractor shall notify the contracting officer, in writing, beforeentering into a subcontract witha party other than a subcontractor', 30871:'providinga commercially available offtheshelf item that is debarred, suspended, or proposed for debarment see far 9.404 for information on the', 30872:'system for award management sam exclusions. the notice must include the following: 1 the name of the subcontractor. 2 the', 30873:'contractor’s knowledge of the reasons for the subcontractor being listed with an exclusion insam. 3 the compelling reasons for doing', 30874:'business with the subcontractor notwithstanding its being listed with an exclusion in sam. 4 the systems and procedures the contractor', 30875:'has established to ensure that it is fully protecting the governments interests whendealing with such subcontractor in view of the', 30876:'specific basisforthe party’sdebarment,suspension, or proposed debarment. e subcontracts. unless this is a contract for the acquisition of commercial products or', 30877:'commercial services, the contractor shall include the requirements of this clause, including this paragraph e appropriately modified for the identification', 30878:'of the parties, in each subcontract that— 1 exceeds the thresholdspecified in far 9.4052b on the date of subcontract award;', 30879:'and 2 is not a subcontract for commercially available offtheshelfitems. end of clause 52.2097 information regarding responsibility matters. as prescribed', 30880:'at 9.1047b, insert the following provision: information regarding responsibility matters oct 2018 a definitions. as used in this provision— administrative', 30881:'proceeding means a nonjudicial process that is adjudicatory in nature in order to make a determination of fault or liability', 30882:'e.g., securities and exchange commission administrative proceedings, civilian board of contract appeals proceedings, and armed services board of contract appeals', 30883:'proceedings. this includes administrative proceedings at the federal and state level but only in connection with performance of a federal', 30884:'contract or grant. it does not include agency actions such as contract audits, site visits, corrective plans, or inspection of', 30885:'deliverables. federal contracts and grants with total value greater than $10,000,000 means— 1 the total value of all current, active', 30886:'contracts and grants, including all priced options; and 2 the total value of all current, active orders including all priced', 30887:'options under indefinitedelivery,indefinitequantity, 8a, or requirements contracts including task and delivery and multipleaward schedules. principal means an officer, director, owner,partner,', 30888:'or a personhaving primarymanagementor supervisory responsibilities within a business entity e.g., general manager; plant manager; head of a division or', 30889:'business segment; and similar positions. b the offeror □ has □ does not have current active federal contracts and grants', 30890:'with total value greater than $10,000,000. c if the offeror checked has in paragraph b of this provision, theofferor represents,', 30891:'bysubmission of thisoffer, that theinformationithas entered in the federalawardee performanceandintegrity information system fapiisis current, accurate, and complete as of the', 30892:'date of submission of this offerwith regard to the followinginformation: subpart 52.2 text of provisions and clauses 52.2099 1 whetherthe', 30893:'offeror, and/or any of its principals, has or has not, within the last five years, in connection with the award', 30894:'to or performance by the offeror of a federal contract or grant, been the subject ofa proceeding, at the federalor', 30895:'state level that resulted in any of the following dispositions: i in a criminal proceeding, a conviction. iiin acivil proceeding,', 30896:'afinding of faultand liability that results inthe paymentof amonetary fine, penalty, reimbursement, restitution, or damages of $5,000 or more. iii', 30897:'in an administrative proceeding, a finding of fault and liability that results in– a the payment of a monetary fine', 30898:'or penalty of $5,000 or more; or b the payment of a reimbursement, restitution, or damages in excess of $100,000.', 30899:'iv in a criminal, civil, or administrative proceeding, a disposition of the matter by consent or compromise with an acknowledgment', 30900:'of fault by the contractor if the proceeding could have led to any of the outcomes specified in paragraphs c1i,', 30901:'c1ii, or c1iii of this provision. 2 if the offerorhas been involvedin the last five years in any of the', 30902:'occurrenceslistedin c1of this provision, whether theofferor has provided the requested information with regardto each occurrence. d the offeror shall postthe', 30903:'information inparagraphs c1i through c1iv of this provision in fapiis as required through maintaining an activeregistrationin thesystemforawardmanagement, which can be', 30904:'accessed via https:// www.sam.gov see 52.2047. end of provision 52.2098 [reserved] 52.2099updates of publicly available informationregarding responsibility matters. as prescribed', 30905:'at 9.1047c, insert the following clause: updates of publicly available information regarding responsibility matters oct 2018 a thecontractor shall update', 30906:'the informationin the federal awardee performance and integrityinformation system fapiis on a semiannualbasis, throughout thelife ofthe contract, by posting the', 30907:'required informationin the system for award management via https://www.sam.gov. b asrequired by section3010 of the supplemental appropriations act, 2010 pub.', 30908:'l. 111212, all information posted in fapiis on or after april 15, 2011,exceptpast performance reviews,will be publicly available. fapiis consistsof', 30909:'two segments 1 the nonpublic segment, into which government officials and the contractor post information, which can only be viewed', 30910:'by i government personnel and authorized users performing business on behalf of the government; or iithe contractor, when viewingdata on', 30911:'itself; and 2 the publiclyavailable segment, to which all data in the nonpublic segment offapiis is automatically transferred after a', 30912:'waiting period of 14 calendar days, except for i past performance reviews required by subpart 42.15; iiinformation that was entered', 30913:'priorto april 15, 2011; or iii information that is withdrawn duringthe 14calendarday waiting period by thegovernmentofficial whoposted it in accordance', 30914:'with paragraph c1 of this clause. c thecontractor will receive notification when the government posts new informationto the contractor’s record.', 30915:'1 if the contractor assertsin writing within 7calendar days,to thegovernment official whoposted the information, that some ofthe information posted to', 30916:'the nonpublic segment of fapiis is covered bya disclosure exemption underthe freedom of information act,the government official who posted the', 30917:'information mustwithin 7calendar days remove the posting from fapiis and resolvethe issue in accordance with agencyfreedom ofinformation procedures, prior toreposting', 30918:'the releasable information. the contractor must cite 52.2099 and request removal within 7 calendar days of the posting to fapiis.', 30919:'2 the contractor will also have an opportunity to post comments regarding information that has been posted by the government.', 30920:'the comments will be retained as long as the associated information is retained, i.e., for a total period of 6', 30921:'years. contractor comments will remain a part of the record unless the contractor revises them. 52.20910 federal acquisition regulation 3', 30922:'asrequired by section3010 of pub. l. 111212, all information posted in fapiis onor after april15,2011, except past performance reviews, will', 30923:'be publicly available. d public requests for system information postedprior to april15,2011, will be handled under freedom of information act', 30924:'procedures, including, where appropriate, procedures promulgated under e.o. 12600. end of clause 52.20910 prohibitionon contractingwith inverted domestic corporations. as prescribed', 30925:'in 9.1085b, insert the following clause: prohibition on contracting with inverted domestic corporations nov 2015 a definitions. as used in', 30926:'this clause inverted domestic corporation means a foreign incorporated entity that meets the definition of an inverted domestic corporation under', 30927:'6 u.s.c. 395b, applied in accordance with the rules and definitions of 6 u.s.c. 395c. subsidiary means an entity in', 30928:'which more than 50 percent of the entity is owned 1 directly by a parent corporation; or 2 through another', 30929:'subsidiary of a parent corporation. b if the contractor reorganizes as an inverted domestic corporation orbecomes a subsidiaryof an inverted', 30930:'domestic corporation at any time during the period of performance of this contract, the government may be prohibited from paying', 30931:'for contractor activities performed after the date when it becomes aninverted domesticcorporation or subsidiary. the government may seek any available', 30932:'remedies in the event the contractor fails to perform in accordance with the terms and conditions of the contract as', 30933:'a result of government action under this clause. c exceptions to this prohibition are located at 9.1082. d in the', 30934:'event the contractor becomes either an inverted domestic corporation, or a subsidiary of an inverted domestic corporation during contract performance,', 30935:'the contractorshallgive written noticeto thecontracting officer within five business days from the date of the inversion event. end of clause', 30936:'52.20911representation by corporations regarding delinquent tax liability ora felony conviction underany federallaw. as prescribed in 9.1047d, insert the following provision:', 30937:'representation by corporations regarding delinquent tax liability or a felony conviction under any federal law feb 2016 a as required', 30938:'by sections 744 and 745 of division e of the consolidated and further continuing appropriations act, 2015pub. l. 113235, and', 30939:'similar provisions, if contained in subsequentappropriations acts, the government will notenter into a contract with any corporation that– 1 has', 30940:'any unpaid federal tax liability that has been assessed, for which all judicial and administrative remedies have been exhausted or', 30941:'have lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority responsible', 30942:'for collecting thetax liability, where the awardingagency isaware of the unpaid tax liability, unless an agency has considered suspension or', 30943:'debarment of the corporation and made a determination that suspension or debarment is not necessary to protect the interests of', 30944:'the government; or 2 was convictedof afelony criminal violation underanyfederal law withinthe preceding 24 months, wherethe awarding agency is aware', 30945:'of the conviction, unless an agency has considered suspension or debarment of the corporation and made a determination that this', 30946:'action is not necessary to protect the interests of the government. b the offeror represents that– 1 it is □', 30947:'is not □ a corporation that has any unpaid federal tax liability that has been assessed, for which all judicial', 30948:'and administrative remedies have been exhausted or have lapsed, and that is not being paid in a timely manner pursuant', 30949:'to an agreement with the authority responsible for collecting the tax liability; and subpart 52.2 text of provisions and clauses', 30950:'52.20913 2 it is □ is not □ a corporation that was convicted of a felony criminal violation under a', 30951:'federal law within the preceding 24 months. end of provision 52.20912 certification regarding tax matters. as prescribed in 9.1047e, insert', 30952:'the following provision: certification regarding tax matters oct 2020 a this provision implements section 523 of division b of the', 30953:'consolidated and further continuing appropriations act, 2015pub. l. 113235, and similar provisions, if contained in subsequentappropriations acts. b if the', 30954:'offeror is proposing a total contract price that will exceed$5.5 million includingoptions, the offeror shall certify that, to the best', 30955:'of its knowledge and belief, it 1 has □ filed all federal tax returns required during the three years preceding', 30956:'the certification; 2 has not □ been convicted ofa criminal offense under the internal revenuecode of 1986; and 3 has', 30957:'not □, more than 90 days prior to certification, been notified of any unpaid federal tax assessment for which theliability', 30958:'remainsunsatisfied, unless the assessment is the subjectof an installment agreement or offerin compromisethat has been approved by the internal revenue', 30959:'service and is not in default, or the assessment is the subject of a nonfrivolous administrative or judicial proceeding. end', 30960:'of provision 52.20913 violation of arms control treaties or agreementscertification. as prescribed in 9.1095, insert the following provision: violation of', 30961:'arms control treaties or agreementscertification nov 2021 a this provision does not apply to acquisitions at or below the simplified', 30962:'acquisition threshold or to acquisitions of commercial products and commercial services as defined in federal acquisition regulation 2.101. b certification.', 30963:'[offeror shall check either 1 or 2.] 1 the offeror certifies that– i it does not engage and has not', 30964:'engaged in any activity that contributed to or was a significant factor in the presidents or secretary of states determination', 30965:'that a foreign country is in violation of its obligations undertaken in any arms control, nonproliferation, or disarmament agreement to', 30966:'which the united states is a party, oris not adhering to its arms control, nonproliferation, or disarmament commitments in which', 30967:'the united states is a participating state. the determinations are described in the most recent unclassified annual report provided to', 30968:'congress pursuant to section 403 of the arms control and disarmament act 22 u.s.c. 2593a. the report is available at', 30969:'https://www.state.gov/bureausoffices/undersecretaryfor armscontrolandinternationalsecurityaffairs/bureauofarmscontrolverificationandcompliance/; and iino entityownedor controlled by the offeror has engaged inanyactivity thatcontributedto or was a significant factor in the', 30970:'presidents or secretary of states determination that a foreign country is in violation of its obligations undertaken in anyarms control,', 30971:'nonproliferation, or disarmament agreement to which the united states isa party, or is not adhering to its arms control, nonproliferation,', 30972:'or disarmament commitments in which the united states is a participating state. the determinations are described in the most recent', 30973:'unclassified annual report provided to congress pursuant to section 403 of the arms control and disarmament act 22 u.s.c. 2593a.', 30974:'the report is available at https://www.state.gov/ bureausoffices/undersecretaryforarmscontrolandinternationalsecurityaffairs/bureauofarmscontrolverificationandcompliance/; or 2theofferorisprovidingseparateinformationwithitsofferinaccordancewithparagraphd2ofthis provision. c procedures for reviewing the annual unclassifiedreport see paragraph b1', 30975:'of this provision. for clarity, references to the report in this section refer to the entirety of the annual unclassified', 30976:'report, including any separate reports that are incorporated by reference into the annual unclassified report. 52.20914 federal acquisition regulation 1', 30977:'check the table of contents of the annual unclassified report and the country section headings of the reports incorporated by', 30978:'reference to identifythe foreign countries listed there. determinewhetherthe offeror or any person owned or controlled bythe offeror may have engagedin', 30979:'any activityrelated to one or moreof such foreign countries. 2 if theremay have been such activity, review all findings in', 30980:'the report associated withthose foreigncountriesto determine whether or not each such foreign country was determined to be in violation of', 30981:'its obligations undertaken in an arms control,nonproliferation, ordisarmament agreement to which the unitedstates isa party, or tobe not adhering to', 30982:'its arms control,nonproliferation, ordisarmament commitments in which the united states is a participating state. for clarity, in the annual reportan', 30983:'explicit certification of noncompliance is equivalent to adetermination of violation. however, thefollowing statements in the annual report are not equivalent', 30984:'to a determination of violation: i an inability to certify compliance. ii an inability to conclude compliance. iii a statement', 30985:'about compliance concerns. 3 if so, determine whether the offeror orany personownedor controlled by the offeror has engaged inanyactivity that', 30986:'contributed to or is a significant factor in the determination in the report that one or more of these foreign', 30987:'countries is in violation of its obligations undertaken in an arms control, nonproliferation, or disarmament agreement to which the united', 30988:'states is a party, or is not adhering to its arms control, nonproliferation, or disarmament commitments inwhich the united states', 30989:'is a participating state. review the narrative for any such findings reflecting a determination of violation or non adherence related', 30990:'to thoseforeign countries inthe report,including the finding itself, and to the extent necessary, theconduct giving rise to the compliance oradherence', 30991:'concerns, the analysis of compliance or adherence concerns, andefforts to resolve compliance or adherence concerns. 4 the offeror maysubmit any', 30992:'questionswith regard tothisreport by email to ndaa1290cert@state.gov. to the extent feasible, the department of state will respond to such email', 30993:'inquiries within 3 business days. d do not submitan offer unless— 1 a certification is provided in paragraph b1of this', 30994:'provision andsubmitted withthe offer; or 2 in accordance with paragraph b2 of thisprovision, the offeror provides with its offerinformation that', 30995:'the president of the united states has iwaivedapplication under 22 u.s.c. 2593ed or e; or ii determined under 22 u.s.c.', 30996:'2593eg2 that the entity has ceased all activities for which measures were imposed under 22 u.s.c. 2593eb. e remedies. the', 30997:'certification in paragraph b1 of this provision is a material representation of fact upon which reliance was placed when making', 30998:'award. if it is laterdetermined that the offeror knowingly submitted a false certification,in addition to otherremedies available tothe government, such', 30999:'assuspension or debarment, the contractingofficer may terminate any contract resulting from the false certification. end of provision 52.20914 reserve officer', 31000:'training corps andmilitary recruiting on campus. as prescribed in 9.1105 , insert the following clause: reserve officer training corps and', 31001:'military recruiting on campus nov 2021 a definitions. as used in this clause— covered agency means— 1 the department of', 31002:'defense; 2 any department or agencyforwhich regular appropriations are made in a department of labor, health and human services; and', 31003:'education, and related agencies appropriations act; 3 the department of homeland security; 4 the national nuclear security administration of the', 31004:'department of energy; 5 the department of transportation;or 6 the central intelligence agency. institution of higher education means an institution', 31005:'that meets the requirements of 20 u.s.c. 1001 and includes all sub elements of such an institution. subpart 52.2 text', 31006:'of provisions and clauses 52.20914 b limitation on contract award. except as provided in paragraph c of this clause, an', 31007:'institution of higher education is ineligible for contract award if the secretary of defense determines that the institution has a', 31008:'policy or practice regardless of when implemented that prohibits or in effect prevents— 1 the secretary of a military department', 31009:'from maintaining, establishing, or operating a unit of the senior reserve officer training corps rotcat that institution or any subelement', 31010:'of that institution; 2 a student at that institution or any subelement of that institution from enrolling in a unit', 31011:'of the senior rotc at another institution of higher education; 3 the secretary of a military department or the secretary', 31012:'of homeland security from gaining access to campuses, or access to students who are 17 years of age or older', 31013:'on campuses, for purposes of military recruiting; or 4 military recruiters from accessing, for purposes of military recruiting, the following', 31014:'information pertaining to students who are 17 years of age or older enrolled at that institution: i name, address, and', 31015:'telephone listings. ii date and place of birth, educational level, academic majors, degrees received, and the most recent educational institution', 31016:'enrolled in by the student. c exception. the limitation in paragraph b of this clause does not apply to an', 31017:'institution of higher education if the secretary of defense determines that— 1 the institution has ceased the policy or practice', 31018:'described in paragraph b of this clause; or 2 the institution hasa longstanding policy of pacifism based on historical religious', 31019:'affiliation. d notwithstanding any other clause of this contract, if the secretary of defense determines that the institution has violated', 31020:'the contract in paragraph b of this clause— 1 the institution will be ineligible for further payments under this and', 31021:'any other contracts with this agency and any other covered agency, except for contracts ator below thesimplified acquisition threshold or', 31022:'contracts for the acquisition of commercial products or commercial services; and 2 the government will terminate this contract for default', 31023:'for the institutions material failure to comply with the terms and conditions of award. end of clause this page intentionally', 31024:'left blank. 52.264 subpart 52.2 text of provisions and clauses 52.2101 52.210[reserved] 52.2101marketresearch. as prescribed in 10.003, insert the following', 31025:'clause: market research nov 2021 a definition. as used in this clause— commercial product, commercial service, and nondevelopmental item have', 31026:'the meaning contained in federal acquisition regulation 2.101. b before awarding subcontracts for other than commercial acquisitions, where the subcontracts', 31027:'are over the simplified acquisition threshold, as defined in far 2.101 on the date of subcontract award, the contractor shall', 31028:'conduct market research to— 1 determine if commercial products, commercialservices, or, tothe extent commercial productssuitable to meet the agency’s needs', 31029:'are not available, nondevelopmental items areavailable that– imeet the agency’s requirements; iicould be modified to meet the agency’srequirements; or iii', 31030:'could meetthe agency’s requirements if those requirements were modified to a reasonable extent; and 2 determine the extent to which', 31031:'commercial products, commercial services, or nondevelopmental items could be incorporated at the component level. end of clause this page intentionally', 31032:'left blank. 52.266 subpart 52.2 text of provisions and clauses 52.2113 52.211[reserved] 52.2111 availability of specifications listed in the gsa', 31033:'index of federalspecifications, standards and commercial item descriptions, fpmr part 10129. as prescribed in 11.204a, insert the following provision: availability', 31034:'of specifications listed in the gsa index of federal specifications, standards and commercial item descriptions, fpmr part 10129 sep 2023', 31035:'a the gsa index of federal specifications, standards and commercial item descriptions, fpmr part 101–29, and copies of federal specifications,', 31036:'standards, and product descriptions can be downloaded from the assist website at https:// assist.dla.mil. b if the general services administration,', 31037:'departmentof agriculture, or department of veterans affairs issued this solicitation, a copy of specifications, standards, and commercial item descriptions cited', 31038:'in this solicitation may be obtained from the assist website identified in paragraph a of this provision. end of provision', 31039:'52.2112 availability of defense specifications, standards, and data item descriptions in the acquisition streamlining and standardization information system assist website.', 31040:'as prescribed in 11.204b, insert the following provision: availability of defense specifications, standards, and data item descriptions in the acquisition', 31041:'streamlining and standardization information system assist website sep 2023 a most unclassified defense specifications and standards may be downloaded from', 31042:'the assist website at https:// assist.dla.mil. b defense documents notavailablefrom assist may berequested from thedefense standardization program office by —', 31043:'1 using the assist feedback module https://assist.dla.mil/feedback ; or 2 contacting the defense standardizationprogram office by telephone at571–767–6888 oremail at', 31044:'assisthelp@dla.mil. end of provision 52.2113 availability of specifications not listedin thegsa index of federal specifications, standards and commercial item descriptions.', 31045:'as prescribed in 11.204c, insert a provision substantially the same as the following: availability of specifications not listed in the', 31046:'gsa index of federal specifications, standards and commercial item descriptions june 1988 the specifications cited in this solicitation may be', 31047:'obtained from: activity address telephone number person to be contacted 52.2114 federal acquisition regulation the requestshouldidentify the solicitation number and', 31048:'the specification requested by date,title, andnumber, as cited in the solicitation. end of clause 52.2114 availability for examination of specifications', 31049:'not listed in the gsa index offederal specifications, standards and commercial item descriptions. as prescribed in 11.204d, insert a provision', 31050:'substantially the same as the following: availability for examination of specifications not listed in the gsa index of federal specifications,', 31051:'standards and commercial item descriptions june 1988 activity complete address telephone number person to be contacted times for viewing end', 31052:'of clause 52.2115 material requirements. as prescribed in 11.302 , insert the following clause: material requirements aug 2000 a definitions.', 31053:'as used in this clause new means composed of previouslyunused components, whether manufactured from virgin material, recovered material in the', 31054:'form of raw material, or materials and byproducts generated from, and reused within, an original manufacturing process; provided that thesupplies', 31055:'meet contract requirements, including butnot limited to, performance, reliability, and life expectancy. reconditioned means restored to the original normal operating', 31056:'condition by readjustments and material replacement. recovered material means waste materials and byproducts recovered or diverted from solid waste, but', 31057:'the term does not include those materials and byproducts generated from, and commonly reused within, an original manufacturing process. remanufactured', 31058:'means factory rebuilt to original specifications. virgin material means 1 previously unused raw material, including previouslyunused copper, aluminum,lead, zinc, iron,', 31059:'other metal or metal ore; or 2 any undeveloped resource that is, or with new technology will become, a source', 31060:'of raw materials. b unlessthis contractotherwise requires virgin materialor suppliescomposed of ormanufactured from virgin material, thecontractor shall provide supplies that', 31061:'are new,reconditioned, or remanufactured, as defined in thisclause. c a proposal to provide unused former government surplus property shall include', 31062:'a complete description of the material, thequantity, the name ofthe government agency fromwhich acquired, and the date of acquisition. d', 31063:'a proposal to provide used, reconditioned, or remanufactured supplies shall include a detailed description of such supplies and shall be', 31064:'submittedto thecontracting officer for approval. subpart 52.2 text of provisions and clauses 52.2118 e used, reconditioned,or remanufactured supplies,or unused former', 31065:'government surplus property, may be used in contract performance if thecontractor has proposedthe use of suchsupplies, and the contractingofficer has', 31066:'authorized their use. end of clause 52.2116 brand name or equal. as prescribed in 11.107a, insert the following provision: brand', 31067:'name or equalaug 1999 a if an item in this solicitation is identified as brand name or equal, the purchase', 31068:'description reflects the characteristics and level of quality thatwill satisfy the government’s needs. thesalientphysical, functional, or performancecharacteristics that equal products', 31069:'must meet are specified in the solicitation. b to be consideredforaward, offers of equal products, including equal products of the', 31070:'brand namemanufacturer, must 1 meet the salient physical, functional, or performance characteristic specified in this solicitation; 2 clearly identify the', 31071:'item by i brand name, if any; and ii make or model number; 3 include descriptive literature such as illustrations,', 31072:'drawings, or a clear reference to previously furnished descriptive dataor information available to the contracting officer; and 4 clearly describe', 31073:'any modifications the offeror plans to make ina productto make it conform to the solicitation requirements. mark any descriptive material', 31074:'to clearly show the modifications. c thecontracting officer will evaluate equal products on the basis of information furnished by the', 31075:'offeror or identified in the offer and reasonably available to the contracting officer. the contracting officer is not responsible for', 31076:'locating or obtainingany informationnot identifiedin the offer. d unlessthe offeror clearly indicates in its offerthat the product being offeredis an', 31077:'equal product, the offerorshall provide the brand name product referenced in the solicitation. end of provision 52.2117 alternatives to governmentunique', 31078:'standards. as prescribed in 11.107b, insert the following provision: alternatives to governmentunique standards nov 1999 a this solicitation includes governmentuniquestandards.', 31079:'the offerormay propose voluntary consensus standards that meetthe government’s requirements as alternatives to the governmentunique standards. the government will accept', 31080:'use of the voluntary consensus standard instead of the governmentunique standard if it meets the government’s requirements unless inconsistent with', 31081:'law or otherwise impractical. b if an alternative standard is proposed, theofferor must furnish data and/or information regardingthe alternative in', 31082:'sufficient detail for the government todetermine if it meets the government’s requirements. acceptance of the alternative standard is a unilateral', 31083:'decision made solely at the discretion of the government. c offers that do not comply with the governmentunique standards specified', 31084:'in this solicitation may be determinedto benonresponsiveor unacceptable. the offerormay submit an offer that complies withthe governmentuniquestandards specified in this', 31085:'solicitation, in addition to any proposed alternative standards. end of provision 52.2118 time of delivery. as prescribed in 11.404a2, insert', 31086:'the following clause: 52.2118 federal acquisition regulation time of delivery june 1997 a the government requires delivery to be made', 31087:'according to the following schedule: required delivery schedule [contracting officer insert specific details] item no. quantity within days after date', 31088:'of contract the government will evaluate equally, as regards time of delivery, offers that propose delivery of each quantitywithin theapplicable', 31089:'delivery periodspecified above. offers that proposedelivery that will not clearly fall withinthe applicable required delivery period specified above, will be', 31090:'considered nonresponsive and rejected. the government reserves the right to award under either the required delivery schedule or the proposed', 31091:'delivery schedule,when an offeror offers an earlier delivery schedule than required above. if theofferor proposes no other delivery schedule, the', 31092:'required delivery schedule above will apply. offeror’s proposed delivery schedule item no. quantity within days after date of contract b', 31093:'attention is directedto thecontract award provision of the solicitation that provides thata written award or acceptance of offer mailed, orotherwise', 31094:'furnished to thesuccessfulofferor,results in a binding contract. the government will mail or otherwise furnishto the offeror an award or notice', 31095:'ofaward not later than the day award is dated. therefore, theofferor should compute the time available for performance beginning with', 31096:'the actual dateof award, rather than the date thewritten notice ofaward is received fromthe contracting officerthroughthe ordinary mails. however,the government', 31097:'will evaluate an offer thatproposesdelivery basedon the contractor’s date of receiptof the contract or noticeof award by adding 1 five', 31098:'calendar days for delivery of the award through the ordinary mails, or 2 one working day if the solicitation states', 31099:'that the contract or notice of awardwill be transmittedelectronically. theterm working day excludesweekends and u.s. federalholidays. if, as so computed,', 31100:'the offereddelivery dateis laterthan the required delivery date, the offer will be considered nonresponsive and rejected. end of clause alternate', 31101:'i apr 1984. if the delivery schedule is expressed in terms of specific calendar dates or specific periods and is', 31102:'basedon an assumed date of award, the contracting officer maysubstitute the followingparagraph b for paragraph b of the basic clause.', 31103:'the time may be expressed by substituting on or before; during the months ; or not sooner than or later', 31104:'than as headings for the third column of paragraph a the basic clause. b the delivery dates or specific periods', 31105:'above are based on the assumption that the government will make award by [contracting officer insert date]. each delivery date', 31106:'in the delivery schedule above will be extended by the number of calendar days afterthe above date that the contract', 31107:'is in fact awarded. attention is directedto thecontract award provision of the solicitation that provides that a writtenaward or acceptance', 31108:'of offer mailed or otherwise furnishedto the successful offeror results in a bindingcontract. therefore, theofferor should computethe time available for', 31109:'performance beginning with subpart 52.2 text of provisions and clauses 52.2119 theactual date of award, rather than the date the', 31110:'written notice of awardis receivedfrom the contractingofficer through the ordinary mails. alternate ii apr 1984. if the delivery schedule is', 31111:'expressed in terms of specific calendar dates or specific periods and is based on an assumed date the contractor will', 31112:'receive noticeof award, the contracting officer may substitute the following paragraph b for paragraph b of the basic clause. the', 31113:'time may be expressed by substituting within days after the date of receipt of a written notice of award as', 31114:'the heading for the third column of paragraph a of the basic clause. b the delivery dates or specificperiodsabove are', 31115:'based on the assumption thatthe successful offerorwill receive notice of award by [contracting officer insert date]. each delivery date in', 31116:'the delivery schedule above will be extended by the number of calendar days after the above date that the contractor', 31117:'receives notice of award; provided, that the contractor promptly acknowledges receipt of notice of award. alternate iii apr 1984. if', 31118:'the delivery schedule is to be based on the actual date the contractor receives a written notice of award, the', 31119:'contracting officer maydelete paragraph b of the basic clause. the time may be expressedby substituting within days after the date', 31120:'of receipt of a written notice of award as the heading for the third column of paragraph a of the', 31121:'basic clause. 52.2119 desired and requiredtime of delivery. as prescribed in 11.404a3, insert the following clause: desired and required time', 31122:'of delivery june 1997 a the government desires delivery to be made according to the following schedule: desired delivery schedule', 31123:'[contracting officer insert specific details] item no. quantity within days after date of contract if the offeroris unableto meet the', 31124:'desired delivery schedule, it may,without prejudicing evaluation ofits offer, propose a delivery schedule below. however, the offeror’s proposed delivery schedule', 31125:'mustnot extendthe delivery period beyond the time for delivery in the government’s required delivery schedule as follows: required delivery schedule', 31126:'[contracting officer insert specific details] item no. quantity within days after date of contract offers that propose delivery of a', 31127:'quantityunder suchterms orconditions that deliverywill not clearly fall within the applicable required delivery period specifiedabove, will be considered nonresponsive and', 31128:'rejected. ifthe offerorproposesno other deliveryschedule,the desired delivery schedule abovewill apply. offeror’sproposed deliveryschedule item no. quantity within days after date of', 31129:'contract 52.21110 federal acquisition regulation b attention is directedto thecontract award provision of the solicitation that provides thata written award', 31130:'or acceptance of offer mailed or otherwise furnishedto the successful offeror results in a binding contract. the government will mail', 31131:'or otherwise furnishto the offeror an award or notice ofaward not later than the day the award isdated. therefore, theofferor', 31132:'shall compute the time available for performance beginning with the actual dateof award, rather than the date thewritten notice ofaward', 31133:'is received fromthe contracting officerthroughthe ordinary mails. however,the government will evaluate an offer thatproposesdelivery basedon the contractor’s date of receiptof', 31134:'the contract or noticeof award by adding 1 five calendar days for delivery of the award through the ordinary mails,', 31135:'or 2 one working day if the solicitation states that the contract or notice of awardwill be transmittedelectronically. theterm working', 31136:'day excludesweekends and u.s. federalholidays. if, as so computed, the offereddelivery dateis laterthan the required delivery date, the offer will', 31137:'be considered nonresponsive and rejected. end of clause alternate i apr 1984. if the delivery schedule is expressed in terms', 31138:'of specific calendar dates or specific periods and is basedon an assumed date of award, the contracting officer maysubstitute the', 31139:'followingparagraph b for paragraph b of the basic clause. the time may be expressed by substituting on or before; during', 31140:'the months ; or not sooner than , or later than as headings for the third column of paragraph a', 31141:'of the basic clause. b the delivery dates or specific periods above are based on the assumption that the government', 31142:'will make award by [contracting officer insert date]. each delivery date in the delivery schedule above will be extended by', 31143:'the number ofcalendar days after theabove datethat the contractis in fact awarded. attention is directed tothe contractaward provisionof the solicitation', 31144:'thatprovides that awritten award oracceptance ofoffer mailed or otherwise furnished to the successful offeror results in a bindingcontract. therefore, theofferor', 31145:'shall computethe time available for performance beginning with the actual date of award, rather than the date the written notice', 31146:'of award is received from the contracting officer through the ordinary mails. alternate ii apr 1984. if the delivery schedule', 31147:'is expressed in terms of specific calendar dates or specific periods and is based on an assumed date the contractor', 31148:'receivesnotice of award, thecontracting officer may substitute thefollowing paragraph b for paragraph b of the basic clause. the time may', 31149:'be expressed by substituting within days after the date of receipt of a written notice of award as the heading', 31150:'of the third column of paragraph a of the basic clause. b the delivery dates or specificperiodsabove are based on', 31151:'the assumption thatthe successful offerorwill receive notice of award by [contracting officer insert date]. each delivery date in the delivery', 31152:'schedule above will be extended by the number of calendar days after the above date that the contractor receives notice', 31153:'of award; provided, that the contractor promptly acknowledges receipt of notice of award. alternate iii apr 1984. if the delivery', 31154:'schedule is to be based on the actual date the contractor receives a written notice of award, the contracting officer', 31155:'maydelete paragraph b of the basic clause. the time may be expressedby substituting within days after the date of receipt', 31156:'of a written notice of award as the heading of the third column of paragraph a of the basic clause.', 31157:'52.21110commencement, prosecution, andcompletion of work. as prescribed in 11.404b, insert the following clause in solicitations and contracts when a fixedprice', 31158:'construction contract is contemplated. the clause may be changed to accommodate the issuance of orders under indefinitedelivery contracts for construction.', 31159:'commencement, prosecution, and completion of work apr 1984 the contractor shall be required to a commence work under this contract', 31160:'within [contracting officer insert number] calendardays after the date the contractorreceives the noticeto proceed, b prosecute the work diligently, and', 31161:'c subpart 52.2 text of provisions and clauses 52.21113 complete the entire work ready for use not later than .', 31162:'the time stated for completion shall include final cleanup of the premises. the contracting officer shall specifyeither anumber of daysafter', 31163:'the date the contractorreceives the noticeto proceed, or a calendar date. end of clause alternate i apr 1984. if the', 31164:'completion date is expressed as a specific calendar date, computed on the basis of the contractor receiving the noticeto proceed', 31165:'bya certainday, add the following paragraph to the basic clause: the completion date is based on theassumption that the successful', 31166:'offeror willreceivethe notice to proceed by [contracting officer insert date]. the completion date will be extended by the number of', 31167:'calendar days after the above date that the contractor receives the notice to proceed, except to the extent that the', 31168:'delay in issuance of the notice to proceed results from the failure of the contractor to execute the contract and', 31169:'give the required performance and paymentbondswithin thetime specifiedin theoffer. 52.21111 liquidated damagessupplies, services, orresearch and development. as prescribed in 11.503a,', 31170:'insert the following clause in solicitations and contracts: liquidated damagessupplies, services, or research and development sept 2000 a if the', 31171:'contractor fails to deliver the supplies or perform the services within the time specified in this contract, the contractor shall,', 31172:'in place of actual damages, pay to the government liquidated damages of $ per calendar day of delay [contracting officer', 31173:'insert amount]. b if the government terminates this contract in whole or in part under the defaultfixedprice supply and service', 31174:'clause, the contractor is liable for liquidated damages accruing until the government reasonably obtains delivery or performance of similar supplies', 31175:'or services. these liquidated damages are in addition to excess costs of repurchase under the terminationclause. c thecontractor will not', 31176:'be charged with liquidated damages when thedelayin delivery or performanceis beyond the control and without the fault or negligence of', 31177:'the contractor as defined in the defaultfixedprice supply and service clause in this contract. end of clause 52.21112 liquidated damagesconstruction.', 31178:'as prescribed in 11.503b, insert the following clause in solicitations and contracts: liquidated damagesconstruction sept 2000 a if the contractor', 31179:'fails to complete the work within the time specified in the contract, the contractor shall pay liquidated damages to the', 31180:'government in the amount of [contracting officer insert amount] for each calendar day of delay until the work is completed', 31181:'or accepted. b if the government terminates the contractor’s rightto proceed, liquidated damages will continue to accrue until the work', 31182:'iscompleted. these liquidated damages arein addition to excesscosts of repurchaseunder thetermination clause. end of clause 52.21113time extensions. as prescribed in', 31183:'11.503c, insert the following clause: time extensions sept 2000 52.21114 federal acquisition regulation timeextensions for contract changes will depend upon', 31184:'the extent, if any,by which thechangescause delay in the completion of the various elements of construction. the change order granting', 31185:'the time extension may provide that the contract completion date will be extended only for those specific elements related to', 31186:'the changed work and that the remaining contract completion dates for all other portions of the work will not be', 31187:'altered. the change order also may provide an equitable readjustment of liquidated damages under the new completion schedule. end of', 31188:'clause 52.21114notice of priority rating fornational defense, emergency preparedness,and energyprogram use. as prescribed in 11.604a, insert the following provision: notice', 31189:'of priority rating for national defense, emergency preparedness, and energy program use apr 2008 any contract awarded as a result', 31190:'of this solicitation will be □ dx rated order; □ do rated order certified for national defense, emergencypreparedness, and energy', 31191:'program use under the defense priorities and allocations system dpas 15 cfr700, and the contractor will be required to follow', 31192:'all of the requirements of this regulation. [contracting officer check appropriate box.] end of provision 52.21115defense priorityand allocation requirements. as', 31193:'prescribed in 11.604b, insert the following clause: defense priority and allocation requirement apr 2008 this is a rated order certified', 31194:'for national defense,emergency preparedness, andenergy program use, and the contractor shall follow all the requirements of the defense priorities and', 31195:'allocations system regulation 15 cfr 700. end of clause 52.21116variation in quantity. as prescribed in 11.703a, insert the following clause:', 31196:'variation in quantity apr 1984 a a variation in the quantity of any item called for by this contract will', 31197:'not be accepted unless the variation has been caused by conditions of loading, shipping, or packing, or allowances in manufacturing', 31198:'processes, and then only to the extent, if any, specifiedin paragraph b of this clause. b the permissible variation shall', 31199:'be limited to: percent increase [contracting officer insert percentage] percent decrease [contracting officer insert percentage] this increase or decrease shall', 31200:'apply to . contracting officer shall insert in the blank the designations to which the percentages apply, such as 1', 31201:'the total contract quantity; 2 item1 only; 3 each quantity specified in the delivery schedule; 4 the total item quantity', 31202:'for each destination; or 5 the total quantity of each item without regard to destination. end of clause subpart 52.2', 31203:'text of provisions and clauses 52.21118 52.21117 delivery of excess quantities. as prescribed in 11.703b, insert the following clause: delivery', 31204:'of excess quantities sept 1989 the contractor isresponsibleforthe delivery of each item quantitywithin allowable variations, if any. if the contractor', 31205:'delivers and the government receives quantities of any item in excess of the quantity called for after considering any allowable', 31206:'variation in quantity, such excess quantities will be treated as being delivered for the convenience of the contractor. the governmentmay', 31207:'retain such excessquantities up to $250 in value without compensating the contractor therefor, and thecontractor waives all right, title, or', 31208:'intereststherein. quantities in excess of $250will, atthe option of the government, either be returned at the contractor’s expense or retained', 31209:'and paid for by the government at the contract unit price. end of clause 52.21118variation in estimated quantity. as prescribed', 31210:'in 11.703c, insert the following clause in solicitations and contracts when a fixedprice construction contract is contemplated that authorizes a', 31211:'variation in the estimated quantity of unitpriced items: variation in estimated quantity apr 1984 if the quantity of a unitpriced', 31212:'item in this contract is an estimated quantity and the actual quantity of the unitpriced item varies morethan 15 percent', 31213:'above orbelow the estimated quantity, an equitableadjustmentin the contractprice shall be made upon demand of eitherparty. the equitable adjustment shall', 31214:'bebased uponanyincrease or decreasein costs duesolely to the variation above115 percent or below85 percentof the estimated quantity. if the quantityvariation', 31215:'issuch as to cause an increase in the time necessary for completion, the contractor may request, in writing, an extension', 31216:'of time, to be received by the contractingofficer within 10 daysfrom the beginning of the delay, or within such further', 31217:'period asmay be granted by the contractingofficer before the date of final settlement of the contract. upon the receipt of', 31218:'a written request for an extension, the contracting officer shall ascertain the facts and make an adjustment for extendingthe completion', 31219:'date as, in thejudgement of thecontracting officer,is justified. end of clause this page intentionally left blank. 52.276 subpart 52.2 text', 31220:'of provisions and clauses 52.2121 52.212[reserved] 52.2121instructions to offerors—commercial products and commercial services. as prescribed in 12.301b1, insert the following', 31221:'provision: instructions to offerors—commercial products and commercial services sep 2023 a north american industry classification system naics code and small', 31222:'business size standard. the naics codes and small business sizestandards for this acquisitionappear elsewhere in the solicitation. however, the small', 31223:'businesssize standard for a concern that submitsan offer, otherthan on a construction or service acquisition, but proposes tofurnish an end', 31224:'item that it did not itself manufacture, process, or produce is 500 employees, or 150 employees for information technology valueadded', 31225:'resellers under naics code 541519, if the acquisition— 1 is set aside for small business and has a value above', 31226:'the simplified acquisition threshold; 2 uses the hubzone price evaluation preference regardless of dollar value, unless the offeror waives the', 31227:'price evaluation preference; or 3 is an 8a, hubzone, servicedisabled veteranowned, economically disadvantaged womenowned, or women owned small business setaside', 31228:'or solesource award regardless of dollar value. b submission of offers. submit signed and dated offers to the office specified', 31229:'in this solicitation ator before the exact time specified inthis solicitation. offers may be submitted on the sf 1449, letterhead', 31230:'stationery, or as otherwise specified in thesolicitation. as a minimum,offers must show— 1 the solicitation number; 2 the time specified', 31231:'in the solicitation for receipt of offers; 3 the name, address, and telephone number of the offeror; 4 a technical', 31232:'description of the items beingoffered in sufficientdetail to evaluate compliance with therequirements in the solicitation. this may include product literature,', 31233:'or other documents, if necessary; 5 terms of any express warranty; 6 price and any discount terms; 7 remit to', 31234:'address, if different than mailing address; 8 a completedcopy ofthe representations and certifications at federal acquisition regulation far 52.2123 see', 31235:'far 52.2123b for those representations and certifications thatthe offerorshallcomplete electronically; 9 acknowledgment of solicitation amendments; 10 past performance information,when included', 31236:'asan evaluation factor, to include recent and relevant contractsfor the same or similar items and other references including contract numbers,', 31237:'points of contact with telephone numbers and other relevant information; and 11 if theoffer is not submitted onthe sf 1449,', 31238:'include a statement specifying the extent of agreement with all terms, conditions, and provisions included in the solicitation. offers that', 31239:'fail tofurnish required representations or information, or reject the terms and conditions of the solicitation may be excluded from consideration.', 31240:'c period for acceptance of offers. the offeroragrees toholdthe pricesin itsoffer firm for 30 calendar days from thedate specified for', 31241:'receiptof offers, unless another time period is specifiedin anaddendum to the solicitation. d product samples. when required by the solicitation,', 31242:'product samples shall be submitted at or prior to the time specified for receipt ofoffers. unless otherwise specified in this', 31243:'solicitation, these samples shall besubmitted atno expense to the government, and returned at the sender’srequest and expense, unless they are', 31244:'destroyed during preaward testing. e multiple offers. offerors are encouraged tosubmit multiple offers presenting alternative terms and conditions, includingalternativelineitemsprovidedthatthealternativelineitemsareconsistentwithfar subpart', 31245:'4.10, or alternative commercial products orcommercial services for satisfying the requirementsof this solicitation. eachoffer submitted will be evaluated separately. f', 31246:'late submissions, modifications, revisions, andwithdrawals ofoffers. 1 offerors are responsible for submitting offers,andany modifications, revisions, or withdrawals, so as to', 31247:'reach the governmentoffice designated in the solicitation by the time specified in the solicitation. if no time is specified in', 31248:'the solicitation, the time for receipt is 4:30 p.m., local time, for thedesignated governmentoffice on thedate thatoffers or revisions are', 31249:'due. 2 ianyoffer,modification,revision,orwithdrawalofanofferreceivedatthegovernmentofficedesignatedinthe solicitation after the exact time specified for receipt of offers is late and will not be considered', 31250:'unless it is received before award is made,the contracting officerdeterminesthat accepting the late offer would not unduly delay theacquisition; and', 31251:'52.2121 federal acquisition regulation a if it was transmitted through an electronic commerce method authorized by the solicitation, it was', 31252:'received at the initial point of entry to the government infrastructure not later than 5:00 p.m. one working day prior', 31253:'to the date specified for receipt ofoffers; or b there is acceptable evidence to establish that it was received at', 31254:'the government installation designated for receipt ofoffers and wasunder thegovernment’s control priorto the time setforreceipt of offers; or c if', 31255:'this solicitation is a request for proposals, it was the only proposal received. iihowever, a late modification of anotherwise successful', 31256:'offer, that makes its terms more favorable to the government, will be considered at any time it is received and', 31257:'may be accepted. 3 acceptable evidence to establish the time of receipt at the government installation includes the time/date stamp', 31258:'of that installation on the offer wrapper, other documentary evidence ofreceipt maintained by the installation, ororal testimony or statements of', 31259:'government personnel. 4 if an emergency orunanticipated event interrupts normal governmentprocesses so that offerscannot be received at thegovernment office designated', 31260:'for receipt of offers by theexact timespecified in the solicitation, and urgentgovernment requirements preclude amendment of the solicitation or other', 31261:'notice of an extension of the closing date, the time specified for receipt ofoffers will be deemed to be extended', 31262:'to the same time ofday specified inthe solicitationon the first work day on which normal government processes resume. 5 offers', 31263:'may be withdrawn by writtennotice received at any time before the exact time set for receipt ofoffers. oral offers in', 31264:'response to oral solicitations may be withdrawn orally. ifthe solicitationauthorizesfacsimile offers, offers may be withdrawn via facsimile receivedat anytime before', 31265:'the exacttime set for receiptof offers, subject to the conditions specified in the solicitation concerning facsimileoffers. anoffer may be withdrawn', 31266:'in person by an offeror or its authorized representative if, before the exacttime set for receiptof offers, the identity of', 31267:'thepersonrequesting withdrawalis established and the personsigns a receiptforthe offer. g contract award not applicable to invitation for bids. thegovernment intends', 31268:'toevaluateoffers and awarda contract without discussionswith offerors. therefore, theofferor’s initial offer should contain the offeror’s best terms from aprice and', 31269:'technical standpoint. however, the government reservesthe right to conduct discussions if later determined by the contracting officerto benecessary. the government', 31270:'may rejectanyor all offers if suchaction is inthe public interest; accept other than the lowest offer; and waive informalities and', 31271:'minor irregularities inoffers received. h multiple awards. the government may acceptany item orgroup of items of an offer,unlessthe offerorqualifies the', 31272:'offer by specific limitations. unless otherwiseprovidedin theschedule, offers may not be submitted for quantities less than those specified. the government', 31273:'reserves the right to make an awardon any itemfora quantity lessthan the quantity offered, at the unit prices offered, unless', 31274:'the offeror specifies otherwisein theoffer. iavailability of requirements documents cited in thesolicitation. 1 i the gsa index of federal specifications,', 31275:'standards and commercial item descriptions, fpmr part 101–29, and copies of federal specifications, standards, and product descriptions can be downloaded', 31276:'from the assist website at https://assist.dla.mil. iiif the general servicesadministration, department of agriculture, or department of veterans affairsissuedthis solicitation, a', 31277:'copy of specifications, standards, and commercial item descriptions cited in this solicitation may be obtained from the address in paragraph', 31278:'i1i of this provision. 2 most unclassified defense specifications and standards may be downloaded from the assist website at https://', 31279:'assist.dla.mil. 3 defense documents not available from the assist website may be requested from the defense standardization program office by—', 31280:'i using the assist feedback module https://assist.dla.mil/feedback; or iicontacting the defense standardization program officeby telephone at 571–767–6688 or email at', 31281:'assisthelp@dla.mil. 4 nongovernment voluntary standards must be obtained from the organization responsible for their preparation, publication, or maintenance. j unique', 31282:'entity identifier.applies to all offers that exceed the micropurchase threshold,and offers at or below the micropurchase thresholdif the solicitation requires', 31283:'the contractorto beregisteredin the system for awardmanagement sam.the offeror shall enter,in the blockwith its name and addresson the cover page', 31284:'of itsoffer, the annotation unique entity identifier followed by the unique entity identifier thatidentifies theofferors name and address. the offeror', 31285:'also shall enter its electronic funds transfer eft indicator, if applicable. the eft indicator is afourcharacter suffix to theunique entity', 31286:'identifier. the suffix is assigned at the discretion of theofferorto establish additional sam records for identifying subpart 52.2 text of', 31287:'provisions and clauses 52.2123 alternativeeftaccountsseefar subpart 32.11forthesameentity. iftheofferordoesnothaveauniqueentityidentifier, it should contact the entity designated at www.sam.gov for unique entity identifier', 31288:'establishment directly to obtain one. the offeror should indicate that it is an offeror for a government contract when contacting', 31289:'the entitydesignated at www.sam.gov for establishingthe uniqueentity identifier. k [reserved] l debriefing. if a postaward debriefing is given torequesting offerors,', 31290:'thegovernmentshalldisclosethe following information, if applicable: 1 the agency’sevaluation of the significant weak or deficientfactors inthe debriefed offeror’s offer. 2 the', 31291:'overall evaluated cost or price and technical rating of the successful and the debriefed offerorandpast performanceinformationon the debriefed offeror. 3', 31292:'the overall rankingof all offerors,when any ranking was developed bythe agency during source selection. 4 a summary of the rationale', 31293:'for award; 5 for acquisitions of commercial products, the make and model of the product to be delivered by the', 31294:'successful offeror. 6 reasonableresponses to relevant questions posed by the debriefed offeror as to whether sourceselection procedures set forth in', 31295:'the solicitation,applicable regulations, and other applicable authorities were followed by the agency. end of provision 52.2122evaluation—commercial products and commercial services.', 31296:'as prescribed in 12.301c,thecontractingofficermayinsertaprovisionsubstantiallyasfollows: evaluation—commercial products and commercial services nov 2021 a thegovernment will award a contract resulting from this', 31297:'solicitation to the responsibleofferor whose offer conforming to the solicitation will be most advantageous to the government, price and other', 31298:'factors considered. the following factors shall beused toevaluateoffers: [contracting officer shall insert the significant evaluation factors, such as i technical', 31299:'capability of the item offered to meet the government requirement; ii price; iii past performance see far 15.304; and include', 31300:'them in the relative order of importance of the evaluation factors, such as in descending order of importance.] technical and', 31301:'past performance,when combined, are [contracting officer state, in accordance with far 15.304, the relative importance of all other evaluation factors,', 31302:'when combined, when compared to price.] b options.the government will evaluate offers for award purposes by addingthe total price for', 31303:'all options tothe total price for the basic requirement. the government maydetermine that an offer is unacceptable ifthe option prices', 31304:'are significantly unbalanced. evaluation of options shall not obligate the government to exercise the options. c a written notice of', 31305:'awardor acceptanceof an offer, mailed or otherwise furnished to the successful offeror within thetime for acceptance specified in the offer,', 31306:'shall result in a binding contract without further action by either party. before theoffer’s specified expiration time,the government may acceptan', 31307:'offer or part ofan offer, whether or not there are negotiations after its receipt, unless a written notice of withdrawal', 31308:'is received before award. end of provision 52.2123offerorrepresentations andcertifications—commercial productsand commercial services. as prescribed in 12.301b2, insert the following provision:', 31309:'offeror representations and certifications—commercial products and commercial services may 2024 the offeror shall complete only paragraph b of this provision', 31310:'if the offeror has completed the annualrepresentations and certification electronicallyin thesystemforawardmanagement sam accessed through https://www.sam.gov. if theofferor hasnot completed the', 31311:'annualrepresentations and certificationselectronically,the offeror shall complete only paragraphs c through v of this provision. 52.2123 federal acquisition regulation a definitions.', 31312:'as used in this provision— covered telecommunications equipment or services has the meaning provided in the clause 52.20425, prohibition on', 31313:'contracting for certain telecommunications and video surveillance services or equipment. economically disadvantaged womenowned small business edwosb concern means a small', 31314:'business concern that is at least51 percent directly andunconditionally owned by,andthe management and dailybusinessoperations ofwhich arecontrolled by,oneor more women who', 31315:'arecitizens of the unitedstates and whoare economically disadvantaged in accordance with 13 cfr part 127, and the concern is certified', 31316:'by sba or an approved thirdparty certifier in accordance with 13 cfr 127.300. it automatically qualifies as a womenowned small', 31317:'business eligible under the wosb program. forced or indentured child labor means all work or service— 1 exacted from any', 31318:'person under the age of 18 under the menace of any penalty for its nonperformance and for which theworker does', 31319:'not offer himself voluntarily; or 2 performed by any person under the age of 18 pursuant to a contract the', 31320:'enforcement of which can be accomplished by process or penalties. highestlevel owner means theentity thatowns orcontrolsan immediate owner of the', 31321:'offeror, or that owns or controls one or more entities that control an immediate owner of the offeror. no entity', 31322:'owns or exercisescontrol of the highest level owner. immediate owner means an entity, other than the offeror, that has direct', 31323:'control of the offeror. indicators of control include, but are not limited to, one or more of the following: ownership', 31324:'or interlocking management, identity of interests among family members, shared facilities and equipment, and the common use of employees. inverted', 31325:'domestic corporation, means a foreign incorporated entity that meets the definition of an inverted domestic corporation under 6 u.s.c. 395b,', 31326:'applied in accordance with the rules and definitions of 6 u.s.c. 395c. manufactured end product means any end product in', 31327:'product and service codes pscs 10009999, except— 1 psc 5510, lumber and related basicwood materials; 2 product or service group', 31328:'psg 87, agricultural supplies; 3 psg 88, live animals; 4 psg 89, subsistence; 5 psc 9410, crude grades of plant', 31329:'materials; 6 psc 9430, miscellaneous crude animal products, inedible; 7 psc 9440, miscellaneous crude agricultural and forestry products; 8 psc', 31330:'9610, ores; 9 psc 9620, minerals, natural and synthetic; and 10 psc 9630, additive metal materials. place of manufacture means', 31331:'the place where an end product is assembled out of components, or otherwise made or processed from raw materials into', 31332:'the finished product that is to be provided to the government. if a product is disassembled and reassembled, the place', 31333:'of reassembly is not the place of manufacture. predecessor means an entitythat isreplaced by a successor and includes any predecessors', 31334:'of the predecessor. reasonable inquiry has the meaning provided in the clause 52.20425, prohibition on contracting for certain telecommunications and', 31335:'videosurveillance services orequipment. restricted business operations means business operations in sudan that include power production activities, mineral extraction activities, oilrelated', 31336:'activities, or the production of military equipment, as those terms are defined in the sudan accountabilityand divestment act of2007 pub.', 31337:'l. 110174. restricted business operationsdo not include business operations that the person as that term is defined in section 2', 31338:'of the sudan accountability and divestment act of 2007 conducting the business can demonstrate— 1 are conducted under contract directly', 31339:'and exclusively with the regional government of southern sudan; 2 are conducted pursuant to specificauthorizationfrom the office of foreign assets', 31340:'control in thedepartment ofthe treasury, or are expressly exempted under federal law fromthe requirement tobe conducted undersuch authorization; 3 consist', 31341:'of providing goods or services to marginalized populationsof sudan; 4 consist of providing goods or services to an internationally recognized', 31342:'peacekeeping force or humanitarian organization; 5 consist of providing goods or services that are used only to promote health or', 31343:'education; or 6 have been voluntarily suspended.sensitive technology— sensitive technology— 1 means hardware, software, telecommunications equipment, or any other technology', 31344:'that is to be used specifically— subpart 52.2 text of provisions and clauses 52.2123 ito restrict the freeflow of unbiased', 31345:'information in iran; or iito disrupt, monitor, or otherwise restrict speech of the peopleof iran; and 2 does not include', 31346:'information or informational materials the export of which the president does not have the authorityto regulate or prohibit pursuant to', 31347:'section203b3of theinternational emergency economic powersact50 u.s.c. 1702b3. servicedisabled veteranowned small business sdvosb concern means a small business concern— 1 inotlessthan51percentofwhichisownedandcontrolledbyoneormoreservicedisabledveteransor,inthe', 31348:'case of any publicly owned business, not less than 51 percent of the stock of which is owned by one', 31349:'or more servicedisabled veterans; and ii the management and daily business operations of which are controlled by one or more', 31350:'servicedisabled veterans or, in the case of a servicedisabledveteran with permanent and severe disability, the spouse or permanent caregiver of', 31351:'such veteran; or 2 a small business concern eligible under the sdvosb program in accordance with 13 cfr part 128', 31352:'see subpart 19.14. 3 servicedisabled veteran, as used in this definition, means a veteran as defined in 38 u.s.c. 1012,', 31353:'with a disability that is service connected, as defined in 38 u.s.c. 10116, and who is registered in the beneficiary', 31354:'identification and records locator subsystem, or successor system that is maintained by the department of veterans affairs’ veterans benefits administration,', 31355:'as a servicedisabled veteran. servicedisabled veteranowned small business sdvosb concern eligible under the sdvosb program means an sdvosb concern that—', 31356:'1 effective january 1,2024, is designated inthe system for award management sam ascertifiedby the small business administration sba in accordance', 31357:'with 13 cfr 128.300; or 2 has represented that it is an sdvosb concern in sam and submitted a complete', 31358:'application for certification to sba on or before december 31, 2023. servicedisabled veteranowned small business sdvosb program means a program', 31359:'that authorizes contracting officers to limit competition, including award on a solesource basis, to sdvosb concerns eligible under the sdvosb', 31360:'program. small business concern— 1 means a concern, including itsaffiliates, that is independently owned and operated, not dominant inits field', 31361:'of operation, and qualified as a small business under the criteria in 13 cfr part 121 and size standards in', 31362:'this solicitation. 2 affiliates, as used in this definition, means business concerns, one of whom directly or indirectly controls or', 31363:'has the power to control the others, or a third party or parties control or have the power to control', 31364:'the others. in determining whether affiliationexists, consideration is given to all appropriate factors including commonownership, commonmanagement, and contractualrelationships. sbadeterminesaffiliation based', 31365:'onthe factors setforth at 13 cfr121.103. small disadvantaged business concern, consistent with 13 cfr 124.1001, means a small business concern', 31366:'under the size standard applicable to the acquisition, that— 1 is at least 51 percent unconditionally and directly owned as', 31367:'defined at 13 cfr 124.105 by— i one or more socially disadvantaged as defined at13 cfr 124.103 and economically disadvantaged', 31368:'as defined at 13 cfr 124.104 individuals who are citizens of the united states; and ii each individual claiming economic', 31369:'disadvantage has a net worth not exceeding the threshold at 13 cfr 124.104c2 after taking into account the applicable exclusions', 31370:'set forth at 13 cfr124.104c2; and 2 the management and daily business operations of which are controlled as defined at', 31371:'13.cfr 124.106 by individuals, who meet the criteria in paragraphs 1i and ii of this definition. subsidiary means an entity', 31372:'in which more than 50 percent of the entity is owned— 1 directly by a parent corporation; or 2 through', 31373:'another subsidiary of a parent corporation successor means an entity that hasreplaced a predecessor by acquiring the assets and carrying', 31374:'out the affairs of the predecessor under a new name oftenthroughacquisitionor merger. the term successor doesnot includenew offices/ divisions of', 31375:'the same company or a company that only changes its name. the extent of the responsibility of the successor for', 31376:'theliabilities of the predecessormay vary, depending on state law and specific circumstances. veteranowned small business concern means a small business', 31377:'concern— 1 not less than 51 percent of which is owned and controlled by one or more veterans as defined', 31378:'at 38 u.s.c. 1012 or, in the case of any publicly owned business, not less than 51 percent of thestock', 31379:'of which is owned by one or more veterans; and 52.2123 federal acquisition regulation 2 the management and daily business', 31380:'operations of which are controlled by one or more veterans. womenowned business concern means a concern which is at least', 31381:'51 percent owned by one or more women; or in the case of any publicly owned business, at least 51', 31382:'percent of its stock is owned by one or more women; and whose management and daily business operations are controlled', 31383:'by one or more women womenowned small business concern means a small business concern— 1 that is atleast 51 percent', 31384:'owned by one or more women; or, inthe case of any publicly owned business, at least51 percent of the stock', 31385:'of which is owned by one or more women; and 2 whose management and daily business operations are controlled by', 31386:'one or more women. womenowned small business wosb concern eligible under the wosb program in accordance with 13 cfr part', 31387:'127, meansa small businessconcern that is atleast 51 percent directly and unconditionally owned by, and the managementand daily business operations', 31388:'of which are controlled by, one or more women who are citizens of the united states,and the concern is certified', 31389:'by sba or an approved thirdparty certifier in accordance with 13 cfr 127.300. b 1 annual representations and certifications. any', 31390:'changes provided by theofferor in paragraph b2 of this provision do not automatically change the representations and certifications in sam.', 31391:'2 the offeror has completed the annualrepresentations and certificationselectronically in sam accessed through http://www.sam.gov. after reviewing sam information, the offeror', 31392:'verifies by submission of this offer that the representations and certifications currently posted electronically at far 52.2123, offeror representationsand certifications', 31393:'commercial products and commercial services, have been entered or updated in the last 12 months, are current, accurate, complete, and', 31394:'applicable to this solicitation including the business size standards applicable to the naics codes referenced for this solicitation, at the', 31395:'time this offeris submitted and areincorporated in this offer by referencesee far 4.1201, except for paragraphs . [offeror to identify', 31396:'the applicable paragraphs at c through v of this provision that the offeror has completed for the purposes of this', 31397:'solicitation only, if any. these amended representations and/or certifications are also incorporated in this offer and are current, accurate, and', 31398:'complete as of the date of this offer. any changes provided by the offeror are applicable to this solicitation only,', 31399:'and do not result in an update to the representations and certifications posted electronically on sam.] c offerors mustcomplete the', 31400:'followingrepresentations whenthe resulting contract is for supplies to be delivered or servicestobeperformedintheunitedstatesoritsoutlyingareas,orwhenthecontractingofficerhasapplied part 19 in accordance with 19.000b1ii. check all', 31401:'that apply. 1 small business concern.the offeror represents as part of its offer that— i it □ is, □ is', 31402:'not a small business concern; or ii it □ is, □ is not a small business joint venture that complies', 31403:'with the requirements of 13 cfr 121.103h and 13 cfr 125.8a and b. [ the offeror shall enter the name', 31404:'and unique entity identifier of each party to the joint venture: .] 2 veteranowned small business concern. [complete only if', 31405:'the offeror represented itself as a small business concern in paragraph c1 of this provision.] the offeror represents as partof', 31406:'its offer that it □ is, □ is not a veteranowned small business concern. 3 sdvosb concern. [complete only if', 31407:'the offeror represented itself as a veteranowned small business concern in paragraph c2 of this provision.] the offeror representsthat it', 31408:'□ is, □ is not an sdvosb concern. 4 sdvosb concern joint venture eligible under the sdvosb program. the offerorrepresents', 31409:'thatit □ is, □ is not an sdvosb joint venture eligible under the sdvosb program that complies with the requirements', 31410:'of 13 cfr 128.402. [complete only if the offeror represented itself as an sdvosb concern in paragraph c3 of this', 31411:'provision.] [the offeror shall enter the name and unique entity identifier of each party to the joint venture: .] 5', 31412:'small disadvantaged business concern. [complete only if the offeror represented itself as a small business concern in paragraph c1 of', 31413:'this provision.] the offerorrepresents that it □ is, □ is not a small disadvantaged business concern as defined in 13', 31414:'cfr 124.1001. 6 womenowned small business concern. [complete only if the offeror represented itself as a small business concern in', 31415:'paragraph c1 of this provision.] the offeror represents that it □ is, □ is not a womenowned small business concern.', 31416:'7 wosb joint venture eligible under the wosb program. the offeror represents that it □ is, □ is not a', 31417:'joint venture that complies with the requirements of 13 cfr 127.506a through c. [ the offeror shall enter the name', 31418:'and unique entity identifier of each party to the joint venture: .] subpart 52.2 text of provisions and clauses 52.2123', 31419:'8 economically disadvantaged womenowned small business edwosb joint venture. the offeror representsthat it □ is, □ is not a joint', 31420:'venture that complies with the requirements of 13 cfr 127.506a through c. [the offeror shall enter the name and unique', 31421:'entity identifier of each party to the joint venture: .] note to paragraphs c9 and 10: complete paragraphs c9 and', 31422:'10 only if this solicitation is expected to exceed the simplified acquisition threshold. 9 womenowned business concern other than small', 31423:'business concern. [complete only if the offeror is a women owned business concern and did not represent itself as a', 31424:'small business concern in paragraph c1 of this provision.] the offeror represents thatit □ is a womenowned business concern. 10', 31425:'tie bid priority for labor surplus area concerns. if this is an invitation for bid, small business offerors may identify', 31426:'thelaborsurplus areas in which costs tobe incurred on account of manufacturing or productionbyofferor or firsttier subcontractors amount to more than', 31427:'50 percent of the contract price: 11 hubzone small business concern. [complete only if the offeror represented itself as a', 31428:'small business concern in paragraph c1 of this provision.] the offeror represents, aspart of itsoffer, that– i it □ is,', 31429:'□ is not a hubzone small business concern listed, on the date of this representation, as having been certified by', 31430:'sba as a hubzone small business concern in the dynamic small business search and sam, and will attempt to maintain', 31431:'an employment rate of hubzone residents of 35 percent of its employees during performance of a hubzone contract see 13', 31432:'cfr 126.200e1; and ii it □ is, □ is not a hubzone joint venture that complies with the requirements of', 31433:'13 cfr 126.616a through c. [the offeror shall enter the name and unique entity identifier of each party to the', 31434:'joint venture: .] each hubzone small business concern participating in the hubzone joint venture shall provide representation of its hubzone', 31435:'status. d representationsrequired to implement provisions of executive order112461 previous contracts and compliance. the offeror represents that i it □', 31436:'has, □ has not participated in a previous contract or subcontract subject to the equal opportunity clause of this solicitation;', 31437:'and ii it □ has, □ has not filed all required compliance reports. 2 affirmative action compliance. theofferor representsthat i', 31438:'it □ has developed and has on file, □ has not developed and does not have on file, at each', 31439:'establishment, affirmative action programs required by rules and regulationsof the secretary of labor 41 cfr parts 601 and 602, or', 31440:'ii it □ has notpreviously had contracts subject to the writtenaffirmativeaction programs requirement of the rules and regulations of the', 31441:'secretary of labor. e certification regarding payments to influence federal transactions 31 http://uscode.house.gov/ u.s.c. 1352. applies onlyif the contractis expectedto', 31442:'exceed $150,000. by submissionof its offer, the offeror certifies to the best of its knowledge and belief that no federal', 31443:'appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officeror', 31444:'employee of anyagency,a member ofcongress, anofficer or employee of congress or an employee of a member of congress on his', 31445:'or her behalf in connection with the award of any resultant contract. if any registrants under the lobbying disclosure act', 31446:'of1995 have made a lobbying contact on behalf of the offeror with respect to this contract, the offerorshallcomplete and submit,', 31447:'withits offer, omb standard form lll,disclosureof lobbying activities, to provide thename of the registrants. the offeror need not reportregularly employed', 31448:'officers or employees of the offeror to whom payments ofreasonable compensationwere made. f buy american certificate. applies only ifthe clause', 31449:'atfederal acquisition regulation far 52.2251, buy americansupplies, is included in this solicitation. 1 itheofferorcertifiesthateachendproduct,exceptthoselistedinparagraphf2ofthisprovision,isa domestic end product and that each', 31450:'domestic end product listed in paragraph f3 of this provision contains a critical component. iithe offeror shall list asforeign end', 31451:'products those end products manufacturedin theunited statesthat do not qualify as domestic end products. for those foreign end products that', 31452:'do not consist wholly or predominantly of iron or steel or a combination of both, theofferor shall alsoindicate whether theseforeign', 31453:'end products exceed55 percent domestic content, except for those that are cots items. if the percentage of the domestic content', 31454:'is unknown, select “no”. iii the offeror shall separately list the line item numbers of domestic end products that contain', 31455:'acritical component see far 25.105. iv the terms “commercially availableofftheshelf cots item,” “critical component,” “domestic end product,” end product, foreign', 31456:'end product, and united states are defined in the clause of this solicitation entitled buy americansupplies. 52.2123 federal acquisition regulation', 31457:'2 foreign end products: line item no. country of origin exceeds 55% domestic content yes/no [list as necessary] 3 domestic', 31458:'end products containing a critical component: line item no. [list as necessary] 4 the government will evaluate offers in accordance', 31459:'with the policies and procedures of far part 25. g 1 buy americanfree trade agreementsisraeli trade act certificate. applies only', 31460:'if theclause at far 52.2253, buy americanfree trade agreementsisraeli trade act, is included in thissolicitation. i atheofferorcertifiesthateachendproduct,exceptthoselistedinparagraphg1iioriiiofthis provision, is a', 31461:'domestic end product and that each domestic end product listed in paragraph g1iv of this provision contains a critical component.', 31462:'b the terms bahraini, moroccan, omani, panamanian, or peruvian end product, commercially available off theshelf cots item, criticalcomponent, domesticendproduct, end', 31463:'product, foreign end product, free trade agreement country, free trade agreement country end product, israeli end product, and united states', 31464:'are defined in theclause ofthis solicitation entitled buy americanfree trade agreementsisraeli trade act. iithe offeror certifies that the following supplies', 31465:'arefree trade agreement country end products other than bahraini, moroccan, omani, panamanian, or peruvian end products or israeli end products', 31466:'as defined in the clause of this solicitation entitled buy americanfree trade agreementsisraeli trade act. free trade agreementcountry end products', 31467:'other than bahraini, moroccan,omani, panamanian, orperuvian end products or israeli end products: line item no. country of origin [list as', 31468:'necessary] iii the offeror shall listthose supplies that are foreign end products otherthan those listed in paragraph g1ii of this', 31469:'provision as defined in the clause of thissolicitation entitled buy americanfree trade agreementsisraelitrade act. the offeror shall list as other', 31470:'foreign end products thoseendproducts manufactured in the united states that donot qualify as domestic end products. for those foreign end', 31471:'products that do not consist wholly or predominantly of iron or steel or a combination of both, theofferor shall alsoindicate', 31472:'whether theseforeign end products exceed55 percent domestic content, except for those that are cots items. if the percentage of the', 31473:'domestic content is unknown, select “no”. other foreign end products: line country of origin exceeds 55% domestic content yes/no item', 31474:'no. [list as necessary] subpart 52.2 text of provisions and clauses 52.2123 iv the offerorshalllist theline item numbers of domestic', 31475:'end products that contain a criticalcomponent see far 25.105. line item no. [list as necessary] v the government will evaluate', 31476:'offers inaccordancewiththepoliciesandproceduresoffar part 25. 2 buy americanfree trade agreementsisraeli trade act certificate, alternate ii. if alternate ii to the clause', 31477:'at far 52.2253 is included in this solicitation, substitute the following paragraph g1ii for paragraph g1ii of the basic provision:', 31478:'g1ii the offeror certifiesthat thefollowing supplies are israeli end products as definedin the clause of this solicitation entitled “buyamerican—free trade', 31479:'agreements—israeli trade act”: israeli end products: line item no. [list as necessary] 3 buy americanfree trade agreementsisraeli trade act certificate,', 31480:'alternate iii. if alternate iii to the clause at 52.2253 is included in this solicitation, substitute the following paragraphs g1ib', 31481:'and g1ii for paragraphs g1i b and g1ii of the basic provision: g1ib the terms “korean end product”, “commercially available', 31482:'offtheshelfcots item,” “critical component,” “domestic end product,” “end product,” “foreign end product,” “free trade agreement country,” “free trade agreement country', 31483:'end product,” “israeli end product,” and “united states” are defined in the clause of this solicitation entitled “buy american—free trade', 31484:'agreements—israeli trade act.” g1ii the offeror certifies thatthe following suppliesare korean end productsor israeliend products asdefined inthe clause of this', 31485:'solicitation entitled “buy american—free trade agreements—israeli trade act”: korean end products or israeli end products: line item no. country of', 31486:'origin [list as necessary] 4 trade agreements certificate.applies only if the clause at far 52.2255, trade agreements,is included in this', 31487:'solicitation. ithe offeror certifies that each end product, except those listed in paragraph g4ii of this provision,is a u.s.made or', 31488:'designated countryendproduct, as defined in the clause of thissolicitation entitled trade agreements. iithe offeror shall list as other end products', 31489:'those end products that are not u.s.made ordesignated country end products. other end products: line item no. country of origin', 31490:'[list as necessary] 52.2123 federal acquisition regulation iiithegovernmentwillevaluateoffersinaccordancewiththepoliciesandproceduresoffar part 25. for line items coveredby the wto gpa, the government will', 31491:'evaluate offers ofu.s.madeor designatedcountry end products without regard to the restrictionsof the buy american statute. the government will consider for', 31492:'awardonlyoffers of u.s.made or designated countryendproducts unless the contractingofficer determines that there are nooffers for such products or that the', 31493:'offers for suchproducts areinsufficient tofulfill the requirements of thesolicitation. h certification regarding responsibility matters executive order 12689. applies only if', 31494:'the contract value is expected to exceed thesimplified acquisition threshold. theofferor certifies, to the best of its knowledge and belief,', 31495:'that the offeror and/or any ofits principals– 1 □ are, □ are not presently debarred, suspended, proposed for debarment, or', 31496:'declared ineligible for the award of contracts by any federal agency; 2 □ have, □ have not, within a threeyear', 31497:'period preceding this offer, been convicted of or had acivil judgment rendered against them for: commission offraud or a criminal', 31498:'offense in connection with obtaining, attempting to obtain, or performing a federal, state or local government contract or subcontract; violation', 31499:'of federal or state antitrust statutes relating to the submission of offers; or commission ofembezzlement, theft, forgery, bribery, falsification or', 31500:'destruction of records, making false statements, tax evasion, violating federal criminal tax laws, or receiving stolen property; 3 □ are,', 31501:'□ are notpresentlyindictedfor, or otherwise criminallyor civilly charged by a government entity with, commission ofany of these offensesenumerated in paragraph', 31502:'h2 of thisclause; and 4 □ have, □ have not, within a threeyear period preceding this offer, been notifiedof any', 31503:'delinquent federaltaxes in an amount that exceeds the threshold at 9.1045a2 for which the liability remains unsatisfied. itaxes are considered', 31504:'delinquentif both of the followingcriteria apply: a the tax liability is finally determined. the liability is finally determined if it', 31505:'has been assessed. a liability is not finally determined if there is a pending administrative or judicial challenge. in the', 31506:'case of a judicial challenge to the liability, the liability isnot finally determined untilalljudicial appeal rights have been exhausted. b', 31507:'the taxpayer is delinquent in making payment. a taxpayer is delinquent if the taxpayer has failed to pay the tax', 31508:'liability when full payment was due and required. a taxpayer is not delinquent in cases where enforced collection action is', 31509:'precluded. ii examples. a the taxpayer has receiveda statutorynotice of deficiency, under i.r.c. §6212, which entitles thetaxpayer toseek tax court', 31510:'review of a proposed tax deficiency. this isnot adelinquent tax becauseitis not a final tax liability. should thetaxpayer seek tax', 31511:'court review,this will not bea final tax liability until the taxpayer has exercised all judicial appeal rights. b the irshas', 31512:'filed anotice of federal tax lien with respect to an assessed tax liability, and the taxpayer has been issued a', 31513:'notice underi.r.c. §6320 entitling the taxpayer to request a hearing with the irs officeof appealscontesting thelien filing, and to further', 31514:'appeal to the tax court if theirs determines tosustainthe lien filing. in the courseof the hearing, the taxpayer is entitled', 31515:'to contest the underlying tax liability because the taxpayer has had no prior opportunity to contest the liability. this is', 31516:'not a delinquent tax because it is nota final tax liability. should the taxpayer seek tax court review, this will', 31517:'notbe a final taxliability untilthe taxpayer has exercised all judicialappealrights. c the taxpayer has entered into an installment agreement pursuant', 31518:'to i.r.c. §6159. the taxpayer is making timely payments and is in full compliance with the agreement terms. the taxpayer', 31519:'is not delinquent because the taxpayer is not currently required to make full payment. d the taxpayer has filed for', 31520:'bankruptcy protection. the taxpayer is not delinquent because enforced collection action isstayed under11 u.s.c. §362the bankruptcy code. i certification regarding', 31521:'knowledge of child labor for listed end products executive order 13126. [the contracting officer must list in paragraph i1 any', 31522:'end products being acquired under this solicitation that are included in the list of products requiring contractor certification as to', 31523:'forced or indentured child labor, unless excluded at 22.1503b.] 1 listed end products. listed end product listed countries of origin', 31524:'2 certification. [if the contracting officer has identified end products and countries of origin in paragraph i1 of this provision,', 31525:'then the offeror must certify to either i2i or i2ii by checking the appropriate block.] subpart 52.2 text of provisions', 31526:'and clauses 52.2123 ❏ i the offeror will not supply any end product listed in paragraph i1 of this provision', 31527:'that was mined, produced, or manufactured in the corresponding country as listed for that product. ❏ ii the offeror may', 31528:'supply an end product listed in paragraph i1 of this provision that was mined, produced, or manufactured in the corresponding', 31529:'country as listed for that product. the offeror certifies that it has made a good faith effort to determine whether', 31530:'forced or indentured child labor was used to mine, produce, or manufacture any such end product furnished under this contract.', 31531:'on the basis of those efforts, the offeror certifies that it is not aware of any such use of child', 31532:'labor. j place of manufacture. does not apply unless the solicitation is predominantly for the acquisition of manufactured end products.', 31533:'for statistical purposes only, the offeror shall indicatewhetherthe place ofmanufacture of the end products it expects to provide in response', 31534:'to this solicitation is predominantly 1 □ inthe united states check this box if the total anticipated price of offered', 31535:'end products manufactured in the unitedstates exceeds the totalanticipated priceof offeredendproducts manufactured outside theunited states; or 2 □ outside the', 31536:'united states. k certificates regarding exemptions from the application of the service contract labor standards certification by the offeror as', 31537:'to its compliance with respectto the contractalso constitutes its certification asto complianceby its subcontractor if it subcontracts out the exempt', 31538:'services. [the contracting officer is to check a box to indicate if paragraph k1 or k2 applies.] ❏ 1 maintenance,', 31539:'calibration, or repair of certain equipment as described in far 22.10034c1. the offeror □ does □ does not certify that–', 31540:'i the items of equipment to be serviced under this contract are used regularly for other than governmental purposes and', 31541:'aresold ortraded bythe offerororsubcontractorin the case of an exempt subcontractin substantial quantities to the general public in the course of', 31542:'normal business operations; iithe services will be furnished at prices whichare, or arebased on, establishedcatalog or market prices see far', 31543:'22.10034c2ii for the maintenance, calibration, or repair of such equipment; and iii the compensation wage and fringe benefits plan for', 31544:'all service employees performing work under the contract will be the same as that used for these employees and equivalent', 31545:'employees servicing the same equipment of commercial customers. ❏ 2 certain services as described in far 22.10034d1. the offeror □', 31546:'does □ does not certify that ithe services under the contractare offered and sold regularly to nongovernmental customers, andare provided', 31547:'by the offeror or subcontractor in the case of an exempt subcontract to the general public insubstantial quantities in the', 31548:'course of normal business operations; ii the contract services will be furnished at prices that are, or are based on,', 31549:'established catalog or market prices see far 22.10034d2iii; iii each service employee who will perform the services under the contract', 31550:'will spend only a small portion of his or her time a monthly average of less than 20 percent of', 31551:'the available hours on an annualized basis, or less than 20 percent of available hours during the contract period if', 31552:'the contract period is less than a month servicing the government contract; and iv the compensation wage and fringe benefits', 31553:'plan for all service employees performing work under the contract is the same as that used for these employees and', 31554:'equivalent employees servicing commercial customers. 3 if paragraph k1 or k2 of this clause applies– iif the offeror does not', 31555:'certify to the conditionsin paragraph k1 or k2 andthe contracting officerdid not attacha service contract labor standards wagedeterminationto the solicitation,', 31556:'theofferor shall notify the contracting officer as soon as possible; and iithe contracting officer maynot make an awardto theofferor if', 31557:'the offeror fails toexecutethe certification in paragraph k1 or k2 of this clauseor to contact the contracting officer asrequired in', 31558:'paragraph k3i of this clause. l taxpayer identification number tin 26 u.s.c. 6109, 31 u.s.c. 7701. not applicable ifthe offeroris', 31559:'required to provide this information to the sam to be eligible for award. 1 all offerors must submitthe information required', 31560:'in paragraphs l3throughl5 of this provision tocomply with debt collection requirements of 31 u.s.c. 7701c and 3325d, reporting requirements of', 31561:'26 u.s.c. 6041, 6041a, and 6050m, and implementing regulations issued by the internal revenue service irs. 2 the tin may', 31562:'be used by the government to collect and report on any delinquent amounts arising out of the offeror’s relationship with', 31563:'thegovernment31 u.s.c. 7701c3. if the resulting contract is subject to the payment reporting requirementsdescribed in far 4.904, the tin provided', 31564:'hereunder may be matched with irs records to verify the accuracyof the offeror’stin. 52.2123 federal acquisition regulation 3 taxpayer identification', 31565:'number tin. ❏ tin: . ❏ tin has been applied for. ❏ tin is not required because: ❏ offeror is', 31566:'a nonresident alien,foreign corporation, or foreign partnership that doesnot have incomeeffectively connected with the conduct of a trade orbusinessin the', 31567:'united states and does nothavean office orplace of business ora fiscal paying agent in the united states; ❏ offeror is', 31568:'anagency or instrumentality of a foreigngovernment; ❏ offeror is anagency or instrumentality of the federal government. 4 type of organization.', 31569:'❏ sole proprietorship; ❏ partnership; ❏ corporate entity not taxexempt; ❏ corporate entity taxexempt; ❏ government entity federal, state, or', 31570:'local; ❏ foreign government; ❏ international organization per 26cfr1.60494; ❏ other . 5 common parent. ❏ offeror is not owned', 31571:'orcontrolled by a common parent; ❏ name and tin of common parent: name . tin . m restricted business operations', 31572:'in sudan. by submission of its offer, theofferor certifies thatthe offerordoes not conduct any restricted business operations in sudan. n', 31573:'prohibition on contracting with inverted domestic corporations. 1 government agencies are not permitted to use appropriated or otherwise made available', 31574:'funds for contracts with either an inverted domestic corporation, or a subsidiary of an inverted domestic corporation, unless the exception', 31575:'at 9.1082b applies or the requirement is waived in accordance with the procedures at 9.1084. 2 representation. the offeror represents', 31576:'that– i it □ is, □ is not an inverted domestic corporation; and ii it □ is, □ is not', 31577:'a subsidiary of an inverted domestic corporation. o prohibition on contracting with entities engaging in certain activities or transactions relating', 31578:'to iran. 1 the offeror shall email questions concerning sensitive technology to the department of state at cisada106@state.gov. 2 representation', 31579:'and certifications. unless a waiver is granted or an exception applies as provided in paragraph o 3 of this provision,', 31580:'by submissionof its offer, the offeror irepresents, to thebest of its knowledge and belief,that theofferor does not exportanysensitive technologyto thegovernment', 31581:'of iran orany entities or individuals owned or controlled by, or acting onbehalf or atthe direction of, the government of', 31582:'iran; iicertifies thatthe offeror, or any person owned orcontrolled by theofferor,does not engage inanyactivities for which sanctions may be imposed', 31583:'under section 5 of the iran sanctions act; and iii certifies thatthe offeror, and any person owned or controlled by', 31584:'the offeror,does not knowingly engage in any transaction that exceedsthe threshold at far 25.7032a2 with iran’s revolutionary guard corps or', 31585:'any of its officials, agents, oraffiliates, the property and interests in property of whichare blocked pursuant to the international emergencyeconomic', 31586:'powers act etseq. see ofac’s specially designated nationals and blocked persons list at https:// www.treasury.gov/resourcecenter/sanctions/sdnlist/pages/default.aspx. 3 the representation and certification', 31587:'requirements of paragraph o2 of this provision do not apply if i this solicitation includes a trade agreements certification e.g.,', 31588:'52.2123g or a comparable agency provision; and iithe offeror has certified that all the offered products to be supplied are', 31589:'designated country end products. subpart 52.2 text of provisions and clauses 52.2123 p ownership or control of offeror. applies in', 31590:'all solicitations when there is a requirement to be registered in sam or a requirement to have a unique entity', 31591:'identifier in the solicitation. 1 the offeror represents that it □ has or □ does nothavean immediate owner. ifthe offeror', 31592:'has more than one immediate owner such asa joint venture, then the offerorshallrespond to paragraph 2 andif applicable, paragraph3of this', 31593:'provision for each participant in the joint venture. 2 if the offeror indicates has in paragraph p1 of this provision,enter', 31594:'the following information: immediate owner cage code: . immediate owner legal name: . do not use a doing business as', 31595:'name is the immediate owner owned or controlled by another entity: □ yes or □ no. 3 if the offeror', 31596:'indicates yes in paragraph p2 of this provision,indicating that the immediate owner is ownedor controlled byanother entity, then enter the', 31597:'following information: highestlevel owner cage code: . highestlevel owner legal name: . do not use a doing business as name', 31598:'q representation by corporations regarding delinquent tax liability or a felony conviction under any federal law. 1 as required by', 31599:'sections 744 and 745 of division e of the consolidated and further continuing appropriations act, 2015pub. l. 113235, and similar', 31600:'provisions, if contained in subsequentappropriations acts, the government will not enter into a contract with any corporation that– i has', 31601:'any unpaid federal tax liability that has been assessed, for which all judicial and administrative remedies have been exhausted or', 31602:'have lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority responsible', 31603:'for collecting thetax liability, where the awardingagency isaware of the unpaid tax liability, unless an agency has considered suspension or', 31604:'debarment of the corporation and made a determination that suspension or debarment is not necessary to protect the interests of', 31605:'the government; or iiwas convicted of a felony criminal violationunder any federallawwithin thepreceding 24 months, where the awarding agency is', 31606:'aware of the conviction, unless an agency has considered suspension or debarment of the corporation and made a determination that', 31607:'this action is not necessary to protect the interests of the government. 2 the offeror represents that– i it is', 31608:'□ is not □ a corporation that has any unpaid federal tax liability that has been assessed, for which all', 31609:'judicial and administrative remedies have been exhausted or have lapsed, and that is not being paid in a timely manner', 31610:'pursuant to an agreement with the authority responsible for collecting the tax liability; and ii it is □ is not', 31611:'□ a corporation that was convicted of a felony criminal violation under a federal law within the preceding 24 months.', 31612:'r predecessor of offeror. applies in all solicitations that include the provision at 52.20416, commercial and government entity code reporting.', 31613:'1 the offeror represents that it □ is or □ is not a successor to a predecessor that held a', 31614:'federal contract or grant within the last three years. 2 if the offeror has indicated is inparagraph r1of this provision,', 31615:'enter the followinginformationforall predecessors that held a federal contract or grant within the last three years if more than one', 31616:'predecessor, list in reverse chronological order: predecessor cage code: or mark unknown. predecessor legal name: . do not use a', 31617:'doing business as name. s [reserved]. t public disclosure of greenhouse gas emissions and reduction goals. applies in all solicitations', 31618:'that require offerors to register in sam 12.301d1. 1 this representation shall be completed if the offeror received $7.5 million', 31619:'or more in contractawards in the prior federalfiscalyear. the representation is optional if theofferor received less than $7.5 million in', 31620:'federal contract awardsin theprior federal fiscal year. 2 representation. [offeror to check applicable blocks in paragraph t2i and ii]. i', 31621:'the offeror itself or through its immediate owner or highestlevel owner □ does, □ does not publicly disclose greenhouse gas', 31622:'emissions, i.e., makesavailable on apublicly accessible website the results of a greenhouse gas inventory,performed in accordance with an 52.2123 federal', 31623:'acquisition regulation accounting standard with publicly available and consistently applied criteria, such as the greenhouse gas protocol corporate standard. iithe', 31624:'offeror itself or through itsimmediateowneror highestlevelowner □ does, □ does not publicly disclose a quantitative greenhouse gas emissions reduction goal,', 31625:'i.e.,makeavailable on apublicly accessible website a target toreduce absolute emissions or emissions intensity by a specific quantity or percentage. iii', 31626:'a publicly accessible websiteincludes the offerors own website or a recognized, thirdparty greenhouse gas emissions reporting program. 3 if the', 31627:'offeror checked does inparagraphs t2i or t2ii of this provision, respectively,the offeror shall provide the publiclyaccessible websites where greenhouse gas', 31628:'emissions and/or reduction goalsare reported:. u 1inaccordancewithsection743ofdivisione,titlevii,oftheconsolidatedandfurthercontinuing appropriations act, 2015pub. l. 113235 and its successor provisions in subsequent appropriations acts', 31629:'and as extended in continuing resolutions, government agencies are not permitted to use appropriated or otherwise made available funds for', 31630:'contracts with an entity that requires employees or subcontractors of such entity seeking to report waste, fraud, or abuse to', 31631:'sign internal confidentiality agreements or statements prohibiting or otherwise restricting such employees or subcontractors from lawfully reporting such waste, fraud,', 31632:'or abuse to a designated investigative or law enforcement representative of a federal department or agency authorized to receive such', 31633:'information. 2 the prohibition in paragraph u1 of this provision does not contravene requirements applicable to standard form 312 classified', 31634:'information nondisclosure agreement, form 4414 sensitive compartmented information nondisclosure agreement, or any other form issued by a federal department or', 31635:'agency governing the nondisclosure of classified information. 3 representation. by submission ofits offer, the offeror representsthat it will not require', 31636:'its employeesor subcontractors to sign or comply with internal confidentiality agreements or statements prohibiting or otherwise restricting such employees or', 31637:'subcontractors from lawfully reporting waste, fraud, or abuse related to the performance of a government contract to a designated investigative', 31638:'or law enforcement representative of a federal department or agency authorized to receive such information e.g., agency office of the', 31639:'inspector general. v covered telecommunications equipment or servicesrepresentation. section 889a1a and section 889 a1b of public law 115232. 1 the', 31640:'offeror shall review the list of excluded parties inthe system for award management sam https:// www.sam.gov for entities excluded from', 31641:'receiving federal awards for covered telecommunications equipment or services. 2 the offeror represents that– i it □ does, □ does', 31642:'notprovide covered telecommunications equipmentor services as apart of itsoffered products or services to the government in the performance of any', 31643:'contract, subcontract, or other contractual instrument. ii after conducting a reasonable inquiry for purposes of this representation, that it □', 31644:'does, □ does not use covered telecommunications equipment or services, or any equipment, system, or service that uses covered telecommunications', 31645:'equipment or services. end of provision alternate i feb 2024. as prescribed in 12.301b2, add the following paragraph c12 to', 31646:'the basic provision: 12 complete ifthe offeror hasrepresented itself as disadvantaged in paragraph c5 of thisprovision. □ black american. □', 31647:'hispanic american. □ native american american indians, eskimos, aleuts, or native hawaiians. □ asianpacific american persons with origins from burma,', 31648:'thailand, malaysia, indonesia, singapore, brunei, japan, china, taiwan, laos, cambodia kampuchea,vietnam, korea, the philippines,republic of palau, republic of the marshall', 31649:'islands, federated states of micronesia, the commonwealth of the northern mariana islands, guam, samoa, macao, hong kong, fiji, tonga, kiribati,tuvalu,', 31650:'or nauru. □ subcontinent asian asianindian american persons with origins from india, pakistan, bangladesh, sri lanka, bhutan, the maldives islands,', 31651:'or nepal. □ individual/concern, other than one of the preceding. subpart 52.2 text of provisions and clauses 52.2124 52.2124contractterms and', 31652:'conditions—commercial products andcommercial services. as prescribed in 12.301b3, insert the following clause: contract terms and conditions—commercial products and commercial services', 31653:'nov 2023 a inspection/acceptance. the contractor shall only tender for acceptance those items that conform to the requirements of this', 31654:'contract. the government reserves the right to inspect or test any supplies or services that have been tendered for acceptance.', 31655:'the government may require repair or replacement of nonconforming supplies or reperformance of nonconforming services at no increase in contract', 31656:'price. if repair/replacement or reperformance will not correct the defects or is not possible, the government may seek an equitable', 31657:'price reduction or adequate consideration for acceptance of nonconforming supplies or services. the government must exercise its postacceptance rights 1', 31658:'within areasonable time after the defect was discoveredor should have been discovered; and 2 before any substantial change occurs in', 31659:'the condition of the item, unless the change is due to the defect in the item. b assignment. the contractor', 31660:'or its assignee may assign its rights to receive payment due as a result of performance of this contract to', 31661:'abank, trust company,or other financing institution, includingany federal lending agency in accordance with the assignment of claims act 31 u.s.c.', 31662:'3727. however, when a third party makes payment e.g., use of the governmentwide commercial purchase card, the contractor may not', 31663:'assign its rights to receive payment under this contract. c changes. changes in the terms and conditions of this contract', 31664:'may be made only by written agreement of the parties. d disputes. this contract is subject to 41 u.s.c. chapter', 31665:'71, contract disputes. failure of the parties to this contract to reach agreement on any request for equitable adjustment, claim,', 31666:'appeal or action arising under or relating to this contract shall bea disputeto beresolvedin accordance with theclause at federalacquisition regulation', 31667:'far 52.2331, disputes, which is incorporated herein by reference. the contractor shall proceed diligently with performance of this contract, pending', 31668:'final resolution of any dispute arising under the contract. e definitions. the clause at far 52.2021, definitions, is incorporated herein', 31669:'by reference. f excusable delays. the contractor shall be liable for default unless nonperformance is caused by an occurrence beyond', 31670:'thereasonable control of the contractorand without its fault or negligence such as, acts of godor the public enemy, acts of', 31671:'the government ineither its sovereign or contractualcapacity, fires,floods,epidemics,quarantine restrictions, strikes, unusually severe weather, and delaysof common carriers. the contractor shall', 31672:'notify thecontracting officer inwriting as soonas it is reasonablypossible afterthe commencement of any excusable delay, setting forth the full particulars', 31673:'in connection therewith, shall remedy such occurrence with all reasonable dispatch, and shall promptly give written notice to the contracting', 31674:'officerof the cessation ofsuch occurrence. g invoice. 1 the contractor shall submit an original invoice and three copies or electronic', 31675:'invoice, if authorized to the address designated in the contract to receive invoices. an invoice must include i name and', 31676:'address of the contractor; ii invoice date and number; iii contract number, line item number and, if applicable,the ordernumber; iv', 31677:'description, quantity, unit of measure, unit priceandextended price of the items delivered; v shipping number and date of shipment, including', 31678:'the bill of lading number and weight of shipment if shipped on government bill of lading; vi terms of any', 31679:'discount for prompt payment offered; vii name and addressof official to whom paymentis to be sent; viii name, title, and', 31680:'phone number of person to notify in event of defective invoice; and ix taxpayeridentification numbertin. the contractorshallinclude its tin onthe', 31681:'invoice only if required elsewhere in this contract. x electronic funds transfer eft banking information. a the contractor shall include', 31682:'eft banking information on the invoice only if required elsewhere in this contract. b if eft banking information is not', 31683:'required to be on the invoice, in order for the invoice to be a proper invoice, the contractor shall have', 31684:'submitted correct eft banking information in accordance with the applicable solicitation provision, contract clause e.g., 52.23233,payment by electronic funds transfersystem', 31685:'for award management, or 52.23234, payment by electronic funds transferother than system for award management, or applicable agency procedures. c', 31686:'eft banking information is not required if the government waived the requirement to pay byeft. 52.2124 federal acquisition regulation 2', 31687:'invoices will be handled in accordance with the prompt payment act 31 u.s.c. 3903 and office of management and budget', 31688:'omb prompt payment regulations at 5 cfr part 1315. h patent indemnity. the contractor shall indemnify the government and its', 31689:'officers, employeesand agents against liability, includingcosts, for actual or alleged direct or contributory infringement of, orinducement to infringe,any united states', 31690:'or foreign patent, trademark or copyright, arising out of the performance of this contract, provided the contractor is reasonably notified', 31691:'of such claims and proceedings. i payment. 1 items accepted. payment shall be made for items accepted by the government', 31692:'that have been delivered to the delivery destinations set forth in this contract. 2 prompt payment. the government will make', 31693:'payment in accordance with the prompt payment act 31 u.s.c. 3903 and prompt payment regulations at 5 cfr part 1315.', 31694:'3 electronic funds transfer eft. if the government makes payment by eft, see 52.2125b for the appropriate eft clause. 4', 31695:'discount. in connection withany discount offered for earlypayment, timeshallbe computed from the date of the invoice. for the purpose of', 31696:'computing the discount earned, payment shall be considered to have been made on the date which appears on the payment', 31697:'check or the specified payment date if an electronic funds transfer payment is made. 5 overpayments. if the contractor becomes', 31698:'aware of a duplicate contract financing or invoice payment or that the government has otherwise overpaid on a contract financing', 31699:'or invoice payment, the contractor shall iremit the overpayment amount to the payment office cited in the contract alongwith a', 31700:'description of the overpayment including the a circumstances of the overpayment e.g., duplicate payment, erroneous payment, liquidation errors, dates of', 31701:'overpayment; b affected contract numberanddelivery order number,if applicable; c affected line item or subline item, if applicable; and d contractor', 31702:'point of contact. iiprovidea copy of the remittance and supporting documentationto thecontracting officer. 6 interest. i all amounts that become', 31703:'payable by the contractor to the government under this contract shall bear simple interest from the date due until paid', 31704:'unless paid within 30 days of becoming due. the interest rate shall be the interest rateestablished by the secretary of', 31705:'the treasuryas provided in 41 u.s.c. 7109, which is applicable to the period in which the amount becomes due, as', 31706:'provided in i6v of this clause, and then at the rate applicable for each sixmonth period as fixed by the', 31707:'secretary until the amount is paid. ii the government may issue a demand for payment to the contractor upon finding', 31708:'a debt is due under the contract. iii final decisions. thecontracting officer will issue a final decision as required by', 31709:'33.211 if– athe contracting officer and the contractor are unable toreachagreement on theexistence or amount of a debt within 30', 31710:'days; b the contractor fails to liquidate a debtpreviously demanded by the contractingofficer within the timeline specified in the demand', 31711:'for payment unless the amounts were not repaid because the contractor has requested an installment payment agreement; or c the', 31712:'contractor requests a deferment of collection on a debt previously demanded bythe contracting officer see 32.6072. iv if a demand', 31713:'for payment was previously issued for the debt, the demand for payment included in the final decision shall identify the', 31714:'same due date as the original demand for payment. v amounts shall be due at the earliest of the following', 31715:'dates: a the date fixed under this contract. b the date of the first written demand for payment, including any', 31716:'demand for payment resulting from a default termination. vi the interest charge shall be computed for the actual number of', 31717:'calendar daysinvolved beginning on the due date and ending on athe date on which the designated officereceives payment from the', 31718:'contractor; b the date of issuance of a government check to the contractor from which an amount otherwise payable has', 31719:'been withheld as a credit against the contract debt; or c the date on which an amount withheld and applied', 31720:'to the contract debt would otherwise have become payable to the contractor. subpart 52.2 text of provisions and clauses 52.2124', 31721:'vii theinterest charge madeunder this clause may be reduced under the procedures prescribedin far 32.6082 in effect on the date', 31722:'of this contract. j risk of loss. unless the contract specifically provides otherwise, risk of loss or damage to the', 31723:'supplies provided under this contract shall remain with the contractor until, and shall pass to the government upon: 1 delivery', 31724:'of the supplies to a carrier, if transportation is f.o.b. origin; or 2 delivery of the supplies to the government', 31725:'at the destination specified in the contract, if transportation is f.o.b. destination. k taxes. the contract price includes all applicable', 31726:'federal, state, and local taxes and duties. l termination for the government’s convenience. the government reserves the right to terminate', 31727:'this contract, or any part hereof, for its sole convenience. in the event of such termination, the contractor shall immediately', 31728:'stop all work hereunder and shall immediately cause any and all of its suppliers and subcontractors to cease work. subject', 31729:'to the terms of this contract, the contractor shall be paid a percentage of the contract price reflecting the percentage', 31730:'of the work performed priorto thenotice of termination, plus reasonable charges the contractor can demonstrate to the satisfactionof the government', 31731:'using its standard record keeping system, have resulted from the termination. the contractor shall not be required to comply with', 31732:'the cost accounting standards or contract cost principles for this purpose. this paragraph does not give the government any right', 31733:'toaudit the contractor’s records. the contractor shall not be paidforanywork performed or costs incurred which reasonably could have been avoided.', 31734:'m termination for cause. the government may terminate this contract, or any part hereof, for cause in the event of', 31735:'any default by the contractor, or if thecontractor fails to complywith anycontract terms and conditions, or fails to provide the', 31736:'government, upon request, with adequate assurances of future performance. in the event of termination for cause, the government shall not', 31737:'be liable to the contractor for any amount for supplies or services not accepted, and the contractor shall beliable to', 31738:'the government for any and all rights and remedies provided by law. if it is determined that the government improperly', 31739:'terminated this contract for default, such termination shall be deemed a termination for convenience. n title. unless specified elsewhere in', 31740:'this contract, title to items furnished under this contract shall pass to the government upon acceptance, regardless of when or', 31741:'where the government takes physical possession. o warranty. the contractor warrants and implies that the items delivered hereunder are merchantable', 31742:'and fit for use for the particular purpose described in this contract. p limitation of liability. except as otherwise provided', 31743:'byan expresswarranty, the contractor will notbe liableto the government for consequential damages resulting from any defect or deficiencies in accepted', 31744:'items. q other compliances. the contractor shall comply with all applicable federal, state and local laws, executive orders, rules and', 31745:'regulations applicable to its performance under this contract. r compliance with laws unique to government contracts. the contractor agrees to', 31746:'comply with 31 u.s.c. 1352 relating to limitations on the use of appropriated funds to influence certain federal contracts; 18', 31747:'u.s.c. 431 relating to officials not to benefit; 40 u.s.c. chapter 37, contract work hours and safety standards; 41 u.s.c.', 31748:'chapter 87, kickbacks; 49 u.s.c. 40118, fly american; and 41 u.s.c. chapter 21relatingto procurement integrity. s order of precedence. any', 31749:'inconsistencies in this solicitation or contract shall be resolved by giving precedence in the following order: 1 the schedule of', 31750:'supplies/services. 2 the assignments, disputes, payments, invoice, other compliances, compliance with laws unique to government contracts, and unauthorized obligations paragraphs', 31751:'of this clause; 3 the clause at 52.2125. 4 addenda to this solicitation or contract, including any license agreements for', 31752:'computer software. 5 solicitation provisions if this is a solicitation. 6 other paragraphs of this clause. 7 the standard form', 31753:'1449. 8 other documents, exhibits, and attachments. 9 the specification. t [reserved] u unauthorized obligations. 1 except as stated in', 31754:'paragraph u2 of this clause, when any supply or service acquired underthis contractis subject to any end user license agreement', 31755:'eula,terms ofservice tos, or similar legal instrument or agreement, that includes any clause requiring the government to indemnify the contractor', 31756:'or any person or entity for damages, costs, fees, or any other loss or liability that would create an antideficiency', 31757:'act violation 31 u.s.c. 1341, the following shall govern: 52.2124 federal acquisition regulation i any such clause is unenforceable against', 31758:'the government. ii neither the government nor any government authorized end user shall be deemed to have agreed to such', 31759:'clause by virtue ofitappearingin the eula, tos, or similar legalinstrument or agreement. if the eula, tos, or similar legal instrument', 31760:'or agreement is invoked through an i agree click box or other comparable mechanism e.g., clickwrap or browsewrap agreements, execution', 31761:'does not bind the government or any government authorized end user to such clause. iii any suchclause isdeemed to be', 31762:'strickenfrom the eula,tos, or similar legal instrumentor agreement. 2 paragraph u1 of this clause does not apply to indemnification by', 31763:'the government that is expressly authorized by statute and specifically authorized under applicable agency regulations and procedures. v incorporation by', 31764:'reference. the contractor’s representations and certifications, including those completed electronically via the system for awardmanagement sam, are incorporated by reference', 31765:'intothe contract. end of clause alternate i nov 2021. when a timeandmaterials or laborhour contract is contemplated, substitute the following', 31766:'paragraphs a, e, i, l, and m for those in the basic clause. a inspection/acceptance. 1 the government has the', 31767:'right to inspect and test all materials furnished and services performed under this contract, to the extent practicable at all', 31768:'places and times, including the period of performance, and in any event before acceptance. the government may also inspect the', 31769:'plant or plants of the contractor or any subcontractor engaged in contract performance. the government will perform inspections and tests', 31770:'in a manner that will not unduly delay the work. 2 if the government performsinspectionor testson the premises of the', 31771:'contractoror asubcontractor, thecontractor shall furnish and shall require subcontractors to furnish all reasonable facilities and assistance for the safe and', 31772:'convenient performance of these duties. 3 unless otherwise specified in the contract, the government will accept or reject services and', 31773:'materials at the place of delivery as promptly as practicable after delivery,andthey will be presumed accepted 60 daysafter the date', 31774:'of delivery, unless accepted earlier. 4 at any time during contract performance, but not later than 6 months or such', 31775:'other time as may be specified in the contract after acceptance of the services or materials last delivered under this', 31776:'contract, the government may require the contractor to replace or correct services or materials that at time of delivery failed', 31777:'to meet contract requirements. except as otherwise specified in paragraph a6 of this clause, the cost of replacement or correction', 31778:'shall be determined under paragraph i of this clause, but the hourly rate for labor hours incurred in the replacement', 31779:'or correction shall be reduced to exclude that portion ofthe rateattributable to profit. unless otherwisespecified below, the portionof the hourly', 31780:'rate attributable to profit shall be 10 percent. the contractor shall not tender for acceptance materials and services required to', 31781:'be replaced or corrected without disclosing the former requirement for replacement or correction, and, when required, shall disclose the corrective', 31782:'action taken. [insert portion of labor rate attributable to profit.] 5i if the contractor fails to proceed with reasonable promptness', 31783:'to perform required replacement or correction, and if the replacement or correction can be performed within the ceiling price or', 31784:'the ceiling price as increased by the government, the government may abycontract or otherwise, perform thereplacement or correction, chargeto thecontractor', 31785:'anyincreasedcost, or deduct such increased cost from any amounts paid or due under this contract; or b terminate this contract', 31786:'for cause. iifailure to agree to the amount of increased cost to be chargedto thecontractor shall be adispute under the', 31787:'disputes clause of the contract. 6 notwithstanding paragraphs a4 and 5 above, the government may at any time require the', 31788:'contractor to remedy by correction or replacement, without cost to the government, any failure by the contractor to comply with', 31789:'the requirements of this contract, if the failure is due to i fraud, lack of good faith, or willful misconduct', 31790:'on the part of the contractors managerial personnel; or iithe conduct ofoneor more of thecontractor’s employees selectedor retained by the', 31791:'contractor after anyof the contractor’smanagerial personnel hasreasonable groundsto believe that the employee is habitually careless or unqualified. 7 this clause', 31792:'applies in the same manner and to the same extent to corrected or replacement materials or services as to materials', 31793:'and services originally delivered under this contract. subpart 52.2 text of provisions and clauses 52.2124 8 the contractor has no', 31794:'obligation or liability under this contract to correct or replace materials and services that at time of delivery do not', 31795:'meet contract requirements, except as provided in this clause or as may be otherwise specified in the contract. 9 unless', 31796:'otherwise specified in the contract, the contractors obligation to correct or replace governmentfurnished property shall begoverned by the clause pertaining', 31797:'togovernment property. e definitions. 1 the clause at far 52.2021, definitions, is incorporated herein by reference. as used in this', 31798:'clause i direct materials means those materials that enter directly into the end product, or that are used or consumed', 31799:'directly in connection with the furnishing of the end product or service. ii hourly rate means the rates prescribed in', 31800:'the contract for payment for labor that meets the labor category qualifications of a labor category specified in the contract', 31801:'that are a performed by the contractor; b performed by the subcontractors; or c transferred between divisions, subsidiaries,or affiliates of', 31802:'the contractor undera commoncontrol. iii materials means adirect materials, including supplies transferred betweendivisions, subsidiaries, or affiliates ofthe contractor under a', 31803:'common control; b subcontracts for supplies and incidental services for which there is not a labor category specified in the', 31804:'contract; c other direct costs e.g., incidental services for which there is not a labor category specified in the contract,', 31805:'travel, computer usage charges, etc. ; d the following subcontracts for services which are specifically excluded from the hourly rate:', 31806:'[insert any subcontracts for services to be excluded from the hourly rates prescribed in the schedule. ]; and e indirect', 31807:'costs specifically provided for in this clause. iv subcontract meansanycontract,asdefinedinfar subpart 2.1, entered into with a subcontractor to furnish supplies', 31808:'or services for performance of the prime contract or a subcontract including transfers between divisions, subsidiaries, or affiliates of a', 31809:'contractor or subcontractor. it includes, but is not limitedto, purchase orders,andchangesand modifications to purchase orders. i payments. 1 work performed.', 31810:'the government will pay the contractor as follows upon the submission of commercial invoices approved by the contractingofficer: i hourly', 31811:'rate. a the amounts shall be computed by multiplying the appropriate hourly rates prescribed in the contract by the number', 31812:'of direct labor hours performed. fractional parts of an hour shall be payable on a prorated basis. b the rates', 31813:'shall be paid for all labor performed on the contract that meets the labor qualifications specified in the contract. labor', 31814:'hours incurred to perform tasks for which labor qualifications were specified in the contract will not be paid to the', 31815:'extent the work is performed by individuals that do not meet the qualifications specified in the contract, unless specifically authorizedby', 31816:'the contracting officer. c invoices may be submitted once each month or at more frequent intervals, if approved by the', 31817:'contracting officerto thecontracting officer or the authorized representative. dwhen requested by the contractingofficer orthe authorized representative,the contractor shall substantiate invoices', 31818:'including any subcontractor hours reimbursed at the hourly rate in the schedule by evidence of actual payment, individual daily job', 31819:'timecards, records that verify the employees meet the qualifications for the labor categories specified in the contract, or other substantiation', 31820:'specified in the contract. e unless the schedule prescribes otherwise, the hourly rates in the schedule shall not be varied', 31821:'by virtue of the contractor having performed work on an overtime basis. 1 if noovertime rates areprovidedin thescheduleand the contracting', 31822:'officer approves overtime work in advance, overtime rates shall be negotiated. 2 failure to agree upon these overtime rates shall', 31823:'be treated as a dispute under the disputes clause of this contract. 3 if the schedule provides rates for overtime,', 31824:'the premium portion of those rates will be reimbursable only to theextent the overtime is approved by the contractingofficer. ii', 31825:'materials. aif the contractor furnishes materials that meet the definition ofa commercial product at far 2.101, the price to be', 31826:'paid for such materialsshallnot exceedthe contractor’sestablished catalog ormarketprice,adjusted to reflectthe 52.2124 federal acquisition regulation 1 quantities being acquired; and 2', 31827:'any modifications necessary because of contract requirements. b except as provided for in paragraph i1iia and d2 of this clause,', 31828:'the government will reimburse the contractor the actual cost of materials less any rebates, refunds, or discounts received by the', 31829:'contractor that are identifiable to the contract provided the contractor 1 has made payments for materials in accordance with the', 31830:'terms and conditions of the agreement or invoice; or 2 makes these payments within 30 days of the submission ofthe', 31831:'contractor’spayment request to the government and such payment is in accordance with the terms and conditions of the agreement or', 31832:'invoice. c tothe extent able, the contractor shall 1 obtain materials at the most advantageous prices available with due regard', 31833:'to securing prompt delivery of satisfactory materials; and 2 give credit to the government for cash and trade discounts, rebates,', 31834:'scrap, commissions, and other amounts that are identifiable to the contract. d other costs. unless listed below, other direct and', 31835:'indirect costs will not be reimbursed. 1 other direct costs. the government will reimburse the contractor on the basis of', 31836:'actual cost for the following, provided such costs comply with the requirements in paragraph i1iib of this clause:[insert each element', 31837:'of other direct costs e.g., travel, computer usage charges, etc. insert none if no reimbursement for other direct costs will', 31838:'be provided. if this is an indefinite delivery contract, the contracting officer may insert each order must list separately the', 31839:'elements of other direct charges for that order or, if no reimbursement for other direct costs will be provided, insert', 31840:'‘none’.] 2 indirect costs material handling, subcontract administration, etc.. the government will reimburse the contractor for indirect costs on a', 31841:'prorata basis over the period of contract performance at the following fixed price:[insert a fixed amount for the indirect costs', 31842:'and payment schedule. insert $0 if no fixed price reimbursement for indirect costs will be provided. if this is an', 31843:'indefinite delivery contract, the contracting officer may insert each order must list separately the fixed amount for the indirect costs', 31844:'and payment schedule or, if no reimbursement for indirect costs, insert ‘none’.] 2 total cost. it is estimated that the', 31845:'total cost to the government for the performance of this contract shall not exceed theceiling price set forth inthe schedule', 31846:'and the contractoragrees touse its best efforts to perform theworkspecified in the schedule and all obligations under this contract within', 31847:'such ceiling price. if at any time the contractor has reason to believe that the hourly rate payments and material', 31848:'costs that will accrue in performing this contract in the next succeeding 30 days, if added to all other payments', 31849:'and costs previously accrued, will exceed 85 percent of the ceiling price in the schedule, the contractor shall notify thecontracting', 31850:'officer giving a revised estimate of the total price to the government for performing this contract with supporting reasons and', 31851:'documentation. if at any time during the performance of this contract, the contractor has reason to believe that the total', 31852:'price to the government for performing this contract will be substantially greateror less thanthe then stated ceiling price, the contractor', 31853:'shall so notify the contracting officer, giving a revised estimate of the total price for performing this contract, with supporting', 31854:'reasons and documentation. if at any time during performance of this contract, the government has reason to believe that the', 31855:'work to be required in performing this contract will besubstantially greater or less than thestatedceiling price, the contracting officer will', 31856:'so advise the contractor, giving the then revised estimate of the total amount of effort to be required under the', 31857:'contract. 3 ceiling price. the government will not be obligated to pay the contractor any amount in excess of the', 31858:'ceiling price in the schedule, and the contractor shall not be obligated to continue performance if to do so would', 31859:'exceed the ceiling price set forth in the schedule, unless and untilthe contracting officernotifies thecontractor in writing that the ceilingprice', 31860:'has been increased and specifies in the notice a revised ceiling that shall constitute the ceiling price for performance under', 31861:'this contract. when and to the extent that the ceiling price set forth in the schedule has been increased, any', 31862:'hours expended and material costs incurred by the contractor in excess of the ceiling price before the increase shall be', 31863:'allowable to the same extent as if the hours expended and material costs had been incurred after the increase in', 31864:'the ceiling price. 4 access to records. at any time before finalpayment underthiscontract, the contractingofficer or authorized representative will have', 31865:'access to the following access shall be limited to the listing below unless otherwise agreed to by the contractor and', 31866:'thecontracting officer: i records that verify that the employees whose time has been included in any invoice meet the qualifications', 31867:'for the labor categories specified in the contract; ii for labor hours including any subcontractor hours reimbursed at the hourly', 31868:'rate in the schedule, when timecards are required as substantiation for payment a the original timecards paperbased or electronic; subpart', 31869:'52.2 text of provisions and clauses 52.2124 b the contractor’s timekeeping procedures; c contractor records that show the distribution of', 31870:'labor between jobs or contracts; and d employees whose time has been included in any invoice for the purpose of', 31871:'verifying that these employees have worked the hours shown on the invoices. iii for material and subcontract costs that are', 31872:'reimbursed on the basis of actual cost a any invoices or subcontract agreements substantiating material costs; and b any documents', 31873:'supporting payment of those invoices. 5 overpayments/underpayments. each payment previously made shall be subject to reduction to the extent of', 31874:'amounts, on preceding invoices, that are foundby the contracting officer not tohavebeenproperlypayable and shall also be subject to reduction for', 31875:'overpayments or to increase for underpayments. the contractor shall promptly pay any such reduction within 30 days unless the parties', 31876:'agree otherwise. the government within 30 days will pay any such increases, unless theparties agree otherwise. the contractor’s payment will', 31877:'bemadeby check. if the contractor becomes aware of a duplicate invoice payment or that the government has otherwise overpaid on', 31878:'an invoice payment, the contractor shall iremit the overpayment amount to the payment office cited in the contract alongwith a', 31879:'description of the overpayment including the a circumstances of the overpayment e.g., duplicate payment, erroneous payment, liquidation errors, dates of', 31880:'overpayment; b affected contract numberanddelivery order number,if applicable; c affected line item or subline item, if applicable; and d contractor', 31881:'point of contact. iiprovidea copy of the remittance and supporting documentationto thecontracting officer. 6i all amounts that become payable by', 31882:'the contractor to the government under this contract shall bear simple interest from the date due until paid unless paid', 31883:'within 30 days of becoming due. the interest rate shall be the interest rate established by the secretaryof the treasury,as', 31884:'provided in 41 u.s.c. 7109, which is applicableto theperiod in which the amount becomes due, and then at the rate', 31885:'applicable for each six month period as established by the secretary until the amount is paid. ii the government may', 31886:'issue a demand for payment to the contractor upon finding a debt is due under the contract. iii final decisions.', 31887:'the contracting officerwill issue a final decisionas required by 33.211 if athe contracting officer and the contractor are unable toreachagreement', 31888:'on theexistence or amount of a debt in a timely manner; b the contractor fails to liquidate a debtpreviously demanded', 31889:'by the contractingofficer within the timeline specified in the demand for payment unless the amounts were not repaid because the', 31890:'contractor has requested an installment payment agreement; or c the contractor requests a deferment of collection on a debt previously', 31891:'demanded bythe contracting officer see far 32.6072. iv if a demand for payment was previously issued for the debt, the', 31892:'demand for payment included in the final decision shall identify the same due date as the original demand for payment.', 31893:'v amounts shall be due at the earliest of the following dates: a the date fixed under this contract. b', 31894:'the date of the first written demand for payment, including any demand for payment resulting from a default termination. vi', 31895:'the interest charge shall be computed for the actual number of calendar daysinvolved beginning on the due date and ending', 31896:'on athe date on which the designated officereceives payment from the contractor; b the date of issuance of a government', 31897:'check to the contractor from which an amount otherwise payable has been withheld as a credit against the contract debt;', 31898:'or c the date on which an amount withheld and applied to the contract debt would otherwise have become payable', 31899:'to the contractor. vii theinterest charge madeunder this clause may be reduced under the procedures prescribedin far 32.6082 in effect', 31900:'on the date of this contract. viii upon receipt and approval of the invoice designated by the contractor as the', 31901:'completion invoice and supporting documentation, and upon compliance by the contractor with all terms of this contract, any outstanding balances', 31902:'fac 202501 november 12, 2024 52.2125 federal acquisition regulation will be paid within 30 days unless the parties agree otherwise.', 31903:'the completion invoice, and supporting documentation, shall be submitted by the contractor as promptly as practicable following completion of the', 31904:'work under this contract, but in no event later than 1 yearorsuch longerperiod as the contracting officer mayapprovein writing from', 31905:'thedate of completion. 7 release of claims. thecontractor, and each assignee underan assignment entered into under this contract and in', 31906:'effect atthe time of final payment under this contract, shall execute and deliver,at the timeof and as a condition precedent', 31907:'to final payment under thiscontract, a release dischargingthe government, its officers, agents, and employees of and from all liabilities, obligations,', 31908:'and claims arising out of or under this contract, subject only to the following exceptions. i specified claims in stated', 31909:'amounts, or in estimated amounts if the amounts are not susceptible to exact statement by the contractor. ii claims, together', 31910:'with reasonable incidental expenses, based upon the liabilities of the contractor to third parties arising out of performing this contract,', 31911:'that are not known to the contractor on the date of the execution of the release, and of which the', 31912:'contractor gives noticein writing to thecontracting officer not more than 6 years afterthe dateof the release or thedate of any', 31913:'noticeto thecontractor that thegovernmentis prepared tomake final payment, whichever is earlier. iii claims for reimbursement of costs other than expenses', 31914:'of the contractor by reason of its indemnification of the government against patent liability, including reasonable incidental expenses, incurred by', 31915:'the contractor under the terms of this contract relating to patents. 8 prompt payment. the government will make payment in', 31916:'accordance with the prompt payment act 31 u.s.c. 3903 and prompt payment regulations at 5 cfr part 1315. 9 electronic', 31917:'funds transfer eft. if the government makes payment by eft, see 52.2125b for the appropriate eft clause. 10 discount. in', 31918:'connection with any discount offered for early payment,time shall be computed fromthe dateof the invoice. for the purpose of computing', 31919:'the discount earned, payment shall be considered to have been made on the date that appears on the payment check', 31920:'or the specified payment date if an electronic funds transfer payment is made. ltermination for thegovernment’s convenience. the government reserves', 31921:'the right to terminate this contract, or any part hereof, for its sole convenience. in the event of such termination,', 31922:'the contractor shall immediately stop all work hereunder and shall immediately cause any and all of its suppliers and subcontractors', 31923:'to cease work. subject to the terms of this contract, the contractor shall be paid an amount for direct labor', 31924:'hours as defined in the schedule of the contract determined bymultiplying the numberof direct labor hours expended before the effective', 31925:'date of termination bythe hourly ratesin thecontract, less any hourly rate payments alreadymadeto the contractorplus reasonable chargesthe contractor can demonstrate', 31926:'to the satisfaction of the government using its standard record keeping system that have resulted from the termination. the contractor', 31927:'shall not be required to comply with the cost accounting standards or contract cost principles for this purpose. this paragraph', 31928:'does not give thegovernment any right to audit the contractor’s records. the contractorshall not be paid for any work performed', 31929:'or costs incurred that reasonably could have been avoided. m termination for cause. the governmentmay terminate this contract, or any', 31930:'part hereof, for cause inthe event of any default by the contractor, or if thecontractor fails to complywith anycontract terms', 31931:'and conditions, or fails to provide the government, upon request, with adequate assurances of future performance. in the event of', 31932:'termination for cause, the government shall not be liable to the contractor for any amount for supplies or services not', 31933:'accepted, and the contractor shall beliable to the government for any and all rights and remedies provided by law. if', 31934:'it is determined that the government improperly terminated this contract for default, such termination shall be deemed a termination for', 31935:'convenience. 52.2125contractterms and conditions required toimplement statutes or executive orders—commercial productsand commercial services. as prescribed in 12.301b4, insert the following', 31936:'clause: contract terms and conditions required to implement statutes or executive orders—commercial products and commercial services nov 2024 a thecontractor', 31937:'shall comply with the following federal acquisition regulation far clauses, which are incorporated in this contract by reference, to implement', 31938:'provisions of law or executive orders applicable to acquisitions of commercial products and commercial services: 1 52.20319, prohibition on requiring', 31939:'certain internal confidentiality agreements or statements jan 2017 section 743 of division e, title vii,of the consolidatedandfurthercontinuing appropriations act, 2015pub.', 31940:'l. 113235 andits successor provisions in subsequent appropriations acts and as extended in continuing resolutions. subpart 52.2 text of provisions', 31941:'and clauses 52.2125 2 52.20423, prohibition on contracting for hardware, software, and services developed or provided by kaspersky lab covered', 31942:'entities dec 2023 section1634 of pub. l. 11591. 3 52.20425, prohibitionon contractingforcertain telecommunications andvideo surveillance servicesor equipment. nov 2021 section', 31943:'889a1a of pub. l. 115232. 4 52.20910, prohibition on contracting with inverted domestic corporations nov 2015. 5 52.23240, providing accelerated', 31944:'payments to small business subcontractors mar 2023 31 u.s.c. 3903 and 10 u.s.c. 3801. 6 52.2333,protestafterawardaug 1996 31 u.s.c. 3553.', 31945:'7 52.2334, applicable law for breach of contract claim oct 2004 public laws 10877 and 10878 19 u.s.c. 3805 note.', 31946:'b the contractor shall comply withthe far clauses inthisparagraph b that the contracting officer has indicatedas being incorporated in this', 31947:'contract by reference to implement provisions of law or executive orders applicable to acquisitions of commercial products and commercial services:', 31948:'[contracting officer check as appropriate.] 1 52.2036, restrictions on subcontractor sales to the government jun 2020, with alternate i nov', 31949:'2021 41 u.s.c. 4704 and 10 u.s.c. 4655. 2 52.20313, contractor code of business ethics and conduct nov 2021 41', 31950:'u.s.c. 3509. 3 52.20315, whistleblower protections under the american recovery and reinvestment act of 2009 jun 2010 section 1553 of', 31951:'pub. l. 1115. applies to contracts funded by the american recovery and reinvestment act of2009. 4 52.20317, contractor employee whistleblower', 31952:'rights nov 2023 41 u.s.c. 4712; this clause does not apply tocontracts of dod, nasa, the coast guard, or applicable', 31953:'elementsof the intelligence community—see far 3.900a. 5 52.20410, reporting executive compensation and firsttier subcontract awards jun 2020 pub. l. 109282', 31954:'31 u.s.c. 6101 note. 6 [reserved]. 7 52.20414, service contract reporting requirements oct 2016pub. l. 111117,section743ofdiv. c. 8 52.20415, service', 31955:'contract reporting requirements for indefinitedelivery contracts oct 2016 pub. l. 111117, section 743 of div. c. 9 52.20427, prohibition on', 31956:'a bytedance covered application jun 2023 section 102 of division r of pub. l. 117328. 10 52.20428, federal acquisition supply', 31957:'chain security act orders—federal supply schedules, governmentwide acquisition contracts, and multiagency contracts. dec 2023 pub. l. 115–390, title ii. 11', 31958:'i 52.20430, federal acquisition supply chain security act orders—prohibition. dec 2023 pub. l. 115– 390, title ii. ii alternate i', 31959:'dec 2023 of 52.20430. 12 52.2096,protectingthegovernment’sinterestwhensubcontractingwithcontractorsdebarred,suspended, or proposed for debarment. nov 2021 31 u.s.c. 6101 note. 13 52.2099,updatesofpubliclyavailableinformationregardingresponsibilitymattersoct 2018 41', 31960:'u.s.c. 2313. 14 [reserved]. 15 52.2193, notice of hubzone setaside or solesource award oct 2022 15 u.s.c. 657a. 16 52.2194,', 31961:'notice of price evaluation preference for hubzone small business concerns oct 2022 if the offeror elects to waive thepreference, it', 31962:'shall so indicate in its offer 15 u.s.c. 657a. 17 [reserved] 18 i 52.2196,noticeoftotalsmallbusinesssetasidenov 2020 15 u.s.c. 644. ii alternate', 31963:'i mar 2020 of 52.2196. 19 i 52.2197, notice of partial small business setaside nov 2020 15 u.s.c. 644. ii', 31964:'alternate i mar 2020 of 52.2197. 20 52.2198, utilization of small business concerns feb 2024 15 u.s.c. 637d2 and 3.', 31965:'21 i 52.2199, small business subcontracting plan sep 2023 15 u.s.c. 637d4. ii alternate i nov 2016 of 52.2199. iii', 31966:'alternate ii nov 2016 of 52.2199. iv alternate iii jun 2020 of 52.2199. 52.2125 federal acquisition regulation v alternate iv', 31967:'sep 2023 of 52.2199. 22 i 52.21913, notice of setaside of orders mar 2020 15 u.s.c. 644r. ii alternate i', 31968:'mar 2020 of 52.21913. 23 52.21914, limitations on subcontracting oct 2022 15 u.s.c. 657s. 24 52.21916, liquidated damages—subcontracting plan sep', 31969:'2021 15 u.s.c. 637d4fi. 25 52.21927,noticeofsetasidefor,orsolesourceawardto,servicedisabledveteranownedsmallbusiness sdvosb concerns eligible under the sdvosb program feb 2024 15 u.s.c. 657f. 26 i', 31970:'52.21928,postawardsmallbusinessprogramrerepresentationfeb 2024 15 u.s.c. 632a2. ii alternate i mar 2020 of 52.21928. 27 52.21929,noticeofsetasidefor,orsolesourceawardto,economicallydisadvantagedwomenowned small business concerns oct 2022 15', 31971:'u.s.c. 637m. 28 52.21930,noticeofsetasidefor,orsolesourceawardto,womenownedsmallbusinessconcerns eligible under the womenowned small business program oct 2022 15 u.s.c. 637m. 29 52.21932, orders issued', 31972:'directly under small business reserves mar 2020 15 u.s.c. 644r. 30 52.21933, nonmanufacturer rule sep 2021 15 u.s.c. 637a17. 31', 31973:'52.2223, convict labor jun 2003 e.o.11755. 32 52.22219, child laborcooperation with authorities and remedies feb 2024. 33 52.22221, prohibition of', 31974:'segregated facilities apr 2015. 34 i 52.22226, equal opportunity sep 2016e.o.11246. ii alternate i feb 1999 of 52.22226. 35 i', 31975:'52.22235, equal opportunity for veterans jun 2020 38 u.s.c. 4212. ii alternate i jul 2014 of 52.22235. 36 i 52.22236,equalopportunityforworkerswithdisabilitiesjun', 31976:'2020 29 u.s.c. 793. ii alternate i jul 2014 of 52.22236. 37 52.22237,employmentreportsonveteransjun 2020 38 u.s.c. 4212. 38 52.22240, notification', 31977:'of employee rights under the national labor relations act dec 2010 e.o. 13496. 39 i 52.22250, combating trafficking in persons', 31978:'nov 2021 22 u.s.c. chapter 78 and e.o. 13627. ii alternate i mar 2015 of 52.22250 22 u.s.c. chapter 78', 31979:'and e.o. 13627. 40 52.22254,employmenteligibilityverificationmay 2022 executive order 12989. not applicable to theacquisition of commercially available offtheshelf items or certain', 31980:'other types of commercial products orcommercial services as prescribed in far 22.1803. 41 i 52.2239,estimateofpercentageofrecoveredmaterialcontentforepa–designateditemsmay2008 42 u.s.c. 6962c3aii. not applicable', 31981:'to theacquisitionof commercially available offtheshelf items. ii alternate i may 2008 of 52.2239 42 u.s.c. 6962i2c. not applicable to the', 31982:'acquisition of commercially availableofftheshelf items. 42 52.22311,ozonedepletingsubstancesandhighglobalwarmingpotentialhydrofluorocarbonsmay 2024 42 u.s.c. 7671, et seq.. 43 52.22312,maintenance,service,repair,ordisposalofrefrigerationequipmentandairconditionersmay 2024 42 u.s.c. 7671, et', 31983:'seq.. 44 52.22320, aerosols may 2024 42 u.s.c. 7671, et seq.. 45 52.22321, foams may 2024 42 u.s.c. 7671, et', 31984:'seq.. 46 52.22323, sustainable products and services may 2024 e.o. 14057, 7 u.s.c. 8102, 42 u.s.c. 6962, 42 u.s.c. 8259b,', 31985:'and 42 u.s.c. 7671l. 47 i 52.2243privacytrainingjan 2017 5 u.s.c. 552 a. ii alternate i jan 2017 of 52.2243. 48', 31986:'i 52.2251, buy americansupplies oct 2022 41 u.s.c. chapter 83. ii alternate i oct 2022 of 52.2251. 49 i 52.2253,buyamericanfreetradeagreementsisraelitradeactnov', 31987:'2023 19 u.s.c. 3301 note, 19 u.s.c. 2112 note, 19 u.s.c. 3805 note, 19 u.s.c. 4001 note, 19 u.s.c. chapter', 31988:'29 sections 45014732, public law 103182,10877, 10878, 108286, 108302, 10953,109169, 109283, 110138, 11241, 11242, and 11243. ii alternate i [reserved].', 31989:'iii alternate ii dec 2022 of 52.2253. iv alternate iii feb 2024 of 52.2253. 52.2100 fac 202501 november 12, 2024', 31990:'subpart 52.2 text of provisions and clauses 52.2125 v alternate iv oct 2022 of 52.2253. 50 52.2255, trade agreements nov', 31991:'2023 19 u.s.c. 2501, et seq., 19 u.s.c. 3301 note. 51 52.22513, restrictions on certain foreign purchases feb 2021 e.o.’s,', 31992:'proclamations, and statutes administered by theoffice of foreignassets control of the departmentof the treasury. 52 52.22526, contractors performing private security', 31993:'functions outside the united states oct 2016 section 862, as amended, of the national defense authorization act for fiscal year', 31994:'2008;10 u.s.c. subtitle a,partv, subpartg note. 53 52.2264,noticeofdisasteroremergencyareasetasidenov200742u.s.c. 5150. 54 52.2265,restrictionsonsubcontractingoutsidedisasteroremergencyareanov 2007 42 u.s.c. 5150. 55 52.2268,encouragingcontractorpoliciestobantextmessagingwhiledrivingmay 2024 e.o. 13513.', 31995:'56 52.22912, tax on certain foreign procurements feb 2021. 57 52.23229, terms for financing of purchases of commercial products and', 31996:'commercial services nov 2021 41 u.s.c. 4505, 10 u.s.c. 3805. 58 52.23230, installment payments for commercial products and commercial services', 31997:'nov 2021 41 u.s.c. 4505, 10 u.s.c. 3805. 59 52.23233,paymentbyelectronicfundstransfersystemforawardmanagementoct2018 31 u.s.c. 3332. 60 52.23234,paymentbyelectronicfundstransferotherthansystemforawardmanagementjul2013 31 u.s.c. 3332. 61 52.23236,', 31998:'payment by third party may 2014 31 u.s.c. 3332. 62 52.2391, privacy or security safeguards aug 1996 5 u.s.c. 552a.', 31999:'63 52.2401, prohibition on unmanned aircraft systems manufactured or assembled by american security drone actcovered foreign entities nov 2024 sections', 32000:'18211826,pub. l. 11831, 41 u.s.c. 3901 note prec.. 64 52.2425, payments to small business subcontractors jan 2017 15 u.s.c. 637d13.', 32001:'65 i 52.24764,preferenceforprivatelyownedu.s.flagcommercialvesselsnov 2021 46 u.s.c. 55305 and 10 u.s.c. 2631. ii alternate i apr 2003 of 52.24764. iii alternate', 32002:'ii nov 2021 of 52.24764. c thecontractor shall comply with the far clauses in this paragraphc, applicable to commercialservices, that', 32003:'the contracting officerhas indicated as being incorporated in thiscontract byreference to implement provisions of law or executive orders applicable to', 32004:'acquisitions of commercial products and commercial services: [contracting officer check as appropriate.] 1 52.22241, service contract labor standards aug 2018', 32005:'41 u.s.c. chapter67. 2 52.22242, statement of equivalent rates for federal hires may 2014 29 u.s.c. 206 and 41 u.s.c.', 32006:'chapter 67. 3 52.22243,fairlaborstandardsactandservicecontractlaborstandardspriceadjustmentmultipleyear and option contracts aug 2018 29 u.s.c. 206 and 41 u.s.c. chapter 67. 4 52.22244, fair', 32007:'labor standards act and service contract labor standardsprice adjustment may 2014 29u.s.c.206 and 41 u.s.c. chapter 67. 5 52.22251, exemption', 32008:'from application of the service contract labor standards to contracts for maintenance, calibration, or repair of certain equipmentrequirements may 2014', 32009:'41 u.s.c. chapter 67. 6 52.22253, exemption from application of the service contract labor standards to contracts for certain servicesrequirements', 32010:'may 2014 41 u.s.c. chapter 67. 7 52.22255,minimumwagesforcontractorworkersunderexecutiveorder14026jan 2022. 8 52.22262, paid sick leave under executive order 13706 jan 2022', 32011:'e.o. 13706. 9 52.2266,promotingexcessfooddonationtononprofitorganizationsjun202042u.s.c. 1792. d comptroller general examination of record. the contractor shall comply with the provisions of this', 32012:'paragraph d if this contract was awarded usingother thansealed bid, is in excess of the simplifiedacquisitionthreshold, as defined in far', 32013:'2.101, on the date of award of this contract, and does not contain the clause at 52.2152, audit and recordsnegotiation.', 32014:'1 the comptroller general of the united states, or an authorized representative of the comptroller general, shall have access to', 32015:'and right to examineanyof the contractor’s directly pertinentrecords involvingtransactions related to this contract. 52.2101 52.2125 federal acquisition regulation 2 the', 32016:'contractor shall make available at itsoffices at all reasonable times therecords, materials, and other evidence for examination, audit, or reproduction,', 32017:'until 3 years after final payment under this contract or for any shorter period specified in far subpart 4.7, contractor', 32018:'records retention, of the other clauses of this contract. if this contract is completely or partially terminated, the records relating', 32019:'to the work terminated shall be made available for 3 years after any resulting final termination settlement. records relating to', 32020:'appeals under the disputes clause or to litigation or the settlement of claims arising under or relating to this contract', 32021:'shall be made available until such appeals, litigation, or claims are finally resolved. 3 as used in this clause, records', 32022:'include books, documents, accounting procedures and practices, and other data, regardless of type and regardless of form. this does not', 32023:'require the contractor to create or maintain any record that the contractor does not maintain in the ordinary course of', 32024:'business orpursuant to aprovision of law. e 1 notwithstanding the requirements of the clauses in paragraphs a, b, c, and', 32025:'d of this clause, the contractor is not requiredto flow down any far clause, other than those in this paragraph', 32026:'e1, in a subcontract for commercial products or commercial services. unless otherwise indicatedbelow, the extent of the flow down shall', 32027:'be as required by the clause i 52.20313, contractor code of business ethics and conduct nov 2021 41 u.s.c. 3509.', 32028:'ii 52.20317, contractor employee whistleblower rights nov 2023 41 u.s.c. 4712. iii 52.20319, prohibition on requiring certain internal confidentiality agreements', 32029:'or statements jan 2017 section 743 ofdivision e, titlevii, of the consolidated and further continuingappropriationsact, 2015 pub. l. 113235 and', 32030:'its successor provisions in subsequent appropriations acts and as extended in continuing resolutions. iv 52.20423, prohibition on contracting for hardware,', 32031:'software, and services developed or provided by kaspersky lab covered entities dec 2023 section 1634of pub. l. 11591. v 52.20425,', 32032:'prohibitionon contractingforcertain telecommunications andvideo surveillance servicesor equipment. nov 2021 section 889a1a of pub. l. 115232. vi 52.20427, prohibition on a', 32033:'bytedance covered application jun 2023 section 102 of division r of pub. l. 117328. vii a 52.204–30, federal acquisition supply', 32034:'chain security act orders—prohibition. dec 2023 pub. l. 115–390, title ii. b alternate i dec 2023 of 52.204–30. viii 52.2198,', 32035:'utilization of small business concerns feb 2024 15 u.s.c. 637d2 and 3, in all subcontracts that offer further subcontracting opportunities.', 32036:'if the subcontract exceptsubcontractsto small business concerns exceeds the applicable thresholdspecified in far 19.702a on the date of subcontract award,', 32037:'the subcontractor must include 52.2198 in lowertier subcontracts that offer subcontracting opportunities. ix 52.22221, prohibition of segregated facilities apr 2015.', 32038:'x 52.22226, equal opportunity sep 2015 e.o.11246. xi 52.22235, equal opportunity for veteransjun 2020 38 u.s.c. 4212. xii 52.22236, equal', 32039:'opportunity for workers with disabilities jun 2020 29 u.s.c. 793. xiii 52.22237, employment reports on veterans jun 2020 38 u.s.c.', 32040:'4212. xiv 52.22240, notification of employee rights under the national labor relations act dec 2010 e.o. 13496. flow down required', 32041:'in accordance with paragraph f of far clause 52.22240. xv 52.22241, service contract labor standards aug 2018 41 u.s.c. chapter', 32042:'67. xvi a 52.22250,combatingtraffickinginpersonsnov 2021 22 u.s.c. chapter 78 and e.o 13627. b alternate i mar 2015 of 52.22250 22', 32043:'u.s.c. chapter 78 and e.o. 13627. xvii 52.22251, exemption from application of the service contract labor standards to contracts for', 32044:'maintenance, calibration, or repair of certain equipmentrequirements may 2014 41 u.s.c. chapter 67. xviii 52.22253, exemption from application of the', 32045:'service contract labor standards to contracts for certain servicesrequirements may 2014 41 u.s.c. chapter 67. xix 52.22254, employment eligibility verification', 32046:'may 2022 e.o. 12989. xx 52.22255, minimum wages for contractor workers under executive order 14026 jan 2022. xxi 52.22262, paid', 32047:'sick leave under executive order 13706 jan 2022 e.o. 13706. xxii a 52.2243,privacytrainingjan20175 u.s.c. 552a. b alternate i jan 2017', 32048:'of 52.2243. xxiii 52.22526, contractors performing private security functions outside the united states oct 2016 section 862, as amended, of', 32049:'the national defense authorization act for fiscal year 2008;10 u.s.c. subtitle a,partv, subpartg note. 52.2102 fac 202501 november 12, 2024', 32050:'subpart 52.2 text of provisions and clauses 52.2125 xxiv 52.2266, promoting excess food donation to nonprofit organizations jun 2020 42', 32051:'u.s.c. 1792. flow down required in accordance with paragraphe of far clause 52.2266. xxv 52.23240, providing accelerated payments to small', 32052:'business subcontractors mar 2023 31 u.s.c. 3903 and 10 u.s.c. 3801. flow down required in accordance with paragraph c of', 32053:'52.23240. xxvi 52.2401, prohibition on unmanned aircraft systems manufactured or assembled by american security drone actcovered foreign entities nov 2024', 32054:'sections 18211826,pub. l. 11831, 41 u.s.c. 3901 note prec.. xxvii 52.24764,preferenceforprivatelyownedu.s.flagcommercialvesselsnov 2021 46 u.s.c. 55305 and 10 u.s.c. 2631. flow', 32055:'down required in accordance withparagraph d offar clause 52.24764. 2 while not required, the contractor may include in its subcontracts', 32056:'for commercial products and commercial services a minimal number of additional clauses necessary to satisfy its contractual obligations. end of', 32057:'clause alternate i feb 2000. as prescribed in 12.301b4i, delete paragraph d from the basic clause, redesignate paragraph e as', 32058:'paragraph d, and revise the reference to paragraphs a, b, c, or d of this clause in the redesignated paragraph', 32059:'d to read paragraphs a, b, and c of this clause. alternate ii nov 2024 . as prescribed in 12.301b4ii,', 32060:'substitute the following paragraphs d1 and e1 for paragraphs d1 and e1 of the basic clause as follows: d1 the', 32061:'comptroller general of the united states, an appropriate inspector general appointed under section 3 or 8 g of the inspector', 32062:'general act of 1978 5 u.s.c. app., or anauthorized representative ofeither of theforegoing officials shall have access to and right', 32063:'to— iexamine any ofthe contractor’sor any subcontractors’ records thatpertain to, and involvetransactions relating to, this contract; and iiinterview anyofficer or', 32064:'employee regarding such transactions. e1 notwithstanding the requirements of the clauses in paragraphs a, b, and c, of this clause,', 32065:'the contractor is not requiredto flow down any far clause in asubcontract for commercial products orcommercial services, other than— i', 32066:'paragraph d of this clause. this paragraph flows down to all subcontracts, except the authority of the inspector general under', 32067:'paragraph d1ii does not flow down; and ii those clauses listed in this paragraph e1. unless otherwise indicatedbelow, the extent', 32068:'of the flow down shall be as required by the clause a 52.20313, contractor code of business ethics and conduct', 32069:'nov 2021 41 u.s.c. 3509. b 52.20315, whistleblower protections under the american recovery and reinvestment act of 2009 jun 2010', 32070:'section1553 of pub. l. 1115. c 52.20317, contractor employee whistleblower rights nov 2023 41 u.s.c. 4712. d 52.20423, prohibition on', 32071:'contracting for hardware, software, and services developed or provided by kaspersky lab covered entities dec 2023 section 1634of pub. l.', 32072:'11591. e 52.20425, prohibition on contracting for certaintelecommunicationsand video surveillance services or equipment. nov 2021 section 889a1a of pub. l.', 32073:'115232. f 52.20427, prohibition on a bytedance covered application jun 2023 section 102 of division r of pub. l. 117328.', 32074:'g 1 52.204–30, federal acquisition supply chain security act orders— prohibition. dec 2023 pub. l. 115–390, title ii. 2 alternate', 32075:'i dec 202352.20430. h 52.2198, utilization of small business concerns feb 2024 15 u.s.c. 637d2 and 3, in all subcontracts', 32076:'that offer further subcontracting opportunities. if the subcontract exceptsubcontractsto small business concernsexceeds the applicable threshold specified in far 19.702a on', 32077:'the date of subcontract award, the subcontractor must include 52.2198 in lower tier subcontracts that offersubcontractingopportunities. i 52.22221, prohibition of', 32078:'segregated facilities apr 2015. j 52.22226, equal opportunity sep 2016 e.o. 11246. k 52.22235, equal opportunityfor veterans jun 2020 38', 32079:'u.s.c. 4212. l 52.22236, equal opportunity for workers with disabilities jun 2020 29 u.s.c. 793. m 52.22240, notification of employee', 32080:'rights under the national labor relations act dec 2010 e.o. 13496. flow down required in accordance with paragraph fof far', 32081:'clause 52.22240. 52.2103 fac 202501 november 12, 2024 52.2125 federal acquisition regulation n 52.22241, service contract labor standards aug 2018', 32082:'41 u.s.c. chapter 67. o 1 52.22250, combating trafficking in personsnov 2021 22 u.s.c. chapter 78 and e.o 13627. 2', 32083:'alternate i mar 2015 of 52.22250 22 u.s.c. chapter 78 and e.o. 13627. p 52.22251, exemption from application of the', 32084:'service contract labor standards to contracts for maintenance, calibration, or repair of certain equipmentrequirements may 2014 41 u.s.c. chapter 67.', 32085:'q 52.22253, exemption from application of the service contract labor standards to contracts for certain servicesrequirements may 2014 41 u.s.c.', 32086:'chapter 67. r 52.22254, employment eligibility verification may 2022 executive order 12989. s 52.22255, minimum wages for contractor workers under', 32087:'executive order 14026 jan 2022. t 52.22262, paid sick leave under executive order 13706 jan 2022 e.o. 13706. u 1', 32088:'52.2243, privacy training jan 2017 5 u.s.c. 552a. 2 alternate i jan 2017 of 52.2243. v 52.22526, contractors performing private', 32089:'security functions outside the united states oct 2016 section 862, as amended, of the national defense authorization act for fiscal', 32090:'year 2008;10 u.s.c. subtitle a,partv, subpartg note. w 52.2266, promoting excess food donation to nonprofitorganizations. jun 2020 42 u.s.c. 1792.', 32091:'flow down required in accordance with paragraphe of far clause52.2266. x 52.23240, providing accelerated payments to small business subcontractors mar', 32092:'2023 31 u.s.c. 3903 and 10 u.s.c. 3801. flow down required in accordance with paragraph c of 52.23240. y 52.2401,', 32093:'prohibition on unmanned aircraft systems manufactured or assembled by american security drone actcovered foreign entities nov 2024 sections 18211826,pub. l.', 32094:'11831, 41 u.s.c. 3901 note prec.. z 52.24764, preference for privately owned u.s.flag commercial vesselsnov 2021 46 u.s.c. 55305 and', 32095:'10 u.s.c. 2631. flow down required inaccordance withparagraph d offar clause 52.24764. 52.2104 subpart 52.2 text of provisions and clauses', 32096:'52.2131 52.213[reserved] 52.2131fast payment procedure. as prescribed in 13.404, insert the following clause: fast payment procedure may 2006 a general.', 32097:'the government will payinvoices based on the contractor’s delivery toa post office orcommon carrier or, if shipped by other means,', 32098:'to the point of first receipt by the government. b responsibility for supplies. 1titletothesuppliespassestothegovernmentupondeliveryto iapost officeor common carrier for shipment', 32099:'to the specific destination; or ii the point of first receipt by the government, if shipment is by means other', 32100:'than postal service or common carrier. 2 notwithstanding any other provisionof the contract, order, or blanket purchase agreement, thecontractor shall', 32101:'i assume all responsibility and risk of loss for supplies not received at destination, damaged in transit, or not conforming', 32102:'to purchase requirements; and iireplace, repair,or correct those supplies promptly at thecontractor’s expense, ifinstructedto do so by the contracting officerwithin', 32103:'180 daysfrom the date title to the supplies vests in thegovernment. c preparation of invoice. 1upondeliverytoapostofficeorcommoncarrieror,ifshippedbyothermeans,thepoint of first receipt by', 32104:'the government, the contractor shall ipreparean invoice as provided inthiscontract, order, orblanket purchase agreement; and iidisplay prominently on the invoice', 32105:'fast pay. invoicesnot prominentlymarked fast pay via manual or electronic means may be accepted by the payment office for fast', 32106:'payment. if the payment office declines to make fast payment, the contractor shall be paid in accordance with procedures applicable', 32107:'to invoices to which the fast payment clause doesnot apply. 2 if the purchase price excludes the cost of transportation,', 32108:'the contractor shall enter the prepaid shipping cost on theinvoice asa separate item. thecontractor shall notinclude the cost of parcel', 32109:'post insurance. if transportation charges are stated separately on the invoice, the contractor shall retain related paid freight bills or', 32110:'other transportation billings paid separately for a period of 3 years and shall furnish the bills to the government upon', 32111:'request. 3 if thiscontract, order, orblanket purchase agreementrequiresthe preparation of a receiving report, the contractor shall either i submit the', 32112:'receiving report on the prescribed form with the invoice; or ii include the following information on the invoice: ashipmentnumber. b', 32113:'mode of shipment. c at line item level 1 nationalstock number and/or manufacturer’s part number; 2 unit of measure; 3', 32114:'shipto point; 4 markfor point, if in the contract; and 5 fedstrip/milstripdocument number, if in the contract. 4 if thiscontract,', 32115:'order, orblanket purchase agreementdoes not require preparation of a receiving report on a prescribed form, the contractor shall include on', 32116:'the invoice the following information at the line item level, in addition to that required in paragraph c1 of this', 32117:'clause: ishiptopoint. ii markfor point. iii fedstrip/milstrip document number, if in the contract. 5 where a receiving report is not', 32118:'required, the contractor shall include a copy of the invoice in each shipment. d certification of invoice. the contractor certifies', 32119:'by submitting an invoice to the government that the supplies being billed to the government have been shipped or delivered', 32120:'in accordance with shipping instructions issued by the ordering officer, in the quantities shown on the invoice, and that the', 32121:'supplies are in the quantity and of the quality designated by the contract, order, or blanket purchase agreement. 52.2105 fac', 32122:'202501 november 12, 2024 52.2132 federal acquisition regulation e fast pay containeridentification. the contractorshall mark all outer shippingcontainers fast pay', 32123:'when outer shipping containers are not marked fast pay, the payment office may make fast payment. if thepayment officedeclines to', 32124:'make fast payment, the contractor shall be paid in accordance with procedures applicable to invoices to which the fast payment', 32125:'clause doesnot apply. end of clause 52.2132 invoices. as prescribed in 13.3025b, insert the following clause: invoicesapr 1984 the contractor’s', 32126:'invoices must be submitted before payment can be made. the contractor will be paid on the basis of the invoice,', 32127:'which must state a the starting and ending dates of the subscription delivery; and b either that orders have been', 32128:'placed in effect for theaddressees required,or that the orders will beplacedin effect upon receipt of payment. end of clause 52.2133notice', 32129:'to supplier. as prescribed in 13.3025c, insert the following clause: notice to supplier apr 1984 this is a firm order', 32130:'onlyif your price doesnot exceedthe maximumline item or total price in the schedule. submit invoices to the contracting officer. ifyou', 32131:'cannot perform in exact accordance with this order, withhold performance, and notify the contracting officer immediately, giving your quotation. end', 32132:'of clause 52.2134terms and conditions—simplifiedacquisitions other than commercial products and commercial services. as prescribed in 13.3025d, insert the following clause:', 32133:'terms and conditions—simplified acquisitions other than commercial products and commercial services nov 2024 a thecontractor shall comply with the following', 32134:'federal acquisition regulation far clauses that are incorporated by reference: 1 the clauses listed below implement provisions of law or', 32135:'executive order: i 52.20319, prohibition on requiring certain internal confidentiality agreements or statements jan 2017 section 743 ofdivision e, titlevii,', 32136:'of the consolidated and further continuingappropriationsact, 2015 pub. l. 113235 and its successor provisions in subsequent appropriations acts and as', 32137:'extended in continuing resolutions. ii 52.20423, prohibition on contracting for hardware, software, and services developed or provided by kaspersky lab', 32138:'covered entities dec 2023 section 1634of pub. l. 11591. iii 52.20425,prohibition on contracting for certain telecommunications and video surveillance services', 32139:'or equipment. nov 2021 section 889a1a of pub. l. 115232. iv 52.20427, prohibition on a bytedance covered application jun 2023', 32140:'section 102 of division r of pub. l. 117328, unless the agency grantsan exception see paragraph b of 52.20427. v', 32141:'52.20430, federal acquisition supply chain security act orders—prohibition. dec 2023 pub. l. 115–390, title ii. vi 52.2223, convict labor jun', 32142:'2003 e.o.11755. 52.2106 fac 202501 november 12, 2024 subpart 52.2 text of provisions and clauses 52.2134 vii 52.22221, prohibition of', 32143:'segregated facilities apr 2015. viii 52.22226, equal opportunity sep 2016 e.o.11246. ix 52.22513, restrictions on certain foreign purchases feb 2021', 32144:'e.o.s, proclamations, and statutes administered by theoffice of foreignassets control of the departmentof the treasury. x 52.23240, providing accelerated payments', 32145:'to small business subcontractors mar 2023 31 u.s.c. 3903 and 10 u.s.c. 3801. xi 52.2333,protestafterawardaug 1996 31 u.s.c. 3553. xii', 32146:'52.2334, applicable law for breach of contract claim oct 2004 pub. l. 10877 and 10878 19 u.s.c. 3805 note. 2', 32147:'listed below are additional clauses that apply: i 52.2321, payments apr 1984. ii 52.2328, discounts for prompt payment feb 2002.', 32148:'iii 52.23211, extras apr 1984. iv 52.23225, prompt payment jan 2017. v 52.23239, unenforceability of unauthorized obligations jun 2013. vi', 32149:'52.2331, disputes may 2014. vii 52.2446, subcontracts for commercial products and commercial services nov 2024. viii 52.2531, computer generated forms', 32150:'jan 1991. b the contractor shall comply withthe following far clauses, incorporated by reference, unless the circumstances do not apply:', 32151:'1 the clauses listed below implement provisions of law or executive order: i 52.20317, contractor employee whistleblower rights nov 2023', 32152:'41 u.s.c. 4712; this clause does not apply to contracts of dod, nasa, the coast guard, or applicable elements of', 32153:'the intelligence community—see far 3.900a. ii 52.20410, reporting executive compensation and firsttier subcontract awardsjun 2020pub. l. 109282 31 u.s.c. 6101', 32154:'note applies to contracts valued at or above the threshold specified in far 4.1403a on the date of award of', 32155:'this contract. iii 52.22219, child laborcooperation with authorities and remedies feb 2024 e.o. 13126 applies to contracts for supplies exceeding', 32156:'the micropurchase threshold, as defined in 2.101 on the date of award of this contract. iv 52.22220, contracts for materials,', 32157:'supplies, articles, and equipment., contracts for materials, supplies, articles, and equipment jun 2020 41 u.s.c. chapter 65 appliesto supply contracts', 32158:'over the threshold specified in far 22.602 on the date of award of this contract, in the united states,puerto rico,', 32159:'or the u.s. virgin islands. v 52.22235, equal opportunity for veteransjun 2020 38 u.s.c. 4212 applies to contracts valued at', 32160:'or above thethreshold specifiedin far 22.1303a on the date of award of this contract. vi 52.22236, equal employment for workers', 32161:'with disabilitiesjun 2020 29 u.s.c. 793 applies to contracts over the threshold specified in far 22.1408a on the date of', 32162:'award of this contract, unless the work is to be performed outside the united states by employees recruited outside the', 32163:'united states. for purposes of this clause, united states includes the 50 states, the district of columbia, puerto rico, the', 32164:'northern mariana islands, american samoa, guam, the u.s. virgin islands, andwake island. vii 52.22237, employment reports on veteransjun 2020 38', 32165:'u.s.c. 4212 applies to contracts valued at or above the threshold specified in far 22.1303a on the date of award', 32166:'of this contract. viii 52.22241, service contract labor standards aug 2018 41 u.s.c. chapter 67 applies to service contracts over', 32167:'$2,500 that are subject to the service contract labor standards statute and will be performed in the united states, districtof', 32168:'columbia, puerto rico, the northern mariana islands,americansamoa, guam, theu.s. virgin islands, johnston island, wakeisland, or the outer continentalshelf. ix a', 32169:'52.22250,combatingtraffickinginpersonsnov 2021 22 u.s.c. chapter 78 and e.o. 13627 applies to all solicitations and contracts. b alternate i mar 2015', 32170:'applies if the contracting officer hasfilled inthe following informationwith regard to applicable directives or notices: document titles, source for obtaining', 32171:'documents, and contract performance location outside the united states to which the document applies. x 52.22255, minimum wagesfor contractor workers', 32172:'under executive order 14026 jan 2022 applies when 52.2226 or 52.22241 are in the contract and performance in whole or', 32173:'in part is in the united states the 50 states, the districtof columbia, puerto rico, the northern mariana islands,americansamoa, guam,', 32174:'theu.s. virgin islands, johnston 52.2107 fac 202501 november 12, 2024 52.2134 federal acquisition regulation island, wakeisland, and the outer continental', 32175:'shelf as definedin the outer continental shelf lands act 43 u.s.c. 1331, et seq.. xi 52.22262, paid sick leave under', 32176:'executive order 13706 jan 2022 e.o. 13706 applies when 52.2226 or 52.22241 are in the contract and performance in whole', 32177:'or in part is in the united states the 50 states and the district of columbia. xii 52.2235, pollution prevention', 32178:'and righttoknow information may 2024 42 u.s.c. 1100111050 and 1310113109 applies to services performed on federal facilities. xiii 52.22311, ozonedepleting', 32179:'substances and high global warming potential hydrofluorocarbons may 2024 42 u.s.c. 7671, et seq. appliesto contracts for products as prescribed', 32180:'atfar 23.109d1. xiv 52.22312, maintenance, service, repair, or disposal of refrigeration equipment and air conditioners may 2024 42 u.s.c. 7671,', 32181:'et seq. applies to maintenance,service, repair, ordisposal ofrefrigeration equipmentand air conditioners. xv 52.22320, aerosols may 2024 42 u.s.c. 7671, et', 32182:'seq. applies to contracts for products that may contain high global warming potential hydrofluorocarbons as a propellant or as a', 32183:'solvent; or contracts for maintenance or repair of electronic or mechanical devices. xvi 52.22321, foams may 2024 42 u.s.c. 7671,', 32184:'et seq. applies to contracts for products that may contain high global warming potential hydrofluorocarbons or refrigerant blends containing hydrofluorocarbons', 32185:'as a foam blowing agent; or contracts for construction of buildings or facilities. xvii 52.22323, sustainable products and services may', 32186:'2024 e.o. 14057, 7 u.s.c. 8102, 42 u.s.c. 6962, 42 u.s.c. 8259b, and 42 u.s.c. 7671l applies to contracts when', 32187:'the agency identifies in the statement of work, or elsewhere in the contract, the sustainable products and services that apply', 32188:'to the acquisition. xviii a 52.2251, buy americansupplies oct 2022 41 u.s.c. chapter 67 applies to contracts for supplies, and', 32189:'to contracts for services involving the furnishing of supplies, for use in the united states or its outlying areas, if', 32190:'the value of the supply contract or supply portion of a service contract exceeds the micropurchase threshold, as defined in', 32191:'2.101 on the date of award of this contract, and the acquisition 1 is set aside for small business concerns;', 32192:'or 2 cannot be set aside for small business concerns see 19.5022, and does not exceed $50,000. b alternate i', 32193:'oct 2022 applies ifthe contracting officerhas filled in the domestic content threshold below, which will apply to the entire contract', 32194:'period of performance. substitute the following sentence for the first sentence of paragraph 1iia of the definition of domestic end', 32195:'product in paragraph a of 52.2251: a the cost of its components mined, produced, or manufactured in the united states', 32196:'exceeds percent of the cost of all its components. [ contracting officer to insert the percentage per instructions at 13.3025d4.', 32197:'] xix 52.2266, promotingexcessfood donationto nonprofit organizations., promoting excess food donation to nonprofit organizations jun 2020 42 u.s.c. 1792 applies', 32198:'tocontracts greater than the threshold specified in far 26.404 on the date of award of this contract, that provide for', 32199:'the provision, the service, or the sale of food in the united states. xx 52.23233, payment by electronic funds transfersystem', 32200:'for award managementoct 2013applies when thepayment will be made by electronic funds transfer eft and the payment office uses thesystemforaward', 32201:'management sam as its source of eft information. xxi 52.23234, payment by electronic funds transferother than system for award management', 32202:'jul 2013 applies when the payment will bemade by eft and the payment office does not use the sam database', 32203:'as itssource of eft information. xxii 52.2401, prohibition on unmanned aircraft systems manufactured or assembled by american security drone actcovered', 32204:'foreign entities nov 2024 sections 18211826,pub. l. 11831, 41 u.s.c. 3901 note prec.. xxiii 52.24764, preferencefor privately owned u.s.flag commercial', 32205:'vessels nov 2021 46 u.s.c. 55305 applies to supplies transported by ocean vessels except for the types of subcontracts listed', 32206:'at 47.504d. 2 listed below are additional clauses that may apply: i 52.20421, basic safeguarding of covered contractor information systems', 32207:'nov 2021 applies to contracts when the contractor or a subcontractor at any tier may have federal contract information residing', 32208:'in or transiting through its information system. ii 52.2096, protecting the government’s interest when subcontracting with contractors debarred,suspended, or proposed', 32209:'for debarment nov 2021 applies to contracts overthe threshold specified infar 9.4052b on the date of award of this contract.', 32210:'52.2108 subpart 52.2 text of provisions and clauses 52.2134 iii 52.21117, delivery of excess quantities sept 1989 applies to fixedprice', 32211:'supplies. iv 52.24729, f.o.b. origin feb 2006 applies to supplies if delivery is f.o.b. origin. v 52.24734, f.o.b. destination jan', 32212:'1991 applies to supplies if delivery is f.o.b. destination. c far 52.2522, clauses incorporated by reference feb 1998. this contract', 32213:'incorporates one or more clauses by reference, with thesame force and effect as if they weregiven in full text. upon', 32214:'request, the contracting officer will make their full text available. also, the full text of a clause may be accessed', 32215:'electronically at this/these addresses: [insert one or more internet addresses] d inspection/acceptance. the contractor shall tender for acceptance only those', 32216:'items that conform to the requirements of this contract. the government reserves the right to inspect or test any supplies', 32217:'or services that have been tendered for acceptance. the government may require repair or replacement of nonconforming supplies or reperformance', 32218:'of nonconforming services at no increase in contract price. the government must exercise its postacceptance rights 1 within areasonable period', 32219:'of time after thedefectwas discovered or should have been discovered; and 2 before any substantial change occurs in the condition', 32220:'of the item, unless the change is due to the defect in the item. e excusable delays. the contractor shall', 32221:'be liable for default unless nonperformance is caused by an occurrence beyond thereasonable control of the contractorand without its fault', 32222:'or negligence, suchas acts of godor the public enemy, acts of the government ineither its sovereign or contractualcapacity, fires,floods,epidemics,quarantine restrictions,', 32223:'strikes, unusually severe weather, and delaysof common carriers. the contractor shall notify thecontracting officer inwriting as soonas it is reasonablypossible', 32224:'afterthe commencement of any excusable delay, setting forth the full particulars in connection therewith, shall remedy such occurrence with all', 32225:'reasonable dispatch, and shall promptly give written notice to the contracting officerof the cessation ofsuch occurrence. f termination for the', 32226:'governments convenience. the government reserves the right to terminate this contract, or any part hereof, for its sole convenience. in', 32227:'the event of such termination, the contractor shall immediately stop all work hereunder and shall immediately cause any and all', 32228:'of its suppliers and subcontractors to cease work. subject to the terms of this contract, the contractor shall be paid', 32229:'a percentage of the contract price reflecting the percentage of the work performed prior to the notice of termination, plus', 32230:'reasonable charges that the contractorcan demonstrateto the satisfactionof the government, using its standard record keeping system, have resulted from the', 32231:'termination. the contractor shall not be required to comply with the cost accounting standards or contract cost principles for this', 32232:'purpose. this paragraph does not give the government any right toaudit the contractor’s records. the contractor shall not be paidforanywork', 32233:'performed or costs incurred that reasonably could have been avoided. g termination for cause. the government may terminate this contract,', 32234:'or any part hereof, for cause in the event of any default by the contractor, or if the contractor fails', 32235:'to complywith any contract terms and conditions, or fails toprovide the government, upon request, with adequate assurances of future performance.', 32236:'in the event of termination for cause, the government shall not be liable to the contractor for any amount for', 32237:'supplies or services not accepted, and the contractor shall beliable to the government for any and all rights and remedies', 32238:'provided by law. if it is determined that the government improperly terminated this contract for default, such termination shall be', 32239:'deemed a termination for convenience. h warranty. the contractor warrants and implies that the items delivered hereunder are merchantable and', 32240:'fit for use for the particular purpose described in this contract. end of clause 52.2109 this page intentionally left blank.', 32241:'52.2110 subpart 52.2 text of provisions and clauses 52.2146 52.214[reserved] 52.2141 [reserved] 52.2142 [reserved] 52.2143 amendments to invitations for bids.', 32242:'as prescribed in 14.2016b1, insert the following provision: amendments to invitations for bidsdec 2016 a if this solicitation is amended,', 32243:'then all terms and conditions which are not modified remain unchanged. b 1 bidders shall acknowledge receipt of any amendment', 32244:'to this solicitation i by signing and returning the amendment; ii by identifying the amendment number and date in space', 32245:'provided for this purpose on the form for submitting a bid; iii by letter; iv by facsimile, if facsimile bids', 32246:'are authorized in the solicitation; or v by email, if email bids are authorized in the solicitation. 2 the government', 32247:'must receive the acknowledgement by the time and at the place specified for receipt of bids. end of provision 52.2144', 32248:'false statements in bids. as prescribed in 14.2016b2, insert the following provision in all invitations for bids: false statements in', 32249:'bids apr 1984 bidders must provide full, accurate, and complete information as required by this solicitation and its attachments. the', 32250:'penalty for making false statements in bids is prescribed in 18 u.s.c. 1001. end of provision 52.2145 submission of bids.', 32251:'as prescribed in 14.2016c1, insert the following provision: submission of bids dec 2016 a bids and bid modifications shall be', 32252:'submitted in sealed envelopes or packages unless submitted by electronic means 1 addressedto theoffice specified in the solicitation; and 2', 32253:'showing the time and date specified for receipt, thesolicitation number, and thenameand address ofthe bidder. b bidders using commercial carrier', 32254:'services shall ensure that the bid is addressed and marked on the outermost envelope or wrapper asprescribed in paragraphs a1', 32255:'and 2 ofthis provision when delivered tothe office specified in the solicitation. c facsimile bids, modifications, or withdrawals, will not', 32256:'be considered unless authorized by the solicitation. d bids submitted by electronic commerce shall be considered only if the electronic', 32257:'commerce method was specifically stipulated or permitted by the solicitation. end of provision 52.2146explanation to prospective bidders. as prescribed in', 32258:'14.2016c2, insert the following provision: 52.2111 52.2147 federal acquisition regulation explanation to prospective bidders apr 1984 any prospective bidder desiring', 32259:'an explanation or interpretation of the solicitation, drawings, specifications, etc., must request it in writing soon enough to allow a', 32260:'reply to reach all prospective bidders before the submission of their bids. oral explanations or instructions given before the award', 32261:'of a contract will not be binding. any information given a prospective bidder concerning a solicitation will be furnished promptly', 32262:'to all other prospective bidders as an amendment to the solicitation, if that information is necessary in submitting bids or', 32263:'if the lack of it would be prejudicial to other prospective bidders. end of provision 52.2147late submissions, modifications, and withdrawals', 32264:'of bids. as prescribed in 14.2016c3, insert the following provision: late submissions, modifications, and withdrawals of bids nov 1999 a', 32265:'bidders are responsible for submitting bids, and any modifications or withdrawals, so as to reach the government officedesignated in the', 32266:'invitation for bids ifb by thetime specified in theifb. if no time is specifiedin theifb, the time for receipt is4:30p.m.,', 32267:'local time, for the designatedgovernment office on the date that bids are due. b 1anybid,modification,orwithdrawalreceivedatthegovernmentofficedesignatedintheifbaftertheexacttime specified for receipt of bids', 32268:'is late and will not be considered unless it is received before award is made, the contracting officer determines that', 32269:'accepting thelate bidwould not unduly delay the acquisition; and i if it was transmitted through an electronic commerce method authorized', 32270:'by the ifb, it was received at the initial point of entry to the government infrastructure not later than 5:00', 32271:'p.m. oneworking day prior to the date specified for receipt of bids; or ii there is acceptable evidence to establish', 32272:'that it was received at the government installation designated for receipt ofbids and wasunder thegovernment’s control prior to the time', 32273:'set for receipt of bids. 2 however, a late modification of an otherwisesuccessfulbid that makes its terms more favorable to', 32274:'the government, will be considered at any time it is received and may be accepted. c acceptable evidence to establish', 32275:'the time of receipt at the government installation includes the time/date stamp of that installation on the bidwrapper, other documentary', 32276:'evidence of receipt maintained by the installation, or oral testimonyor statements of government personnel. d if an emergency orunanticipated event', 32277:'interrupts normal governmentprocesses so that bidscannot be received at the government officedesignated for receiptof bidsby the exacttime specified in theifb', 32278:'and urgent government requirements preclude amendment of the ifb, the time specified for receipt of bids will be deemed to', 32279:'be extended to the same time of day specified in the solicitation on the first work day on which normal', 32280:'government processes resume. e bids may be withdrawn by written notice received at any time before the exact time set', 32281:'for receipt of bids. if the ifb authorizes facsimile bids, bids may be withdrawn via facsimile received at any time', 32282:'before the exact time set for receipt of bids, subject to the conditions specified in the provision at 52.21431, facsimile', 32283:'bids. a bid may be withdrawn in person by a bidder or its authorized representative if, before the exact time', 32284:'set for receipt of bids, the identity of the person requesting withdrawal is established and the person signs a receipt', 32285:'for the bid. end of provision 52.2148 [reserved] 52.2149 [reserved] 52.21410 contract awardsealed bidding. as prescribed in 14.2016e, insert the', 32286:'following provision: contract awardsealed bidding july 1990 52.2112 subpart 52.2 text of provisions and clauses 52.21414 a the government will', 32287:'evaluate bids in response to this solicitation without discussions and will award a contract to the responsible bidder whose bid,', 32288:'conforming to the solicitation, will be most advantageous to the government considering only price and the pricerelated factors specified elsewhere', 32289:'in the solicitation. b the government may 1 reject any or all bids; 2 accept other than the lowest bid;', 32290:'and 3 waive informalitiesor minorirregularitiesin bids received. c the government may accept any item or group of items of a', 32291:'bid, unless the bidder qualifies the bid by specific limitations. unless otherwise provided in the schedule, bids may be submitted', 32292:'for quantities less than those specified. the government reserves the right to make an award on any itemfora quantity less', 32293:'than the quantity offered,at the unit prices offered, unless the bidder specifies otherwise in the bid. d a written award', 32294:'or acceptance of a bid mailed or otherwise furnished to the successful bidder within the time for acceptance specified inthe', 32295:'bid shall result in a binding contractwithout further action byeither party. e the government may reject a bid as nonresponsive', 32296:'if the prices bid are materially unbalanced between line items or subline items. a bid is materially unbalanced when it', 32297:'is based on prices significantly less than cost for some work and prices which are significantly overstated in relation to', 32298:'cost for other work, and if there is a reasonable doubt that the bid will result in the lowest overall', 32299:'cost to the government even though it may be the low evaluated bid, or if it is so unbalanced as', 32300:'to be tantamount to allowing an advance payment. end of provision 52.21411 [reserved] 52.21412 preparationof bids. as prescribed in 14.2016f,', 32301:'insert the following provision: preparation of bidsapr 1984 a bidders are expected to examine the drawings, specifications, schedule, and all', 32302:'instructions. failure to do so will be at thebidder’s risk. b each bidder shall furnish the information required by the', 32303:'solicitation. the bidder shall sign the bid and print or type itsnameon the schedule and eachcontinuationsheet onwhich it makes an', 32304:'entry. erasures or other changes must be initialed by the person signing the bid. bids signed by an agent shall', 32305:'be accompanied by evidence of that agent’s authority, unless that evidence hasbeenpreviously furnished to the issuing office. c for each', 32306:'item offered, bidders shall 1 show the unit price, including, unless otherwise specified, packaging,packing, and preservationand2enter the extendedprice for the', 32307:'quantity of each item offered in the amount column ofthe schedule. in case of discrepancy between a unit price and', 32308:'an extended price, the unit price will be presumed to be correct, subject,however,to correction to thesame extentandin the samemanner as', 32309:'any other mistake. d bids for supplies or services other than those specified will not be considered unless authorized by', 32310:'the solicitation. e bidders must state a definite time for delivery of supplies or for performance of services, unless otherwise', 32311:'specified in the solicitation. f time,if stated as a number ofdays, will include saturdays, sundays, and holidays. end of provision', 32312:'52.21413 [reserved] 52.21414 place of performancesealed bidding. as prescribed in 14.2016h, insert the following provision: place of performancesealed bidding apr', 32313:'1985 52.2113 52.21415 federal acquisition regulation a thebidder, in the performance ofanycontract resultingfrom this solicitation, □ intends, □ does not', 32314:'intend [check applicable box] to useone or more plantsor facilities located at adifferentaddress from the address of the bidder as', 32315:'indicated in this bid. b if the bidder checks intends in paragraph a of this provision, it shall insert in', 32316:'the spaces provided below the required information: place of performance street name and address of owner and operator of address,', 32317:'city, state, county, zip code the plantor facilityif otherthan bidder end of provision 52.21415 period for acceptance of bids. as', 32318:'prescribed in 14.2016i, insert the following provision: period for acceptance of bids apr 1984 in compliance with the solicitation, the', 32319:'bidder agrees, if this bid is accepted within calendar days 60 calendar daysunlessa different period is insertedby the bidderfrom the', 32320:'date specified in thesolicitation for receipt ofbids, tofurnish any or all items upon which prices are bid at the price', 32321:'set opposite each item, delivered at the designated points, within the time specified in the schedule. end of provision 52.21416', 32322:'minimum bid acceptance period. as prescribed in 14.2016j, insert the following provision in invitations for bids, except for construction, if', 32323:'the contracting officerdeterminesthat a minimum acceptance period must be specified: minimum bid acceptance period apr 1984 a acceptance period, as', 32324:'used in this provision, means the number of calendar days available to the government for awarding a contract from the', 32325:'date specified in this solicitation for receipt of bids. b this provision supersedes any language pertaining to the acceptance period', 32326:'that may appear elsewhere in this solicitation. c the government requires a minimum acceptance period of calendar days [the contracting', 32327:'officer shall insert the number of days]. d in the spaceprovided immediately below, bidders may specify a longer acceptance period', 32328:'than the government’s minimum requirement. the bidder allows the following acceptance period: calendar days. e a bidallowing less thanthe government’s', 32329:'minimum acceptance periodwill be rejected. f the bidder agrees to execute all that it has undertaken to do, in compliance', 32330:'with its bid, if that bid is accepted in writing within 1 the acceptance period stated in paragraph c of', 32331:'this clause; or 2 any longer acceptance period stated in paragraph d of this clause. end of clause 52.21417 [reserved]', 32332:'52.21418 preparationof bidsconstruction. as prescribed in 14.2016l, insert the following provision: 52.2114 subpart 52.2 text of provisions and clauses 52.21420', 32333:'preparation of bidsconstruction apr 1984 a bids must be 1 submitted on the forms furnished by the government or on', 32334:'copies of those forms, and 2 manually signed. the person signing a bid must initial each erasure or change appearing', 32335:'on any bid form. b the bid form may require bidders to submit bid prices for one or more items', 32336:'on various bases, including 1 lump sum bidding; 2 alternate prices; 3 units of construction; or 4 any combination of', 32337:'paragraphs b1 through b3 of this provision. c if the solicitation requires bidding on all items, failure to do so', 32338:'will disqualify the bid. if bidding on all items is not required, bidders should insert the words no bid in', 32339:'the space provided for any item on which no price is submitted. d alternate bids will not be considered unless', 32340:'this solicitation authorizes their submission. end of provision 52.21419 contract awardsealed biddingconstruction. as prescribed in 14.2016m, insert the following provision:', 32341:'contract awardsealed biddingconstruction aug 1996 a the government will evaluate bids in response to this solicitation without discussions and will', 32342:'award a contract to the responsible bidder whose bid, conforming to the solicitation, will be most advantageous to the government,', 32343:'considering only price and the pricerelated factors specified elsewhere in the solicitation. b the government may reject any or all', 32344:'bids, and waive informalities or minor irregularities in bids received. c the government may accept any item or combination of', 32345:'items, unless doing so is precluded by a restrictive limitation in the solicitation or the bid. d the government may', 32346:'reject a bid as nonresponsive if the prices bid are materially unbalanced between line items or subline items. a bid', 32347:'is materially unbalanced when it is based on prices significantly less than cost for some work and prices which are', 32348:'significantly overstated in relation to cost for other work, and if there is a reasonable doubt that the bid will', 32349:'result in the lowest overall cost to the government even though it may be the low evaluated bid, or if', 32350:'it is so unbalanced as to be tantamount to allowing an advance payment. end of provision 52.21420 bid samples. as', 32351:'prescribed in 14.2016o1, insert the following provision: bid samples apr 2002 a bid sample meansa productsample required to be submittedby', 32352:'a bidder toshow those characteristicsof the offered products that cannot adequately be described by specifications, purchase descriptions, or the invitation', 32353:'for bid e.g., balance, facility of use, or pattern. b bidders must furnish bid samples as part of the bid.', 32354:'the government must receive the bid samples by the time specified in the invitation for bids. if the bidder fails', 32355:'to submit samples on time, the government will reject the bid, except that the contracting officer will consider alate sample', 32356:'sent by mail under the late submissions, modifications, and withdrawals of bids provision of thissolicitation. c the government will test', 32357:'or evaluate bid samples to determine compliance with all the characteristics listed for examination in this solicitation. the government will', 32358:'reject the bid when the sample fails to conform to the required characteristics. products delivered under any resulting contract must', 32359:'conform to 1 the approved sample for the characteristics listed for test or evaluation; and 2 the specifications for all', 32360:'other characteristics. d unless otherwise specified in the solicitation, bid samples shall be52.2 115 52.21421 federal acquisition regulation 1 submitted', 32361:'at no expense to the government; and 2 returned at the bidder’s request and expense, unless they are destroyed during', 32362:'preaward testing. end of provision alternate i may 2002. as prescribed in 14.2016 o2i, insert the following alternate i: e', 32363:'at the discretion of the contractingofficer, the requirement for furnishingbid samples may be waivedfora bidder if 1 the bidstates that', 32364:'the offered product is the same as a product offered by thebidder to the [as appropriate, the contracting officer shall', 32365:'designate the contracting office or an alternate activity or office]; and 2 the contracting officer determines that the previously offered', 32366:'product was acceptedor tested and found tocomply with specification and other requirements for technical acceptability conforming in every material respect', 32367:'with those in this solicitation. alternate ii may 2002. as prescribed in 14.2016o2ii, insert the following alternate ii: e at', 32368:'the discretion of the contractingofficer, the requirements for furnishing bid samples may be waived for a bidder if 1 the', 32369:'bidstates that the offered product is the same as a product offered by thebidder to the [as appropriate, the contracting', 32370:'officer shall designate the contracting office or an alternate activity or office] on a previous acquisition; 2 the contracting officer', 32371:'determines that the previously offered product was acceptedor tested and found tocomply with specification and other requirements for technical acceptability', 32372:'conforming in every material respect with those of this solicitation; and 3 the productoffered under this solicitationwill be produced under', 32373:'a resulting contract at thesame plantin whichthe previously acquired or tested product was produced. 52.21421 descriptive literature. as prescribed in', 32374:'14.2016p1, insert the following provision: descriptive literature apr 2002 a descriptive literature, as used in this provision, means information furnished', 32375:'by a bidder, such as cuts, illustrations, drawings, and brochures, that shows a product’scharacteristics orconstruction or explains its operation. the', 32376:'termincludes only that information required to evaluate the acceptability of the product and excludes other information for operating or maintaining', 32377:'the product. b descriptiveliterature is required to establish, for the purpose of evaluationand award, details of theproduct offered that are', 32378:'specified elsewhere in the solicitation and pertain to significant elements such as 1 design; 2 materials; 3 components; 4 performance', 32379:'characteristics; and 5 methods of manufacture, assembly,construction, or operation. c descriptive literature, required elsewhere in this solicitation, shall be 1', 32380:'identifiedto show the items of the offer to which it applies; and 2 received by the time specified in this', 32381:'solicitation. d if the bidder fails to submit descriptive literature on time, the government will reject the bid, except that', 32382:'late descriptive literature sent by mail may beconsidered underthe latesubmissions, modifications, and withdrawals of bids provision of this solicitation. e', 32383:'if the descriptive literature fails to show that the product offered conforms to the requirements of the solicitation, the government', 32384:'will reject the bid. end of provision alternate i jan 2017. as prescribed in 14.2016p2, add the following paragraphs f', 32385:'and g to the basic provision: 52.2116 subpart 52.2 text of provisions and clauses 52.21423 f the contracting officer may', 32386:'waive the requirement for furnishing descriptive literatureif the offeror has supplied a product that is the same as that required', 32387:'by this solicitation under a prior contract. a bidder that requests a waiver of this requirement shall provide the following', 32388:'information: prior contract number date of prior contract line item number of product supplied name and address of government activity', 32389:'to which delivery was made date of final delivery of product supplied g bidders shall submit bids on the basis', 32390:'of required descriptive literature or on the basis of a previously supplied product under paragraph f of this provision. a', 32391:'bidder submitting a bid on one of these two bases may not elect to have its bid considered on the', 32392:'alternative basis after the time specified for receipt of bids. the government will disregard a bidders request for a waiver', 32393:'under paragraph f if that bidder has submitted the descriptive literature requested under this solicitation. 52.21422 evaluation of bids for', 32394:'multiple awards. as prescribed in 14.2016q, insert the following provision: evaluation of bids for multiple awards mar 1990 in addition', 32395:'to other factors, bids will be evaluated on the basis of advantages and disadvantages to the government that might result', 32396:'from making more than one award multiple awards. it is assumed, for the purpose of evaluating bids, that $500 would', 32397:'be the administrative cost to the government for issuing and administering each contract awarded under this solicitation, and individual awards', 32398:'will be for the items or combinations of items that result in the lowest aggregate cost to the government, including', 32399:'the assumed administrative costs. end of provision 52.21423 late submissions, modifications, revisions, and withdrawals of technical proposalsunder twostep sealed bidding.', 32400:'as prescribed in 14.2016r, insert the following provision: late submissions, modifications, revisions, and withdrawals of technical proposals under twostep sealed', 32401:'biddingnov 1999 a bidders are responsible for submitting technical proposals, and any modifications or revisions, so as to reach the', 32402:'government officedesignated in therequest for technical proposals by thetime specifiedin theinvitation for bids ifb. if no time is specifiedin theifb,', 32403:'the time for receipt is4:30 p.m., local time, for the designatedgovernmentoffice on the date that bids or revisions are due.', 32404:'b 1 any technical proposal under step one of twostep sealed bidding, modification, revision, or withdrawal of such proposal received', 32405:'at the government office designated in the request for technicalproposalsafter the exact time specifiedfor receipt willnot be considered unless the', 32406:'contracting officer determines that accepting the late technical proposal would not unduly delay the acquisition; and i if it was', 32407:'transmitted through an electronic commerce method authorized by the request for technical proposals, it was received at the initial point', 32408:'of entry to the government infrastructure not later than 5:00 p.m. oneworking day prior to the date specified for receipt', 32409:'of proposals; or ii there is acceptable evidence to establish that it was received at the government installation designated for', 32410:'receipt ofoffers and wasunder thegovernment’s control priorto the time setforreceipt; or iii it is the only proposal received and it', 32411:'is negotiated under part 15 of the federal acquisition regulation. 2 however, a late modification of an otherwisesuccessfulproposal that makes', 32412:'its termsmore favorableto the government will be considered at any time it is received and may be accepted. 52.2117 52.21424', 32413:'federal acquisition regulation c acceptable evidence to establish the time of receipt at the government installation includes the time/date stamp', 32414:'of that installation on the technical proposal wrapper, other documentary evidence ofreceipt maintained by the installation, ororal testimony or statements', 32415:'of government personnel. d if an emergency orunanticipated event interrupts normal governmentprocesses so that technical proposals cannot bereceived at thegovernmentoffice', 32416:'designated for receipt of technical proposals bythe exact time specified in the request for technical proposals, and urgent government requirements', 32417:'preclude amendment ofthe request for technical proposals, the time specified for receipt of technical proposals will be deemed to be', 32418:'extended to the same time of day specified in the request for technical proposals on the first work day on', 32419:'which normal government processes resume. e technical proposalsmay be withdrawn by written notice received atanytime before the exacttime setforreceipt of', 32420:'technical proposals. if the request for technical proposals authorizes facsimile technical proposals, they may be withdrawn via facsimile received at', 32421:'any time before the exact time set for receipt of proposals, subject to the conditions specified in the provision at', 32422:'52.21431, facsimile bids. a technical proposal may be withdrawn in person by a bidder or its authorized representative if, before', 32423:'the exact time set for receipt of technical proposals, the identity of the person requesting withdrawal is established and the', 32424:'person signs a receipt for the technical proposal. end of provision 52.21424 multiple technical proposals. as prescribed in 14.2016s, insert', 32425:'the following provision: multiple technical proposals apr 1984 in the first step of this twostep acquisition, solicited sources are encouraged', 32426:'to submit multiple technical proposals presenting different basicapproaches. each technical proposalsubmitted will be separatelyevaluated and the submitter will benotified as', 32427:'to its acceptability. end of provision 52.21425 step two oftwostep sealed bidding. as prescribed in 14.2016t, insert the following provision:', 32428:'step two of twostep sealed bidding apr 1985 a this invitation for bids is issued to initiate step two of', 32429:'twostep sealed bidding under subpart 14.5 of the federal acquisition regulation. b the only bids thatthe contracting officermay considerforaward of', 32430:'a contract are those received from bidders that have submitted acceptable technical proposals in step one of this acquisition under', 32431:'[the contracting officer shall insert the identification of the stepone request for technical proposals]. c any bidder that has submitted', 32432:'multiple technical proposals in step one of this acquisition may submit a separate bid on each technical proposal that was', 32433:'determined to be acceptable to the government. end of provision 52.21426 audit and recordssealed bidding. as prescribed in 14.2017a1, insert', 32434:'the following clause: audit and recordssealed bidding jun 2020 a as used in this clause, records includes books, documents, accounting', 32435:'procedures and practices, and other data, regardless of type and regardless of whether such items are in written form, in', 32436:'the form of computer data, or in any other form. b certified cost or pricing data. if the contractor has', 32437:'been required to submit certified cost or pricing data in connection with the pricing of any modificationto this contract, the', 32438:'contracting officer, or an authorized representative of the 52.2118 subpart 52.2 text of provisions and clauses 52.21427 contracting officer, in', 32439:'order to evaluate the accuracy, completeness, andcurrencyof the certified cost orpricing data, shall have theright to examine and audit all', 32440:'ofthe contractor’srecords, includingcomputations and projections, related to 1 the proposal for the modification; 2 the discussions conducted on the proposals,', 32441:'including those related to negotiating; 3 pricing of the modification; or 4 performance of the modification. c comptroller general. in', 32442:'the case of pricing any modification, the comptroller general of the united states, or an authorized representative, shall have the', 32443:'same rights as specified in paragraph b of this clause and also the right to interview any current employee regarding', 32444:'such transactions. d availability. thecontractor shall makeavailableat its office at all reasonable times the materials described in paragraph b of', 32445:'this clause, for examination, audit, or reproduction, until 3 years after final payment under this contract, or for any other', 32446:'period specified in subpart 4.7ofthefederalacquisitionregulationfar. far subpart 4.7, contractor records retention, ineffect on the date ofthis contract, is incorporated by', 32447:'reference in its entirety and made a part of this contract. 1 if this contract is completely or partially terminated,', 32448:'the records relating to the work terminated shall be made available for 3 years after any resulting final termination settlement.', 32449:'2 records pertaining to appeals under the disputes clause or to litigation or the settlement of claims arising under or', 32450:'relating to the performance of this contract shall be made available until disposition of such appeals, litigation, or claims. e', 32451:'subcontracts. the contractor shall insert a clause containing all the provisions of this clause, including this paragraph e, in all', 32452:'subcontracts expected to exceed the threshold for submissionof certified cost or pricing data in far 15.4034a1 on the date of', 32453:'subcontract award. end of clause alternate i mar 2009. as prescribed in 14.2017a2, substitute the following paragraphs c and e', 32454:'for paragraphs c and e of the basic clause: c the comptroller general of the united states, an appropriate inspector', 32455:'general appointed under section 3 or 8 g of the inspector general act of 1978 5 u.s.c. app., or an', 32456:'authorized representativeof either of the foregoing officials, shall have access to and the right to 1 examine any of thecontractor’s', 32457:'or any subcontractors records that pertain to, and involve transactions relating to, this contract or a subcontract hereunder; and 2', 32458:'interview any officer or employee regarding such transactions. e1 except as provided in paragraph e2, the contractor shall insert a', 32459:'clause containing the provisions of this clause, including this paragraph e, in all subcontracts. 2 the authority of the inspector', 32460:'general under paragraph c2 of this clause does not flow down to subcontracts. 52.21427 price reduction for defective certified cost', 32461:'or pricing datamodificationssealed bidding. as prescribed in 14.2017b, insert the following clause: price reduction for defective certified cost or pricing', 32462:'datamodificationssealed bidding jun 2020 a this clause shall become operative only for any modification to this contract involving aggregate increases', 32463:'and/or decreases in costs, plus applicable profits, expected to exceed the threshold for the submission of certified cost or pricing', 32464:'data in federal acquisition regulationfar 15.4034a1 on the date of execution of the modification, except that this clause doesnot apply', 32465:'to a modification if an exception under far 15.4031b applies. b if any price, including profit, negotiated in connection with', 32466:'any modification under this clause, was increased by any significant amount because 1 the contractor or a subcontractor furnished certified', 32467:'cost or pricing data that were not complete, accurate, and current as certified in its certificate of current cost or', 32468:'pricing data, 2a subcontractor or prospective subcontractor furnished the contractor certified cost or pricing data that were not complete, accurate,', 32469:'and current as certified in the contractor’s certificate of current costor pricing data, or 3 any ofthese parties furnished data', 32470:'of any description that were not accurate, the price shall be reduced accordingly and the contract shall be modified to', 32471:'reflect the reduction. this right to a price reduction is limited to that resulting from defects in data relating to', 32472:'modifications for which this clause becomes operative under paragraph a of this clause 52.2119 52.21428 federal acquisition regulation c any', 32473:'reduction in the contract price under paragraph b of this clause due to defective data from a prospective subcontractor that', 32474:'was not subsequently awarded the subcontract shall be limited to the amount, plus applicable overhead and profit markup, by which1the', 32475:'actual subcontract or 2 the actual cost to the contractor,if there was no subcontract, was less than the prospective subcontract', 32476:'cost estimate submitted by the contractor; provided, that the actual subcontract price was not itself affected by defective certified cost', 32477:'or pricing data. d 1ifthecontractingofficerdeterminesunderparagraphbofthisclausethatapriceorcostreductionshouldbe made, the contractor agrees not to raise the following matters as a defense: ithe contractoror', 32478:'subcontractor was a sole source supplier or otherwise was in asuperior bargaining position and thus the price of the contract', 32479:'would not have been modified even if accurate, complete, and current certified cost or pricing data had been submitted. iithe', 32480:'contracting officer should have known thatthe certified cost or pricing data in issue were defectiveeven though the contractor or subcontractor', 32481:'took no affirmative action to bring the characterof the data to the attention of the contracting officer. iii the contract', 32482:'was based on an agreement about the total cost of the contract and there was no agreement about the cost', 32483:'of each item procured under the contract. iv the contractor or subcontractor did not submit a certificate of current cost', 32484:'or pricing data. 2 iexceptasprohibitedbysubdivisiond2iiofthisclause,anoffsetinanamountdeterminedappropriateby thecontracting officer basedupon thefacts shall be allowed against the amount of a contract price reduction', 32485:'if athe contractor certifies to thecontracting officer that, to thebest of the contractor’s knowledge and belief, thecontractor is entitled to', 32486:'the offset in the amount requested; and b the contractor proves that the certified cost or pricing data were available', 32487:'before the date of agreement on the price of the contract or price of the modification and that the data', 32488:'were not submitted before such date. iian offset shall not be allowed if a the understated data was known by', 32489:'the contractor to be understated when the certificate of current cost or pricing data was signed; or b the government', 32490:'proves that the facts demonstrate that the contract price would not have increased in the amount to be offsetevenif the', 32491:'available data had been submittedbefore thedate of agreementon price. e if any reduction in the contract price under this clause', 32492:'reduces the price of items for which payment was made prior to the date of the modification reflecting the price', 32493:'reduction, the contractor shall be liable to and shall pay the united states at the time such overpayment is repaid', 32494:'1 interestcompoundeddaily, asrequired by 26u.s.c.6622, the amount of such overpayment to be computed from the dates of overpayment to the', 32495:'contractor to the date the government is repaid by the contractor at the applicable underpayment rate effective for each quarter', 32496:'prescribedby the secretary ofthe treasury under 26 u.s.c. 6621a2; and 2 a penalty equal to the amount of the overpayment,', 32497:'if the contractor or subcontractor knowingly submitted certified cost or pricing data which were incomplete, inaccurate, or noncurrent. end of', 32498:'clause 52.21428 subcontractor certified cost or pricing datamodificationssealed bidding. as prescribed in 14.2017c1i, insert the following clause in solicitations and', 32499:'contracts: subcontractor certified cost or pricing datamodificationssealed bidding jun 2020 a the requirements of paragraphs b and c of this', 32500:'clause shall 1 become operative only for any modification to this contract involving aggregate increases and/or decreases in costs, plus', 32501:'applicable profits, expected to exceed the threshold for submission of certified cost or pricing data in federal acquisition regulation far', 32502:'15.4034a1 on the date of execution of the modification; and 2 be limited to such modifications. b before awarding any', 32503:'subcontract expected to exceed the threshold for submission of certified cost or pricing data in far 15.4034a1, on the date', 32504:'ofagreement on price orthe date of award, whichever is later, or beforepricing any subcontract modifications involving aggregate increases and/or decreases', 32505:'in costs, plus applicable profits, expected to exceed the threshold for submission of certified cost or pricing data in far', 32506:'15.4034a1, the contractor shall require the subcontractor to submit certified cost or pricing data actually or by specific identification in', 32507:'writing, as part of the 52.2120 subpart 52.2 text of provisions and clauses 52.21431 subcontractor’s proposal in accordance with far', 32508:'15.408, table 152to include any information reasonably required to explain the subcontractor’s estimatingprocess such as the judgmental factors applied and', 32509:'the mathematical orothermethods used in the estimate, including those used in projecting from known data, and the nature and amount', 32510:'of any contingencies includedin the price, unless an exception under far 15.4031b applies. if the threshold for submission of certified', 32511:'cost or pricing data specified in far 15.4034a1 is adjustedforinflation asset forthin far 1.109a, thenpursuant to far 1.109d the changed', 32512:'threshold applies throughout the remaining term of the contract, unless there is a subsequent threshold adjustment. c thecontractor shall require', 32513:'thesubcontractorto certify in substantially the formprescribed in far subsection 15.4062 that, to the best of its knowledge and belief, the', 32514:'data submitted under paragraph b of this clause were accurate, complete, and current as of the date of agreement on', 32515:'the negotiated price of the subcontract or subcontract modification. d the contractor shall insert the substance of this clause, including', 32516:'this paragraph d, in each subcontract that, when entered into, exceeds the thresholdforsubmission of certified cost orpricing data in far', 32517:'15.4034a1. end of clause alternate i aug 2020. as prescribed in 14.2017c1ii, substitute the following paragraph b in place of', 32518:'paragraph b of the basic clause: b unlessan exception under far 15.4031b applies, the contractor shall require the subcontractor to', 32519:'submit certified cost or pricing data actually or by specific identification in writing, as part of the subcontractors proposal in', 32520:'accordance with far 15.408, table 152to include any information reasonably required to explain the subcontractors estimating process such as the', 32521:'judgmental factors applied and the mathematical or other methods used in the estimate, including those used in projecting from known', 32522:'data, and the nature and amount of any contingencies included in the price— 1 before modifying any subcontract that was', 32523:'awarded prior to july 1, 2018, involving a pricing adjustment expected to exceed $750,000; or 2 before awarding any subcontract', 32524:'expected to exceed $2 million on or after july 1, 2018, or modifying any subcontract that was awarded on or', 32525:'after july 1, 2018, involving a pricing adjustment expected to exceed $2 million. 52.21429 order of precedencesealed bidding. as prescribed', 32526:'in 14.2017d, insert the following clause: order of precedencesealed bidding jan 1986 any inconsistency in this solicitation or contract shall', 32527:'be resolved by giving precedence in the following order: a the schedule excluding the specifications; b representations and other instructions;', 32528:'c contract clauses; d other documents, exhibits, and attachments; and e the specifications. end of clause 52.21430 [reserved] 52.21431 facsimile', 32529:'bids. as prescribed in 14.2016v, insert the following provision: facsimile bids dec 1989 a definition. facsimile bid, as used in', 32530:'this solicitation, means a bid, modification of a bid, or withdrawal of a bid that is transmitted to and received', 32531:'by the government via electronic equipment that communicates and reproduces both printed and handwritten material. b bidders may submit facsimile', 32532:'bids as responses to this solicitation. these responses must arrive at the place and by the time, specified in the', 32533:'solicitation. 52.2121 52.21432 federal acquisition regulation c facsimile bids that fail to furnish required representations or information or that reject', 32534:'any of the terms, conditions, and provisions of the solicitation may be excluded from consideration. d facsimile bids must contain', 32535:'the required signatures. e thegovernment reserves the right to makeaward solely onthe facsimile bid. however,if requested todo so by the', 32536:'contracting officer, theapparently successful bidder agrees to promptlysubmit thecomplete original signed bid. f facsimile receiving data and compatibility characteristics are', 32537:'as follows: 1 telephonenumber of receivingfacsimile equipment: 2 compatibility characteristics of receiving facsimile equipment e.g., make andmodel number, receiving speed,', 32538:'communications protocol: g if the bidder chooses to transmit a facsimile bid, the government will not be responsible for any', 32539:'failure attributable to the transmission or receipt of the facsimile bid including, but not limited to, the following: 1 receipt', 32540:'of garbled or incomplete bid. 2 availability orcondition of thereceiving facsimile equipment. 3 incompatibility between the sending and receiving equipment.', 32541:'4 delay in transmission or receipt of bid. 5 failure of the bidder to properly identify the bid. 6 illegibility', 32542:'of bid. 7 security of bid data. end of provision 52.21432 [reserved] 52.21433 [reserved] 52.21434 submission of offers in the', 32543:'english language. as prescribed in 14.2016w, insert the following provision: submission of offers in the english language apr 1991 offers', 32544:'submitted in response to this solicitation shall be in the english language. offers received in otherthan english shall be rejected.', 32545:'end of provision 52.21435 submission of offers in u.s. currency. as prescribed in 14.2016x, insert the following provision: submission of', 32546:'offers in u.s. currency apr 1991 offers submitted in response to this solicitation shall be in terms of u.s. dollars.', 32547:'offers received in other than u.s. dollars shall be rejected. end of provision 52.2122 subpart 52.2 text of provisions and', 32548:'clauses 52.2151 52.215[reserved] 52.2151instructions to offerorscompetitive acquisition. as prescribed in 15.209a, insert the following provision: instructions to offerorscompetitive acquisition nov', 32549:'2021 a definitions. as used in this provision discussions are negotiations thatoccur afterestablishment of the competitiverange that may,at the contracting', 32550:'officer’s discretion, result in the offeror being allowedto revise its proposal. in writing, writing, or written means any worded or', 32551:'numbered expression that can be read, reproduced, and later communicated, and includes electronically transmitted and stored information. proposal modification is', 32552:'a changemade to a proposal before the solicitation’s closing dateand time, or madein response to an amendment, or made to', 32553:'correct a mistake at any time before award. proposal revision is a change to a proposal made after the solicitation', 32554:'closing date, at the request of or as allowed by a contracting officeras the result of negotiations. time, if stated', 32555:'as a number of days, is calculated using calendar days, unless otherwise specified, and will include saturdays, sundays, and legal', 32556:'holidays. however, if the last day falls on a saturday, sunday, orlegal holiday, then the period shall include the nextworking', 32557:'day. b amendments to solicitations. if this solicitation is amended, all terms and conditions that are not amended remain unchanged.', 32558:'offerors shall acknowledge receipt ofanyamendment to this solicitation by the date and time specified in the amendments. c submission, modification,', 32559:'revision, and withdrawal of proposals. 1 unless other methods e.g., electronic commerce or facsimile are permitted in the solicitation, proposals', 32560:'and modifications to proposals shall be submitted in paper media in sealed envelopes or packages i addressed tothe office specified', 32561:'in the solicitation, and ii showing the time and date specified for receipt, the solicitation number, and the name and', 32562:'addressof the offeror. offerorsusing commercialcarriers should ensure that the proposal is marked on the outermost wrapper with the information in', 32563:'paragraphs c1i and c1ii of this provision. 2 the first page of the proposal must show– i the solicitation number;', 32564:'iithe name, address, and telephone and facsimilenumbers of the offerorand electronic address if available; iii a statement specifying the extent', 32565:'of agreement with all terms, conditions, and provisions included in the solicitation and agreement to furnishany or all items upon', 32566:'which prices are offeredat the price set opposite eachitem; iv names, titles, and telephone and facsimile numbers and electronic addresses', 32567:'if available of persons authorized to negotiateon the offeror’s behalf with thegovernment in connection with this solicitation; and v name,', 32568:'title, and signature of person authorized to sign the proposal. proposals signed by an agent shall be accompanied by evidence', 32569:'of thatagent’s authority, unless that evidence has been previouslyfurnished tothe issuing office. 3 submission, modification, revision, and withdrawal of proposals.', 32570:'i offerors are responsible for submitting proposals, and any modifications or revisions, so as to reach thegovernmentoffice designated in the', 32571:'solicitationby the time specified in the solicitation. if no time is specified in the solicitation, the time for receipt is', 32572:'4:30 p.m., local time, for the designated government office onthe datethat proposal or revision is due. ii aanyproposal,modification,orrevisionreceivedatthegovernmentofficedesignatedinthesolicitation after the', 32573:'exact time specified for receipt ofoffers is late and willnot be considered unless it is received before awardis made, thecontracting', 32574:'officer determines thataccepting the lateoffer would not unduly delay the acquisition; and 1 if it was transmitted through an electronic', 32575:'commerce method authorized by the solicitation, it was received at the initial point of entry to the government infrastructure not', 32576:'later than 5:00 p.m. one working day prior to the date specified for receipt of proposals; or 2 there is', 32577:'acceptable evidence to establish that it was received at the government installation designated for receipt ofoffers and wasunder thegovernment’s control', 32578:'priorto the time setforreceipt of offers; or 3 it is the only proposal received. b however,a late modification ofan otherwise', 32579:'successful proposal that makes itsterms more favorable to the government, will be considered at any time it is received and', 32580:'may be accepted. 52.2123 52.2151 federal acquisition regulation iii acceptable evidence to establish the time of receipt at the government', 32581:'installation includes the time/date stamp of that installationon the proposal wrapper, other documentary evidence of receipt maintained by the installation,', 32582:'or oral testimony or statements of government personnel. iv ifan emergency or unanticipated event interrupts normalgovernmentprocessesso that proposals cannot bereceived', 32583:'at theoffice designated for receipt of proposals by the exact time specified in the solicitation, and urgent government requirements preclude', 32584:'amendment of the solicitation, the time specified for receipt of proposals will be deemed to be extended to the same', 32585:'time of day specified in the solicitation on the first work day on which normal government processes resume. v proposals', 32586:'may be withdrawn by written notice received at any time before award. oral proposals in response to oral solicitations may', 32587:'bewithdrawnorally. if the solicitation authorizes facsimile proposals, proposals may be withdrawn via facsimile received at any time before award, subject', 32588:'to the conditions specified in the provision at 52.2155, facsimile proposals. proposals maybe withdrawn inpersonby an offeror or an authorizedrepresentative,', 32589:'ifthe identity of the person requesting withdrawal is established and the person signs a receipt for the proposal before award.', 32590:'4 unlessotherwise specified in the solicitation, the offeror may propose to provideanyitem orcombinationof items. 5 offerorsshallsubmit proposals in response tothis', 32591:'solicitation in english, unless otherwise permitted by the solicitation,andin u.s. dollars, unless the provision at far 52.22517, evaluation offoreign currency', 32592:'offers, is included in the solicitation. 6 offerorsmay submit modifications to their proposals at any time before the solicitation closing', 32593:'date and time, and may submit modifications in response to an amendment, or to correct a mistake at any time', 32594:'before award. 7 offerorsmay submit revisedproposalsonlyif requested or allowedby the contracting officer. 8 proposals may be withdrawn at any time', 32595:'beforeaward. withdrawals are effective upon receipt of notice by the contracting officer. d offer expiration date. proposals in response to', 32596:'this solicitation will be valid for the number of days specified on the solicitation cover sheet unless a different period', 32597:'isproposed by theofferor. e restriction on disclosure and use of data.offerors thatinclude in their proposals data that theydo not want', 32598:'disclosed to the public for any purpose, or used by the government except for evaluation purposes, shall 1 mark the', 32599:'title page with the following legend: this proposal includes data that shall not be disclosed outside the government and shall', 32600:'not be duplicated, used, or disclosedin wholeor in partforany purpose other than to evaluate this proposal. if, however, acontract is', 32601:'awardedto this offeror as aresult ofor in connection withthe submission ofthis data, the governmentshallhavethe right to duplicate, use, or disclose', 32602:'the data to the extent provided in the resulting contract. this restriction does not limit the governments right to use', 32603:'information contained in this data if it is obtained from another source without restriction. the data subject to this restriction', 32604:'are contained in sheets [insert numbers or other identification of sheets]; and 2 mark each sheet of data it wishes', 32605:'to restrict with the following legend: use or disclosure of data contained on this sheet is subject to the restriction', 32606:'on the title page of this proposal. f contract award. 1 the government intends to award a contract or contracts', 32607:'resulting from this solicitation to the responsible offerors whose proposals represents the best value after evaluationin accordance with thefactors and', 32608:'subfactors in the solicitation. 2 the government mayreject any or all proposals if suchaction is in the government’s interest. 3', 32609:'the government may waive informalities and minor irregularities in proposals received. 4 the government intends to evaluate proposals andaward acontract', 32610:'withoutdiscussions with offerors except clarifications as described in far 15.306a. therefore, the offeror’s initial proposalshouldcontain the offeror’s best terms from', 32611:'a cost or price and technical standpoint. the government reserves the right to conduct discussions if the contracting officer later', 32612:'determines themto benecessary. if the contracting officer determines that the number of proposalsthat would otherwise be in the competitive rangeexceeds', 32613:'the numberat which an efficient competition can be conducted, the contracting officermay limit the number of proposals in the competitiverange', 32614:'to the greatest number that will permit an efficientcompetition amongthe most highly ratedproposals. 5 the government reserves therightto make an', 32615:'award on any item for aquantity less than thequantity offered, at the unit cost orprices offered, unless the offeror specifies', 32616:'otherwise in the proposal. 6 the government reserves the right to make multiple awards if, after considering the additional administrative', 32617:'costs, it is in thegovernment’s best interest to doso. 7 exchangeswith offerors after receipt of a proposaldo not constitute a', 32618:'rejection or counteroffer by the government. 52.2124 subpart 52.2 text of provisions and clauses 52.2152 8 the government may determine', 32619:'that a proposal is unacceptable if the prices proposed are materially unbalanced between line items or subline items. unbalanced pricing', 32620:'exists when, despite an acceptable total evaluated price, the price of one or more line items is significantly overstated or', 32621:'understated as indicated by the application of cost or price analysis techniques. a proposal maybe rejected if the contracting officer', 32622:'determines that the lack ofbalance poses an unacceptable risk to the government. 9 if a cost realism analysis is performed,', 32623:'cost realism may be considered by the source selection authority in evaluating performance or schedule risk. 10 a written awardor', 32624:'acceptanceof proposal mailed or otherwise furnished to the successful offerorwithin thetime specified in the proposal shall result in a bindingcontract', 32625:'withoutfurther action by eitherparty. 11 if a postawarddebriefingis given to requesting offerors, the government shall disclose the followinginformation, if applicable:', 32626:'ithe agency’s evaluation of the significant weak or deficient factors in the debriefedofferor’s offer. iithe overall evaluated cost orprice and', 32627:'technical rating of the successful and the debriefed offeror and past performanceinformationon the debriefed offeror. iii the overall ranking of', 32628:'all offerors, when any ranking was developed by the agency duringsource selection. iv a summary of the rationale for award.', 32629:'v for acquisitions of commercial products, the make and model of the product to be delivered by the successful offeror.', 32630:'vi reasonable responses to relevant questions posed bythe debriefed offeror as towhethersourceselection procedures setforth in the solicitation, applicableregulations, and other', 32631:'applicable authorities werefollowed bythe agency. end of provision alternate i oct1997. as prescribed in 15.209a1, substitute the following paragraph f4', 32632:'for paragraph f4 of the basic provision: f4 thegovernment intends toevaluateproposals and award a contractafter conducting discussions with offerors whose', 32633:'proposals have been determined to be within the competitive range. if the contracting officer determines that the number ofproposals that', 32634:'would otherwise be in the competitive range exceeds thenumber atwhich an efficient competition can be conducted, the contracting officer may', 32635:'limit the numberof proposals in the competitiverange to the greatest number that will permit an efficient competition among the most', 32636:'highly rated proposals. therefore, the offerors initial proposal should contain the offerors best terms from aprice and technical standpoint. alternate', 32637:'ii oct1997. as prescribed in 15.209a2, add a paragraph c9 substantially the same as the following to the basic clause:', 32638:'c9offerors may submit proposals that depart from stated requirements. suchproposalsshallclearly identifywhy the acceptance of the proposal would be advantageous to', 32639:'the government. any deviations from the terms and conditions of the solicitation, as well as the comparative advantage to the', 32640:'government, shall be clearly identified and explicitly defined. the government reserves the right to amend the solicitation to allow all', 32641:'offerors an opportunity tosubmit revised proposals based on the revised requirements. 52.2152 audit and recordsnegotiation. as prescribed in 15.209b, insert', 32642:'the following clause: audit and recordsnegotiation jun 2020 a as used in this clause, records includes books, documents, accounting procedures', 32643:'and practices, and other data, regardless of type and regardless of whether such items are in written form, in the', 32644:'form of computer data, or in any other form. b examination of costs. ifthisis a costreimbursement,incentive, timeandmaterials, laborhour, orprice redeterminable', 32645:'contract, or any combination of these, thecontractor shall maintain and the contracting officer, or anauthorized representative of the contracting officer,', 32646:'shall have the right toexamine and audit allrecordsandotherevidence sufficient to reflect properly all costs claimed to have been incurred or', 32647:'anticipated to be incurred directly or indirectly in performance of this contract. this right of examination shall include inspection at', 32648:'all reasonabletimes of the contractor’s plants, or parts of them, engaged in performing the contract. 52.2125 52.2152 federal acquisition regulation', 32649:'c certified cost or pricing data. if the contractor has been required to submit certified cost or pricing data in', 32650:'connection with any pricing action relating to thiscontract, the contractingofficer, or an authorizedrepresentative of the contracting officer, in order to', 32651:'evaluate theaccuracy,completeness,and currency of thecertifiedcost or pricing data,shallhavethe right to examine andaudit all of the contractor’s records, including computations andprojections,', 32652:'related to 1 the proposal for the contract, subcontract, or modification; 2 the discussions conducted on the proposals, including those', 32653:'related to negotiating; 3 pricing of the contract, subcontract, or modification; or 4 performance of the contract, subcontract or modification.', 32654:'d comptroller general. 1 the comptroller general of the united states, or an authorized representative, shall have access to and', 32655:'theright to examine any of the contractor’s directly pertinent records involving transactions relatedto this contract or a subcontract hereunder and', 32656:'to interview any current employee regarding such transactions. 2 this paragraph may not be construed to require the contractor or', 32657:'subcontractor to create or maintain any record that thecontractor or subcontractor does not maintain in theordinarycourse of business or pursuant', 32658:'toa provision of law. e reports. if the contractor is required to furnish cost, funding, orperformance reports, the contracting officer', 32659:'or an authorized representative of thecontracting officer shall have theright to examine and audit the supporting records and materials, for', 32660:'the purpose of evaluating 1 the effectiveness of the contractor’s policies and procedures to produce data compatible with the objectivesof', 32661:'these reports; and 2 the data reported. f availability. the contractorshallmakeavailable atits office at all reasonable times the records, materials,', 32662:'and other evidence described in paragraphs a, b, c, d, and e of this clause, for examination, audit, or reproduction,', 32663:'until 3 years after final payment under this contract or for any shorter period specified in subpart 4.7, contractor records', 32664:'retention, of thefederal acquisition regulation far, or for any longer period required by statute orby other clauses of this contract.', 32665:'in addition 1 if this contract is completely or partially terminated, the contractor shall make available the records relating to', 32666:'the work terminated until 3 years after any resulting final termination settlement; and 2 the contractor shall make available records', 32667:'relating to appeals under the disputes clause or to litigation or the settlement of claims arising under or relating to', 32668:'this contract until such appeals, litigation, or claims are finally resolved. g the contractor shall insert a clause containing all', 32669:'the terms of this clause, including this paragraph g, in all subcontracts underthis contractthat exceed the simplified acquisition threshold, asdefined', 32670:'in far 2.101 on the date of subcontract award, and— 1 that are costreimbursement, incentive, timeandmaterials,laborhour, or priceredeterminable type or', 32671:'any combination of these; 2 for which certified cost or pricing data are required; or 3 that require the subcontractor', 32672:'to furnish reports as discussed in paragraph e of this clause. the clause may be altered only as necessary to', 32673:'identify properly the contracting parties and the contractingofficer under the government prime contract. end of clause alternate i mar 2009.', 32674:'as prescribed in 15.209 b2, substitute the following paragraphs d1 and g for paragraphs d1 and g of the basic', 32675:'clause: d comptroller general or inspector general. 1 the comptroller general of the united states, an appropriate inspector general appointed', 32676:'under section 3 or 8g of the inspector general act of 1978 5 u.s.c. app., or an authorized representative of', 32677:'either of the foregoingofficials, shall have access to and the right to iexamine any ofthe contractor’sor any subcontractor’srecords that pertain', 32678:'toandinvolve transactionsrelatingto this contract or a subcontract hereunder; and iiinterview anyofficer or employee regarding such transactions. g1 except as provided', 32679:'in paragraph g2 of this clause, the contractor shall insert a clause containing all the terms of this clause, including', 32680:'this paragraph g, in all subcontracts under this contract. the clause may be altered only as necessary to identify properly', 32681:'the contracting parties and the contracting officer under the government prime contract. 2 the authority of the inspector general under', 32682:'paragraph d1ii of this clause does not flow down to subcontracts. alternate ii aug 2016. as prescribed in 15.209b3, add', 32683:'the following paragraph h to the basic clause: 52.2126 subpart 52.2 text of provisions and clauses 52.2155 h the provisions', 32684:'of the omb uniform guidance at 2 cfr part 200, subpart f apply to this contract. alternate iii june1999. as', 32685:'prescribed in 15.209b4, delete paragraph d of the basic clause and redesignate the remaining paragraphsaccordingly, and substitute the following paragraph', 32686:'e for theredesignated paragraph e of the basic clause: e availability.the contractor shall make available at its officeat all reasonable', 32687:'times therecords, materials, and other evidence described in paragraphs a, b, c, and d of this clause, for examination, audit,', 32688:'or reproduction, until 3 years after final payment under this contract or for any shorter period specified in subpart 4.7,', 32689:'contractor records retention, of thefederal acquisition regulation far, or for any longer period required by statute orby other clauses of', 32690:'this contract. in addition 1 if this contract is completely or partially terminated, the contractor shall make available the records', 32691:'relating to the work terminated until 3 years after any resulting final termination settlement; and 2 the contractor shall make', 32692:'available records relating to appeals under the disputes clause or to litigation or the settlement of claims arising under or', 32693:'relating to this contract until such appeals, litigation, or claims are finally resolved. 52.2153 request for information or solicitation for', 32694:'planning purposes. as prescribed in 15.209c, insert the following provision: request for information or solicitation for planning purposes oct 1997', 32695:'a the government does not intend to award a contract on the basis of this solicitation or to otherwise pay', 32696:'for the information solicited except as an allowable cost under other contracts as provided in subsection 31.20518, bid and proposal', 32697:'costs, of the federal acquisition regulation. b although proposal and offeror are used in thisrequestforinformation, yourresponse will be treatedas information', 32698:'only. it shall not be used as a proposal. c this solicitation is issued for the purpose of: [state purpose].', 32699:'end of provision 52.2154 [reserved] 52.2155facsimile proposals. as prescribed in 15.209e, insert the following provision: facsimile proposals oct 1997 a', 32700:'definition. facsimile proposal, as used in this provision, means a proposal, revision or modification of a proposal, or withdrawal of', 32701:'a proposal that is transmitted to and received by the government via facsimile machine. b offerorsmay submit facsimile proposals as', 32702:'responses tothissolicitation. facsimile proposals are subject to thesame rules as paper proposals. c the telephone number of receiving facsimile equipment', 32703:'is: [insert telephone number]. d if anyportion of a facsimile proposal received by the contractingofficer isunreadableto thedegree that conformance to', 32704:'the essential requirements of the solicitation cannot be ascertained from the document 1 the contracting officer immediatelyshallnotify the offeror andpermitthe', 32705:'offeror to resubmit the proposal; 2 the method and time for resubmission shall be prescribed by the contractingofficer after consultation', 32706:'with the offeror; and 3 the resubmission shall be considered as if it were received at the date and time', 32707:'of the original unreadable submission for the purpose of determining timeliness, provided the offeror complieswith the timeand format requirements for', 32708:'resubmission prescribed by the contractingofficer. e thegovernment reserves the right to makeaward solely onthe facsimile proposal. however, ifrequested to do', 32709:'so by thecontracting officer,the apparently successful offeror promptly shall submitthe complete originalsigned proposal. end of provision 52.2127 52.2156 federal acquisition', 32710:'regulation 52.2156 place of performance. as prescribed in 15.209f, insert the following provision: place of performance oct 1997 a theofferor', 32711:'or respondent,in theperformance of any contract resulting from this solicitation, □ intends, □ does not intend [check applicable block] touse', 32712:'oneor more plants orfacilities located at a different address from the address of the offeror or respondent as indicated in', 32713:'this proposalor response torequest for information. b if the offeroror respondent checks intends in paragraph a ofthisprovision, it shall insert', 32714:'in the following spaces the required information: place of performance street address, city, state, county, zip code name andplant or', 32715:'fac address of owner and operator of the ility if other than offeror or respondent end of provision 52.2157 [reserved]', 32716:'52.2158order of precedenceuniform contract format. as prescribed in 15.209h, insert the following clause: order of precedenceuniform contract format oct 1997', 32717:'any inconsistency in this solicitation or contract shall be resolved by giving precedence in the following order: a the schedule', 32718:'excluding the specifications. b representations and other instructions. c contract clauses. d other documents, exhibits, and attachments. e the specifications.', 32719:'end of clause 52.2159changes or additions tomakeorbuy program. as prescribed in 15.408a, insert the following clause: changes or additions to', 32720:'makeorbuy program oct 1997 a the contractor shall perform in accordance with the makeorbuy program incorporated in this contract. if', 32721:'the contractor proposes to change the program, the contractor shall, reasonably in advance of the proposed change, 1 notify the', 32722:'contracting officerin writing, and 2 submit justification in sufficientdetail to permit evaluation. changes in the place of performance of any', 32723:'make items in the program are subject to this requirement. b for items deferred at the time of negotiation of', 32724:'this contract for later addition to the program, the contractor shall, at the earliest possible time 1 notify the contracting', 32725:'officer ofeach proposed addition; and 2 provide justification in sufficientdetail to permit evaluation. c modification of themakeorbuyprogramto incorporate proposed changes', 32726:'oradditions shall be effective upon the contractor’sreceipt of thecontracting officer’s written approval. end of clause alternate i oct 2010. as', 32727:'prescribed in 15.408 a1 add the following paragraph d to the basic clause: 52.2128 subpart 52.2 text of provisions and', 32728:'clauses 52.21510 d if the contractor desires to reverse the categorization of make or buy for any item or items', 32729:'designated in the contract as subject to this paragraph, it shall 1supportitsproposalwithcertifiedcostorpricingdatainaccordancewithfar 15.408, table 151 when required by far 15.403,', 32730:'and data other than certified cost or pricing data, to permit evaluation; and 2 afterapproval is granted, promptlynegotiate with the', 32731:'contractingofficer an equitablereduction in the contract price in accordance with paragraphkof the incentive pricerevisionfirm target clauseor paragraphm of the incentive', 32732:'price revisionsuccessive targets clause of this contract. alternate ii oct 2010. as prescribed in 15.408a2, add the following paragraph d', 32733:'to the basic clause: d if the contractor desires to reverse the categorization of make or buy for any item', 32734:'or items designated in the contract as subject to this paragraph, it shall 1supportitsproposalwithcertifiedcostorpricingdatainaccordancewithfar 15.408, table 151, when required by', 32735:'far 15.403, and data other than certified cost or pricing data, to permit evaluation; and 2 afterapproval is granted, promptlynegotiate', 32736:'with the contractingofficer an equitablereduction in the contracts total estimated cost and fee in accordance with paragraph e of the', 32737:'incentive fee clause of this contract. 52.21510 price reduction for defective certified cost or pricing data. as prescribed in 15.408b,', 32738:'insert the following clause: price reduction for defective certified cost or pricing data aug 2011 a if any price, including', 32739:'profit or fee, negotiated in connection with this contract, or any cost reimbursable under this contract, was increased by any', 32740:'significant amount because— 1 the contractor or a subcontractor furnished certified cost or pricing data that were not complete, accurate,', 32741:'and current as certified in its certificate of current cost or pricing data; 2 a subcontractor or prospective subcontractor furnished', 32742:'the contractor certified cost or pricing data that were not complete, accurate,andcurrent as certified in the contractor’s certificate of current', 32743:'cost or pricing data; or 3 any of these parties furnished data of any description that were not accurate, the', 32744:'price or cost shall be reduced accordingly and the contract shall be modified to reflect the reduction. b any reduction', 32745:'in the contract price under paragraph a of this clause due to defective data from a prospective subcontractor that was', 32746:'not subsequently awarded the subcontract shall be limited to the amount, plus applicable overhead and profit markup, by which1the actual', 32747:'subcontract or 2 the actual cost to the contractor,if there was no subcontract, was less than the prospective subcontract cost', 32748:'estimate submitted by the contractor; provided, that the actual subcontract price was not itself affected by defective certified cost or', 32749:'pricing data. c 1ifthecontractingofficerdeterminesunderparagraphaofthisclausethatapriceorcostreductionshouldbe made, the contractor agrees not to raise the following matters as a defense: ithe contractoror subcontractor', 32750:'was a sole source supplier or otherwise was in asuperior bargaining position and thus the price of the contract would', 32751:'not have been modified even if accurate, complete, and current certified cost or pricing data had been submitted. iithe contracting', 32752:'officer should have known thatthe certified cost or pricing data in issue were defectiveeven though the contractor or subcontractor took', 32753:'no affirmative action to bring the characterof the data to the attention of the contracting officer. iii the contract was', 32754:'based on an agreement about the total cost of the contract and there was no agreement about the cost of', 32755:'each item procured under the contract. iv the contractor or subcontractor did not submit a certificate of current cost or', 32756:'pricing data. 2 iexceptasprohibitedbysubdivisionc2iiofthisclause,anoffsetinanamountdeterminedappropriateby thecontracting officer basedupon thefacts shall be allowed against the amount of a contract price reduction if', 32757:'athe contractor certifies to thecontracting officer that, to thebest of the contractor’s knowledge and belief, thecontractor is entitled to the', 32758:'offset in the amount requested; and b the contractor proves that the certified cost or pricing data were available before', 32759:'the as of date specified on its certificate of current cost or pricing data, and that the data were not', 32760:'submitted before such date. iian offset shall not be allowed if— a the understated data were known by the contractor', 32761:'to be understated before the as of date specified on its certificate of current cost or pricing data; or 52.2129', 32762:'52.21511 federal acquisition regulation b the government proves that the facts demonstrate that the contract price would not have increased', 32763:'in the amount to be offsetevenif the available data had been submittedbefore the as of date specifiedon its certificate of', 32764:'current cost or pricing data. d if any reduction in the contract price under this clause reduces the price of', 32765:'items for which payment was made prior to the date of the modification reflecting the price reduction, the contractor shall', 32766:'be liable to and shall pay the united states at the time such overpayment is repaid 1 interestcompoundeddaily, asrequired by', 32767:'26 u.s.c.6622, on the amount of such overpayment to be computed from the dates of overpayment to the contractor to', 32768:'the date the government is repaid by the contractor at the applicable underpayment rate effective for each quarter prescribedby the', 32769:'secretary ofthe treasury under 26 u.s.c. 6621a2; and 2 a penalty equal to the amount of the overpayment, if the', 32770:'contractor or subcontractor knowingly submitted certified cost or pricing data that were incomplete, inaccurate, or noncurrent. end of clause 52.21511', 32771:'price reduction for defective certified cost or pricing datamodifications. as prescribed in 15.408c, insert the following clause: price reduction for', 32772:'defective certified cost or pricing datamodifications jun 2020 a this clause shall become operative only for any modification to this', 32773:'contract involving a pricing adjustment expected to exceedthe threshold for submission of certified costor pricingdata infederal acquisition regulation far 15.4034a', 32774:'1 on the date of execution of the modification, except that this clause does not apply to any modification if', 32775:'an exception underfar 15.4031b applies. b if any price, including profit or fee, negotiated in connection with any modification under', 32776:'this clause, or any cost reimbursable under this contract, was increased by any significant amount because 1 the contractor or', 32777:'a subcontractor furnished certified cost or pricing data that were not complete, accurate, and current as certified in its certificate', 32778:'of current cost or pricing data, 2a subcontractor or prospective subcontractor furnished the contractor certified cost or pricing data that', 32779:'were notcomplete, accurate, and currentas certified in the contractor’s certificate of currentcost or pricing data, or 3 any of these', 32780:'parties furnished data of any description that were not accurate, the price or cost shall be reduced accordingly and the', 32781:'contract shall be modified to reflect the reduction. this right to a price reduction is limited to that resulting from', 32782:'defects in data relating to modifications for which this clause becomes operative under paragraph a of this clause. c any', 32783:'reduction in the contract price under paragraph b of this clause due to defective data from a prospective subcontractor that', 32784:'was not subsequently awarded the subcontract shall be limited to the amount, plus applicable overhead and profit markup, by which1the', 32785:'actual subcontract or 2 the actual cost to the contractor,if there was no subcontract, was less than the prospective subcontract', 32786:'cost estimate submitted by the contractor; provided, that the actual subcontract price was not itself affected by defective certified cost', 32787:'or pricing data. d 1ifthecontractingofficerdeterminesunderparagraphbofthisclausethatapriceorcostreductionshouldbe made, the contractor agrees not to raise the following matters as a defense: ithe contractoror', 32788:'subcontractor was a sole source supplier or otherwise was in asuperior bargaining position and thus the price of the contract', 32789:'would not have been modified even if accurate, complete, and current certified cost or pricing data had been submitted. iithe', 32790:'contracting officer should have known thatthe certified cost or pricing data in issue were defectiveeven though the contractor or subcontractor', 32791:'took no affirmative action to bring the characterof the data to the attention of the contracting officer. iii the contract', 32792:'was based on an agreement about the total cost of the contract and there was no agreement about the cost', 32793:'of each item procured under the contract. iv the contractor or subcontractor did not submit a certificate of current cost', 32794:'or pricing data. 2 iexceptasprohibitedbyparagraphd2iiofthisclause,anoffsetinanamountdeterminedappropriatebythe contracting officerbased uponthe facts shall be allowed against the amount ofa contract price reductionif athe', 32795:'contractor certifies to thecontracting officer that, to thebest of the contractor’s knowledge and belief, thecontractor is entitled to the offset', 32796:'in the amount requested; and b the contractor proves that the certified cost or pricing data were available before the', 32797:'as of date specified on its certificate of current cost or pricing data, and that the data were not submitted', 32798:'before such date. 52.2130 subpart 52.2 text of provisions and clauses 52.21512 iian offset shall not be allowed if a', 32799:'the understated data were known by the contractor to be understated before the as of date specified on its certificate', 32800:'of current cost or pricing data; or b the government proves that the facts demonstrate that the contract price would', 32801:'not have increased in the amount to be offsetevenif the available data had been submittedbefore the as of date specifiedon', 32802:'its certificate of current cost or pricing data. e if any reduction in the contract price under this clause reduces', 32803:'the price of items for which payment was made prior to the date of the modification reflecting the price reduction,', 32804:'the contractor shall be liable to and shall pay the united states at the time such overpayment is repaid 1', 32805:'interestcompoundeddaily, asrequired by 26u.s.c.6622, on the amount of such overpayment to be computed from the dates of overpayment to the', 32806:'contractor to the date the government is repaid by the contractor at the applicable underpayment rate effective for each quarter', 32807:'prescribedby the secretary ofthe treasury under 26 u.s.c. 6621a2; and 2 a penalty equal to the amount of the overpayment,', 32808:'if the contractor or subcontractor knowingly submitted certified cost or pricing data that were incomplete, inaccurate, or noncurrent. end of', 32809:'clause 52.21512 subcontractor certified cost or pricing data. as prescribed in 15.408d1, insert the following clause: subcontractor certified cost or', 32810:'pricing data jun 2020 a before awarding any subcontract expected to exceed the threshold for submission of certified cost or', 32811:'pricing data in federalacquisition regulation far 15.4034a1, on the date of agreement on price or the date of award, whichever', 32812:'is later; or before pricing any subcontract modification involving a pricing adjustment expected to exceed the threshold for submission of', 32813:'certified cost or pricing data in far 15.4034a1, the contractor shall require the subcontractor to submit certified cost or pricing', 32814:'data actually orby specific identification in writing, in accordance with far 15.408, table 152to include any information reasonably required to', 32815:'explain the subcontractors estimating process such as the judgmental factors applied and the mathematical or other methods used in the', 32816:'estimate, including those used in projecting from known data, and the nature and amount of any contingencies included in the', 32817:'price, unless an exception under 15.4031b applies. if the threshold for submissionof certified cost or pricingdata specified in far 15.4034a1', 32818:'is adjusted for inflation as set forth in far 1.109a, then pursuant to far 1.109d the changed threshold applies throughout', 32819:'the remaining term of the contract, unless there is a subsequent threshold adjustment. b the contractor shall require the subcontractor', 32820:'to certify in substantially theform prescribed in far 15.4062 that, to the best of its knowledge and belief, the data', 32821:'submitted under paragraph a of this clause were accurate, complete, and current as of the date of agreement on the', 32822:'negotiated price of the subcontract or subcontract modification. c in each subcontract that, when entered into, exceeds the threshold for', 32823:'submission of certified cost or pricing data in far 15.4034a1, the contractor shall insert either— 1 the substance of this', 32824:'clause, including this paragraph c, if paragraph a of this clause requires submission of certified cost or pricing data for', 32825:'the subcontract; or 2 the substance of theclause at far 52.21513, subcontractor certified cost or pricing datamodifications. end of clause', 32826:'alternate i aug 2020. as prescribed in 15.408d2, substitute the following paragraph a in place of paragraph a of the', 32827:'basic clause: a unless an exception under far 15.4031 applies, the contractor shall require the subcontractor to submit certified cost', 32828:'or pricing data actually orby specific identification in writing, in accordance with far 15.408, table 152 to includeany information reasonably', 32829:'required to explain the subcontractors estimating process such as the judgmental factors applied and the mathematical or other methods used', 32830:'in the estimate, including those used in projecting from known data, and the nature and amount of any contingencies included', 32831:'in the price— 1 before modifying any subcontract that was awarded prior to july 1, 2018, involving a pricing adjustment', 32832:'expected to exceed $750,000; or 52.2131 52.21513 federal acquisition regulation 2 before awarding any subcontract expected to exceed $2 million', 32833:'on or after july 1, 2018, or modifying any subcontract that was awarded on or after july 1, 2018, involving', 32834:'a pricing adjustment expected to exceed $2 million. 52.21513 subcontractor certified cost or pricing datamodifications. as prescribed in 15.408e1, insert', 32835:'the following clause: subcontractor certified cost or pricing datamodifications jun 2020 a the requirements of paragraphs b and c of', 32836:'this clause shall— 1 become operative only for any modification to this contract involving a pricing adjustment expected to exceed', 32837:'the threshold for submissionof certified cost or pricingdata infederal acquisition regulation far 15.4034a1 on the date of execution of the', 32838:'modification; and 2 be limited to such modifications. b before awarding any subcontract expected to exceed the threshold for submission', 32839:'of certified cost or pricing data in far 15.4034a1, on the date of agreement on price or the date of', 32840:'award, whichever is later; or before pricing any subcontract modification involving a pricing adjustment expected to exceed the threshold for', 32841:'submission of certified cost or pricing data in far 15.4034a1, the contractor shall require the subcontractor to submit certified cost', 32842:'or pricing data actually or by specific identificationin writing, inaccordance withfar 15.408, table152 to include any information reasonably required to', 32843:'explain the subcontractors estimating process such as the judgmental factors applied and the mathematical or other methods used in the', 32844:'estimate, including those used in projecting from known data, and the nature and amount of any contingenciesincluded inthe price, unless', 32845:'an exception under far 15.4031b applies. if the threshold for submission of certified cost or pricing data specifiedin far 15.4034a1', 32846:'is adjusted for inflation as setforth in far 1.109a, then pursuantto far 1.109d the changed threshold applies throughout the remaining', 32847:'term of the contract, unless there is a subsequent threshold adjustment. c thecontractor shall require thesubcontractorto certify in substantially the', 32848:'formprescribed in far 15.4062 that, to the best of its knowledge and belief, the data submitted under paragraph b of', 32849:'this clause were accurate, complete, and current as of the date of agreement on the negotiated price of the subcontract', 32850:'or subcontract modification. d the contractor shall insert the substance of this clause, including this paragraph d, in each subcontract', 32851:'that exceeds thethreshold for submission of certified cost or pricing datain far 15.4034a1 on the date of agreement on price', 32852:'or the dateof award, whichever is later. end of clause alternate i aug 2020. as prescribed in 15.408 e2, substitute', 32853:'the following paragraphs a, b, and d for paragraphs a, b, and d of the basic clause: a the requirements', 32854:'of paragraphs b and c of this clause shall— 1 become operative only for any modification to this contract involving', 32855:'aggregate increases and/or decreases in costs, plus applicableprofits,expected to exceedthe threshold for submissionof certified cost or pricingdata at far 15.4034a', 32856:'1; and 2 be limited to such modifications. b unlessan exception under far 15.4031 applies, the contractor shall require the', 32857:'subcontractor to submit certified cost or pricing data actually orby specific identification in writing, in accordance with far 15.408, table', 32858:'152 to includeany information reasonably required to explain the subcontractors estimating process such as the judgmental factors applied and the', 32859:'mathematical or other methods used in the estimate, including those used in projecting from known data, and the nature and', 32860:'amount of any contingencies included in the price— 1 before modifying any subcontract that was awarded prior to july 1,', 32861:'2018, involving a pricing adjustment expected to exceed $750,000; or 2 before modifying any subcontract that was awarded on or', 32862:'after july 1, 2018, involving a pricing adjustment expected to exceed $2 million. d the contractor shall insert the substance', 32863:'of this clause, including this paragraph d, in each subcontract that exceeds $2 million. 52.2132 subpart 52.2 text of provisions', 32864:'and clauses 52.21516 52.21514 integrity of unit prices. as prescribed in 15.408f1, insert the following clause: integrity of unit prices', 32865:'nov 2021 a any proposal submitted for the negotiation of prices for items of supplies shall distribute costs within contracts', 32866:'on a basis that ensures that unit prices are in proportion to the items’ base cost e.g., manufacturing or acquisition', 32867:'costs. any method of distributing costs to line items that distorts unit prices shall not be used. for example, distributing', 32868:'costs equally among line items is not acceptable except when there is little or no variation in base cost. nothing', 32869:'in this paragraph requires submission of certified cost or pricing data not otherwise required by law or regulation. b when', 32870:'requestedby the contracting officer, the offeror/contractor shall also identifythose supplies thatitwill not manufacture or to which it will not contribute', 32871:'significant value. c the contractor shall insert the substance of this clause, less paragraph b of this clause, in all', 32872:'subcontracts for other than: acquisitions at or below the simplified acquisition threshold, as defined in federal acquisition regulation far 2.101', 32873:'onthedateofsubcontractaward;constructionorarchitectengineerservicesunderfar part 36;utilityservicesunderfar part 41; services where supplies are not required; commercial products and commercial services; and petroleum products. end', 32874:'of clause alternate i oct 1997. as prescribed in 15.408f2, substitute the following paragraph b for paragraph b of the', 32875:'basic clause: b the offeror/contractorshallalso identify those suppliesthat it will notmanufacture or to whichitwill not contribute significant value. 52.21515 pension', 32876:'adjustments and asset reversions. as prescribed in 15.408g, insert the following clause: pension adjustments and asset reversions oct 2010 a', 32877:'thecontractor shall promptlynotify the contracting officer in writing whenitdeterminesthat it will terminate a definedbenefit pension plan or otherwise recapture such', 32878:'pension fund assets. b for segment closings, pension plan terminations, or curtailment of benefits, the amount of the adjustment shall', 32879:'be 1 for contracts and subcontracts that are subject to full coverage under the cost accounting standards cas board rules', 32880:'and regulations 48 cfr chapter 99, the amount measured, assigned, and allocated in accordance with 48 cfr 9904.41350c12 ; and', 32881:'2 for contracts and subcontracts that are not subject to full coverage under the cas, the amount measured, assigned, and', 32882:'allocated in accordance with 48 cfr 9904.41350c12, except the numerator of the fraction at 48 cfr 9904.41350c12 vi shall be', 32883:'the sum of the pension plan costs allocated to all noncas covered contracts and subcontracts that are subject to federal', 32884:'acquisition regulation far subpart 31.2 or for which certified cost or pricing data were submitted. c for all other situations', 32885:'where assets revert to the contractor, orsuch assets are constructively receivedby it for any reason, thecontractor shall, at thegovernment’s option,', 32886:'make arefund or give a credit to the government for its equitable shareof the gross amount withdrawn. the government’s equitable', 32887:'share shall reflect thegovernment’s participationin pension costs through those contracts for whichcertifiedcost or pricing data were submittedor that are subject', 32888:'to far subpart 31.2. d the contractor shall include the substance of this clause in all subcontracts under this contract', 32889:'that meet the applicability requirement of far 15.408g. end of clause 52.21516 facilities capital cost ofmoney. as prescribed in 15.408h,', 32890:'insert the following provision: 52.2133 52.21517 federal acquisition regulation facilities capital cost of money june 2003 a facilities capital cost', 32891:'of money will be an allowable cost under the contemplated contract, if the criteria for allowability in far 31.20510b are', 32892:'met. one of the allowability criteria requires the prospective contractor to propose facilities capital cost of money in its offer.', 32893:'b if the prospectivecontractor does not propose this cost,the resulting contract will include theclause waiver of facilities capital cost of', 32894:'money. end of provision 52.21517 waiver of facilities capitalcost ofmoney. as prescribed in 15.408i, insert the following clause: waiver of', 32895:'facilities capital cost of money oct 1997 the contractor did not include facilities capital cost of money as a proposed', 32896:'cost of this contract. therefore, it is an unallowable cost under this contract. end of clause 52.21518 reversion oradjustmentof plans', 32897:'for postretirementbenefits prb other than pensions. as prescribed in 15.408j, insert the following clause: reversion or adjustment of plans for', 32898:'postretirement benefits prb other than pensions july 2005 a thecontractor shall promptlynotify the contracting officer in writing whenthe contractor determines', 32899:'that it will terminate or reduce the benefits of a prb plan. b if prbfund assets revert or inure to', 32900:'the contractor, or are constructively received byitunder a plan termination or otherwise, the contractor shall make a refund or give', 32901:'a credit to the government for its equitable share as required by 31.2056o5 of thefederal acquisition regulation far. when determining', 32902:'or agreeing on themethod for recovery of thegovernment’s equitable share, the contracting parties should consider the following methods: cost reduction,', 32903:'amortizing the credit over a number of years with appropriate interest, cash refund, or some other agreed upon method. should', 32904:'the parties be unable toagreeon the method for recovery of thegovernment’s equitable share, through good faith negotiations, thecontracting officer shall', 32905:'designate the method ofrecovery. c the contractor shall insert the substance of this clause in all subcontracts that meet the', 32906:'applicability requirements of far 15.408j. end of clause 52.21519 notification of ownership changes. as prescribed in 15.408k, insert the following', 32907:'clause: notification of ownership changes oct 1997 a the contractor shall make the following notifications in writing: 1 when the', 32908:'contractor becomes aware that a changein itsownership has occurred, or is certain tooccur, that could result in changes in the', 32909:'valuation of its capitalized assets in the accounting records, the contractor shall notify the administrative contracting officer aco within30 days.', 32910:'2 the contractor shall also notify the aco within 30 days whenever changes to asset valuations or any other cost', 32911:'changes have occurred or are certain to occur as a result of a change in ownership. b the contractor shall', 32912:'1 maintain current, accurate, and complete inventory records of assets and their costs; 2 provide the aco or designated representative', 32913:'ready access to the records upon request; 52.2134 subpart 52.2 text of provisions and clauses 52.21520 3 ensure that all', 32914:'individual and grouped assets, their capitalized values, accumulated depreciation or amortization, and remaininguseful lives are identified accurately before and aftereach', 32915:'of thecontractor’s ownership changes; and 4 retain and continue to maintain depreciation and amortization schedules based on the asset records', 32916:'maintained before each contractor ownership change. c the contractor shall include the substance of this clause in all subcontracts under', 32917:'this contract that meet the applicability requirement of far 15.408k. end of clause 52.21520 requirements for certified cost or pricing', 32918:'data and data other than certified cost or pricing data. as prescribed in 15.408l, insert the following provision: requirements for', 32919:'certified cost or pricing data and data other than certified cost or pricing data nov 2021 a exceptions from certified', 32920:'cost or pricing data. 1 in lieu of submitting certified cost or pricing data, offerors may submit a written request', 32921:'for exception by submitting the information described in the following paragraphs.the contracting officer may requireadditional supporting information, but only to', 32922:'the extentnecessary todetermine whether anexception should be granted, and whether the price is fair and reasonable. i identification of the', 32923:'law or regulation establishing the price offered. if the price is controlled under law by periodic rulings, reviews, orsimilar actions', 32924:'of a governmentalbody,attach a copyof the controlling document, unless it was previouslysubmitted to the contracting office. ii commercial product and', 32925:'commercial service exception. for a commercial product and commercial service exception, the offeror shall submit, ata minimum, information on prices', 32926:'at whichthe same itemor similar items have previously been sold in the commercial market that is adequate for evaluating the', 32927:'reasonableness of the price for this acquisition. such information may include a for catalog items, a copy of or identification', 32928:'of the catalog and its date, or the appropriate pages for the offered items, or a statement that thecatalogis on', 32929:'file in the buying officeto which the proposalis being submitted. provide a copy or describe current discount policies and price', 32930:'lists published or unpublished, e.g., wholesale, original equipment manufacturer, or reseller. alsoexplain the basis of each offered priceand its relationship', 32931:'tothe established catalog price, including how the proposed price relates to the price of recent sales in quantities similar to', 32932:'the proposed quantities; b for marketpriced items, the source and date or period of the market quotation or other basis', 32933:'for market price, the base amount, and applicable discounts. in addition, describe the nature of the market; c foritemsincluded on', 32934:'an active federalsupply service multiple award schedule contract, proof that an exception has been granted for the schedule item. 2', 32935:'the offeror grants the contractingofficer oran authorized representative the right to examine, at any time before award, books, records, documents,', 32936:'or other directly pertinent records to verify any request for an exception under this provision, and the reasonableness of price.', 32937:'for items priced using catalog or market prices, or law or regulation, access does not extend to costor profit informationor', 32938:'other data relevant solely to the offeror’s determination of the prices to be offered in the catalog or marketplace. b', 32939:'requirements for certified cost or pricing data.if the offeror is notgranted an exception fromthe requirement to submit certified cost or', 32940:'pricing data, the following applies: 1 the offeror shall prepare and submit certified cost or pricing data, data other thancertifiedcost', 32941:'or pricing data,and supporting attachments in accordance with the instructions contained in table 151 offar 15.408, which is incorporated byreferencewiththesameforceandeffectasthoughitwereinsertedhereinfulltext.', 32942:'theinstructionsin table 151 are incorporated as amandatoryformat to be used in this contract, unless thecontracting officer and the contractoragreeto a', 32943:'different format and change thisclause to use alternate i. 2 as soon as practicable after agreement on price, but before', 32944:'contract award except for unpriced actions such as letter contracts, the offeror shall submita certificate of currentcost or pricingdata, asprescribed', 32945:'by far 15.4062. end of provision 52.2135 52.21521 federal acquisition regulation alternate i oct 2010. as prescribed in 15.408l and', 32946:'see 15.4035b1, substitute the following paragraph b1 for paragraph b1 of the basic provision: b1 theofferor shall submitcertifiedcostor pricing data,', 32947:'data other than certified cost or pricing data, and supporting attachments in the following format: [insert description of the data', 32948:'and format that are required, and include access to records necessary to permit an adequate evaluation of the proposed price', 32949:'in accordance with 15.408, table 151, note 2. the description may be inserted at the time of issuing the solicitation,', 32950:'or the contracting officer may specify that the offeror’s format will be acceptable, or the description may be inserted as', 32951:'the result of negotiations.] alternate ii oct 1997. as prescribed in 15.408l, add the following paragraph c to the basic', 32952:'provision: c when theproposal issubmitted,also submit one copy each to: 1 the administrative contracting officer, and 2 the contractauditor. alternate', 32953:'iii oct 1997. as prescribed in 15.408 l, add the following paragraph c to the basic provision if alternate ii', 32954:'is also used, redesignate the following paragraph as paragraph d. c submit the cost portion of the proposal via the', 32955:'following electronic media: [insert media format, e.g.,electronic spreadsheet format, electronic mail, etc.] alternate iv oct 2010. as prescribed in 15.408l,', 32956:'replace the text of the basic provision with the following: a submission of certified cost or pricing data is not', 32957:'required. b provide data described below: [insert description of the data and the format that are required, including the access', 32958:'to records necessary to permit an adequate evaluation of the proposed price in accordance with 15.4033 .] 52.21521 requirements for', 32959:'certified cost or pricing data and data other than certified cost or pricing data modifications. as prescribed in 15.408m, insert', 32960:'the following clause: requirements for certified cost or pricing data and data other than certified cost or pricing datamodifications nov', 32961:'2021 a exceptions from certified cost or pricing data. 1 in lieu of submitting certified cost or pricing data for', 32962:'modifications underthis contract, for priceadjustments expectedto exceed thethreshold setforth in federal acquisitionregulation far 15.4034a1 on the date of the agreement', 32963:'onprice or the date of theaward, whichever islater, the contractor may submit a written request for exception by submitting the', 32964:'information described in paragraphs a1i and ii of this clause. if the threshold for submissionof certified cost or pricingdata specified', 32965:'in far 15.4034a1 is adjusted for inflation as set forth in far 1.109a, then pursuant to far 1.109d the changed', 32966:'threshold applies throughout the remaining term of the contract, unless there isa subsequent threshold adjustment. the contracting officer may require', 32967:'additional supporting information, but only to the extent necessary to determine whether an exception should be granted, and whether the', 32968:'price is fair and reasonable— i identification of the law or regulation establishing the price offered. if the price is', 32969:'controlled under law by periodic rulings, reviews, orsimilar actions of a governmentalbody,attach a copyof the controlling document, unless it was', 32970:'previouslysubmitted to the contracting office. ii information on modifications of contracts or subcontracts for commercial products or commercial services. a', 32971:'if— 1 the original contract or subcontract was granted an exception from certified cost or pricing data requirements because the', 32972:'price agreed upon was based on adequate price competition or prices set by law or regulation, or was a contract', 32973:'or subcontract for the acquisition of a commercial product or commercial service; and 2 the modification to the contract or', 32974:'subcontract is not exempted based on one of these exceptions, then the contractor may provide information to establish that the', 32975:'modification would not change the contract or subcontract from a contract or subcontract for the acquisition of a commercial product', 32976:'or commercial service, to a contract or subcontract for the acquisition of other than a commercial product or commercial service.', 32977:'b for a commercial product and commercial service exception, the contractor shall provide, at a minimum, information on prices at', 32978:'which the same item or similar items have previously been sold that is adequate for evaluating the reasonableness of the', 32979:'price of the modification. such information may include 1 for catalog items, a copy of or identification of the catalog', 32980:'and its date, or the appropriate pages for the offered items, or a statement that thecatalogis on file in the', 32981:'buying officeto which the proposalis being submitted. provide 52.2136 subpart 52.2 text of provisions and clauses 52.21522 a copy or', 32982:'describe current discount policies and price lists published or unpublished, e.g., wholesale, original equipment manufacturer, or reseller. alsoexplain the basis', 32983:'of each offered priceand its relationship tothe established catalog price, including how the proposed price relates to the price of', 32984:'recent sales in quantities similar to the proposed quantities. 2 for marketpriced items, the source and date or period of', 32985:'the market quotation or other basis for market price, the base amount, and applicable discounts. in addition, describe the nature', 32986:'of the market. 3 for items included on an active federal supplyservice multipleaward schedule contract, proof that an exception has', 32987:'been granted for the schedule item. 2 the contractor grantsthe contracting officeror an authorized representative the rightto examine, atanytime before', 32988:'award, books, records, documents, or other directly pertinent records to verify any request for an exception under this clause, and', 32989:'the reasonableness of price. for items priced using catalog or market prices, or law or regulation, access does not extend', 32990:'to cost orprofit information orotherdata relevant solely to thecontractor’s determination of the prices to be offered in the catalog or', 32991:'marketplace. b requirements for certified cost or pricing data. if the contractor is not granted an exception from the requirement', 32992:'to submit certified cost or pricing data, the following applies: 1 the contractor shall submit certified cost or pricing data,', 32993:'data other than certified cost or pricing data, and supporting attachments in accordance with the instructions contained in table 151', 32994:'offar 15.408, which is incorporated byreferencewiththesameforceandeffectasthoughitwereinsertedhereinfulltext. theinstructionsin table 151 are incorporated as amandatoryformat to be used in this contract, unless', 32995:'thecontracting officer and the contractoragreeto a different format and change thisclause to use alternate i. 2 as soon as practicable', 32996:'after agreement on price, but before award except for unpriced actions, the contractor shall submita certificate of currentcost or pricing', 32997:'data, asprescribed by far 15.4062. end of clause alternate i oct 2010. as prescribed in 15.408m and 15.4035b1, substitute the', 32998:'following paragraph b1 for paragraph b1 of the basic clause. b1 the contractor shall submit certified cost or pricing data,', 32999:'data other than certified cost or pricing data, and supporting attachments prepared in the following format: [insert description of the', 33000:'data and format that are required and include access to records necessary to permit an adequate evaluation of the proposed', 33001:'price in accordance with 15.408, table 151, note 2. the description may be inserted at the time of issuing the', 33002:'solicitation, or the contracting officer may specify that the offerors format will be acceptable, or the description may be inserted', 33003:'as the result of negotiations. ]: alternate ii oct 1997. as prescribed in 15.408m, add the following paragraph c to', 33004:'the basic clause: c when theproposal issubmitted,also submit one copy each to: 1 the administrative contracting officer, and 2 the', 33005:'contractauditor. alternate iii oct 1997. as prescribed in 15.408m, add the following paragraph c to the basic clause if alternate', 33006:'ii is also used, redesignate the following paragraph as paragraph d: c submit the cost portion of the proposal via', 33007:'the following electronic media: [insert media format] alternate iv oct 2010. as prescribed in 15.408m, replace the text of the', 33008:'basic clause with the following: a submission of certified cost or pricing data is not required. b provide data described', 33009:'below: [insert description of the data and the format that are required, including the access to records necessary to permit', 33010:'an adequate evaluation of the proposed price in accordance with 15.4033 .] 52.21522 limitations onpassthrough chargesidentificationof subcontracteffort. as prescribed in', 33011:'15.408n1, use the following provision: limitations on passthrough chargesidentification of subcontract effort oct 2009 a definitions. added value, excessivepassthrough charge,', 33012:'subcontract, and subcontractor, as used in this provision, are definedin the clause of this solicitation entitled limitations on passthrough charges', 33013:'far 52.21523. b general.the offeror’s proposal shall exclude excessive passthrough charges. 52.2137 52.21523 federal acquisition regulation cperformanceofworkbythecontractororasubcontractor. 1theofferorshallidentifyinitsproposalthetotalcost of the', 33014:'work tobe performedby the offeror, and the totalcostof the work to be performed by each subcontractor, under the contract, task', 33015:'order, or deliveryorder. 2 if the offerorintends to subcontract more than 70 percent of the total cost ofwork to be', 33016:'performed under the contract, task order, or deliveryorder, the offeror shall identifyin itsproposal ithe amount ofthe offeror’s indirect costs and', 33017:'profit/fee applicable tothe work to be performed by the subcontractors; and iiadescription ofthe added value provided by the offeror as', 33018:'related to the workto beperformed by the subcontractors. 3 if anysubcontractorproposed under the contract, task order, or delivery order intends', 33019:'to subcontract to a lowertier subcontractor more than 70 percent of the totalcost of work to be performed under its', 33020:'subcontract, the offeror shall identify in its proposal ithe amount ofthe subcontractor’s indirect costs and profit/fee applicable to theworkto beperformed', 33021:'by the lowertier subcontractors; and ii a description of the added value provided by the subcontractor as related to the', 33022:'work to be performed by the lowertier subcontractors. end of provision 52.21523 limitations onpassthrough charges. as prescribed in 15.408n2, use', 33023:'the following clause: limitations on passthrough charges jun 2020 a definitions. as used in this clause added value means that', 33024:'the contractor performs subcontract management functions that the contracting officer determines are a benefit to the government e.g., processing orders', 33025:'of parts or services, maintaining inventory, reducing delivery lead times, managing multiple sources for contract requirements, coordinating deliveries, performing quality', 33026:'assurance functions. excessive passthrough charge, with respect to a contractor or subcontractor that adds no or negligible value to a', 33027:'contract or subcontract, means a charge to the government bythe contractor or subcontractor that is for indirect costs orprofit/fee on', 33028:'work performed by a subcontractor otherthan charges for the costs of managingsubcontractsand any applicableindirect costs and associated profit/fee based on', 33029:'such costs. no or negligible value means the contractoror subcontractor cannotdemonstrate to the contracting officer that its effort added value', 33030:'to the contract or subcontract in accomplishing the work performed under the contract including task or delivery orders. subcontract means', 33031:'any contract,as defined in federal acquisitionregulation far2.101, entered into by a subcontractor to furnish supplies or services for performance of', 33032:'the contract or a subcontract. it includes but is not limited to purchase orders, and changes and modifications to purchase', 33033:'orders. subcontractor, as defined infar 44.101, meansanysupplier, distributor, vendor, or firmthat furnishes supplies or services toor for aprimecontractor or another', 33034:'subcontractor. b general.the government will not payexcessive passthrough charges. the contracting officershalldetermine if excessive passthrough chargesexist. c reporting. required reporting', 33035:'of performance of work by the contractor or a subcontractor. the contractor shall notify thecontracting officer in writing if 1', 33036:'the contractor changes the amount ofsubcontract effort afteraward such that it exceeds 70 percent of the totalcost of work to', 33037:'be performed underthe contract, task order, or deliveryorder. the notification shall identify the revised costof the subcontract effort and shall', 33038:'include verification that the contractor will provide added value;or 2 any subcontractor changes the amountof lowertier subcontractor effort after awardsuch', 33039:'thatitexceeds 70 percent of the total cost of the work to be performed under its subcontract. the notification shall identify', 33040:'the revised cost of the subcontract effort and shall include verification that the subcontractor willprovide addedvalueas related tothe work to', 33041:'be performed by the lowertier subcontractors. 52.2138 subpart 52.2 text of provisions and clauses 52.21523 d recovery of excessive passthrough', 33042:'charges. if the contracting officer determines that excessive passthrough charges exist; 1 for otherthan fixedprice contracts, the excessive passthrough charges', 33043:'are unallowable inaccordancewith the provisions infar subpart 31.2; and 2 for applicable dod fixedprice contracts, as identified in 15.408n2ib, the', 33044:'government shall be entitled to a price reductionforthe amountof excessivepassthrough charges included in the contract price. e access to records.', 33045:'1 the contracting officer, orauthorized representative, shall have the right to examine and audit all thecontractor’s records as defined at', 33046:'far 52.2152a necessary to determine whether the contractor proposed, billed, or claimedexcessive passthrough charges. 2 for those subcontracts to which', 33047:'paragraph f of this clause applies,the contracting officer, or authorized representative,shallhavethe right to examine andaudit all the subcontractor’s records as', 33048:'defined at far 52.2152a necessaryto determine whether the subcontractor proposed, billed, or claimed excessivepassthrough charges. f subcontracts. the contractor shall', 33049:'insert the substance of this clause, including this paragraph f, in all cost reimbursement subcontracts under this contract that exceed', 33050:'thesimplified acquisition threshold,as defined in far 2.101 on the date of subcontract award, except if the contract is with dod,', 33051:'then insert in all costreimbursement subcontracts and fixedprice subcontracts, except thoseidentified in far 15.408n2ib2, that exceed the threshold for obtaining', 33052:'cost or pricing data in far 15.4034 on the date of subcontract award. end of clause alternate i oct 2009.', 33053:'as prescribed in 15.408n2iii, substitute the following paragraph b for paragraph b of the basic clause: b general.the government will', 33054:'not payexcessive passthrough charges. the contracting officerhas determined that there willbe no excessive passthrough charges, provided the contractor performs the', 33055:'disclosed valueadded functions. 52.2139 this page intentionally left blank. 52.2140 subpart 52.2 text of provisions and clauses 52.2163 52.216[reserved] 52.2161typeof', 33056:'contract. as prescribed in 16.105, complete and insert the following provision: type of contract apr 1984 the government contemplates award', 33057:'of a [contracting officer insert specific type of contract] contract resulting from this solicitation. end of provision 52.2162 economic price', 33058:'adjustmentstandard supplies. as prescribed in 16.2034a, insert the following clause: economic price adjustmentstandard supplies nov 2021 a the contractor warrants', 33059:'that the unit price stated in the schedule for [offeror insert schedule line item number] isnot in excess of the', 33060:'contractor’s applicable established price in effecton the contract date for like quantities of the same item. the term unit price', 33061:'excludes any part of the price directly resulting from requirements for preservation, packaging, or packing beyond standard commercial practice. the', 33062:'term established price means a price that 1 is an established catalog or market price for a commercial product sold', 33063:'in substantial quantities to the general public; and 2 is thenet price afterapplying any standard trade discounts offered by the', 33064:'contractor. b the contractor shall promptly notify thecontracting officer of the amount andeffective date ofeach decrease in any applicable established', 33065:'price. each corresponding contract unit price shall be decreased by the same percentage that the established price is decreased. the', 33066:'decreaseshallapply to thoseitemsdelivered on and afterthe effective date of thedecrease in the contractor’s established price, and thiscontract shall be modified', 33067:'accordingly. c if the contractor’s applicable established price isincreased after the contract date,the corresponding contract unit price shall be increased,upon', 33068:'thecontractor’s written request tothe contracting officer, by the samepercentage that the established price is increased, and the contractshallbe modified accordingly,', 33069:'subject to the following limitations: 1 the aggregate of the increases in any contract unit price under this clause shall', 33070:'not exceed 10 percent of the original contract unit price. 2 the increased contract unitprice shall be effective ion the', 33071:'effective date of the increasein the applicable established price if the contracting officer receives the contractor’swritten request within 10 days', 33072:'thereafter; or iiif the written request isreceived later, onthe date the contracting officer receives the request. 3 the increased contract', 33073:'unit price shall not apply to quantities scheduled under the contract for delivery before the effective date of theincreased contractunit', 33074:'price, unless failure to deliver before that date results from causes beyond the control and without thefault or negligenceof the', 33075:'contractor,within the meaning of the default clause. 4 no modification increasing a contract unit price shall be executed under this', 33076:'paragraph c until the contracting officer verifies the increase in the applicable establishedprice. 5 within 30 days after receipt of', 33077:'thecontractor’s written request, the contracting officer may cancel, without liability to either party, any undelivered portion of the contract items', 33078:'affectedby the requested increase. d during the time allowed for the cancellation provided for in paragraph c5 of this clause,', 33079:'and thereafter if there is no cancellation, the contractor shall continue deliveries according to the contract delivery schedule, and the', 33080:'government shall pay for such deliveries at the contract unit price, increased to the extent provided by paragraph c of', 33081:'this clause. end of clause 52.2163 economic price adjustmentsemistandard supplies. as prescribed in 16.2034b, insert the following clause: 52.2141 52.2164', 33082:'federal acquisition regulation economic price adjustmentsemistandard supplies nov 2021 a the contractor warrants that the supplies identified as line items', 33083:'[offeror insert schedule line item number] in the schedule are, except for modifications required by the contract specifications, supplies for', 33084:'which it has an established price. the term established price means a price that 1is an established catalog or market', 33085:'price for a commercial product sold in substantial quantities to the general public, and 2is the net price after applying', 33086:'any standard trade discounts offered bythe contractor. the contractor further warrants that,as of thedate of this contract, any difference between', 33087:'the unit prices statedin the contractforthese line items and thecontractor’s established prices for like quantities of the nearest commercial equivalents', 33088:'are due to compliance with contract specifications and with any contract requirements for preservation, packaging, and packing beyond standard commercial', 33089:'practice. b the contractor shall promptly notify thecontracting officer of the amount andeffective date ofeach decrease in any applicable established', 33090:'price. each corresponding contract unit price exclusive of any part of the unit price that reflects modifications resulting from compliance', 33091:'with specifications or with requirements for preservation, packaging, and packing beyond standard commercial practice shall be decreased by the same', 33092:'percentage that the established price is decreased. the decrease shall apply to those items delivered on and after the effective', 33093:'date of the decrease in the contractor’s established price, and this contract shall bemodified accordingly. c if the contractor’s applicable', 33094:'established price isincreased after the contract date,the corresponding contract unitprice exclusive of any part of the unit price resulting from', 33095:'compliance with specifications or with requirements for preservation, packaging, and packing beyondstandard commercial practice shall be increased, upon the contractor’s', 33096:'written requestto thecontracting officer,by the same percentage that the established price isincreased,andthe contract shall be modified accordingly, subject tothe following', 33097:'limitations: 1 the aggregate of the increases in any contract unit price under this clause shall not exceed 10 percent', 33098:'of the original contract unit price. 2 the increased contract unitprice shall be effective ion the effective date of the', 33099:'increasein the applicable established price if the contracting officer receives the contractor’swritten request within 10 days thereafter; or iiif the', 33100:'written request isreceived later, onthe date the contracting officer receives the request. 3 the increased contract unit price shall not', 33101:'apply to quantities scheduled under the contract for delivery before the effective date of theincreased contractunit price, unless failure to', 33102:'deliver before that date results from causes beyond the control and without thefault or negligenceof the contractor,within the meaning of', 33103:'the default clause. 4 no modification increasing a contract unit price shall be executed under this paragraph c until the', 33104:'contracting officer verifies the increase in the applicable establishedprice. 5 within 30 days after receipt of thecontractor’s written request, the', 33105:'contracting officer may cancel, without liability to either party, any undelivered portion of the contract items affectedby the requested increase.', 33106:'d during the time allowed for the cancellation provided for in paragraph c5 of this clause, and thereafter if there', 33107:'is no cancellation, the contractor shall continue deliveries according to the contract delivery schedule, and the government shall pay for', 33108:'such deliveries at the contract unit price, increased to the extent provided by paragraph c of this clause. end of', 33109:'clause 52.2164 economic price adjustmentlabor and material. as prescribed in 16.2034c, insert the following clause: economic price adjustmentlabor and material', 33110:'jan 2017 a thecontractor shall notify the contractingofficer if, atanytime duringcontract performance, the rate of pay for labor including fringe', 33111:'benefits or the unit prices for material shown in the schedule either increase or decrease. the contractor shall furnish this', 33112:'notice within 60 days after the increase or decrease, or within any additional period that the contracting officer may approve', 33113:'inwriting, but not later than thedate of finalpayment underthiscontract. thenotice shall include thecontractor’s proposal for an adjustment in the contract', 33114:'unitprices to be negotiatedunder paragraph b of this clause, and shall include, in the form required by thecontracting officer,supporting data', 33115:'explaining the cause, effective date, and amount of the increase or decrease and the amountof the contractor’s adjustment proposal. 52.2142', 33116:'subpart 52.2 text of provisions and clauses 52.2165 b promptly after the contractingofficer receivesthe notice and data under paragraph a', 33117:'ofthisclause, the contracting officer and the contractor shall negotiate a price adjustment inthe contract unit prices and its effective date.', 33118:'however, thecontracting officer may postpone the negotiations untilan accumulation of increases and decreases inthe labor rates including fringe benefits and', 33119:'unit prices of material shown in the schedule results in an adjustment allowable under paragraph c3 ofthisclause. the contracting officer', 33120:'shall modify this contract 1to include the priceadjustmentand its effective date and 2to revise the labor ratesincluding fringe benefits or', 33121:'unit pricesof material as shown in the schedule to reflect the increases or decreases resulting from the adjustment. the contractor', 33122:'shall continue performance pending agreementon,or determination of, any adjustment and itseffective date. c any price adjustment under this clause is', 33123:'subject to the following limitations: 1 any adjustmentshallbe limited to theeffect on unit prices ofthe increases or decreases in the', 33124:'rates of pay for labor including fringe benefits or unit prices for material shown in the schedule. there shall be', 33125:'no adjustment for isupplies or services for which the production cost is not affectedby such changes; ii changes in rates', 33126:'or unit prices other than those shown in the schedule; or iii changes in the quantities of labor or material', 33127:'used from those shown in the schedule for each item. 2 no upward adjustment shall apply to supplies or services', 33128:'that are required to be delivered or performed before theeffective date ofthe adjustment, unless thecontractor’s failure todeliveror perform according tothe', 33129:'deliveryschedule results from causes beyond the contractor’s control and without itsfault or negligence, within the meaning of the default clause.', 33130:'3 there shall be no adjustment for any change in rates of pay for labor including fringe benefits or unit', 33131:'prices for material which would not result in a net change of at least 3 percent of the thencurrent total', 33132:'contract price. this limitation shall not apply, however, if, afterfinal delivery of allline items, either party requests an adjustment under', 33133:'paragraph b of this clause. 4 the aggregate of the increases in any contract unit price made under this clause', 33134:'shall not exceed 10 percent of the original unit price. there is no percentage limitation on the amount of decreases', 33135:'that may be made under this clause. d the contracting officer may examine the contractor’s books,records, and other supporting data', 33136:'relevant to the cost of labor including fringe benefits and material during all reasonable times until the end of 3', 33137:'years after the date of final payment under this contract or the time periods specified in subpart 4.7ofthefederalacquisitionregulationfar, whichever is', 33138:'earlier. end of clause 52.2165price redeterminationprospective. as prescribed in 16.2054, insert the following clause: price redeterminationprospective jan 2022 a general.', 33139:'the unit prices and the total price stated in this contract shall be periodically redetermined in accordance with this clause,', 33140:'except that 1 the prices for supplies delivered and services performed before the first effective dateof price redetermination see paragraph', 33141:'c of this clause shall remain fixed; and 2 in no event shall the total amount paid under this contract', 33142:'exceed any ceiling price included in the contract. b definition. costs, as used in this clause, means allowable costs in', 33143:'accordance with part 31 of the federal acquisition regulation far in effecton the date of this contract. c price redetermination', 33144:'periods. for the purpose of price redetermination, performance of this contract is divided into successive periods. the first period shall', 33145:'extend from the date of the contract to , see note1 and the second and each succeeding period shall extend', 33146:'for [insert appropriate number] months from the end of the last preceding period, except that the parties may agree to', 33147:'vary the length of the final period. the first day of the second and each succeeding period shall be the', 33148:'effectivedate of price redetermination for that period. d data submission. 1 not more than nor less than see note 2', 33149:'days before the end of each redetermination period, except the last, the contractor shall submit i proposed prices for supplies', 33150:'that may be delivered or services that may be performed in the next succeeding period, and52.2 143 52.2165 federal acquisition', 33151:'regulation a an estimate and breakdown of the costs of these supplies or services in the format of table 151,far', 33152:'15.408, or in any other form on which the parties may agree; b sufficientdata tosupport the accuracy and reliabilityof this', 33153:'estimate; and c anexplanation of thedifferencesbetween this estimate and the original or lastpreceding estimate for the same supplies or services;', 33154:'and ii a statement of all costs incurred in performing this contract through the end of the month see note', 33155:'3 before the submission of proposed prices in the format of table 151,far 15.408 or in any other form on', 33156:'which the partiesmay agree, with sufficient supporting data to disclose unit costs and cost trends for a supplies delivered and', 33157:'services performed; and b inventories of work in process and undelivered contract supplies on hand estimated to the extent necessary.', 33158:'2 the contractor shall also submit, to the extent that it becomes available before negotiations on redetermined prices are concluded', 33159:'i supplemental statements of costs incurred after the date stated in subdivision d1ii of this section for a supplies delivered', 33160:'and services performed; and b inventories of work in process and undelivered contract supplies on hand estimated to the extent', 33161:'necessary; and iiany other relevant data that the contracting officer may reasonably require. 3 if the contractor fails to submit', 33162:'the data required by paragraphs d1 and 2 of this section, within the time specified, the contractingofficer may suspendpaymentsunder this', 33163:'contract until the data are furnished. if it islater determined that the governmenthas overpaidthe contractor, the contractor shall repay the', 33164:'excess tothe government immediately. unless repaid within 30 days after the end of thedata submittalperiod, the amount of the excess', 33165:'shall bear interest, computed from the date the data were due to the date of repayment, at the rate established', 33166:'in accordance with the interest clause. e price redetermination. upon the contracting officer’s receipt of the data requiredby paragraphdof this', 33167:'section, the contracting officerand the contractor shall promptly negotiate toredetermine fair and reasonable pricesforsupplies that may be delivered or services', 33168:'that may beperformed in the period followingthe effective date of price redetermination. f contract modifications. each negotiated redetermination of prices', 33169:'shall be evidenced by a modification to this contract, signed bythe contractor and the contracting officer, stating the redeterminedprices that', 33170:'applyduring the redetermination period. g adjusting billing prices. pending execution of the contract modification see paragraph f of this section,', 33171:'the contractor shall submit invoices or vouchers in accordance with the billing prices stated in this contract. if at any', 33172:'time it appears that the thencurrent billing prices will be substantially greater than the estimated final prices, or if the', 33173:'contractor submits data showing that the redetermined price will be substantially greater than the current billing prices, the parties shall', 33174:'negotiate an appropriate decrease or increase in billing prices. any billing price adjustment shall be reflected in a contract modification', 33175:'and shall notaffect the redeterminationof prices under this clause. after thecontract modificationforprice redetermination is executed, the total amount paid or', 33176:'to be paid on all invoices or vouchers shall be adjusted to reflect the agreedupon prices,and any requestedadditional payments, refunds,or', 33177:'credits shall be made promptly. h quarterly limitation on payments statement. this paragraph h applies only during periods for which', 33178:'firm prices have not been established. 1 within 45 days after the end ofthe quarterof the contractor’s fiscal year inwhich', 33179:'adelivery isfirst madeor services are first performed and accepted by the government under this contract, and for each quarterthereafter, the', 33180:'contractor shall submit to thecontract administration office with a copyto thecontracting office and the cognizant contract auditor a statement, cumulative', 33181:'from the beginning of the contract, showing i the total contract price of all supplies delivered or services performed and', 33182:'accepted by the government and for which final prices have been established; iithe totalcosts estimated to the extentnecessary reasonably incurred', 33183:'for, and properly allocable solely to, the supplies delivered or services performed and accepted by the government and for which', 33184:'final prices have not been established; iii the portion of the total interim profit used in establishing the initial contract', 33185:'price or agreed to for the purpose of this paragraph h that is in direct proportion to the supplies delivered', 33186:'or services performed and accepted by the government and for which final prices have not been established; and iv the', 33187:'total amount of all invoices or vouchers for supplies delivered or services performed and accepted by the government including amounts', 33188:'applied or to be applied to liquidate progress payments. 52.2144 subpart 52.2 text of provisions and clauses 52.2166 2 the', 33189:'statement required by paragraph h1 of this section need not be submitted for any quarter for which either no costs', 33190:'are to be reported under subdivision h1ii of this section, or revised billing prices have been established in accordance withparagraph', 33191:'g ofthis section, and do notexceed the existing contract price, the contractor’s price redetermination proposal, or a price based on', 33192:'the most recent quarterly statement, whichever is least. 3 notwithstanding any provision of this contract authorizing greater payments, if on', 33193:'any quarterly statement the amount under subdivision h1ivof this section exceeds the sum due the contractor, as computed in accordance', 33194:'with subdivisions h1i, ii, and iii of this section, the contractor shall immediately refund or credit to the government the', 33195:'amount of this excess. the contractor may, when appropriate, reduce this refund or credit by the amount of previous refunds', 33196:'or credits affected under this clause. if any portion ofthe excess has been applied to the liquidation ofprogress payments, then', 33197:'that portion may, insteadof beingrefunded, be added to the unliquidated progresspayment account,consistent with the progress payments clause. the contractor shall', 33198:'provide complete details to support any claimed reductions in refunds. 4 if the contractor fails to submit the quarterly statement', 33199:'within 45 days after the end of each quarter and it is later determined that the governmenthas overpaidthe contractor, the', 33200:'contractor shall repay the excess tothe government immediately. unless repaid within 30 days after the end of thestatement submittal period,', 33201:'the amount ofthe excess shall bear interest, computed from the date the quarterly statement was due to the date of', 33202:'repayment, at the rate established in accordance with the interest clause. i subcontracts. no subcontract placed under this contract may', 33203:'provide for payment on a costplusapercentageofcostbasis. j disagreements.if the contractor and the contracting officer fail toagreeupon redetermined pricesforany price redetermination', 33204:'period within 60 days or within such other period as the parties agree after the date on which the data', 33205:'required byparagraph d ofthissection areto besubmitted,the contracting officershallpromptly issue a decision in accordance with the disputes clause. for the purpose', 33206:'of paragraphs f, g, and h of this section, and pending final settlement of the disagreement on appeal, by failure', 33207:'to appeal, or by agreement, this decision shall be treated as an executed contract modification. pending final settlement, price redeterminationforsubsequentperiods,', 33208:'if any,shallcontinue to be negotiated as provided in this clause. k termination. if this contract is terminated, prices shall continue', 33209:'to be established in accordance with this clause for 1 completed supplies and services accepted by the government and 2', 33210:'those supplies and services not terminated under a partial termination. all other elements of the termination shall be resolved in', 33211:'accordance with other applicable clauses of this contract. notes: 1 express in terms of units delivered, or as a date;', 33212:'but in either case the period should end on the last day of a month. 2 insertthe number ofdays chosen', 33213:'so thatthe contractor’ssubmission willbe late enough to reflect recent cost experience taking into account thecontractor’s accounting system, but early enough', 33214:'to permit review, audit if necessary, and negotiation before the start of the prospective period. 3 insert first, except that', 33215:'second may beinserted ifnecessary toachieve compatibility with the contractor’s accounting system. end of clause 52.2166price redeterminationretroactive. as prescribed in 16.2064,', 33216:'insert the following clause: price redeterminationretroactive jan 2022 a general. the unit price and the total price stated in this', 33217:'contract shall be redetermined in accordance with this clause, but in no event shall the total amount paid under this', 33218:'contract exceed [insert dollar amount of ceiling price]. b definition. costs, as used in this clause, means allowable costs in', 33219:'accordance with part 31 of the federal acquisition regulation far in effecton the date of this contract. c data submission.', 33220:'1 within [contracting officer insert number of days] days after delivery of all supplies to be delivered and completion of', 33221:'all services to be performed under this contract, the contractor shall submit i proposed prices; ii a statement in the', 33222:'format of table 151,far 15.408, or in any other form on which the parties may agree, of all costs incurred', 33223:'in performing the contract; and 52.2145 52.2166 federal acquisition regulation iii any other relevant data that the contracting officer may', 33224:'reasonably require. 2 if the contractor fails to submit the data required by paragraph c1 of this section within the', 33225:'time specified, the contracting officermay suspend payments under thiscontract until the data are furnished. if it is laterdetermined that the', 33226:'government has overpaid the contractor, theexcessshallbe repaid to the government immediately. unless repaidwithin 30 days after the end of the', 33227:'data submittal period, the amount of the excess shall bear interest, computed from the date the data were due to', 33228:'the date of repayment, at the rate established in accordance with the interest clause. d price determination. upon the contracting', 33229:'officer’sreceipt of the data required by paragraph c ofthissection, thecontracting officer and the contractorshallpromptly negotiateto redetermine fair and reasonableprices for', 33230:'supplies delivered and services performed by the contractor under this contract. e contract modification. the negotiated redetermination of price shall', 33231:'be evidenced by a modification to this contract, signed bythe contractor and the contracting officer. f adjusting billing prices. pending', 33232:'execution of the contract modification see paragraph e of this section, the contractor shall submit invoices or vouchers in accordance', 33233:'with billing prices stated in this contract. if at any time it appears that the thencurrent billing prices will be', 33234:'substantially greater than the estimated final prices, or if the contractor submits data showing that the redetermined prices will be', 33235:'substantially greater than the current billing prices, the parties shall negotiate an appropriate decrease or increase in billing prices. any', 33236:'billing price adjustment shall be reflected in a contract modification and shall notaffect the redeterminationof prices under this clause. after', 33237:'thecontract modificationforprice redetermination is executed, the total amount paid or to be paid on all invoices or vouchers shall be', 33238:'adjusted to reflect the agreedupon prices,and any resulting additionalpayments, refunds, or credits shall be made promptly. g quarterly limitation on', 33239:'payments statement. this paragraph g shall apply until final price redetermination under this contract has been completed. 1 within 45', 33240:'days after the end ofthe quarterof the contractor’s fiscal year inwhich adelivery isfirst madeor services are first performed and accepted', 33241:'by the government under this contract, and for each quarterthereafter, the contractor shall submit to thecontract administration office with a', 33242:'copyto thecontracting office and the cognizant contract auditor, a statement, cumulative from the beginning of the contract, showing i the', 33243:'total contract price of all supplies delivered or services performed and accepted by the government and for which final prices', 33244:'have been established; iithe totalcosts estimated to the extentnecessary reasonably incurred for, and properly allocable solely to, the supplies delivered', 33245:'or services performed and accepted by the government and for which final prices have not been established; iii the portion', 33246:'of the total interim profit used in establishing the initial contract price or agreed to for the purpose of this', 33247:'paragraph g that is in direct proportion to the supplies delivered or services performed and accepted by the government and', 33248:'for which final prices have not been established; and iv the total amount of all invoices or vouchers for supplies', 33249:'delivered or services performed and accepted by the government including amounts applied or to be applied to liquidate progress payments.', 33250:'2 notwithstanding any provision of this contract authorizing greater payments, if on any quarterly statement the amount under subdivision g1ivof', 33251:'this section exceeds the sum due the contractor, as computed in accordance with subdivisions g1i, ii, and iii of this', 33252:'section, the contractor shall immediately refund or credit to the government the amount of this excess. the contractor may, when', 33253:'appropriate, reduce this refund or credit by the amount of previous refunds or credits effected under this clause. if any', 33254:'portion ofthe excess has been applied to the liquidation ofprogress payments, then that portion may, insteadof beingrefunded, be added to', 33255:'the unliquidated progresspayment account,consistent with the progress payments clause. the contractor shall provide complete details to support any claimed reduction', 33256:'in refunds. 3 if the contractor fails to submit the quarterly statement within 45 days after the end of each', 33257:'quarter and it is later determined that the governmenthas overpaidthe contractor, the contractor shall repay the excess tothe government immediately.', 33258:'unless repaid within 30 days after the end of thestatement submittal period, the amount ofthe excess shall bear interest, computed', 33259:'from the date the quarterly statement was due to the date of repayment, at the rate established in accordance with', 33260:'the interest clause. h subcontracts. no subcontract placed under this contract may provide for payment on a costplusapercentageofcost basis. i', 33261:'disagreements.if the contractor and the contracting officer fail toagreeupon redetermined priceswithin 60 days or within such other period as the', 33262:'parties agree after the date on which the data required by paragraph c of this section are to besubmitted,the contracting', 33263:'officershallpromptly issue a decision inaccordance withthe disputes clause. for the purpose 52.2146 subpart 52.2 text of provisions and clauses 52.2167', 33264:'of paragraphs e, f, and g of this section, and pending final settlement of the disagreement on appeal, by failure', 33265:'to appeal, or by agreement, this decision shall be treated as an executed contract modification. j termination. if this contract', 33266:'is terminated before price redetermination, prices shall be established in accordance with this clause for completed supplies and services not', 33267:'terminated. all other elements of the termination shall be resolved in accordance with other applicable clauses of this contract. end', 33268:'of clause 52.2167 allowable cost and payment. as prescribed in 16.307a, insert the following clause: allowable cost and payment aug', 33269:'2018 a invoicing. 1 the government will make payments to the contractor when requested as work progresses, but except for', 33270:'small business concerns not more often than once every 2 weeks, in amounts determined to be allowable by thecontractingofficerinaccordancewithfederalacquisitionregulationfar subpart', 33271:'31.2ineffectonthedateofthis contract and theterms ofthiscontract. thecontractor maysubmit toan authorized representative of thecontracting officer, in such form and reasonable detail as', 33272:'the representative may require, an invoice or voucher supported by a statement of the claimed allowable cost for performing this', 33273:'contract. 2 contract financing payments are not subject to the interest penalty provisions of the prompt payment act. interim payments', 33274:'made prior to the final payment under the contract are contract financing payments, except interim payments if this contract contains', 33275:'alternate i to the clause at 52.23225. 3 the designated payment office will make interimpaymentsforcontract financingon the [contracting officer insert', 33276:'day as prescribed by agency head; if not prescribed, insert 30th] day after the designatedbilling office receives a proper payment', 33277:'request. in the event that the government requires an audit or other review of a specific payment request to ensure', 33278:'compliancewith the termsand conditions of the contract, the designated payment office is not compelled to make payment by the specified', 33279:'due date. b reimbursing costs. 1 for the purpose of reimbursing allowable costs except as provided in paragraph b2 of', 33280:'this clause, with respect to pension, deferred profit sharing, and employee stock ownership plan contributions, the term costs includes only—', 33281:'i those recorded costs that, at the time of the request for reimbursement, the contractor has paid by cash, check,', 33282:'or other form of actual payment for items or services purchased directly for the contract; ii when the contractor is', 33283:'not delinquent in paying costs of contract performance in the ordinary course of business, costs incurred, but not necessarily paid,', 33284:'for a supplies and services purchased directly for the contract and associated financing payments to subcontractors, provided payments determined due', 33285:'will be made– 1 in accordance with the terms and conditions of a subcontract or invoice; and 2 ordinarily within', 33286:'30days of the submission of the contractor’s payment request to thegovernment; b materials issued from the contractor’s inventory and placed', 33287:'in the productionprocess for use on the contract; c direct labor; d direct travel; e other direct inhouse costs; and', 33288:'f properly allocable and allowable indirect costs, as shown in the records maintained by the contractor for purposes of obtaining', 33289:'reimbursement under government contracts; and iii the amount of financing payments that have been paid by cash, check, or other', 33290:'forms of payment to subcontractors. 2 accrued costs of contractor contributions under employee pension plans shall be excluded until actually', 33291:'paid unless ithe contractor’s practice is to make contributionsto the retirement fund quarterly ormorefrequently;and ii the contribution does not remain', 33292:'unpaid 30 days after the end of the applicable quarter or shorter payment period anycontribution remaining unpaid shall beexcluded from', 33293:'the contractor’s indirect costs for paymentpurposes. 52.2147 52.2167 federal acquisition regulation 3 notwithstanding the audit and adjustment of invoices or', 33294:'vouchers under paragraph g of this clause, allowable indirect costs under this contract shall be obtained by applying indirect cost', 33295:'rates established in accordance with paragraph d of this clause. 4 any statements in specifications or other documents incorporated in', 33296:'this contract by reference designating performanceof services or furnishing ofmaterials at thecontractor’s expense or at no cost to the government', 33297:'shall be disregarded for purposes of costreimbursement under this clause. c small business concerns. a small business concern may receive', 33298:'more frequent payments than every 2 weeks. d final indirect cost rates. 1 final annual indirect cost rates and the', 33299:'appropriate bases shall be established in accordance with subpart 42.7ofthefederalacquisitionregulationfarineffectfortheperiodcoveredbytheindirect cost rate proposal. 2 ithecontractorshallsubmitanadequatefinalindirectcostrateproposaltothecontractingofficerorcognizant federalagency official andauditor within the', 33300:'6month period followingthe expiration of each of itsfiscalyears. reasonable extensions, for exceptional circumstances only, maybe requested in writing by the', 33301:'contractor and granted in writing by the contracting officer. the contractor shall support its proposal withadequate supporting data. iithe proposed', 33302:'rates shall be based on thecontractor’s actual cost experienceforthat period. the appropriate government representative and the contractor shall establish the', 33303:'final indirect cost rates as promptly as practical after receipt of the contractor’s proposal. iii an adequate indirect cost rate', 33304:'proposal shall include the following data unless otherwise specified by the cognizantfederal agencyofficial: a summary of all claimed indirect expense', 33305:'rates, including pool, base, and calculated indirect rate. b general and administrative expenses final indirect cost pool. schedule of claimed', 33306:'expenses by element of cost as identified in accounting records chart of accounts. c overhead expenses final indirect cost pool.', 33307:'schedule of claimed expenses by element of cost as identified in accounting records chart of accounts for each final indirect', 33308:'cost pool. d occupancy expenses intermediate indirect cost pool. schedule of claimed expenses by element of cost as identified in', 33309:'accounting records chart of accounts and expense reallocation to final indirect cost pools. e claimed allocation bases, by element of', 33310:'cost, used to distribute indirect costs. f facilities capital cost of money factors computation. g reconciliation of books of account', 33311:'i.e., general ledger and claimed direct costs by major cost element. h schedule of direct costs by contract and subcontract', 33312:'and indirect expense applied at claimed rates, as well as a subsidiary schedule of government participation percentages in each of', 33313:'the allocation base amounts. i schedule of cumulative direct and indirect costs claimed and billed by contract and subcontract. j', 33314:'subcontract information. listing of subcontracts awarded to companies for which the contractor is the prime or uppertier contractor include prime', 33315:'and subcontract numbers; subcontract value and award type; amount claimed during the fiscal year; and the subcontractor name, address, and', 33316:'point of contact information. k summary of each timeandmaterials and laborhour contract information, including labor categories, labor rates, hours, and', 33317:'amounts; direct materials; other direct costs; and, indirect expense applied at claimed rates. l reconciliation of total payroll per irs', 33318:'form 941 to total labor costs distribution. mlisting of decisions/agreements/approvals and description of accounting/organizational changes. n certificate of final indirect', 33319:'costs see 52.2424, certification of final indirect costs. ocontract closing information for contractsphysicallycompleted inthis fiscal year include contract number, period', 33320:'of performance, contract ceiling amounts, contract fee computations, level of effort,andindicate if the contract is ready to close. iv the', 33321:'following supplemental information is not required to determine if a proposal is adequate, but may be required during the audit', 33322:'process: a comparative analysis of indirect expense pools detailed by account to prior fiscal year and budgetary data. b general', 33323:'organizationalinformationandlimitation on allowability of compensation for certain contractor personnel. see 31.2056p. additional salary reference information is available at https://www.whitehouse.gov/wpcontent/ uploads/2017/11/contractorcompensationcapcontractsawardedbeforejune24.pdf', 33324:'and https://www.whitehouse.gov/wpcontent/ uploads/2017/11/contractorcompensationcapcontractsawardedafterjune24.pdf. c identification of prime contractsunder which the contractor performs as asubcontractor. d description of accounting system excludes', 33325:'contractors required to submit a cas disclosure statement or contractors where thedescription ofthe accounting system has not changedfrom the previous', 33326:'year’s submission. 52.2148 subpart 52.2 text of provisions and clauses 52.2167 e procedures for identifying and excluding unallowable costs from', 33327:'the costs claimed and billed excludes contractors where theprocedures have not changed from the previous year’s submission. f certified financial', 33328:'statements and other financial data e.g., trial balance, compilation, review, etc.. gmanagement letter from outside cpas concerning any internal control', 33329:'weaknesses. h actions that have been and/or will be implemented to correct the weaknesses described in the management letter from', 33330:'subparagraph g of this section. i list of all internal audit reports issued since the last disclosure of internal audit', 33331:'reports to the government. j annual internal audit plan of scheduled audits to be performed in the fiscal year when', 33332:'the final indirect cost rate submission is made. k federal and state income tax returns. l securities and exchange commission', 33333:'10k annual report. m minutes from board of directors meetings. n listing of delay claims and termination claims submitted which', 33334:'contain costs relating to the subject fiscal year. o contract briefings, which generally include a synopsis of all pertinent contract', 33335:'provisions, such as: contract type, contract amount, product or services to be provided, contract performance period, rate ceilings, advance approval', 33336:'requirements, precontract cost allowability limitations, and billing limitations. v the contractor shall update the billings on all contracts to reflect', 33337:'the final settled rates and update the schedule of cumulative direct and indirect costs claimed and billed, as required in', 33338:'paragraph d2iiii of this section, within 60 days after settlement of final indirect cost rates. 3 the contractor and the', 33339:'appropriate government representative shall execute a written understanding setting forth the final indirect cost rates. the understanding shall specify i', 33340:'the agreedupon final annual indirect cost rates, ii the bases to which therates apply, iii the periods for which the', 33341:'ratesapply, iv any specific indirect costitems treated as direct costs in thesettlement, and v the affected contract and/or subcontract, identifying', 33342:'any with advance agreements or special terms and the applicable rates. the understanding shall not change any monetary ceiling, contract', 33343:'obligation, or specific cost allowance or disallowance provided for in this contract. the understanding is incorporated into this contract upon', 33344:'execution. 4 failure by the parties to agree on a final annual indirect cost rate shall be a dispute within', 33345:'the meaning of the disputes clause. 5 within 120days or longer period if approved in writingby the contracting officerafter settlementof', 33346:'the final annual indirect cost rates for all years of a physically complete contract, the contractor shall submit a completion', 33347:'invoice or voucher to reflect the settled amounts and rates. the completion invoice or voucher shall include settled subcontract amounts', 33348:'and rates. the prime contractor is responsible for settling subcontractor amounts and rates included in the completion invoice or voucher', 33349:'andproviding status of subcontractor auditsto the contracting officer uponrequest. 6 i if the contractor fails to submit a completion invoice', 33350:'or voucher within the time specified in paragraph d5 of this clause, the contracting officer may a determine the amounts', 33351:'due to the contractor under the contract; and b record this determination in a unilateral modification to the contract. iithis', 33352:'determinationconstitutes the final decision of the contracting officer in accordance with the disputes clause. e billing rates. until final annual', 33353:'indirect cost rates are established for any period, the government shall reimburse the contractor at billing rates establishedby the contracting', 33354:'officer or by anauthorized representative thecognizant auditor, subject to adjustment when the final rates are established. these billing rates 1', 33355:'shall be the anticipated final rates; and 2 maybe prospectively orretroactively revised by mutual agreement,at either party’s request, to prevent', 33356:'substantial overpayment or underpayment. f quickcloseout procedures. quickcloseoutprocedures are applicable when the conditions in far 42.708a are satisfied. g audit.', 33357:'at any time or times before final payment, the contracting officer mayhavethe contractor’sinvoices or vouchers and statements of cost audited.', 33358:'any payment may be 1 reduced by amounts foundby the contracting officer not toconstitute allowable costs; or 2 adjusted for', 33359:'prior overpayments or underpayments. 52.2149 52.2167 federal acquisition regulation h final payment. 1 upon approval of a completion invoice or', 33360:'voucher submitted by the contractor in accordance with paragraph d5 of this clause, and uponthe contractor’scompliance with all terms of', 33361:'this contract, the government shall promptly pay any balance of allowable costs and that part of the fee if any', 33362:'not previously paid. 2 the contractor shall pay to the government any refunds, rebates, credits, or other amounts including interest,', 33363:'if any accruing to or received by the contractor or any assignee under this contract, to the extent that those', 33364:'amounts are properly allocable to costs for which the contractor has been reimbursed by the government. reasonable expenses incurred by', 33365:'the contractor for securing refunds, rebates, credits, or other amounts shall be allowable costs if approved by the contracting officer.', 33366:'before finalpayment underthiscontract, the contractorand each assignee whose assignment is in effect at the time of final payment shall execute', 33367:'and deliver ian assignmentto the government,in form and substancesatisfactory tothe contracting officer, of refunds, rebates, credits, or other amounts including', 33368:'interest, if any properly allocable to costs for which the contractor has been reimbursed by the government under this contract;', 33369:'and iiarelease discharging the government,its officers, agents, and employees from all liabilities,obligations, and claims arising out of or under this', 33370:'contract, except a specified claims stated in exact amounts, or in estimated amounts when the exact amounts are not known;', 33371:'b claims including reasonable incidental expenses based upon liabilities of the contractor to third parties arising out of the performance', 33372:'of this contract; provided, that the claims are not known to the contractor on the date of the executionof the', 33373:'release, and thatthe contractor gives noticeof the claims in writing to the contracting officer within 6 years following the release', 33374:'date or notice of final payment date, whichever is earlier; and c claims for reimbursement of costs, including reasonable incidental', 33375:'expenses, incurred by the contractor underthe patent clauses of this contract, excluding, however,anyexpenses arising from the contractor’s indemnification of thegovernment', 33376:'against patent liability. end of clause alternate i feb 1997. as prescribed in 16.307a2, substitute the following paragraph b1iii for', 33377:'paragraph b1 iii of the basic clause: iii the amountof progress and other payments to the contractor’s subcontractors that eitherhavebeenpaid,or', 33378:'that the contractor is required to pay pursuant to the clause of this contract entitled prompt payment for construction contracts.', 33379:'payments shall be made by cash, check, or other formof payment to the contractor’s subcontractors under similar cost standards. alternate', 33380:'ii aug 2012. as prescribed in 16.307a3, substitute the following paragraph a1 for paragraph a1 of the basic clause: a1', 33381:'the government will make payments to the contractor when requested as work progresses, but not more often than once every', 33382:'twoweeks, in amounts determined to be allowableby the contracting officer in accordance with subpart 31.3 in effect on the date', 33383:'of this contract and theterms ofthis contract. thecontractor maysubmit to an authorized representative of thecontracting officer,in such form andreasonable detail', 33384:'as therepresentative may require, an invoice or voucher supported by a statement of the claimed allowable cost for performing this', 33385:'contract. alternate iii aug 2012. as prescribed in 16.307a4, substitute the following paragraph a1 for paragraph a1 of the basic', 33386:'clause: a1 the government will make payments to the contractor when requested as work progresses, but not more often than', 33387:'once every twoweeks, in amounts determined to be allowableby the contracting officer in accordance with subpart 31.6 in effect on', 33388:'the date of this contract and theterms ofthis contract. thecontractor maysubmit to an authorized representative of thecontracting officer,in such form', 33389:'andreasonable detail as therepresentative may require, an invoice or voucher supported by a statement of the claimed allowable cost for', 33390:'performing this contract. alternate iv aug 2012. as prescribed in 16.307a5, substitute the following paragraph a1 for paragraph a1 of', 33391:'the basic clause: a1 the government will make payments to the contractor when requested as work progresses, but not more', 33392:'often than once every twoweeks, in amounts determined to be allowableby the contracting officer in accordance with subpart 31.7 in', 33393:'effect on the date of this contract and theterms ofthis contract. thecontractor maysubmit to an authorized representative of thecontracting officer,in', 33394:'such form andreasonable detail as therepresentative may require, an invoice or voucher supported by a statement of the claimed allowable', 33395:'cost for performing this contract. 52.2150 subpart 52.2 text of provisions and clauses 52.21610 52.2168 fixed fee. as prescribed in', 33396:'16.307b, insert the following clause: fixed fee jun2011 a the government shall pay the contractor for performing this contract the', 33397:'fixed fee specified in the schedule. b payment ofthe fixed fee shall be made as specified in the schedule; provided', 33398:'that the contracting officer withholds a reserve not to exceed 15 percentof the total fixed fee or$100,000, whichever is less,', 33399:'to protect the government’s interest. the contracting officer shall release75 percentof all fee withholds under this contract after receipt ofan', 33400:'adequatecertified final indirect cost rate proposal covering the year of physical completion of this contract, provided the contractor has satisfied', 33401:'all other contract terms and conditions, including the submission of the final patent and royalty reports, and is not delinquent', 33402:'in submitting final vouchers on prior years’ settlements. the contracting officer may releaseup to 90percent of thefee withholds under this', 33403:'contract based on the contractor’s past performance related tothe submission and settlementof final indirect cost rate proposals. end of clause', 33404:'52.2169 fixed feeconstruction. as prescribed in 16.307c, insert the following clause: fixed feeconstruction jun 2011 a the government shall pay', 33405:'to the contractor for performing this contract the fixed fee specified in the schedule. b payment of the fixed fee', 33406:'shall be made in installments based upon the percentage of completion of the work as determined from estimatessubmitted to and', 33407:'approved by the contractingofficer, but subjectto the withholding provisions of paragraph c of this section. c thecontracting officer shall withhold', 33408:'a reserve not to exceed15 percentof the total fixed fee or$100,000, whichever is less, toprotect the government’sinterest. the contracting officer', 33409:'shall release 75 percentof all fee withholdsunder this contract after receipt of an adequate certified final indirect cost rate proposal', 33410:'covering the year of physical completion of this contract, provided the contractor has satisfied all other contract terms and conditions,', 33411:'including the submission of the final patent and royalty reports, and is not delinquent in submitting final vouchers on prior', 33412:'years’ settlements. the contracting officer may release up to 90percent ofthe feewithholds under this contract based on the contractor’s past', 33413:'performance related to the submission and settlement of final indirect cost rate proposals. end of clause 52.21610 incentive fee. as', 33414:'prescribed in 16.307d, insert the following clause: incentive fee jun 2011 a general. the government shall pay the contractor for', 33415:'performing this contract a fee determined as provided in this contract. b target cost and target fee. thetarget cost and', 33416:'target fee specified in the schedule are subject to adjustment if the contract is modified in accordance with paragraph d', 33417:'of this clause. 1 target cost, as used in this contract,means theestimated cost of thiscontract asinitially negotiated, adjusted in accordance', 33418:'with paragraph d of this clause. 2 target fee, as used in this contract, meansthe feeinitially negotiatedon the assumption that', 33419:'this contract would be performed for a cost equal to the estimated cost initially negotiated, adjusted in accordance with paragraph', 33420:'d of this clause. cwithholdingofpayment. 1normally,thegovernmentshallpaythefeetothecontractorasspecifiedinthe schedule. however,when the contracting officer considers that performance or cost indicates thatthe contractor will', 33421:'not achieve target,the government shall pay on the basis ofan appropriate lesser fee. when thecontractor demonstratesthat 52.2151 52.21610 federal acquisition', 33422:'regulation performanceor cost clearly indicatesthat thecontractor will earn afee significantly abovethe target fee, thegovernment may, atthe sole discretion of the', 33423:'contracting officer, pay on thebasis of anappropriatehigher fee. 2 payment ofthe incentive fee shall be made as specified in the', 33424:'schedule; provided that the contracting officer withholds a reserve not to exceed 15 percent of the total incentive fee or', 33425:'$100,000, whichever is less, to protect the government’s interest. thecontracting officer shall release 75 percent of all fee withholds under', 33426:'this contract after receipt of an adequate certified final indirect cost rate proposal covering the year of physical completion of', 33427:'this contract, provided the contractor has satisfied all other contract terms and conditions, including the submission of the final patent', 33428:'and royalty reports, and is not delinquent insubmittingfinal vouchers onprior years’ settlements. the contractingofficer may release up to 90 percent', 33429:'of thefee withholds under this contract based on the contractor’s past performance related to the submission and settlement of final', 33430:'indirect cost rate proposals. d equitable adjustments. when the work under this contract is increased or decreased by a modification', 33431:'to this contract or whenany equitableadjustmentin the target cost is authorized under any other clause, equitable adjustments in the target', 33432:'cost, targetfee, minimum fee, and maximum fee, asappropriate, shall be stated in a supplemental agreement to this contract. e fee', 33433:'payable. 1thefeepayableunderthiscontractshallbethetargetfeeincreasedby [contracting officer insert contractor’s participation] cents for every dollar that thetotal allowablecost is less thanthe target cost or', 33434:'decreased by [contracting officer insert contractor’s participation] cents for every dollar that the total allowable cost exceeds thetarget cost. in', 33435:'noeventshallthe feebe greater than [contracting officer insert percentage] percent or less than [contracting officer insert percentage] percent of thetarget cost.', 33436:'2 the fee shall be subject to adjustment, to the extent provided in paragraph d of this clause, and within', 33437:'the minimum and maximum fee limitations in paragraph e1 of this clause, when the total allowable cost is increased or', 33438:'decreased as a consequence of i payments made under assignments; or ii claims excepted from the release as required by', 33439:'paragraph h2 of the allowable cost and payment clause. 3 if thiscontract is terminated in its entirety, the portion of', 33440:'thetarget fee payable shall notbe subjectto anincrease or decrease as provided in this paragraph. the termination shall be accomplished in', 33441:'accordance with other applicable clauses of this contract. 4 for the purpose of fee adjustment, total allowable cost shall not', 33442:'include allowable costs arising out of i any of the causes covered by the excusable delays clause to the extent', 33443:'that they are beyond the control and without the fault or negligence of the contractor or any subcontractor; iithe taking', 33444:'effect, afternegotiating the target cost, of a statute, courtdecision, written ruling, or regulation that results in the contractor’s being required', 33445:'topayor bear the burdenof any tax or dutyor rate increase in a taxor duty; iii any direct cost attributed tothe', 33446:'contractor’sinvolvementin litigation asrequired by the contracting officer pursuant to a clause of this contract, including furnishing evidence and information requested', 33447:'pursuant to the notice and assistance regarding patent and copyright infringement clause; iv the purchase and maintenanceof additionalinsurance notin the', 33448:'target cost and required by the contracting officer, orclaimsforreimbursement for liabilities tothird persons pursuant to the insurance liabilityto third persons', 33449:'clause; v any claim, loss, or damage resulting from a risk for which the contractor has been relieved of liability', 33450:'by the government property clause; or vi any claim, loss, or damage resulting from a risk defined in the contract', 33451:'as unusually hazardous or as a nuclear risk and againstwhich the government has expresslyagreed to indemnify the contractor. 5 all', 33452:'other allowable costs are included in total allowable cost for fee adjustment in accordance with this paragraph e, unless otherwise', 33453:'specifically provided in this contract. f contract modification. the total allowable cost and the adjusted fee determined as provided in', 33454:'this clause shall be evidenced bya modification to this contract signed by the contractor and contractingofficer. g inconsistencies. in the', 33455:'event of any language inconsistencies between this clause and provisioning documents or government options under this contract, compensation for spare', 33456:'parts or other supplies and services ordered under such documents shall be determined in accordance with this clause. end of', 33457:'clause 52.2152 subpart 52.2 text of provisions and clauses 52.21615 52.21611 cost contractno fee. as prescribed in 16.307e, insert the', 33458:'clause in solicitations and contracts when a costreimbursement contract is contemplated that provides no fee and is not a costsharing', 33459:'contract. this clause may be modified by substituting $10,000 in lieu of $100,000 as themaximum reserve in paragraph b if', 33460:'thecontractor is anonprofit organization. cost contractno feeapr 1984 a the government shall not pay the contractor a fee for performing', 33461:'this contract. b afterpayment of 80percent ofthe total estimated cost shown in the schedule,the contracting officermay withhold furtherpayment of allowablecostuntil', 33462:'a reserve is set aside in an amount that the contracting officer considers necessary to protect thegovernment’s interest. thisreserve shall', 33463:'not exceed onepercent of thetotal estimated cost shown in the schedule or $100,000, whichever is less. end of clause alternate', 33464:'i apr 1984. in a contract for research and development with an educational institution or a nonprofit organization, for which', 33465:'the contracting officer hasdetermined that withholding of a portion of allowable costs is not required, delete paragraph b of the', 33466:'basic clause. 52.21612 costsharing contractno fee. as prescribed in 16.307f, insert the following clause in solicitations and contracts when a', 33467:'costsharing contract is contemplated. this clause may be modified by substituting $10,000 in lieu of $100,000 as the maximum reserve', 33468:'in paragraph b ifthe contract is with a nonprofitorganization. cost sharing contractno fee apr 1984 a the government shall not', 33469:'pay to the contractor a fee for performing this contract. b afterpaying 80 percent of the government’s share of the', 33470:'total estimated cost of performance shown in the schedule, thecontracting officer may withhold furtherpayment of allowable costuntil a reserve is', 33471:'setaside in an amount thatthe contracting officerconsiders necessary to protect the government’s interest. this reserveshallnot exceed onepercent of the government’s', 33472:'share ofthe total estimated cost shown in the schedule or $100,000, whichever is less. end of clause alternate i apr', 33473:'1984. in a contract for research and development with an educational institution, for which the contracting officerhas determinedthat withholdingof aportion', 33474:'of allowablecost is not required, deleteparagraph b ofthe basic clause. 52.21613 [reserved] 52.21614 [reserved] 52.21615 predetermined indirect cost rates. as', 33475:'prescribed in 16.307g, insert the following clause: predetermined indirect cost rates apr 1998 a notwithstanding the allowable cost and payment', 33476:'clause of this contract, the allowable indirect costs under this contract shall be obtained by applying predetermined indirect cost rates', 33477:'to bases agreed upon by the parties, as specified below. b 1thecontractorshallsubmitanadequatefinalindirectcostrateproposaltothecontractingofficerorcognizant federalagency official andauditor within the 6month period followingthe', 33478:'expiration of each of itsfiscalyears. reasonable 52.2153 52.21616 federal acquisition regulation extensions, for exceptional circumstances only, maybe requested in writing', 33479:'by the contractor and granted in writing by the contracting officer. the contractor shall support its proposal withadequate supporting data.', 33480:'2 the proposedratesshallbe based onthe contractor’sactual cost experience for that period. the appropriate government representative and the contractor shall establish', 33481:'the final indirect cost rates as promptly as practical after receipt of the contractor’s proposal. c allowability of costsandacceptability of', 33482:'costallocationmethodsshallbe determined in accordance with far subpart 31.3 in effect on the date of this contract. d predetermined rate agreements', 33483:'in effect on thedate of this contract shall beincorporated intothe contract schedule. the contracting officer or cognizant federal agency officialand', 33484:'contractorshallnegotiate rates for subsequent periods and execute a written indirect cost rate agreement setting forth the results. the agreement shall', 33485:'specify 1 the agreedupon predetermined indirect costrates, 2 the bases towhich the rates apply, 3 the period for which theratesapply,', 33486:'and 4 the specific items treated as direct costs or any changes in the items previously agreed to be direct', 33487:'costs. the indirect cost rate agreement shall not change any monetary ceiling, contract obligation, or specific cost allowance or disallowance', 33488:'provided for in this contract. the agreement is incorporated into this contract upon execution. e pending establishment of predetermined indirect', 33489:'cost rates for any fiscal year or other period agreed to by the parties, the contractor shall be reimbursed either', 33490:'at the rates fixed for the previous fiscal year or other period or at billing rates acceptable tothe contracting officerorcognizant', 33491:'federal agency official, subject to appropriate adjustment whenthe final rates for that period are established. f any failure by the', 33492:'parties to agree on any predetermined indirect cost rates under this clause shall not be considered a dispute within the', 33493:'meaning of the disputes clause. if for any fiscal year or other period specified in the schedule the parties fail', 33494:'to agree to predetermined indirect cost rates, the allowable indirect costs shall be obtained by applying final indirect cost rates', 33495:'established in accordance with the allowable cost and payment clause. g allowable indirect costs for theperiod from the beginning ofperformance', 33496:'until the end of the contractor’s fiscal year or other period specified in the schedule shall be obtained using the', 33497:'predetermined indirect cost rates and the bases shown in the schedule. end of clause 52.21616 incentive price revisionfirm target. as', 33498:'prescribed in 16.406a, insert the following clause: incentive price revisionfirm target jan 2022 a general. the supplies or services identified', 33499:'in the schedule as items [contracting officer insert schedule line item numbers] are subject to price revision in accordance with', 33500:'this clause; provided, that in no event shall the total final price of these items exceed the ceiling price of', 33501:'dollars $. any supplies or services that are to be 1 ordered separately under, orotherwise added to, this contract and', 33502:'2 subject to price revision in accordance with the terms of this clause shall be identified as such in a', 33503:'modification to this contract. b definition. costs, as used in this clause, means allowable costs in accordance with part 31', 33504:'of the federal acquisition regulation far in effecton the date of this contract. c data submission. 1 within [contracting officer', 33505:'insert number of days] days after the end of the month in which the contractor has delivered the last unit', 33506:'of supplies and completed the services specified by item number in paragraph a of this clause, the contractor shall submit', 33507:'in the format of table 151,far 15.408, or in any other form on which the parties agree i a detailed', 33508:'statement of all costs incurred up to the end of that month in performing all work under the items; iian', 33509:'estimate ofcosts of furtherperformance, ifany, that may be necessary to complete performanceof all work under the items; iii a list', 33510:'of all residual inventory and an estimate of its value; and iv anyother relevant data that the contractingofficer may reasonably', 33511:'require. 2 if the contractor fails to submit the data required by paragraph c1 of this clause within the time', 33512:'specified and it is later determined that the government has overpaid the contractor, the contractorshallrepay the excess tothe government immediately.', 33513:'unless repaid within 30 days after the end of thedata submittalperiod, the amount of the excess shall bear 52.2154 subpart', 33514:'52.2 text of provisions and clauses 52.21616 interest, computed from the date the data were due to the date of', 33515:'repayment, at the rate established in accordance with the interest clause. d price revision. upon the contracting officer’sreceipt of the', 33516:'data required by paragraph c ofthisclause, the contracting officerand the contractor shall promptly establish the total final price of the', 33517:'items specified ina of this clause by applying to final negotiated cost an adjustment for profit or loss, as follows:', 33518:'1 on the basis of the information required by paragraph c of this clause, together with any other pertinent information,', 33519:'the parties shall negotiate the total final cost incurred or to be incurred for supplies delivered or services performed and', 33520:'accepted by the government and which are subject to price revision under this clause. 2 the total final price shall', 33521:'be established by applying to the total final negotiated cost an adjustment for profit or loss, as follows: iif the', 33522:'total final negotiated cost is equal to the total target cost, the adjustment is the totaltarget profit. iiif the total', 33523:'final negotiated cost is greater than the total target cost, the adjustment is the total target profit, less [contracting officer', 33524:'insert percent] percent of the amount by which the total final negotiated cost exceeds the total target cost. iii if', 33525:'thefinal negotiated cost isless than the totaltarget cost, theadjustment is thetotal target profit plus [contracting officer insert percent] percent of', 33526:'the amountby which thetotal finalnegotiated cost is less than thetotal target cost. e contract modification. the total final price of', 33527:'the items specified in paragraph a of this clause shall be evidenced by a modification to this contract,signed by thecontractor', 33528:'and the contracting officer. thisprice shall not be subject torevision, notwithstanding any changes in the cost of performing the contract,', 33529:'except to the extent that 1 the parties may agree in writing, before the determination of total final price, to', 33530:'exclude specific elements of cost from this price and to a procedure for subsequent disposition of those elements; and 2', 33531:'adjustments or credits are explicitly permitted or required by this or any other clause in this contract. f adjusting billing', 33532:'prices. 1 pending execution of the contract modification see paragraph e of this clause, the contractor shall submit invoices or', 33533:'vouchers in accordance with billing prices as provided in this paragraph. the billing prices shall be thetarget prices shown in', 33534:'this contract. 2 if at any time it appears from information provided by the contractor under paragraph g2 of this', 33535:'clause that the thencurrent billing prices will be substantially greater than the estimated final prices, the parties shall negotiate a', 33536:'reduction in thebilling prices. similarly, the parties maynegotiate an increase in billing pricesby any or all of the difference betweenthe', 33537:'target prices andthe ceiling price, upon the contractor’s submission of factual data showing that final cost under this contract will', 33538:'be substantially greater than the targetcost. 3 any billingprice adjustment shall be reflected in a contract modification andshallnot affect the', 33539:'determination of the total final price under paragraph d of this clause. after the contract modification establishing the total final', 33540:'price is executed, the total amount paid or to be paid on all invoices or vouchers shall be adjusted to', 33541:'reflect the total final price, and any resulting additional payments, refunds, orcredits shall bemade promptly. g quarterly limitation on payments', 33542:'statement. this paragraph g shall apply until final price revision under this contract has been completed. 1 within 45 days', 33543:'after the end ofeach quarter ofthe contractor’sfiscalyear in whicha delivery is first made or services are first performed and accepted', 33544:'by the government under this contract, and for each quarterthereafter, the contractor shall submit to thecontract administration office with a', 33545:'copyto thecontracting office and the cognizant contract auditor a statement, cumulative from the beginning of the contract, showing i the', 33546:'total contract price of all supplies delivered or services performed and accepted by the government and for which final prices', 33547:'have been established; iithe totalcosts estimated to the extentnecessary reasonably incurred for, and properly allocable solely to, the supplies delivered', 33548:'or services performed and accepted by the government and for which final prices have not been established; iii the portion', 33549:'ofthe total targetprofit usedin establishing the initial contract price or agreed toforthe purpose of this paragraph g that is in', 33550:'direct proportion to the supplies delivered or services performed and accepted by the government and for which final prices have', 33551:'not been establishedincreased or decreased in accordance with paragraph d2 of this clause, when the amount stated under subdivision g1iiof', 33552:'this clausediffers from theaggregate targetcosts of the supplies or services; and iv the total amount of all invoices or vouchers', 33553:'for supplies delivered or services performed and accepted by the government including amounts applied or to be applied to liquidate', 33554:'progress payments. 52.2155 52.21617 federal acquisition regulation 2 notwithstanding any provision of this contract authorizing greater payments, if on any', 33555:'quarterly statement the amount under subdivision g1ivof this clauseexceeds the sum due thecontractor, as computed in accordance with subdivisions g1i,', 33556:'ii, and iii of this clause, the contractor shall immediately refund or credit to the government the amount of this', 33557:'excess. the contractor may, when appropriate, reduce this refund or credit by the amount of previous refunds or credits effected', 33558:'under this clause. if any portion ofthe excess has been applied to the liquidation ofprogress payments, then that portion may,', 33559:'insteadof beingrefunded, be added to the unliquidated progresspayment account consistent with the progress payments clause. the contractor shall provide complete', 33560:'details to support any claimed reductions in refunds. 3 if the contractor fails to submit the quarterly statement within 45', 33561:'days after the end of each quarter and it is later determined that the governmenthas overpaidthe contractor, the contractor shall', 33562:'repay the excess tothe government immediately. unless repaid within 30 days after the end of thestatement submittal period, the amount', 33563:'ofthe excess shall bear interest, computed from the date the quarterly statement was due to the date of repayment, at', 33564:'the rate established in accordance with the interest clause. h subcontracts. no subcontract placed under this contract may provide for', 33565:'payment on a costplusapercentageofcost basis. i disagreements.if the contractor and the contracting officer fail toagreeupon thetotal finalprice within 60days or', 33566:'within such other period as the contracting officer may specify after the date on which the datarequired by paragraph c', 33567:'of this clause areto besubmitted,the contracting officershallpromptly issue a decision in accordance withthe disputes clause. j termination. if this contract', 33568:'is terminated before the total final price is established, prices of supplies or services subject to price revision shall be', 33569:'established in accordance with this clause for 1 completed supplies and services accepted by the government and 2 those supplies', 33570:'and services not terminated under a partial termination. all other elements of the termination shall be resolved in accordance with', 33571:'other applicable clauses of this contract. k equitable adjustment under other clauses. if an equitable adjustment in the contract price', 33572:'is made under any other clause of this contract beforethe total final price isestablished, theadjustmentshallbe made in the total targetcostandmay', 33573:'bemadein the maximum dollar limit on the total final price, the total targetprofit, orboth. ifthe adjustment ismadeafter the total final', 33574:'price is established, only the total final price shall be adjusted. l exclusion from target price and total final price.', 33575:'if any clause of this contract provides that the contract price does not or willnot include an amount for a', 33576:'specific purpose, thenneitheranytarget pricenor the totalfinal price includes orwill include any amount for that purpose. m separate reimbursement. if any', 33577:'clause of this contract expressly provides that the cost of performance of an obligation shall beat government expense, that expense', 33578:'shall not beincluded inany target priceor in the totalfinal price, but shall be reimbursedseparately. n taxes. as used in the', 33579:'federal, state, and local taxes clauseor in anyother clause that provides for certaintaxes or duties to be included in, or', 33580:'excluded from, the contract price, the term contract price includes the total target price or, if it has been established,', 33581:'the total final price. when any of these clauses requires that the contract price be increased or decreased as a', 33582:'result of changes in the obligation of the contractor to pay or bear the burden of certain taxes or duties,', 33583:'the increase or decrease shall be made in the totaltarget priceor, if it has been established, in the total final', 33584:'price, so that it will not affect the contractor’sprofit or loss on this contract. end of clause alternate i apr', 33585:'1984. as prescribed in 16.406 a, add the following paragraph o to the basic clause: o provisioning and options. parts,', 33586:'other supplies, or services that are to be furnished under this contract on the basis of a provisioning document or', 33587:'government option shall be subject to price revision in accordance with this clause. any prices established for these parts, other', 33588:'supplies, or services under a provisioning document or government option shall be treated as target prices. target cost and profit', 33589:'covering these parts,other supplies, or services may be established separately, in the aggregate, or in any combination, as the parties', 33590:'may agree. 52.21617 incentive price revisionsuccessive targets. as prescribed in 16.406b, insert the following clause: incentive price revisionsuccessive targets jan', 33591:'2022 52.2156 subpart 52.2 text of provisions and clauses 52.21617 a general. the supplies or services identified in the schedule', 33592:'as items [contracting officer insert line item numbers] are subject to price revision in accordance with this clause; provided, that', 33593:'in no event shall the total final price of these items exceed the ceiling price of dollars $. the prices', 33594:'of these items shown in the schedule are theinitial target prices,which include an initial target profitof [contracting officer insert percent]', 33595:'percent of theinitial target cost. any supplies or services that are to be 1 ordered separately under, or otherwise added', 33596:'to, this contract; and 2 subject to price revision in accordance with this clause shall be identified as such in', 33597:'a modification to this contract. b definition. costs, as used in this clause, means allowable costs in accordance with part', 33598:'31 of the federal acquisition regulation far in effecton the date of this contract. c submitting data for establishing the', 33599:'firm fixed price or a final profit adjustment formula. 1 within [contracting officer insert number of days] days after the', 33600:'end of the month in which the contractor has completed see note 1, the contractor shall submit the following data:', 33601:'iaproposed firm fixed price or total firm target price for supplies delivered and to be delivered and services performed and', 33602:'to be performed. ii a detailed statement of all costs incurred in the performance of this contract through the end', 33603:'of the month specified above, in the format of table 151,far 15.408 or in any other form on which the', 33604:'parties may agree, with sufficient supporting data to disclose unit costsand costtrends for a supplies delivered and services performed; and', 33605:'b inventories of work in process and undelivered contract supplies on hand estimated to the extent necessary. iii an estimate', 33606:'of costs of all supplies delivered and to be delivered and all services performed and to be performed under this', 33607:'contract, using the statement of costs incurred plus an estimate of costs to complete performance, in the format of table', 33608:'151,far 15.408 or in any other form on which the parties may agree, together with asufficient datato support the accuracy', 33609:'and reliability ofthe estimate; and b anexplanation of thedifferencesbetween this estimate and the original estimate used to establish the initial', 33610:'target prices. 2 the contractor shall also submit, to the extent that it becomes available before negotiations establishing the total', 33611:'firm price are concluded i supplemental statements of costs incurred after the end of the month specified in paragraph 1', 33612:'of this section for a supplies delivered and services performed; and b inventories of work in process and undelivered contract', 33613:'supplies on hand estimated to the extent necessary; and iiany other relevant data that the contracting officer may reasonably require.', 33614:'3 if the contractor fails to submit the data required by paragraphs c1 and 2 of this section within the', 33615:'time specified and it is later determinedthat the government hasoverpaid the contractor,the contractor shall repay the excess to the government', 33616:'immediately. unless repaid within 30days after the end of the data submittal period, theamount of the excess shall bear interest,', 33617:'computed from the date the data were due to the date of repayment, at the rate established in accordance with', 33618:'the interest clause. d establishing firm fixed price or final profit adjustment formula. upon the contracting officer’sreceipt of thedata required', 33619:'byparagraph cof this section, the contractingofficer and the contractor shall promptly establish either a firm fixed price or a profit', 33620:'adjustment formula for determining final profit, as follows: 1 the parties shall negotiate atotal firm target cost, based upon the', 33621:'data submitted under paragraph c of this section. 2 if the totalfirm targetcost is more than the total initial targetcost,', 33622:'the totalinitial target profit shall be decreased. if the totalfirm targetcost is less thanthe total initialtarget cost, thetotal initial target', 33623:'profit shall be increased. the initial target profit shall be increased or decreased by percent see note 2 of the', 33624:'differencebetween the total initial target cost and thetotal firm target cost. the resulting amount shall be the totalfirm target profit;', 33625:'provided, that in no event shall thetotal firm target profit be less than percent or more than percent [contracting officer', 33626:'insert percents] of the total initial cost. 3 if the totalfirm targetcost plus thetotal firm target profit represent a reasonable', 33627:'priceforperforming that part of the contract subject to price revision under this clause, the parties may agree on a firm', 33628:'fixed price, which shall be evidenced by a contract modification signed bythe contractor and the contracting officer. 4 failure of', 33629:'the parties to agree to a firm fixed price shall not constitute a dispute under the disputes clause. if agreementis', 33630:'not reached,or if establishment of a firm fixed price isinappropriate, thecontractor and the contracting officer 52.2157 52.21617 federal acquisition regulation', 33631:'shall establish a profit adjustment formula under which the total final price shall be established by applying to the total', 33632:'final negotiated cost an adjustment for profit or loss, determined as follows: iif the total final negotiated cost is equal', 33633:'to the total firm target cost,the adjustment isthe total firm targetprofit. iiif the total final negotiated cost is greater than', 33634:'the total firmtarget cost, theadjustmentis the total firm target profit, less percent ofthe amount by which the total final negotiated', 33635:'cost exceeds the totalfirm target cost. iii if thetotal finalnegotiated cost is less than thetotal firm target cost, the adjustmentis', 33636:'the total firm target profit, plus percent of the amount by whichthe total final negotiatedcost is less thanthe total firm', 33637:'target cost. iv the total firm target cost, total firmtarget profit, and theprofit adjustmentformula for determining final profit shall beevidenced', 33638:'by a modification to thiscontract signedby the contractor and the contractingofficer. e submitting data for final price revision. unless a', 33639:'firm fixed price has been established in accordance with paragraph d of this section within [contracting officer insert number of', 33640:'days] days after the end of the month in which the contractor has delivered the last unit of supplies and', 33641:'completed the services specified by item number in paragraph a of this section, the contractor shall submit in the format', 33642:'of table 151,far 15.408 or in any other form on which the parties agree 1 a detailed statement of all', 33643:'costs incurred up to the end of that month in performing all work under the items; 2 an estimate of', 33644:'costs offurther performance, if any,that may be necessary to completeperformance of all work under the items; 3 a list of', 33645:'all residual inventory and an estimate of its value; and 4 any other relevant datathat the contractingofficer may reasonably require.', 33646:'f final price revision. unless a firm fixed price has been agreed to in accordance with paragraph d of this', 33647:'section, the contractor and thecontracting officer shall, promptly after submission of the data required byparagraph eof this section, establish the', 33648:'total final price, as follows: 1 on the basis of the information required by paragraph e of this section, together', 33649:'with any other pertinent information, the parties shall negotiate the total final cost incurred or to be incurred for the', 33650:'supplies delivered or services performed and accepted by the government and which are subject to price revision under this clause.', 33651:'2 the total final price shall be established by applying to the total final negotiated cost an adjustment for final', 33652:'profit or loss determined as agreed upon under paragraph d4 of this section. g contract modification. the total final price', 33653:'of the items specified in paragraph a of this section shall be evidenced by a modification to this contract,signed by', 33654:'the contractor and the contracting officer. this priceshallnot be subject to revision, notwithstanding any changes in the cost of performing', 33655:'the contract, except to the extent that 1 the parties may agree in writing, before the determination of total final', 33656:'price, to exclude specific elements of cost from this price and to a procedure for subsequent disposition of these elements;', 33657:'and 2 adjustments or credits are explicitly permitted or required by this or any other clause in this contract. h', 33658:'adjustment of billing prices. 1 pending execution of the contract modification see paragraph e of this section, the contractor shall', 33659:'submit invoices or vouchers in accordance with billing prices as provided in this paragraph. the billing prices shall be theinitial', 33660:'target prices shown in this contract until firm target pricesare established under paragraph d of this section. when established, the', 33661:'firm target prices shall be usedas the billing prices. 2 if at any time it appears from information provided by', 33662:'the contractor under paragraph i1 of this section that the thencurrent billing prices will be substantially greater than the estimated', 33663:'final prices, the parties shall negotiate a reduction in the billing prices. similarly, the parties may negotiate an increase in', 33664:'billingprices by any or allof the difference between thetarget prices and theceiling price, upon the contractor’s submission of factual data', 33665:'showing thatthe final cost under this contract will besubstantially greater than the target cost. 3 any adjustmentof billing pricesshallbe reflected', 33666:'in a contract modification and shall not affect thedetermination of any price under paragraph d or f of this section.', 33667:'after the contract modification establishing the total final price is executed, the total amount paid or to be paid on', 33668:'all invoices or vouchers shall be adjusted to reflect the total final price, and any resulting additional payments, refunds, orcredits', 33669:'shall bemade promptly. i quarterly limitation on payments statement. this paragraph i shall apply until a firm fixed price or', 33670:'a total final price is established under paragraph d3 or f2. 1 within 45 days after the end ofeach quarter', 33671:'ofthe contractor’sfiscalyear in whicha delivery is first made or services are first performed and accepted by the government under this', 33672:'contract, and for each quarterthereafter, the contractor shall submit to thecontract administration office with a copyto thecontracting office and the', 33673:'cognizant contract auditor a statement, cumulative from the beginning of the contract, showing52.2 158 subpart 52.2 text of provisions and', 33674:'clauses 52.21617 i the total contract price of all supplies delivered or services performed and accepted by the government and', 33675:'for which final prices have been established; iithe totalcost estimated to the extent necessary reasonably incurred for,andproperlyallocable solely to, the', 33676:'supplies delivered or services performed and accepted by the government and for which final prices have not been established; iii', 33677:'the portion of the total interim profit used in establishing the initial contract price or agreed to for the purpose', 33678:'of this paragraph i that is in direct proportion to the supplies delivered or services performed and accepted by the', 33679:'government and for which final prices have not been establishedincreased or decreased in accordance with paragraph d4 of this section', 33680:'when the amount stated under subdivision ii of thissection, differsfrom the aggregate firm target costs of the supplies or services;', 33681:'and iv the total amount of all invoices or vouchers for supplies delivered or services performed and accepted by the', 33682:'government including amounts applied or to be applied to liquidate progress payments. 2 notwithstanding any provision of this contract authorizing', 33683:'greater payments, if on any quarterly statement the amount under subdivision i1iv of this section exceeds thesum due the contractor,', 33684:'as computedin accordance with subdivisions i1i, ii, and iii of this section, the contractor shall immediately refund or credit to', 33685:'the government the amount of this excess. the contractor may, when appropriate, reduce this refund or credit by the amount', 33686:'of previous refunds or credits effected under this clause. if any portion ofthe excess has been applied to the liquidation', 33687:'ofprogress payments, then that portion may, insteadof beingrefunded, be added to the unliquidated progresspayment account consistent with the progress payments', 33688:'clause. the contractor shall provide complete details to support any claimed reductions in refunds. 3 if the contractor fails to', 33689:'submit the quarterly statement within 45 days after the end of each quarter and it is later determined that the', 33690:'governmenthas overpaidthe contractor, the contractor shall repay the excess tothe government immediately. unless repaid within 30 days after the end', 33691:'of thestatement submittal period, the amount ofthe excess shall bear interest, computed from the date the quarterly statement was due', 33692:'to the date of repayment, at the rate established in accordance with the interest clause. j subcontracts. no subcontract placed', 33693:'under this contract may provide for payment on a costplusapercentageofcost basis. k disagreements. ifthe contractor and the contracting officer failto', 33694:'agree upon 1atotal firm target cost and a final profit adjustment formula or 2atotal finalprice,within 60 days or within such', 33695:'other period asthe contracting officermay specify after the date on which the data required in paragraphs c and e of', 33696:'this section are to be submitted, the contracting officer shall promptly issue a decision in accordance with the disputesclause. l', 33697:'termination. if this contract is terminated before the total final price is established, prices of supplies or services subject to', 33698:'price revision shall be established in accordance with this clause for 1 completed supplies and services accepted by the government', 33699:'and 2 those supplies or services not terminated under a partial termination. all other elements of the termination shall be', 33700:'resolved in accordance with other applicable clauses of this contract. m equitable adjustments under other clauses. if an equitable adjustment', 33701:'in the contract price is made under any other clause of this contract beforethe total final price isestablished, theadjustmentshallbe made', 33702:'in the total targetcostandmay bemadein the maximum dollar limit on the total final price, the total targetprofit, orboth. ifthe adjustment', 33703:'ismadeafter the total final price is established, only the total final price shall be adjusted. n exclusion from target price', 33704:'and total final price. if any clause of this contract provides that the contract price does not orwill not include', 33705:'an amount for a specific purpose, then neither any targetprice nor the total final price includesor will include any amount', 33706:'for that purpose. o separate reimbursement. if any clause of this contract expressly provides that the cost of performance of', 33707:'an obligation shall beat government expense, that expense shall not beincluded inany target priceor in the totalfinal price, but shall', 33708:'be reimbursedseparately. p taxes. as used in the federal, state, and local taxes clauseor in anyother clause that provides for', 33709:'certaintaxes or duties to be included in, or excluded from, the contract price, the term contract price includes the total', 33710:'target price or, if it has been established, the total final price. when any of these clauses requires that the', 33711:'contract price be increased or decreased as a result of changes in the obligation of the contractor to pay or', 33712:'bear the burden of certain taxes or duties, the increase or decrease shall be made in the totaltarget priceor, if', 33713:'it has been established, in the total final price, so that it will not affect the contractor’sprofit or loss on', 33714:'this contract. notes: 1 the degree of completion may be based on a percentage of contract performance or any other', 33715:'reasonable basis. 52.2159 52.21618 federal acquisition regulation 2 the language may be changed to describe a negotiated adjustment pattern under', 33716:'which the extent of adjustment is not the same for all levels of cost variation. end of clause alternate i', 33717:'apr 1984. as prescribed in 16.406b, add the following paragraph q to the basic clause: q provisioning and options. parts,', 33718:'other supplies, or services that are to be furnished under this contract on the basis of a provisioning document or', 33719:'government option shall be subject to price revision in accordance with this clause. any prices established for these parts, other', 33720:'supplies, or services under a provisioning document or government option shall be treated as initial target prices, ortarget prices as', 33721:'agreed upon and stipulated in the pricing documentsupporting the provisioning or added items. initial or firmtarget costs and profits and', 33722:'final prices covering these parts,other supplies, or services may be established separately, in theaggregate, or inanycombination, asthe parties may agree.', 33723:'52.21618 ordering. as prescribed in 16.506a, insert the following clause: ordering aug 2020 a any supplies and services to be', 33724:'furnished under this contract shall be ordered by issuance of delivery orders or task orders by the individuals or activities', 33725:'designated in the schedule. such orders may be issued from through [insert dates]. b all delivery orders or task orders', 33726:'are subject to the terms and conditions of this contract. in the event of conflict between a delivery order or', 33727:'task order and this contract, the contract shall control. c a delivery order or task order is considered issued when—', 33728:'1 if sent by mail includes transmittal by u.s. mail or private delivery service, the government deposits the order in', 33729:'the mail; 2 if sent by fax, the government transmits the order to the contractors fax number; or 3 if', 33730:'sent electronically, the government either— i posts a copy of the delivery order or task order to a government document', 33731:'access system, and notice is sent to the contractor; or ii distributes the delivery order or task order via email', 33732:'to the contractors email address. d orders may be issued by methods other than those enumerated in this clause only', 33733:'if authorized in the contract. end of clause 52.21619 order limitations. as prescribed in 16.506b, insert a clause substantially the', 33734:'same as follows: order limitations oct 1995 a minimum order. when the government requires supplies or services covered by this', 33735:'contract in an amount of less than [insert dollar figure or quantity], the government is not obligated to purchase, nor', 33736:'is the contractor obligated to furnish, those supplies or services under the contract. b maximum order. the contractor is not', 33737:'obligated to honor 1 any order for a single item in excess of [insert dollar figure or quantity]; 2 any', 33738:'order for a combination of items in excess of [insert dollar figure or quantity]; or 3 a series of orders', 33739:'from the same ordering office within days that together call for quantities exceeding the limitation in paragraph b1 or 2', 33740:'of this section. c if this is a requirements contract i.e., includes the requirements clause at subsection 52.21621 of the', 33741:'federal acquisition regulationfar, the government is not required to order apart of any one requirement from thecontractor if that requirement', 33742:'exceeds the maximumorder limitations in paragraph b of this section. d notwithstanding paragraphs b and c of this section, the', 33743:'contractor shall honor any order exceeding the maximum order limitations in paragraph b,unlessthat order or ordersis returned to the ordering', 33744:'officewithin days after 52.2160 subpart 52.2 text of provisions and clauses 52.21621 issuance, withwritten notice stating thecontractor’s intent not to', 33745:'ship the item or items called for and the reasons. upon receiving this notice, the government may acquire the supplies', 33746:'or services from another source. end of clause 52.21620 definite quantity. as prescribed in 16.506c, insert the following clause: definite', 33747:'quantity oct 1995 a this isa definitequantity, indefinitedeliverycontract for the supplies or services specified, and effective for the period stated,', 33748:'in the schedule. b the government shall order the quantity of supplies or services specified in the schedule, and the', 33749:'contractor shall furnish them when ordered. delivery or performance shall be at locations designated in orders issued in accordance with', 33750:'the ordering clause and the schedule. c except for any limitations on quantities in the order limitations clause or in', 33751:'the schedule, there is no limit on the number of orders that may be issued. the government may issue orders', 33752:'requiring delivery to multiple destinations or performance at multiple locations. d any order issued during the effective period of this', 33753:'contract and not completed within that timeshallbe completedby thecontractor within thetime specified in theorder. thecontract shall governthe contractor’sand government’s rights', 33754:'and obligations with respect to that order tothe same extent as if the order werecompleted during the contract’s effective period;', 33755:'provided, that the contractor shall not be required to make any deliveries under this contract after [insert date]. end of', 33756:'clause 52.21621 requirements. as prescribed in 16.506d, insert the following clause: requirements oct 1995 a this isa requirements contractforthe supplies', 33757:'or services specified, and effective for the periodstated, in the schedule. the quantities of supplies or services specified in the', 33758:'schedule are estimates only and are not purchased by this contract. except as this contract may otherwise provide,if the government’s', 33759:'requirements do not result inordersin the quantities described as estimated or maximum in the schedule, that fact shall not constitute', 33760:'the basis for an equitable price adjustment. b delivery or performance shall be made only as authorized by orders issued', 33761:'in accordance with the ordering clause. subject to any limitations in the order limitations clause or elsewhere in this contract,', 33762:'the contractor shall furnish to the government all supplies or services specified in the schedule and called for by orders', 33763:'issued in accordance with the ordering clause. the government may issue orders requiring delivery to multiple destinations or performance at', 33764:'multiple locations. c except as this contract otherwise provides, the government shall order from the contractor all the supplies or', 33765:'services specified in the schedule that are required to be purchased by the government activity or activities specified in the', 33766:'schedule. d the government is not required to purchase from the contractor requirements in excess of any limit on total', 33767:'orders under this contract. e if the government urgently requires delivery of any quantity of an item beforethe earliest date', 33768:'that deliverymay bespecified under this contract, and if the contractor will notaccept an order providingforthe accelerated delivery, the government may', 33769:'acquire theurgently required goodsor services fromanother source. f anyorder issued during the effective period of this contract and not completed', 33770:'within that periodshallbe completedby thecontractor within thetime specified in theorder. thecontract shall governthe contractor’sand government’s rights and obligations with respect', 33771:'to that order tothe same extent as if the order werecompleted during the contract’s effective period; provided, that the contractor', 33772:'shall not be required to make any deliveries under this contract after [insert date]. 52.2161 52.21622 federal acquisition regulation alternate', 33773:'i apr1984. if the requirements contract is for nonpersonal services and related supplies and covers estimated requirementsthat exceed a specific', 33774:'government activity’s internal capability to produce or perform, substitute the following paragraph c for paragraph c of the basic clause:', 33775:'c the estimated quantities are not the total requirements of the government activity specified in the schedule, but are estimates', 33776:'of requirements in excess of the quantities that the activity may itself furnish within its own capabilities. except as this', 33777:'contract otherwise provides, the government shall order from the contractor all of that activitys requirements for supplies and services specified', 33778:'in the schedule that exceed the quantities that the activity may itself furnish within its own capabilities. alternate ii apr', 33779:'1984. if the requirements contract includes subsistence for both government use and resale in the same schedule, and similar products', 33780:'may be acquired on a brandname basis, add the following paragraph g to the basic clause: g the requirements referred', 33781:'to in this contract are for items to be manufactured according to government specifications. notwithstanding anything to the contrary stated', 33782:'in the contract, the government may acquire similar products by brand name from other sources for resale. alternate iii oct', 33783:'1995. if the requirements contract involves a partial small business setaside, substitute the following paragraph c for paragraph c of', 33784:'the basic clause: c thegovernment’s requirements for each itemor subitem ofsupplies orservices described in the schedule are being purchased through', 33785:'one nonsetaside contract and one setaside contract. therefore, the government shall order from each contractor approximately onehalf of the total', 33786:'supplies or services specified in the schedule that are required to be purchased by the specified government activity or activities.', 33787:'the government may choose between the setaside contractor and the nonsetaside contractor in placing any particular order. however, the government', 33788:'shall allocate successive orders, in accordance with its delivery requirements, to maintain as close a ratio as is reasonably practicable', 33789:'between the total quantities ordered from the two contractors. alternate iv oct 1995. if the contract includes subsistence for both', 33790:'government use and resale in the same schedule and similar products may be acquired on a brandname basis and the', 33791:'contract also involves a partial small business setaside, substitute the following paragraph c for paragraph c of the basic clause', 33792:'and add the following paragraph g to the basic clause: c thegovernment’s requirements for each itemor subitem ofsupplies orservices described', 33793:'in the schedule are being purchased through one nonsetaside contract and one setaside contract. therefore, the government shall order from', 33794:'each contractor approximately onehalf of the total supplies or services specified in the schedule that are required to be purchased', 33795:'by the specified government activity or activities. the government may choose between the setaside contractor and the nonsetaside contractor in', 33796:'placing any particular order. however, the government shall allocate successive orders, in accordance with its delivery requirements, to maintain as', 33797:'close a ratio as is reasonably practicable between the total quantities ordered from the two contractors. g the requirements referred', 33798:'to in this contract are for items to be manufactured according to the government specifications. notwithstanding anything to the contrary', 33799:'stated in the contract, the government may acquire similar products by brand name from other sources for resale. 52.21622 indefinite', 33800:'quantity. as prescribed in 16.506e, insert the following clause: indefinite quantity oct 1995 a this isan indefinitequantity contract for thesupplies', 33801:'orservicesspecified,and effective for theperiod stated, in the schedule. the quantities of supplies and services specified in the schedule are estimates', 33802:'only and are not purchased by this contract. b delivery or performance shall be made only as authorized by orders', 33803:'issued in accordance with the ordering clause. the contractor shall furnish to the government, when and if ordered, the supplies', 33804:'or services specified in the schedule up to and including the quantity designated in the schedule as the maximum. the', 33805:'government shall order at least the quantity of supplies or services designated in the schedule as the minimum. c except', 33806:'for any limitations on quantities in the order limitations clause or in the schedule, there is no limit on the', 33807:'number of orders that may be issued. the government may issue orders requiring delivery to multiple destinations or performance at', 33808:'multiple locations. 52.2162 subpart 52.2 text of provisions and clauses 52.21625 d any order issued during the effective period of', 33809:'this contract and not completed within that periodshallbe completed by the contractorwithin the time specifiedin the order. the contractshallgovern the', 33810:'contractor’s and government’srights and obligations with respect to thatorder to the same extent as if theorder were completed duringthe contract’s', 33811:'effective period; provided, that the contractor shall not be required to make any deliveries under this contract after [insert date].', 33812:'end of clause 52.21623 execution and commencement ofwork. as prescribed in 16.6034b1, insert the following clause in solicitations and contracts', 33813:'when a letter contract is contemplated, except that it may be omitted from letter contracts awarded on sf 26: execution', 33814:'and commencement of work apr 1984 the contractor shall indicate acceptance of this letter contract by signing three copies of', 33815:'the contract and returning them to thecontracting officer not later than [insert date]. upon acceptance by both parties, the contractor', 33816:'shall proceed with performance of the work, including purchase of necessary materials. end of clause 52.21624 limitation ofgovernment liability. as', 33817:'prescribed in 16.6034b2, insert the following clause in solicitations and contracts when a letter contract is contemplated: limitation of government', 33818:'liability apr 1984 a in performing this contract, the contractor is not authorized to make expenditures or incur obligations exceeding', 33819:'dollars. b the maximum amount for which the government shall be liable if this contract is terminated is dollars. end', 33820:'of clause 52.21625 contract definitization. as prescribed in 16.6034b3, insert the following clause: contract definitization oct 2010 a a [insert', 33821:'specific type of contract] definitive contract is contemplated. the contractor agrees to begin promptly negotiating with the contractingofficer the termsof', 33822:'adefinitive contract that will include 1 all clauses required bythe federal acquisition regulation far on the date of execution of', 33823:'theletter contract, 2 all clauses required by law on the date of execution of the definitive contract, and 3 any', 33824:'other mutually agreeable clauses, terms, and conditions. the contractor agrees to submit a [insert specific type of proposal e.g., fixedprice', 33825:'or costandfee] proposal, including data other than certified cost or pricing data, and certified cost or pricing data, in accordance', 33826:'with far 15.408, table 151, supporting its proposal. b the schedule for definitizing this contract is [insert target date for', 33827:'definitization of the contract and dates for submission of proposal, beginning of negotiations, and, if appropriate, submission of makeorbuy and', 33828:'subcontracting plans and certified cost or pricing data]: c if agreement on a definitive contractto supersede this letter contract is', 33829:'notreached by the targetdate inparagraph b of this section, or within any extension of it granted bythe contracting officer, thecontracting', 33830:'officer may, withthe approvaloftheheadofthecontractingactivity,determineareasonablepriceorfeeinaccordancewith subpart 15.4 and part 52.2163 52.21626 federal acquisition regulation 31 of the far, subject to contractor', 33831:'appeal as provided in the disputesclause. in anyevent, the contractor shall proceed with completion of the contract, subject only to', 33832:'the limitation of government liability clause. 1 afterthe contracting officer’s determination ofprice or fee, the contractshallbe governed by iall clauses', 33833:'required by the far onthe dateof execution of thisletter contract for either fixedprice orcostreimbursement contracts, asdetermined by the contracting officer', 33834:'under thisparagraph c; iiall clauses required by law asof the date of the contracting officer’sdetermination; and iii any other clauses,', 33835:'terms, and conditions mutually agreed upon. 2 to the extent consistent with paragraph c1 of this section, all clauses, terms,', 33836:'and conditions included in this letter contract shall continue in effect,exceptthose that by their nature apply only to a letter', 33837:'contract. end of clause alternate i apr 1984. in letter contracts awarded on the basis of price competition, add the', 33838:'following paragraph d to the basic clause: d the definitive contract resulting from this letter contract will include a negotiated', 33839:'[insert price ceiling or firm fixed price] in no event to exceed [insert the proposed price upon which the award', 33840:'was based]. 52.21626 payments of allowable costsbeforedefinitization. as prescribed in 16.6034c, insert the following clause: payments of allowable costs before', 33841:'definitization dec 2002 a reimbursement rate. pending the placing of the definitive contract referred to in this letter contract, the', 33842:'government will promptly reimburse the contractor for all allowable costs under this contract at the following rates: 1 one hundredpercent', 33843:'of approved costs representing financing payments to subcontractors under fixedprice subcontracts, provided that the government’spaymentsto thecontractor will not exceed 80', 33844:'percent of the allowable costs of those subcontractors. 2 one hundredpercent of approved costs representing costreimbursement subcontracts; provided, that the', 33845:'government’s payments to the contractorshallnot exceed 85 percentof the allowable costs of those subcontractors. 3 eightyfivepercent of all other approved', 33846:'costs. b limitation of reimbursement.to determine the amounts payable to the contractor under this letter contract, the contractingofficershalldetermineallowablecostsinaccordancewiththeapplicablecostprinciplesin part 31', 33847:'of the federalacquisition regulation far. the total reimbursement made underthis paragraph shall not exceed85 percent of the maximumamount of the', 33848:'government’sliability,as stated in this contract. c invoicing. payments shall be made promptly to the contractor when requested as work progresses,', 33849:'but except for small business concerns not more often than every 2 weeks, inamountsapproved bythe contracting officer. the contractor may', 33850:'submitto anauthorized representative ofthe contracting officer, in such form and reasonable detail asthe representative may require, an invoice or voucher', 33851:'supported by a statement of the claimed allowable cost incurred by the contractor in the performance of this contract. d', 33852:'allowable costs. for the purpose of determining allowable costs, the term costs includes 1 those recorded costs that result, at', 33853:'the time of the request for reimbursement, from payment by cash, check, or other form of actual payment for items', 33854:'or services purchased directly for the contract; 2 when the contractor is not delinquent in payment of costs of contract', 33855:'performance in the ordinary course of business, costs incurred, but not necessarily paid, for i supplies and services purchased directly', 33856:'for the contract and associated financing payments to subcontractors, provided payments determined due will be made a in accordance with', 33857:'the terms and conditions of a subcontract or invoice; and b ordinarilywithin 30 days of thesubmission ofthe contractor’spayment request to', 33858:'the government; iimaterials issued from the contractor’s storesinventoryandplacedin the production process for use on the contract; iii direct labor; iv', 33859:'direct travel; 52.2164 subpart 52.2 text of provisions and clauses 52.21629 v other direct inhouse costs; and vi properly allocable', 33860:'and allowable indirect costs as shown on the records maintained by the contractor for purposes of obtaining reimbursement under government', 33861:'contracts; and 3 the amount of financing payments that the contractor has paid by cash, check, or other forms of', 33862:'payment to subcontractors. e small business concerns. a small business concern may receive more frequent payments than every 2 weeks.', 33863:'f audit. at any time beforefinal payment, the contractingofficer may have the contractor’s invoicesor vouchers and statements of costs audited.', 33864:'any payment may be 1 reduced by any amounts found by the contracting officer not to constitute allowable costs; or', 33865:'2 adjusted for overpayments or underpayments made on preceding invoices or vouchers. end of clause 52.21627 single or multiple awards.', 33866:'as prescribed in 16.506f, insert the following provision: single or multiple awards oct 1995 the government may elect to award', 33867:'a single delivery order contract or task order contract or to award multiple delivery order contracts or task order contracts', 33868:'for the same or similar supplies or services to two or more sources under this solicitation. end of provision 52.21628', 33869:'multiple awardsfor advisory andassistanceservices. as prescribed in 16.506g, insert the following provision: multiple awards for advisory and assistance services oct', 33870:'1995 the government intends to award multiple contracts for the same or similar advisory and assistance services to two or', 33871:'more sourcesunder this solicitation unless the government determines, after evaluation of offers,that only one offeror is capable of providing the', 33872:'services at the level of quality required. end of provision 52.21629 timeandmaterials/laborhour proposal requirements—other than commercial acquisition with adequate price', 33873:'competition. as prescribed in 16.601f1, insert the following provision: timeandmaterials/laborhour proposal requirements—other than commercial acquisition with adequate price competition nov', 33874:'2021 a thegovernment contemplatesaward of a timeandmaterials orlaborhour type of contractresulting from this solicitation. b the offeror must specify fixed', 33875:'hourly rates in its offer that include wages, overhead, general and administrative expenses, and profit. the offeror must specify whether', 33876:'the fixed hourly rate for each labor category applies to labor performed by 1 the offeror; 2 subcontractors; and/or 3', 33877:'divisions, subsidiaries, or affiliates ofthe offeror under a common control; c theofferor must establish fixed hourly rates using52.2 165 52.21630', 33878:'federal acquisition regulation 1 separate rates for each category of labor to be performed by each subcontractor and for each', 33879:'category of labor to be performed by the offeror,andforeach category oflabor to be transferred between divisions, subsidiaries, or affiliates of', 33880:'the offeror under a common control; 2 blended rates for eachcategory of labor to be performed by the offeror,including labor', 33881:'transferred between divisions,subsidiaries, oraffiliates of theofferor under a common control, and all subcontractors; or 3 any combination of separate and', 33882:'blendedratesforeach category of labor to be performed by the offeror, affiliates of the offeror under a common control, andsubcontractors. end', 33883:'of provision 52.21630 timeandmaterials/laborhour proposal requirements—other than commercial acquisition without adequate price competition. as prescribed in 16.601f2, insert the following', 33884:'provision: timeandmaterials/laborhour proposal requirements—other than commercial acquisition without adequate price competition nov 2021 a thegovernment contemplatesaward of a timeandmaterials orlaborhour', 33885:'type of contractresulting from this solicitation. b the offeror must specify separate fixed hourlyratesin itsoffer that include wages, overhead, general', 33886:'and administrative expenses, and profit for each category of labor to be performed by 1 the offeror; 2 each subcontractor;', 33887:'and 3 each division, subsidiary, or affiliate of the offeror under a common control. c unless exempt under paragraph d', 33888:'of this provision, the fixed hourly rates for services transferred between divisions, subsidiaries, or affiliates of the offeror under a', 33889:'common control 1 shall not include profit for the transferring organization; but 2 mayinclude profit for the prime contractor. d', 33890:'the fixed hourly rates for services that meet the definition of “commercial service” at federal acquisition regulation 2.101that aretransferred between', 33891:'divisions,subsidiaries, oraffiliates of theofferor under a common control may be the established catalog or market ratewhen it is the established', 33892:'practice of the transferring organization to price interorganizational transfersat other than cost for commercial work of the offeror orany division,', 33893:'subsidiary or affiliate of the offeror under a common control. end of provision 52.21631 timeandmaterials/laborhour proposal requirements—commercial acquisition. as prescribed', 33894:'in 16.601f3, insert the following provision: timeandmaterials/laborhour proposal requirements—commercial acquisition nov 2021 a thegovernment contemplatesaward of a timeandmaterials orlaborhour type', 33895:'of contractresulting from this solicitation. b the offeror must specify fixed hourly rates in its offer that include wages, overhead,', 33896:'general and administrative expenses, and profit. the offeror must specify whether the fixed hourly rate for each labor category applies', 33897:'to labor performed by 1 the offeror; 2 subcontractors; and/or 3 divisions, subsidiaries, or affiliates ofthe offeror under a common', 33898:'control. end of provision 52.2166 subpart 52.2 text of provisions and clauses 52.21632 52.21632 taskorder and deliveryorder ombudsman. as prescribed', 33899:'in 16.506j, insert the following clause: taskorder and deliveryorder ombudsman sept 2019 a in accordance with 41 u.s.c. 4106g, the', 33900:'agency has designated the following taskorder and deliveryorder ombudsman for this contract. the ombudsman must review complaints from the contractor', 33901:'concerning all taskorder and deliveryorder actions for this contract and ensure the contractor isafforded a fair opportunityforconsideration inthe award of', 33902:'orders, consistent with the procedures in the contract. [contracting officer to insert name, address, telephone number, and email address for', 33903:'the agency ombudsman or provide the url address where this information may be found.] b consulting an ombudsman does not', 33904:'alter or postpone the timeline for any other process e.g., protests. c before consulting with the ombudsman, the contractor is', 33905:'encouraged to first address complaints with the contracting officer for resolution. when requested by thecontractor, the ombudsman may keep theidentity', 33906:'of the concerned party or entity confidential, unless prohibited by law or agency procedure. end of clause alternate i sept', 33907:'2019. as prescribed in 16.506 j, add the following paragraph d to the basic clause. d contracts used by multiple', 33908:'agencies. 1 this is a contract that is used by multiple agencies. complaints from contractors concerning orders placed under contracts', 33909:'used by multiple agencies are primarily reviewed by the taskorder and deliveryorder ombudsman for the ordering activity. 2 the ordering', 33910:'activity has designated the following taskorder and deliveryorder ombudsman for this order: [the ordering activitys contracting officer to insert the', 33911:'name, address, telephone number, and email address for the ordering activitys ombudsman or provide the url address where this information', 33912:'may be found.] 3 before consulting with thetaskorder and deliveryorder ombudsmanforthe ordering activity, the contractor is encouraged to first address', 33913:'complaints with the ordering activitys contracting officer for resolution. when requestedby the contractor, the taskorder and deliveryorderombudsman for theorderingactivity may', 33914:'keep theidentityof the concerned party or entity confidential, unless prohibited by law or agency procedure. 52.2167 this page intentionally left', 33915:'blank. 52.2168 subpart 52.2 text of provisions and clauses 52.2172 52.217[reserved] 52.2171 [reserved] 52.2172 cancellation under multiyear contracts. as prescribed', 33916:'in 17.109a, insert the following clause: cancellation under multiyear contracts oct 1997 a cancellation, as used in this clause, means', 33917:'that the government is canceling its requirements for all supplies or services in program years subsequent to that in which', 33918:'notice of cancellation is provided. cancellation shall occur by the date or within the time period specified inthe schedule, unless', 33919:'alater dateis agreedto, if the contracting officer 1 notifies the contractor that funds are not available for contract performance for', 33920:'any subsequent program year; or 2 fails to notify the contractor that funds are available for performance of the succeeding', 33921:'program year requirement. b except for cancellation under this clause or termination under the default clause, any reduction by the', 33922:'contracting officer in the requirements ofthiscontract shall be considered a terminationunder thetermination for convenienceof the government clause. c if cancellation', 33923:'under this clause occurs, the contractor will be paid a cancellation chargenot over the cancellation ceiling specified in the schedule', 33924:'as applicable at the time of cancellation. d the cancellation charge willcover only 1 costs i incurred by the contractor', 33925:'and/or subcontractor; ii reasonably necessary for performance of the contract; and iii that would have been equitably amortized over the', 33926:'entire multiyear contract period but, because of the cancellation, are not so amortized; and 2 a reasonable profit or fee', 33927:'on the costs. e thecancellation chargeshallbe computed and the claim made for it asif the claim were being made under', 33928:'the terminationforconvenience of the government clauseof this contract. the contractor shall submit the claim promptly but no later than 1', 33929:'year from the date 1 of notification of the nonavailability of funds; or 2 specified in the schedule by which', 33930:'notification of the availability of additional funds for the next succeeding program year isrequired to be issued,whichever isearlier, unless extensionsin', 33931:'writingare granted bythe contracting officer. f the contractor’s claimmay include 1 reasonable nonrecurring costs see subpart 15.4 of the federal', 33932:'acquisition regulation which are applicable to and normally would have been amortized in all supplies or services which are multiyear', 33933:'requirements; 2 allocable portions of the costs of facilities acquired or established for the conduct of the work, to the', 33934:'extent that it is impracticable for thecontractor to use the facilities in its commercial work, and if the costsare not', 33935:'charged tothe contract through overhead or otherwise depreciated; 3 costs incurred for the assembly, training,andtransportation to andfrom the job site', 33936:'ofa specialized work force; and 4 costs not amortized solely because the cancellation had precluded anticipated benefits of contractor or', 33937:'subcontractor learning. g the claim shall not include 1 labor, material, or otherexpenses incurred by the contractor or subcontractors for', 33938:'performance of the canceled work; 2 any cost already paid to the contractor; 3 anticipated profit or unearned fee on', 33939:'the canceled work; or 4 for service contracts, the remaining useful commercial life of facilities. useful commercial life means the', 33940:'commercial utility of the facilities rather than their physical life with due consideration given to such factors as location of', 33941:'facilities, their specialized nature, and obsolescence. h this contract may include an option clause with the period for exercising the', 33942:'option limited to the date in the contract for notificationthat funds areavailable for the next succeeding program year. if so,', 33943:'the contractor agrees not to include in option quantities any costs of a startup or nonrecurring nature that have been', 33944:'fully set forth in the contract. the contractor 52.2169 52.2173 federal acquisition regulation further agrees that the option quantities will', 33945:'reflect only those recurring costs and a reasonable profit or fee necessary to furnish the additional option quantities. i quantities', 33946:'added to the original contract through the option clause of this contract shall be included in the quantity canceled for', 33947:'the purpose of computing allowablecancellation charges. end of clause 52.2173 evaluation exclusive of options. as prescribed in 17.208a, insert a', 33948:'provision substantially the same as in the following in solicitations when the solicitation includes an option clause and does not', 33949:'include one of the provisions prescribed in 17.208b or c: evaluation exclusive of options apr 1984 the government will evaluate', 33950:'offers for awardpurposesby including only the priceforthe basic requirement; i.e., options will not be included in the evaluation for award', 33951:'purposes. end of provision 52.2174evaluation of optionsexercisedat time of contract award. as prescribed in 17.208b, insert a provision substantially the', 33952:'same as the following: evaluation of options exercised at time of contract award june 1988 except when it isdetermined in', 33953:'accordancewith far 17.206b not to be in thegovernment’s best interests, the government will evaluate the total price for the basic', 33954:'requirement together with any options exercised at the time of award. end of provision 52.2175 evaluation of options. as prescribed', 33955:'in 17.208c, insert a provision substantially the same as the following: evaluation of options july 1990 except when it isdetermined', 33956:'in accordancewith far 17.206b not to be in thegovernment’s best interests, the government will evaluate offers for award purposes by', 33957:'adding the total price for all options to the total price for the basic requirement. evaluation of options will not', 33958:'obligate the government to exercise the options. end of provision 52.2176option for increasedquantity. as prescribed in 17.208d, insert a clause', 33959:'substantially the same as the following: option for increased quantity mar 1989 the government may increase the quantity of supplies', 33960:'called for in the schedule at the unit price specified. the contracting officermay exercise the option bywritten notice to the', 33961:'contractor within [insert in the clause the period of time in which the contracting officer has to exercise the option].', 33962:'delivery of the added items shall continue at the same rate as the like items called for under the contract,', 33963:'unless the parties otherwise agree. end of clause 52.2177option for increasedquantityseparately pricedline item. as prescribed in 17.208e, insert a clause', 33964:'substantially the same as the following: 52.2170 subpart 52.2 text of provisions and clauses 52.21710 option for increased quantityseparately priced', 33965:'line item mar 1989 the government may require the delivery of the numbered line item, identified in the schedule as', 33966:'an option item, in the quantity and at the price stated in the schedule. the contracting officer may exercisethe option', 33967:'by written noticeto the contractor within [insert in the clause the period of time in which the contracting officer has', 33968:'to exercise the option]. delivery of added items shall continue at the same rate that like items are called for', 33969:'under the contract, unless the parties otherwise agree. end of clause 52.2178 option to extend services. as prescribed in 17.208f,', 33970:'insert a clause substantially the same as the following: option to extend services nov 1999 the government may require continued', 33971:'performance of any services within the limits and at the rates specified in the contract. these rates may be adjusted', 33972:'only as a result of revisions to prevailing labor rates provided by the secretary of labor. the option provision maybe', 33973:'exercised more than once, but the total extension ofperformance hereunder shall not exceed 6 months. thecontracting officer may exercise the', 33974:'option by writtennotice to the contractor within [insert the period of time within which the contracting officer may exercise the', 33975:'option]. end of clause 52.2179option toextend the term of the contract. as prescribed in 17.208g, insert a clause substantially the', 33976:'same as the following: option to extend the term of the contractmar 2000 a the government may extend the term', 33977:'of this contract by written notice to the contractor within [insert the period of time within which the contracting officer', 33978:'may exercise the option]; provided that the government gives the contractor a preliminary written notice of its intent to extend', 33979:'at least days[60days unless a different number of days is inserted] before the contract expires. the preliminary notice does not', 33980:'commit the government to an extension. b if the government exercises this option, the extended contract shall be considered to', 33981:'include this option clause. c the total duration of this contract, including the exercise of any options under this clause,', 33982:'shall not exceed months years. end of clause 52.21710 reverse auction as prescribed in 17.806a, insert the following provision: reverse', 33983:'auction aug 2024 a definitions. as used in this provision— reverse auction means the process for obtaining pricing, usuallysupported by', 33984:'anelectronic tool,in which offerors see competing offerors prices, withoutdisclosure of the competing offerors identity,andhavethe opportunityto submit lower priced offersuntil the', 33985:'close ofthe auction. reverse auction service provider means a commercial or government entity that provides a means for conducting reverse', 33986:'auctions when acquiring supplies or services to be used by the government. b reverse auction. the government intends to conduct', 33987:'a reverse auction under this solicitation to award a contract or blanket purchase agreement. c offeror agreement. by submissionof aquote', 33988:'orproposal in response to the solicitation,the offeror agreesto participate inthe reverse auction and agreesthat the government may reveal toallofferors theoffered', 33989:'prices in the auction, 52.2171 52.21711 federal acquisition regulation without revealing any offerors identity, except for theawardees identity subsequent toan', 33990:'award resulting from the auction. the offeror maywithdraw its agreement to further participate in the process bywithdrawing its offer before', 33991:'the close of the auction by notifying the contractingofficer via the contact method identified in the solicitation. d only one', 33992:'offer. if the reverseauction produces only one offer,the government reserves the right to cancel theauction. e release of information. the', 33993:'government may use a reverse auction service provider to conduct the reverse auction. any price or proposal information or source', 33994:'selection information received by the reverse auction service provider in relation to the reverse auction shall not be released, outside', 33995:'of the government, unless otherwiserequired by law. however, this does not prevent the government from revealing to all offerors the', 33996:'offered prices inthe auction, without revealinganyofferors identity. priceor proposal information includes, but is not limited to— 1 contractor bid or', 33997:'proposal information, as defined at federal acquisition regulation 3.1041; and 2 information identified bythe offeror as restricted fromduplication, use, ordisclosure—in', 33998:'whole or in part—for any purpose otherthan to evaluate the offerors priceor proposal. end of provision 52.21711 reverse auction—orders. as', 33999:'prescribed in 17.806b, insert the following clause: reverse auction—orders aug 2024 a definitions. as used in this clause— reverse auction', 34000:'means the process for obtaining pricing, usuallysupported by anelectronic tool,in which offerors see competing offerors prices, withoutdisclosure of the competing', 34001:'offerors identity,andhavethe opportunityto submit lower priced offersuntil the close ofthe auction. reverse auction service provider means a commercial or government', 34002:'entity that provides a means for conducting reverse auctions when acquiring supplies or services to be used by the government.', 34003:'b reverse auction. the contracting officer mayconduct a reverse auction to awardan orderunder this contract or blanket purchase agreement. c', 34004:'contractor agreement. when a reverse auction is conducted under this contract or blanket purchase agreement, the following applies: 1 the', 34005:'contractors or blanket purchase agreement holders submission of a quote or proposal in response to the solicitation for an order', 34006:'constitutes agreement to participate in the auction. 2 the contractor agreesthat the government may reveal toallofferors theoffered prices in the', 34007:'auction, without revealingany offerors identity, except for the awardees identity subsequent to an award resulting from the auction. 3 the', 34008:'contractor or blanket purchase agreement holder may withdraw its agreement to further participate in the reverse auction by withdrawing its', 34009:'offer. to withdraw an offer made in response to areverse auctionsolicitation issued under this contract or blanket purchase agreement, the', 34010:'contractor or blanket purchase agreement holder shall notify the contracting officer of therequest before the closeof the auction via the', 34011:'contact method identifiedin the solicitation. 4 if the reverse auction produces only one offer, thegovernment reserves the right to cancel', 34012:'the auction. d release of information. the government may use a reverse auction service provider to conduct the reverse auction.', 34013:'any price or proposal information or source selection information received by the reverse auction service provider in relation to the', 34014:'reverse auction shall not be released, outside of the government, unless otherwiserequired by law. however, this does not prevent the', 34015:'government from revealing to all contractors or blanketpurchase agreement holders the offered prices in theauction, withoutrevealing any contractor or blanket', 34016:'purchase agreement holders identity. priceor proposalinformation includes, but is not limited to— 1 contractor bid or proposal information, as defined', 34017:'at federal acquisition regulation 3.1041; 2 price or proposal information similarly generated for a task order or delivery order or', 34018:'an order under a blanket purchase agreement; and 3 information identified by the contractor or blanket purchase agreement holder as', 34019:'restricted from duplication, use, or disclosure—in whole or in part—for any purpose other than to evaluate the contractor or blanket', 34020:'purchase agreement holders price or proposal. end of clause 52.2172 subpart 52.2 text of provisions and clauses 52.21712 52.21712 reverse', 34021:'auction services. as prescribed in 17.806c, insert the following clause: reverse auction services aug 2024 a definitions. government data means', 34022:'any information, document, media, or machinereadable material regardless of physical form or characteristics,that iscreatedor obtained by the government, in the', 34023:'course of official government business. governmentrelated data means any information, document, media, or machinereadable material regardless of physical form or', 34024:'characteristics that is created or obtained by a contractor through the storage, processing, or communication of government data. this does', 34025:'not include a contractors business records e.g., financial records, legal records, etc. or data such as operating procedures, software coding,', 34026:'or algorithms that are not uniquely applied to the government data. reverse auction means the process for obtaining pricing, usuallysupported', 34027:'by anelectronic tool,in which offerors see competing offerors prices, withoutdisclosure of the competing offerors identity,andhavethe opportunityto submit lower priced offersuntil', 34028:'the close ofthe auction. b duties of the reverse auction service provider. when providing reverse auction services to the government,', 34029:'the contractor shall— 1 not assert or imply that it can or will obtain a government contract for the participants', 34030:'of a reverse auction; 2 allow entities to register, atno cost, aspotentialofferorsforany reverse auction conducted on behalf of the government', 34031:'on the providers reverse auction platform. as part of the registration process, the contractor shall allow each entity the opportunity', 34032:'to execute a proprietary data protection agreementwith the contractor; however, the contractor shall not negotiate terms inthe agreement that affect', 34033:'the terms and conditions of a government solicitation or contract; 3 limit access to, use of, and disclosure of government', 34034:'data and governmentrelated data. i the contractor shall not access, use, or disclose government data unless specifically authorized by the', 34035:'terms of this contract or a task orderor delivery order issued hereunder. iiif authorized by the termsof this contract or', 34036:'a taskorder or delivery orderissuedhereunder, any access to, or use or disclosure of, government data shall only be for purposes', 34037:'specified inthiscontract or taskorder or delivery order. iii the contractor shall ensure that its employees are subject to all such', 34038:'access, use, and disclosure prohibitions and obligations. iv these access, use, and disclosure prohibitions and obligations shall survive the expiration', 34039:'or termination of this contract. v the contractor shall notify the contracting officer promptly of any requests from athird partyforaccess', 34040:'to government data or governmentrelated data, including any warrants, seizures, or subpoenas it receives, including those from another federal,state,or local', 34041:'agency. the contractorshallcooperate with the contracting officer to take allmeasures to protect government data and governmentrelated data from any unauthorized', 34042:'disclosure. 4 assert no right or license in the data gathered or generated during a reverse auction. use governmentrelated data', 34043:'only to manage the operational environment that supports the government data and for no other purpose unless otherwise permitted with', 34044:'the prior writtenapproval of the contracting officer. 5 protect from unauthorized use or disclosure and not release outside of the', 34045:'government any price or proposal information or any sourceselection information see federal acquisitionregulation far 2.101 received by the contractor in', 34046:'relation to a reverse auction. price or proposal information shall include, but is not limited to— icontractor bidor proposalinformation, as', 34047:'defined at far 3.1041; ii price or proposal information similarly generated for a task order or delivery order or an', 34048:'order under a blanket purchase agreement; and iii information identified by the reverse auction participant as restricted from duplication, use,', 34049:'or disclosure—in whole or in part—for any purpose other than to evaluate the reverse auction participants price or proposal; 6', 34050:'allow offerors to see the successive lowestprices offered in theauction withoutrevealing anofferorsidentity; 7 not participate as an offeror inanyreverse auction,', 34051:'which the contractor is hostingon behalfof the government. this prohibition includes participation in a reverse auction by any entity with', 34052:'which the contractor has a relationship that raises an actual or potential conflict of interest; 8 at the close of', 34053:'each auction— iprovide the contracting officer with the successful offer, along with information thatseparately identifies the offerors price and the', 34054:'price for each provider fee or charge includedin the total price;and 52.2173 federal acquisition regulation iiprovidethe contracting officerwith all information', 34055:'and documentation receivedfrom reverse auction participants in response to the reverse auction. end of clause 52.218[reserved] 52.2174 subpart 52.2 text', 34056:'of provisions and clauses 52.2191 52.219[reserved] 52.2191small business programrepresentations. as prescribed in 19.309a1, insert the following provision: small business program', 34057:'representations feb 2024 a definitions. as used in this provision economically disadvantaged womenowned small business edwosb concern means a small', 34058:'business concern that is at least51 percent directly andunconditionally owned by,andthe management and dailybusinessoperations ofwhich arecontrolled by,oneor more women who', 34059:'arecitizens of the unitedstates and whoare economically disadvantaged in accordance with 13 cfr part 127, and the concern is certified', 34060:'by sba or an approved thirdparty certifier in accordance with 13 cfr 127.300. it automatically qualifies as a womenowned small', 34061:'business concern eligible under the wosb program. servicedisabled veteranowned small business sdvosb concern means a small business concern 1 inotlessthan51percentofwhichisownedandcontrolledbyoneormoreservicedisabledveteransor,inthe', 34062:'case of any publicly owned business, not less than 51 percent of the stock of which is owned by one', 34063:'or more servicedisabled veterans; and ii the management and daily business operations of which are controlled by one or more', 34064:'servicedisabled veterans or, in the case of a servicedisabledveteran with permanent and severe disability, the spouse or permanent caregiver of', 34065:'such veteran or; 2 a small business concern eligible under the sdvosb program in accordance with 13 cfr part 128', 34066:'see subpart 19.14. 3 servicedisabled veteran, as used in this definition, means a veteran as defined in 38 u.s.c. 1012,', 34067:'with a disability that is serviceconnected, as defined in 38 u.s.c. 10116, with a disability that is serviceconnected, as defined', 34068:'in 38 u.s.c. 10116, and who is registered in the beneficiary identification and records locator subsystem, or successor system that', 34069:'is maintained by the department of veterans affairs’ veterans benefits administration, as a servicedisabled veteran. servicedisabled veteranowned small business sdvosb', 34070:'concern eligible under the sdvosb program means an sdvosb concern that— 1 effective january 1,2024, is designated inthe system for', 34071:'award management sam ascertifiedby the small business administration sba in accordance with 13 cfr 128.300; or 2 has represented that', 34072:'it is an sdvosb concern in sam and submitted a complete application for certification to sba on or before december', 34073:'31, 2023. servicedisabled veteranowned small business sdvosb program means a program that authorizes contracting officers to limit competition, including award', 34074:'on a solesource basis, to sdvosb concerns eligible under the sdvosb program. small business concern— 1 means a concern, including', 34075:'itsaffiliates, that is independently owned and operated, not dominant inits field of operation, and qualified as a small business under', 34076:'the criteria in 13 cfr part 121 and the size standard in paragraph b of this provision. 2 affiliates, as', 34077:'used in this definition, means business concerns, one of whom directly or indirectly controls or has the power to control', 34078:'the others, or a third party or parties control or have the power to control the others. in determining whether', 34079:'affiliationexists, consideration is given to all appropriate factors including commonownership, commonmanagement, and contractualrelationships. sbadeterminesaffiliation based onthe factors setforth at 13', 34080:'cfr121.103. small disadvantaged business concern, consistent with 13 cfr 124.1001, means a small business concern under the size standard applicable', 34081:'to the acquisition, that 1 is at least 51 percent unconditionally and directly owned as defined at 13 cfr 124.105', 34082:'by i one or more socially disadvantaged as defined at 13 cfr 124.103 and economically disadvantaged as defined at 13', 34083:'cfr 124.104 individuals who are citizens of the united states, and ii each individual claiming economic disadvantage has a net', 34084:'worth not exceeding the threshold at 13 cfr 124.104c2 after taking into account the applicable exclusions set forth at 13', 34085:'cfr 124.104c2; and 2 the management and daily business operations of which are controlled as defined at 13 cfr 124.106', 34086:'by individuals who meet the criteria in paragraphs 1i and ii of this definition. veteranowned small business concern means a', 34087:'small business concern 52.2175 52.2191 federal acquisition regulation 1 not less than 51 percent of which is owned by one', 34088:'or more veterans as defined at 38 u.s.c.1012 or, in thecase of any publicly owned business, not less than 51', 34089:'percent of the stock of which is owned by one or more veterans; and 2 the management and daily business', 34090:'operations of which are controlled by one or more veterans. womenowned small business concern means a small business concern 1', 34091:'that is atleast 51 percent owned by one or more women; or, inthe case of any publicly owned business, at', 34092:'least 51 percent of the stock of which is owned by one or more women; and 2 whose management and', 34093:'daily business operations are controlled by one or more women. womenowned small business wosb concern eligible under the wosb program', 34094:'in accordance with 13 cfr part 127 meansa small businessconcern that is atleast 51 percent directly and unconditionally owned by,', 34095:'and the managementand daily business operations of which are controlled by, one or more women who are citizens of the', 34096:'united states,and the concern is certified by sba or an approved thirdparty certifier in accordance with 13 cfr 127.300. b', 34097:'1 the north american industry classification system naics code for this acquisition is [insert naics code]. 2 the small business', 34098:'size standard is [insert size standard]. 3 the small businesssize standardfora concern that submits anoffer, other than ona construction or', 34099:'service acquisition, but proposes to furnish an end item that it did not itself manufacture, process, or produce i.e., nonmanufacturer,', 34100:'is 500 employees, or 150 employees for information technology valueadded resellers under naics code 541519, if the acquisition— i is', 34101:'set aside for small business and has a value above the simplified acquisition threshold; iiuses the hubzoneprice evaluation preference regardlessof', 34102:'dollar value, unless the offeror waives the price evaluation preference; or iii is an 8a, hubzone, servicedisabled veteranowned, economically disadvantaged', 34103:'womenowned, or women owned small business setaside or solesource award regardless of dollar value. c representations. 1 the offeror represents', 34104:'aspart of its offerthat— i it □ is, □ is not a small business concern; or ii it □ is,', 34105:'□ is not a small business joint venture that complies with the requirements of 13 cfr 121.103h and 13 cfr', 34106:'125.8a and b. [ the offeror shall enter the name and unique entity identifier of each party to the joint', 34107:'venture: .] 2 [complete only if the offeror represented itself as a small business concern in paragraph c1 of this', 34108:'provision.] the offeror represents that it □ is, □ is not, a small disadvantaged business concern as defined in 13', 34109:'cfr 124.1001. 3 [complete only if the offeror represented itself as a small business concern in paragraph c1 of this', 34110:'provision.] the offeror represents as part of its offerthat it □ is, □ is not a womenowned small business concern.', 34111:'4 womenowned small business wosb joint venture eligible under the wosb program. the offeror represents as part ofits offer that', 34112:'it □ is, □ is not a joint venture that complies with the requirements of 13 cfr 127.506a through c.', 34113:'[ the offeror shall enter the name and unique entity identifier of each party to the joint venture: .] 5', 34114:'economically disadvantaged womenowned small business edwosb joint venture. the offeror representsas part of its offer thatit □ is, □ is', 34115:'not a joint venture that complies with the requirements of 13 cfr 127.506a through c. [ the offeror shall enter', 34116:'the name and unique entity identifier of each party to the joint venture: .] 6 veteranowned small business concern. [complete', 34117:'only if the offeror represented itself as a small business concern in paragraph c1 of this provision.] the offeror represents', 34118:'as partof its offer that it □ is, □ is not a veteranowned small business concern. 7 sdvosb concern. [complete', 34119:'only if the offeror represented itself as a veteranowned small business concern in paragraph c6 of this provision.] the offeror', 34120:'representsas part of its offer that it □ is, □ is not an sdvosb concern. 8 sdvosb joint venture eligible', 34121:'under the sdvosb program. [complete only if the offeror represented itself as a sdvosb concern in paragraph c7 of this', 34122:'provision]. theofferor represents aspart of itsoffer that it □ is, □ is not a sdvosb joint venture eligible under the', 34123:'sdvosb program that complies with the requirements of 13 cfr 128.402. [ the offeror shall enter the name and unique', 34124:'entity identifier of each party to the joint venture:.] 9 hubzone small business concern. [complete only if the offeror represented', 34125:'itself as a small business concern in paragraph c1 of this provision.] the offeror represents, aspart of itsoffer, that— i', 34126:'it □ is, □ is not a hubzone small business concern listed, on the date of this representation, as having', 34127:'been certified by sba as a hubzone small business concern in the dynamic small business search and sam, and will', 34128:'attempt to maintain an employment rate of hubzone residents of 35 percent of its employees during performance of a hubzone', 34129:'contract see 13 cfr 126.200e1; and 52.2176 subpart 52.2 text of provisions and clauses 52.2191 ii it □ is, □', 34130:'is not a hubzone joint venture that complies with the requirements of 13 cfr 126.616a through c. [ the offeror', 34131:'shall enter the name and unique entity identifier of each party to the joint venture: .] each hubzone small business', 34132:'concern participating in the hubzone joint venture shall provide representation of its hubzone status. d notice. under 15 u.s.c. 645d,', 34133:'any person whomisrepresents a firm’s status as a business concern that is small, hubzone small, small disadvantaged, servicedisabled veteranowned small,', 34134:'economically disadvantaged womenowned small, or womenowned small eligible under the wosb program in order to obtain a contract to be', 34135:'awarded under the preference programs established pursuant to section 8, 9, 15, 31, and 36 of the small business act', 34136:'or any other provision of federallawthat specifically references section 8d for a definition of program eligibility, shall 1 be punished', 34137:'by imposition of fine, imprisonment, or both; 2 be subject to administrative remedies, including suspension and debarment; and 3 be', 34138:'ineligible for participation in programs conducted under the authority of the act. end of provision alternate i feb 2024. as', 34139:'prescribed in 19.309a2 add the following paragraph c10 to the basic provision: 10 [complete if offeror represented itself as disadvantaged', 34140:'in paragraph c2 of this provision.] the offeror shall check the category in which its ownership falls: □ black american.', 34141:'□ hispanic american. □ native american american indians, eskimos, aleuts, or native hawaiians. □ asianpacific american persons with origins from', 34142:'burma, thailand, malaysia, indonesia, singapore, brunei, japan, china,taiwan, laos,cambodiakampuchea, vietnam,korea, the philippines, republicof palau, republic of themarshall islands, federated states', 34143:'of micronesia, the commonwealth of the northern mariana islands, guam, samoa, macao, hong kong, fiji, tonga, kiribati, tuvalu, or nauru.', 34144:'□ subcontinent asian asianindian american persons with origins from india, pakistan, bangladesh, sri lanka, bhutan, the maldives islands, or nepal.', 34145:'□ individual/concern, other than one of the preceding. alternate ii mar 2023. as prescribed in 19.309 a3, substitute the following', 34146:'paragraphs b and c1 for paragraphs b and c1 of the basic provision: b1 the north american industry classification system', 34147:'naics codes and corresponding size standards for this acquisition are as follows; the categories or portions these naics codes are', 34148:'assigned to are specified elsewhere in the solicitation: naics code size standard [contracting officer to insert naics codes and size', 34149:'standards]. 2 the small businesssize standardfora concern that submits anoffer, other than ona construction or service acquisition, but proposes to', 34150:'furnish an end item that it did not itself manufacture, process, or produce i.e., nonmanufacturer, is 500 employees, or 150', 34151:'employees for information technology valueadded resellers under naics code 541519, if the acquisition— i is set aside for small business', 34152:'and has a value above the simplified acquisition threshold; iiuses the hubzoneprice evaluation preference regardlessof dollar value, unless the offeror', 34153:'waives the price evaluation preference; or iii is an 8a, hubzone, servicedisabled veteranowned, economically disadvantaged womenowned, or women owned small', 34154:'business setaside or solesource award regardless of dollar value. c representations. 1 theofferor shall representits small business size status for', 34155:'each one of the naicscodes assigned to this acquisition under which it issubmittingan offer. 52.2177 52.2192 federal acquisition regulation naics', 34156:'code small business concern yes/no [contracting officer to insert naics codes.] 52.2192 equal low bids. as prescribed in 19.309b, insert', 34157:'the following provision: equal low bidsoct 1995 a this provision applies to small business concerns only. b the bidder’sstatus as', 34158:'a labor surplus area lsa concern may affectentitlementto award in case of tie bids. if the bidder wishes to be', 34159:'considered for this priority, the bidder must identify, inthe following space, the lsa in which the coststo be incurred on', 34160:'account of manufacturing or production by the bidder or the firsttier subcontractors amount to more than 50 percent of the', 34161:'contract price. c failure to identify the labor surplus areas as specified in paragraph b of this provision will preclude', 34162:'the bidder from receiving priority consideration. if the bidder is awarded a contract as a result of receiving priority consideration', 34163:'under this provision and would not have otherwise received award, the bidder shall perform the contract or cause the contract', 34164:'to be performed in accordance with the obligations of an lsa concern. end of provision 52.2193notice of hubzone setaside or', 34165:'solesource award. as prescribed in 19.1309a, insert the following clause: notice of hubzone setaside or solesource award oct 2022 a', 34166:'definitions. hubzone small business concern, as used in this clause, means a small business concern, certified by the small business', 34167:'administration sba, that appears on the list of qualified hubzone small business concerns maintained by the sba 13 cfr 126.103.', 34168:'b applicability. this clause applies only to 1 contracts that have been set aside or awarded on a solesource basis', 34169:'to, hubzone small business concerns; 2 part or parts of a multipleaward contract that have been set aside for hubzone', 34170:'small business concerns; 3 orders set aside for hubzone small business concerns under multipleaward contracts as described in 8.4055 and', 34171:'16.505b2if; and 4 orders issued directly to hubzone small business concerns under multipleaward contracts as described in 19.504c1ii. c general.', 34172:'1 offers are solicited only from hubzonesmallbusiness concerns. offers received from concernsthat are not hubzone small business concerns will not', 34173:'be considered. 2 any award resulting from this solicitation will be made to a hubzone small business concern. d joint', 34174:'venture. a joint venture may be considered a hubzone concern if— 1 at least one party to the joint venture', 34175:'is a hubzone small business concern and complies with 13 cfr 126.616c; and 2 each party to the joint venture', 34176:'qualifies as small under the size standard for the solicitation, or the protégé is small under the size standard for', 34177:'the solicitation in a joint venture comprised of a mentor and protégé with an approved mentor protégé agreement under the', 34178:'sba mentorprotégé program. 52.2178 subpart 52.2 text of provisions and clauses 52.2196 e a hubzone joint venture agrees that, in', 34179:'the performance of the contract, at least 40 percent of the aggregate work performed by the joint venture shall be', 34180:'completed by the hubzone small business partiesto thejoint venture. work performed by the hubzone small business party or parties to', 34181:'the joint venture must be more than administrative functions. end of clause 52.2194notice of priceevaluation preference forhubzone smallbusiness concerns. as', 34182:'prescribed in 19.1309b, insert the following clause: notice of price evaluation preference for hubzone small business concerns oct 2022 a', 34183:'evaluation preference. 1offerswillbeevaluatedbyaddingafactorof10percenttothepriceofalloffers,except ioffersfrom hubzone small business concerns thathavenot waived theevaluation preference; and iiotherwisesuccessfuloffers from small business concerns. 2 the', 34184:'factor of 10 percent shall be applied on a line item basis or to any group of items on which', 34185:'award may be made. otherevaluation factors described in the solicitation shall be applied beforeapplication of the factor. 3 when the', 34186:'two highest ratedofferorsare a hubzone smallbusinessconcern and a large business, and the evaluated offer ofthe hubzone small business concern isequal', 34187:'to the evaluated offerof the large business after considering the price evaluation preference, award will be made to the hubzone', 34188:'small business concern. b waiver of evaluation preference. a hubzone small business concern may elect to waive the evaluation preference,', 34189:'in which case the factor will beadded to its offer for evaluation purposes. □ offeror electsto waive the evaluation preference.', 34190:'c joint venture. a hubzone joint venture agrees that, in the performance of the contract, at least 40 percent of', 34191:'the aggregate work performed by the joint venture shall be completed by the hubzone small business parties to the joint', 34192:'venture. work performed by thehubzone small businessparties to the joint venture must be more than administrative functions. end of clause', 34193:'52.2195 [reserved] 52.2196notice of total small business setaside. as prescribed in 19.507c, insert the following clause: notice of total small', 34194:'business setaside nov 2020 a definition. small business concern, as used in this clause— 1 means a concern, including itsaffiliates,', 34195:'that is independently owned and operated, not dominant inthe field of operation in which it is bidding on government contracts,', 34196:'and qualified as a small business under the size standards in this solicitation. 2 affiliates, as used in paragraph a1', 34197:'of this clause, means business concerns, one of whom directly or indirectly controls or has the power to control the', 34198:'others, or a third party or parties control or have the power to control the others. in determining whether affiliation', 34199:'exists, consideration is givento all appropriate factors including common ownership, common management, and contractual relationships. sba determines affiliation basedon the', 34200:'factorsset forthat 13cfr 121.103. b applicability. this clause applies only to 1 contracts that have been totally set aside for', 34201:'small business concerns; and 2 orders set aside for small business concerns under multipleaward contracts as described in 8.4055 and', 34202:'16.505b 2if. 52.2179 52.2197 federal acquisition regulation c general. 1 offersare solicited onlyfrom small businessconcerns. offers received fromconcerns that are', 34203:'notsmall business concerns shall be considered nonresponsive and will be rejected. 2 any award resulting from this solicitation will be', 34204:'made to a small business concern. end of clause alternate i mar 2020 . as prescribed in 19.507c, substitute the', 34205:'following paragraph c for paragraph c of the basic clause: c general.1 offers aresolicited only from small business concerns and', 34206:'federal prison industries, inc. fpi. offers received from concerns that are not small business concerns or fpi shall be considered', 34207:'nonresponsive and will be rejected. 2 any award resulting from this solicitation will be made to either a small business', 34208:'concern or fpi. 52.2197 notice of partial small business setaside. as prescribed in 19.507d, insert the following clause: notice of', 34209:'partial small business setaside nov 2020 a definition. small business concern, as used in this clause— 1 means a concern,', 34210:'including itsaffiliates, that is independently owned and operated, not dominant inthe field of operation in which it is bidding on', 34211:'government contracts, and qualified as a small business under the size standards in this solicitation. 2 affiliates, as used in', 34212:'paragraph a1 of this clause, means business concerns, one of whom directly or indirectly controls or has the power to', 34213:'control the others, or a third party or parties control or have the power to control the others. in determining', 34214:'whether affiliation exists, consideration is givento all appropriate factors including common ownership, common management, and contractual relationships. sba determines affiliation', 34215:'basedon the factorsset forthat 13cfr 121.103. b applicability. this clause applies only to contracts that have been partially set aside', 34216:'for small business concerns. c general. 1 a portion of this requirement, identified elsewhere in this solicitation, has been set', 34217:'aside for award to one or more small business concerns identified in 19.000a3. offers received fromconcerns that do not qualify', 34218:'as small business concerns shall be considered nonresponsive and shall be rejected on the setaside portion of the requirement. 2', 34219:'small business concerns may submitoffers and compete for thenonsetaside portion and the setaside portion. d the offeror shall— [contracting officer', 34220:'check as appropriate.] □ submit a separate offer for each portion of the solicitation for which it wants to compete', 34221:'i.e. setaside portion, nonsetaside portion, or both; or □ submit one offer toinclude all portions for which it wantsto compete.', 34222:'e partial setasides of multipleaward contracts. 1 small business concerns will not compete against other than small business concerns for', 34223:'any order issued under the part or parts of the multipleaward contract that are set aside. 2 small business concerns', 34224:'may compete for orders issued under the part or parts of the multipleaward contract that are not set aside, if', 34225:'the small business concern received a contract award for the nonsetaside portion. end of clause alternate i mar 2020 .', 34226:'as prescribed in 19.507d, add the following paragraph f to the basic clause: f notwithstanding paragraph c of this clause,', 34227:'offersfrom federal prisonindustries,inc., will be solicited and considered for both the setaside and nonsetaside portion of this requirement. 52.2198 utilization', 34228:'of small business concerns. as prescribed in 19.708a, insert the following clause: utilization of small business concerns feb 2024 a', 34229:'definitions. as used in this contract— 52.2180 subpart 52.2 text of provisions and clauses 52.2198 hubzone small business concern means', 34230:'a small business concern that meets the requirements described in 13 cfr 126.200, certified by the small business administration sba', 34231:'and designated by sba as a hubzone small business concern in the dynamic small business search dsbs and sam. servicedisabled', 34232:'veteranowned small business sdvosb concern means a small business concern— 1 inotlessthan51percentofwhichisownedandcontrolledbyoneormoreservicedisabledveteransor,inthe case of any publicly owned business, not less', 34233:'than 51 percent of the stock of which is owned by one or more servicedisabled veterans; and ii the management', 34234:'and daily business operations of which are controlled by one or more servicedisabled veterans or, in the case of a', 34235:'servicedisabledveteran with permanent and severe disability, the spouse or permanent caregiver of such veteran; or 2 a small business concern', 34236:'eligible under the sdvosb program in accordance with 13 cfr part 128 see subpart 19.14. 3 servicedisabled veteran, as used', 34237:'in this definition, means a veteran, as defined in 38 u.s.c.1012, with a disability that is serviceconnected, as defined in', 34238:'38 u.s.c.10116, and who is registered in the beneficiary identification and records locator subsystem, orsuccessorsystemthat ismaintained by the departmentof veterans', 34239:'affairs’ veterans benefits administration, as a servicedisabled veteran. servicedisabled veteranowned small business sdvosb concern eligible under the sdvosb program means', 34240:'an sdvosb concern that— 1 effective january 1,2024, is designated inthe system for award management sam ascertifiedby the small business', 34241:'administration sba in accordance with 13 cfr 128.300; or 2 has represented that it is an sdvosb concern in sam', 34242:'and submitted a complete application for certification to sba on or before december 31, 2023. servicedisabled veteranowned small business sdvosb', 34243:'program means a program that authorizes contracting officers to limit competition, including award on a solesource basis, to sdvosb concerns', 34244:'eligible under the sdvosb program. small business concern means a concern, including its affiliates, thatis independently owned and operated, not', 34245:'dominant in its field of operation and qualified as a small business under the criteria and size standards in 13', 34246:'cfr part 121, including the size standard that corresponds to the naics code assigned to the contrac t or subcontract.', 34247:'small disadvantaged business concern, consistent with 13 cfr 124.1001, means a small business concern under the size standard applicable to', 34248:'the acquisition, that 1 is at least 51 percent of which is owned and controlled as defined at 13 cfr', 34249:'124.105 by i one or more socially disadvantaged as defined at 13 cfr 124.103 and economically disadvantaged as defined at', 34250:'13 cfr 124.104 individuals who are citizens of the united states; and ii each individual claiming economic disadvantage has a', 34251:'net worth not exceeding the threshold at 13 cfr 124.104c2 after taking into account the applicable exclusions set forth at', 34252:'13 cfr 124.104c2; and 2 the management and daily business operations of which are controlled as defined at 13.cfr 124.106', 34253:'by individuals, who meet the criteria in paragraphs 1i and ii of this definition. veteranowned small business concern means a', 34254:'small business concern 1 not less than 51 percent of which is owned by one or more veterans as defined', 34255:'at 38 u.s.c.1012 or, in thecase of any publicly owned business, not less than 51 percent of the stock of', 34256:'which is owned by one or more veterans; and 2 the management and daily business operations of which are controlled', 34257:'by one or more veterans. womenowned small business concern means a small business concern 1 that is atleast 51 percent', 34258:'owned by one or more women, or, in the case of any publicly owned business,at least 51 percent of the', 34259:'stock of which is owned by one or more women; and 2 whose management and daily business operations are controlled', 34260:'by one or more women. b it is the policy of the united states that small business concerns, veteranowned small', 34261:'business concerns, service disabled veteranowned small business concerns, hubzone small business concerns, small disadvantaged business concerns, and womenowned small business', 34262:'concerns shall have the maximum practicable opportunity to participate in performing contracts let by anyfederal agency, including contractsand subcontracts for', 34263:'subsystems, assemblies, components, and related services for major systems. it is further the policy of the united states that its', 34264:'prime contractors establish procedures to ensure the timely payment of amounts due pursuant to the terms of their subcontracts with', 34265:'small business concerns, veteranowned small business concerns, servicedisabled veteranowned small business concerns, hubzone small business concerns, small disadvantaged business concerns,', 34266:'and womenowned small business concerns. c 1 a joint venture qualifies as a small business concern if— 52.2181 52.2199 federal', 34267:'acquisition regulation i each party to the joint venture qualifies as small under the size standard for the solicitation; or', 34268:'ii the protégé is small under the size standard for the solicitation in a joint venture comprised of a mentor', 34269:'and protégé with an approved mentorprotégé agreement under a sba mentorprotégé program. see 13 cfr 125.9d.”; and 2 a joint', 34270:'venture qualifies as a hubzone small business concern if it complies with the requirements in 13 cfr 126.616a through c.', 34271:'d the contractor hereby agrees to carry out this policy in the awarding of subcontracts to the fullest extent consistent', 34272:'with efficient contract performance. the contractor further agreesto cooperate in any studies or surveys as may beconducted by the united', 34273:'states small business administration or the awarding agency of the united states as may be necessary to determine the extent', 34274:'of the contractors compliance with this clause. e 1 the contractor may accept a subcontractors written representations of its size', 34275:'and socioeconomic status as a small business, small disadvantaged business, veteranowned small business, servicedisabled veteranowned small business, or a womenowned', 34276:'small business if the subcontractor represents that the size and socioeconomic status representations with its offer are current, accurate, and', 34277:'complete as of the date of the offer for thesubcontract. 2 the contractor may accept a subcontractors representations of its', 34278:'size and socioeconomic status as a small business, small disadvantaged business, veteranowned small business, servicedisabled veteranowned small business, or a', 34279:'womenowned small business in the system for award managementsam if– i the subcontractor is registered in sam; and ii the', 34280:'subcontractor represents that the size and socioeconomic status representations made in sam are current, accurate and complete as of the', 34281:'date ofthe offer for the subcontract. 3 the contractor may not require the use of sam for the purposes of', 34282:'representing size or socioeconomic status in connection with a subcontract. 4 in accordance with 13 cfr121.411, 126.900,127.700, and 128.600,a contractoracting', 34283:'in good faith isnot liable for misrepresentations made by its subcontractors regarding the subcontractors size or socioeconomic status. 5 the', 34284:'contractor shall confirm that a subcontractor representing itself as a hubzone small business concern is certified by sba as a', 34285:'hubzone small business concern by accessing sam or by accessing dsbs at https://web.sba.gov/ pronet/search/dspdsbs.cfm. if the subcontractor is a joint', 34286:'venture, the contractor shall confirm that at least one party to the joint venture is certified by sba as a', 34287:'hubzone small business concern. the contractor may confirm the representation by accessing sam. end of clause 52.2199 small business subcontracting', 34288:'plan. as prescribed in 19.708b, insert the following clause: small business subcontracting plan sep 2023 a this clause does not', 34289:'apply to small business concerns. b definitions. as used in this clause— alaska native corporation anc meansanyregional corporation, village corporation,', 34290:'urban corporation, or group corporation organized under the laws ofthe state ofalaskain accordance with thealaskanative claims settlement act, as amended', 34291:'43 u.s.c. 1601, et seq. and which is considered a minority and economically disadvantaged concern under the criteria at 43', 34292:'u.s.c. 1626e1. this definition also includes anc direct and indirect subsidiary corporations, joint ventures, and partnerships that meet the requirements', 34293:'of 43 u.s.c. 1626e2. commercial plan means asubcontractingplan including goals that covers the offeror’s fiscal year and that applies to', 34294:'the entire production of commercial products and commercial services sold by either the entire company or a portion thereof e.g.,', 34295:'division, plant, or product line. commercial product means a product that satisfies the definition of “commercial product” in federal acquisition', 34296:'regulation far 2.101. commercial service means a servicethat satisfies thedefinition of “commercial service” in far 2.101. electronic subcontracting reporting system', 34297:'esrs means the governmentwide, electronic, webbased system for small business subcontracting program reporting. the esrs is located at http://www.esrs.gov. indian', 34298:'tribe means any indiantribe, band, group, pueblo, or community,including native villages and native groups including corporations organized by kenai, juneau,', 34299:'sitka, and kodiak as definedin the alaska native claims settlement 52.2182 subpart 52.2 text of provisions and clauses 52.2199 act', 34300:'43 u.s.c. 1601 et seq., that is recognized by the federal government as eligible for services from the bureau of', 34301:'indian affairs in accordance with 25 u.s.c. 1452c. this definition also includes indianowned economic enterprises that meet the requirements of', 34302:'25 u.s.c. 1452e. individual subcontracting plan means a subcontracting plan that covers the entire contract period including option periods, applies', 34303:'to aspecific contract, and has goals that are based on the offerors planned subcontracting in support of the specific contract,', 34304:'except that indirect costs incurred for common or joint purposes may be allocated on a prorated basis to the contract.', 34305:'master subcontracting plan means a subcontracting plan that contains all the required elements of an individual subcontracting plan, except goals,', 34306:'and may be incorporated into individual subcontracting plans, provided the master subcontracting plan has been approved. reduced payment means a', 34307:'payment that is for less than the amount agreed upon in a subcontract in accordance with its terms and conditions,forsupplies', 34308:'and services for whichthe government has paid the prime contractor. subcontract means any agreement other than one involving an employeremployee', 34309:'relationship entered into by a federal government prime contractor or subcontractor calling for supplies or services required for performance of', 34310:'the contract or subcontract. total contract dollars means the final anticipated dollar value, including the dollar value of all options.', 34311:'untimely payment means a payment to a subcontractor that is more than 90 days past due under the terms and', 34312:'conditions of a subcontract for supplies andservices for which the government has paid the prime contractor. c 1theofferor,uponrequestbythe contracting officer,', 34313:'shall submit and negotiate a subcontracting plan, where applicable, that separately addresses subcontracting with small business, veteranowned small business, servicedisabled', 34314:'veteranowned small business, hubzone small business, small disadvantaged business, and womenowned small business concerns. if theofferoris submitting an individual subcontracting', 34315:'plan, the plan must separately address subcontracting with small business, veteranowned small business, servicedisabled veteranowned small business, hubzone small business,', 34316:'small disadvantaged business, and womenowned small business concerns, with a separate part for the basic contract and separate parts for', 34317:'each option if any. the subcontracting plan shall be included in and made a part of the resultant contract. the', 34318:'subcontracting planshallbe negotiated within thetime specified bythe contracting officer. failure to submitand negotiate the subcontracting planshallmake the offeror ineligible for', 34319:'awardof acontract. 2 i the contractor may accept a subcontractors written representations of its size and socioeconomic status as a', 34320:'small business, small disadvantaged business, veteranowned small business, servicedisabled veteranowned small business, or a womenowned small business if the subcontractor', 34321:'represents that the size and socioeconomic status representations with itsoffer are current,accurate, and complete as ofthe dateof the offer for', 34322:'the subcontract. ii the contractor may accept a subcontractors representations of its size and socioeconomic status as a small business,', 34323:'small disadvantaged business, veteranowned small business, servicedisabled veteranowned small business, or a womenowned small business in the system for award', 34324:'managementsam if– a the subcontractor is registered in sam; and b the subcontractor represents that the size and socioeconomic status', 34325:'representations made in sam are current, accurate and complete as of the date ofthe offer for the subcontract. iii the', 34326:'contractor may not require the use of sam for the purposes of representing size or socioeconomic status in connection with', 34327:'a subcontract. iv in accordancewith 13cfr 121.411, 126.900,127.700, and 128.600, a contractor acting in good faith isnot liable for misrepresentations', 34328:'made by its subcontractors regarding the subcontractors size or socioeconomic status. d the offeror’s subcontracting plan shall include thefollowing: 1', 34329:'separate goals, expressed in terms of total dollars subcontracted, and as a percentage of total planned subcontracting dollars, for the', 34330:'use of small business, veteranowned small business, servicedisabled veteranowned small business, hubzone small business, small disadvantaged business, and womenowned small', 34331:'business concerns as subcontractors. for individual subcontracting plans,andif requiredby the contracting officer, goals shall also be expressed in termsof percentage', 34332:'oftotal contract dollars, in additionto the goals expressed asa percentageof totalsubcontract dollars. theofferor shall include all subcontracts that contribute to', 34333:'contract performance, and may include a proportionate share of products and services that are normally allocated as indirect costs. in', 34334:'accordance with 43 u.s.c. 1626: i subcontracts awarded to an anc or indian tribe shall be counted towards the subcontracting', 34335:'goals for small business and small disadvantaged business concerns, regardless of the size or small business administration certification status of', 34336:'the anc or indian tribe; and 52.2183 52.2199 federal acquisition regulation ii where one or more subcontractors are in the', 34337:'subcontract tier between the prime contractor and the anc or indian tribe, the anc or indian tribe shall designate the', 34338:'appropriate contractors to count the subcontract towards its small business and small disadvantaged business subcontracting goals. a in most cases,', 34339:'the appropriate contractor is the contractor that awarded the subcontract to the anc or indian tribe. b if the anc', 34340:'or indian tribe designates more than one contractor to count the subcontract toward its goals, the anc or indiantribe shall', 34341:'designate only a portion of the totalsubcontract award to each contractor. thesum ofthe amounts designated to various contractors cannot exceed', 34342:'the total value of the subcontract. c the anc or indian tribe shall give a copy of the written designation', 34343:'to the contractingofficer, the prime contractor, andthe subcontractors in between the prime contractorandthe anc or indiantribe within30 days of the', 34344:'date of the subcontract award. dif the contracting officer does not receive a copy of the anc’s or the indiantribe’s', 34345:'written designation within 30 days of the subcontract award, the contractor that awarded the subcontract to the anc or indian', 34346:'tribe will be consideredthe designated contractor. 2 a statement of– itotal dollarsplanned tobe subcontracted for anindividual subcontracting plan; orthe offerorstotal', 34347:'projected sales, expressed in dollars, and the total value of projected subcontracts, including all indirect costs except as described in', 34348:'paragraph g of this clause, to support the sales for a commercial plan; iitotal dollars planned to be subcontracted to', 34349:'small business concerns including ancandindian tribes; iii total dollars planned to be subcontracted to veteranownedsmallbusiness concerns; iv total dollars planned', 34350:'to be subcontracted to servicedisabled veteranowned small business; v total dollars plannedto besubcontracted to hubzone small business concerns; vi total', 34351:'dollars planned to be subcontracted to smalldisadvantagedbusiness concerns includingancsand indian tribes; and vii total dollars planned to be subcontracted towomenowned', 34352:'small businessconcerns. 3 a description of the principal types of supplies and services to be subcontracted, and an identification of', 34353:'the types planned for subcontracting to i small business concerns; iiveteranownedsmallbusiness concerns; iii servicedisabled veteranowned small business concerns; iv hubzone', 34354:'small business concerns; v small disadvantaged business concerns; and vi womenowned small business concerns. 4 a description of the method', 34355:'used to develop the subcontracting goals in paragraph d1 of this clause. 5 a description of the method used to', 34356:'identify potential sources for solicitation purposes e.g., existing company source lists, sam, veterans service organizations,the nationalminority purchasing council vendor information', 34357:'service, the research and information division of the minority business development agency in the department of commerce, or small, hubzone,', 34358:'small disadvantaged, and womenowned small business trade associations. a firm may rely on the information contained in sam as an', 34359:'accurate representation of a concerns size and ownership characteristics for the purposes of maintaining a small, veteranowned small, servicedisabled veteranowned', 34360:'small, hubzone small, small disadvantaged, and womenowned small business source list. use of sam as its source list does not', 34361:'relieve a firm of its responsibilities e.g., outreach, assistance, counseling, or publicizing subcontracting opportunities in this clause. 6 a statement', 34362:'as towhetheror not theofferorincluded indirect costs in establishingsubcontractinggoals, and a description of the method used to determine the proportionate share', 34363:'of indirect costs to be incurred with– i small business concerns including anc and indian tribes; iiveteranownedsmallbusiness concerns; iii servicedisabled', 34364:'veteranowned small business concerns; iv hubzone small business concerns; v small disadvantaged business concerns including anc and indian tribes; and', 34365:'vi womenowned small business concerns. 7 the name of the individualemployed by the offerorwho will administer the offerors subcontracting program,', 34366:'and a description of the duties of the individual. 52.2184 subpart 52.2 text of provisions and clauses 52.2199 8 a', 34367:'description of theefforts the offeror will make to assure that small business, veteranowned small business, servicedisabled veteranowned small business, hubzone', 34368:'small business, small disadvantaged business, and womenowned small business concerns have an equitable opportunity to compete for subcontracts. 9 assurances', 34369:'that the offeror willinclude the clause of this contract entitled utilization of small business concerns in allsubcontractsthat offer further subcontracting', 34370:'opportunities, and thatthe offeror will require all subcontractors except small business concerns that receive subcontracts in excess of the applicablethreshold', 34371:'specifiedin far 19.702a on the date of subcontract award, with further subcontracting possibilities to adopt a subcontracting plan that complies', 34372:'with the requirements of this clause. 10 assurances that the offeror will– i cooperate in any studies or surveys as', 34373:'may be required; iisubmit periodicreports sothat the government can determine the extent ofcompliance by the offeror withthe subcontracting plan; iii', 34374:'after november 30, 2017, include subcontracting data for each order when reporting subcontracting achievements for indefinitedelivery,indefinitequantity contracts with individual subcontracting', 34375:'plans where the contractis intended for use by multiple agencies; iv submit the individual subcontract report isr and/or the summary', 34376:'subcontract report ssr, in accordance with paragraph l of this clause using the electronic subcontracting reporting system esrs at http://www.esrs.gov.', 34377:'the reports shall provide information on subcontract awards to small business concerns including ancs and indian tribes that are not', 34378:'small businesses, veteranowned small business concerns, servicedisabled veteranowned small business concerns, hubzone small business concerns, small disadvantaged business concerns including', 34379:'ancs and indian tribes that have not been certified by the small business administration as small disadvantaged businesses, womenowned small', 34380:'business concerns, and for nasa only, historicallyblackcollegesand universities and minority institutions. reporting shall be in accordance with this clause, or', 34381:'as provided in agency regulations; v ensure that its subcontractors with subcontracting plans agree to submit the isr and/or the', 34382:'ssr using esrs; vi provide itsprimecontract number, itsunique entity identifier, and the emailaddress of the offeror’s official responsible for acknowledging', 34383:'receipt of or rejecting the isrs, to all firsttier subcontractors with subcontracting plans so they can enter this information into', 34384:'the esrs when submitting their isrs; and vii requirethat each subcontractor with a subcontracting plan provide the prime contract number,its', 34385:'own unique entity identifier, and the email address ofthe subcontractor’s official responsible for acknowledging receipt of orrejecting the isrs, to', 34386:'its subcontractors with subcontracting plans. 11 a description of the types of records thatwill be maintained concerningprocedures that have been', 34387:'adopted to comply withthe requirements andgoals in the plan, includingestablishing source lists; and a description of theofferor’s efforts to locate', 34388:'small business, veteranowned small business, servicedisabled veteranownedsmall business,hubzone small business, small disadvantaged business, and womenowned small business concerns and award', 34389:'subcontracts to them. the records shall include at least the following on a plantwide or companywide basis, unless otherwise indicated:', 34390:'i source lists e.g., sam, guides, and other data that identify small business, veteranowned small business, servicedisabled veteranowned small business,', 34391:'hubzone small business, small disadvantaged business, and womenowned small business concerns. iiorganizations contactedin anattempt tolocate sourcesthat aresmallbusiness,veteranowned small business, servicedisabled', 34392:'veteranowned small business, hubzone small business, small disadvantaged business, or womenowned small business concerns. iii records on each subcontract solicitation', 34393:'resulting in an award of more than the simplified acquisition threshold, as defined in far 2.101 on the date of', 34394:'subcontract award, indicating a whether small business concerns were solicited and, if not, why not; b whether veteranowned small business', 34395:'concerns were solicited and, if not, why not; c whether servicedisabled veteranowned small business concerns were solicited and, if not,', 34396:'why not; d whether hubzone small business concerns were solicited and, if not, why not; e whether small disadvantaged business', 34397:'concerns were solicited and, if not, why not; f whether womenowned small business concerns were solicited and, if not, why', 34398:'not; and g if applicable, the reason award was not made to a small business concern. iv records of any', 34399:'outreachefforts to contact atradeassociations; b business development organizations; 52.2185 52.2199 federal acquisition regulation c conferences and trade fairs to locate', 34400:'small, hubzone small, small disadvantaged, servicedisabled veteran owned, and womenowned small business sources; and dveterans serviceorganizations. v records of internal', 34401:'guidance and encouragement provided to buyers through aworkshops, seminars, training, etc. ; and b monitoring performance to evaluate compliance withthe', 34402:'program’srequirements. vi on acontractbycontract basis, records to support award data submittedby the offeror to the government, including the name, address,', 34403:'and business sizeof each subcontractor. contractorshaving commercial plans need notcomply with this requirement. 12 assurances that the offeror will make', 34404:'a goodfaith effort to acquirearticles, equipment, supplies, services, or materials, or obtain the performance of construction work from the small', 34405:'business concerns that it used in preparing the bid or proposal, in the same or greater scope, amount, and quality', 34406:'used in preparing and submitting the bid or proposal. responding to a request for a quote doesnot constitute use inpreparinga', 34407:'bidor proposal. theofferorused a small business concern in preparing the bid or proposal if– ithe offeror identifies the small business', 34408:'concern asa subcontractor in the bidor proposalor associatedsmall business subcontracting plan, to furnish certain supplies or perform a portion of', 34409:'the subcontract; or iithe offeror used the small business concerns pricingor cost informationor technical expertise in preparing the bid or', 34410:'proposal, where there is written evidence of an intent or understanding that the small business concern will be awarded a', 34411:'subcontract for the related work if the offeror is awardedthe contract. 13 assurances that the contractor will provide the contractingofficer', 34412:'with a written explanationif the contractor fails to acquire articles, equipment, supplies, services or materials or obtain the performance of', 34413:'construction work as described ind12 ofthis clause. this written explanation mustbe submitted to the contracting officer within 30days of contract', 34414:'completion. 14 assurances that the contractor will not prohibit asubcontractorfrom discussing with the contracting officer any material matter pertaining to', 34415:'payment to or utilization of a subcontractor. 15 assurances that the offerorwill pay its small business subcontractors on time and', 34416:'in accordance with the termsand conditions of theunderlying subcontract, and notifythe contracting officer when the prime contractor makes either a', 34417:'reduced or an untimely payment to a small business subcontractor see 52.2425. e inorder to effectively implementthis plan to the', 34418:'extent consistent with efficient contract performance, the contractor shall perform the following functions: 1 assist small business, veteranowned small business,', 34419:'servicedisabled veteranowned small business, hubzone small business, small disadvantaged business, and womenowned small business concerns by arranging solicitations, time for', 34420:'the preparation of bids, quantities, specifications, and delivery schedules so as to facilitate the participation by such concerns. where the', 34421:'contractor’s lists of potential small business, veteranownedsmallbusiness,servicedisabled veteranowned small business, hubzone small business, small disadvantaged business, and womenowned small business', 34422:'subcontractors are excessivelylong, reasonable effort shall be made to giveallsuch small business concerns an opportunity to compete over a period', 34423:'of time. 2 provide adequate and timely consideration of the potentialities of small business, veteranowned small business, servicedisabled veteranowned small', 34424:'business, hubzone small business, small disadvantaged business, and womenowned small business concerns in all makeorbuy decisions. 3 counsel and discuss', 34425:'subcontracting opportunities with representatives of small business, veteranowned small business, servicedisabled veteranowned small business, hubzone small business, small disadvantaged business,', 34426:'and womenowned small business firms. 4 confirm that a subcontractor representing itself as a hubzone small business concern is certified', 34427:'by sba as a hubzone small business concern by accessing sam or by accessing the dynamic small business search dsbs', 34428:'at https:// web.sba.gov/pronet/search/dspdsbs.cfm. 5 provide notice to subcontractors concerning penalties and remedies for misrepresentations of business status as small, veteranowned', 34429:'small business, hubzone small, small disadvantaged, or womenowned small business for the purpose of obtaining a subcontract thatis tobe included', 34430:'aspart or all of a goal containedin the contractor’s subcontracting plan. 6 for allcompetitive subcontracts over thesimplified acquisition threshold,as defined', 34431:'in far 2.101 on the date of subcontract award, in which a small business concern received a small business preference,', 34432:'upon determination of the successful subcontract offeror, priorto award ofthe subcontract the contractor must inform eachunsuccessful small business subcontract offeror', 34433:'in writing of the name and location of the apparent successful offeror and ifthe successful subcontract 52.2186 subpart 52.2 text', 34434:'of provisions and clauses 52.2199 offeror is a small business, veteranowned small business, servicedisabled veteranownedsmall business,hubzone small business, small disadvantaged', 34435:'business, or womenowned small business concern. 7 assign each subcontract the naics code and corresponding size standard that best describes', 34436:'the principal purpose of the subcontract. f a master subcontracting plan on a plant or divisionwide basis that contains all', 34437:'the elements required by paragraph d of this clause, except goals, maybe incorporatedby reference as a part ofthe subcontracting plan', 34438:'required of the offeror by this clause; provided 1 the master subcontracting plan has been approved; 2 the offeror ensures', 34439:'thatthe master subcontracting plan is updated as necessary and provides copiesof the approved master subcontracting plan, including evidence of its', 34440:'approval, to the contracting officer; and 3 goals and any deviations from themaster subcontracting plan deemed necessaryby the contracting officer', 34441:'to satisfy the requirements of this contract are set forth in the individual subcontracting plan. g a commercial plan is', 34442:'the preferred type of subcontracting plan for contractors furnishing commercial products and commercial services. the commercial plan shall relate tothe', 34443:'offeror’s planned subcontracting generally, for bothcommercial and government business, rather than solely tothe government contract. once the contractor’s commercial plan', 34444:'has been approved, the government will not require another subcontracting plan from the same contractor while the plan remains in', 34445:'effect,as long as the productor service being provided by the contractorcontinuesto meetthe definitionof acommercial product or commercial service. a contractor', 34446:'with a commercial plan shall comply with the reporting requirements stated in paragraph d10 of this clause by submitting one', 34447:'ssr in esrs for all contracts covered by its commercial plan. a contractor authorized to use a commercial subcontracting plan', 34448:'shall include in its subcontracting goals and in its ssr all indirect costs, with the exception of those such as', 34449:'the following: employee salaries and benefits; payments for petty cash; depreciation; interest; income taxes; property taxes; lease payments; bank fees;', 34450:'fines, claims, and dues; original equipment manufacturer relationships during warranty periods negotiated up front with the product; utilities and other', 34451:'services purchased from a municipality or an entity solely authorized by the municipality to provide those services in a particular', 34452:'geographical region; and philanthropic contributions. this report shall be acknowledged or rejected in esrs by the contracting officerwho approved the', 34453:'plan. this report shall be submitted within 30 daysafter the end ofthe government’s fiscal year. h priorcompliance of the offeror', 34454:'with other suchsubcontractingplans underprevious contractswill be considered by the contracting officerin determining the responsibility of theofferor for award of the', 34455:'contract. i a contract may have no more than one subcontracting plan. when a contract modification exceeds the subcontracting plan', 34456:'threshold infar 19.702a, or an option is exercised, the goals of the existing subcontracting plan shall be amended to reflect', 34457:'any new subcontracting opportunities. when the goals in a subcontracting plan are amended, these goal changes do not apply retroactively.', 34458:'jsubcontracting plans are not required from subcontractors when the prime contract contains the clause at far 52.2125, contract termsandconditions required', 34459:'toimplement statutes orexecutive orderscommercial products and commercial services, or when the subcontractor provides a commercial product or commercial service subject', 34460:'to the clause at far 52.2446, subcontracts for commercial products and commercial services, under a prime contract. k the failure', 34461:'of the contractor or subcontractor to comply in good faith with 1 the clause of this contract entitled utilization of', 34462:'small business concerns; or 2 an approved plan required by this clause, shall be a material breach of the contract', 34463:'and may beconsidered in any past performance evaluation of the contractor. l the contractor shall submit isrs and ssrs using', 34464:'the webbased esrs at http://www.esrs.gov. purchases from a corporation,company, or subdivision that is an affiliateof the contractor or subcontractor are', 34465:'not includedin these reports. subcontractawards by affiliates shall be treated assubcontract awards by the contractor. subcontract award data reported by', 34466:'the contractor and subcontractors shall be limited to awards made to their immediate nexttier subcontractors. credit cannot be taken for', 34467:'awards made to lower tier subcontractors, unless the contractor or subcontractor has been designated to receive a small business or', 34468:'small disadvantaged business credit from an anc or indian tribe. only subcontracts involving performance in the united states or its', 34469:'outlying areas should be included in these reports with the exception of subcontracts under a contract awarded by the state', 34470:'department or any other agency that has statutory or regulatory authority to require subcontracting plans for subcontracts performed outside the', 34471:'united states and its outlying areas. 1 isr. this report is not required for commercial plans. the report is required', 34472:'for each contract containing an individual subcontracting plan. i the report shall be submitted semiannually during contract performance for the', 34473:'periods ending march 31 and september 30. a report is also required for each contract within 30 days of contract', 34474:'completion. reports are due 30 days 52.2187 52.2199 federal acquisition regulation after the close of each reporting period, unless otherwise', 34475:'directed by the contractingofficer. reports are required when due, regardless of whether there has been any subcontracting activity since the', 34476:'inception of the contract or the previous reporting period. when the contractingofficer rejects anisr, the contractor shall submit a corrected', 34477:'reportwithin 30 days of receiving the notice of isr rejection. ii a when a subcontracting plan contains separate goals for', 34478:'the basic contract and each option, as prescribed by far 19.704c, the dollar goal inserted on this report shall be', 34479:'the sum of the base period through the current option; for example, for a report submitted after the second option', 34480:'is exercised, the dollar goal would be the sum of the goals for the basic contract, the first option, and', 34481:'the second option. b if a subcontracting plan has been added to the contract pursuant to 19.702 a1iii or 19.3012e,', 34482:'the contractors achievements must be reported in the isr on a cumulative basis from the date of incorporation of the', 34483:'subcontracting plan into the contract. iii when a subcontracting plan includes indirect costs in the goals, these costs must be', 34484:'included in this report. iv the authority to acknowledge receipt or reject the isr resides– ain the case ofthe prime', 34485:'contractor, with the contractingofficer; and b in the case of a subcontract with a subcontracting plan, with the entity that', 34486:'awarded the subcontract. 2 ssr. i reports submitted under individual contract plans– athis report encompassesallsubcontractingunder prime contracts and subcontracts with', 34487:'anexecutive agency, regardless of the dollar value of the subcontracts. this report also includes indirect costs on a prorated basis', 34488:'when the indirect costs are excluded from the subcontracting goals. b the report may be submitted on a corporate, company', 34489:'or subdivision e.g. plant or division operating as a separateprofit center basis, unless otherwise directed by the agency. c if', 34490:'the contractoror asubcontractoris performing workformore thanone executive agency, a separatereport shall be submitted to each executive agency covering only that', 34491:'agencys contracts, provided at least one of that agencys contracts is overthe applicable thresholdspecified in far 19.702a, and the contractand', 34492:'contains a subcontracting plan. for dod, a consolidated report shall be submitted for all contracts awarded by military departments/agencies and/or', 34493:'subcontracts awarded by dod prime contractors. d the report shall be submitted annually by october 30 for the twelve month', 34494:'period ending september 30. when acontracting officer rejects an ssr, the contractorshallsubmit a revised report within 30 days of receiving', 34495:'the notice of ssr rejection. e subcontract awards that are related to work for more than one executive agency shall', 34496:'be appropriately allocated. f the authority to acknowledge or reject ssrs in esrs, including ssrs submitted by subcontractors with subcontracting', 34497:'plans, resides with the government agency awarding the prime contracts unless stated otherwise in the contract. ii reports submitted under', 34498:'a commercial plan athe reportshallinclude all subcontract awardsunder thecommercial plan in effectduring the governments fiscal year and all indirect costs.', 34499:'b the report shall be submitted annually, within thirty days after the endof the governments fiscal year. c if a', 34500:'contractor has a commercial plan and isperforming work for more than one executive agency, the contractor shall specify the percentage', 34501:'of dollarsattributable to each agency. dthe authority to acknowledge or reject ssrs for commercial plans resides with thecontracting officer who', 34502:'approved the commercial plan. end of clause alternate i nov 2016. as prescribed in 19.708b1i, substitute the following paragraph c1', 34503:'for paragraph c1 of the basic clause: c1the apparent low bidder, uponrequest by the contracting officer, shall submit a subcontracting', 34504:'plan, where applicable, that separately addresses subcontracting with small business, veteranowned small business, servicedisabled veteranowned small business, hubzone small business,', 34505:'small disadvantaged business, and womenowned small business concerns. if the bidder is submitting an individual subcontracting plan, the plan must', 34506:'separately address subcontracting with small business, veteranowned small business, servicedisabled veteranowned small business, hubzone small business, small disadvantaged business, and', 34507:'womenowned small business concerns, with a separate part for the basic 52.2188 subpart 52.2 text of provisions and clauses 52.2199', 34508:'contract and separate parts for each option if any. the plan shall be included in and made a part of', 34509:'the resultant contract. the subcontracting planshallbe submitted within the time specified by the contractingofficer. failure to submit the subcontracting plan', 34510:'shall make the bidder ineligible for the award of a contract alternate ii nov 2016. as prescribed in 19.708b1ii, substitute', 34511:'the following paragraph c1 for paragraph c1 of the basic clause: c1 proposals submitted in response to this solicitation shall', 34512:'include a subcontracting plan that separately addresses subcontracting with small business, veteranowned small business, servicedisabled veteranowned small business, hubzone small', 34513:'business, small disadvantaged business, and womenowned small business concerns. if the offeror is submitting an individual subcontracting plan, the plan', 34514:'must separately address subcontracting with small business, veteranowned small business, servicedisabled veteranowned small business, hubzone small business, small disadvantaged business,', 34515:'and womenowned small business concerns, with a separate part for the basic contract and separate parts for each option if', 34516:'any. the plan shall be included in and made a part of the resultant contract. the subcontracting plan shall be', 34517:'negotiated within thetime specifiedby the contracting officer. failureto submitand negotiatea subcontracting plan shall makethe offeror ineligible for award of a', 34518:'contract. alternate iii jun 2020. as prescribed in 19.708b1iii, substitute the following paragraphs d10 and l for paragraphs d10 and', 34519:'l in the basic clause: d10 assurances thatthe offeror will— i cooperate in any studies or surveys as may be', 34520:'required; iisubmit periodicreports sothat the government can determine the extent ofcompliance by the offeror withthe subcontracting plan; iii submit standard', 34521:'form sf 294 subcontracting report for individual contract in accordance with paragraph l of this clause. submit the summary subcontract', 34522:'report ssr, in accordance with paragraph l of this clause using the electronic subcontracting reporting system esrs at http://www.esrs.gov. the', 34523:'reports shall provide information on subcontract awards to small business concerns including ancs and indian tribes that are not small', 34524:'businesses, veteran owned small business concerns, servicedisabled veteranowned small business concerns, hubzone small business concerns, small disadvantaged business concerns including', 34525:'ancs and indian tribes that have not been certified by the small business administration as small disadvantaged businesses, womenowned small', 34526:'business concerns, and for nasa only, historically black colleges and universities and minority institutions. reporting shall be in accordance with', 34527:'this clause, or as provided in agency regulations; and iv ensure that its subcontractors with subcontracting plans agree to submit', 34528:'the sf 294 in accordance with paragraph l of this clause. ensure that its subcontractors with subcontracting plans agree to', 34529:'submit the ssr in accordance with paragraph l of this clause using the esrs. l the contractor shall submit a', 34530:'sf 294. the contractor shall submit ssrs using the webbased esrs at http:// www.esrs.gov. purchases from a corporation, company,or subdivision', 34531:'that isan affiliate of the contractoror subcontractor arenot included in these reports. subcontract awards by affiliates shall be treated as', 34532:'subcontractawards by the contractor. subcontract award data reported by the contractor and subcontractors shall be limited to awards made to', 34533:'their immediate nexttier subcontractors. credit cannot be taken for awards made to lower tier subcontractors, unless the contractor or subcontractor', 34534:'has been designated to receive a small business or small disadvantaged business credit from an anc or indian tribe. only', 34535:'subcontracts involving performance in the u.s. or its outlying areas should be included in these reports with the exception of', 34536:'subcontracts under a contract awarded by the state department or any other agency that has statutory or regulatory authority to', 34537:'require subcontracting plans for subcontracts performed outside the united states and its outlying areas. 1 sf 294. this report is', 34538:'not required for commercial plans. the report is required for each contract containing an individualsubcontractingplan. for contractors the reportshallbe submitted', 34539:'to the contracting officer, or asspecified elsewhere in this contract. in the case of a subcontract with a subcontracting plan,', 34540:'the report shall be submitted to the entity that awarded the subcontract. i the report shall be submitted semiannually during', 34541:'contract performance for the periods ending march 31 and september 30. a report is also required for each contract within', 34542:'30 days of contract completion. reports are due 30 days after the close of each reporting period, unless otherwise directed', 34543:'by the contractingofficer. reports are required when due, regardless of whether there has been any subcontracting activity since the inception', 34544:'of the contract or the previous reporting period. when a contracting officer rejects a report,the contractor shall submit a revised', 34545:'report within 30 days ofreceiving the notice of report rejection. 52.2189 52.2199 federal acquisition regulation iia when a subcontracting plan', 34546:'contains separate goals for the basic contract and each option, as prescribed by far 19.704c, the dollar goal inserted on', 34547:'this report shall be the sum of the base period through the current option; for example, for a report submitted', 34548:'after the second option is exercised, the dollar goal would be the sum of the goals for the basic contract,', 34549:'the first option, and the second option. b if a subcontracting plan has been added to the contract pursuant to', 34550:'19.702a1iii or 19.3012e, the contractors achievements must be reported in the report on a cumulative basis from the date of', 34551:'incorporation of the subcontracting plan into the contract. iii when a subcontracting plan includes indirect costs in the goals, these', 34552:'costs must be included in this report. 2ssr. ireports submitted under individual contract plans athis report encompassesallsubcontractingunder prime contracts and', 34553:'subcontracts with anexecutive agency, regardless of the dollar value of the subcontracts. this report also includes indirect costs on a', 34554:'prorated basis when the indirect costs are excluded from the subcontracting goals. b the report may be submitted on a', 34555:'corporate, company or subdivision e.g., plant or division operating as a separateprofit center basis, unless otherwise directed by the agency.', 34556:'c if the contractorand/or a subcontractor is performing work for more than one executive agency, aseparate report shall be submitted', 34557:'to each executive agency covering only that agencys contracts, provided at least one of that agencys contracts is overthe applicable', 34558:'thresholdspecified in far 19.702a, and the contract contains a subcontracting plan. for dod, a consolidated report shall be submitted for', 34559:'all contracts awarded by military departments/agencies and/or subcontracts awarded by dod prime contractors. d the report shall be submitted annually', 34560:'by october 30, for the twelve month period ending september 30. when acontracting officer rejects an ssr, the contractoris required', 34561:'to submit a revised ssr within 30 days of receiving the notice of report rejection. e subcontract awards that are', 34562:'related to work for more than one executive agency shall be appropriately allocated. f the authority to acknowledge or reject', 34563:'ssrs in the esrs, including ssrs submitted by subcontractors with subcontracting plans, resides with the government agency awarding the prime', 34564:'contracts unless stated otherwise in the contract. ii reports submitted under a commercial plan athe reportshallinclude all subcontract awardsunder thecommercial', 34565:'plan in effectduring the governments fiscal year and all indirect costs. b the report shall be submitted annually, within 30', 34566:'days after the endof the governments fiscal year. c if a contractor has a commercial plan and isperforming work for', 34567:'more than one executive agency, the contractor shall specify the percentage of dollarsattributable to each agency. dthe authority to acknowledge', 34568:'or reject ssrs for commercial plans resides with thecontracting officer who approved the commercial plan. alternate iv sep 2023. as', 34569:'prescribed in 19.708b1iv, substitute the following paragraphs c and d for paragraphs c and d of the basic clause: c1the', 34570:'contractor, uponrequest by thecontracting officer,shallsubmit and negotiate a subcontracting plan, where applicable, that separately addresses subcontracting with small business, veteranowned', 34571:'small business, servicedisabled veteranowned small business, hubzone small business, small disadvantaged business, and womenowned small business concerns. if the contractor', 34572:'is submitting an individual subcontracting plan, the plan shall separately address subcontracting with small business, veteranowned small business, servicedisabled veteranowned', 34573:'small business, hubzone small business, small disadvantaged business, and womenowned small business concerns, with a separate part for the basic', 34574:'contract and separate parts for each option if any. the subcontracting plan shall be incorporated into the contract. the subcontracting', 34575:'plan shall be negotiated within the time specified by the contracting officer. the subcontracting plan doesnot apply retroactively. 2i the', 34576:'prime contractor may accept a subcontractors written representations of its size and socioeconomic status as a small business, small disadvantaged', 34577:'business, veteranowned small business, servicedisabled veteranowned small business, or a womenowned small business if the subcontractor represents that the size', 34578:'and socioeconomic status representations with its offer are current, accurate, and complete as of the date of the offer for', 34579:'thesubcontract. ii the contractor may accept a subcontractors representations of its size and socioeconomic status as a small business, small', 34580:'disadvantaged business, veteranowned small business, servicedisabled veteranowned small business, or a womenowned small business in the system for award managementsam', 34581:'if– 52.2190 subpart 52.2 text of provisions and clauses 52.2199 a the subcontractor is registered in sam; and b the', 34582:'subcontractor represents that the size and socioeconomic status representations made in sam are current, accurate and complete as of the', 34583:'date ofthe offer for the subcontract. iii the contractor may not require the use of sam for the purposes of', 34584:'representing size or socioeconomic status in connection with a subcontract. iv in accordancewith 13cfr 121.411, 126.900,127.700, and 128.600, a contractor', 34585:'acting in good faith isnot liable for misrepresentations made by its subcontractors regarding the subcontractors size or socioeconomic status. d', 34586:'the contractors subcontracting plan shall include the following: 1 separate goals, expressed in terms of total dollars subcontracted and as', 34587:'a percentage of total planned subcontracting dollars, for the use of small business, veteranowned small business, servicedisabled veteranowned small business,', 34588:'hubzone small business, small disadvantaged business, and womenowned small business concerns as subcontractors. for individual subcontracting plans,andif requiredby the contracting', 34589:'officer, goals shall also be expressed in termsof percentage of total contract dollars, in addition to the goals expressed as', 34590:'a percentage of total subcontract dollars. the contractor shall include all subcontracts that contribute to contract performance, and may include', 34591:'a proportionate share of products and services that are normally allocated as indirect costs. in accordance with 43 u.s.c. 1626–', 34592:'i subcontracts awarded to an anc or indian tribe shall be counted towards the subcontracting goals for small business and', 34593:'small disadvantaged business concerns, regardless of the size or small business administration certification status of the anc or indian tribe;', 34594:'and ii where one or more subcontractors are in the subcontract tier between the prime contractor and the anc or', 34595:'indian tribe, the anc or indian tribe shall designate the appropriate contractors to count the subcontract towards its small business', 34596:'and small disadvantaged business subcontracting goals. a in most cases, the appropriate contractor is the contractor that awarded the subcontract', 34597:'to the anc or indian tribe. b if the anc or indian tribe designates more than one contractor to count', 34598:'the subcontract toward its goals, the anc or indiantribe shall designate only a portion of the totalsubcontract award to each', 34599:'contractor. thesum ofthe amounts designated to various contractors cannot exceed the total value of the subcontract. c the anc or', 34600:'indian tribe shall give a copy of the written designation to the contractingofficer, the contractor, andthe subcontractors in between the', 34601:'prime contractorandthe anc or indiantribe within30 days of the date of the subcontract award. dif the contracting officer does not', 34602:'receive a copy of the ancs or the indian tribes written designation within 30 days of the subcontract award, the', 34603:'contractor that awarded the subcontract to the anc or indian tribe will be consideredthe designated contractor. 2 a statement of–', 34604:'itotal dollarsplanned tobe subcontracted for anindividual subcontracting plan; orthe contractors total projected sales, expressed in dollars, and the total value', 34605:'of projected subcontracts to support the sales for a commercial plan, including all indirect costs, with the exception of those', 34606:'such as the following: employee salaries and benefits; payments for petty cash; depreciation; interest; income taxes; property taxes; lease payments;', 34607:'bank fees; fines, claims, and dues; original equipment manufacturer relationships during warranty periods negotiated up front with the product; utilities', 34608:'and other services purchased from a municipality or an entity solely authorized by the municipality to provide those services in', 34609:'a particular geographical region; and philanthropic contributions; iii total dollars planned to be subcontracted to veteranownedsmallbusiness concerns;ivtotal dollars planned to', 34610:'be subcontracted to servicedisabledveteranowned small business; v total dollars planned to be subcontracted to hubzone small business concerns; vi totaldollars', 34611:'planned to be subcontractedto small disadvantaged business concerns including ancs and indian tribes;andvii total dollars planned to be subcontracted to', 34612:'womenowned small business concerns. 3 a description of the principal types of supplies and services to be subcontracted, and an', 34613:'identification of the types planned for subcontracting to i small business concerns; iiveteranownedsmallbusiness concerns; iii servicedisabled veteranowned small business concerns;', 34614:'iv hubzone small business concerns; v small disadvantaged business concerns; and vi womenowned small business concerns. 52.2191 52.2199 federal acquisition', 34615:'regulation 4 a description of the method used to develop the subcontracting goals in paragraph d1 of this clause. 5', 34616:'a description of the method used to identify potential sources for solicitation purposes e.g., existing company source lists, sam, veterans', 34617:'service organizations,the nationalminority purchasing council vendor information service, the research and information division of the minority business development agency in', 34618:'the department of commerce, or small, hubzone, small disadvantaged, and womenowned small business trade associations. the contractor may rely on', 34619:'the information contained in sam as an accurate representation of a concerns size and ownership characteristics for the purposes of', 34620:'maintaining a small, veteranowned small, servicedisabled veteranowned small, hubzone small, small disadvantaged, and womenowned small business source list. use of', 34621:'sam as its source list does not relieve a firm of its responsibilities e.g., outreach, assistance, counseling, or publicizing subcontracting', 34622:'opportunities in this clause. 6 a statement as to whether or not the contractor included indirect costs in establishing subcontracting', 34623:'goals, and a description of the method used to determine the proportionate share of indirect costs to be incurred with–', 34624:'i small business concerns including anc and indian tribes; iiveteranownedsmallbusiness concerns; iii servicedisabled veteranowned small business concerns; iv hubzone small', 34625:'business concerns; v small disadvantaged business concerns including anc and indian tribes; and vi womenowned small business concerns. 7 the', 34626:'name of the individual employed by the contractor who will administer the contractors subcontracting program, and a description of the', 34627:'duties of the individual. 8 a description of theefforts the contractorwill make toassure that small business, veteranownedsmall business, servicedisabled veteranowned', 34628:'small business, hubzone small business, small disadvantaged business, and womenowned small business concerns have an equitable opportunity to compete for', 34629:'subcontracts. 9 assurances that the contractor will include the clause of this contract entitled utilization of small business concerns in', 34630:'all subcontracts thatoffer further subcontracting opportunities, and that the contractor will require all subcontractors except small business concerns that receive', 34631:'subcontracts in excess of the applicable threshold specified in far 19.702a on the date of subcontract award, with further subcontracting', 34632:'possibilities to adopt a subcontracting plan that complies with the requirements of this clause. 10 assurances that the contractor will–', 34633:'i cooperate in any studies or surveys as may be required; ii submit periodic reports so that the government can', 34634:'determine the extent of compliance by the contractor with the subcontracting plan; iii after november 30, 2017, include subcontracting data', 34635:'for each order when reporting subcontracting achievements for an indefinitedelivery, indefinitequantity contractswith individual subcontracting plans where the contract is intended', 34636:'for use by multiple agencies; iv submit the individual subcontract report isr and/or the summary subcontract report ssr, in accordance', 34637:'with paragraph l of this clause usingthe electronic subcontracting reportingsystemesrs at http://www.esrs.gov. the reports shall provide information on subcontract awards', 34638:'to small business concerns including ancs and indian tribes that are not small businesses, veteranowned small business concerns, servicedisabled veteranowned', 34639:'small business concerns, hubzone small business concerns, small disadvantaged business concerns including ancs and indian tribes that have not been', 34640:'certified bysba assmalldisadvantaged businesses, womenownedsmallbusiness concerns, and for nasa only, historically black colleges and universities and minority institutions. reporting shall', 34641:'be in accordance with this clause, or as provided in agency regulations; v ensure that its subcontractors with subcontracting plans', 34642:'agree to submit the isr and/or the ssr using esrs; vi provide itsprimecontract number, itsunique entity identifier, and the emailaddress', 34643:'of the contractors official responsible for acknowledging receipt of or rejecting the isrs, to all firsttier subcontractors with subcontracting plans', 34644:'so they can enter this information into the esrs when submitting their isrs; and vii requirethat each subcontractor with a', 34645:'subcontracting plan provide the prime contract number,its own unique entity identifier, and the email address ofthe subcontractors official responsible for', 34646:'acknowledging receipt of or rejecting the isrs, to its subcontractors with subcontracting plans. 11 a description of the types of', 34647:'records thatwill be maintained concerningprocedures that have been adopted to comply with the requirements and goals in the plan, including', 34648:'establishing source lists; and a description of the contractors efforts to locate small business, veteranowned small business, servicedisabled veteranownedsmall business,hubzone', 34649:'52.2192 subpart 52.2 text of provisions and clauses 52.21910 small business, small disadvantaged business, and womenowned small business concerns and', 34650:'award subcontracts to them. the records shall include at least the following on a plantwide or companywide basis, unless otherwise', 34651:'indicated: i source lists e.g., sam, guides, and other data that identify small business, veteranowned small business, servicedisabled veteranowned small', 34652:'business, hubzone small business, small disadvantaged business, and womenowned small business concerns. iiorganizations contactedin anattempt tolocate sourcesthat aresmallbusiness,veteranowned small business,', 34653:'servicedisabled veteranowned small business, hubzone small business, small disadvantaged business, or womenowned small business concerns. iii records on each subcontract', 34654:'solicitation resulting in an award of more than the simplified acquisition threshold, as defined in far 2.101 on the date', 34655:'of subcontract award, indicating– a whether small business concerns were solicited and, if not, why not; b whether veteranowned small', 34656:'business concerns were solicited and, if not, why not; c whether servicedisabled veteranowned small business concerns were solicited and, if', 34657:'not, why not; d whether hubzone small business concerns were solicited and, if not, why not; e whether small disadvantaged', 34658:'business concerns were solicited and, if not, why not; f whether womenowned small business concerns were solicited and, if not,', 34659:'why not; and g if applicable, the reason award was not made to a small business concern. iv records of', 34660:'any outreachefforts to contact– atradeassociations; b business development organizations; c conferences and trade fairs to locate small, hubzone small, small', 34661:'disadvantaged, servicedisabled veteran owned, and womenowned small business sources; and dveterans serviceorganizations. v records of internal guidance and encouragement provided', 34662:'to buyers through– aworkshops, seminars, training, etc. ; and b monitoring performance to evaluate compliance with the programs requirements. vi', 34663:'on a contractbycontract basis, records to support award data submitted by the contractor to the government, including the name, address,', 34664:'and business sizeof each subcontractor. contractorshaving commercial plans need notcomply with this requirement. 12 assurances that the contractor will make', 34665:'a good faith effort toacquire articles, equipment, supplies, services, or materials, or obtain the performance of construction work from the', 34666:'small business concerns that it used in preparing the proposal for the modification, in the same or greater scope, amount,', 34667:'and quality used in preparing and submitting the modification proposal. responding to a request for a quote does not constitute', 34668:'use in preparing a proposal. the contractor used a small business concern in preparing the proposal for a modification if–', 34669:'i the contractor identifies the small business concern as a subcontractor in the proposal or associated small business subcontracting plan,', 34670:'to furnish certain supplies or perform a portion of the subcontract; orii the contractor used the small business concerns pricing', 34671:'or cost information or technical expertise in preparing the proposal, where there is written evidence of an intent or understanding', 34672:'that the small business concern will be awarded a subcontract for the related work when the modification is executed. 13', 34673:'assurances that the contractor will provide the contractingofficer with a written explanationif the contractor fails to acquire articles, equipment, supplies,', 34674:'services or materials or obtain the performance of construction work as described ind12 ofthis clause. this written explanation mustbe submitted', 34675:'to the contracting officer within 30days of contract completion. 14 assurances that the contractor will not prohibit asubcontractorfrom discussing with', 34676:'the contracting officer any material matter pertaining to the payment to orutilization of a subcontractor. 15 assurances that the offerorwill', 34677:'pay its small business subcontractors on time and in accordance with the termsand conditions of theunderlying subcontract, and notifythe contracting', 34678:'officer when the prime contractor makes either a reduced or an untimely payment to a small business subcontractor see 52.2425.', 34679:'52.21910 incentive subcontracting program. as prescribed in 19.708c1, insert the following clause: incentive subcontracting program oct 2014 52.2193 52.21911 federal', 34680:'acquisition regulation a of the total dollars it plans to spend under subcontracts, the contractor has committed itself in its', 34681:'subcontracting plan to try to award certain percentages to small business, veteranowned small business, servicedisabled veteranowned small business, hubzone small', 34682:'business, small disadvantaged business, and womenowned small business concerns,respectively. b if the contractor exceeds its subcontracting goals for small business,', 34683:'veteranowned small business, servicedisabled veteranowned small business, hubzone small business, small disadvantaged business, and womenowned small business concerns in performing', 34684:'this contract, it will receive [contracting officer to insert the appropriate number between 0 and 10] percent of thedollars inexcessof', 34685:'each goal in the plan, unless the contracting officer determines that the excess was not due to the contractor’s efforts', 34686:'e.g.,a subcontractor cost overrun caused the actual subcontract amount to exceed that estimated in the subcontracting plan, or the award', 34687:'of subcontracts that had been planned but had not been disclosed in the subcontracting plan during contract negotiations. determinations made', 34688:'under this paragraph are unilateral decisions made solely at the discretion of the government. c if this is a costplusfixedfee', 34689:'contract, the sum of the fixed fee and the incentive fee earned under this contract may not exceed the limitations', 34690:'in 15.4044 of the federal acquisition regulation. end of clause 52.21911 special 8a contract conditions. as prescribed in 19.8113a, insert', 34691:'the following clause: special 8a contract conditionsjan 2017 the small business administration sba agrees to the following: a to furnish', 34692:'the supplies or services set forth in this contract according to the specifications and the termsand conditions hereof by subcontracting', 34693:'with an eligible concern pursuant to the provisions of section 8a of the small business act, as amended 15 u.s.c.', 34694:'637a. b that in theeventsba does not award a subcontract for all or a part of the work hereunder, this', 34695:'contract may be terminated either inwhole or in part without cost to either party. c except for novation agreements, delegate', 34696:'to the [insert name of contracting agency] the responsibility for administering the subcontract to be awarded hereunder with complete authority', 34697:'to take any action on behalf of the government under the terms and conditions of thesubcontract; provided, however, thatthe [insert', 34698:'name of contracting agency] shall give advance notice to the sba before it issues a final notice terminating the right', 34699:'of a subcontractor to proceed with further performance, either in whole or in part, under the subcontract for default or', 34700:'for the convenience of the government. d that payments to be made under any subcontract awarded under this contract will', 34701:'be made directly to the subcontractor by the [insert name of contracting agency]. e that the subcontractor awarded a subcontract', 34702:'hereunder shall have the right of appeal from decisions of the contracting officercognizable under the disputes clause of said subcontract.', 34703:'f to notifythe [insert name of contracting agency] contracting officerimmediately upon notification by the subcontractor that the owner or owners', 34704:'upon whom 8a eligibility was based plan to relinquish ownership or control of the concern. end of clause 52.21912 special', 34705:'8a subcontract conditions. as prescribed in 19.8113b, insert the following clause: special 8a subcontract conditions oct 2019 a the small', 34706:'business administration sba has entered into contract no. [insert number of contract] with the [insert name of contracting agency] to', 34707:'furnish the supplies or services as described therein. a copy of the contract is attached hereto and made a part', 34708:'hereof. b the [insert name of subcontractor], hereafter referred to as thesubcontractor, agrees andacknowledges as follows: 52.2194 subpart 52.2 text', 34709:'of provisions and clauses 52.21914 1 that it will, for and on behalf of the sba, fulfill and perform all', 34710:'of the requirements of contract no. [insert number of contract] for the consideration stated therein and that it has read', 34711:'and is familiar with each and every part of the contract. 2 that the sba hasdelegated responsibility, except for novation', 34712:'agreements, for the administration of this subcontract to the [insert name of contracting agency] with complete authority to take any', 34713:'action on behalf of the government under the terms and conditions of this subcontract. 3 that it will notify the', 34714:'[insert name of contracting agency] contractingofficer in writing immediately upon entering an agreement either oral or written to transfer all', 34715:'or part of its stock or other ownership interest to any other party. c payments, including any progress payments under', 34716:'this subcontract, will be made directly to the subcontractor by the [insert name of contracting agency]. end of clause 52.21913', 34717:'notice of setaside of orders. as prescribed in 19.507f1, insert the following clause: notice of setaside of orders mar 2020', 34718:'a thecontracting officer may setaside orders for the small business concerns identifiedin 19.000a3. b the contracting officer will give notice', 34719:'of the order or orders, ifany, to be set aside for small business concerns identified in 19.000a3 and the applicable', 34720:'small business program. this notice, and its restrictions, will apply only to the specific orders that have been set aside', 34721:'for any of the small business concerns identified in 19.000a3. end of clause alternate i mar 2020 . as prescribed', 34722:'in 19.507f2, substitute the following paragraph a for paragraph a of the basic clause: a thecontracting officer will setaside orders', 34723:'for the small business concerns identifiedin 19.000a3 when the conditions of far 19.5022 and the specific program eligibility requirements are', 34724:'met, as applicable. 52.21914 limitations on subcontracting. as prescribed in 19.507e, insert the following clause: limitations on subcontracting oct 2022', 34725:'a this clause does not apply to the unrestricted portion of a partial setaside. b definition. similarly situated entity, as', 34726:'used in this clause, meansa firsttier subcontractor, includingan independent contractor, that— 1 has the same small business program status as', 34727:'that which qualified the prime contractor for the award e.g., for a small business setaside contract, any small business concern,', 34728:'without regard to its socioeconomic status; and 2 is considered small for the size standard under the north american industry', 34729:'classification system naics code the prime contractor assigned to the subcontract. c applicability. this clause applies only to— 1 contracts', 34730:'that have been set aside for any of the small business concerns identified in 19.000a3; 2 part or parts of', 34731:'a multipleaward contract that have been set aside for any of the small business concerns identified in 19.000a3; 3 contracts', 34732:'that have been awarded on a solesource basis in accordance with subparts 19.8, 19.13, 19.14, and 19.15; 4 orders expected', 34733:'to exceed the simplified acquisition threshold and that are— i set aside for small business concerns under multipleaward contracts, as', 34734:'described in 8.4055 and 16.505b2i f; or ii issued directly to small business concerns under multipleaward contracts as described in', 34735:'19.504c1ii; 5 orders, regardless of dollar value, that are— 52.2195 52.21915 federal acquisition regulation i set aside in accordance with', 34736:'subparts 19.8, 19.13, 19.14, or 19.15 under multipleaward contracts, as described in 8.4055 and 16.505b2if; or ii issued directly to', 34737:'concerns that qualify for the programs described in subparts 19.8, 19.13, 19.14, or 19.15 under multipleaward contracts, as described in', 34738:'19.504c1ii; and 6 contracts using the hubzone price evaluation preference to award to a hubzone small business concern unless the', 34739:'concern waived the evaluation preference. d independent contractors. an independentcontractor shall be considered a subcontractor. e limitations on subcontracting. by', 34740:'submissionof an offer andexecution of a contract,the contractor agrees that in performance of a contract assigned a north american industry', 34741:'classification system naics code for— 1 services except construction, it will not pay more than 50 percent of the amount', 34742:'paid by the government for contract performance to subcontractors that are not similarly situated entities. any work that a similarly', 34743:'situated entity further subcontracts will count towards the prime contractors 50 percent subcontract amount that cannot be exceeded. when a', 34744:'contract includes both services and supplies, the 50 percent limitation shall apply only to the service portion of the contract;', 34745:'2 supplies other than procurement from a nonmanufacturer of such supplies, it will not pay more than 50 percent of', 34746:'the amount paid by the government for contract performance, excluding the cost of materials, to subcontractors that are not similarly', 34747:'situated entities. any work that a similarly situated entity further subcontracts will count towards the prime contractors 50 percent subcontract', 34748:'amount that cannot be exceeded. when a contract includes both supplies and services, the 50 percent limitation shall apply only', 34749:'to the supply portion of the contract; 3 general construction, it will not pay more than 85 percent of the', 34750:'amount paid by the government for contract performance, excluding the cost of materials, to subcontractors that are not similarly situated', 34751:'entities. any work that a similarly situated entity further subcontracts will count towards the prime contractors 85 percent subcontract amount', 34752:'that cannot be exceeded; or 4 construction by special trade contractors, it will not pay more than 75 percent of', 34753:'the amount paid by the government for contract performance, excluding the cost of materials, to subcontractors that are not similarly', 34754:'situated entities. any work that a similarly situated entity further subcontracts will count towards the prime contractors 75 percent subcontract', 34755:'amount that cannot be exceeded. f the contractor shall comply with the limitations on subcontracting as follows: 1 for contracts,', 34756:'in accordance with paragraphs c1, 2, 3 and 6 of this clause— [contracting officer check as appropriate.] □ by the', 34757:'end of the base term of the contract and then by the end of each subsequent option period; or □', 34758:'by the end of the performance period for each order issued under the contract. 2 for orders, in accordance with', 34759:'paragraphs c4 and 5 of this clause, by the end of the performance period for the order. g a joint', 34760:'venture agrees that, in the performance of the contract, the applicable percentage specified in paragraph e of this clause will', 34761:'be performed by the aggregate of the joint venture participants. 1 in a joint venture comprised of a small business', 34762:'protégé and its mentor approved by the small business administration, the small businessprotégé shall perform at least 40 percent of', 34763:'the work performedby the joint venture. work performed by the small business protégé in the joint venture must be more', 34764:'than administrative functions. 2 in an 8a joint venture, the 8a participants shall perform at least 40 percent of the', 34765:'work performed by the joint venture. work performed by the8aparticipantsin the joint venturemust be more than administrative functions. end of', 34766:'clause 52.21915 [reserved] 52.21916 liquidated damagessubcontracting plan. as prescribed in 19.708b2, insert the following clause: liquidated damagessubcontracting plan sep 2021', 34767:'a failure tomakea good faith effort to complywith the subcontracting plan, as usedin this clause, means a willful or intentional', 34768:'failure to perform in accordance with the requirements of the subcontracting plan approved under the clause in this contract entitled', 34769:'small business subcontracting plan, or willful or intentional action to frustrate the plan. 52.2196 subpart 52.2 text of provisions and', 34770:'clauses 52.21918 b performance shall be measuredby applying the percentage goals to the total actual subcontracting dollars or,if a commercial', 34771:'plan is involved, to the pro rata share of actual subcontracting dollars attributable to government contracts covered bythe commercial plan.', 34772:'if, at contractcompletion or,in the case of a commercial plan, at theclose of the fiscal year for whichthe plan isapplicable,', 34773:'thecontractor has failedto meetits subcontracting goalsand the contracting officer decidesin accordance with paragraph c of this clause that the contractor', 34774:'failed to make a good faitheffort to comply with its subcontracting plan see 19.7057, established in accordance with the clause', 34775:'in this contract entitled small business subcontracting plan, the contractor shall pay the government liquidated damages in an amount stated.', 34776:'the amount of probable damages attributable to the contractor’s failure to comply shall be an amount equal to the actual', 34777:'dollar amount by which the contractor failed to achieve each subcontract goal. c before the contracting officer makes a final', 34778:'decisionthat thecontractor has failedto make such good faitheffort, thecontracting officer shall give the contractorwritten notice specifying thefailureandpermitting the contractorto demonstrate', 34779:'what good faith efforts have been made and to discuss thematter. failure to respond tothe notice may be taken as', 34780:'an admission that no valid explanation exists. if, after consideration ofallthe pertinent data, the contracting officer finds that the contractor', 34781:'failed to make a good faitheffort to comply with the subcontracting plan, the contractingofficer shall issue a finaldecision to that', 34782:'effectand require that the contractor pay the government liquidateddamagesas provided in paragraph b of this clause. d with respectto commercial', 34783:'plans, thecontracting officer who approved the plan will perform the functions of the contracting officerunder this clause on behalf of', 34784:'all agencies with contractscovered by thecommercial plan. e the contractor shall have the right of appeal, under the clause in', 34785:'this contract entitled, disputes, from any final decision ofthe contracting officer. f liquidated damages shall be in addition to any', 34786:'other remedies that the government may have. end of clause 52.21917 section 8a award. as prescribed in 19.8113c, insert the', 34787:'following clause: section8a award oct 2019 a by execution of a contract, the small business administration sba agrees to the', 34788:'following: 1 to furnishthe supplies or services set forth inthe contract according tothe specifications andthe terms and conditions by subcontracting', 34789:'with the offeror who hasbeendetermined an eligibleconcern pursuantto the provisionsof section8a of the small business act, as amended 15 u.s.c.', 34790:'637a. 2 except for novation agreements, delegates to the [insert name of contracting activity]the responsibility for administering the contract with', 34791:'complete authority to take any action on behalf of the government under the terms and conditions of the contract; provided,', 34792:'however that the contracting agency shall give advance notice to the sba before it issues a final notice terminating the', 34793:'right of the subcontractor to proceed with further performance, either in whole or in part, under the contract. 3 that', 34794:'payments to be made under the contract willbe made directly tothe subcontractor by the contracting activity. 4 to notify the', 34795:'[insert name of contracting agency] contracting officer immediatelyupon notification by the subcontractor that the owner or owners upon whom 8a', 34796:'eligibility was based plan to relinquish ownership or control of the concern. 5 that the subcontractor awarded a subcontract hereunder', 34797:'shall have the right of appeal from decisions of the cognizantcontracting officer underthe disputes clause of the subcontract. b the', 34798:'offeror/subcontractor agreesand acknowledges that it will, for and on behalf of the sba, fulfill and perform all of the requirements', 34799:'of the contract. end of clause 52.21918 notification of competition limited to eligible 8a participants. as prescribed in 19.8113d, insert', 34800:'the following clause: notification of competition limited to eligible 8a participants oct 2022 52.2197 52.21919 federal acquisition regulation a offers', 34801:'are solicitedonlyfrom— 1 small business concerns expressly certified by the small business administration sba for participation in sbas 8a program', 34802:'and which meet the following criteria at the time of submission ofoffer— ithe offeror is in conformance with the8a support', 34803:'limitationset forthin itsapproved business plan;and iithe offeror is in conformance with thebusinessactivity targets setforth in its approved business plan orany', 34804:'remedial action directed by sba; 2 a joint venture, in which at least one of the 8a program participants that', 34805:'is a party to the joint venture complies with the criteria set forth in paragraph a1 of this clause, that', 34806:'complies with 13 cfr 124.513c; or 3 a joint venture— i that is comprised of a mentor and an 8a', 34807:'protégé with an approved mentorprotégé agreement under the 8a program; ii in which at least one of the 8a program', 34808:'participants that is a party to the joint venture complies with the criteria set forth in paragraph a1 of this', 34809:'clause; and iii that complies with 13 cfr 124.513c. b by submission of its offer, theofferor represents thatitmeetsthe applicable criteria', 34810:'set forth in paragraph a of this clause. c any award resulting from this solicitation will be made to the', 34811:'small business administration, which will subcontract performanceto the successful 8aofferor selected through the evaluation criteria setforth in this solicitation. a', 34812:'contracting officer may consider a jointventure for contract award. sba does notapprovejoint ventures for competitiveawards, but see 13 cfr 124.501g', 34813:'for sbasdeterminationof participanteligibility. d the [insert name of sbas contractor]will notify the [insert name of contracting agency]contracting officer in writing', 34814:'immediately upon enteringan agreement either oralor written to transfer all or part of its stock. end of clause alternate i', 34815:'mar 2023. if the competition is to be limited to 8a participants within one or more specific sba regions or', 34816:'districts, add the following paragraph a1iii to paragraph a of the clause: iii the offerors approved business plan is on', 34817:'the fileand serviced by [ contracting officer completes by inserting the appropriate sba district and/or area offices as identified by', 34818:'the sba]. 52.21919 [reserved] 52.21920 [reserved] 52.21921 [reserved] 52.21922 [reserved] 52.21923 [reserved] 52.21924 [reserved] 52.21925 [reserved] 52.21926 [reserved] 52.21927 noticeof', 34819:'setaside for, or solesource award to, servicedisabledveteranowned small business sdvosb concernseligible underthe sdvosb program. as prescribed in 19.1408, insert the', 34820:'following clause: notice of setaside for, or solesource award to, servicedisabled veteranowned small business sdvosb concerns eligible under the sdvosb', 34821:'program. feb 2024 52.2198 subpart 52.2 text of provisions and clauses 52.21928 a definition. servicedisabled veteranowned small business sdvosb concern', 34822:'means a small business concern— 1 inotlessthan51percentofwhichisownedandcontrolledbyoneormoreservicedisabledveteransor,inthe case of any publicly owned business, not less than 51 percent of the', 34823:'stock of which is owned by one or more servicedisabled veterans; and ii the management and daily business operations of', 34824:'which are controlled by one or more servicedisabled veterans or, in the case of a servicedisabledveteran with permanent and severe', 34825:'disability, the spouse or permanent caregiver of such veteran; or 2 a small business concern eligible under the sdvosb program', 34826:'in accordance with 13 cfr part 128 see subpart 19.14. 3 servicedisabled veteran, as used in this definition, means a', 34827:'veteran as defined in 38 u.s.c. 1012, with a disability that is serviceconnected, as defined in 38 u.s.c. 10116 and', 34828:'who is registered in the beneficiary identification and records locator subsystem, orsuccessorsystemthat ismaintained by the departmentof veterans affairs’ veterans benefits', 34829:'administration, as a servicedisabled veteran. servicedisabled veteranowned small business sdvosb concern eligible under the sdvosb program means an sdvosb concern', 34830:'that— 1 effective january 1,2024, is designated inthe system for award management sam ascertifiedby the small business administration sba in', 34831:'accordance with 13 cfr 128.300; or 2 has represented that it is an sdvosb concern in sam and submitted a', 34832:'complete application for certification to sba on or before december 31, 2023. servicedisabled veteranowned small business sdvosb program means a', 34833:'program that authorizes contracting officers to limit competition, including award on a solesource basis, to sdvosb concerns eligible under the', 34834:'sdvosb program. b applicability. this clause applies only to— 1 contracts thathavebeenset asidefor, or awarded on a solesource basis to,', 34835:'sdvosb concerns eligible under the sdvosb program; 2 part or parts of a multipleaward contract that have been set aside', 34836:'for sdvosb concerns eligible under the sdvosb program; 3 orders set aside for sdvosb concerns eligible under the sdvosb program,', 34837:'under multipleaward contracts as described in 8.4055 and 16.505b2if; and 4 orders issued directly to sdvosb concerns eligible under the', 34838:'sdvosb program, under multipleaward contracts as described in 19.504c1ii. c general. 1effectivejanuary1,2024,forsdvosbsetasideorsolesourceprocurements,offersaresolicitedonly from, and awards resulting from this solicitation will', 34839:'be made only to, concerns— i designated in sam as an sdvosb concern certified by sba; or ii that have', 34840:'represented their status as an sdvosb in sam and submitted a complete application for certification to sba on or before', 34841:'december 31, 2023. 2 offers received fromconcerns that do not meet the criteria of paragraph c1i or ii of this', 34842:'clause, shall notbe considered. d a joint venture may be considered an sdvosb concern if the managing partner of the', 34843:'joint venture complies with the criteria defined in paragraph a of this clause and 13 cfr 128.402. e in a', 34844:'joint venture that complies with paragraph d of this clause, the sdvosb party or parties to the joint venture shall', 34845:'perform at least 40 percent of the work performed by the joint venture. work performedby the sdvosb party or partiesto', 34846:'the joint venture must be more than administrative functions. end of clause 52.21928 postawardsmall business programrerepresentation. as prescribed in 19.309c1,', 34847:'insert the following clause: postaward small business program rerepresentation feb 2024 a definitions. as used in this clause— 52.2199 52.21928', 34848:'federal acquisition regulation longterm contract means a contract of more than fiveyears induration, including options. however,the term does not include', 34849:'contracts that exceed five years in duration because the period of performance has been extended for a cumulative period not', 34850:'to exceed six months under the clause at 52.2178, option to extend services, orotherappropriate authority. small business concern— 1 means', 34851:'a concern, including itsaffiliates, that is independently owned and operated, not dominant inits field of operation, and qualified as a', 34852:'small business under the criteria in 13 cfr part 121 and the size standard in paragraph d of this clause.', 34853:'2 affiliates, as used in this definition, means business concerns, one of whom directly or indirectly controls or has the', 34854:'power to control the others, or a third party or parties control or have the power to control the others.', 34855:'in determining whether affiliationexists, consideration is given to all appropriate factors including commonownership, commonmanagement, and contractualrelationships. sbadeterminesaffiliation based onthe factors', 34856:'setforth at 13 cfr121.103. b if the contractor represented that it was any of the small business concerns identified in', 34857:'19.000a3 prior to award of this contract, the contractor shall rerepresent its size and socioeconomicstatus according to paragraph fof this', 34858:'clauseor, if applicable, paragraph h of this clause, upon occurrence of any of the following: 1 within 30 days after', 34859:'execution of a novation agreement or within30 days aftermodification of the contract to include this clause, if the novation agreement', 34860:'was executed prior to inclusion of this clause in the contract. 2 within 30 days after a mergeror acquisition that', 34861:'does not require anovation or within30 days aftermodification of thecontract to include this clause,if the merger or acquisition occurred prior', 34862:'toinclusionof this clause in the contract. 3 for longterm contracts iwithin 60 to 120 days prior tothe end of the', 34863:'fifth year of the contract; and iiwithin 60 to 120 days prior to the datespecified in the contract for exercising', 34864:'any option thereafter. c if the contractor represented that it was any of the small business concerns identified in 19.000a3', 34865:'prior to award of this contract, the contractor shall rerepresent its size and socioeconomic status according to paragraph f of', 34866:'this clause or, ifapplicable, paragraph h of this clause, when thecontracting officer explicitly requires it for anorder issued undera multipleaward', 34867:'contract. d the contractor shall rerepresent its size status in accordance with the size standard in effect at the time', 34868:'of this rerepresentation that corresponds to the north american industry classification system naics codes assigned to this contract. the small', 34869:'business size standard corresponding to this naics codes can be found at https://www.sba.gov/ document/supporttablesizestandards. e the small business size standard', 34870:'for a contractor providing an end item that it does not manufacture, process, or produce itself, for a contract other', 34871:'than a construction or service contract, is 500 employees, or 150 employees for information technology valueadded resellers under naics code', 34872:'541519, if the acquisition— 1 was set aside for small business andhas a value above the simplified acquisition threshold; 2', 34873:'used the hubzone price evaluation preference regardless of dollar value, unless the contractor waived the price evaluation preference; or 3', 34874:'was an8a, hubzone, servicedisabledveteranowned, economically disadvantaged womenowned, or women owned small business setaside or solesource award regardless of dollar value.', 34875:'f except as provided in paragraph h of this clause, the contractor shall make the representations required by paragraph b', 34876:'and c of this clause by validating or updating all its representations in the representations and certifications section of the', 34877:'system for award management sam and its other datain sam, asnecessary, to ensure that they reflect the contractors current status.', 34878:'the contractor shall notify thecontracting office in writing within the timeframes specifiedin paragraph b of this clause, or with its', 34879:'offer for an order see paragraph c ofthisclause, thatthe data have been validated or updated, and provide the date of', 34880:'the validation or update. g if the contractor represented that it was other than a small business concern prior to', 34881:'award of this contract, the contractor may,but is not required to, takethe actionsrequired by paragraphs f orhof this clause. h', 34882:'if the contractor does not have representations and certifications in sam, or does not have a representation in sam for', 34883:'the naics code applicable to this contract, the contractor is required to complete the following rerepresentation and submititto the contracting', 34884:'office, along with the contract number andthe date onwhich the rerepresentation was completed: 1 the contractor represents that it □', 34885:'is, □ is not a small business concern under naics code assigned to contract number . 2 [complete only if', 34886:'the contractor represented itself as a small business concern in paragraph h1 of this clause.] the contractor represents that it', 34887:'□ is, □ is not, a small disadvantaged business concern as defined in 13 cfr 124.1001. 52.2200 subpart 52.2 text', 34888:'of provisions and clauses 52.21929 3 [complete only if the contractor represented itself as a small business concern in paragraph', 34889:'h1 of this clause.] the contractor represents that it □ is, □ is not a womenowned small business concern. 4', 34890:'womenowned small business wosb joint venture eligible underthe wosb program. the contractor represents that it □ is, □ is not', 34891:'a joint venture that complies with the requirements of 13 cfr 127.506a through c. [ the contractor shall enter the', 34892:'name and unique entity identifier of each party to the joint venture: .] 5 economically disadvantaged womenowned small business edwosb', 34893:'joint venture. the contractor represents that it □ is, □ is not a joint venture that complies with the requirements', 34894:'of 13 cfr 127.506a through c. [ the contractor shall enter the name and unique entity identifier of each party', 34895:'to the joint venture: .] 6 [complete only if the contractor represented itself as a small business concern in paragraph', 34896:'h1 of this clause. ] the contractor represents that it □ is, □ is not a veteranowned small business concern.', 34897:'7 [complete only if the contractor represented itself as a veteranowned small business concern in paragraph h6 of this clause.]', 34898:'the contractor represents that it □ is, □ is not a servicedisabled veteranowned small business concern. 8 servicedisabled veteranowned small', 34899:'business sdvosb joint venture eligible under the sdvosb program. the contractor represents that it □ is, □ is not an', 34900:'sdvosb joint venture eligible under the sdvosb program that complies with the requirements of 13 cfr 128.402. [ the contractor', 34901:'shall enter the name and unique entity identifier of each party to the joint venture: .] 9 [ complete only', 34902:'if the contractor represented itself as a small business concern in paragraph h1 of this clause. ] the contractor represents', 34903:'that— i it □ is, □ is not a hubzone small business concern listed, on the date of this representation,', 34904:'on the list of qualified hubzone small business concerns maintained by the small business administration, and no material changes in', 34905:'ownership and control,principal office, or hubzone employee percentage have occurred since it was certified in accordance with 13 cfr part', 34906:'126; and ii it □ is, □ is not a hubzone joint venture that complies with the requirements of 13', 34907:'cfr part 126, and the representation in paragraph h8i of this clause is accurate for each hubzone small business concern', 34908:'participating in the hubzone joint venture. [ the contractor shall enter the names of each of the hubzone small business', 34909:'concerns participating in the hubzone joint venture: . ] each hubzone small business concern participating in the hubzone joint venture', 34910:'shall submit a separate signed copy of the hubzone representation. [ contractor to sign and date and insert authorized signers', 34911:'name and title. ] end of clause alternate i mar 2020. as prescribed in 19.309c2, substitute the following paragraph h1', 34912:'for paragraph h1 of the basic clause: h1 the contractor represents its small business size status for each one of', 34913:'the naics codes assigned to this contract. naics code small business concern yes/no [contracting officer to insert naics codes.] 52.21929', 34914:'noticeof setaside for, or solesource award to, economically disadvantagedwomenowned small business concerns. as prescribed in 19.1508, insert the following clause:', 34915:'notice of setaside for, or solesource award to, economically disadvantaged womenowned small business concerns oct 2022 a definitions. economically disadvantaged', 34916:'womenowned small business edwosb concern as used in this clause, means a small business concernthat is at least51 percent directly', 34917:'andunconditionally owned by,andthe management and dailybusiness 52.2201 52.21930 federal acquisition regulation operations of which are controlled by, one or more', 34918:'women who are citizens of the united states andwho are economically disadvantaged in accordance with 13 cfr part 127, and', 34919:'is certified pursuant to 13 cfr 127.300 as an edwosb. it automatically qualifies as a womenowned small business wosb concern', 34920:'eligible under the wosb program. wosb program repository meansa secure,webbased application that collects, stores, and disseminates documents to the contracting', 34921:'community and sba, which verify the eligibility of a business concern for a contract to be awarded under the wosb', 34922:'program. b applicability. this clause applies only to— 1 contracts thathavebeenset asidefor, or awarded on a solesource basis to, edwosb', 34923:'concerns; 2 part or parts of a multipleaward contract that have been set aside for edwosb concerns; 3 orders set', 34924:'aside for edwosb concerns under multipleaward contracts as described in 8.4055 and 16.505b2i f; and 4 orders issued directly to', 34925:'edwosb concerns under multipleaward contracts as described in 19.504c1ii. c general. 1 for edwosb setaside procurements,offers aresolicited only from certified', 34926:'edwosb concerns or edwosb concerns with a pending application for certification in the dynamic small business search dsbs. 2 for', 34927:'edwosb solesource awards,offers aresolicited only from certified edwosb concerns. 3 offers received fromotherconcerns willnot be considered. 4 any award resulting', 34928:'from this solicitation will be made to a certified edwosb concern. d joint venture. a joint venture may be considered', 34929:'an edwosb concern if— 1 at least one party to the joint venture complies with the criteria defined in paragraph', 34930:'a and paragraph c3 of this clause, and 13 cfr 127.506c; and 2 each party to the joint venture qualifies', 34931:'as small under the size standard for the solicitation, or the protégé is small under the size standard for the', 34932:'solicitation in a joint venture comprised of a mentor and protégé with an approved mentor protégé agreement under the sba', 34933:'mentorprotégé program. e in a joint venture that complies with paragraph d of this clause, the edwosb party or parties', 34934:'to the joint venture shall perform at least 40 percent of the work performed by the joint venture. work performedby', 34935:'the edwosb partyor parties to the joint venture must be more than administrative functions. end of clause 52.21930 noticeof setaside', 34936:'for, or solesource award to, womenowned small business concernseligible under the womenowned smallbusiness program. as prescribed in 19.1508b, insert the', 34937:'following clause: notice of setaside for, or solesource award to, womenowned small business concerns eligible under the womenowned small business', 34938:'program oct 2022 a definitions. as used in this clause— womenowned small business wosb concern eligible under the wosb program', 34939:'in accordance with 13 cfr part 127, as used in this clause, meansa small business concern that is atleast 51', 34940:'percent directly and unconditionally owned by, and themanagement and daily business operations of which are controlled by, one or more', 34941:'women who are citizens of the united states, and the concern is certified by sba or an approved thirdparty certifier', 34942:'in accordance with 13 cfr 127.300 as a wosb. a certified edwosb is automatically eligible as a certified wosb. wosb', 34943:'program repository meansa secure,webbased application that collects, stores, and disseminates documents to the contracting community and sba, which verify the', 34944:'eligibility of a business concern for a contract to be awarded under the wosb program. b applicability. this clause applies', 34945:'only to 1 contracts thathavebeenset asidefor, or awarded on a solesource basis to, wosb concerns eligible under the wosb program;', 34946:'2 part or parts of a multipleaward contract that have been set aside for wosb concerns eligible under the wosb', 34947:'program; 3 orders set aside for wosb concerns eligible under the wosb program, under multipleaward contracts as described in 8.4055', 34948:'and 16.505b2if; and 52.2202 subpart 52.2 text of provisions and clauses 52.21933 4 orders issued directly to wosb concerns eligible', 34949:'under the wosb program under multipleaward contracts as described in 19.504c1ii. c general. 1 for wosb setaside procurements,offers aresolicited only', 34950:'from certified wosb concerns eligible under the wosb program or wosb concerns with a pending application for certification status in', 34951:'the dynamic small business search dsbs. 2 for wosb solesource awards,offers aresolicited only from certified wosb concerns. 3 offers received', 34952:'fromotherconcerns shall notbe considered. 4 any award resulting from this solicitation will be made to a certified wosb concern eligible', 34953:'under the wosb program. d joint venture. a joint venture may be considered a wosb concern eligible under the wosb', 34954:'program if— 1 at least one party to the joint venture complies with the criteria defined in paragraph a and', 34955:'c3 of this clause, and 13 cfr 127.506c; and 2 each party to the joint venture qualifies as small under', 34956:'the size standard for the solicitation, or the protégé is small under the size standard for the solicitation in a', 34957:'joint venture comprised of a mentor and protégé with an approved mentor protégé agreement under the sba mentorprotégé program. e', 34958:'in a joint venture that complies with paragraph d of this clause, the wosb party or parties to the joint', 34959:'venture shall perform at least 40 percent of the work performed by the joint venture. work performedby the wosb partyor', 34960:'partiesto the joint venture must be more than administrative functions. end of clause 52.21931 notice of small business reserve. as', 34961:'prescribed in 19.507g1, insert the following provision: notice of small business reserve mar 2020 a this solicitation contains a reserve', 34962:'for one or more small business concerns identified at 19.000a3. the small business program eligibilityrequirements apply. b the small businessconcerns', 34963:'eligible for participationin thereserve shall submit one offerthat addresses each portion of the solicitation for which it wants to compete.', 34964:'award of the contractwill be basedon criteria identified elsewhere in the solicitation. end of provision 52.21932 orders issued directly under', 34965:'small business reserves as prescribed in 19.507g2, insert the following clause: orders issued directly under small business reserves mar 2020', 34966:'a applicability. this clause applies only to contracts that were reserved for any of the small business concerns identified at', 34967:'19.000a3. b if there is only one contract award to any one type of small business concern identified in 19.000a3', 34968:'as a result of thereserve,the contracting officermay issue anorder or orders directly to the concern. end of clause 52.21933 nonmanufacturerrule.', 34969:'as prescribed in 19.507h, insert the following clause: nonmanufacturer rule sep 2021 a definitions. as used in this clause— 52.2203', 34970:'federal acquisition regulation manufacturer means the concern that transforms raw materials, miscellaneous parts, or components into the end item. concerns', 34971:'that only minimally alter the item being procured do not qualify as manufacturers of the end item. concerns that add', 34972:'substances, parts, or components to an existing end item to modify its performance will not be considered the end item', 34973:'manufacturer, where those identical modifications can beperformed by andare available from the manufacturer of the existing end item. nonmanufacturer meansa', 34974:'concern, including asupplier, that provides an end itemitdid not manufacture, process, or produce. b applicability. 1 this clause does not', 34975:'apply to contracts awarded pursuant to the unrestricted portion of a partial setaside or to a contractor that is the', 34976:'manufacturer of the product or end item. 2 this clause applies to— i contracts that have been awarded pursuant to', 34977:'a setaside, in total or in part, for any of the small business concerns identified in 19.000a3; ii contracts that', 34978:'have been awarded on a solesource basis in accordance with subparts 19.8, 19.13, 19.14, and 19.15; iii orders expected to', 34979:'exceed the simplified acquisition threshold and that are— a set aside for small business under multipleaward contracts, as described in', 34980:'8.4055 and 16.505b2if; or b issued directly to a small business concern under multipleaward contracts as described in 19.504c1ii; iv', 34981:'orders, regardless of dollar value, that are— a set aside in accordance with subparts 19.8, 19.13, 19.14, and 19.15 under', 34982:'multipleaward contracts as described in 8.4055 and 16.505b2if; or b issued directly to concerns that qualify for the programs described', 34983:'in subparts 19.8, 19.13, 19.14, and 19.15 under multipleaward contracts as described in 19.504c1ii; and v contracts using the hubzone', 34984:'price evaluation preference to award to a hubzone concern unless the contractor waived the evaluation preference. c requirements. 1 the', 34985:'contractor shall— i provide an end item that a small business has manufactured, processed, or produced in the united states', 34986:'or its outlying areas; for kit assemblers who are nonmanufacturers, see paragraph c2 of this clause instead; ii be primarily', 34987:'engaged in the retail or wholesale trade and normally sell the type of item being supplied; and iii take ownership', 34988:'or possession ofthe items withits personnel, equipment, or facilities in a manner consistent with industry practice; for example,providing storage, transportation,', 34989:'or delivery. 2 when the end item being acquired is a kit of supplies, at least 50 percent of the', 34990:'total cost of the components of the kit shall be manufactured, processed, or produced in the united states or its', 34991:'outlying areas by small business concerns. end of clause 52.220[reserved] 52.221[reserved] 52.2204 subpart 52.2 text of provisions and clauses 52.2223', 34992:'52.222[reserved] 52.2221 notice to the government of labor disputes. as prescribed in 22.1035a, insert the following clause: notice to the', 34993:'government of labor disputes feb 1997 if the contractor has knowledge that any actual or potential labor dispute is delaying', 34994:'or threatens to delay the timely performance of this contract, the contractor shall immediately give notice, including all relevant information,', 34995:'to the contracting officer. end of clause 52.2222payment for overtime premiums. as prescribed in 22.1035b, insert the following clause: payment', 34996:'for overtime premiums july 1990 a the use of overtime is authorized under this contract if the overtime premium does', 34997:'not exceed or the overtime premium is paid for work 1 necessary tocopewith emergencies such as those resulting from accidents,', 34998:'natural disasters, breakdowns of production equipment, or occasional production bottlenecks of a sporadic nature; 2 by indirectlabor employees such as', 34999:'those performing duties in connection with administration, protection, transportation, maintenance, standby plant protection, operation of utilities, or accounting; 3 to', 35000:'perform tests, industrialprocesses, laboratory procedures, loading or unloading of transportationconveyances, and operations in flight or afloat that are continuous in', 35001:'nature and cannot reasonably be interrupted or completed otherwise; or 4 that will result in lower overall costs to the', 35002:'government. b any request for estimated overtime premiums that exceeds the amount specified above shall include all estimated overtime for', 35003:'contract completion and shall 1 identify the work unit; e.g., department or section in which the requested overtime will be', 35004:'used, together with present workload,staffing, and other dataof the affectedunit sufficientto permit the contractingofficer to evaluate the necessity for the', 35005:'overtime; 2 demonstrate the effect that denial of the request will have onthe contract deliveryor performance schedule; 3 identifythe extent', 35006:'to which approval ofovertime would affect the performance or payments in connection with other government contracts, together withidentification of eachaffected', 35007:'contract; and 4 provide reasons why the required work cannot be performed by using multishift operations or by employing additional', 35008:'personnel. insert either zero or the dollar amount agreed to during negotiations. the inserted figure does not apply to the', 35009:'exceptions in paragraph a1 through a4 of the clause. end of clause 52.2223convict labor. as prescribed in 22.202, insert the', 35010:'following clause: convict labor june 2003 a except as provided in paragraph b of this clause, the contractor shall not', 35011:'employ in the performance of this contract any person undergoing asentence of imprisonmentimposedby any court of a state, the districtof', 35012:'columbia, puerto rico, thenorthern mariana islands, american samoa, guam, orthe u.s. virgin islands. b the contractor is not prohibited from', 35013:'employing persons 1 on parole or probation to work at paid employment during the term of their sentence; 52.2205 52.2224', 35014:'federal acquisition regulation 2 who have been pardoned or who have served their terms; or 3 confined for violation of', 35015:'the laws of any of the states, the district of columbia, puerto rico, the northern mariana islands, american samoa, guam,', 35016:'orthe u.s. virgin islandswho are authorized to work at paid employment in the community under the laws of such jurisdiction,', 35017:'if i the worker is paid or is in an approved work training program on a voluntary basis; iirepresentatives oflocal', 35018:'union central bodies or similar labor union organizationshavebeenconsulted; iii such paid employment will not result in the displacement of employed', 35019:'workers, or be applied in skills, crafts, or trades in whichthere is a surplus ofavailable gainful labor in the locality,', 35020:'or impairexisting contracts for services; iv the rates of pay and other conditions of employment will not be less than', 35021:'those paid or provided for work of a similar nature in the locality in which the work is being performed;', 35022:'and v the attorney general of the united states has certified that the workrelease laws or regulations of the jurisdiction', 35023:'involved are in conformity with therequirements of executive order11755, as amended byexecutive orders 12608 and 12943. end of clause 52.2224contractwork', 35024:'hours and safety standards overtimecompensation. as prescribed in 22.305, insert the following clause: contract work hours and safety standardsovertime compensation', 35025:'may 2018 a overtime requirements. no contractor or subcontractor employing laborers or mechanics see federal acquisition regulation 22.300 shall require', 35026:'or permit them to work over 40 hours in any workweek unless they are paid at least 1 and 1/2', 35027:'times the basic rate of pay for each hour worked over 40 hours. b violation; liability for unpaid wages; liquidated', 35028:'damages. the responsible contractor and subcontractor are liable for unpaid wages if they violate the terms in paragraph a of', 35029:'this clause. in addition, the contractor and subcontractor are liable for liquidated damages payable to the government. the contracting officer', 35030:'will assess liquidated damages at therate specified at 29 cfr 5.5b2 per affected employee for each calendarday on which the', 35031:'employer required or permitted the employee to work in excess of the standard workweek of 40 hours without paying overtime', 35032:'wages required by the contract work hours andsafety standards statute found at 40 u.s.c. chapter 37. in accordance with the', 35033:'federal civil penalties inflation adjustment act of 1990 28 u.s.c. 2461 note, the department of labor adjusts this civil monetary', 35034:'penalty for inflation no later than january 15 each year. c withholding for unpaid wages and liquidated damages. the contracting', 35035:'officer will withholdfrom payments due underthe contract sufficientfundsrequired to satisfyany contractoror subcontractor liabilities for unpaidwagesand liquidated damages. if amounts withheld', 35036:'under the contract are insufficient to satisfycontractor or subcontractor liabilities, thecontracting officer will withhold payments from other federal orfederally assisted', 35037:'contracts held by the same contractor that are subject to the contract work hoursandsafety standards statute d payrolls and basic', 35038:'records. 1 the contractor and its subcontractors shall maintain payrolls and basic payroll records for all laborers and mechanics working', 35039:'on the contract during the contract and shall make them available to the government until 3 years after contract completion.', 35040:'the records shall contain the name and address of each employee, social security number, labor classifications, hourly rates of wages', 35041:'paid, dailyandweekly number of hours worked, deductions made, and actual wages paid. the records need not duplicate those required for', 35042:'construction work by department of labor regulations at 29 cfr 5.5a3 implementing the construction wage rate requirements statute. 2 the', 35043:'contractor and its subcontractors shall allow authorized representatives of the contractingofficer orthe department of labor to inspect, copy, or transcribe', 35044:'records maintained under paragraph d1 of thisclause. the contractor or subcontractor also shall allow authorized representatives of the contracting officer', 35045:'or department of labor to interview employees in the workplace during working hours. e subcontracts. the contractor shall insert the', 35046:'provisions set forth in paragraphs a through d of this clause in subcontracts that may require or involve the employment', 35047:'of laborers and mechanics and require subcontractors to include these provisions in any such lower tier subcontracts. the contractor shall', 35048:'be responsible for compliance by any subcontractor or lowertier subcontractor with the provisions set forth in paragraphs a through d', 35049:'of this clause. end of clause 52.2206 subpart 52.2 text of provisions and clauses 52.2226 52.2225construction wagerate requirementssecondary site of', 35050:'the work. as prescribed in 22.407h, insert the following provision: construction wage rate requirementssecondary site of the work may 2014', 35051:'a 1theofferorshallnotifythegovernmentiftheofferorintendstoperformworkatanysecondarysiteofthework,as definedin paragraph a1ii of the far clause at 52.2226, construction wagerate requirements, of this solicitation. 2 if the', 35052:'offeroris unsure if a plannedwork site satisfies the criteria for asecondary site ofthe work, the offeror shall request a determination', 35053:'from the contracting officer. b 1 if the wage determination provided by the government for work at the primary site', 35054:'of the work is not applicable to thesecondary site ofthe work, theofferor shall request a wagedetermination from the contracting officer.', 35055:'2 the due date for receipt of offers will not be extended as a result of an offeror’s request for', 35056:'a wage determination for a secondary site of the work. end of provision 52.2226construction wagerate requirements. as prescribed in 22.407a,', 35057:'insert the following clause: construction wage rate requirements aug 2018 a definition.—site of the work— 1 means— i the primary', 35058:'site of the work. the physical place or places where the construction called for in the contract will remain when', 35059:'work on it is completed; and ii the secondary site of the work, if any. any other site where a', 35060:'significant portion of the building or work is constructed, provided that such site is a located in the united states;', 35061:'and b established specifically for the performance of the contract or project; 2 except as provided in paragraph 3 of', 35062:'this definition, includes any fabrication plants, mobile factories, batch plants, borrow pits, job headquarters, tool yards, etc., provided ithey are', 35063:'dedicatedexclusively, or nearly so, to performance of thecontract or project; and ii they are adjacent or virtually adjacent to the', 35064:'primary site of the work as defined in paragraph a1i, or the secondary site of the work as defined in', 35065:'paragraph a1ii of this definition; 3 does not include permanent home offices, branch plantestablishments, fabricationplants, or tool yards of a', 35066:'contractor or subcontractor whose locations and continuance in operation are determined wholly without regard to a particular federal contract or', 35067:'project. in addition, fabrication plants, batch plants, borrow pits, job headquarters, yards, etc., of a commercial or material supplier which', 35068:'are established by a supplier of materials for the project before opening of bids and not on the project site,', 35069:'are not included in the site of the work. such permanent, previously established facilities are not a part of the', 35070:'site of the work even if the operations for a period of time may be dedicated exclusively or nearly so,', 35071:'to the performance of a contract. b 1 all laborers and mechanics employed or working upon the site of the', 35072:'work will be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on', 35073:'any account except such payroll deductions as are permitted by regulations issued by the secretary of labor under the copeland', 35074:'act 29 cfr part 3, the full amount of wages and bona fide fringe benefits or cash equivalents thereof due', 35075:'at time of payment computed at rates not less than those contained in the wage determination of the secretary of', 35076:'labor which is attached hereto and made a part hereof, or as may be incorporated for a secondary site of', 35077:'the work, regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and', 35078:'mechanics. any wage determination incorporated for a secondary site of the work shall be effective from the first day on', 35079:'which workunder thecontract was performed at that site and shall be incorporated without any adjustment in contract price or estimated', 35080:'cost. laborers employed by the construction contractor or construction subcontractor that are transporting portions of the building or work between', 35081:'the secondary site of the work and the primary site of the work shall be paid in accordance with the', 35082:'wage determination applicable to the primary site of the work. 52.2207 52.2226 federal acquisition regulation 2 contributions made or costs', 35083:'reasonably anticipated for bona fide fringe benefits under section 1b2 of the construction wage raterequirements statute on behalf of laborers', 35084:'or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of paragraph e of this', 35085:'clause; also, regular contributions made or costs incurred for more than a weekly period but not less often than quarterly', 35086:'under plans, funds, or programs which cover the particular weekly period, are deemed to be constructively made or incurred during', 35087:'such period. 3 such laborers and mechanics shall be paid not less than the appropriate wage rate and fringe benefits', 35088:'in the wage determination for the classification of work actually performed, without regard to skill, except as provided in the', 35089:'clause entitled apprentices and trainees. laborers ormechanics performing work in more than one classification may be compensatedat the rate specifiedforeach', 35090:'classification for the time actually worked therein; providedthat the employer’s payroll records accurately set forth the time spent in each', 35091:'classification in which work is performed. 4 the wage determination including any additional classifications and wage rates conformed under paragraph', 35092:'c of this clause and theconstructionwage rate requirements davisbacon act posterwh1321 shall be posted atall times by the contractor and', 35093:'its subcontractorsat the primary site of the workandthe secondarysite of thework,if any, in a prominent and accessible place where it', 35094:'can be easily seen by the workers. c 1thecontractingofficershallrequirethatanyclassoflaborersormechanicswhichisnotlistedinthe wage determination and which is to be employed under the contract', 35095:'shall be classified in conformance with the wage determination. the contracting officer shall approve an additional classification and wage rate', 35096:'and fringebenefits therefor only when all the following criteria have been met: i the work to be performed by the', 35097:'classification requested is not performed by a classification in the wage determination. iithe classification is utilized in the area by', 35098:'the construction industry. iii the proposed wage rate, including any bona fide fringe benefits, bears a reasonable relationship to the', 35099:'wage rates contained in the wage determination. 2 if the contractor and the laborers and mechanics to be employed in', 35100:'the classification if known, or their representatives, and thecontracting officer agree on the classificationandwage rateincluding the amount designatedfor fringe benefits,', 35101:'where appropriate, a report of the action taken shall besent bythe contracting officerto the administrator of the: wage and hourdivision', 35102:'u.s. department of labor washington,dc 20210 the administrator oran authorized representative will approve, modify, or disapprove every additional classification action', 35103:'within 30 daysof receipt and so advise the contracting officer or will notify the contracting officer within the 30day period', 35104:'that additional timeis necessary. 3 in the event the contractor, the laborers ormechanicsto beemployed in the classification,or their representatives, and', 35105:'the contractingofficer do notagreeon the proposedclassification and wage rate includingthe amountdesignated for fringe benefits, where appropriate, the contracting officer shall', 35106:'referthe questions, including the views ofall interested parties and the recommendationof the contracting officer, to the administrator ofthe wage and', 35107:'hourdivision for determination. the administrator, or an authorizedrepresentative, will issuea determination within 30 daysof receipt and so advisethe contracting officeror', 35108:'will notify the contracting officer within the 30day periodthat additional timeis necessary. 4 the wage rate including fringe benefits, where', 35109:'appropriate determined pursuant to paragraphs c2 and c3 of this clause shall be paid to all workers performing work in', 35110:'the classification under this contract from the firstday on which work is performed in the classification. d whenever the minimum', 35111:'wage rate prescribed in the contract for a class of laborers or mechanics includes a fringe benefit which is not', 35112:'expressed as an hourly rate, the contractor shall either pay the benefit as stated in the wage determination or shall', 35113:'pay another bona fide fringe benefit or an hourly cash equivalent thereof. e if the contractor does not make payments', 35114:'to a trustee or other third person, the contractor may consider as part of the wages of any laborer or', 35115:'mechanic the amount of any costs reasonably anticipated in providing bona fide fringe benefits undera planor program; provided,that the secretaryof', 35116:'labor has found, upon the written request of the contractor, that the applicable standards of the construction wage rate requirementsstatutehavebeenmet.', 35117:'the secretary oflabor may require the contractor to set aside in a separate account assets for the meeting of obligations', 35118:'under the plan or program. end of clause 52.2208 subpart 52.2 text of provisions and clauses 52.2228 52.2227withholding of funds.', 35119:'as prescribed in 22.407a, insert the following clause: withholding of funds may 2014 the contracting officer shall, upon his or', 35120:'herown action or upon written request of an authorizedrepresentative of the department of labor, withhold or cause to be withheld', 35121:'from thecontractor under this contract or any other federal contract with the same prime contractor, oranyotherfederally assisted contract subject to', 35122:'prevailing wage requirements, which is heldby the same prime contractor, so much of theaccrued payments or advances as maybe considerednecessary', 35123:'to pay laborers and mechanics, including apprentices, trainees, and helpers, employed by the contractor or any subcontractor the full amount', 35124:'of wages required by the contract. in the event of failure to pay any laborer or mechanic, including any apprentice,', 35125:'trainee, orhelper, employed or working on thesite of thework,all or part of the wagesrequired by thecontract, thecontracting officer may, after', 35126:'writtennotice to the contractor, takesuch action as maybe necessary to cause the suspension of any further payment, advance, or guarantee', 35127:'of funds until such violations have ceased. end of clause 52.2228payrolls and basic records. as prescribed in 22.407a, insert the', 35128:'following clause: payrolls and basic records jul 2021 a payrolls and basic records relating thereto shall be maintained by the', 35129:'contractor during the course of the work and preserved for a period of 3 years thereafter for all laborers and', 35130:'mechanics working at the site of the work. such records shall contain the name, address, and social security number ofeach', 35131:'such worker,hisor her correct classification,hourly rates of wages paid including rates of contributions or costs anticipated for bona fide fringe', 35132:'benefits or cash equivalents thereof of the types described in 40 u.s.c. 31412b constructionwage rate requirement statute, daily and weekly', 35133:'number of hours worked, deductions made, and actual wages paid. whenever the secretary of labor has found, under paragraph d', 35134:'of the clauseentitled construction wage rate requirements, that thewages of any laborer ormechanic include theamount of any costs reasonably anticipated', 35135:'in providing benefits under a plan or program described in 40 u.s.c. 31412b, the contractor shall maintain records which show', 35136:'that the commitment to provide such benefits is enforceable, that the plan or program is financially responsible, and that the', 35137:'plan or program has been communicated in writing to the laborers or mechanics affected, and records whichshow the costs anticipated', 35138:'or the actual cost incurred in providing such benefits. contractors employing apprentices or trainees under approved programs shall maintain written', 35139:'evidence of the registration of apprenticeship programs and certification of trainee programs, the registration of the apprentices and trainees, and', 35140:'the ratios and wage rates prescribed in the applicable programs. b 1 the contractor shall submit weekly for each week', 35141:'in which any contract work is performed a copy of all payrolls to the contracting officer. the payrolls submitted shall', 35142:'set out accuratelyand completely all of the information required to be maintained under paragraph a of this clause, except that', 35143:'full social security numbers and home addresses shall not be included on weekly transmittals. instead the payrolls shall only need', 35144:'to include an individually identifying number for each employee e.g., the last four digits of theemployee’ssocial security number. the required', 35145:'weekly payroll information may be submitted in any form desired. optional form wh347 is available for this purpose and may', 35146:'be obtained from theu.s. department oflabor wageandhour division website at https://www.dol.gov/agencies/whd/forms. the prime contractor is responsible for the submission of', 35147:'copies of payrolls by all subcontractors. contractors and subcontractors shall maintain thefull social security numberandcurrent address of each coveredworker, and', 35148:'shall provide them upon request to the contracting officer, the contractor, orthe wage and hour division of the departmentof laborforpurposes', 35149:'of an investigation or audit of compliance with prevailing wage requirements. it is not a violation of this section for', 35150:'a prime contractor to require a subcontractor to provide addresses and social security numbers to the prime contractor for its', 35151:'own records, without weekly submission tothe contracting officer. 2 each payroll submitted shall be accompanied by a statement of compliance,', 35152:'signed by the contractor or subcontractor or his or her agent who pays or supervises the payment of the persons', 35153:'employed under the contract and shall certify52.2 209 52.2229 federal acquisition regulation i that the payroll for the payroll period', 35154:'contains the information required to be maintained under paragraph a of this clause and that such information is correct and', 35155:'complete; iithat each laborer or mechanic including each helper, apprentice,and traineeemployed on the contract during thepayroll period has been paid', 35156:'the full weekly wages earned, without rebate,either directly or indirectly, and that no deductions have been made either directly or', 35157:'indirectly from the full wages earned, other than permissible deductions as set forth in the regulations, 29 cfr part 3;', 35158:'and iii that each laborer or mechanic has been paid not less than the applicable wage rates and fringe benefits', 35159:'or cash equivalents for the classification of work performed, as specified in the applicable wage determination incorporated into the contract.', 35160:'3 the weekly submission of a properly executed certification set forth on the reverse side of optional form wh347 shall', 35161:'satisfy the requirement for submission of the statement of compliance required by paragraph b2 of this clause. 4 the falsification', 35162:'of any of the certifications in this clause may subject the contractor or subcontractor to civil or criminal prosecutionunder section1001', 35163:'of title 18 and section 3729 of title31 of theunited statescode. c the contractor or subcontractor shall make the records', 35164:'required under paragraph a of this clause available for inspection, copying, or transcription by the contracting officer or authorized representatives', 35165:'ofthe contracting officer or the departmentof labor. the contractor or subcontractor shall permit the contractingofficer or representatives of the contracting', 35166:'officeror the department of labor tointerview employeesduring working hours onthe job. ifthe contractor or subcontractor fails to submit requiredrecords or', 35167:'to make themavailable,the contracting officermay, after written notice to thecontractor, take such action as may be necessary to cause the', 35168:'suspension ofany further payment. furthermore, failure to submit the required records upon request or to make such records available may', 35169:'be grounds for debarment action pursuant to 29 cfr 5.12. end of clause 52.2229apprentices and trainees. as prescribed in 22.407a,', 35170:'insert the following clause: apprentices and trainees july 2005 a apprentices. 1 an apprentice will be permitted to work at', 35171:'less than the predetermined rate for the work performed when employed i pursuant to and individually registered in a bona', 35172:'fide apprenticeship program registered with the u.s. department of labor,employment andtraining administration, office of apprenticeshiptraining, employer,and labor services oatels or', 35173:'witha state apprenticeship agency recognized by the oatels; or ii in the first 90 days of probationary employment as an', 35174:'apprentice in such an apprenticeship program, even though not individuallyregisteredin theprogram, if certified by the oatelsor astate apprenticeship agency where', 35175:'appropriate to be eligible for probationary employment as an apprentice. 2 the allowable ratio of apprentices to journeymen on the', 35176:'job site in any craft classification shall not be greater than the ratio permitted to the contractor as to the', 35177:'entire work force under the registered program. 3 any worker listed on a payroll at an apprentice wage rate, who', 35178:'is not registered or otherwise employed as stated in paragraph a1 of this clause, shall be paid not less than', 35179:'the applicable wage determination for the classification of work actually performed. in addition, any apprentice performing work on the job', 35180:'site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage', 35181:'rate on the wage determination for the work actually performed. 4 where a contractor is performing construction on a project', 35182:'in a locality other than that in which its program is registered, the ratios and wage rates expressedin percentages of', 35183:'thejourneyman’s hourly rate specifiedin the contractor’s or subcontractor’s registered program shall be observed. every apprentice mustbe paid at not less', 35184:'than therate specified in the registered program for the apprentice’s level of progress, expressedas a percentage of the journeyman hourly', 35185:'rate specified in the applicable wage determination. 5 apprentices shall be paid fringe benefits in accordance with the provisions of', 35186:'the apprenticeship program. if the apprenticeship program does not specify fringe benefits, apprentices must be paid the full amount of', 35187:'fringe benefits listed on thewage determination for the applicable classification. if the administrator determines that a different practice prevailsfor the', 35188:'applicable apprentice classification, fringes shall be paid in accordance with that determination. 52.2210 subpart 52.2 text of provisions and clauses', 35189:'52.22211 6 in the event oatels,or astate apprenticeship agency recognized by oatels, withdraws approval of an apprenticeship program, the contractor', 35190:'will no longer be permitted to utilize apprentices at less than the applicable predetermined rate for the work performed until', 35191:'an acceptable program is approved. btrainees. 1 except as provided in 29 cfr 5.16, trainees will not be permitted to', 35192:'work at less than the predetermined rate for the work performed unless they are employed pursuant to and individually registered', 35193:'in a program which has received priorapproval,evidenced by formal certification bythe u.s. department of labor, employment and training administration, office', 35194:'of apprenticeshiptraining, employer,and labor services oatels. theratio of trainees to journeymen on the jobsite shall not begreater thanpermitted under the', 35195:'planapproved by oatels. 2 every trainee must be paid at not less than the rate specified in theapproved program for', 35196:'the trainee’slevel of progress, expressed as a percentage ofthe journeyman hourly ratespecified in the applicablewage determination. trainees shall be paid', 35197:'fringe benefits in accordance with the provisions of the trainee program. if the trainee program does not mention fringe benefits,', 35198:'trainees shall be paid the full amount of fringe benefits listed in the wage determination unless theadministratorof the wageandhour division', 35199:'determines that there is an apprenticeship program associated with the corresponding journeyman wage rate in the wage determination which provides', 35200:'for less than full fringe benefits for apprentices. any employee listed on the payroll at a trainee rate who is', 35201:'not registered and participating in a training plan approved by theoatels shall be paid not less than theapplicable wage rate', 35202:'in the wage determination for the classification of work actually performed. in addition, any trainee performing work on the job', 35203:'site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage', 35204:'rate in the wage determination for the work actually performed. 3 in the event oatels withdrawsapproval of a training program,', 35205:'the contractorwill no longerbe permitted to utilize trainees at less than the applicable predetermined rate for the work performed until', 35206:'an acceptable program is approved. c equal employment opportunity. the utilization of apprentices, trainees, and journeymen under this clause shall', 35207:'be in conformity with the equal employment opportunity requirements ofexecutive order11246, as amended,and 29 cfr part 30. end of clause', 35208:'52.22210 compliancewith copeland act requirements. as prescribed in 22.407a, insert the following clause: compliance with copeland act requirementsfeb 1988 the', 35209:'contractor shall comply with the requirements of 29 cfr part 3, which are hereby incorporated by reference in this contract.', 35210:'end of clause 52.22211 subcontracts labor standards. as prescribed in 22.407a, insert the following clause: subcontracts labor standards may 2014', 35211:'a definition. construction, alteration orrepair, as used in this clause, means all types of work done by laborers and mechanics', 35212:'employed by the construction contractor or construction subcontractor on a particular building or work at the site thereof, including without', 35213:'limitation 1 altering, remodeling, installationif appropriate on the site of the workof items fabricated offsite; 2 painting and decorating; 3', 35214:'manufacturing or furnishing of materials, articles, supplies, or equipment on the site of the building or work; 4 transportation of', 35215:'materials and supplies between the site of the work within the meaning of paragraphs a1i and iiof the site of', 35216:'the work as defined in the far clause at 52.2226, construction wage rate requirements of this contract, and a facility', 35217:'which is dedicated to the construction of the building or work and is deemed part of the site of the', 35218:'work within the meaning of paragraph 2 of the site of the work definition; and 5 transportation of portions ofthe', 35219:'building or work between a secondary site where a significantportion of the buildingor work is constructed,which is partof the siteof', 35220:'the work definition inparagraph a1ii ofthe far clauseat 52.2211 52.22212 federal acquisition regulation 52.2226, construction wagerate requirements, and the physical', 35221:'place or places where the building or workwill remain paragrapha1iof the far clause at 52.2226, in the site of the', 35222:'work definition. b the contractor shall insert in any subcontracts for construction, alterations and repairs within the united states the', 35223:'clauses entitled 1 construction wage raterequirements; 2 contractwork hours and safety standardsovertime compensationif theclause isincluded in this contract; 3 apprentices', 35224:'and trainees; 4 payrolls and basic records; 5 compliance with copeland act requirements; 6 withholdingof funds; 7 subcontracts labor standards;', 35225:'8 contractterminationdebarment; 9 disputes concerning labor standards; 10 compliance withconstructionwage rate requirements and related regulations; and 11 certification of eligibility.', 35226:'c the prime contractor shall be responsible for compliance by any subcontractor or lower tier subcontractor performing construction within the', 35227:'united states with all the contract clauses cited in paragraph b. d 1within14daysafterawardofthecontract,thecontractorshalldelivertothecontractingofficeracompleted standard form sf 1413, statement and acknowledgment,', 35228:'for each subcontract for construction within the united states, including the subcontractor’ssigned and dated acknowledgmentthat the clauses set forth in', 35229:'paragraph b of thisclause have been included in the subcontract. 2 within 14 days after the award of any subsequently', 35230:'awarded subcontract the contractor shall deliver to the contracting officeran updated completed sf 1413 for such additional subcontract. e the', 35231:'contractor shall insert the substance of this clause, including this paragraph e in all subcontracts for construction within the united', 35232:'states. end of clause 52.22212 contract terminationdebarment. as prescribed in 22.407a, insert the following clause: contract terminationdebarment may 2014 a', 35233:'breach of thecontract clausesentitled construction wage rate requirements, contract workhours and safety standardsovertime compensation, apprentices and trainees,payrolls and basic records,compliancewith', 35234:'copeland act requirements, subcontracts labor standards, compliance with construction wage raterequirements and related regulations, or certification of eligibility may be', 35235:'grounds for termination of the contract, and for debarment as a contractor and subcontractor as provided in 29 cfr 5.12.', 35236:'end of clause 52.22213 compliancewith construction wage rate requirements and related regulations. as prescribed in 22.407a, insert the following clause:', 35237:'compliance with construction wage rate requirements and related regulations may 2014 all rulings andinterpretations of the construction wage rate requirementsandrelated', 35238:'statutes containedin 29 cfrparts 1, 3, and 5 are hereby incorporated by reference in this contract. end of clause 52.22214', 35239:'disputes concerning labor standards. as prescribed in 22.407a, insert the following clause: 52.2212 subpart 52.2 text of provisions and clauses', 35240:'52.22218 disputes concerning labor standards feb 1988 the united states department of labor has set forth in 29 cfr parts', 35241:'5, 6, and 7 procedures for resolving disputes concerning labor standards requirements. such disputes shall be resolved in accordance with', 35242:'those procedures and not the disputes clause of this contract. disputes within the meaning of this clause include disputes between', 35243:'the contractor or any of its subcontractors and thecontracting agency, the u.s. department of labor,or the employees or their representatives.', 35244:'end of clause 52.22215 certification of eligibility. as prescribed in 22.407a, insert the following clause: certification of eligibility may 2014', 35245:'a by entering into this contract, the contractor certifies that neither it nor any person or firm who has an', 35246:'interest in the contractors firm is a person or firm ineligible to be awarded government contracts by virtue of 40', 35247:'u.s.c. 3144b2 or 29 cfr 5.12a1. b no part of this contract shall be subcontracted to any person or firm', 35248:'ineligible for award of a government contract by virtue of 40 u.s.c. 3144b2 or 29 cfr 5.12a1. c the penalty', 35249:'for making false statements is prescribed in the u.s. criminal code, 18 u.s.c. 1001. end of clause 52.22216 approval ofwage', 35250:'rates. as prescribed in 22.407b, insert the following clause: approval of wage rates may 2014 all straight time wage rates,', 35251:'and overtime rates based thereon, for laborers and mechanics engaged in work under this contract must be submitted for approval', 35252:'in writing by the head of the contracting activity or a representative expressly designated for this purpose, if the straight', 35253:'time wages exceed the rates for corresponding classifications contained in the applicable construction wage rate requirementsminimum wagedetermination included in the', 35254:'contract. any amount paid by the contractor to any laborer or mechanic in excess of the agency approved wage rate', 35255:'shall be at the expense of the contractor and shall not be reimbursed by the government. if the government refuses', 35256:'to authorize the use of the overtime, the contractor is not released from the obligation to pay employees at the', 35257:'required overtime rates for any overtime actually worked. end of clause 52.22217 [reserved] 52.22218 certification regarding knowledge ofchild labor forlisted', 35258:'end products. as prescribed in 22.1505a, insert the following provision: certification regarding knowledge of child labor for listed end products', 35259:'feb 2021 a definition. forced or indentured child labor means all work or service 1 exacted from any person under', 35260:'the age of 18 under the menace of any penalty for its nonperformance and for which theworker does not offer', 35261:'himself voluntarily; or 2 performed by any person under the age of 18 pursuant to a contract the enforcement of', 35262:'which can be accomplished by process or penalties. 52.2213 52.22219 federal acquisition regulation b listed end products. the following end', 35263:'products being acquired under this solicitation is are included in the list of products requiringcontractor certification as to forcedor indentured', 35264:'child labor, identified by theircountry of origin. there is a reasonable basis to believe that listed end products from the', 35265:'listed countries of origin may have been mined, produced, or manufactured by forced or indentured child labor. listed end product', 35266:'listed countries of origin c certification. thegovernmentwill not make award to an offeror unless theofferor,by checking theappropriateblock, certifies to either', 35267:'paragraph c1 or paragraph c2 of this provision. 1 □ theofferor will notsupplyany end product listed in paragraph b of', 35268:'this provision that was mined, produced,or manufactured in a corresponding country as listed for that end product. 2 □ theofferor', 35269:'may supply an end product listed in paragraph b of this provision that was mined, produced,or manufacturedin the corresponding country', 35270:'as listedforthat product. the offeror certifies that it has made a goodfaith effort to determine whether forced or indentured child', 35271:'labor was used to mine, produce, or manufacture such end product. on the basis of those efforts, the offeror certifiesthat', 35272:'it isnot aware ofanysuch use of child labor. end of provision 52.22219 child laborcooperation with authorities and remedies. as prescribed', 35273:'in 22.1505b, insert the following clause: child laborcooperation with authorities and remedies feb 2024 a applicability. this clause does not', 35274:'apply to the extent that the contractor is supplying end products mined, produced, or manufactured in 1 israel, and the', 35275:'anticipated value of the acquisition is $50,000 or more; 2 mexico, and the anticipated value of the acquisition is $102,280', 35276:'or more; or 3 armenia, aruba, australia, austria, belgium, bulgaria, canada, croatia, cyprus, czech republic, denmark, estonia, finland,france, germany, greece,', 35277:'hong kong, hungary, iceland, ireland, italy,japan, korea, latvia, liechtenstein, lithuania, luxembourg, malta, moldova, montenegro, netherlands, new zealand, north macedonia, norway,', 35278:'poland, portugal, romania, singapore, slovakrepublic, slovenia, spain, sweden, switzerland, taiwan, ukraine, or the united kingdom and the anticipated value of', 35279:'the acquisition is $174,000 or more. b cooperation with authorities. to enforce the lawsprohibitingthe manufacture or importation ofproducts mined, produced,', 35280:'or manufactured byforced or indentured childlabor, authorized officials may need to conduct investigationsto determine whether forced or indentured child labor', 35281:'was used to mine, produce, or manufacture any product furnished under this contract. if the solicitation includes the provision 52.22218,', 35282:'certification regarding knowledge of child labor for listed end products, or the equivalent at 52.2123i, thecontractor agrees to cooperate fully', 35283:'withauthorized officials of the contracting agency, the department of the treasury, or thedepartment ofjustice by providing reasonableaccess to records, documents,persons,', 35284:'or premises upon reasonable request by the authorized officials. c violations. the government may impose remedies set forth in paragraph', 35285:'d for the following violations: 1 the contractor has submitted a false certification regarding knowledge of the use of forced', 35286:'or indentured child labor for listed end products. 2 the contractor has failed to cooperate, if required, in accordance with', 35287:'paragraph b of this clause, with an investigation of the use of forced or indentured child labor by an inspector', 35288:'general, attorney general, or the secretary of the treasury. 3 the contractor uses forced or indentured child labor in its', 35289:'mining, production, or manufacturing processes. 4 the contractor has furnished under the contract end products or components that have been', 35290:'mined, produced, or manufacturedwholly or inpart by forcedor indentured child labor. the government will not pursueremedies at paragraph d2 orparagraph', 35291:'d3 of this clauseunlesssufficient evidence indicates that the contractor knewof the violation. d remedies. 1 the contracting officer may terminate', 35292:'the contract. 52.2214 subpart 52.2 text of provisions and clauses 52.22222 2thesuspendingofficialmaysuspendthecontractorinaccordancewithproceduresinfar subpart 9.4. 3 the debarring official may debar', 35293:'the contractor for a period not to exceed 3years in accordance withthe proceduresinfar subpart 9.4. end of clause 52.22220 contracts', 35294:'for materials, supplies, articles, and equipment. as prescribed in 22.610, insert the following clause in solicitations and contracts: contracts for', 35295:'materials, supplies, articles, and equipment jun 2020 if this contract is for the manufacture or furnishing of materials, supplies, articles', 35296:'or equipment in an amount that exceeds or may exceed the threshold specified in federal acquisition regulation 22.602 on the', 35297:'date of award of this contract, and is subject to 41 u.s.c. chapter 65, the following terms and conditions apply:', 35298:'a all stipulations required by 41 u.s.c. chapter 65 and regulations issued by the secretary of labor 41 cfr chapter', 35299:'50 are incorporated by reference. these stipulations are subject to all applicable rulings and interpretations of the secretary of labor', 35300:'thatare now, or may hereafter, be in effect. b all employees whose work relates to this contract shall be paid', 35301:'not less than the minimum wage prescribed by regulations issued by the secretary of labor 41 cfr 50202.2. learners, student', 35302:'learners, apprentices, and workers with disabilities may be employed at less than the prescribed minimum wage see 41 cfr 50202.3', 35303:'to the same extent that such employment is permitted under section 14 of the fair labor standards act 41 u.s.c.', 35304:'6508. end of clause 52.22221 prohibitionof segregated facilities. as prescribed in 22.810a1, insert the following clause: prohibition of segregated facilities', 35305:'apr 2015 a definitions. as used in this clause gender identity has the meaning given by the department of labor’s', 35306:'officeof federal contract compliance programs, and is found at http://www.dol.gov/ofccp/lgbt/lgbtfaqs.html. segregated facilities, means any waiting rooms, work areas, rest rooms', 35307:'and wash rooms, restaurants and other eating areas, time clocks, locker rooms and other storage or dressing areas, parking lots,', 35308:'drinking fountains, recreation or entertainment areas, transportation, and housing facilities provided for employees, that are segregated by explicit directive or', 35309:'arein factsegregated onthe basis ofrace, color, religion, sex, sexual orientation, genderidentity, or national origin because of written or oral policies', 35310:'or employee custom. the term does not include separate or singleuser rest rooms or necessary dressing or sleeping areas provided', 35311:'to assure privacy between the sexes. sexual orientation hasthe meaninggiven bythe department of labor’s office offederal contract compliance programs, and', 35312:'is found at http://www.dol.gov/ofccp/lgbt/lgbtfaqs.html. b the contractor agrees that it does not and will not maintain or provide for its', 35313:'employees any segregated facilities at any of its establishments, and that it does not and will not permit its employees', 35314:'to perform their services at any location under its control where segregated facilities are maintained. the contractor agrees that a', 35315:'breach of this clause is a violation of the equal opportunity clause in this contract. c the contractor shall include', 35316:'this clause in every subcontract and purchase order that is subject to the equal opportunity clause of this contract. end', 35317:'of clause 52.22222 previous contracts and compliance reports. as prescribed in 22.810a2, insert the following provision: previous contracts and compliance', 35318:'reports feb 1999 52.2215 52.22223 federal acquisition regulation the offeror represents that it □ has, □ has not participated in', 35319:'a previous contract or subcontract subject to the equal opportunity clause of this solicitation; it □ has, □ has not', 35320:'filed all required compliance reports; and representations indicating submission of required compliance reports, signed by proposed subcontractors, will be obtained', 35321:'before subcontract awards. end of provision 52.22223 noticeof requirement for affirmative action to ensure equal employment opportunityfor construction. as prescribed', 35322:'in 22.810b, insert the following provision: notice of requirement for affirmative action to ensure equal employment opportunity for construction feb', 35323:'1999 a theofferor’s attention is calledto the equal opportunity clause andthe affirmative action compliance requirements for construction clause of this', 35324:'solicitation. b the goals for minorityandfemale participation, expressed in percentage terms for the contractor’s aggregate workforce in each trade on', 35325:'all construction work in the covered area, are as follows: goals for minority participation for eachtrade goals for female participation', 35326:'for eachtrade [ contracting officer shall insert goals][ contracting officer shall insert goals] these goals are applicable to all the', 35327:'contractor’s construction work performed in the coveredarea. if thecontractor performs construction work in a geographical area located outside of the', 35328:'covered area, the contractor shall apply the goals established for the geographical area where the work is actually performed. goals', 35329:'are published periodically in the federal register in notice form,and thesenotices may be obtained from any office of federalcontract compliance', 35330:'programs office. c thecontractor’s compliancewith executive order11246, as amended, andthe regulations in 41 cfr 604 shall be basedon 1 its', 35331:'implementation ofthe equal opportunity clause,2specific affirmative action obligations required bythe clause entitled affirmative action compliance requirements for construction, and 3', 35332:'its efforts tomeet thegoals. the hours of minority and female employment and training must be substantially uniform throughout the length', 35333:'of the contract, and in each trade. the contractor shall make a good faith effort toemploy minoritiesandwomenevenly oneach of its', 35334:'projects. thetransferof minority or female employees or traineesfrom contractor to contractor, or from project toproject, for thesolepurpose of meeting the', 35335:'contractor’s goals shall be a violation of thecontract, executive order11246, as amended, and the regulations in 41 cfr 604. compliance', 35336:'with the goals will be measured against the total work hours performed. d the contractor shall provide written notification to', 35337:'the deputy assistant secretary for federal contract compliance, u.s. department of labor, within 10 workingdays following award of any construction', 35338:'subcontract in excess of $10,000 at any tier for construction work under the contract resulting from this solicitation. the notification', 35339:'shall list the 1 name, address, and telephone number of the subcontractor; 2 employer’s identification number of the subcontractor; 3', 35340:'estimated dollar amount of the subcontract; 4 estimated starting and completion dates of the subcontract; and 5 geographical area in', 35341:'which the subcontract is to be performed. e as used in this notice, and in any contract resulting from this', 35342:'solicitation, the covered area is [contracting officer shall insert description of the geographical areas where the contract is to be', 35343:'performed, giving the state, county, and city]. end of provision 52.22224 preaward onsite equal opportunity complianceevaluation. as prescribed in 22.810c,', 35344:'insert the following provision: 52.2216 subpart 52.2 text of provisions and clauses 52.22226 preaward onsite equal opportunity compliance evaluation feb', 35345:'1999 if a contract in the amount of $10 million or more will result from this solicitation, the prospective contractor', 35346:'and its known firsttier subcontractors with anticipated subcontracts of $10 million or more shall be subject to a preaward complianceevaluation', 35347:'by the officeof federal contract compliance programs ofccp, unless,within the preceding 24 months, ofccp has conducted an evaluation and found', 35348:'the prospective contractor and subcontractors to be in compliance with executiveorder11246. end of provision 52.22225 affirmative action compliance. as prescribed', 35349:'in 22.810d, insert the following provision: affirmative action compliance apr 1984 the offeror represents that a it □ has developed', 35350:'and has on file, □ hasnot developed and does not have on file, at each establishment, affirmative action programs required', 35351:'by the rules and regulations of the secretary of labor 41 cfr 601 and 602; or b it □ has', 35352:'not previously hadcontracts subject to the written affirmative action programsrequirementof the rules and regulations of thesecretary of labor. end of', 35353:'provision 52.22226 equal opportunity. as prescribed in 22.810e, insert the following clause: equal opportunity sept 2016 a definition. as used', 35354:'in this clause. compensation meansany paymentsmade to, or onbehalf of, an employee oroffered to an applicant as remuneration for employment,', 35355:'including butnot limited to salary, wages, overtime pay, shift differentials, bonuses, commissions,vacation and holiday pay, allowances, insuranceandotherbenefits, stock options and', 35356:'awards, profit sharing,and retirement. compensation information means the amount and type of compensationprovided to employees or offered to applicants, including,', 35357:'but not limited to, the desire of the contractor to attract and retain a particular employee for the value the', 35358:'employee is perceived to add to the contractors profit or productivity; the availability of employees with like skills in the', 35359:'marketplace; market research about the worth of similar jobs in the relevant marketplace; job analysis, descriptions, and evaluations; salary and', 35360:'pay structures; salary surveys; labor union agreements; and contractor decisions, statements and policies related to setting or altering employee compensation.', 35361:'essential job functions means the fundamental job duties of the employment position an individual holds. a job function may be', 35362:'considered essential if 1 the access to compensation information is necessary in order to perform that function or another routinely', 35363:'assigned business task; or 2 the function or duties of the position include protecting and maintaining the privacy of employee', 35364:'personnel records, including compensation information. gender identity has the meaning given by the department of labor’s officeof federal contract compliance', 35365:'programs, and is found at http://www.dol.gov/ofccp/lgbt/lgbtfaqs.html. sexual orientation hasthe meaninggiven bythe department of labor’s office offederal contract compliance programs, and', 35366:'is found at http://www.dol.gov/ofccp/lgbt/lgbtfaqs.html. united states, means the 50 states, the district of columbia, puerto rico, the northern mariana islands,', 35367:'american samoa, guam, the u.s. virginislands, and wake island. b 1 if, during any 12month period including the 12 months', 35368:'preceding the award of this contract, the contractor has been or is awarded nonexempt federal contracts and/or subcontracts that have', 35369:'an aggregate value in excess of $10,000, the contractor shall comply with this clause, except for work performed outside the', 35370:'united states by employees who were 52.2217 52.22226 federal acquisition regulation not recruited within the united states. upon request, the', 35371:'contractor shall provide information necessary to determine the applicability of this clause. 2 if the contractor is a religious corporation,association,', 35372:'educational institution, or society, therequirements of this clause do not apply with respect to the employment of individuals of a', 35373:'particular religion to perform work connected with the carrying onof the contractor’s activities 41 cfr 601.5. c 1thecontractorshallnotdiscriminateagainstanyemployeeorapplicantforemploymentbecauseofrace,color, religion, sex,', 35374:'sexual orientation, genderidentity, or national origin. however, it shall not be a violationof this clause for the contractor to extend', 35375:'a publicly announced preference in employment to indians living on or near an indian reservation, in connection with employment opportunities', 35376:'on or near an indian reservation, as permitted by 41 cfr 601.5. 2 the contractor shall takeaffirmativeaction to ensurethat applicants', 35377:'are employed, and that employees are treated during employment, withoutregard totheir race, color,religion, sex, sexual orientation,gender identity,or national origin. this', 35378:'shall include, but not be limited to i employment; ii upgrading; iii demotion; iv transfer; v recruitment or recruitment advertising;', 35379:'vi layoff or termination; vii rates of pay or other forms of compensation; and viii selection for training, including apprenticeship.', 35380:'3 the contractor shall post in conspicuous places available to employees and applicants for employment the notices to be provided', 35381:'by the contractingofficer that explainthis clause. 4 the contractor shall, inallsolicitationsor advertisements for employees placed by or on behalf of', 35382:'the contractor, state that all qualifiedapplicants will receive consideration for employment withoutregard to race, color, religion, sex,sexual orientation, gender identity,', 35383:'ornationalorigin. 5 ithecontractorshallnotdischargeorinanyothermannerdiscriminateagainstanyemployeeorapplicant for employment because such employee or applicant has inquired about, discussed, or disclosed the compensation of the', 35384:'employee or applicant or another employee or applicant. this prohibition against discrimination does not apply to instances in which an', 35385:'employee who has access to the compensation information of other employees or applicants as a part of such employees essential', 35386:'job functions discloses the compensation of such other employees or applicants to individuals who do nototherwise have access to such', 35387:'information, unless such disclosure is in response to aformal complaint or charge, in furtherance of aninvestigation, proceeding, hearing, or action,', 35388:'including an investigation conducted by the employer, or is consistent with the contractors legal duty to furnish information. ii the', 35389:'contractor shall disseminate the prohibition on discrimination in paragraph c5i of this clause, using language prescribed by the director of', 35390:'theofficeof federal contractcomplianceprograms ofccp, to employees and applicants by a incorporation into existing employee manuals or handbooks; and b electronic', 35391:'posting or by posting a copy of the provision in conspicuous places available to employees and applicants for employment. 6', 35392:'the contractor shall send,to each labor union or representative of workers with which it has a collective bargaining agreementor other', 35393:'contractor understanding, the notice tobe provided by thecontracting officer advising thelabor union or workers’ representative of thecontractor’s commitments underthisclause, and', 35394:'post copies of the notice in conspicuous places available to employees and applicants for employment. 7 the contractor shall comply', 35395:'withexecutive order11246, asamended, and the rules, regulations, and orders of the secretary of labor. 8 the contractor shall furnish tothe', 35396:'contracting agency all information required by executive order11246, as amended, and bythe rules,regulations, and orders of the secretary of labor.', 35397:'the contractor shall also file standard form100 eeo1, or any successor form, as prescribed in 41 cfr part 601. unless', 35398:'the contractor has filed within the 12 months preceding the date of contract award, the contractor shall, within 30 days', 35399:'after contract award, apply to either the regional office of federal contract compliance programs ofccp orthe localoffice of the equal', 35400:'employment opportunity commission for the necessary forms. 9 the contractor shall permit access to its premises, during normal business hours,', 35401:'by the contracting agency or the ofccp for the purpose of conducting onsite compliance evaluations and complaint investigations. the contractor', 35402:'52.2218 subpart 52.2 text of provisions and clauses 52.22227 shall permit the government to inspect and copy any books, accounts,', 35403:'records including computerized records, and other material that may berelevant to thematter under investigation and pertinent tocompliance with executive order11246,as', 35404:'amended, and rules and regulations that implement the executive order. 10 if the ofccp determines that the contractor is not', 35405:'in compliance with this clause or any rule, regulation, or order of the secretary of labor, this contract may be', 35406:'canceled,terminated, or suspended in whole or in part and the contractor may be declared ineligible for further government contracts, underthe', 35407:'procedures authorized in executiveorder11246, as amended. in addition, sanctions may be imposed and remedies invoked against the contractor as provided', 35408:'in executive order11246, as amended; in the rules, regulations, and orders of the secretary of labor; or as otherwise provided', 35409:'by law. 11 the contractor shall includethe terms and conditions of this clause in every subcontract or purchase order that', 35410:'is not exempted by the rules, regulations,or orders of thesecretaryof laborissuedunder executiveorder11246, as amended, so thatthese terms and conditions will', 35411:'be binding uponeach subcontractor or vendor. 12 the contractor shall take such action with respect to any subcontract or purchase', 35412:'order as the director of ofccp may direct as a means of enforcing these terms and conditions, including sanctions for', 35413:'noncompliance, provided, that if the contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as', 35414:'a result of any direction, the contractor may request the united states to enter into the litigation to protect the', 35415:'interests of the united states. d notwithstanding any other clause in this contract, disputes relative to this clause will be', 35416:'governed by the procedures in 41 cfr 601. end of clause alternate i feb 1999. as prescribed in 22.810e, add', 35417:'the following as a preamble to the clause: notice: the following terms of this clause are waived for this contract:', 35418:'[contracting officer shall list terms]. 52.22227 affirmative action compliance requirements for construction. as prescribed in 22.810f, insert the following clause:', 35419:'affirmative action compliance requirements for construction apr 2015 a definitions. as used in this clause covered area means the geographical', 35420:'area described in the solicitation for this contract. deputy assistant secretary, means the deputy assistant secretaryforthe office of federalcontract compliance', 35421:'programs, u.s. department of labor, or a designee. employer identification number, means the federal socialsecurity number usedon the employer’s quarterlyfederal', 35422:'tax return,u.s. treasury department form941. gender identity has the meaning given by the department of labor’s officeof federal contract compliance', 35423:'programs, and is found at http://www.dol.gov/ofccp/lgbt/lgbtfaqs.html. minority, as used in this clause, means 1 american indian or alaskan native all', 35424:'persons having origins in any of the original peoples of north america and maintainingidentifiable tribal affiliationsthroughmembership and participation or community', 35425:'identification. 2 asian and pacific islander all persons having origins in any of the original peoples of the far east,', 35426:'southeast asia, the indian subcontinent, or the pacific islands; 3 black all persons having origins in any of the black', 35427:'african racial groups not of hispanic origin; and 4 hispanic all persons of mexican, puerto rican, cuban, central or south', 35428:'american, or other spanish culture or origin, regardless of race. sexual orientation hasthe meaninggiven bythe department of labor’s office offederal', 35429:'contract compliance programs, and is found at http://www.dol.gov/ofccp/lgbt/lgbtfaqs.html. b if the contractor, ora subcontractor at any tier, subcontracts a portionof', 35430:'the work involving anyconstruction trade, each such subcontract in excess of $10,000 shall include this clause and the notice containing', 35431:'the goals for minority and female participation stated in the solicitation for this contract. c if the contractor is participating', 35432:'in a hometown plan 41 cfr 604 approved by the u.s. department of labor in a covered area, eitherindividually or', 35433:'through an association, its affirmative actionobligations onall workin theplan area including goals shall comply with the plan for those trades', 35434:'that have unions participating in the plan. contractors must be able to demonstrate participation in, and compliance with, the provisions', 35435:'of the plan. each contractor or subcontractor 52.2219 52.22227 federal acquisition regulation participating in an approved plan is also required', 35436:'to comply with its obligations under the equal opportunity clause, and to make a good faith effort toachieveeach goal under', 35437:'the plan in each trade in which it has employees. the overall goodfaith performanceby other contractors or subcontractorstoward a goalin', 35438:'anapproved plandoes not excuseany contractor’s or subcontractor’s failure to make goodfaith efforts to achieve the plan’sgoals. d the contractor shall', 35439:'implement the affirmative actionprocedures in paragraphsg1 through 16 ofthis clause. the goals stated in the solicitation for this contract are', 35440:'expressed as percentages of the total hours of employment and training of minority and female utilization that the contractor should', 35441:'reasonably be able to achieve in each construction trade in which it has employees in the covered area. if the', 35442:'contractor performs construction work in a geographical area located outside of the covered area, it shall apply the goals established', 35443:'for the geographical area where that work is actually performed. the contractor is expected to make substantially uniform progress toward', 35444:'its goals in each craft. e neither the terms and conditions of any collective bargaining agreement, nor the failure bya', 35445:'union with which the contractor has acollective bargaining agreement, to refer minorities or women shall excuse the contractor’s obligations underthis', 35446:'clause, executive order11246, as amended, orthe regulations thereunder. f in order for the nonworking training hours of apprentices and trainees', 35447:'to be counted in meeting the goals, apprentices and trainees must be employed by the contractor during the training period,', 35448:'and the contractor must have made a commitment to employ the apprentices and trainees at the completion of their training,', 35449:'subject to the availability of employment opportunities. traineesmust be trained pursuant to training programs approved by theu.s. department of labor.', 35450:'g the contractor shall takeaffirmativeaction to ensureequalemploymentopportunity. the evaluation ofthe contractor’scompliance with this clause shall be basedupon its effort to', 35451:'achieve maximumresults fromits actions. the contractor shall document these effortsfully and implementaffirmativeaction steps at least as extensive asthe following: 1', 35452:'ensure a working environment free of harassment, intimidation, and coercion at all sites and in all facilities where thecontractor’s employees', 35453:'are assigned towork. the contractor, if possible, willassigntwo ormore women to each construction project. the contractor shall ensure that foremen,', 35454:'superintendents, and other onsite supervisory personnel areaware of and carry out the contractor’s obligation to maintain such a working environment,', 35455:'withspecific attention to minority or female individuals working at these sites or facilities. 2 establish and maintain a current list', 35456:'of sources for minority and female recruitment. provide written notification to minority and female recruitment sources and community organizations when', 35457:'the contractoror its unions have employment opportunities available, and maintain a recordof the organizations’ responses. 3 establish and maintain a', 35458:'current file of the names, addresses, and telephone numbers of each minority and female offthestreet applicant,referrals of minorities orfemales from', 35459:'unions, recruitment sources,or community organizations,and the action taken with respect to each individual. if an individual was sent to the', 35460:'union hiring hall for referral and not referred back to the contractor by the union or, if referred back, not', 35461:'employed by the contractor, this shall be documented in thefile, along with whatever additional actions the contractor may have taken.', 35462:'4 immediately notify the deputy assistant secretary when the union or unions with which the contractor has a collective bargaining', 35463:'agreement has not referred back to thecontractor a minority or woman sent by thecontractor, or when the contractor hasother information', 35464:'that the union referral process has impededthe contractor’sefforts to meet its obligations. 5 develop onthejob training opportunities and/or participate in', 35465:'training programs for the area that expressly include minorities andwomen, including upgrading programs and apprenticeship and trainee programs relevantto thecontractor’s', 35466:'employment needs, especially those programs funded or approved by the department of labor. the contractor shall provide notice of these', 35467:'programs to the sources compiled under paragraph g2 of this clause. 6 disseminate the contractor’s equal employment policy by i', 35468:'providing notice of the policy to unions and to training, recruitment, and outreach programs, and requesting their cooperation in assisting', 35469:'the contractor in meeting its contract obligations; iiincludingthe policy inany policymanual andin collective bargaining agreements; iii publicizing the policy in', 35470:'the company newspaper, annual report, etc. ; iv reviewing the policy with all management personnel and with all minority and', 35471:'female employees at least once a year; and v posting the policy on bulletin boards accessible to employees at each', 35472:'location where construction work is performed. 7 review, atleast annually, the contractor’s equal employment policy and affirmative action obligations with', 35473:'all employees having responsibilityforhiring, assignment, layoff, termination, or other employment decisions. conduct review 52.2220 subpart 52.2 text of provisions and', 35474:'clauses 52.22227 of this policy with all onsite supervisory personnel before initiating construction work at a job site. a written', 35475:'record shall be made and maintained identifying the time and place of these meetings, persons attending, subject matter discussed, and', 35476:'disposition of the subject matter. 8 disseminate the contractor’s equal employment policy externally by including it in any advertising in', 35477:'the news media, specifically including minority and female news media. provide written notification to, and discuss this policy with, other', 35478:'contractors and subcontractors with which the contractor does or anticipates doing business. 9 direct recruitment efforts, both oral and written,', 35479:'to minority, female, and community organizations, toschools with minority and female students,andto minority and female recruitment andtraining organizations serving thecontractor’s', 35480:'recruitment area and employment needs. not later than 1 month before the date for acceptance of applications for apprenticeship ortraining', 35481:'byanyrecruitment source, sendwritten notificationto organizations suchas the above, describing the openings, screening procedures, and tests to be used in the', 35482:'selection process. 10 encourage present minority and female employees to recruit minority persons and women. where reasonable, provide afterschool,summer, and', 35483:'vacation employment tominority and female youth both on thesite and inotherareas of thecontractor’s workforce. 11 validate all tests and other', 35484:'selection requirements where required under 41 cfr 603. 12 conduct,at least annually, an inventory and evaluation atleast of all minorityandfemale', 35485:'personnel for promotional opportunities. encourage these employeesto seek or to prepare for,throughappropriatetraining, etc., opportunities for promotion. 13 ensure that seniority', 35486:'practices, job classifications, work assignments, and other personnel practices do not have a discriminatory effect by continually monitoring all personnel', 35487:'and employmentrelated activities toensure that the contractor’sobligations under this contract are being carried out. 14 ensure that all facilities and', 35488:'company activities are nonsegregated except that separate or singleuser rest rooms and necessary dressing or sleeping areas shall be provided', 35489:'to assure privacy between the sexes. 15 maintain a record of solicitations for subcontracts for minority and female construction contractors', 35490:'and suppliers, including circulation of solicitations to minority and female contractor associations and other business associations. 16 conduct areview, at', 35491:'least annually, of allsupervisors’ adherence to and performance under the contractor’s equal employment policy and affirmative action obligations. h the', 35492:'contractor is encouraged to participate in voluntary associations that may assist in fulfilling one or more of theaffirmativeaction obligationscontained inparagraphs', 35493:'g1 through 16of this clause. the efforts of a contractor association,joint contractorunion,contractorcommunity, orsimilargroup of which the contractor is a member', 35494:'and participant may be asserted as fulfilling one or more of its obligations under paragraphs g1 through 16 of this', 35495:'clause, provided, the contractor 1 actively participates in the group; 2 makes every effort toensure that the group has apositive', 35496:'impact on the employment of minoritiesandwomenin the industry; 3 ensuresthat concrete benefits of the program are reflected in the contractor’s', 35497:'minority and femaleworkforce participation; 4 makes a goodfaith effort to meet its individualgoals and timetables; and 5 can provide accessto', 35498:'documentation that demonstrates the effectiveness of actionstakenon behalfof the contractor. the obligation to comply is the contractor’s, and failure ofsuch', 35499:'a group tofulfill an obligation shall not be a defense for the contractor’s noncompliance. i a single goal for minorities', 35500:'and a separate single goal for women shall be established. the contractor is required to provide equal employment opportunity and', 35501:'totake affirmative action for all minority groups, both maleand female, and all women, both minority and nonminority. consequently, the contractor', 35502:'may be in violation of executive order11246, as amended, if a particular groupis employed in a substantially disparate manner. jthe', 35503:'contractorshallnot use goals oraffirmativeaction standards todiscriminate against any person becauseof race, color,religion, sex, sexual orientation,gender identity,or national origin. k the', 35504:'contractor shall not enter into any subcontract with any person or firm debarred from government contracts under executive order11246, as', 35505:'amended. l the contractor shall carry out such sanctions and penalties for violation of this clause and of the equal', 35506:'opportunity clause, including suspension, termination, and cancellation of existing subcontracts, as may be imposed or ordered under executive order11246, as', 35507:'amended, and its implementing regulations, bythe ofccp. any failure to carry out these sanctions and penalties as ordered shall bea', 35508:'violation of this clause and executive order11246, as amended. 52.2221 52.22228 federal acquisition regulation m the contractor in fulfillingits obligations', 35509:'under this clause shall implement affirmative action procedures at least as extensive as those prescribedin paragraph g of this clause,', 35510:'so as toachieve maximum results from its efforts to ensureequal employment opportunity. if the contractor fails to comply with the', 35511:'requirements of executiveorder11246, as amended, the implementing regulations, or this clause, the deputy assistant secretary shall take action as prescribed', 35512:'in 41 cfr 604.8. n the contractor shall designate a responsible official to 1 monitor all employmentrelated activity to ensure', 35513:'thatthe contractor’sequal employment policyis being carried out; 2 submit reports as may be required by the government; and 3 keeprecordsthat', 35514:'shall at least include for each employee the name, address,telephone number, construction trade, union affiliation ifany, employeeidentification number, social security', 35515:'number, race, sex, status e.g., mechanic, apprentice, trainee, helper, or laborer, dates of changes in status, hours worked per week', 35516:'in the indicated trade, rate of pay, and locations at which the work was performed. records shall be maintained in', 35517:'an easily understandable and retrievable form; however, to the degree that existing records satisfy this requirement, separate records are not', 35518:'required to be maintained. o nothing contained herein shall beconstrued as a limitation upon the application of other lawsthat establish', 35519:'different standards of compliance or upon the requirements for the hiring of local or other area residents e.g., those under', 35520:'the public works employment act of1977 and the community development blockgrant program. end of clause 52.22228 [reserved] 52.22229 notification of', 35521:'visa denial. as prescribed in 22.810g, insert the following clause: notification of visa denial apr 2015 a definitions. as used', 35522:'in this clause gender identity has the meaning given by the department of labor’s officeof federal contract compliance programs, and', 35523:'is found at http://www.dol.gov/ofccp/lgbt/lgbtfaqs.html. sexual orientation hasthe meaninggiven bythe department of labor’s office offederal contract compliance programs, and is found', 35524:'at http://www.dol.gov/ofccp/lgbt/lgbtfaqs.html. brequirementtonotify. 1itisaviolationofexecutiveorder11246foracontractortorefusetoemployany applicant or not to assign any person hired in the united states, puerto rico, the northern', 35525:'mariana islands, american samoa, guam, the u.s. virginislands, or wakeisland, on the basis that the individuals race, color, religion, sex,sexual', 35526:'orientation, genderidentity, or national origin is notcompatible with thepolicies of the country where or for whom the work willbe performed', 35527:'41 cfr 601.10. 2 the contractor shall notify the u.s. department of state, assistantsecretary, bureau ofpoliticalmilitary affairs pm, 2201 cstreet', 35528:'nw, room 6212, washington, dc 20520, and theu.s. department oflabor, deputy assistant secretary for federal contract compliance, when it has', 35529:'knowledge of any employee or potential employee being denied anentry visa to a country where this contract will be performed,', 35530:'and it believes the denialis attributableto the race, color, religion, sex, sexual orientation, genderidentity, or national origin of the employee', 35531:'or potential employee. end of clause 52.22230 construction wage raterequirementsprice adjustment none or separately specified method. as prescribed in 22.407e,', 35532:'insert the following clause: construction wage rate requirementsprice adjustment none or separately specified method aug 2018 a thewage determination issued', 35533:'under the construction wage rate requirements statute by theadministrator, wage and hour division, u.s. department of labor,that is effective for', 35534:'an option to extend the term of the contract, will applyto that option period. 52.2222 subpart 52.2 text of provisions', 35535:'and clauses 52.22232 b the contracting officer will make no adjustment in contract price, other than provided for elsewhere in', 35536:'this contract, to cover any increases or decreases in wages and benefits as a result of 1 incorporation of the', 35537:'department of labor’s wage determination applicableat the exercise ofthe option to extend the term of the contract; 2 incorporation of', 35538:'a wage determination otherwise applied to the contract by operation of law; or 3 an increase in wages and benefits', 35539:'resulting from any other requirement applicable to workers subject to the construction wage raterequirements statute. end of clause 52.22231 construction', 35540:'wage raterequirementsprice adjustment percentage method. as prescribed in 22.407f, insert the following clause: construction wage rate requirementsprice adjustment percentage method', 35541:'aug 2018 a thewage determination issued under the construction wage rate requirements statute by theadministrator, wage and hour division, u.s.', 35542:'department of labor,that is effective for an option to extend the term of the contract, will applyto that option period.', 35543:'b the contracting officer will adjust the portion of the contract price or contractunit prices containing the laborcosts subject to', 35544:'the construction wage rate requirements statute to provide for an increase in wagesand fringe benefits atthe exercise of each option', 35545:'to extend the term of the contract in accordance with the following procedures: 1 the contracting officer has determined thatthe', 35546:'portion of the contract price or contract unitprices containing labor costs subject tothe construction wage raterequirements statute is [contracting officer', 35547:'insert percentage rate] percent. 2 the contracting officer will increasethe portion of the contract price or contract unitprices containing the', 35548:'labor costs subject tothe construction wage raterequirements statute by the percentagerate published in [contracting officer insert publication]. c thecontracting officer', 35549:'will make the price adjustment at theexercise of each option to extend the term ofthe contract. thisadjustment is theonly adjustmentthat', 35550:'thecontracting officer will make to cover any increases in wages and benefits as a result of 1 incorporation of the', 35551:'department of labor’s wage determination applicableat the exercise ofthe option to extend the term of the contract; 2 incorporation of', 35552:'a wage determination otherwise applied to the contract by operation of law; or 3 an increase in wages and benefits', 35553:'resulting from any other requirement applicable to workers subject to the construction wage raterequirements statute. end of clause 52.22232 construction', 35554:'wage raterequirementsprice adjustment actual method. as prescribed in 22.407g, insert the following clause: construction wage rate requirementsprice adjustment actual method', 35555:'aug 2018 a thewage determination issued under the construction wage rate requirements statute by theadministrator, wage and hour division, u.s.', 35556:'department of labor,that is effective for an option to extend the term of the contract, will applyto that option period.', 35557:'b 1 the contractor states that if the prices in this contract contain an allowance for wage or benefit increases,', 35558:'such allowance will not be included in any request for contract price adjustment submitted under this clause. 2 the contractor', 35559:'shall provide with each request for contract price adjustment under this clause a statement that the prices in the contract', 35560:'do not include any allowance for any increased cost for which adjustment is being requested. c thecontracting officer will adjust', 35561:'thecontract priceor contractunit price labor rates toreflect the contractor’s actual increase or decrease in wages and fringe benefits to the', 35562:'extent that the increase is made to comply with, or the decrease is voluntarily made by the contractor as a', 35563:'result of— 52.2223 52.22232 federal acquisition regulation 1 incorporation of the department of labor’s construction wagerate requirements wage determinationapplicable at', 35564:'the exercise of an option to extend the term of the contract; or 2 incorporation of a construction wage rate', 35565:'requirements wage determination otherwise applied to the contract by operation oflaw. d any adjustment will be limited to increases or', 35566:'decreases in wages and fringe benefits as described in paragraph c of this clause, and the accompanying increases or decreases', 35567:'in social security and unemployment taxes and workers’ compensation insurance, but will not otherwise include any amount for general and', 35568:'administrative costs, overhead, or profit. e thecontractor shall notify the contractingofficer of anyincrease claimed underthis clause within 30 days after', 35569:'receivinga revisedwage determination unless this notification period is extended inwriting by thecontracting officer. the contractor shall notify the contracting officer', 35570:'promptly of any decrease under this clause, but nothing in this clause precludes the governmentfrom asserting a claim within the', 35571:'period permitted by law. the notice shall contain a statement of theamount claimed and anyrelevant supportingdata, including payroll records that', 35572:'the contractingofficer may reasonably require. uponagreement of the parties, the contractingofficer will modify the contract price orcontract unit price inwriting.', 35573:'the contractor shall continue performance pending agreement on or determination ofanysuch adjustment and its effective date. f contract price adjustment', 35574:'computations shall be computed as follows: 1 computation for contract unit price per single craft hour for schedule of indefinitequantity', 35575:'work. for each labor classification, the difference between theactual wageandbenefitrates combined paid and the wage and benefit rates combined required', 35576:'by the new wage determination shall be added tothe original contractunit price if the difference results in a combinedincrease. if', 35577:'the difference computedresults in a combined decrease, the contractunit price shall bedecreased by that amount if the contractor provides notification', 35578:'as provided in paragraph e of this clause. 2 computation for contract unit price containing multiple craft hours for schedule', 35579:'of indefinitequantity work. for each labor classification, the difference between the actual wage and benefit ratescombined paid andthe wageandbenefit rates', 35580:'combined required by the new wage determination shall be multiplied by the actual number of hours expended for each craft', 35581:'involved in accomplishing the unitpriced work item. the product of this computation will then be divided by the actual number', 35582:'of units ordered in the preceding contract period. the total of these computations for each craft will be added to', 35583:'the current contract unit price to obtain the new contract unit price. the extended amount for the line item will', 35584:'be obtainedby multiplying thenew unitprice by the estimated quantity. ifactual hours are notavailable from the preceding contract periodforcomputationof the adjustment', 35585:'for a specific contractunit of work, thecontractor, in agreement with the contracting officer, shall estimate thetotal hours per craft per', 35586:'contract unit of work. example: asphalt pavingcurrent price $3.38 per square yard dba craft new wd hourly rate paid diff.', 35587:'actual hrs actual units sq.yard increase/ sqyard equip. opr. $18.50 – $18.00 = $.50 x 600 hrs./ 3,000 sq. yrd.', 35588:'= $.10 truck driver $19.00 – $18.25 = $.75 x 525 hrs./ 3,000 sq. yrd. = $.13 laborer $11.50 –', 35589:'$11.25 = $.25 x 750 hrs./ 3,000 sq. yrd. = $.06 total increase per square yard = $.29 note: adjustment', 35590:'for labor rate increases or decreases may be accompanied by social security and unemployment taxes and workers’ compensation insurance. current', 35591:'unit price per square $3.38 yard add dba price adj. +.29 new unit price per square = $3.67 yard end', 35592:'of clause 52.2224 subpart 52.2 text of provisions and clauses 52.22233 52.22233 noticeof requirement for project labor agreement. as prescribed', 35593:'in 22.505a1, insert the following provision: notice of requirement for project labor agreement jan 2024 a definitions. as used in', 35594:'this provision, the following terms are defined in clause 52.22234, project labor agreement, of this solicitation “construction,” “labor organization,” “largescale', 35595:'construction project,” and “project laboragreement.” b offerorsshall— 1 negotiate or become a party toa project labor agreementwith oneor more labororganizations', 35596:'for the term ofthe resulting construction contract; and 2 require its subcontractors to become a party to the resulting project', 35597:'labor agreement. c the project labor agreement reached pursuant to this provision shall 1 bind the offeror andsubcontractors engaged in', 35598:'construction on the construction project to comply with the project labor agreement; 2 allow theofferor and all subcontractors to compete', 35599:'for contracts and subcontracts without regardto whether they areotherwise parties to collective bargaining agreements; 3 contain guarantees against strikes, lockouts,', 35600:'and similar job disruptions; 4 set forth effective, prompt, andmutually bindingprocedures for resolvinglabor disputes arisingduring the term of the project', 35601:'labor agreement; 5 provide other mechanisms for labormanagement cooperation on matters of mutual interest and concern, including productivity, quality of', 35602:'work,safety, and health; and 6 fully conform to all statutes, regulations, executive orders, and agency requirements. d any project labor', 35603:'agreement reached pursuant to this provision does not change the terms of the resulting contract or provide for any price', 35604:'adjustment by the government. e theofferor shall submit to the contracting officer acopy ofthe project labor agreement with itsoffer. end', 35605:'of provision alternate i jan 2024. as prescribed in 22.505a2, substitute the following paragraphs b and e for paragraphs b', 35606:'and e of the basic provision. b the apparent successful offeror shall— 1 negotiate or become a party toa project', 35607:'labor agreementwith oneor more labororganizations for the term ofthe resulting construction contract; and 2 require its subcontractors to become a', 35608:'party to the resulting project labor agreement. e theapparent successful offerorshallsubmit to the contracting officer a copy of the project', 35609:'labor agreement prior to contract award. alternate ii jan 2024. as prescribed in 22.505a3, substitute the following paragraph b in', 35610:'lieu of paragraphs b through e of the basic provision: b if awarded the contract, the offeror shall— 1 negotiate', 35611:'or become a party toa project labor agreementwith oneor more labororganizations for the term ofthe resulting construction contract; and 2', 35612:'require its subcontractors to become a party to the resulting project labor agreement. alternate iii jan 2024. as prescribed in', 35613:'22.505a4, substitute the following paragraph b in lieu of paragraphs b through e of the basic provision: b1 ifawarded the', 35614:'contract,the offeror may be required by the agency to negotiate or becomea party to aproject labor agreement with one ormorelabor', 35615:'organizations for the term of the order. the contracting officer will require that an executed copy of the project labor', 35616:'agreement be submitted to the agency— iwith the orderoffer; ii prior to award of the order; or iii after award', 35617:'of the order. 2 the offeror shall require its subcontractors to become a party to the resulting project labor agreement', 35618:'for the term of the order. 52.2225 52.22234 federal acquisition regulation 52.22234 project labor agreement. as prescribed in 22.505b1, insert', 35619:'the following clause: project labor agreement jan 2024 a definitions. as used in this clause construction means construction,reconstruction, rehabilitation, modernization,', 35620:'alteration, conversion, extension, repair, or improvement of buildings, structures, highways, or other real property. labor organization means a labor organization', 35621:'as defined in 29 u.s.c. 1525 of which building and construction employees are members. largescale construction project means a federal', 35622:'construction project within the united states for which the total estimated cost of the construction contracts to the federal government', 35623:'is $35 million or more. project labor agreement means aprehire collective bargaining agreement with one or more labor organizations that', 35624:'establishes the terms and conditions of employment for a specific construction project and is an agreement described in 29 u.s.c.', 35625:'158f. b the contractor shall maintain in a current status throughout the life of the contract the project labor agreement', 35626:'entered into prior to the award of the contract. c subcontracts. the contractor shall include the substance of this clause,', 35627:'including this paragraph c, in subcontracts with subcontractors engaged in construction on the construction project. end of clause alternate i', 35628:'jan 2024 . as prescribed in 22.505b2, substitute the following paragraphs b through f for paragraphs b and c of', 35629:'the basic clause: b the contractor shall— 1 negotiate or become a party toa project labor agreementwith oneor more labororganizations', 35630:'for the term ofthis construction contract; and 2 submitan executedcopy ofthe project labor agreement to the contracting officer as required', 35631:'in the solicitation. c the project labor agreement reached pursuant to this clause shall 1 bind the contractor and subcontractors', 35632:'engaged in construction on the construction project to comply with the project labor agreement; 2 allow the contractor and all', 35633:'subcontractors to compete for contracts and subcontracts without regard to whether they are otherwise parties to collectivebargaining agreements; 3 contain', 35634:'guarantees against strikes, lockouts, and similar job disruptions; 4 set forth effective, prompt, andmutually bindingprocedures for resolvinglabor disputes arisingduring the', 35635:'term of the project labor agreement; 5 provide other mechanisms for labormanagement cooperation on matters of mutual interest and concern,', 35636:'including productivity, quality of work,safety, and health; and 6 fully conform to all statutes, regulations, executive orders, and agency requirements.', 35637:'d any project labor agreement reached pursuant to this clause does not change the terms of this contract or provide', 35638:'for any price adjustment by the government. e the contractor shall maintain in a current status throughout the life of', 35639:'the contract the project labor agreement entered into pursuant to this clause. f subcontracts. the contractor shall require subcontractors engaged', 35640:'in construction on the construction project to agree to any project labor agreement negotiated by the prime contractor pursuant to', 35641:'this clause, and shall include the substance of paragraphs d through f of this clause in subcontracts with subcontractors engaged', 35642:'in construction on the construction project. alternate ii jan 2024. as prescribed in 22.505b3, substitute the following paragraphs b through', 35643:'f for paragraphs b through f of the basic clause: b when notified by the agency e.g., by the notice', 35644:'of intent to place an order under 16.505b1 that this order will use a project labor agreement, the contractor shall', 35645:'negotiate or become a party to a project labor agreement with one or more labor organizations for the term of', 35646:'the order. thecontracting officer shall requirethat anexecuted copy of the projectlabor agreement be submitted to the agency— 52.2226 subpart 52.2', 35647:'text of provisions and clauses 52.22236 1 with theorder offer; 2 prior to award of the order; or 3 afteraward', 35648:'of theorder. c the project labor agreement reached pursuant to this clause shall— 1 bind the contractor and subcontractors engaged', 35649:'in construction on the construction project to comply with the project labor agreement; 2 allow all contractors and subcontractors to', 35650:'compete for contracts and subcontracts without regard to whether they areotherwise parties to collective bargaining agreements; 3 contain guarantees against', 35651:'strikes, lockouts, and similar job disruptions; 4 set forth effective, prompt, andmutually bindingprocedures for resolvinglabor disputes arisingduring the term of', 35652:'the project labor agreement; 5 provide other mechanisms for labormanagement cooperation on matters of mutual interest and concern, including productivity,', 35653:'quality of work,safety, and health; and 6 fully conform to all statutes, regulations, executive orders, and agency requirements. d any', 35654:'project labor agreement reached pursuant to this clause does not change the terms of this contract or provide for any', 35655:'price adjustment by the government. e the contractor shall maintain in a current status throughout the life of the order', 35656:'any project labor agreement entered into pursuant to this clause. f subcontracts. for each order that uses a project labor', 35657:'agreement, the contractor shall— 1 require subcontractors engaged in construction on the construction project to agree to any project labor', 35658:'agreement negotiated by the prime contractor pursuant to this clause; and 2 include the substance of paragraphs d through f', 35659:'of this clause in subcontracts with subcontractors engaged in construction on the construction project. 52.22235 equal opportunity for veterans. as', 35660:'prescribed in 22.1310a1, insert the following clause: equal opportunity for veterans jun 2020 a definitions. as used in this clause', 35661:'active duty wartime or campaign badge veteran, armed forces service medal veteran, disabled veteran, protected veteran, qualified disabled veteran, and', 35662:'recently separated veteran have the meanings given at federal acquisition regulation far22.1301. b equal opportunity clause. the contractor shall abide', 35663:'by the requirements of the equal opportunity clause at 41 cfr 60300.5a, as of march 24, 2014. this clause prohibits', 35664:'discrimination against qualified protected veterans, and requires affirmative action by the contractor to employ and advancein employment qualified protected veterans.', 35665:'c subcontracts. the contractor shall insert the terms of this clause in subcontracts valued at or above the threshold specified', 35666:'in far 22.1303a on the date of subcontract award, unless exempted by rules, regulations, or orders of the secretary of', 35667:'labor. thecontractor shall act as specifiedby the director, office of federalcontract compliance programs, to enforce the terms, including action for', 35668:'noncompliance. such necessary changes in language may be made as shall be appropriate to identify properly the parties and their', 35669:'undertakings. end of clause alternate i jul 2014. as prescribed in 22.1310a2, add the following as a preamble to the', 35670:'clause: notice: the following terms of this clause are waived for this contract: [list terms]. 52.22236 equal opportunity for workerswith', 35671:'disabilities. as prescribed in 22.1408a, insert the following clause: equal opportunity for workers with disabilities jun 2020 52.2227 52.22237 federal', 35672:'acquisition regulation a equal opportunity clause. the contractor shall abide by the requirements of the equal opportunity clause at 41', 35673:'cfr 60741.5a, as of march 24, 2014. this clause prohibits discrimination against qualified individuals on the basis of disability, and', 35674:'requires affirmative action bythe contractor toemploy and advance in employment qualified individuals with disabilities. b subcontracts. the contractor shall include', 35675:'the terms of this clause in every subcontract or purchase order in excess of the thresholdspecified in federal acquisition regulation', 35676:'far 22.1408a on the date of subcontract award, unless exemptedby rules, regulations, or orders of the secretary, so that such', 35677:'provisions willbe binding upon each subcontractor or vendor. the contractorshallact asspecified by the director, office of federal contract compliance programs', 35678:'of the u.s. department of labor, to enforce the terms, including action for noncompliance. suchnecessary changes inlanguage may be made', 35679:'as shall be appropriate to identify properly the parties and their undertakings. end of clause alternate i jul 2014. as', 35680:'prescribed in 22.1408b, add the following as a preamble to the clause: notice: the following terms of this clause are', 35681:'waived for this contract: [list terms]. 52.22237 employment reports on veterans. as prescribed in 22.1310b, insert the following clause: employment', 35682:'reports on veterans jun 2020 a definitions. as used in this clause, active duty wartime or campaign badge veteran, armed', 35683:'forces service medal veteran, disabled veteran, protected veteran, and recently separated veteran, have the meanings given in federal acquisition regulationfar22.1301.', 35684:'b unlessthe contractor is a state or local governmentagency,the contractor shall reportat least annually, as required by thesecretary of labor,', 35685:'on 1 the total number ofemployees in the contractor’s workforce, by job category and hiring location, who are protected veterans', 35686:'i.e., active duty wartime or campaign badge veterans, armed forces service medal veterans, disabled veterans, and recently separated veterans; 2', 35687:'the total number of new employees hired during the period covered by the report, and of the total, the number', 35688:'of protected veterans i.e., active duty wartime or campaign badge veterans, armed forces service medal veterans, disabled veterans, and recently', 35689:'separated veterans; and 3 the maximum number and minimum number of employees of the contractor or subcontractor at each hiring', 35690:'location during the period covered by the report. c thecontractor shall report theabove items byfiling the vets4212 federal contractor veterans’', 35691:'employment report see vets4212 federal contractor reporting and filing your vets4212 report at http://www.dol.gov/vets/ vets4212.htm. d the contractor shall submit', 35692:'vets4212 reports no later than september 30 of each year. e the employment activity report required by paragraphs b2 and', 35693:'b3 of this clause shall reflect total new hires, and maximum and minimum number of employees, during the most recent', 35694:'12–month period preceding the ending date selected for the report. contractors may select an ending date 1 as of the', 35695:'end of any pay period between july 1 and august 31 of the year the report is due; or 2', 35696:'as of december 31, if the contractor has prior written approval from the equal employment opportunity commission to do so', 35697:'for purposes of submitting the employer information report eeo1 standard form 100. f the number of veterans reported must be', 35698:'based on data known to the contractor when completing the vets4212. the contractor’s knowledgeof veterans status maybe obtained in a', 35699:'variety of ways, including aninvitation to applicants to selfidentify in accordance with 41 cfr 60300.42, voluntary selfdisclosure by employees, or', 35700:'actual knowledge of veteran statusby the contractor. thisparagraph does not relieve anemployer of liability for discrimination under 38 u.s.c. 4212.', 35701:'g the contractor shall insert the terms of thisclause in subcontracts valuedat or above the thresholdspecified in far 22.1303a on', 35702:'the date ofsubcontract award, unless exemptedby rules, regulations, or orders of the secretary of labor. end of clause 52.2228 subpart', 35703:'52.2 text of provisions and clauses 52.22240 52.22238 compliancewith veterans’ employment reporting requirements. as prescribed in 22.1310c, insert the following', 35704:'provision: compliance with veterans’ employment reporting requirements feb 2016 by submission of its offer, theofferor representsthat, ifitis subjectto thereporting requirements', 35705:'of 38 u.s.c. 4212di.e., if it has any contract containing federal acquisition regulation clause 52.22237, employment reports on veterans, it', 35706:'has filed the mostrecent vets4212 reportrequired by thatclause. end of provision 52.22239 [reserved] 52.22240 notification of employee rights under the', 35707:'national labor relations act. as prescribed in 22.1605, insert the following clause: notification of employee rights under the national labor', 35708:'relations act dec 2010 a during the term of this contract, the contractor shall post an employee notice, of such', 35709:'size and in such form, and containing such content as prescribed bythe secretary of labor,in conspicuous placesin and about its', 35710:'plants and offices where employees covered by the national labor relations act engage in activities relating to the performance of', 35711:'the contract, including all places where noticesto employees are customarily postedboth physically andelectronically,in the languages employees speak, in accordance with', 35712:'29 cfr471.2 d and f. 1 physical posting of the employee notice shall be in conspicuous places in and about', 35713:'the contractor’s plants and offices so that the notice is prominentandreadilyseen by employees whoare covered bythe national labor relations act', 35714:'and engage in activities related to the performance of the contract. 2 if the contractor customarilyposts notices to employees electronically,', 35715:'then the contractor shall also post the required noticeelectronically by displaying prominently, onanywebsite that ismaintained by the contractor and is', 35716:'customarily used for notices toemployees about terms and conditions of employment, a link tothe department of labor’s website that contains', 35717:'thefull textof the poster. the link to thedepartment’s website, as referenced inb3 of this section, must read, important noticeabout employee', 35718:'rights toorganize and bargain collectively with their employers. b this required employeenotice,printed by the department of labor, may be 1', 35719:'obtained from the division of interpretationsandstandards, officeof labormanagement standards, u.s. department of labor, 200 constitutionavenue, nw., room n5609, washington, dc', 35720:'20210, 202 6930123, or from any field office of theofficeof labor–management standards or office of federal contract compliance programs; 2', 35721:'provided by the federal contracting agency if requested; 3 downloadedfrom the office of labor–management standards web site at http://www.dol.gov/olms/regs/ compliance/eo13496.htm;', 35722:'or 4 reproduced and used as exact duplicate copies of the department of labor’s official poster. c the required text', 35723:'of the employee notice referred to in this clause is located at appendix a, subpart a, 29 cfr part 471.', 35724:'d the contractor shall comply with all provisions of the employee notice and related rules, regulations, and orders of the', 35725:'secretary of labor. e in the event that the contractor does not comply with the requirements set forth in paragraphs', 35726:'a through d of this clause, this contract may be terminated or suspended in whole or in part, and the', 35727:'contractor may be suspended or debarred in accordance with 29 cfr 471.14 and subpart 9.4. such other sanctions or remedies', 35728:'may be imposed as are provided by 29 cfr part 471, whichimplements executive order 13496or as otherwise provided bylaw. f', 35729:'subcontracts. 1 the contractor shall include the substance of this clause, including this paragraph f, in every subcontract that exceeds', 35730:'$10,000 and will be performed wholly or partially in the united states, unless exempted by the rules, regulations, or orders', 35731:'of the secretary of labor issued pursuant to section 3 of executive order 13496 of january 30, 2009, so that', 35732:'such provisions willbe binding upon each subcontractor. 2 the contractor shall not procure supplies or services in a way designed', 35733:'to avoid the applicability of executive order 13496 or this clause. 52.2229 52.22241 federal acquisition regulation 3 the contractor shall', 35734:'take such action with respect to any such subcontract as may be directed by the secretary of labor as a', 35735:'means of enforcing such provisions, including the imposition of sanctions for noncompliance. 4 however, if the contractor becomes involved inlitigation', 35736:'with a subcontractor, or isthreatened with such involvement, as a resultof such direction, the contractor may requestthe unitedstates, through the', 35737:'secretaryof labor, to enter into such litigation to protect the interests of the united states. end of clause 52.22241 service', 35738:'contract labor standards. as prescribed in 22.1006a, insert the following clause: service contract labor standards aug 2018 a definitions. as', 35739:'used in this clause— contractor, when this clause is used in any subcontract, shall be deemed torefer to thesubcontractor, except', 35740:'inthe term government prime contractor. service employee means any person engaged in the performance of this contract other than any', 35741:'person employed in a bona fide executive, administrative,or professional capacity, as these terms are defined in part 541 of title', 35742:'29, code of federal regulations, as revised. it includes all such persons regardless of any contractual relationship that may be', 35743:'alleged to exist between a contractor or subcontractor and such persons. b applicability. this contract is subject to the following', 35744:'provisions and to all other applicable provisions of 41 u.s.c. chapter 67, service contract labor standards, and regulations of the', 35745:'secretary of labor 29 cfr part 4. this clause does not apply to contracts or subcontracts administratively exempted by the', 35746:'secretary of labor or exempted by 41 u.s.c. 6702, as interpreted in subpart c of 29 cfr part 4. c', 35747:'compensation. 1 each service employee employed in the performance of this contract by the contractor or any subcontractor shall be', 35748:'paid not less than the minimum monetary wages and shall be furnished fringe benefits in accordance with the wages and', 35749:'fringe benefits determined by the secretary of labor, or authorized representative, as specified in any wage determination attached to this', 35750:'contract. 2 i if a wage determination is attached to this contract, the contractor shall classify any class of service', 35751:'employee which is not listed therein and which is to be employed under the contract i.e., the work to be', 35752:'performed is not performed by any classification listed in the wage determination so as to provide a reasonable relationship i.e.,', 35753:'appropriate level of skill comparison between such unlisted classifications and the classifications listed in the wage determination. such conformed class', 35754:'of employees shall be paid the monetary wages and furnished the fringe benefits as are determined pursuant to the procedures', 35755:'in this paragraph c. ii this conforming procedure shall be initiated by the contractor prior to the performance of contract', 35756:'work by the unlisted class of employee. the contractor shall submit standard form sf 1444, request for authorization of additional', 35757:'classificationandrate, to the contractingofficer no later than 30 days after theunlisted classof employee performs any contract work. the contracting officer', 35758:'shall review theproposed classificationand rate and promptly submit the completed sf 1444 which must include information regarding the agreement or', 35759:'disagreement of the employees’ authorized representatives or the employees themselves together with the agency recommendation, and all pertinent information to', 35760:'the wage and hour division, u.s.department oflabor. the wage and hour division will approve, modify, or disapprove the action or', 35761:'render a final determination in the event of disagreement within 30 days of receipt or will notify the contracting officer', 35762:'within 30days of receipt that additional time is necessary. iii the final determination ofthe conformanceaction by the wageand hour division', 35763:'shall be transmitted to the contracting officerwho shall promptly notify the contractor of the action taken. each affected employee shall', 35764:'be furnished by the contractor with a written copy of such determination or it shall be posted as a part', 35765:'of the wage determination. iv a the process of establishing wage and fringe benefit rates that bear a reasonable relationship', 35766:'to those listed in a wage determination cannot be reduced to any single formula. the approach used may vary from', 35767:'wage determination to wage determination depending on the circumstances. standard wage and salary administration practices which rank various job classificationsby', 35768:'pay gradepursuant to point schemes or other job factors may, for example, be relied upon. guidance may also beobtained from', 35769:'the way different jobsare rated underfederal pay systemsfederal wage board pay system and the general schedule or from otherwage determinationsissuedin', 35770:'the samelocality. basic tothe establishmentof any 52.2230 subpart 52.2 text of provisions and clauses 52.22241 conformable wage rates is the', 35771:'concept that a pay relationship should be maintained between job classifications based on the skill required and the duties performed.', 35772:'b in the case of a contract modification, an exercise of an option, or extension of an existing contract, or', 35773:'in any other case where a contractor succeeds a contract under which the classification in question was previously conformed pursuant', 35774:'to paragraph c of this clause, a new conformed wage rate and fringe benefits may be assigned to the conformed', 35775:'classification by indexing i.e., adjusting the previous conformed rate and fringe benefits by an amount equal to the average mean', 35776:'percentage increase or decrease, where appropriate between the wages and fringe benefits specified for all classifications to be used on', 35777:'the contract which are listed in the current wage determination, and those specified for the corresponding classifications in the previously', 35778:'applicable wage determination. where conforming actions are accomplished in accordance with this paragraph prior to the performance of contract work', 35779:'by the unlisted class of employees, thecontractor shall advise the contracting officer of the action taken but the otherprocedures in', 35780:'subdivision c2ii ofthis clause need not be followed. c no employee engaged in performing work on this contract shall in', 35781:'any event be paid less than the currently applicable minimum wage specified under section 6a1 of the fair labor standards', 35782:'act of1938, as amended. v the wage rate and fringe benefits finally determined under this paragraph c2 of this clause', 35783:'shall be paid to all employees performing in the classification from the first day on which contract work is performed', 35784:'by them in the classification. failure to pay the unlisted employees the compensation agreed upon by the interested parties and/or', 35785:'finally determined bythe wage and hour division retroactive to the date such class ofemployees commenced contract work shall be a', 35786:'violation of the service contract labor standards statute and this contract. vi upon discovery of failure tocomply with paragraph c2', 35787:'of thisclause, thewage and hour division shall make a final determination of conformed classification, wage rate, and/or fringe benefits which', 35788:'shall be retroactive to the date such class or classes of employees commenced contract work. 3 adjustment of compensation. if', 35789:'the termof this contract is more than 1year, the minimum monetarywages and fringe benefits required to be paid or furnished', 35790:'thereunder to service employees under this contract shall be subject to adjustment after 1 year and not less often than', 35791:'once every 2 years, under wage determinations issued by the wage and hour division. d obligation to furnish fringe benefits.', 35792:'thecontractor or subcontractor may discharge the obligation to furnish fringe benefits specified in the attachment or determined under paragraph c2', 35793:'of this clause by furnishing equivalent combinationsof bonafide fringe benefits,or by makingequivalent or differential cash payments, only in accordance with', 35794:'subpart d of 29 cfr part 4. e minimum wage. in the absence of a minimum wage attachment for this', 35795:'contract, neither the contractor nor any subcontractor under this contract shall pay any person performing work under this contract regardless', 35796:'of whether the person is a service employee less than the minimum wage specified by section 6a1 of the fair', 35797:'labor standards act of1938. nothing in this clause shall relieve the contractor or any subcontractor of any other obligation under', 35798:'law or contract for payment of a higher wage to any employee. f successor contracts. if this contract succeeds a', 35799:'contract subject to the service contract labor standards statute under which substantially the same services were furnished in the same', 35800:'locality and service employees were paid wages and fringe benefits provided for in a collectivebargaining agreement, in the absenceof the', 35801:'minimum wage attachment for this contract setting forthsuch collectively bargainedwage rates and fringe benefits, neither the contractor nor any subcontractor', 35802:'under this contract shall pay any service employee performing any of the contract work regardless of whether or not such', 35803:'employee was employed under the predecessor contract, less than the wages and fringe benefits provided for in suchcollective bargaining agreement,', 35804:'to which such employee would have been entitled if employedunder thepredecessor contract, including accrued wages and fringe benefits and any', 35805:'prospective increases in wages and fringe benefits provided for under such agreement. no contractor or subcontractor under this contract may', 35806:'be relieved of the foregoing obligation unless the limitations of 29 cfr 4.1 bbapply or unless the secretary oflabor or', 35807:'the secretary’sauthorized representative finds, after a hearing as provided in 29 cfr 4.10 that the wages and/or fringe benefits provided', 35808:'for in such agreement aresubstantially at variancewith those which prevail for services of a character similar in the locality, or', 35809:'determines, as provided in 29 cfr 4.11, that the collectivebargaining agreement applicable to service employees employed under the predecessor contract', 35810:'was not entered into asa result of arm’s length negotiations. where it is found inaccordancewith the review procedures provided in', 35811:'29 cfr 4.10 and/or 4.11 and parts6 and 8 that some or all of the wages and/or fringe benefits contained', 35812:'in a predecessor contractor’scollective bargaining agreementare substantiallyat variance with those which prevail for services ofa character similar in the locality,', 35813:'and/or that the collectivebargaining agreement applicable to service employees employed under the predecessor contract was not entered intoas a result', 35814:'of arm’s length negotiations, 52.2231 52.22241 federal acquisition regulation the department will issue a new or revised wage determination setting', 35815:'forth the applicable wage rates and fringe benefits. suchdeterminationshallbe made part ofthe contract or subcontract,in accordance with thedecision of theadministrator,', 35816:'the administrative law judge, or the administrative review board, as the case may be, irrespective of whether such issuance occurs', 35817:'prior to or after the award of a contract or subcontract 53 comp. gen. 401 1973. in the case of', 35818:'a wage determination issued solely as a resultof afinding of substantial variance,such determination shall beeffective as of the date of', 35819:'the final administrative decision. g notification to employees. the contractor and any subcontractor under this contract shall notify each service', 35820:'employee commencing work on this contract of the minimum monetary wage and any fringe benefits required to be paid pursuant', 35821:'to this contract, or shall post the wage determination attached to this contract. the poster provided by the department of', 35822:'labor publication wh 1313 shall be posted in a prominent and accessible place at the work site. failure to comply', 35823:'with this requirement is a violation of 41 u.s.c. 6703 and of this contract. h safe and sanitary working conditions.', 35824:'the contractor or subcontractor shall not permit any part of the services called for by this contract to be performed', 35825:'in buildings or surroundings or under working conditions provided by or under the control or supervision of thecontractor or subcontractor', 35826:'which are unsanitary,hazardous, or dangerous to the healthor safety of the service employees. the contractor or subcontractor shall comply with', 35827:'the safety and health standards applied under 29 cfr part 1925. i records. 1 the contractor and each subcontractor performing', 35828:'work subject to the service contract labor standards statute shall make and maintain for 3 years from the completion of', 35829:'the work, and make them available for inspection and transcription by authorized representatives of the wage and hour division, a', 35830:'record of the following: i for each employee subject to the service contract labor standards statute a name and address', 35831:'and social security number; b correct work classification or classifications, rate or rates of monetary wages paid and fringe benefits', 35832:'provided, rate or rates of payments in lieu of fringe benefits, and total daily and weekly compensation; c daily and', 35833:'weekly hours worked by each employee; and d any deductions, rebates, or refunds from the total daily or weekly compensation', 35834:'of each employee. ii for those classes of service employees not included in any wage determination attached to this contract,', 35835:'wage rates or fringe benefits determined by the interested parties or by the administrator or authorized representative under the terms', 35836:'of paragraph c of this clause. a copy of the report required by subdivision c2ii of this clause will fulfill', 35837:'this requirement. iii any listof the predecessor contractor’semployees which had been furnished to the contractor as prescribed by paragraph n', 35838:'of this clause. 2 the contractor shall also make available a copy of this contract for inspection or transcription by', 35839:'authorized representatives of the wage and hour division. 3 failure to make and maintain or to make available these records', 35840:'for inspection and transcription shall be a violation of the regulationsand this contract, andin thecaseof failure to producethese records, thecontracting', 35841:'officer,upon direction of the departmentof laborandnotification to the contractor,shalltake action to cause suspension of any furtherpayment or advance of funds', 35842:'until the violation ceases. 4 the contractor shall permit authorized representatives of the wage andhourdivision to conduct interviews with employees', 35843:'at the work site during normal working hours. j pay periods. the contractor shall unconditionally pay to each employee subject', 35844:'to the service contract labor standards statute all wages due free and clear and without subsequent deduction except as otherwise', 35845:'provided by law or regulations, 29 cfr part 4, rebate, or kickback on any account. these payments shall be made', 35846:'no later than one pay period following the end of the regular pay period in which the wages were earned', 35847:'or accrued. a pay period under this statute may not be of any duration longer than semimonthly. k withholding of', 35848:'payments and termination of contract. the contracting officershallwithholdor cause to be withheld from the government prime contractor under this or', 35849:'any other government contract with the prime contractor such sums as anappropriate official of the departmentof labor requests or such', 35850:'sums as thecontracting officer decidesmay be necessary to pay underpaidemployees employedby the contractor or subcontractor. in the event of failure', 35851:'to pay any employees subject to the service contract labor standards statute all or part of the wages or fringe', 35852:'benefits due under the service contractlabor standards statute, the contractingofficer may, after authorization or bydirection ofthe department of labor and', 35853:'written notification to the contractor, take action to causesuspension of any further payment or advance of funds until suchviolations have', 35854:'ceased. additionally, any failure to complywith the requirements ofthis clause maybe grounds for 52.2232 subpart 52.2 text of provisions and', 35855:'clauses 52.22241 termination of the right to proceed with the contract work. in such event, the government may enter into', 35856:'other contracts or arrangements for completion of the work, charging thecontractor in default with any additional cost. l subcontracts. the', 35857:'contractor agrees to insert this clause in all subcontracts subject to the service contract labor standards statute. m collective bargaining', 35858:'agreements applicable to service employees. if wages to be paid or fringe benefits to be furnished any service employees employed', 35859:'by the government prime contractor or any subcontractor under the contract areprovided for in a collective bargaining agreement which is', 35860:'or will be effective during any period in whichthe contract is being performed, the government prime contractor shall reportsuch factto', 35861:'thecontracting officer,together with full information as to the application and accrual of such wages and fringe benefits, including any prospective', 35862:'increases, to serviceemployees engaged in work onthe contract, and acopy ofthe collective bargainingagreement. such report shall be made upon commencingperformance', 35863:'of the contract, in thecaseof collective bargaining agreements effectiveat such time, and in the case ofsuch agreements or provisions or', 35864:'amendments thereof effective ata later timeduring the period of contract performance such agreements shall be reported promptly after negotiation thereof.', 35865:'n seniority list. not less than 10 days prior to completion of any contract being performed at a federal facility', 35866:'where service employees may be retained in the performance of the succeeding contract and subject to a wage determination which', 35867:'contains vacation or other benefit provisions based upon length of service with a contractor predecessor or successor 29 cfr 4.173,', 35868:'the incumbent primecontractor shall furnish the contractingofficer a certified listof the names of all service employees on thecontractor’s or subcontractor’s', 35869:'payroll during thelast monthof contractperformance. such list shall also contain anniversary dates of employment on the contract either with the', 35870:'current or predecessor contractors of each such serviceemployee. the contracting officershallturnover such list to thesuccessor contractor at thecommencement ofthe succeeding', 35871:'contract. o rulings and interpretations. rulings and interpretations of the service contract labor standards statute are contained in regulations, 29', 35872:'cfr part 4. pcontractor’scertification. 1byenteringintothiscontract,thecontractorandofficialsthereofcertifiesthatneither it nor any person or firm who hasa substantial interest inthe contractor’sfirm is a person', 35873:'or firm ineligible to be awarded government contracts by virtue of the sanctions imposed under 41 u.s.c. 6706. 2 no', 35874:'part of this contract shall be subcontracted to any person or firm ineligible for award of a government contract under', 35875:'41 u.s.c. 6706. 3 the penalty for making false statements is prescribed in the u.s. criminal code, 18 u.s.c. 1001.', 35876:'q variations, tolerances, and exemptions involving employment. notwithstanding any of the provisions in paragraphs b through o of this clause,', 35877:'the following employees may be employed in accordance with the following variations, tolerances, and exemptions, which thesecretaryof labor, pursuant to', 35878:'41 u.s.c. 6707 prior to its amendment by pub.l.92473, found to be necessary and proper in the public interest or', 35879:'to avoid serious impairment of the conduct of government business: 1 apprentices, studentlearners, and workers whose earning capacity is impaired', 35880:'by age, physical or mental deficiency, or injury may beemployed atwageslower than theminimum wages otherwiserequired by 41 u.s.c. 67031 without', 35881:'diminishing any fringe benefits or cash payments in lieu thereof required under 41 u.s.c. 67032, in accordance with the conditions', 35882:'and procedures prescribed for the employment of apprentices, studentlearners, persons with disabilities, and disabled clients of work centers under section', 35883:'14 of the fair labor standards act of 1938, in the regulations issued by the administrator 29 cfr parts 520,', 35884:'521, 524, and 525. 2 the administrator will issue certificates under the statute for the employment of apprentices, studentlearners, persons', 35885:'with disabilities, or disabled clients of work centers not subject to the fair labor standards act of 1938, or subject', 35886:'to differentminimum rates of pay under the two statutes, authorizing appropriate rates ofminimum wages but without changing requirements concerning fringe', 35887:'benefits or supplementary cash payments in lieu thereof, applying procedures prescribed by the applicable regulations issued under the fair labor', 35888:'standards act of 1938 29 cfr parts 520, 521, 524, and 525. 3 the administrator willalso withdraw, annul, or cancel', 35889:'such certificatesin accordance with theregulations in 29 cfr parts 525 and 528. r apprentices. apprentices will be permitted to work', 35890:'at less than the predetermined rate for the work they perform when they are employed and individually registered in a', 35891:'bona fide apprenticeship program registered with a state apprenticeship agency which isrecognizedby the u.s. department of labor, or if nosuch', 35892:'recognized agencyexists ina state, under a program registered with the office ofapprenticeship training,employer, and labor services oatels, u.s. department of', 35893:'labor. anyemployee who is not registered as anapprentice inan approved program shall be paid the wage rate and fringe benefits', 35894:'contained in the applicable wage determination for the journeyman classification of work actually performed. the 52.2233 52.22242 federal acquisition regulation', 35895:'wage rates paid apprentices shall not be less than the wage rate for their level of progress set forth in', 35896:'the registered program, expressed as the appropriate percentage of the journeyman’s ratecontained inthe applicable wage determination. the allowable ratio of', 35897:'apprentices to journeymen employed on the contract work in any craft classification shall not be greater than the ratio permitted', 35898:'to the contractor as to his entire work force under the registered program. s tips. an employee engaged in an', 35899:'occupation in which the employee customarily and regularly receives more than $30 a month in tips may have the amount', 35900:'of these tips credited by the employer against the minimum wage required by 41 u.s.c. 67031, in accordance with section', 35901:'3m of the fair labor standards act and regulations, 29 cfr part 531. however, the amount of credit shall not', 35902:'exceed $1.34per hour beginning january 1,1981. touse this provision 1 the employer must inform tipped employees about this tip credit', 35903:'allowance before the credit is utilized; 2 the employees must be allowed to retain all tips individually or through a', 35904:'pooling arrangement and regardless of whether the employer elects to take a credit for tips received; 3 the employer must', 35905:'be able to show by records that the employee receives at least the applicable service contract labor standards minimum wage', 35906:'through the combination of direct wages and tip credit; and 4 the use of such tipcredit musthavebeenpermitted under any predecessor', 35907:'collective bargaining agreement applicable by virtue of 41 u.s.c. 6707c. t disputes concerning labor standards. the u.s. department of labor', 35908:'has set forth in 29 cfr parts 4, 6, and 8 procedures for resolving disputes concerning labor standards requirements. such', 35909:'disputes shall be resolved in accordance with those procedures and not the disputes clause of this contract. disputes within the', 35910:'meaning of this clause include disputes between the contractororany of its subcontractorsandthe contracting agency, the u.s. department of labor, or', 35911:'the employees or their representatives. end of clause 52.22242 statement of equivalentrates forfederal hires. as prescribed in 22.1006b, insert the', 35912:'following clause: statement of equivalent rates for federal hires may 2014 in compliance with the service contract labor standards statute', 35913:'and the regulations of the secretary of labor 29 cfr part 4, this clause identifies the classes of service employees', 35914:'expected to be employed under the contract and states the wages and fringe benefits payable to each if they were', 35915:'employed by the contracting agency subject to the provisions of 5 u.s.c.5341 or 5 332. this statementis for informationonly: it', 35916:'is not a wage determination employee class monetary wagefringe benefits end of clause 52.22243 fairlabor standards act and service contract', 35917:'labor standardsprice adjustment multiple year and option contracts. as prescribed in 22.1006c1, insert the following clause: 52.2234 subpart 52.2 text', 35918:'of provisions and clauses 52.22244 fair labor standards act and service contract labor standardsprice adjustment multiple year and option contracts', 35919:'aug 2018 a this clause applies to both contracts subject to area prevailing wage determinations and contracts subject to collective', 35920:'bargainingagreements. b the contractor warrants that the prices in this contract do not include any allowance for any contingency to', 35921:'cover increased costs for which adjustment is provided under this clause. c the wage determination, issued under the service contract', 35922:'labor standards statute, 41 u.s.c. chapter 67, by the administrator,wage and hour division, u.s. department of labor, current on the', 35923:'anniversary date of a multiple year contract or the beginning of each renewal option period, shall apply to this contract.', 35924:'if no such determination has been made applicable to this contract, then the federal minimum wage as established by section', 35925:'6a1 of the fair labor standards act of1938, as amended, 29 u.s.c. 206 current on the anniversary date of a', 35926:'multiple year contract or the beginning of each renewal option period, shall apply to this contract. d the contract price,', 35927:'contract unit pricelabor rates, or fixed hourly laborrateswill be adjusted to reflect the contractor’s actual increase or decrease in applicable', 35928:'wages and fringe benefits to the extent that the increase is made to comply with or the decrease is voluntarily', 35929:'made by the contractor as a result of: 1 the department of labor wage determination applicable on the anniversary date', 35930:'of the multiple year contract, or at the beginning of the renewal option period. for example, the prior year wage', 35931:'determination required a minimum wage rate of $4.00 per hour. the contractor chose to pay $4.10. the new wage determination', 35932:'increases the minimum rate to $4.50 per hour. even ifthe contractor voluntarily increases the rate to $4.75 per hour, theallowable', 35933:'price adjustment is $.40 per hour; 2 an increased or decreased wage determination otherwise applied to the contract by operation', 35934:'of law; or 3 an amendment tothe fair laborstandards act of1938 that is enactedafter award of this contract, affects the', 35935:'minimum wage, and becomes applicable tothiscontract under law. e any adjustment will be limited to increases or decreases in wages', 35936:'and fringe benefits as described in paragraph d of this clause, and the accompanying increases or decreases in social security', 35937:'and unemployment taxes and workers’ compensation insurance, but shall not otherwise include any amount for general and administrative costs, overhead,', 35938:'or profit. f the contractor shall notify thecontracting officer of any increase claimed under thisclause within 30 daysafter receivinga new', 35939:'wage determinationunlessthisnotification period is extended in writing by the contracting officer. the contractor shall promptly notify the contracting officer of', 35940:'any decrease under this clause,but nothing in the clause shall precludethe government from assertinga claim withinthe periodpermitted bylaw. the notice', 35941:'shall contain a statement of the amount claimed and the change in fixed hourly rates if this is a timeandmaterials', 35942:'or laborhour contract, and any relevant supporting data, including payroll records, that the contracting officer may reasonably require. upon agreement', 35943:'of the parties, the contract price, contract unit price labor rates, or fixed hourly rates shall be modified in writing.', 35944:'the contractor shall continueperformance pending agreement on or determination of anysuch adjustment and itseffective date. g the contracting officer or', 35945:'anauthorized representative shall have accessto and the right to examine any directly pertinent books, documents, papers and records of the', 35946:'contractor until the expiration of 3 years after final payment under the contract. end of clause 52.22244 fair labor standards', 35947:'act and service contract labor standardsprice adjustment. as prescribed in 22.1006c2, insert the following clause: fair labor standards act and', 35948:'service contract labor standardsprice adjustment may 2014 a this clause applies to both contracts subject to area prevailing wage determinations', 35949:'and contracts subject to contractor collective bargaining agreements. b the contractor warrants that the prices in this contract do not', 35950:'include any allowance for any contingency to cover increased costs for which adjustment is provided under this clause. c the', 35951:'contract price, contract unit price labor rates, or fixed hourly labor rates will be adjusted to reflect increases or decreases', 35952:'by the contractor in wages and fringe benefits to the extent that these increases or decreases are made to comply', 35953:'with 1 an increased or decreased wage determination applied to this contract by operation of law; or 52.2235 52.22245 federal', 35954:'acquisition regulation 2 an amendment tothe fair laborstandards act of1938 that is enactedsubsequentto award ofthis contract, affects theminimum wage,andbecomes applicable', 35955:'to this contract under law. d any such adjustment will be limited to increases or decreases in wages and fringe', 35956:'benefits as described in paragraph c of this clause, and to the accompanying increases or decreases in social security and', 35957:'unemployment taxes and workers’ compensation insurance; it shall not otherwise include any amount for general and administrative costs, overhead, or', 35958:'profit. e thecontractor shall notify the contractingofficer of anyincrease claimed underthis clause within 30 days after theeffective date ofthe wagechange,', 35959:'unless this period is extended bythe contracting officerin writing. thecontractor shall promptly notify thecontracting officer of any decreaseunder this clause,', 35960:'but nothing in the clause shall preclude thegovernment from asserting a claimwithin theperiod permitted by law. the notice shall contain', 35961:'astatement ofthe amount and the change in fixed hourly rates if this is a timeandmaterials or laborhour contract claimed and', 35962:'any relevant supporting data that the contractingofficer may reasonably require. upon agreement of theparties, thecontract price, contract unit price labor', 35963:'rates, or fixed hourly rates shall be modified in writing. the contractor shall continue performance pending agreement on or determination', 35964:'of anysuch adjustment and itseffective date. f the contracting officer or anauthorized representative shall, untilthe expiration of 3 years after', 35965:'final payment under the contract, have access to and the right to examine any directly pertinent books, documents, papers, and', 35966:'records of the contractor. end of clause 52.22245 [reserved] 52.22246 evaluation of compensationfor professional employees. as prescribed in 22.1103 ,', 35967:'insert the following provision: evaluation of compensation for professional employeesfeb 1993 a recompetition of service contracts may in some cases', 35968:'result in lowering the compensation salaries and fringe benefits paid or furnished professional employees. this lowering can be detrimental in', 35969:'obtaining the quality of professional services needed for adequate contract performance. it is therefore in the government’s best interest that', 35970:'professionalemployees, as defined in 29 cfr 541, be properly and fairly compensated. aspart of their proposals, offerors willsubmit a total', 35971:'compensation plan setting forth salaries and fringe benefits proposed for the professional employees who will work under the contract. the', 35972:'government will evaluate the plan to assure that it reflects a sound management approach and understanding of the contract requirements.', 35973:'this evaluation willinclude an assessmentof the offeror’sability toprovide uninterrupted highquality work. the professional compensation proposed will be considered in terms', 35974:'of its impact upon recruiting and retention, its realism, and its consistency with a total plan for compensation. supporting information', 35975:'will include data, such as recognized national and regional compensation surveys and studies of professional, public and private organizations, used', 35976:'in establishing the total compensation structure. b the compensation levels proposed should reflect a clear understanding of work to be', 35977:'performed and should indicate the capability of the proposed compensation structure to obtain and keep suitably qualified personnel to meet', 35978:'mission objectives. the salary rates or ranges must takeinto accountdifferencesin skills,the complexity of various disciplines, and professional job difficulty. additionally,', 35979:'proposals envisioningcompensation levels lower than those of predecessor contractors for the same work will be evaluatedon the basisof maintaining program', 35980:'continuity, uninterruptedhighquality work, and availability of required competent professional serviceemployees. offerors are cautionedthat lowered compensation for essentially the same professional', 35981:'work may indicate lack of sound management judgment and lack of understanding of the requirement. c the government is concerned', 35982:'with the quality and stability of the work force to be employed on this contract. professional compensation that is unrealistically', 35983:'low or not in reasonable relationship to the various job categories, since it may impair the contractor’s ability to attract', 35984:'and retain competent professionalservice employees, may be viewedas evidence of failure to comprehend the complexity of the contract requirements. d', 35985:'failure to comply with theseprovisions mayconstitute sufficient cause to justifyrejection of a proposal. end of provision 52.2236 subpart 52.2 text', 35986:'of provisions and clauses 52.22249 52.22247 [reserved] 52.22248 exemption from application of the service contract laborstandards to contracts for maintenance,', 35987:'calibration, or repair of certain equipmentcertification. as prescribed in 22.1006e1, insert the following provision: exemption from application of the service', 35988:'contract labor standards to contracts for maintenance, calibration, or repair of certain equipmentcertification may 2014 a theofferor shall check thefollowing', 35989:'certification: certification the offeror □ does □ does not certify that 1 the items of equipment to be serviced under', 35990:'this contract are used regularly for other than government purposes, and aresold ortraded bythe offerororsubcontractorin the case of an exempt', 35991:'subcontractor insubstantial quantities to the general public in the course of normal business operations; 2 the services will be furnished', 35992:'at prices which are, or are based on, established catalog or market prices for the maintenance, calibration, or repair of', 35993:'equipment. i an established catalog price is a price included in a catalog, price list, schedule, or other form that', 35994:'is regularly maintained by the manufacturer or the offeror, is either published or otherwise available for inspection by customers, and', 35995:'states prices at whichsales currently, or were last, made toa significantnumber of buyers constituting the general public. ii an established', 35996:'market price is a current price, established in the usual course of trade between buyers and sellersfree to bargain, which', 35997:'can be substantiatedfrom sources independent of the manufacturer or offeror; and 3 the compensation wage and fringe benefits plan for', 35998:'all service employees performing work under the contract are the same as that used for these employees and equivalent employees', 35999:'servicing the same equipment of commercial customers. b certification bythe offeror as to its compliance with respectto the contractalso constitutes', 36000:'its certification asto complianceby its subcontractor if it subcontracts out theexempt services. if the offerorcertifies to the conditions in paragraph', 36001:'a of this provision, and the contracting officer determines in accordancewith far 22.10034c3 that the service contract labor standards statute', 36002:'1 will not applyto this offeror, then the service contract labor standards clause in this solicitation will not be includedin', 36003:'any resultant contractto this offeror; or 2 will apply to this offeror, then the clause at 52.22251, exemption from application', 36004:'of the service contract labor standards to contracts for maintenance, calibration, or repair of certain equipmentrequirements, in this solicitation will', 36005:'not be included in any resultant contract awarded tothis offeror, and the offeror may beprovided an opportunity to submit a', 36006:'new offer on thatbasis. c if the offeror does notcertifyto theconditions in paragraph a of this provision 1 the clause', 36007:'in this solicitation at 52.22251, exemption from application of the service contract labor standards to contracts for maintenance, calibration, or', 36008:'repair of certain equipmentrequirements, will not be included in any resultant contract awarded to this offeror; and 2 the offeror', 36009:'shall notify the contracting officer as soon as possible, ifthe contracting officerdid not attach a service contract labor standards wage', 36010:'determination to the solicitation. d the contracting officer may not make an award tothe offeror, if the offeror fails toexecutethe', 36011:'certification in paragraph a of this provision or to contact the contracting officer as required in paragraphc of this provision.', 36012:'end of provision 52.22249 service contract labor standardsplace of performance unknown. as prescribed in 22.1006f, insert the following clause: service', 36013:'contract labor standardsplace of performance unknown may 2014 a this contract is subject to the service contract labor standards statute,', 36014:'and the place of performance was unknown when the solicitation was issued. in additionto places or areas identifiedin wage determinations,', 36015:'if any, attached to the solicitation, wage determinations have also been requested for the following: [insert places or areas]. the', 36016:'52.2237 52.22250 federal acquisition regulation contracting officerwill request wagedeterminations for additional placesor areasof performance if asked to do so in', 36017:'writing by [insert time and date]. b offerorswho intend to performin a place or area of performanceforwhich awage determination has', 36018:'not been attached or requested may neverthelesssubmit bids or proposals. however,a wage determination shall be requested and incorporated in the', 36019:'resultant contract retroactive to the date of contract award, and there shall be no adjustment in the contract price. end', 36020:'of clause 52.22250 combating trafficking in persons. as prescribed in 22.1705a1, insert the following clause: combating trafficking in persons nov', 36021:'2021 a definitions. as used in this clause agent meansany individual, including a director, anofficer, an employee, or anindependent contractor,', 36022:'authorized to act on behalf of the organization. coercion means 1 threats of serious harm to or physical restraint against', 36023:'any person; 2 any scheme, plan, or pattern intended to cause a person to believe that failure to perform an', 36024:'act would result in serious harm to or physical restraint against any person; or 3 the abuse or threatened abuse', 36025:'of the legal process. commercial sex act means any sex act on account of which anything of value is given', 36026:'to or received by any person. commercially available offtheshelf cots item — 1 means any item of supply including construction', 36027:'material that is— i a commercial product as defined in paragraph 1 of the definition of “commercial product” at federal', 36028:'acquisition regulationfar 2.101; ii sold in substantial quantities in the commercial marketplace; and iii offered tothe government, under a contract', 36029:'or subcontract at any tier, without modification, in the same form in which it is sold in the commercial marketplace;', 36030:'and 2 does not include bulk cargo, as defined in 46 u.s.c. 401024, such as agricultural products and petroleum products.', 36031:'debt bondage means the status or condition of a debtor arising from a pledge by the debtor of his or', 36032:'her personal services or of those of a person under his or her control as a security for debt, if', 36033:'the value of those services as reasonably assessed is not applied toward the liquidation of the debt or the length', 36034:'and nature of those services are not respectively limited and defined. employee means an employee of the contractor directly engaged', 36035:'in the performance of work under the contract who has other than a minimal impact or involvement in contract performance.', 36036:'forced labor means knowingly providing or obtaining the labor or services of a person 1 by threats of serious harm', 36037:'to, or physical restraint against, that person or another person; 2 by means of any scheme, plan, or pattern intended', 36038:'to cause the person to believe that, if the person did not perform suchlaboror services,that person or another person would', 36039:'suffer serious harm or physicalrestraint; or 3 by means of the abuse or threatened abuse of law or the legal', 36040:'process. involuntary servitude includes a condition of servitude induced by means of 1 any scheme, plan, or pattern intended to', 36041:'cause a person to believe that, if the person did not enter into or continue in such conditions, that person', 36042:'oranother person would sufferserious harm orphysical restraint; or 2 the abuse or threatened abuse of the legal process. recruitment fees', 36043:'means fees of anytype,including charges, costs, assessments, or otherfinancialobligations, that are associated with the recruiting process, regardless of the time,', 36044:'manner, or location of imposition or collection ofthe fee. 1 recruitment fees include, but are not limited to, the following', 36045:'fees when they are associated with the recruiting process for i soliciting, identifying, considering, interviewing, referring, retaining, transferring, selecting, training,', 36046:'providing orientation to, skills testing, recommending, or placing employees or potential employees; 52.2238 subpart 52.2 text of provisions and clauses', 36047:'52.22250 ii advertising iii obtaining permanent or temporary labor certification, including any associated fees; iv processing applications and petitions; v', 36048:'acquiring visas, including any associated fees; vi acquiring photographs and identity or immigration documents, such as passports, including any associated', 36049:'fees; vii accessing the job opportunity, including requiredmedical examinations andimmunizations; background, reference, and security clearance checks and examinations; and additional', 36050:'certifications; viii an employers recruiters, agents or attorneys, or other notary or legal fees; ix language interpretation or translation, arranging', 36051:'for or accompanying on travel, or providing other advice to employees or potential employees; x governmentmandated fees, such as border', 36052:'crossing fees, levies, or worker welfare funds; xi transportation and subsistence costs a while in transit, including, but not limited', 36053:'to, airfare or costs of other modes of transportation, terminal fees, and travel taxes associated with travel from the country', 36054:'of origin to the country of performance and the return journey upon the end of employment; and b from the', 36055:'airport or disembarkation point to the worksite; xii security deposits, bonds, and insurance; and xiii equipmentcharges. 2 a recruitment fee,', 36056:'as described in the introductory text of this definition, is a recruitment fee, regardless of whether the payment is i', 36057:'paid in property or money; ii deducted from wages; iii paid back in wage or benefit concessions; iv paid back', 36058:'as a kickback, bribe, inkind payment,free labor, tip, or tribute; or v collected by an employeror athird party, whether licensedor', 36059:'unlicensed,including, but not limited to a agents; b labor brokers; c recruiters; dstaffing firms including private employment and placementfirms; e', 36060:'subsidiaries/affiliates of the employer; f any agent or employee of such entities; and g subcontractors at all tiers. severe forms', 36061:'of trafficking in persons means 1 sex traffickingin which a commercial sexact is induced by force, fraud, orcoercion, or in', 36062:'which theperson induced to perform such act has not attained 18 years of age; or 2 the recruitment, harboring, transportation,', 36063:'provision, or obtaining of a person for labor or services, through the use of force, fraud, or coercion for thepurpose', 36064:'of subjection to involuntary servitude,peonage, debt bondage, or slavery. sex trafficking means therecruitment, harboring, transportation, provision, or obtaining ofa person', 36065:'for the purpose ofa commercial sex act. subcontract means any contract entered into by a subcontractor to furnish supplies or', 36066:'services for performance of a prime contract or a subcontract. subcontractor means any supplier,distributor, vendor,or firm thatfurnishes supplies or servicesto', 36067:'or for a prime contractor oranother subcontractor. united states means the 50 states, the district of columbia, and outlying areas.', 36068:'b policy. the united states government has adopted a policy prohibiting traffickingin persons including the trafficking related activities of this', 36069:'clause. contractors, contractor employees, and their agents shall not 1 engagein severeforms of trafficking in personsduring the period of performance', 36070:'of thecontract; 2 procure commercial sex acts during the period of performance of the contract; 3 use forced labor in', 36071:'the performance of the contract; 4 destroy, conceal, confiscate, or otherwisedeny access by an employee to the employee’s identity or', 36072:'immigration documents, such as passports or drivers licenses, regardless of issuing authority; 5 iusemisleadingorfraudulentpracticesduringtherecruitmentofemployeesorofferingofemployment,suchas failing to disclose, in a format', 36073:'and language understood by the employee or potential employee, basic information or making 52.2239 52.22250 federal acquisition regulation material misrepresentations', 36074:'during the recruitment of employees regarding the key terms and conditions of employment, including wages and fringe benefits, the location', 36075:'of work, the living conditions, housing and associated costs if employer or agent provided or arranged, any significant coststo becharged', 36076:'to theemployee or potential employee, and, if applicable,the hazardous nature of the work; ii use recruiters that do not comply', 36077:'with local labor laws of the country in which the recruiting takes place; 6 charge employees or potential employees recruitment', 36078:'fees; 7 i fail to provide return transportation or pay for the cost of return transportation upon the end of', 36079:'employment a for an employee who is not a national of the country in which the work is taking place', 36080:'and who was brought into that country for the purpose of working on a u.s. government contract or subcontract for', 36081:'portions of contracts performed outside the united states; or b for an employee who is not a united states national', 36082:'and who was brought into the united states for the purpose of working on a u.s. government contract or subcontract,', 36083:'if the payment of such costs is required under existing temporary worker programs or pursuant to a written agreement with', 36084:'the employee for portions of contracts performed inside the united states; except that ii the requirements of paragraphs b7i of', 36085:'this clause shall not apply to an employee who is a legally permitted to remain in the country of employment', 36086:'and who chooses to do so; or b exempted by an authorized officialof the contractingagency from the requirement to provide', 36087:'return transportation or pay for the cost of return transportation; iii the requirements ofparagraph b7i of this clause aremodified for', 36088:'a victim of trafficking in persons who is seeking victim services or legal redress in the country of employment, or', 36089:'for a witness in an enforcement action related to trafficking in persons. the contractor shall provide the return transportation or', 36090:'pay thecost of return transportationin a way that does not obstructthe victim services, legal redress, or witness activity. for example,', 36091:'thecontractor shall not only offer return transportation toa witness at atime when the witnessis still needed totestify. this paragraphdoes not', 36092:'apply when the exemptions atparagraph b7ii of thisclause apply. 8 provide or arrange housing that fails to meet the host', 36093:'country housing and safety standards; or 9 if required by law or contract, fail to provide an employment contract, recruitment', 36094:'agreement, or other required work document in writing. such written work document shall be in a language the employee understands.', 36095:'if the employee must relocate to perform the work, the work document shall be provided to the employee at least', 36096:'five days prior to the employeerelocating. the employee’s work document shall include, but is not limited to, details about work', 36097:'description, wages, prohibition on chargingrecruitment fees, work locations, livingaccommodations andassociated costs,time off, roundtrip transportation arrangements, grievance process, and the content', 36098:'of applicable laws and regulations that prohibit trafficking in persons. c contractor requirements. the contractor shall 1 notify its employees', 36099:'and agents of ithe united states governments policy prohibiting trafficking in persons,described in paragraph b of this clause; and iithe', 36100:'actions that will be taken against employees or agents for violations of this policy. such actions for employees may include,', 36101:'but are not limited to, removal from the contract, reduction in benefits, or termination of employment; and 2 takeappropriate action,', 36102:'upto and includingtermination, againstemployees, agents,or subcontractors that violate the policy in paragraph b of this clause. d notification. 1 the', 36103:'contractor shall inform the contracting officer and the agency inspectorgeneral immediately of i any credible information it receives from any', 36104:'source including host country law enforcement that alleges a contractor employee, subcontractor, subcontractor employee, or theiragenthas engaged in conduct that', 36105:'violates the policy in paragraph b of this clause see also 18 u.s.c. 1351, fraud in foreign labor contracting, and', 36106:'52.20313b3ia, if that clause is included in the solicitation orcontract, whichrequiresdisclosure tothe agency officeof the inspector general when the contractor', 36107:'has credible evidence of fraud; and iiany actionstakenagainst a contractor employee, subcontractor,subcontractoremployee, or their agent pursuant to this clause. 2', 36108:'if the allegation may be associated with more than one contract, the contractor shall inform the contractingofficer for the contract', 36109:'with the highest dollar value. 52.2240 subpart 52.2 text of provisions and clauses 52.22250 e remedies. in addition to other', 36110:'remediesavailable to the government, the contractor’s failure to comply with the requirements of paragraphs c, d, g, h, or i', 36111:'of this clause may result in 1 requiring the contractor to remove a contractor employee or employees from the performance', 36112:'of the contract; 2 requiring the contractor to terminate a subcontract; 3 suspension of contract payments until the contractor has', 36113:'taken appropriate remedial action; 4 loss of award fee, consistent with the award fee plan, for the performance period in', 36114:'which the government determined contractor noncompliance; 5 declining to exercise available options under the contract; 6 terminationof the contract for', 36115:'default or cause, in accordancewith the termination clause of this contract; or 7 suspension or debarment. f mitigating and aggravating', 36116:'factors. when determining remedies, thecontracting officer may consider the following: 1 mitigating factors. thecontractor hada trafficking in persons compliance plan', 36117:'or anawarenessprogramat the time of the violation, was in compliance with the plan, and has taken appropriate remedial actions for', 36118:'the violation, that may include reparation to victims for such violations. 2 aggravating factors. the contractor failed to abate an', 36119:'alleged violation or enforce the requirements of a compliance plan, when directed by the contracting officer to do so. g', 36120:'full cooperation. 1 the contractor shall, at a minimum idisclose tothe agency inspector generalinformationsufficient to identifythe nature and extent of', 36121:'an offense and the individuals responsible for the conduct; ii provide timely and complete responses to government auditors and investigators', 36122:'requests for documents; iii cooperatefully in providing reasonable access to its facilities and staffboth inside and outside the u.s. to', 36123:'allow contracting agencies and other responsible federal agencies to conduct audits, investigations, or other actions to ascertaincompliance with the trafficking', 36124:'victims protection act of 2000 22 u.s.c. chapter 78, e.o. 13627, or any other applicable law or regulation establishing restrictionson', 36125:'trafficking in persons, the procurement ofcommercial sex acts, or the use of forced labor; and iv protect all employees suspected', 36126:'of being victims of or witnesses to prohibited activities, prior to returning to the country from which the employee was', 36127:'recruited, and shall not prevent or hinder the ability of these employees from cooperating fully with government authorities. 2 the', 36128:'requirement for full cooperationdoes not foreclose any contractor rights arising in law, the far, or the terms of the contract.', 36129:'it does not irequire the contractor to waive its attorneyclient privilegeor the protections afforded bythe attorney work product doctrine; iirequire', 36130:'any officer, director, owner, employee,or agent of the contractor, including a sole proprietor, to waive his or her attorney client', 36131:'privilege or fifth amendment rights; or iii restrict the contractor from a conducting an internal investigation; or b defending a', 36132:'proceeding or dispute arising under the contract or related to a potential or disclosed violation. h compliance plan. 1 this', 36133:'paragraph h applies to any portion of the contract that iisforsupplies, other than commerciallyavailableofftheshelf items, acquired outside the united states,', 36134:'or services to be performed outside the united states; and ii has an estimated value that exceeds $550,000. 2 the', 36135:'contractor shall maintain a compliance plan during the performance of the contract that is appropriate ito thesize and complexity of', 36136:'the contract; and iito the natureandscope of the activities to be performedforthe government, including the number of non united states', 36137:'citizens expected to be employed and the risk that the contract or subcontract will involve services or supplies susceptible to', 36138:'trafficking inpersons. 3 minimum requirements. the compliance plan must include, at a minimum, the following: ian awareness program to inform', 36139:'contractor employees about thegovernment’s policy prohibiting trafficking related activities described in paragraph b of this clause, the activities prohibited, and', 36140:'the actions that will be taken against theemployee for violations. additional information about trafficking in persons and examples of awareness', 36141:'programs can be found at the websiteforthe department of state’s office to monitor and combattrafficking in persons at http:// www.state.gov/j/tip/.', 36142:'52.2241 52.22250 federal acquisition regulation ii a process for employees to report, without fear of retaliation, activity inconsistent with the', 36143:'policy prohibiting trafficking in persons,including ameans to make available to all employees the hotline phone number ofthe globalhuman traffickinghotline at', 36144:'1844888free and its email address at help@befree.org. iii a recruitment and wage plan that only permits the use of recruitment', 36145:'companies with trained employees, prohibits charging recruitment fees tothe employees or potential employees and ensuresthat wages meetapplicable host country legal', 36146:'requirements or explains any variance. iv a housing plan, if the contractor or subcontractor intends to provide or arrange housing,', 36147:'that ensures that the housing meets hostcountry housing and safety standards. v procedures toprevent agentsandsubcontractors at any tierand atanydollarvalue from', 36148:'engagingin trafficking in persons including activities in paragraphbof this clause and to monitor, detect, and terminate any agents, subcontracts, or', 36149:'subcontractor employees that have engaged in such activities. 4 posting. i the contractor shall post the relevant contents of the', 36150:'compliance plan, no later than the initiation of contract performance, at the workplace unless the work is to be performed', 36151:'in the field or not in a fixed location and on the contractors web site if oneis maintained. if posting', 36152:'at the workplace oron the website is impracticable, the contractor shall provide the relevant contents of the compliance plan to', 36153:'each worker in writing. iithe contractor shall provide the compliance plan tothe contracting officerupon request. 5 certification. annually after receiving', 36154:'an award, the contractor shall submit a certification to the contracting officer that i it has implemented a compliance plan', 36155:'to prevent any prohibited activities identified at paragraph b of this clause and to monitor, detect, and terminate any agent,', 36156:'subcontract or subcontractor employee engaging in prohibited activities; and ii after having conducted due diligence, either ato the bestof the', 36157:'contractorsknowledge and belief, neither it nor any of itsagents, subcontractors, or their agents is engaged in any such activities; or', 36158:'b if abuses relating to any of the prohibited activities identified in paragraph b of this clause have been found,', 36159:'the contractor or subcontractor has taken the appropriate remedial and referral actions. i subcontracts. 1 the contractor shall include the', 36160:'substance of this clause, including this paragraph i, in all subcontracts and in all contracts with agents. the requirements in', 36161:'paragraph h of this clause apply only to any portion of the subcontract that iisforsupplies, other than commerciallyavailableofftheshelf items, acquired', 36162:'outside the united states, or services to be performed outside the united states; and ii has an estimated value that', 36163:'exceeds $550,000. 2 if any subcontractor is required by this clause to submit a certification, the contractor shall require submission', 36164:'prior to the award of the subcontractandannually thereafter. the certification shall cover the items in paragraphh5 of this clause. end', 36165:'of clause alternate i mar 2015. as prescribed in 22.1705a2, substitute the following paragraph in place of paragraph c1 i', 36166:'of the basic clause: ia the united states governments policy prohibiting trafficking in persons described in paragraphbof this clause; and', 36167:'b the following directives or notices applicable to employees performing work at the contract places of performance as indicated below:', 36168:'document title document may be obtained from: applies to performance in/at: [contracting officer shall insert title of directive/notice; indicate the', 36169:'document is attached or provide source such as website link for obtaining document; and, indicate the contract performance location outside', 36170:'the united states. to which the document applies.] 52.2242 subpart 52.2 text of provisions and clauses 52.22252 52.22251 exemption from', 36171:'application of the service contract laborstandards to contracts for maintenance, calibration,or repair of certain equipmentrequirements. as prescribed in 22.1006e2, insert', 36172:'the following clause: exemption from application of the service contract labor standards to contracts for maintenance, calibration, or repair of', 36173:'certain equipmentrequirements may 2014 a the items of equipment to be serviced under this contract are used regularly for other', 36174:'than government purposes, and are sold or traded by the contractor in substantial quantities to the general public in the', 36175:'course of normal business operations. b the services shall be furnished at prices which are, or are based on, established', 36176:'catalog or market prices for the maintenance, calibration, or repair of equipment. 1 an established catalog price is a price', 36177:'included in a catalog, price list, schedule, or other form that is regularly maintained by the manufacturer or the contractor,', 36178:'is eitherpublished orotherwise available for inspection by customers,and states prices at whichsales currently, or were last, made toa significantnumber of', 36179:'buyers constituting the general public. 2 an established market price is a current price, established in the usual course of', 36180:'trade between buyers and sellers free to bargain, which can be substantiated from sourcesindependent ofthe manufactureror contractor. c the compensation', 36181:'wage and fringe benefits plan for all service employees performing work under the contract shall be the same as that', 36182:'used for these employees and for equivalent employees servicing the same equipment of commercial customers. d the contractor is responsible', 36183:'for compliance with all the conditions of this exemption by its subcontractors. the contractor shall determine the applicability of this', 36184:'exemption to any subcontract on or before subcontract award. in making a judgment that theexemption applies, the contractorshallconsider all factors', 36185:'and make an affirmative determination that all of the conditions in paragraphs a through c of this clause will be', 36186:'met. e if the department of labor determines that any conditions for exemption in paragraphs a through c of this', 36187:'clause have not been met, the exemption shall be deemed inapplicable, and the contract shall become subject to the service', 36188:'contract labor standards statute. in such case, the procedures at 29 cfr 4.123e1iv and 29 cfr 4.5c will be followed.', 36189:'f the contractor shall include the substance of this clause, including this paragraph f, in subcontracts for exempt services under', 36190:'this contract. end of clause 52.22252 exemption from application of the service contract laborstandards to contracts for certain services certification.', 36191:'as prescribed in 22.1006e3, insert the following provision: exemption from application of the service contract labor standards to contracts for', 36192:'certain servicescertification may 2014 a theofferor shall check thefollowing certification: certification the offeror □ does □ does not certify that', 36193:'1 the services under the contract areoffered and sold regularly to nongovernmental customers, and areprovided by theofferor or subcontractor in', 36194:'the case ofan exempt subcontract to the general public in substantial quantities in the course of normal business operations; 2', 36195:'the contract services are furnished at prices that are, or are based on, established catalog or market prices. an established', 36196:'catalog price is a price included in a catalog, price list, schedule, or other form that is regularly maintained by', 36197:'themanufacturer or the offeror, is eitherpublished orotherwise available for inspection by customers,andstates prices at which sales currently, or were last,', 36198:'made toa significant number of buyers constituting the general public. an established market price is a current price, established in', 36199:'the usual course of ordinary and usual trade between buyers and sellers free to bargain, which canbe substantiated from sources', 36200:'independentof the manufacturer or offeror; 3 each service employee who will perform the services under the contract will spend only', 36201:'a small portion of his or her time a monthly average of less than 20 percent of the available hours', 36202:'on an annualized basis, or less than 20 percent of available hours during the contract period if the contract period', 36203:'is less than a month servicing the government contract; and 52.2243 52.22253 federal acquisition regulation 4 the offeror uses the', 36204:'samecompensation wage and fringe benefits plan for all service employees performing work underthe contract as theofferor uses for these employees', 36205:'and for equivalent employeesservicingcommercial customers. b certification bythe offeror as to its compliance with respectto the contractalso constitutes its certification', 36206:'asto complianceby its subcontractor if it subcontracts out theexempt services. if the offerorcertifies to the conditions in paragraph a of', 36207:'this provision, and the contracting officer determines in accordancewith far 22.10034d3 that the service contract labor standards statute 1 will', 36208:'not applyto this offeror, then the service contract labor standards clause in this solicitation will not be includedin any resultant', 36209:'contractto this offeror; or 2 will apply to this offeror, then the clause at far 52.22253, exemption from application of', 36210:'the service contract labor standards to contracts for certain servicesrequirements, in this solicitation will not be included in any resultant', 36211:'contract awarded to this offer, and the offeror may be provided an opportunity to submit anew offer on that basis.', 36212:'c if the offeror does notcertifyto theconditions in paragraph a of this provision 1 the clause of this solicitation at', 36213:'52.22253, exemption from application of the service contract labor standards to contracts for certain servicesrequirements, will not be included in', 36214:'anyresultant contract to this offeror; and 2 the offeror shall notify the contracting officer as soon as possible if the', 36215:'contracting officer did not attacha service contract labor standards wage determination to the solicitation. d the contracting officer may not', 36216:'make an award tothe offeror, if the offeror fails toexecutethe certification in paragraph a of this provision or to contact', 36217:'the contracting officer as required in paragraphc of this provision. end of provision 52.22253 exemption from application of the service', 36218:'contract laborstandards to contracts for certain services requirements. as prescribed in 22.1006e4, insert the following clause: exemption from application of', 36219:'the service contract labor standards to contracts for certain servicesrequirements may 2014 a theservicesunder this contract are offered and sold', 36220:'regularly to nongovernmentalcustomers, and are provided by the contractor to the general public in substantial quantities in the course of', 36221:'normal business operations. b the contract services are furnished at prices that are, or are based on, established catalog or', 36222:'market prices. an established catalog price is a price included in a catalog, price list, schedule, or other form that', 36223:'is regularly maintained by themanufacturer or the contractor, iseither publishedor otherwise available for inspection bycustomers, and statesprices at which sales', 36224:'currently, or werelast, made to a significant numberof buyers constitutingthe general public. an established market price is a current price,', 36225:'established in the usual course of ordinary and usual trade between buyers and sellers free to bargain, which canbe substantiated', 36226:'from sources independentof the manufacturer or contractor. c each service employee who will perform the services under the contract will', 36227:'spend only a small portion of his or her time a monthly average of less than 20 percent of the', 36228:'available hours on an annualized basis, or less than 20 percent of available hours during the contract period if the', 36229:'contract period is less than a month servicing the government contract. d the contractor uses the same compensation wage and', 36230:'fringe benefits plan for all service employees performing work under the contract as the contractor uses for these employees and', 36231:'for equivalent employees servicing commercial customers. e 1exceptforservicesidentifiedinfar 22.10034d1iv, the subcontractor for exempt services shall be selected for award based', 36232:'on other factors in addition to price or cost with the combination of other factors at least as important as', 36233:'price or cost; or 2 a subcontract for exempt services shall be awarded on a sole source basis. f the', 36234:'contractor is responsible for compliance with all the conditions of this exemption by its subcontractors. the contractor shall determine in', 36235:'advance, based on the nature of the subcontract requirements and knowledge of the practices of likely subcontractors, that all or', 36236:'nearly all likely subcontractors will meet the conditions in paragraphs a through d of this clause. if the services are', 36237:'currently being performed under a subcontract, the contractor shall consider the practices of the existing subcontractor in making a determination', 36238:'regarding the conditions in paragraphs a through d of this clause. if the contractor has reason to doubt the validity', 36239:'of the certification, the requirements of the service contract labor standards statute shall be included in the subcontract. 52.2244 subpart', 36240:'52.2 text of provisions and clauses 52.22254 g if the department of labor determines that any conditions for exemption at', 36241:'paragraphs a through e of this clause have not been met, the exemption shall be deemed inapplicable, and the contract', 36242:'shall become subject to the service contract labor standards statute. in such case, the procedures in at 29 cfr 4.123e2iii', 36243:'and 29 cfr 4.5c will be followed. h the contractor shall include the substance of this clause, including this paragraph', 36244:'h, in subcontracts for exempt services under this contract. end of clause 52.22254 employment eligibility verification. as prescribed in 22.1803,', 36245:'insert the following clause: employment eligibility verification may 2022 a definitions. as used in this clause commercially available offtheshelf cots', 36246:'item— 1 means any item of supply that is— i a commercial product as defined in paragraph 1 of the', 36247:'definition of “commercial product” at federal acquisition regulationfar 2.101; ii sold in substantial quantities in the commercial marketplace; and iii', 36248:'offered tothe government, without modification, in the same form in which it is sold in the commercial marketplace; and 2', 36249:'does not include bulk cargo, as defined in 46 u.s.c. 401024, such as agricultural products and petroleum products. per 46', 36250:'cfr 525.1 c2, bulk cargo means cargo that is loaded and carried in bulk onboard ship without mark or count,', 36251:'in a loose unpackaged form, having homogenous characteristics. bulk cargo loaded into intermodal equipment, except lash or seabee barges, is', 36252:'subjectto mark and count and, therefore, ceases to be bulk cargo. employee assigned to the contract means an employee who', 36253:'was hired after november 6, 1986 after november 27, 2009 in the commonwealth of the northern mariana islands, who is', 36254:'directly performing work, in the united states, under a contract that is required to include the clause prescribed at 22.1803.', 36255:'an employee is not considered to be directly performing work under a contract if the employee 1 normally performs support', 36256:'work, such as indirect or overhead functions; and 2 does not perform any substantial duties applicable to the contract. subcontract', 36257:'means any contract, as defined in 2.101, entered into by a subcontractor to furnish supplies or services for performance of', 36258:'a prime contract or a subcontract. it includes but is not limited to purchase orders, and changes and modifications to', 36259:'purchase orders. subcontractor means any supplier,distributor, vendor,or firm thatfurnishes supplies or servicesto or for a prime contractor or another subcontractor.', 36260:'united states, as defined in 8 u.s.c. 1101a38, means the 50 states, the district of columbia, puerto rico, guam, the', 36261:'commonwealth of thenorthern mariana islands, and the u.s. virgin islands. b enrollment and verification requirements.1if the contractor isnot enrolled asa', 36262:'federal contractorin everify at time of contract award, the contractor shall i enroll. enroll as a federal contractor inthe everifyprogramwithin', 36263:'30 calendar daysof contractaward; ii verify all new employees. within 90 calendar days of enrollment in the everify program,begin to', 36264:'use everify to initiate verification of employment eligibility of allnew hires of thecontractor, who are working in the united states,', 36265:'whether or not assigned to the contract, within 3 business days after the date of hire but see paragraph b3', 36266:'of this section; and iii verify employees assigned to the contract. for each employee assigned to the contract, initiate verification', 36267:'within 90 calendardays after date of enrollment orwithin 30 calendar daysof the employee’s assignment to the contract, whichever date is', 36268:'later but see paragraph b4 of this section. 2 if the contractor is enrolled as afederal contractor in everify at', 36269:'timeof contractaward, the contractor shall use everify to initiate verification of employment eligibility of i all new employees. a enrolled', 36270:'90 calendar days or more. the contractor shall initiate verification of all new hires of thecontractor, who areworking in the', 36271:'unitedstates, whether or notassigned to the contract, within 3 business days after the date of hire but see paragraph b3', 36272:'of this section; or 52.2245 52.22255 federal acquisition regulation b enrolled less than 90 calendar days. within90 calendar days after', 36273:'enrollmentas afederal contractor in everify, the contractorshallinitiate verification of all new hires of the contractor, whoare working in theunited states,', 36274:'whether or not assigned to the contract, within 3 business days after the date of hire but see paragraph b3', 36275:'of this section; or ii employees assigned to the contract. for each employee assigned to the contract, the contractor shall', 36276:'initiate verification within 90 calendar days after date of contract award or within 30 days after assignment to the contract,', 36277:'whichever date is later but see paragraph b4 of this section. 3 if the contractor is an institution of higher', 36278:'education as defined at 20 u.s.c. 1001a; a state or local government or the government of a federally recognized indian', 36279:'tribe; or a surety performing under a takeover agreement entered into with a federal agency pursuant to a performance bond,', 36280:'the contractor may choose to verify only employees assigned to the contract, whether existing employees or new hires. the contractor', 36281:'shall follow the applicable verification requirements at b1 orb2 respectively, except that any requirement for verification of new employees applies', 36282:'only to newemployees assigned to the contract. 4 option to verify employment eligibility of all employees. the contractor may elect', 36283:'to verify all existing employees hired after november 6, 1986 after november 27, 2009, in the commonwealth of the northern', 36284:'mariana islands, rather than just those employees assigned to the contract. the contractor shall initiate verification for each existing employee', 36285:'working in the united states who was hired after november 6, 1986 after november 27, 2009, in the commonwealth of', 36286:'the northern mariana islands, within 180 calendar days of ienrollment in the everifyprogram;or iinotificationto everify operations of the contractor’s decision', 36287:'to exercise thisoption, using the contact information provided inthe everifyprogrammemorandum ofunderstanding mou. 5 the contractor shall comply, for the period', 36288:'ofperformance of this contract, with the requirements of theeverify program mou. i the department of homeland security dhs or the', 36289:'social security administration ssa may terminate the contractor’smou and deny access tothe everify system in accordance with the termsof the', 36290:'mou. insuch case, the contractor will bereferred to a suspensionor debarment official. iiduring the periodbetween termination of the mou and', 36291:'a decision by the suspension ordebarment official whether to suspend or debar, the contractor is excused from its obligations underparagraph', 36292:'b ofthis clause. ifthe suspensionor debarment officialdeterminesnot to suspendor debarthe contractor, thenthe contractor must reenroll in e verify. c web', 36293:'site. information onregistration for anduse ofthe everify program can be obtained via the internetat the department of homeland security web', 36294:'site: https://www.everify.gov. d individuals previously verified. the contractor is not required by this clause to perform additional employment verificationusing everify', 36295:'for anyemployee 1 whose employment eligibilitywas previously verified by thecontractor through the everifyprogram; 2 who has been granted and holds', 36296:'an active u.s. government security clearance for access to confidential, secret, or top secret information in accordance with the national', 36297:'industrial security program operating manual; or 3 who has undergonea completed background investigation and been issued credentials pursuant to homeland', 36298:'security presidential directive hspd12, policy for a common identification standard for federal employees and contractors. e subcontracts. the contractor shall', 36299:'include the requirements of this clause, including this paragraph e appropriately modified for identification of the parties, in each subcontract', 36300:'that 1 is for— i services except for commercial services that are part of the purchase of a cots item', 36301:'or an item that would bea cots item,but for minormodifications, performed bythe cots provider, and are normally provided for that', 36302:'cots item; or ii construction; 2 has a value of more than $3,500; and 3 includes work performed in the', 36303:'united states. end of clause 52.22255 minimum wagesfor contractor workers underexecutive order 14026. as prescribed in 22.1906, insert the following', 36304:'clause: 52.2246 subpart 52.2 text of provisions and clauses 52.22255 minimum wages for contractor workers under executive order 14026 jan', 36305:'2022 a definitions. as used in this clause— united states means the 50 states, the district of columbia, puerto rico,', 36306:'the northern mariana islands, american samoa, guam,the u.s. virgin islands, johnston island,wake island, and theoutercontinental shelf as defined inthe outer', 36307:'continental shelf lands act 43 u.s.c. 1331, et seq.. worker – 1 i means any person engaged in performing work', 36308:'on, or in connection with, a contract covered by executive order 14026, and– a whose wages under such contract are', 36309:'governed by the fair labor standards act 29 u.s.c. chapter 8, the servicecontract laborstandards statute 41 u.s.c. chapter 67,or the', 36310:'wagerate requirements constructionstatute 40 u.s.c. chapter 31, subchapter iv; b other thanindividuals employedin a bonafide executive, administrative, or professional capacity,', 36311:'as those terms are defined in 29 cfr part 541; and c regardless of the contractual relationship alleged to exist', 36312:'between the individual and the employer. ii includes workers performing on, or in connection with, the contract whose wages are', 36313:'calculated pursuant to special certificates issued under 29 u.s.c. 214c. iii also includes any person working on, or in connection', 36314:'with, the contract and individually registered in a bona fide apprenticeshipor trainingprogramregisteredwith the department of labor’s employment and training administration,', 36315:'office of apprenticeship,or with a stateapprenticeship agency recognized by theofficeof apprenticeship. 2 i a worker performs on a contract if', 36316:'the worker directly performs the specific services called for by the contract; and ii a worker performs in connection with', 36317:'a contract if the workers work activities are necessary to the performance of a contract but are not the specific', 36318:'services called for by the contract. b executive order minimum wage rate. 1 the contractor shall pay to workers, while', 36319:'performing in the united states, and performing on, or in connection with, this contract, a minimum hourly wage rate of', 36320:'$15.00 per hour beginning january 30, 2022. 2 the contractor shall adjust the minimum wage paid, if necessary, beginning january', 36321:'1, 2023, andannually thereafter, to meet the applicableannual e.o. minimum wage. the administrator of thedepartment oflabor’s wage and hour division', 36322:'the administrator will publish annual determinations in the federal register no later than 90 days before the effective date of', 36323:'thenew e.o. minimum wage rate. the administrator willalso publishthe applicable e.o. minimum wage on https://www.sam.gov or any successor website, and', 36324:'a general notice on all wage determinations issued under the service contractlabor standards statute or the wage rate requirements construction', 36325:'statute, that will provide information on the e.o. minimum wage and how to obtain annual updates. the applicable published e.o.', 36326:'minimum wage is incorporated by reference into this contract. 3 ithecontractormayrequestapriceadjustmentonlyaftertheeffectivedateofthenewannuale.o. minimum wage determination. prices will be adjusted only for', 36327:'increased labor costs including subcontractor labor costs as a result of an increase in the annual e.o. minimum wage, and', 36328:'for associated labor costs including those for subcontractors. associated labor costs shall include increases or decreases that result from changes', 36329:'in social security and unemployment taxes and workers’ compensation insurance, but will not otherwise include any amount for general and', 36330:'administrative costs, overhead, or profit. ii subcontractors may be entitled to adjustments due to the new minimum wage, pursuant to', 36331:'paragraph b2. contractors shall consider any subcontractor requests for such price adjustment. iii the contracting officer will not adjustthe contract', 36332:'price underthis clause for anycosts other than those identified in paragraph b3i of this clause, and will not provide duplicate', 36333:'price adjustments with any price adjustment underclauses implementing the service contract labor standards statute or the wage rate requirementsconstruction statute.', 36334:'4 the contractor warrants that the prices in this contract do not include allowance for any contingency to cover increased', 36335:'costs for which adjustment is provided under this clause. 5 a pay period under this clause may notbe longerthan semimonthly,but', 36336:'may be shorter to complywith any applicable law or other requirement underthiscontract establishing a shorter pay period. workers shall bepaid', 36337:'no laterthan one pay period following the end of the regular pay period in which such wages were earned or', 36338:'accrued. 52.2247 52.22255 federal acquisition regulation 6 the contractor shall pay, unconditionally to each worker, all wages due free and', 36339:'clear without subsequent rebate or kickback. the contractormay make deductions that reduce a worker’s wages below thee.o. minimum wage rate', 36340:'onlyif done in accordance with 29 cfr 23.230, deductions. 7 the contractor shall not discharge any part of its minimum', 36341:'wage obligation under this clauseby furnishing fringe benefits or, with respectto workers whose wages are governed by the service contractlabor', 36342:'standards statute, the cash equivalent thereof. 8 nothing in this clause shall excuse the contractor from compliance with any applicable', 36343:'federal or state prevailing wage law or any applicable law or municipal ordinance or any applicable contract establishing a minimum', 36344:'wage higher than thee.o. 14026 minimum wage. however, wage increases undersuch other laws or municipal ordinances are notsubject to price', 36345:'adjustment under this subpart. 9 the contractor shall pay the e.o. minimum wage rate whenever it is higher than any', 36346:'applicable collective bargainingagreements wage rate. 10 the contractor shall follow the policies and procedures in 29 cfr 23.240b and 23.280', 36347:'for treatment of workers engaged in an occupation in which they customarily and regularly receive more than $30 a month', 36348:'in tips. c 1 this clause applies to workers as defined in paragraph a. as provided in that definition– iworkers', 36349:'are covered regardlessof the contractual relationshipalleged to exist between the contractor or subcontractor and the worker; iiworkerswith disabilities whose wages', 36350:'are calculated pursuant to special certificates issued under 29 u.s.c. 214c are covered; and iii workerswho are registered in a', 36351:'bona fide apprenticeship program or training program registered with the department of labor’s employment and training administration, office of apprenticeship,', 36352:'orwith a state apprenticeship agency recognized by theofficeof apprenticeship, arecovered. 2 this clause does not apply to– i fair labor', 36353:'standards act flsacovered individuals performing in connection with contracts covered by the e.o., i.e. those individuals who perform duties necessary', 36354:'to the performance of the contract, but who are not directly engaged in performing the specific work called for by', 36355:'the contract, and who spend less than 20 percent of their hours worked in a particular workweek performing in connection', 36356:'with such contracts; ii individuals exempted from the minimum wage requirements of the flsa under 29 u.s.c. 213a and 214a', 36357:'and b, unless otherwise covered by the service contract labor standards statute, or the wage rate requirements construction statute. these', 36358:'individuals include but are not limited to a learners, apprentices, or messengers whose wages are calculated pursuant to special certificates', 36359:'issued under 29 u.s.c. 214a ; b students whose wages are calculated pursuant to special certificates issued under 29 u.s.c.', 36360:'214b ; and c those employed in a bona fide executive, administrative, or professional capacity 29 u.s.c. 213a1 and 29', 36361:'cfr part 541. d notice. the contractor shall notify all workers performing work on, or in connection with, this contract', 36362:'of the applicable e.o. minimum wage rate under thisclause. with respectto workers coveredby the service contract labor standards statute orthe', 36363:'wage raterequirements construction statute, thecontractor maymeet this requirement by posting, ina prominent andaccessibleplace at the worksite, the applicable wage determinationunder', 36364:'thosestatutes. with respect to workers whose wages are governed by the flsa, the contractor shall post notice, utilizing the poster', 36365:'provided by theadministrator, which can be obtainedat www.dol.gov/agencies/whd/governmentcontracts, in a prominent and accessible place at the worksite. contractors that customarily', 36366:'post notices to workers electronically may post the notice electronically provided theelectronic posting is displayed prominentlyon any web site that', 36367:'is maintained by thecontractor, whether external or internal, and customarily used for notices to workers about terms and conditions of', 36368:'employment. e payroll records. 1 the contractor shall make and maintain records, for three years after completion of the work,', 36369:'containing the following information for each worker: i name, address, and social security number; iithe worker’s occupations orclassifications; iii the', 36370:'rate or rates of wages paid; iv the number of daily and weekly hours worked by each worker; v any', 36371:'deductions made; and vi total wages paid. 52.2248 subpart 52.2 text of provisions and clauses 52.22256 2 the contractor shall', 36372:'make records pursuant to paragraph e1 of this clause available for inspection and transcription by authorized representatives of the administrator.', 36373:'the contractor shall also make suchrecords availableupon request ofthe contracting officer. 3 the contractor shall make a copy of the', 36374:'contract available, as applicable, for inspection or transcription by authorized representatives ofthe administrator. 4 failure to comply with this paragraph', 36375:'e shall be a violation of 29 cfr 23.260 and this contract. upon direction of the administrator or uponthe contracting', 36376:'officers own action, payment shall be withheld until such time as the noncompliance is corrected. 5 nothing inthisclause limits or', 36377:'otherwise modifiesthe contractor’spayroll and recordkeeping obligations, if any, underthe servicecontract laborstandards statute, the wage rate requirements construction statute, the fairlabor', 36378:'standards act, or anyother applicable law. f access. the contractor shall permit authorized representatives of the administrator to conduct investigations,', 36379:'including interviewing workers at the worksite during normal working hours. g withholding. thecontracting officer,upon his or herown action or upon', 36380:'written requestof the administrator, will withhold funds or cause funds to be withheld, from the contractor under this or any', 36381:'other federal contract with the same contractor, sufficient to pay workers the full amount of wagesrequired by this clause. h', 36382:'disputes. department of labor has set forth in 29 cfr 23.510, disputes concerning contractor compliance, the procedures for resolving disputes', 36383:'concerninga contractor’s compliancewith department of labor regulations at 29 cfr part 23. such disputes shall be resolved in accordance with', 36384:'those procedures and not the disputes clause of this contract. these disputes include disputes betweenthe contractor or any of its', 36385:'subcontractors and the contracting agency, the department of labor, orthe workers or their representatives. iantiretaliation. the contractorshallnot discharge or in', 36386:'any other manner discriminateagainst any worker because such worker has filed any complaint or instituted or caused to be instituted', 36387:'any proceeding under or related to compliance with the e.o. or this clause, or has testified or is about to', 36388:'testify in any such proceeding. j subcontractor compliance. the contractor is responsible for subcontractor compliance with the requirements of this', 36389:'clause and may be held liable for unpaid wages due subcontractor workers. k subcontracts. the contractor shall include the substance', 36390:'of this clause, including this paragraph k in all subcontracts, regardless of dollar value,that aresubject to the service contract labor', 36391:'standards statute or the wage rate requirements construction statute, and are to be performed in whole or in part in', 36392:'the united states. end of clause 52.22256 certification regarding trafficking inpersons compliance plan. as prescribed in 22.1705b, insert the following', 36393:'provision: certification regarding trafficking in persons compliance plan oct 2020 a theterm commercially available offtheshelf cots item, is defined in', 36394:'the clause of thissolicitation entitled combating trafficking in persons far clause 52.22250. b the apparent successful offeror shall submit, prior', 36395:'toaward,a certification, as specified in paragraph c of this provision, for the portion if any of the contract that 1', 36396:'is for supplies, otherthan commercially available offtheshelf items,to beacquired outside the united states, or services to be performed outside the', 36397:'united states; and 2 has an estimated value that exceeds $550,000. c the certification shall state that 1 it has', 36398:'implemented a compliance plan to prevent any prohibited activities identified in paragraph b of the clause at 52.22250, combating trafficking', 36399:'in persons,and to monitor, detect,andterminatethe contract with asubcontractor engaging in prohibited activities identified at paragraph b of the clause at', 36400:'52.22250,combating trafficking in persons;and 2 after having conducted due diligence, either ito thebestof the offeror’s knowledge and belief, neither it', 36401:'nor any ofits proposed agents,subcontractors, or their agents is engaged in any such activities; or 52.2249 52.22257 federal acquisition regulation', 36402:'ii if abuses relating to any of the prohibited activities identified in 52.22250b have been found, theofferoror proposed subcontractor has', 36403:'taken the appropriate remedial and referral actions. end of provision 52.22257 [reserved]. 52.22258 [reserved]. 52.22259 [reserved]. 52.22260 [reserved]. 52.22261 [reserved].', 36404:'52.22262 paid sick leave under executive order 13706. as prescribed at 22.2110 , insert the following clause: paid sick leave', 36405:'under executive order 13706 jan 2022 a definitions. as used in this clause in accordance with 29 cfr 13.2child, domestic', 36406:'partner, and domestic violence have the meaning given in 29 cfr 13.2. employee– 1 i means any person engaged in', 36407:'performing work on or in connection with a contract covered by executive order e.o. 13706; and a whose wages under', 36408:'such contract are governed by the service contract labor standards statute 41 u.s.c. chapter 67,the wage raterequirements construction statute 40', 36409:'u.s.c. chapter 31, subchapter iv, or the fair labor standards act 29 u.s.c. chapter 8; b including employees who qualify', 36410:'for an exemption from the fair labor standards acts minimum wage and overtime provisions; c regardless of the contractual relationship', 36411:'alleged to exist between the individual and the employer; and ii includes any person performing work on or in connection', 36412:'with the contract and individually registered in a bona fide apprenticeshipor trainingprogramregisteredwith the department of labors employment and trainingadministration, office', 36413:'of apprenticeship,or with a stateapprenticeship agency recognized by theofficeof apprenticeship. 2 i an employee performs on a contract if the', 36414:'employee directly performs the specific services called for by the contract; and ii an employee performs in connection with a', 36415:'contract if the employees work activities are necessary to the performance of a contract but are not the specific services', 36416:'called for by the contract. individual related by blood or affinity whose close association with the employee is the equivalent', 36417:'of a family relationship has the meaning given in 29 cfr 13.2. multiemployer plan means a plan to which more', 36418:'than one employer is required to contribute and which is maintained pursuant to one or morecollective bargaining agreements between one', 36419:'ormore employee organizations and more than one employer. paid sick leave means compensated absence from employment that is required by', 36420:'e.o. 13706 and 29 cfr part 13. parent, sexual assault, spouse, and stalking have the meaning given in 29 cfr', 36421:'13.2. united states means the 50 states and the district of columbia. b executive order 13706. 1 this contract is', 36422:'subject to e.o. 13706 and the regulations issued by the secretary of labor in 29 cfr part 13 pursuant to', 36423:'the e.o. 2 if this contract is not performed wholly within the united states, this clause only applies with respect', 36424:'to that part of the contract that is performed within the united states. c paid sick leave. the contractor shall', 36425:'1 permit each employee engaged in performing work on or in connection with this contract to earn not less than', 36426:'1 hour of paid sick leave for every 30 hours worked; 52.2250 subpart 52.2 text of provisions and clauses 52.22262', 36427:'2 allow accrual and use of paid sick leave as required by e.o. 13706 and 29 cfr part 13; 3', 36428:'comply with the accrual, use, and other requirements set forth in 29 cfr 13.5 and 13.6, which are incorporated by', 36429:'reference in this contract; 4 provide paid sick leave to all employees when due free and clear and without subsequent', 36430:'deduction except as otherwise provided by 29 cfr 13.24, rebate, or kickback on any account; 5 provide pay and benefits', 36431:'for paid sick leave used no later than one pay period following the end of the regular pay period in', 36432:'which the paid sick leave was taken; and 6 be responsible for the compliance by any subcontractor with the requirements', 36433:'of e.o. 13706, 29 cfr part 13, and this clause. d contractors may fulfill their obligations under e.o. 13706 and', 36434:'29 cfr part 13 jointly with other contractors through a multiemployer plan, or may fulfill their obligations through an individual', 36435:'fund, plan, or program see 29 cfr 13.8. e withholding. the contracting officer will, uponhisor her own action or upon', 36436:'written request of an authorized representative of the department of labor,withholdor cause to be withheldfrom the contractor under this oranyother', 36437:'federalcontract with the samecontractor, so muchof the accrued payments or advances as may be considered necessary to pay employees the', 36438:'full amount owed to compensate for any violation of the requirements of e.o. 13706, 29 cfr part 13, or this', 36439:'clause, including 1 any pay and/or benefits denied or lost by reason of the violation; 2 other actual monetary losses', 36440:'sustained as a direct result of the violation; and 3 liquidated damages. f payment suspension/contract termination/contractor debarment. 1 in the', 36441:'event of a failure to comply with e.o. 13706, 29 cfr part 13, orthis clause, the contracting agencymay, on its', 36442:'own action orafter authorization or by direction of the department of labor and written notification to the contractor take action', 36443:'to cause suspension of any further payment, advance, or guarantee of funds until such violations have ceased. 2 any failure', 36444:'to comply with the requirements of this clause may be grounds for termination for default or cause. 3 a breach', 36445:'of the contract clause may be grounds for debarment as a contractor and subcontractor as provided in 29 cfr 13.52.', 36446:'g the paid sick leave required by e.o. 13706, 29 cfr part 13, and this clause is in addition to', 36447:'the contractors obligations under the service contract labor standards statute and wage rate requirements construction statute, and the contractor may', 36448:'not receive credit toward its prevailing wage or fringe benefit obligations under those acts for any paid sick leave provided', 36449:'in satisfaction of the requirements of e.o. 13706 and 29 cfr part 13. h nothing in e.o. 13706 or 29', 36450:'cfr part 13 shall excuse noncompliance with or supersede any applicable federal or state law, any applicablelawor municipalordinance, or a', 36451:'collectivebargaining agreement requiringgreater paidsick leave or leave rights than those established under e.o. 13706 and 29 cfr part 13. i', 36452:'recordkeeping. 1 the contractor shall make and maintain, for no less than three 3 years from the completion of the', 36453:'work on the contract, records containing the following information for each employee, which the contractor shall make available upon request', 36454:'for inspection, copying, and transcription by authorized representatives of the administrator of the wage and hourdivision of the department of', 36455:'labor: i name, address, and social security number of each employee. ii the employees occupations or classifications. iii the rate', 36456:'or rates of wages paid including all pay and benefits provided. iv the number of daily and weekly hours worked.', 36457:'v any deductions made. vi the total wages paid including all pay and benefits provided each pay period. vii a', 36458:'copy of notifications to employees of the amount of paid sick leave the employee has accrued, as required under 29', 36459:'cfr 13.5a2. viii a copy of employees requests to use paid sick leave,if in writing, or, if notin writing, any', 36460:'other records reflecting such employee requests. ix datesandamountsof paid sick leave taken byemployees unless thecontractors paid time off policy satisfies', 36461:'the requirements of e.o. 13706 and 29 cfr part 13 as described in 29 cfr 13.5f5, leave shall be designated', 36462:'in records as paid sick leave pursuant to e.o. 13706. x a copy of any written responses to employees requests', 36463:'to use paid sick leave, including explanations for any denials of such requests, as required under 29 cfr 13.5d3. 52.2251', 36464:'52.22262 federal acquisition regulation xi any records reflecting the certification and documentation the contractor may require an employee to provide', 36465:'under 29 cfr 13.5e, including copies of any certification or documentation provided by an employee. xii any other records showing', 36466:'any tracking of or calculations related to an employees accrual or use of paid sick leave. xiii the relevant contract.', 36467:'xiv the regular pay and benefits provided to an employee for each use of paid sick leave. xv any financial', 36468:'payment made for unused paid sick leave upon a separation from employment intended, pursuant to 29 cfr 13.5b5, to relieve', 36469:'the contractor from the obligation to reinstate such paid sick leave as otherwise required by 29 cfr 13.5b4. 2 iifthecontractorwishestodistinguishbetweenanemployee’scoveredandnoncoveredwork,thecontractor', 36470:'shall keep records or other proof reflecting such distinctions. only if the contractor adequately segregates the employees time will time', 36471:'spent on noncovered work be excluded from hours worked counted toward the accrual of paid sick leave. similarly, only if', 36472:'the contractor adequately segregates the employees time may thecontractor properly refuse an employees request to use paid sick leave on', 36473:'the ground that the employee was scheduled to perform noncovered work during the time he or she asked to use', 36474:'paid sick leave. ii if the contractor estimates covered hours worked by an employee who performs work in connection with', 36475:'contracts covered by the e.o. pursuant to 29 cfr 13.5ai or iii, the contractor shall keep records or other proof', 36476:'of the verifiable information on which such estimates are reasonably based. only if the contractor relies on an estimate that', 36477:'is reasonable and based on verifiable information will an employees time spent in connection with noncovered work be excluded from', 36478:'hours worked counted toward the accrual of paid sick leave. if the contractor estimates the amount of time an employee', 36479:'spends performing in connection with contracts covered by the e.o., the contractor shall permit the employee to use his or', 36480:'her paidsick leave during any work time for the contractor. 3 in the event the contractor isnot obligated bythe servicecontract', 36481:'laborstandards statute, the wage rate requirements construction statute, or the fair labor standards act to keep records of an employees', 36482:'hours worked, such as because the employee is exempt from the fair labor standards acts minimum wage and overtime requirements,', 36483:'and the contractor chooses to use the assumption permitted by 29 cfr 13.5a1iii, the contractor is excused from the requirement', 36484:'in paragraph i1iv of this clause and 29 cfr 13.25a4 to keep records of the employees number of daily and', 36485:'weekly hours worked. 4 i records relating to medical histories or domestic violence, sexual assault, or stalking, created for purposes', 36486:'of e.o. 13706,whetherof an employee or an employees child, parent, spouse, domestic partner, or other individual relatedby blood or affinity', 36487:'whose close association with the employee isthe equivalentof afamilyrelationship, shall be maintained as confidential records in separate files/records from the', 36488:'usual personnel files. ii if the confidentiality requirements of the genetic information nondiscrimination act of 2008 gina, section 503 of', 36489:'the rehabilitation act of 1973, and/or the americans with disabilities act ada apply to records or documents created to comply', 36490:'with the recordkeeping requirements in this contract clause, the records and documents shall also be maintained in compliance with the', 36491:'confidentiality requirements of the gina, section 503 of the rehabilitation act of 1973, and/or ada as described in 29 cfr', 36492:'1635.9, 41 cfr 60741.23d, and 29 cfr 1630.14c1, respectively. iii the contractor shall not disclose any documentation used to verify', 36493:'the need to use 3 or more consecutive days of paid sick leave for the purposes listed in 29 cfr', 36494:'13.5c1iv as described in 29 cfr 13.5e1ii and shall maintain confidentiality about any domestic abuse, sexual assault, or stalking, unless', 36495:'the employee consents or when disclosure is required bylaw. 5 the contractor shall permit authorized representatives of the wage andhourdivision', 36496:'to conduct interviews with employees at the worksite during normal working hours. 6 nothing inthiscontract clause limitsor otherwise modifies the', 36497:'contractors recordkeeping obligations, ifany, under theservice contract labor standards statute, the wage rate requirements construction statute, the fair labor standards', 36498:'act, the family and medical leave act,e.o. 14026, their respectiveimplementing regulations, orany otherapplicable law. j interference/discrimination. 1 the contractor shall', 36499:'not in any manner interfere with an employees accrual or use of paid sick leave as required by e.o. 13706', 36500:'or 29 cfr part 13. interference includes, but is not limited to i miscalculating the amount of paid sick leave', 36501:'an employee has accrued; ii denying or unreasonably delaying a response to a proper request to use paid sick leave;', 36502:'iii discouraging an employee from using paid sick leave; iv reducing an employees accrued paid sick leave by more than', 36503:'the amount of such leave used; 52.2252 subpart 52.2 text of provisions and clauses 52.22262 v transferring anemployee towork on', 36504:'contracts not covered by the e.o. to prevent the accrual or useof paid sick leave; vi disclosing confidential information contained', 36505:'in certification or other documentation provided to verify the need to use paid sick leave; or vii making the use', 36506:'of paid sick leave contingent on the employees finding a replacement worker or the fulfillment of the contractors operational needs.', 36507:'2 the contractor shall not discharge or inany othermanner discriminate against any employee for– i using, or attempting to use,', 36508:'paid sick leave as provided for under e.o. 13706 and 29 cfr part 13; ii filing any complaint, initiating any', 36509:'proceeding, or otherwise asserting any right or claim under e.o. 13706 and 29 cfr part 13; iii cooperating in any', 36510:'investigation or testifying in any proceeding under e.o. 13706 and 29 cfr part 13; or iv informing any other person', 36511:'about his or her rights under e.o. 13706 and 29 cfr part 13. k notice. the contractor shall notify all', 36512:'employees performing work on or in connection with a contract covered by the e.o. of the paid sick leave requirements', 36513:'of e.o. 13706, 29 cfr part 13, and this clause by posting a notice provided by the department of labor', 36514:'in a prominent and accessible place at the worksite so it may be readily seen by employees. contractors that customarilypost', 36515:'notices to employees electronically may postthe notice electronically, provided such electronicposting is displayed prominently on any websitethat is maintained by', 36516:'the contractor, whether external or internal, and customarily used for notices to employees about terms and conditions of employment. l', 36517:'disputes concerning labor standards. disputes related to the application of e.o. 13706 to this contract shall not be subject to', 36518:'the general disputes clause of the contract. such disputes shall be resolved in accordance with the procedures of the department', 36519:'of labor set forth in 29 cfr part 13. disputes within the meaning of this contract clause include disputes between', 36520:'the contractororany of its subcontractorsandthe contracting agency, the department of labor, or the employees or their representatives. m subcontracts. the', 36521:'contractor shall insert the substance of this clause, including this paragraph m, in all subcontracts, regardless of dollar value,that aresubject', 36522:'to the service contract labor standards statute or the wage rate requirements construction statute, and are to be performed in', 36523:'whole or in part in the united states. end of clause 52.2253 this page intentionally left blank. 52.2254 subpart 52.2', 36524:'text of provisions and clauses 52.2233 52.223[reserved] 52.2231biobased product certification. as prescribed in 23.109c1, insert the following provision: biobased product', 36525:'certification may 2024 as required by the farm security and rural investment act of 2002 7 u.s.c. 81014and the energy', 36526:'policyact of 2005 7 u.s.c. 8102a2f, the offeror certifies,by signing this offer,that biobased products within categories of products listed by', 36527:'the united states department of agriculture in 7 cfr part 3201, subpart b to be used or delivered in theperformance', 36528:'of the contract,other thanbiobased products that are not purchased by the offeror as a direct result of this contract, will', 36529:'comply with the applicable specifications or other contractual requirements. end of provision 52.2232reporting of biobased products under service and construction', 36530:'contracts. as prescribed in 23.109c2, insert the following clause: reporting of biobased products under service and construction contracts may 2024', 36531:'a definitions. as used in this clause— biobased product means a product determined by the u.s. department of agriculture usda', 36532:'to be a commercial product or industrial product other than food or feed that is composed, in whole or in', 36533:'significant part, of biological products, including renewable domestic agricultural materials and forestry materials, or that is an intermediate ingredient or', 36534:'feedstock. the term includes, with respect to forestry materials, forest products that meet biobased content requirements, notwithstanding the market share', 36535:'the product holds, the age of the product, or whether the market for the product is new or emerging. 7', 36536:'u.s.c. 8101 7 cfr 3201.2. usdadesignated product category means a generic grouping of products that are or can be made', 36537:'with biobased materials — 1 that are listed by usda in a procurement guideline 7 cfr part 3201, subpart b;', 36538:'and 2 for which usda has provided purchasing recommendations available at https://www.biopreferred.gov . b the contractor shall report to https://www.sam.gov,', 36539:'with a copyto the contractingofficer, on the producttypes and dollar value of any biobased products in usdadesignated product categories purchased', 36540:'by the contractor during the previous government fiscal year, betweenoctober1 and september 30; and c submit this report no later', 36541:'than— 1 october 31 of each year during contract performance; and 2 at the end of contract performance. end of', 36542:'clause 52.2233 hazardous material identification and material safety data. as prescribed in 23.304a1, insert the following clause: hazardous material identification', 36543:'and material safety data feb 2021 a hazardous material, as used in this clause, includes any material defined as hazardous', 36544:'under the latest version of federal standard no.313 including revisions adopted during the term of the contract. b the offeror', 36545:'must list any hazardous material, as definedin paragraph a of this clause, tobe deliveredunder this contract. the hazardous material shall', 36546:'be properly identified and include any applicable identification number, such as nationalstock number or special item number. this information shall', 36547:'also be included on the material safetydata sheet submitted under this contract. material if none, insert none identification no. 52.2255', 36548:'52.2234 federal acquisition regulation c this list must be updated during performance of the contract whenever the contractor determines that', 36549:'any other material to be delivered under this contract is hazardous. d the apparentlysuccessfulofferor agreesto submit, for each item asrequired', 36550:'priorto award, a materialsafety data sheet, meeting the requirements of 29 cfr 1910.1200g and the latest version of federal standard', 36551:'no.313, for all hazardous material identified in paragraph b of this clause. data shall be submitted in accordance with federal', 36552:'standard no.313, whether or notthe apparently successful offeror is the actual manufacturer of these items. failure to submit the material', 36553:'safetydatasheet prior toaward may result in the apparently successful offerorbeing considered nonresponsible and ineligible for award. e if, after award,', 36554:'there is a change in the composition of the items or a revision to federal standard no.313, which renders incomplete', 36555:'or inaccurate the data submitted under paragraph d of this clause, the contractor shall promptly notify thecontracting officer and resubmit', 36556:'the data. f neither the requirements of this clause nor any act or failure to act by the government shall', 36557:'relieve the contractor of any responsibility orliability for thesafety of government, contractor, or subcontractor personnelor property. g nothing contained in', 36558:'this clause shall relieve the contractor from complying with applicable federal, state, and local laws, codes, ordinances, and regulations including', 36559:'the obtaining of licenses and permits in connection with hazardous material. h the government’s rightsin datafurnished under thiscontract with respect', 36560:'to hazardous material are asfollows: 1 to use, duplicate and disclose any data to which this clauseis applicable. the purposes', 36561:'of this right areto i apprise personnel of the hazards to which they may be exposed in using, handling, packaging,', 36562:'transporting, or disposing of hazardous materials; iiobtain medical treatment for those affected by the material; and iii have others use,', 36563:'duplicate, and disclose the data for the government for these purposes. 2 to use, duplicate, and disclose datafurnished under thisclause,', 36564:'in accordance withparagraph h1of this clause, in precedence over any other clause of this contract providing for rights in data.', 36565:'3 the government is not precluded from using similar or identical data acquired from other sources. end of clause alternate', 36566:'i july 1995. as prescribed in 23.304a2, add the following paragraph i to the basic clause: iexcept asprovidedin paragraph i2,', 36567:'the contractorshallprepare and submita sufficient number ofmaterial safety data sheets msdss, meeting the requirements of 29 cfr 1910.1200g and the', 36568:'latest version of federal standard no.313, for all hazardous materials identified in paragraph b of this clause. 1 for items', 36569:'shipped to consignees, the contractor shall include a copy of the msdss with the packing list or other suitable shippingdocument', 36570:'which accompanies each shipment. alternatively, the contractoris permitted to transmit msdss to consignees in advance of receipt ofshipments by consignees,', 36571:'if authorized in writing by the contractingofficer. 2 for items shipped to consignees identified by mailing address as agency depots,', 36572:'distribution centers or customer supply centers, the contractor shall provide one copy of themsdss in oron each shipping container. if', 36573:'affixed tothe outside of eachcontainer,the msdss must be placed in a weather resistant envelope. 52.2234recovered material certification. as prescribed in', 36574:'23.109b1, insert the following provision: recovered material certification may 2008 as required by the resource conservation and recovery act of', 36575:'1976 42 u.s.c. 6962c3ai, the offeror certifies, by signing this offer, thatthe percentage ofrecoveredmaterials content for epadesignated itemsto bedelivered or', 36576:'used in the 52.2256 subpart 52.2 text of provisions and clauses 52.2237 performance of the contract will be at least', 36577:'the amount required by the applicable contract specifications or other contractual requirements. end of provision 52.2235pollution prevention and righttoknow information.', 36578:'as prescribed in 23.406a, insert the following clause: pollution prevention and righttoknow information may 2024 a definitions. as used in', 36579:'this clause toxic chemical means a chemical or chemical category listed in 40 cfr 372.65. b federalfacilities are required to', 36580:'complywith the provisions of theemergency planning and communityrightto know act of 1986 epcra 42 u.s.c. 1100111050, andthe pollution prevention act', 36581:'of 1990ppa 42 u.s.c. 1310113109. c the contractor shall provide all information needed by the federal facility to comply with', 36582:'the following: 1 the emergency planning reporting requirementsof section 302 of epcra. 2 the emergency notice requirements of section 304', 36583:'of epcra. 3 the list of material safety data sheets, required bysection 311 of epcra. 4 the emergency and hazardous', 36584:'chemical inventory formsof section 312 of epcra. 5 the toxic chemical release inventory of section 313 of epcra, which includes', 36585:'the reduction and recycling information required by section 6607 of ppa. end of clause 52.2236 [reserved] 52.2237 notice of radioactive', 36586:'materials. as prescribed in 23.304b, insert the following clause: notice of radioactive materials jan 1997 a thecontractor shall notify the', 36587:'contractingofficer or designee, in writing, days prior to the delivery of, or prior to completion of any servicing required by', 36588:'this contract of, items containing either 1 radioactive material requiring specific licensing underthe regulations issued pursuantto theatomic energy act of1954,', 36589:'as amended, as set forth in title 10of the code of federal regulations, in effect onthe dateof this contract,or 2', 36590:'other radioactive material not requiring specific licensing in which the specific activity is greater than 0.002 microcuries per gram or', 36591:'the activity per item equals or exceeds 0.01 microcuries. such notice shall specify the part or parts of the items', 36592:'which contain radioactive materials, a description of the materials, the name and activity of the isotope, the manufacturer of the', 36593:'materials, and any other information known to the contractor which will put users of the items on notice as to', 36594:'the hazards involved omb no.90000107. the contracting officer shall insert thenumber of daysrequired in advance of delivery of theitem or', 36595:'completion of the servicing to assure that required licenses are obtained and appropriate personnel are notified to institute any necessary', 36596:'safety and health precautions. b if therehas been nochange affecting the quantity of activity,or the characteristics and compositionof the radioactive', 36597:'material from deliveriesunder this contract or prior contracts, thecontractor mayrequest that the contracting officer or designee waive the notice requirement', 36598:'in paragraph a of this clause. any such request shall 1 be submitted in writing; 2 state that the quantity', 36599:'of activity, characteristics,and composition of the radioactive material have not changed; and 3 citethe contract number on whichthe prior notification', 36600:'was submitted and the contracting office to which it was submitted. c all items, parts, or subassemblies which contain radioactive', 36601:'materials in which the specific activity is greater than 0.002 microcuries per gram or activity per item equals or exceeds', 36602:'0.01 microcuries, and all containers in which such items, 52.2257 52.2238 federal acquisition regulation parts or subassemblies are delivered to', 36603:'the government shall be clearly marked and labeled as required by the latest revision of milstd 129 in effect on', 36604:'the date of the contract. d this clause, including this paragraph d, shall be inserted in all subcontracts for radioactive', 36605:'materials meeting the criteria in paragraph a of this clause. end of clause 52.2238 [reserved] 52.2239estimate of percentage ofrecovered material', 36606:'contentfor epadesignated items. as prescribed in 23.109b2, insert the following clause: estimate of percentage of recovered material content for epadesignated', 36607:'items may 2008 a definitions. as used in this clause postconsumer materialmeans a material or finished product that has served', 36608:'its intended use and has been discarded for disposal or recovery, having completed its life as a consumer item. postconsumer', 36609:'material isa partof the broader category of recovered material. recovered material means waste materials and byproducts recovered or diverted from', 36610:'solid waste, but the term does not include those materials and byproducts generated from, and commonly reused within, an original', 36611:'manufacturing process. b the contractor, on completion of thiscontract, shall 1 estimate thepercentage of thetotal recovered materialcontent for epadesignated items', 36612:'delivered and/or used in contract performance, including, if applicable, the percentage of postconsumer material content; and 2 submit this estimate', 36613:'to [contracting officer complete in accordance with agency procedures]. end of clause alternate i may 2008. as prescribed in 23.109b2,', 36614:'redesignate paragraph b of the basic clause as paragraph c and add the following paragraph b to the basic clause:', 36615:'b the contractor shall execute the following certification required by the resource conservation and recovery act of 1976 42 u.s.c.', 36616:'6962i2c: certification i, name of certifier, am an officer oremployee responsible for theperformance of this contract and herebycertifythat thepercentage of', 36617:'recovered material content for epadesignateditems met the applicablecontract specifications or other contractual requirements. [signature of the officer or employee] [typed', 36618:'name of the officer or employee] [title] [name of company, firm, or organization] [date] end of certification 52.22310 wastereduction program.', 36619:'as prescribed in 23.406c, insert the following clause: waste reduction program may 2024 52.2258 subpart 52.2 text of provisions and', 36620:'clauses 52.22312 a definitions. as used in this clause recycling means the series of activities, including collection, separation, and processing,', 36621:'by which products or other materials are recovered from the solid waste stream for use in the form of raw', 36622:'materials in the manufacture of products other than fuel for producing heat or power by combustion. waste prevention means any', 36623:'change in the design, manufacturing, purchase, or use of materials or products including packaging to reduce their amount or toxicity', 36624:'before they are discarded. waste prevention also refers to the reuse of products or materials. waste reduction means preventing or', 36625:'decreasing the amount of waste being generated through waste prevention, recycling, or purchasing recycled and environmentally preferable products. b consistent', 36626:'with the requirements of section 207 of executive order 14057, the contractor shall establish a program to promote costeffective wastereduction', 36627:'in all operations and facilities coveredby this contract. the contractor’s programs shall comply with applicable federal, state, and local requirements,', 36628:'specifically including section 6002 of the resource conservation and recovery act 42 u.s.c.6962, etseq. and implementing regulations 40 cfr part', 36629:'247. end of clause 52.22311ozonedepleting substances and high globalwarming potential hydrofluorocarbons. as prescribed in 23.109d1, insert the following clause: ozonedepleting', 36630:'substances and high global warming potential hydrofluorocarbons may 2024 a definitions. as used in this clause– global warming potential means', 36631:'how much a given mass of a chemical contributes to global warming over a given time period compared to the', 36632:'same mass of carbon dioxide. carbon dioxide’s global warming potential is defined as 1.0. high global warming potential hydrofluorocarbons means', 36633:'any hydrofluorocarbons in a particular end use for which epa’s significant new alternatives policy snap program hasidentified other acceptable alternatives', 36634:'that have lower global warming potential. the snap list of alternatives is found at 40 cfr part 82, subpart g,', 36635:'with supplemental tables of alternatives available at https://www.epa.gov/snap/. hydrofluorocarbons means compounds that only contain hydrogen, fluorine, and carbon. ozonedepleting substance,', 36636:'means any substance the environmental protection agency designates in 40 cfr part 82 as– 1 class i, including, but not', 36637:'limited to, chlorofluorocarbons, halons, carbon tetrachloride, and methyl chloroform; or 2 class ii, including, but not limited to, hydrochlorofluorocarbons. b', 36638:'the contractor shall label products that contain or are manufactured with ozonedepleting substances in the manner and to the extent', 36639:'required by 42 u.s.c. 7671j b, c, d, and e and 40 cfr part 82, subpart e, as follows: warning:', 36640:'containsormanufactured with, if applicable , a substances which harms public health and environment by destroying ozone in the upper atmosphere.', 36641:'the contractor shall insert the name of the substances. c thecontractor shall refer to epas snap program to identify alternatives.', 36642:'thesnap list of alternatives is found at 40 cfr part 82, subpart g, with supplemental tables available at https://www.epa.gov/snap/. end', 36643:'of clause 52.22312 maintenance, service, repair, or disposal of refrigeration equipment and air conditioners. as prescribed in 23.109d2, insert the', 36644:'following clause: maintenance, service, repair, or disposal of refrigeration equipment and air conditioners may 2024 a definitions. as used in', 36645:'this clause– global warming potential means how much a given mass of a chemical contributes to global warming over a', 36646:'given time period compared to the same mass of carbon dioxide. carbon dioxide’s global warming potential is defined as 1.0.', 36647:'high global warming potential hydrofluorocarbons means any hydrofluorocarbons in a particular end use for which epa’s significant new alternatives policy', 36648:'snap program hasidentified other acceptable alternatives that have lower 52.2259 52.22313 federal acquisition regulation global warming potential. the snap list', 36649:'of alternatives is found at 40 cfr part 82 subpart g with supplemental tables of alternatives available at https://www.epa.gov/snap/. hydrofluorocarbons', 36650:'means compounds that only contain hydrogen, fluorine, and carbon. b the contractor shall comply with the applicable requirements of sections608', 36651:'and 609 of the clean air act 42 u.s.c. 7671g and 7671h as each or both apply to this contract.', 36652:'c unless otherwise specified in the contract, the contractor shall reduce the use, release, or emissions of high global warming', 36653:'potential hydrofluorocarbons under this contract by– 1 transitioningover time to the use of another acceptablealternativein lieu of high global warmingpotential', 36654:'hydrofluorocarbons ina particular end use for which epa’s snap program has identifiedotheracceptable alternatives that have lower global warming potential; 2', 36655:'preventing and repairing refrigerant leaks through service and maintenance during contract performance; 3 implementing recovery,recycling, and responsible disposal programs that', 36656:'avoidrelease oremissions during equipment service and as the equipment reaches the end of its useful life; and 4 using reclaimed', 36657:'hydrofluorocarbons to service and repair refrigeration and air conditioning equipment, where feasible. d the contractor shall refer to epa’s snapprogramto', 36658:'identify alternatives. the snap listof alternatives isfound at40 cfr part 82 subpart g with supplemental tables available at https://www.epa.gov/snap/. end', 36659:'of clause 52.22313 [reserved] 52.22314 [reserved] 52.22315 [reserved] 52.22316 [reserved] 52.22317 [reserved] 52.22318 [reserved] 52.22319 compliancewith environmental management systems. as', 36660:'prescribed in 23.406b, insert the following clause: compliance with environmental management systems may 2011 the contractor’s work under thiscontract shall', 36661:'conform with all operational controls identified in the applicable agency or facility environmental management systems and provide monitoring and measurement', 36662:'information necessary for the government to address environmental performance relative to the goals of the environmental management systems. end of', 36663:'clause 52.22320 aerosols. as prescribed in 23.109d3, insert the following clause: aerosols may 2024 a definitions. as used in this', 36664:'clause– global warming potential means how much a given mass of a chemical contributes to global warming over a given', 36665:'time period compared to the same mass of carbon dioxide. carbon dioxide’s global warming potential is defined as 1.0. high', 36666:'global warming potential hydrofluorocarbons means any hydrofluorocarbons in a particular end use for which epa’s significant new alternatives policy snap', 36667:'program hasidentified other acceptable alternatives that have lower 52.2260 subpart 52.2 text of provisions and clauses 52.22322 global warming potential.', 36668:'the snap list of alternatives is found at 40 cfr part 82 subpart g with supplemental tables of alternatives available', 36669:'at https://www.epa.gov/snap/. hydrofluorocarbons means compounds that only contain hydrogen, fluorine, and carbon. b unless otherwise specified in the contract, the', 36670:'contractor shall reduce its use, release, or emissions of high global warming potential hydrofluorocarbons, when feasible, from aerosol propellants or', 36671:'solvents under this contract. when determining feasibility of using a particular alternative, the contractor shall consider environmental, technical, and economic', 36672:'factors such as– 1 inuse emission rates, energyefficiency; 2 safety, suchas flammability or toxicity; 3 ability to meet technical performance', 36673:'requirements; and 4 commercial availability at a reasonable cost. c thecontractor shall refer to epas snap program to identify alternatives.', 36674:'thesnap list of alternatives is found at 40 cfr part 82 subpart g with supplemental tables available at https://www.epa.gov/snap/. end', 36675:'of clause 52.22321 foams. as prescribed in 23.109d4, insert the following clause: foams may 2024 a definitions. as used in', 36676:'this clause– global warming potential means how much a given mass of a chemical contributes to global warming over a', 36677:'given time period compared to the same mass of carbon dioxide. carbon dioxide’s global warming potential is defined as 1.0.', 36678:'high global warming potential hydrofluorocarbons means any hydrofluorocarbons in a particular end use for which epa’s significant new alternatives policy', 36679:'snap program hasidentified other acceptable alternatives that have lower global warming potential. the snap list of alternatives is found at', 36680:'40 cfr part 82 subpart g with supplemental tables of alternatives available at https://www.epa.gov/snap/. hydrofluorocarbons means compounds that only contain', 36681:'hydrogen, fluorine, and carbon. b unless otherwise specified in the contract, the contractor shall reduce its use, release, and emissions', 36682:'of high global warming potential hydrofluorocarbons and refrigerant blends containing hydrofluorocarbons, when feasible, from foam blowing agents, under this contract.', 36683:'when determining feasibility of using a particular alternative, the contractor shall consider environmental, technical, and economic factors such as– 1', 36684:'inuse emission rates, energyefficiency, and safety; 2 ability to meet performance requirements; and 3 commercial availability at a reasonable cost.', 36685:'c thecontractor shall refer to epa’s snap program to identify alternatives. thesnap list of alternatives is found at 40 cfr', 36686:'part 82 subpart g with supplemental tables available at https://www.epa.gov/snap/. end of clause 52.22322 publicdisclosure of greenhouse gasemissions and reduction', 36687:'goalsrepresentation. as prescribed in 23.502, insert the following provision: public disclosure of greenhouse gas emissions and reduction goalsrepresentation dec 2016', 36688:'a this representationshallbe completed if theofferor received $7.5 million ormore in federal contract awards inthe prior federal fiscal year. the', 36689:'representation isoptional if the offeror received less than $7.5million in federal contract awards in the priorfederal fiscal year. b representation.', 36690:'[offeror is to check applicable blocks in paragraphs 1 and 2.] 1 the offeror itself orthroughits immediate owner or highestlevel', 36691:'owner □ does, □ does not publicly disclose greenhouse gas emissions, i.e., makeavailableon apublicly accessible website the results of a', 36692:'greenhouse gas inventory, 52.2261 52.22323 federal acquisition regulation performed in accordance with an accounting standard with publicly available and consistently', 36693:'applied criteria, such as the greenhouse gas protocol corporate standard. 2 the offeror itself orthroughits immediate owner or highestlevel owner', 36694:'□ does, □ does not publicly disclose a quantitative greenhouse gas emissions reduction goal, i.e.,makeavailable on apublicly available website a', 36695:'target toreduce absolute emissions or emissions intensity by a specific quantity or percentage. 3 a publicly accessible website includes the', 36696:'offeror’s own website or a recognized, thirdpartygreenhouse gas emissions reporting program. c if the offeror checked does in paragraphs b1', 36697:'or b2of this provision, respectively, the offeror shall providethe publicly accessible websites where greenhouse gas emissions and/or reduction goals are', 36698:'reported:. end of provision 52.22323 sustainable products andservices. as prescribed in 23.109a, insert the following clause: sustainable products and services', 36699:'may 2024 a definitions. as used in this clause— biobased product means a product determined by the u.s. department of', 36700:'agriculture usda to be a commercial product or industrial product other than food or feed that is composed, in whole', 36701:'or in significant part, of biological products, including renewable domestic agricultural materials and forestry materials, or that is an intermediate', 36702:'ingredient or feedstock. the term includes, with respect to forestry materials, forest products that meet biobased content requirements, notwithstanding the', 36703:'market share the product holds, the age of the product, or whether the market for the product is new or', 36704:'emerging. 7 u.s.c. 8101 7 cfr 3201.2. recovered material means waste materials and byproducts recovered or diverted from solid waste,', 36705:'but the term does not include those materials and byproducts generated from, and commonly reused within, an original manufacturing process.', 36706:'42 u.s.c. 6903. sustainable products and services means products and services that are subject to and meet the following applicable', 36707:'statutory mandates and directives for purchasing: 1 statutory purchasing programs. iproducts containing recovered material designated by the u.s. environmentalprotectionagency epa', 36708:'under the comprehensive procurement guidelines 42 u.s.c. 6962 40 cfr part 247 https://www.epa.gov/smm/comprehensiveprocurement guidelinecpgprogramproducts. iienergyand waterefficient products thatare energystar® certified', 36709:'or federal energy management program fempdesignated products 42 u.s.c. 8259b 10 cfr part 436, subpart c https://www.energy.gov/eere/femp/ searchenergyefficientproducts and https://www.energystar.gov/products?s=mega.', 36710:'iii biobased products meeting the content requirement of the usda under the biopreferred® program 7 u.s.c. 8102 7 cfr part', 36711:'3201 https://www.biopreferred.gov. iv acceptable chemicals,products, and manufacturingprocesses listedunder epas significant new alternatives policy snap program, which ensures a safe and', 36712:'smooth transition away from substances that contribute to the depletion of stratospheric ozone 42 u.s.c. 7671l 40 cfr part 82,', 36713:'subpart g https://www.epa.gov/snap. 2 required epa purchasing programs. iwatersense® labeledwater efficient products and services https://www.epa.gov/watersense/watersenseproducts. ii safer choicecertified products products', 36714:'that contain safer chemical ingredients https://www.epa.gov/ saferchoice/products. iii productand servicesthat meet epa recommendations of specifications, standards, and ecolabelsin effect as', 36715:'of october 2023 https://www.epa.gov/greenerproducts/recommendationsspecificationsstandardsandecolabelsfederalpurchasing. b requirements. 1 the sustainable products and services, including the purchasing program and type of product', 36716:'or service, that are applicable to this contract, and any products or services that are not subject to this clause,', 36717:'will be set forth in the statement of work or elsewhere in the contract. 52.2262 subpart 52.2 text of provisions', 36718:'and clauses 52.22323 2 the contractor shall ensure that the sustainable products and services required by this contract are— i', 36719:'delivered to the government; ii furnished for use by the government; iii incorporated into the construction of a public building', 36720:'or public work; and iv furnished for use in performing services under this contract, where the cost of the products', 36721:'is a direct cost to this contract versus costs which are normally applied to the contractors general and administrative expenses', 36722:'or indirect costs. this includes services performed by contractors performing management and operation of governmentowned facilities to the same extent', 36723:'that, at the time of award, an agency would be required to comply if an agency operated or supported the', 36724:'facility. 3 i except as provided in paragraph b3ii of this clause, sustainable products and services must meet the applicable', 36725:'standards, specifications, orother program requirements at time ofquote or offer submission;and iisustainable products and services mustmeet theepa recommendationsof specifications, standards,', 36726:'and ecolabels in effect as of october 2023. c resource. the green procurement compilation gpc available at https://sftool.gov/greenprocurement provides a', 36727:'comprehensive list of sustainable products and services and sustainable acquisition guidance. the contractor should review the gpc when determining which', 36728:'purchasing programs apply to a specific product or service. end of clause 52.2263 this page intentionally left blank. 52.2264 subpart', 36729:'52.2 text of provisions and clauses 52.2243 52.224[reserved] 52.2241 privacy act notification. as prescribed in 24.104, insert the following clause', 36730:'in solicitations and contracts, when the design, development, or operation of a system of records on individuals is required to', 36731:'accomplish an agency function: privacy act notification apr 1984 the contractor will be required to design, develop, or operate a', 36732:'system of records on individuals, to accomplish an agency function subject to the privacy act of1974, public law93579, december 31,1974', 36733:'5 u.s.c. 552a and applicable agency regulations. violation of the act may involve the imposition of criminal penalties. end of', 36734:'clause 52.2242 privacy act. as prescribed in 24.104, insert the following clause in solicitations and contracts, when the design, development,', 36735:'or operation of a system of records on individuals is required to accomplish an agency function: privacy act apr 1984', 36736:'a the contractor agrees to 1 comply with the privacy act of1974 the act and the agency rules and regulations', 36737:'issued under the act in the design, development, or operation of any system of records on individuals to accomplish an', 36738:'agency function when the contract specifically identifies i the systems of records; and ii the design, development, or operation work', 36739:'that the contractor is to perform; 2 include the privacy act notification contained in this contract in every solicitation and', 36740:'resulting subcontract and in every subcontract awarded without a solicitation, when the work statement in the proposed subcontract requires the', 36741:'redesign, development, or operation of a system of records on individuals that is subject to the act; and 3 include', 36742:'this clause, including this paragraph 3, in all subcontracts awarded under this contract which requires the design, development, or operation', 36743:'of such a system of records. b in the event of violations of the act, a civil action may be', 36744:'brought against the agency involved when the violation concerns the design, development, or operation of a system of records on', 36745:'individuals to accomplish an agency function, and criminal penalties may be imposed upon the officers or employees of the agency', 36746:'whenthe violation concernsthe operation of a system of records on individuals to accomplish an agency function. for purposes of the', 36747:'act, when the contract is for the operation of a system of records on individuals to accomplish an agency function,', 36748:'the contractor is considered to be an employeeof the agency. c 1 operation of a system of records, as used', 36749:'in this clause, means performance of any of the activities associated with maintaining the system of records, including the collection,', 36750:'use, and dissemination of records. 2 record, as used in this clause, means any item, collection, or grouping of information', 36751:'about an individual that is maintained by anagency, including, but not limited to, education,financial transactions, medical history,andcriminal or employment history', 36752:'and that contains the person’s name, or the identifying number, symbol, or other identifying particular assigned to the individual, such', 36753:'as a fingerprint or voiceprint or a photograph. 3 system of records on individuals, as used in this clause, means', 36754:'a group of any records under the control of any agency from which information is retrievedby the name ofthe individualor', 36755:'by someidentifying number, symbol, orother identifying particular assigned to the individual. end of clause 52.2243privacy training. as prescribed in 24.302,', 36756:'insert the following clause: privacy training jan 2017 52.2265 52.2243 federal acquisition regulation a definition. as used in this clause,', 36757:'personally identifiable information means information that can be used to distinguish or trace anindividuals identity, either alone orwhen combined with', 36758:'other informationthat islinked or linkable to a specific individual. see office of managementand budget omb circulara130, managing federal information as', 36759:'a strategic resource. b the contractor shall ensure that initial privacy training, and annual privacy training thereafter, is completed by', 36760:'contractor employees who 1 have access to a system of records; 2 create, collect, use, process, store, maintain, disseminate, disclose,', 36761:'dispose, or otherwise handle personally identifiable information on behalf of an agency; or 3 design, develop, maintain, or operate asystemof', 36762:'records seealsofar subpart 24.3 and 39.105. c 1 privacy training shall address the key elements necessary for ensuring the safeguarding', 36763:'of personally identifiable information or a system of records. the training shall be rolebased, provide foundational as well as more', 36764:'advanced levels of training, and have measures in place to test the knowledge level of users. at a minimum, the', 36765:'privacy training shall cover i the provisions of the privacy act of 1974 5 u.s.c. 552a, including penalties for violations', 36766:'of the act; ii the appropriate handling and safeguarding of personally identifiable information; iii the authorized and official useof asystem', 36767:'of records or any other personally identifiableinformation; iv the restriction on the use of unauthorized equipment to create, collect, use,', 36768:'process, store, maintain, disseminate, disclose, dispose or otherwise access personally identifiable information; v the prohibition against the unauthorized use of', 36769:'a system of records or unauthorized disclosure, access, handling, or use of personally identifiable information; and vi the procedures to', 36770:'be followed in the event of a suspected or confirmed breach of a system of records or the unauthorized disclosure,', 36771:'access, handling, or use of personally identifiable information see omb guidance for preparing for and responding to a breach of', 36772:'personally identifiable information. 2 completion of an agencydeveloped or agencyconducted training course shall be deemed to satisfy these elements. d', 36773:'the contractor shall maintain and, upon request, provide documentation of completion of privacy training to the contracting officer. e the', 36774:'contractor shall not allow any employee access to a system of records, or permit any employee to create, collect, use,', 36775:'process, store, maintain, disseminate, disclose, dispose or otherwise handle personally identifiable information, or to design, develop, maintain, or operate a', 36776:'system of records unless the employee has completed privacy training, as required by this clause. f the substance of this', 36777:'clause, including this paragraph f, shall be included in all subcontracts under this contract, when subcontractor employees will 1 have', 36778:'access to a system of records; 2 create, collect, use, process, store, maintain, disseminate, disclose, dispose, or otherwise handle personally', 36779:'identifiable information; or 3 design, develop, maintain, or operate a system of records. end of clause alternate i jan 2017.', 36780:'as prescribed in 24.302b, if the agency specifies that only its agencyprovided training is acceptable, substitute the following paragraph c', 36781:'for paragraph c of the basic clause: c thecontracting agency will provide initial privacy training, and annual privacy training thereafter,', 36782:'tocontractor employees for the duration of this contract. 52.2266 subpart 52.2 text of provisions and clauses 52.2251 52.225[reserved] 52.2251 buy', 36783:'americansupplies as prescribed in 25.1101a1, insert the following clause: buy americansupplies oct 2022 a definitions. as used in this clause—', 36784:'commercially available offtheshelf cots item— 1 means any item of supply including construction material that is– i a commercial product', 36785:'as defined in paragraph 1 of the definition of “commercial product” at federal acquisition regulationfar 2.101; ii sold in substantial', 36786:'quantities in the commercial marketplace; and iii offered tothe government, under a contract or subcontract at any tier, without modification,', 36787:'in the same form in which it is sold in the commercial marketplace; and 2 does not include bulk cargo,', 36788:'as defined in 46 u.s.c. 401024, such as agricultural products and petroleum products. component means an article, material, or supply', 36789:'incorporated directly into an end product. cost of components means— 1 for components purchased bythe contractor, the acquisition cost, including', 36790:'transportation coststo the place of incorporation into the end product whether or not such costs are paid to a domestic', 36791:'firm, and any applicable duty whether or not a dutyfree entry certificate is issued; or 2 for components manufactured bythe', 36792:'contractor, all costs associatedwith the manufacture of the component, including transportation costs as described in paragraph 1 of this definition,', 36793:'plus allocable overhead costs, but excluding profit. cost of components does not include any costs associated with the manufacture of', 36794:'the end product. critical component means a component that is mined, produced, or manufactured in the united states and deemed', 36795:'critical to the u.s. supply chain. the list of critical components is at far 25.105 . domestic end product means—', 36796:'1 for an end product that does not consist wholly or predominantly of iron or steel or a combination of', 36797:'both i an unmanufactured end product mined or produced in the united states; ii an end product manufactured in the', 36798:'united states, if a the cost of its components mined, produced, or manufactured in the united states exceeds 60 percent', 36799:'of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar', 36800:'years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029. components of foreign origin of', 36801:'the same class or kind as those that the agency determines are not mined, produced, or manufactured in sufficient andreasonably', 36802:'available commercial quantities of a satisfactory quality are treated as domestic. components of unknown origin are treated as foreign. scrap', 36803:'generated, collected, and prepared for processing in the united states is considered domestic; or b the end product is a', 36804:'cots item; or 2 for an end product that consists wholly or predominantly of iron or steel or a combination', 36805:'of both, an end product manufactured in the united states, if the cost of foreign iron and steel constitutes less', 36806:'than 5 percent of the cost of all the components used in the end product. the cost of foreign iron', 36807:'and steel includes but is not limited to the cost of foreign iron or steelmill products such asbar, billet, slab,wire,', 36808:'plate, or sheet, castings, or forgings utilizedin themanufacture of the end product and a good faith estimate of the cost', 36809:'of all foreign iron or steel components excluding cots fasteners. iron or steel components of unknown origin are treated as', 36810:'foreign. if the end product contains multiple components, the cost of all the materials used in such end product is', 36811:'calculated in accordance with the definition of cost of components. end product means those articles, materials, and supplies to be', 36812:'acquired under the contract for public use. fastener means a hardware device that mechanically joins or affixestwo ormore objects together.', 36813:'examples of fasteners are nuts, bolts, pins, rivets, nails, clips, and screws. foreign end product means an end product other', 36814:'than a domestic end product. foreign iron and steel means iron or steel products not produced in the united states.', 36815:'produced in the united states means that all manufacturing processes of the iron or steel must take place in the', 36816:'united states, from the initial melting stage through theapplication of coatings,exceptmetallurgical processes involving refinement of steeladditives. the origin of the', 36817:'elements of the iron or steel is not relevant to the determination of whether it is domestic or foreign. 52.2267', 36818:'52.2252 federal acquisition regulation predominantly of iron or steel or a combination of both means that the cost of the', 36819:'iron and steel content exceeds 50 percent of the total cost of all its components. the cost of iron and', 36820:'steel is the cost of the iron or steel mill products such as bar, billet, slab, wire, plate, or sheet,', 36821:'castings,or forgings utilized in the manufacture of the product and a good faith estimate of the cost of iron or', 36822:'steel components excluding cots fasteners. steel means an alloy that includes at least 50 percent iron, between 0.02 and 2', 36823:'percent carbon, and may include other elements. united states means the 50 states, the district of columbia, and outlying areas.', 36824:'b 41 u.s.c. chapter 83, buy american, provides a preference for domestic end products for supplies acquired for use in', 36825:'the united states. in accordance with 41 u.s.c. 1907, the domestic content test of the buy american statute is waived', 36826:'for an end product that is a cots item see 12.505a1, except that for an end product that consists wholly', 36827:'or predominantly of iron or steel or a combination of both, the domestic content test is applied only to the', 36828:'iron and steel content of the end product, excluding cots fasteners. c offerors may obtain from the contracting officer a', 36829:'list of foreignarticlesthat thecontracting officer will treat as domestic for this contract. d the contractor shall deliver only domestic end', 36830:'products except to the extent that it specified delivery of foreign end products in the provision of the solicitation entitled', 36831:'buy american certificate. end of clause alternate i oct 2022. as prescribed in 25.1101 a1ii substitute the following sentence for', 36832:'the first sentence of paragraph 1iia of the definition of “domestic end product” in paragraph a: a the cost of', 36833:'its components mined, produced, or manufactured in the united states exceeds percent of the cost of all its components. [', 36834:'contracting officer to insert the percentage. ] 52.2252 buy american certificate. as prescribed in 25.1101a2, insert the following provision: buy', 36835:'american certificate oct 2022 a 1theofferorcertifiesthateachendproduct,exceptthoselistedinparagraphbofthisprovision,isadomesticend product and that each domestic end product listed in paragraph c of this provision', 36836:'contains a critical component. 2 the offeror shall list as foreign endproducts those end productsmanufactured inthe unitedstates that do not', 36837:'qualify as domestic end products. for those foreign end products that do not consist wholly or predominantly of iron or', 36838:'steel or a combination of both, theofferor shall alsoindicate whether theseforeign end products exceed55 percent domestic content, except for those', 36839:'that are cots items. if the percentage of the domestic content is unknown, select “no”. 3 the offeror shall separatelylist', 36840:'theline item numbersof domestic end products that contain a critical component see far 25.105. 4 the terms “commercially available offtheshelf', 36841:'cots item,” “critical component,” domestic end product, end product, and foreign end product are defined in the clause of this', 36842:'solicitation entitled buy americansupplies. b foreign end products: line item no. country of origin exceeds 55% domestic content yes/no b', 36843:'[list as necessary] c domestic end products containing a critical component: line item no. [list as necessary] 52.2268 subpart 52.2', 36844:'text of provisions and clauses 52.2253 d the government will evaluate offers in accordance with the policies and procedures of', 36845:'part 25 of the federal acquisition regulation. end of provision 52.2253buy americanfree trade agreementsisraeli trade act. as prescribed in 25.1101', 36846:'b1i, insert the following clause: buy americanfree trade agreementsisraeli trade act nov 2023 a definitions. as used in this clause—', 36847:'bahraini, moroccan, omani, panamanian, or peruvian end product means an article that— 1 is wholly the growth, product, or manufacture', 36848:'of bahrain, morocco, oman, panama, or peru; or 2 in the case of anarticle that consists in whole or in', 36849:'part of materials from another country, has been substantially transformed in bahrain, morocco, oman,panama, or peru into anew and different', 36850:'article of commerce with a name, character, oruse distinct from thatof the article or articles from which it wastransformed. the', 36851:'term refers to a product offered for purchaseunder a supply contract,but for purposes of calculating the value of the end', 36852:'productincludes services except transportation services incidental to the article, provided that the value of those incidental services does not exceed', 36853:'that of the article itself. commercially available offtheshelf cots item— 1 means any item of supply including construction material that', 36854:'is i a commercial product as defined in paragraph 1 of the definition of “commercial product” at federal acquisition regulationfar', 36855:'2.101; ii sold in substantial quantities in the commercial marketplace; and iii offered tothe government, under a contract or subcontract', 36856:'at any tier, without modification, in the same form in which it is sold in the commercial marketplace; and 2', 36857:'does not include bulk cargo, as defined in 46 u.s.c. 401024, such as agricultural products and petroleum products. component means', 36858:'an article, material, or supply incorporated directly into an end product. cost of components means— 1 for components purchased bythe', 36859:'contractor, the acquisition cost, including transportation coststo the place of incorporation into the end product whether or not such costs', 36860:'are paid to a domestic firm, and any applicable duty whether or not a dutyfree entry certificate is issued; or', 36861:'2 for components manufactured bythe contractor, all costs associatedwith the manufacture of the component, including transportation costs as described in', 36862:'paragraph 1 of this definition, plus allocable overhead costs, but excluding profit. cost of components does not include any costs', 36863:'associated with the manufacture of the end product. critical component means a component that is mined, produced, or manufactured in', 36864:'the united states and deemed critical to the u.s. supply chain. the list of critical components is at far 25.105.', 36865:'domestic end product means— 1 for an end product that does not consist wholly or predominantly of iron or steel', 36866:'or a combination of both– i an unmanufactured end product mined or produced in the united states; ii an end', 36867:'product manufactured in the united states, if— a the cost of its components mined, produced, or manufactured in the united', 36868:'states exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for', 36869:'items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029. components', 36870:'of foreign origin of the same class or kind as those that the agency determines are not mined, produced, or', 36871:'manufactured in sufficient andreasonably available commercial quantities of a satisfactory quality are treated as domestic. components of unknown origin are', 36872:'treated as foreign. scrap generated, collected, and prepared for processing in the united states is considered domestic; or b the', 36873:'end product is a cots item; or 2 for an end product that consists wholly or predominantly of iron or', 36874:'steel or a combination of both, an end product manufactured in the united states, if the cost of foreign iron', 36875:'and steel constitutes less than 5 percent of the cost of all the components used in the end product. the', 36876:'cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steelmill products', 36877:'such asbar, billet, slab,wire, plate, or sheet, castings, or forgings utilizedin themanufacture of the 52.2269 52.2253 federal acquisition regulation end', 36878:'product and a good faith estimate of the cost of all foreign iron or steel components excluding cots fasteners. iron', 36879:'or steel components of unknown origin are treated as foreign. if the end product contains multiple components, the cost of', 36880:'all the materials used in such end product is calculated in accordance with the definition of cost of components. end', 36881:'product means those articles, materials, and supplies to be acquired under the contract for public use. fastener means a hardware', 36882:'device that mechanically joins or affixestwo ormore objects together. examples of fasteners are nuts, bolts, pins, rivets, nails, clips, and', 36883:'screws. foreign end product means an end product other than a domestic end product. foreign iron and steel means iron', 36884:'or steel products not produced in the united states. produced in the united states means that all manufacturing processes of', 36885:'the iron or steel must take place in the united states, from the initial melting stage through theapplication of coatings,exceptmetallurgical', 36886:'processes involving refinement of steeladditives. the origin of the elements of the iron or steel is not relevant to the', 36887:'determination of whether it is domestic or foreign. free trade agreement country means australia, bahrain, chile, colombia, costa rica,dominican republic,', 36888:'el salvador, guatemala, honduras, korea republic of, mexico, morocco, nicaragua, oman, panama, peru, or singapore. free trade agreement country end', 36889:'product means an article that 1 is wholly the growth, product,or manufactureof afree trade agreement country; or 2 in the', 36890:'case of anarticle that consists in whole or in part of materials from another country, has been substantially transformed in', 36891:'afree trade agreement country intoa new and different articleof commerce with a name, character, or use distinct from that ofthe', 36892:'articleor articles fromwhich it was transformed. theterm refers to aproduct offeredforpurchase under a supply contract, but for purposes of calculating', 36893:'the value of the end product includes services except transportation services incidental to the article, provided that the value of', 36894:'those incidental services does not exceed that of the article itself. israeli end product means an article that— 1 is', 36895:'wholly the growth, product, or manufacture of israel; or 2 in the case of anarticle that consists in whole or', 36896:'in part of materials from another country, has been substantially transformed in israelinto anew and different article of commerce with', 36897:'a name, character, or use distinct from that ofthe article or articles from which it was transformed. predominantly of iron', 36898:'or steel or a combination of both means that the cost of the iron and steel content exceeds 50 percent', 36899:'of the total cost of all its components. the cost of iron and steel is the cost of the iron', 36900:'or steel mill products such as bar, billet, slab, wire, plate, or sheet, castings,or forgings utilized in the manufacture of', 36901:'the product and a good faith estimate of the cost of iron or steel components excluding cots fasteners. steel means', 36902:'an alloy that includes at least 50 percent iron, between 0.02 and 2 percent carbon, and may include other elements.', 36903:'united states means the 50 states, the district of columbia, and outlying areas. b components of foreign origin. offerors may', 36904:'obtain from the contracting officer alist of foreignarticlesthat the contracting officerwill treat asdomestic for this contract. c delivery of end', 36905:'products. 41 u.s.c. chapter 83, buy american statute, provides a preference for domestic end products for supplies acquired for use', 36906:'in the united states. in accordance with 41 u.s.c. 1907, the domestic content test of the buy american statute is', 36907:'waived for an end product that is a cots item see 12.505a1, except that for an end product that consists', 36908:'wholly or predominantly of iron or steel or a combination of both, the domestic content test is applied only to', 36909:'the iron and steel content of the end product, excluding cots fasteners. unless otherwise specified, these trade agreements apply to', 36910:'all items in the schedule. the contractor shall deliver under this contract only domestic end products except to theextent that,', 36911:'in its offer, it specified delivery of foreign end products inthe provisionentitled buyamericanfree trade agreementsisraeli trade act certificate. if the', 36912:'contractor specified in its offerthat the contractorwouldsupplya free trade agreement country end product other than a bahraini, moroccan, omani, panamanian,', 36913:'or peruvian end product or anisraeli end product, thenthe contractor shall supply a free trade agreement country end product other', 36914:'thana bahraini, moroccan, omani,panamanian, or peruvian end product, anisraeli end productor, at the contractor’s option, a domestic end product. end', 36915:'of clause alternate i [reserved] alternate ii dec 2022. as prescribed in 25.1101 b1ii, substitute the following paragraph c for', 36916:'paragraph c of the basic clause: 52.2270 subpart 52.2 text of provisions and clauses 52.2254 c delivery of end products.', 36917:'41 u.s.c. chapter 83 provides a preference for domestic end products for supplies acquired for use in the united states.', 36918:'in accordance with 41 u.s.c. 1907, the domestic content test of the buy american statute is waived for an end', 36919:'product that is a cots item see 12.505a1, except that for an end product that consists wholly or predominantly of', 36920:'iron or steel or a combination of both, the domestic content test is applied only to the iron and steel', 36921:'content of the end product, excluding cots fasteners. inaddition, thecontracting officer has determined that the israeli trade act applies to', 36922:'this acquisition. unless otherwise specified, this trade agreement applies to all items in the schedule. the contractor shall deliver under', 36923:'this contract only domesticendproducts except to the extentthat, inits offer,itspecified delivery of foreign end products inthe provisionentitled “buyamerican—free trade agreements—israeli', 36924:'trade act.” if the contractor specified in its offer that the contractor would supply an israeliendproduct, then the contractor shall', 36925:'supply an israeli end product or, at the contractorsoption, a domestic end product. alternate iii feb 2024. as prescribed in', 36926:'25.1101 b1iii, delete the definition of bahraini, moroccan, omani, panamanian, or peruvian end product and add in its place the', 36927:'following definition of korean end product in paragraph a of the basic clause; and substitute the following paragraph c for', 36928:'paragraph c of the basic clause: korean end product means an article that— 1 is wholly the growth, product, or', 36929:'manufacture of korea republic of; or 2 in the case of anarticle that consists in whole or in part of', 36930:'materials from another country, has been substantially transformed in korea republic of intoa new and different article of commerce with', 36931:'a name,character, or use distinct from that of the article or articles from which it was transformed. the term refers', 36932:'to a product offered for purchase under a supply contract, but for purposes of calculating the value of the end', 36933:'product includes services except transportation services incidental to the article, provided that the value of those incidental services does not', 36934:'exceed that of the article itself. c delivery of end products. 41 u.s.c. chapter 83 provides a preference for domestic', 36935:'end products for supplies acquired for use in the united states. in accordance with 41 u.s.c.1907, the domestic content test', 36936:'of the buy american statute is waived for an end product that is a cots item see 12.505a1, except that', 36937:'for an end product that consists wholly or predominantly of iron or steel or a combination of both, the domestic', 36938:'content test is applied only to the iron and steel content of the end product, excluding cots fasteners. inaddition, thecontracting', 36939:'officer has determined that the korearepublic of ftaand the israeli trade act apply to this acquisition. unless otherwise specified, these', 36940:'trade agreements apply to all items in the schedule. the contractor shall deliver under this contract only domestic end products', 36941:'except to the extent that, in its offer, it specified deliveryof foreign end products inthe provisionentitled “buy american—free trade agreements—', 36942:'israeli trade act certificate.” if the contractor specified in its offerthat thecontractor wouldsupplya korean end product or an israeliendproduct, then', 36943:'the contractor shall supply a korean end product, an israeli end product, orat the contractor’s option, a domestic end product.', 36944:'alternate iv oct 2022. as prescribed in 25.1101 b1iv substitute the following sentence for the first sentence of paragraph 1iia', 36945:'of the definition of domestic end product in paragraph a: a the cost of its components mined, produced, or manufactured', 36946:'in the united states exceeds percent of the cost of all its components. [ contracting officer to insert the percentage.', 36947:'] 52.2254buy americanfree trade agreementsisraeli trade actcertificate. as prescribed in 25.1101 b2i, insert the following provision: buy americanfree trade agreementsisraeli', 36948:'trade act certificate nov 2023 a 1theofferorcertifiesthateachendproduct,exceptthoselistedinparagraphborc1ofthisprovision,is a domestic end product and that each domestic end product listed in paragraph', 36949:'c2 of this provision contains a critical component. 2 the terms bahraini, moroccan,omani, panamanian, orperuvian endproduct, commercially available off theshelf', 36950:'cots item, criticalcomponent, domesticendproduct, end product, foreign end product, free trade agreement country, free trade agreement country end product, israeli', 36951:'end product, and united states are defined in theclause ofthis solicitation entitled buy americanfree trade agreementsisraeli trade act. b the', 36952:'offeror certifies that the following supplies are free trade agreementcountry end productsother than bahraini, moroccan, omani, panamanian, or peruvian end', 36953:'products or israeli end products as defined in the clause of this solicitation entitled buy americanfree trade agreementsisraelitradeact: 52.2271 52.2254', 36954:'federal acquisition regulation free trade agreement country end products other than bahraini, moroccan, omani, panamanian, or peruvian end products or', 36955:'israeli end products: line item no. country of origin [list as necessary] c 1 theofferor shall list those suppliesthat areforeign', 36956:'end productsother than those listed in paragraph b of this provision asdefined inthe clause of this solicitation entitled buy americanfree', 36957:'trade agreementsisraeli trade act. the offeror shall list as other foreign end products those end products manufactured inthe united states', 36958:'thatdo not qualify as domestic end products. for those foreign end products that do not consist wholly or predominantly of', 36959:'iron or steel or a combination of both, theofferor shall alsoindicate whether theseforeign end products exceed55 percent domestic content, except', 36960:'for those that are cots items. if the percentage of the domestic content is unknown, select “no”. other foreign end', 36961:'products: line item no. countryof origin exceeds 55% domesticcontent yes/no [list as necessary] 2 the offeror shall list the line', 36962:'item numbers ofdomestic end products that contain a criticalcomponent see far 25.105. line item no. [list as necessary] d the', 36963:'government will evaluate offers in accordance with the policies and procedures of part 25 of the federal acquisition regulation. end', 36964:'of provision alternate i [reserved] alternate ii dec 2022. as prescribed in 25.1101 b2ii, substitute the following paragraph b for', 36965:'paragraph b of the basic provision: b the offeror certifies that the following supplies areisraeli end products as defined in', 36966:'the clauseof this solicitation entitled “buy american—free trade agreements—israelitradeact—balance of payments program”: israeli end products: line item no. [list as', 36967:'necessary] alternate iii feb 2024. as prescribed in 25.1101 b2iii, substitute the following paragraph b for paragraph b of the', 36968:'basic provision: 52.2272 subpart 52.2 text of provisions and clauses 52.2255 b the offeror certifies that the following supplies are', 36969:'korean end products or israeli end productsas defined in the clause of this solicitation entitled “buy american—free trade agreements—israeli trade', 36970:'act”: korean end products or israeli end products: line item no. country of origin [list as necessary] 52.2255 trade agreements.', 36971:'as prescribed in 25.1101c1, insert the following clause: trade agreements nov 2023 a definitions. as used in this clause caribbean', 36972:'basin country end product— 1 means an article that i a is wholly the growth, product, or manufacture of a', 36973:'caribbean basin country; or b in the case of an article thatconsists inwhole or in part of materials from another', 36974:'country, has been substantially transformed in a caribbean basincountry into a new anddifferent article of commerce witha name, character, or', 36975:'use distinct from that of the article or articles from which it was transformed; and ii is not excluded from', 36976:'dutyfree treatment for caribbean countries under 19 u.s.c.2703b. a for this reason, the following articles are not caribbean basin country', 36977:'end products: 1 tuna, prepared or preserved in any manner inairtight containers; 2 petroleum, or any product derived from petroleum;', 36978:'3 watches and watch parts including cases, bracelets, and straps of whatever type including, but not limited to, mechanical, quartz', 36979:'digital, or quartz analog, if such watches or watch parts contain any material that is the product of any country', 36980:'to which the harmonized tariff schedule of theunited stateshtsus column2 rates of duty apply i.e., afghanistan, cuba, laos, north korea,', 36981:'and vietnam; and 4 certain of thefollowing: textiles andapparel articles; footwear,handbags, luggage, flat goods,work gloves, and leather wearing apparel; or', 36982:'handloomed, handmade, and folklore articles; b access to the htsus to determine dutyfree status of articles of these types is', 36983:'available at https://usitc.gov/ tata/hts/index.htm. in particular, see the following: 1 general note3c, products eligibleforspecial tariff treatment. 2 general note17, products', 36984:'of countries designated as beneficiary countries under the united states caribbean basin trade partnershipactof 2000. 3 section xxii, chapter 98,', 36985:'subchapter ii, articles exported and returned, advanced or improved abroad, u.s. note7b. 4 sectionxxii, chapter 98, subchapter xx, goods eligibleforspecial', 36986:'tariff benefits underthe united statescaribbeanbasin trade partnership act; and 2 refers to aproduct offeredforpurchase under asupplycontract, but for purposes of', 36987:'calculatingthe value of the acquisition, includes services except transportation services incidental to the article, provided that the value of those', 36988:'incidental services does not exceed that of the article itself. designated country means any of the following countries: 1 a', 36989:'world trade organization government procurement agreement wtogpa countryarmenia, aruba, australia, austria, belgium, bulgaria, canada, croatia, cyprus, czech republic, denmark, estonia,', 36990:'finland, france, germany, greece,hongkong, hungary, iceland, ireland, israel, italy,japan, korea republic of, latvia, liechtenstein, lithuania, luxembourg, malta, moldova, montenegro, netherlands,', 36991:'new zealand, north macedonia, norway, poland, portugal, romania, singapore, slovakrepublic, slovenia, spain, sweden, switzerland, taiwan known in the world trade', 36992:'52.2273 52.2256 federal acquisition regulation organization as the separate customs territory of taiwan, penghu, kinmen and matsu chinese taipei, ukraine,', 36993:'or united kingdom; 2 a free trade agreementftacountry australia, bahrain, chile, colombia, costa rica, dominicanrepublic, el salvador, guatemala, honduras, korea', 36994:'republic of, mexico, morocco, nicaragua, oman, panama, peru, or singapore; 3 a least developed country afghanistan, angola, bangladesh, benin, bhutan,', 36995:'burkina faso, burundi, cambodia, central african republic, chad, comoros, democratic republic of congo, djibouti, equatorial guinea, eritrea, ethiopia, gambia, guinea,', 36996:'guineabissau, haiti, kiribati, laos, lesotho, liberia, madagascar, malawi, mali, mauritania, mozambique, nepal,niger, rwanda, samoa, sao tome and principe, senegal,sierra leone,', 36997:'solomon islands, somalia, south sudan, tanzania, timorleste, togo,tuvalu, uganda, vanuatu, yemen, or zambia; or 4 a caribbean basin country antiguaandbarbuda,', 36998:'aruba, bahamas, barbados, belize, bonaire, british virgin islands, curacao, dominica,grenada, guyana, haiti, jamaica,montserrat,saba, st. kitts and nevis, st. lucia, st.', 36999:'vincent and the grenadines,sinteustatius, sint maarten, ortrinidad and tobago. designated country end product means awto gpa countryend product, an fta', 37000:'country end product, a least developed country end product, or a caribbean basin country end product. end product means those', 37001:'articles, materials, and supplies to be acquired under the contract for public use. free trade agreement country end product means', 37002:'an article that 1 is wholly the growth, product,or manufactureof afree trade agreement fta country; or 2 in the case', 37003:'of anarticle that consists in whole or in part of materials from another country, has been substantially transformed in an', 37004:'fta country into a new and different article ofcommerce with aname, character,or use distinctfrom that of the article or articles', 37005:'from which it was transformed. the term refers toa productoffered for purchase undera supply contract, but for purposes of calculating', 37006:'the value of the end product includes services except transportation services incidental to the article, provided that the value of', 37007:'those incidental services does not exceed that of the article itself. least developed country end product means an article that', 37008:'1 is wholly the growth, product, or manufacture of a least developed country; or 2 in the case of anarticle', 37009:'that consists in whole or in part of materials from another country, has been substantially transformed in aleast developed country', 37010:'into a new and different article ofcommerce with aname,character, or use distinct from that of the article or articles from', 37011:'which it was transformed. the term refers to a product offered for purchase under a supply contract, but for purposes', 37012:'of calculating the value of the end product, includes services except transportation services incidental to the article, provided that the', 37013:'value of those incidental services does not exceed that of the article itself. united states means the 50 states, the', 37014:'district of columbia, and outlying areas. u.s.made end product means an article that is mined, produced, or manufactured in the', 37015:'united states or that is substantially transformed in the united states into a newand differentarticle of commerce with a name,', 37016:'character,or use distinct from that of the article or articles from which it was transformed. wto gpa country end product', 37017:'means an article that 1 is wholly the growth, product,or manufactureof awtogpa country; or 2 in the case of anarticle', 37018:'that consists in whole or in part of materials from another country, has been substantially transformed in awtogpa country into', 37019:'a new and different article of commercewith a name, character, oruse distinct from that of the article or articles from', 37020:'which it was transformed. the term refers to a product offered for purchase under a supply contract, but for purposes', 37021:'of calculating the value of the end product includes services, except transportation services incidental to the article, provided that the', 37022:'value of those incidental services does not exceed that of the article itself. b delivery of end products. the contracting', 37023:'officer has determined thatthe wto gpa and ftas apply to this acquisition. unless otherwise specified, these trade agreements apply to', 37024:'all items in the schedule. the contractor shall deliver underthiscontract only u.s.made ordesignated country end products except to theextent that,', 37025:'in its offer, it specified delivery of other end products in the provision entitled trade agreements certificate. end of clause', 37026:'52.2256tradeagreements certificate. as prescribed in 25.1101c2, insert the following provision: trade agreements certificate feb 2021 52.2274 subpart 52.2 text of', 37027:'provisions and clauses 52.2258 a theofferor certifies thateach end product, except thoselistedin paragraph b of this provision,is a u.s.made or', 37028:'designated country end product, asdefined inthe clause of this solicitation entitled trade agreements. b the offeror shall list asotherendproducts those', 37029:'suppliesthat arenot u.s.made or designated country end products. other end products: line item no. country of origin [list as necessary]', 37030:'cthegovernmentwillevaluateoffersinaccordancewiththepoliciesandproceduresof part 25 of the federal acquisition regulation. for lineitemscovered by thewtogpa, the government will evaluate offers of u.s.made or', 37031:'designated country end products without regard to the restrictions of the buy american statute. the government will consider for award', 37032:'only offers of u.s.made or designated country end products unless thecontracting officer determines that there are no offers for suchproducts', 37033:'or that theoffers for those products are insufficient to fulfill therequirements of this solicitation. end of provision 52.2257waiver ofbuy american', 37034:'statutefor civilaircraft and related articles. as prescribed in 25.1101d, insert the following provision: waiver of buy american statute for civil', 37035:'aircraft and related articles feb 2016 a definition. civil aircraft and related articles, as used in this provision, means 1', 37036:'all aircraft other than aircraft to be purchased for use by the department of defense or the u.s. coast guard;', 37037:'2 the engines and parts and components for incorporation into the engines of these aircraft; 3 any other parts, components,', 37038:'and subassemblies for incorporation into the aircraft; and 4 any ground flight simulators, and parts and components of these simulators,', 37039:'for use with respect to the aircraft, whether to be usedas originalor replacement equipment in themanufacture, repair,maintenance, rebuilding, modification, or', 37040:'conversion of the aircraft, and without regard to whether the aircraft or articles receive dutyfree treatment under section 601a2of the', 37041:'trade agreements act. b the u.s. trade representative haswaived the buy american statute for acquisitions of civil aircraft and related', 37042:'articles from countries that are partiesto theagreement on trade in civil aircraft. those countries are albania, austria, belgium, bulgaria, canada,', 37043:'croatia,cyprus, czechrepublic, denmark, egypt, estonia, finland, france, georgia, germany, greece, hungary, ireland,italy, japan, latvia, lithuania, luxembourg, macao china, malta, montenegro,', 37044:'the netherlands, norway, poland, portugal,romania, slovakia, slovenia, spain, sweden, switzerland, taiwan chinese taipei, and the united kingdom. c for the', 37045:'purpose of this waiver, anarticle isa productof acountry only if 1 it is wholly the growth, product, or manufacture of', 37046:'that country; or 2 in the case of anarticle that consists in whole or in part of materials from another', 37047:'country, it has been substantially transformed intoa new and different articleof commerce with a name, character, or use distinct fromthat', 37048:'of the article or articles from which it was transformed. d the waiver is subjectto modification orwithdrawal by theu.s. traderepresentative.', 37049:'end of provision 52.2258dutyfree entry. as prescribed in 25.1101e, insert the following clause: dutyfree entry oct 2010 52.2275 52.2258 federal', 37050:'acquisition regulation a definition. customs territory of the united states means the states, the district of columbia, and puerto rico.', 37051:'b except as otherwise approved bythe contracting officer, thecontractor shall not includein thecontract priceany amount for duties onsupplies specificallyidentified in', 37052:'the schedule to be accorded dutyfree entry. c except as provided in paragraph d of this clause or elsewhere in', 37053:'this contract, the following procedures apply to supplies not identified in the schedule to be accorded dutyfree entry: 1 the', 37054:'contractor shall notify the contracting officer inwriting of any purchase of foreignsupplies including, without limitation, raw materials, components, and intermediate', 37055:'assemblies in excess of $15,000 that are to be imported into the customs territory of the united states for delivery', 37056:'to the government under this contract, either as end products or for incorporationinto end products. the contractorshallfurnish the notice tothe', 37057:'contracting officerat least 20 calendardays before the importation. the notice shall identify the i foreign supplies; ii estimated amount of', 37058:'duty; and iii country of origin. 2 the contracting officer will determine whether any of these suppliesshouldbe accorded dutyfree entry', 37059:'and will notify the contractor within 10 calendardays after receiptof the contractor’s notification. 3 except as otherwise approved bythe contracting', 37060:'officer, thecontract priceshallbe reduced byorthe allowable cost shall not include the amount of duty that would be payable if the', 37061:'supplies were not entered dutyfree. d the contractor is not required to provide the notification under paragraph c of this', 37062:'clause for purchases of foreign supplies if 1 the supplies are identical in nature to items purchased by the contractor', 37063:'or any subcontractor in connection with its commercial business; and 2 segregation of these supplies to ensure use only on', 37064:'government contracts containing dutyfree entry provisions is not economical or feasible. e the contractor shall claim dutyfree entry only for', 37065:'supplies to be delivered to the government under this contract, either as end products or incorporated into end products, and', 37066:'shall pay duty on supplies, or any portion of them, other than scrap, salvage, or competitivesale authorized by thecontracting officer,diverted', 37067:'to nongovernmental use. f the government will execute any required dutyfree entry certificates for supplies to be accorded dutyfree entry', 37068:'and will assist the contractor in obtaining dutyfree entry for these supplies. g shipping documents for supplies to be accorded', 37069:'dutyfree entry shall consign the shipments to the contracting agency in care of the contractor and shall include the 1', 37070:'delivery address of thecontractor or contractingagency, if appropriate; 2 government prime contract number; 3 identification of carrier; 4 notation united', 37071:'states government, [agency] , dutyfree entry to be claimed pursuant to item nos [from tariff schedules] , harmonized tariff schedules', 37072:'of the united states. upon arrival of shipment at port of entry,district director of customs,please release shipment under 19 cfr', 37073:'part 142 and notify [cognizant contract administration office] for execution of customs forms7501 and 7501a and any required dutyfree entry', 37074:'certificates. ; 5 gross weight in pounds if freight is based on space tonnage, state cubic feet in addition to', 37075:'gross shipping weight; and 6 estimated value in united states dollars. h the contractor shall instruct the foreign supplier to', 37076:'1 consign the shipment as specified in paragraph g of this clause; 2 mark all packages with thewords united states', 37077:'government and the titleof the contractingagency; and 3 include with the shipment at least two copies of the bill of', 37078:'lading or other shipping document for use by the districtdirector of customs at theportof entry. ithe contractorshallprovide written noticeto the', 37079:'cognizant contract administrationoffice immediately after notificationby the contracting officer that dutyfree entry willbe accorded foreignsupplies or, for dutyfree supplies identified', 37080:'in the schedule, upon awardby the contractor tothe overseassupplier. the notice shall identify the 1 foreign supplies; 2 country of', 37081:'origin; 3 contract number; and 4 scheduled delivery dates. j the contractor shall include the substance of this clause in', 37082:'any subcontract if52.2 276 subpart 52.2 text of provisions and clauses 52.2259 1 supplies identified in the schedule to be', 37083:'accorded dutyfree entry will be imported into the customs territory of the united states; or 2 other foreign supplies in', 37084:'excess of $15,000 may be imported into the customs territory of the united states. end of clause 52.2259 buy americanconstruction', 37085:'materials. as prescribed in 25.1102a, insert the following clause: buy americanconstruction materials oct 2022 a definitions. as used in this', 37086:'clause— commercially available offtheshelf cots item— 1 means any item of supply including construction material that is– i a commercial', 37087:'product as defined in paragraph 1 of the definition of “commercial product” at federal acquisition regulationfar 2.101; ii sold in', 37088:'substantial quantities in the commercial marketplace; and iii offered tothe government, under a contract or subcontract at any tier, without', 37089:'modification, in the same form in which it is sold in the commercial marketplace; and 2 does not include bulk', 37090:'cargo, as defined in 46 u.s.c. 401024, such as agricultural products and petroleum products. construction material means an article, material,', 37091:'or supply brought to the construction site by the contractor or a subcontractor for incorporation into the building or work.', 37092:'the term also includes an item brought to the site preassembled from articles, materials, orsupplies. however, emergency life safety systems,', 37093:'such as emergency lighting,fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work', 37094:'and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or', 37095:'how the individual parts or components of those systems are delivered to the construction site. materials purchased directly by the', 37096:'government are supplies, not construction material. cost of components means— 1 for components purchased bythe contractor, the acquisition cost, including', 37097:'transportation coststo the place of incorporation into the construction material whether or not such costs are paid to a domestic', 37098:'firm, and any applicable duty whether or not a dutyfree entry certificate is issued; or 2 for components manufactured bythe', 37099:'contractor, all costs associatedwith the manufacture of the component, including transportation costs as described in paragraph 1 of this definition,', 37100:'plus allocable overhead costs, but excluding profit. cost of components does not include any costs associated with the manufacture of', 37101:'the construction material. critical component means a component that is mined, produced, or manufactured in the united states and deemed', 37102:'critical to the u.s. supply chain. the list of critical components is at far 25.105. critical item means a domestic', 37103:'construction material or domestic end product that is deemed critical to u.s. supply chain resiliency. the list of criticalitems is', 37104:'at far 25.105. domestic construction material means— 1 for construction material that does not consist wholly or predominantly of iron', 37105:'or steel or a combination of both i an unmanufactured construction material mined or produced in the united states; or', 37106:'ii a construction material manufactured in the united states, if– a the cost of its components mined, produced, or manufactured', 37107:'in the united states exceeds 60 percent of the cost of all its components, except that the percentage will be', 37108:'65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar', 37109:'year 2029. components of foreign origin of the same class or kind for which nonavailability determinations have been made are', 37110:'treated as domestic. components of unknown origin are treated as foreign; or b the construction material is a cots item;', 37111:'or 2 for construction material that consists wholly or predominantly of iron or steel or a combination of both, a', 37112:'construction material manufactured in the united states if the cost of foreign iron and steel constitutes less than 5 percent', 37113:'of the cost of all components used in such construction material. the cost of foreign iron and steel includes but', 37114:'is not limited to the cost of foreign iron or steel mill products such as bar, billet, slab, wire, plate,', 37115:'or sheet, castings,or forgings utilized 52.2277 52.2259 federal acquisition regulation in the manufacture of the construction material and a good', 37116:'faith estimate of the cost of all foreign iron or steel components excluding cots fasteners. iron or steel components of', 37117:'unknown origin are treated as foreign. if the construction material contains multiple components, the cost of all the materials used', 37118:'in such construction material is calculated in accordance with the definition of cost of components. fastener means a hardware device', 37119:'that mechanically joins or affixestwo ormore objects together. examples of fasteners are nuts, bolts, pins, rivets, nails, clips, and screws.', 37120:'foreign construction material means a construction material other than a domestic construction material. foreign iron and steel means iron or', 37121:'steel products not produced in the united states. produced in the united states means that all manufacturing processes of the', 37122:'iron or steel must take place in the united states, from the initial melting stage through theapplication of coatings,exceptmetallurgical processes', 37123:'involving refinement of steeladditives. the origin of the elements of the iron or steel is not relevant to the determination', 37124:'of whether it is domestic or foreign. predominantly of iron or steel or a combination of both means that the', 37125:'cost of the iron and steel content exceeds 50 percent of the total cost of all its components. the cost', 37126:'of iron and steel is the cost of the iron or steel mill products such as bar, billet, slab, wire,', 37127:'plate, or sheet, castings,or forgings utilized in the manufacture of the product and a good faith estimate of the cost', 37128:'of iron or steel components excluding cots fasteners. steel means an alloy that includes at least 50 percent iron, between', 37129:'0.02 and 2 percent carbon, and may include other elements. united states means the 50 states, the district of columbia,', 37130:'and outlying areas. b domestic preference. 1 this clause implements 41 u.s.c. chapter 83, buy american, by providing a preference', 37131:'for domestic construction material. in accordance with 41 u.s.c. 1907, the domestic content test of the buy american statute is', 37132:'waived for construction material that is a cots item, except that for construction material that consists wholly or predominantly of', 37133:'iron or steel or a combination of both, the domestic content test is applied only to the iron and steel', 37134:'content of the construction materials, excluding cots fasteners. see far 12.505a2. the contractor shall use only domestic construction material in', 37135:'performing this contract, except as provided in paragraphs b2 and b3 of this clause. 2 this requirement does not apply', 37136:'to information technology that is a commercial product or to the construction materials or components listed by the government as', 37137:'follows: [contracting officer to list applicable excepted materials or indicate none] 3 the contracting officer may add other foreign construction', 37138:'material to the list in paragraph b2 of thisclause if the government determines that i the cost of domestic construction', 37139:'material would be unreasonable. a for domestic construction material that is not a critical item or does not contain critical', 37140:'components. 1 the cost of a particular domestic construction material subject to the requirements of the buy american statute is', 37141:'unreasonable when the cost of such material exceeds the cost of foreign material by more than 20 percent; 2 for', 37142:'construction material that is not a cots item and does not consist wholly or predominantly of iron or steel or', 37143:'a combination of both, if the cost of a particular domestic construction material is determined to be unreasonable or thereis', 37144:'no domestic offerreceived, and thelow offeris for foreign constructionmaterial thatis manufactured in the unitedstates and does not exceed 55 percent', 37145:'domestic content, the contracting officer will treatthe lowest offer offoreign constructionmaterial that exceeds 55 percentdomestic content as a domestic offer', 37146:'and determine whether the cost ofthat offer isunreasonable by applying theevaluation factor listed in paragraph b3ia1 of this clause. 3', 37147:'the procedures in paragraph b3ia2 of this clause will no longer apply as of january 1, 2030. b for domestic', 37148:'construction material that is a critical item or contains critical components. 1 the cost of a particular domestic construction material', 37149:'that is a critical item or contains critical components, subject to the requirements of the buy american statute, is unreasonable', 37150:'when the cost of such material exceeds the cost of foreign material by more than 20 percent plus the additional', 37151:'preference factor identified for the critical item or construction material containing critical components listed at far 25.105. 2 for construction', 37152:'material that does not consist wholly or predominantly of iron or steel or a combination of both, if the cost', 37153:'of a particular domestic construction material is determined to be unreasonable or there is no domestic offer received, and the', 37154:'low offer isforforeign construction material that does not exceed 55 percent domestic content, the contracting officerwill treat the lowest foreign', 37155:'offerof construction materialthat ismanufactured inthe unitedstates and exceeds 55percent domesticcontent asa domestic offer, and determine whether thecost of that offer', 37156:'is unreasonable by applying the evaluation factor listed in paragraph b3ib1 of this clause. 3 the procedures in paragraph b3ib2', 37157:'of this clause will no longer apply as of january 1, 2030. 52.2278 subpart 52.2 text of provisions and clauses', 37158:'52.2259 ii the application of the restriction of the buy american statute to a particular construction material would be impracticable', 37159:'or inconsistent with the public interest; or iii the construction material is not mined, produced,or manufactured in the united states', 37160:'in sufficient and reasonablyavailable commercial quantities of a satisfactory quality. c request for determination of inapplicability of the buy american', 37161:'statute. 1 i any contractor request to use foreign construction material in accordance with paragraph b3 of this clause shall', 37162:'include adequate information for government evaluation of the request, including a a description of the foreign and domestic construction materials;', 37163:'b unit of measure; c quantity; d price; e time of deliveryor availability; f location of the construction project; g', 37164:'name and address of the proposed supplier; and h a detailed justification of the reason for use of foreign construction', 37165:'materials cited in accordance with paragraph b3 of this clause. ii a request based on unreasonable cost shall include a', 37166:'reasonable survey of the market and a completed price comparison table in the format in paragraph d of this clause.', 37167:'iii the price of construction material shall include all delivery costs to the construction site and any applicable duty whether', 37168:'or not a dutyfree certificate may be issued. iv any contractor request for a determination submitted after contract award shall', 37169:'explain why the contractor could not reasonably foresee the need for such determination and could not have requested the determination', 37170:'before contract award. ifthe contractor does notsubmit a satisfactory explanation, the contracting officer need notmake a determination. 2 if the', 37171:'government determines after contract award that an exception to the buy american statute applies and the contracting officerand the contractor', 37172:'negotiate adequate consideration,the contracting officerwill modify the contract to allow use ofthe foreign construction material. however,when the basisforthe exceptionis the', 37173:'unreasonable priceof a domestic construction material, adequateconsideration is notless than the differential establishedin paragraph b3iof this clause. 3 unless the', 37174:'government determines that an exception to the buy american statute applies, use of foreign construction material is noncompliant with the', 37175:'buy american statute. d data. to permit evaluationof requests under paragraph c of this clause based onunreasonable cost, the contractor', 37176:'shall include the following information and any applicable supporting data based on the survey of suppliers: foreign and domestic construction', 37177:'materials price comparison construction unit of quantity price material description measure dollars item1: foreign construction material domestic construction material item2:', 37178:'foreign construction material domestic construction material 52.2279 52.22510 federal acquisition regulation [ include all delivery costs to the construction site', 37179:'and any applicable duty whether or not a dutyfree entry certificate is issued]. [list name, address, telephone number, and contact', 37180:'for suppliers surveyed. attach copy of response; if oral, attach summary.] [include other applicable supporting information.] end of clause alternate', 37181:'i oct 2022. as prescribed in 25.1102 a3 substitute the following sentence for the first sentence in paragraph 1iia of', 37182:'the definition of “domestic construction material” in paragraph a: a the cost of its components mined, produced, or manufactured in', 37183:'the united states exceeds percent of the cost of all its components. [ contracting officer to insert the percentage. ]', 37184:'52.22510 noticeof buy american requirementconstruction materials. as prescribed in 25.1102b1, insert the following provision: notice of buy american requirementconstruction materials', 37185:'may 2014 a definitions. commercially available offtheshelf cotsitem, constructionmaterial, domestic construction material, and foreign construction material, as used in this', 37186:'provision, are defined in the clause of this solicitation entitled buy americanconstruction materials federal acquisition regulation farclause 52.2259. b requests', 37187:'for determinations of inapplicability. anofferor requesting adeterminationregardingthe inapplicability of the buyamericanstatuteshouldsubmit therequest to the contracting officer in timeto allow a', 37188:'determination before submission of offers. the offeror shall include theinformationandapplicable supportingdata required by paragraphsc and d of the clauseat far', 37189:'52.2259in therequest. if an offeror has not requested a determination regarding the inapplicability of the buyamericanstatutebefore submitting its offer, or', 37190:'has not received a response to a previous request, the offeror shall include the information and supportingdata inthe offer. cevaluationofoffers.', 37191:'1thegovernmentwillevaluateanofferrequestingexceptiontotherequirementsofthebuy american statute, based onclaimed unreasonable cost of domestic construction material, by addingto theoffered pricethe appropriate percentage of the cost', 37192:'of such foreign construction material, as specified in paragraph b3i of the clause at far 52.2259. 2 if evaluation results', 37193:'in a tie betweenan offerorthat requested the substitution of foreign construction material based on unreasonable cost and an offeror that', 37194:'did not request an exception, the contracting officer willaward to the offerorthat did not request an exception based on unreasonable', 37195:'cost. dalternateoffers. 1whenanofferincludesforeignconstructionmaterialnotlistedbythegovernmentinthis solicitation in paragraph b2 of the clause atfar 52.2259, the offeroralso maysubmit analternate offer based on use', 37196:'of equivalent domestic construction material. 2 if an alternate offer issubmitted,the offerorshallsubmit a separate standard form 1442 for the alternateoffer,', 37197:'and a separate pricecomparison table prepared in accordance with paragraphs c and d of the clause at far 52.2259 for', 37198:'theoffer that is based on the useof any foreign construction material for which the government has not yetdetermined an exception', 37199:'applies. 3 if the government determines that a particular exception requested in accordance with paragraph c of the clause at', 37200:'far 52.2259 doesnot apply, thegovernment will evaluate only those offers based onuse of the equivalent domestic constructionmaterial, and the offeror', 37201:'shall be requiredto furnish such domestic construction material. an offer basedon use of the foreign construction material for which an', 37202:'exception was requested iwill be rejected asnonresponsiveif this acquisition is conducted by sealedbidding; or ii may be accepted if revised', 37203:'during negotiations. end of provision alternate i may 2014. as prescribed in 25.1102 b2, substitute the following paragraph b for', 37204:'paragraph b of the basic provision: 52.2280 subpart 52.2 text of provisions and clauses 52.22511 b requests for determinations of', 37205:'inapplicability. anofferor requesting adeterminationregardingthe inapplicabilityof thebuy american statute shall submit the requestwith its offer, including the information and applicable supporting', 37206:'data required byparagraphs c and d of the clauseat far 52.2259. 52.22511buy americanconstruction materials under trade agreements. as prescribed in', 37207:'25.1102c, insert the following clause: buy americanconstruction materials under trade agreements nov 2023 a definitions. as used in this clause—', 37208:'caribbean basin country construction material means a construction material that— 1 is wholly the growth, product, or manufacture of a', 37209:'caribbean basin country; or 2 in the case of a construction materialthat consists in wholeor in part of materials from', 37210:'another country, hasbeen substantially transformed in a caribbean basincountry into a new anddifferent construction material distinct from the materials from', 37211:'which it was transformed. commercially available offtheshelf cots item— 1 means any item of supply including construction material that is–', 37212:'i a commercial product as defined in paragraph 1 of the definition of “commercial product” at federal acquisition regulationfar 2.101;', 37213:'ii sold in substantial quantities in the commercial marketplace; and iii offered tothe government, under a contract or subcontract at', 37214:'any tier, without modification, in the same form in which it is sold in the commercial marketplace; and 2 does', 37215:'not include bulk cargo, as defined in 46 u.s.c. 401024, such as agricultural products and petroleum products. component means an', 37216:'article, material, or supply incorporated directly into a construction material. construction material means an article, material, or supply brought to', 37217:'the construction site by the contractor or subcontractor for incorporation into the building or work. the term also includes an', 37218:'item brought to the site preassembled from articles, materials, orsupplies. however, emergency life safety systems, such as emergency lighting,fire alarm,', 37219:'and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as', 37220:'complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or', 37221:'components of those systems are delivered to the construction site. materials purchased directly by the government are supplies, not construction', 37222:'material. cost of components means— 1 for components purchased bythe contractor, the acquisition cost, including transportation coststo the place of', 37223:'incorporation into the construction material whether or not such costs are paid to a domestic firm, and any applicable duty', 37224:'whether or not a dutyfree entry certificate is issued; or 2 for components manufactured bythe contractor, all costs associatedwith the', 37225:'manufacture of the component, including transportation costs as described in paragraph 1 of this definition, plus allocable overhead costs, but', 37226:'excluding profit. cost of components does not include any costs associated with the manufacture of the construction material. critical component', 37227:'means a component that is mined, produced, or manufactured in the united states and deemed critical to the u.s. supply', 37228:'chain. the list of critical components is at far 25.105. critical item means a domestic construction material or domestic end', 37229:'product that is deemed critical to u.s. supply chain resiliency. the list of criticalitems is at far 25.105. designated country', 37230:'means any of the following countries: 1 a world trade organization government procurement agreement wtogpa countryarmenia, aruba, australia, austria, belgium,', 37231:'bulgaria, canada, croatia, cyprus, czech republic, denmark, estonia, finland, france, germany, greece,hongkong, hungary, iceland, ireland, israel, italy,japan, korea republic of,', 37232:'latvia, liechtenstein, lithuania, luxembourg, malta, moldova, montenegro, netherlands, new zealand, north macedonia, norway, poland, portugal, romania, singapore, slovakrepublic, slovenia, spain,', 37233:'sweden, switzerland, taiwan, ukraine, or united kingdom; 2 a free trade agreementftacountry australia, bahrain, chile, colombia, costa rica, dominicanrepublic, el', 37234:'salvador, guatemala,honduras, korea republic of, mexico, morocco,nicaragua, oman, panama,peru, or singapore; 52.2281 52.22511 federal acquisition regulation 3 a least developed', 37235:'country afghanistan, angola, bangladesh, benin, bhutan, burkina faso, burundi, cambodia, central african republic, chad, comoros, democratic republic of congo, djibouti,', 37236:'equatorial guinea, eritrea, ethiopia, gambia, guinea, guineabissau, haiti, kiribati, laos, lesotho, liberia, madagascar, malawi, mali, mauritania, mozambique, nepal,niger, rwanda, samoa,', 37237:'sao tome and principe, senegal,sierra leone, solomon islands, somalia, south sudan, tanzania, timorleste, togo,tuvalu, uganda, vanuatu, yemen, or zambia; or', 37238:'4 a caribbean basin country antiguaandbarbuda, aruba, bahamas, barbados, belize, bonaire, british virgin islands, curacao, dominica,grenada, guyana, haiti, jamaica,montserrat,saba, st.', 37239:'kitts and nevis, st. lucia, st. vincent and the grenadines,sinteustatius, sint maarten, ortrinidad and tobago. designated country construction material means', 37240:'aconstruction material that is a wto gpa country construction material, an fta country construction material, a least developed country construction', 37241:'material, or a caribbean basin country construction material. domestic construction material means— 1 for construction material that does not consist', 37242:'wholly or predominantly of iron or steel or a combination of both i an unmanufactured construction material mined or produced', 37243:'in the united states; or ii a construction material manufactured in the united states, if— a the cost of its', 37244:'components mined, produced, or manufactured in the united states exceeds 60 percent of the cost of all its components, except', 37245:'that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for', 37246:'items delivered starting in calendar year 2029. b the construction material is a cots item; or 2 for construction material', 37247:'that consists wholly or predominantly of iron or steel or a combination of both, a construction material manufactured in the', 37248:'united states if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all', 37249:'components used in such construction material. the cost of foreign iron and steel includes but is not limited to the', 37250:'cost of foreign iron or steel mill products such as bar, billet, slab, wire, plate, or sheet, castings,or forgings utilized', 37251:'in the manufacture of the construction material and a good faith estimate of the cost of all foreign iron or', 37252:'steel components excluding cots fasteners. iron or steel components of unknown origin are treated as foreign. if the construction material', 37253:'contains multiple components, the cost of all the materials used in such construction material is calculated in accordance with the', 37254:'definition of cost of components. fastener means a hardware device that mechanically joins or affixestwo ormore objects together. examples of', 37255:'fasteners are nuts, bolts, pins, rivets, nails, clips, and screws. foreign construction material means a construction material other than a', 37256:'domestic construction material. foreign iron and steel means iron or steel products not produced in the united states. produced in', 37257:'the united states means that all manufacturing processes of the iron or steel must take place in the united states,', 37258:'from the initial melting stage through theapplication of coatings,exceptmetallurgical processes involving refinement of steeladditives. the origin of the elements of', 37259:'the iron or steel is not relevant to the determination of whether it is domestic or foreign. free trade agreement', 37260:'country construction material means a construction material that 1 is wholly the growth, product,or manufactureof afree trade agreement fta country;', 37261:'or 2 in the case of a construction materialthat consists in wholeor in part of materials from another country, hasbeen', 37262:'substantially transformed in a fta country into a newand differentconstruction material distinct from the materials from which it was transformed.', 37263:'least developed country construction material means a construction material that 1 is wholly the growth, product, or manufacture of a', 37264:'least developed country; or 2 in the case of a construction materialthat consists in wholeor in part of materials from', 37265:'another country, hasbeen substantially transformed in a least developed country into a new and different construction material distinct from the', 37266:'materials from which it was transformed. predominantly of iron or steel or a combination of both means that the cost', 37267:'of the iron and steel content exceeds 50 percent of the total cost of all its components. the cost of', 37268:'iron and steel is the cost of the iron or steel mill products such as bar, billet, slab, wire, plate,', 37269:'or sheet, castings,or forgings utilized in the manufacture of the product and a good faith estimate of the cost of', 37270:'iron or steel components excluding cots fasteners. steel means an alloy that includes at least 50 percent iron, between 0.02', 37271:'and 2 percent carbon, and may include other elements. united states means the 50 states, the district of columbia, and', 37272:'outlying areas. wto gpa country construction material means a construction material that 1 is wholly the growth, product,or manufactureof awtogpa', 37273:'country; or 52.2282 subpart 52.2 text of provisions and clauses 52.22511 2 in the case of a construction materialthat consists', 37274:'in wholeor in part of materials from another country, hasbeen substantially transformed in a wto gpa country intoa new and', 37275:'different construction material distinctfrom the materials from which it was transformed. b construction materials. 1 this clause implements 41 u.s.c.', 37276:'chapter 83, buy american, by providing a preference for domestic construction material. in accordance with 41 u.s.c.1907, the domestic content', 37277:'test of the buy american statute is waived for construction material that is a cots item, except that for construction', 37278:'material that consists wholly or predominantly of iron or steel or a combination of both, the domestic content test is', 37279:'applied only to the iron and steel content of the construction material, excludingcots fasteners. seefar 12.505a2. inaddition, thecontracting officer has', 37280:'determined that the wto gpa and free trade agreements ftasapply to this acquisition. therefore, the buy american restrictions are waived', 37281:'for designated country construction materials. 2 the contractor shall use only domestic or designated country construction material in performing this', 37282:'contract, except as provided in paragraphs b3 and b4 of this clause. 3 the requirement in paragraph b2 of this', 37283:'clause does not apply to information technology that is a commercial product or to the construction materials or components listed', 37284:'by the government as follows: [contracting officer to list applicable excepted materials or indicate none] 4 the contracting officer may', 37285:'add other foreign construction material to the list in paragraph b3 of thisclause if the government determines that i the', 37286:'cost of domestic construction material would be unreasonable. a for domestic construction material that is not a critical item or', 37287:'does not contain critical components. 1 the cost of a particular domestic construction material subject to the restrictions of the', 37288:'buy american statute is unreasonable when the cost of such material exceeds the cost of foreign material by more than', 37289:'20 percent; 2 for construction material that is not a cots item and does not consist wholly or predominantly of', 37290:'iron or steel or a combination of both, if the cost of a particular domestic construction material is determined to', 37291:'be unreasonable or thereis no domestic offerreceived, and thelow offeris for foreign constructionmaterial thatdoes not exceed 55 percent domestic content,', 37292:'thecontracting officer will treat the lowestoffer of foreign construction material that is manufacturedin theunited statesand exceeds 55 percent domestic content', 37293:'as a domestic offer anddetermine whether thecostof that offeris unreasonable by applying the evaluation factor listed in paragraph b4ia1 of', 37294:'this clause. 3 the procedures in paragraph b4ia2 of this clause will no longer apply as of january 1, 2030.', 37295:'b for domestic construction material that is a critical item or contains critical components. 1 the cost of a particular', 37296:'domestic construction material that is a critical item or contains critical components, subject to the requirements of the buy american', 37297:'statute, is unreasonable when the cost of such material exceeds the cost of foreign material by more than 20 percent', 37298:'plus the additional preference factor identified for the critical item or construction material containing critical components listed at far 25.105.', 37299:'2 for construction material that does not consist wholly or predominantly of iron or steel or a combination of both,', 37300:'if the cost of a particular domestic construction material is determined to be unreasonable or there is no domestic offer', 37301:'received, and the low offer isforforeign construction material that does not exceed 55 percent domestic content, the contracting officerwill treat', 37302:'the lowest offer offoreign construction materialthat ismanufactured inthe unitedstates and exceeds 55percent domesticcontent asa domestic offer, and determine whether thecost', 37303:'of that offer is unreasonable by applying the evaluation factor listed in paragraph b4ib1 of this clause. 3 the procedures', 37304:'in paragraph b4ib2 of this clause will no longer apply as of january 1, 2030. ii the application of the', 37305:'restriction of the buy american act to a particular construction material would be impracticable or inconsistent with the public interest;', 37306:'or iii the construction material is not mined, produced,or manufactured in the united states in sufficient and reasonablyavailable commercial quantities', 37307:'of a satisfactory quality. c request for determination of inapplicability of the buy american statute. 1 i any contractor request', 37308:'to use foreign construction material in accordance with paragraph b4 of this clause shall include adequate information for government evaluation', 37309:'of the request, including a a description of the foreign and domestic construction materials; b unit of measure; c quantity;', 37310:'d price; e time of deliveryor availability; f location of the construction project; 52.2283 52.22511 federal acquisition regulation g name', 37311:'and address of the proposed supplier; and h a detailed justification of the reason for use of foreign construction materials', 37312:'cited in accordance with paragraph b3 of this clause. ii a request based on unreasonable cost shall include a reasonable', 37313:'survey of the market and a completed price comparison table in the format in paragraph d of this clause. iii', 37314:'the price of construction material shall include all delivery costs to the construction site and any applicable duty whether or', 37315:'not a dutyfree certificate may be issued. iv any contractor request for a determination submitted after contract award shall explain', 37316:'why the contractor could not reasonably foresee the need for such determination and could not have requested the determination before', 37317:'contract award. ifthe contractor does notsubmit a satisfactory explanation, the contracting officer need notmake a determination. 2 if the government', 37318:'determines after contract award that an exception to the buy american statute applies and the contracting officerand the contractor negotiate', 37319:'adequate consideration,the contracting officerwill modify the contract to allow use ofthe foreign construction material. however,when the basisforthe exceptionis the unreasonable', 37320:'priceof a domestic construction material, adequateconsideration is notless than the differential establishedin paragraph b4iof this clause. 3 unless the government', 37321:'determines that an exception to the buy american statute applies, use of foreign construction material is noncompliant with the buy', 37322:'american statute. d data. to permit evaluationof requests under paragraph c of this clause based onunreasonable cost, the contractor shall', 37323:'include the following information and any applicable supporting data based on the survey of suppliers: foreign and domestic construction materials', 37324:'price comparison construction material description unit of measure quantity price dollars item1 foreign construction material domestic construction material item1 foreign', 37325:'construction material domestic construction material [ include all delivery costs to the construction site and any applicable duty whether or', 37326:'not a dutyfree entry certificate is issued]. [ list name, address, telephone number, and contact for suppliers surveyed. attach copy', 37327:'of response; if oral, attach summary. ] [ include other applicable supporting information. ] end of clause alternate i nov', 37328:'2023 . as prescribed in 25.1102 c3, add the following definition of bahraini, mexican, or omani construction material to paragraph', 37329:'a of the basic clause, and substitute the following paragraphs b1 and b2 for paragraphs b1 and b2 of the', 37330:'basic clause: bahraini, mexican, or omani construction material means a construction material that 1 is wholly the growth, product, or', 37331:'manufacture of bahrain, mexico, or oman; or 2 in the case of a construction materialthat consists in wholeor in part', 37332:'of materials from another country, hasbeen substantially transformed in bahrain,mexico,or oman intoa new and different construction materialdistinct from the materials', 37333:'from which it was transformed. b construction materials. 1 this clause implements 41 u.s.c. chapter 83, buy american, by providing', 37334:'a preference for domestic construction material. in accordance with 41 u.s.c. 1907, the domestic content test of the buy american', 37335:'statute is waived for construction material that is a cots item, except that for construction material that consists wholly or', 37336:'predominantly of iron or steel or a combination of both, the domestic content test is applied only to the iron', 37337:'and steel 52.2284 subpart 52.2 text of provisions and clauses 52.22512 content of the construction material, excluding cots fasteners. see', 37338:'12.505a2. in addition, the contractingofficer has determined that the wto gpa and all the freetradeagreementsexceptthe bahrain fta, united statesmexicocanada agreement,and', 37339:'the omanfta apply to thisacquisition. therefore, the buy american statute restrictions arewaived for designated country construction materials other than bahraini,', 37340:'mexican, or omani construction materials. 2 the contractor shall use only domestic or designated country construction material other than bahraini,', 37341:'mexican, or omani construction material in performing this contract, except as provided in paragraphs b3 and b4 of this clause.', 37342:'alternate ii oct 2022. as prescribed in 25.1102 c4 substitute the following sentence for the first sentence of paragraph 1iia', 37343:'of the definition of domestic construction material in paragraph a: a the cost of its components mined, produced, or manufactured', 37344:'in the united states exceeds percent of the cost of all its components. [ contracting officer to insert the percentage.', 37345:'] 52.22512 noticeof buy american requirementconstruction materials under trade agreements. as prescribed in 25.1102d1, insert the following provision: notice of', 37346:'buy american requirementconstruction materials under trade agreementsmay 2014 a definitions. commercially available offtheshelf cotsitem, constructionmaterial, designatedcountry construction material, domestic construction', 37347:'material, and foreign construction material, as used in this provision, are definedin the clause of this solicitation entitled buy americanconstruction', 37348:'materials under trade agreements federal acquisition regulationfar clause 52.22511. b requests for determination of inapplicability. an offeror requesting a determination', 37349:'regarding theinapplicability of the buy american statute should submit the request tothe contracting officerin time to allow a determination beforesubmission', 37350:'of offers. the offerorshallinclude the information and applicable supporting data requiredby paragraphs c and d of far clause 52.22511 in', 37351:'therequest. if an offeror has not requested a determination regarding the inapplicability of the buy american statute beforesubmittingits offer, or', 37352:'has not received a response to a previous request, the offeror shall include the information and supporting data in the', 37353:'offer. cevaluationofoffers. 1thegovernmentwillevaluateanofferrequestingexceptiontotherequirementsofthebuy american statute, based onclaimed unreasonable cost of domestic construction materials, by adding tothe offered price the appropriate', 37354:'percentage ofthe cost of such foreign construction material,as specified inparagraph b4i of far clause 52.22511. 2 if evaluation results in', 37355:'a tie betweenan offerorthat requested the substitution of foreign construction material based on unreasonable cost and an offeror that did', 37356:'not request an exception, the contracting officer willaward to the offerorthat did not request an exception based on unreasonable cost.', 37357:'dalternateoffers. 1whenanofferincludesforeignconstructionmaterial,otherthandesignatedcountryconstruction material, that is not listedby the government in this solicitationin paragraph b3 of far clause 52.22511,the offeroralso may', 37358:'submit an alternate offerbased on use of equivalent domestic or designated country construction material. 2 if an alternate offer issubmitted,the', 37359:'offerorshallsubmit a separate standard form 1442 for the alternateoffer, and a separate price comparison table prepared in accordance with paragraphs', 37360:'c and d offar clause 52.22511 for theoffer that is based on the use of any foreign construction material for', 37361:'which the government has not yet determined an exception applies. 3 if the government determines thata particular exception requested in', 37362:'accordance with paragraphc of farclause 52.22511 doesnot apply, the government will evaluate only thoseoffers basedon useof the equivalent domestic or', 37363:'designated country constructionmaterial, and the offeror shall be requiredto furnish suchdomestic or designated country constructionmaterial. an offerbased on use of', 37364:'the foreign construction material for which anexception was requested iwill be rejected asnonresponsiveif this acquisition is conducted by sealedbidding; or', 37365:'ii may be accepted if revised during negotiations. end of provision alternate i may 2014. as prescribed in 25.1102 d2,', 37366:'substitute the following paragraph b for paragraph b of the basic provision: 52.2285 52.22513 federal acquisition regulation b requests for', 37367:'determination of inapplicability. an offeror requesting a determination regarding theinapplicability of thebuy american statute shall submit the requestwith its offer,', 37368:'including the information and applicable supporting data required byparagraphs c and d of far clause 52.22511. alternate ii nov 2023.', 37369:'as prescribed in 25.1102 d3, add the definition of bahraini, mexican, or omani construction material to paragraph a and substitute', 37370:'the following paragraph d for paragraph d of the basic provision: d alternate offers. 1 whenan offer includes foreign construction', 37371:'material, except foreignconstruction material from a designated country other than bahrain, mexico, or oman that is not listed by the', 37372:'government in this solicitation in paragraph b3 offar clause 52.22511, the offeror also may submit an alternate offer basedon useof', 37373:'equivalent domestic or designated country construction material other than bahraini, mexican, or omani construction material. 2 if an alternate offer', 37374:'issubmitted,the offerorshallsubmit a separate standard form 1442 for the alternateoffer, and a separate price comparison table prepared in accordance with', 37375:'paragraphs c and d offar clause 52.22511 for theoffer that is based on the use of any foreign construction material', 37376:'for which the government has not yet determined an exception applies. 3 if the government determines thata particular exception requested', 37377:'in accordance with paragraphc of far clause 52.22511 does notapply, the governmentwill evaluate only those offers based on use ofthe', 37378:'equivalentdomestic or designated country constructionmaterial other than bahraini, mexican, or omani construction material. an offer based on use of the', 37379:'foreign construction material for which an exception was requested iwill be rejected asnonresponsiveif this acquisition is conducted by sealedbidding; or', 37380:'ii may be accepted if revised during negotiations. 52.22513 restrictions on certain foreign purchases. as prescribed in 25.1103a, insert the', 37381:'following clause: restrictions on certain foreign purchases feb 2021 a except as authorizedby the office of foreign assetscontrol ofac in', 37382:'the department of the treasury, the contractor shall not acquire, for use in the performance of this contract, any supplies', 37383:'or services if any proclamation, executive order, or statute administered by ofac,or ifofac’s implementing regulations at 31 cfr chapterv, would', 37384:'prohibit such a transaction by a person subject to the jurisdiction of the united states. b except as authorized byofac,', 37385:'most transactions involving cuba, iran,and sudan are prohibited, as are most imports from burma or north korea, into the united', 37386:'states or its outlying areas. lists of entities and individuals subject to economic sanctions are included in ofac’s list of', 37387:'specially designated nationals and blocked persons at https://home.treasury.gov/ policyissues/financialsanctions/speciallydesignatednationalsandblockedpersonslistsdnhumanreadablelists. more information about these restrictions, as well asupdates,is available inthe ofac’sregulations', 37388:'at 31 cfr chapterv and/ or onofac’s website at https://home.treasury.gov/policyissues/officeofforeignassetscontrolsanctionsprogramsandinformation. c the contractor shall insert this clause, including this paragraph', 37389:'c, in all subcontracts. end of clause 52.22514 inconsistency between englishversion andtranslationof contract. as prescribed at 25.1103b, insert the following', 37390:'clause: inconsistency between english version and translation of contract feb 2000 in the event of inconsistency between any terms of', 37391:'this contract and any translation into another language, the english language meaning shall control. end of clause 52.2286 subpart 52.2', 37392:'text of provisions and clauses 52.22519 52.22515 [reserved] 52.22516 [reserved] 52.22517 evaluation of foreign currency offers. as prescribed in 25.1103', 37393:'c, insert the following provision: evaluation of foreign currency offers feb 2000 if the government receives offers inmorethan one currency,', 37394:'the government will evaluate offers by converting the foreign currency to united states currency using [contracting officer to insert source', 37395:'of rate] in effectas follows: a for acquisitions conducted using sealed bidding procedures, on the date of bid opening. b', 37396:'for acquisitions conducted using negotiation procedures 1 on the date specified for receipt of offers, if award is based oninitial', 37397:'offers; otherwise 2 on the date specified for receipt of proposal revisions. end of provision 52.22518 place of manufacture. as', 37398:'prescribed in 25.1101 f, insert the following solicitation provision: place of manufacture aug 2018 a definitions. as used in this', 37399:'provision— manufactured end product means any end product in product and service codes pscs 10009999, except 1 fpsc 5510, lumber', 37400:'and related basic woodmaterials; 2 product or service group psg 87, agricultural supplies; 3 psg 88, live animals; 4 psg', 37401:'89, subsistence; 5 psc 9410, crude grades of plant materials; 6 psc 9430, miscellaneous crude animal products, inedible; 7 psc', 37402:'9440, miscellaneous crude agricultural and forestry products; 8 psc 9610, ores; 9 psc 9620, minerals, natural and synthetic; and 10', 37403:'psc 9630, additive metal materials. place of manufacture means the place where an end product is assembled out of components,', 37404:'or otherwise made or processed from raw materials into the finished product that is to be provided to the government.', 37405:'if a product is disassembled and reassembled, the place of reassembly is not the place of manufacture. b for statisticalpurposesonly,', 37406:'theofferor shall indicate whether the place of manufacture of the end products it expects to provide in response to this', 37407:'solicitation is predominantly 1 □ inthe united states check this box if the total anticipated price of offered end products', 37408:'manufactured in the unitedstates exceeds the totalanticipated priceof offeredendproducts manufactured outside theunited states; or 2 □ outside the united states.', 37409:'end of provision 52.22519 contractor personnel in a designated operational area or supporting a diplomatic or consular mission outside the', 37410:'united states. as prescribed in 25.3014, insert the following clause: contractor personnel in a designated operational area or supporting a', 37411:'diplomatic or consular mission outside the united states may 2020 52.2287 52.22519 federal acquisition regulation a definitions. as used in', 37412:'this clause chief of missionmeans the principal officer in charge of a diplomaticmissionof the united states orof aunited states officeabroad', 37413:'which isdesignated bythe secretary of stateas diplomaticin nature, including any individualassigned under section 502c of the foreignservice act of 1980', 37414:'public law 96465to betemporarily in charge of such a mission or office. combatant commandermeans the commander of a unified or', 37415:'specified combatant command established in accordance with 10 u.s.c. 161. designated operational area means a geographic area designated by the', 37416:'combatant commander or subordinate joint force commander for the conduct or support of specified military operations. supporting a diplomatic or', 37417:'consular mission means performing outside the united states under a contract administered by federal agency personnel who are subject to', 37418:'the direction of a chief of mission. b general. 1 this clause applies when contractor personnel are required to perform', 37419:'outside the united states i in a designated operational area during a contingency operations; b humanitarian or peacekeeping operations; or', 37420:'c other military operations; or military exercises, when designated by the combatant commander; or ii when supporting a diplomatic or', 37421:'consular mission a that has been designated by the department of state as a danger pay post see https://aoprals.state.gov/; or', 37422:'b that the contractingofficer has indicated is subject to thisclause. 2 contract performance may require work in dangerous or austere', 37423:'conditions. except as otherwise provided in the contract, the contractor accepts the risks associated with required contract performance in such', 37424:'operations. 3 contractor personnel are civilians. i except as provided in paragraph b3ii of this clause, and in accordance with', 37425:'paragraph i3 of this clause, contractor personnel are only authorized to use deadly force in selfdefense. ii contractor personnel performing', 37426:'security functions are also authorized to use deadly force when use of such force reasonably appears necessary to execute their', 37427:'security mission to protect assets/persons, consistent with the terms and conditions contained in the contract or with their job description', 37428:'and terms of employment. 4 service performed by contractor personnel subject to this clause is not active duty or service', 37429:'under 38 u.s.c. 106 note. c support. unless specified elsewhere in the contract, the contractor is responsible for all logistical', 37430:'and security support required for contractor personnel engaged in this contract. d compliance with laws and regulations. the contractor shall', 37431:'comply with, and shall ensure that its personnel in the designated operational area or supporting the diplomatic or consular mission', 37432:'are familiar with and comply with, all applicable 1 unitedstates, hostcountry, and thirdcountry national laws; 2 treaties and international agreements;', 37433:'3 united states regulations, directives, instructions, policies, and procedures; and 4 forceprotection, security,health,or safety orders, directives, and instructions issued by', 37434:'the chief of mission or thecombatant commander; however, only the contractingofficer isauthorized to modify the terms and conditions of the', 37435:'contract. e preliminary personnel requirements. 1 specific requirements for paragraphs e2i through e2vi of this clause will be set forth', 37436:'in the statement of work, or elsewhere in the contract. 2 before contractor personnel depart from the united states or', 37437:'a third country, and before contractor personnel residing in the host country begin contract performance in the designated operational area', 37438:'or supporting the diplomatic or consular mission, the contractor shall ensure the following: i all required security and background checks', 37439:'are complete and acceptable. ii all personnel are medically and physically fit and have received all required vaccinations. iii all', 37440:'personnel have all necessary passports, visas, entry permits, and other documents required for contractor personnel to enter andexit theforeign country,', 37441:'including thoserequired for intransit countries. iv all personnel have received a a country clearance or special area clearance, if required', 37442:'by the chief of mission; and b theater clearance,if required bythe combatant commander. v all personnel have received personal security', 37443:'training. the training must at a minimum52.2 288 subpart 52.2 text of provisions and clauses 52.22519 a cover safety and', 37444:'security issues facing employees overseas; b identify safety and security contingency planning activities; and c identify ways to utilizesafety and', 37445:'securitypersonnel and other resources appropriately. vi all personnel have received isolated personnel training, if specified in the contract. isolated personnel', 37446:'are military orcivilian personnelseparatedfrom their unit or organization in an environment requiring them to survive, evade, or escape while awaiting', 37447:'rescue orrecovery. vii all personnel who are u.s. citizens are registered with the u.s. embassy or consulate with jurisdiction over', 37448:'the area of operations online at http://www.travel.state.gov. 3 the contractor shall notify all personnel who are not a host country', 37449:'national or ordinarily resident in the host country that i if this contract is with the department of defense, or', 37450:'the contract relates to supporting the mission of the department of defense outside the united states, such employees, and dependents', 37451:'residing with such employees, who engage in conduct outside theunited statesthat would constitutean offense punishable by imprisonmentformore thanone year if', 37452:'the conduct had been engaged in within the special maritime and territorial jurisdiction of the united states, may potentially be', 37453:'subject to the criminal jurisdiction of the united states see the military extraterritorial jurisdiction act of 2000 18 u.s.c. 3261', 37454:'et seq. ; iipursuant tothe war crimes act, 18 u.s.c. 2441, federal criminal jurisdiction also extends to conduct that is', 37455:'determined to constitute a war crime when committed by a civilian national of the united states; and iii other lawsmay', 37456:'provide for prosecution ofu.s. nationals who commit offenses on the premisesof united states diplomatic, consular, military orotherunited statesgovernmentmissions outside the', 37457:'united states 18 u.s.c. 79. f processing and departure points. the contractor shall require its personnel who are arriving from', 37458:'outside the area of performance to perform in the designated operational area or supporting the diplomatic or consular mission to', 37459:'1 process through the departure center designated in the contract or complete another process as directed by the contracting officer;', 37460:'2 use a specific point of departure and transportationmode asdirected bythe contracting officer;and 3 process through a receptioncenter as designated', 37461:'by the contracting officer upon arrival at the place of performance. g personnel data. 1 unless personnel data requirements are', 37462:'otherwise specified in the contract, the contractor shall establish and maintain with thedesignated governmentofficial a current list of all contractor', 37463:'personnelin theareas of performance. the contractingofficer will inform the contractor ofthe government official designatedto receive this data and the appropriatesystem', 37464:'to use for this effort. 2 the contractor shall ensure that all employees on this list have a current record', 37465:'ofemergency data, for notification of nextof kin, on file withboth the contractor and the designated government official. h contractor personnel.', 37466:'the contracting officer may direct the contractor, at its own expense,to removeand replace any contractor personnel who fail to comply', 37467:'with or violate applicable requirements of this contract. such action may be taken at thegovernment’s discretion withoutprejudice toits rightsunder any', 37468:'other provisionof this contract,including termination for default or cause. i weapons. 1ifthecontractingofficer,subjecttotheapprovalofthecombatantcommanderorthechiefofmission, authorizes the carrying of weapons ithe contractingofficer may', 37469:'authorize an approved contractor toissue contractorownedweapons and ammunition to specified employees; or ii the [contracting officer to specify individual, e.g.,', 37470:'contracting officer representative, regional security officer, etc,] may issue governmentfurnished weapons and ammunition to the contractor for issuance to specified', 37471:'contractor employees. 2 the contractor shall provide to thecontracting officer a specific list of personnel for whom authorization to carry', 37472:'a weapon is requested. 3 the contractor shall ensure that its personnel who are authorized to carry weapons i are', 37473:'adequately trained to carry and use them a safely; b with full understanding of, and adherence to, the rules of', 37474:'theuse of forceissuedby the combatant commander or the chief of mission; and c in compliance with applicable agency policies, agreements,', 37475:'rules, regulations, and other applicable law; ii are not barred from possession of a firearm by 18 u.s.c. 922; and', 37476:'52.2289 52.22519 federal acquisition regulation iii adhere to all guidance and orders issued by the combatant commander or the chief', 37477:'of mission regarding possession, use, safety, and accountability of weapons and ammunition. 4 upon revocation by the contracting officer of', 37478:'the contractor’s authorization to possess weapons, thecontractor shall ensure that all governmentfurnished weapons and unexpended ammunition are returned as directed', 37479:'by the contracting officer. 5 whether or not weapons are governmentfurnished, all liability for the use of any weapon by', 37480:'contractor personnel rests solely with the contractor and the contractor employee using such weapon. j vehicle or equipment licenses. contractor', 37481:'personnel shall possess the required licenses to operate all vehicles or equipment necessary to perform the contract in the area', 37482:'of performance. k military clothing and protective equipment. 1 contractor personnel are prohibited from wearing military clothing unless specifically authorizedby', 37483:'the combatant commander. if authorizedto wear military clothing, contractor personnel must wear distinctive patches, armbands,nametags,or headgear,in order to be distinguishable', 37484:'from military personnel, consistent with force protection measures. 2 contractor personnelmay wear specific items required for safety and security, such', 37485:'as ballistic, nuclear,biological, or chemical protective equipment. l evacuation. 1 if the chief of mission or combatant commander orders a', 37486:'mandatory evacuation of some or all personnel, the government will provide to united states and third country national contractor personnel', 37487:'the level of assistance provided to private united states citizens. 2 in the event of a nonmandatoryevacuation order, thecontractor shall', 37488:'maintain personnel on location sufficient to meetcontractual obligations unless instructed toevacuate bythe contracting officer. m personnel recovery. 1 in the', 37489:'case of isolated, missing, detained, captured or abducted contractor personnel, the government will assist in personnel recovery actions. 2 personnel', 37490:'recovery mayoccur through militaryaction,action by nongovernmental organizations, other governmentapproved action, diplomatic initiatives, or through any combination of these options. 3', 37491:'the department of defense has primary responsibility for recovering dod contract service employees and, when requested, will provide personnel recovery', 37492:'support to other agencies in accordance with dod directive 2310.2, personnel recovery. n notification and return of personal effects. 1', 37493:'the contractor shall be responsible for notification of the employee designated next of kin, and notification as soon as possible', 37494:'to the u.s. consul responsible for the area in which the event occurred, if the employee i dies; ii requires', 37495:'evacuation due to an injury; or iii is isolated, missing, detained, captured, or abducted. 2 the contractor shall also beresponsibleforthe', 37496:'return of all personal effects of deceased ormissingcontractor personnel, if appropriate, to next of kin. o mortuary affairs. mortuary affairsforcontractor', 37497:'personnel who die in the area ofperformance will be handled as follows: 1 if this contract was awarded by dod,', 37498:'the remains of contractor personnel will be handled in accordance with dod directive1300.22, mortuary affairspolicy. 2 i if this contract', 37499:'was awarded by an agency other than dod, the contractor is responsible for the return of the remains of contractor', 37500:'personnel from the point of identification of the remains to the location specified by the employee or next of kin,', 37501:'as applicable, except as provided in paragraph o2ii of this clause. ii in accordance with 10 u.s.c. 1486, the department', 37502:'of defense may provide, on a reimbursable basis, mortuary support for the disposition of remains and personal effects ofallu.s. citizens', 37503:'upon the request of the department of state. p changes. in addition to the changes otherwise authorized by the changes', 37504:'clause of this contract, the contracting officer may, at any time, by writtenorder identified as a change order,makechangesin placeof performance', 37505:'or governmentfurnished facilities, equipment, material, services, or site. any change order issued in accordance with this paragraph shall be subject', 37506:'to the provisions of the changes clause of this contract. q subcontracts. the contractor shall incorporate the substance of this', 37507:'clause, including this paragraph q, in all subcontracts that require subcontractor personnel to perform outside the united states 1 in', 37508:'a designated operational area during i contingency operations; ii humanitarian or peacekeeping operations; or 52.2290 subpart 52.2 text of provisions', 37509:'and clauses 52.22521 iii other military operations; or military exercises, when designated by the combatant commander; or 2 when supporting', 37510:'a diplomatic or consular mission i that has been designated by the department of state as a danger pay post', 37511:'see https://aoprals.state.gov/; or iithat the contracting officer has indicatedis subjectto this clause. end of clause 52.22520 prohibitionon conducting restricted business', 37512:'operations in sudancertification. as prescribed at 25.1103d, insert the following provision: prohibition on conducting restricted business operations in sudancertification aug', 37513:'2009 a definitions. as used in this provision business operations means engaging in commerce in any form, including by acquiring,', 37514:'developing, maintaining, owning, selling, possessing, leasing, or operatingequipment, facilities, personnel, products,services, personal property, real property, or any other apparatus of', 37515:'business or commerce. marginalized populations of sudan means 1 adversely affected groups in regions authorized to receive assistance undersection 8c', 37516:'of the darfurpeace and accountability act pub. l. 109344 50 u.s.c. 1701 note; and 2 marginalized areas innorthern sudan described', 37517:'insection 49 of suchact. restricted business operations means business operations in sudan that include power production activities, mineral extraction activities,', 37518:'oilrelated activities, or the production of military equipment, as those terms are defined in the sudan accountabilityand divestment act of2007', 37519:'pub. l. 110174. restricted business operationsdo not include business operations that the person as that term is defined in section', 37520:'2 of the sudan accountability and divestment act of 2007 conducting the business can demonstrate 1 are conducted under contract', 37521:'directly and exclusively with the regional government of southern sudan; 2 are conducted pursuant to specificauthorizationfrom the office of foreign', 37522:'assets control in thedepartment of thetreasury, or areexpressly exempted under federal law from therequirementto beconductedunder suchauthorization; 3 consist of providing', 37523:'goods or services to marginalized populationsof sudan; 4 consist of providing goods or services to an internationally recognized peacekeeping force', 37524:'or humanitarian organization; 5 consist of providing goods or services that are used only to promote health or education; or', 37525:'6 have been voluntarily suspended. b certification. by submission of its offer, theofferor certifies that the offerordoes not conduct any', 37526:'restricted business operations in sudan. end of provision 52.22521 requireduse of american iron, steel,and manufacturedgoodsbuy american statuteconstruction materials. as prescribed', 37527:'in 25.1102e, insert the following clause: required use of american iron, steel, and manufactured goodsbuy american statuteconstruction materials jan 2021', 37528:'a definitions. as used in this clause component means an article, material, or supply incorporated directly into a construction material.', 37529:'construction material means an article, material, or supply brought to the construction site by the contractor or a subcontractor for', 37530:'incorporation into the building or work. the term also includes an item brought to the site preassembled from articles, materials,', 37531:'orsupplies. however, emergency life safety systems, such as emergency lighting,fire alarm, and audio evacuation systems, that are discrete systems incorporated', 37532:'into a public building or work and that are produced as complete systems, are evaluated as a single and distinct', 37533:'construction material regardless of when or how the individual parts or components of those systems are delivered to the construction', 37534:'site. 52.2291 52.22521 federal acquisition regulation domestic construction material means the following 1 an unmanufactured construction material mined or produced', 37535:'in the united states. the buy american statute applies. 2 a manufactured construction material that is manufactured in the united', 37536:'states and, if the construction material consists wholly or predominantly of iron or steel, the iron or steel was produced', 37537:'in the united states. section 1605 of the recovery act applies. foreign construction material means a construction material other than', 37538:'a domestic construction material. manufactured construction material means any construction material that is not unmanufactured construction material. steel means an', 37539:'alloy that includes at least 50 percent iron, between 0.02 and 2 percent carbon, and may include other elements. united', 37540:'states means the 50 states, the district of columbia, and outlying areas. unmanufactured construction material means raw material brought to', 37541:'the construction site for incorporation into the building or work that has not been 1 processed into a specific form', 37542:'and shape; or 2 combined with otherraw materialto createa materialthat has different properties than the properties of the individual raw', 37543:'materials. b domestic preference. 1 this clause implements isection 1605of the american recovery and reinvestment act of 2009 recovery act', 37544:'pub. l. 1115, by requiring, unless an exception applies, that all manufactured construction material in the project is manufactured in', 37545:'the united states and, if the construction material consists wholly or predominantly of iron or steel, the iron or steel', 37546:'was produced in the united states produced in the united states means that all manufacturing processes of the iron or', 37547:'steel must takeplace in the united states, except metallurgical processes involving refinement ofsteel additives; and ii 41 u.s.c chapter 83,', 37548:'buy american, by providing a preference for unmanufactured construction material mined or produced in the unitedstates over unmanufactured construction materialminedor', 37549:'producedin a foreign country. 2 the contractor shall use only domestic construction material in performing this contract, except as provided', 37550:'in paragraph b3 and b4 of this clause. 3 this requirement does not apply to the construction material or components', 37551:'listed by the government as follows: [contracting officer to list applicable excepted materials or indicate none] 4 the contracting officer', 37552:'may add other foreign construction material to the list in paragraph b3 of thisclause if the government determines that i', 37553:'the cost of domestic construction material would be unreasonable; a the cost of domestic manufactured construction material, when compared to', 37554:'the cost of comparable foreign manufactured construction material, is unreasonable when the cumulative cost of such material will increase the', 37555:'cost of the contract by more than 25 percent; b the cost of domestic unmanufactured construction material is unreasonable when', 37556:'the cost of such material exceeds the cost of comparable foreign unmanufactured construction material by more than 20 percent; iithe', 37557:'construction materialis not mined, produced,or manufactured in the united states in sufficientand reasonably available quantities and of a satisfactory quality;', 37558:'iii the application of the restriction of section 1605 of the recovery act to a particular manufactured construction material would', 37559:'be inconsistent with the public interest or the application of the buy american statute to a particular unmanufactured construction material', 37560:'would be impracticable or inconsistent with the public interest. c request for determination of inapplicability of section 1605 of the', 37561:'recovery act or the buy american statute. 1 i any contractor request to use foreign construction material in accordance with', 37562:'paragraph b4 of this clause shall include adequate information for government evaluation of the request, including a a description of', 37563:'the foreign and domestic construction materials; b unit of measure; c quantity; d cost; e time of deliveryor availability; f', 37564:'location of the construction project; g name and address of the proposed supplier; and 52.2292 subpart 52.2 text of provisions', 37565:'and clauses 52.22522 h a detailed justification of the reason for use of foreign construction materials cited in accordance with', 37566:'paragraph b4 of this clause. ii a request based on unreasonable cost shall include a reasonable survey of the market', 37567:'and a completed cost comparison table in the format in paragraph d of this clause. iii the cost of constructionmaterial', 37568:'shall include alldelivery coststo theconstruction site and anyapplicable duty. iv any contractor request for a determination submitted after contract award', 37569:'shall explain why the contractor could not reasonably foresee the need for such determination and could not have requested the', 37570:'determination before contract award. ifthe contractor does notsubmit a satisfactory explanation, the contracting officer need notmake a determination. 2 if', 37571:'the government determines after contract award that an exception to section 1605 of the recovery act or thebuy american statute', 37572:'applies and the contracting officer and thecontractor negotiate adequate consideration, the contracting officerwill modify the contractto allow use of theforeign', 37573:'construction material. however, when the basis for the exception is the unreasonable cost of a domestic construction material, adequate consideration', 37574:'is not less than the differential established in paragraph b4i of this clause. 3 unless the government determines that an', 37575:'exception to section 1605 of the recovery act or the buy american statute applies, use of foreign construction material is', 37576:'noncompliant with section 1605 of the american recovery and reinvestment act or the buy american statute. d data. to permit', 37577:'evaluationof requests under paragraph c of this clause based onunreasonable cost, the contractor shall include the following information and any', 37578:'applicable supporting data based on the survey of suppliers: foreignand domestic construction materials cost comparison construction material description unit of', 37579:'measure quantity cost dollars item 1: foreign construction material domestic construction material item 2: foreign construction material domestic construction material', 37580:'[list name, address, telephone number, and contact for suppliers surveyed. attach copy of response; if oral, attach summary.] [include other', 37581:'applicable supporting information.] [ include all delivery costs to the construction site.] end of clause 52.22522 noticeof required use of', 37582:'american iron, steel, and manufactured goodsbuy american statute construction materials. as prescribed in 25.1102e, insert the following provision: notice of', 37583:'required use of american iron, steel, and manufactured goodsbuy american statuteconstruction materials jan 2021 a definitions. construction material, domestic construction', 37584:'material, foreign construction material, manufacturedconstructionmaterial, steel, and unmanufactured construction material, as used in this provision, are defined in the clause', 37585:'of this solicitation entitled required use of iron, steel, and manufactured goodsbuy american statuteconstruction materials federal acquisitionregulation far clause 52.22521.', 37586:'52.2293 52.22523 federal acquisition regulation b requests for determinations of inapplicability. anofferor requesting adeterminationregardingthe inapplicabilityof section 1605 of the american', 37587:'recovery and reinvestment act of2009 pub. l. 1115recovery act or thebuy american statute should submitthe request to the contracting officer', 37588:'intime to allowa determination before submissionof offers. the offeror shall include theinformation andapplicable supporting data required by paragraphs c and', 37589:'d of theclause at far 52.22521 in the request. if an offeror hasnot requesteda determination regarding the inapplicability ofsection 1605', 37590:'of the recovery act or the buy american statute before submitting its offer, or has not received a response toa', 37591:'previous request, theofferor shall includethe information and supporting datain the offer. cevaluationofoffers. 1 if the government determines that an exception', 37592:'based on unreasonable cost of domestic constructionmaterial applies in accordance with far 25.604, the government will evaluate an offer requestingexception', 37593:'to the requirementsof section 1605 of the recoveryactor the buy american statute by addingto the offered priceof the contract i25', 37594:'percent of the offered price of the contract,if foreignmanufactured construction material is incorporated in the offer based on an exception', 37595:'for unreasonable cost of comparable manufactureddomestic construction material; and ii20 percentof the cost of foreign unmanufacturedconstruction material included in the', 37596:'offer basedon an exception for the unreasonable cost of comparable domestic unmanufactured construction material. 2 if the solicitationspecifiesaward on the', 37597:'basis of factors in additionto cost or price, the contracting officer will apply the evaluation factors as specified in paragraph', 37598:'c1 of this provision and use the evaluated price in determining the offer that represents the bestvalue to the government.', 37599:'3 unlessparagraph c2 of this provisionapplies, if two or moreoffers areequal in price, the contractingofficer will givepreferenceto anoffer that does', 37600:'not include foreign constructionmaterial exceptedat the request of the offeror on the basis of unreasonable cost of comparable domestic construction', 37601:'material. dalternateoffers. 1whenanofferincludesforeignconstructionmaterialnotlistedbythegovernmentinthis solicitation in paragraph b3 of the clause atfar 52.22521, theofferor alsomay submit an alternate offer based onuse', 37602:'of equivalent domestic construction material. 2 if an alternate offer issubmitted,the offeror shall submita separate standardform 1442 for the alternate', 37603:'offer and a separate cost comparisontable prepared in accordance with paragraphs c and d of the clause atfar 52.22521 for', 37604:'theoffer that is based on the useof any foreign construction material for which the government has not yetdetermined an exception', 37605:'applies. 3 if the government determines that a particular exception requested in accordance with paragraph c of the clause at', 37606:'far 52.22521 does not apply, the government willevaluateonlythose offers based on use of the equivalent domestic constructionmaterial, and the offeror', 37607:'shall be required tofurnish such domestic construction material. anoffer based on use of the foreign construction material for which an', 37608:'exception was requested iwill be rejected asnonresponsiveif this acquisition is conducted by sealedbidding; or ii may be accepted if revised', 37609:'during negotiations. end of provision alternate i may 2014. as prescribed in 25.1102 e, substitute the following paragraph b for', 37610:'paragraph b of the basic provision: brequests for determinations of inapplicability. an offeror requesting a determination regarding the inapplicability of', 37611:'section 1605 of the american recovery and reinvestment act of2009 pub. l. 1115recovery act or thebuy american statute shall submitthe', 37612:'request with itsoffer, includingthe information and applicable supporting data required by paragraphs c and d of the clause at far', 37613:'52.22521. 52.22523 requireduse of american iron, steel,and manufacturedgoodsbuy american statuteconstruction materials under trade agreements. as prescribed in 25.1102e, insert the', 37614:'following clause: required use of american iron, steel, and manufactured goodsbuy american statuteconstruction materials under trade agreements nov 2023 a', 37615:'definitions. as used in this clause— component means an article, material, or supply incorporated directly into a construction material. 52.2294', 37616:'subpart 52.2 text of provisions and clauses 52.22523 construction material means an article, material, or supply brought to the construction', 37617:'site by the contractor or subcontractor for incorporation into the building or work. the term also includes an item brought', 37618:'to the site preassembled from articles, materials, orsupplies. however, emergency lifes afety systems, such as emergency lighting,fire alarm, and audio', 37619:'evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems,', 37620:'are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of', 37621:'those systems are delivered to the construction site. designated country means any of the following countries: 1 a world trade', 37622:'organization government procurement agreement wtogpa countryarmenia, aruba, australia, austria, belgium, bulgaria, canada, croatia, cyprus, czech republic, denmark, estonia, finland, france,', 37623:'germany, greece,hongkong, hungary, iceland, ireland, israel, italy,japan, korea republic of, latvia, liechtenstein, lithuania, luxembourg, malta, moldova, montenegro, netherlands, new zealand,', 37624:'north macedonia, norway, poland, portugal, romania, singapore, slovakrepublic, slovenia, spain, sweden, switzerland, taiwan, ukraine, or united kingdom; 2 a free', 37625:'trade agreementftacountry australia, bahrain, chile, colombia, costa rica, dominicanrepublic, el salvador, guatemala,honduras, korea republic of, mexico, morocco,nicaragua, oman, panama,peru, or', 37626:'singapore; 3 a least developed country afghanistan, angola, bangladesh, benin, bhutan, burkina faso, burundi, cambodia, central african republic, chad, comoros,', 37627:'democratic republic of congo, djibouti, equatorial guinea, eritrea, ethiopia, gambia, guinea, guineabissau, haiti, kiribati, laos, lesotho, liberia, madagascar, malawi, mali,', 37628:'mauritania, mozambique, nepal,niger, rwanda, samoa, sao tome and principe, senegal,sierra leone, solomon islands, somalia, south sudan, tanzania, timorleste, togo,tuvalu, uganda,', 37629:'vanuatu, yemen, or zambia; or 4 a caribbean basin country antiguaandbarbuda, aruba, bahamas, barbados, belize, bonaire, british virgin islands, curacao,', 37630:'dominica,grenada, guyana, haiti, jamaica,montserrat,saba, st. kitts and nevis, st. lucia, st. vincent and the grenadines,sinteustatius, sint maarten, ortrinidad and tobago.', 37631:'designated country construction material means aconstruction material that is a wto gpa country construction material, an fta country construction material,', 37632:'a least developed country construction material, or a caribbean basin country construction material. domestic construction material means the following: 1', 37633:'an unmanufactured construction material mined or produced in the united states. the buy american statute applies. 2 a manufactured construction', 37634:'material that is manufactured in the united states and, if the construction material consists wholly or predominantly of iron or', 37635:'steel, the iron or steel was produced in the united states. section 1605 of the recovery act applies. foreign construction', 37636:'material means a construction material other than a domestic construction material. free trade agreement fta country construction material means a', 37637:'construction material that 1 is wholly the growth, product,or manufactureof an fta country; or 2 in the case of a', 37638:'construction materialthat consists in wholeor in part of materials from another country, hasbeen substantially transformed in an fta countryinto a', 37639:'new and different construction material distinct fromthe materials from which it was transformed. least developed country construction material means a', 37640:'construction material that 1 is wholly the growth, product, or manufacture of a least developed country; or 2 in the', 37641:'case of a construction materialthat consists in wholeor in part of materials from another country, hasbeen substantially transformed in a', 37642:'least developed country into a new and different construction material distinct from the materials from which it was transformed. manufactured', 37643:'construction material means any construction material that is not unmanufactured construction material. nondesignated country means a country other than the', 37644:'united states or a designatedcountry. recovery act designated country means any of the following countries: 1 a world trade organization', 37645:'government procurement agreement wtogpa countryarmenia, aruba, australia, austria, belgium, bulgaria, canada, croatia, cyprus, czech republic, denmark, estonia, finland, france, germany,', 37646:'greece,hongkong, hungary, iceland, ireland, israel, italy,japan, korea republic of, latvia, liechtenstein, lithuania, luxembourg, malta, moldova, montenegro, netherlands, new zealand, norway,', 37647:'poland, portugal, romania, singapore, slovakrepublic, slovenia, spain, sweden, switzerland, taiwan, ukraine, or united kingdom; 2 a free trade agreementcountry fta', 37648:'australia, bahrain, chile, colombia, costa rica, dominicanrepublic, el salvador, guatemala,honduras, korea republic of, mexico, morocco,nicaragua, oman, panama,peru, or singapore;or 52.2295', 37649:'52.22523 federal acquisition regulation 3 a least developed country afghanistan, angola, bangladesh, benin, bhutan, burkina faso, burundi, cambodia, central african', 37650:'republic, chad, comoros, democratic republic of congo, djibouti, equatorial guinea, eritrea, ethiopia, gambia, guinea, guineabissau, haiti, kiribati, laos, lesotho, liberia,', 37651:'madagascar, malawi, mali, mauritania, mozambique, nepal,niger, rwanda, samoa, sao tome and principe, senegal,sierra leone, solomon islands, somalia, south sudan, tanzania,', 37652:'timorleste, togo,tuvalu, uganda, vanuatu, yemen, or zambia. recovery act designated country construction material means a constructionmaterial that is awto gpa', 37653:'country constructionmaterial, an ftacountry construction material, or a least developed country construction material. steel means an alloy that includes at', 37654:'least 50 percent iron, between 0.02 and 2 percent carbon, and may include other elements. united states means the 50', 37655:'states, the district of columbia, and outlying areas. unmanufactured construction material means raw material brought to the construction site for', 37656:'incorporation into the building or work that has not been 1 processed into a specific form and shape; or 2', 37657:'combined with otherraw materialto createa materialthat has different properties than the properties of the individual raw materials. wto gpa country', 37658:'construction material means a construction material that 1 is wholly the growth, product,or manufactureof awtogpa country; or 2 in the', 37659:'case of a construction materialthat consists in wholeor in part of materials from another country, hasbeen substantially transformed in a', 37660:'wto gpa country intoa new and different construction material distinctfrom the materials from which it was transformed. b construction materials.', 37661:'1 the restrictions of section 1605 of the american recovery and reinvestment act of 2009 pub. l. 1115recovery act do', 37662:'not apply to recoveryactdesignated countrymanufactured constructionmaterial. the restrictions of the buy american statute do not apply to designated country unmanufactured', 37663:'construction material. consistent with u.s. obligations under international agreements, this clause implements i section 1605 of the recovery act by', 37664:'requiring, unless an exception applies, that all manufactured construction material in the project is manufactured in the united states and,', 37665:'if the construction material consists wholly or predominantly of iron or steel, the iron or steel was produced in the', 37666:'united states produced in the united states means that all manufacturing processes ofthe iron or steelmust take place in the', 37667:'unitedstates, except metallurgical processes involving refinement of steel additives; and. ii the buy american statute by providing a preference for', 37668:'unmanufactured construction material mined or produced in the united states over unmanufacturedconstruction material mined orproduced in anondesignated country. 2 the', 37669:'contractor shall use only domestic construction material, recovery act designated country manufactured construction material, or designated country unmanufactured construction material', 37670:'in performing this contract, except as provided in paragraphs b3 and b4 of this clause. 3 the requirement in paragraph', 37671:'b2 of this clause does not apply to the construction materials or components listed by the government as follows: [contracting', 37672:'officer to list applicable excepted materials or indicate none.] 4 the contracting officer may add other construction material to the', 37673:'list in paragraph b3 of this clause ifthe government determines that i the cost of domestic construction material would be', 37674:'unreasonable; a the cost of domestic manufactured construction material is unreasonable when the cumulative cost of such material, when compared', 37675:'to the cost of comparable foreign manufactured construction material, other than recovery act designated country construction material, will increase the', 37676:'overall cost of the contract by more than 25 percent; b the cost of domestic unmanufactured construction material is unreasonable', 37677:'when the cost of such material exceeds the cost of comparable foreign unmanufactured construction material, other than designated country construction', 37678:'material, by more than 20 percent; iithe construction materialis not mined, produced,or manufactured in the united states in sufficientand reasonably', 37679:'available commercial quantities of a satisfactory quality; or iii the application of the restriction of section 1605 of the recovery', 37680:'act to a particular manufactured construction material would be inconsistent with the public interest or the application of the buy', 37681:'american statute to a particular unmanufactured construction material would be impracticable or inconsistent with the public interest. c request for', 37682:'determination of inapplicability of section 1605 of the recovery act or the buy american statute. 52.2296 subpart 52.2 text of', 37683:'provisions and clauses 52.22523 1 i any contractor request to use foreign construction material in accordance with paragraph b4 of', 37684:'this clause shall include adequate information for government evaluation of the request, including a a description of the foreign and', 37685:'domestic construction materials; b unit of measure; c quantity; d cost; e time of deliveryor availability; f location of the', 37686:'construction project; g name and address of the proposed supplier; and h a detailed justification of the reason for use', 37687:'of foreign construction materials cited in accordance with paragraph b4 of this clause. ii a request based on unreasonable cost', 37688:'shall include a reasonable survey of the market and a completed cost comparison table in the format in paragraph d', 37689:'of this clause. iii the cost of constructionmaterial shall include alldelivery coststo theconstruction site and anyapplicable duty. iv any contractor', 37690:'request for a determination submitted after contract award shall explain why the contractor could not reasonably foresee the need for', 37691:'such determination and could not have requested the determination before contract award. ifthe contractor does notsubmit a satisfactory explanation, the', 37692:'contracting officer need notmake a determination. 2 if the government determines after contract award that an exception to section 1605', 37693:'of the recovery act or thebuy american statute applies and the contracting officer and thecontractor negotiate adequate consideration, the contracting', 37694:'officerwill modify the contractto allow use of theforeign construction material. however, when the basis for the exception is the unreasonable', 37695:'cost of a domestic construction material, adequate consideration is not less than the differential established in paragraph b4i of this', 37696:'clause. 3 unless the government determines that an exception to section 1605 of the recovery act or the buy american', 37697:'statute applies, use of foreign construction material other than manufactured construction material from a recovery act designated country or unmanufactured', 37698:'construction material from a designated country is noncompliant with the applicable statute. d data. to permit evaluationof requests under paragraph', 37699:'c of this clause based onunreasonable cost, the contractor shall include the following information and any applicable supporting data based', 37700:'on the survey of suppliers: foreign nondesignated country and domestic construction materials cost comparison construction material description unit of measure', 37701:'quantity cost dollars item 1: foreign construction material domestic construction material item 2: foreign construction material domestic construction material [list', 37702:'name, address, telephone number, and contact for suppliers surveyed. attach copy of response; if oral, attach summary.] [include other applicable', 37703:'supporting information.] [ include all delivery costs to the construction site.] end of clause alternate i nov 2023 . as', 37704:'prescribed in 25.1102 e, add the following definition of bahraini, mexican, or omani construction material to paragraph a of the', 37705:'basic clause, and substitute the following paragraphs b1 and b2 for paragraphs b1 and b2 of the basic clause: 52.2297', 37706:'52.22524 federal acquisition regulation bahraini, mexican, or omani construction material means a construction material that 11 is wholly the growth,', 37707:'product, or manufacture of bahrain, mexico, or oman; or 2 2 in the case of a construction materialthat consists in', 37708:'wholeor in part of materials from another country, has been substantially transformed in bahrain,mexico,or oman intoa new and different construction', 37709:'materialdistinct from the materials from which it was transformed. b construction materials. 1 the restrictions of section 1605 of the', 37710:'american recovery and reinvestment act of 2009 pub. l. 1115recovery act do not apply to recoveryactdesignated countrymanufactured constructionmaterial. the restrictions', 37711:'of the buy american statute do not apply to designated country unmanufactured construction material. consistent with u.s. obligations under international', 37712:'agreements, this clause implements i section 1605 of the recovery act, by requiring, unless an exception applies, that all manufactured', 37713:'construction material in the project is manufactured in the united states and, if the construction material consists wholly or predominantly', 37714:'of iron or steel, the iron or steel was produced in the united states produced in the united states means', 37715:'that all manufacturing processes ofthe iron or steelmust take place in the unitedstates, except metallurgical processes involving refinement of steel', 37716:'additives; and ii the buy american statute by providing a preference for unmanufactured construction material mined or produced in the', 37717:'unitedstates over unmanufactured construction materialminedor producedin a nondesignated country. 2 the contractor shall use only domestic construction material, recovery act', 37718:'designated country manufactured construction material, or designated country unmanufactured construction material, other than bahraini, mexican, or omani construction material, in', 37719:'performing this contract, except as provided in paragraphs b3 and b4 of this clause. 52.22524 noticeof required use of american', 37720:'iron, steel, and manufactured goodsbuy american statute construction materials under trade agreements. as prescribed in 25.1102e, insert the following provision:', 37721:'notice of required use of american iron, steel, and manufactured goodsbuy american statuteconstruction materials under trade agreements jan 2021 a', 37722:'definitions. construction material, domestic construction material, foreign construction material, manufactured construction material, recovery act designated country construction material, steel, and', 37723:'unmanufactured construction material, as used in this provision, are defined in the clause of this solicitation entitled required use of', 37724:'iron, steel, and manufactured goodsbuy american statuteconstruction materials under trade agreements federal acquisition regulation far clause 52.22523. b requests for', 37725:'determination of inapplicability. an offeror requesting adetermination regardingthe inapplicabilityof section 1605 of the american recovery and reinvestment act of2009 pub.', 37726:'l. 1115recovery act or thebuy american statute should submitthe request to the contracting officer intime to allowa determination before submissionof', 37727:'offers. the offeror shall include the information and applicablesupporting data required byparagraphs c and d of far clause 52.22523 in', 37728:'the request. if an offeror has not requested a determination regarding the inapplicability of section 1605 of the recovery act', 37729:'or the buy american statute before submitting its offer, or has not received a response toa previous request, theofferor shall', 37730:'includethe information and supporting datain the offer. c evaluation of offers. 1 if the government determines that an exception based', 37731:'on unreasonable cost of domestic constructionmaterial applies in accordance with far 25.604, the government will evaluate an offer requestingexception to', 37732:'the requirementsof section 1605 of the recoveryactor the buy american statute by addingto the offered priceof the contract i25 percent', 37733:'of the offered price of the contract,if foreignmanufactured construction material is includedin the offer based on an exception for the', 37734:'unreasonable cost of comparablemanufactured domestic construction material; and ii20 percentof the cost of foreign unmanufacturedconstruction material included in the offer', 37735:'basedon an exception for the unreasonable cost of comparable domestic unmanufactured construction material. 2 if the solicitationspecifiesaward on the basis', 37736:'of factors in additionto cost or price, the contracting officer will apply the evaluation factors as specified in paragraph c1', 37737:'of this provision and use the evaluated cost or price in determining the offer that represents the best value to', 37738:'the government. 3 unlessparagraph c2 of this provisionapplies, if two or moreoffers areequal in price, the contractingofficer will givepreferenceto anoffer', 37739:'that does not include foreign constructionmaterial exceptedat the request of the offeror on the basis of unreasonable cost. 52.2298 subpart', 37740:'52.2 text of provisions and clauses 52.22525 d alternateoffers. 1 whenan offer includes foreign construction material, other than recovery act', 37741:'designated country constructionmaterial, that isnot listed by thegovernment in this solicitation inparagraph b3 of far clause 52.22523, theofferor alsomay submit', 37742:'an alternate offer based onuse of equivalent domesticor recoveryactdesignated country construction material. 2 if an alternate offer issubmitted,the offeror shall', 37743:'submita separate standardform 1442 for the alternate offer and a separate cost comparisontable prepared in accordance withparagraphs c and d', 37744:'of far clause 52.22523 for the offer that is based on the use of any foreign construction material for which', 37745:'the government has not yet determined an exception applies. 3 if the government determines thata particular exception requested in accordance', 37746:'with paragraphc of far clause 52.22523 does not apply, thegovernmentwill evaluate only those offers based onuse ofthe equivalentdomestic or recovery', 37747:'act designated country construction material, and the offerorshallbe required to furnishsuch domestic or recovery act designated country construction material. an', 37748:'offer based on use of theforeign construction material for which an exception was requested iwill be rejected asnonresponsiveif this acquisition', 37749:'is conducted by sealedbidding; or ii may be accepted if revised during negotiations. end of provision alternate i may 2014.', 37750:'as prescribed in 25.1102 e, substitute the following paragraph b for paragraph b of the basic provision: b requests for', 37751:'determination of inapplicability. an offeror requesting a determination regarding theinapplicability of section 1605 of the american recovery and reinvestment act', 37752:'of2009 pub. l. 1115recovery act or thebuy american statute shall submitthe request with itsoffer, includingthe information and applicable supporting data', 37753:'required by paragraphs c and d of far clause 52.22523. alternate ii nov 2023 . as prescribed in 25.1102 e,', 37754:'add the definition of bahraini, mexican, or omani construction material to paragraph a and substitute the following paragraph d for', 37755:'paragraph d of the basic provision: d alternate offers. 1 whenan offer includes foreign construction material, except foreignconstruction material from', 37756:'a recovery act designated country other than bahrain, mexico, or oman that is not listed by the government in this', 37757:'solicitation in paragraph b3 of far clause 52.22523, the offeror also may submit an alternate offer basedon useof equivalent domestic', 37758:'or recovery act designated country construction material other than bahraini, mexican, or omani construction material. 2 if an alternate offer', 37759:'issubmitted,the offerorshallsubmit a separate standard form 1442 for the alternateoffer and a separate cost comparisontable prepared in accordance withparagraphs c', 37760:'and d of far clause 52.22523 for the offer that is based on the use of any foreign construction material', 37761:'for which the government has not yet determined an exception applies. 3 if the government determines thata particular exception requested', 37762:'in accordance with paragraphc of far clause 52.22523 does not apply, thegovernmentwill evaluate only those offers based onuse ofthe equivalentdomestic', 37763:'or recovery act designated country construction material other than bahraini, mexican, or omani construction material. an offer based on use', 37764:'of the foreign construction materialforwhich an exception was requested iwill be rejected asnonresponsiveif this acquisition is conducted by sealedbidding; or', 37765:'ii may be accepted if revised during negotiations. 52.22525 prohibitionon contractingwith entities engaging in certain activities or transactions relatingto iran—', 37766:'representationand certifications. as prescribed at 25.1103e, insert the following provision: prohibition on contracting with entities engaging in certain activities or', 37767:'transactions relating to iran—representation and certifications jun 2020 a definitions. as used in this provision person— 1 means– i a', 37768:'natural person; 52.2299 52.22526 federal acquisition regulation iiacorporation, business association, partnership, society, trust, financialinstitution, insurer, underwriter, guarantor,andany otherbusiness organization, any', 37769:'other nongovernmentalentity, organization,or group, and any governmental entity operating as a business enterprise; and iii any successor to any entity', 37770:'described in paragraph 1ii of this definition; and 2 does not include a government or governmental entity that is not', 37771:'operating as a business enterprise. sensitive technology 1 means hardware, software, telecommunications equipment, or any other technology that is to', 37772:'be used specifically ito restrict the freeflow of unbiased information in iran; or iito disrupt, monitor, or otherwise restrict speech', 37773:'of the peopleof iran; and 2 does not include information or informational materials the export of which the president does', 37774:'not have the authorityto regulate or prohibit pursuant to section203b3 of the internationalemergency economic powers act 50 u.s.c. 1702b3. b', 37775:'the offeror shall email questions concerning sensitivetechnology to the department of stateat cisada106@state.gov. c except as provided in paragraph d', 37776:'of this provision or if a waiver has been granted in accordance with federal acquisition regulationfar 25.7034, by submission of', 37777:'its offer, theofferor— 1 represents, tothe best of its knowledge and belief, that the offeror does notexport any sensitive technology', 37778:'to thegovernment of iran orany entities or individuals owned or controlled by, or acting onbehalf or atthe direction of, the', 37779:'government of iran; 2 certifies that theofferor,or any person owned or controlled bythe offeror, doesnot engage in any activities for', 37780:'which sanctions may be imposed under section 5 of the iran sanctions act. these sanctioned activities are in the areas', 37781:'of development of the petroleum resources of iran, production of refined petroleum products in iran, sale and provision of refined', 37782:'petroleum products to iran, and contributing to irans ability to acquire or develop certain weapons or technologies; and 3 certifies', 37783:'that theofferor,and any person ownedor controlled by the offeror, does not knowingly engage in any transaction that exceeds the threshold', 37784:'at far 25.7032a2 withirans revolutionary guard corps or any of its officials, agents, or affiliates, the property and interestsin property', 37785:'of which are blockedpursuant to the international emergency economic powers act 50 u.s.c. 1701 et seq.see ofacsspecially designated nationals and', 37786:'blockedpersonslist at https://www.treasury.gov/resourcecenter/sanctions/sdnlist/pages/default.aspx. d exception for trade agreements. the representation requirement of paragraph c1 and the certification requirements of paragraphs', 37787:'c2 and c3 of this provision do not apply if 1 this solicitation includes a trade agreements notice or certification', 37788:'e.g., 52.2254, 52.2256, 52.22512, 52.22524, or comparable agency provision; and 2 the offeror has certified that all the offeredproducts to', 37789:'be supplied aredesignated country end products or designated country construction material. end of provision 52.22526 contractors performing private security functions', 37790:'outside the united states. as prescribed in 25.3026insert the following clause: contractors performing private security functions outside the united states', 37791:'oct 2016 a definition. as used in this clause area of combat operations means an area of operations designated as', 37792:'such by the secretary of defense when enhanced coordination of contractors performing private security functions working for government agencies is', 37793:'required full cooperation– 1 means disclosure to the governmentof the information sufficient to identify the natureandextent of theincident and the', 37794:'individuals responsible for the conduct. it includes providing timely and complete responses to government auditors and investigators requests for documents', 37795:'and access to employees with information; 2 does not foreclose any contractor rights arising in law, the far, or the', 37796:'terms of the contract. it does notrequire– ithe contractorto waive its attorneyclient privilege or the protections afforded by theattorney work', 37797:'product doctrine; or 52.2300 subpart 52.2 text of provisions and clauses 52.22526 iiany officer,director, owner, oremployee of the contractor, including', 37798:'a sole proprietor, to waivehisor her attorneyclient privilege or fifth amendment rights; and 3 does not restrict the contractor from–', 37799:'i conducting an internal investigation; or ii defending a proceeding or dispute arising under the contract or related to a', 37800:'potential or disclosed violation. other significant military operations means activities, other than combat operations, as part of a contingency operation', 37801:'outside the united states that is carried out by united states armed forces in an uncontrolled or unpredictable highthreat environment', 37802:'where personnel performing security functions may be called upon to use deadly force. private security functions means activities engaged inby', 37803:'acontractor, as follows: 1 guardingof personnel, facilities, designated sites,or property of a federal agency, the contractor or subcontractor, or a', 37804:'third party. 2 any other activity for which personnel are required to carry weapons in the performance of their duties', 37805:'in accordance with the terms of this contract. b applicability. if this contract is performed both in a designated area', 37806:'and in an area that is not designated, the clause only applies to performance in the following designated areas 1', 37807:'combat operations, as designated by the secretary of defense; or 2 other significant military operations, as designated by the secretary', 37808:'of defense, and only upon agreement of the secretary of defense and the secretary of state. c requirements. the contractor', 37809:'is required to 1 ensure that all employees of the contractor who are responsible for performing private security functions under', 37810:'this contract comply with 32 cfr part 159, and with any orders, directives, and instructions to contractors performing private security', 37811:'functions that are identified in the contract for iregistering, processing, accounting for, managing, overseeing, and keeping appropriate records of personnel', 37812:'performing private security functions; ii authorizing and accounting for weapons to be carried by or available to be used by', 37813:'personnel performing private security functions; iii registering and identifying armored vehicles, helicopters, and other military vehicles operated by contractors performing', 37814:'private security functions; and iv reporting incidents in which aaweapon is discharged by personnelperforming private security functions; b personnel performing', 37815:'private security functions are attacked, killed, or injured; c persons are killed or injured or property is destroyed as a', 37816:'result of conduct by contractor personnel; daweapon is discharged against personnel performing private security functions or personnel performing suchfunctions believe', 37817:'a weapon was so discharged; or e active, nonlethal countermeasures other than the discharge of a weaponare employed by personnel', 37818:'performing private security functions in response to a perceived immediate threat; 2 ensure that the contractor and all employees of', 37819:'the contractor who are responsible for performing private security functions under this contract are briefed on and understand their obligation', 37820:'to comply with i qualification, training, screening including, if applicable, thorough background checks, and security requirements established by 32 cfr', 37821:'part 159, private security contractors operating in contingency operations; ii applicable laws and regulations of the united states and the', 37822:'host country and applicable treaties and international agreements regarding performance of private security functions; iii orders, directives, and instructions issued', 37823:'by the applicable commander of a combatant command or relevant chief of mission relating to weapons, equipment, force protection, security,', 37824:'health, safety, or relations and interaction with locals; and iv rules on the use of force issued by the applicable', 37825:'commander of a combatant command or relevant chief of mission for personnel performing private security functions; and 3 provide full', 37826:'cooperation with any governmentauthorized investigation of incidents reported pursuant to paragraph c1iv of this clause and incidents of alleged misconduct', 37827:'by personnel performing private security functions under this contract by providing i access to employees performing private security functions; and', 37828:'ii relevant information in the possession of the contractor regarding the incident concerned. d remedies. in addition to other remedies', 37829:'available to the government52.2 301 52.22526 federal acquisition regulation 1 the contracting officer may direct the contractor, at its own', 37830:'expense,to removeand replace any contractoror subcontractor personnel performing private security functions who fail to comply with or violate applicable requirements', 37831:'of this clause or 32 cfr part 159. such action may be taken at the governments discretion without prejudice to', 37832:'its rights under any other provision of this contract. 2 the contractor’s failure to comply with the requirements of this', 37833:'clause will beincluded inappropriatedatabases of past performance and considered in any responsibility determination or evaluation of past performance; and 3', 37834:'if this is an awardfee contract, the contractors failure to comply with the requirements of this clause shall be considered', 37835:'in the evaluation of the contractors performance during the relevant evaluation period, and the contracting officer may treatsuch failure tocomply', 37836:'as a basis for reducingor denying award fees for suchperiod or for recovering all or part of award fees previously', 37837:'paid for such period. e rule of construction. the duty of the contractor to comply with the requirements of this', 37838:'clause shall not be reduced or diminished by the failure of a higher or lowertier contractor or subcontractor to comply', 37839:'with the clause requirements or by a failure of the contracting activity to provide required oversight. f subcontracts. the contractor', 37840:'shall include the substance of this clause, including this paragraph f, in all subcontracts that will be performed outside the', 37841:'united states in areas of 1 combat operations, as designated by the secretary of defense; or 2 other significant military', 37842:'operations, upon agreement of the secretaries of defense and state that the clause applies in that area. end of clause', 37843:'52.2302 subpart 52.2 text of provisions and clauses 52.2262 52.226[reserved] 52.2261 utilization of indian organizations and indianowned economic enterprises. as', 37844:'prescribed in 26.104, insert the following clause: utilization of indian organizations and indianowned economic enterprises june 2000 a definitions. as', 37845:'used in this clause: indian means any person who is a member of any indian tribe, band, group, pueblo, or', 37846:'community that is recognized by the federal government as eligible for services from the bureau of indian affairs bia inaccordancewith', 37847:'25 u.s.c. 1452c and any native as defined in the alaska native claims settlement act 43 u.s.c. 1601. indian organization', 37848:'means the governing body of any indian tribe or entity established or recognized by the governing body of an indian', 37849:'tribe for the purposes of 25 u.s.c., chapter 17. indianowned economic enterprise means any indianowned as determined by the secretary', 37850:'of the interior commercial, industrial, or businessactivity establishedor organized for the purpose of profit, provided that indian ownership constitutes not', 37851:'less than 51 percent of the enterprise. indian tribe means any indiantribe, band, group, pueblo, or community,including native villages and', 37852:'native groups including corporations organized by kenai, juneau, sitka, and kodiak as definedin the alaska native claims settlement act, that', 37853:'is recognized by the federal government as eligible for services from bia in accordance with 25 u.s.c. 1452c. interested party', 37854:'means aprimecontractor or an actual or prospective offeror whose direct economicinterest would be affected bythe award ofa subcontract or by', 37855:'the failure to awarda subcontract. b the contractor shall use its best efforts togive indian organizations and indianowned economic enterprises25', 37856:'u.s.c. 1544 the maximum practicable opportunity to participate in the subcontracts it awards to the fullest extent consistent with efficient', 37857:'performance of itscontract. 1 the contracting officer and the contractor, acting ingood faith, may relyon the representationof an indian organizationor', 37858:'indianowned economicenterpriseas to its eligibility,unlessan interested party challenges its status or the contracting officerhas independent reason to question thatstatus. in', 37859:'theeventof achallenge to the representation of a subcontractor,the contracting officerwill refer the matterto the u.s. department of the interior bureau', 37860:'of indian affairs bia attn: chief, division of contracting and grants administration 1849 c street,nw, ms2626mib washington,dc 202404000. the biawill', 37861:'determine the eligibility and notify thecontracting officer. no incentive payment willbe made within 50 working days of subcontract award or', 37862:'while a challenge is pending. if a subcontractor is determined to be an ineligible participant, no incentive payment will be', 37863:'made under the indian incentive program. 2 the contractor may request an adjustment under the indian incentive program to the', 37864:'following: i the estimated cost of a costtype contract. iithe targetcostof acostplusincentivefee prime contract. iii the target costand ceiling price', 37865:'of a fixedprice incentive prime contract. iv the price of a firmfixedprice prime contract. 3 the amount of the adjustment', 37866:'to the prime contract is 5percent ofthe estimated cost, target cost, or firmfixedprice includedin the subcontract initially awarded to the', 37867:'indian organization or indianowned economic enterprise. 4 the contractor has the burden of proving the amount claimed and must assert', 37868:'its request for an adjustment prior to completion of contract performance. c thecontracting officer,subject to the terms and conditions of', 37869:'thecontract andthe availability of funds, will authorize anincentive payment of 5percent ofthe amount paid to the subcontractor. the contracting officer', 37870:'will seek funding in accordance with agency procedures. end of clause 52.2262historically black college oruniversity andminority institution representation. as prescribed', 37871:'in 26.304, insert the following provision: historically black college or university and minority institution representation oct 2014 52.2303 52.2263 federal', 37872:'acquisition regulation a definitions. as used in this provision— historically black college or university means an institution determined by the', 37873:'secretary of education to meet the requirements of 34 cfr 608.2. minority institution means an institution of higher education meeting', 37874:'the requirements of section 3653 of the higher education act of1965 20 u.s.c. 1067k, including a hispanicserving institution of higher', 37875:'education, as defined in section502a of the act 20 u.s.c. 1101a. b representation. the offerorrepresents that it— □ is □', 37876:'is not a historically black college or university; □ is □ is not a minority institution. end of provision 52.2263disaster', 37877:'or emergency area representation. as prescribed in 26.206a, insert the following provision: disaster or emergency area representation nov 2007 a', 37878:'setaside area. the area covered in this contract is: [contracting officer to fill in with definite geographic boundaries.] b representations.', 37879:'the offeror represents that it □ does □ does not reside or primarily do business in the designated set aside', 37880:'area. c an offeroris considered to be residingor primarily doing business inthe setaside area if, during the last twelve months', 37881:'1 the offeror had its main operating office in the area; and 2 that office generated at least halfof the', 37882:'offeror’sgross revenues and employed at least halfof the offeror’s permanent employees. d if the offerordoes not meet the criteriain paragraph', 37883:'c of thisprovision, factors to be considered in determining whether anofferor resides or primarily does businessin thesetasidearea include 1 physical', 37884:'locations of theofferor’s permanent offices and date any office in the setaside areas was established; 2 current state licenses; 3', 37885:'record of past work in the setaside areas e.g., how much and for how long; 4 contractual history the offeror', 37886:'has had with subcontractorsand/or suppliers in the setaside area; 5 percentage of the offeror’s gross revenuesattributable to work performedin the', 37887:'setaside area; 6 number of permanent employees theofferor employs in the setaside area; 7 membership in local and state organizations', 37888:'in the setaside area;and 8 otherevidence that establishes theofferor resides or primarily doesbusinessin the setaside area. for example, sole proprietorships', 37889:'may submit utility bills and bank statements. e if the offeror represents it resides or primarily does businessin thesetasidearea, the', 37890:'offeror shall furnish documentation to support its representation if requested by the contracting officer. the solicitationmay require the offeror to', 37891:'submitwith its offer documentationto support the representation. end of provision 52.2264notice of disaster or emergency area setaside. as prescribed in', 37892:'26.206b, insert the following clause: notice of disaster or emergency area setaside nov 2007 a setaside area. offers are solicited', 37893:'only frombusinesses residing or primarily doing businessin [contracting officer to fill in with definite geographic boundaries.] offers received fromother businesses', 37894:'shall not beconsidered. 52.2304 subpart 52.2 text of provisions and clauses 52.2266 b this setaside is in addition to any', 37895:'small business setaside contained in this contract. end of clause 52.2265restrictions onsubcontracting outside disaster or emergencyarea. as prescribed in 26.206c,', 37896:'insert the following clause: restrictions on subcontracting outside disaster or emergency area nov 2007 a definitions. the definitions of the', 37897:'following terms used in this clause are found in the small business administration regulations at 13 cfr 125.6e: cost of', 37898:'the contract, cost of contract performance incurred for personnel, cost of manufacturing, cost of materials, personnel, and subcontracting. b the', 37899:'contractor agrees that in performance of the contract in the case of a contract for 1 services except construction. at', 37900:'least 50 percent of the cost of contract performance incurred for personnel shall be expended for employees of the contractor', 37901:'or employees of other businesses residing or primarily doing business in the area designated in the clause at far 52.2264,', 37902:'noticeof disaster oremergency areasetaside; 2 supplies other than procurement from a nonmanufacturer of such supplies. the contractor or employees of', 37903:'other businesses residing or primarily doing business in the setaside area shall perform work for at least 50 percent of', 37904:'the cost of manufacturing the supplies, not including the cost of materials; 3 general construction. the contractor will perform at', 37905:'least 15 percent of the cost of the contract, not including the cost of materials, with its own employees or', 37906:'employees of other businesses residing or primarily doing business in the set aside area; or 4 construction by special trade', 37907:'contractors. the contractor will perform at least 25 percent of the cost of the contract, not including the cost of', 37908:'materials, with its own employees or employees of other businesses residing or primarily doing business in the setaside area. end', 37909:'of clause 52.2266promoting excess food donation to nonprofit organizations. as prescribed in 26.404, insert the following clause: promoting excess food', 37910:'donation to nonprofit organizations jun 2020 a definitions. as used in this clause apparently wholesome food means food that meets', 37911:'all quality and labeling standards imposed by federal, state, and local laws and regulations even though the food may not', 37912:'be readily marketable due to appearance, age, freshness, grade, size, surplus, or other conditions. excess food means food that 1', 37913:'is not required to meet the needs of the executive agencies; and 2 would otherwise be discarded. foodinsecure means inconsistent', 37914:'access to sufficient, safe,andnutritiousfood. nonprofit organization means any organization that is— 1 described in section 501c of the internal revenue', 37915:'code of 1986; and 2 exempt from tax under section 501a of that code. b in accordance with the federal', 37916:'food donation act of 2008 42 u.s.c. 1792, the contractor is encouraged, to the maximumextent practicable andsafe, to donateexcess, apparentlywholesome', 37917:'food to nonprofit organizationsthat provide assistance to foodinsecure people in the united states. c costs. 1 the contractor, including any', 37918:'subcontractors, shall assume the responsibility for all the costsand the logistical support to collect, transport, maintain the safety of, or', 37919:'distribute the excess, apparently wholesome food to the nonprofit organizations that providesassistance to foodinsecure people. 2 the contractor will not', 37920:'be reimbursed for any costs incurred or associated with the donation of excess foods. any costs incurred for excess food', 37921:'donations are unallowable. 52.2305 52.2267 federal acquisition regulation d liability. the government and the contractor, including any subcontractors, shall be', 37922:'exempt from civil and criminal liability to the extent provided under the bill emerson good samaritan food donation act 42', 37923:'u.s.c. 1791. nothing in this clause shall be construed to supersede state or local health regulations subsection f of 42', 37924:'u.s.c. 1791. e subcontracts. the contractor shall insert this clause in all contracts, task orders, delivery orders, purchase orders, and', 37925:'other similar instruments that exceed the threshold specified in federal acquisition regulation 26.404 on the date of subcontract award with', 37926:'its subcontractorsor suppliers, at any tier, whowill perform, under this contract, theprovision, service, or sale of food in the united', 37927:'states. end of clause 52.2267drugfree workplace. as prescribed in 26.506, insert the following clause: drugfree workplace may 2024 a definitions.', 37928:'as used in this clause controlled substance means a controlled substance in schedules i through v of section 202 of', 37929:'the controlled substances act 21 u.s.c. 812 and as further defined in regulation at 21 cfr 1308.11 1308.15. conviction means', 37930:'a finding of guilt including a plea of nolo contendere or imposition of sentence, or both, by any judicial body', 37931:'charged withthe responsibility to determine violationsof the federal or state criminal drug statutes. criminal drug statute means a federal or', 37932:'nonfederal criminal statute involving the manufacture, distribution, dispensing, possession, or use of any controlled substance. drugfree workplace means the sites', 37933:'for the performance of work done by the contractor in connection with a specific contract where employees of the contractor', 37934:'are prohibited from engaging in the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance. employee means an', 37935:'employee of a contractor directly engaged in the performance of work under a government contract. directly engaged is defined to', 37936:'include all direct cost employees and any other contractor employee who has other than a minimal impact or involvement in', 37937:'contract performance. individual means an offeror/contractor that hasno more than one employee including the offeror/contractor. b the contractor, if other', 37938:'than an individual, shallwithin30 days afteraward unlessa longer period is agreed to in writing for contracts of 30 days or', 37939:'more performance duration, or as soon as possible for contracts of less than 30 days performance duration 1 publish a', 37940:'statement notifying its employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in', 37941:'the contractor’s workplace and specifying theactions that will be takenagainst employees for violations of such prohibition; 2 establish an ongoing', 37942:'drugfree awareness program to inform such employees about i the dangers of drug abuse in the workplace; iithe contractor’s policy', 37943:'ofmaintaining a drugfree workplace; iii any available drug counseling, rehabilitation, and employee assistance programs; and iv the penalties that may', 37944:'be imposed upon employees for drug abuse violations occurring in the workplace; 3 provide all employees engaged in performance of', 37945:'the contract with a copy of the statement required by paragraph b1 of this clause; 4 notify such employees in', 37946:'writing in the statement required by paragraph b1 of this clause that, as a condition of continued employment on this', 37947:'contract, the employee will i abide by the terms of the statement; and iinotify the employerin writingof the employee’s convictionunder', 37948:'a criminal drug statute for a violation occurring in the workplace no later than 5 days after such conviction; 5', 37949:'notify the contracting officer in writing within 10 daysafter receiving notice under subdivision b4ii of this clause, from an employee', 37950:'or otherwise receiving actual notice of such conviction. the notice shall include the position title of the employee; 6 within', 37951:'30 days after receiving notice under subdivision b4iiof this clause of a conviction, take one ofthe following actions with respect', 37952:'to any employee who is convicted of a drug abuse violation occurring in the workplace: itaking appropriate personnel action against', 37953:'such employee, upto and includingtermination; or 52.2306 subpart 52.2 text of provisions and clauses 52.2268 ii require such employee to', 37954:'satisfactorily participate in a drug abuse assistance or rehabilitation program approved for such purposes by a federal, state, or local', 37955:'health, law enforcement, or other appropriate agency; and 7 makea good faith effort to maintain a drugfree workplace through implementation', 37956:'of paragraphsb1 through b 6 of this clause. c thecontractor, ifan individual, agrees by award of the contract or acceptanceof', 37957:'apurchase order, not to engage in the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance while performing', 37958:'this contract. d in addition tootherremedies available to the government, the contractor’s failure to comply with the requirements of paragraph', 37959:'b or cof this clause may, pursuant tofar 26.505, render the contractor subject to suspension of contract payments, termination of', 37960:'the contract or default, and suspension or debarment. end of clause 52.2268encouraging contractor policies to ban textmessaging while driving. as', 37961:'prescribed in 26.605, insert the following clause: encouraging contractor policies to ban text messaging while driving may 2024 a definitions.', 37962:'as used in this clause driving– 1 means operating a motor vehicle on an active roadway with the motor running,', 37963:'including while temporarily stationary because of traffic, a traffic light, stop sign, or otherwise. 2 does not include operating a', 37964:'motor vehicle with or without the motor running when one has pulled over to the side of, or off, an', 37965:'activeroadway and has halted in alocationwhere one can safely remain stationary. text messaging means reading from or entering data into', 37966:'any handheld or other electronic device, including for the purpose of short message service texting, emailing, instant messaging, obtaining navigational', 37967:'information, or engaging in any other form of electronic data retrieval or electronic data communication. the term does not include', 37968:'glancing at or listeningto a navigational device that is secured in acommercially designed holder affixed to the vehicle, provided that', 37969:'the destination and route areprogrammed into the device either beforedriving or while stopped in a location offthe roadway where it', 37970:'is safe and legal to park. b this clause implements executive order13513,federal leadershipon reducing text messaging while driving, dated october', 37971:'1, 2009. c the contractor is encouraged to 1 adopt and enforce policies that ban text messaging while driving i', 37972:'companyowned or rented vehicles or governmentowned vehicles; or iiprivatelyowned vehicles whenon official government business or when performing anyworkforor on behalf', 37973:'of the government. 2 conduct initiatives in a manner commensurate with the size of the business, such as i establishment', 37974:'of new rules and programs or reevaluation of existing programs to prohibit text messaging while driving; and ii education, awareness,', 37975:'and other outreach to employees about the safety risks associated with texting while driving. d subcontracts. the contractor shall insert', 37976:'the substance of this clause, including this paragraph d, in all subcontracts that exceed the micropurchase threshold, as defined in', 37977:'federal acquisition regulation 2.101 on the date of subcontract award. end of clause 52.2307 this page intentionally left blank. 52.2308', 37978:'subpart 52.2 text of provisions and clauses 52.2272 52.227[reserved] 52.2271 authorization and consent. as prescribed in 27.2012a1, insert the following', 37979:'clause: authorization and consent jun 2020 a the government authorizes and consents to all use and manufacture, in performing this', 37980:'contract or any subcontract at any tier, ofany invention described in andcovered by a united states patent 1 embodied in', 37981:'the structure or composition of any article the delivery of which is accepted by the government under this contract; or', 37982:'2 used in machinery, tools, or methods whose use necessarily results from complianceby the contractor or a subcontractor with i', 37983:'specifications or written provisions forming a part of this contract or ii specific written instructions given by thecontracting officer directing', 37984:'the manner of performance. the entire liability to the government for infringement of a unitedstates patent shall be determined solelyby', 37985:'the provisions of the indemnity clause, ifany, included in this contract or any subcontract hereunder including any lowertier subcontract, and', 37986:'the government assumes liability for all other infringement to the extent of the authorization and consent hereinabove granted. b the', 37987:'contractor shall include the substance of this clause, including this paragraph b, in all subcontracts that are expected to exceed', 37988:'thesimplified acquisition threshold,as defined in federal acquisitionregulation far 2.101 on the dateof subcontract award. however, omissionof this clause from anysubcontract,', 37989:'including those at or below the simplified acquisition threshold, as defined in far 2.101 on the date of subcontract award,', 37990:'doesnot affect thisauthorizationand consent. end of clause alternate i apr 1984. as prescribed in 27.2012a2, substitute the following paragraph a', 37991:'for paragraph a of the basic clause: a the government authorizes and consents to all use and manufacture of any', 37992:'invention described in and covered by a unitedstates patent in the performance of this contract or any subcontract at any', 37993:'tier. alternate ii apr 1984. as prescribed in 27.2012a3, substitute the following paragraph a for paragraph a of the basic', 37994:'clause: a the government authorizes and consents to all use and manufacture in the performance of any order at any', 37995:'tier or subcontract atanytier placed under this contract for communication services and facilitiesforwhich rates,charges, and tariffs are not establishedby a', 37996:'government regulatory body, of any invention describedin and coveredby a united states patent 1 embodied in the structure or composition', 37997:'of any article the delivery of which is accepted by the government under this contract; or 2 used in machinery,', 37998:'tools, or methods whose use necessarily results from complianceby the contractor or a subcontractor with specifications or written provisions forming', 37999:'a part of this contract or with specific written instructions given by thecontracting officer directing the manner of performance. 52.2272', 38000:'notice and assistance regarding patent and copyright infringement. as prescribed in 27.2012b, insert the following clause: notice and assistance regarding', 38001:'patent and copyright infringement jun 2020 a thecontractor shall report to the contracting officer, promptly and in reasonable written detail,', 38002:'each notice or claim of patent or copyright infringement based on the performance of this contract of which the contractor', 38003:'has knowledge. b in the event of any claim or suit against the government on account of any alleged patent', 38004:'or copyright infringement arising out of the performance of this contract or out of the use of any supplies furnished', 38005:'or work or services performed under this contract, the contractor shall furnish tothe government, when requested by the contractingofficer, all', 38006:'evidence and information inthe contractor’spossession pertaining to such claim or suit. such evidence and information shall be furnished at the', 38007:'expense of the government except where the contractor has agreed to indemnify the government. 52.2309 52.2273 federal acquisition regulation c', 38008:'the contractor shall include the substance of this clause, including this paragraph c, in all subcontracts that are expected to', 38009:'exceed thesimplified acquisition threshold,as defined in federal acquisitionregulation far 2.101 on the date of subcontract award. end of clause 52.2273patentindemnity.', 38010:'as prescribed in 27.2012c1, insert the following clause: patent indemnity apr 1984 a thecontractor shall indemnifythe government and itsofficers, agents,', 38011:'and employees against liability, including costs, for infringement of any united states patent except a patent issued upon an application', 38012:'that is now or may hereafter be withheld from issue pursuant to a secrecy order under 35 u.s.c. 181 arising', 38013:'out of the manufacture or delivery of supplies, the performance of services, or the construction, alteration, modification, or repair of', 38014:'real property hereinafter referred to as construction work under this contract, or out of the use or disposal by or', 38015:'for the account of the government of such supplies or construction work. b this indemnity shall not apply unless the', 38016:'contractor shall have been informed as soon as practicable by the government of the suit or action alleging such infringement', 38017:'and shall have been givensuch opportunityas is affordedby applicable laws, rules,or regulationsto participate in its defense. further,thisindemnity shall not apply', 38018:'to— 1 an infringementresulting fromcompliance with specific written instructions ofthe contracting officerdirecting a change in the supplies to be delivered', 38019:'or in the materials or equipment to be used, or directing a manner of performance of the contract not normally', 38020:'used by the contractor; 2 an infringement resulting from addition to or change in supplies or components furnished or construction', 38021:'work performed that was made subsequent to delivery or performance; or 3 a claimed infringement that is unreasonably settled without', 38022:'theconsent of thecontractor, unless required by final decree of a court of competent jurisdiction. end of clause alternate i apr', 38023:'1984. as prescribed in 27.2012c2, add the following paragraph c to the basic clause: c this patent indemnification shall not', 38024:'apply to the following items: [contracting officer list and/or identify the items to be excluded from this indemnity.] alternate ii', 38025:'apr 1984. as prescribed in 27.2012c2, add the following paragraph c to the basic clause: c this patent indemnification shall', 38026:'cover the following items: [list and/or identify the items to be included under this indemnity.] alternate iii jun 2020. as', 38027:'prescribed in 27.2012c3, add the following paragraph c to the basic clause: as to subcontracts at any tier for communication', 38028:'service, this clause shall apply only to individual communication service authorizations over the simplified acquisition threshold, as defined in federal', 38029:'acquisition regulation 2.101 on the date of subcontract award, issued under this contract and covering those communications services and facilities', 38030:'1 that are or have been sold or offered for sale by thecontractor to thepublic, 2 that can be provided', 38031:'over commercially available equipment, or 3 that involve relatively minor modifications. 52.2274 patent indemnityconstruction contracts. as prescribed in 27.2012d1, insert', 38032:'the following clause: patent indemnityconstruction contracts dec 2007 52.2310 subpart 52.2 text of provisions and clauses 52.2276 except as otherwise', 38033:'provided, the contractor shall indemnify the government andits officers, agents, and employees against liability, including costs andexpenses, for infringementof any', 38034:'united states patent except apatent issued upon an application that is now or may hereafter be withheld from issue pursuant', 38035:'to a secrecy order under 35 u.s.c. 181 arising out of performing this contract or out of the use or', 38036:'disposal by or for the account of the government of supplies furnished or work performed under this contract. end of', 38037:'clause alternate i dec 2007. as prescribed in 27.2012d2, designate the first paragraph of the basic clause as paragraph a', 38038:'and add the following paragraph b to the basic clause: b this patent indemnification shall not apply to the following', 38039:'items: [contracting officer list the items to be excluded.] 52.2275waiver ofindemnity. as prescribed in 27.2012e, insert the following clause: waiver', 38040:'of indemnity apr 1984 any provision or clause of this contract to the contrary notwithstanding, the government hereby authorizes and', 38041:'consents to the use and manufacture, solely in performing this contract, of any invention covered by the united states patents', 38042:'identified below and waives indemnification by the contractor with respect to such patents: [contracting officer identify the patents by number', 38043:'or by other means if more appropriate.] end of clause 52.2276 royalty information. as prescribed in 27.2025a1, insert the following', 38044:'provision: royalty information apr 1984 a cost or charges for royalties. when the response to this solicitation contains costs orcharges', 38045:'for royaltiestotaling more than $250, the following information shall be included in the response relating to each separate item of', 38046:'royalty or license fee: 1 name and address oflicensor. 2 date of license agreement. 3 patent numbers, patent application serial', 38047:'numbers, or other basis on which the royalty is payable. 4 brief description, including any part or model numbers of', 38048:'each contract item or component on which the royalty is payable. 5 percentage or dollar rate of royalty per unit.', 38049:'6 unit price of contract item. 7 number of units. 8 total dollar amount ofroyalties. b copies of current licenses.', 38050:'in addition, if specifically requested by the contracting officer before execution ofthe contract, the offeror shall furnish a copy of', 38051:'the currentlicense agreement and an identification of applicable claims of specific patents. end of provision alternate i apr 1984. as', 38052:'prescribed in 27.2025a2, substitute the following for the introductory portion of paragraph a of the basic provision: 52.2311 52.2277 federal', 38053:'acquisition regulation when the responseto this solicitation covers chargesforspecial construction or special assemblythat contain costs or charges for royalties totaling', 38054:'more than $250,the following information shall be includedin the response relating toeach separate item of royalty or license fee: 52.2277', 38055:'patentsnotice of government licensee. as prescribed at 27.2025b, insert the following provision: patentsnotice of government licensee apr 1984 the government', 38056:'is obligated to pay a royalty applicable to the proposed acquisition because of a license agreement between the government and', 38057:'the patentowner. the patent numberis [contracting officer fill in], and the royalty rate is [contracting officer fill in]. if theofferor', 38058:'isthe owner of, or a licensee under, the patent, indicatebelow: □ owner □ licensee if an offeror does not indicate', 38059:'that it is the owner or a licenseeof the patent, its offer will beevaluated by adding thereto an amount equal', 38060:'to the royalty. end of provision 52.2278 [reserved] 52.2279 refund of royalties. as prescribed in 27.2025c, insert the following clause:', 38061:'refund of royalties apr 1984 a the contract price includes certain amounts for royalties payable by the contractor or subcontractors', 38062:'or both, which amounts have been reported to the contracting officer. b the term royalties as used in this clause', 38063:'refersto any costsor charges in the nature ofroyalties, licensefees, patent or license amortization costs, or the like, for the use', 38064:'of or for rights in patents and patent applications in connection with performingthis contractor any subcontract hereunder. c thecontractor shall', 38065:'furnish to the contracting officer, before final payment under this contract, a statement of royalties paid or required to be', 38066:'paid in connection with performing this contract and subcontracts hereunder together with the reasons. d the contractor will be compensated', 38067:'for royalties reported under paragraph c of this clause, only to the extent that suchroyalties wereincluded in the contract price', 38068:'and are determined by thecontracting officer to be properly chargeable to thegovernment and allocable to the contract. to the extent', 38069:'that anyroyalties thatare included in thecontract priceare not in fact paid bythe contractor or aredetermined by the contracting officer not', 38070:'to be properly chargeable tothe government and allocable to the contract, the contract price shall be reduced. repayment or credit', 38071:'to the government shall be made as the contracting officerdirects. e if, at any time within 3 years after final', 38072:'payment under this contract, the contractor for any reason is relieved in whole or in part from the payment of', 38073:'the royalties included in the final contract price as adjusted pursuant to paragraph d of this clause, the contractor shall', 38074:'promptly notify the contracting officer of that fact and shall reimburse thegovernment in a corresponding amount. f the substance of', 38075:'this clause, including this paragraph f, shall be included in any subcontract in which the amount of royalties reported during', 38076:'negotiation of the subcontract exceeds $250. end of clause 52.22710 filing of patent applicationsclassified subject matter. as prescribed at 27.2032,', 38077:'insert the following clause: filing of patent applicationsclassified subject matter dec 2007 52.2312 subpart 52.2 text of provisions and clauses', 38078:'52.22711 a before filing or causing to be filed a patent application in the united states disclosing any subject matter', 38079:'of this contract classified secret or higher, thecontractor shall, citingthe 30day provision below,transmit the proposed application to the contractingofficer. the', 38080:'government shall determine whether, for reasonsof national security,the application should be placed underan orderof secrecy, sealed in accordance with the', 38081:'provision of 35 u.s.c. 181188, or the issuance of a patent otherwise delayed under pertinent united states statutes or regulations.', 38082:'the contractor shall observe any instructions of the contracting officer regardingthe mannerof delivery of the patent application tothe united states', 38083:'patent office, but thecontractor shall not be denied the right to file the application. if the contracting officer shall not', 38084:'have given any such instructions within 30 days from the date of mailing or other transmittal of the proposed application,', 38085:'the contractor may file the application. b before filing a patent application in the united states disclosing any subject matter', 38086:'of this contract classified confidential, the contractor shall furnish tothe contracting officera copy of the application for government determination whether,', 38087:'for reasons ofnational security, the application should be placed under an order ofsecrecy or the issuance of a patent should', 38088:'be otherwise delayed under pertinent united states statutes or regulations. c where thesubject matter of this contractis classified for reasonsof', 38089:'security, the contractor shall not file, or cause to be filed, in any country other than in the united states', 38090:'as provided in paragraphs a and b of this clause, an application or registration for a patent containing any of', 38091:'the subject matter of this contract without first obtaining written approval of the contracting officer. d when filing any patent', 38092:'application coming within the scope of this clause, the contractor shall observe all applicable security regulations covering the transmission of', 38093:'classified subject matter and shall promptly furnish to the contracting officer the serial number, filing date, andnameof the countryof any', 38094:'such application. whentransmittingthe application to theunited statespatent office, the contractorshallby separate letter identifyby agency and numberthe contract or contracts that', 38095:'require security classification markings to be placed on the application. e the contractor shall include the substance of this clause,', 38096:'including this paragraph e, in all subcontracts that cover or arelikely to cover classified subject matter. end of clause 52.22711patent', 38097:'rightsownership by thecontractor. as prescribed in 27.303b1, insert the following clause: patent rightsownership by the contractor may 2014 a as', 38098:'used in this clause invention means any invention or discovery that is or may be patentable or otherwise protectable under', 38099:'title 35 of the u.s. code,or any variety of plant that is or maybe protectableunder theplant variety protection act 7', 38100:'u.s.c. 2321, et seq. made means 1 when used in relation to anyinvention other than a plant variety, the conception', 38101:'or first actualreduction to practice of the invention; or 2 when used in relation to a plant variety, that the', 38102:'contractor hasat least tentatively determined thatthe variety has been reproduced with recognized characteristics. nonprofit organization means a university orother institution', 38103:'of higher education or an organization of the type described in section 501c3 of the internal revenue code of 1954', 38104:'26 u.s.c. 501c and exempt from taxation under section 501a of the internal revenue code 26 u.s.c. 501a, oranynonprofit scientific', 38105:'or educational organization qualified under a state nonprofit organizationstatute. practical application means to manufacture, in the case of a composition', 38106:'of product; to practice, in the case of a process or method; or to operate, in the case of a', 38107:'machine or system; and, in each case, under such conditions as to establish that the invention is being utilized and', 38108:'that its benefits are, to the extent permitted by law or government regulations, available to the public on reasonable terms.', 38109:'subject invention means any invention of the contractor made in the performance of work under this contract. b contractor’s rights.', 38110:'1 ownership. the contractor may retain ownership of each subject invention throughout the world in accordance with the provisions of', 38111:'this clause. 2 license. i the contractor shall retain a nonexclusive royaltyfree license throughout the world in each subject invention', 38112:'to which the government obtains title, unless the contractor fails to disclose the invention within the times 52.2313 52.22711 federal', 38113:'acquisition regulation specified in paragraph c of this clause. the contractor’slicense extendsto any domesticsubsidiariesandaffiliates within the corporate structure of which', 38114:'the contractor is a part, and includes the right to grant sublicenses to the extent the contractor was legally obligated', 38115:'to do so at contract award. the license is transferable only with the written approval of the agency, except when', 38116:'transferred to the successor of that part of the contractor’s business to which the invention pertains. iithe contractor’s license may', 38117:'be revoked or modifiedby the agency to the extent necessary to achieve expeditious practical applicationof the subject invention in aparticular', 38118:'country in accordance with the proceduresin far 27.302i2 and 27.3041f. c contractor’s obligations. 1 the contractor shall disclose in writing', 38119:'each subject invention to the contracting officer within 2 months after the inventor discloses it in writing to contractor personnel', 38120:'responsible for patentmatters. the disclosureshallidentify the inventors and this contract underwhich the subject invention wasmade. it shall besufficiently complete in', 38121:'technical detail to convey a clear understanding of the subject invention. the disclosure shall also identify any publication, on sale', 38122:'i.e., sale or offer for sale, or public use of the subject invention,or whether amanuscript describing the subject invention has', 38123:'been submitted for publication and, if so, whether it has been accepted for publication. in addition, after disclosureto theagency, the', 38124:'contractor shall promptly notify the contracting officer of the acceptance ofany manuscript describing the subject invention for publication and any', 38125:'on sale or public use. 2 the contractor shall elect in writing whether or not to retain ownership of any', 38126:'subject invention by notifying the contracting officerwithin 2 years of disclosure to the agency. however,in any case wherepublication, on sale,', 38127:'or public use has initiated the 1year statutory period during which valid patent protection can be obtained in the united', 38128:'states, the period for election of title may be shortened by the agency to a date that is no more', 38129:'than 60 days prior to the end of the statutory period. 3 the contractor shall file either a provisional ora', 38130:'nonprovisional patent applicationor aplantvariety protection application on anelected subject invention within 1 year after election. however, in any case where', 38131:'a publication,on sale, or public use has initiated the 1year statutory period during which valid patent protection can be obtained', 38132:'in the united states, the contractor shall file the application prior to the end of that statutory period. if the', 38133:'contractor files a provisional application, it shall file a nonprovisional application within 10 months of the filing of the provisional', 38134:'application. the contractor shall filepatent applications in additional countries or international patent offices within either10 months of the first filed', 38135:'patent application whether provisional or nonprovisional or 6 months from the date permission is granted by the commissionerof patents to', 38136:'file foreign patent applications where suchfiling hasbeenprohibited by asecrecy order. 4 the contractor may request extensions of time for disclosure,', 38137:'election, or filing under paragraphs c1, c2, and c3 of this clause. d government’s rights1 ownership. the contractor shall assign', 38138:'tothe agency, on written request, title to any subject invention i if the contractor fails to disclose or elect ownership', 38139:'to the subject invention within the times specified in paragraph c of this clause, or elects not to retain ownership;', 38140:'provided, that the agency may request title only within 60 days after learning of the contractors failure to disclose or', 38141:'elect within the specified times. ii in those countries in which the contractor fails to file patent applications within the', 38142:'times specified in paragraph c ofthis clause;provided, however, that ifthe contractor has filed a patent applicationin a country after the', 38143:'times specified in paragraph c of this clause,but priorto itsreceipt of thewritten request ofthe agency, the contractorshallcontinue to retain ownership', 38144:'in that country. iii in any country in which the contractordecides not to continue the prosecution of any application for,to', 38145:'pay the maintenance fees on, or defend in reexamination or opposition proceeding on, a patent on a subject invention. 2', 38146:'license. if the contractor retains ownership of any subject invention, the government shall have a nonexclusive, nontransferable, irrevocable, paidup license', 38147:'to practice, or have practiced for or on its behalf, the subject invention throughout the world. e contractor action to', 38148:'protect the government’s interest. 1 the contractor shall execute or have executed and promptly deliver to the agency all instruments', 38149:'necessary to i establish or confirm the rights the government has throughout the world in those subject inventions in which', 38150:'the contractor elects to retain ownership; and ii assign title to the agency when requested under paragraph d of this', 38151:'clause and to enable the government to obtain patent protectionandplant variety protection for that subject inventionin any country. 2 the', 38152:'contractor shall require, by written agreement, its employees, other than clerical and nontechnical employees, to disclose promptly in writing to', 38153:'personnel identified as responsible for the administration of patent matters and in the contractors format, each subject invention in order', 38154:'that the contractor can comply with the disclosure provisions of 52.2314 subpart 52.2 text of provisions and clauses 52.22711 paragraph', 38155:'c of this clause, and to execute all papers necessary to file patent applications on subject inventions and to establish', 38156:'the governments rights in the subject inventions. the disclosure format should require, as a minimum, the information required by paragraph', 38157:'c1 of this clause. the contractor shall instruct such employees, through employee agreements or other suitable educational programs, asto the', 38158:'importance of reporting inventions insufficient time topermit the filing of patent applications prior to u.s. or foreign statutory bars. 3', 38159:'the contractor shall notify the contracting officer of any decisions not to file a nonprovisional patent application, continue the prosecution', 38160:'of a patent application, pay maintenance fees, or defend in a reexamination or opposition proceeding on a patent, inany country,', 38161:'not less than30 days before the expirationof the responseor filing periodrequired by the relevant patent office. 4 the contractor shall', 38162:'include, within the specification of any united states nonprovisional patent or plant variety protection application and any patent or plant', 38163:'variety protection certificate issuing thereon covering a subject invention, the following statement, this invention was made with government support under', 38164:'identify the contract awarded by identify the agency. the government has certain rights in the invention. f reporting on utilization', 38165:'of subject inventions. the contractor shall submit, on request, periodic reports no more frequently than annually on the utilizationof asubject', 38166:'inventionor on effortsat obtaining utilization of the subject invention that are being made by the contractor or its licensees or', 38167:'assignees. the reports shall include information regarding the statusof development, date of first commercialsale or use, gross royalties receivedby the', 38168:'contractor,andotherdata and information as the agency may reasonably specify. the contractor also shall provide additionalreports as may be requested by', 38169:'the agency in connection with any marchin proceeding undertaken by the agency in accordance with paragraph h of this clause.', 38170:'the contractor also shall mark any utilization report as confidential/proprietary to help prevent inadvertent release outside the government. as required', 38171:'by 35 u.s.c. 202c5, the agency will not disclose that information to persons outside thegovernment without the contractor’s permission. g', 38172:'preference for united states industry. notwithstanding any other provision of this clause, neither the contractor nor any assignee shall grant', 38173:'to any person the exclusive right to use or sell any subject invention in the united states unless the person', 38174:'agrees that any products embodying the subject invention or produced through the use of the subject invention will bemanufactured substantiallyin', 38175:'the united states. however, in individual cases, the requirement for an agreement may be waived bythe agencyupon a showing by', 38176:'the contractoror its assignee thatreasonable butunsuccessful effortshavebeen made to grant licenses on similar terms to potential licensees that would be', 38177:'likely to manufacture substantially in the united states, or that under the circumstances domestic manufacture is not commercially feasible. h', 38178:'marchin rights. the contractor acknowledges that, with respect to any subject invention in which it has retained ownership, the agency', 38179:'has the right to require licensing pursuant to 35 u.s.c. 203 and 210c, and in accordance with the procedures in', 38180:'37 cfr 401.6andany supplemental regulations of the agency in effect on the date of contract award. ispecial provisions for contracts', 38181:'with nonprofit organizations. if thecontractor is anonprofit organization,itshall 1 not assign rights to a subject inventionin the united states without', 38182:'the written approval of the agency, except where an assignment ismadeto anorganization thathas asone of its primary functionsthe management of', 38183:'inventions, provided, that the assignee shall be subject to the same provisions as the contractor; 2 shareroyalties collected on a', 38184:'subjectinvention with the inventor, including federal employee coinventors but through their agency if the agency deems it appropriate when the', 38185:'subject invention is assigned in accordance with 35 u.s.c. 202e and 37 cfr 401.10; 3 use the balance of any', 38186:'royalties or income earned by the contractor with respect to subject inventions, after payment of expenses including payments to inventors', 38187:'incidental to the administration of subject inventions for the support of scientific research or education; and 4 makeefforts that are', 38188:'reasonable under the circumstances to attract licenseesof subject inventions that are small business concerns, and give a preference to a', 38189:'small business concern when licensing a subject invention if the contractor determines that the small business concern has a plan', 38190:'or proposal for marketing the invention which, if executed, is equally as likely to bring the invention to practical application', 38191:'as any plans or proposals from applicants that are not small business concerns; provided, that the contractor is also satisfied', 38192:'that the small business concern has the capability and resources to carry out its plan or proposal. the decision whether', 38193:'to give a preference in any specific case will be at the discretion of the contractor. 5 allow thesecretary of', 38194:'commerce toreview the contractor’s licensing program and decisions regarding small business applicants, and negotiate changes to its licensing policies, procedures,', 38195:'or practices with the secretary of commerce when the secretary’sreview discloses that the contractor could take reasonable stepsto more effectively', 38196:'implement the requirements of paragraph i4 of this clause. 52.2315 52.22711 federal acquisition regulation j communications. [complete according to agency', 38197:'instructions.] k subcontracts. 1 the contractor shall include the substance of this clause, including this paragraph k, in all subcontracts', 38198:'for experimental, developmental, or research work to be performed by a small business concern or nonprofit organization. 2 the contractor', 38199:'shall include in all other subcontracts for experimental, developmental, or research work the substanceofthepatentrightsclauserequiredbyfar subpart 27.3. 3 at all tiers,', 38200:'the patent rights clause must be modified to identify the parties as follows: references to the government are not changed,', 38201:'and the subcontractor has all rights and obligations of the contractor in the clause. the contractor shall not, as part', 38202:'of the considerationforawarding the subcontract, obtain rightsin thesubcontractor’s subject inventions. 4 in subcontracts, at any tier, the agency, the subcontractor,', 38203:'and the contractor agree that the mutual obligations of the parties created by this clause constitute a contract between the', 38204:'subcontractor and the agency with respect to the matters covered bythe clause; provided, however, that nothing in this paragraph is', 38205:'intended toconfer any jurisdiction underthe contract disputes statute in connection with proceedings under paragraph h of this clause. end of', 38206:'clause alternate i jun 1989. as prescribed in 27.303 b3, add the following sentence at the end of paragraph d2', 38207:'of the basic clause: the license shall include the right of the government to sublicense foreign governments, their nationals and', 38208:'international organizations pursuantto the following treaties orinternational agreements: [contracting officer complete with the names of applicable existing treaties or international', 38209:'agreements. the above language is not intended to apply to treaties or agreements that are in effect on the date', 38210:'of the award but are not listed.] alternate ii dec 2007. as prescribed in 27.303b4, add the following sentence at', 38211:'the end of paragraph d2 of the basic clause: the agency reserves the right to unilaterally amend this contract to', 38212:'identify specific treaties or international agreements entered into by the government before or after the effective date of the contract', 38213:'and effectuate those licenseor other rights that are necessary for the government to meet its obligations to foreign governments, their', 38214:'nationals, and international organizations under the treaties or internationalagreements with respect to subject inventions made after thedate of the amendment.', 38215:'alternate iii jun 1989. as prescribed in 27.303 b5, substitute the following paragraph i3 in place of paragraph i3 of', 38216:'the basic clause: 3 after payment of patenting costs, licensing costs, payments to inventors, and other expenses incidental to the', 38217:'administration of subject inventions, the balance of any royalties or income earned and retained by the contractor during any fiscal', 38218:'year on subject inventions under this or any successor contract containing the same requirement, up to any amount equal to', 38219:'5 percent of the budget ofthe facility for that fiscal year,shallbe usedby the contractor for thescientific research, development, and education', 38220:'consistent with the research anddevelopment mission and objectivesof the facility, including activities that increase the licensing potential of other inventions', 38221:'of the facility. if the balance exceeds5 percent, 75 percentof theexcess above 5 percentshallbe paid by the contractor to the', 38222:'treasuryof the united states and the remaining 25 percent shall beused by the contractoronly for the same purposes as described', 38223:'above. to the extentitprovides the most effective technology transfer,the licensing ofsubject inventions shall be administered by contractor employees on location', 38224:'at the facility. alternate iv jun 1989. as prescribed in 27.303b6, include the following paragraph e5 in paragraph e of', 38225:'the basic clause: 5 the contractor shall establish and maintain active and effective procedures to ensure that subject inventions are', 38226:'promptly identified and timelydisclosed, and shall submita description of the procedures tothe contracting officersothat thecontracting officer may evaluate and determine', 38227:'their effectiveness. alternate v dec 2007. as prescribed in 27.303 b7, include the following paragraph d3 in paragraph d of', 38228:'the basic clause: d3 crada licensing. if the contractor performs services at a government owned and operated laboratory or at', 38229:'a government owned and contractor operated laboratory directed by the government tofulfill the government’s obligations under a cooperative research and', 38230:'development agreement crada authorized by 15 u.s.c. 3710a, the government may require the contractor to negotiate an agreement with the', 38231:'crada collaborating party or parties regarding the allocation of 52.2316 subpart 52.2 text of provisions and clauses 52.22713 rightsto any', 38232:'subject invention the contractormakes, solelyor jointly, under the crada. the agreement shall be negotiated prior to the contractor undertaking the', 38233:'crada work or, with the permissionof the government, upon the identification of a subject invention. in the absence of such', 38234:'an agreement, the contractor agrees to grant the collaborating party or parties an option for a license in its inventions', 38235:'of the same scope and terms set forth in the crada for inventions made by the government. 52.22712 [reserved] 52.22713', 38236:'patent rightsownership by the government. as prescribed at 27.303e, insert the following clause: patent rightsownership by the government dec 2007', 38237:'a definitions. as used in this clause invention means any invention or discovery that is or may be patentable or', 38238:'otherwise protectable under title 35 of the u.s. code or any variety of plant that is ormay be protectable under', 38239:'the plantvariety protection act 7 u.s.c. 2321, et seq. made means 1 when used in relation to anyinvention other than', 38240:'a plant variety, means the conception or firstactual reduction to practice of the invention; or 2 when used in relation', 38241:'to a plant variety, means that the contractor has at least tentatively determined that the variety has been reproduced with', 38242:'recognized characteristics. practical application means to manufacture, in the case of a composition or product; to practice, in the case', 38243:'of a process or method; or to operate, in the case of a machine or system; and, in each case,', 38244:'under such conditions as to establish that the invention is being utilized and that its benefits are, to the extent', 38245:'permitted by law or government regulations, available to the public on reasonable terms. subject invention means any invention of the', 38246:'contractor made in the performance of work under this contract. b ownership. 1 assignment to the government. the contractor shall', 38247:'assign to the government title throughout the world to each subject invention, except to the extent that rights are retained', 38248:'under paragraphs b2 and d of this clause. 2 greater rights determinations. i the contractor,or an employeeinventor after consultation with', 38249:'the contractor, may request greater rights than the nonexclusive license provided in paragraph d of this clause. the request for', 38250:'a greater rightsmust be submitted tothe contracting officerat the timeof the first disclosureof the subject invention pursuant to paragraph e2', 38251:'ofthisclause, or not later than 8 months thereafter, unless a longer period is authorizedin writing bythe contracting officerforgood cause shown', 38252:'in writing by the contractor. each determination of greater rights under this contract normally shall be subject to paragraph c', 38253:'of this clause, and to the reservations and conditions deemed to be appropriate by the agency. ii upon request, the', 38254:'contractor shall provide the filing date, serial number and title, a copy of the patent application including an englishlanguage version', 38255:'if filed in a language other than english, and patent number and issue date for any subject invention in any', 38256:'country for which the contractor has retained title. iii upon request, the contractor shall furnish the agency an irrevocable power', 38257:'to inspect and make copies of the patent application file. c minimum rights acquired by the government. 1 regarding each', 38258:'subject invention to which the contractor retains ownership, the contractor agrees as follows: i the government will have a nonexclusive,', 38259:'nontransferable, irrevocable, paidup license to practice, or have practiced for or on its behalf, the subject invention throughout the world.', 38260:'ii the agency has the right to require licensing pursuant to 35 u.s.c. 203 and 210c and in accordance with', 38261:'the procedures set forth in 37 cfr 401.6andany supplemental regulations of the agency in effect on the date of thecontract', 38262:'award. iii upon request, the contractor shall submit periodic reports no more frequently than annually on the utilization, or efforts', 38263:'toobtainutilization,of asubject invention bythe contractor or itslicensees or assignees. the reports shall include information regarding the status of development, date', 38264:'of first commercial sale or use, gross royalties received by thecontractor, and any other data andinformation asthe agency may reasonably', 38265:'specify. the contractor also shall provide additional reports as may be requested by the agency in connection with any marchin', 38266:'proceedings undertaken by the agency in accordance with paragraph c1ii of this clause. tothe extent dataor information supplied under this', 38267:'section is 52.2317 52.22713 federal acquisition regulation consideredby the contractor,or its licensees, orassignees to be privileged and confidentialandis so marked,', 38268:'the agency, to theextent permittedby law, will not disclose such information to persons outside the government. iv when licensing a', 38269:'subject invention, the contractor shall aensure that no royalties are charged on acquisitions involving government funds, including funds derived through', 38270:'a military assistance program of the government or otherwise derived through the government; b refund any amounts received as royaltycharges', 38271:'on a subjectinvention inacquisitions for,or on behalf of, the government; c provide for this refund in any instrument transferring rightsin', 38272:'thesubject inventionto any party. v when transferring rightsin a subject invention,the contractor shall provide for the government’s rights set forth', 38273:'in paragraphs c1i through c1iv of this clause. 2 nothing contained in paragraph c of this clause shall be deemed', 38274:'to grant to the government rights in any invention other than a subject invention. dminimumrightstothecontractor. 1 the contractor is hereby', 38275:'granted a revocable, nonexclusive, paidup license in each patent application filed in any country on a subject invention and any', 38276:'resulting patent in which the government obtains title, unless the contractor fails to disclose the subject invention within the times', 38277:'specified in paragraph e2 of this clause. the contractor’s license extends to anyof its domesticsubsidiaries andaffiliates within the corporate structure', 38278:'of which the contractor is a part, and includes the right to grant sublicenses to the extent the contractor was', 38279:'legally obligated to do so at contract award. the license is transferable only with the written approval of the agency', 38280:'except when transferred to the successor of that part of the contractor’s business to which the subject invention pertains. 2', 38281:'the contractor’s license may be revoked ormodified by the agency to the extentnecessary toachieve expeditious practical application of thesubject inventionin', 38282:'a particularcountry in accordance with the procedures infar 27.302i2 and 27.3041f. 3 when the government electsnot to apply for a', 38283:'patent in any foreign country, the contractor retains rights in that foreign country to apply for a patent, subject to', 38284:'thegovernment’s rights in paragraph c1 of this clause. e invention identification, disclosures, and reports. 1 the contractor shall establish and', 38285:'maintain active and effective procedures to educate its employees in order to assure that subject inventions are promptly identified and', 38286:'disclosed to contractor personnel responsible for patent matters. the procedures shall include the maintenance of laboratory notebooks or equivalent records', 38287:'and other records as are reasonably necessary to document the conception and/or the first actual reduction to practice of subject', 38288:'inventions, and records that show the procedures for identifying and disclosing subject inventions are followed. upon request, the contractor shall', 38289:'furnish thecontracting officer a descriptionof theseprocedures for evaluation and for a determination as to their effectiveness. 2 the contractor shall', 38290:'disclose in writing each subject invention to the contracting officer within 2 months after the inventor discloses it in writing', 38291:'to contractor personnel responsible for patent matters or,if earlier, within6 months after the contractor becomes aware that a subject invention', 38292:'has been made, but in any event before any on sale i.e.,sale or offer for sale, public use, or publication', 38293:'of the subject invention known to the contractor. the disclosure shall identify the contract underwhich the subject invention was made', 38294:'and the inventors. it shall besufficiently complete in technical detail toconvey a clear understanding of the subject invention. the disclosure', 38295:'shall also identify any publication, on sale, or public use of the subject invention and whether a manuscript describing the', 38296:'subject invention has been submitted for publication and, if so, whether it has been accepted for publication. in addition, after', 38297:'disclosure to the agency,the contractor shall promptly notify thecontracting officer of the acceptanceof any manuscriptdescribing the subject invention for publication', 38298:'and any on sale or public use. 3 the contractor shall furnish thecontracting officer thefollowing: iinterim reports every 12 months', 38299:'or a longer period asmay be specified bythe contracting officer from thedate of the contract, listing subject inventions during that', 38300:'period, and stating that all subject inventions have been disclosed or that there are none and that the procedures required', 38301:'by paragraph e1 of this clause have been followed. ii a final report, within 3 months after completion of the', 38302:'contracted work, listing all subject inventions or stating that there were none, and listing all subcontracts at any tier containing', 38303:'a patent rights clause or stating that there were none. 4 the contractor shall require, by written agreement, its employees,', 38304:'other than clerical and nontechnical employees, to disclose promptly in writing to personnel identified as responsible for the administration of', 38305:'patent matters and in the contractor’sformat eachsubject inventionin order that the contractorcan complywith the disclosure provisions of paragraph c of', 38306:'this clause, and to execute all papers necessary to file patent applications on subject inventions and to establish the government’s', 38307:'rights in the subjectinventions. this disclosure format should require,as a minimum, the information required by paragraph e2 of this clause.', 38308:'the contractor shall instruct such employees, through employee 52.2318 subpart 52.2 text of provisions and clauses 52.22713 agreements or other', 38309:'suitable educational programs, asto the importance of reporting inventions insufficient time topermit the filing of patent applications prior to u.s.', 38310:'or foreign statutory bars. 5 subjectto far 27.302i, the contractor agrees that the government may duplicate and disclose subject invention', 38311:'disclosures and all other reports and papers furnished or required to be furnished pursuant to this clause. f examination of', 38312:'records relating to inventions. 1thecontractingofficeroranyauthorizedrepresentativeshall, until 3 years after final payment under this contract, have the right to examine any', 38313:'books including laboratory notebooks, records, and documents of the contractor relating to the conception or first actual reduction to practice', 38314:'of inventions in the same field of technology as the work under this contract to determine whether i any inventions', 38315:'are subject inventions; ii the contractor has established and maintains the procedures required by paragraphs e1 and e4 of this', 38316:'clause; and iii the contractor and its inventors have complied with the procedures. 2 the contractor shall disclose to the', 38317:'contracting officer, for the determination of ownership rights, any unreported invention that thecontracting officer believesmay be a subject invention. 3', 38318:'any examination of records under paragraph f of this clause will be subject to appropriate conditions to protect the confidentiality', 38319:'of the information involved. gwithholdingofpayment. thisparagraphdoesnotapplytosubcontracts. 1 any time before final payment under this contract, the contracting officer may,in thegovernments', 38320:'interest, withholdpayment untila reserve not exceeding $50,000 or 5percent ofthe amountof this contract,whichever isless, shall have been set aside if,in', 38321:'the contractingoffice’s opinion, the contractor fails to iestablish, maintain, and followeffective procedures for identifying and disclosing subject inventions pursuant to', 38322:'paragraph e1 of this clause; ii disclose any subject invention pursuant to paragraph e2 of this clause; iii deliver acceptable', 38323:'interim reports pursuant to paragraph e3i of this clause; or iv provide the information regarding subcontracts pursuant to paragraph i4', 38324:'of this clause. 2 the contracting officer will withhold thereserve or balance until the contractingofficer has determined that the contractor', 38325:'has rectified whatever deficiencies exist and has delivered all reports, disclosures, and other information required by this clause. 3 the', 38326:'contracting officer will not make final payment under this contract before the contractordelivers to the contracting officer, as requiredby this', 38327:'clause, all disclosures of subject inventions,an acceptable final report,and alldue confirmatory instruments. 4 the contracting officer may decrease orincrease the', 38328:'sumswithheld up to the maximum authorized. the contracting officerwill not withhold any amount under this paragraph while the amount specified', 38329:'by this paragraph is being withheld under other provisions of the contract. the withholding of any amount or the subsequent', 38330:'payment shall not be construed as a waiver of any government rights. h preference for united states industry. unless provided', 38331:'otherwise, neither the contractor nor any assignee shall grant to any person the exclusive right to use or sell any', 38332:'subject invention in the united states unless the person agrees that any products embodying the subject invention or produced through', 38333:'the use of the subject invention will be manufactured substantially in the united states. however, in individual cases, the requirement', 38334:'may bewaived by the agency upon a showing by the contractoror assigneethat reasonable but unsuccessfulefforts have been made to grant', 38335:'licenses on similar terms to potential licensees that would be likely to manufacture substantially in the united states or that,', 38336:'under the circumstances, domestic manufacture is not commercially feasible. i subcontracts. 1thecontractorshallincludethesubstanceofthepatentrightsclauserequiredbyfar subpart 27.3 in all subcontracts for experimental, developmental,', 38337:'or research work. the prescribed patent rights clause must be modified to identify the parties as follows: references to the', 38338:'government are not changed, and the subcontractor has all rights and obligations of the contractor in the clause. the contractor', 38339:'shall not, as part of the consideration for awarding the subcontract, obtain rightsin thesubcontractor’s subject inventions. 2 in the event', 38340:'of a refusal by a prospective subcontractor to accept the clause, the contractor ishall promptlysubmit a written noticeto the contractingofficer', 38341:'setting forth the subcontractor’s reasons for such refusal and other pertinent information that may expedite disposition of the matter; and', 38342:'iishallnot proceed with such subcontract without the written authorization ofthe contracting officer. 52.2319 52.22714 federal acquisition regulation 3 in subcontracts', 38343:'at any tier, the agency, thesubcontractor, and thecontractor agree that themutualobligations ofthe parties created by the patent rights clause constitute', 38344:'a contract between the subcontractor and the agency with respect to those matters covered by this clause. 4 the contractor', 38345:'shall promptly notify thecontracting officer in writing uponthe award ofanysubcontract at any tier containing a patent rights clause by identifyingthe', 38346:'subcontractor,the applicable patent rights clause, theworkto be performed under the subcontract, and the datesof award and estimated completion. upon request', 38347:'ofthe contracting officer, thecontractor shall furnish a copy of suchsubcontract, and, no more frequently than annually, a listing of thesubcontracts', 38348:'that have been awarded. end of clause alternate i jun 1989. as prescribed in 27.303e 4, add the following sentence', 38349:'at the end of paragraph c1i of the basic clause: the license will include the right of the government to', 38350:'sublicense foreign governments, their nationals, and international organizations pursuantto the following treaties orinternational agreements: [contracting officer complete with the names', 38351:'of applicable existing treaties or international agreements. the above language is not intended to apply to treaties or agreements that', 38352:'are in effect on the date of the award but are not listed.] alternate ii dec 2007. as prescribed in', 38353:'27.303e5, add the following sentence at the end of paragraph c1i of the basic clause: the agency reserves the right', 38354:'to unilaterally amend this contract to identify specific treaties or international agreements entered into by the government before or after', 38355:'the effective date of thiscontract, and effectuatethose license or other rights that are necessary for the government to meet its', 38356:'obligations to foreign governments, their nationals, and international organizations under treaties or international agreements with respect to subject inventions made', 38357:'afterthe date of the amendment. 52.22714 rights in datageneral. as prescribed in 27.409b1, insert the following clause with any appropriate', 38358:'alternates: rights in datageneral may 2014 a definitions. as used in this clause computer database or database means a collection', 38359:'of recorded information in a form capable of, and for the purpose of, being stored in, processed, and operated on', 38360:'bya computer. the term does not include computer software. computer software 1 means i computer programs that comprise a series', 38361:'of instructions, rules, routines, or statements, regardless of the media in which recorded, that allow or cause a computer to', 38362:'perform a specific operation or series of operations; and ii recorded information comprising source code listings, design details, algorithms, processes,', 38363:'flow charts, formulas, and related material that would enable the computer program to be produced, created, or compiled. 2 does', 38364:'not include computer databases or computer software documentation. computer software documentation means owner’s manuals,user’s manuals, installation instructions,operating instructions, and other', 38365:'similar items, regardless of storage medium, that explain the capabilities of the computer software or provide instructions for using the', 38366:'software. data means recorded information, regardless of form or the media on which it may be recorded. the term includes', 38367:'technical data and computer software. the term does not include information incidental to contract administration, such as financial, administrative, cost', 38368:'or pricing, or management information. form, fit, and function data means data relating to items,components, or processes that are sufficientto', 38369:'enable physical and functionalinterchangeability, and data identifying source, size, configuration,matingand attachmentcharacteristics, functional characteristics, and performance requirements. for computer software it', 38370:'means data identifying source, functional characteristics, and performance requirements but specifically excludes the source code, algorithms, processes, formulas, and flow', 38371:'charts of the software. limited rights means the rights of the government in limited rights data as set forth in', 38372:'the limited rights notice of paragraph g3 if included in this clause. 52.2320 subpart 52.2 text of provisions and clauses', 38373:'52.22714 limited rights data means data, other than computer software, that embody trade secrets or are commercial or financial and', 38374:'confidential or privileged, to the extent that such data pertain to items, components, or processes developed at private expense, including', 38375:'minor modifications. restricted computer software means computer software developed at private expense and that is a trade secret, is commercial', 38376:'or financial and confidential or privileged, or is copyrighted computer software, including minor modifications of the computer software. restricted rights,', 38377:'as used in this clause, means the rights of the government in restricted computer software, as set forth in a', 38378:'restricted rights notice of paragraph g if included in this clause, or as otherwise may be provided in a collateral', 38379:'agreement incorporated in and made part of this contract, including minor modifications of such computer software. technical data means recorded', 38380:'information regardless of the form or method of the recording of a scientific or technical nature including computer databases and', 38381:'computer software documentation. this term does not include computer software or financial, administrative, cost or pricing, or management data or', 38382:'other information incidental to contract administration. the term includes recorded information of a scientific or technical nature that is included', 38383:'in computer databases see 41 u.s.c. 116. unlimited rights means the rights of the government to use, disclose, reproduce, prepare', 38384:'derivative works, distribute copiesto the public, andperformpublicly and display publicly, in anymanner and for any purpose,and to have orpermit others', 38385:'to do so. b allocation of rights. 1 except as provided in paragraph c of this clause, the government shall', 38386:'have unlimited rights in i data first produced in the performance of this contract; ii form, fit, and function data', 38387:'delivered under this contract; iii data delivered under this contract except for restricted computer software that constitute manuals or instructional', 38388:'and training material for installation, operation, or routine maintenance and repair of items, components, or processes delivered or furnished for', 38389:'use under this contract; and iv all other data delivered under this contract unless provided otherwise for limited rights data', 38390:'or restricted computer software in accordance with paragraph g of this clause. 2 the contractor shall have the right to', 38391:'i assert copyright in data first produced in the performance of this contract to the extent provided in paragraph c', 38392:'1 of this clause; ii use, release to others, reproduce, distribute, or publish any data first produced or specifically used', 38393:'by the contractor in the performance of this contract, unless provided otherwise in paragraph d of this clause; iii substantiate', 38394:'the use of, add, or correct limited rights, restricted rights, or copyright notices and to take other appropriate action, in', 38395:'accordance with paragraphs e and f of this clause; and iv protect from unauthorized disclosure and use those data that', 38396:'are limited rights data or restricted computer software to the extent provided in paragraph g of this clause. c copyright1', 38397:'data first produced in the performance of this contract. i unless provided otherwise in paragraph d of this clause, thecontractor', 38398:'may, without prior approval of the contracting officer, assert copyright in scientificand technical articles based on or containing data first', 38399:'produced in the performance of this contract and published in academic, technical or professional journals, symposiaproceedings,or similar works. the prior,express', 38400:'written permission of the contracting officeris required to assert copyright in allotherdata first producedin the performance of thiscontract. iiwhen authorized', 38401:'to assert copyright to the data, the contractor shall affixthe applicable copyright notices of 17 u.s.c. 401 or 402, and', 38402:'an acknowledgment of government sponsorship including contract number. iii for data other than computer software, the contractor grants to the', 38403:'government, and others acting on its behalf, a paidup, nonexclusive, irrevocable, worldwide license in such copyrighted data to reproduce, prepare', 38404:'derivative works, distribute copies to the public, and perform publicly and display publicly by or on behalf of the government.', 38405:'for computer software, the contractor grants to the government, and others acting on its behalf, a paidup, nonexclusive, irrevocable, worldwide', 38406:'license in such copyrighted computer software to reproduce, prepare derivative works, and perform publicly and display publicly but not to', 38407:'distribute copies to the public by or on behalf of the government. 2 data not first produced in the performance', 38408:'of this contract. the contractor shall not, without the prior written permission ofthe contracting officer, incorporate indata deliveredunder this contract', 38409:'any data not firstproduced in the performance of this contract unless the contractor i identifies the data; and 52.2321 52.22714', 38410:'federal acquisition regulation ii grants to the government, or acquires on its behalf, a license of the same scope as', 38411:'set forth in paragraph c1 of this clause or, ifsuch dataare restricted computersoftware, the governmentshallacquire a copyright license as set', 38412:'forth in paragraph g4 of this clause if included in this contract or as otherwise provided in a collateral agreement', 38413:'incorporated in or made part of this contract. 3 removal of copyright notices. the government will not remove any authorized', 38414:'copyright notices placed on data pursuant to this paragraph c, and will include such notices on all reproductions of the', 38415:'data. d release, publication, and use of data. the contractor shall have the right to use, release to others, reproduce,', 38416:'distribute, or publish any data first produced or specifically used by the contractor in the performance of this contract, except', 38417:'1 as prohibited by federal law or regulation e.g., export control or national security laws or regulations; 2 as expressly', 38418:'set forth in this contract; or 3 if the contractor receives or is given access to data necessary for the', 38419:'performance of this contract that contain restrictive markings, the contractor shall treat the data in accordance with such markings unless', 38420:'specifically authorized otherwisein writingby the contracting officer. e unauthorized marking of data. 1 notwithstanding any other provisions of this contract', 38421:'concerning inspection or acceptance, if any data delivered under this contract are marked with the notices specified in paragraph g3', 38422:'or g 4 if included in this clause, and use of the notices is not authorized by this clause, or', 38423:'if the data bears any other restrictive or limiting markings not authorized by this contract, the contracting officer may at', 38424:'any timeeither return the data to the contractor, or cancel or ignore the markings. however, pursuant to 41 u.s.c. 4703,', 38425:'the following procedures shall apply prior to canceling or ignoring the markings. ithe contractingofficer willmakewritten inquiryto the contractoraffording the contractor', 38426:'60 days fromreceipt of the inquiry to provide written justification to substantiate the propriety of the markings; ii if the', 38427:'contractor fails to respond or fails to provide written justification to substantiate the propriety of the markings within the 60day', 38428:'period or a longer time approved in writing bythe contracting officerforgood cause shown, the government shall have the right to', 38429:'cancel or ignore the markings at any time after said period and the data will no longer be made subject', 38430:'to any disclosure prohibitions. iii if the contractor provides written justification to substantiate the propriety of the markings within the', 38431:'period set in paragraph e1i of this clause, the contracting officer willconsidersuch writtenjustification and determinewhether or notthe markings are to', 38432:'be cancelled or ignored. if the contracting officer determines that the markings are authorized, thecontractor will be so notified in', 38433:'writing. if the contracting officer determines, withconcurrence of the head of the contracting activity, that the markings are not authorized,', 38434:'the contracting officer will furnish the contractor a written determination, which determination will become the final agency decision regarding the', 38435:'appropriateness of the markings unless thecontractor filessuitin a court of competentjurisdictionwithin 90 days of receipt ofthe contracting officer’s decision. the', 38436:'government will continue to abide by the markings under this paragraph e1iii until final resolution of the matter either by', 38437:'the contracting officer’sdeterminationbecoming final in which instance the government will thereafter have the right to cancel or ignore the markings', 38438:'at any time and the data will no longer be made subject to any disclosure prohibitions, or by final disposition', 38439:'of the matter by court decision if suit is filed. 2 the time limits in the procedures set forth in', 38440:'paragraph e1 of this clause may be modified in accordance with agency regulations implementing the freedom of information act 5', 38441:'u.s.c. 552 if necessary to respond to a request thereunder. 3 except tothe extent the government’s actionoccurs as the result', 38442:'of final disposition of the matter by a court of competent jurisdiction, the contractor is not precluded by paragraph e', 38443:'of the clause from bringing a claim, in accordance with the disputes clause of this contract, that may arise as', 38444:'the result of the government removing or ignoring authorized markings on data delivered under this contract. f omitted or incorrect', 38445:'markings. 1 data delivered to the government without any restrictive markings shall be deemed to have been furnished with unlimited', 38446:'rights. the government is not liable for the disclosure, use, or reproduction of such data. 2 if the unmarked data', 38447:'has not been disclosed without restriction outside the government, the contractor may request, within 6 months or a longertime approved', 38448:'by the contractingofficer in writing for goodcause shown after delivery ofthe data, permissionto have authorized notices placed on thedata at', 38449:'the contractor’s expense. the contracting officer mayagree to do so if the contractor i identifies the data to which the', 38450:'omitted notice is to be applied; ii demonstrates that the omission of the notice was inadvertent; 52.2322 subpart 52.2 text', 38451:'of provisions and clauses 52.22714 iii establishes that the proposed notice is authorized; and iv acknowledges that the government has', 38452:'no liability for the disclosure, use, or reproduction of any data made prior to the addition of the notice or', 38453:'resulting from the omission of the notice. 3 if data has been marked with an incorrect notice, thecontracting officer may', 38454:'ipermit correctionof the notice at the contractor’s expense if the contractor identifies the data and demonstrates that the correct notice', 38455:'is authorized; or ii correct any incorrect notices. g protection of limited rights data and restricted computer software. 1 the', 38456:'contractor may withhold from delivery qualifying limited rights data or restricted computer software that are not data identified in paragraphs', 38457:'b1i, ii, and iii of this clause. as a condition to this withholding, the contractor shall i identify the data', 38458:'being withheld; and ii furnish form, fit, and function data instead. 2 limited rights data that are formatted as a', 38459:'computer database for delivery to the government shall be treated as limited rights data and not restricted computer software. 3', 38460:'[reserved] h subcontracting. the contractor shall obtain from its subcontractors all data and rights therein necessary to fulfill thecontractor’s obligations', 38461:'tothe government underthis contract. if a subcontractor refuses to accept terms affording the government those rights, thecontractor shall promptlynotify the', 38462:'contracting officer ofthe refusal andshallnot proceed with the subcontract award withoutauthorizationin writing from the contractingofficer. i relationship to patents or', 38463:'other rights. nothing contained in this clause shall imply a license to the government under any patent orbe construedas affecting', 38464:'the scope of any license or other right otherwise granted to the government. end of clause alternate i dec 2007.', 38465:'as prescribed in 27.409 b2, substitute the following definition for limited rights data in paragraph a of the basic clause:', 38466:'limited rights data means data, other than computer software, developed at private expense that embody trade secrets or are commercial', 38467:'or financial and confidential or privileged. alternate ii dec 2007. as prescribed in 27.409b3, insert the following paragraph g3 in', 38468:'the basic clause: g3 notwithstanding paragraph g1 of this clause, the contract may identify and specify the delivery of limited', 38469:'rights data, orthe contracting officermay require bywritten request the delivery of limited rights data that hasbeenwithheld or would otherwise be', 38470:'entitled to be withheld. if deliveryof that data is required, the contractorshallaffix thefollowing limited rights notice to the data and', 38471:'the government will treat the data, subject to the provisions of paragraphs e and f of this clause, in accordance', 38472:'with the notice: limited rights notice dec 2007 a these data are submitted with limited rights under government contract no.', 38473:'and subcontract , if appropriate. these data may be reproduced and used by the government with the express limitation that', 38474:'they will not, without written permission of the contractor, be used for purposes of manufacture nor disclosed outside the government;', 38475:'except that the government may disclose these data outside the government for the following purposes, if any; provided that the', 38476:'government makes such disclosure subject to prohibition against further use and disclosure: [agencies may list additional purposes as set forth', 38477:'in 27.4042c1 or if none, so state.] b this notice shall be marked on any reproduction of these data, in', 38478:'whole or in part. end of notice alternate iii dec 2007. as prescribed in 27.409b4, insert the following paragraph g4', 38479:'in the basic clause: g4i notwithstanding paragraph g1 of this clause, the contract may identify and specify the delivery of', 38480:'restricted computer software, or the contracting officer may require by written request the delivery of restricted computer software that has', 38481:'been withheld or would otherwise be entitled to be withheld. if delivery of that computer software is required, the contractor', 38482:'shall affix the following restricted rights notice to the computer softwareandthe government will treat the computer software, subject to paragraphs', 38483:'e and f of this clause, in accordance with the notice: restricted rights notice dec 2007 52.2323 52.22715 federal acquisition', 38484:'regulation a this computer software is submitted with restricted rights under government contract no. and subcontract , if appropriate. it', 38485:'may not be used, reproduced, or disclosed by the government except as provided in paragraph b of this notice or', 38486:'as otherwise expressly stated in the contract. b this computer software may be 1 used or copied for use with', 38487:'the computers for which it was acquired, including use at any government installation to which the computers may be transferred;', 38488:'2 used or copied for use with a backup computer if any computer for which it was acquired is inoperative;', 38489:'3 reproduced for safekeeping archives or backup purposes; 4 modified, adapted, or combined with other computer software, provided that the', 38490:'modified, adapted, or combined portions of the derivative software incorporating any of the delivered, restricted computer software shall be subject', 38491:'to the same restricted rights; 5 disclosed to and reproduced for use by support service contractors or their subcontractors in', 38492:'accordance with paragraphs b1 through 4 of this notice; and 6 used or copied for use with areplacement computer. c', 38493:'notwithstanding the foregoing, if this computer software is copyrighted computer software, it is licensed to the government with the minimum', 38494:'rights set forth in paragraph b of this notice. d any other rights or limitations regarding the use, duplication, or', 38495:'disclosure of this computer software are to be expressly stated in, or incorporated in, the contract. e this notice shall', 38496:'be marked on any reproduction of this computer software, in whole or in part. end of notice ii where it', 38497:'is impractical to include the restricted rights notice on restricted computer software, the following short form notice may be used', 38498:'instead: restricted rights notice short form jun 1987 use, reproduction, or disclosure is subject to restrictions set forth in contract', 38499:'no. and subcontract, if appropriate with name of contractor and subcontractor. end of notice iii if restricted computer software is', 38500:'delivered with the copyright notice of 17 u.s.c. 401, it will be presumed to be licensed to the government without', 38501:'disclosure prohibitions, with the minimum rights set forth in paragraph b of this clause. alternate iv dec 2007. as prescribed', 38502:'in 27.409b5, substitute the following paragraph c1 for paragraph c1 of the basic clause: c copyright1 data first produced in', 38503:'the performance of the contract. except as otherwise specifically provided in this contract, the contractor may assert copyright in any', 38504:'data first produced in the performance of this contract. when asserting copyright, the contractor shall affix the applicable copyright notice', 38505:'of 17 u.s.c. 401 or 402, and an acknowledgment of government sponsorship including contract number, to the data when such', 38506:'data are delivered to the government, as well as whenthe data are publishedor deposited for registrationas apublished work in the', 38507:'u.s. copyright office. for data other than computer software, the contractor grants to the government, and others acting on its', 38508:'behalf, a paidup, nonexclusive, irrevocable, worldwide license for all such data to reproduce, prepare derivative works, distribute copies to the', 38509:'public, and perform publicly and display publicly, byor on behalf of thegovernment. for computer software, the contractor grants to the', 38510:'government and others acting on its behalf, a paidup, nonexclusive, irrevocable, worldwide license for all such computer software to reproduce,', 38511:'prepare derivative works, and perform publicly and display publicly but not to distribute copies to the public, by or on', 38512:'behalf of the government. alternate v dec 2007. as prescribed in 27.409b6, add the following paragraph j to the basic', 38513:'clause: j the contractor agrees, except as may be otherwise specified in this contract for specific data deliverables listed as', 38514:'not subject to this paragraph, thatthe contracting officermay, up to three yearsafter acceptanceof all deliverablesunder this contract, inspect at the', 38515:'contractor’s facilityany data withheld pursuant toparagraph g1 of this clause, for purposes of verifying the contractor’s assertion of limited rights', 38516:'or restricted rights status of thedata or for evaluating work performance. when the contractor whose data areto beinspected demonstrates to', 38517:'the contracting officer that there would be a possible conflict of interest if aparticular representative made the inspection, the contractingofficer', 38518:'shall designate an alternate inspector. 52.22715 representation of limited rights data and restricted computer software. as prescribed in 27.409c, insert', 38519:'the following provision: 52.2324 subpart 52.2 text of provisions and clauses 52.22717 representation of limited rights data and restricted computer', 38520:'software dec 2007 a this solicitation sets forth the government’s known deliveryrequirements for data as defined in the clause at', 38521:'52.22714, rights in datageneral. any resulting contract may also provide the government the option to order additional data under the', 38522:'additional data requirements clause at 52.22716, if included in the contract. any data delivered under the resulting contract will be', 38523:'subject to the rights in datageneral clause at 52.22714 included in this contract. under the latter clause, a contractor may', 38524:'withhold from delivery data that qualify as limited rights data or restricted computer software, and deliver form, fit, and function', 38525:'data instead. the latter clause also may be used with its alternates ii and/or iii to obtain delivery of limited', 38526:'rights data or restricted computer software, marked with limited rights or restricted rights notices, as appropriate. in addition, use of', 38527:'alternate v with this latter clause provides the government the right to inspect such data at thecontractor’s facility. b by', 38528:'completing the remainder of thisparagraph, theofferor representsthat it has reviewed the requirements for the delivery of technical data or computer', 38529:'software and states [offeror check appropriate block]□ none of the data proposed for fulfilling the data delivery requirements qualifies as', 38530:'limited rights data or restricted computer software; or □ data proposed for fulfilling the data delivery requirements qualify as limited', 38531:'rights data or restricted computer software and are identified as follows: c any identification of limited rights data or restrictedcomputer', 38532:'software in the offeror’sresponse is not determinative of the status ofthe data should a contract be awarded to the offeror.', 38533:'end of provision 52.22716 additionaldatarequirements. as prescribed in 27.409d, insert the following clause: additional data requirements june 1987 a in', 38534:'addition to the data as defined in the clause at 52.22714, rights in datageneral clause or other equivalent includedin this', 38535:'contract specified elsewhere in this contract to be delivered,the contracting officermay, at any time during contract performance or within a', 38536:'period of 3 years after acceptance of all items to be delivered under this contract, order any data first produced', 38537:'or specifically used in the performance of this contract. b the rights in datageneral clause or other equivalent included in', 38538:'this contract is applicable to all data ordered under this additional data requirements clause. nothing contained in this clause shall', 38539:'require the contractor to deliver any data the withholding of which is authorized by the rights in datageneral or other', 38540:'equivalent clause of this contract, or data which are specifically identified in this contract as not subject to this clause.', 38541:'c when data are to be delivered under this clause, the contractor will be compensated for converting the data into', 38542:'the prescribed form, for reproduction, andfordelivery. d the contracting officer may release the contractor from the requirements of this clause', 38543:'for specifically identified data items at any time during the 3year period set forth in paragraph a of this clause.', 38544:'end of clause 52.22717 rights in dataspecial works. as prescribed in 27.409e, insert the following clause: rights in dataspecial works', 38545:'dec 2007 a definitions. as used in this clause52.2 325 52.22718 federal acquisition regulation data means recorded information, regardless of', 38546:'form or the media on which it may be recorded. the term includes technical data and computer software. the term', 38547:'does not include information incidental to contract administration, such as financial, administrative, cost or pricing, or management information. unlimited rights', 38548:'means the rights of the government to use, disclose, reproduce, prepare derivative works, distribute copiesto the public, andperformpublicly and display', 38549:'publicly, in anymanner and for any purpose,and to have orpermit others to do so. b allocation of rights. 1 the', 38550:'government shall have i unlimited rights in all data delivered under this contract, and in all data first produced in', 38551:'the performance of this contract, except as provided in paragraph c of this clause. ii the right to limit assertion', 38552:'of copyright in data first produced in the performance of this contract, and to obtain assignment of copyright in that', 38553:'data, in accordance with paragraph c1 of this clause. iii the right to limit the release and use of certain', 38554:'data in accordance with paragraph d of this clause. 2 the contractor shall have, to the extent permission is granted', 38555:'in accordance with paragraph c1 of this clause, the right to assert claim to copyright subsisting in data first produced', 38556:'in the performance of this contract. c copyright1 data first produced in the performance of this contract. i the contractor', 38557:'shall not assert or authorize others to assert any claim to copyright subsisting in any data first produced in the', 38558:'performance of this contract without prior written permission of the contractingofficer. when copyright is asserted, the contractorshallaffix theappropriate copyright notice', 38559:'of 17 u.s.c. 401 or 402 and acknowledgment of government sponsorship including contract number to the data when delivered to', 38560:'the government, as well as when the data are published or deposited for registration as a published work in theu.s.', 38561:'copyright office. the contractor grants to the government, and others acting on itsbehalf, a paidup, nonexclusive, irrevocable, worldwide license for', 38562:'all delivered data to reproduce, prepare derivative works, distribute copies to the public, and perform publicly and display publicly,by or', 38563:'on behalf of the government. ii if the government desires to obtain copyright in data first produced in the performance', 38564:'of this contract and permission has not been granted as set forth in paragraph c1i of this clause, the contracting', 38565:'officer shall directthe contractor to assign with or without registration, or obtain the assignment of, the copyright to the government', 38566:'or its designated assignee. 2 data not first produced in the performance of this contract. the contractor shall not, without', 38567:'prior written permission ofthe contracting officer, incorporate indata deliveredunder this contract any data not firstproduced in the performance of this', 38568:'contract and that contain the copyright notice of 17 u.s.c. 401 or 402, unless the contractor identifies such data and', 38569:'grants to the government, or acquires on its behalf, a license of the same scope as set forth in paragraph', 38570:'c1 of this clause. d release and use restrictions. except as otherwise specifically provided for in this contract, the contractor', 38571:'shall not use, release, reproduce, distribute, or publish any data first produced in the performance of this contract, nor authorize', 38572:'others to do so, without written permission of the contractingofficer. e indemnity. the contractor shall indemnify thegovernment and its officers,agents,', 38573:'and employees acting for the government against any liability, including costsand expenses, incurred as the resultof the violation of tradesecrets,', 38574:'copyrights, orright of privacy or publicity, arising outof the creation, delivery, publication, oruse ofany data furnished under this contract; or', 38575:'any libelous or other unlawful matter contained in such data. the provisions of this paragraph do not apply unless the', 38576:'government provides noticeto the contractoras soon as practicable of any claim or suit, affords the contractor an opportunity under applicable', 38577:'laws, rules, or regulations to participate in the defense of the claim or suit, and obtains the contractor’s consentto the', 38578:'settlement of any claim orsuit otherthan as required by final decreeof acourtof competent jurisdiction; and these provisions do not apply', 38579:'to material furnished to the contractor by the government and incorporated in data to which this clause applies. end of', 38580:'clause 52.22718 rights in dataexisting works. as prescribed in 27.409f, insert the following clause: rights in dataexisting worksdec 2007 a', 38581:'except as otherwise provided in this contract, the contractor grants to the government, and others acting on its behalf, a', 38582:'paidup nonexclusive, irrevocable, worldwide license to reproduce, prepare derivative works, and perform publicly and 52.2326 subpart 52.2 text of provisions', 38583:'and clauses 52.22720 display publicly,by or on behalf of the government, for allthe material or subject mattercalled for underthiscontract, orfor', 38584:'which this clause is specifically made applicable. b the contractor shall indemnify the government and its officers, agents, and employees', 38585:'acting for the government against any liability, including costsandexpenses, incurred as the resultof 1 the violation of trade secrets,copyrights, or', 38586:'right of privacy or publicity, arising out of the creation,delivery,publication or use of any data furnished under this contract; or', 38587:'2 any libelous or other unlawful matter contained in such data. the provisions of this paragraph do not apply unless', 38588:'thegovernment provides noticeto thecontractor assoon as practicable of any claim or suit, affords thecontractor an opportunity under applicable laws, rules,', 38589:'or regulations to participate in the defense of the claim or suit, and obtains the contractor’sconsent to the settlementof any', 38590:'claimor suit other than as required byfinal decree of a court of competent jurisdiction; and do not apply to material', 38591:'furnished to the contractor by the government and incorporated in data to which this clause applies. end of clause 52.22719', 38592:'commercial computer softwarelicense. as prescribed in 27.409g, insert the following clause: commercial computer software license dec 2007 a notwithstanding any', 38593:'contraryprovisionscontained inthe contractor’sstandard commercial license or lease agreement, the contractor agrees that the government will have the rights that are', 38594:'set forth in paragraph b of this clause to use, duplicate or disclose any commercial computer software delivered under this', 38595:'contract. the terms and provisions of this contract shall comply with federal laws and the federal acquisition regulation. b 1', 38596:'the commercial computer software delivered under this contract may not be used, reproduced, or disclosed by the government except as', 38597:'provided in paragraph b2 of this clause or as expressly stated otherwise in this contract. 2 the commercial computer software', 38598:'may be i used or copied for use with the computers for which it was acquired, including use at any', 38599:'government installation to which the computers may be transferred; ii used or copied for use with a backup computer if', 38600:'any computer for which it was acquired is inoperative; iii reproduced for safekeeping archives or backup purposes; iv modified, adapted,', 38601:'or combined with other computer software, provided that the modified, adapted, or combined portions of the derivative software incorporating any', 38602:'of the delivered, commercial computer software shall be subject to same restrictions set forth in this contract; v disclosed to', 38603:'and reproduced for use by support service contractors or their subcontractors, subject to the same restrictions set forth in this', 38604:'contract; and vi used or copied for use with areplacement computer. 3 if the commercial computer software is otherwise available', 38605:'without disclosure restrictions, the contractor licenses it to the government without disclosure restrictions. c thecontractor shall affix a notice substantially', 38606:'asfollows to any commercialcomputer software delivered under this contract: noticenotwithstanding any other lease or license agreement that may pertain to,', 38607:'or accompany the delivery of, this computer software, the rights of the government regarding its use, reproduction and disclosure are', 38608:'as set forth in government contract no.. end of clause 52.22720 rights in datasbir program. as prescribed in 27.409h, insert', 38609:'the following clause: rights in datasbir program may 2014 a definitions. as used in this clause52.2 327 52.22720 federal acquisition', 38610:'regulation computer database or database means a collection of recorded information in a form capable of, and for the purpose', 38611:'of, being stored in, processed, and operated on bya computer. the term does not include computer software. computer software 1', 38612:'means. i computer programs that comprise a series of instructions, rules, routines, or statements, regardless of the media in which', 38613:'recorded, that allow or cause a computer to perform a specific operation or series of operations; and ii recorded information', 38614:'comprising source code listings, design details, algorithms, processes, flow charts, formulas, and related material that would enable the computer program', 38615:'to be produced, created, or compiled. 2 does not include computer databases or computer software documentation. computer software documentation means', 38616:'owner’s manuals,user’s manuals, installation instructions,operating instructions, and other similar items, regardless of storage medium, that explain the capabilities of the', 38617:'computer software or provide instructions for using the software. data means recorded information, regardless of form or the media on', 38618:'which it may be recorded. the term includes technical data and computer software. the term does not include information incidental', 38619:'to contract administration, such as financial, administrative, cost or pricing or management information. form, fit, and function data means data', 38620:'relating to items,components, or processes that are sufficientto enable physical and functionalinterchangeability, and data identifying source, size, configuration,matingand attachmentcharacteristics, functional', 38621:'characteristics, and performance requirements. for computer software it means data identifying source, functional characteristics, and performance requirements but specifically excludes', 38622:'the source code, algorithms, processes, formulas, and flow charts of the software. limited rights data means data other than computer', 38623:'software developed at private expense that embody trade secrets or are commercial or financial and confidential or privileged. restricted computer', 38624:'software means computer software developed at private expense and that is a trade secret, is commercial or financial and confidential', 38625:'or privileged, or is copyrighted computer software, including minor modifications of the computer software. sbir data means data first produced', 38626:'by a contractor that is a small business concern in performance of a small business innovation research contract issued under', 38627:'the authority of 15 u.s.c. 638, which data are not generally known, and which data without obligation as to its', 38628:'confidentiality have not been made available to others by the contractor or are not already available to the government. sbir', 38629:'rights means the rights in sbir data set forth in the sbir rights notice of paragraph d of this clause.', 38630:'technical data means recorded information regardless of the form or method of the recording of a scientific or technical nature', 38631:'including computer databases and computer software documentation. this term does not include computer software or financial, administrative, cost or pricing,', 38632:'or management data or other information incidental to contract administration. the term includes recorded information of a scientific or technical', 38633:'nature that is included in computer databases. see 41 u.s.c. 116. unlimited rights means the right of the government to', 38634:'use, disclose, reproduce, prepare derivative works, distribute copies to the public, and perform publicly and display publicly, in any mannerandforany', 38635:'purpose whatsoever, and to have or permit others to do so. b allocation of rights. 1 except as provided in', 38636:'paragraph c of this clause regarding copyright, the government shall have unlimited rights in i data specifically identified in this', 38637:'contract as data to be delivered without restriction; ii form, fit, and function data delivered under this contract; iii data', 38638:'delivered under this contract except for restricted computer software that constitute manuals or instructional and training material for installation, operation,', 38639:'or routine maintenance and repair of items, components, or processes delivered or furnished for use under this contract; and iv', 38640:'all other data delivered under this contract unless provided otherwise for sbir data in accordance with paragraph d of this', 38641:'clause or for limited rights data or restricted computer software in accordance with paragraph f of this clause. 2 the', 38642:'contractor shall have the right to i assert copyright in data first produced in the performance of this contract to', 38643:'the extent provided in paragraph c 1 of this clause; ii protect sbir rights in sbir data delivered under this', 38644:'contract in the manner and to the extent provided in paragraph d of this clause; 52.2328 subpart 52.2 text of', 38645:'provisions and clauses 52.22720 iii substantiate use of, add, or correct sbir rights or copyright notices and to take other', 38646:'appropriate action, in accordance with paragraph e of this clause; and iv withhold from deliverythose datawhich are limited rights data', 38647:'or restricted computersoftware to the extent provided in paragraph f of this clause. c copyright1 data first produced in the', 38648:'performance of this contract. i except as otherwise specifically provided in this contract, the contractor may assert copyright subsisting in', 38649:'any data first produced in the performance of this contract. iiwhen asserting copyright, the contractor shall affix the applicable copyright', 38650:'notice of 17 u.s.c. 401 or 402 and an acknowledgment of government sponsorship including contract number. iii for data other', 38651:'than computer software, the contractor grants to the government, and others acting on its behalf, a paidup nonexclusive, irrevocable, worldwide', 38652:'license to reproduce, prepare derivative works, distribute copies to the public, and perform publicly and display publicly, by or on', 38653:'behalf of the government. for computer software,the contractor grants to the government, and others acting on its behalf, a paidup,', 38654:'nonexclusive, irrevocable, worldwide license in such copyrighted computer software to reproduce,prepare derivativeworks, and perform publicly and display publicly, byor on', 38655:'behalf of the government. 2 data not first produced in the performance of this contract. the contractor shall not, without', 38656:'prior written permission ofthe contracting officer, incorporate indata deliveredunder this contract any data that are not firstproduced in the performance', 38657:'of this contract unless the contractor i identifies such data and ii grants to the government, or acquires on its', 38658:'behalf, a license of the same scope as set forth in paragraph c1 of this clause. 3 removal of copyright', 38659:'notices. the government will not remove any copyright notices placed on data pursuant to this paragraph c, and will include', 38660:'such notices on all reproductions of the data. d rights to sbir data. 1thecontractorisauthorizedtoaffixthefollowing sbirrightsnotice tosbirdata delivered under this contract', 38661:'and the government will treat the data, subject to the provisions of paragraphs e and f of this clause, in', 38662:'accordance with the notice: sbir rights notice dec 2007 these sbir data are furnished with sbir rights under contract no.', 38663:'and subcontract , if appropriate. for a period of 4 years,unlessextended in accordancewith far 27.409h, after acceptance of all items', 38664:'to be delivered under this contract, the government will usethese data for government purposes only, and theyshallnot be disclosed outside', 38665:'the government including disclosure for procurement purposes during such period without permission of the contractor, except that, subject to the', 38666:'foregoing use and disclosure prohibitions, these data may be disclosed for use by support contractors. after the protection period, the', 38667:'government has a paidup license to use, and to authorize others to use on its behalf, these data for government', 38668:'purposes, but is relieved of all disclosure prohibitions and assumes no liability for unauthorized use of these data bythirdparties. this', 38669:'notice shall beaffixedto any reproductions of these data, in whole orin part. end of notice 2 the government’s sole obligation', 38670:'with respect to any sbir data shall be as setforth in this paragraph d. e omitted or incorrect markings. 1', 38671:'data delivered to the government without any notice authorized by paragraph d of this clause shall be deemed to have', 38672:'been furnished with unlimited rights. the government assumes no liability for the disclosure, use, or reproduction of such data. 2', 38673:'if the unmarked data has not been disclosed without restriction outside the government, the contractor may request, within 6 months', 38674:'or a longertime approved by the contractingofficer in writing for goodcause shown after delivery ofthe data, permissionto have authorized notices', 38675:'placed on thedata at the contractor’s expense, and the contracting officer may agree to do so if the contractor i', 38676:'identifies the data to which the omitted notice is to be applied; ii demonstrates that the omission of the notice', 38677:'was inadvertent; iii establishes that the use of the proposed notice is authorized; and iv acknowledges that the government has', 38678:'no liability with respect to the disclosure or use of any such data made prior to the addition of the', 38679:'notice or resulting from the omission of the notice. 3 if the data has been marked withan incorrectnotice,the contracting officermay', 38680:'ipermit correctionof the notice at the contractor’s expense, if the contractor identifiesthe dataanddemonstrates that the correct notice is authorized; or', 38681:'ii correct any incorrect notices. 52.2329 52.22721 federal acquisition regulation f protection of limited rights data and restricted computer software.', 38682:'the contractor may withhold from delivery qualifying limited rights data and restricted computer software that are not identified in paragraphs', 38683:'b1i, ii, and iii of this clause. as a condition to this withholding, the contractor shall identify the data being', 38684:'withheld, and furnish form, fit, and function data instead. g subcontracting. the contractor shall obtain from its subcontractors all data', 38685:'and rights therein necessary to fulfill thecontractor’s obligations tothe government underthis contract. if a subcontractor refuses to accept terms affording', 38686:'the government those rights, thecontractor shall promptlynotify the contracting officer ofthe refusal andnot proceed with the subcontract award without furtherauthorizationin', 38687:'writingfrom the contractingofficer. h relationship to patents. nothing contained in this clause shall imply a license to the government under', 38688:'any patent or beconstrued as affecting the scope ofanylicense or otherright otherwise granted to the government. end of clause 52.22721', 38689:'technical data declaration, revision, and withholdingof paymentmajorsystems. as prescribed in 27.409j, insert the following clause: technical data declaration, revision, and', 38690:'withholding of paymentmajor systems may 2014 a scope of declaration. the contractor shall provide, in accordance with 41 u.s.c. 2302e7,', 38691:'the following declaration with respect to all technical data that relate to a major system and that are delivered or', 38692:'required to be delivered under this contract or that are delivered within 3 years after acceptance of all items other', 38693:'than technical data delivered under this contract unless a differentperiod isset forthin thecontract. thecontracting officer may release the contractor from', 38694:'all or part of the requirements of this clause for specifically identified technical data items at any time during the', 38695:'period covered by this clause. btechnicaldatadeclaration. 1 all technical data that are subject to this clause shall be accompanied by', 38696:'the following declaration upon delivery: technical data declaration jan 1997 the contractor, , hereby declares that, to the best of', 38697:'its knowledge and belief, the technical data delivered herewith under government contract no. and subcontract , if appropriate are complete,', 38698:'accurate, and comply with the requirements of the contract concerning such technical data. end of declaration 2 the government may,', 38699:'at any time during theperiod covered bythis clause, directcorrection of any deficiencies that are not in compliance with contract requirements.', 38700:'thecorrections shall bemade atthe expense of the contractor. unauthorized markings on data shall not be considered a deficiency for the', 38701:'purpose of this clause, but will be treated in accordance with paragraph e of the rights in datageneral clause included', 38702:'in this contract. c technical data revision. the contractoralsoshall, at the request of the contractingofficer, revise technical data that aresubject', 38703:'to this clauseto reflect engineering design changes madeduring the performance of this contract and affecting the form, fit, and function', 38704:'of any item other than technical data delivered under this contract. the contractor may submit a request for an equitable', 38705:'adjustment to the terms and conditions of this contract for any revisions to technical data made pursuant to this paragraph.', 38706:'dwithholdingofpayment. 1atanytimebeforefinalpaymentunderthiscontractthecontractingofficermay withhold payment as a reserve up to an amount not exceeding $100,000 or 5 percent of the amount', 38707:'of this contract, whichever is less, if the contractor fails to i make timely delivery of the technical data; ii', 38708:'provide the declaration required by paragraph b1 of this clause; iii make the corrections required by paragraph b2 of this', 38709:'clause; or iv make revisions requested under paragraph c of this clause. 2 the contracting officer may withhold the reserveuntil', 38710:'thecontractor has complied withthe direction or requests of the contracting officer ordeterminesthat the deficiencies relating to delivered data, arose out', 38711:'of causes beyond the control of the contractor and without thefault or negligence of the contractor. 52.2330 subpart 52.2 text', 38712:'of provisions and clauses 52.22723 3 the withholding of any reserve under this clause, or the subsequent payment of the', 38713:'reserve, shall not be construed as a waiver of any government rights. end of clause 52.22722 major systemminimum rights. as', 38714:'prescribed in 27.409k, insert the following clause: major systemminimum rights june 1987 notwithstanding any other provision of this contract, the', 38715:'government shall have unlimited rights in any technical data, other than computer software, developed in the performance of this contract', 38716:'and relating to a major system or supplies for a major system procured or to be procured by the government,', 38717:'to the extent that delivery of such technical data is required as an element of performance under this contract. the', 38718:'rights of the government under this clause are in addition to and not in lieu of its rights under the', 38719:'other provisions of this contract. end of clause 52.22723 rights to proposaldata technical. as prescribed in 27.409l, insert the following', 38720:'clause: rights to proposal data technical june 1987 except for data contained on pages , it is agreed that as', 38721:'a condition of award of this contract, and notwithstanding the conditions of any notice appearing thereon, the government shall have', 38722:'unlimited rights as defined in the rights in data general clause contained in this contract in and to the technical', 38723:'data contained in the proposal dated , upon which this contract is based. end of clause 52.2331 this page intentionally', 38724:'left blank. 52.2332 subpart 52.2 text of provisions and clauses 52.2283 52.228[reserved] 52.2281 bid guarantee. as prescribed in 28.1012, insert', 38725:'a provision or clause substantially as follows: bid guarantee sept 1996 a failure to furnish a bid guarantee in the', 38726:'proper form and amount, by the time set for opening of bids, may be cause for rejection of the bid.', 38727:'b the bidder shall furnish a bid guarantee in the form of a firm commitment, e.g., bid bond supported by', 38728:'good and sufficient surety or sureties acceptable to the government, postal money order,certifiedcheck, cashier’s check, irrevocable letter of credit, or,', 38729:'under treasury department regulations,certain bondsor notes of the unitedstates. the contracting officer will return bid guarantees,other thanbid bonds 1 to', 38730:'unsuccessful bidders as soon aspracticable afterthe opening ofbids; and 2 to the successful bidder upon execution of contractual documents and', 38731:'bonds including any necessarycoinsurance or reinsurance agreements, as required by the bid as accepted. c the amount of the bid', 38732:'guarantee shall be percent of the bid price or $, whichever is less. d if the successful bidder, uponacceptance of', 38733:'its bid by the government within the periodspecified for acceptance, fails to executeallcontractual documentsor furnish executed bonds within 10 days', 38734:'after receipt ofthe forms by the bidder, the contracting officermay terminate the contract for default. e in the event the', 38735:'contract is terminated for default, the bidder is liable for any cost of acquiring the work that exceeds theamount of', 38736:'its bid, and thebid guarantee is availableto offset thedifference. end of clause 52.2282additional bondsecurity. as prescribed in 28.1064a, insert the', 38737:'following clause: additional bond security oct 1997 the contractor shall promptly furnish additional security required to protect the government and', 38738:'persons supplying labor or materials under this contract if a any surety uponanybond, or issuing financial institution for other security,', 38739:'furnishedwith this contract becomes unacceptable to the government; b any surety fails to furnish reports on its financial condition as', 38740:'required by the government; c the contract price is increased so that the penal sum of any bond becomes inadequate', 38741:'in the opinion of the contracting officer; or d an irrevocable letterof credit ilcused as securitywill expirebefore theend of the', 38742:'period of requiredsecurity. if the contractor does not furnish an acceptable extension or replacement ilc, or other acceptable substitute, at', 38743:'least 30 days before anilc’s scheduled expiration, the contracting officer has the right to immediately drawon the ilc. end of', 38744:'clause 52.2283workers’ compensationinsurance defense base act. as prescribed in 28.309a, insert the following clause: workers’ compensation insurance defense base act', 38745:'jul 2014 a the contractor shall 1 before commencing performance under this contract, establish provisions to provide for the payment', 38746:'of disability compensation and medical benefits to covered employees and death benefits to their eligible survivors, by purchasing workers’ compensation', 38747:'insurance or qualifying asa selfinsurer under the longshore andharbor workers’ compensation act 52.2333 52.2284 federal acquisition regulation 33 u.s.c. 932', 38748:'as extended by the defense base act 42 u.s.c.1651, etseq., and continue to maintain provisions to provide such defense base', 38749:'act benefits until contract performance is completed; 2 within ten days of an employee’s injury or deathor fromthe date the', 38750:'contractor hasknowledge of theinjury or death, submit form ls202 employee’sfirst report of injury or occupational illness to the department of', 38751:'laborin accordance with thelongshoreand harbor workers’ compensation act 33 u.s.c. 930a, 20 cfr 702.201 to 702.203; 3 pay all compensation', 38752:'due for disability or death within the time frames required by the longshore and harbor workers’ compensationact33 u.s.c. 914, 20', 38753:'cfr 702.231 and 703.232; 4 provide for medical careas required by thelongshore and harborworkers’ compensation act 33 u.s.c. 907, 20', 38754:'cfr 702.402 and 702.419; 5 if controverting the right to compensation, submit form ls207 notice of controversion of right to', 38755:'compensation to the departmentof labor in accordance with the longshoreandharbor workers’ compensation act 33 u.s.c. 914d, 20 cfr 702.251; 6', 38756:'immediately upon making the first payment of compensation in any case, submit form ls206 payment of compensation without award tothe', 38757:'department of labor in accordance with the longshore and harborworkers’ compensation act 33 u.s.c. 914c, 20 cfr 702.234; 7 when', 38758:'payments are suspended or when making the final payment, submit form ls208 notice of final payment or suspension of compensation', 38759:'payments to the department of labor in accordance with the longshore and harbor workers’ compensationact33 u.s.c. 914c and g, 20', 38760:'cfr 702.234 and 702.235; and 8 adhere toallother provisions ofthe longshore and harbor workers’ compensationactas extended by the defense base', 38761:'act, and department of labor regulations at 20 cfr parts 701 to 704. b for additional information on the longshore', 38762:'and harbor workers’ compensation act requirements see http:// www.dol.gov/owcp/dlhwc/lsdba.htm. c the contractor shall insert the substance of this clause, including', 38763:'this paragraph c, in all subcontracts to which the defense base act applies. end of clause 52.2284workers’ compensationand warhazard insurance', 38764:'overseas. as prescribed in 28.309b, insert the following clause: workers’ compensation and warhazard insurance overseas apr 1984 a this paragraph', 38765:'appliesif the contractoremploysanypersonwho, but for a waiver grantedby the secretary oflabor, would be subject to workers’ compensation insurance under the', 38766:'defense base act 42 u.s.c.1651, etseq.. on behalf of employees for whom the applicability of the defense base act has', 38767:'been waived, the contractor shall 1 provide, before commencing performance under this contract, at least that workers’ compensation insurance or', 38768:'the equivalent as the laws of the country of which these employees are nationals may require, and 2 continue to', 38769:'maintain it until performance is completed. the contractor shall insert, in all subcontracts under this contract to which the defense', 38770:'base act would apply but for the waiver, a clause similar to this paragrapha including this sentence imposing upon those', 38771:'subcontractors this requirement to provide such workers’ compensation insurance coverage. b this paragraph applies if the contractor or any subcontractor', 38772:'under this contract employs any person who, but for a waiver granted by the secretary of labor, would be subject', 38773:'tothe war hazards compensation act 42 u.s.c.1701, etseq.. on behalf of employees for whom theapplicability ofthe defensebase act and hence', 38774:'thatof the war hazards compensation act has been waived, the contractor shall, subject to reimbursement as provided elsewhere in this', 38775:'contract, afford the same protectionas that provided in the war hazards compensation act, except thatthe levelof benefits shall conform to', 38776:'any law or international agreement controlling the benefits to which the employees may be entitled. in all other respects, the', 38777:'standards of the war hazards compensation act shall apply; e.g., thedefinition of warhazardrisks injury, death, capture, or detention as the', 38778:'result of a war hazard as defined in the act, proof of loss, and exclusion of benefits otherwise covered by', 38779:'workers’ compensation insurance or the equivalent. unless the contractor elects to assume directly the liability to subcontractor employees created by', 38780:'this clause, the contractor shall insert, in all subcontracts under this contract 52.2334 subpart 52.2 text of provisions and clauses', 38781:'52.2287 to which thewar hazardscompensation act would apply butforthe waiver, aclause similar to this paragraph b including this sentence imposing', 38782:'upon those subcontractors this requirement to provide warhazard benefits. end of clause 52.2285insurancework on a government installation. as prescribed in', 38783:'28.310, insert the following clause: insurancework on a government installation jan 1997 a the contractor shall, at its own expense,', 38784:'provide and maintain during the entire performance of this contract, at least the kinds and minimum amounts of insurance required', 38785:'in the schedule or elsewhere in the contract. b before commencing work under this contract,the contractor shall notify the contracting', 38786:'officer in writingthat the required insurance has been obtained. thepolicies evidencing requiredinsurance shall contain an endorsement tothe effect that any', 38787:'cancellationor any material change adverselyaffecting the government’s interestshallnot be effective 1 for such period as the laws of the state', 38788:'in which this contract is to be performed prescribe; or 2 until 30 days after the insureror the contractor gives', 38789:'written notice to thecontracting officer,whichever period is longer. c the contractor shall insert the substance of this clause, including this', 38790:'paragraph c, in subcontracts under this contract that require work on a government installation and shall require subcontractors to provide', 38791:'and maintain the insurance required in the schedule or elsewhere in the contract. the contractor shall maintain a copy of', 38792:'all subcontractors’ proofs of required insurance, and shall make copies available to the contracting officer upon request. end of clause', 38793:'52.2286 [reserved] 52.2287 insuranceliability to third persons. as prescribed in 28.3111 , insert the following clause: insuranceliability to third personsmar', 38794:'1996 a 1 except as provided in paragraph a2 of this clause, the contractor shall provide and maintain workers’ compensation,', 38795:'employer’s liability, comprehensive general liability bodily injury, comprehensive automobile liability bodilyinjury and property damage insurance, andsuch other insurance as the', 38796:'contracting officer may require under this contract. 2 the contractor may, with the approval ofthe contracting officer, maintain a selfinsuranceprogram,', 38797:'provided that, with respect to workers’ compensation, thecontractor is qualified pursuant tostatutory authority. 3 all insurance required by this paragraph', 38798:'shall be in a form and amount and for those periods as the contracting officer may requireor approve and with', 38799:'insurers approved by the contractingofficer. b the contractor agreesto submit for the contracting officer’s approval, to the extentand in the', 38800:'manner requiredby thecontracting officer,any otherinsurance that is maintained by thecontractor in connection with the performance of this contract and for', 38801:'which the contractor seeks reimbursement. c the contractor shall be reimbursed 1 for that portion i of the reasonable cost', 38802:'of insurance allocable to this contract; and ii required or approved under this clause; and 2 for certain liabilities and', 38803:'expenses incidental to such liabilities to third persons not compensated by insurance or otherwise without regard to and as an', 38804:'exception to the limitation of cost or the limitation of funds clause of this contract. these liabilities must arise out', 38805:'of the performance of this contract, whether or not caused by the negligence of the contractor or ofthe contractor’sagents, servants,', 38806:'or employees, and must berepresented by finaljudgments orsettlements approvedin writing by the government. these liabilities are for52.2 335 52.2288 federal', 38807:'acquisition regulation iloss of or damage to property other than property owned, occupied, or used by thecontractor, rented to the', 38808:'contractor, or in the care, custody, orcontrol ofthe contractor; or iideath or bodily injury. d the government’s liabilityunder paragraph c', 38809:'of this clause issubject to the availability ofappropriated funds at the time a contingency occurs. nothing in this contract shall', 38810:'be construed as implying that the congress will, at a later date, appropriate funds sufficient to meet deficiencies. e the', 38811:'contractor shall not be reimbursed for liabilities and expenses incidental to such liabilities 1 for which the contractor is otherwise', 38812:'responsible under the express terms of any clause specified in the schedule or elsewhere in the contract; 2 for which', 38813:'thecontractor has failed to insure orto maintain insurance as required bythe contracting officer; or 3 that result from willful misconduct', 38814:'orlack of good faith on the part of any ofthe contractor’sdirectors,officers, managers, superintendents, or other representatives who have supervision or', 38815:'direction of iall or substantiallyall of the contractor’s business; iiall or substantiallyallof the contractor’s operations at any one plant or', 38816:'separate location in which this contract is being performed; or iii a separate and complete major industrial operation in connection', 38817:'with the performance of this contract. f the provisions of paragraph e of this clause shall not restrict the right', 38818:'of the contractor to be reimbursed for the cost of insurance maintained by the contractor in connection with the performance', 38819:'of this contract, other than insurance required in accordance with this clause; provided, that such cost is allowable under the', 38820:'allowable cost and payment clause of this contract. g if anysuitor action is filed or any claimis made againstthe contractor,', 38821:'the cost and expense of whichmay be reimbursable to the contractor under this contract, and the risk of which is', 38822:'then uninsured or is insured for less than the amount claimed, the contractor shall 1 immediatelynotify the contractingofficer and promptlyfurnish', 38823:'copies of all pertinent papers received; 2 authorize government representatives to collaborate with counsel for the insurance carrier in settling', 38824:'or defending the claim when the amount of the liability claimed exceeds the amount of coverage; and 3 authorize government', 38825:'representatives to settle or defend the claim and to represent the contractor in or to take charge ofanylitigation, if requiredby', 38826:'the government, when the liabilityis not insured or covered by bond. the contractor may, atits own expense, beassociated with the', 38827:'government representatives in anysuch claimor litigation. end of clause 52.2288liabilityand insuranceleased motor vehicles. as prescribed in 28.312, insert the following', 38828:'clause: liability and insuranceleased motor vehiclesmay 1999 a the government shall be responsible for loss of or damage to 1', 38829:'leased vehicles, except for i normal wear and tear; and iiloss or damage caused by the negligence of the contractor,', 38830:'itsagents, or employees; and 2 property of third persons, or the injury or death of third persons, if the government', 38831:'is liable for such loss, damage, injury, ordeath under the federal tortclaims act 28 u.s.c. 26712680. b the contractor shall', 38832:'beliable for, and shall indemnify and hold harmlessthe government against,allactions or claims for loss of or damage to property or', 38833:'the injury or death of persons, resulting from the fault, negligence, or wrongful act or omission of the contractor, its', 38834:'agents,or employees. c the contractor shall provide and maintain insurance covering its liabilities under paragraph b of this clause, in', 38835:'amounts of at least $200,000 per person and $500,000 per occurrence for death or bodily injury and $20,000 per occurrence', 38836:'for property damage or loss. d before commencing work under this contract,the contractor shall notify the contracting officer in writingthat', 38837:'the required insurance has been obtained. thepolicies evidencing requiredinsurance shall contain an endorsement tothe effect that any cancellationor any material', 38838:'change adverselyaffecting the interests ofthe government shall not be effective 1 for such period as the laws of the state', 38839:'in which this contract is to be performed prescribe or 2 until 30 days after written notice 52.2336 subpart 52.2', 38840:'text of provisions and clauses 52.22811 to the contracting officer, whichever period is longer. the policies shall exclude any claim', 38841:'by the insurerforsubrogation against the government by reason of any payment under the policies. e thecontract priceshallnot include any costs', 38842:'for insurance or contingency tocover losses, damage, injury,or death for which the government is responsible under paragraph a of this', 38843:'clause. end of clause 52.2289 cargo insurance. as prescribed in 28.313a, insert the following clause: cargo insurance may 1999 a', 38844:'thecontractor, at the contractor’s expense,shallprovide and maintain, during thecontinuanceof this contract,cargo insurance of $ per vehicle to cover the value', 38845:'of property on each vehicle and of $ to cover the total value of the property in the shipment. b', 38846:'all insurance shall be written on companies acceptable to [insert name of contracting agency], and policies shall include such terms', 38847:'and conditions as required by [insert name of contracting agency]. the contractor shall provide evidence of acceptable cargo insurance to', 38848:'[insert name of contracting agency] before commencing operations under this contract. c eachcargo insurancepolicyshallinclude the followingstatement: it is a condition', 38849:'of this policy that the company shall furnish 1 written notice to [insert name and address of contracting agency], 30', 38850:'daysin advance of the effective date of any reduction in, or cancellation of, this policy; and 2 evidence of any', 38851:'renewal policy to the address specified in paragraph 1 of this statement, not less than 15 days prior to the', 38852:'expiration of any current policy on file with [insert name of contracting agency]. end of clause 52.22810 vehicular and general', 38853:'public liability insurance. as prescribed in 28.313b, insert a clause substantially the same as the following in solicitations and contracts', 38854:'for transportation orfortransportationrelated services when thecontracting officer determines thatvehicular liability or general public liabilityinsurance required by law is not sufficient:', 38855:'vehicular and general public liability insuranceapr 1984 a thecontractor, at the contractor’s expense,agrees tomaintain, during the continuance ofthiscontract, vehicular liability', 38856:'and general public liability insurance with limits of liability for 1 bodily injury of not less than $ for each', 38857:'person and $ for each occurrence; and 2 property damage of not less than $ for each accident and $', 38858:'in the aggregate. b the contractor also agrees to maintain workers’ compensation and other legally required insurance with respect to', 38859:'the contractor’sown employees and agents. end of clause 52.22811individual surety—pledge of assets. as prescribed in 28.2034b, insert the following clause:', 38860:'individual surety—pledge of assetsfeb 2021 a the contractor shall obtain from each person acting as an individual surety on a', 38861:'performance bond or a payment bond — 1 a pledge of assets that meetsthe eligibility, valuation, and security requirements described', 38862:'inthe federal acquisition regulationfar 28.2031; and 52.2337 52.22812 federal acquisition regulation 2 standard form 28, affidavit of individual surety. b', 38863:'the contracting officer may release aportion of the security interest on the individual suretysassetsbased upon substantial performance of the contractors', 38864:'obligations under its performance bond. the security interest in support of a performance bond shall be maintained— 1 contracts for', 38865:'the construction, alteration, or repair of any public building or public work of the federal government exceeding $150,000 40 u.s.c.', 38866:'3131. until completion of any warranty period, or for 1 year following final payment, whichever is later. 2 contracts subject', 38867:'to alternative payment protection see far 28.1021b1. for the full contract performance period plus 1 year. 3 other contracts not', 38868:'subject to the requirements of paragraph b1 of this clause. until completion of any warranty period,or for 90 days following', 38869:'final payment, whichever is later. c a suretys assets pledged in support of a payment bond may be released to', 38870:'a subcontractor or supplier upon government receipt of a federal district court judgment, or a sworn statement by the subcontractor', 38871:'or supplier that the claim is correct along with a notarized authorization of the release by the surety stating that', 38872:'it approves of such release. the security interest on the individual suretys assets in support of a payment bond shall', 38873:'be maintained— 1 contracts for the construction, alteration, or repair of any public building or public work of the federal', 38874:'government exceeding $150,000 which require performance and payment bonds 40 u.s.c. 3131. for 1 year following final payment, or until', 38875:'resolution of all pending claims filed against the payment bond during the 1year period following final payment, whichever is later.', 38876:'2 contracts subject to alternative payment protection see far 28.1021b1. for the full contract performance period plus 1 year. 3', 38877:'other contracts not subject to the requirements of paragraph c1 of this clause. for 90 days following final payment. d', 38878:'the contracting officer may allow the contractor to substitutean individual surety, for a performanceor payment bond, after contract award. the', 38879:'contractor shall comply with the requirements of paragraph a of this clause within the timeframe establishedby the contracting officer. end', 38880:'of clause 52.22812 prospective subcontractor requests forbonds. as prescribed in 28.1064b, use the following clause: prospective subcontractor requests for bonds', 38881:'dec 2022 in accordance with section 806a3 of pub. l. 102190, as amended by sections 2091 and 8105 of pub.', 38882:'l. 103355 10 u.s.c. 4601 note prec.,upon therequest of a prospective subcontractor or supplier offering to furnish labor or material', 38883:'for the performance of this contract for which a payment bond has been furnished to the government pursuant to 40', 38884:'u.s.c. chapter 31, subchapter iii, bonds, the contractor shall promptly providea copy of such payment bond to the requester. end', 38885:'of clause 52.22813 alternative payment protections. as prescribed in 28.1023b, insert the following clause: alternative payment protections july 2000 a', 38886:'the contractor shall submit one of the following payment protections: b the amount of the payment protection shall be 100', 38887:'percent of the contract price. c the submission of the payment protection is required within days of contract award. d', 38888:'the payment protection shall provide protection for the full contract performance period plus a oneyear period. e except for escrow', 38889:'agreements and payment bonds, which provide their own protection procedures, the contracting officer is authorized to access funds under the', 38890:'payment protection when it has been alleged in writing by a supplier of labor 52.2338 subpart 52.2 text of provisions', 38891:'and clauses 52.22814 or material that a nonpayment has occurred, and to withhold such funds pending resolution by administrative or', 38892:'judicial proceedings or mutual agreement of the parties. f when a tripartite escrow agreement is used, the contractor shall utilize', 38893:'only suppliers of labor and material that signed the escrow agreement. end of clause 52.22814 irrevocable letterof credit. as prescribed', 38894:'in 28.2044, insert the following clause: irrevocable letter of credit nov 2014 a irrevocable letter of credit ilc, as used', 38895:'in this clause, means a written commitment by a federally insured financial institutionto pay all or partof astatedamount of money,', 38896:'until the expirationdate of the letter, upon presentation by the government the beneficiary ofa written demand therefor. neither the financial', 38897:'institution nor theofferor/contractor can revoke or condition the letter of credit. b if the offerorintends to use an ilcin lieu', 38898:'of a bid bond, orto secureothertypes of bonds such as performance and payment bonds, the letter of credit and letter', 38899:'of confirmation formats in paragraphs e and f of this clause shall be used. c the letter of credit shall', 38900:'be irrevocable, shall require presentation of no document other than a written demand and the ilc including confirming letter, if', 38901:'any, shall be issued/confirmed by an acceptablefederally insured financial institution as provided in paragraph d of this clause, and 1', 38902:'if used as a bid guarantee, the ilc shall expire no earlier than 60 days after the close of the', 38903:'bid acceptance period; 2 if used as an alternative to corporate or individual sureties as security for a performance or', 38904:'payment bond, the offeror/contractor may submit an ilc withan initial expiration dateestimated to coverthe entire period for which financial security', 38905:'is required or may submit an ilc with an initial expiration date that is a minimum period of one year', 38906:'from the date of issuance. the ilc shall provide that, unless the issuer provides the beneficiary written notice of nonrenewal', 38907:'at least 60 days in advance of the current expiration date, the ilc is automatically extended without amendment for one', 38908:'year from the expiration date, or any future expiration date, until the period of required coverageis completed and the contracting', 38909:'officer provides the financial institution with a written statement waiving the right to payment. the period of required coverage shall', 38910:'be: i for contracts subject to 40 u.s.c. chapter 31, subchapter iii, bonds, the later of a oneyear following the', 38911:'expected date of final payment; b forperformance bonds only, until completion of any warranty period; or c forpayment bonds only,', 38912:'until resolutionof all claims filed against the payment bond duringthe oneyear period following final payment. ii for contracts not subject', 38913:'to 40 u.s.c. chapter 31, subchapter iii, bonds, the later of a 90 days following final payment; or b forperformance', 38914:'bonds only, until completion of any warranty period. d 1 only federally insured financial institutions rated investment grade by a', 38915:'commercial rating service shall issue or confirm the ilc. 2 unlessthe financial institution issuing the ilc had letter of credit', 38916:'business of at least $25 million in thepast year, ilcs over $5 million must be confirmed by another acceptable financial', 38917:'institution that had letter of credit business of at least $25 million in the past year. 3 the offeror/contractorshallprovide the', 38918:'contracting officer acredit rating that indicates the financial institutions have the required credit rating as of the date of issuance', 38919:'of the ilc. 4 the current rating for a financial institution is available through any of the following rating services', 38920:'registered with theu.s. securitiesand exchange commissionsecas anationally recognized statistical rating organization nrsro. nrsro’s canbe located at the website http://www.sec.gov/answers/nrsro.htm maintained', 38921:'by the sec. e the following format shall be used by the issuing financial institution to create an ilc: [issuing', 38922:'financial institution’s letterhead ornameandaddress] issue date 52.2339 52.22814 federal acquisition regulation irrevocable letter of credit no. account party’sname account party’saddress', 38923:'for solicitation no. for reference only to: [u.s. government agency] [u.s. government agency’s address] 1. we herebyestablishthis irrevocable and transferableletter', 38924:'of credit in your favor for one or more drawings up to united states $. this letter of credit is', 38925:'payable at [issuing financial institution’s and, if any, confirming financial institution’s] office at [issuing financial institution’s address and, if any,', 38926:'confirming financial institution’s address] and expires with our close of business on , or any automatically extended expiration date. 2.', 38927:'we herebyundertaketo honor your or the transferee’s sight drafts drawn on theissuing or, if any, the confirming financial institution, for', 38928:'all or anypart of this credit if presented with this letter of credit and confirmation, if any, at theoffice specified', 38929:'in paragraph1 of this letter of credit on or before the expiration date or any automatically extended expiration date. 3.', 38930:'[this paragraph is omitted if used as a bid guarantee, and subsequent paragraphs are renumbered.] it is a condition of', 38931:'this letter of credit that it is deemed to be automatically extended without amendment for oneyear from the expiration date', 38932:'hereof, or any future expiration date, unless at least 60 days prior to any expiration date, we notify you or', 38933:'the transferee by registered mail,or other receiptedmeans of delivery, that we electnot to consider this letter of credit renewed for', 38934:'any such additional period. at the time we notify you, we also agree to notify the account party and confirming', 38935:'financial institution, if any by thesame means of delivery. 4. this letter of credit is transferable. transfers and assignments of', 38936:'proceeds are to be effectedwithout charge toeither the beneficiary or the transferee/assignee of proceeds. such transfer or assignment shall be', 38937:'only at the written direction of the government the beneficiary in a form satisfactory to the issuing financial institution and', 38938:'the confirming financial institution, if any. 5. this letter of credit is subject to the uniform customs and practice ucp', 38939:'for documentary credits, international chamber of commerce publication no. insert version in effect at the time of ilc issuance, e.g.,', 38940:'publication 600, 2006 edition and to the extent not inconsistent therewith, to the laws of [state of confirming financial institution,', 38941:'if any,otherwise state ofissuing financial institution]. 6. if this credit expires during an interruption of business ofthis financialinstitution as described', 38942:'inarticle 17of the ucp, thefinancialinstitution specifically agrees to effect payment if this credit is drawn against within 30 daysafter the', 38943:'resumption of our business. sincerely, [issuing financial institution] f the following format shall be used by the financial institution to', 38944:'confirm an ilc: [confirming financial institution’s letterhead or name and address] date our letter of credit advice number beneficiary: [u.s.', 38945:'government agency] issuing financial institution: 52.2340 subpart 52.2 text of provisions and clauses 52.22815 issuingfinancial institution’s lc no. : gentlemen:', 38946:'1. we herebyconfirm the above indicated letter ofcredit, the originalof which is attached, issued by [name of issuing financial institution]', 38947:'for drawings of up to united states dollars /u.s. $ and expiring with our close of business on [the expiration', 38948:'date], or any automatically extended expiration date. 2. drafts drawn under the letter ofcredit and thisconfirmation are payable at our', 38949:'office located at . 3. we herebyundertaketo honor sight drafts drawn underand presentedwith the letter ofcredit and thisconfirmation at our', 38950:'offices as specified herein. 4. [this paragraph is omitted if used as a bid guarantee, and subsequent paragraphs are renumbered.]', 38951:'it is a condition of this confirmation that it be deemed automatically extended without amendment for oneyear from the expiration', 38952:'date hereof, or any automatically extended expiration date, unless: a at least 60 days prior to any such expirationdate, we', 38953:'shall notifythe contracting officer, or the transferee and theissuing financial institution,by registered mail or otherreceipted means of delivery, that we', 38954:'elect not to consider this confirmation extended for any such additional period; or b the issuing financial institutionshallhaveexercisedits right to', 38955:'notify you orthe transferee, the account party, and ourselves, of its election not to extend the expiration date of the', 38956:'letter of credit. 5. this confirmation is subject to the uniform customs and practice ucp for documentary credits, international chamber', 38957:'of commerce publication no. insert version in effect at the time of ilc issuance, e.g., publication 600, 2006 edition and', 38958:'to the extent not inconsistent therewith, to the laws of [state of confirming financial institution]. 6. if this confirmation expires', 38959:'during an interruption of business of this financial institution as described in article 17 of theucp, we specifically agree to', 38960:'effectpayment if this credit is drawn against within30 days afterthe resumptionof our business. sincerely, [confirming financial institution] g the following', 38961:'format shall be used by the contracting officer for asight draft to draw on the letter ofcredit: sight draft [city,', 38962:'state] date [name and address of financial institution] pay to the order of [beneficiary agency] the sum of united states', 38963:'$. this draft is drawn under irrevocable letter of credit no. . [beneficiary agency] [by] end of clause 52.22815 performance', 38964:'and payment bondsconstruction. as prescribed in 28.1023a, insert a clause substantially as follows: performance and payment bondsconstruction jun 2020 a', 38965:'definitions. as used in this clause original contract price means the award price ofthe contract; or, for requirements contracts, the', 38966:'price payableforthe estimated total quantity; or, for indefinitequantity contracts, the price payable for the specified minimum quantity. original contract price', 38967:'does not include the price of any options, except those options exercised at the time of contract award. b amount', 38968:'of required bonds. unless the resulting contract price is valued at or below the threshold specified in federal acquisition regulation', 38969:'28.1021a onthe date of award of this contract, the successful offeror shall furnish performance and paymentbondsto thecontracting officer as follows:', 38970:'1 performance bonds standard form 25. the penal amount of performance bonds at the time of contract award shall be', 38971:'100 percent of the original contract price. 52.2341 52.22816 federal acquisition regulation 2 payment bonds standard form 25a. the penal', 38972:'amount of payment bonds at the time of contract award shall be 100 percent of the original contract price. 3', 38973:'additional bond protection. i the government may require additional performance and payment bond protection if the contract price is increased.', 38974:'the increase in protection generally will equal 100 percent of the increase in contract price. ii the government may secure', 38975:'the additional protection by directing the contractor to increase the penal amount of the existing bond or to obtain an', 38976:'additional bond. c furnishing executed bonds. the contractor shall furnish all executed bonds, including any necessary reinsurance agreements, to the', 38977:'contracting officer, within the timeperiod specified in thebidguarantee provision of the solicitation, or otherwisespecified by thecontracting officer,but in any event,', 38978:'before starting work. d surety or other security for bonds. the bonds shall be in the form of firm commitment,', 38979:'supported by corporate sureties whose names appear on thelist containedin treasury department circular 570, individual sureties, or byotheracceptable security such', 38980:'as postal money order, certified check, cashiers check, irrevocable letterof credit, or, in accordance with treasury department regulations, certain bonds', 38981:'ornotes of the united states. treasurycircular 570 is published inthe federal register or may be obtained from the: u.s. department', 38982:'of thetreasury, financial management, service surety bond branch, 3700east west highway, room 6 f01, hyattsville, md 20782. or via the', 38983:'internet at http://www.fms.treas.gov/c570/. e notice of subcontractor waiver of protection 40 u.s.c. 3133c. any waiver of the right to sue', 38984:'on the payment bond is void unless it is in writing, signed by the person whose right is waived, and', 38985:'executed after such person has first furnished labor or material for use in the performance of the contract. end of', 38986:'clause 52.22816 performance and payment bondsother than construction. as prescribed in 28.1034, insert a clause substantially as follows: performance and', 38987:'payment bondsother than construction nov 2006 a definitions. as used in this clause original contract price means the awardprice of', 38988:'thecontract or, for requirementscontracts,the price payable for the estimated quantity;or, for indefinitequantitycontracts, the price payable for thespecified minimum quantity. original', 38989:'contract price does not include the price of any options, except those options exercised at the time of contract award.', 38990:'b the contractor shall furnish a performance bond standard form 1418 for the protection of the government in an amount', 38991:'equal to percent of the original contract price and a payment bond standard form 1416 in an amount equal to', 38992:'percent of the original contract price. c the contractor shall furnish all executed bonds, including any necessary reinsurance agreements, to', 38993:'the contracting officer, within days, but in any event, before starting work. d the government may require additional performance and', 38994:'payment bond protection if the contract price is increased. the government may secure the additional protection by directing the contractor', 38995:'to increase the penal amount of the existing bonds or to obtain additional bonds. e the bonds shall be in', 38996:'the form of firm commitment, supported by corporate sureties whose names appear on the list containedin treasury department circular 570,', 38997:'individual sureties, or byotheracceptable security such as postal money order, certified check, cashiers check,irrevocable letter of credit, or,in accordance with', 38998:'treasury departmentregulations, certain bonds or notes of the united states. treasury circular 570 is published in the federal register, or', 38999:'may be obtained from the: u.s. department of thetreasury, financial management service, surety bond branch, 3700east west highway, 52.2342 subpart', 39000:'52.2 text of provisions and clauses 52.22817 room 6 f01 hyattsville, md 20782. or via the internet at http://www.fms.treas.gov/c570/. end', 39001:'of clause alternate i july2000. as prescribed in 28.1034, substitute the following paragraphs b and d for paragraphs b and', 39002:'d of the basic clause: b the contractor shall furnish a performance bond standard form 1418 for the protection of', 39003:'the government in an amount equal to percent of the original contract price. d the government may require additional performance', 39004:'bond protection if the contract price is increased. the government may secure the additional protection by directing the contractor to', 39005:'increase the penal amount of the existing bond or to obtain an additional bond. 52.22817 individual surety—pledge of assets bid', 39006:'guarantee. as prescribed in 28.2034a, insert the following provision: individual surety—pledge of assetsfeb 2021 a offerors shall obtain fromeach person', 39007:'acting as an individual surety on a bid guarantee— 1 a pledge of assets that meetsthe eligibility, valuation, and security', 39008:'requirements described inthe federal acquisition regulationfar 28.2031; and 2 standard form 28, affidavit of individual surety. b the offeror shall', 39009:'include with itsoffer the information required at paragraph a of thisprovision withinthe timeframe specified in the provision at far 52.2281,', 39010:'bid guarantee, or as otherwise established by the contractingofficer. c thecontracting officer may release thesecurity intereston the individual suretys assets', 39011:'in support of a bid guarantee basedupon evidencethat the offer supported by the individual suretywill not result in contract award.', 39012:'end of provision 52.2343 this page intentionally left blank. 52.2344 subpart 52.2 text of provisions and clauses 52.2292 52.229[reserved] 52.2291state', 39013:'and localtaxes. as prescribed in 29.4011, insert the following clause: state and local taxes apr 1984 notwithstanding theterms ofthe federal,', 39014:'state, and localtaxes clause, thecontract priceexcludesallstate and local taxes levied on or measured by the contract or sales price of', 39015:'the services or completed supplies furnished under this contract. the contractor shall state separately on its invoices taxes excluded from', 39016:'the contract price, and the government agrees either to pay the amount of the taxes to the contractor or provide', 39017:'evidence necessary to sustain an exemption. end of clause 52.2292north carolina state andlocal sales anduse tax. as prescribed in 29.4012,', 39018:'insert the following clause in solicitations and contracts for construction to be performed in north carolina: north carolina state and', 39019:'local sales and use tax apr 1984 a materials, as used in this clause, means building materials, supplies, fixtures, and', 39020:'equipment that become a part of or are annexed to any building or structure erected, altered, or repaired under this', 39021:'contract. b if this is a fixedprice contract, the contract price includes north carolina state and local sales and use', 39022:'taxes to be paid on materials, notwithstanding any other provision of this contract. if this is a costreimbursement contract, any', 39023:'north carolina state and local sales and use taxes paid by the contractor on materials shall constitute an allowable cost', 39024:'under this contract. c at the timespecified in paragraph d of thissection, the contractor shall furnish thecontracting officer certified statements', 39025:'setting forth the cost of the materials purchased from each vendor and the amount of north carolina state and localsales', 39026:'and use taxes paid. in the event the contractor makesseveral purchases from thesame vendor, thecertified statement shall indicate the invoice', 39027:'numbers, the inclusive dates of the invoices, the total amount of the invoices, and the north carolina state and local', 39028:'sales and use taxes paid. the statement shall also include the cost of any tangible personal property withdrawn from the', 39029:'contractor’s warehouse stock and the amountof north carolina stateandlocal sales or use tax paid on thispropertyby the contractor. anylocal sales', 39030:'or use taxesincluded in the contractor’s statements mustbe shown separately from the state sales or use taxes. the contractor shall', 39031:'furnish any additional information the commissioner of revenue of the state of north carolina may require to substantiate a refund', 39032:'claim for sales or use taxes. the contractor shall also obtain and furnish to the contracting officer similar certified statements', 39033:'byits subcontractors. d if this contract is completed before the next october 1, the certified statements to be furnished pursuant', 39034:'to paragraph c of this clause shall be submitted within 60 days after completion. if this contract is not completed', 39035:'before the next october 1, the certified statements shall be submitted on or before november 30 of eachyear and shall', 39036:'cover taxes paid during the 12month period that ended the preceding september 30. e the certified statements to be furnished', 39037:'pursuant to paragraph c of this clause shall be in the following form: i hereby certify that during the period', 39038:'to [insert dates], [insert name of contractor or subcontractor] paid north carolina state and local sales and use taxes aggregating', 39039:'$ state and $ local, with respect to building materials, supplies, fixtures, and equipment that have become a part of', 39040:'or annexed to a building or structure erected, altered, or repaired by [insert name of contractor or subcontractor] for the', 39041:'united states of america, and that the vendors from whom the property was purchased, the dates and numbers of the', 39042:'invoices covering the purchases, the total amount of the invoices of each vendor, the northcarolina state and local sales and', 39043:'use taxes paid on the property shown separately, and the cost of property withdrawn from warehouse stock and north carolina', 39044:'state and local sales or use taxes paid on this property are as set forth in the attachments. end of', 39045:'clause 52.2345 52.2293 federal acquisition regulation alternate i apr 1984. if the requirement is for vessel repair to be performed', 39046:'in north carolina, substitute the following paragraph a for paragraph a of the basic clause: a materials, as used in', 39047:'this clause, means materials, supplies, fixtures, and equipment that become a part of or are annexed to any vessel altered', 39048:'or repaired under this contract. 52.2293federal, state, and local taxes. as prescribed in 29.4013, insert the following clause: federal, state,', 39049:'and local taxes feb 2013 a as used in this clause afterimposed federal tax means any newor increased federal excise', 39050:'taxor duty, ortax thatwas exempted orexcluded on the contract date but whose exemption was later revoked or reduced during the', 39051:'contract period, on the transactions or property covered by this contract that the contractor is required to pay or bear', 39052:'as the result of legislative, judicial, or administrative action taking effect after thecontract date. it does not include social security', 39053:'taxor other employment taxes. afterrelieved federal tax means any amount of federalexcise tax or duty, except social security or other', 39054:'employment taxes, that would otherwise have been payable on the transactions or property covered by this contract, but which the', 39055:'contractor is notrequired to pay or bear, orforwhich the contractor obtainsa refundor drawback, as the resultof legislative, judicial, oradministrative actiontakingeffect', 39056:'after the contract date. all applicable federal, state, and local taxes and duties means all taxes and duties, in effect', 39057:'on thecontract date, that the taxing authority is imposing and collecting on the transactions or property covered by this contract.', 39058:'contract date meansthe dateset for bid opening or, ifthis is a negotiated contract or a modification, theeffective date of this', 39059:'contract or modification. local taxes includes taxes imposed by a possession or territory of the united states, puerto rico, or', 39060:'the northern mariana islands, if the contract is performed wholly or partly in any of those areas. b 1 the', 39061:'contract price includes all applicable federal, state, and local taxes and duties, except as provided in subparagraph b2i of this', 39062:'clause. 2 taxes imposed under 26 u.s.c. 5000 c may not be i included in the contract price; nor ii', 39063:'reimbursed. c the contract price shall be increased by the amount of any afterimposed federal tax, provided the contractor warrants', 39064:'in writing that no amount for such newly imposed federal excise tax or duty or rate increase was included in', 39065:'the contract price, as a contingency reserve or otherwise. d the contract price shall be decreased by the amount of', 39066:'any afterrelieved federal tax. e thecontract priceshallbe decreased by theamount of anyfederal excise tax or duty, except social security or', 39067:'other employment taxes, that the contractor is required to pay or bear, or doesnot obtain a refund of, through the', 39068:'contractor’s fault, negligence, or failure to followinstructions of thecontracting officer. f no adjustment shall be made in the contract price', 39069:'under this clause unless the amount of the adjustment exceeds $250. g the contractor shall promptly notify thecontracting officer of', 39070:'all matters relating toany federal excise tax orduty that reasonably may be expected to result in either an increase or', 39071:'decrease in the contract price and shall take appropriate action as the contracting officer directs. h the government shall, withoutliability,furnish', 39072:'evidence appropriate toestablishexemption fromany federal, state, or local tax when the contractor requests such evidence and a reasonable basis exists', 39073:'to sustain the exemption. end of clause 52.2294federal, state, and local taxes state and local adjustments. as prescribed in 29.4013,', 39074:'insert the following clause: federal, state, and local taxes state and local adjustmentsfeb 2013 a as used in this clause52.2', 39075:'346 subpart 52.2 text of provisions and clauses 52.2296 afterimposed tax meansany new orincreasedfederal, state, or localtax or duty, or', 39076:'taxthat was excluded on the contract date but whose exclusion was later revoked or amount of exemption reduced during the', 39077:'contract period, other than an excepted tax, on the transactions or property covered by this contract that the contractor is', 39078:'required to pay or bear as the result of legislative, judicial, or administrative action taking effect after thecontract date. afterrelieved', 39079:'tax means any amountof federal, state, or local tax orduty, other than an excepted tax, that would otherwise have been', 39080:'payable on the transactions or property covered by this contract, but which the contractor is not required to pay or', 39081:'bear,or for which the contractorobtains arefund or drawback, asthe result of legislative, judicial, or administrative action taking effect after thecontract', 39082:'date. all applicable federal, state, and local taxes and duties means all taxes and duties, in effect on thecontract date,', 39083:'that the taxing authority is imposing and collecting on the transactions or property covered by this contract. contract date meansthe', 39084:'effective date of this contract and, for any modification to this contract,the effective date of the modification. excepted tax means', 39085:'social security or other employment taxes, net income and franchise taxes, excess profits taxes, capital stock taxes, transportation taxes, unemployment', 39086:'compensation taxes, and property taxes. excepted tax does not include gross income taxes levied on or measured by sales or', 39087:'receipts from sales, property taxes assessed on completed supplies covered bythis contract, orany tax assessed on the contractor’s possession of,interest', 39088:'in, or use of property,titleto whichis in the government. local taxes includes taxes imposed by a possession or territory of', 39089:'the united states, puerto rico, or the northern mariana islands, if the contract is performed wholly or partly in any', 39090:'of those areas. b 1 unless otherwise provided in this contract, the contract price includes all applicable federal, state, and', 39091:'local taxes and duties, except as provided in subparagraph b2i of this clause. 2 taxes imposed under 26 u.s.c. 5000', 39092:'c may not be i included in the contract price; nor ii reimbursed. c the contract price shall be increased', 39093:'by the amount of any afterimposed tax, or of any tax or duty specifically excluded from the contractprice by aterm', 39094:'or conditionof this contract that the contractoris required to pay or bear, including anyinterest orpenalty, ifthe contractor statesin writing that', 39095:'thecontract pricedoes not include any contingency for suchtax and if liability for such tax, interest, or penalty was notincurred through', 39096:'the contractor’s fault, negligence, or failure to follow instructions ofthe contracting officer. d the contract price shall be decreased by', 39097:'the amount of any afterrelieved tax. the government shall be entitled to interest received by the contractor incident to a', 39098:'refund of taxes to the extent that such interest was earned after the contractor was paid by the government for', 39099:'such taxes. the government shall be entitled to repayment of any penalty refunded to the contractor to the extent that', 39100:'the penalty was paid by the government. e the contract price shall be decreased by the amount of any federal,', 39101:'state, or local tax, other than an excepted tax, that was included inthe contract price and that the contractor is', 39102:'requiredto pay orbear, or does not obtain a refund of, through thecontractor’s fault, negligence, or failure to followinstructions of thecontracting', 39103:'officer. f no adjustment shall be made in the contract price under this clause unless the amount of the adjustment', 39104:'exceeds $250. g the contractor shall promptly notify thecontracting officer of all matters relating tofederal, state, and local taxes and', 39105:'duties that reasonably may be expected to result in either an increase or decrease in the contract price and shall', 39106:'take appropriate action as the contracting officer directs. the contract price shall beequitably adjusted to cover the costsof action taken', 39107:'bythe contractor at the direction of thecontracting officer,including any interest,penalty, and reasonable attorneys’ fees. h the government shall furnish evidence', 39108:'appropriate to establish exemption from any federal, state, or local tax when 1 the contractor requests such exemption and states', 39109:'in writing that it applies to a tax excluded from the contract price; and 2 a reasonable basis exists to', 39110:'sustain the exemption. end of clause 52.2295 [reserved] 52.2296taxesforeignfixedprice contracts. as prescribed in 29.4021a, insert the following clause: 52.2347 52.2296', 39111:'federal acquisition regulation taxesforeign fixedprice contractsfeb 2013 a to the extentthat this contract provides for furnishing supplies or performingservices outside', 39112:'the united states and its outlying areas, this clause applies in lieu of any federal, state, and local taxes clause', 39113:'of the contract. b definitions. as used in this clause contract date meansthe dateset for bid opening or, ifthis is', 39114:'a negotiated contract or a modification, theeffective date of this contract or modification. country concerned means any country, other than', 39115:'the united states and its outlying areas, in which expenditures under this contract are made. tax and taxes include fees', 39116:'and chargesfordoing business that are levied bythe governmentof the countryconcernedor by its political subdivisions. all applicable taxes and duties means', 39117:'all taxes and duties, in effecton the contract date, that the taxing authority is imposing and collecting on the transactions', 39118:'or property covered by this contract, pursuant to written ruling or regulation in effect on the contract date. afterimposed tax', 39119:'meansany new orincreasedtax or duty, or taxthat was exempted or excluded onthe contract date but whose exemption was later revoked', 39120:'or reduced during the contract period, other than excepted tax, on the transactions or property covered by this contract that', 39121:'the contractor is required to pay or bear as the result of legislative, judicial, or administrative action taking effect after', 39122:'thecontract date. afterrelieved tax means any amountof tax orduty, other than an excepted tax, that would otherwisehavebeenpayable on thetransactions or', 39123:'property coveredby this contract,but which thecontractor is not required to pay or bear, or for which the contractor obtains a', 39124:'refund, as the resultof legislative, judicial,or administrative action taking effect after the contract date. excepted tax means social security or', 39125:'other employment taxes, net income and franchise taxes, excess profits taxes, capital stock taxes, transportation taxes, unemployment compensation taxes, and', 39126:'property taxes. excepted tax does not include gross income taxes levied on or measured by sales or receipts from sales,', 39127:'property taxes assessed on completed supplies covered bythis contract, orany tax assessed on the contractor’s possession of,interest in, or use', 39128:'of property,titleto whichis in the u.s. government. c 1 unless otherwise provided in this contract, the contract price includes all', 39129:'applicable taxes and duties, except taxes and duties that the government of the united states and the government of the', 39130:'country concerned have agreed shall not be applicable to expenditures in such country by or on behalf of the united', 39131:'states, except as provided in subparagraph c2 of this clause. 2 taxes imposed under 26 u.s.c. 5000 c may not', 39132:'be i included in the contract price; nor ii reimbursed. d 1 except as provided in subparagraph d2 of this', 39133:'clause, the contract price shall be increased by the amount of any afterimposed tax or of any tax or duty', 39134:'specifically excluded from the contract price by a provision of this contract that thecontractor is required topay or bear,including any', 39135:'interest or penalty, if the contractor states inwriting that the contract price does not include any contingency for such tax', 39136:'and if liability for such tax, interest, or penalty was not incurred through thecontractor’s fault, negligence, or failure to followinstructions', 39137:'of thecontracting officer or to complywith the provisions of paragraph i of this clause. 2 the contract price maynot be', 39138:'increased to offset taxesimposedunder 26 u.s.c. 5000 c. e thecontract priceshallbe decreased by theamount of anyafterrelievedtax, including any interest or', 39139:'penalty. the government of the united states shall be entitled to interest received by the contractor incident to a refund', 39140:'of taxes to the extent that such interest was earned after the contractor was paid by the government of the', 39141:'united states for such taxes. the government of the united states shall be entitled to repayment of any penalty refunded', 39142:'to the contractor to the extent that the penalty was paid by the government. f the contract price shall be', 39143:'decreased by the amount of any tax or duty,other thanan exceptedtax, thatwas included in thecontract andthat thecontractor is required topay', 39144:'or bear,or does notobtain a refund of,throughthe contractor’sfault, negligence, orfailureto follow instructions of the contracting officer or to comply with', 39145:'the provisionsof paragraphi of this clause. g no adjustment shall be made in the contract price under this clause unless', 39146:'the amount of the adjustment exceeds $250. h if the contractor obtains a reduction in tax liability under the united', 39147:'states internal revenuecode title26, u.s. code because of the payment of any tax or duty that either was included in', 39148:'the contract price or was the basis of an increase 52.2348 subpart 52.2 text of provisions and clauses 52.2299 in', 39149:'the contract price, the amount of the reduction shall be paid or credited to the government of the united states', 39150:'as the contracting officerdirects. i the contractor shall take all reasonable action to obtain exemption from or refund of any', 39151:'taxes or duties, including interest or penalty, from whichthe united states government, the contractor, any subcontractor, orthe transactionsor property covered', 39152:'by this contract are exempt under the laws of the country concerned or its political subdivisions or which the governments', 39153:'of the united states and of the country concerned have agreed shall not be applicable to expenditures in such country', 39154:'by or on behalf of the united states. jthe contractorshallpromptly notifythe contracting officerof all matters relating to taxes or duties', 39155:'that reasonably may be expected to result in either an increase or decrease in the contract price and shall take', 39156:'appropriate action as the contracting officerdirects. the contract price shall be equitably adjustedto cover the costs of action taken by', 39157:'the contractor at the direction of the contracting officer, including any interest, penalty, and reasonable attorneys’ fees. end of clause', 39158:'52.2297taxesfixedprice contracts withforeign governments. as prescribed in 29.4021b, insert the following clause: taxesfixedprice contracts with foreign governments feb 2013 a', 39159:'contract date, as used in this clause, means the date setforbid opening or, if thisis anegotiated contract or a modification,', 39160:'theeffective date ofthis contractor modification. b 1 the contract price, including the prices in any subcontracts under this contract, does', 39161:'not include any tax or duty that the government of the united states and the government of [insert name of', 39162:'the foreign government] have agreed shall not apply to expenditures made by the united states in [insert name of country],', 39163:'or any tax or duty not applicable to this contract or any subcontracts under this contract, pursuant to the laws', 39164:'of [insert name of country]. if any such tax or duty has been included in the contract price, through error', 39165:'or otherwise, the contract price shall be correspondingly reduced. 2 taxes imposed under 26 u.s.c. 5000 c may not be', 39166:'included in the contract price. c if, after the contract date, the government of the united states and the government', 39167:'of [insert name of the foreign government] agree that any tax or duty included in the contract price shall not', 39168:'apply to expenditures by the united states in [insert name of country],the contract price shall be reduced accordingly. d no', 39169:'adjustment shall be made in the contract price under this clause unless the amount of the adjustment exceeds $250. end', 39170:'of clause 52.2298taxesforeigncostreimbursement contracts. as prescribed in 29.4022a, insert the following clause: taxesforeign costreimbursement contractsmar 1990 a any tax or', 39171:'duty from which the united states government is exempt by agreement with the government of [insert name of the foreign', 39172:'government], or from which the contractor or any subcontractor under this contract is exempt under the laws of [insert name', 39173:'of country], shall not constitute an allowable cost under this contract. b if the contractor or subcontractor under this contract', 39174:'obtains a foreign tax credit that reduces its federal income tax liability under the united states internal revenue code title26,', 39175:'u.s. code because of the payment of any taxor duty that was reimbursed under this contract, theamount of the reduction', 39176:'shall bepaid or credited at the time of suchoffsetto the government of the united states as thecontracting officer directs. end', 39177:'of clause 52.2299taxescostreimbursement contracts with foreign governments. as prescribed in 29.4022b, insert the following clause: 52.2349 52.22910 federal acquisition regulation', 39178:'taxescostreimbursement contracts with foreign governments mar 1990 a any tax or duty from which the united states government is exempt', 39179:'by agreement with the government of [insert name of the foreign government], or from which any subcontractor under this contract', 39180:'is exempt under the laws of [insert name of country], shall not constitute an allowable cost under this contract. b', 39181:'if any subcontractor obtains a foreign tax credit that reduces its federal income tax liability under the united states internal', 39182:'revenue code title26, u.s. codebecause of thepayment of any tax or duty that was reimbursed under this contract, the amount', 39183:'of thereduction shall be paid not credited to the contract tothe treasurer of theunited statesat the time the federal income', 39184:'tax return is filed. end of clause 52.22910 state of new mexico gross receipts and compensating tax. as prescribed in', 39185:'29.4014b, insert the following clause: state of new mexico gross receipts and compensating tax apr 2003 a within thirty 30', 39186:'days afteraward of this contract, the contractor shall advise the state ofnew mexico of this contract by registering with the', 39187:'stateof new mexico, taxation and revenue department,revenue division, pursuant to the tax administration act of the state of new mexico', 39188:'andshallidentify the contractnumber. b the contractor shall pay the new mexico gross receipts taxes, pursuant to the gross receipts and', 39189:'compensating tax act of new mexico, assessed against the contract fee and costs paid for performance of this contract, or', 39190:'of any part or portion thereof, within the state of new mexico. the allowability of any gross receipts taxes or', 39191:'local option taxes lawfully paid to the state of new mexico by the contractor or its subcontractors will be determined', 39192:'in accordance with the allowable cost and payment clause of this contract except as provided in paragraph d of this', 39193:'clause. c thecontractor shall submit applications for nontaxabletransaction certificates, formcsr3c, to the: state ofnewmexico taxation and revenue dept. revenue division', 39194:'po box 630 santa fe,new mexico 87509 when the type 15nontaxable transaction certificate is issued by the revenue division, the', 39195:'contractor shall usethese certificates strictly in accordance with this contract, and the agreement between the and the new mexico taxation', 39196:'and revenue department. d the contractor shall provide type15 nontaxable transaction certificates to each vendor in new mexico selling tangible', 39197:'personal property tothe contractor for use in the performance ofthiscontract. failure to provide a type15 nontaxable transactioncertificate to vendorswill resultin', 39198:'thevendor’s liability for thegross receipt taxes and those taxes, which are then passed on tothe contractor, shall not be reimbursableas', 39199:'an allowable cost bythe government. e the contractor shall pay the new mexico compensating user tax for any tangible personal', 39200:'property which is purchased pursuant to a nontaxable transactioncertificate if suchpropertyis not usedforfederal purposes. f outofstate purchase of tangible personal', 39201:'property by the contractor which would be otherwise subject to compensation tax shall be governed by the principles of this', 39202:'clause. accordingly, compensatingtax shall be duefrom the contractor only if such property is not used for federal purposes. g the', 39203:'may receive information regarding the contractor from the revenue division of the new mexico taxation and revenue department and, at', 39204:'the discretion of the , may participate in any matters or proceedings pertaining to this clause or the abovementioned agreement.', 39205:'this shall not preclude the contractor from having its own representative nor does it obligate the to represent its contractor.', 39206:'h the contractor agrees to insert the substance of this clause, including this paragraph h, in each subcontract which meets', 39207:'the criteria in 29.4014b1 through 3 of the federal acquisition regulation, 48 cfr part 29. i paragraphs a through h', 39208:'of this clause shall be null and void should the agreement referred to in paragraph c of this clause be', 39209:'terminated; provided, however, that such termination shall not nullifyobligations already incurred prior to the date of termination. [insert appropriate agency', 39210:'name in blanks.] end of clause 52.2350 subpart 52.2 text of provisions and clauses 52.22912 52.22911tax oncertain foreign procurements—notice and', 39211:'representation. as prescribed in 29.4023a, insert the following provision: tax on certain foreign procurements—notice and representation jun 2020 a definitions.', 39212:'as used in this provision— foreign person means any person other than a united states person. specified federal procurement payment', 39213:'means any payment made pursuant to a contract with a foreign contracting party that is for goods, manufactured or produced,', 39214:'or services provided in a foreign country that is not a party to an international procurement agreement with the united', 39215:'states. for purposes of the prior sentence, a foreign country does not include an outlying area. united states person as', 39216:'defined in 26 u.s.c. 7701a30 means 1 a citizen or resident of the united states; 2 a domestic partnership; 3', 39217:'a domestic corporation; 4 any estate other than a foreign estate, within the meaning of 26 u.s.c. 701a31; and 5', 39218:'any trust if– i a court within the united states is able to exercise primary supervision over the administration of', 39219:'the trust; and ii one or more united states persons have the authority to control all substantial decisions of the', 39220:'trust. b unless exempted, there is a 2 percent tax of the amount of a specified federal procurement payment on', 39221:'any foreign person receiving such payment. see 26 u.s.c. 5000c and its implementing regulations at 26 cfr 1.5000c1 through 1.5000c7.', 39222:'c exemptions from withholding underthisprovision aredescribed at 26 cfr1.5000c1d5 through 7. the offeror would claim an exemption from the withholding', 39223:'by usingthe department of thetreasury internal revenue serviceform w14, certificate of foreign contracting party receiving federal procurement payments, available via', 39224:'the internet at www.irs.gov/w14. any exemption claimed and selfcertified on the irs form w14 is subject to audit by the', 39225:'irs. any disputes regarding the imposition and collection of the 26 u.s.c. 5000c tax are adjudicated by the irs as', 39226:'the 26 u.s.c. 5000c taxis a tax matter, not a contract issue. the irs form w14is provided to the acquiring', 39227:'agency ratherthan to the irs. d for purposes of withholding under 26 u.s.c. 5000c, theofferor represents that 1 it □', 39228:'is □ is not a foreign person; and 2 if the offeror indicates is inparagraph d1 of this provision, then', 39229:'the offeror represents that—i am claiming on the irs form w14 □ a full exemption, or □ partial or no', 39230:'exemption [offerorshallselect one]from the excisetax. e if the offeror representsitis a foreign person inparagraph d1 of this provision, then— 1', 39231:'the clause at far 52.22912,tax on certain foreign procurements, willbe includedin any resulting contract; and 2 the offeror shall submit', 39232:'with its offer the irs formw14. if the irs formw14 is notsubmitted withthe offer, exemptions will not be applied to', 39233:'any resulting contract and the government will withhold a full 2 percent of each payment. f ifthe offeror selects is', 39234:'inparagraph d1and partial or no exemption in paragraph d2 of this provision, the offeror will be subject to withholding in', 39235:'accordance with the clause at far 52.22912,tax on certain foreign procurements, in any resulting contract. g a taxpayermay, for a', 39236:'fee, seek advice from the internal revenue service irs as to theproper tax treatment of a transaction. this is calleda', 39237:'private letter ruling. also, the irs maypublisha revenue ruling, whichis an official interpretation by the irs of the internal revenue', 39238:'code, related statutes, tax treaties, and regulations. a revenue ruling is the conclusion of the irs on how the law', 39239:'is applied to a specific set of facts. for questions relating to the interpretation of the irs regulations go to', 39240:'https://www.irs.gov/help/taxlawquestions. end of provision 52.22912 tax on certain foreignprocurements. as prescribed in 29.4023b, insert the following clause: tax on certain', 39241:'foreign procurements—notice and representation feb 2021 a definitions. as used in this clause— 52.2351 52.22913 federal acquisition regulation foreign person', 39242:'means any person other than a united states person. united states person, as defined in 26 u.s.c. 7701a30, means– 1', 39243:'a citizen or resident of the united states; 2 a domestic partnership; 3 a domestic corporation; 4 any estate other', 39244:'than a foreign estate, within the meaning of 26 u.s.c. 7701a31; and 5 any trust if i a court within', 39245:'the united states is able to exercise primary supervision over the administration of the trust; and ii one or more', 39246:'united states persons have the authority to control all substantial decisions of the trust. b this clause applies only to', 39247:'foreign persons. it implements 26 u.s.c. 5000c and its implementing regulations at 26 cfr 1.5000c1 through 1.5000c7. c 1 if', 39248:'the contractor is a foreign person and has only a partial or no exemption to the withholding, the contractor shall', 39249:'include the department of the treasury internal revenueservice form w14,certificate of foreigncontracting party receiving federal procurement payments, with each voucher', 39250:'or invoice submitted under this contract throughout the period in which this status is applicable. the excise tax withholding is', 39251:'applied at the payment level, not at the contract level. the contractor should revise each irs form w14 submission to', 39252:'reflect the exemption if any that applies to that particular invoice, such as a different exemption applying. in the absence', 39253:'of a completedirs form w14 accompanying a payment request, the default withholding percentage is 2 percent for the section 5000c', 39254:'withholding for that payment request. information about irs form w14 and its separate instructions is available via the internet at', 39255:'www.irs.gov/w14. 2 if the contractor is a foreign person and has indicated in its offer inthe provision 52.22911, tax on', 39256:'certain foreign procurements—notice and representation, that it is fully exempt from the withholding, and certified the full exemption on the', 39257:'irs form w14, and if that full exemption no longer applies due to a change in circumstances during the performance', 39258:'of the contract that causes the contractor to become subject to the withholding for the 2 percent excise tax then', 39259:'the contractor shall– inotify the contracting officer within 30days of a changein circumstances that causes thecontractor to be subject to', 39260:'the excise tax withholding under 26 u.s.c. 5000c; and ii comply with paragraph c1 of this clause. d the government', 39261:'will withhold a full 2 percent of each payment unless the contractor claims an exemption. if the contractor entersa ratioin', 39262:'line12 of the irs form w14,the result of line 11 divided by line10,the government will withhold from each payment an', 39263:'amount equal to 2 percent multiplied by the contract ratio. if the contractor marks box 9 of the irs form', 39264:'w14 rather than completes lines 10 through 12, the contractor must identify and enter the specific exempt and nonexempt amounts', 39265:'in line 15 of the irs form w14; the government will then withhold 2 percent only from the nonexempt amount.', 39266:'see the irs form w14 and its instructions. e exemptions from the withholding under this clause are described at 26', 39267:'cfr 1.5000c1d5 through 7. any exemption claimed and selfcertified on the irs form w14 is subject to audit by the', 39268:'irs. any disputes regarding the imposition and collection of the 26 u.s.c. 5000c tax are adjudicated by the irs as', 39269:'the 26 u.s.c. 5000c tax is atax matter, not a contract issue. f taxes imposed under 26 u.s.c. 5000c may', 39270:'not be— 1 included in the contract price; nor 2 reimbursed. g a taxpayermay, for a fee, seek advice from', 39271:'the internal revenue service irs as to theproper tax treatment of a transaction. this is calleda private letter ruling. also,', 39272:'the irs maypublisha revenue ruling, whichis an official interpretation by the irs of the internal revenue code, related statutes, tax', 39273:'treaties, and regulations. a revenue ruling is the conclusion of the irs on how the law is applied to a', 39274:'specific set of facts. for questions relating to the interpretation of the irs regulations go to https://www.irs.gov/help/taxlawquestions. end of clause', 39275:'52.22913 taxes—foreign contracts inafghanistan. as prescribed in 29.4024a, use the following clause: taxes—foreign contracts in afghanistan nov 2021 52.2352 subpart', 39276:'52.2 text of provisions and clauses 52.22914 a definition. u.s. forces, as used in this clause, means the entity comprising', 39277:'the members of the force and of the civilian component, and all property,equipment, and materiel of the united states armed', 39278:'forces present inthe territory of afghanistan. b tax exemption. this acquisition is covered by the security and defense cooperation agreement', 39279:'the agreement between the islamic republic of afghanistan afghanistan and the united states of america signed on september 30, 2014,', 39280:'and entered into force on january 1, 2015. 1 the agreement exempts the united states government, and its contractors and', 39281:'subcontractors other than those that are afghan legal entities orresidents, from paying any tax or similar charge assessed by the', 39282:'government of afghanistan on activities associated with this contract within afghanistan if the activities are on behalf of or in', 39283:'support of u.s. forces. the agreement also exempts the acquisition, importation, exportation, reexportation, transportation, and use of supplies and services', 39284:'inafghanistan, on behalf ofor in support of u.s. forces, from any taxes,customs, duties,fees, orsimilar charges imposed by the government of', 39285:'afghanistan. 2 the contractor shall exclude any afghantaxes, customs, duties, fees, or similar charges fromthe contract price, other than those', 39286:'chargedto afghan legal entities or residents. 3 the agreement does not exempt afghan employees of government contractors and subcontractors from', 39287:'afghan tax laws. to the extentrequired by afghan law, the contractorshallwithhold tax from the wages of these employees and remit', 39288:'those paymentsto the appropriateafghan taxing authority. these withholdings are an individuals liability, not a tax against thecontractor. c subcontracts. the', 39289:'contractor shall include the substance of this clause, including this paragraph c, in all subcontracts including subcontracts for commercial products', 39290:'or commercial services. end of clause 52.22914 taxes—foreign contracts inafghanistannorth atlantictreaty organization status of forces agreement. as prescribed in 29.4024b,', 39291:'use the following clause: taxes—foreign contracts in afghanistan north atlantic treaty organization status of forces agreement nov 2021 a definition.north', 39292:'atlantictreatyorganizationnatoforces, as used in thisclause, meansthe members of the force, members of the civilian component,nato personnel and all property, equipment,', 39293:'and materiel ofnato, nato member states, and operational partners present in the territory of afghanistan. b tax exemption. this acquisition', 39294:'is coveredby the statusof forces agreement sofaentered intobetween nato and the islamic republic of afghanistan afghanistan issued on september 30,', 39295:'2014, and entered into force on january 1, 2015. 1 the sofa exempts nato forcesand its contractors and subcontractors other', 39296:'than those that are afghan legal entities or residents from paying any tax or similar charge assessed by the government', 39297:'of afghanistan within afghanistan if the activities are on behalf of or in supportof nato forces. the sofa also exempts', 39298:'theacquisition,importation, exportation, reexportation, transportation,anduse of supplies andservices in afghanistan on behalf of or in support of nato forces from allafghan', 39299:'taxes, customs,duties, fees, or similar charges. 2 the contractor shall exclude any afghantaxes, customs, duties, fees or similar charges from', 39300:'the contract price, other than those chargedto afghan legal entities or residents. 3 afghan citizens employed by natocontractors and subcontractors', 39301:'are subject to afghan tax laws. to the extent required byafghan law, the contractor shall withhold tax from the wagesof', 39302:'these employeesandremit thosewithholdings to theappropriateafghan taxing authority. thesewithholdings are an individuals liability, not a taxagainst the contractor. c subcontracts. the', 39303:'contractor shall include the substance of this clause, including this paragraph c, in all subcontracts including subcontracts for commercial products', 39304:'or commercial services. end of clause 52.2353 this page intentionally left blank. 52.2354 subpart 52.2 text of provisions and clauses', 39305:'52.2301 52.230[reserved] 52.2301 cost accounting standards notices and certification. as prescribed in 30.2013a, insert the following provision: cost accounting standards', 39306:'notices and certification jun 2020 note: this notice does not apply to small businesses or foreign governments. this notice is', 39307:'in three parts, identified by roman numerals i through iii. offerorsshallexamine eachpart and provide the requestedinformation in orderto determine cost', 39308:'accountingstandards cas requirements applicable to any resultant contract. if the offeroris an educational institution, part ii does not apply unless', 39309:'the contemplated contract willbe subjectto fullor modifiedcas coveragepursuant to 48 cfr 9903.2012c5or 9903.2012c6, respectively. i. disclosure statementcost accounting practices and', 39310:'certification a any contractin excess of the lower cas threshold specified in federal acquisitionregulationfar 30.2014b resulting from this solicitation will', 39311:'be subject to the requirements of the cost accounting standards board 48 cfr chapter 99, except for those contracts which', 39312:'are exempt as specified in 48 cfr 9903.2011. banyofferorsubmittingaproposalwhich,ifaccepted,willresultinacontractsubjecttotherequirementsof 48 cfr chapter 99 must, as a condition of contracting, submit', 39313:'a disclosure statement as required by 48 cfr 9903.202. when required, the disclosurestatement must be submittedas a part of the', 39314:'offeror’s proposal under this solicitationunlessthe offeror hasalready submitted a disclosure statement disclosing the practices used in connection with the pricing', 39315:'ofthis proposal. if an applicable disclosure statementhas already been submitted, the offeror may satisfythe requirement for submission by providing the', 39316:'information requested in paragraph c of part i of this provision. caution: in the absence of specific regulations or agreement,', 39317:'a practice disclosed in a disclosure statement shall not, by virtue of such disclosure, bedeemed to be a proper, approved,', 39318:'oragreedto practice for pricing proposalsor accumulating and reporting contract performance cost data. c check the appropriate box below: 1 □', 39319:'certificate of concurrent submission of disclosure statement. the offeror hereby certifies that, as a part of the offer, copies ofthe', 39320:'disclosure statementhavebeensubmitted as follows: ioriginal and one copy to the cognizant administrative contracting officer aco or cognizant federal agency official', 39321:'authorized to act in that capacity federalofficial, as applicable; and iione copy tothe cognizant federal auditor. disclosure must be on', 39322:'form no. casb ds1 or casb ds2, as applicable. forms may be obtained from the cognizant aco or federal official.', 39323:'date of disclosure statement: name and address of cognizant aco or federal official where filed: the offeror further certifies that', 39324:'the practices used in estimating costsin pricing this proposalare consistent withthe cost accounting practices disclosed in the disclosure statement. 2', 39325:'□ certificate of previously submitted disclosure statement. theofferor herebycertifies that the required disclosure statement was filed as follows: date of', 39326:'disclosure statement: name and address of cognizant aco or federal official where filed: the offeror further certifies that the practices', 39327:'used in estimating costsin pricing this proposalare consistent withthe cost accounting practices disclosed in the applicable disclosure statement. 3 □', 39328:'certificate of monetary exemption. the offerorhereby certifies that the offeror, together with all divisions, subsidiaries, and affiliates under common control,did', 39329:'not receive netawards of negotiated prime contracts and subcontracts subject to cas totaling $50 million or more in the cost', 39330:'accounting period immediately preceding the period in which this proposal was submitted. the offeror further certifies that if such status', 39331:'changes before an award resultingfrom this proposal, theofferor will advise the contracting officer immediately. 4 □ certificate of interim exemption.', 39332:'the offeror hereby certifies thati theofferor first exceeded the monetary exemption for disclosure, as defined in 3 of this subsection,', 39333:'in the cost accounting period immediately preceding the period 52.2355 52.2302 federal acquisition regulation in which this offer wassubmitted and', 39334:'ii in accordance with 48 cfr 9903.2021, the offeror is not yet required to submit a disclosure statement. the offeror', 39335:'further certifies that if an award resultingfrom this proposal has not been made within 90 daysafter the end of that', 39336:'period, the offeror will immediately submit a revised certificateto thecontracting officer,in the form specified under paragraph c1 or c2 of', 39337:'parti of this provision, as appropriate, to verify submission of a completed disclosure statement. caution: offerors currently required to disclose', 39338:'because they were awarded acascovered prime contractor subcontract of $50 million or morein the current cost accounting period may not', 39339:'claim this exemption 4. further,the exemption applies only in connection with proposals submitted before expiration of the 90day period following', 39340:'the cost accounting period in which the monetary exemption was exceeded. ii. cost accounting standardseligibility for modified contract coverage if', 39341:'the offeroris eligible to usethe modifiedprovisions of 48 cfr 9903.2012b and elects to do so, the offeror shall indicate by', 39342:'checking the box below. checking the box belowshallmeanthat the resultant contract is subject to the disclosure and consistency of cost', 39343:'accounting practices clause in lieu of the cost accounting standards clause. □ theofferor herebyclaimsan exemption from the cost accounting standardsclause', 39344:'under the provisions of 48 cfr 9903.2012b and certifies that the offeroris eligible for use of the disclosure and consistencyof', 39345:'cost accounting practices clause because during the cost accounting period immediately preceding the period in which this proposal was submitted,', 39346:'theofferor received lessthan $50million in awards of cascovered prime contractsand subcontracts. the offeror further certifies that if suchstatus changes beforean', 39347:'award resulting from this proposal, the offeror will advisethe contracting officer immediately. caution: an offerormay not claimthe above eligibility for', 39348:'modifiedcontract coverageif this proposal is expected to result in the award of a cascovered contract of $50 million or more', 39349:'or if, during its current cost accounting period, the offeror hasbeenawarded a single cascovered prime contract or subcontractof $50million or', 39350:'more. iii. additional cost accounting standards applicable to existing contracts the offeror shall indicate below whether award of the contemplatedcontract', 39351:'would, in accordance with paragrapha3 of the cost accounting standards clause,require a change in established costaccounting practices affecting existing contracts', 39352:'and subcontracts. □ yes □ no end of provision alternate i apr 1996. as prescribed in 30.2013b, add the following', 39353:'paragraph c5 to part i of the basic provision: □5 certificate of disclosure statement due date by educational institution. if', 39354:'the offeror is an educational institution that, under the transition provisions of 48 cfr 9903.2021f, is or will be required', 39355:'to submit a disclosure statement after receipt ofthisaward, the offeror hereby certifies thatcheck one and complete: □ i a disclosure', 39356:'statement filing due date of has been established withthe cognizant federal agency. □ ii the disclosure statement will be submitted', 39357:'within the 6month period ending months after receipt of this award. name and addressof cognizant acoor federal official where disclosure', 39358:'statement is to be filed: 52.2302 cost accounting standards. as prescribed in 30.2014a1, insert the following clause: cost accounting standards', 39359:'jun 2020 a unless the contract is exempt under 48 cfr 9903.2011 and 9903.2012, the provisions of 48 cfr part', 39360:'9903 are incorporated hereinby reference and thecontractor, inconnectionwith thiscontract, shall52.2 356 subpart 52.2 text of provisions and clauses 52.2303 1', 39361:'cascovered contracts only by submission of a disclosure statement, disclose in writing the contractor’s cost accounting practices as required by', 39362:'48 cfr 9903.2021 through 9903.2025, including methods of distinguishing direct costs from indirect costs and the basis used for allocating', 39363:'indirect costs. the practices disclosed for this contract shall be the same as the practices currently disclosed and applied on', 39364:'all other contracts and subcontracts being performed by the contractor and whichcontain a costaccounting standards casclause. if the contractor hasnotified', 39365:'the contracting officer that the disclosure statement contains trade secrets and commercial or financial information which is privileged and confidential,', 39366:'the disclosure statement shall be protected and shall not be released outside of the government. 2 follow consistently the contractor’s', 39367:'cost accounting practices inaccumulating and reporting contract performance cost data concerning this contract. if any change in cost accounting practices', 39368:'is made for the purposes of any contract or subcontract subject to cas requirements, the change must be applied prospectively', 39369:'to this contract and the disclosure statement must be amended accordingly. if the contract price orcostallowance of this contract is', 39370:'affected bysuch changes, adjustment shall be made in accordance with paragraph a4 or a5 of this clause, as appropriate. 3', 39371:'comply with all cas, including any modifications and interpretations indicated thereto contained in 48 cfr part 9904, in effect on', 39372:'the date of award ofthiscontract or, if the contractor has submitted certified cost or pricing data, on the dateof final', 39373:'agreementon price as shown onthe contractor’ssigned certificate of current cost or pricing data. the contractor shall also comply with any', 39374:'cas or modifications to cas which hereafter become applicable to a contract or subcontract of thecontractor. such complianceshallbe required prospectivelyfrom', 39375:'the date of applicability to such contract or subcontract. 4 i agree to an equitable adjustment as provided in the', 39376:'changes clause of this contract if the contract cost is affected bya change which, pursuant to paragraph a3 of this', 39377:'clause, the contractor is required to make tothe contractor’s established cost accounting practices. iinegotiate with the contracting officer to determine', 39378:'the terms and conditions underwhich achange may be made to a cost accounting practice, other than a change made under', 39379:'other provisions of paragraph a4 of this clause; provided that no agreement may be made under this provision that will', 39380:'increase costs paid by the united states. iii when the parties agree to a change to a cost accounting practice,', 39381:'other than a change under subdivision a4i of this clause, negotiate an equitable adjustment as provided in the changes clause', 39382:'of this contract. 5 agree to an adjustment of the contract price or cost allowance, as appropriate, if the contractor', 39383:'or a subcontractor fails to comply with an applicable cost accounting standard, or to follow any cost accounting practice consistently', 39384:'and such failure results in any increased costs paid by the united states. such adjustment shall provide for recovery of', 39385:'the increased costs to the united states, together with interest thereon computed at the annual rate established under section 6621a2', 39386:'of the internal revenue code of 1986 26 u.s.c. 6621a2 for such period, from the time the payment by the', 39387:'united states was madeto thetime the adjustment is effected. inno case shall the government recover costs greater than theincreasedcost to', 39388:'the government, in the aggregate, on the relevant contracts subject to the price adjustment, unless the contractor made a change', 39389:'in its cost accounting practices of which it was aware or should have been aware at the time of price', 39390:'negotiations and which it failed to disclose to the government. b if the parties fail to agree whether the contractor', 39391:'or a subcontractor has complied with an applicable cas in 48 cfr 9904 or a cas rule or regulation in', 39392:'48 cfr 9903 and as to any cost adjustment demanded by the united states, such failure to agree will constitute', 39393:'a dispute under 41 u.s.c. chapter 71, contract disputes. c the contractor shall permit any authorized representatives of the government', 39394:'to examine and make copies of any documents, papers, or records relating to compliance with the requirements of this clause.', 39395:'d the contractor shall include in all negotiated subcontracts which the contractor enters into, the substance of this clause, except', 39396:'paragraph b, and shall require such inclusionin all other subcontracts, of any tier, includingthe obligationto comply withall cas in effecton', 39397:'the subcontractor’s award dateor if the subcontractor has submitted certified cost or pricing data, onthe date of final agreement onprice', 39398:'as shown onthe subcontractor’s signed certificate of current cost or pricing data. if the subcontract is awarded to a business', 39399:'unit which pursuant to 48 cfr 9903.2012 is subject to other types of cas coverage, the substance of the applicable', 39400:'clause set forth in subsection 30.2014 of thefederal acquisition regulation far shall be inserted. this requirement shall apply only to', 39401:'negotiated subcontracts in excess of the lower cas threshold specified in far 30.2014b on thedate of subcontract award, except thatthe', 39402:'requirement shall not apply to negotiated subcontracts otherwise exempt from the requirement to include a cas clause as specified in', 39403:'48 cfr 9903.2011. end of clause 52.2303disclosure and consistency of costaccountingpractices. as prescribed in 30.2014b1, insert the following clause: 52.2357', 39404:'52.2304 federal acquisition regulation disclosure and consistency of cost accounting practices jun 2020 a thecontractor, inconnectionwith thiscontract, shall 1 comply', 39405:'with the requirements of 48 cfr 9904.401, consistency in estimating, accumulating, and reporting costs; 48 cfr 9904.402, consistency in allocating', 39406:'costs incurred for the same purpose; 48 cfr 9904.405, accounting for unallowable costs; and 48 cfr 9904.406, cost accounting standardcost', 39407:'accounting period, in effecton the date of award of this contract as indicated in 48 cfr part 9904. 2 cascovered', 39408:'contracts only if it is a business unit of a company required to submit a disclosure statement, disclose in writing', 39409:'its cost accounting practices as required by 48 cfr 9903.2021 through 9903.2025. if the contractor has notified the contracting officer', 39410:'that the disclosure statement contains trade secrets and commercial or financial information which is privileged and confidential, the disclosure statement', 39411:'shall be protected and shall not be released outside of the government. 3 ifollowconsistentlythecontractor’scostaccountingpractices. achangetosuchpracticesmaybeproposed, however, by eitherthe government or', 39412:'the contractor, and the contractor agrees to negotiatewith the contracting officer the terms and conditions under which a change may', 39413:'be made. after the terms and conditions under which the change is to be made have been agreed to, the', 39414:'change must be applied prospectively to this contract, and the disclosure statement, if affected, must be amended accordingly. ii the', 39415:'contractor shall, when the parties agree to a change to a cost accounting practice and the contracting officer hasmade the', 39416:'findingrequired in 48 cfr 9903.2016c, that the change is desirable and not detrimental to the interests of the government, negotiate', 39417:'an equitable adjustment as provided in the changes clause of this contract. in the absence of the required finding, no', 39418:'agreement may be made under this contract clause that will increase costs paid by the united states. 4 agree to', 39419:'an adjustment of the contract price or cost allowance, as appropriate, if the contractor or a subcontractor fails to comply', 39420:'with the applicable cas or to follow any cost accounting practice, and such failure results in any increased costs paid', 39421:'by the united states. such adjustment shall provide for recovery of the increased costs to the united states together with', 39422:'interest thereon computed at the annual rate established under section 6621a2 of the internal revenue code of1986 26 u.s.c. 6621a2,', 39423:'from the time the payment by the united states was made to the time the adjustment is effected. b if', 39424:'the parties fail to agree whether the contractor has complied with an applicable cas, rule, or regulation as specified in', 39425:'48 cfr 9903 and 9904 and as to any cost adjustment demanded by the united states, such failure to agree', 39426:'will constitute a dispute under 41 u.s.c. chapter 71, contract disputes. c the contractor shall permit any authorized representatives of', 39427:'the government to examine and make copies of any documents, papers, and records relating to compliance with the requirements of', 39428:'this clause. d the contractor shall include in all negotiated subcontracts, which the contractor enters into, the substance of this', 39429:'clause, except paragraph b, and shall require such inclusionin all other subcontracts of any tier, except that 1 if the', 39430:'subcontract is awarded to a business unit which pursuant to 48 cfr 9903.2012 is subject to other types of cas', 39431:'coverage, the substance of the applicable clause set forth in section 30.2014 of the federal acquisition regulation far shall be', 39432:'inserted. 2 the requirement in this paragraph d shall apply only to negotiated subcontracts in excess of the lower cas', 39433:'threshold specified in far 30.2014b on the date of subcontract award. 3 the requirement shall not apply to negotiated subcontracts', 39434:'otherwise exempt from the requirement to include a cas clause as specified in 48 cfr 9903.2011. end of clause 52.2304disclosure', 39435:'and consistency of costaccountingpracticesforeign concerns. as prescribed in 30.2014c1, insert the following clause: disclosure and consistency of cost accounting practicesforeign', 39436:'concerns jun 2020 a thecontractor, inconnectionwith thiscontract, shall52.2 358 subpart 52.2 text of provisions and clauses 52.2305 1 comply with', 39437:'the requirements of 48 cfr 9904.401, consistency in estimating, accumulating, and reporting costs; and 48 cfr 9904.402, consistencyin allocating costs', 39438:'incurred for thesame purpose, in effect on the date of award of this contract, as indicated in 48 cfr 9904.', 39439:'2 cost accounting standard cascovered contracts only. if it is a business unit of a company required to submit a', 39440:'disclosure statement, disclose in writing its cost accounting practices as required by 48 cfr 9903.2021 through 48 cfr 9903.2025. if', 39441:'thecontractor has notified the contracting officer thatthe disclosure statementcontains trade secrets and commercial or financial information which is privileged and', 39442:'confidential, the disclosure statement shall be protected and shall not be released outside of the u.s. government. 3 ifollowconsistentlythecontractor’scostaccountingpractices. achangetosuchpracticesmaybeproposed,', 39443:'however, by eitherthe u.s. government or the contractor, and the contractor agrees to negotiatewith the contracting officer the terms and', 39444:'conditions under which a change may bemade. after theterms and conditions underwhich the change is to be made have been', 39445:'agreed to, the change must be applied prospectively to this contract, and the disclosure statement, if affected, must be amended', 39446:'accordingly. ii the contractor shall, when the parties agree to a change to a cost accounting practice and the contracting', 39447:'officer hasmade the findingrequired in 48 cfr 9903.2016c that the change is desirable and not detrimental to the interests of', 39448:'the u.s. government, negotiate an equitable adjustment as provided in the changes clause of this contract. in the absence of', 39449:'the required finding, no agreement may be made under this contract clause that will increase costs paid by the u.s.', 39450:'government. 4 agree to an adjustment of the contract price or cost allowance, as appropriate, if the contractor or a', 39451:'subcontractor fails to comply with the applicable cas or to follow any cost accounting practice, and such failure results in', 39452:'any increased costs paid by the u.s. government. such adjustment shall provide for recovery of the increased costs to the', 39453:'u.s. government, together with interest thereon computed at the annual rate established under section 6621a2 of the internal revenue code', 39454:'of 1986 26 u.s.c. 6621a2 for such period, from the time the payment by the u.s. government was made to', 39455:'the time the adjustment is effected. b if the parties fail to agree whether the contractor has complied with an', 39456:'applicable cas rule, or regulation as specified in 48 cfr 9903 and 48 cfr 9904 and as to any cost', 39457:'adjustment demanded by the u.s. government, such failure to agree will constitute a dispute under 41 u.s.c. chapter 71, contract', 39458:'disputes. c the contractor shall permit any authorized representatives of the u.s. government to examine and make copies of any', 39459:'documents, papers, and records relating to compliance with the requirements of this clause. d the contractor shall include in all', 39460:'negotiated subcontracts, which the contractor enters into, the substance of this clause, except paragraph b, and shall require such inclusionin', 39461:'all other subcontracts of any tier, except that— 1 if the subcontract is awarded to a business unit which pursuant', 39462:'to 48 cfr 9903.2012 is subject to other types of cas coverage, thesubstance of the applicableclause prescribed in federal acquisition', 39463:'regulation far 30.2014 shall be inserted. 2 the requirement in this paragraph d shall apply only to negotiated subcontracts in', 39464:'excess of the lower cas threshold specified in far 30.2014b on the date of subcontract award. 3 the requirement shall', 39465:'not apply to negotiated subcontracts otherwise exempt from the requirement to include a cas clause as specified in 48 cfr', 39466:'9903.2011. end of clause 52.2305 cost accounting standardseducational institution. as prescribed in 30.2014e1, insert the following clause: cost accounting standardseducational', 39467:'institution jun 2020 a unless the contract is exempt under 48 cfr 9903.2011 and 9903.2012, the provisions of 48 cfr', 39468:'9903 are incorporated hereinby reference and thecontractor, inconnectionwith thiscontract, shall 1 cascovered contracts only. if a business unit of an', 39469:'educational institution defined as an institution of higher education in the omb uniform guidance at 2 cfr part 200, subpart', 39470:'a and 20 u.s.c. 1001 is required to submit a disclosure statement, disclose in writing the contractor’s cost accounting practices', 39471:'as required by 48 cfr 9003.2021 through 9903.2025, including methods of distinguishing direct costs from indirect costs and the basis', 39472:'used for accumulating and allocating indirect costs. the practices disclosed for this contract shall be the same as the practices', 39473:'currently disclosed 52.2359 52.2305 federal acquisition regulation and applied on all other contracts and subcontracts being performed by the contractor', 39474:'and which contain a cost accounting standards cas clause. ifthe contractor has notifiedthe contracting officerthat thedisclosurestatement contains trade secrets, and', 39475:'commercial or financial information which is privileged and confidential, the disclosure statement shall be protected and shall not be released', 39476:'outside of the government. 2 follow consistently the contractor’s cost accounting practices inaccumulating and reporting contract performance cost data concerning', 39477:'this contract. if any change in cost accounting practices is made for the purposes of any contract or subcontract subject', 39478:'to cas requirements, the change must be applied prospectively to this contract and the disclosure statement,if required, must be amended', 39479:'accordingly. if an accounting principlechange mandatedunder omb uniform guidance at 2 cfr part 200, subpart e and appendix iii, requires', 39480:'that a change inthe contractor’scostaccountingpractices be made after the date of this contract award, the change must be applied prospectively', 39481:'to this contract and the disclosure statement,if required, must be amended accordingly. if the contract price or cost allowance ofthiscontract', 39482:'is affected by such changes, adjustment shall be made in accordance with paragraph a4 or a5 of this clause, as', 39483:'appropriate. 3 comply with all cas, including any modifications and interpretations indicated thereto contained in 48 cfr 9905 in effect', 39484:'onthe date of award of this contract or, ifthe contractor has submitted certified cost or pricing data, on thedate of', 39485:'final agreement on price as shown on the contractor’s signed certificate of current cost or pricing data. thecontractor shall also', 39486:'comply with any cas or modifications to cas which hereafter become applicable to a contract or subcontract of the contractor.', 39487:'suchcompliance shall be required prospectively from the date of applicability to such contractor subcontract. 4 i agree to an equitable', 39488:'adjustment as provided in the changes clause of this contract if the contract cost is affected bya change which, pursuant', 39489:'to paragraph a3 of this clause, the contractor is required to make tothe contractor’s established cost accounting practices. iinegotiate with', 39490:'the contracting officer to determine the terms and conditions underwhich achange may be made to a cost accounting practice, other', 39491:'than a change made under other provisions of paragraph a4 of this clause; provided that no agreement may be made', 39492:'under this provision that will increase costs paid by the united states. iii when the parties agree to a change', 39493:'to a cost accounting practice, other than a change under subdivision a4i or a4iv of this clause, negotiate an equitable', 39494:'adjustment as provided in the changes clause of this contract. iv agree to an equitable adjustment as provided in the', 39495:'changes clause of this contract, if the contract cost is materially affected byan accounting principle amendment required under the omb', 39496:'uniform guidance at 2 cfr part 200, subpart e and appendix iii, which, on becoming effective after the date of', 39497:'contract award, requires thecontractor to make a change to the contractor’s established cost accounting practices. 5 agree to an adjustment', 39498:'of the contract price or cost allowance, as appropriate, if the contractor or a subcontractor fails to comply with an', 39499:'applicable cost accounting standard, or to follow any cost accounting practice consistently and such failure results in any increased costs', 39500:'paid by the united states. such adjustment shall provide for recovery of the increased costs to the united states, together', 39501:'with interest thereon computed at the annual rate established under section 6621a2 of the internal revenue code of 1986 26', 39502:'u.s.c. 6621a2 for such period, from the time the payment by the united states was madeto thetime the adjustment is', 39503:'effected. inno case shall the government recover costs greater than theincreasedcost to the government, in the aggregate, on the relevant', 39504:'contracts subject to the price adjustment, unless the contractor made a change in its cost accounting practices of which it', 39505:'was aware or should have been aware at the time of price negotiations and which it failed to disclose to', 39506:'the government. b if the parties fail to agree whether the contractor or a subcontractor has complied with an applicable', 39507:'cas or a cas rule or regulation in 48 cfr 9903 and as to any cost adjustment demanded by the', 39508:'united states, such failure to agree will constitute a dispute under 41 u.s.c. chapter 71, contract disputes. c the contractor', 39509:'shall permit any authorized representatives of the government to examine and make copies of any documents, papers, or records relating', 39510:'to compliance with the requirements of this clause. d the contractor shall include in all negotiated subcontracts which the contractor', 39511:'enters into, the substance of this clause, except paragraph b, and shall require such inclusionin all other subcontracts, of any', 39512:'tier, includingthe obligation to comply with all applicable casin effect on thesubcontractor’s award date or,if the subcontractor hassubmitted certified cost', 39513:'or pricing data, on the date offinal agreement on priceas shown on the subcontractor’ssigned certificateof current cost or pricing data,', 39514:'except that 1 if the subcontract is awarded to a business unit which pursuant to 48 cfr 9903.2012 is subject', 39515:'to other types of cas coverage, the substance of the applicable clause set forth in 48 cfr 9903.2014 shall be', 39516:'inserted; 2 the requirement in this paragraph d shall apply only to negotiated subcontracts in excess of the lower cas', 39517:'threshold specified in federal acquisition regulationfar 30.2014b on the date of subcontract award; and 52.2360 subpart 52.2 text of provisions', 39518:'and clauses 52.2306 3 the requirement shall not apply to negotiated subcontracts otherwise exempt from the requirement to include a', 39519:'cas clause as specified in 48 cfr 9903.2011. end of clause 52.2306 administration of cost accounting standards. as prescribed in', 39520:'30.2014d1, insert the following clause: administration of cost accounting standards june 2010 for the purpose of administering the cost accounting', 39521:'standards cas requirements under this contract, the contractor shall take the steps outlined in paragraphs b through i and k', 39522:'through n of this clause: a definitions. as used in this clause affected cascovered contract or subcontract means a contract', 39523:'or subcontract subject to cas rules and regulations for which a contractor or subcontractor 1 used one cost accounting practice', 39524:'to estimate costs and a changed cost accounting practice to accumulate and report costs under the contract or subcontract; or', 39525:'2 used a noncompliant practice for purposes of estimating or accumulating and reporting costs under the contract or subcontract. cognizant', 39526:'federal agency official cfao means the contractingofficer assigned by thecognizant federal agency to administer the cas. desirable change means a', 39527:'compliantchange to a contractor’s establishedor disclosedcost accountingpractices that thecfao finds is desirable andnot detrimentalto thegovernment and is, therefore, not subject', 39528:'to the no increased cost prohibition provisions of cascovered contractsandsubcontractsaffected by thechange. fixedprice contracts and subcontracts means 1 fixedprice contracts', 39529:'and subcontracts described at far 16.202, 16.203, except when price adjustments are based on actual costs of labor or material,', 39530:'described at 16.2031a2, and 16.207; 2 fixedprice incentivecontracts and subcontracts where theprice is not adjustedbased on actualcosts incurred far subpart', 39531:'16.4; 3 orders issued under indefinitedelivery contracts and subcontracts where final payment is not based on actual costs incurred far', 39532:'subpart 16.5; and 4thefixedhourlyrateportionoftimeandmaterialsandlaborhourscontractsandsubcontractsfar subpart 16.6. flexiblypriced contracts and subcontracts means 1 fixedprice contracts and subcontracts described at far 16.2031a2,', 39533:'16.204, 16.205, and 16.206; 2 costreimbursement contracts and subcontracts far subpart 16.3; 3 incentivecontracts and subcontracts where the price may', 39534:'be adjusted based on actual costs incurred far subpart 16.4; 4 orders issued under indefinitedelivery contracts and subcontracts where final', 39535:'payment is based on actual costs incurred far subpart 16.5; and 5thematerialsportionoftimeandmaterialscontractsandsubcontractsfar subpart 16.6. noncompliance means a failure in estimating,', 39536:'accumulating, or reporting costs to 1 comply with applicable cas; or 2 consistently follow disclosed or established cost accounting practices.', 39537:'required change means 1 a change in cost accounting practice that a contractor is required to make in order to', 39538:'comply with applicable standards, modifications or interpretations thereto, that subsequently become applicable to existing cascovered contracts or subcontracts due to', 39539:'the receipt of another cascovered contract or subcontract; or 2 a prospective change to adisclosed orestablished cost accounting practice whenthe', 39540:'cfao determines that the former practice was in compliance with applicable cas and the change is necessary for the contractor', 39541:'to remain in compliance. unilateral change means a change in cost accounting practice from one compliant practice to another compliant', 39542:'practice that a contractor with a cascovered contracts or subcontracts elects to make that has not been deemed a desirable', 39543:'change by the cfao and for whichthe government will payno aggregate increased costs. 52.2361 52.2306 federal acquisition regulation b submitto', 39544:'thecfao a description of any cost accounting practice change as outlined in paragraphsb1 through 3 of this clause including revisions', 39545:'to the disclosure statement, if applicable, and any written statement that the cost impact of the change is immaterial. if', 39546:'a change in cost accounting practice is implemented without submitting the notice required by this paragraph, the cfao may determine', 39547:'the change tobe a failure to followparagraph a2 of the clause at far 52.2302, costaccounting standards; paragraph a4 of the', 39548:'clause at far 52.2303, disclosure and consistency of cost accounting practices; paragraph a4of the clause at far 52.2304, disclosure and', 39549:'consistency of cost accounting practices–foreign concerns;or paragrapha2 of the clause at far 52.2305, cost accounting standards–educational institution. 1 when a', 39550:'description has been submitted for a change in cost accounting practice that is dependent on a contact award and that', 39551:'contractis subsequentlyawarded, notify thecfao within 15 daysafter such award. 2 for any change in cost accounting practice not covered by', 39552:'b1 of this clause that is required in accordance with paragraphs a3 and a4i of theclause at far 52.2302; or', 39553:'paragraphs a3, a4i, or a4iv of the clause at far 52.2305; submit adescription ofthe changeto the cfaonot less than60 days', 39554:'or such other date as may be mutually agreed to bythe cfao and the contractor beforeimplementation of the change. 3', 39555:'for any change in cost accounting practices proposed in accordance with paragraph a4ii or iii of the clauses at far', 39556:'52.2302 and far 52.2305; orwith paragraph a3of the clauses at far 52.2303 and far 52.2304, submit a descriptionof the change', 39557:'not less than 60 days or such other dateas may be mutually agreed to by the cfao and the contractor', 39558:'before implementation of the change. if the change includes a proposed retroactive date submit supporting rationale. 4 submit a description', 39559:'of the change necessary to correct a failure to comply with an applicable cas or to follow a disclosed practice', 39560:'as contemplated by paragraph a5 ofthe clause atfar 52.2302 and far 52.2305; or by paragraph a 4 of the clauses', 39561:'at far 52.2303 and far 52.2304 iwithin 60 days or such other date as may be mutually agreed to bythe', 39562:'cfao and thecontractor after the date of agreement withthe cfao thatthere is a noncompliance; or iiin the event of contractordisagreement,', 39563:'within60 days after the cfao notifies the contractorof the determination of noncompliance. c when requested by thecfao, submit on or', 39564:'beforea date specified by the cfao 1 a general dollar magnitude gdm proposal in accordance with paragraph d or g', 39565:'of this clause. the contractor may submit a detailed costimpact dci proposal in lieu of the requested gdm proposal provided', 39566:'the dci proposal is in accordance with paragraph e or h of this clause; 2 a detailed costimpact dci proposal', 39567:'in accordance with paragraph e or h of this clause; 3 for any request for a desirable changethat isbased on', 39568:'thecriteria infar 30.6032b3ii, the data necessary to demonstrate the required cost savings; and 4 for any request for a desirable', 39569:'changethat isbased on criteria other thanthat in far 30.6032b3ii, a gdm proposal and any other data necessary for the cfao', 39570:'todetermine if the change is a desirable change. d for any change in cost accounting practice subject to paragraph b1,', 39571:'b2, or b3 of this clause, the gdm proposal shall 1 calculate the cost impact in accordance with paragraph f', 39572:'of this clause; 2 use one or more of the following methods to determine the increase or decrease in cost', 39573:'accumulations: iarepresentative sample of affected cascovered contractsandsubcontracts. ii the change in indirect rates multiplied by the total estimated base computed', 39574:'for each of the following groups: a fixedprice contracts and subcontracts. b flexiblypriced contracts and subcontracts. iii any other method', 39575:'that provides a reasonable approximation of the total increase or decrease in cost accumulations for allaffected fixedprice and flexiblypriced contracts', 39576:'and subcontracts; 3 use a format acceptable to the cfao but, as a minimum, include the following data: ithe estimated', 39577:'increase or decrease in cost accumulations byexecutive agency, includingany impact the change may have on contract and subcontract incentives, fees,', 39578:'and profits, for each of the following groups: a fixedprice contracts and subcontracts. b flexiblypriced contracts and subcontracts. ii for', 39579:'unilateral changes, the increased or decreased costs to the government for each of the following groups: a fixedprice contracts and', 39580:'subcontracts. b flexiblypriced contracts and subcontracts; and 4 when requestedby the cfao, identify allaffected cascovered contracts and subcontracts. 52.2362 subpart', 39581:'52.2 text of provisions and clauses 52.2306 e for any change in cost accounting practice subject to paragraph b1, b2,', 39582:'or b3 of this clause, the dci proposal shall 1 show the calculation of the cost impact in accordance with', 39583:'paragraph f of this clause; 2 show the estimated increase ordecrease in cost accumulations for each affected cascoveredcontract and subcontract', 39584:'unless the cfao and contractor agree toinclude ionly thoseaffected cascovered contracts and subcontracts having an estimate to completeexceeding a specified', 39585:'amount; and iian estimate ofthe total increase or decreasein cost accumulations for allaffected cascovered contracts and subcontracts, using the results', 39586:'in paragraph e2i of this clause; 3 use a format acceptable to the cfao but, as a minimum, include the', 39587:'information in paragraph d3 of this clause; and 4 when requestedby the cfao, identify allaffected cascovered contracts and subcontracts. f', 39588:'for gdm and dci proposals that are subject to the requirements of paragraph d or e of this clause, calculate', 39589:'the cost impact as follows: 1 the cost impactcalculation shall include all affected cascovered contracts and subcontracts regardless of their', 39590:'status i.e., open or closed or the fiscal year in which the costs were incurred i.e., whether or not the', 39591:'final indirect rates have been established. 2 for unilateral changes i determine the increased or decreased cost to the government', 39592:'for flexiblypriced contracts and subcontracts as follows: a when the estimated cost to complete using the changed practice exceeds the', 39593:'estimated cost to complete using thecurrent practice, thedifference isincreased costto the government. b when the estimated cost to complete using', 39594:'the changed practice is less than the estimated cost to complete using the currentpractice, the differenceis decreased cost to the', 39595:'government; ii determine the increased or decreased cost to the government for fixedpriced contracts and subcontracts as follows: a when', 39596:'the estimated cost to complete using the changed practice is less than the estimated cost to complete using the currentpractice,', 39597:'the differenceis increased cost tothe government. b when the estimated cost to complete using the changed practice exceeds the estimated', 39598:'cost to complete using thecurrent practice, thedifference isdecreasedcost to thegovernment; iii calculate the total increase or decrease in contract and', 39599:'subcontract incentives, fees, and profits associated with the increased or decreased costs to the government in accordance with 48 cfr', 39600:'9903.306c. the associated increase or decrease is based on the difference betweenthe negotiatedincentives, fees, and profits and the amounts that', 39601:'would have been negotiated had the cost impact been known at the time the contracts and subcontracts were negotiated; and', 39602:'iv calculate the increased cost to the government in the aggregate. 3 for equitable adjustments for required or desirable changes', 39603:'iestimated increased cost accumulations are thebasis for increasing contract prices, target prices andcost ceilings; and iiestimated decreased cost accumulationsare thebasis', 39604:'for decreasingcontract prices, targetprices and cost ceilings. g for any noncompliant cost accounting practice subject to paragraph b4 of this', 39605:'clause, prepare the gdm proposal as follows: 1 calculate the cost impact in accordance with paragraph i of this clause.', 39606:'2 use one or more of the following methods to determine the increase or decrease in contract and subcontract prices', 39607:'or cost accumulations, as applicable: iarepresentative sample of affected cascovered contractsandsubcontracts. ii when the noncompliance involves cost accumulation the change', 39608:'in indirect rates multiplied by the applicable base for only flexiblypriced contracts and subcontracts. iii any other method that provides', 39609:'a reasonable approximation of the total increase or decrease. 3 use a format acceptable to the cfao but, as a', 39610:'minimum, include the following data: i the total increase or decrease in contract and subcontract price and cost accumulations, as', 39611:'applicable, by executive agency, including any impact the noncompliance mayhaveon contractandsubcontract incentives, fees, and profits, for each of the following', 39612:'groups: 52.2363 52.2306 federal acquisition regulation a fixedprice contracts and subcontracts. b flexiblypriced contracts and subcontracts. ii the increased or', 39613:'decreased cost to the government for each of the following groups: a fixedprice contracts and subcontracts. b flexiblypriced contracts and', 39614:'subcontracts. iii the total overpayments and underpayments made by the government during the period of noncompliance. 4 when requestedby the', 39615:'cfao, identify allcascovered contracts and subcontracts. h for any noncompliant practice subject to paragraph b4 of this clause, prepare the', 39616:'dci proposal as follows: 1 calculate the cost impact in accordance with paragraph i of this clause. 2 show the', 39617:'increase or decrease in price and cost accumulationsforeach affected cascovered contract and subcontract unless the cfao and contractor agree to', 39618:'iinclude only thoseaffected cascovered contracts and subcontracts having a contract and subcontract values exceeding a specified amount when the noncompliance', 39619:'involves estimating costs; and b incurred costs exceeding a specified amount when the noncompliance involves accumulating costs; and iiestimatethe total', 39620:'increase or decreasein price and cost accumulations for all affected cascovered contracts and subcontracts using the results in paragraph h2i', 39621:'of this clause. 3 use a format acceptable to the cfao that, as a minimum, include the information in paragraph', 39622:'g3 of thisclause. 4 when requestedby the cfao, identify allcascovered contracts and subcontracts. i for gdm and dci proposals that', 39623:'are subject to the requirements of paragraph g or h of this clause, calculate the cost impact as follows: 1', 39624:'the cost impactcalculation shall include all affected cascovered contracts and subcontracts regardless of their status i.e., open or closed or', 39625:'the fiscal year in which the costs are incurred i.e., whether or not the final indirect rates have been established.', 39626:'2 for noncompliances that involve estimating costs, determine the increased or decreased cost to the government for fixedprice contracts and', 39627:'subcontracts as follows: i when the negotiated contract or subcontract price exceeds what the negotiated price would have been had', 39628:'the contractor used a compliant practice, the difference is increased cost to the government. ii when the negotiated contract or', 39629:'subcontract price is less than what the negotiated price would have been had the contractor used a compliant practice, the', 39630:'difference is decreased cost to the government. 3 for noncompliances that involve accumulating costs, determine the increased or decreased cost', 39631:'to the government for flexiblypriced contracts and subcontracts as follows: i when the costs that were accumulated under the noncompliant', 39632:'practice exceed the costs that would have been accumulated using a compliant practice from the time the noncompliant practice was', 39633:'first implemented until the date the noncompliant practice was replaced with a compliant practice, the difference is increased cost to', 39634:'the government. ii when the costs that were accumulated under the noncompliant practice are less than the costs that would', 39635:'have been accumulated using a compliant practice from the time the noncompliant practice was first implemented until the date thenoncompliant', 39636:'practice was replaced with a compliantpractice, the difference is decreased costto the government. 4 calculate the total increase or decrease', 39637:'in contract and subcontracts incentives, fees, and profits associated with the increased or decreased cost to the government in accordance', 39638:'with 48 cfr 9903.306c. the associated increase or decrease is based on the difference betweenthe negotiatedincentives, fees, and profits and', 39639:'the amounts that would have been negotiated had the contractor used a compliant practice. 5 calculate the increased cost to', 39640:'the government in the aggregate. j if the contractor does not submit the information required by paragraph b or c', 39641:'of this clause within the specified time,or any extension granted bythe cfao, the cfao may takeone or both of thefollowing', 39642:'actions: 1 withhold anamount not to exceed 10 percent of each subsequent amount payment to the contractor’s affected cascovered contracts,', 39643:'up to the estimated general dollar magnitude of the cost impact, until such time as the contractor provides the requiredinformation', 39644:'to thecfao. 2 issue a final decision in accordance with far 33.211 and unilaterally adjust the contracts by the estimated', 39645:'amount of the cost impact. k agree to52.2 364 subpart 52.2 text of provisions and clauses 52.231 1 contract modifications', 39646:'to reflect adjustments required in accordance with paragraph a4ii or a5 of the clauses at far 52.2302 and 52.2305; or', 39647:'with paragrapha3ior a4 ofthe clauses at far 52.2303 and far 52.2304; and 2 repaythe government for any aggregateincreased costpaid to', 39648:'the contractor. lfor all subcontracts subjectto the clauses at far 52.2302, 52.2303, 52.2304, or 52.2305 1 so state in the', 39649:'body of the subcontract, in the letter of award, or in both do not use selfdeleting clauses; 2 include the', 39650:'substance of this clause in all negotiated subcontracts; and 3 within 30 days after award of the subcontract, submitthe following', 39651:'information to the contractor’s cfao: isubcontractor’s name and subcontract number. ii dollar amount and date of award. iii name of', 39652:'contractor making the award. m notify the cfao in writing of any adjustmentsrequired to subcontracts under this contract and agree', 39653:'to an adjustment to this contract price or estimated cost and fee. the contractor shall 1 provide this notice within', 39654:'30 days after the contractor receives the proposed subcontract adjustments; and 2 includea proposal for adjusting thehighertier subcontract orthe contract', 39655:'appropriately. n for subcontracts containing the clause or substance of the clause at far 52.2302, far 52.2303, far 52.2304, or', 39656:'far 52.2305, requirethe subcontractor to comply with all standards in effecton the dateof award or offinal agreement on price, as', 39657:'shown on the subcontractor’s signed certificate of currentcost or pricingdata, whichever is earlier. end of clause 52.2307proposal disclosurecost accounting practice', 39658:'changes. as prescribed in 30.2013c, insert the following provision: proposal disclosurecost accounting practice changesapr 2005 the offeror shall check yes', 39659:'below if the contract award willresult in arequired or unilateral change in cost accounting practice, including unilateral changes requested to', 39660:'be desirable changes. □ yes □ no if the offerorchecked yes above,the offerorshall 1 prepare the price proposal in response', 39661:'to the solicitation using the changed practice for the period of performance for which the practice will be used; and', 39662:'2 submita description of the changed cost accounting practice to the contracting officer and the cognizant federal agency official as', 39663:'pricing supportforthe proposal. end of provision 52.231[reserved] 52.2365 this page intentionally left blank. 52.2366 subpart 52.2 text of provisions and', 39664:'clauses 52.2324 52.232[reserved] 52.2321 payments. as prescribed in 32.111a1, insert the following clause, appropriately modified with respect to payment due', 39665:'date in accordance with agency regulations, in solicitations and contracts when a fixedprice supply contract, a fixedprice service contract, or', 39666:'a contract for nonregulated communication services is contemplated: payments apr 1984 the government shall paythe contractor, upon the submission of', 39667:'properinvoices or vouchers, the prices stipulated in this contract for supplies delivered and accepted or services rendered and accepted, less', 39668:'any deductions provided in this contract. unless otherwise specified in this contract, payment shall be made on partial deliveries accepted', 39669:'by the government if a the amount due on the deliveries warrants it; or b the contractor requests it and', 39670:'the amount due on the deliveries is at least $1,000 or 50 percent of the total contract price. end of', 39671:'clause 52.2322payments under fixedprice research and development contracts. as prescribed in 32.111a2, insert the following clause, as appropriately modified with', 39672:'respect to payment due dates in accordance with agency regulations, in solicitations and contracts when a fixedprice research and development', 39673:'contract is contemplated: payments under fixedprice research and development contractsapr 1984 the government shall paythe contractor, upon submissionof proper invoices', 39674:'orvouchers, the prices stipulated in this contract for work delivered or rendered and accepted, less any deductions provided in this', 39675:'contract. unless otherwise specified, payment shall be made upon acceptance of any portion of the work delivered or rendered for', 39676:'which a price is separately stated in the contract. end of clause 52.2323 payments under personal services contracts. as prescribed', 39677:'in 32.111a3, insert the following clause, appropriately modified with respect to payment due dates in accordance with agency regulations, in', 39678:'solicitations and contracts for personal services: payments under personal services contracts apr 1984 the government shall paythe contractor for the', 39679:'services performed by thecontractor, as set forth in the schedule of this contract, atthe rates prescribed, upon the submission by', 39680:'the contractorof proper invoices ortime statements to the office or officer designated and at thetime provided for in this contract.', 39681:'the government shall also pay the contractor a a per diem rate in lieu of subsistence for each day the', 39682:'contractor is in a travel status away from home or regular place of employment in accordance with federal travel regulations', 39683:'41 cfr 1017 as authorized in appropriate travel orders; and b any other transportation expenses if provided for in the', 39684:'schedule. end of clause 52.2324payments under transportation contracts and transportationrelatedservicescontracts. as prescribed in 32.111a4, insert the following clause, appropriately modified', 39685:'with respect to payment due dates in accordance with agency regulations, in solicitations and contracts for transportation or transportationrelated services:', 39686:'payments under transportation contracts and transportationrelated services contractsapr 1984 52.2367 52.2325 federal acquisition regulation the government shall pay the contractor', 39687:'upon the submission of properly certified invoices or vouchers, the amount due for services rendered and accepted, lessdeductions, ifany, as', 39688:'herein provided. end of clause 52.2325 payments under fixedprice construction contracts. as prescribed in 32.111a5, insert the following clause: payments', 39689:'under fixedprice construction contracts may 2014 a payment of price. the government shall pay the contractor the contract price as', 39690:'provided in this contract. b progress payments. the government shall make progress payments monthly as the work proceeds, or at', 39691:'more frequent intervalsas determined by thecontracting officer,on estimates of workaccomplished which meets the standards of quality established under the contract,', 39692:'asapproved bythe contracting officer. 1 the contractor’s request for progress payments shall include the following substantiation: i an itemization of', 39693:'the amounts requested, related to the various elements of work required by the contract covered by the payment requested. ii', 39694:'a listing of the amount included for work performed by each subcontractor under the contract. iii a listing of the', 39695:'total amount of each subcontract under the contract. iv a listing of the amounts previously paid to each such subcontractor', 39696:'under the contract. v additional supporting datain a form and detail requiredby the contracting officer. 2 in the preparation of', 39697:'estimates, the contractingofficer may authorize material delivered on the site and preparatory work done to be taken into consideration. material', 39698:'delivered to the contractor at locations other than the site also may be taken into consideration if i consideration is', 39699:'specifically authorized by this contract; and ii the contractor furnishes satisfactory evidence that it has acquired title to such material', 39700:'and that the material will be used to perform this contract. c contractor certification. along with each request for progress', 39701:'payments, the contractor shall furnish the following certification, or payment shall not be made: however,if the contractorelects to delete paragraphc4', 39702:'from the certification, the certification is still acceptable. i hereby certify,to the bestof my knowledge and belief,that 1 the amounts', 39703:'requested are only for performance in accordance with the specifications, terms, and conditions of the contract; 2 all payments due', 39704:'to subcontractors and suppliers from previous payments received under the contract have been made, and timely payments will be made', 39705:'from the proceeds of the payment covered by this certification, in accordance with subcontract agreementsandthe requirementsof chapter 39 oftitle 31,', 39706:'united states code; 3 this request for progress payments does not include any amounts which the prime contractor intends to', 39707:'withhold or retain from a subcontractor or supplier in accordance with the terms and conditions of the subcontract; and 4', 39708:'this certification is not to be construed as final acceptance of a subcontractor’s performance. name title date d refund of', 39709:'unearned amounts. if thecontractor, after making acertifiedrequest for progress payments,discovers that a portion or all of such request constitutes a', 39710:'payment for performance by the contractor that fails to conform to the specifications, terms, and conditions of this contract hereinafter', 39711:'referred to as the unearned amount, the contractor shall 1 notify the contracting officer ofsuch performancedeficiency; and 2 be obligated', 39712:'topaythe government anamount computed by the contractingofficer in the manner provided in paragraph j of this clause equal to interest', 39713:'on the unearned amount from the 8 thday after the date of receipt of the unearned amount until ithe date', 39714:'the contractornotifies thecontracting officer thatthe performancedeficiency has been corrected; or ii the date the contractor reduces the amount of any', 39715:'subsequent certified request for progress payments by an amount equal to the unearned amount. 52.2368 subpart 52.2 text of provisions', 39716:'and clauses 52.2327 e retainage.if the contracting officer finds that satisfactory progress was achieved during any period for which a', 39717:'progress payment is tobe made, the contracting officer shall authorize payment tobe made infull. however, if satisfactory progress has not', 39718:'been made, the contractingofficer may retaina maximum of 10 percent of the amount ofthe payment untilsatisfactory progress is achieved. whenthe', 39719:'work is substantially complete, the contracting officer may retain from previouslywithheld funds and future progresspayments that amountthe contracting officerconsiders adequatefor', 39720:'protection of the government and shall release to the contractor all the remaining withheld funds. also, on completion and acceptance', 39721:'of each separate building, public work, or other division of the contract, for which the price is stated separately in', 39722:'the contract, payment shall be made for the completed work without retention of a percentage. f title, liability, and reservation', 39723:'of rights. all material and work covered by progress payments made shall, at the time of payment, become the sole', 39724:'property of the government, but this shall not be construed as 1 relieving the contractor from the sole responsibility for', 39725:'all material and work upon which payments have been made or the restoration of any damaged work; or 2 waiving', 39726:'the rightof the government to requirethe fulfillment of all of the terms of the contract. g reimbursement for bond premiums.', 39727:'in making these progress payments, the government shall, upon request, reimburse the contractor for the amount of premiums paid for', 39728:'performance and payment bonds including coinsurance and reinsuranceagreements, whenapplicable after the contractorhas furnished evidence of full paymentto the surety. the', 39729:'retainage provisions in paragraph e of this clause shall not apply to that portion of progress payments attributable to bond', 39730:'premiums. h final payment. the government shall pay the amount due the contractor under this contract after 1 completion and', 39731:'acceptance of all work; 2 presentation of a properly executed voucher; and 3 presentation of release of all claims against', 39732:'the government arising by virtue of this contract, other than claims, in stated amounts, that the contractor has specifically excepted', 39733:'from the operation of the release. a release may also be required of the assignee if the contractor’s claim toamountspayable', 39734:'under this contracthas been assigned underthe assignment of claims act of1940 31 u.s.c.3727 and 41 u.s.c. 6305. i limitation because', 39735:'of undefinitized work. notwithstanding any provision of this contract, progress payments shall not exceed 80 percent on work accomplished on', 39736:'undefinitized contract actions. a contract action is any action resulting in a contract, as defined in far subpart 2.1, including', 39737:'contract modifications for additional supplies or services, but not including contract modifications that are within the scope and under the', 39738:'terms of the contract, such as contract modifications issued pursuant to the changes clause, or funding and other administrative changes.', 39739:'j interest computation on unearned amounts. in accordance with 31 u.s.c. 3903c1, the amount payable under paragraph d2 of this', 39740:'clause shall be 1 computed at the rate of averagebond equivalentrates of 91day treasury bills auctioned at themost recent auction', 39741:'of such bills prior to the date the contractor receives the unearned amount; and 2 deducted from the next available', 39742:'payment tothe contractor. end of clause 52.2326 payment under communication service contracts with common carriers. as prescribed in 32.111a6, insert', 39743:'the following clause, appropriately modified with respect to payment due dates in accordance with agency regulations, in solicitations and contracts', 39744:'for regulated communication services by common carriers: payment under communication service contracts with common carriers apr 1984 the government shall', 39745:'paythe contractor, in arrears, uponsubmission of invoices for servicesand facilities furnished in accordance with theterms ofcsas issued under this contract,', 39746:'therates andcharges for theservicesandfacilities as set forth in the clause entitled rates, charges and services. end of clause 52.2327payments under', 39747:'timeandmaterials and laborhour contracts. as prescribed in 32.111a7, insert the following clause: 52.2369 52.2327 federal acquisition regulation payments under timeandmaterials', 39748:'and laborhour contracts nov 2021 the government will pay the contractor as follows upon the submissionof vouchers approved by the', 39749:'contractingofficer or the authorized representative: a hourly rate. 1 hourly rate means the rates prescribed in the contract for payment', 39750:'for labor that meets the labor category qualifications of a labor category specified in the contract that are i performed', 39751:'by the contractor; ii performed by the subcontractors; or iii transferred between divisions,subsidiaries, oraffiliates of thecontractor under a common control.', 39752:'2 the amounts shall be computed by multiplying the appropriate hourly rates prescribed in the schedule by the number of', 39753:'direct labor hours performed. 3 the hourly rates shall be paid for all labor performed on the contract that meets', 39754:'the labor qualifications specified in the contract. labor hours incurred to perform tasks for which labor qualifications were specified in', 39755:'the contract will not be paid to the extent the work is performed by employees that do not meet the', 39756:'qualifications specified in the contract, unless specifically authorizedby the contracting officer. 4 the hourly rates shall include wages, indirect costs,', 39757:'general and administrative expense, and profit. fractional parts of an hour shall be payable on a prorated basis. 5 vouchers', 39758:'maybe submitted not more thanonceevery two weeks, to the contracting officer orauthorized representative. a small business concern may receive more', 39759:'frequent payments than every two weeks. the contractor shall substantiate vouchers including any subcontractor hours reimbursed at the hourly rate', 39760:'in the schedule by evidence of actual payment and by i individual daily job timekeeping records; ii records that verify', 39761:'the employees meet the qualifications for the labor categories specified in the contract; or iii other substantiation approved by the', 39762:'contractingofficer. 6 promptly after receipt ofeach substantiated voucher, the government shall, except as otherwise provided in this contract, and subject', 39763:'to theterms ofparagraph eof this clause, paythe voucher as approved by the contractingofficer or authorized representative. 7 unlessotherwise prescribed in', 39764:'the schedule,the contracting officermay unilaterallyissue acontract modification requiring the contractor to withhold amounts from its billings until a reserve is', 39765:'set aside in an amount that the contracting officer considers necessaryto protect thegovernments interests. the contracting officer may requirea withhold', 39766:'of 5 percent of the amounts due under paragraph a of this clause, but the total amount withheld for the', 39767:'contract shall not exceed $50,000. the amounts withheld shall be retained until the contractor executes and delivers the release required', 39768:'by paragraph g of this clause. 8 unless the schedule prescribes otherwise, the hourly rates in the schedule shall not', 39769:'be varied by virtue of the contractor having performed work on an overtime basis. if no overtime rates are provided', 39770:'in the schedule and overtime work is approved in advance by the contracting officer, overtimeratesshallbe negotiated. failure to agree upon', 39771:'these overtime rates shall be treated as a dispute under the disputes clause of this contract. if the schedule provides', 39772:'rates for overtime, the premiumportion of those rates will be reimbursable only to the extent the overtime is approved by', 39773:'the contracting officer. b materials. 1 for the purposes of this clause i direct materials means those materials that enter', 39774:'directly into the end product, or that are used or consumed directly in connection with the furnishing of the end', 39775:'product or service. ii materials means adirect materials, including supplies transferred betweendivisions, subsidiaries, or affiliates ofthe contractor under a common', 39776:'control; b subcontracts for supplies and incidental services for which there is not a labor category specified in the contract;', 39777:'c other direct costs e.g., incidental services for which there is not a labor category specified in the contract, travel,', 39778:'computer usage charges, etc. ; and d applicable indirect costs. 2 if the contractor furnishes its own materials that meet', 39779:'the definition of a commercial product or commercial service in federal acquisition regulationfar 2.101, the price to be paid for', 39780:'such materials shall not exceed the contractors established catalog or market price, adjusted to reflect the i quantities being acquired;', 39781:'and 52.2370 subpart 52.2 text of provisions and clauses 52.2327 ii actual cost of any modifications necessary because of contract', 39782:'requirements. 3 except as provided for in paragraph b2 of this clause, the government will reimburse the contractor for allowable', 39783:'cost of materials provided the contractor i has made payments for materials in accordance with the terms and conditions of', 39784:'the agreement or invoice; or ii ordinarily makes these payments within 30 days of the submission of the contractors payment', 39785:'request to the government and such payment is in accordance with the terms and conditions of the agreement or invoice.', 39786:'4 payment for materials is subject tothe allowablecost and payment clause of this contract. the contracting officer willdetermineallowablecostsofmaterialsinaccordancewithfar subpart 31.2ineffectonthedateofthiscontract.', 39787:'5 the contractor may include allocable indirect costs and other direct costs to the extent they are i comprised only', 39788:'of costs that are clearly excluded from the hourly rate; ii allocated in accordance with the contractors written or established', 39789:'accounting practices; and iii indirect costs are not applied to subcontracts that are paid at the hourly rates. 6 to', 39790:'the extent able,the contractor shall i obtain materials at the most advantageous prices available with due regard to securing prompt', 39791:'delivery of satisfactory materials; and iitake all cash and trade discounts, rebates,allowances, credits, salvage, commissions, and other benefits. when unable', 39792:'to take advantage of the benefits, thecontractor shall promptlynotify the contractingofficer and givethe reasons. the contractor shall give credit to', 39793:'the government for cash and trade discounts, rebates, scrap, commissions, and other amounts that have accrued to the benefit ofthe', 39794:'contractor, orwould have accrued except for the fault or neglect of the contractor. the contractor shall notdeduct from gross costs', 39795:'thebenefits lost without faultor neglect on thepart of the contractor, or lost through fault of the government. 7 except as', 39796:'provided for in 31.20526e and f, the government will not pay profit or fee to the prime contractor on materials.', 39797:'c if the contractor enters into any subcontract that requires consent under the clause at 52.2442, subcontracts, without obtaining such', 39798:'consent, the government is not required to reimburse the contractor for any costs incurred under the subcontract prior to the', 39799:'date the contractor obtains the required consent. any reimbursement of subcontract costs incurred prior to the date the consent was', 39800:'obtained shall be at the sole discretion of the government. d total cost. it is estimated that the total cost', 39801:'to the government for the performance of this contract shall not exceed the ceiling priceset forthin theschedule, andthe contractor agrees', 39802:'to use its best efforts to perform the work specified in the schedule and all obligations under this contract within', 39803:'such ceiling price. if at any time the contractor has reason to believe that the hourly rate payments and material', 39804:'costs that will accrue in performing this contract in the next succeeding 30 days, if added to all other payments', 39805:'and costs previously accrued, will exceed 85 percent of the ceiling price in the schedule, the contractor shall notify the', 39806:'contracting officer giving a revised estimate ofthe total price tothe government for performing this contract with supporting reasons and documentation.', 39807:'if at any time during performing this contract, the contractor has reason to believe that the total price to the', 39808:'government for performing this contract will be substantially greater or less than thethen stated ceiling price, the contractor shall so', 39809:'notify the contracting officer, giving a revised estimate of the totalprice for performing this contract, with supporting reasons and documentation.', 39810:'if at any time during performing this contract, the government has reason to believe that the work to be required', 39811:'in performing this contract will be substantially greater or less than the stated ceiling price, the contracting officer will so', 39812:'advisethe contractor, giving thethen revised estimate of the total amount of effort to be required under the contract. e ceiling', 39813:'price. the government will not be obligated to pay the contractor any amount in excess of the ceiling price in', 39814:'the schedule, and the contractor shall not be obligated to continue performance if to do so would exceed the ceiling', 39815:'price set forth in the schedule, unless and untilthe contracting officernotifies thecontractor in writing that the ceilingprice has been increased', 39816:'and specifies in the notice a revised ceiling that shall constitute the ceiling price for performance under this contract. when', 39817:'and to the extent that the ceiling price set forth in the schedule has been increased, any hours expended and', 39818:'material costs incurred by the contractor in excess of the ceiling price before the increase shall be allowable to the', 39819:'same extent as if the hours expended and material costs had been incurred after the increase in the ceiling price.', 39820:'f audit. at any time beforefinal payment under this contract,the contracting officermay request audit ofthe vouchers and supporting documentation. each', 39821:'payment previously made shall be subject to reduction to the extent of amounts, on preceding vouchers,that arefound by the contracting', 39822:'officer or authorized representative not to have been properly payable and shall also be subject to reduction for overpayments or', 39823:'to increase for underpayments. upon receipt and approval of the voucher designated by the contractor as the completion voucher and', 39824:'supporting documentation, and upon compliance by the contractor with all terms of this contract including, without limitation, terms relating to', 39825:'patents and the terms of 52.2371 52.2328 federal acquisition regulation paragraph g of this clause,the government shall promptly pay any', 39826:'balance due the contractor. the completionvoucher, and supporting documentation, shall be submitted by the contractor as promptly as practicable following', 39827:'completion of the work under this contract, but in no eventlater than 120 daysorsuch longer period as the contracting officer', 39828:'mayapprove in writing from the date of completion. g assignment and release of claims. the contractor, and each assignee under', 39829:'an assignmententered intounder this contract and in effect at the time offinal payment under this contract, shall executeand deliver, at', 39830:'the time of and as a condition precedent to finalpayment underthis contract, a release discharging the government, itsofficers, agents, and', 39831:'employees of and from all liabilities, obligations, and claims arising out of or under this contract, subject only to the', 39832:'following exceptions: 1 specified claims in stated amounts, or in estimated amounts if the amounts are not susceptible of exact', 39833:'statement by thecontractor. 2 claims, together with reasonable incidental expenses, based upon the liabilities of the contractor to third parties', 39834:'arising out of performing this contract, that are not known to the contractor on the date of the execution of', 39835:'the release, and of which the contractor gives noticein writing to thecontracting officer not more than 6 years afterthe dateof', 39836:'the release or thedate of any noticeto thecontractor that thegovernmentis prepared tomake final payment, whichever is earlier. 3 claims for', 39837:'reimbursement of costs other than expenses of the contractor by reason of its indemnification of the government against patent liability,', 39838:'including reasonable incidental expenses, incurred by the contractor under the terms of this contract relating to patents. h interim payments', 39839:'on contracts for other than services. 1 interim payments made prior to the final payment under the contract are contract', 39840:'financing payments. contract financing payments are not subject to the interest penalty provisions of the prompt payment act. 2 the', 39841:'designated payment office will make interimpaymentsforcontract financingon the [contracting officer insert day as prescribed by agency head; if not prescribed,', 39842:'insert 30th ] day after the designated billing office receives a proper payment request. in the event that the government', 39843:'requires an audit or other review of a specific payment request to ensure compliancewith the termsand conditions of the contract,', 39844:'the designated payment office is not compelled to make payment by the specified due date. i interim payments on contracts', 39845:'for services. for interim payments made prior to the final payment under this contract, the government will make payment in', 39846:'accordance with the prompt payment act 31 u.s.c. 3903 and prompt payment regulations at 5 cfr part 1315. end of', 39847:'clause 52.2328discounts forprompt payment. as prescribed in 32.111b1, insert the following clause: discounts for prompt payment feb 2002 a discounts', 39848:'for prompt payment will not be consideredin the evaluation of offers. however, anyoffered discount will form apart of theaward, and', 39849:'will be takenif payment is made within the discount period indicatedin the offer by theofferor. asan alternative to offering a', 39850:'discount for prompt payment in conjunction with theoffer, offerors awarded contracts may include discounts for prompt payment on individual invoices.', 39851:'b in connection with any discount offered for promptpayment, timeshallbe computed from the date of theinvoice. if the contractor has', 39852:'not placed a date on the invoice, the due date shall be calculated from the date the designated billing officereceives', 39853:'a proper invoice,providedthe agencyannotates such invoice with the date of receipt at thetime ofreceipt. for the purpose of computing the', 39854:'discount earned, payment shall be considered to have been made on the date that appears on the payment check or,', 39855:'for an electronic funds transfer, the specifiedpayment date. when the discount date falls on a saturday, sunday, or legal holiday', 39856:'when federal government officesare closedandgovernment business is not expected to beconducted, payment may be madeon the following business day. end', 39857:'of clause 52.2372 subpart 52.2 text of provisions and clauses 52.23210 52.2329limitation onwithholding of payments. as prescribed in 32.111b2, insert', 39858:'a clause substantially as follows, appropriately modified with respect to payment due dates in accordance with agency regulations, in solicitations', 39859:'and contracts when a supply contract, service contract, timeand materials contract, laborhour contract, or research and development contract is contemplated', 39860:'that includes two or more terms authorizing the temporary withholding of amounts otherwise payable to the contractor for supplies delivered', 39861:'or services performed: limitation on withholding of payments apr 1984 if more than one clause or schedule term of this', 39862:'contract authorizes the temporary withholding of amounts otherwise payable to the contractor for supplies delivered or services performed, the total', 39863:'of the amounts withheld at any one time shall not exceed the greatest amount that may be withheld under any', 39864:'one clause or schedule term at that time; provided, that this limitation shall not apply to a withholdings pursuant to', 39865:'anyclause relating to wages or hours of employees; b withholdings not specificallyprovided for bythis contract; c the recovery of overpayments;', 39866:'and d any other withholding for which thecontracting officer determines thatthis limitation is inappropriate. end of clause 52.23210 payments under', 39867:'fixedprice architectengineer contracts. as prescribed in 32.111c1, insert the following clause: payments under fixedprice architectengineer contracts apr 2010 a estimates', 39868:'shall be made monthly of the amount and value of the work and services performed by the contractor under this', 39869:'contract which meet the standards of quality established under this contract. the estimates, along with any supporting datarequired by the', 39870:'contracting officer, shall be prepared by thecontractor andsubmitted alongwith its voucher. b afterreceipt of each substantiated voucher, the government shall', 39871:'pay the voucheras approved bythe contracting officer or authorized representative. the contracting officer shall require a withholding from amounts due', 39872:'under paragraph a ofthis clause of up to 10percent only if the contracting officer determines thatsuch a withholding is necessary', 39873:'to protect thegovernment’s interest and ensure satisfactory completion of the contract. the amount withheldshallbe determined based uponthe contractor’sperformance recordunder this', 39874:'contract. whenever the contracting officer determines that the work is substantially complete and that the amount retained is in excess', 39875:'of the amount adequate for the protection of the government, thecontracting officer shall release the excess amount tothe contractor. c', 39876:'upon satisfactory completion by the contractor and final acceptance by the contracting officer of all thework done by the contractor', 39877:'under the statement of architectengineer services, the contractor will be paid the unpaid balance of any money due for work', 39878:'under the statement, including all withheld amounts. d before final payment under the contract, or before settlement upon termination of', 39879:'the contract, and as a condition precedent thereto, the contractorshallexecute anddeliver to thecontracting officer a releaseof all claims against the', 39880:'government arising under or by virtue of this contract, other than any claims that are specifically excepted by the contractor', 39881:'from the operation of the release in amounts stated in the release. e notwithstanding any other provision in this contract,', 39882:'and specifically paragraph b of this clause, progress payments shall not exceed 80 percent on work accomplished on undefinitized contract', 39883:'actions. a contract action is any action resultinginacontract,asdefinedinfar subpart 2.1, including contract modifications for additional supplies or services, but not', 39884:'including contract modifications that are within the scope and under the terms of the contract, such as contract modifications issued', 39885:'pursuant to the changes clause, or funding and other administrative changes. end of clause 52.2373 52.23211 federal acquisition regulation 52.23211', 39886:'extras. as prescribed in 32.111c2, insert the following clause, appropriately modified with respect to payment due dates in accordance with', 39887:'agency regulations, in solicitations and contracts when a fixedprice supply contract, fixedprice service contract, or transportation contract is contemplated: extras', 39888:'apr 1984 except as otherwise provided in this contract, no payment for extras shall be made unless such extras and', 39889:'the price therefor have been authorizedin writingby the contracting officer. end of clause 52.23212 advance payments. as prescribed in 32.412a,', 39890:'insert the following clause: advance payments may 2001 a requirements for payment. advance payments will be made under this contract', 39891:'1 upon submission of properly certified invoices orvouchers by the contractor, and approval bythe administeringoffice, [insert the name of the', 39892:'office designated under agency procedures], or 2 under a letter of credit. the amount of the invoice or voucher submitted', 39893:'plus all advance payments previously approved shall not exceed $. if a letter of credit is used, the contractor shall', 39894:'withdraw cash only when needed for disbursements acceptable under this contract and report cash disbursements and balances asrequired by theadministering', 39895:'office. thecontractor shall apply terms similar tothisclause to any advance payments to subcontractors. b special account. until 1 the contractor', 39896:'has liquidated all advance payments made under the contract and related interest charges and2the administeringoffice has approvedin writingthe release of', 39897:'any funds due and payable tothe contractor, all advance payments and other payments under this contract shall be made bycheckpayable', 39898:'to the contractor markedfordeposit only in the contractor’s special account with the [insert the name of the financial institution]. none', 39899:'of the funds in the special account shall be mingled with other funds of the contractor. withdrawals fromthe special accountmay', 39900:'be made only by check of the contractor countersigned by the contractingofficer ora government countersigning agent designated inwriting by thecontracting', 39901:'officer. c use of funds. the contractor may withdraw funds from the special account only to pay for properly allocable,', 39902:'allowable, and reasonable costs for direct materials, directlabor, and indirect costs. otherwithdrawals require approval in writing bythe administering office. determinations', 39903:'of whether costsare properly allocable, allowable, and reasonable shall be in accordance with generally accepted accounting principles, subject to any', 39904:'applicable subparts of part 31 of the federal acquisition regulation. d repayment to the government. at any time, the contractor', 39905:'may repay all or any part of the funds advanced by thegovernment. whenever requested in writing to do so by', 39906:'theadministering office, the contractor shall repay to the government any partof unliquidated advance payments considered by the administering office to', 39907:'exceed the contractor’s current requirements or the amount specified in paragraph a of this clause. if the contractor fails to', 39908:'repay the amount requested by theadministering office, all orany part of the unliquidated advance payments may be withdrawn from the', 39909:'special account by check signed by only the countersigning agent and applied to reduction of the unliquidated advance payments under', 39910:'this contract. e maximum payment. when the sum of all unliquidated advancepayments, unpaid interestcharges, and other payments exceed percent of', 39911:'thecontract price, the government shall withhold further payments to the contractor. on completion or termination of the contract, the government', 39912:'shall deduct from the amount due to the contractor all unliquidated advance payments and all interest charges payable. if previous', 39913:'payments to the contractor exceedthe amountdue,the excess amount shall be paid to the government on demand. for purposes of this', 39914:'paragraph, the contract price shall be considered to be the stated contract price of $, less any subsequent price reductions', 39915:'under the contract, plus 1 any price increases resulting from any terms of this contract for price redetermination or escalation,', 39916:'and 2 any other price increases that do not, in the aggregate, exceed $ [insert an amount not higher than', 39917:'10 percent of the stated contract amount inserted in this paragraph]. any payments withheld under this paragraph shall be applied', 39918:'to reduce the unliquidated advance payments. if full liquidation has been made, payments under the contract shall resume. 52.2374 subpart', 39919:'52.2 text of provisions and clauses 52.23212 f interest. 1 the contractor shall pay interest to the government on the', 39920:'daily unliquidated advance payments at the daily rate specified in paragraph f3 of this clause. interest shall be computed at', 39921:'the end of each calendar month for the actualnumber of daysinvolved. for the purpose ofcomputingthe interest charge i advance payments', 39922:'shall be considered as increasing the unliquidated balance as of the date of the advance payment check; ii repayments by', 39923:'contractor check shall be considered as decreasing the unliquidated balance as of the date on which the check is received', 39924:'by thegovernmentauthority designated by thecontracting officer; and iii liquidations by deductions from government payments to the contractor shall be considered', 39925:'as decreasing the unliquidated balance as of the date of the check for the reduced payment. 2 interestcharges resulting from', 39926:'themonthly computation shall be deducted from payments, other than advance payments, due the contractor. if the accrued interest exceeds the', 39927:'payment due, any excess interest shall be carried forward and deducted from subsequent payments. interest carried forward shall not be', 39928:'compounded. interest on advance payments shall cease to accrue upon satisfactory completion or termination of the contract for the convenience', 39929:'of the government. the contractor shall charge interest on advancepayments to subcontractors in themanner described aboveandcredit the interest to the', 39930:'government. interestneednot be charged on advance paymentsto nonprofit educational or research subcontractors for experimental, developmental, or research work. 3 if', 39931:'interest isrequired under the contract, the contracting officer shall determine a daily interest rate based on the higher of i', 39932:'the published prime rate of the financial institution depository in which the special account is established or ii therate established', 39933:'by the secretaryof the treasury underpub.l.9241 50 u.s.c. app.1215b2. the contracting officer shall revise the daily interest rate during the', 39934:'contract period in keeping with any changes in the cited interest rates. 4 if the full amount of interest charged', 39935:'under this paragraph has not been paid bydeduction or otherwise upon completion or termination of this contract, the contractor shall', 39936:'pay the remaining interest to the government on demand. g financial institution agreement. before an advance payment is made under', 39937:'this contract, the contractor shall transmit to the administering office, inthe form prescribed bythe administering office, an agreement in triplicate', 39938:'fromthe financial institution in which the special account is established, clearly setting forth the special character of the account and', 39939:'the responsibilities of the financial institution under the account. the contractor shall select a financial institution that is a member', 39940:'bank of the federal reserve system, an insured bank within the meaning of the federal deposit insurance corporation act 12', 39941:'u.s.c. 1811, or a credit union insured by the national credit union administration. h lien on special bank account. the', 39942:'government shall have a lien upon any balance in the special account paramount to all other liens. the government lien', 39943:'shall secure the repayment of any advance payments made under this contract and any related interest charges. i lien on', 39944:'property under contract. 1alladvancepaymentsunderthiscontract,togetherwithinterestcharges,shall be secured, when made, by a lien in favor of the government, paramount to all other', 39945:'liens, on the supplies or other things covered by this contract and on material and other property acquired for or', 39946:'allocated to the performance of this contract, except to the extent that the government by virtue of any other terms', 39947:'of this contract, or otherwise, shall have valid title to thesupplies, materials, or other property as against othercreditors of the', 39948:'contractor. 2 the contractor shall identify, bymarking or segregation,allpropertythat is subject toa lien infavor of the government by virtue of', 39949:'any terms of this contract in such a way as to indicate that it is subject to a lien and', 39950:'that it has been acquired for or allocated to performing this contract. if, for any reason, the supplies, materials, or', 39951:'other property are not identified by marking orsegregation, thegovernmentshallbe consideredto have a lien to theextent of the government’s interest under', 39952:'this contract on any mass of property with which the supplies, materials, or other property are commingled. the contractor shall', 39953:'maintain adequate accounting control over the property on its books and records. 3 if, at any time during the progress', 39954:'of the work on the contract, it becomes necessary to deliver to a third person any items or materials on', 39955:'which the government has a lien, the contractor shall notify the third person of the lien and shall obtain from', 39956:'the third person a receipt in duplicate acknowledging the existence of the lien. the contractor shall provide a copy of', 39957:'each receiptto thecontracting officer. 4 if, under the termination clause, the contracting officer authorizes the contractorto sellor retain termination inventory,the', 39958:'approval shall constitute a release of the government’slien to the extent that i the termination inventory is sold or retained;', 39959:'and ii the sale proceeds or retention credits are applied to reduce any outstanding advance payments. j insurance. 1 the', 39960:'contractor shall maintain with responsible insurance carriers i insurance on plant and equipment against fire and other hazards, to the', 39961:'extent that similar properties are usually insured by others operating plants and properties of similar character in the same general', 39962:'locality; 52.2375 52.23212 federal acquisition regulation ii adequate insurance against liability on account of damage to persons or property; and', 39963:'iii adequate insurance under all applicable workers’ compensation laws. 2 until work under this contract has been completed and all', 39964:'advance payments made under the contract have been liquidated, the contractor shall i maintain this insurance; ii maintain adequate insurance', 39965:'on any materials, parts, assemblies, subassemblies, supplies, equipment, and other property acquired for or allocable to this contract and subject', 39966:'to the government lien under paragraph i of this clause; and iii furnish any evidence withrespect to its insurance thatthe', 39967:'administeringoffice may require. k default. 1ifanyofthefollowingeventsoccurs,thegovernmentmay,bywrittennoticetothecontractor,withhold further withdrawals from the special account and further payments on this contract: itermination of', 39968:'this contract for a fault ofthe contractor. iiafinding by the administering office that the contractorhas failed to a observe any', 39969:'of the conditions of the advance payment terms; b comply with any material term of this contract; c make progress', 39970:'or maintain a financial condition adequate for performance of this contract; d limit inventory allocated to this contract to reasonable', 39971:'requirements; or e avoid delinquency inpayment of taxes or ofthe costs of performing this contract in the ordinary course of', 39972:'business. iii the appointment of a trustee, receiver, or liquidator for all ora substantial part of the contractor’s property, or', 39973:'theinstitution of proceedings byor against the contractor for bankruptcy, reorganization, arrangement, orliquidation. iv the service of any writ of attachment,', 39974:'levy of execution, or commencement of garnishment proceedings concerning the special account. v the commissionof an act of bankruptcy. 2', 39975:'if any of the events described in paragraph k1 of this clause continue for 30 days after the written notice', 39976:'to the contractor, the government may takeany of the following additional actions: iwithdraw by checks payable to the treasurer of', 39977:'the united states,signed only by the countersigning agency, all or any part of the balance in the special account and', 39978:'apply the amounts to reduce outstanding advance payments and any other claims of the government against the contractor. iicharge interest,', 39979:'inthe mannerprescribed in paragraph fof this clause, onoutstanding advancepayments during the period of any event described in paragraph k1 of', 39980:'this clause. iii demand immediate repayment by the contractor of the unliquidated balance of advance payments. iv takepossession of and,', 39981:'with or without advertisement, sell at public or private sale all or any part of the property on which the', 39982:'government has a lien under this contract and, after deducting any expenses incident to the sale, apply the net proceeds', 39983:'of the sale to reduce the unliquidated balance of advance payments or other government claims against the contractor. 3 the', 39984:'government may take any of the actions described in paragraphs k1 and 2 of this clause it considers appropriate at', 39985:'its discretion and without limiting any other rights of the government. l prohibition against assignment. notwithstanding any other terms of', 39986:'this contract, the contractor shall not assign this contract, any interesttherein, orany claim under the contract to any party. m', 39987:'information and access to records. thecontractor shall furnish to the administering office 1 monthly or at other intervals as required,', 39988:'signed or certified balance sheets and profit and loss statements together with a report on the operation of the special', 39989:'account in the form prescribed by the administering office;and2if requested, other information concerning theoperation of thecontractor’s business. the contractor shall', 39990:'provide the authorized government representatives proper facilities for inspection ofthe contractor’sbooks, records, and accounts. n other security. the terms of', 39991:'this contract are considered to provide adequate security to the government for advance payments; however, if the administering office considers', 39992:'the securityinadequate, the contractor shall furnish additional security satisfactory tothe administeringoffice, to the extent that the securityis available. o representations.', 39993:'the contractor represents the following: 1 the balance sheet, the profit and loss statement, and any other supporting financial statements', 39994:'furnished to the administering office fairly reflect the financial condition of the contractor atthe dateshown or the period covered, andthere', 39995:'has been no subsequent materially adverse change in the financial condition of the contractor. 2 no litigation or proceedings are', 39996:'presently pending or threatened against the contractor, except as shown in the financial statements. 52.2376 subpart 52.2 text of provisions', 39997:'and clauses 52.23212 3 the contractor has disclosed all contingent liabilities, except for liability resulting from the renegotiation of defense', 39998:'production contracts, in the financial statements furnished to the administering office. 4 none of the terms in this clause conflict', 39999:'with the authority under which the contractor is doing business or with the provisionof any existing indentureor agreement ofthe contractor.', 40000:'5 the contractor has the power to enter into this contract and accept advance payments, and has taken all necessary', 40001:'action to authorize the acceptance under the terms of this contract. 6 the assets of the contractor are not subject', 40002:'to any lien or encumbrance of any character except for current taxes not delinquent, and except as shown in the', 40003:'financial statements furnished bythe contractor. there is nocurrent assignmentof claims underany contractaffected by these advance payment provisions. 7 all information', 40004:'furnishedby the contractor to the administering office in connection with each request for advance payments is true and correct. 8', 40005:'these representations shall be continuing and shall be considered to have been repeated by the submission of each invoice for', 40006:'advance payments. p covenants. to the extentthe government considers it necessary whileany advance payments made under this contract remain outstanding,', 40007:'the contractor, without the priorwritten consent ofthe administering office, shall not 1 mortgage, pledge, or otherwise encumber or allow to', 40008:'be encumbered, any of the assets of the contractor now owned or subsequently acquired, or permit any preexisting mortgages, liens,', 40009:'or other encumbrances to remain on or attach to any assets of the contractor which are allocated to performing this', 40010:'contract and with respect to which the government has a lien under this contract; 2 sell, assign, transfer,or otherwise dispose', 40011:'of accounts receivable, notes, orclaimsformoney due or to becomedue; 3 declare or pay any dividends, except dividends payable in stock', 40012:'of the corporation, or make any other distribution on account of any shares of its capital stock, or purchase, redeem,', 40013:'or otherwise acquire for value any of its stock, except as required bysinkingfund or redemption arrangements reported tothe administeringoffice incident', 40014:'tothe establishmentof these advance payment provisions; 4 sell, convey, or lease all ora substantial part ofits assets; 5 acquire for', 40015:'value the stock orother securitiesof any corporation, municipality, orgovernmental authority, except direct obligations of the united states; 6 makeanyadvance or', 40016:'loanor incur any liability asguarantor, surety, or accommodationendorser for any party; 7 permit a writ of attachment or any similar', 40017:'process to be issued against its property without getting a release or bonding the property within 30 days after the', 40018:'entry of the writ of attachment or other process; 8 pay any remunerationin any form toits directors, officers, orkey employeeshigher', 40019:'than rates provided in existing agreements of whichnotice hasbeengiven to the administering office;accrue excessremuneration without first obtaining an agreement subordinating', 40020:'it to all claims of the government; or employ any person at a rate of compensation over $ ayear; 9', 40021:'change substantially the management, ownership, or control of the corporation; 10 merge or consolidatewith anyother firmor corporation, change the typeof', 40022:'business, or engagein any transaction outside the ordinary course of the contractor’s business aspresentlyconducted; 11 depositanyof its funds except in', 40023:'abank ortrust companyinsuredby the federaldeposit insurance corporation or a credit union insured by the national credit union administration; 12 create', 40024:'or incur indebtedness for advances, other than advances to be made under the terms of this contract, or for borrowings;', 40025:'13 make or covenant for capital expenditures exceeding $ in total; 14 permit its net current assets, computed in accordance', 40026:'with generally accepted accounting principles, to become less than $; or 15 make any payments on account of the obligationslisted', 40027:'below,exceptin themanner and to the extent provided in this contract: [list the pertinent obligations] end of clause alternate i apr', 40028:'1984. if the agency desires to waive the countersignature requirement because ofthe contractor’s financial strength, good performance record, and favorable', 40029:'experience concerning cost disallowances, add the following sentence, if appropriate, to paragraph b of the basic clause: 52.2377 52.23212 federal', 40030:'acquisition regulation however, for this contract, countersignature on behalf of the government will not be required unless it is determined', 40031:'necessaryby the administering office. alternate ii may 2001. if used in a costreimbursement contract, substitute the following paragraphs c and', 40032:'e, and paragraphs f1 and f2 for paragraphs c and e and paragraphs f1 and 2 of the basic clause:', 40033:'c use of funds. the contractor shall withdraw funds from the special account only to pay for allowable costs as', 40034:'prescribed by the clause of this contract. payment for any other types of expenses shall be approved in writing by', 40035:'the administering office. e maximum payment. when the sum of all unliquidated advancepayments, unpaid interestcharges, and other payments equal the', 40036:'total estimated cost of $ not including fixedfee, if any for the work under this contract, the government shall withhold', 40037:'further payments to the contractor. uponcompletion or terminationof the contract, thegovernment shall deduct fromthe amount due to the contractor allunliquidatedadvance', 40038:'payments and interest charges payable. the contractor shall pay any deficiency to the government upon demand. for purposes of this', 40039:'paragraph, the estimated cost shall be considered to be the stated estimated cost, less any subsequent reductions of the estimated', 40040:'cost, plus any increases in the estimated costs that do not, in the aggregate, exceed $ [insert an amount not', 40041:'higher than 10 percent of the stated estimated cost inserted in this paragraph]. the estimated cost shall include, without limitation,', 40042:'any reimbursable cost as estimated by the contracting officerincidentto a termination for the convenience of the government. any payments withheld', 40043:'under this paragraph shall be applied to reduce the unliquidated advance payments. if full liquidation has been made, payments under', 40044:'the contract shall resume. f interest. 1 the contractor shall pay interest to the government on the daily unliquidated advance', 40045:'payments at the daily rate specified in paragraph f3 of this clause. interest shall be computed at the end of', 40046:'each calendar month for the actualnumber of daysinvolved. for the purpose ofcomputingthe interest charge, the following shall be observed: i', 40047:'advance payments shall be considered as increasing the unliquidated balance as of the date of the advance payment check. ii', 40048:'repayments by contractor check shall be considered as decreasing the unliquidated balance as of the date on which the check', 40049:'is received by thegovernmentauthority designated by thecontracting officer. iii liquidations by deductions from payments to the contractor shall be considered', 40050:'as decreasing the unliquidated balance as of the dates on which the contractorpresents to the contracting officer full and accurate', 40051:'data for the preparation of eachvoucher. credits resulting from these deductionsshallbe made uponthe approval of the reimbursement vouchersby thedisbursing officer,', 40052:'basedupon thecontracting officer’s certificationof the applicable dates. 2 interestcharges resulting from themonthly computation shall be deducted from anypayments onaccount ofthe', 40053:'fixedfee due to thecontractor. if the accrued interest exceeds thepayment due, any excess interest shall be carried forward and deducted', 40054:'from subsequent payments of the contract price or fixedfee. interest carried forward shall not be compounded. interest on advance payments', 40055:'shall cease to accrue upon i satisfactory completion or ii termination of the contract for the convenience of the government.', 40056:'the contractor shall charge intereston advance payments to subcontractors in the manner described aboveand credit the interest to the government.', 40057:'interestneednot be charged on advance payments to nonprofit educational or research subcontractors for experimental, developmental, or research work. alternate iii', 40058:'apr 1984. if the agency considers a more rapid liquidation appropriate, add the following sentence as the first sentence of', 40059:'paragraph e of the basic clause with the appropriate percentage specified: to liquidate the principal amount of any advance payment', 40060:'made to the contractor, there shall be deductions of percent from all payments made by the government under the contracts', 40061:'involved. alternate iv apr 1984. if the agency provides advance payments under the contract at no interest to the prime', 40062:'contractor, add the following sentences as thebeginning sentences of paragraph f ofthe clause: no interestshallbe charged to the prime contractor', 40063:'for advance payments except for interest charged during a period of default. the terms of this paragraph concerning interest charges', 40064:'for advance payments shall not apply to the prime contractor. alternate v may 2001. if the requirement for a special', 40065:'account is eliminated in accordance with 32.4093e or g, insert the clause set forth below instead of the basic clause.', 40066:'if this alternate is used in combination with alternate ii, disregard the instructions concerning paragraph c, use of funds, in', 40067:'alternate ii; substitute paragraph e, maximum payment, in alternate ii for paragraph d below; and substitute paragraph f, interest, in', 40068:'alternate ii for paragraph e below and change the reference to paragraph f3 in the first sentence of paragraph f', 40069:'of alternate ii to e3. 52.2378 subpart 52.2 text of provisions and clauses 52.23212 if this alternate is used in', 40070:'combination with alternate iii, insert the additional sentence set forth in alternate iii as the first sentence of paragraph d', 40071:'of this alternate. if this alternate is used in combination with alternate iv, insert the additional sentences set forth in', 40072:'alternate iv as the beginning sentences of paragraph e of this alternate. advance payments without special account may 2001 a', 40073:'requirements for payment. advance payments will be made under this contract 1 upon submission of properly certified invoices orvouchers by', 40074:'the contractor,andapproval by the administering office, [insert the name of the office designated under agency procedures], or 2 under a', 40075:'letter of credit. the amount of the invoice or voucher submitted plus all advance payments previously approved shall not exceed', 40076:'$. if a letter of credit is used, the contractor shall withdraw cash only when needed for disbursements acceptable under', 40077:'this contract and report cash disbursements and balances asrequired by theadministering office. thecontractor shall apply terms similar tothisclause to any', 40078:'advance payments to subcontractors. b use of funds. the contractor may use advance payment funds only to pay for properly', 40079:'allocable, allowable, and reasonable costs for direct materials, direct labor, and indirect costs. determinations of whether costsare properly allocable, allowable,', 40080:'and reasonable shall be in accordance with generally accepted accounting principles, subject to any applicable subparts of part 31 of', 40081:'the federal acquisition regulation. c repayment to the government. at any time, the contractor may repay all or any part', 40082:'of the funds advanced by thegovernment. whenever requested in writing to do so by theadministering office, the contractor shall repay', 40083:'to the government any partof unliquidated advance payments considered by the administering office to exceed the contractors current requirements or', 40084:'the amount specified in paragraph a of this clause. d maximum payment. when the sumof all unliquidated advance payments, unpaidinterest', 40085:'charges, and other payments exceed percentof the contract price, thegovernment shall withholdfurther payments tothe contractor. on completion or termination of', 40086:'the contract, the government shall deduct from the amount due to the contractor all unliquidated advance payments and all interest', 40087:'charges payable. if previous payments to the contractor exceedthe amountdue,the excess amount shall be paid to the government on demand.', 40088:'for purposes of this paragraph, the contract price shall be considered to be the stated contract price of $, less', 40089:'any subsequent price reductions under the contract, plus 1 any price increases resulting from any terms of this contract for', 40090:'price redetermination or escalation, and 2 any other price increases that do not, in the aggregate, exceed $ [insert an', 40091:'amount not higher than 10 percent of the stated contract amount inserted in this paragraph]. any payments withheld under this', 40092:'paragraph shall be applied to reduce the unliquidated advance payments. if full liquidation has been made, payments under the contract', 40093:'shall resume. einterest. 1 the contractor shall pay interest to the government on the daily unliquidated advance payments at the', 40094:'daily rate in paragraph e3 of this clause. interest shall be computed at the end of each calendar month for', 40095:'the actual number ofdays involved. for the purpose of computing theinterest charge i advance payments shall be considered as increasing', 40096:'the unliquidated balance as of the date of the advance payment check; ii repayments by contractor check shall be considered', 40097:'as decreasing the unliquidated balance as of the date on which the check is received by thegovernmentauthority designated by thecontracting', 40098:'officer; and iii liquidations by deductions from government payments to the contractor shall be considered as decreasing the unliquidated balance', 40099:'as of the date of the check for the reduced payment. 2 interestcharges resulting from themonthly computation shall be deducted', 40100:'from payments, other than advance payments, due the contractor. if the accrued interest exceeds the payment due, any excess interest', 40101:'shall be carried forward and deducted from subsequent payments. interest carried forward shall not be compounded. interest on advance payments', 40102:'shall cease to accrue upon satisfactory completion or termination of the contract for the convenience of the government. the contractor', 40103:'shall charge interest on advancepayments to subcontractors in themanner described aboveandcredit the interest to the government. interestneednot be charged on', 40104:'advance paymentsto nonprofit educational or research subcontractors, for experimental, developmental, or research work. 3 if interest isrequired under the contract,', 40105:'the contracting officer shall determine a daily interest rate based on the rateestablished by the secretary of the treasuryunder pub.l.924150', 40106:'u.s.c. app., 1215b2. the contracting officer shall revise the daily interest rate during the contract period in keeping with any', 40107:'changes in the cited interest rate. 4 if the full amount of interest charged under this paragraph has not been', 40108:'paid bydeduction or otherwise upon completion or termination of this contract, the contractor shall pay the remaining interest to the', 40109:'government on demand. 52.2379 52.23212 federal acquisition regulation flien on property under contract. 1 all advance payments under this contract,', 40110:'togetherwith interest charges,shall be secured, when made, by a lien in favor of the government, paramount to all other liens,', 40111:'on the supplies or other things covered by this contract and on all material and other property acquired for or', 40112:'allocated to the performance of this contract, except to the extent that the government by virtue of any other terms', 40113:'of this contract, or otherwise, shall have valid title to thesupplies, materials, or other property as against othercreditors of the', 40114:'contractor. 2 the contractor shall identify, bymarking or segregation,allpropertythat is subject toa lien infavor of the government by virtue of', 40115:'any terms of this contract in such a way as to indicate that it is subject to a lien and', 40116:'that it has been acquired for or allocated to performing this contract. if, for any reason, the supplies, materials, or', 40117:'other property are not identified by marking or segregation, the government shall be considered to have a lien to the', 40118:'extent of the governments interest under this contract on any mass of property with which the supplies, materials, or other', 40119:'property are commingled. the contractor shall maintain adequate accounting control over the property on its books and records. 3 if,', 40120:'at any time during the progress of the work on the contract, it becomes necessary to deliver to a third', 40121:'person any items or materials on which the government has a lien, the contractor shall notify the third person of', 40122:'the lien and shall obtain from the third person a receipt in duplicate acknowledging the existence of the lien. the', 40123:'contractor shall provide a copy of each receiptto thecontracting officer. 4 if, under the termination clause, the contracting officer authorizes', 40124:'the contractor tosell or retain termination inventory,the approval shall constitute a release of the governments lien tothe extent that i', 40125:'the termination inventory is sold or retained; and ii the sale proceeds or retention credits are applied to reduce any', 40126:'outstanding advance payments. ginsurance. 1 the contractor shall maintain with responsible insurance carriers i insurance on plant and equipment against', 40127:'fire and other hazards, to the extent that similar properties are usually insured by others operating plants and properties of', 40128:'similar character in the same general locality; ii adequate insurance against liability on account of damage to persons or property;', 40129:'and iii adequate insurance under all applicable workers compensation laws. 2 until work under this contract has been completed and', 40130:'all advance payments made under the contract have been liquidated, the contractor shall i maintain this insurance; ii maintain adequate', 40131:'insurance on any materials, parts, assemblies, subassemblies, supplies, equipment, and other property acquired for or allocable to this contract and', 40132:'subject to the government lien under paragraph f of this clause; and iii furnish any evidence withrespect to its insurance', 40133:'thatthe administeringoffice may require. h default. 1if any of the following events occur, the government may, bywritten notice to the', 40134:'contractor, withhold further payments on this contract: itermination of this contract for a fault ofthe contractor. iiafinding by the administering', 40135:'office that the contractorhas failed to a observe any of the conditions of the advance payment terms; b comply with', 40136:'any material term of this contract; c make progress or maintain a financial condition adequate for performance of this contract;', 40137:'d limit inventory allocated to this contract to reasonable requirements; or e avoid delinquency inpayment of taxes or ofthe costs', 40138:'of performing this contract in the ordinary course of business. iii the appointment of a trustee, receiver, or liquidator for', 40139:'all ora substantial part of the contractors property, or theinstitution of proceedings byor against the contractor for bankruptcy, reorganization, arrangement,', 40140:'orliquidation. iv the commission of an act of bankruptcy. 2 if any of the events described in paragraph h1 of', 40141:'this clause continue for 30 days after the written notice to the contractor, the government may takeany of the following', 40142:'additional actions: icharge interest, in the manner prescribed inparagraph eof this clause,on outstanding advancepaymentsduring the period of any event described', 40143:'in paragraph h1 of this clause. ii demand immediate repayment by the contractor of the unliquidated balance of advance payments.', 40144:'iii take possession ofand, with orwithout advertisement, sellat public orprivatesale allor any part of the property on which the government', 40145:'has a lien under this contract and, after deducting any expenses incident to the sale, apply the net proceeds of', 40146:'the sale to reduce the unliquidated balance of advance payments or other government claims against the contractor. 52.2380 subpart 52.2', 40147:'text of provisions and clauses 52.23212 3 the government may take any of the actions described in paragraphs h1 and', 40148:'h2 of this clause it considers appropriate at its discretion and without limiting any other rights of the government. i', 40149:'prohibition against assignment. notwithstanding any other terms of this contract, the contractor shall not assign this contract, any interesttherein, orany', 40150:'claim under the contract to any party. j information and access to records. the contractor shall furnishto the administering office', 40151:'1 monthly or at other intervals as required, signed or certified balance sheets and profit and loss statements, and, 2if', 40152:'requested, other information concerning the operation of the contractors business. the contractor shall provide the authorized government representatives proper facilities', 40153:'for inspection of the contractors books, records, and accounts. k other security. the terms of this contract are considered to', 40154:'provide adequate security to the government for advance payments; however, if the administering office considers the securityinadequate, the contractor shall', 40155:'furnish additional security satisfactory tothe administeringoffice, to the extent that the securityis available. l representations. the contractor represents the following:', 40156:'1 the balance sheet, the profit and loss statement, and any other supporting financial statements furnished to the administering office', 40157:'fairly reflect the financial condition of the contractor atthe dateshown or the period covered, andthere has been no subsequent materially', 40158:'adverse change in the financial condition of the contractor. 2 no litigation or proceedings are presently pending or threatened against', 40159:'the contractor, except as shown in the financial statements. 3 the contractor has disclosed all contingent liabilities, except for liability', 40160:'resulting from the renegotiation of defense production contracts, in the financial statements furnished to the administering office. 4 none of', 40161:'the terms in this clause conflict with the authority under which the contractor is doing business or with the provisionof', 40162:'any existing indentureor agreement ofthe contractor. 5 the contractor has the power to enter into this contract and accept advance', 40163:'payments, and has taken all necessary action to authorize the acceptance under the terms of this contract. 6 the assets', 40164:'of the contractor are not subject to any lien or encumbrance of any character except for current taxes not delinquent,', 40165:'and except as shown in the financial statements furnished bythe contractor. there is nocurrent assignmentof claims underany contractaffected by these', 40166:'advance payment provisions. 7 all information furnishedby the contractor to the administering office in connection with each request for advance', 40167:'payments is true and correct. 8 these representations shall be continuing and shall be considered to have been repeated by', 40168:'the submission of each invoice for advance payments. m covenants. to the extentthe government considersitnecessary while any advance payments made', 40169:'under this contract remain outstanding, the contractor, without the priorwritten consent ofthe administering office, shall not 1 mortgage, pledge, or', 40170:'otherwise encumber or allow to be encumbered, any of the assets of the contractor now owned or subsequently acquired, or', 40171:'permit any preexisting mortgages, liens, or other encumbrances to remain on or attach to any assets of the contractor which', 40172:'are allocated to performing this contract and with respect to which the government has a lien under this contract; 2', 40173:'sell, assign, transfer,or otherwise dispose of accounts receivable, notes, orclaimsformoney due or to becomedue; 3 declare or pay any dividends,', 40174:'except dividends payable in stock of the corporation, or make any other distribution on account of any shares of its', 40175:'capital stock, or purchase, redeem, or otherwise acquire for value any of its stock, except as required bysinkingfund or redemption', 40176:'arrangements reported tothe administeringoffice incident tothe establishmentof these advance payment provisions; 4 sell, convey, or lease all ora substantial part', 40177:'ofits assets; 5 acquire for value the stock orother securitiesof any corporation, municipality, orgovernmental authority,except direct obligations of the united', 40178:'states; 6 makeanyadvance or loanor incur any liability asguarantor, surety, or accommodationendorser for any party; 7 permit a writ of', 40179:'attachment or any similar process to be issued against its property without getting a release or bonding the property within', 40180:'30 days after the entry of the writ of attachment or other process; 8 pay any remunerationin any form toits', 40181:'directors, officers, orkey employeeshigher than rates provided in existing agreements of whichnotice hasbeengiven to the administering office, accrue excess remuneration', 40182:'without first obtaining an agreement subordinating it to all claims of the government, or employ any person at a rate', 40183:'of compensation over $ ayear; 9 change substantially the management, ownership, or control of the corporation; 52.2381 52.23213 federal acquisition', 40184:'regulation 10 merge or consolidatewith anyother firmor corporation, change the typeof business, or engagein any transaction outside the ordinary course', 40185:'of the contractor’s business aspresentlyconducted; 11 depositanyof its funds except in abank ortrust companyinsuredby the federaldeposit insurance corporation or a', 40186:'credit union insured by the national credit union administration; 12 create or incur indebtedness for advances, other than advances to', 40187:'be made under the terms of this contract, or for borrowings; 13 make or covenant for capital expenditures exceeding $', 40188:'in total; 14 permit its net current assets, computed in accordance with generally accepted accounting principles, to become less than', 40189:'$; or 15 make any payments on account of the obligationslisted below,exceptin themanner and to the extent provided in this', 40190:'contract: [list the pertinent obligations] 52.23213 noticeof progress payments. as prescribed in 32.5023a, insert the following provision in invitations for', 40191:'bids and requests for proposals that include a progress payments clause: notice of progress payments apr 1984 the need for', 40192:'customary progress payments conforming to the regulations in subpart 32.5 of the federal acquisition regulation far willnot be considered as', 40193:'a handicap or adverse factor in the awardof the contract. the progress payments clause included in this solicitation will be', 40194:'included in any resulting contract, modified or altered if necessary in accordance with subsection 52.23216 and its alternate i of', 40195:'thefar. even though the clauseis included in the contract, theclause shall beinoperative during any time the contractor’s accounting system andcontrolsare', 40196:'determined by the government tobe inadequate for segregation and accumulation of contract costs. end of clause 52.23214 noticeof availability of', 40197:'progresspayments exclusivelyfor small business concerns. as prescribed in 32.5023b2, insert the following provision in invitations for bids if it is', 40198:'anticipated that a both small business concerns and others may submit bids in response to the same invitation and b', 40199:'only the small business bidders would need progress payments: notice of availability of progress payments exclusively for small business concerns', 40200:'apr 1984 the progress payments clause will be available only to small business concerns. any bid conditioned upon inclusion of', 40201:'a progress payment clause in the resulting contract will be rejected as nonresponsive if the bidder is not a small', 40202:'business concern. end of clause 52.23215 progress paymentsnot included. as prescribed in 32.5023c, insert the following provision in invitations for', 40203:'bids if the solicitation will not contain one of the provisions prescribed in 32.5023a and b: progress payments not included', 40204:'apr 1984 a progress payments clause is not included in this solicitation, and will not be added to the resulting', 40205:'contract at the time of award. bids conditioned upon inclusion of a progress payment clause in the resulting contract will', 40206:'be rejected as nonresponsive. end of clause 52.2382 subpart 52.2 text of provisions and clauses 52.23216 52.23216 progress payments. as', 40207:'prescribed in 32.5024a, insert the following clause: progress payments nov 2021 the government will make progress payments to the contractor', 40208:'when requested as work progresses, but not more frequently than monthly, in amounts of $2,500 or more approved by thecontracting', 40209:'officer,under thefollowing conditions: a computation of amounts. 1 unless the contractor requests a smaller amount, the government will compute each', 40210:'progress payment as 80 percent of thecontractor’s total costs incurred under this contract whether or not actually paid, plus financing', 40211:'payments to subcontractors see paragraph j of this clause, less the sum of all previous progress payments made by the', 40212:'government under this contract. the contracting officer will consider cost of money that would be allowable under federalacquisition regulation far31.20510', 40213:'as an incurred cost for progress payment purposes. 2 the amount of financing and other payments for supplies and services', 40214:'purchased directly for the contract are limited to the amounts that have been paid by cash, check, or other forms', 40215:'of payment, or that are determined due and will be paid to subcontractors i in accordance with the terms and', 40216:'conditions of a subcontract or invoice; and iiordinarily within 30 daysof the submission of the contractor’s payment request tothe government.', 40217:'3 the government will exclude accrued costs of contractor contributions under employee pension plans until actually paid unless ithe contractor’s', 40218:'practice is to make contributionsto the retirement fund quarterly ormorefrequently;and ii the contribution does not remain unpaid 30 days after', 40219:'the end of the applicable quarter or shorter payment period anycontribution remaining unpaid shall beexcluded from the contractor’s total costs', 40220:'for progress payments until paid. 4 the contractor shall not include the following in total costs for progress payment purposes', 40221:'in paragraph a1 of this clause: i costs that are not reasonable, allocable to this contract, and consistent with sound', 40222:'and generally accepted accounting principles and practices. ii costs incurred by subcontractors or suppliers. iii costs ordinarily capitalized and subject', 40223:'to depreciation or amortization except for the properly depreciated or amortized portion of such costs. iv payments made or amounts', 40224:'payable to subcontractors or suppliers, except for a completed work, including partial deliveries, to which the contractor has acquired title;', 40225:'and b work under costreimbursement ortimeandmaterial subcontracts to which the contractor hasacquired title. 5 the amount of unliquidated progress payments', 40226:'may exceed neither i the progress payments made against incomplete work including allowable unliquidated progress payments to subcontractors nor ii', 40227:'the value, for progress payment purposes, of the incomplete work. incomplete work shall be considered to be the supplies and', 40228:'services required by this contract, for which delivery and invoicing by the contractor and acceptance by the government are incomplete.', 40229:'6 the total amount of progress payments shall not exceed 80 percent of the total contract price. 7 if a', 40230:'progress payment or the unliquidated progress payments exceed the amounts permitted by paragraphs a4 or a5 of this clause, the', 40231:'contractor shall repay the amount of such excess to the government on demand. 8 notwithstanding any other terms of the', 40232:'contract, the contractor agrees not to request progress payments in dollar amounts of less than $2,500. the contracting officer may', 40233:'make exceptions. 9 the costs applicable to items delivered, invoiced, and accepted shall not include costs in excess of the', 40234:'contract price of the items. b liquidation. except asprovided in thetermination for convenience of the government clause, all progress payments', 40235:'shall be liquidated by deducting from any payment under this contract, other than advance or progress payments, the unliquidated progress', 40236:'payments, or 80 percent of the amount invoiced, whichever is less. the contractor shall repay to the government any amounts', 40237:'required by a retroactive price reduction, after computing liquidations and payments on past invoices at the reduced pricesand adjusting the', 40238:'unliquidated progress payments accordingly. the government reservesthe right to unilaterally change from the ordinary liquidation rate to an alternate rate', 40239:'when deemed appropriate for proper contract financing. c reduction or suspension. the contracting officermay reduce or suspend progress payments, increase', 40240:'the rate of liquidation, or take a combination of these actions, after finding on substantial evidence any of the following', 40241:'conditions: 52.2383 52.23216 federal acquisition regulation 1 the contractor failed to comply with any material requirement of this contract which', 40242:'includes paragraphs f and g of this clause. 2 performance ofthiscontract is endangered bythe contractor’s— i failure to make progress;', 40243:'or ii unsatisfactory financial condition. 3 inventory allocated to this contract substantially exceeds reasonable requirements. 4 the contractor is delinquent', 40244:'in payment of the costs of performing this contract in the ordinary course of business. 5 the fair value of', 40245:'the undelivered work is less than the amount of unliquidated progress payments for that work. 6 the contractor is realizing', 40246:'less profit than that reflected in the establishment of any alternate liquidation rate in paragraph b of this clause, and', 40247:'that rate is less than the progress payment rate stated in paragraph a1 of this clause. d title. 1 title', 40248:'to the property described in this paragraph d shall vest inthe government. vestiture shall be immediately upon the date of', 40249:'this contract, for property acquired or produced before that date. otherwise, vestiture shall occur when thepropertyis or should have been', 40250:'allocable orproperlychargeable to this contract. 2 property, as used inthisclause, includes all ofthe belowdescribed items acquired or produced by the', 40251:'contractor that are or should be allocable or properly chargeable to thiscontract under sound and generally accepted accounting principles and', 40252:'practices. i parts, materials, inventories, and work in process; ii special tooling and special test equipment to which the government', 40253:'is to acquire title; iii nondurable i.e., noncapital tools, jigs, dies, fixtures, molds, patterns, taps, gauges, test equipment, and other', 40254:'similar manufacturing aids, title to which would not be obtained as special tooling under paragraph d2ii of this clause; and', 40255:'iv drawings and technical data, to the extent the contractor or subcontractors are required to deliver them to the government', 40256:'by other clauses of this contract. 3 although title to property is in the government under this clause, other applicable', 40257:'clauses of this contract; e.g., the terminationclauses,shalldetermine the handling and disposition ofthe property. 4 the contractor may sell any scrap', 40258:'resulting from production under this contract without requesting the contracting officer’s approval, but the proceeds shall be credited against the', 40259:'costsof performance. 5 to acquire for its own use or dispose of property to which title isvested inthe government under', 40260:'this clause, the contractor must obtainthe contracting officer’s advance approval of the action and the terms. the contractor shall i', 40261:'exclude the allocable costs of the property from the costs of contract performance, and ii repay to the government any', 40262:'amount of unliquidated progress payments allocable tothe property. repaymentmay be by cash or creditmemorandum. 6 when the contractor completes all', 40263:'of the obligations under this contract, including liquidation of all progress payments, title shall vest in the contractor for all', 40264:'property or the proceeds thereof not ideliveredto, and accepted by,the government underthis contract;or iiincorporated in supplies delivered to, and accepted', 40265:'by, the government under this contract and to which title is vested in the government under this clause. 7 the', 40266:'terms of this contract concerning liability for governmentfurnished property shall not apply to property to which the government acquired title', 40267:'solely under this clause. e risk of loss. before delivery to and acceptance by the government, the contractor shall bear', 40268:'the risk of loss for property,the title to which vests in thegovernmentunder this clause, except to the extent thegovernmentexpressly assumes', 40269:'the risk. the contractor shall repay the government an amount equal to the unliquidated progress payments that are based on', 40270:'costs allocable to property that is lost see 45.101. f control of costs and property. the contractor shall maintain an', 40271:'accounting system and controls adequate for the proper administration of this clause. g reports, forms, and access to records. 1', 40272:'the contractor shall promptly furnish reports, certificates, financial statements, and other pertinent informationincluding estimates to complete reasonably requestedby the contracting', 40273:'officer for the administration of this clause. also, the contractor shall give the government reasonable opportunity to examine and verify', 40274:'the contractor’s books,records, and accounts. 2 the contractor shall furnish estimates to complete that have been developed or updated within', 40275:'six months of the dateof the progress payment request. the estimatesto complete shall represent the contractor’s best estimate of total', 40276:'costs to completeall remaining contractwork required under the contract. the estimates shall include sufficient detail to permit government verification. 3', 40277:'each contractor request for progress payment shall: 52.2384 subpart 52.2 text of provisions and clauses 52.23216 ibe submitted on standard', 40278:'form 1443,contractor’s request for progress payment, or theelectronic equivalent as required by agency regulations, in accordance with the form instructions', 40279:'and the contract terms; and iiinclude any additional supporting documentationrequested bythe contracting officer. h special terms regarding default. if this', 40280:'contract is terminated under the default clause, i the contractor shall, on demand, repay to the government the amount ofunliquidatedprogress', 40281:'paymentsand ii title shall vest in the contractor, on full liquidation of progress payments, for all property for which the', 40282:'government elects not to require delivery under the default clause. the government shall be liable for no payment except as', 40283:'provided by the default clause. i reservations of rights. 1 no payment or vesting of title under this clause shall', 40284:'i excuse the contractor from performance of obligations under this contract; or ii constitute a waiver of any of the', 40285:'rights or remedies of the parties under the contract. 2 the government’s rightsandremedies under this clause i shall not be', 40286:'exclusive but rather shall be in addition to any other rights and remedies provided by law or this contract; and', 40287:'iishallnot be affected bydelayed, partial, oromittedexercise of any right, remedy, power, or privilege,nor shall such exercise or any single exercise', 40288:'preclude or impair any further exercise under this clause or the exercise of any other right, power,or privilege of the', 40289:'government. j financing payments to subcontractors. the financing payments to subcontractors mentioned in paragraphs a1 and a2 of this clause', 40290:'shall be all financing payments to subcontractors or divisions, if the following conditions are met: 1 the amounts included are', 40291:'limited to i the unliquidated remainder of financing payments made; plus ii any unpaid subcontractor requests for financing payments. 2', 40292:'the subcontract or interdivisional order is expected to involve a minimum of approximately 6 months between the beginning of work', 40293:'and the first delivery;or, if the subcontractor is asmallbusiness concern, 4 months. 3 if the financing payments are in the', 40294:'form of progress payments, the terms of the subcontract or interdivisional order concerning progress payments iare substantially similar to the', 40295:'termsof this clauseforany subcontractor that isa large business concern, orthis clause with its alternate i for any subcontractor that is', 40296:'a small business concern; ii are at least as favorable to the government as the terms of this clause; iii', 40297:'are not more favorable to the subcontractor or division than the terms of this clause are to the contractor; iv', 40298:'are in conformance with the requirementsof far 32.504e; and v subordinate all subcontractor rights concerning property to which the government', 40299:'has title under the subcontract to the government’s right torequire delivery of the property to thegovernmentif a the contractor defaults;', 40300:'or b the subcontractor becomes bankrupt or insolvent. 4 if the financing payments are in the form of performancebased payments,', 40301:'the terms of the subcontract or interdivisional order concerning payments iare substantially similar to the performancebased payments clause at far', 40302:'52.23232 and meetthe criteria for, anddefinitionof,performancebasedpaymentsinfar part 32; iiare in conformance with therequirements of far 32.504f; and iii subordinate all', 40303:'subcontractor rights concerning property to which the government has title under the subcontract to the government’s rightto require delivery ofthe', 40304:'property tothe government if a the contractor defaults; or b the subcontractor becomes bankrupt or insolvent. 5 if the financing', 40305:'payments are in the form of commercial product or commercial service financing payments, the terms of the subcontract or interdivisional', 40306:'order concerning payments iare constructed in accordance with far 32.206c and included in a subcontract for a commercial product or', 40307:'commercial service purchase that meets the definition and standards for acquisition of commercial products and commercial servicesinfar parts 2 and', 40308:'12; iiare in conformance with therequirements of far 32.504g; and iii subordinate all subcontractor rights concerning property to which the', 40309:'government has title under the subcontract to the government’s rightto require delivery ofthe property tothe government if a the contractor', 40310:'defaults; or b the subcontractor becomes bankrupt or insolvent. 52.2385 52.23216 federal acquisition regulation 6 if financing is in the', 40311:'form of progress payments, the progress payment rate in the subcontract is the customary rate usedby the contractingagency,depending onwhetherthe subcontractor', 40312:'is oris not a small business concern. 7 concerning any proceeds received by the government for property to which title', 40313:'has vested in the government under the subcontract terms, the parties agree that the proceeds shall be applied to reducing', 40314:'any unliquidated financing payments by the government to the contractor under this contract. 8 if no unliquidated financing payments to', 40315:'the contractor remain, but there are unliquidated financing payments that thecontractor has made to any subcontractor,the contractor shall be subrogatedto', 40316:'all therights thegovernmentobtained through the terms required by this clause to be in any subcontract, as if all such rights', 40317:'had been assigned and transferred to thecontractor. 9 to facilitate small businessparticipation insubcontractingunder this contract, the contractor shall provide financing', 40318:'payments to small business concerns, in conformity with the standards for customary contract financing payments stated infar 32.113. the contractor', 40319:'shall not consider the need for such financing payments as a handicap or adverse factor in the award of subcontracts.', 40320:'k limitations on undefinitized contract actions. notwithstanding any other progress payment provisions in this contract, progress payments may not exceed', 40321:'80 percent of costs incurred on work accomplished under undefinitized contract actions. a contract action is any action resulting in', 40322:'a contract, as defined in subpart 2.1, including contract modifications for additional supplies or services, but not including contract modifications', 40323:'that are within the scope and under the terms of the contract, such as contract modifications issued pursuant to the', 40324:'changes clause, or funding and other administrative changes. this limitation shall apply to the costs incurred, as computed in accordance', 40325:'with paragraph a of this clause, and shall remain in effect until the contract action isdefinitized. costs incurred whichare subjectto', 40326:'this limitationshallbe segregated on contractor progress payment requests and invoices from those costs eligible for higher progress payment rates. for', 40327:'purposes of progress payment liquidation, as described in paragraph b of this clause, progress payments for undefinitized contract actions shall', 40328:'be liquidated at 80 percent of the amount invoiced for work performed under the undefinitized contract action as long as', 40329:'the contract action remains undefinitized. the amount of unliquidated progress payments for undefinitized contract actions shall not exceed 80 percent', 40330:'of the maximum liability of the government under the undefinitized contract action or such lower limit specified elsewhere in the', 40331:'contract. separate limits may be specified for separate actions. l due date. the designated payment office will make progresspayments onthe', 40332:'[contracting officer insert date as prescribed by agency head; if not prescribed, insert 30th] day after the designated billing office', 40333:'receives a proper progress payment request. in the event that the government requires an audit or other review of a', 40334:'specific progress payment request to ensure compliancewith the termsand conditions of the contract, the designated payment office is not compelled', 40335:'to make payment by the specified due date. progress payments are considered contract financing and are not subject to the', 40336:'interest penalty provisions of the prompt payment act. m progress payments under indefinitedelivery contracts. the contractor shall account for and', 40337:'submit progress payment requests under individual orders as if the order constituted a separate contract, unless otherwise specified in this', 40338:'contract. end of clause alternate i mar 2000. if the contract is with a small business concern, change each mention', 40339:'of the progress payment and liquidation ratesexcepting paragraph k to the customaryrate of 85 percent for small business concerns see', 40340:'far 32.5011. alternate ii apr 2003. if the contract is a letter contract, add paragraphs n and o. the amount', 40341:'specified in paragraph o shall not exceed 80 percent of the maximum liability of thegovernment under the letter contract. the', 40342:'contractingofficer may specify separate limits for separate parts of the work. n the contracting officer will liquidate progress payments made', 40343:'under this letter contract, unless previouslyliquidated under paragraph b of this clause, using the following procedures: 1 if this letter', 40344:'contract is superseded by a definitive contract, unliquidated progress payments made under this letter contract shall be liquidated by deducting', 40345:'the amount from the first progress or other payments made under the definitive contract. 2 if this letter contract is', 40346:'not superseded by a definitive contract calling for the furnishing of all or part of the articles or services covered', 40347:'under the letter contract, unliquidated progress payments made under the letter contract shall be liquidated by deduction from the amount', 40348:'payableunder thetermination clause. 52.2386 subpart 52.2 text of provisions and clauses 52.23218 3 if this letter contract is partly terminated', 40349:'and partly superseded by a contract, the government will allocate the unliquidated progress payments to the terminated and unterminated portions', 40350:'as the government deems equitable, and will liquidate each portion under the relevant procedure in paragraphs n1 and n2 of', 40351:'this clause. 4 if the method of liquidating progress payments provided in this clause does not result in full liquidation,', 40352:'the contractor shall immediately pay the unliquidated balance to the government on demand. o the amount of unliquidated progress payments', 40353:'shall not exceed [contracting officer specify dollar amount]. alternate iii jun 2020. as prescribed in 32.5024d, add the following paragraph', 40354:'n to the basic clause. if alternate ii is also being used, redesignate the following paragraph as paragraph p: n', 40355:'the provisions of this clause will not be applicable to individual orders at or below the simplified acquisition threshold, as', 40356:'defined in far 2.101 on the date of individual order award. 52.23217 interest. as prescribed in 32.611 a and b,', 40357:'insert the following clause: interest may 2014 a except as otherwise provided in this contract under a price reduction for', 40358:'defective certified cost or pricing data clause or a cost accounting standards clause, all amounts that become payable by the', 40359:'contractor to the government under this contract shall bear simple interest from the date due until paid unless paid within', 40360:'30 days of becoming due. the interest rateshallbe theinterest rate established bythe secretary of the treasury as provided in 41', 40361:'u.s.c. 7109, which is applicable to the period in which the amount becomes due, as provided in paragraph e of', 40362:'this clause, and then at the rate applicable for each sixmonth period as fixed by the secretary until the amount', 40363:'is paid. b the government may issue a demand for payment to the contractor upon finding a debt is due', 40364:'under the contract. c final decisions.the contractingofficer willissue afinal decision as requiredby 33.211 if 1 the contracting officer and the', 40365:'contractor are unable to reach agreement onthe existenceor amount ofa debtin a timely manner; 2 the contractor fails to liquidate', 40366:'adebt previously demanded by the contracting officer within the timeline specified in the demand for payment unless the amounts were', 40367:'not repaid because the contractor has requested an installment payment agreement; or 3 the contractor requests adeferment of collection on', 40368:'a debt previouslydemandedby the contracting officer see 32.6072. d if a demand for payment was previously issued for the debt,', 40369:'the demand for payment included in the final decision shall identify the same due date as the original demand for', 40370:'payment. e amounts shall be due at the earliest of the following dates: 1 the date fixed under this contract.', 40371:'2 the date of the first written demand for payment, including any demand for payment resulting from a default termination.', 40372:'f the interest charge shall be computed for the actual number of calendar daysinvolved beginning on the due date and', 40373:'ending on 1 the date on which the designatedoffice receives payment from the contractor; 2 the date of issuance of', 40374:'a government check to the contractor from which an amount otherwise payable has been withheld as a credit against the', 40375:'contract debt; or 3 the date on which an amount withheld and applied to the contract debt would otherwise have', 40376:'become payable to thecontractor. g the interest charge made under this clause may be reducedunder theprocedures prescribed in 32.6082 of', 40377:'the federal acquisition regulationin effect on the date of this contract. end of clause 52.23218 availability of funds. as prescribed', 40378:'in 32.7061a, insert the following clause: 52.2387 52.23219 federal acquisition regulation availability of funds apr 1984 funds are not presently', 40379:'available for thiscontract. the government’s obligationunder this contract is contingentupon the availability of appropriated funds from which payment for contract', 40380:'purposes can be made. no legal liability on the part of the government for any payment may arise until funds', 40381:'are made available to the contracting officer for thiscontract and until thecontractor receives notice of such availability, to be confirmed', 40382:'in writing by the contracting officer. end of clause 52.23219 availability of fundsfor thenext fiscal year. as prescribed in 32.7061b,', 40383:'insert the following clause: availability of funds for the next fiscal year apr 1984 funds are not presently available for', 40384:'performance under this contract beyond . the government’s obligation for performance of this contract beyond that date is contingent upon', 40385:'the availability of appropriated funds from which payment for contract purposes can be made. no legal liability on the part', 40386:'of the government for any payment may arise for performance under this contract beyond , untilfundsare made available to the', 40387:'contracting officer for performance and untilthe contractor receives notice of availability, to be confirmed in writing by the contracting officer.', 40388:'end of clause 52.23220 limitation of cost. as prescribed in 32.7062a, insert the following clause. the 60day period may be', 40389:'varied from 30 to 90 days and the 75 percent from75 to 85percent. task order or other appropriate designation may', 40390:'be substituted for schedule whereverthat word appears in the clause: limitation of cost apr 1984 a the parties estimate that', 40391:'performance of this contract, exclusive of any fee, will not cost the government more than 1 theestimated cost specified in', 40392:'thescheduleor, 2if this isa costsharing contract, the government’s share of the estimated cost specified in the schedule. the contractor agrees', 40393:'to use itsbest efforts to perform the work specifiedin the schedule and all obligations under this contract within the estimated', 40394:'cost, which, if this is a costsharing contract, includes both the government’s and the contractor’s share ofthe cost. b the', 40395:'contractor shall notify the contracting officer inwriting whenever it has reason to believe that 1 the costs the contractor expects', 40396:'to incur under this contract in the next 60 days, when added to all costs previously incurred, will exceed 75', 40397:'percent of the estimated cost specified in the schedule; or 2 the total cost for the performance of this contract,', 40398:'exclusive of any fee, will be either greater or substantially less than had been previously estimated. c as part of', 40399:'the notification, thecontractor shall provide the contracting officer a revised estimate of the total cost of performing this contract. d', 40400:'except as required by other provisions of this contract, specifically citing and stated to be an exception to this clause', 40401:'1 the government is not obligated to reimburse the contractor for costs incurred in excess of i the estimated cost', 40402:'specified in the schedule or, iiif thisis acostsharing contract, theestimated cost to the government specifiedin the schedule; and 2 the', 40403:'contractor is not obligated to continue performance under this contract including actions under the terminationclause ofthis contract orotherwise incur costs', 40404:'in excess of the estimated cost specifiedin theschedule, until the contracting officeri notifiesthe contractor in writing that the estimatedcost has', 40405:'been increased and ii providesa revised estimated total cost of performing this contract. if this is a costsharing contract, the', 40406:'increase shall be allocated in accordance with the formula specified in the schedule. e no notice, communication, or representation in', 40407:'any form other than that specified in paragraph d2 of this clause, or from any person other than the contractingofficer,', 40408:'shall affect this contract’s estimatedcost to thegovernment. in the absence of the specified notice, the government is not obligated to', 40409:'reimburse the contractor for any costs in excess of the 52.2388 subpart 52.2 text of provisions and clauses 52.23222 estimated', 40410:'cost or, if this isa costsharing contract, for any costs in excess of theestimated cost to the government specifiedin the', 40411:'schedule, whether those excess costs were incurred during the course of the contract or as a result of termination. f', 40412:'if the estimated cost specified in the schedule is increased, any costs the contractor incurs before the increase that are', 40413:'in excess of the previously estimated cost shall be allowable to the same extent as if incurred afterward, unless the', 40414:'contracting officerissues a terminationor other notice directingthat the increase is solely to cover termination or other specified expenses. g change', 40415:'orders shall not be considered an authorization to exceed the estimated cost to the government specified in the schedule, unless', 40416:'they contain a statement increasing the estimated cost. h if this contract is terminated or the estimated cost is not', 40417:'increased, the government and the contractor shall negotiate an equitable distribution of all property produced or purchased under the contract,', 40418:'based upon the share of costs incurred by each. end of clause 52.23221 [reserved] 52.23222 limitation of funds. as prescribed', 40419:'in 32.7062b, insert the following clause. the 60day period may be varied from 30 to 90 days and the 75', 40420:'percent from75 to 85percent. task order or other appropriate designation may be substituted for schedule whereverthat word appears in the', 40421:'clause: limitation of funds apr 1984 a the parties estimate that performance of this contract will not cost the government', 40422:'more than 1 the estimated cost specified in the schedule or, 2if this is a costsharing contract, the government’s share', 40423:'ofthe estimated cost specified in theschedule. the contractoragrees touse its best efforts to perform theworkspecified in the schedule and all', 40424:'obligations underthis contractwithin theestimated cost, which, if this is a costsharing contract,includes both the government’s and the contractor’sshare of the', 40425:'cost. b the schedule specifies the amount presently available for payment by the government and allotted to this contract, theitems', 40426:'covered, the government’s shareof the cost if this is a costsharing contract,andthe period of performance it is estimated theallotted amountwill', 40427:'cover. the parties contemplate that the government willallot additional funds incrementally to the contract up to the full estimated cost', 40428:'to the government specified in the schedule, exclusive of any fee. the contractor agrees to perform, or have performed, work', 40429:'on the contract up to the point at which the total amount paid and payable by the government under the', 40430:'contract approximates but does not exceed the total amount actually allotted by the government to the contract. c thecontractor shall', 40431:'notify the contractingofficer in writing wheneverithas reasonto believe that the costs it expects to incur under this contract in the', 40432:'next 60 days, when added to all costs previously incurred, will exceed 75 percent of 1 the total amount so', 40433:'farallotted to the contract by the governmentor, 2if this isa costsharing contract, the amount then allotted to the contract by', 40434:'the government plus the contractor’s corresponding share. the noticeshallstate the estimated amountof additional funds required to continue performance for the', 40435:'period specified in the schedule. d sixtydays before the endof the period specified in the schedule, thecontractor shall notify thecontracting', 40436:'officer in writing of the estimated amount of additional funds, if any, required to continue timely performance under the contractor', 40437:'for any further period specified in the schedule or otherwise agreed upon, and when the funds will be required. e', 40438:'if, after notification, additional funds are not allotted by the end of the period specified in the schedule or another', 40439:'agreedupon date, upon the contractor’s writtenrequest the contracting officer will terminate this contract on that date in accordance with theprovisions', 40440:'of the termination clause of this contract. if the contractor estimatesthat thefundsavailable will allow it to continue to discharge itsobligations', 40441:'beyond that date, it may specify a later date in its request,andthe contracting officermay terminate this contract on that later', 40442:'date. f except as required by other provisions of this contract, specifically citing and stated to be an exception to', 40443:'this clause 1 the government is not obligated to reimburse the contractor for costs incurred in excess of the total', 40444:'amount allotted by the government to this contract; and 2 the contractor is not obligated to continue performance under this', 40445:'contract including actions under the terminationclause ofthis contract orotherwise incur costs in excess of52.2 389 52.23223 federal acquisition regulation i', 40446:'the amount then allotted to the contract by the government or; iiif this is a costsharing contract,the amount then allotted', 40447:'by the government tothe contract plusthe contractor’s corresponding share, until the contractingofficer notifies the contractor inwriting thatthe amountallotted by the', 40448:'government has been increased and specifies an increased amount, which shall then constitute the total amount allotted by the government', 40449:'to this contract. g the estimated cost shall be increased to theextent that 1 the amount allotted by the government', 40450:'or, 2if this is a costsharing contract, the amount thenallotted by thegovernment to the contractplus the contractor’s corresponding share, exceeds', 40451:'the estimated cost specified in the schedule. if this is a costsharing contract, the increase shall be allocated in accordance', 40452:'with the formula specified in the schedule. h no notice, communication, or representation in any form other than that specified', 40453:'in paragraph f2 of this clause, or from any person other than the contractingofficer, shall affect the amount allotted by', 40454:'the governmentto this contract. in the absence of the specified notice, the government is not obligated to reimburse the contractor', 40455:'for any costs in excess of the total amount allotted by the government to this contract, whether incurred during the', 40456:'course of the contract or as a result of termination. i when and to the extent that the amount allotted', 40457:'by the government to the contract is increased, any costs the contractor incurs before the increase that are in excess', 40458:'of 1 the amount previously allotted by the government or; 2 if this is a costsharing contract, the amount previously', 40459:'allotted by the government to the contract plus the contractor’scorresponding share, shall be allowable tothe same extent as if incurred', 40460:'afterward, unless the contracting officer issuesa termination or other notice and directs that the increase is solely to cover termination', 40461:'or other specified expenses. j change orders shall not be considered an authorization to exceed the amount allotted by the', 40462:'government specified in the schedule, unless they contain a statement increasing the amount allotted. k nothing inthisclause shall affect therightof', 40463:'the government to terminate this contract. if this contract is terminated, the government and the contractor shall negotiate an equitable', 40464:'distribution of all property produced or purchased under the contract, based upon the share of costs incurred by each. lif', 40465:'the government does not allot sufficientfundsto allow completion of the work, the contractor isentitled to a percentage of the fee', 40466:'specified in the schedule equalling the percentage of completion of the work contemplated by this contract. end of clause 52.23223', 40467:'assignment of claims. as prescribed in 32.806a1, insert the following clause: assignment of claimsmay 2014 a thecontractor, under the assignmentof', 40468:'claims act, as amended, 31 u.s.c.3727, 41 u.s.c.6305 hereafter referred to as the act, may assign its rights to be', 40469:'paid amounts due or to become due as a result of the performance of this contract to a bank, trust', 40470:'company, or otherfinancing institution, including anyfederal lendingagency. the assignee under such an assignment may thereafter further assign or reassign its', 40471:'right under the original assignment to any type of financing institution described in the preceding sentence. b any assignment or', 40472:'reassignment authorized under the act and this clause shall cover all unpaid amounts payable under this contract, and shall not', 40473:'bemade to more than one party, except that an assignment orreassignmentmay be made to one party as agent or trustee', 40474:'for two or more parties participating in the financing of this contract. c the contractor shall not furnish or disclose', 40475:'to any assignee under this contract any classified document including this contract or information related towork under this contract untilthe', 40476:'contracting officerauthorizes such action in writing. end of clause alternate i apr 1984. if a nosetoff commitment is to be', 40477:'included in the contract see 32.801 and 32.803d, add the following sentence at the end of paragraph a of the', 40478:'basic clause: 52.2390 subpart 52.2 text of provisions and clauses 52.23225 unless otherwise stated in this contract, payments to an', 40479:'assignee of any amounts due or to become due under this contract shall not, to the extent specified in the', 40480:'act,be subjectto reduction or setoff. 52.23224 prohibitionof assignment of claims. as prescribed in 32.806b, insert the following clause: prohibition of', 40481:'assignment of claims may 2014 the assignment of claims under the assignment of claims act of 1940 31 u.s.c.3727, 41', 40482:'u.s.c. 6305 is prohibited for this contract. end of clause 52.23225 prompt payment. as prescribed in 32.908c, insert the following', 40483:'clause: prompt payment jan 2017 notwithstanding any other payment clause in this contract, the government will make invoice payments under', 40484:'the terms and conditions specified in this clause. the government considers payment as being made on the day a check', 40485:'is dated or the date of an electronic funds transfer eft. definitions of pertinent terms are set forth in sections', 40486:'2.101, 32.001, and 32.902 of the federal acquisition regulation. all days referred to in this clause are calendar days, unless', 40487:'otherwise specified. however, seeparagraph a4 of this clause concerningpayments dueon saturdays, sundays, and legal holidays. a invoice payments1 due date.', 40488:'i except as indicated in paragraphs a2 and c of this clause, the due date for making invoicepayments bythe designated', 40489:'payment office is the later ofthe following two events: athe 30 thday after thedesignated billingoffice receives a proper invoice from', 40490:'thecontractor except as provided in paragraph a1ii of this clause. b the 30 thday after government acceptance of supplies delivered', 40491:'or services performed. for a final invoice, when the payment amount is subject to contract settlement actions, acceptance is deemed', 40492:'to occur onthe effective date of the contract settlement. iiif the designated billing office fails toannotate the invoicewith the actual', 40493:'date of receipt at thetime of receipt, theinvoice payment due date is the 30 thday afterthe date of the contractor’s', 40494:'invoice, provided the designatedbilling officereceives a proper invoice and there is nodisagreement over quantity, quality,or contractor compliance with contract requirements.', 40495:'2 certain food products and other payments. i due dates on contractor invoices for meat, meat food products, or fish;', 40496:'perishable agricultural commodities; and dairy products, edible fats or oils, and food products prepared from edible fats or oils are', 40497:'a for meat or meat food products, as defined in section 2a3 of the packers and stockyard act of1921 7', 40498:'u.s.c. 1823, and as further defined in pub.l.98181, including any edible fresh or frozen poultry meat, any perishable poultry meat', 40499:'food product, fresh eggs, and any perishable egg product, as close as possible to, but not later than, the 7', 40500:'thday after productdelivery. b for fresh or frozen fish, as defined in section 2043 of the fish and seafood promotion', 40501:'act of1986 16 u.s.c. 40033, as close as possibleto, but notlater than, the7 thday after product delivery. c for perishable', 40502:'agricultural commodities, as defined in section 14 of the perishable agricultural commodities act of1930 7 u.s.c. 499a4,as closeas possible to,', 40503:'but not later than, the 10thday after product delivery, unless another date is specified in the contract. dfor dairy products,as', 40504:'defined in section 111eof the dairy production stabilization act of1983 7 u.s.c. 4502e, edible fats or oils, and food products', 40505:'prepared from edible fats or oils, as close as possible to, but not later than, the 10 thday after the', 40506:'date on which a proper invoice has been received. liquid milk, cheese, certain processed cheese products, butter,yogurt, icecream, mayonnaise, saladdressings,', 40507:'and other similar products, fall within this classification. nothingin the act limits this classification to refrigerated products. when questions arise', 40508:'regarding the proper classification of a specific product, prevailing industry practices will be followed in specifying a contract payment due', 40509:'date. the burden of proof that a classification of a specific product is, in fact, prevailing industry practice is upon', 40510:'the contractor making the representation. 52.2391 52.23225 federal acquisition regulation ii if the contract does not require submission of an', 40511:'invoice for payment e.g., periodic lease payments, the due date will be as specified in the contract. 3 contractors invoice.', 40512:'the contractor shall prepareand submit invoices to thedesignated billingoffice specified in the contract. a proper invoice must include the items', 40513:'listed in paragraphs a3i through a3x of this clause. if the invoice does not comply with these requirements, the designatedbilling', 40514:'office will return it within7 daysafter receipt 3 days for meat, meat food products, or fish; 5 days for perishable', 40515:'agricultural commodities, dairy products, edible fats or oils, and food products prepared from edible fats or oils, with the reasons', 40516:'why it is not a proper invoice. the government will take into account untimely notification whencomputingany interest penalty owedthe contractor.', 40517:'iname and address of thecontractor. iiinvoice dateandinvoice number. the contractor should date invoices asclose aspossible to the date of the', 40518:'mailing or transmission. iii contract number or other authorization for supplies delivered or services performed including order number and line', 40519:'item number. iv description, quantity, unit of measure, unit price, and extended price of supplies delivered or services performed. v', 40520:'shipping and payment terms e.g., shipment number and date of shipment, discount for prompt payment terms. bill of lading number', 40521:'and weight of shipment will be shown for shipments on government bills of lading. vi name and address of contractorofficial', 40522:'to whom payment isto besentmust be the same as thatin thecontract or in a proper notice of assignment. vii name', 40523:'where practicable, title, phonenumber, and mailing address of person to notifyin theevent of a defective invoice. viii taxpayer identification number', 40524:'tin. the contractor shall includeits tinon the invoice only ifrequired elsewhere in this contract. ix electronic funds transfer eft banking', 40525:'information. a the contractor shall include eft banking information on the invoice only if required elsewhere in this contract. b', 40526:'if eft banking information is not required to be on the invoice, in order for the invoice to be a', 40527:'proper invoice, the contractor shall have submitted correct eft banking information in accordance with the applicable solicitation provision e.g., 52.23238,', 40528:'submission of electronic funds transfer information with offer, contract clausee.g., 52.23233, payment by electronic funds transfersystemforawardmanagement, or 52.23234, payment by', 40529:'electronic fundstransfer otherthan system for award management, orapplicable agency procedures. c eft banking information is not required if the government', 40530:'waived the requirement to pay byeft. x any other information or documentation required by the contract e.g., evidence of shipment.', 40531:'4 interest penalty. the designated payment office will pay aninterest penalty automatically, withoutrequest from thecontractor, ifpayment is not made by', 40532:'the duedate and theconditions listed in paragraphs a4i through a4iii of this clause are met, if applicable. however,when the due', 40533:'date falls on a saturday, sunday, or legal holiday, the designated paymentoffice may make payment on the following workingday without', 40534:'incurring a latepayment interest penalty. ithe designatedbilling office received aproper invoice. ii the government processed a receiving report or other', 40535:'government documentation authorizing payment, and there wasno disagreement over quantity, quality, or contractor compliance with any contract term or condition.', 40536:'iii in the case of a final invoice for any balance of funds due the contractor for supplies delivered or', 40537:'services performed,the amount was not subject to further contract settlement actions between the government and the contractor. 5 computing penalty', 40538:'amount.the government will computethe interest penalty in accordance with the officeof management and budget prompt payment regulations at 5 cfr', 40539:'part 1315. ifor thesolepurpose of computing an interestpenalty that might be duethe contractor, government acceptance is deemed to occur constructively', 40540:'on the 7 thday unless otherwise specified in this contract after the contractor delivers the supplies or performs the services', 40541:'in accordance with the terms and conditions of the contract, unless there is a disagreement over quantity, quality,or contractor compliance', 40542:'with a contractprovision. if actualacceptance occurs within theconstructive acceptance period, the government will base the determination of an interest penalty', 40543:'on the actual date of acceptance. the constructive acceptance requirement does not, however, compel government officials toaccept suppliesor services,perform contract', 40544:'administration functions, or make payment prior to fulfilling their responsibilities. ii the prompt payment regulations at 5 cfr1315.10c do not', 40545:'require the government to pay interest penalties if payment delays are due to disagreement between the government and the contractor', 40546:'over the payment amount or other 52.2392 subpart 52.2 text of provisions and clauses 52.23225 issues involving contract compliance, or', 40547:'on amounts temporarily withheld or retained in accordance with the terms of the contract. the government and the contractor shall', 40548:'resolve claims involving disputes and any interest that may be payable in accordance with theclause at far 52.2331, disputes. 6', 40549:'discounts for prompt payment. the designated payment office will payan interest penaltyautomatically, without request from thecontractor, ifthe government takes a', 40550:'discount for prompt payment improperly. the government will calculate the interest penalty in accordance with the prompt payment regulations at', 40551:'5 cfr part 1315. 7additionalinterestpenalty. ithedesignatedpaymentofficewillpayapenaltyamount,calculatedinaccordance with the prompt payment regulations at 5 cfr part 1315 in addition to the', 40552:'interest penalty amount only if a the government owes an interest penalty of $1 or more; b the designated paymentoffice', 40553:'does not pay the interest penalty within 10days after the date the invoice amount is paid; and c the contractor', 40554:'makesa written demand to the designated payment office for additional penaltypayment, in accordance with paragraph a7ii of this clause, postmarked', 40555:'not later than 40 days after the invoice amount is paid. ii a the contractor shall support written demands for', 40556:'additional penalty payments with the following data. the government will not request any additional data. the contractor shall 1 specifically', 40557:'assert that late payment interest is due under a specific invoice, and request payment of all overdue late payment interest', 40558:'penalty and such additional penalty as may be required; 2 attach a copy of the invoice on which the unpaid', 40559:'late payment interest is due; and 3 state that payment of the principal has been received, including the date of', 40560:'receipt. b if there is no postmark or the postmark is illegible 1 the designated payment office that receives thedemand', 40561:'will annotate it with the date of receipt, provided the demand is received on or before the 40th day after', 40562:'payment was made; or 2 if the designated payment office fails to make the required annotation, the government will determine', 40563:'the demand’s validity basedon the date the contractor has placed on thedemand, provided such dateis no later than the 40th', 40564:'day after payment was made. iii the additional penalty does not apply to payments regulated by other government regulations e.g.,', 40565:'payments underutility contracts subject totariffs and regulation. b contract financing payment. if this contract provides for contract financing, the government', 40566:'will make contract financing payments in accordance with the applicable contract financing clause. c fast payment procedure due dates. if', 40567:'this contract contains the clause at 52.2131, fast payment procedure, payments will be made within 15 days after the date', 40568:'of receipt of the invoice. d overpayments. if the contractor becomes aware of a duplicate contract financing or invoice payment', 40569:'or that the government has otherwise overpaid on a contract financing or invoice payment, the contractor shall 1 remit the', 40570:'overpayment amount to the payment office cited in the contract along with a description of the overpayment including the i', 40571:'circumstances of the overpayment e.g., duplicate payment, erroneous payment, liquidation errors, dates of overpayment; iiaffected contract number and delivery order', 40572:'number if applicable; iii affected line item or subline item,if applicable; and iv contractor point of contact. 2 provide a', 40573:'copyof the remittance and supporting documentation tothe contracting officer. end of clause alternate i feb 2002. as prescribed in 32.908c3,', 40574:'add the following paragraph e to the basic clause: e invoices for interim payments. for interim payments under this costreimbursement', 40575:'contract for services 1 paragraphs a2, a3, a4ii, a4iii, and a5i do not apply; 2 for purposes of computing late', 40576:'payment interest penaltiesthat may apply, the due date for payment isthe 30 thday after the designated billing office receives a', 40577:'proper invoice;and 3 the contractorshallsubmit invoices for interimpayments in accordance with paragraph a of far 52.2167, allowable cost and payment.', 40578:'if the invoice does not comply with contract requirements, it will be returned within 7 days after the date the', 40579:'designatedbilling office received the invoice. 52.2393 52.23226 federal acquisition regulation 52.23226 prompt payment for fixedprice architectengineercontracts. as prescribed in 32.908a,', 40580:'insert the following clause: prompt payment for fixedprice architectengineer contractsjan 2017 notwithstanding any other payment terms in this contract, the', 40581:'government will make invoice payments under the terms and conditions specified in this clause. the government considers payment as being', 40582:'made on the day a check is dated or the dateof an electronic funds transfer. definitions of pertinent terms are', 40583:'set forth in sections 2.101, 32.001, and 32.902 of the federalacquisition regulation. all days referred to in this clause are', 40584:'calendar days, unless otherwisespecified. however, see paragraph a3 of this clause concerning payments due on saturdays, sundays, and legal holidays.', 40585:'a invoice payments1 due date. the due date for making invoice payments is ifor work or services completed by thecontractor,', 40586:'the later of the following two events: athe 30th day after thedesignated billingoffice receives a proper invoice from thecontractor except', 40587:'as provided in paragraph a1iii of this clause. b the 30th day after governmentacceptance of the work or services completed', 40588:'by the contractor. for a final invoice, when the payment amount is subject to contract settlement actions e.g., release of', 40589:'claims, acceptance is deemed to occur on theeffective date ofthe settlement. ii the due date for progress payments is the', 40590:'30 thday after government approval of contractor estimates of work or services accomplished. iii if thedesignated billingoffice fails toannotate the', 40591:'invoice or payment request withthe actual date of receipt at the time of receipt, the payment due date is the', 40592:'30 thday after the date of thecontractor’s invoice or payment request, provided thedesignated billingoffice receives a proper invoice or payment', 40593:'request and there is no disagreementover quantity, quality, or contractor compliance with contract requirements. 2 contractors invoice. the contractor shall', 40594:'prepareand submit invoices to thedesignated billingoffice specified in the contract. a proper invoice must include the items listed in paragraphs', 40595:'a2i through a2x of this clause. if the invoice does not comply with these requirements, the designatedbilling office will return', 40596:'it within7 daysafter receipt, with thereasons whyitis not a proper invoice. when computing anyinterest penalty owed the contractor, the government', 40597:'will takeinto accountif the government notifies the contractorof an improper invoice in an untimely manner. iname and address of thecontractor.', 40598:'iiinvoice dateandinvoice number. the contractor should date invoices asclose aspossible to the date of mailing or transmission. iii contract number', 40599:'or other authorization for work or services performed including order number and line item number. iv description of work or', 40600:'services performed. v delivery and payment terms e.g., discount for prompt payment terms. vi name and address of contractorofficial to', 40601:'whom payment isto besentmust be the same as thatin thecontract or in a proper notice of assignment. vii name where', 40602:'practicable, title, phonenumber, and mailing address of person to notifyin theevent of a defective invoice. viii taxpayer identification number tin.', 40603:'the contractor shall includeits tinon the invoice only ifrequired elsewhere in this contract. ix electronic funds transfer eft banking information.', 40604:'a the contractor shall include eft banking information on the invoice only if required elsewhere in this contract. b if', 40605:'eft banking information is not required to be on the invoice, in order for the invoice to be a proper', 40606:'invoice, the contractor shall have submitted correct eft banking information in accordance with the applicable solicitation provision e.g., 52.23238, submission', 40607:'of electronic funds transfer information with offer, contract clausee.g., 52.23233, payment by electronic funds transfersystemforawardmanagement, or 52.23234, payment by electronic', 40608:'fundstransfer otherthan system for award management, orapplicable agency procedures. c eft banking information is not required if the government waived', 40609:'the requirement to pay byeft. x any other information or documentation required by the contract. 3 interest penalty. the designated', 40610:'payment office will pay aninterest penalty automatically, withoutrequest from thecontractor, ifpayment is not made by the duedate and theconditions listed', 40611:'in paragraphs a3i through a3iii of 52.2394 subpart 52.2 text of provisions and clauses 52.23226 this clause are met, if', 40612:'applicable. however,when the due date falls on a saturday, sunday, or legal holiday, the designated paymentoffice may make payment on', 40613:'the following workingday without incurring a latepayment interest penalty. ithe designatedbilling office received aproper invoice. ii the government processed a', 40614:'receiving report or other government documentation authorizing payment and there wasno disagreement over quantity, quality, contractor compliance with any contract', 40615:'term or condition,or requested progress payment amount. iii in the case of a final invoice for any balance of funds', 40616:'due the contractor for work or services performed, the amount was not subject to further contract settlement actions between the', 40617:'government and the contractor. 4 computing penalty amount.the government will computethe interest penalty in accordance with the officeof management and', 40618:'budget prompt payment regulations at 5 cfr part 1315. ifor thesolepurpose of computing an interestpenalty that might be duethe contractor,', 40619:'government acceptance or approval is deemed to occur constructively as shown in paragraphs a4ia and b of this clause. if', 40620:'actual acceptance or approval occurs within the constructive acceptance or approval period, the government will base the determination of an', 40621:'interest penalty on the actual date of acceptance or approval. constructive acceptance or constructive approval requirements do notapply if there', 40622:'isa disagreement over quantity, quality, contractor compliancewith a contract provision, orrequested progress payment amounts. these requirementsalso donot compel government officials', 40623:'to acceptwork or services, approve contractor estimates, perform contract administration functions, or make payment prior to fulfilling their responsibilities. afor', 40624:'work orservices completed by thecontractor, government acceptance is deemed to occur constructively on the 7 thday after the contractor completes', 40625:'the work or services in accordance with the terms and conditions of the contract. b for progress payments, government approval', 40626:'is deemed to occur on the 7th day after the designated billing officereceives the contractor estimates. ii the prompt payment', 40627:'regulations at 5 cfr 1315.10c do not require the government to pay interest penalties if payment delays are due to', 40628:'disagreement between the government and the contractor over the payment amount or other issues involving contract compliance, or on amounts', 40629:'temporarily withheld or retained in accordance with the terms of the contract. the government and the contractor shall resolve claims', 40630:'involving disputes, and any interest that may be payable in accordance with theclause at far 52.2331, disputes. 5 discounts for', 40631:'prompt payment. the designated payment office will payan interest penaltyautomatically, without request from thecontractor, ifthe government takes a discount for', 40632:'prompt payment improperly. the government will calculate the interest penalty in accordance with 5 cfr part 1315. 6additionalinterestpenalty. ithedesignatedpaymentofficewillpayapenaltyamount,calculatedinaccordance with', 40633:'the prompt payment regulations at 5 cfr part 1315, in addition to the interest penalty amount only if a the', 40634:'government owes an interest penalty of $1 or more; b the designated paymentoffice does not pay the interest penalty within', 40635:'10days after the date the invoice amount is paid; and c the contractor makes a written demand to the designatedpayment', 40636:'officeforadditional penalty payment, in accordance with paragraph a6ii of this clause, postmarked not later than 40 days after the date', 40637:'the invoice amount is paid. ii a the contractor shall support written demands for additional penalty payments with the following', 40638:'data. the government will not request any additional data. the contractor shall 1 specifically assert that late payment interest is', 40639:'due under a specific invoice, and request payment of all overdue late payment interest penalty and such additional penalty as', 40640:'may be required; 2 attach a copy of the invoice on which the unpaid late payment interest is due; and', 40641:'3 state that payment of the principal has been received, including the date of receipt. b if there is no', 40642:'postmark or the postmark is illegible 1 the designated payment office that receives thedemand will annotate it with the date', 40643:'of receipt, provided the demand is received on or before the 40 thday after payment was made; or 2 if', 40644:'the designated payment office fails to make the required annotation, the government will determine the demand’s validity basedon the date', 40645:'the contractor has placed on thedemand, provided such dateis no later than the 40thday after payment was made. iii the', 40646:'additional penalty does not apply to payments regulated by other government regulations e.g., payments underutility contracts subject totariffs and regulation.', 40647:'52.2395 52.23227 federal acquisition regulation b contract financing payments. if this contract provides for contract financing, the government will make', 40648:'contract financing payments in accordance with the applicable contract financing clause. c overpayments. if the contractor becomes aware of a', 40649:'duplicate contract financing or invoice payment or that the government has otherwise overpaid on a contract financing or invoice payment,', 40650:'the contractor shall 1 remit the overpayment amount to the payment office cited in the contract along with a description', 40651:'of the overpayment including the i circumstances of the overpayment e.g., duplicate payment, erroneous payment, liquidation errors, dates of overpayment;', 40652:'iiaffected contract number and delivery order number if applicable; iii affected line item or subline item,if applicable; and iv contractor', 40653:'point of contact. 2 provide a copyof the remittance and supporting documentation tothe contracting officer. end of clause 52.23227 prompt', 40654:'payment for construction contracts. as prescribed in 32.908b, insert the following clause: prompt payment for construction contracts jan 2017 notwithstanding', 40655:'any other payment terms in this contract, the government will make invoice payments under the terms and conditions specified in', 40656:'this clause. the government considers payment as being made on the day a check is dated or the dateof an', 40657:'electronic funds transfer. definitions of pertinent terms are set forth in sections 2.101, 32.001, and 32.902 of the federalacquisition regulation.', 40658:'all days referred to in this clause are calendar days, unless otherwisespecified. however, see paragraph a3 concerning payments due on', 40659:'saturdays, sundays, and legal holidays. a invoice payments1 types of invoice payments. for purposes of this clause, there are several', 40660:'types of invoice payments that may occur under this contract, as follows: iprogress payments, if providedforelsewhere in this contract,based on', 40661:'contracting officerapproval of the estimated amount and value of work or services performed, including payments for reaching milestones in any', 40662:'project. athe due date for making such payments is 14 days afterthe designated billing officereceives a proper paymentrequest. if thedesignated', 40663:'billingoffice fails toannotate the payment requestwith the actual date of receipt at thetime ofreceipt,the paymentduedate is the 14 thday after', 40664:'thedate of the contractor’s payment request, provided the designated billing officereceives a proper payment request and there is no disagreement', 40665:'over quantity, quality,or contractor compliance with contract requirements. b the due date for payment of anyamountsretained bythe contracting officerin accordance', 40666:'with theclause at 52.2325, payments under fixedprice construction contracts, is as specifiedin the contractor, if not specified, 30 days after', 40667:'approval by the contracting officer for release to the contractor. ii final payments based on completion and acceptance of all', 40668:'work and presentation of release of all claims against the government arising by virtue of the contract, and payments for', 40669:'partial deliveries that have been accepted by the government e.g., each separate building, public work, or other division of the', 40670:'contract for which the price is stated separately in the contract. a the due date for making such payments is', 40671:'the later of the following two events: 1 the 30thday afterthe designated billing officereceives a proper invoice fromthe contractor. 2', 40672:'the 30thday aftergovernment acceptance ofthe work or services completed by thecontractor. for a final invoice when the payment amount is', 40673:'subject to contract settlement actions e.g., release of claims, acceptance is deemed to occur on theeffective date ofthe contract settlement.', 40674:'b if the designatedbilling office fails to annotatethe invoice with the date of actual receiptat the timeof receipt, theinvoice payment', 40675:'due date is the 30 thday afterthe date of the contractor’s invoice, provided the designatedbilling officereceives a proper invoice and', 40676:'there is nodisagreement over quantity, quality,or contractor compliance with contract requirements. 2 contractors invoice. the contractor shall prepareand submit invoices', 40677:'to thedesignated billingoffice specified in the contract. a proper invoice must include the items listed in paragraphs a2i through a2xi', 40678:'of this clause. if the invoice does not comply with these requirements, the designatedbilling office must returnitwithin 7days after receipt,', 40679:'with 52.2396 subpart 52.2 text of provisions and clauses 52.23227 thereasons whyitis not a proper invoice. when computing anyinterest penalty', 40680:'owed the contractor, the government will takeinto accountif the government notifies the contractorof an improper invoice in an untimely manner.', 40681:'iname and address of thecontractor. iiinvoice dateandinvoice number. the contractor should date invoices asclose aspossible to the date of mailing', 40682:'or transmission. iii contract number or other authorization for work or services performed including order number and line item number.', 40683:'iv description of work or services performed. v delivery and payment terms e.g., discount for prompt payment terms. vi name', 40684:'and address of contractorofficial to whom payment isto besentmust be the same as thatin thecontract or in a proper notice', 40685:'of assignment. vii name where practicable, title, phonenumber, and mailing address of person to notifyin theevent of a defective invoice.', 40686:'viii for payments described in paragraph a1i of this clause, substantiation of the amounts requested and certification in accordance with', 40687:'the requirements of the clause at 52.2325, payments under fixedprice construction contracts. ix taxpayeridentification numbertin. the contractorshallinclude its tin onthe', 40688:'invoice only if required elsewhere in this contract. x electronic funds transfer eft banking information. a the contractor shall include', 40689:'eft banking information on the invoice only if required elsewhere in this contract. b if eft banking information is not', 40690:'required to be on the invoice, in order for the invoice to be a proper invoice, the contractor shall have', 40691:'submitted correct eft banking information in accordance with the applicable solicitation provision e.g., 52.23238, submission of electronic funds transfer information', 40692:'with offer, contract clausee.g., 52.23233, payment by electronic funds transfersystemforawardmanagement, or 52.23234, payment by electronic fundstransfer otherthan system for award', 40693:'management, orapplicable agency procedures. c eft banking information is not required if the government waived the requirement to pay byeft.', 40694:'xi any other information or documentation required by the contract. 3 interest penalty. the designated payment office will pay aninterest', 40695:'penalty automatically, withoutrequest from thecontractor, ifpayment is not made by the duedate and theconditions listed in paragraphs a3i through a3iii', 40696:'of this clause are met, if applicable. however,when the due date falls on a saturday, sunday, or legal holiday, the', 40697:'designated paymentoffice may make payment on the following workingday without incurring a latepayment interest penalty. ithe designatedbilling office received aproper', 40698:'invoice. ii the government processed a receiving report or other government documentation authorizing payment and there wasno disagreement over quantity,', 40699:'quality, contractor compliance with any contract term or condition,or requested progress payment amount. iii in the case of a final', 40700:'invoice for any balance of funds due the contractor for work or services performed, the amount was not subject to', 40701:'further contract settlement actions between the government and the contractor. 4 computing penalty amount.the government will computethe interest penalty in', 40702:'accordance with the officeof management and budget prompt payment regulations at 5 cfr part 1315. i for the sole purpose', 40703:'of computing an interest penalty that might be due the contractor for payments described in paragraph a1ii of this clause,', 40704:'government acceptance or approval is deemed to occur constructively on the 7 thday after the contractor has completed the work', 40705:'or services in accordance with the terms and conditions of the contract. if actual acceptance or approval occurs within the', 40706:'constructive acceptance or approval period, the government will base the determination of an interest penalty on the actual date of', 40707:'acceptance or approval. constructive acceptance or constructive approval requirements do not apply ifthere is a disagreement over quantity, quality, or', 40708:'contractor compliance with a contract provision. these requirements also donot compelgovernment officials to acceptworkor services,approve contractor estimates, perform contract administration', 40709:'functions, or make payment prior to fulfilling their responsibilities. ii the prompt payment regulations at 5 cfr1315.10c do not require', 40710:'the government to pay interest penalties if payment delays are due to disagreement between the government and the contractor over', 40711:'the payment amount or other issues involving contract compliance, or on amounts temporarily withheld or retained in accordance with the', 40712:'terms of the contract. the government and the contractor shall resolve claims involving disputes, and any interest that may be', 40713:'payable in accordance with theclause at far 52.2331, disputes. 52.2397 52.23227 federal acquisition regulation 5 discounts for prompt payment. the', 40714:'designated payment office will payan interest penaltyautomatically, without request from thecontractor, ifthe government takes a discount for prompt payment improperly.', 40715:'the government will calculate the interest penalty in accordance with the prompt payment regulations at 5 cfr part 1315. 6additionalinterestpenalty.', 40716:'ithedesignatedpaymentofficewillpayapenaltyamount,calculatedinaccordance with the prompt payment regulations at 5 cfr part 1315 in addition to the interest penalty amount only if', 40717:'a the government owes an interest penalty of $1 or more; b the designated paymentoffice does not pay the interest', 40718:'penalty within 10days after the date the invoice amount is paid; and c the contractor makesa written demand to the', 40719:'designated payment office for additional penaltypayment, in accordance with paragraph a6ii of this clause, postmarked not later than 40 days', 40720:'after the date the invoice amount is paid. ii a the contractor shall support written demands for additional penalty payments', 40721:'with the following data. the government will not request any additional data. the contractor shall 1 specifically assert that late', 40722:'payment interest is due under a specific invoice, and request payment of all overdue late payment interest penalty and such', 40723:'additional penalty as may be required; 2 attach a copy of the invoice on which the unpaid late payment interest', 40724:'was due; and 3 state that payment of the principal has been received, including the date of receipt. b if', 40725:'there is no postmark or the postmark is illegible 1 the designated payment office that receives thedemand will annotate it', 40726:'with the date of receipt provided the demand is received on or before the 40 thday after payment was made;', 40727:'or 2 if the designated payment office fails to make the required annotation, the government will determine the demand’s validity', 40728:'basedon the date the contractor has placed on thedemand, provided such dateis no later than the 40thday after payment was', 40729:'made. b contract financing payments. if this contract provides for contract financing, the government will make contract financing payments in', 40730:'accordance with the applicable contract financing clause. c subcontract clause requirements. the contractor shall include in each subcontract for property', 40731:'or services including a material supplier for the purpose of performing this contract the following: 1 prompt payment for subcontractors.', 40732:'a payment clause that obligates the contractor to pay the subcontractor for satisfactory performance under its subcontract not later than', 40733:'7 days from receipt of payment out of such amounts as are paid to the contractor under this contract. 2', 40734:'interest for subcontractors. an interest penalty clause that obligates the contractor to pay to the subcontractor an interest penalty for', 40735:'each payment not made in accordance with the payment clause i for the period beginning on the day after the', 40736:'required payment date and ending on the date on which payment of the amount due is made; and iicomputed at', 40737:'the rate of interest established by thesecretaryof the treasury, and published in the federal register, for interest payments under 41', 40738:'u.s.c. 7109 in effectat the timethe contractor accrues the obligation to pay an interest penalty. 3 subcontractor clause flowdown. a', 40739:'clause requiring each subcontractor to i include a payment clause and an interest penalty clause conforming to the standards set', 40740:'forth in paragraphs c1 and c2 of this clause in each of its subcontracts; and ii require each of its', 40741:'subcontractors to include such clauses in their subcontracts with each lowertier subcontractor or supplier. d subcontract clause interpretation. the clauses', 40742:'required by paragraph c of this clause shall not be construed to impair the right of the contractor or a', 40743:'subcontractor at any tier to negotiate, and to include in their subcontract, provisions that 1 retainage permitted. permit the contractor', 40744:'or a subcontractor to retain without cause a specified percentage of each progress payment otherwise due to a subcontractor for', 40745:'satisfactory performance under the subcontract without incurring any obligationto pay a late payment interest penalty, in accordance with terms and', 40746:'conditionsagreed to by the parties to the subcontract, giving such recognition as the parties deem appropriate to the ability of', 40747:'a subcontractor to furnish a performance bond and a payment bond; 2 withholding permitted. permit the contractor or subcontractor to', 40748:'make a determination that part or all of the subcontractor’s request for paymentmay be withheld in accordance with the subcontract', 40749:'agreement; and 3 withholding requirements. permit such withholding without incurring any obligation to pay a late payment penalty if52.2 398', 40750:'subpart 52.2 text of provisions and clauses 52.23227 i a notice conforming to the standards of paragraph g of this', 40751:'clause previously has been furnished to the subcontractor; and iithe contractor furnishes to the contracting officer a copy of any', 40752:'notice issued bya contractor pursuant to paragraph d3i of this clause. e subcontractor withholding procedures.if acontractor, after making arequest for', 40753:'payment to the government but beforemaking a payment to a subcontractor for the subcontractor’s performance covered by the payment request,', 40754:'discovers that all or a portion of the payment otherwise due such subcontractor is subject to withholding from the subcontractor', 40755:'in accordance with the subcontract agreement, then the contractor shall 1 subcontractor notice. furnish to the subcontractor a notice conforming', 40756:'to the standards of paragraph g of this clause as soon as practicable upon ascertaining the cause giving rise to', 40757:'a withholding, but prior to the due date for subcontractor payment; 2 contracting officer notice. furnish to the contracting officer,', 40758:'assoon as practicable,a copy of the notice furnished to the subcontractor pursuant to paragraph e1 of this clause; 3 subcontractor', 40759:'progress payment reduction. reduce the subcontractor’s progress payment byan amountnot to exceed the amount specified in the notice of withholding', 40760:'furnished under paragraph e1 of this clause; 4 subsequent subcontractor payment. pay the subcontractor as soon as practicable after the', 40761:'correction of the identified subcontract performance deficiency, and i make such payment within a sevendays after correction of the identified', 40762:'subcontract performance deficiency unless the funds therefor must be recovered from the government because of a reduction under paragraph e5i', 40763:'of this clause; or b sevendays after the contractor recovers such funds from the government; or ii incur an obligation', 40764:'to pay a late payment interest penalty computed at the rate of interest established by the secretary of the treasury,', 40765:'and published inthe federal register, for interest payments under 41 u.s.c. 7109in effect at the time the contractor accrues the', 40766:'obligation to pay an interest penalty; 5 notice to contracting officer. notifythe contracting officerupon i reduction of the amount of', 40767:'any subsequent certified application for payment; or ii payment to the subcontractor of any withheld amounts of a progress payment,', 40768:'specifying a the amounts withheld under paragraph e1 of this clause; and b the dates that such withholding began and', 40769:'ended; and 6 interest to government. be obligated to pay to the government an amount equal to interest on the', 40770:'withheld payments computed in the manner provided in 31 u.s.c. 3903c1, from the 8 thday after receipt of the withheld', 40771:'amounts from the government until i the day the identified subcontractor performance deficiency is corrected; or ii the date that', 40772:'any subsequent payment is reduced under paragraph e5i of this clause. f thirdparty deficiency reports1 withholding from subcontractor. if a', 40773:'contractor, aftermaking payment to a firsttiersubcontractor, receivesfrom a supplier or subcontractor ofthe firsttiersubcontractorhereafter referred to as a secondtier subcontractor a', 40774:'written notice in accordance with 40 u.s.c. 3133, asserting a deficiency in such first tier subcontractor’s performance under the contract', 40775:'for which thecontractor maybe ultimately liable,and the contractor determines that all or a portion of future payments otherwise due such', 40776:'firsttier subcontractor is subject to withholding in accordance with thesubcontract agreement, the contractor may, withoutincurring an obligationto pay aninterest penalty', 40777:'under paragraph e6 of this clause i furnish to the firsttier subcontractor a notice conforming to the standards of paragraph', 40778:'g of this clause as soon as practicable upon making such determination; and iiwithholdfrom the firsttier subcontractor’s next available progress', 40779:'payment or payments an amount not to exceed the amount specified in the notice of withholding furnished under paragraph f1i', 40780:'of this clause. 2 subsequent payment or interest charge. as soon as practicable, but not later than 7 days after', 40781:'receipt of satisfactory written notification that the identified subcontract performance deficiency has been corrected, the contractor shall i pay the', 40782:'amount withheld under paragraph f1ii of this clause to such firsttier subcontractor; or ii incur an obligation to pay a', 40783:'late payment interest penalty to such firsttier subcontractor computed at the rate of interest establishedby the secretary ofthe treasury, and', 40784:'published in the federal register, for interest payments under 41 u.s.c. 7109 ineffect at thetime the contractoraccrues the obligation to', 40785:'pay an interestpenalty. g written notice of subcontractor withholding. the contractor shall issue a written notice of any withholding to', 40786:'a subcontractor with a copy furnishedto the contractingofficer, specifying52.2 399 52.23228 federal acquisition regulation 1 the amount to be withheld;', 40787:'2 the specific causes for the withholding under the terms of the subcontract; and 3 the remedial actions to be', 40788:'taken by the subcontractor in order to receive payment of the amounts withheld. h subcontractor payment entitlement. the contractor may', 40789:'not request payment from the government of any amount withheld or retained in accordance with paragraph d of this clause', 40790:'until such time as the contractor has determined and certified to the contracting officer that the subcontractor is entitled to', 40791:'thepayment of such amount. i primesubcontractor disputes. a dispute between the contractor and subcontractor relating to the amount or entitlement', 40792:'of a subcontractor to a payment or a late payment interest penalty under a clause included in the subcontract pursuant', 40793:'to paragraph c ofthis clause does not constitutea dispute to whichthe government isa party. the government may not be interpleaded', 40794:'in any judicial or administrative proceeding involving such a dispute. j preservation of primesubcontractor rights. except as provided in paragraph', 40795:'i of this clause, this clause shall not limit or impair any contractual, administrative, or judicial remedies otherwise available to', 40796:'the contractor or a subcontractor in the event of a dispute involving late payment or nonpayment by the contractor or', 40797:'deficient subcontract performance or nonperformanceby asubcontractor. k nonrecourse for prime contractor interest penalty. the contractor’s obligation to pay an interest', 40798:'penalty toa subcontractor pursuant to the clauses included in a subcontract under paragraph c of this clause shall not be', 40799:'construed to bean obligation ofthe government for such interest penalty. a costreimbursement claim maynot includeany amount for reimbursement ofsuch interest', 40800:'penalty. l overpayments. if the contractor becomes aware of a duplicate contract financing or invoice payment or that the government', 40801:'has otherwise overpaid on a contract financing or invoice payment, the contractor shall 1 remit the overpayment amount to the', 40802:'payment office cited in the contract along with a description of the overpayment including the i circumstances of the overpayment', 40803:'e.g., duplicate payment, erroneous payment, liquidation errors, dates of overpayment; iiaffected contract number and delivery order number if applicable; iii', 40804:'affected line item or subline item,if applicable; and iv contractor point of contact. 2 provide a copyof the remittance and', 40805:'supporting documentation tothe contracting officer. end of clause 52.23228 invitation to propose performancebased payments. as prescribed in 32.1005b1, insert the', 40806:'following provision: invitation to propose performancebased payments mar 2000 a thegovernment invites the offerorto propose terms under which the government', 40807:'will make performancebased contract financing payments during contract performance. the government will consider performancebased payment financing terms proposed bythe offerorin', 40808:'the evaluation of the offeror’s proposal. the contracting officer will incorporate thefinancing termsof the successful offeror and thefarclause, performancebased payments,', 40809:'atfar 52.23232, in any resulting contract. b in the event of any conflict between the terms proposed by theofferor and', 40810:'the termsin theclause at far 52.23232, performancebased payments, the terms of the clauseat far 52.23232 shall govern. c thecontracting officer', 40811:'will notaccept the offeror’sproposed performancebased payment financing if thefinancing does not conform to the following limitations: 1 the government will', 40812:'make delivery payments only for supplies delivered and accepted, or services rendered and accepted in accordance with the payment terms', 40813:'of this contract. 2 the terms and conditions of the performancebased payments must icomply withfar 32.1004; iibe reasonableand consistent with', 40814:'all other technical and cost information includedin the offeror’s proposal; and iii their total shall not exceed 90 percent of', 40815:'the contract price if on a whole contract basis, or 90 percent of the delivery item price if on a', 40816:'delivery item basis. 3 the terms and conditions of the performancebased financing must be in the best interests of the', 40817:'government. 52.2400 subpart 52.2 text of provisions and clauses 52.23229 d the offeror’sproposal ofperformancebased payment financing shall include the following:', 40818:'1 the proposedcontractual language describing theperformancebased payments see far 32.1004 for appropriate criteria for establishing performance bases and performancebased finance', 40819:'payment amounts. 2 a listing of i the projected performancebased payment dates and the projected payment amounts; and ii the', 40820:'projected delivery date and the projected payment amount. 3 information addressing the contractor’s investment in the contract. e evaluation of', 40821:'theofferor’s proposed pricesand financing terms will include whether the offeror’sproposed performancebased payment events and payment amounts are reasonable and consistent', 40822:'with all other terms and conditions of theofferor’s proposal. end of provision alternate i mar 2000. as prescribed in far', 40823:'32.1005 b2, add the following paragraph f to the basic provision: f the government will adjust each proposed price to', 40824:'reflect the cost of providing the proposed performancebased payments to determine the total cost to the government of that particular', 40825:'combination of price and performancebased financing. the governmentwill make the adjustment using the procedure described in far 32.205c. 52.23229 termsfor', 40826:'financing of purchases of commercial productsand commercial services. as prescribed in 32.206b2, insert the following clause: terms for financing of', 40827:'purchases of commercial products and commercial services nov 2021 a contractor entitlement to financing payments. the contractor may request, and', 40828:'the government shall pay, a contract financing payment as specified elsewhere in this contract when: the payment requested is properly', 40829:'due in accordance with this contract; the supplies deliverable or services due under the contract will be delivered or performed', 40830:'in accordance with the contract; and there has been no impairment or diminution ofthe government’s security underthiscontract. b special terms', 40831:'regarding termination for cause. if this contract is terminated for cause, the contractor shall, on demand, repay to the government', 40832:'the amount of unliquidated contract financing payments. the government shall be liable for no paymentexceptas provided by the termination for', 40833:'cause paragraph of theclause at federalacquisition regulation far 52.2124, contract termsandconditions—commercialproducts and commercial services. c security for government financing. in', 40834:'the event the contractorfails to provideadequate security, as required in this contract, no financing payment shall be made under this', 40835:'contract. upon receiptof adequate security, financingpayments shall be made, including all previous payments to which the contractor is entitled, in', 40836:'accordance with the terms of the provisions for contract financing. if at any time the contracting officer determines thatthe security', 40837:'provided by the contractor is insufficient, the contractor shall promptly provide suchadditional securityas the contracting officer determines necessary. in the', 40838:'event the contractor fails to provide such additional security, the contractingofficer may collect or liquidate such security that has been', 40839:'provided and suspend further payments to the contractor; and the contractor shall repay to the government the amount ofunliquidatedfinancing payments', 40840:'as the contracting officer at his solediscretion deems repayable. d reservation of rights. 1 no payment or other action by', 40841:'the government under this clause shall i excuse the contractor from performance of obligations under this contract; or ii constitute', 40842:'a waiver of any of the rights or remedies of the parties under the contract. 2 the government’s rightsandremedies under', 40843:'this clause i shall not be exclusive, but rather shall be in addition to any other rights and remedies provided', 40844:'by law or this contract; and iishallnot be affected bydelayed, partial, oromittedexercise of any right, remedy, power, or privilege,nor shall', 40845:'such exercise or any single exercise preclude or impair any further exercise under this clause or the exercise of any', 40846:'other right, power,or privilege of the government. e content of contractors request for financing payment. thecontractor’s request for financingpayment shall', 40847:'contain the following: 1 the name and address of the contractor; 2 the date of the request for financing payment;', 40848:'3 the contract number and/or other identifier of the contract or order under which the request is made; and 52.2401', 40849:'52.23230 federal acquisition regulation 4 an appropriately itemized and totaled statement of the financing payments requested and such other information', 40850:'as is necessary for computation of thepayment, prepared inaccordance withthe direction of the contracting officer. f limitation on frequency of', 40851:'financing payments. contractor financing payments shall be provided no more frequently than monthly. g dates for payment. a payment under', 40852:'this clause is a contract financing payment and not subject to the interest penalty provisions of the prompt payment act.', 40853:'the designated payment office will pay approved payment requests within 30 days of submittal of a proper request for payment.', 40854:'h conflict between terms of offeror and clause. in the event of any conflict between the terms proposed by theofferor', 40855:'in response toan invitation to propose financing terms far 52.23231 and the terms in this clause, the terms of this', 40856:'clause shall govern. end of clause 52.23230 installment payments for commercial products and commercial services. as prescribed in 32.206g, insert', 40857:'the following clause: installment payments for commercial products and commercial services nov 2021 a contractor entitlement to financing payments. the', 40858:'contractor may request, and the government shall pay, a contract financing installment payment as specified in this contract when: the', 40859:'payment requested is properly due in accordance with this contract; the supplies deliverable or services due under the contract will', 40860:'be delivered or performed in accordance with the contract; and there has been no impairment or diminution ofthe government’s security', 40861:'underthiscontract. b computation of amounts. installment payment financing shall be paid to the contractor when requested for each separately priced', 40862:'unit of supply but not for servicesof each line item in amounts approved by the contracting officer pursuant to this', 40863:'clause. 1 number of installment payments for each line item. each separately priced unit of each line item is authorized', 40864:'a fixed number of monthly installment payments. the number of installment payments authorized for each unit of a line item', 40865:'is equal to the number of months from the date of contract award to the date onemonth before the first', 40866:'delivery of the first separately priced unit of the line item. for example, if the first scheduled delivery of any', 40867:'separately priced unit of a line item is 9 months after award of the contract, all separately priced units of', 40868:'that line item are authorized 8 installment payments. 2 amount of each installment payment. the amount of each installment payment', 40869:'for each separately priced unit of each line item is equal to 70 percent of the unit price divided by', 40870:'the number of installment payments authorized for that unit. 3 date of each installment payment. installment payments for any particular', 40871:'separately priced unit of a line item begin the number of months prior to the delivery of that unit that', 40872:'are equal to the number of installment payments authorized for that unit. for example, if 8 installment payments are authorized', 40873:'for each separately priced unit of a line item, the first installment payment for any particular unit of that line', 40874:'item would be 8 months before the scheduled delivery date for that unit. the last installment payment would be 1', 40875:'month before scheduled delivery of a unit. 4 limitation on payment. prior to the delivery payment for a separately priced', 40876:'unit of a line item, the sum of all installment payments for that unit shall not exceed 70 percent of', 40877:'the price of that unit. c contractor request for installment payment. the contractor may submit requests for payment of installment', 40878:'payments not more frequently than monthly, in a form andmanner acceptable to the contracting officer. unless otherwise authorized by the', 40879:'contractingofficer, all installment payments in any monthforwhich payment is beingrequested shall be included in a single request, appropriately itemized and', 40880:'totaled. d dates for payment. an installment payment under this clause is a contract financing payment under the prompt payment', 40881:'clause of this contract, and except as provided in paragraph e of this clause, approved requests shall be paid within', 40882:'30 days of submittal of a proper request for payment. e liquidation of installment payments. installment payments shall be liquidated', 40883:'by deducting from the delivery payment of each item the total unliquidated amount of installment payments made for that separately', 40884:'priced unit of that line item. the liquidation amounts for each unit of each line item shall be clearly delineated', 40885:'in each request for delivery payment submitted by the contractor. f security for installment payment financing. in the event the', 40886:'contractor fails to provide adequate security as required in this contract, no financing payment shall be made under this contract.', 40887:'uponreceipt of adequatesecurity, financingpayments shall be made, including all previous payments to which the contractor is entitled, in accordance with', 40888:'the terms of the 52.2402 subpart 52.2 text of provisions and clauses 52.23231 contract. if at any time the contracting', 40889:'officer determines that the security provided by the contractoris insufficient, the contractor shall promptly provide such additionalsecurity as thecontracting officer', 40890:'determines necessary. in the event the contractor fails toprovide such additional security, the contracting officer may collector liquidate such securitythat', 40891:'has been provided, and suspend further payments to the contractor; the contractor shall repay to the government the amount of', 40892:'unliquidated financing payments as the contracting officer at his sole discretion deems repayable. g special terms regarding termination for cause.', 40893:'if this contract is terminated for cause, the contractor shall, on demand, repay to the government the amount of unliquidated', 40894:'installment payments. the government shall be liable for no payment except as provided by the termination for causeparagraph ofthe clause', 40895:'at federal acquisition regulation 52.2124, contractterms and conditions—commercial products and commercial services. h reservation of rights. 1 no payment, vesting', 40896:'of title under this clause, or other action taken by the government under this clause shall i excuse the contractor', 40897:'from performance of obligations under this contract; or ii constitute a waiver of any of the rights or remedies of', 40898:'the parties under the contract. 2 the government’s rightsandremedies under this clause i shall not be exclusive, but rather shall', 40899:'be in addition to any other rights and remedies provided by law or this contract; and iishallnot be affected bydelayed,', 40900:'partial, oromittedexercise of any right, remedy, power, or privilege,nor shall such exercise or any single exercise preclude or impair any', 40901:'further exercise under this clause or the exercise of any other right, power,or privilege of the government. i content of', 40902:'contractors request for installment payment. the contractor’s request for installmentpayment shall contain the following: 1 the name and address of', 40903:'the contractor; 2 the date of the request for installment payment; 3 the contract number and/or other identifier of the', 40904:'contract or order under which the request is made; and 4 an itemized and totaled statement of the items, installment', 40905:'payment amount, and month for which payment is being requested, for each separately priced unit of each line item. end', 40906:'of clause 52.23231 invitation to propose financing terms. as prescribed in 32.205b and 32.206, insert the following provision: invitation to', 40907:'propose financing terms dec 2022 a theofferor isinvitedto propose terms under which the government shall make contract financing payments during', 40908:'contract performance. thefinancing termsproposed by the offeror shall be a factor in the evaluation of the offeror’s proposal. the financing', 40909:'terms of thesuccessfulofferor and the clause, terms for financing of purchases of commercial products andcommercial services, at federalacquisition regulation far', 40910:'52.23229, shall be incorporated in any resulting contract. b the offeror agrees that inthe event of any conflict betweenthe terms', 40911:'proposed by the offeror and the terms in the clause at far 52.23229, terms for financing of purchases of commercial', 40912:'products and commercial services,the terms of theclause at far 52.23229 shall govern. c because of statutory limitations 10 u.s.c. 3805', 40913:'and 41 u.s.c. 4505, theofferor’s proposed financing shall notbe acceptable if it does not conform to the following limitations: 1', 40914:'delivery payments shall be made only for supplies delivered and accepted, or services rendered and accepted in accordance with the', 40915:'payment terms of this contract; 2 contract financing payments shall not exceed 15 percent of the contract price in advance', 40916:'of any performance of work under the contract; 3 the terms and conditions of the contract financing must be appropriate', 40917:'or customary in the commercial marketplace; and 4 the terms and conditions of the contract financing must be in the', 40918:'best interests of the united states. d the offeror’sproposal offinancing termsshallinclude the following: 52.2403 52.23232 federal acquisition regulation 1 the', 40919:'proposedcontractual language describing thecontract financing seefar 32.2022 for appropriate definitions of types of payments; and 2 a listing of the', 40920:'earliest date and greatest amount at which each contract financing payment may be payable and the amount of each delivery', 40921:'payment. any resulting contract shall provide that no contract financing payment shall be made at any earlier date or in', 40922:'a greater amount than shown in theofferor’s listing. e theofferor’s proposed prices and financing terms shall be evaluated to determine', 40923:'thecost to theunited statesof the proposal using the interest rate and delivery schedule specified elsewhere in this solicitation. end of', 40924:'provision 52.23232 performancebased payments. as prescribed in 32.1005, insert the following clause: performancebased payments apr 2012 a amount of payments', 40925:'and limitations on payments. subject to such other limitations and conditions as are specified in this contractand this clause, the', 40926:'amount of paymentsand limitations onpaymentsshallbe specified in the contract’s description of the basis for payment. b contractor request for performancebased', 40927:'payment. the contractor may submit requests for payment of performancebasedpayments not morefrequentlythan monthly, in a form and manner acceptable to', 40928:'the contracting officer. unless otherwiseauthorized by the contracting officer, all performancebased payments in any period for which payment isbeing requested', 40929:'shall be included in a single request, appropriatelyitemized and totaled. the contractor’s request shall contain the information and certification detailed', 40930:'in paragraphs l and m of this clause. c approval and payment of requests. 1 the contractor shall not be', 40931:'entitled to payment of a request for performance based payment prior to successful accomplishment of the event or performance criterion', 40932:'for which payment is requested. the contracting officer shall determine whether the event or performance criterionforwhich payment is requestedhas been', 40933:'successfully accomplished in accordance with the terms of the contract. the contractingofficer may, at any time, require the contractor to', 40934:'substantiate the successful performance of any event or performance criterion which has been or is represented as being payable. 2', 40935:'a payment under this performancebased payment clause is a contract financing payment under the prompt payment clause of this contract', 40936:'and not subject to the interest penalty provisions of the prompt payment act. the designated paymentoffice will pay approved requests', 40937:'on the [contracting officer insert day as prescribed by agency head; if not prescribed, insert 30th] day after receipt of', 40938:'the request for performancebased payment by the designated payment office. however, the designated payment office isnot required toprovide payment if', 40939:'thecontracting officer requires substantiation as provided in paragraph c1 of this clause, or inquires into the status of an event', 40940:'or performance criterion, or into any of the conditions listed in paragraph e of this clause, or into the contractor', 40941:'certification. the payment period will not begin untilthe contracting officerapproves therequest. 3 the approvalby the contracting officer of a request', 40942:'for performancebased payment does not constitute an acceptance by the government and does not excuse the contractor from performance of', 40943:'obligations under this contract. d liquidation of performancebased payments. 1 performancebased finance amounts paid prior to payment for delivery of', 40944:'an item shall be liquidated by deducting a percentage or a designated dollar amount from the delivery payment. if the', 40945:'performancebased finance payments are on a delivery item basis, the liquidation amount for each such line item shall be the', 40946:'percent of that delivery item price that was previously paid under performancebased finance payments or the designated dollar amount. if', 40947:'the performancebased finance payments are on a whole contract basis, liquidation shall be by either predesignated liquidation amounts or a', 40948:'liquidation percentage. 2 if at any time the amount of payments under this contract exceeds any limitation in this contract,', 40949:'the contractor shall repay to the government theexcess. unless otherwise determined by the contracting officer, such excess shall be credited', 40950:'as a reduction in the unliquidated performancebased payment balances, after adjustment of invoice payments and balances for any retroactive price', 40951:'adjustments. e reduction or suspension of performancebased payments. the contracting officer may reduce or suspend performancebased payments, liquidate performancebased payments', 40952:'by deduction from any payment under the contract, or take a combination of these actions after finding upon substantial evidence', 40953:'any of the following conditions: 52.2404 subpart 52.2 text of provisions and clauses 52.23232 1 the contractor failed to comply', 40954:'with any material requirement of this contract which includes paragraphs h and i of this clause. 2 performance ofthiscontract is', 40955:'endangered bythe contractor’s i failure to make progress; or ii unsatisfactory financial condition. 3 the contractor is delinquent in payment', 40956:'of any subcontractor or supplier under this contract in the ordinary course of business. f title. 1 titleto the property', 40957:'described in this paragraph f shall vest in the government. vestiture shall be immediately upon the date of the first', 40958:'performancebased payment under this contract, for property acquired or produced beforethat date. otherwise, vestiture shall occur when the property isor', 40959:'should have been allocable or properly chargeable to this contract. 2 property, as used inthisclause, includes all ofthe following describeditems', 40960:'acquired or produced by the contractor thatare or should beallocable or properly chargeable to this contract under soundand generally accepted', 40961:'accounting principles and practices: i parts, materials, inventories, and work in process; ii special tooling and special test equipment to', 40962:'which the government is to acquire title; iii nondurable i.e., noncapital tools, jigs, dies, fixtures, molds, patterns, taps, gauges, test', 40963:'equipment and other similar manufacturing aids, title to which would not be obtained as special tooling under paragraph f2ii of', 40964:'this clause; and iv drawings and technical data, to the extent the contractor or subcontractors are required to deliver them', 40965:'to the government by other clauses of this contract. 3 although title to property is in the government under this', 40966:'clause, other applicable clauses of this contract e.g., the terminationclausesshalldetermine thehandling and disposition ofthe property. 4 the contractor may sell', 40967:'any scrap resulting from production under this contract, without requesting the contracting officer’s approval, provided that any significant reduction in', 40968:'thevalueof the property to which the government has title underthis clause is reported inwriting tothe contracting officer. 5 in order', 40969:'to acquire for its own use or dispose of property to which title is vested in the government under this', 40970:'clause, the contractor shall obtain the contracting officer’sadvance approval ofthe action and the terms. if approved, the basis for payment', 40971:'the events or performance criteria to which the property is related shall be deemed to be not in compliance with', 40972:'the terms of the contract and not payable if the property is part of or needed for performance, and the', 40973:'contractor shall refund the related performancebased payments in accordance with paragraph d of this clause. 6 when the contractor completes', 40974:'all of the obligations under this contract, including liquidation of all performance based payments, title shall vest in the contractor', 40975:'for all property or the proceeds thereof not ideliveredto, and accepted by,the government underthis contract;or iiincorporated in supplies delivered to,', 40976:'and accepted by, the government under this contract and to which title is vested in the government under this clause.', 40977:'7 the terms of this contract concerning liability for governmentfurnished property shall not apply to property to which the government', 40978:'acquired title solely under this clause. g risk of loss. before delivery to and acceptance by the government, the contractor', 40979:'shall bear the risk of loss for property,the title to which vests in thegovernmentunder this clause, except to the extent', 40980:'thegovernmentexpressly assumes the risk. if any property is lost see 45.101, the basis of payment the events or performance criteria', 40981:'to which the property is related shall be deemed to be not in compliance with the terms of the contract', 40982:'and not payable if the property is part of or needed for performance, and the contractor shall refund the related', 40983:'performancebased payments in accordance with paragraph d of this clause. h records and controls. the contractor shall maintain records and', 40984:'controls adequate for administration of this clause. the contractor shall have no entitlement to performancebased payments during any time the', 40985:'contractor’s records or controls aredetermined by the contracting officer tobe inadequate for administration of this clause. i reports and government', 40986:'access. the contractor shall promptly furnish reports, certificates, financial statements, and other pertinent information requestedby the contracting officer for the', 40987:'administration of this clause and todetermine that an event or other criterion prompting a financing payment has been successfully accomplished.', 40988:'the contractor shall give the government reasonableopportunity to examine andverify the contractor’s records and to examineandverify the contractor’sperformance of this', 40989:'contract for administration of this clause. 52.2405 52.23233 federal acquisition regulation j special terms regarding default. if this contract is', 40990:'terminated under the default clause, 1 the contractor shall, on demand, repay to the government the amount of unliquidated performancebased', 40991:'payments, and 2 title shall vest in the contractor, onfull liquidationof all performancebasedpayments, for all property for whichthe government elects', 40992:'notto require delivery under the default clause of this contract. the government shall be liable for no payment except as', 40993:'provided by the default clause. k reservation of rights. 1 no payment or vesting of title under this clause shall', 40994:'i excuse the contractor from performance of obligations under this contract; or ii constitute a waiver of any of the', 40995:'rights or remedies of the parties under the contract. 2 the government’s rightsandremedies under this clause i shall not be', 40996:'exclusive, but rather shall be in addition to any other rights and remedies provided by law or this contract; and', 40997:'iishallnot be affected bydelayed, partial, oromittedexercise of any right, remedy, power, or privilege,nor shall such exercise or any single exercise', 40998:'preclude or impair any further exercise under this clause or the exercise of any other right, power,or privilege of the', 40999:'government. l content of contractor’s request for performancebased payment. the contractor’s request for performancebased payment shall contain the following: 1', 41000:'the name and address of the contractor; 2 the date of the request for performancebased payment; 3 the contract number', 41001:'and/or other identifier of the contract or order under which the request is made; 4 suchinformation anddocumentation as isrequired by', 41002:'thecontract’s description of the basis for payment; and 5 a certification by a contractorofficial authorized to bind the contractor, as', 41003:'specified in paragraph mof this clause. m content of contractors certification. as required in paragraph l5 of this clause, the', 41004:'contractor shall make the following certification in each request for performancebased payment: i certify to the best of my knowledge', 41005:'and belief that 1 this request for performancebased payment is true and correct; this request and attachments has been prepared', 41006:'from thebooksandrecordsof the contractor,in accordance with thecontract andthe instructions ofthe contracting officer; 2 except as reported in writing on ,', 41007:'all payments to subcontractors and suppliers under this contract have been paid, or willbe paid, currently, when due in the', 41008:'ordinary course of business; 3 there are no encumbrances except as reported in writing on against the property acquired or', 41009:'produced for,and allocated or properly chargeable to, the contractwhich would affector impair the governments title; 4 there has been no', 41010:'materially adverse change in the financial condition of the contractor since the submission by the contractor to the government of', 41011:'the most recent written information dated ; and 5 after the making of this requested performancebased payment, the amount of', 41012:'all payments for each deliverable item for which performancebased payments have been requested will not exceed any limitation in the', 41013:'contract, and the amount of all payments under the contract will not exceed any limitation in the contract. end of', 41014:'clause 52.23233 paymentby electronic funds transfersystem for award management. as prescribed in 32.1110a1, insert the following clause: payment by electronic', 41015:'funds transfersystem for award management oct 2018 a method of payment. 1 all payments by the government under this contract', 41016:'shall be made by electronic funds transfer eft, except as provided in paragraph a2 of this clause. as used in', 41017:'this clause, the term eft refers to the funds transfer and may also include the payment information transfer. 2 in', 41018:'the event the governmentis unableto release one or more payments by eft, the contractor agreesto either i accept payment by', 41019:'check or some other mutually agreeable method of payment; or ii request the government to extend the payment due date', 41020:'until such time as the government can make payment by eft but see paragraph d of this clause. 52.2406 subpart', 41021:'52.2 text of provisions and clauses 52.23234 b contractors eft information. the government shall make payment to the contractor using', 41022:'the eft information containedin thesystemforawardmanagement sam. in the eventthat theeft information changes, the contractorshall be responsible for providing the updated', 41023:'information to sam. c mechanisms for eft payment. the government may make payment by eft through either the automated clearing', 41024:'house ach network,subject to the rules of thenational automated clearing house association,or the fedwire transfer system. the rules governing federal', 41025:'payments through the ach are contained in 31 cfr part 210. d suspension of payment. if the contractor’s eft information', 41026:'in the sam is incorrect, thenthe government need not make payment to the contractor under this contract until correct eft', 41027:'information is entered into the sam; and any invoice or contract financing request shall be deemed not to be a', 41028:'proper invoice for the purpose of prompt payment under this contract. the prompt payment terms of the contract regarding notice', 41029:'of an improper invoice and delays in accrual of interest penalties apply. e liability for uncompleted or erroneous transfers. 1', 41030:'if an uncompleted or erroneous transfer occurs because the government used the contractor’s eftinformation incorrectly, the government remains responsible for', 41031:'i making a correct payment; ii paying any prompt payment penalty due; and iii recovering any erroneously directed funds. 2', 41032:'if an uncompleted or erroneous transfer occurs because the contractor’s eftinformation was incorrect, or was revised within 30 days of', 41033:'government release of the eft payment transaction instruction to the federal reserve system, and iif the funds are no longerunder', 41034:'thecontrol of the payment office, the government isdeemed to have made payment and the contractor is responsible for recovery of', 41035:'any erroneously directed funds; or iiif the funds remain under the control of the payment office,the government shall not make', 41036:'payment, and the provisions of paragraph d of this clause shall apply. f eft and prompt payment. a payment shall', 41037:'be deemed to have been made in a timely manner in accordance with the prompt payment terms of this contract', 41038:'if, in the eft payment transaction instruction released to the federal reserve system, the date specified for settlement of the', 41039:'payment is on or before the prompt payment due date, provided the specified payment date is a valid date under', 41040:'the rules of the federal reserve system. g eft and assignment of claims. if the contractor assigns the proceeds of', 41041:'this contract as provided for in the assignment of claims terms of this contract, the contractor shall require as a', 41042:'condition of any such assignment, that the assignee shall register separately in sam and shall be paid by eft in', 41043:'accordance with the terms of this clause. notwithstanding any other requirement of this contract, paymentto anultimate recipient other than thecontractor,', 41044:'or a financial institution properly recognized under an assignment of claims pursuant to subpart 32.8, is not permitted. in all', 41045:'respects, the requirements of this clause shall apply to the assignee as ifitwere thecontractor. eftinformation that shows the ultimate recipient', 41046:'of the transfer to be other than the contractor, in the absence of a proper assignment of claims acceptable to', 41047:'the government, is incorrect eft information within the meaning of paragraph d of this clause. h liability for change of', 41048:'eft information by financial agent. the government is not liable for errors resulting from changes to eftinformation madeby the contractor’s', 41049:'financialagent. i payment information.the payment ordisbursing office shall forward to the contractor available payment information that is suitable for transmission', 41050:'as of the date of release of the eft instruction to the federal reserve system. the government may request the', 41051:'contractor to designate a desired format and methods for delivery of payment information from alist of formatsandmethodsthe paymentoffice is capable', 41052:'ofexecuting. however, the government does not guarantee that any particular format or method of delivery is available at any particular', 41053:'payment office and retainsthe latitude to use the format and delivery method most convenient to the government. if the government', 41054:'makes payment by check in accordance with paragraph a of this clause, the government shall mail the payment information to', 41055:'the remittance address contained in sam. end of clause 52.23234 paymentby electronic funds transferother than system for award management. as', 41056:'prescribed in 32.1110a2, insert the following clause: payment by electronic funds transferother than system for award management jul 2013 52.2407', 41057:'52.23234 federal acquisition regulation a method of payment. 1 all payments by the government under this contract shall be made', 41058:'by electronic funds transfer eft except as provided in paragraph a2 of this clause. as used in this clause, the', 41059:'term eft refers to the funds transfer and may also include the payment information transfer. 2 in the event the', 41060:'governmentis unableto release one or more payments by eft, the contractor agreesto either i accept payment by check or some', 41061:'other mutually agreeable method of payment; or ii request the government to extend payment due dates until such time as', 41062:'the government makes payment by eft but see paragraph d of this clause. b mandatory submission of contractors eft information.', 41063:'1 the contractor is required to provide the government with the information required to make payment by eft see paragraph', 41064:'j of this clause. the contractor shall provide this information directly tothe officedesignated in this contract to receive that information', 41065:'hereafter: designated office by [the contracting officer shall insert date, days after award, days before first request, the date specified', 41066:'for receipt of offers if the provision at 52.23238 is utilized, or concurrent with first request as prescribed by the', 41067:'head of the agency; if not prescribed, insert no later than 15 days prior to submission of the first request', 41068:'for payment]. if not otherwise specified in this contract, the payment office is the designated office for receipt ofthe contractor’seft', 41069:'information. ifmore than one designated officeis named for the contract, the contractor shall provide a separatenotice to eachoffice. in theevent', 41070:'that the eft information changes, the contractor shall be responsible for providing the updated information to the designated offices. 2', 41071:'if the contractor provides eft information applicable to multiple contracts, the contractor shall specifically state theapplicability ofthis eftinformation in terms', 41072:'acceptableto the designatedoffice. however, eft information supplied to a designated office shall be applicable only to contractsthat identify thatdesignated office', 41073:'as the office to receive eft information for that contract. c mechanisms for eft payment. the government may make payment', 41074:'by eft through either the automated clearing house ach network,subject to the rules of thenational automated clearing house association,or the', 41075:'fedwire transfer system. the rules governing federal payments through the ach are contained in 31 cfr part 210. d suspension', 41076:'of payment. 1 the government is not required to make any payment under this contract until after receipt, by the', 41077:'designatedoffice, of thecorrect eft payment information from the contractor. until receipt of the correct eft information, any invoice or contract', 41078:'financing request shall be deemed not to be a proper invoice for the purpose of prompt payment under this contract.', 41079:'the prompt payment terms of the contract regarding notice of an improper invoice and delaysin accrual of interest penalties apply.', 41080:'2 if the eft information changes after submission of correct eft information, the government shall begin using thechanged eft informationno', 41081:'later than30 days after its receipt by the designatedoffice tothe extent payment is made by eft. however, the contractor may', 41082:'request that no further payments bemade until theupdated eft information is implemented bythe paymentoffice. if such suspension would result ina', 41083:'late paymentunder theprompt paymentterms of this contract, the contractor’s request for suspensionshallextend the due date for payment by the number', 41084:'of days of the suspension. e liability for uncompleted or erroneous transfers. 1 if an uncompleted or erroneous transfer occurs', 41085:'because the government used the contractor’s eftinformation incorrectly, the government remains responsible for i making a correct payment; ii paying', 41086:'any prompt payment penalty due; and iii recovering any erroneously directed funds. 2 if an uncompleted or erroneous transfer occurs', 41087:'because the contractor’s eftinformation was incorrect, or was revised within 30 days of government release of the eft payment transaction', 41088:'instruction to the federal reserve system, and iif the funds are no longerunder thecontrol of the payment office, the government', 41089:'isdeemed to have made payment and the contractor is responsible for recovery of any erroneously directed funds; or iiif the', 41090:'funds remain under the control of the payment office,the government shall not make payment and the provisions of paragraph d', 41091:'shall apply. f eft and prompt payment. a payment shall be deemed to have been made in a timely manner', 41092:'in accordance with the prompt payment terms of this contract if, in the eft payment transaction instruction released to the', 41093:'federal reserve system, the date specified for settlement of the payment is on or before the prompt payment due date,', 41094:'provided the specified payment date is a valid date under the rules of the federal reserve system. g eft and', 41095:'assignment of claims. if the contractor assigns the proceeds of this contract as provided for in the assignment of claims', 41096:'terms of this contract, the contractor shall require as a condition of any such assignment, that the assignee shall 52.2408', 41097:'subpart 52.2 text of provisions and clauses 52.23235 provide the eft informationrequired by paragraph j of thisclause to the designated', 41098:'office, andshallbe paid by eft in accordance with the terms of this clause. in all respects, the requirements of this', 41099:'clause shall apply to the assignee as if it were the contractor. eft information thatshows the ultimate recipientof the transfer', 41100:'to be other thanthe contractor, in the absence of a proper assignment of claims acceptable to the government, is incorrect', 41101:'eft information within the meaning of paragraph d of this clause. h liability for change of eft information by financial', 41102:'agent. the government is not liable for errors resulting from changes to eftinformation provided bythe contractor’sfinancial agent. i payment information.the', 41103:'payment ordisbursing office shall forward to the contractor available payment information that is suitable for transmission as of the date', 41104:'of release of the eft instruction to the federal reserve system. the government may request the contractor to designate a', 41105:'desired format and methods for delivery of payment information from alist of formatsandmethodsthe paymentoffice is capable ofexecuting. however, the government', 41106:'does not guarantee that any particular format or method of delivery is available at any particular payment office and retainsthe', 41107:'latitude to use the format and delivery method most convenient to the government. if the government makes payment by check', 41108:'in accordance with paragraph a of this clause, the government shall mail the payment information to the remittance address in', 41109:'the contract. j eft information. thecontractor shall providethe following information to the designatedoffice. the contractor may supply this data for', 41110:'this or multiple contracts see paragraph b of this clause. the contractor shall designate a single financial agent per contract', 41111:'capable of receiving and processing the eft information using the eft methods described in paragraph c of this clause. 1', 41112:'the contract number or other procurement identification number. 2 the contractor’s name and remittance address, asstated in thecontracts. 3 the', 41113:'signature manual or electronic, as appropriate,title, andtelephone number of the contractor official authorized to provide this information. 4 the name,', 41114:'address, and 9digitrouting transit number of the contractor’s financial agent. 5 the contractor’s accountnumber and the typeof account checking, saving,', 41115:'or lockbox. 6 if applicable, thefedwire transfer system telegraphicabbreviationof the contractor’s financial agent. 7 if applicable, the contractor shall also', 41116:'provide the name, address, telegraphic abbreviation, and 9digit routing transit numberof the correspondent financial institution receiving the wire transfer paymentif', 41117:'the contractor’s financial agent isnot directly online to thefedwire transfer system; and, therefore, not the receiver of the wire transfer', 41118:'payment. end of clause 52.23235 designation of office forgovernment receipt of electronicfunds transfer information. as prescribed in 32.1110c, insert the', 41119:'following clause: designation of office for government receipt of electronic funds transfer information jul 2013 a as provided in paragraph', 41120:'b of the clause at 52.23234, payment byelectronic funds transferother than system for award management, the government has designatedthe office', 41121:'cited inparagraph cof this clauseas the office to receive the contractor’selectronic funds transfereft information,in lieu of thepayment office of this', 41122:'contract. b the contractor shall send alleft information, and any changes to eft information to the office designated in paragraph', 41123:'c of this clause. the contractor shall not send eft informationto the payment office, or any other office than that', 41124:'designatedin paragraph c. the government need notuse any eft information sent to any office other than that designated in paragraph', 41125:'c. c designated office: name: mailing address: 52.2409 52.23236 federal acquisition regulation telephonenumber: person to contact: electronic address: end of', 41126:'clause 52.23236 paymentby third party. as prescribed in 32.1110d, insert the following clause: payment by third party may 2014 a', 41127:'general. 1 except as provided in paragraph a2 of this clause, the contractor agrees to accept payments due under this', 41128:'contract, through payment by a third party in lieu of payment directly from the government, in accordance with the terms', 41129:'of this clause. the third party and, if applicable, the particular governmentwide commercial purchase card to be used are identified', 41130:'elsewhere in this contract. 2 the governmentwide commercial purchase card is not authorized as a method of payment during any', 41131:'period the system for award management sam indicates thatthe contractor has delinquent debt that is subjectto collection under thetreasury offset', 41132:'programtop. information on top is available at http://fms.treas.gov/debt/index.html. if the sam subsequently indicates that the contractor no longer has delinquent', 41133:'debt, thecontractor mayrequest the contracting officer to authorize payment by governmentwide commercial purchase card. b contractor payment request. 1 except', 41134:'as provided in paragraph b2 of this clause, the contractor shall make paymentrequests through a charge to the government account', 41135:'with the third party, at the time and for the amount due in accordance with those clauses of this contract', 41136:'that authorize the contractor to submit invoices, contract financing requests, other paymentrequests, or as provided in other clauses providing for', 41137:'payment to the contractor. 2 when the contracting officer hasnotified the contractor that the governmentwide commercial purchase card is no', 41138:'longer an authorized method of payment, the contractor shall make such payment requests in accordance with instructions provided by the', 41139:'contractingofficer duringthe periodwhen the purchase card isnot authorized. c payment. the contractor and the third party shall agree that payments', 41140:'due under this contract shall be made upon submittal of payment requests to the third party in accordance with the', 41141:'terms and conditions of an agreement between the contractor, the contractor’s financial agent if any,andthe third party and itsagents ifany.', 41142:'no payment shall be due the contractor until such agreement is made. payments made or due by the third party', 41143:'under this clause are not payments made by the government and are not subject to the prompt payment act or', 41144:'any implementation thereof in this contract. d documentation. documentation ofeach charge againstthe government’s account shall be provided to the contracting', 41145:'officer upon request. e assignment of claims. notwithstanding any other provision of this contract, if any payment is made under', 41146:'this clause, then no payment under this contract shall be assigned under the provisions of the assignment of claims terms', 41147:'of this contract or the assignment of claims act of1940 31 u.s.c.3727, 41 u.s.c. 6305. f other payment terms. the', 41148:'other payment terms of this contract shall govern the content and submission of payment requests. if any clause requires information', 41149:'or documents in or with the payment request, that is not provided in the third party agreement referenced in paragraph', 41150:'c of this clause, the contractor shall obtain instructions from the contracting officer before submitting such apayment request. end of', 41151:'clause 52.2410 subpart 52.2 text of provisions and clauses 52.23239 52.23237 multiple payment arrangements. as prescribed in 32.1110e, insert the', 41152:'following clause: multiple payment arrangements may 1999 this contract or agreement provides for payments to the contractor through several alternative', 41153:'methods. the applicability of specific methods of payment and the designation of the payment officesare either stated a elsewhere in', 41154:'this contract or agreement; or b in individual orders placed under this contract or agreement. end of clause 52.23238 submission', 41155:'of electronic funds transfer information with offer. as prescribed in 32.1110g, insert the following provision: submission of electronic funds transfer', 41156:'information with offer jul 2013 the offeror shall provide, with its offer, the following information thatis required to make payment', 41157:'byelectronic funds transfer eft under any contract that results from this solicitation. this submission satisfies the requirement to provide eft', 41158:'information under paragraphs b1 and j of the clause at 52.23234,payment by electronic funds transferotherthan system for award management. 1', 41159:'the solicitation number or other procurement identification number. 2 the offeror’sname and remittance address, as stated in the offer. 3', 41160:'the signature manual or electronic, as appropriate,title, andtelephone number of the offeror’s official authorized to provide this information. 4 the', 41161:'name, address, and 9digitrouting transit number of the offeror’s financial agent. 5 the offeror’saccount numberandthe type ofaccount checking, savings,or lockbox.', 41162:'6 if applicable, thefedwire transfer system telegraphicabbreviationof the offeror’sfinancial agent. 7 if applicable, theofferor shall also provide the name, address,', 41163:'telegraphicabbreviation, and 9digit routing transit number of thecorrespondent financial institutionreceiving thewire transfer payment ifthe offeror’s financial agent isnot directly online', 41164:'to the fedwire and, therefore, not the receiver of the wire transfer payment. end of provision 52.23239 unenforceability of unauthorizedobligations.', 41165:'as prescribed in 32.7063, insert the following clause: unenforceability of unauthorized obligations jun 2013 a except as stated in paragraph', 41166:'b of this clause, when any supply or service acquired under this contract is subject to any end user license', 41167:'agreementeula, terms of service tos, or similar legal instrument or agreement, that includes any clause requiring the government to indemnify', 41168:'the contractor or any person or entity for damages, costs, fees, or any other loss or liability that would create', 41169:'an antideficiency act violation 31 u.s.c. 1341, the following shall govern: 1 any such clause is unenforceable against the government.', 41170:'2 neither the government nor any government authorized end user shall be deemed to have agreed to such clause by', 41171:'virtue ofitappearingin the eula, tos, or similar legalinstrument or agreement. if the eula, tos, or similar legal instrument or agreement', 41172:'is invoked through an i agree click box or other comparable mechanism e.g., clickwrap or browsewrap agreements, execution does not', 41173:'bind the government or any government authorized end user to such clause. 3 any such clause is deemed to be', 41174:'stricken from the eula, tos, or similarlegal instrument or agreement. b paragraph a of this clause does not apply to', 41175:'indemnification by the government that is expressly authorized by statute and specifically authorized under applicable agency regulations and procedures. end', 41176:'of clause 52.2411 52.23240 federal acquisition regulation 52.23240 providing accelerated payments tosmall business subcontractors. as prescribed in 32.0092, insert the', 41177:'following clause: providing accelerated payments to small business subcontractors mar 2023 a 1 in accordance with 31 u.s.c. 3903 and', 41178:'10 u.s.c. 3801, within 15 days after receipt of accelerated payments from the government, the contractor shall make accelerated payments', 41179:'to its small business subcontractors under this contract, to the maximum extent practicable and prior to when such payment is', 41180:'otherwise required under the applicable contract or subcontract,after receipt of a proper invoice and all other required documentation fromthe small', 41181:'business subcontractor. 2 the contractor agrees to make such payments to its small business subcontractors without any further consideration from', 41182:'or fees charged to the subcontractor. b the acceleration of payments under this clause does not provide any new rights', 41183:'under the prompt payment act. c include the substance of this clause, including this paragraph c, in all subcontracts with', 41184:'small business concerns, including subcontracts with small business concerns for the acquisition of commercial products or commercial services. end of', 41185:'clause 52.2412 subpart 52.2 text of provisions and clauses 52.2331 52.233[reserved] 52.2331 disputes. as prescribed in 33.215, insert the following', 41186:'clause: disputes may 2014 a this contract is subject to 41 u.s.c chapter 71, contract disputes. b except as provided', 41187:'in 41 u.s.c chapter 71, all disputes arising under or relating to this contract shall be resolved under this clause.', 41188:'c claim, as used in this clause, means a written demand or written assertion by one of the contracting parties', 41189:'seeking, as a matter of right, the payment of money in a sum certain, the adjustment or interpretation of contract', 41190:'terms, or other relief arisingunder or relating to this contract. however, a writtendemand or written assertionby the contractor seeking the', 41191:'paymentof money exceeding$100,000 is nota claim under 41u.s.c chapter 71 until certified. a voucher, invoice, or other routine request for', 41192:'payment that is not in dispute when submitted is not a claim under 41 u.s.c chapter 71. the submission may', 41193:'be converted to a claim under 41 u.s.c chapter 71, by complying with the submission and certification requirements of this', 41194:'clause, if it is disputed either as to liability or amount or is not acted upon in a reasonable time.', 41195:'d 1 a claim by the contractor shall be made in writing and, unless otherwise stated in this contract, submitted', 41196:'within 6years after accrual ofthe claim to the contractingofficer for a writtendecision. a claim by the government againstthe contractor shall', 41197:'be subject toa written decision by the contractingofficer. 2 i the contractor shall provide the certification specified in paragraph d2iii', 41198:'of this clause when submitting any claim exceeding $100,000. ii the certification requirement does not apply to issues in controversy', 41199:'that have not been submitted as all or part of a claim. iii the certification shall state as follows: i', 41200:'certify that the claim is made in good faith; that the supporting data are accurate and complete to the best', 41201:'of my knowledge and belief; that the amount requested accurately reflects the contract adjustment for which the contractor believes the', 41202:'government is liable; and that i am authorized to certify the claim on behalf of the contractor. 3 the certification', 41203:'may be executed by any person authorized to bind the contractor with respect to the claim. e for contractor claims', 41204:'of $100,000 orless, thecontracting officer must, if requested in writing by the contractor, rendera decisionwithin 60 days of therequest. for', 41205:'contractorcertified claims over $100,000, thecontracting officer must, within 60 days, decide the claim or notify the contractor of the date', 41206:'by which the decision will be made. f the contracting officer’sdecision shall be finalunlessthe contractor appeals orfiles a suitas providedin', 41207:'41 u.s.c chapter 71. g if the claimby the contractor is submittedto thecontracting officer or a claim by the government', 41208:'is presentedto the contractor, the parties, bymutualconsent,may agree to use alternative dispute resolution adr. ifthe contractor refuses anoffer for adr,', 41209:'the contractorshallinform thecontracting officer,in writing, ofthe contractor’sspecific reasons for rejecting theoffer. h the government shall payinterest on the amountfound due', 41210:'and unpaid from 1 the date that the contracting officer receivesthe claimcertified, if required; or 2 the date that payment', 41211:'otherwise would be due, if that date is later, untilthe dateof payment. with regardto claims havingdefective certifications, asdefined infar 33.201,', 41212:'interest shall be paid from thedate thatthe contracting officerinitially receivesthe claim. simple interest on claims shall bepaid atthe rate, fixed', 41213:'by thesecretary of the treasury as provided in the act, whichis applicable to the period during which thecontracting officer receivesthe', 41214:'claimand then at the rate applicable for each 6month period asfixed bythe treasury secretary during the pendency of the claim.', 41215:'i the contractor shall proceed diligently with performance of this contract, pending final resolution of any request for relief, claim,', 41216:'appeal,or action arising under the contract, and comply withanydecision of thecontracting officer. end of clause alternate i dec 1991. as', 41217:'prescribed in 33.215 , substitute the following paragraph i for paragraph i of the basic clause: 52.2413 52.2332 federal acquisition', 41218:'regulation i the contractor shall proceed diligently with performance of this contract, pending final resolution of any request for relief,', 41219:'claim, appeal, or action arising under or relating to the contract, and comply with any decision of the contracting officer.', 41220:'52.2332service of protest. as prescribed in 33.106, insert the following provision: service of protest sept 2006 a protests, as defined', 41221:'in section 33.101of the federal acquisition regulation, thatare filed directly with anagency,and copiesof any protests that are filed with the', 41222:'governmentaccountability office gao,shallbe served on the contracting officer addressed as follows by obtaining written and datedacknowledgment of receiptfrom . [contracting', 41223:'officer designate the official or location where a protest may be served on the contracting officer.] b the copy of', 41224:'any protest shall be received inthe office designated above withinoneday of filing a protest with the gao. end of provision', 41225:'52.2333protest after award. as prescribed in 33.106b, insert the following clause: protest after award aug 1996 a upon receiptof anotice', 41226:'of protest as defined in far 33.101 or a determination that a protestis likely see far 33.102d, the contracting officer', 41227:'may,by written order to the contractor, directthe contractor to stop performanceof the work called for by this contract. the order', 41228:'shall be specifically identified as a stopwork order issued under this clause. upon receipt ofthe order, thecontractor shall immediately comply', 41229:'withits terms and take all reasonable steps to minimize the incurrence of costs allocable to the work covered by the', 41230:'order during the period of work stoppage. upon receipt of the final decision in the protest, the contracting officer shall', 41231:'either 1 cancel the stopwork order; or 2 terminate thework covered by the order as provided in the default, or', 41232:'the termination for convenience ofthe government, clause of this contract. b if a stopwork order issued under this clause is', 41233:'canceled either before or after a final decision in the protest, the contractor shall resume work. the contracting officer shall', 41234:'make an equitable adjustment in the delivery schedule or contract price, or both, and thecontract shall be modified, inwriting, accordingly,', 41235:'if 1 the stopwork orderresults in an increase in the time required for, or inthe contractor’scost properly allocableto, the performance', 41236:'of any part of this contract; and 2 the contractor asserts its right to an adjustment within 30 days after', 41237:'the end of the period of work stoppage; provided, that if the contracting officer decides the facts justify the action,', 41238:'the contracting officer may receive and act upon a proposal at any time before final payment under this contract. c', 41239:'if a stopwork order is not canceled and the work covered by the order is terminated for the convenience of', 41240:'the government, thecontracting officer shall allow reasonablecosts resulting from the stopwork orderin arrivingat the termination settlement. d if a stopwork', 41241:'order is not canceled and the work covered by the order is terminated for default, the contracting officer shall allow,', 41242:'by equitable adjustment or otherwise, reasonable costs resulting from the stopwork order. e thegovernment’s rights to terminate this contract at', 41243:'any time are notaffected by action taken under this clause. f if, asthe result of thecontractor’s intentional or negligentmisstatement, misrepresentation,', 41244:'or miscertification, a protestrelated to this contract issustained, and thegovernment pays costs, asprovided in far 33.102b2 or 33.104h1, the government', 41245:'may require the contractor to reimburse the government the amount of such costs. in addition to any other remedy available,', 41246:'and pursuant to the requirements of subpart 32.6,thegovernmentmaycollectthisdebtbyoffsettingthe amount against any payment due the contractor under any contract between the', 41247:'contractor and the government. end of clause 52.2414 subpart 52.2 text of provisions and clauses 52.2334 alternate i june1985. as', 41248:'prescribed in 33.106b,substituteinparagrapha2thewords theterminationclauseof this contract for thewords thedefault, or thetermination for convenience of the government clause of this contract.', 41249:'in paragraph b substitute the words an equitable adjustment in the delivery schedule, the estimated cost, the fee, or a', 41250:'combination thereof,andin any other terms of the contractthat may be affected for the words an equitable adjustment in the delivery', 41251:'schedule or contract price, or both. 52.2334applicable law forbreach of contract claim. as prescribed in 33.215b, insert the following clause:', 41252:'applicable law for breach of contract claim oct 2004 united states law will apply to resolve any claim of breach', 41253:'of this contract. end of clause 52.2415 this page intentionally left blank. 52.2416 subpart 52.2 text of provisions and clauses', 41254:'52.2342 52.234[reserved] 52.2341industrial resources developedunder title iii,defense production act. as prescribed at 34.104, insert the following clause: industrial resources developed', 41255:'under title iii defense production act sept 2016 a definitions. title iii industrial resource meansmaterials, services, processes,or manufacturing equipment including', 41256:'the processes, technologies, and ancillary services for the use of such equipment established or maintained under the authorityof title iii,defense', 41257:'productionact50 u.s.c. app.20912093. title iii project contractor means a contractor that has received assistance for the development or manufacture of', 41258:'an industrial resource under titleiii of defenseproduction act 50 u.s.c. app.20912093. b the contractor shall refer any request from a', 41259:'title iii project contractor for testing and qualification ofa title iii industrial resource to the contracting officer. c upon the', 41260:'directionof the contracting officer, the contractorshalltest title iii industrial resources for qualification. the contractor shall provide the test results to', 41261:'thedefense production act office, title iii program, located atwright patterson air force base, ohio 454337739. d when the contracting officer', 41262:'modifies the contract to direct testing pursuantto this clause, the government will provide the title iii industrial resource tobe tested', 41263:'and will make an equitableadjustmentin the contractforthe costs of testing and qualification ofthe title iii industrial resource. e the contractor', 41264:'agrees to insert the substance of this clause, including paragraph e, in every subcontract issued in performance of this contract.', 41265:'end of clause 52.2342notice of earnedvalue management systempreaward integratedbaseline review. as prescribed in 34.203a use the following provision: notice of', 41266:'earned value management systempreaward integrated baseline review. nov 2016 a theofferor shall provide documentation thatthe cognizant federalagency has determined that', 41267:'theproposed earned value management system evms complies with the evms guidelines in electronic industries alliance standard 748eia748 current version at', 41268:'time of solicitation. b if the offerorproposesto use a system that has not been determined to be in compliance withthe', 41269:'requirements of paragraph a of this provision, the offeror shall submit a comprehensive plan for compliancewith the evms guidelines. 1', 41270:'the plan shall ii describethe evms the offeror intends to use in performance ofthe contracts; iidistinguish betweenthe offeror’s existing management', 41271:'system and modificationsproposed to meet the guidelines; iii iii describe the management system and its application in terms of the', 41272:'evms guidelines; iv iv describe the proposed procedure for administration of the guidelines, as applied to subcontractors; and v v', 41273:'provide documentationdescribing the process and resultsof any thirdparty or selfevaluationof the system’s compliance with the evms guidelines. 2 the offeror', 41274:'shall provide information and assistance as required by the contracting officer to support review of the plan. 3 the government', 41275:'will review and approve the offeror’s plan for anevms before contract award. 4 the offeror’sevms plan must provide milestones that', 41276:'indicatewhen the offeror anticipatesthat theevmsystem will be compliant with the eia748 guidelines. c offerors shall identifythe major subcontractors, ormajorsubcontracted effort', 41277:'if major subcontractors have not been selected subject to the guidelines. the prime contractor and the government shall agree to', 41278:'subcontractors selected for application of the evms guidelines. d the government will conduct anintegrated baseline review ibr, as designated by', 41279:'the agency, priorto contract award. the objective of the ibr is for the government and the contractor to jointly assess', 41280:'technical areas, such as the 52.2417 52.2343 federal acquisition regulation contractor’splanning, to ensure complete coverageof the contract requirements, logicalscheduling of', 41281:'the work activities, adequate resources, methodologies for earned value budgeted cost for work performed bcwp, and identification of inherent risks.', 41282:'end of provision 52.2343notice of earnedvalue management systempost award postaward integratedbaseline review. as prescribed in 34.203b use the following provision:', 41283:'notice of earned value management systempost award postaward integrated baseline review nov 2016 a theofferor shall provide documentation thatthe cognizant', 41284:'federalagency has determined that theproposed earned value management system evms complies with the evms guidelines in electronic industries alliance standard', 41285:'748 eia748 current version at time of solicitation. b if the offerorproposesto use a system that has not been determined', 41286:'to be in compliance withthe requirements of paragraph a of this provision, the offeror shall submit a comprehensive plan for', 41287:'compliancewith the evms guidelines. 1 the plan shall idescribe the evms the offeror intends to use in performance of thecontracts;', 41288:'iidistinguish betweenthe offeror’s existing management system and modificationsproposed to meet the guidelines; iii describe the management system and its application', 41289:'in terms of the evms guidelines; iv describe the proposed procedure for administration of the guidelines, as applied to subcontractors;', 41290:'and v provide documentationdescribing the process and resultsof any thirdparty or selfevaluationof the system’s compliance with the evms guidelines. 2', 41291:'the offeror shall provide information and assistance as required by the contracting officer to support review of the plan 3', 41292:'the government will review and approve the offeror’s plan for anevms before contract award. 4 the offeror’sevms plan must provide', 41293:'milestones that indicatewhen the offeror anticipatesthat theevmsystem will be compliant with the eia748 guidelines. c offerors shall identifythe major subcontractors,', 41294:'ormajorsubcontracted effort if major subcontractors have not been selected, planned for application of the guidelines. the prime contractor and the', 41295:'government shall agree to subcontractors selected for application of the evms guidelines. end of provision 52.2344earned value managementsystem. as prescribed', 41296:'in 34.203c, insert the following clause: earned value management system nov 2016 a the contractor shall use an earned value', 41297:'management system evms that has been determined by the cognizant federalagency cfato becompliant with theguidelinesin electronic industries alliance standard748 eia748', 41298:'current version at the time of award to managethis contract. if the contractor’s current evmshas notbeendetermined compliantat the time of', 41299:'award, see paragraph b of this clause. the contractor shall submit reports in accordance with the requirements of this contract.', 41300:'b if, at thetime ofaward,the contractor’sevmsystemhas notbeendetermined by thecfa as complying with evms guidelines or the contractor does not have', 41301:'an existing cost/schedule control system that is compliant with the guidelines in eia 748 current version at time of award,', 41302:'the contractor shall 1 apply the current system to the contract; and 2 takenecessary actionsto meetthe milestones inthe contractor’sevms plan', 41303:'approved by the contracting officer. c the government will conduct an integrated baseline review ibr. if a preaward ibr has', 41304:'not been conducted, a post award ibr shall be conducted as early as practicable after contract award. 52.2418 subpart 52.2', 41305:'text of provisions and clauses 52.235 d the contracting officer may requirean ibrat 1 exercise of significant options; or 2', 41306:'incorporation of major modifications. e unless awaiver is granted by the cfa, contractor proposed evms changes require approval of the', 41307:'cfa prior to implementation. the cfa will advise the contractor of the acceptability of such changes within 30 calendar days', 41308:'afterreceipt of the notice of proposedchangesfrom the contractor. if the advance approval requirements are waived bythe cfa,the contractor shall disclose', 41309:'evms changes to the cfa at least 14 calendar days prior to the effectivedate of implementation. f the contractor shall', 41310:'provideaccess to all pertinent records and data requested by the contracting officer or a an authorized representative as necessary to', 41311:'permit government surveillance to ensure that the evms conforms, and continues to conform, with the performance criteria referenced in paragraph', 41312:'a of this clause. g the contractor shall require the subcontractors specified below to comply with the requirements of this', 41313:'clause: [insert list of applicable subcontractors.] end of clause end of clause 52.235[reserved] 52.2419 this page intentionally left blank. 52.2420', 41314:'subpart 52.2 text of provisions and clauses 52.2363 52.236[reserved] 52.2361performanceof work by the contractor. as prescribed in 36.501b, insert the', 41315:'following clause: [complete the clause by inserting the appropriate percentage consistent with the complexity and magnitude of the work and', 41316:'customary or necessary specialty subcontracting see 36.501a.] performance of work by the contractor apr 1984 the contractor shall perform on', 41317:'the site, and with its own organization, work equivalentto at least [insert the appropriate number in words followed by numerals', 41318:'in parentheses] percent of the total amount of work to be performed under the contract. this percentage may be reduced', 41319:'by a supplemental agreement to this contract if, during performing the work, thecontractor requests a reduction and thecontracting officer determines', 41320:'that the reduction wouldbe tothe advantage of the government. end of clause 52.2362 differing site conditions. as prescribed in 36.502,', 41321:'insert the following clause: differing site conditions apr 1984 a thecontractor shall promptly, and before the conditions are disturbed, give', 41322:'a written noticeto the contractingofficer of 1 subsurface or latent physical conditions atthe site which differ materially from those indicated', 41323:'in this contract; or 2 unknownphysical conditionsat the site, of an unusual nature, which differ materially from those ordinarily encountered', 41324:'and generally recognized as inhering in work of the character provided for in the contract. b the contracting officer shall', 41325:'investigate the site conditions promptly after receiving the notice. ifthe conditions do materially so differ and cause anincrease or decrease', 41326:'in thecontractor’s cost of, or the time required for, performing any part of the work under this contract, whether or', 41327:'not changed as a result of the conditions, an equitable adjustment shall be made underthis clause andthe contract modified in', 41328:'writing accordingly. c no request by the contractor for an equitable adjustment to the contract under this clause shall be', 41329:'allowed, unless the contractor has given the written notice required; provided, that the time prescribed in paragraph a of this', 41330:'clause for giving written notice may be extended by the contracting officer. d no request by the contractorforan equitable adjustment', 41331:'to the contract for differing site conditionsshallbe allowed if made after final payment under this contract. end of clause 52.2363site', 41332:'investigation and conditions affecting the work. as prescribed in 36.503, insert the following clause: site investigation and conditions affecting the', 41333:'work apr 1984 a the contractor acknowledges that it has taken steps reasonably necessary to ascertain the nature and location', 41334:'of the work, and that it hasinvestigatedandsatisfied itself as to the general and localconditions whichcan affectthe work or its cost,', 41335:'including but not limited to 1 conditions bearing upon transportation, disposal, handling, and storage of materials; 2 theavailability of labor,', 41336:'water,electric power,androads; 3 uncertainties of weather, river stages, tides, or similar physical conditions at the site; 4 the conformation and', 41337:'conditions of the ground; and 5 the character of equipment and facilities needed preliminary to and during work performance. the', 41338:'contractor also acknowledges that it has satisfied itself as to the character, quality, and quantityof surface and subsurface materials or', 41339:'obstacles to be encounteredinsofaras this information is reasonably ascertainable from an inspection of the site, including all exploratory work done', 41340:'by the government, as well as from the drawings and specifications made a part of this contract. any failure of', 41341:'the contractor to take the actions described 52.2421 52.2364 federal acquisition regulation and acknowledged inthisparagraph willnot relieve thecontractor from responsibility', 41342:'for estimating properly the difficulty and cost of successfully performing the work, or for proceeding to successfully perform the work', 41343:'without additional expense to the government. b the government assumes no responsibility for any conclusions or interpretations made by the', 41344:'contractor based on the information made available by the government. nor does the government assume responsibility for any understanding reached', 41345:'or representation made concerning conditions which canaffect the work by any of its officers oragents beforethe execution of this contract,', 41346:'unless that understanding or representation is expressly stated in this contract. end of clause 52.2364 physical data. as prescribed in', 41347:'36.504, insert the following clause in solicitations and contracts when a fixedprice construction contract is contemplated and physical data e.g.,', 41348:'test borings, hydrographic, weather conditions data will be furnished or made available to offerors. all information to be furnished or', 41349:'madeavailableto offerors before award thatpertains to the performance of the work should be identified in the clause. when paragraphs are', 41350:'not applicable they may be deleted. physical data apr 1984 data and information furnished or referred tobelow is for the', 41351:'contractor’s information. the government shall notbe responsible for any interpretation of or conclusiondrawnfrom the data or information bythe contractor. a', 41352:'the indications of physical conditions on the drawings and in the specifications are the result of site investigations by [insert', 41353:'a description of investigational methods used, such as surveys, auger borings, core borings, test pits, probings, test tunnels]. b weather', 41354:'conditions [insert a summary of weather records and warnings]. c transportation facilities [insert a summary of transportation facilities providing access', 41355:'from the site, including information about their availability and limitations]. d [insert other pertinent information]. end of clause 52.2365material and', 41356:'workmanship. as prescribed in 36.505, insert the following clause: material and workmanship apr 1984 a all equipment, material, and articles', 41357:'incorporated into the work covered by this contract shall be new and of the most suitable grade for the purpose', 41358:'intended, unless otherwise specifically provided in this contract. references in the specificationsto equipment, material, articles, or patented processes by trade', 41359:'name, make, orcatalognumber, shall be regarded as establishing astandardof quality and shall not beconstrued as limitingcompetition. the contractor may,at its', 41360:'option,use anyequipment,material, article, or process that, in thejudgment of thecontracting officer,is equal tothat named in the specifications, unless otherwise specifically', 41361:'provided in this contract. b the contractor shall obtain thecontracting officer’s approval of the machinery and mechanicaland otherequipment to be', 41362:'incorporated into thework. when requesting approval, the contractor shall furnish tothe contracting officerthe name of the manufacturer, the model number,', 41363:'and other information concerning the performance,capacity, nature, and rating of the machinery and mechanical and other equipment. whenrequired by this', 41364:'contract or by the contractingofficer, the contractor shall also obtain the contracting officer’s approvalof the material or articles which the', 41365:'contractorcontemplates incorporating into the work. when requesting approval, the contractor shall provide full information concerning the material or articles. when', 41366:'directed to do so, the contractorshallsubmit samples for approval at thecontractor’s expense, with all shipping charges prepaid. machinery, equipment, material,', 41367:'and articles thatdo not have therequired approval shall be installed or used at the risk of subsequent rejection. 52.2422 subpart', 41368:'52.2 text of provisions and clauses 52.2369 c allworkunder this contract shall be performed in a skillful and workmanlike manner.', 41369:'the contracting officer may require,in writing, that the contractor remove from the work any employeethe contracting officerdeems incompetent, careless, or', 41370:'otherwise objectionable. end of clause 52.2366superintendence by the contractor. as prescribed in 36.506, insert the following clause: superintendence by the', 41371:'contractor apr 1984 at all times during performance of this contract and until the work is completed and accepted, the', 41372:'contractor shall directly superintend the work or assign and have on the worksite a competent superintendent who is satisfactory to', 41373:'the contracting officer and has authority to act for the contractor. end of clause 52.2367 permits and responsibilities. as prescribed', 41374:'in 36.507, insert the following clause: permits and responsibilities nov 1991 the contractor shall, without additional expense to the government,', 41375:'be responsible for obtaining any necessary licenses and permits, and for complying with any federal, state, and municipal laws, codes,', 41376:'and regulations applicable to the performance of the work. the contractor shall also be responsible for all damages to persons', 41377:'or property that occur as a result of thecontractor’s fault or negligence. the contractor shall also be responsible for all', 41378:'materials deliveredandwork performed until completion and acceptance of the entire work, except for any completed unit of work which may', 41379:'have been accepted under the contract. end of clause 52.2368 other contracts. as prescribed in 36.508, insert the following clause:', 41380:'other contracts apr 1984 the government may undertake or award other contracts for additional work at or near the site', 41381:'of the work under this contract. the contractor shall fully cooperate with the other contractors and with government employees and', 41382:'shall carefully adapt scheduling and performing the work under this contract toaccommodatethe additional work,heeding any direction that maybe provided by', 41383:'thecontracting officer. the contractor shall not commit or permit any act that will interfere with the performance of work by', 41384:'any other contractor or by government employees. end of clause 52.2369protection of existing vegetation, structures, equipment, utilities, and improvements. as', 41385:'prescribed in 36.509, insert the following clause: protection of existing vegetation, structures, equipment, utilities, and improvements apr 1984 a the', 41386:'contractor shall preserve and protect all structures, equipment, and vegetation such as trees, shrubs, and grass on or adjacent to', 41387:'the work site, which are not to be removed and which do not unreasonably interfere with the work required under', 41388:'this contract. the contractor shall only remove trees when specifically authorized to do so, and shall avoid damaging 52.2423 52.23610', 41389:'federal acquisition regulation vegetation that will remain in place. if any limbs or branches of trees are broken during contract', 41390:'performance, or by the careless operation of equipment, or by workmen, the contractor shall trim those limbs or branches with', 41391:'a clean cut and paint thecut with a treepruning compoundas directedby the contracting officer. b the contractor shall protect from', 41392:'damage all existing improvements and utilities 1at or near the work site, and 2on adjacent property of a third party,the', 41393:'locations of which are madeknown to or should be known by the contractor. the contractor shall repair any damageto those', 41394:'facilities, including those that are the property of a third party, resulting from failure to comply with the requirements of', 41395:'this contract or failure to exercise reasonable care in performing the work. if the contractor fails or refuses torepair the', 41396:'damagepromptly, the contractingofficer may have the necessary work performed and charge the cost to the contractor. end of clause 52.23610', 41397:'operations and storage areas. as prescribed in 36.510, insert the following clause: operations and storage areas apr 1984 a the', 41398:'contractor shall confine all operations including storage of materials on government premises to areas authorized orapproved by the contracting officer.', 41399:'the contractor shall hold and savethe government, its officers and agents, freeand harmless from liability of any nature occasionedby the', 41400:'contractor’s performance. b temporary buildings e.g., storage sheds,shops, offices and utilities may be erected by the contractor only with the', 41401:'approval ofthe contracting officerandshallbe built with labor and materials furnished bythe contractor without expense to the government. the temporary buildings', 41402:'and utilities shall remain the property of the contractor and shall be removed by thecontractor at its expense upon completionof', 41403:'the work. with thewritten consent ofthe contracting officer, thebuildings and utilities may be abandoned and need not be removed. c', 41404:'thecontractor shall, under regulationsprescribed by the contractingofficer, useonlyestablished roadways, or use temporary roadways constructed by the contractor when andas authorized', 41405:'by thecontracting officer. when materials are transported in prosecuting the work, vehicles shall not be loaded beyond the loading capacity', 41406:'recommended by the manufacturer of the vehicle or prescribed by any federal, state, or local law or regulation. when it', 41407:'is necessary to cross curbs or sidewalks, the contractor shall protect them from damage. the contractor shall repair or pay', 41408:'for the repair of any damaged curbs, sidewalks, or roads. end of clause 52.23611 use and possession prior to completion.', 41409:'as prescribed in 36.511 , insert the following clause: use and possession prior to completion apr 1984 a the government', 41410:'shall have the right to take possession of or use any completed or partially completed part of the work. before', 41411:'taking possession of or using any work, the contractingofficer shall furnish thecontractor a list of items of work remaining to', 41412:'be performed or corrected on those portions of the work that the government intends to take possession of or use.', 41413:'however,failureof the contracting officer to list any item of work shall not relieve the contractor of responsibility for complying with', 41414:'the terms of the contract. the government’spossession or use shall not be deemed anacceptance of any work under the contract.', 41415:'b while the government has such possession or use, the contractor shall be relieved of the responsibility for the loss', 41416:'of ordamage to the work resultingfrom the government’spossession or use,notwithstanding theterms ofthe clause in this contract entitled permits and responsibilities.', 41417:'if prior possession or use by the government delays the progress of the work or causes additional expense to the', 41418:'contractor,an equitable adjustment shall be made in the contract price or the time of completion, and the contract shall be', 41419:'modifiedin writing accordingly. end of clause 52.2424 subpart 52.2 text of provisions and clauses 52.23613 52.23612 cleaning up. as prescribed', 41420:'in 36.512, insert the following clause: cleaning up apr 1984 the contractor shall at all times keep the work area,', 41421:'including storage areas, free from accumulations of waste materials. before completing the work, the contractorshallremove from the work and premises', 41422:'any rubbish, tools, scaffolding, equipment, and materials that are not the property of the government. upon completing the work, the', 41423:'contractor shall leave thework area ina clean,neat, and orderly conditionsatisfactory tothe contracting officer. end of clause 52.23613 accident prevention. as', 41424:'prescribed in 36.513, insert the following clause: accident prevention nov 1991 a the contractor shall provide and maintain work environments', 41425:'and procedures which will 1 safeguardthe public and government personnel,property, materials,supplies, and equipmentexposed to contractor operations and activities; 2 avoid', 41426:'interruptions ofgovernment operations and delays inproject completion dates; and 3 control costs in the performance of this contract. b for', 41427:'these purposes on contracts for construction or dismantling, demolition, or removal of improvements, the contractor shall 1 provide appropriate safety', 41428:'barricades, signs, and signal lights; 2 comply with the standards issued by the secretary of labor at 29 cfr part', 41429:'1926 and 29 cfr part 1910; and 3 ensure that any additionalmeasures thecontracting officer determines to be reasonablynecessary for thepurposes', 41430:'are taken. c if this contract is for construction or dismantling, demolition or removal of improvements with any department of', 41431:'defense agency or component, the contractor shall comply with all pertinent provisions of the latest version of u.s. army corps', 41432:'of engineers safety andhealth requirements manual, em 38511,in effect on thedate of the solicitation. d whenever thecontracting officer becomes awareof', 41433:'any noncompliance with these requirements or any condition which poses a serious or imminent danger to the health or safety', 41434:'of the public or government personnel, the contracting officer shall notifythe contractor orally, with written confirmation, andrequest immediate initiation of', 41435:'corrective action. this notice, when delivered to the contractoror the contractor’s representative at the work site, shall be deemed sufficient', 41436:'notice of the noncompliance and that corrective action is required. after receiving the notice, the contractor shall immediately take corrective', 41437:'action. if the contractor fails or refuses to promptly take corrective action, the contracting officer may issue an order stopping', 41438:'all or part of the work until satisfactory corrective action has been taken. the contractor shall not be entitled to', 41439:'any equitable adjustment of the contract price or extension of the performance schedule on any stop work order issued under', 41440:'this clause. e the contractor shall insert this clause, including this paragraph e, with appropriate changes in the designation of', 41441:'the parties, in subcontracts. end of clause alternate i nov 1991. if the contract will involve a work of a', 41442:'long duration or hazardous nature, or b performance on a government facility that on the advice of technical representatives involves', 41443:'hazardous materials or operations that might endanger thesafety of the public and/or governmentpersonnel or property, add the following paragraph f', 41444:'tothe basic clause: f before commencing the work, the contractor shall 1 submit a written proposed plan for implementing this', 41445:'clause. the plan shall include an analysis of the significant hazards to life, limb, and property inherent in contract work', 41446:'performance and a plan for controlling these hazards; and 52.2425 52.23614 federal acquisition regulation 2 meet with representatives of thecontracting', 41447:'officer todiscuss and developa mutual understanding relative to administration of the overall safety program. 52.23614 availability and use of utility', 41448:'services. as prescribed in 36.514, insert the following clause in solicitations and contracts when a fixedprice construction contract or a', 41449:'fixedprice dismantling, demolition, or removal of improvements contract is contemplated, the contract is to be performed on government sites when', 41450:'thecontracting officer decides athat the existing utility system is adequate for the needsof both the government and the contractor,and b', 41451:'furnishing it is in the government’s interest. when this clause is used, the contracting officer shall list the available utilities', 41452:'in the contract. availability and use of utility services apr 1984 a the government shall make all reasonably required amounts', 41453:'of utilities available to the contractor from existing outlets and supplies, as specified in the contract. unless otherwise provided in', 41454:'the contract, the amount of each utility service consumedshallbe charged to or paid for by thecontractor at prevailingrates charged to', 41455:'the government or, where the utility is produced by the government, atreasonable rates determinedby the contracting officer. the contractor shall', 41456:'carefully conserve any utilities furnished without charge. b the contractor, atits expense and ina workmanlikemanner satisfactoryto thecontracting officer,shallinstall and maintain', 41457:'all necessary temporary connections and distribution lines, and all meters required to measure the amount of each utility used for', 41458:'the purpose ofdeterminingcharges. before final acceptance ofthe work by the government, the contractor shall remove all the temporary connections, distribution', 41459:'lines, meters, and associated paraphernalia. end of clause 52.23615 schedules for construction contracts. as prescribed in 36.515, insert the following', 41460:'clause: schedules for construction contracts apr 1984 a the contractor shall, within five days after the work commences on the', 41461:'contract or another period of time determined by the contractingofficer, prepare and submit to the contracting officer for approvalthree copies', 41462:'of a practicable schedule showing the order in which the contractor proposes to perform the work, and the dates on', 41463:'which the contractor contemplates starting and completing the several salient features of the work including acquiring materials, plant, and equipment.', 41464:'the schedule shall be in the form of a progress chart of suitable scale to indicate appropriately the percentage of', 41465:'work scheduled for completion by any given date during the period. if the contractor fails to submit a schedule within', 41466:'the time prescribed, the contracting officermay withhold approval of progress payments untilthe contractor submits the requiredschedule. b the contractor shall', 41467:'enter the actual progress onthe chart as directed by the contracting officer, and upon doing so shall immediately deliver three', 41468:'copies ofthe annotatedscheduleto the contractingofficer. if,in the opinion of the contracting officer, thecontractor fallsbehind theapproved schedule, the contractorshalltake steps necessary', 41469:'to improve itsprogress, including those that may berequired by the contracting officer, without additional cost to the government. in this', 41470:'circumstance, the contracting officer may requirethe contractor toincrease the number of shifts, overtime operations, days of work, and/or the amount', 41471:'of construction plant, and to submit for approval any supplementary schedule or schedules in chart formas the contracting officer deems', 41472:'necessary to demonstrate how the approvedrate of progress willbe regained. c failure of the contractorto comply withthe requirements of the', 41473:'contracting officer under this clause shall be grounds for a determination by thecontracting officer that the contractor is notprosecuting the', 41474:'workwith sufficient diligence to ensure completionwithin the time specifiedin the contract. upon making this determination, the contracting officer may terminate', 41475:'thecontractor’s right to proceed with the work, orany separable part of it, in accordance withthe default terms of this contract.', 41476:'end of clause 52.2426 subpart 52.2 text of provisions and clauses 52.23618 52.23616 quantity surveys. as prescribed in 36.516,thecontractingofficermayinsertthefollowingclauseinsolicitationsandcontractswhen a', 41477:'fixedprice construction contract providing for unit pricing of items and for payment based on quantity surveys is contemplated: quantity surveys', 41478:'apr 1984 a quantity surveys shall be conducted, and the data derived from these surveys shall be used in computing', 41479:'the quantities of work performed and the actual construction completed and in place. b the government shall conduct the original', 41480:'and final surveys and make the computations based on them. the contractor shall conduct the surveys for any periods for', 41481:'which progress payments are requested and shall make the computations based on these surveys. all surveys conducted by the contractor', 41482:'shall be conducted under the direction of a representative of the contracting officer, unless the contracting officer waives thisrequirementin a', 41483:'specific instance. c promptly upon completing a survey, the contractorshallfurnish the originals of all fieldnotes and all other records relating', 41484:'to the survey or to the layout ofthe work to the contracting officer, whoshalluse them as necessary to determine the', 41485:'amount of progress payments. the contractor shall retain copiesof all such materialfurnished tothe contracting officer. end of clause alternate i', 41486:'apr 1984. if it is determined at a level above thatof the contracting officer that it is impracticable for government', 41487:'personnel to perform the original and final surveys, and the government wishes the contractor to perform these surveys, substitute the', 41488:'following paragraph b for paragraph b of the basic clause: b the contractor shall conduct the original and final surveys', 41489:'and surveys for any periods for which progress payments arerequested. all these surveysshallbe conducted under the directionof arepresentative of the', 41490:'contracting officer, unless thecontracting officer waives this requirement in aspecific instance. the government shall make such computations as are necessary', 41491:'to determine the quantities of work performed or finally in place. the contractor shall make the computations based on the', 41492:'surveys for any periods for which progress payments are requested. 52.23617 layoutof work. as prescribed in 36.517, insert the following', 41493:'clause in solicitations and contracts when a fixedprice construction contract is contemplated and use of this clause is appropriate due', 41494:'to a need for accurate work layout and for siting verification during work performance: layout of work apr 1984 the', 41495:'contractor shall lay out its work from government established base lines and bench marks indicated on the drawings, and shall', 41496:'be responsible for all measurements in connection with the layout. the contractor shall furnish, at its own expense, all stakes,', 41497:'templates, platforms, equipment, tools, materials, and labor required to lay out any part of the work. the contractor shall be', 41498:'responsible for executing the work to the lines and grades that may be established or indicated by thecontracting officer. thecontractor', 41499:'shall also be responsible for maintaining and preserving allstakes and other marks established by the contracting officer until authorizedto removethem.', 41500:'if suchmarks are destroyed by thecontractor or through itsnegligence before their removal isauthorized,the contracting officermay replace them and deduct the', 41501:'expense of the replacement from any amounts due or to become due to the contractor. end of clause 52.23618 work', 41502:'oversight in costreimbursement construction contracts. as prescribed in 36.518, insert the following clause in solicitations and contracts when costreimbursement construction', 41503:'contracts are contemplated: work oversight in costreimbursement construction contracts apr 1984 52.2427 52.23619 federal acquisition regulation the extent and character', 41504:'of the work to be done by the contractor shall be subject to the general supervision, direction, control,and approval of', 41505:'thecontracting officer. end of clause 52.23619 organization and direction of the work. as prescribed in 36.519, insert the following clause', 41506:'in solicitations and contracts when a costreimbursement construction contract is contemplated: organization and direction of the work apr 1984 a', 41507:'when this contract is executed, the contractor shall submitto thecontracting officer a chart showing the general executive and administrative organization,', 41508:'thepersonnel to be employed in connection with the work under this contract,and their respective duties. the contractor shall keep the', 41509:'data furnished current by supplementing it as additional information becomes available. b work performance under this contract shall be under', 41510:'the fulltime residentdirection of1the contractor, if the contractor is an individual; 2 one or more principal partners, if the contractor', 41511:'is a partnership; or 3 one or more senior officers,if contractor is a corporation,association, or similar legal entity. however, if', 41512:'the contracting officer approves, the contractor may be represented in the direction of the work by a specific person or', 41513:'persons holding positions other than those identified in this paragraph. end of clause 52.23620 [reserved] 52.23621 specifications and drawings for', 41514:'construction. as prescribed in 36.521, insert the following clause: specifications and drawings for construction feb 1997 a the contractor shall', 41515:'keep on the work site a copy of the drawings and specifications and shall at all times give the contracting', 41516:'officeraccess thereto. anything mentioned in thespecifications and not shown on the drawings, orshown on thedrawings and not mentioned in the', 41517:'specifications, shall be of like effectas if shown or mentioned in both. in case of difference between drawings and specifications,', 41518:'the specifications shall govern. incaseof discrepancy in the figures, in the drawings, or in the specifications, the mattershallbe promptly submitted', 41519:'to the contracting officer, who shall promptly make a determination in writing. any adjustment by the contractor without such a', 41520:'determination shall be at its own risk and expense. the contracting officer shall furnishfrom time totime such detailed drawings and', 41521:'other information as considered necessary, unless otherwiseprovided. b wherever in the specifications or upon the drawings the words directed, required,', 41522:'ordered, designated, prescribed, or words oflike import are used, it shall be understood that the direction, requirement, order, designation, or', 41523:'prescription, of the contracting officer is intended and similarly thewords approved, acceptable, satisfactory, or words of like importshallmean approved by,', 41524:'or acceptable to, or satisfactory to the contracting officer, unless otherwise expressly stated. c where as shown, as indicated, as', 41525:'detailed, or words of similar import are used, it shall be understood that the reference is made to the drawings', 41526:'accompanying this contract unless stated otherwise. the word provided as used herein shall be understood to mean provide complete in', 41527:'place, that is furnished and installed. d shop drawings means drawings, submitted to the government by the contractor, subcontractor, or', 41528:'any lowertier subcontractor pursuant to a construction contract, showing in detail 1 the proposed fabrication and assembly of structural elements,', 41529:'and 2 the installation i.e., fit, and attachment details of materials or equipment. it includes drawings, diagrams, layouts, schematics, descriptive', 41530:'literature, illustrations, schedules, performance and test data, and similar materials furnished by the contractor to explain in detail specific portions', 41531:'of the work required by the contract. the government may duplicate, use, and disclose in any manner and for any', 41532:'purpose shop drawings delivered under this contract. 52.2428 subpart 52.2 text of provisions and clauses 52.23622 e if this contract', 41533:'requires shop drawings, the contractor shall coordinate all such drawings, and review them for accuracy, completeness, and compliance withcontract requirements', 41534:'and shall indicate its approvalthereon as evidence of suchcoordination and review. shop drawingssubmitted to the contractingofficer withoutevidence of the contractor’s', 41535:'approval may be returned for resubmission. thecontracting officer will indicate an approval or disapprovalof the shop drawings and if not', 41536:'approved as submitted shall indicatethe government’s reasons therefor. any work done beforesuch approval shall be atthe contractor’srisk. approvalby the contracting', 41537:'officer shall not relieve thecontractor from responsibility for any errors or omissions in such drawings, nor from responsibility for complying', 41538:'with the requirements of this contract, except with respect to variations described and approved in accordance with f of this', 41539:'clause. f if shop drawings show variations from the contract requirements, the contractor shall describe such variations in writing, separate', 41540:'from the drawings, at the time of submission. if thecontracting officer approvesanysuch variation,the contracting officershallissue an appropriate contract modification, except', 41541:'that,if the variation is minor or does not involve a change in price or in time of performance, a modification', 41542:'need not be issued. g the contractor shall submit to the contractingofficer for approval four copiesunless otherwise indicated of allshop', 41543:'drawings as called for under the various headings of these specifications. three sets unless otherwise indicated of all shop drawings,', 41544:'will be retainedby the contracting officer and one set will be returned to the contractor. end of clause alternate i', 41545:'apr 1984. when record shop drawings are required and reproducible shop drawings are needed, add the following sentences to paragraph', 41546:'g of the basic clause: upon completing the work under this contract, the contractor shall furnish a complete set of', 41547:'all shop drawings as finally approved. these drawings shall show all changes and revisions made up to the time the', 41548:'equipment is completed and accepted. alternate ii apr 1984. when record shop drawings are required and reproducible shop drawings are', 41549:'not needed, the following sentences shall be added to paragraph g of the basic clause: upon completing the work under', 41550:'this contract, the contractor shall furnish [contracting officer complete by inserting desired amount] sets of prints of all shop drawings', 41551:'as finally approved. these drawings shall show changes and revisions made up to the time the equipment is completed and', 41552:'accepted. 52.23622 designwithin fundinglimitations. as prescribed in 36.6091c, insert the following clause: design within funding limitations apr 1984 a the', 41553:'contractor shall accomplish the design services required under this contract so as to permit the award of a contract, using', 41554:'standard federal acquisition regulation procedures for the construction of the facilities designed at a price that does not exceed the', 41555:'estimated construction contract price as set forth in paragraph c of this clause. when bids or proposals for the construction', 41556:'contract are received that exceed the estimated price, the contractor shall perform such redesign and other services as are necessary', 41557:'to permit contract award within the funding limitation. these additional services shall be performed at no increasein theprice of this', 41558:'contract. however, the contractor shall not be requiredto perform such additional services at no cost to the government if the', 41559:'unfavorable bids or proposals are the result of conditions beyond its reasonable control. b the contractor will promptlyadvise thecontracting officer', 41560:'if it finds that the project being designed will exceed or is likely to exceed the funding limitations and it', 41561:'is unable to design a usable facility within these limitations. upon receipt ofsuch information, the contracting officer will review the', 41562:'contractor’s revisedestimateof construction cost. the government may, ifitdeterminesthat theestimated construction contractprice set forth in this contract isso low that award', 41563:'of a construction contract not in excess of such estimate is improbable, authorize a change in scope or materials as', 41564:'required to reduce the estimated construction cost to an amount within the estimated construction contract price set forth in paragraph', 41565:'c of this clause, or the government may adjust such estimated construction contract price. when bids or proposals are not', 41566:'solicited or are unreasonably delayed, the government shall prepare an estimate of constructing the design submitted and such estimate shall', 41567:'be used in lieu of bids or proposals to determine compliance with the funding limitation. 52.2429 52.23623 federal acquisition regulation', 41568:'c the estimated construction contract price for the project described in this contract is $. end of clause 52.23623 responsibility', 41569:'ofthe architectengineer contractor. as prescribed in 36.6092b, insert the following clause: responsibility of the architectengineer contractor apr 1984 a thecontractor', 41570:'shall be responsible for the professional quality, technical accuracy, and the coordination of all designs, drawings, specifications, and other services', 41571:'furnished by the contractor under this contract. the contractor shall, without additional compensation, correct or revise any errors or deficiencies', 41572:'in its designs, drawings, specifications, and other services. b neitherthe government’s review,approval or acceptanceof, norpayment for,the services required under this', 41573:'contract shall be construed to operate as a waiver of any rights under this contract or of any cause of', 41574:'action arising out of the performance of this contract, and the contractor shall be and remain liable to the government', 41575:'in accordance with applicable law for all damages to the government causedby the contractor’s negligent performance of any of the', 41576:'services furnished under this contract. c the rights and remedies of the government provided for under this contract are in', 41577:'addition to any other rights and remedies provided by law. d if the contractor is comprised of more than one', 41578:'legal entity,each such entityshallbe jointly and severallyliable hereunder. end of clause 52.23624 work oversight in architectengineer contracts. as prescribed in', 41579:'36.6093, insert the following clause: work oversight in architectengineer contracts apr 1984 the extent and character of the work to', 41580:'be done by the contractor shall be subject to the general oversight, supervision, direction,control, and approval ofthe contracting officer. end', 41581:'of clause 52.23625 requirements for registration of designers. as prescribed in 36.6094, insert the following clause: requirements for registration of', 41582:'designers june 2003 architects or engineers registered to practice in the particular professional field involved in a state, the district', 41583:'of columbia, or an outlying area of the united states shall prepare or review and approve the design of architectural,', 41584:'structural, mechanical, electrical, civil, or other engineering features of the work. end of clause 52.23626 preconstruction conference. as prescribed in', 41585:'36.522, insert the following clause: preconstruction conferencefeb 1995 52.2430 subpart 52.2 text of provisions and clauses 52.23628 if the contracting', 41586:'officer decides to conduct apreconstruction conference, thesuccessfulofferor will be notifiedand will berequired to attend. thecontracting officer’s notification willinclude specific details', 41587:'regarding the date,time, and location of the conference, any need for attendance by subcontractors, and information regarding the items to', 41588:'be discussed. end of clause 52.23627 site visit construction. as prescribed in 36.523, insert a provision substantially the same as', 41589:'the following: site visit construction feb 1995 a the clauses at 52.2362, differing site conditions, and 52.2363, site investigations and', 41590:'conditions affecting the work, will be included inanycontract awarded as a result of this solicitation. accordingly, offerors orquotersare urged and', 41591:'expected to inspect the site where the work will be performed. b site visits may be arranged during normal duty', 41592:'hours by contacting: name: address: telephone: end of provision alternate i feb 1995. if an organized site visit will beconducted,', 41593:'substitute a paragraph substantially the same as the following for paragraph b of the basic provision: b an organized site', 41594:'visit has been scheduled for [insert date and time] c participants will meet at [insert location] 52.23628 preparationof proposalsconstruction. as', 41595:'prescribed in 36.520, insert the following provision: preparation of proposalsconstruction oct 1997 a proposals must be 1 submitted on the', 41596:'forms furnished by the government or on copies of those forms; and 2 manually signed. the person signing a proposal', 41597:'must initial each erasure or change appearing on any proposal form. b the proposal form may requireofferorsto submitproposed prices for', 41598:'oneor more items on various bases, including 1 lump sum price; 2 alternate prices; 3 units of construction; or 4', 41599:'any combination of paragraphs b1 through b3 of this provision. c if the solicitation requires submission of a proposal on', 41600:'all items, failure to do so may result in the proposal being rejected without further consideration. if a proposal on', 41601:'all items is notrequired,offerorsshouldinsert the words no proposal in the space provided for any item on which no price is', 41602:'submitted. d alternate proposals will not be considered unless this solicitation authorizes their submission. end of provision 52.2431 this page', 41603:'intentionally left blank. 52.2432 subpart 52.2 text of provisions and clauses 52.2373 52.237[reserved] 52.2371site visit. as prescribed in 37.110a, insert', 41604:'the following provision: site visit apr 1984 offerorsor quoters are urged and expected toinspect thesite where services areto beperformed and', 41605:'to satisfy themselves regarding all general and local conditions thatmay affect the cost of contract performance, to the extentthat theinformation', 41606:'is reasonably obtainable. in no event shall failure to inspect the site constitute grounds for a claim after contract award.', 41607:'end of provision 52.2372protection of government buildings, equipment,and vegetation. as prescribed in 37.110b, insert the following clause in solicitations and', 41608:'contracts for services to be performed on government installations, unless a construction contract is contemplated: protection of government buildings, equipment,', 41609:'and vegetation apr 1984 the contractor shall use reasonable care to avoid damaging existing buildings, equipment, and vegetation on the', 41610:'government installation. if the contractor’s failure touse reasonable care causesdamage to any of this property, the contractor shall replace or', 41611:'repair thedamage at no expense to the government asthe contracting officerdirects. if the contractor fails or refuses to make such', 41612:'repair or replacement, the contractor shall be liable for the cost, which may be deducted from the contract price. end', 41613:'of clause 52.2373 continuity of services. as prescribed in 37.110c, insert the following clause: continuity of services jan 1991 a', 41614:'the contractor recognizes that the services under this contract are vital to the government and must be continued without interruption', 41615:'and that, upon contract expiration, a successor, either the government oranother contractor, may continue them. the contractor agrees to 1', 41616:'furnish phasein training; and 2 exercise its best efforts andcooperation to effectan orderly and efficient transition to asuccessor. b the', 41617:'contractor shall, uponthe contracting officer’s written notice, 1 furnishphasein, phaseout services for up to 90 days after this contract expires', 41618:'and 2 negotiate in good faith a plan with a successor to determine the nature and extent of phasein, phaseout', 41619:'services required. the plan shall specify a training program and a date for transferring responsibilities for each divisionof work described', 41620:'in the plan, and shall be subject to the contracting officer’s approval. the contractor shall provide sufficient experienced personnelduring the', 41621:'phasein, phaseout period to ensure thatthe services called for bythis contract are maintained at the requiredlevel of proficiency. c the', 41622:'contractor shall allow as many personnel as practicable to remain on the job to help the successor maintain the continuity', 41623:'and consistency of the services required by this contract. the contractor also shall disclose necessary personnel records and allow the', 41624:'successor to conduct onsite interviews with these employees. if selected employees are agreeable to the change, the contractor shall release', 41625:'them at a mutually agreeable date and negotiate transfer of their earned fringe benefits to thesuccessor. d the contractor shall', 41626:'be reimbursed for all reasonable phasein, phaseout costs i.e., costs incurred within the agreed period after contract expiration that result', 41627:'from phasein, phaseout operations and a fee profit not to exceed a pro rata portion of the fee profit under', 41628:'this contract. end of clause 52.2433 52.2374 federal acquisition regulation 52.2374payment by government tocontractor. as prescribed in 37.304a, insert the', 41629:'following clause in solicitations and contracts solely for dismantling, demolition, or removal of improvements whenever the contractingofficer determines that the', 41630:'government shall make paymentto the contractor in addition to any title to property that the contractor may receive under the', 41631:'contract: payment by government to contractor apr 1984 a in [insert full if alternate i is used; otherwise insert partial]', 41632:'consideration of the performance of the work called for in the schedule, the government will pay to the contractor [fill', 41633:'in amount]. b the government shall make progress payments monthly as the work proceeds, or at more frequent intervals as', 41634:'determined bythe contracting officer, on estimatesapproved bythe contracting officer. except as provided in paragraph c ofthis clause, in making progresspayments', 41635:'the contracting officer shall retain 10 percentof the estimated paymentuntil final completion and acceptanceof the contract work. however,if the contractingofficer', 41636:'finds that satisfactory progress was achieved during any period for which a progress payment is to be made,the contracting officermay', 41637:'authorize such payment in full, without retaining a percentage. also, on completion and acceptance of each unit or division for', 41638:'which the price is stated separately, the contracting officer may authorize full payment for that unit or divisionwithout retaininga percentage.', 41639:'c when theworkis substantiallycompleted, the contracting officer shall retain anamount consideredadequate for the protection of the government and, at thecontracting', 41640:'officer’s discretion,may releaseall or a portion of any excess amount. d in further consideration of performance, the contractor shall receive', 41641:'title to all property to be dismantled or demolished that is not specifically designated as being retained by the government.', 41642:'the title shall vest in the contractor immediately upon the government’sissuing the notice of award, orif a performancebond is to', 41643:'be furnished after award, uponthe government’s issuanceof anotice to proceed withthe work. the government shall notbe responsible for the condition', 41644:'of,or any loss ordamage to,the property. if the contractor does not wish to remove from thesite any of the property', 41645:'acquired, the contracting officer may, uponwritten request, grant thecontractor permission to leavethe property on the premises. as a condition to', 41646:'the granting of this permission, the contractor agrees to waive any right, title, claim, or interest in andto theproperty. e', 41647:'upon completion and acceptance of allwork and receipt of a properly executedvoucher, thegovernment shall make final payment of the amount', 41648:'due the contractor under this contract. if requested, the contractor shall release all claims against the government arising under this', 41649:'contract, other than any claims the contractor specifically excepts, in stated amounts, from operation of this release. end of clause', 41650:'alternate i apr 1984. if the contracting officerdeterminesthat the government shall retain all material resulting from the dismantling or demolition', 41651:'work, delete paragraph d from the basic clause and renumber the remaining paragraphs. 52.2375 payment by contractor to government. as', 41652:'prescribed in 37.304b, insert the following clause in solicitations and contracts for dismantling, demolition, or removal of improvements whenever the', 41653:'contractor is to receive title to dismantled or demolished property and a net amount of compensationis due tothe government, except', 41654:'if the contracting officerdeterminesthat it would be advantageous to the government for the contractor to pay in increments and the', 41655:'government to transfer title to the contractor for increments of property only upon receipt of those payments: payment by contractor', 41656:'to government apr 1984 a the contractor shall receive title to all property to be dismantled, demolished, or removed under', 41657:'this contract and not specifically designated in the schedule as being retained by the government. the title shall vest in', 41658:'the contractor immediately upon the government’sissuing the notice of award, orif a performancebond is to be furnished,upon the government’s issuinga', 41659:'noticeto proceed with the work. the government shall not be responsible for the conditionof, or any lossor damage to, the', 41660:'property. b the contractor shall promptly remove fromthe site all property acquired by the contractor. the government shall not permit', 41661:'storage of property on the site beyond the completion date. if the contractor does not wish to remove from the', 41662:'site anyof the property acquired,the contracting officermay, upon written request, grant the contractorpermission to leave 52.2434 subpart 52.2 text of', 41663:'provisions and clauses 52.2377 the property on the premises. as a condition of the granting of the permission, the contractor', 41664:'agrees to waive any right, title, claim,or interestin and to the property. c the contractor shall perform the work called', 41665:'for under this contract and within days of receipt of notice of award, unless otherwise provided in the schedule and', 41666:'before proceeding with the work, shall pay [fill in amount]. checks shall be madepayable to the office designatedin thecontract andshallbe', 41667:'forwarded tothe contracting officer. end of clause 52.2376incrementalpayment by contractor togovernment. as prescribed in 37.304c, insert the following clause in', 41668:'solicitations and contracts for dismantling, demolition, or removal of improvements a if the contractor is to receive title to dismantled', 41669:'or demolished property and a net amount of compensation is due the government; andbif the contractingofficer determines that it would', 41670:'be advantageous to the government for the contractor to pay in increments, and for the government to transfer title to', 41671:'the contractor for increments of property, only upon receipt of those payment: incremental payment by contractor to government apr 1984', 41672:'a the contractor shall perform the work called for under this contract and within days of receipt of notice of', 41673:'award, unless otherwise provided in the schedule, and before proceeding with the work, shall pay [fill in amount]. thereafter, the', 41674:'contractor shall make payment to the government inthe amount and frequencyspecified in the schedule. checks shall be madepayable to the', 41675:'office designatedin thecontract andshallbe forwarded tothe contracting officer. b upon thegovernment’s receipt of each incrementof payment, thecontractor shall receive titleto', 41676:'suchpropertyas thecontracting officer determines to be fair andreasonable for that increment of payment. upon receipt of the contractor’s final payment,', 41677:'all title that has not passed to the contractor shall vest in the contractor,unlessspecifically designated in the schedule as being', 41678:'retained by the government. the government shall not be responsible for the condition of, or any loss or damage to,', 41679:'the property. c thecontractor shall promptlyremove from the site allpropertyacquired by the contractor. the government will not permit storage of', 41680:'property on the site beyond the completion date. if the contractor does not wish to remove from the site any', 41681:'of the property acquired, the contractingofficer may, upon written request, grant the contractor permissionto leave the property on the premises.', 41682:'as a condition of the granting of this permission, the contractor agrees to waive any right, title, claim,or interestin and', 41683:'to the property. end of clause 52.2377 indemnification and medical liability insurance. as prescribed in 37.403, insert the following clause:', 41684:'indemnification and medical liability insurance jan 1997 a it is expressly agreed and understood that this is a nonpersonal services', 41685:'contract, as defined in federal acquisition regulation far 37.101, under which the professional services rendered by the contractor are rendered', 41686:'in its capacity as anindependent contractor. the government may evaluate the quality of professional and administrative services provided, but retains', 41687:'no control over professionalaspects of the services rendered, includingby example, the contractor’s professional medical judgment, diagnosis, or specific medical treatments.', 41688:'the contractor shall be solely liable for and expressly agrees to indemnify the government with respect to any liability producing', 41689:'acts or omissions by it or by its employees or agents. the contractor shall maintain during the term of this', 41690:'contract liability insurance issued by a responsible insurance carrier of not less than the following amounts per specialty per occurrence:', 41691:'. b an apparently successful offeror, uponrequest by the contracting officer, shall furnish prior tocontract award evidence of its insurability', 41692:'concerning the medical liability insurance required by paragraph a of this clause. c liability insurance may be on either an', 41693:'occurrences basis or on a claimsmade basis. if the policy is on a claimsmade basis, an extended reporting endorsement tail', 41694:'for a period of not less than 3 years after the end of the contract term must also be provided.', 41695:'52.2435 52.2378 federal acquisition regulation d evidence of insurance documenting the required coverage for each health care provider who will', 41696:'perform under this contract shall be provided to the contracting officer prior to the commencementof services under this contract. if', 41697:'the insurance is on a claimsmade basis and evidence of an extended reporting endorsement is not provided prior to the', 41698:'commencement of services, evidence of such endorsement shall be provided to the contracting officer prior to the expiration of this', 41699:'contract. final payment under this contract shall be withheld until evidence of the extended reporting endorsement is provided tothe contracting', 41700:'officer. e thepolicies evidencing requiredinsurance shall also contain anendorsement to the effectthat any cancellation or material change adversely affecting the', 41701:'government’s interest shall not beeffective until 30 days after the insurer or the contractor giveswritten notice to the contracting officer.', 41702:'if, duringthe performanceperiod of the contract the contractor changes insurance providers, the contractor must provide evidence that the government will', 41703:'be indemnified to the limits specified in paragraph a of this clause, for the entireperiod of the contract,either under the', 41704:'new policy, or a combination of old and new policies. f the contractor shall insert the substance of this clause,', 41705:'including this paragraph f, in all subcontracts under this contract for health care services and shall require such subcontractors to', 41706:'provide evidence of and maintain insurance in accordance with paragraph a of this clause. at least 5 days before the', 41707:'commencement of work byanysubcontractor, the contractor shall furnish to the contracting officer evidence of such insurance. contracting officer insert the', 41708:'dollar values ofstandardcoverages prevailing withinthe localcommunity as to the specific medical specialty, or specialties, concerned, or such higher amount as', 41709:'the contractingofficer deems necessary to protect the governments interests. end of clause 52.2378restriction on severancepayments to foreign nationals. as prescribed', 41710:'in 37.1132a, use the following provision: restriction on severance payments to foreign nationals aug 2003 a thefederal acquisition regulation far,', 41711:'at 31.2056g6, limits the cost allowability of severance payments to foreign nationals employed under a service contract performed outside the', 41712:'united states unless the agency grants a waiver pursuant to far 37.1131 before contract award. b in making the determinationconcerning', 41713:'the granting of a waiver, the agency will determine that 1 the application of the severancepay limitations to thecontract would', 41714:'adversely affect the continuation of a program, project, or activity that provides significant support services for i members of the', 41715:'armed forces stationed or deployed outside the united states; or ii employees of an executive agency posted outside the united', 41716:'states; 2 the contractor has taken or has established plans to take appropriate actions within its control to minimize the', 41717:'amount and number of incidents of the payment of severance pay to employees under the contract who are foreign nationals;', 41718:'and 3 the payment of severance pay is necessary in order to comply with a law that is generally applicable', 41719:'to a significant number of businesses in the country in which the foreign national receiving the payment performed services under', 41720:'the contract, or is necessary to comply with acollective bargaining agreement. end of provision 52.2379waiver oflimitation onseverance payments to foreign', 41721:'nationals. as prescribed in 37.1132b, use the following clause: waiver of limitation on severance payments to foreign nationals dec 2022', 41722:'a pursuant to 10 u.s.c. 3744b or 41 u.s.c. 4304b1, as applicable,the cost allowability limitations in far 31.2056g6 are waived.', 41723:'52.2436 subpart 52.2 text of provisions and clauses 52.238 b this clause may be incorporated into subcontracts issued under this', 41724:'contract, if approved by thecontracting officer. end of clause 52.23710 identification of uncompensated overtime. as prescribed in 37.1153 , insert', 41725:'the following provision: identification of uncompensated overtime mar 2015 a definitions. as used in this provision adjusted hourly rate including', 41726:'uncompensated overtime is the rate that results from multiplying the hourly rate for a 40hour work week by 40, and', 41727:'then dividing by the proposed hours per week which includes uncompensated overtime hours over and above the standard 40hour work', 41728:'week. for example, 45 hours proposed on a 40hour work week basis at $20 per hour would be converted to', 41729:'an uncompensated overtime rate of $17.78 per hour $20.00 x 40 divided by 45 = $17.78. uncompensated overtime means the', 41730:'hours worked without additional compensation in excess of an average of 40 hours per week by direct charge employees whoare', 41731:'exempt fromthe fair laborstandards act. compensated personal absences such as holidays, vacations, and sick leave shall be included in the', 41732:'normal work week for purposes of computing uncompensated overtime hours. b 1 whenever there is uncompensated overtime, the adjusted hourly', 41733:'rate including uncompensated overtime, rather than the hourly rate, shall be applied to all proposed hours, whether regular or overtime', 41734:'hours. 2 all proposed labor hours subject to the adjusted hourly rate including uncompensated overtime shall be identified as either', 41735:'regular or overtime hours, by labor categories, and described at the same level of detail. this is applicable to all', 41736:'proposals whether the labor hours are at the prime or subcontract level. this includes uncompensated overtime hours that are in', 41737:'indirect costpools for personnelwhose regular hours are normallycharged direct. c theofferor’s accounting practices used toestimateuncompensated overtime must be consistent with', 41738:'its cost accounting practices used to accumulate and report uncompensated overtime hours. d proposals that include unrealistically low labor rates,', 41739:'or that do not otherwise demonstrate cost realism, will be considered in a risk assessment and will be evaluated for', 41740:'award in accordance with that assessment. e theofferor shall include a copyof its policy addressing uncompensated overtimewith its proposal. end', 41741:'of provision 52.238[reserved] 52.2437 this page intentionally left blank. 52.2438 fac 202501 november 12, 2024 subpart 52.2 text of provisions', 41742:'and clauses 52.2401 52.239 [reserved] 52.2391 privacy or security safeguards. as prescribed in 39.106 , insert a clause substantially the', 41743:'same as the following: privacy or security safeguards aug 1996 a the contractor shall not publish or disclose in any', 41744:'manner, without the contracting officer’s written consent, the details of any safeguards either designed or developed by the contractor under', 41745:'this contract or otherwise provided by the government. b to the extent required to carry out a program of inspection', 41746:'to safeguard against threats and hazards to the security, integrity, and confidentiality of government data, the contractor shall afford the', 41747:'government access to the contractor’s facilities, installations, technical capabilities, operations, documentation, records, and databases. c if new or unanticipated threats', 41748:'or hazards are discovered by either the government or the contractor, or if existing safeguards have ceased to function, the', 41749:'discoverer shall immediately bring the situation to the attention of the other party. end of clause 52.240 [reserved] 52.2401 prohibition', 41750:'on unmanned aircraft systems manufactured or assembled by american security drone act covered foreign entities. as prescribed in 40.2028 ,', 41751:'insert the following clause: prohibition on unmanned aircraft systems manufactured or assembled by american security drone actcovered foreign entities nov', 41752:'2024 a definitions. as used in this clause— american security drone actcovered foreign entitymeans an entity included on a list', 41753:'developed and maintained by the federal acquisition security council fasc and published in the system for award management sam at', 41754:'https:// www.sam.gov section 1822 of the national defense authorization act for fiscal year 2024, pub. l. 11831, 41 u.s.c. 3901', 41755:'note prec.. fascprohibited unmanned aircraft systemmeans an unmanned aircraft system manufactured or assembled by an american security drone actcovered foreign', 41756:'entity. unmanned aircraftmeans an aircraft that is operated without the possibility of direct human intervention from within or on the', 41757:'aircraft 49 u.s.c. 4480111. unmanned aircraft systemmeans an unmanned aircraft and associated elements including communication links and the components that', 41758:'control the unmanned aircraft that are required for the operator to operate safely and efficiently in the national airspace system', 41759:'49 u.s.c. 4480112. b prohibition. the contractor is prohibited from— 1 delivering any fascprohibited unmanned aircraft system, which includes unmanned', 41760:'aircraft i.e., drones and associated elements sections 1823 and 1826 of pub. l. 11831, 41 u.s.c. 3901 note prec. ;', 41761:'2 on or after december 22, 2025, operating a fascprohibited unmanned aircraft system in the performance of the contract section', 41762:'1824 of pub. l. 11831, 41 u.s.c. 3901 note prec. ; and 3 on or after december 22, 2025, using', 41763:'federal funds for the procurement or operation of a fascprohibited unmanned aircraft system section 1825 of pub. l. 11831, 41', 41764:'u.s.c. 3901 note prec.. c procedures. the contractor shall search sam at https://www.sam.gov for the fascmaintained list of american security', 41765:'drone actcovered foreign entities prior to proposing, or using in performance of the contract, any unmanned aircraft system. additionally, the', 41766:'contractor shall ensure any effort or expenditure associated with a fascprohibited unmanned aircraft system is consistent with a corresponding exemption,', 41767:'exception, or waiver determination expressly stated in the contract. d exemptions, exceptions, and waivers. the prohibitions in this clause do', 41768:'not apply where the agency has determined an exemption, exception, or waiver applies and the contract indicates that such a', 41769:'determination has been made. [see sections 52.2439 fac 202501 november 12, 2024 52.2401 federal acquisition regulation 1823through1825 and 1832 of', 41770:'publiclaw 11831 41 u.s.c. 3901 note prec. for statutory requirements pertaining to exemptions, exceptions, and waivers.]. e subcontracts. the contractor', 41771:'shall insert the substance of this clause, including this paragraph e, in all subcontracts and other contractual instruments, including subcontracts', 41772:'for the acquisition of commercial products or commercial services. end of clause 52.2440 subpart 52.2 text of provisions and clauses', 41773:'52.2414 52.241 utilityservicesprovisions and clauses. 52.2411electric service territorycompliance representation. as prescribed in 41.501b, insert a provision substantially the same as', 41774:'the following: electric service territory compliance representation may 1999 a section 8093 ofpublic law100202 generally requires purchases ofelectricity by any', 41775:'department, agency, or instrumentality of the united states to be consistent with state law governing the provision of electric utility', 41776:'service, including state utility commission rulings and electric utility franchises or service territories established pursuant to state statute, state regulation,', 41777:'or stateapproved territorial agreements. b by signing this offer, the offeror represents that this offer to sell electricity is consistentwith', 41778:'section 8093 ofpublic law100202. c upon requestof the contracting officer, the offeror shall submit supporting legaland factual rationale for this', 41779:'representation. end of clause 52.2412order of precedenceutilities. as prescribed in 41.501c1, insert a clause substantially the same as the following:', 41780:'order of precedenceutilities feb 1995 in the event of any inconsistency between the terms of this contract including the specifications', 41781:'and any rate schedule, rider,or exhibit incorporated in this contract by reference or otherwise, or any ofthe contractor’srules and regulations,', 41782:'the terms of this contract shall control. end of clause 52.2413 scope and duration of contract. as prescribed in 41.501c2,', 41783:'insert a clause substantially the same as the following: scope and duration of contract feb 1995 a for the period', 41784:', [insert period of service] the contractor agrees to furnish and the government agrees to purchase [insert type of service]', 41785:'utility service in accordance with the applicable tariffs, rules, and regulationsas approvedby the applicable governingregulatorybody and as setforth in the', 41786:'contract. b it is expressly understood that neither the contractor nor the government is under any obligation to continue any', 41787:'service under the terms and conditions of this contract beyond the expiration date. c the contractor shall provide the government', 41788:'with one complete set of rates, terms, and conditions of service which are in effect asof the date of this', 41789:'contract and any subsequently approved rates. d the contractor shall bepaid atthe applicable rates under the tariff and thegovernmentshallbe liableforthe', 41790:'minimum monthly charge, if any, specifiedin this contract commencing with the period in which service isinitially furnished and continuing for', 41791:'the term of this contract. any minimum monthly chargespecified in this contract shall be equitably prorated for the periods in', 41792:'which commencementandtermination of this contract become effective. end of clause 52.2414 change in class of service. as prescribed in 41.501c3,', 41793:'insert a clause substantially the same as the following: change in class of service feb 1995 52.2441 52.2415 federal acquisition', 41794:'regulation a inthe event of a change in the class of service, suchservice shall be provided at the contractor’s lowest', 41795:'available rate schedule applicable to the class of service furnished. b where the contractor does not have on file with', 41796:'the regulatory body approved rate schedules applicable to services provided, no clause in this contract shall preclude the parties from', 41797:'negotiating a rate schedule applicable to the class of service furnished. end of clause 52.2415contractor’s facilities. as prescribed in 41.501c4,', 41798:'insert a clause substantially the same as the following: contractor’s facilities feb 1995 a thecontractor, at its expense, unless otherwiseprovided', 41799:'for in this contract, shall furnish, install, operate, and maintain all facilities required to furnish service hereunder,and measure such service', 41800:'at the point of delivery specified in the servicespecifications. titleto all such facilities shall remain with the contractor and thecontractor', 41801:'shall be responsible for loss or damage to such facilities, except that the government shall be responsible to the extent', 41802:'that loss or damage has been caused bythe government’s negligent actsor omissions. b notwithstanding any terms expressed inthis clause, the', 41803:'contractorshallobtainapproval from the contracting officer prior to anyequipment installation, construction, or removal. the government hereby grants to the contractor,free of', 41804:'any rental orsimilarcharge,but subject to the limitations specified in this contract, arevocable permit or license toenter the service location for', 41805:'any proper purpose under this contract. this permit or license includes use of the site or sites agreed upon by', 41806:'the parties hereto for the installation, operation, maintenance, and repair of the facilities of the contractor required to be located', 41807:'upon government premises. allapplicable taxes and other charges in connection therewith, together with all liability of the contractor in construction,', 41808:'operation, maintenance and repair of such facilities, shall be the obligation of the contractor. c authorized representatives of the contractor', 41809:'will be allowed access to the facilities on government premises at reasonable times to perform the obligations of the contractor', 41810:'regarding such facilities. it is expressly understood that the government may limit or restrict the right of access herein granted', 41811:'in any manner considered necessary e.g., national security, public safety. d unless otherwise specified in this contract, the contractor shall,', 41812:'at its expense, remove such facilities and restore government premises to their original condition as near as practicable within a', 41813:'reasonable time after the government terminatesthiscontract. inthe event suchtermination of this contract isdue to the fault of the contractor, such', 41814:'facilities may be retained in place at the option of the government for a reasonable time while the government attempts', 41815:'to obtain service elsewhere comparable to that provided for hereunder. end of clause 52.2416service provisions. as prescribed in 41.501c5, insert', 41816:'a clause substantially the same as the following: service provisions feb 1995 a measurement of service. 1 all service furnished', 41817:'by the contractor shall be measured by suitable metering equipment of standard manufacture, to be furnished, installed, maintained, repaired, calibrated,', 41818:'and read by the contractor at its expense. whenmorethan a single meter is installed at a servicelocation, the readings thereof', 41819:'may be billed conjunctively, if appropriate. in the event any meter fails to register or registers incorrectly the service furnished,', 41820:'the parties shall agree upon the length of time of meter malfunction and the quantity of service delivered during such', 41821:'period of time. an appropriate adjustment shall bemade to the next invoice for the purpose of correcting such errors. however,', 41822:'any meter which registers not more than percent slow or fast shall be deemed correct. 2 the contractor shall read', 41823:'all meters at periodic intervals of approximately 30 days or in accordance with the policy of the cognizant regulatory body', 41824:'or applicable bylaws. all billings based on meter readings of less than days shall be prorated accordingly. 52.2442 subpart 52.2', 41825:'text of provisions and clauses 52.2418 b meter test. 1thecontractor,atitsexpense,shallperiodicallyinspectandtestcontractorinstalledmetersatintervals not exceeding years. the government has the right to have', 41826:'representation during the inspection and test. 2 at the written requestof the contracting officer, the contractorshallmake additional tests of any', 41827:'or allsuch meters in the presence of government representatives. the cost of such additional tests shall be borne by the', 41828:'government if the percentage of errors is found to be not more than percent slow or fast. 3 no meter', 41829:'shall be placed in service or allowed to remain in service which has an error in registration in excess of', 41830:'percent under normal operating conditions. c change in volume or character. reasonable notice shall be given by the contractingofficer to', 41831:'the contractor regarding any material changes anticipated in the volume or characteristics of the utility service required at each location.', 41832:'d continuity of service and consumption. the contractor shall use reasonable diligence to provide a regular and uninterrupted supply of', 41833:'service at each service location, but shall not be liable for damages, breach of contract or otherwise, to the government', 41834:'for failure, suspension, diminution, or other variations of service occasioned by or in consequence of any cause beyond the control', 41835:'of the contractor, including but not limited to acts of god or of the public enemy, fires,floods, earthquakes, or other', 41836:'catastrophe, strikes, or failure or breakdown of transmission or other facilities. if any such failure, suspension, diminution, or other variation', 41837:'of service shall aggregate more than hours during any billing period hereunder, an equitableadjustment shall be made in the monthly', 41838:'billing specified in this contractincluding the minimum monthlycharge. end of clause 52.2417change in rates or terms and conditions of service', 41839:'for regulated services. as prescribed in 41.501d1, insert a clause substantially the same as the following: change in rates or', 41840:'terms and conditions of service for regulated services feb 1995 a this clause appliesto theextent services furnished underthis contractare subjectto', 41841:'regulation bya regulatory body. the contractor agrees to give written notice of 1 the filing of an application for change', 41842:'in rates or terms and conditions of service concurrently with the filing of the application and 2 any changes pending', 41843:'with the regulatory body as of the date of contract award. such notice shall fully describe the proposed change. if,', 41844:'during the term of this contract, the regulatory body having jurisdiction approves any changes, the contractor shall forward to the', 41845:'contracting officer acopy ofsuch changes within15 days afterthe effective date thereof. the contractor agrees to continue furnishing serviceunder this contract', 41846:'inaccordance withthe amended tariff, and the governmentagrees topayforsuch serviceat the higher or lower rates as of the datewhen such rates', 41847:'are made effective. b the contractor agrees that throughout the life of this contract the applicable published and unpublished rate', 41848:'schedules shall not be in excess of the lowest cost published and unpublished rate schedules available to any other customers', 41849:'of the same class under similar conditions of use and service. c inthe event that the regulatory body promulgates any', 41850:'regulationconcerning matters other than rates which affectsthis contract, the contractor shall immediately provide a copyto the contractingofficer. the government shall', 41851:'not be boundto accept any new regulation inconsistent with federal laws or regulations. d any changes to rates or terms', 41852:'and conditions of service shall be made a part of this contract by the issuance of a contract modification unless', 41853:'otherwisespecified in the contract. the effective dateof the change shall be the effective dateby theregulatorybody. any factors notgoverned by the', 41854:'regulatory body will have an effective date as agreed to by the parties. note: insert language prescribed in 41.501d1. end', 41855:'of clause 52.2418change in rates or terms and conditions of service for unregulatedservices. as prescribed in 41.501d2, insert a clause', 41856:'substantially the same as the following: change in rates or terms and conditions of service for unregulated services feb 1995', 41857:'a this clause appliesto theextent that services furnished hereunder are not subject to regulationby aregulatorybody. 52.2443 52.2419 federal acquisition regulation', 41858:'b after [insert date], either party may request a change in rates or terms and conditions of service, unless otherwise', 41859:'provided in this contract. both parties agree to enter in negotiations concerning such changes upon receipt of a written request', 41860:'detailing the proposed changes and specifying the reasons for the proposed changes. c theeffective date ofany change shall be as', 41861:'agreedto by the parties. thecontractor agrees that throughout the life of this contract therates so negotiated will not be in', 41862:'excess of published and unpublished rates charged to any other customer of the same class under similar terms and conditions', 41863:'of use and service. d the failure of the parties to agree upon any change after a reasonable period of', 41864:'time shall be a dispute under the disputes clause of this contract. e any changes to rates, terms, or conditions', 41865:'as a result of such negotiations shall be made a part of this contract by the issuance of a contract', 41866:'modification. end of clause 52.2419 connection charge. as prescribed in 41.501d3, insert a clause substantially the same as the following:', 41867:'connection charge feb 1995 a charge. in consideration of the contractor furnishing and installing at its expense the new connection', 41868:'facilities described herein,the government shall pay the contractora connection charge. the payment shall bein the form of progress payments, advance', 41869:'payments oras a lump sum, as agreed to bythe parties and as permitted by applicablelaw. the total amount payable shall', 41870:'be either the estimated cost of $ less the agreed to salvage value of $, or the actual cost less', 41871:'the salvage value, whichever is less. as a condition precedent to final payment, the contractor shall execute a release of', 41872:'any claims against the government arising under or by the virtue of such installation. b ownership, operation, maintenance and repair', 41873:'of new facilities to be provided. the facilities to be supplied by the contractor under thisclause, notwithstandingthe paymentby the government', 41874:'ofa connection charge, shall be and remain the property of the contractor and shall, at all times during the life', 41875:'of this contract or any renewals thereof, be operated, maintained,andrepaired by the contractorat its expense. all taxes and other charges', 41876:'in connection therewith, togetherwith all liability arising out of the construction, operations, maintenance, or repair of such facilities, shall be', 41877:'the obligation of the contractor. c credits. 1 the contractor agrees to allow the government, on each monthly bill for', 41878:'service furnished under this contract to the service location, a credit of percent of the amount of each such bill', 41879:'as rendered until the accumulation of credits shall equal theamount of such connection charge, provided thatthe contractor may at any', 41880:'timeallow a credit upto 100 percent of the amount of each such bill. 2 in the event the contractor, before', 41881:'any termination of this contract but aftercompletion of thefacilities provided for in this clause, serves any customer other than the', 41882:'government regardless of whether the government is being served simultaneously,intermittently, or not at all by means of thesefacilities,the contractor shall', 41883:'promptly notify the government in writing. unless otherwise agreed by the parties in writing at that time, the contractor shall', 41884:'promptly accelerate the credits provided for under paragraph c1 of this clause, up to 100 percent of each monthly bill', 41885:'until there is refunded the amount that reflects the government’sconnectioncosts for thatportion of the facilities used in serving others. 3', 41886:'in the event the contractor terminates this contract, or defaults in performance, prior to full credit of any connection charge', 41887:'paid bythe government, thecontractor shall pay to thegovernmentan amountequal to the uncredited balance of the connection charge asof the date', 41888:'of the termination or default. d termination before completion of facilities. the government reserves the right to terminate this contract', 41889:'at any time before completionof the facilitieswith respect to which the government is to pay a connection charge. in the', 41890:'event the government exercises this right, the contractor shall be paid the cost of any work accomplished, including direct and', 41891:'indirect costs reasonably allocable to the completed work prior to the time of termination by the government, plus the cost', 41892:'of removal, less the salvage value. e termination after completion of facilities. in the event the government terminates this contract', 41893:'after completion of thefacilities withrespect to which thegovernmenthas paida connection charge, but before the crediting in full bythe contractor of', 41894:'any connection chargein accordance with theterms ofthiscontract, the contractorshallhavethe following options: 52.2444 subpart 52.2 text of provisions and clauses 52.24111', 41895:'1 to retain inplace for months after the notice of termination by the government such facilities on condition that i', 41896:'if, during such month period, the contractor serves any other customer by means of such facilities, the contractor, shall, in', 41897:'lieu of allowing credits, pay the government during such period installments in likeamount, manner, and extent as the credit provided', 41898:'for under paragraph c of this clause before such termination; and ii immediately after such month period the contractor shall', 41899:'promptly pay in full to the government the uncredited balance of the connection charge. 2 to remove such facilities at', 41900:'the contractor’s own expense within months after the effective date of the termination by the government. if the contractor elects', 41901:'to remove such facilities, the government shall then have the option of purchasingsuch facilities at theagreed salvage value set forth', 41902:'herein; and provided further,that the contractorshall, at the direction of the government, leave in place such facilities located on government', 41903:'property which the government elects to purchase at the agreed salvage value. end of clause alternate i feb 1995. if', 41904:'the contracting officer determines that a nonrefundablecharge is to be paid and nocredits are due the government, delete paragraphs c', 41905:'and e, renumber paragraph d as c and add the following as paragraph d: d termination after completion of facilities.', 41906:'in the event the government terminates this contract after completion of thefacilities withrespect to which thegovernmentis topaya connection charge, the', 41907:'contractor shall have the following options: 1 to retain inplace for months after the notice of termination by the government.', 41908:'if the contractor and the government have not agreed on terms for retention in place beyond months, then the contractor', 41909:'must remove the facilities pursuant to the terms of paragraph d2 of this clause. 2 to remove such facilities at', 41910:'the contractors own expense within months after the effective date of the termination by the government. if the contractor elects', 41911:'to remove such facilities, the government shall then have the option of purchasingsuch facilities at theagreed salvage value set forth', 41912:'herein; and provided further,that the contractorshall, at the direction of the government, leave in place such facilities located on government', 41913:'property which the government elects to purchase at the agreed salvage value. 52.24110 termination liability. as prescribed in 41.501d4, insert', 41914:'a clause substantially the same as the following: termination liability feb 1995 a if the government discontinues utility service under', 41915:'this contract before completion of the facilities cost recovery period specified in paragraph b of this clause, in consideration of', 41916:'the contractor furnishing and installing at its expense, the new facility described herein,the government shall pay termination charges, calculated as', 41917:'setforth in this clause. b facility cost recovery period. the period of time, not exceeding the term of this contract,', 41918:'during which the net cost of the new facility shall be recovered by the contractor is months. [insert negotiated duration.]', 41919:'c net facility cost. the cost ofthe new facility,less the agreed upon salvage value of such facility, is $. [insert', 41920:'appropriate dollar amount.] d monthly facility cost recovery rate. the monthly facility cost recovery rate which the government shall pay', 41921:'the contractor whether or not service is received is $. [divide the net facility cost in paragraph c of this', 41922:'clause by the facility’s cost recovery period in paragraph b of this clause and insert the resultant figure.] e termination', 41923:'charges. termination charges = $. [multiply the remaining months of the facilitys cost recovery period specified in paragraph b of', 41924:'this clause by the monthly facility cost recovery rate in paragraph d of this clause and insert the resultant figure.]', 41925:'f ifthe contractor has recovered its capitalcosts at the time of termination there will beno termination liability charge. end of', 41926:'clause 52.24111 multiple service locations. as prescribed in 41.501d5, insert a clause substantially the same as the following: 52.2445 52.24112', 41927:'federal acquisition regulation multiple service locations feb 1995 a at anytime by written order, thecontracting officer may designate any location', 41928:'within the service area ofthe contractor at which utility service shall commence or be discontinued. any changes to the service', 41929:'specifications shall be made a part of the contract by the issuance of a contract modification to include the name', 41930:'and location of the service, specifying any different rate, thepointof delivery, different service specifications,and any other terms andconditions. b the', 41931:'applicable monthlycharge specified inthiscontract shall be equitably prorated from the periodin which commencement or discontinuance of service at any service', 41932:'location designated under the service specifications shall become effective. end of clause 52.24112 nonrefundable, nonrecurringservice charge. as prescribed in 41.501d6,', 41933:'insert a clause substantially the same as the following: nonrefundable, nonrecurring service charge feb 1995 asprovided herein, thegovernment will pay', 41934:'a nonrefundable, nonrecurring chargewhen the rules and regulations of a contractor requirethat a customer pay 1a charge for theinitiation of', 41935:'service, 2a contribution in aid of construction, or 3a nonrefundable membership fee. this chargemay be in addition to or in', 41936:'lieu of a connectioncharge. therefore, thereis hereby added to the contractor’s schedule a nonrefundable, nonrecurring charge for in the amount', 41937:'of $ dollars payable . [specify dates or schedules] end of clause 52.24113 capital credits. as prescribed in 41.501d7, insert', 41938:'a clause substantially the same as the following: capital creditsfeb 1995 a the government is a member of the [insert', 41939:'cooperative name], and as any other member, is entitled to capital credits consistent with the bylaws of the cooperative, which', 41940:'states the obligation of the contractor to pay capital credits and which specifies the method and time of payment. b', 41941:'the contractor shall furnish tothe contracting officer, or the designated representative ofthe contracting officer, in writing, on an basis [insert', 41942:'period of time] alist of accrued creditsby contractnumber, year, and deliverypoint. c payment of capital credits will be made by', 41943:'check, payable to the [insert agency name], and forwarded to the contracting officer at [insert agency address], unless otherwise directed', 41944:'in writing by the contracting officer. checks shall citethe current or last contract number and indicatewhetherthe check is partial or', 41945:'final payment for all capital credits accrued. end of clause 52.2446 subpart 52.2 text of provisions and clauses 52.2423 52.242[reserved]', 41946:'52.2421 notice of intent to disallow costs. as prescribed in 42.802, insert the following clause in solicitations and contracts when', 41947:'a costreimbursement contract, a fixedprice incentive contract, or a contract providing for price redetermination is contemplated: notice of intent to', 41948:'disallow costs apr 1984 a notwithstanding any other clause of this contract 1 the contracting officer may at any timeissue', 41949:'tothe contractor awritten notice ofintent todisallow specified costs incurred or planned for incurrence under this contract that have been determined', 41950:'not to be allowable under the contract terms; and 2 the contractor may, after receivinga noticeunder paragraph a1 of thisclause,', 41951:'submita written response to thecontracting officer,with justification for allowance of the costs. if the contractordoes respondwithin 60 days, the contracting', 41952:'officershall, within 60 days of receiving the response, either make a written withdrawal of the notice or issuea written decision.', 41953:'b failure to issuea noticeunder this notice of intent todisallow costs clause shall not affectthe government’s rights to take exception', 41954:'to incurred costs. end of clause 52.2422production progress reports. as prescribed in 42.1107a, insert the following clause: production progress reports', 41955:'apr 1991 a thecontractor shall prepare and submit to thecontracting officer theproduction progress reports specifiedin the contract schedule. b during', 41956:'any delay in furnishing a production progress report required under this contract,the contracting officermay withhold from payment an amount not', 41957:'exceeding $25,000 or 5 percent of the amount of this contract, whichever is less. end of clause 52.2423 penalties for', 41958:'unallowable costs. as prescribed in 42.7097, use the following clause: penalties for unallowable costs dec 2022 a definition. proposal, as', 41959:'used in this clause, means either— 1 a final indirect cost rate proposal submitted by the contractor after the expiration', 41960:'of its fiscal year which i relates to any payment made on the basis of billing rates; or iiwill be', 41961:'used in negotiating the finalcontract price; or 2 the final statement of costs incurred and estimated to be incurred under', 41962:'the incentive price revision clause if applicable, which is used to establish the final contract price. b contractors which include', 41963:'unallowable indirect costs in a proposal may be subject to penalties. the penalties are prescribed in 10 u.s.c. 3748 or', 41964:'41 u.s.c. chapter 43, as applicable, which is implemented in section 42.709 of the federal acquisition regulationfar. c the contractor', 41965:'shall not include in any proposal any cost that is unallowable, as defined in subpart 2.1of the far, or anexecutive', 41966:'agency supplement to thefar. d if the contracting officer determines that a cost submitted by thecontractor in its proposal is', 41967:'expressly unallowable undera cost principle inthe far,or an executive agency supplement to the far, that definesthe allowability ofspecific selected costs,', 41968:'the contractor shall be assessed a penalty equal to– 1 the amount of the disallowed cost allocated to this contract;', 41969:'plus 52.2447 52.2424 federal acquisition regulation 2 simple interest, to be computed i on the amount the contractor was paid', 41970:'whether as a progress or billing payment in excess of the amount to which the contractor was entitled; and iiusing', 41971:'the applicable rate effectiveforeach sixmonth interval prescribed by thesecretary of the treasury pursuant to pub.l.9241 85 stat.97. e if the', 41972:'contracting officer determines that a cost submitted by the contractorin itsproposal includesa cost previously determined to be unallowable for thatcontractor,', 41973:'then thecontractor will be assessed a penaltyin anamount equal to two times the amount of the disallowed cost allocated to', 41974:'this contract. f determinations under paragraphs d and e of this clause are final decisions within the meaning of 41', 41975:'u.s.c. chapter 71, contract disputes. g pursuant to thecriteria in far 42.7096, the contracting officer maywaive thepenalties in paragraphdor e', 41976:'of this clause. h payment by the contractor of any penalty assessed under this clause does not constitute repayment to', 41977:'the government of any unallowable cost which has been paid bythe government to the contractor. end of clause 52.2424certification of', 41978:'finalindirectcosts. as prescribed in 42.7032f, insert the following clause: certification of final indirect costsjan 1997 a the contractor shall 1', 41979:'certify any proposal to establish or modify final indirect cost rates; 2 use the format in paragraph c of this', 41980:'clause to certify; and 3 havethe certificate signedby an individualof the contractor’s organization at a level nolower than a vice', 41981:'president or chieffinancial officerof the business segment of the contractor that submits the proposal. b failure by the contractor to', 41982:'submit a signed certificate, as described in this clause, may result in final indirect costs at rates unilaterally established bythe', 41983:'contracting officer. c the certificate of final indirect costs shall read as follows: certificate of final indirect costs this is', 41984:'to certify that i have reviewed this proposal to establish final indirect cost rates and to the best of my', 41985:'knowledge and belief: 1. all costs included in this proposal identify proposal and date to establish final indirect cost rates', 41986:'for identify period covered byrate are allowablein accordance with thecostprinciplesof the federal acquisition regulation far and its supplements applicable to', 41987:'the contracts to which the final indirect cost rates will apply; and 2. this proposal does not includeanycosts which are', 41988:'expressly unallowable under applicable cost principles of the far or its supplements. firm: signature: name of certifying official: title: date', 41989:'of execution: end of clause 52.2425 payments to small business subcontractors. as prescribed in 42.1504, insert the following clause: payments', 41990:'to small business subcontractors jan 2017 a definitions. as used in this clause52.2 448 subpart 52.2 text of provisions and', 41991:'clauses 52.24214 reduced payment means a payment that is for less than the amount agreed upon in a subcontract in', 41992:'accordance with its terms and conditions,forsupplies and services for whichthe government has paid the prime contractor. untimely payment means a', 41993:'payment that is more than 90 days past due under the terms and conditions of a subcontract, for supplies and', 41994:'services for which the government haspaid the prime contractor. b notice. the contractor shall notify the contracting officer, in writing,', 41995:'not later than 14 days after 1 a small business subcontractor was entitled to payment under the terms and conditions', 41996:'of the subcontract; and 2 the contractor i made a reduced or untimely payment to the small business subcontractor; or', 41997:'iifailed to make a payment, whichis now untimely. c content of notice. the contractor shall include the reasons for making', 41998:'the reduced or untimely payment in any notice required under paragraph b of this clause. end of clause 52.2426 [reserved]', 41999:'52.2427 [reserved] 52.2428 [reserved] 52.2429 [reserved] 52.24210 [reserved] 52.24211 [reserved] 52.24212 [reserved] 52.24213 bankruptcy. as prescribed in 42.903, insert the', 42000:'following clause: bankruptcy july 1995 in the event the contractor enters intoproceedings relating to bankruptcy, whether voluntary orinvoluntary, the contractor', 42001:'agrees to furnish, by certified mail or electronic commerce method authorized by the contract, written notification of the bankruptcyto the', 42002:'contracting officer responsible for administering the contract. this notification shall be furnished within fivedays of the initiation of the proceedings', 42003:'relating to bankruptcy filing. this notification shall include the date on which the bankruptcy petition was filed, the identity of', 42004:'the court in which the bankruptcy petition was filed, and a listing of government contract numbersand contracting offices for all', 42005:'government contractsagainst which final payment has not been made. this obligationremains in effect untilfinal payment under this contract. end of', 42006:'clause 52.24214 suspension of work. as prescribed in 42.1305a, insert the following clause in solicitations and contracts when a fixedprice', 42007:'construction or architectengineer contract is contemplated: suspension of work apr 1984 a thecontracting officer may order the contractor, in writing,', 42008:'to suspend, delay, or interrupt all orany part of the work of thiscontract for the period of time that the', 42009:'contracting officer determines appropriate for the convenience of the government. 52.2449 52.24215 federal acquisition regulation b if the performance of', 42010:'all or any part of the work is, for an unreasonable period of time, suspended, delayed, or interrupted 1byan act', 42011:'of the contracting officer inthe administration of this contract, or 2by the contractingofficer’s failure to act within the time specified', 42012:'in this contract or within a reasonable time if not specified, an adjustment shall be made for any increase in', 42013:'the cost of performance of this contract excluding profit necessarily caused by the unreasonable suspension, delay, or interruption, and thecontract', 42014:'modified in writing accordingly. however,no adjustment shall be made underthis clause for anysuspension, delay, orinterruptionto theextent that performance would have', 42015:'been so suspended, delayed,or interrupted by any other cause,including the fault or negligence ofthe contractor, or for which an equitable', 42016:'adjustment is provided for or excluded under any other term or condition of this contract. c a claim under this', 42017:'clause shall not be allowed 1 for any costs incurred more than 20days beforethe contractor shall have notified the contracting', 42018:'officer in writing of the act or failure to act involved but this requirement shall not apply as to a', 42019:'claim resulting from a suspension order; and 2 unless the claim, in an amount stated, is asserted in writing as', 42020:'soon as practicable after the termination of the suspension, delay, or interruption, but not later than the date of final', 42021:'payment under the contract. end of clause 52.24215 stopworkorder. as prescribed in 42.1305b, insert the following clause. the 90day period', 42022:'stated in the clause may be reduced to less than 90 days. stopwork order aug 1989 a thecontracting officer may,', 42023:'atany time, by written orderto thecontractor, requirethe contractor to stop all, or any part, of the work called for bythis', 42024:'contractfora period of 90 days after theorder is delivered tothe contractor, and for any further period to which the parties', 42025:'may agree. the order shall be specifically identified as a stopwork order issued under this clause. upon receipt of the', 42026:'order, the contractor shall immediately comply with its terms andtake all reasonablesteps to minimize the incurrence ofcosts allocable tothe work', 42027:'coveredby the order during theperiod of workstoppage. within a period of 90 daysafter astopwork isdelivered to the contractor,or within any', 42028:'extension ofthat period to which the parties shall have agreed,the contracting officershalleither 1 cancel the stopwork order; or 2 terminate', 42029:'thework covered by the order as provided in the default, or the termination for convenience ofthe government, clause of this', 42030:'contract. b if a stopwork order issued under this clause is canceled or the period of the order or any', 42031:'extension thereof expires, thecontractor shall resume work. the contracting officer shall make an equitable adjustment in the delivery scheduleor contract', 42032:'price, or both, and thecontract shall be modified, inwriting, accordingly, if 1 the stopwork orderresults in an increase in the', 42033:'time required for, or inthe contractor’scost properly allocableto, the performance of any part of this contract; and 2 the contractor', 42034:'asserts its right to the adjustment within 30 days after the end of the period of work stoppage; provided, that,', 42035:'if the contracting officer decides the facts justify the action, the contracting officer may receive and act upon the claim', 42036:'submitted at any time before final payment under this contract. c if a stopwork order is not canceled and the', 42037:'work covered by the order is terminated for the convenience of the government, thecontracting officer shall allow reasonablecosts resulting from', 42038:'the stopwork orderin arrivingat the termination settlement. d if a stopwork order is not canceled and the work covered by', 42039:'the order is terminated for default, the contracting officer shall allow, by equitable adjustment or otherwise, reasonable costs resulting from', 42040:'the stopwork order. end of clause alternate i apr 1984. if this clause is inserted in a costreimbursement contract, substitute', 42041:'in paragraph a2 the words the terminationclause ofthis contract forthe words the default, orthe terminationforconvenience of the government clause of', 42042:'this contract. in paragraph b substitute the words an equitable adjustment in the delivery schedule, 52.2450 subpart 52.2 text of', 42043:'provisions and clauses 52.24217 theestimated cost, thefee, or a combination thereof, and in any other termsof the contract that may', 42044:'be affected forthe words an equitable adjustment in the delivery schedule or contract price, or both. 52.24216 [reserved] 52.24217 government', 42045:'delay of work. as prescribed in 42.1305c, insert the following clause: government delay of work apr 1984 a if the', 42046:'performance of all or any part of the work of this contract is delayed or interrupted 1by an act of', 42047:'the contracting officerin the administration ofthis contractthat is not expressly or impliedly authorized by thiscontract, or 2by a failure of', 42048:'the contracting officer to act within the timespecified in this contract, or within a reasonable time if not specified, an', 42049:'adjustment excluding profit shall be made for any increase in the cost of performance of this contract caused by the', 42050:'delay or interruption and thecontract shall be modified in writing accordingly. adjustment shall also be made in the delivery or', 42051:'performance dates and any other contractual term or condition affected by the delay or interruption. however, no adjustment shall be', 42052:'made under this clause for any delay or interruption to the extent that performance would have been delayed or interrupted', 42053:'by any other cause, including thefault or negligenceof the contractor,or for which anadjustment is provided or excluded under any other', 42054:'term or condition of this contract. b a claim under this clause shall not be allowed 1 for any costs', 42055:'incurred more than 20days beforethe contractor shall have notified the contracting officer in writing of the act or failure to', 42056:'act involved; and 2 unless the claim, in an amount stated, is asserted in writing as soon as practicable after', 42057:'the termination of the delay or interruption, but not later than the day of final payment under the contract. end', 42058:'of clause 52.2451 this page intentionally left blank. 52.2452 subpart 52.2 text of provisions and clauses 52.2431 52.243[reserved] 52.2431 changesfixedprice.', 42059:'as prescribed in 43.205a1, insert the following clause. the 30day period may be varied according to agency procedures. changesfixed price', 42060:'aug 1987 a thecontracting officer may at any time, by written order,andwithout notice tothe sureties, if any, make changes within', 42061:'the general scope of this contract in any one or more of the following: 1 drawings, designs, or specifications when', 42062:'the supplies to be furnished are to be specially manufactured for the government in accordance with the drawings, designs, or', 42063:'specifications. 2 method of shipment or packing. 3 place of delivery. b if anysuch changecauses an increaseor decrease inthe cost', 42064:'of, or the timerequired for, performance of any part ofthe work under this contract, whether or not changed by the', 42065:'order, the contracting officer shall make an equitable adjustment in the contract price, the delivery schedule, or both, and shall', 42066:'modify the contract. c the contractor must assert its right to an adjustment under this clause within 30 days from', 42067:'the date of receipt of the written order. however, if the contracting officer decides that the facts justify it,the contracting', 42068:'officermay receive and act upon a proposal submitted before final payment of the contract. d if the contractor’s proposal includes', 42069:'the cost of property made obsolete orexcess by the change, the contracting officer shall have the right to prescribe the', 42070:'manner of thedisposition of the property. e failure toagreeto any adjustment shall be a dispute under the disputes clause. however,', 42071:'nothingin this clause shall excuse the contractor from proceeding with the contract as changed. end of clause alternate i apr', 42072:'1984. if the requirement is for services, other than architectengineer or other professional services, and no supplies are to be', 42073:'furnished, substitute the following paragraph a for paragraph a of the basic clause: a thecontracting officer may at any time,', 42074:'by written order,andwithout notice tothe sureties, if any, make changes within the general scope of this contract in any one', 42075:'or more of the following: 1 description of services to be performed. 2 timeof performance i.e., hours of the day,', 42076:'days ofthe week, etc.. 3 place of performance of the services. alternate ii apr 1984. if the requirement is for', 42077:'services other than architectengineer services, transportation, or research and development and supplies are to be furnished, substitute the following paragraph', 42078:'a for paragraph a of the basic clause: a thecontracting officer may at any time, by written order,andwithout notice tothe', 42079:'sureties, if any, make changes within the general scope of this contract in any one or more of the following:', 42080:'1 description of services to be performed. 2 timeof performance i.e., hours of the day, days ofthe week, etc.. 3', 42081:'place of performance of the services. 4 drawings, designs, or specifications when the supplies to be furnished are to be', 42082:'specially manufactured for the government, in accordance with the drawings, designs, or specifications. 5 method of shipment or packing of', 42083:'supplies. 6 place of delivery. alternate iii apr 1984. if the requirement is for architectengineer or other professional services, substitute', 42084:'the following paragraph a for paragraph a of the basic clause and add the following paragraph f: a thecontracting officer', 42085:'may at any time, by written order,andwithout notice tothe sureties, if any, make changes within the general scope of this', 42086:'contract in the services to be performed. f no services for which anadditional cost or fee will be charged by', 42087:'the contractor shall be furnishedwithout the prior written authorization of the contracting officer. 52.2453 52.2432 federal acquisition regulation alternate iv', 42088:'apr 1984. if the requirement is for transportation services, substitute the following paragraph a for paragraph a of the basic', 42089:'clause: a thecontracting officer may at any time, by written order,andwithout notice tothe sureties, if any, make changes within the', 42090:'general scope of this contract in any one or more of the following: 1 specifications. 2 work or services. 3', 42091:'place of origin. 4 place of delivery. 5 tonnageto beshipped. 6 amount of governmentfurnishedproperty. alternate v apr 1984. if the', 42092:'requirement is for research and development and it is desired to include the clause, substitute the following paragraphs a1 and', 42093:'a3 and paragraph b for paragraphs a1 and a3 and paragraph b of the basic clause: a 1 drawings, designs,', 42094:'or specifications. 3 place of inspection, delivery, oracceptance. b if anysuch changecauses an increaseor decrease inthe cost of, or time', 42095:'required for, performing this contract, whether or notchanged by theorder,the contracting officershallmake an equitable adjustment in 1 the contract price,', 42096:'the time of performance, or both; and 2 otheraffected termsof the contract, and shall modify the contract accordingly. 52.2432 changescostreimbursement.', 42097:'as prescribed in 43.205b1, insert the following clause. the 30day period may be varied according to agency procedures. changescostreimbursement aug', 42098:'1987 a thecontracting officer may at any time, by written order,andwithout notice tothe sureties, if any, make changes within the', 42099:'general scope of this contract in any one or more of the following: 1 drawings, designs, or specifications when the', 42100:'supplies to be furnished are to be specially manufactured for the government in accordance with the drawings, designs, or specifications.', 42101:'2 method of shipment or packing. 3 place of delivery. b if anysuch changecauses an increaseor decrease inthe estimated cost', 42102:'of, or thetime required for, performance of any part ofthe work under this contract, whether or not changed by the', 42103:'order, or otherwise affects any other termsandconditions of this contract, thecontracting officer shall make anequitable adjustmentin the 1 estimated cost,', 42104:'delivery or completion schedule, or both; 2 amount of any fixed fee; and 3 otheraffected termsandshallmodify thecontract accordingly. c the', 42105:'contractor must assert its right to an adjustment under this clause within 30 days from the date of receipt of', 42106:'the written order. however, if the contracting officer decides that the facts justify it,the contracting officermay receive and act upon', 42107:'a proposal submitted before final payment of the contract. d failure to agree to any adjustment shall be a disputeunder', 42108:'thedisputes clause. however, nothing in this clause shall excuse the contractor from proceeding with the contract as changed. e notwithstanding', 42109:'the terms and conditions of paragraphs a and b of this clause, the estimated cost of this contract and, if', 42110:'this contract is incrementally funded, the funds allotted for the performance of this contract, shall not be increased or considered', 42111:'to be increased except by specific written modification of the contract indicating the new contract estimated cost and, if this', 42112:'contract is incrementally funded, the new amount allotted to the contract. until this modification is made, the contractor shall not', 42113:'be obligated to continue performance or incur costs beyond the point established in the limitation of cost or limitation of', 42114:'funds clause of this contract. end of clause 52.2454 subpart 52.2 text of provisions and clauses 52.2433 alternate i apr', 42115:'1984. if the requirement is for services and no supplies are to be furnished, substitute the following paragraph a for', 42116:'paragraph a of the basic clause: a thecontracting officer may at any time, by written order,andwithout notice tothe sureties, if', 42117:'any, make changes within the general scope of this contract in any one or more of the following: 1 description', 42118:'of services to be performed. 2 timeof performance i.e., hours of the day, days ofthe week, etc.. 3 place of', 42119:'performance of the services. alternate ii apr 1984. if the requirement is for services and supplies are to be furnished,', 42120:'substitute the following paragraph a for paragraph a of the basic clause: a thecontracting officer may at any time, by', 42121:'written order,andwithout notice tothe sureties, if any, make changes within the general scope of this contract in any one or', 42122:'more of the following: 1 description of services to be performed. 2 timeof performance i.e., hours of the day, days', 42123:'ofthe week, etc.. 3 place of performance of the services. 4 drawings, designs, or specifications when the supplies to be', 42124:'furnished are to be specially manufactured for the government in accordance with the drawings, designs, or specifications. 5 method of', 42125:'shipment or packing of supplies. 6 place of delivery. alternate iii apr 1984. if the requirement is for construction, substitute', 42126:'the following paragraph a for paragraph a of the basic clause: a thecontracting officer may at any time, by written', 42127:'order,andwithout notice tothe sureties, if any, make changes within the general scope of this contract in the plans and specifications', 42128:'or instructions incorporated in the contract. alternate iv [reserved] alternate v apr 1984. if the requirement is for research and', 42129:'development, and it is desired to include the clause, substitute the following paragraphs a1 and a3 for paragraphs a1 and', 42130:'a3 of the basic clause: a 1 drawings, designs, or specifications. 3 place of inspection, delivery, oracceptance. 52.2433changestimeandmaterials or laborhours.', 42131:'as prescribed in 43.205c, insert the following clause: changestimeandmaterials or laborhours sept 2000 a thecontracting officer may at any time,', 42132:'by written order,andwithout notice tothe sureties, if any, make changes within the general scope of this contract in any one', 42133:'or more of the following: 1 description of services to be performed. 2 timeof performance i.e., hours of the day,', 42134:'days ofthe week, etc.. 3 place of performance of the services. 4 drawings, designs, or specifications when the supplies to', 42135:'be furnished are to be specially manufactured for the government in accordance with the drawings, designs, or specifications. 5 method', 42136:'of shipment or packing of supplies. 6 place of delivery. 7 amount of governmentfurnishedproperty. b if any change causes an', 42137:'increase or decrease in any hourly rate, the ceiling price, or the time required for performance of any part of', 42138:'the workunder this contract, whether or not changedby the order, orotherwise affects any other terms and conditions of this contract,', 42139:'the contracting officer will make anequitable adjustmentin any one ormore of the following and will modify the contract accordingly: 1', 42140:'ceiling price. 2 hourly rates. 3 delivery schedule. 4 otheraffected terms. 52.2455 52.2434 federal acquisition regulation c the contractor shall', 42141:'assert its right to an adjustment under this clause within 30 days from the date of receipt of the written', 42142:'order. however, if the contracting officer decides that the facts justify it,the contracting officermay receive and act upon a proposal', 42143:'submitted before final payment of the contract. d failure to agree to any adjustment will be a dispute under the', 42144:'disputes clause. however, nothingin this clause excuses the contractor from proceeding with the contract as changed. end of clause 52.2434', 42145:'changes. as prescribed in 43.205d, insert the following clause: the 30day period may be varied according to agency procedures. changes', 42146:'june 2007 a thecontracting officer may, atany time, without noticeto the sureties,if any, by writtenorder designated or indicated to be', 42147:'a change order,makechangesin the work within the generalscope of the contract, including changes 1 in the specifications including drawings and', 42148:'designs; 2 in the method or manner of performance of the work; 3 in the governmentfurnished property or services; or', 42149:'4 directing acceleration in the performance of the work. b any other written or oral order which, as used in', 42150:'this paragraph b, includes direction, instruction, interpretation, or determination from the contracting officer thatcausesa change shall be treatedas a change', 42151:'orderunder this clause; provided,that thecontractor gives thecontracting officer writtennotice stating 1 the date, circumstances, and source of the order; and', 42152:'2 that the contractor regards the order as a change order. c except as provided in this clause,no order, statement,', 42153:'orconduct of the contractingofficer shall be treated as a change under this clause or entitle the contractor to an equitable', 42154:'adjustment. d if anychange underthis clause causesan increase ordecrease in the contractor’s cost of, or the time required for,the performanceof', 42155:'any part of the work underthiscontract, whether ornot changed by any such order, the contracting officer shall make anequitable adjustmentandmodify', 42156:'thecontract in writing. however, except for an adjustment basedon defective specifications, no adjustment for any change under paragraph b of', 42157:'this clause shall be made for any costs incurred more than 20 days before the contractor gives written notice as', 42158:'required. in the case of defective specifications for which the government is responsible, the equitable adjustment shall include any increased', 42159:'cost reasonably incurred by the contractor in attempting to comply with the defective specifications. e the contractor must assert its', 42160:'right to an adjustment under this clause within 30 days after 1 receipt of a written change order under paragraph', 42161:'a of this clause or 2 the furnishing of a written notice under paragraph b of this clause, by submitting', 42162:'to the contracting officer a written statement describing the generalnature andamount of the proposal, unless this period is extended by', 42163:'the government. the statement of proposal for adjustment may be included in the notice under paragraph b of this clause.', 42164:'f no proposal by the contractor for an equitable adjustment shall be allowed if asserted after final payment under this', 42165:'contract. end of clause 52.2435 changes and changed conditions. as prescribed in 43.205e, insert the following clause: changes and changed', 42166:'conditions apr 1984 a thecontracting officer may, in writing,order changes in the drawings and specifications within the general scope of', 42167:'the contract. b the contractor shall promptly notify thecontracting officer,in writing, ofsubsurfaceor latent physicalconditions differing materially fromthose indicated inthis contractor', 42168:'unknown unusual physical conditions atthe site before proceeding with the work. 52.2456 subpart 52.2 text of provisions and clauses 52.2437', 42169:'c if changes under paragraph a or conditions under paragraph b increase or decrease the cost of, or time required', 42170:'for performingthe work, thecontracting officer shall make anequitable adjustment see paragraph d upon submittal of a proposal for adjustment hereafter', 42171:'referred to as proposal by the contractor before final payment under the contract. d the contracting officer shall not make', 42172:'anequitable adjustmentunder paragraph b unless 1 the contractor has submitted and the contractingofficer has received the requiredwritten notice; or 2', 42173:'the contracting officer waives the requirement for the written notice. e failure to agree to any adjustment shall be a', 42174:'dispute under the disputes clause. end of clause 52.2436 change order accounting. as prescribed in 43.205f,thecontractingofficermayinsertaclause,substantiallythesameasfollows: change order accountingapr 1984', 42175:'the contracting officer may requirechange order accounting whenever the estimatedcost of a change or seriesof related changes exceeds $100,000. the', 42176:'contractor, for each change or seriesof related changes, shall maintain separate accounts, by job order or other suitable accounting procedure,', 42177:'of all incurred segregable, direct costs less allocable credits of work, both changed and not changed, allocable to the change.', 42178:'the contractor shall maintain such accounts until the parties agree to an equitable adjustment for thechangesordered by the contracting officer', 42179:'or thematter is conclusively disposed of in accordance with the disputes clause. end of clause 52.2437 notification of changes. as', 42180:'prescribed in 43.107, insert the following clause: notification of changes jan 2017 a definitions. contracting officer, as usedin this clause,', 42181:'does notinclude anyrepresentative of the contracting officer. specifically authorized representative sar, as used inthisclause, means any person the contracting officer', 42182:'hasso designated by written notice a copy of which shall be provided to the contractor which shall refer to this', 42183:'paragraph and shall beissuedto thedesignated representative beforethe sar exercises such authority. b notice. the primary purpose of this clause is', 42184:'to obtain prompt reporting of government conduct that the contractor considers to constitute a change to this contract. except for', 42185:'changes identified as such in writing and signed by the contracting officer, thecontractor shall notify the administrative contracting officer in', 42186:'writing promptly, within to be negotiated calendar days from the date that the contractor identifies any government conduct including actions,', 42187:'inactions, and written or oral communications that the contractor regards as a change to the contract terms and conditions. on', 42188:'the basisof the most accurate information available tothe contractor, the notice shall state 1 the date, nature, and circumstances of', 42189:'the conduct regarded as a change; 2 the name, function, andactivity of each government individual and contractor official oremployee involved', 42190:'in or knowledgeable about such conduct; 3 the identification of any documents and the substance of any oral communication involved', 42191:'in such conduct; 4 in the instance ofalleged acceleration ofscheduled performance or delivery, the basis uponwhich it arose; 5 the', 42192:'particular elements of contract performance for which the contractor may seek an equitable adjustment under this clause, including iwhatline items', 42193:'have been ormay be affected bythe alleged change; ii what labor or materials or both have been or may be', 42194:'added, deleted, or wasted by the alleged change; iii to the extent practicable,what delay and disruption inthe mannerandsequenceof performance and', 42195:'effect on continued performance have been or may be caused by the alleged change; iv what adjustments to contract price,', 42196:'delivery schedule, and other provisionsaffected by theallegedchange are estimated; and 52.2457 52.2437 federal acquisition regulation 6 the contractor’s estimate of', 42197:'thetime by which the government must respond to the contractor’s notice to minimize cost, delay or disruption of performance. c', 42198:'continued performance. following submission of the notice required by paragraph b of this clause, the contractor shall diligently continue performance', 42199:'of this contract to the maximum extent possible in accordance with its terms and conditions as construedby the contractor,unlessthe notice', 42200:'reports a direction of thecontracting officer or a communication from asar of the contracting officer, in either of whichevents thecontractor', 42201:'shall continue performance;provided, however, that if the contractor regards the direction or communication as a change as described in paragraphbof', 42202:'this clause, notice shall be given in the manner provided. all directions, communications, interpretations, orders and similar actions of the', 42203:'sar shall be reduced towriting promptly and copies furnished to the contractor and to the contracting officer. the contracting officer', 42204:'shall promptly countermandanyaction which exceeds the authority ofthe sar. d government response. the contracting officer shall promptly,within to be negotiated', 42205:'calendar days after receipt ofnotice,respond to the notice in writing. in responding, the contractingofficer shall either 1 confirm that the', 42206:'conduct of which the contractor gave notice constitutes a change and when necessary direct the mode of further performance; 2', 42207:'countermand any communication regarded as a change; 3 deny that the conduct of which the contractor gave notice constitutes a', 42208:'change and when necessary direct the mode of further performance; or 4 in the event the contractor’s notice information is', 42209:'inadequate to make a decision under paragraphs d1, 2, or 3 of this clause, advise the contractor what additional information', 42210:'is required, and establish the date by which it should be furnished and the date thereafter by which the government', 42211:'will respond. e equitable adjustments. 1ifthecontractingofficerconfirmsthatgovernmentconducteffectedachangeasalleged by the contractor, and the conduct causes anincrease or decreasein thecontractor’s cost of, or', 42212:'the timerequired for, performance of any part of the work under this contract, whether changed or not changed by such', 42213:'conduct, an equitable adjustment shall be made i in the contract price or delivery schedule or both; and iiin such', 42214:'other provisions of the contract as may beaffected. 2 the contract shall bemodified inwriting accordingly. inthe case of drawings, designs', 42215:'or specificationswhich are defective and for which the government is responsible, the equitable adjustment shall include the cost and time', 42216:'extension for delay reasonably incurred by the contractor in attempting to comply with the defective drawings, designs or specifications before', 42217:'the contractor identified, or reasonably should have identified, such defect. when the cost of property made obsolete orexcess as aresult', 42218:'ofa change confirmed by thecontracting officer underthis clause is included in the equitable adjustment, thecontracting officer shall have therightto prescribe', 42219:'themanner of disposition of the property. the equitable adjustment shall not include increased costs or timeextensions for delay resulting from', 42220:'the contractor’s failure toprovide notice orto continueperformance as provided, respectively, in paragraphs b and cof this clause. note: the phrases', 42221:'contract price and cost wherever they appear in the clause, may be appropriately modified to apply to costreimbursement or incentive', 42222:'contracts, or to combinations thereof. end of clause 52.2458 subpart 52.2 text of provisions and clauses 52.2442 52.244[reserved] 52.2441 [reserved]', 42223:'52.2442 subcontracts. as prescribed in 44.204a1, insert the following clause: subcontracts jun 2020 a definitions. as used in this clause', 42224:'approved purchasing system means a contractor’s purchasing systemthat has been reviewed and approved in accordance with part 44ofthefederalacquisitionregulationfar. consent to', 42225:'subcontract meansthe contracting officer’s written consent for the contractor to enter into a particular subcontract. subcontract meansanycontract,asdefinedinfar subpart 2.1, entered', 42226:'into by a subcontractor to furnish supplies or services for performance of the prime contract or a subcontract. it includes,', 42227:'but is not limited to, purchase orders, and changes and modifications to purchase orders. b when this clause is included', 42228:'in a fixedprice type contract, consent to subcontract is required only on unpriced contract actions including unpriced modifications or unpriced', 42229:'delivery orders, and only if required in accordance with paragraph c or d of this clause. c if the contractor', 42230:'does not have an approved purchasing system, consent to subcontract is required for any subcontract that 1 is of the', 42231:'costreimbursement, timeandmaterials, or laborhour type; or 2 is fixedprice and exceeds i for a contract awarded by the department of', 42232:'defense, the coast guard, or the national aeronautics and space administration, the greater of the simplified acquisition threshold, as definedin', 42233:'far 2.101 on the date of subcontract award, or 5 percent of the total estimated cost of the contract; or', 42234:'ii for a contract awarded by a civilian agency other than the coast guard and the national aeronautics and space', 42235:'administration, either thesimplified acquisition threshold,as defined in far 2.101 on the date of subcontract award, or 5 percent of the', 42236:'total estimated cost of the contract. d if the contractor hasan approved purchasing system, the contractor neverthelessshallobtain the contracting officer’s', 42237:'written consent before placing the following subcontracts: e 1thecontractorshallnotifythecontractingofficerreasonablyinadvanceofplacinganysubcontractor modification thereof for which consent is required under paragraph b, c,', 42238:'or d of this clause, including the following information: i a description of the supplies or services to be subcontracted.', 42239:'ii identification of the type of subcontract to be used. iii identification of theproposed subcontractor. iv the proposed subcontract price.', 42240:'v the subcontractor’s current, complete, and accurate certified cost or pricing data and certificate ofcurrent cost or pricing data, if', 42241:'required by other contract provisions. vi the subcontractor’s disclosure statementor certificate relating to cost accounting standards whensuch data are required', 42242:'by other provisions of this contract. vii a negotiation memorandum reflecting a the principal elements of the subcontract price negotiations;', 42243:'b the most significant considerations controlling establishment of initial or revised prices; c the reason certified cost or pricing data', 42244:'were or were not required; dthe extent, ifany, to which thecontractor didnot rely on the subcontractor’s certified cost orpricing data', 42245:'in determining the price objective and in negotiating the final price; e theextent to whichitwas recognized inthe negotiation that the', 42246:'subcontractor’s certified cost or pricing data were not accurate, complete, orcurrent; the action taken by the contractorandthe subcontractor; and the', 42247:'effect of any such defective data on the total price negotiated; 52.2459 52.2443 federal acquisition regulation f the reasonsforany significant', 42248:'differencebetween the contractor’s price objective and the price negotiated; and g a complete explanation of the incentive fee or profit', 42249:'plan when incentives are used. the explanation shall identify each critical performance element, management decisions used to quantify each incentive', 42250:'element, reasons for the incentives, and a summary of all tradeoffpossibilities considered. 2 the contractor isnot required tonotify the contracting', 42251:'officer in advance of entering intoany subcontract for which consent is not required under paragraph b, c, or d of', 42252:'this clause. f unless the consent orapproval specifically provides otherwise, neither consent by the contracting officer to any subcontract norapproval', 42253:'of thecontractor’s purchasing system shall constitute adetermination 1 of the acceptability of any subcontract terms or conditions; 2 of the', 42254:'allowability of any cost under this contract; or 3 to relieve the contractor of anyresponsibilityforperforming this contract. g no subcontract', 42255:'or modification thereof placed under this contract shall provide for payment on a costplusapercentage ofcost basis, and any fee payable', 42256:'under costreimbursement type subcontracts shall not exceed the fee limitations in far 15.4044c4i. h the contractor shall give the contracting', 42257:'officer immediate written notice of any actionor suit filed and prompt notice ofanyclaim made against the contractor by any subcontractor', 42258:'or vendor that, in the opinion of the contractor, may result in litigation related in any way to this contract,', 42259:'with respect to which the contractor may be entitled to reimbursement from the government. ithegovernmentreservestherighttoreviewthecontractor’spurchasingsystemassetforthinfar subpart 44.3. j paragraphs c', 42260:'and e of this clause do not apply to the following subcontracts, which were evaluated during negotiations: end of clause', 42261:'alternate i june 2020. as prescribed in 44.204 a2, substitute the following paragraph e2 for paragraph e2 of the basic', 42262:'clause: e2 if the contractor has an approved purchasing system and consent is not required under paragraph c, or d', 42263:'of this clause, the contractor nevertheless shall notify thecontracting officer reasonablyin advanceof entering into any i costplus fixedfee subcontract, or', 42264:'ii fixedprice subcontract that exceeds either the simplified acquisition threshold, as defined in far 2.101 on the date of subcontract', 42265:'award, or 5 percent of the total estimated cost of this contract. the notification shall include the information required by', 42266:'paragraphs e1i through iv of this clause. 52.2443 [reserved] 52.2444subcontractors and outside associates and consultants architectengineer services. as prescribed in', 42267:'44.204b, insert the following clause: subcontractors and outside associates and consultants architectengineer services aug 1998 any subcontractors and outside associates', 42268:'or consultants required by the contractor in connection with the services covered by the contract will be limited to individuals', 42269:'or firms that were specifically identified and agreed to during negotiations. the contractor shall obtain the contracting officer’s written consent', 42270:'beforemaking any substitution for these subcontractors, associates, or consultants. end of clause 52.2445 competition in subcontracting. as prescribed in 44.204c,', 42271:'insert the following clause: competition in subcontracting aug 2024 52.2460 fac 202501 november 12, 2024 subpart 52.2 text of provisions', 42272:'and clauses 52.2446 a the contractor shall select subcontractors including suppliers on a competitive basis to the maximum practical extent', 42273:'consistent with the objectives and requirements of the contract. b if the contractor is an approved mentor under the dod', 42274:'mentorprotégé program 10 u.s.c. 4902, the contractor may award subcontracts under this contract on a noncompetitive basis to its protégés.', 42275:'end of clause 52.2446subcontracts for commercial products and commercial services. as prescribed in 44.403, insert the following clause: subcontracts for', 42276:'commercial products and commercial services nov 2024 a definitions. as used in this clause— commercial product, commercial service and commercially', 42277:'available offtheshelf item have the meanings contained in federalacquisition regulation far 2.101. subcontract includes a transfer of commercial products or', 42278:'commercial services between divisions, subsidiaries, or affiliates of the contractor or subcontractor at any tier. b to the maximumextent practicable,', 42279:'the contractor shall incorporate, andrequire itssubcontractors at all tiers to incorporate, commercial products, commercial services, or nondevelopmental items as components', 42280:'of items to be supplied under this contract. c 1 the contractor shall insert the following clauses in subcontracts for', 42281:'commercial products or commercial services: i 52.20313, contractor code of business ethics and conduct nov 2021 41 u.s.c. 3509, if', 42282:'the subcontract exceeds the thresholdspecified in far 3.1004a on the date of subcontract award, and has a performance period of', 42283:'more than 120 days. in altering this clause to identify the appropriate parties, all disclosures of violation of the civil', 42284:'false claims act or offederal criminal law shall bedirected to the agency office of the inspector general, with a copy', 42285:'to the contracting officer. ii 52.20315, whistleblower protections under the american recovery and reinvestment act of 2009 jun 2010 section', 42286:'1553 of pub. l. 1115,if the subcontract is funded under the recovery act. iii 52.20317, contractor employee whistleblower rights nov', 42287:'2023 41 u.s.c. 4712; this clause does not apply tocontracts of dod, nasa, the coast guard, or applicable elementsof the', 42288:'intelligence community—see far 3.900a. iv 52.20319, prohibition on requiring certain internal confidentiality agreements or statements jan 2017. v 52.20421, basic', 42289:'safeguarding of covered contractor information systems nov 2021 , other than subcontracts for commercially availableofftheshelf items, ifflow down is required', 42290:'in accordance with paragraph c of far clause 52.20421. vi 52.20423, prohibition on contracting for hardware, software, and services developed', 42291:'or provided by kaspersky lab covered entities dec 2023 section 1634of pub. l. 11591. vii 52.20425, prohibition on contracting for', 42292:'certaintelecommunicationsand video surveillance services or equipment. nov 2021 section 889a1a of pub. l. 115232. viii 52.20427, prohibition on a bytedance', 42293:'covered application jun 2023 section 102 of division r of pub. l. 117328. ix a 52.20430, federal acquisition supply chain', 42294:'security act orders—prohibition. dec 2023 pub. l. 115– 390, title ii. b alternate i dec 2023 of 52.20430. x 52.2198,', 42295:'utilization of small business concerns feb 2024 15 u.s.c.637d2 and 3, if the subcontract offers further subcontracting opportunities. ifthe subcontractexcept', 42296:'subcontracts to small business concernsexceeds the applicable thresholdspecified in far 19.702a on the date of subcontract award, the subcontractor must', 42297:'include 52.2198 in lowertier subcontracts that offer subcontracting opportunities. xi 52.22221, prohibition of segregated facilities apr 2015. xii 52.22226, equal', 42298:'opportunity sept 2016 e.o.11246. xiii 52.22235, equal opportunity for veterans jun 2020 38 u.s.c.4212a; xiv 52.22236, equal opportunity for workers', 42299:'with disabilities jun 202029 u.s.c.793. xv 52.22237, employment reports on veterans jun 2020 38 u.s.c.4212. 52.2461 fac 202501 november 12,', 42300:'2024 52.2446 federal acquisition regulation xvi 52.22240, notification of employee rights under the national labor relations act dec 2010 e.o.', 42301:'13496, if flow down isrequired in accordancewith paragraph f of far clause 52.22240. xvii a 52.22250,combatingtraffickinginpersonsnov 2021 22 u.s.c. chapter', 42302:'78 and e.o. 13627. b alternate i mar 2015 of 52.2225022 u.s.c. chapter 78 and e.o. 13627. xviii 52.22255,minimumwagesforcontractorworkersunderexecutiveorder14026 jan', 42303:'2022, if flow down is required in accordance with paragraph k of far clause 52.22255. xix 52.22262, paid sick leave', 42304:'under executive order 13706 jan 2022 e.o. 13706, if flow down is required in accordance withparagraph m of far clause', 42305:'52.22262. xx a 52.2243,privacytrainingjan 2017 5 u.s.c. 552a if flow down is required in accordance with 52.2243f. b alternate i', 42306:'jan 2017 of 52.2243, if flow down is required in accordance with 52.2243f and the agency specifies that only its', 42307:'agencyprovided training is acceptable. xxi 52.22526, contractors performing private security functions outside the united states oct 2016 section 862, as', 42308:'amended, of the national defense authorization act for fiscal year 2008;10 u.s.c. subtitle a,partv, subpartg note. xxii 52.23240, providing accelerated', 42309:'payments to small business subcontractors mar 2023 , if flow down is required in accordance with paragraphc of far clause', 42310:'52.23240. xxiii 52.2401, prohibition on unmanned aircraft systems manufactured or assembled by american security drone actcovered foreign entities nov 2024', 42311:'sections 18211826,pub. l. 11831, 41 u.s.c. 3901 note prec.. xxiv 52.24764, preference for privately owned u.s.flag commercial vessels nov 2021', 42312:'46 u.s.c. 55305 and 10 u.s.c.2631, ifflow down is requiredin accordance with paragraph d of far clause 52.24764. 2 while', 42313:'not required, the contractor may flow down to subcontracts for commercial products or commercial services a minimal number of additional', 42314:'clauses necessary to satisfy its contractual obligations. d the contractor shall include the terms of this clause, including this paragraph', 42315:'d, in subcontracts awarded under this contract. end of clause 52.2462 subpart 52.2 text of provisions and clauses 52.2451 52.245[reserved]', 42316:'52.2451government property. as prescribed in 45.107a, insert the following clause: government property sep 2021 a definitions. as used in this', 42317:'clause cannibalizemeans toremove parts fromgovernmentpropertyforuse or for installation on other government property. contractoracquired property means property acquired, fabricated, or otherwise', 42318:'provided by the contractor for performing a contract, and to which the government has title. contractor inventory means 1 any', 42319:'property acquired by and in the possession of a contractor or subcontractor under a contract for which title is vested', 42320:'in the government and which exceeds the amounts needed to complete full performance under the entire contract; 2 any property', 42321:'that the government is obligated or has the option to take over under any type of contract, e.g., as a', 42322:'result either of any changes in the specifications or plans thereunder or of the termination of the contract or subcontract', 42323:'thereunder, before completion of the work, for the convenience or at the option of the government; and 3 governmentfurnished property', 42324:'that exceeds the amounts needed to complete full performance under the entire contract. contractor’s managerial personnel means the contractor’s directors,', 42325:'officers,managers, superintendents, or equivalent representativeswho have supervision or direction of 1 all orsubstantially all of the contractor’s business; 2 all', 42326:'orsubstantially all of the contractor’s operationat any oneplant or separate location; or 3 a separate and complete major industrial operation.', 42327:'demilitarization means rendering a product unusablefor, and not restorable to, the purpose for which it wasdesigned oris customarily used. discrepancies', 42328:'incident to shipment meansany differences e.g., count orconditionbetween the items documented to have been shipped and items actually received. equipment', 42329:'means a tangible item that is functionally complete for its intended purpose, durable, nonexpendable, and needed for the performance of', 42330:'a contract. equipment is not intended for sale, and does not ordinarily lose its identity or become acomponent partof another', 42331:'article when put into use. equipmentdoes not include material, real property, special test equipment or special tooling. governmentfurnished property means', 42332:'property in the possession of, or directly acquired by,the government and subsequently furnished to the contractor for performance of a', 42333:'contract. governmentfurnished property includes, but is not limitedto, spares and property furnished for repair, maintenance, overhaul, or modification. governmentfurnished property', 42334:'also includes contractoracquired property if the contractoracquired property is a deliverable under a cost contract when accepted by the government', 42335:'for continued use under the contract. government property means all property owned or leased by the government. government property includes', 42336:'both governmentfurnished and contractoracquiredproperty. government property includes material,equipment, special tooling, specialtest equipment, and realproperty. government property doesnot include intellectual property', 42337:'and software. loss of government property means unintended, unforeseen or accidental loss, damage or destruction to government property that reduces', 42338:'the government’s expectedeconomic benefits ofthe property. loss of government property doesnot include purposeful destructive testing, obsolescence, normal wear and tear', 42339:'or manufacturing defects. loss of government property includes, but is not limited to 1 items that cannot be found after', 42340:'a reasonable search; 2 theft; 3 damage resulting in unexpected harm to property requiring repair to restore the item to', 42341:'usable condition; or 4 destruction resulting from incidents that render the item useless for its intended purpose or beyond economical', 42342:'repair. material means property that may be consumed or expended during the performance of a contract, component parts of a', 42343:'higher assembly, or items that lose their individual identitythroughincorporation into an end item. material does not include equipment, special tooling,special', 42344:'test equipment or real property. 52.2463 52.2451 federal acquisition regulation nonseverable means property that cannot be removed after construction or', 42345:'installation without substantial loss of value or damage to the installed property or to the premises where installed. precious metals', 42346:'means silver, gold, platinum, palladium,iridium, osmium, rhodium, and ruthenium. production scrap means unusable material resulting from production,engineering, operations and maintenance,', 42347:'repair,and research and development contract activities. production scrap may have value when remelted or reprocessed, e.g., textile and metal clippings,', 42348:'borings, and faulty castings and forgings. property means all tangible property,bothreal and personal. property administrator means an authorized representativeof the', 42349:'contracting officer appointed inaccordancewith agency procedures, responsible for administering the contract requirements and obligations relating to government property in the', 42350:'possession ofa contractor. property records means the records created and maintained by the contractor in support of its stewardship responsibilities', 42351:'for themanagement of government property. provide means to furnish, as in governmentfurnished property, or toacquire, as in contractoracquiredproperty. real property', 42352:'see federal management regulation 10271.20 41 cfr 10271.20. sensitive property means property potentially dangerous to the public safety or security', 42353:'if stolen, lost, or misplaced, or that shall be subject to exceptional physical security, protection, control, andaccountability. examples include weapons,', 42354:'ammunition, explosives, controlled substances, radioactive materials, hazardous materials or wastes, or precious metals. unit acquisition cost means 1 for governmentfurnished', 42355:'property,the dollar value assigned by the governmentandidentified in the contract; and 2 for contractoracquired property, the cost derived from the', 42356:'contractor’s records that reflect consistently applied generally accepted accounting principles. b property management. 1 the contractor shall have a system', 42357:'of internal controls to manage control, use, preserve, protect, repair, and maintain government property in its possession. the systemshallbe adequateto', 42358:'satisfy the requirements of this clause. in doing so, the contractor shall initiate and maintain the processes, systems, procedures, records,', 42359:'and methodologies necessaryforeffective and efficientcontrol of governmentproperty. the contractor shall disclose any significant changes to its property management system to', 42360:'the property administrator prior to implementation of the changes. the contractor may employ customary commercial practices, voluntary consensus standards, or', 42361:'industryleading practices and standardsthat provide effective and efficient government property management that are necessary and appropriate for the performance of', 42362:'this contract except where inconsistent with law or regulation. 2 the contractor’s responsibility extends from the initial acquisition and receiptof', 42363:'property, through stewardship, custody,anduse until formally relieved of responsibilityby authorized means, includingdelivery,consumption,expending, sale as surplus property, or other disposition, or', 42364:'via a completed investigation, evaluation, and final determination for lost property. this requirement applies toallgovernmentpropertyunder thecontractor’s accountability, stewardship, possession or', 42365:'control, including its vendors or subcontractors see paragraph f1v of this clause. 3 the contractor shall include the requirements of', 42366:'this clause in all subcontracts under which government property is acquired or furnished for subcontract performance. 4 the contractor shall', 42367:'establish and maintain procedures necessary to assess its property management system effectiveness and shall perform periodicinternalreviews, surveillances, self assessments, oraudits.', 42368:'significant findings or results ofsuch reviews and auditspertaining to governmentpropertyshallbe made available to the property administrator. c use of government', 42369:'property. 1 thecontractor shall use government property, either furnished or acquired under this contract, only for performing this contract, unless', 42370:'otherwise provided for in this contract or approved by the contracting officer. 2 modifications or alterations of government property are', 42371:'prohibited, unless they are i reasonable and necessary due to the scope of work under this contract or its terms', 42372:'and conditions; ii required for normal maintenance; or iii otherwise authorized by thecontracting officer. 3 the contractor shall not cannibalize', 42373:'government property unless otherwise provided for in this contract or approved by thecontracting officer. d governmentfurnished property. 1 the government', 42374:'shall deliver to the contractor the governmentfurnished property described in this contract. the government shall furnish related data and information', 42375:'needed for the intended use of the property. thewarranties of suitability of use and timelydelivery of governmentfurnished property do not', 42376:'apply to property acquired or fabricated by the contractor as contractoracquired property and subsequently transferred to another contract with this', 42377:'contractor. 52.2464 subpart 52.2 text of provisions and clauses 52.2451 2 the delivery and/or performance dates specified in this contract', 42378:'are based upon the expectation that the governmentfurnished property will be suitable for contract performance and will be delivered to', 42379:'the contractor by the dates stated in the contract. iif the property is not delivered to thecontractor bythe dates stated', 42380:'in the contract,the contracting officershall, uponthe contractor’stimely writtenrequest, consideran equitable adjustment tothe contract. iiin the event property is received bythe', 42381:'contractor, or for governmentfurnished property after receiptand installation,in a condition not suitable for itsintended use, the contracting officer shall,upon thecontractor’s', 42382:'timely written request, advise the contractor on a course of action to remedy the problem. such action may include repairing,', 42383:'replacing, modifying, returning, or otherwise disposingof the property at the government’s expense. upon completionof the required actions, thecontracting officer shall', 42384:'consider an equitable adjustment to the contract see also paragraph f1iia of this clause. iii the government may, atits option,', 42385:'furnish property in an asis condition. the contractor will begiven the opportunity to inspect such property prior to the property', 42386:'being provided. in such cases, the government makes no warranty with respect to the serviceability and/or suitability of the property', 42387:'for contract performance. any repairs, replacement, and/or refurbishment shall be at the contractor’s expense. 3 ithecontractingofficermaybywrittennotice,atanytime a increase or decrease', 42388:'the amount of governmentfurnished property under this contract; b substitute other governmentfurnished property for the property previously furnished, to be', 42389:'furnished, or to be acquired by the contractor for the government under this contract; or c withdraw authority to use', 42390:'property. iiuponcompletion of any actions under paragraphd3i ofthis clause, and the contractor’s timely written request, the contractingofficer shall consider anequitable', 42391:'adjustment to thecontract. e title to government property. 1 all governmentfurnished property and all property acquired by the contractor, title', 42392:'to which vests in the government under this paragraph collectively referred to as government property, is subject to the provisions', 42393:'of this clause. the government shall retaintitle to all governmentfurnishedproperty. title togovernment property shall not be affected by itsincorporation into', 42394:'orattachment to any property not owned by the government, nor shall government property become afixture orloseits identity as personal property', 42395:'by being attached to any real property. 2 title vests in the governmentforall property acquired or fabricatedby the contractor in', 42396:'accordance withthe financing provisions or other specific requirements for passage of title in the contract. under fixed price type contracts,', 42397:'in the absence of financing provisions or other specific requirements for passage of title in the contract, the contractor retains', 42398:'title to all property acquired by the contractor for use on the contract, except for property identified as a deliverable', 42399:'end item. if a deliverable item is to be retained by the contractor for use after inspection and acceptance by', 42400:'the government, it shall be made accountable to thecontract through a contract modification listing theitem as governmentfurnished property. 3 title', 42401:'under costreimbursement or timeandmaterial contracts or costreimbursable line items under fixed price contracts.i title toall property purchased by thecontractor for', 42402:'which the contractor is entitled to be reimbursed as a direct item of cost under this contractshallpass to andvest in', 42403:'thegovernmentupon thevendor’s delivery of such property. iititleto all other property, the cost of which is reimbursable to the contractor,shallpass to', 42404:'andvest in the government upon a issuance of the property for use in contract performance; b commencement of processing of', 42405:'the property for use in contract performance; or c reimbursement of the cost of the property by the government, whichever', 42406:'occurs first. f contractor plans and systems. 1 contractors shall establish and implement property management plans, systems, and procedures at', 42407:'the contract, program, site or entity level to enable the following outcomes: i acquisition of property. the contractor shall document', 42408:'that all property was acquired consistent with its engineering, production planning, and property control operations. ii receipt of government property.', 42409:'the contractor shall receive government property and document the receipt, record the information necessary to meet the record requirements of', 42410:'paragraph f1iiia1 through 5 of this clause, identify as government owned in a manner appropriate to the type of property', 42411:'e.g., stamp, tag, mark, or other identification, and manage any discrepancies incident to shipment. a governmentfurnished property. the contractor shall', 42412:'furnish a written statement to the property administrator containing all relevant facts, such as cause or condition and a recommended', 42413:'courses of action, if overages, shortages, ordamagesand/or other discrepancies are discovered upon receipt of governmentfurnishedproperty. 52.2465 52.2451 federal acquisition regulation', 42414:'b contractoracquired property. the contractor shall take all actions necessary to adjust for overages, shortages, damage and/or other discrepancies discovered', 42415:'upon receipt, in shipment of contractoracquired property from a vendor orsupplier, so as to ensure the proper allocability and allowability', 42416:'of associated costs. iii records of government property. the contractor shall create and maintain records of all government property accountable', 42417:'to the contract, including governmentfurnished and contractoracquired property. a property records shall enable a complete, current, auditable record of all', 42418:'transactions and shall, unless otherwiseapproved bythe property administrator, contain the following: 1 the name, part number and description, national stock', 42419:'number if needed for additional item identification tracking and/or disposition, and other data elements as necessary and required in accordance', 42420:'with the terms and conditions of the contract. 2 quantity received or fabricated, issued, and balanceonhand. 3 unit acquisition cost.', 42421:'4 uniqueitem identifier or equivalent if available and necessary for individual item tracking. 5 unit of measure. 6 accountable contract', 42422:'number or equivalent code designation. 7 location. 8 disposition. 9 posting reference and date of transaction. 10 date placed in', 42423:'service if required in accordance with the terms and conditions of the contract. b use of a receipt and issue', 42424:'system for government material. whenapproved by the propertyadministrator, the contractor may maintain, in lieu of formal property records, a file', 42425:'of appropriately crossreferenced documents evidencing receipt, issue, and use of material that is issued for immediate consumption. iv physical inventory.', 42426:'the contractor shall periodically perform, record, and disclose physical inventory results. a final physical inventory shall be performed upon contract', 42427:'completion or termination. the property administrator may waive this final inventory requirement, depending on the circumstances e.g., overallreliability of thecontractor’s', 42428:'system or the property is to be transferred to a followon contract. v subcontractor control. a the contractor shall award', 42429:'subcontracts that clearly identify items to be provided and the extent of any restrictions or limitations on their use. the', 42430:'contractor shall ensure appropriate flow down of contract terms and conditions e.g.,extent of liabilityforloss of government property. b the contractor', 42431:'shall assure its subcontracts are properly administered and reviews are periodically performed to determine the adequacy of the subcontractor’s property', 42432:'management system. vi reports. the contractor shall have a process to create and provide reports of discrepancies, loss of government', 42433:'property,physical inventory results, auditsandselfassessments,corrective actions, andother propertyrelatedreportsas directed by thecontracting officer. vii relief of stewardship responsibility and liability. the contractor', 42434:'shall have a process to enable the prompt recognition, investigation,disclosure and reporting of loss of government property, including losses that', 42435:'occur at subcontractor or alternate site locations. a this process shall include the corrective actions necessary to prevent recurrence. b', 42436:'unless otherwise directed by the property administrator,the contractor shall investigate and report tothe government all incidents of property loss as', 42437:'soon as the facts become known. such reports shall, at a minimum, contain the following information: 1 date of incident', 42438:'if known. 2 the data elements required under f1iiia. 3 quantity. 4 accountablecontract number. 5 a statement indicating current or', 42439:'future need. 6 unit acquisition cost, or if applicable, estimated sales proceeds, estimated repair or replacement costs. 7 all known', 42440:'interests in commingled material of which includes government material. 8 cause and corrective action taken or to be taken to', 42441:'prevent recurrence. 9 a statement that the government will receive compensation coveringthe lossof government property, in the event the contractor', 42442:'was or will be reimbursed or compensated. 10 copies of all supporting documentation. 11 last known location. 52.2466 subpart 52.2', 42443:'text of provisions and clauses 52.2451 12 a statement that the property did or did not contain sensitive, export controlled,', 42444:'hazardous, or toxic material, and that the appropriate agencies and authorities were notified. c unless the contract provides otherwise, the', 42445:'contractor shall be relieved of stewardship responsibility and liability for property when 1 suchpropertyis consumed orexpended, reasonably and properly, or', 42446:'otherwise accounted for, in the performance of the contract, including reasonable inventory adjustments of material as determined by the property', 42447:'administrator; 2 property administrator grants relief of responsibility and liability for loss of government property; 3 property is delivered or', 42448:'shipped from the contractors plant, under government instructions, except when shipment is to a subcontractor or other location of the', 42449:'contractor; or 4 property is disposed of in accordance with paragraphs j and k of this clause. viii utilizing government', 42450:'property. a the contractor shall utilize, consume, move, and store government property only as authorized under this contract. the contractor', 42451:'shall promptly disclose and report government property in its possession that is excess to contract performance. b unless otherwise authorized', 42452:'in this contract or by the property administrator the contractor shall not commingle government material with material not owned by', 42453:'the government. ix maintenance.the contractorshallproperlymaintaingovernment property. the contractor’s maintenance program shall enable the identification, disclosure, and performance of normal and', 42454:'routine preventative maintenance and repair. thecontractor shall disclose and report to the property administrator the need for replacement and/or capital', 42455:'rehabilitation. x property closeout. the contractor shall promptly perform and report to the property administrator contract property closeout, to include', 42456:'reporting, investigating and securing closure of all loss of government property cases; physically inventorying all property upon termination or completion', 42457:'of this contract; and disposing of items at the time they are determined to be excess to contractual needs. 2', 42458:'the contractor shall establish and maintain government accounting source data, as may be required by this contract, particularly in the', 42459:'areas of recognition ofacquisitions, loss ofgovernmentproperty, and dispositionof material and equipment. g systems analysis. 1 thegovernment shall have access tothe', 42460:'contractor’spremises and all government property, at reasonable times,forthe purposes of reviewing, inspecting and evaluatingthe contractor’spropertymanagementplans, systems, procedures, records, and supporting', 42461:'documentation thatpertains togovernmentproperty. this access includesall site locations and, withthe contractor’sconsent,all subcontractor premises. 2 records of government property shall be', 42462:'readily available to authorized government personnel and shall be appropriately safeguarded. 3 should it be determined by the government that', 42463:'thecontractor’s or subcontractor’s property management practicesare inadequate ornot acceptable for the effectivemanagementand control ofgovernment property under this contract, or present', 42464:'an undue risk to the government, the contractor shall prepare a corrective action plan when requested by the property administrator', 42465:'and take all necessary corrective actions as specified by the schedule within the corrective action plan. h contractor liability for', 42466:'government property. 1 unless otherwise provided for in the contract, the contractor shall not be liable for loss of government', 42467:'property furnished or acquired under this contract, except when any one of the following applies i the risk is covered', 42468:'by insurance or the contractor is otherwise reimbursed to the extent of such insurance or reimbursement. the allowability of insurance', 42469:'costs shall be determined in accordance with 31.20519. ii loss of government property that is the result of willful misconduct', 42470:'or lack of good faith on the part of the contractor’smanagerial personnel. iii the contracting officer has, in writing, revoked', 42471:'the government’s assumption ofrisk for loss of government property due to adeterminationunder paragraph g of this clause thatthe contractor’spropertymanagementpractices are', 42472:'inadequate, and/or present an undue risk to the government, and the contractor failed to take timely corrective action. if the', 42473:'contractor can establish by clear and convincing evidence that the loss of government property occurred while the contractor had adequatepropertymanagement', 42474:'practices or the loss didnot resultfrom the contractor’s failure to maintain adequate property management practices, the contractor shall not be', 42475:'held liable. 52.2467 52.2451 federal acquisition regulation 2 the contractor shall take all reasonable actions necessary to protect the property', 42476:'from further loss. the contractor shall separatethe damaged and undamaged property,place all the affectedpropertyin the bestpossible order, andtake such other', 42477:'action as the property administrator directs. 3 the contractor shall do nothing to prejudice the government’s rights to recover against', 42478:'third parties for any loss of government property. 4 the contractor shall reimburse the governmentforloss of government property, to the', 42479:'extent thatthe contractor is financially liable for such loss, as directed by the contractingofficer. 5 upon therequest of thecontracting officer,the', 42480:'contractor shall, atthe government’s expense,furnish to the government all reasonable assistance and cooperation, including the prosecution of suit and the', 42481:'execution of instruments of assignmentin favor of the governmentin obtaining recovery. i equitable adjustment. equitable adjustments under this clause shall', 42482:'be made in accordance with the procedures of the changes clause. however, the government shall not be liable for breach', 42483:'ofcontract for the following: 1 any delayin delivery of governmentfurnished property. 2 delivery of governmentfurnished property in a condition not', 42484:'suitable for its intended use. 3 an increase, decrease, or substitution of governmentfurnished property. 4 failure to repair or replace', 42485:'government property for which the government is responsible. j contractor inventory disposal. except as otherwise provided for in this contract,', 42486:'the contractor shall not dispose of contractor inventory until authorizedto do so by the plant clearance officer or authorizing official.', 42487:'1 predisposal requirements. i if the contractor determines that the property has the potential to fulfill requirements underothercontracts,the contractor, in', 42488:'consultation withthe property administrator, shall request that thecontracting officer transfer the property to the contract in question, or provide authorization', 42489:'for use, as appropriate. in lieuof transferring theproperty, thecontracting officer may authorize the contractor to credit the costs of contractoracquired', 42490:'property material only to the losing contract, and debit the gaining contract with the corresponding cost, when such material is', 42491:'needed for useon another contract. propertyno longer needed shall be considered contractor inventory. iifor any remainingcontractoracquired property, the contractormay purchasethe', 42492:'property at the unit acquisition cost if desired or make reasonable efforts to return unused property to the appropriate supplier', 42493:'at fair market value less, if applicable, a reasonable restocking fee that is consistent with the supplier’s customary practices. 2', 42494:'inventory disposal schedules. i absent separate contract terms and conditions for property disposition, and provided thepropertywas not reutilized, transferred, or', 42495:'otherwise disposed of, the contractor, as directed by the plant clearanceofficer or authorizing official, shall use standard form 1428, inventory', 42496:'disposal schedule or electronic equivalent, to identify and report a governmentfurnished property that is no longer required for performance of', 42497:'this contract; b contractoracquired property,to whichthe government has obtained titleunder paragraph e of this clause, which is no longer required', 42498:'for performance of that contract; and c termination inventory. ii the contractor may annotate inventory disposal schedules to identify property', 42499:'the contractor wishes to purchase from the government, in the event that thepropertyis offeredforsale. iii separate inventory disposal schedules are', 42500:'required for aircraft in any condition, flight safety critical aircraft parts,and otheritems as directed by the plant clearance officer. iv', 42501:'the contractor shall providethe information required by far 52.2451f1iii along with the following: aany additionalinformationthat may facilitate understandingof the property’s', 42502:'intended use. b for workinprogress, the estimated percentage of completion. c for precious metals in raw or bulk form, the', 42503:'type of metal and estimated weight. d for hazardous material or property contaminated with hazardous material, the type of hazardous', 42504:'material. e for metals in mill productform, theform, shape, treatment, hardness, temper, specification commercial or government and dimensions thickness, width', 42505:'and length. v property with the same description, condition code, and reporting location may be grouped in a single line', 42506:'item. vi scrap should be reported by lot along with metal content, estimated weight and estimated value. 3 submission requirements.', 42507:'i the contractor shall submit inventory disposal schedules to the plant clearance officer no laterthan a30 days following the contractor’s', 42508:'determination thata property item is nolonger required for performance of this contract; 52.2468 subpart 52.2 text of provisions and clauses', 42509:'52.2451 b 60 days, or such longer period asmay be approved by theplant clearance officer, following completion of contract deliveries', 42510:'or performance; or c 120 days, or such longer period as may be approvedby the termination contractingofficer, following contract termination', 42511:'in whole or in part. iiunless theplantclearance officerdeterminesotherwise, the contractor need notidentify orreport production scrap on inventory disposal schedules, and', 42512:'may process and dispose of production scrap in accordance with its own internal scrap procedures. the processing and disposal of', 42513:'other types of governmentowned scrap will be conducted in accordance with the terms and conditions of the contractor plant clearance', 42514:'officer direction, asappropriate. 4 corrections. the plantclearance officer may i reject a schedule for cause e.g., contains errors, determined to', 42515:'be inaccurate; and ii require the contractor to correct an inventory disposal schedule. 5 postsubmission adjustments. the contractor shall notifythe', 42516:'plant clearance officer at least 10 working days in advance of its intent to remove an item from an approved', 42517:'inventory disposal schedule. upon approval of the plant clearance officer, orupon expiration ofthe notice period, the contractor may make the', 42518:'necessary adjustments to the inventory schedule. 6 storage. i the contractor shall store the property identified on an inventory disposal', 42519:'schedule pending receipt of disposal instructions. the government’s failure tofurnish disposal instructions within 120 days following acceptance of an inventory', 42520:'disposal schedule may entitle the contractor to an equitable adjustment for costs incurred to store such property on or afterthe', 42521:'121 st day. iithe contractor shall obtainthe plant clearance officer’s approval toremove property from the premises where the property is', 42522:'currently located prior to receipt of final disposition instructions. if approval is granted, any costs incurred by the contractor to', 42523:'transport or store the property shall not increase the price or fee of any government contract. the storage area shall', 42524:'be appropriate for assuring the property’s physicalsafety and suitability for use. approval does not relieve the contractor of any liability', 42525:'for such property under this contract. 7 disposition instructions. i the contractor shall prepare for shipment, deliver f.o.b. origin, or', 42526:'dispose of contractor inventory as directed by the plant clearance officer. unlessotherwise directed by thecontracting officer or by the plant', 42527:'clearanceofficer, the contractor shall removeanddestroyany markings identifyingthe property as u.s. governmentowned property prior to its disposal. iithe contracting officer mayrequire', 42528:'thecontractor to demilitarize thepropertyprior to shipment or disposal. in such cases, the contractor may be entitled to an equitable adjustment', 42529:'under paragraph i of this clause. 8 disposal proceeds. as directedby the contracting officer, the contractorshallcredit the net proceedsfrom the', 42530:'disposal of contractor inventory tothe contract, or tothe treasury of theunited statesas miscellaneous receipts. 9 subcontractor inventory disposal schedules. the', 42531:'contractor shall require its subcontractors to submit inventory disposal schedules to the contractor in accordance with the requirements of paragraph', 42532:'j3 of this clause. k abandonment of government property. 1 the government shall not abandon sensitive property or termination inventory', 42533:'without the contractor’s written consent. 2 the government, upon notice tothe contractor, mayabandonanynonsensitive property in place, at whichtime all obligations', 42534:'of the government regarding such property shall cease. 3 absent contract terms andconditions to the contrary, thegovernment may abandon partsremoved', 42535:'and replaced from property as a resultof normal maintenance actions, or removedfrom property asa result of the repair, maintenance, overhaul,', 42536:'or modification process. 4 the government has no obligation to restore or rehabilitate thecontractor’s premises under any circumstances; however, if', 42537:'governmentfurnished property iswithdrawnor is unsuitable for the intended use, or if other government property is substituted, then the equitable adjustment', 42538:'under paragraph i of this clause may properly include restoration or rehabilitation costs. l communication. all communications under this clause', 42539:'shall be in writing. m contracts outside the united states. if this contract is to be performed outside of the', 42540:'united states and its outlying areas, the words government and governmentfurnished wherever they appear in this clause shall be construed', 42541:'as unitedstates government and united states governmentfurnished, respectively. end of clause alternate i apr 2012. as prescribed in 45.107a2, substitute', 42542:'the following for paragraph h1 of the basic clause: 52.2469 52.2452 federal acquisition regulation h1 thecontractor assumes the risk of,', 42543:'and shall beresponsiblefor, any lossof government property upon its delivery to the contractor as governmentfurnishedproperty. however, the contractor is notresponsible', 42544:'for reasonable wear and tear to government property or for government property properly consumed in performing this contract. alternate ii', 42545:'apr 2012. as prescribed in 45.107 a3, substitute the following for paragraph e3 of the basic clause: e3title to property', 42546:'and other tangible personalproperty purchased withfundsavailable for research and having a unit acquisition cost of less than $5,000 shall vest', 42547:'in the contractor upon acquisition or as soon thereafter as feasible; provided thatthe contractor obtained the contracting officer’s approval before', 42548:'each acquisition. title to property purchased with funds available for research and having a unit acquisition cost of $5,000 or', 42549:'more shall vest as set forth in this contract. if title to property vests in the contractor under this paragraph,', 42550:'the contractor agrees that no costs shall be allowed for any depreciation, amortization, or useunder any existingor future governmentcontract orsubcontract', 42551:'thereunder. the contractor shall furnish the contracting officer alist of all property to which title isvested inthe contractor under this', 42552:'paragraph within 10days following the end ofthe calendar quarter during which it was received. vestingtitleunder this paragraph is subject to', 42553:'civil rights legislation, 42 u.s.c. 2000d. before title is vested and by signing this contract, the contractor accepts and agrees', 42554:'that no person in the united states or its outlying areasshall, onthe ground of race, color, or national origin,be excluded', 42555:'from participation in, be denied the benefits of, or be otherwise subjected to discrimination under this contemplated financial assistance title', 42556:'to property. 52.2452government property installation operation services. as prescribed in 45.107b, insert the following clause: government property installation operation services', 42557:'apr 2012 a this government property listed in paragraph e of this clause is furnished to the contractor in an', 42558:'asis, where is condition. the government makes no warranty regarding the suitability for use of the government property specified in', 42559:'this contract. the contractor shall be afforded the opportunity to inspect the government property asspecified in the solicitation. b the', 42560:'government bears no responsibility for repair or replacement of any lost government property. if any or all ofthe government property', 42561:'is lost or becomes no longer usable, the contractor shall be responsible for replacement of the property at contractor expense.', 42562:'the contractor shall have title to all replacement property and shall continue to be responsible for contract performance. c unless', 42563:'the contracting officer determines otherwise, the government abandons all rightsand title to unserviceable and scrappropertyresulting fromcontract performance. upon notification to', 42564:'the contracting officer, the contractorshallremove such property from the government premises and dispose of it at contractor expense. d except', 42565:'as provided in this clause, government property furnished under this contract shall be governed by the government property clause of', 42566:'this contract. e government property provided under this clause: end of clause 52.2470 subpart 52.2 text of provisions and clauses', 42567:'52.2459 52.2453 [reserved] 52.2454 [reserved] 52.2455 [reserved] 52.2456 [reserved] 52.2457 [reserved] 52.2458 [reserved] 52.2459 use and charges. as prescribed in', 42568:'45.107c, insert the following clause: use and charges apr 2012 a definitions. definitions applicable to this contract are provided in', 42569:'the clause at 52.2451, government property. additional definitions as used in this clause include: rental period means the calendar period', 42570:'during which government property is made available for nongovernmental purposes. rental time means the numberof hours,to the nearest wholehour,rented property', 42571:'is actually used for nongovernmental purposes. it includes time to set up the property for such purposes, perform required maintenance,', 42572:'and restore the property to its condition prior to rental less normal wear and tear. b use of government property.', 42573:'the contractor may use the government property without charge in the performance of 1 contracts with the government that specifically', 42574:'authorize such use without charge; 2 subcontracts of any tier undergovernmentprimecontracts ifthe contracting officerhaving cognizance of the prime contract i', 42575:'approves a subcontract specifically authorizing such use; or ii otherwise authorizes such use in writing; and 3 otherwork, if thecontracting', 42576:'officer specifically authorizes in writing use without chargeforsuch work. c rental. ifgranted writtenpermission by thecontracting officer,or if it is specifically', 42577:'provided for inthe schedule, the contractor may use the government property except material for a rental fee for work other', 42578:'than that provided in paragraph b of this clause. authorizing such use of the government property does not waive any', 42579:'rights of the government to terminate the contractor’s right to use the government property. therental fee shall bedetermined in accordancewith', 42580:'the following paragraphs. d general. 1rentalrequestsshallbesubmittedtotheadministrativecontractingofficeraco,identifytheproperty for which rental is requested, propose a rental period, and compute an estimated rentalcharge', 42581:'by using the contractor’s best estimate of rental time in the formulae described in paragraph e of this clause. 2', 42582:'the contractor shall not use government property for nongovernmental purposes, including independent research and development, until arental charge for real', 42583:'property, or estimated rental charge for other property, is agreed upon. rented property shall be used only on a noninterference', 42584:'basis. e rental charge.1 real property and associated fixtures. i the contractor shall obtain, at its expense, a property appraisal', 42585:'from anindependent licensed,accredited, or certified appraiser that computes amonthly, daily, or hourly rental rate for comparable commercial property. theappraisal may', 42586:'be used to compute rentalsunder this clause throughout its effective period or, if aneffective period is not stated inthe appraisal,', 42587:'for one year following the date the appraisalwas performed. the contractor shall submit the appraisal to the aco at least', 42588:'30 days prior to the date the property is needed for nongovernmental use. except as provided in paragraph e1iii of', 42589:'this clause, the aco shall use the appraisal rental rate to determine a reasonable rental charge. iirentalcharges shall bedetermined by', 42590:'multiplying the rental time by the appraisal rental rate expressedas arate per hour. monthly or daily appraisalrental rates shall be', 42591:'divided by 720 or 24, respectively, to determinean hourly rentalrate. iii when the acobelieves theappraisal rental rateis unreasonable, the aco', 42592:'shall promptly notify the contractor. the parties may agree on an alternative means for computing a reasonable rental charge. 52.2471', 42593:'52.2459 federal acquisition regulation iv the contractor shall obtain, at its expense, additional property appraisals in the same manner as', 42594:'provided in paragraph e1i if theeffective periodhas expired and the contractor desires the continued use of property for nongovernmental use.', 42595:'thecontractor mayobtainadditional appraisals within the effective period of thecurrent appraisal if themarketprices decrease substantially. 2 other government property. the contractor', 42596:'may elect tocompute therental charge using the appraisal method described in paragraph e1 of this clause subject to the constraints', 42597:'therein or the following formula in which rental time shall be expressed in increments of not less than one hour', 42598:'with portions of hours rounded to the next higher hour: the hourly rental chargeis calculated by multiplying 2 percentof the', 42599:'acquisition cost bythe hours of rentaltime, and dividingby 720. 3 alternative methodology. the contractor may request consideration of an alternative', 42600:'basis for computing the rental charge if it considers the monthly rental rate or a timebased rental unreasonable orimpractical. f', 42601:'rental payments. 1 rent is due 60 days following completion of the rental period or as otherwise specified in the', 42602:'contract. the contractor shall compute the rental due, and furnish records or other supporting datain sufficient detail to permit the', 42603:'aco to verifythe rental time and computation. payment shall bemadeby check payable to the treasurer of theunited statesand sentto the', 42604:'contractadministration officeidentified in this contract, unless otherwise specified bythe contracting officer. 2 interestwill be charged if payment isnot made by', 42605:'thedate specified in paragraphf1 of this clause. interest will accrue at the renegotiation board interest rate published in thefederal register', 42606:'semiannually on or about january 1 st and july 1 st for the period in which the rent is due.', 42607:'3 the government’s acceptance of any rental payment under this clause, inwhole or in part, shall not be construed as', 42608:'a waiver or relinquishment of any rightsitmay have against the contractorstemming fromthe contractor’sunauthorized use of government property or any other', 42609:'failure to perform this contract according to its terms. g use revocation. at any time during the rental period, the', 42610:'government may revoke nongovernmental use authorization and require the contractor,at the contractor’s expense, to returnthe property tothe government, restore the', 42611:'property to its prerental condition less normal wear and tear, or both. h unauthorized use. the unauthorized use of government', 42612:'property can subject a person to fines, imprisonment, or both, under 18 u.s.c. 641. end of clause 52.2472 subpart 52.2', 42613:'text of provisions and clauses 52.2462 52.246[reserved] 52.2461contractor inspection requirements. as prescribed in 46.301, insert the following clause: contractor inspection', 42614:'requirementsapr 1984 the contractor is responsible for performing or having performed all inspections and tests necessary to substantiate that the', 42615:'supplies or services furnished under this contract conform to contract requirements, including any applicable technical requirements for specified manufacturers’ parts.', 42616:'this clause takes precedence over any government inspection and testing required in the contract’s specifications, except for specializedinspections or tests', 42617:'specified to be performed solelyby the government. end of clause 52.2462 inspection of suppliesfixedprice. as prescribed in 46.302, insert the', 42618:'following clause: inspection of suppliesfixedprice aug 1996 a definition. supplies, as used in this clause, includes but is not limited', 42619:'to raw materials, components, intermediate assemblies, end products, and lots of supplies. b the contractor shall provide and maintain an', 42620:'inspection system acceptable to the government covering supplies under this contract and shall tender to the government for acceptance only', 42621:'supplies that have been inspected in accordance with the inspection system and have been found by the contractor to be', 42622:'in conformity with contract requirements. as part of the system, the contractor shall prepare records evidencing all inspections made under', 42623:'the system and the outcome. these records shall be kept complete and made available to the government during contract performance', 42624:'and for as long afterwards as the contract requires. the government may perform reviews and evaluations as reasonably necessary to', 42625:'ascertain compliance with this paragraph. these reviews and evaluations shall be conducted in a manner that will not unduly delay', 42626:'the contractwork. the right of review, whether exercised or not, does not relieve the contractorof the obligations under the contract.', 42627:'c the government has the right to inspect and test all supplies called for by the contract, to the extent', 42628:'practicable, at all places and times, including the period of manufacture, and in any event before acceptance. the government shall', 42629:'perform inspections and tests in a manner that will not unduly delay the work. the government assumes no contractual obligation', 42630:'to perform any inspection and test for the benefit of the contractor unless specifically set forth elsewhere in this contract.', 42631:'d if the government performsinspectionor test on the premisesof the contractor or a subcontractor,the contractor shall furnish, and shall require', 42632:'subcontractors to furnish, at no increase in contract price, all reasonable facilities and assistance for the safe and convenient performance', 42633:'of these duties. except as otherwise provided in the contract, the government shall bear theexpenseof government inspections ortests made at', 42634:'other than the contractor’s orsubcontractor’s premises; provided, that in case of rejection, the government shall not be liable for any', 42635:'reduction in the value of inspection or test samples. e 1whensuppliesarenotreadyatthetimespecifiedbythecontractorforinspectionortest,thecontractingofficer may charge to thecontractor the additionalcost of inspection or', 42636:'test. 2 the contracting officer may also charge thecontractor for anyadditional cost of inspection ortest when prior rejection makesreinspection or', 42637:'retest necessary. f the government has the right either to reject or to require correction of nonconforming supplies. supplies are', 42638:'nonconforming when they are defective in material or workmanship or are otherwise not in conformity with contract requirements. the government', 42639:'may reject nonconforming supplies with or without disposition instructions. g the contractor shall remove supplies rejectedor required tobe corrected. however,', 42640:'the contracting officer may require or permit correction in place, promptly after notice, byand atthe expense of the contractor. the', 42641:'contractor shall not tender for acceptance corrected or rejected supplies without disclosing the former rejection or requirement for correction, and,', 42642:'when required, shall disclose the corrective action taken. h if the contractor fails to promptly remove, replace, or correct rejected', 42643:'supplies that are required to be removed or to be replaced or corrected, the government may either 1by contract or', 42644:'otherwise, remove, replace, or correct the supplies 52.2473 52.2462 federal acquisition regulation and charge the cost to the contractor or', 42645:'2 terminate the contract for default. unlessthe contractor corrects or replaces thesupplies within the delivery schedule, the contracting officer may', 42646:'require their deliveryand make an equitable price reduction. failure to agree to a price reduction shall be a dispute. i', 42647:'1 if this contract provides for the performance of government quality assurance at source, and if requested by the government,', 42648:'the contractor shall furnish advance notification of the time i when contractor inspection or tests will be performed in accordance', 42649:'with the terms and conditions of the contract; and ii when the supplies will be ready for government inspection. 2', 42650:'the government’s request shall specifythe periodand method ofthe advancenotification and thegovernment representative to whom it shall be furnished. requests shall', 42651:'not require more than 2 workdays of advance notification if the government representative is in residence in the contractor’s plant,', 42652:'nor more than 7 workdays in other instances. jthe government shall accept or reject suppliesas promptly as practicable after delivery,', 42653:'unless otherwise provided in the contract. government failure to inspect and accept or reject the supplies shall not relieve the', 42654:'contractor from responsibility, norimpose liabilityon the government, for nonconformingsupplies. k inspections and tests by the government do not relieve the', 42655:'contractor of responsibility for defects or other failures to meet contract requirements discovered before acceptance. acceptance shall be conclusive, except', 42656:'for latent defects, fraud, gross mistakes amounting to fraud, or as otherwise provided in the contract. l if acceptance is', 42657:'not conclusive for any of the reasons in paragraph k hereof, the government, in addition to any other rightsand remedies', 42658:'provided by law,or under other provisions of this contract, shall have theright to require the contractor 1at no increase in', 42659:'contract price, to correct or replace the defective or nonconforming supplies at the original point of delivery or at the', 42660:'contractor’s plant at the contracting officer’selection,andin accordance with a reasonabledelivery schedule as maybe agreedupon between the contractorand the contracting officer;', 42661:'provided,that thecontracting officer may require a reduction in contract price if the contractor fails to meet such delivery schedule, or', 42662:'2 within a reasonable time after receipt by the contractor of notice of defects or nonconformance, to repay such portion', 42663:'of the contract as is equitable under the circumstances if the contracting officer elects not to require correction or replacement.', 42664:'when supplies arereturned to the contractor, the contractorshallbearthe transportation cost from theoriginal point ofdelivery to the contractor’splant and returnto the', 42665:'original point when that point isnot the contractor’s plant. if the contractorfails to perform or act as required in paragraph', 42666:'l1 or l2 of this clause and does not cure such failure within a period of 10 daysorsuch longer period', 42667:'as the contracting officer mayauthorize in writing after receipt of noticefrom the contracting officer specifying such failure, the government shall', 42668:'have the right by contract or otherwise to replace orcorrect such supplies and charge to the contractor thecost occasioned thegovernment', 42669:'thereby. end of clause alternate i july1985. if a fixedprice incentive contract is contemplated, substitute paragraphs g, h, and l', 42670:'below for paragraphs g, h, and l of the basic clause. g the contractor shall remove supplies rejectedor required tobe', 42671:'corrected. however, the contracting officer may require or permit correction in place, promptly after notice. the contractor shall not tender', 42672:'for acceptance corrected or rejected supplies without disclosing the former rejection or requirement for correction, and when required shall disclose', 42673:'the corrective action taken. cost of removal, replacement, or correction shall be considered a cost incurred, or to be incurred,', 42674:'in thetotal finalnegotiated cost fixed under the incentive price revision clause. however, replacements or corrections by the contractor after the', 42675:'establishment of the total final price shall be at no increase in the total final price. h if the contractor', 42676:'fails to promptly remove, replace, or correct rejected supplies that are required to be removed or to be replaced or', 42677:'corrected, the government may either 1by contract or otherwise, remove, replace, or correct the supplies and equitably reduce the targetprice', 42678:'or,if established, the total final price or2may terminate the contract for default. unless the contractor corrects or replaces the nonconforming', 42679:'supplieswithin thedelivery schedule, thecontracting officer may require their delivery and equitably reduce any target price or, if it is established,the', 42680:'total final contract price. failureto agree upon an equitable price reduction shall be a dispute. l if acceptance is not', 42681:'conclusive for any of the reasons in paragraph k hereof, the government, in addition to any other rightsand remedies provided', 42682:'by law,or under other provisions of this contract, shall have theright to require the contractor 1at no increase in any', 42683:'target price or, if it is established,the total final price of thiscontract, to corrector replace the defective or nonconformingsupplies at', 42684:'theoriginal point ofdelivery or at the contractor’s plantat the contracting officer’s election, and in accordance with a reasonable delivery schedule', 42685:'as may be agreed upon between the contractor and the 52.2474 subpart 52.2 text of provisions and clauses 52.2463 contracting', 42686:'officer; provided, that thecontracting officer may require areduction in any target price, or, ifitis established, the total final price of', 42687:'this contract, if the contractor fails to meet such delivery schedule; or 2 within a reasonable time after receipt by', 42688:'the contractor of notice of defects or nonconformance, to repay such portion of the total final price as is equitable', 42689:'underthe circumstances if thecontracting officer elects not to requirecorrection or replacement. when supplies are returned to the contractor,the contractor shall', 42690:'bear the transportation costs from the original point of delivery to the contractor’s plant and return to the original point', 42691:'when that point is not the contractor’s plant. if the contractor fails to perform or act as required in paragraph', 42692:'l1 or l2 of this clause and does not cure such failure within a period of 10 days or such', 42693:'longer period as the contracting officer may authorizein writing after receiptof notice from the contracting officer specifying such failure, the', 42694:'government shall have the right by contract or otherwise to replace or correct such supplies and equitably reduce any targetprice', 42695:'or,if it isestablished, thetotal finalprice of this contract. alternate ii july1985. if a fixedceilingprice contract with retroactive price redetermination is', 42696:'contemplated, substitute paragraphs g, h, and l below for paragraphs g, h, and l of the basic clause: g the', 42697:'contractor shall remove supplies rejectedor required tobe corrected. however, the contracting officer may require or permit correction in place, promptly', 42698:'after notice. the contractor shall not tender for acceptance corrected or rejected supplies without disclosing the former rejection or requirement', 42699:'for correction, and when required shall disclose the corrective action taken. cost of removal, replacement, or correction shall be considered', 42700:'a cost incurred, or to be incurred, when redetermining the prices under the price redetermination clause. however, replacements or corrections', 42701:'by the contractor after the establishment of the redetermined prices shall be at no increase in the redetermined price. h', 42702:'if the contractor fails to promptly remove, replace, or correct rejected supplies that are required to be removed or to', 42703:'be replaced or corrected, the government may either 1by contract or otherwise, remove, replace, or correct the supplies and equitably', 42704:'reduce the initial contractprices or, ifestablished, theredetermined contract prices or 2 terminate thecontract for default. unless the contractor corrects or', 42705:'replaces the nonconforming supplies within the delivery schedule, the contracting officer may requiretheir delivery andequitably reduce the initial contract price', 42706:'or, ifitis established, the redetermined contract prices. failure to agree upon an equitable price reduction shall be a dispute. l', 42707:'if acceptance is not conclusive for any of the reasons in paragraph k hereof, the government, in addition to any', 42708:'other rightsand remedies provided by law,or under other provisions of this contract, shall have theright to require the contractor 1at', 42709:'no increase in the initialcontract prices, or,if it isestablished, theredeterminedprices of this contract, to corrector replace thedefective ornonconforming supplies atthe', 42710:'original point of delivery or at the contractor’s plant at the contracting officer’s election, andin accordance with a reasonabledelivery schedule', 42711:'as maybe agreedupon between the contractor and the contractingofficer; provided, thatthe contracting officermay require a reduction in the initial contract', 42712:'prices, or, ifitis established, the redetermined prices ofthis contract, if thecontractor fails to meetsuch deliveryschedule; or 2 within a reasonable', 42713:'time after receipt by the contractor of notice of defects or nonconformance, to repay such portion of the initial contract', 42714:'prices, or, ifitis established, the redetermined prices of this contract, asis equitable under the circumstances if the contracting officer elects', 42715:'not to require correctionor replacement. when suppliesare returned to the contractor, thecontractor shall bearthe transportation costsfrom the originalpointof delivery to', 42716:'thecontractor’s plant and return to the original point when that point is not the contractor’s plant. if the contractor fails', 42717:'to perform or act as required in paragraph l1 or l 2 of this clause and does not cure such', 42718:'failure within a period of 10 days or such longer period as the contracting officermay authorize in writing after receipt', 42719:'ofnotice fromthe contracting officerspecifying such failure,the government shall have the right by contract or otherwise to replace or correct such', 42720:'supplies and equitably reduce the initial contract prices, or, if it is established,the redetermined pricesof this contract. 52.2463 inspection of', 42721:'suppliescostreimbursement. as prescribed in 46.303, insert the following clause in solicitations and contracts for supplies, or services that involve the', 42722:'furnishing of supplies, when a costreimbursement contract is contemplated: inspection of suppliescostreimbursement may 2001 a definitions. as used in this', 42723:'clausecontractor’s managerial personnel means any ofthe contractor’sdirectors, officers, managers,superintendents, or equivalent representatives who have supervision or direction of 1 all', 42724:'orsubstantially all of the contractor’s business; 2 all orsubstantially all of the contractor’s operationat a plant orseparate location where the', 42725:'contractis being performed; or 52.2475 52.2464 federal acquisition regulation 3 a separate and complete major industrial operation connected with performing', 42726:'this contract. supplies includes but is not limited to raw materials, components, intermediate assemblies, end products, lots of supplies, and,', 42727:'when the contractdoes not include the warranty of data clause, data. b the contractor shall provide and maintain an inspection', 42728:'system acceptable to the government covering the supplies, fabricating methods, and special tooling under this contract. complete records of all', 42729:'inspection work performed by the contractor shall be maintained and made available to the government during contract performance and for', 42730:'as long afterwards as the contract requires. c the government has the right to inspect and test the contract supplies,', 42731:'to the extent practicable at all places and times, including the period of manufacture, and in any event before acceptance.', 42732:'the government may also inspect the plant or plants of the contractor or any subcontractor engaged in the contract performance.', 42733:'the government shall perform inspections and tests in a manner that will not unduly delay the work. d if the', 42734:'government performsinspectionor test on the premisesof the contractor or a subcontractor,the contractor shall furnish and shall require subcontractors to furnish', 42735:'all reasonable facilities and assistance for the safe and convenient performance of these duties. e unless otherwise specified in the', 42736:'contract, the government shall accept supplies as promptly as practicable after delivery, and supplies shall be deemed accepted 60 daysafter', 42737:'delivery, unless accepted earlier. f at any time during contract performance, but no later than 6 months or such other', 42738:'time as may be specified in the contract after acceptance of the supplies to be delivered under the contract, the', 42739:'government may require the contractor to replace or correct any suppliesthat arenonconforming at timeof delivery. suppliesare nonconforming whenthey are defective', 42740:'in material or workmanship or are otherwise not in conformity with contract requirements. except as otherwise provided in paragraph h', 42741:'of this clause, the cost of replacement or correction shall be included in allowable cost, determined as provided in the', 42742:'allowable cost and payment clause, but no additional fee shall be paid. the contractor shall not tender for acceptance supplies', 42743:'required to be replaced or corrected without disclosing the former requirement for replacement or correction, and, when required, shall disclose', 42744:'the corrective action taken. g 1 if the contractor fails to proceed with reasonable promptness to perform required replacement or', 42745:'correction, the government may ibycontract orotherwise, perform thereplacement or correction andcharge to the contractorany increased cost or make an equitable', 42746:'reduction in any fixed fee paid or payable under the contract; ii require delivery of undelivered supplies at an equitable', 42747:'reduction in any fixed fee paid or payable under the contract; or iii terminate the contract for default. 2 failure', 42748:'to agree on the amountof increased cost to be chargedto the contractoror to the reduction in the fixed fee shall', 42749:'be a dispute. h notwithstanding paragraphs f and g of this clause, the government may at any time require the', 42750:'contractor to correct or replace, without cost to the government, nonconforming supplies, if the nonconformances are due to 1 fraud,', 42751:'lackof good faith, or willful misconduct on the part of the contractor’s managerial personnel; or 2 the conduct of one', 42752:'or more ofthe contractor’semployees selected or retained by the contractor after any of the contractor’smanagerial personnel hasreasonable groundsto believe that', 42753:'the employee is habitually careless or unqualified. i this clause applies in the same manner to corrected or replacement supplies', 42754:'as to supplies originally delivered. j the contractor shall have no obligation or liability under this contract to replace supplies', 42755:'that were nonconforming at thetime ofdelivery,exceptas provided in this clause or asmay be otherwiseprovidedin thecontract. k except as otherwise specified', 42756:'inthe contract, the contractor’s obligation to corrector replace governmentfurnished property shall begoverned by the clause pertaining togovernment property. end of', 42757:'clause 52.2464 inspection of servicesfixedprice. as prescribed in 46.304, insert the following clause: inspection of servicesfixedprice aug 1996 a definition.services,', 42758:'as used in this clause, includes services performed, workmanship, and material furnished or utilized in the performance of services. 52.2476', 42759:'subpart 52.2 text of provisions and clauses 52.2466 b the contractor shall provide and maintain an inspection system acceptable to', 42760:'the government covering the services under this contract. complete records of all inspection work performed by the contractor shall be', 42761:'maintained and made available to the government during contract performance and for as long afterwards as the contract requires. c', 42762:'the government has the right to inspect and test all services called for by the contract, to the extent practicable', 42763:'at all times and places during the term of the contract. the government shall perform inspections and tests in a', 42764:'manner that will not unduly delay the work. d if the government performsinspections or tests on thepremises ofthe contractor or', 42765:'a subcontractor, the contractor shall furnish, and shall require subcontractors to furnish, at no increase in contract price, all reasonable', 42766:'facilities and assistance for the safe and convenient performance of these duties. e if any of the services do not', 42767:'conform with contract requirements, the government may require the contractor to perform the services again in conformity with contract requirements,', 42768:'at no increase in contract amount. when the defects in services cannot be corrected by reperformance, the government may 1', 42769:'require the contractor to take necessary action to ensure that future performance conforms to contract requirements; and 2 reduce the', 42770:'contract price to reflect the reduced value of the services performed. f if the contractor fails to promptly perform the', 42771:'services again or to take the necessary action to ensure future performance in conformity with contract requirements, the government may', 42772:'1 by contract or otherwise,performthe services and charge to the contractor any cost incurred bythe government that is directly related', 42773:'to the performance of such service; or 2 terminate thecontract for default. end of clause 52.2465 inspection of servicescostreimbursement. as', 42774:'prescribed in 46.305, insert the following clause in solicitations and contracts for services, or supplies that involve the furnishing of', 42775:'services, when a costreimbursement contract is contemplated: inspection of servicescostreimbursement apr 1984 a definition.services, as used in this clause, includes', 42776:'services performed, workmanship, and material furnished or used in performing services. b the contractor shall provide and maintain an inspection', 42777:'system acceptable to the government covering the services under this contract. complete records of all inspection work performed by the', 42778:'contractor shall be maintained and made available to the government during contract performance and for as long afterwards as the', 42779:'contract requires. c the government has the right to inspect and test all services called for by the contract, to', 42780:'the extent practicable at all places and times during the term of the contract. the government shall perform inspections and', 42781:'tests in a manner that will not unduly delay the work. d if any of the services performed do not', 42782:'conform with contract requirements, the government may require the contractor to perform the services again in conformity with contract requirements,', 42783:'for no additional fee. when the defects in services cannot be corrected by reperformance, the government may 1 require the', 42784:'contractor to take necessary action to ensure that future performance conforms to contract requirements; and 2 reduce any fee payable', 42785:'under the contract to reflect the reduced value of the services performed. e if the contractor fails to promptly perform', 42786:'the services again or take the action necessary to ensure future performance in conformity with contract requirements, the government may', 42787:'1 by contract or otherwise, perform the services and reduce any fee payable by an amount that is equitable under', 42788:'the circumstances; or 2 terminate thecontract for default. end of clause 52.2466inspectiontimeandmaterial and laborhour. as prescribed in 46.306, insert the', 42789:'following clause: 52.2477 52.2466 federal acquisition regulation inspectiontimeandmaterial and laborhour may 2001 a definitions. as used in this clausecontractor’s managerial', 42790:'personnel means any ofthe contractor’sdirectors, officers, managers,superintendents, or equivalent representatives who have supervision or direction of 1 all orsubstantially all', 42791:'of the contractor’s business; 2 all orsubstantially all of the contractor’s operationat any oneplant or separate location wherethe contract is', 42792:'being performed; or 3 a separate and complete major industrial operation connected with the performance of this contract. materials includes', 42793:'data whenthe contract does not includethe warrantyof data clause. b the contractor shall provide and maintain an inspection system acceptable', 42794:'to the government covering the material, fabricating methods, work, and services under this contract. complete records of all inspection work', 42795:'performed by the contractor shall be maintained and made available to the government during contract performance and for as long', 42796:'afterwards as the contract requires. c the government has the right to inspect and test all materials furnished and services', 42797:'performed under this contract, to the extent practicable at all places and times, including the period of performance, and in', 42798:'any event before acceptance. the government may also inspect the plant or plants of the contractor or any subcontractor engaged', 42799:'in contract performance. the government shall perform inspections and tests in a manner that will not unduly delay the work.', 42800:'d if the government performsinspectionor test on the premisesof the contractor or a subcontractor,the contractor shall furnish and shall require', 42801:'subcontractors to furnish all reasonable facilities and assistance for the safe and convenient performance of these duties. e unless otherwise', 42802:'specified in the contract, the government shall accept or reject services and materials at the place of delivery as promptly', 42803:'as practicable after delivery,andthey shall be presumed accepted60 days afterthe date of delivery, unless accepted earlier. f at any time', 42804:'during contract performance, but not later than 6 months or such other time as may be specified in the contract', 42805:'after acceptance of the services or materials last delivered under this contract, the government may require the contractor to replace', 42806:'or correct services or materials that at time of delivery failed to meet contract requirements. except as otherwise specified in', 42807:'paragraph h of this clause, the cost of replacement or correction shall be determined under the payments under timeandmaterials and', 42808:'laborhour contracts clause, butthe hourly rate for labor hours incurred in the replacement or correction shall be reduced to exclude', 42809:'that portion of the rate attributable to profit. the contractor shall not tender for acceptance materials and services required to', 42810:'be replaced or corrected without disclosing the former requirement for replacement or correction, and, when required, shall disclose the corrective', 42811:'action taken. g 1 if the contractor fails to proceed with reasonable promptness to perform required replacement or correction, and', 42812:'if the replacement or correction can be performed within the ceiling price or the ceiling price as increased by the', 42813:'government, the government may ibycontract orotherwise, perform thereplacement or correction, charge to thecontractor any increasedcost, or deduct such increased cost', 42814:'from any amounts paid or due under this contract; or iiterminatethis contractfordefault. 2 failure to agree to the amount of', 42815:'increased cost to be charged tothe contractor shall be a dispute. h notwithstanding paragraphs f and g of this clause,', 42816:'the government may at any time require the contractor to remedy by correction or replacement, without cost to the government,', 42817:'any failure by the contractor to comply with the requirements of this contract, if the failure is due to 1', 42818:'fraud, lackof good faith, or willful misconduct on the part of the contractor’s managerial personnel; or 2 the conduct of', 42819:'one or more ofthe contractor’semployees selected or retained by the contractor after any of the contractor’smanagerial personnel hasreasonable groundsto believe', 42820:'that the employee is habitually careless or unqualified. i this clause applies in the same manner and to the same', 42821:'extent to corrected or replacement materials or services as to materials and services originally delivered under this contract. j the', 42822:'contractor has no obligation or liability under this contract to correct or replace materials and services that at time of', 42823:'delivery do not meet contract requirements, except as provided in this clause or as may be otherwise specified in the', 42824:'contract. 52.2478 subpart 52.2 text of provisions and clauses 52.2467 k unlessotherwise specified in the contract, thecontractor’s obligationto correct or', 42825:'replace governmentfurnished property shall begoverned by the clause pertaining togovernment property. end of clause alternate i apr 1984. if government', 42826:'inspection and acceptanceare tobe performedat the contractor’s plant, paragraph e below may be substituted for paragraph e of the basic', 42827:'clause: e thegovernment shall inspect for acceptance all items otherthan aircraft to be flown away, ifany to be furnished underthis', 42828:'contractat the contractor’s plantor plantsspecified in the contract,or atany otherplant or plants approved for suchpurpose in writing by the contractingofficer.', 42829:'the contractorshallinform thecontract administration officeor contracting officerwhen the work is readyforinspection. thegovernment reserves the right to chargeto the contractor any', 42830:'additional cost of government inspection and test when items are not ready at the time for which inspection and test', 42831:'is requested by thecontractor. 52.2467inspectionof research anddevelopmentfixedprice. as prescribed in 46.307a, insert the following clause: inspection of research and developmentfixedpriceaug', 42832:'1996 a the contractor shall provide and maintain an inspection system acceptable to the government covering the work under this', 42833:'contract. complete records of all inspection work performed by the contractor shall be maintained and made available to the government', 42834:'during contract performance and for as long afterwards as the contract requires. b the government has the right to inspect', 42835:'and test all work called for by the contract, to the extent practicable at all places and times, including the', 42836:'period of performance, and in any event before acceptance. the government may also inspect the premises of the contractor or', 42837:'any subcontractor engaged in contract performance. the government shall perform inspections and tests in a manner that will not unduly', 42838:'delay the work. c if the government performs any inspection or test onthe premises of thecontractor or a subcontractor, the', 42839:'contractor shall furnish and shall require subcontractors to furnish, at no increase in contract price, all reasonable facilities and assistance', 42840:'for the safe and convenient performance of these duties. except as otherwise provided in the contract, the government shall bear', 42841:'the expense of government inspectionsor testsmadeat other thanthe contractor’sor subcontractor’s premises. d the government shall accept or reject the work', 42842:'as promptly aspracticable afterdelivery,unlessotherwise specified in thecontract. government failure to inspectandaccept or rejectthe work shall not relievethe contractor from responsibility,', 42843:'nor impose liability on thegovernment,fornonconforming work. work is nonconforming when it is defective in material or workmanship or is otherwise', 42844:'not in conformity with contract requirements. e the government has the right to reject nonconforming work. if the contractor fails', 42845:'or is unable to correct or to replace nonconformingworkwithin the delivery schedule or such later time as the contractingofficer may', 42846:'authorize,the contracting officermay accept theworkand make an equitable price reduction. failure to agree ona pricereduction shall be a dispute. f', 42847:'inspection and test by the government does not relieve the contractor from responsibility for defects or other failures to meet', 42848:'the contract requirements that may be discovered before acceptance. acceptance shall be conclusive, except for latent defects, fraud, gross mistakes', 42849:'amounting to fraud, or as otherwise specified in the contract. if acceptance is not conclusive for any of these causes,', 42850:'the government,in addition to anyother rights and remedies provided by law, or underotherprovisions of this contract, shall have the right', 42851:'to require the contractor 1 at no increase in contract price, to correct or replace the defective or nonconforming supplies', 42852:'work at the original point of delivery or at thecontractor’s plant at thecontracting officer’s election, and in accordancewith a reasonable', 42853:'delivery schedule as may beagreed upon between the contractor and the contractingofficer; provided, thecontracting officer may requirea reductionin contract price', 42854:'if the contractor fails to meet such delivery schedule;or 2 within areasonable time after the contractor’s receipt ofnotice of defectsor', 42855:'nonconformance, torepayment of such portion of the contract price as is equitable under the circumstances if the government elects not', 42856:'to require correction or replacement. when supplies workare is returned to the contractor,the contractor shall bear transportation costsfrom 52.2479 52.2468', 42857:'federal acquisition regulation theoriginal point ofdelivery to the contractor’s plant and return to the originalpointof delivery when that point isnot', 42858:'the contractor’splant. end of clause 52.2468inspectionof research anddevelopmentcostreimbursement. as prescribed in 46.308, insert the following clause in solicitations and contracts', 42859:'for research and development when a the primary objective is the delivery of end items other than designs, drawings, or', 42860:'reports; and b costreimbursement contract is contemplated; unless use of the clause is impractical and the clause prescribed in 46.309', 42861:'is considered to be more appropriate: inspection of research and development—costreimbursement may 2001 a definitions.as used in this clause— contractors', 42862:'managerial personnel means the contractorsdirectors, officers, managers,superintendents, or equivalent representatives who have supervision or direction of 1 all orsubstantially all', 42863:'of the contractor’s business; 2 all orsubstantially all of the contractor’s operationat any oneplant or separate location wherethe contract is', 42864:'being performed; or 3 a separateandcomplete major industrial operation connected with performingthiscontract.work includesdata when the contract does not include the', 42865:'warranty ofdata clause. b the contractor shall provide and maintain an inspection system acceptable to the government covering the work', 42866:'under this contract. complete records of all inspection work performed by the contractor shall be maintained and made available to', 42867:'the government during contract performance and for as long afterwards as the contract requires. c the government has the right', 42868:'to inspect and test all work called for by the contract, to the extent practicable at all places and times,', 42869:'including the period of performance, and in any event before acceptance. the government may also inspect the plant or plants', 42870:'of the contractor or its subcontractors engaged in the contract performance. the government shall perform inspections and tests in a', 42871:'manner that will not unduly delay the work. d if the government performsanyinspectionor test on the premisesof the contractor or', 42872:'a subcontractor, the contractor shall furnish and shall require subcontractors to furnish all reasonable facilities and assistance for the safe', 42873:'and convenient performance of these duties. e unless otherwise provided in the contract, thegovernmentshallaccept work as promptly as practicable after', 42874:'delivery, and work shall be deemed accepted 90 days after delivery, unless accepted earlier. f at any time during contract', 42875:'performance, but no later than 6 months or such other time as may be specified in the contract after acceptance', 42876:'of all of the end items other than designs, drawings, or reports to be delivered under the contract, thegovernment may', 42877:'require the contractor to replace orcorrect worknot meeting contractrequirements. time devoted to the replacement or correction of such work shall', 42878:'not be included in the computation of the above time period. except as otherwise provided in paragraph h of this', 42879:'clause, the cost of replacement or correction shall be determined as specified in the allowable cost and payment clause, but', 42880:'no additional fee shall be paid. the contractor shall not tender for acceptance work required to be replaced or corrected', 42881:'without disclosing the former requirement for replacement or correction, and, when required, shall disclose the corrective action taken. g 1', 42882:'if the contractor fails to proceed with reasonable promptness to perform required replacement or correction, the government may— ibycontract orotherwise,', 42883:'perform thereplacement or correction, charge to thecontractor any increasedcost, or make an equitable reduction in any fixed fee paid or', 42884:'payable under the contract; ii require delivery of any undelivered articles and shall have the right to make an equitable', 42885:'reduction in any fixed fee paid or payable under the contract; or iii terminate the contract for default. 2 failure', 42886:'to agree on the amountof increased cost to be chargedthe contractor or to the reductionin fixed fee shall be a', 42887:'dispute. h notwithstanding paragraphs f and g of this clause, the government may at any time require the contractor to', 42888:'remedy by correction or replacement, without cost to the government, any failure by the contractor to comply with the requirements', 42889:'of this contract, if the failure is due to— 52.2480 subpart 52.2 text of provisions and clauses 52.24611 1 fraud,', 42890:'lackof good faith, or willful misconduct on the part of the contractor’s managerial personnel; or 2 the conduct of one', 42891:'or more ofthe contractor’semployees selected or retained by the contractor after any of the contractor’smanagerial personnel hasreasonable groundsto believe that', 42892:'the employee is habitually careless or unqualified. i this clause shall apply in the same manner to a corrected or', 42893:'replacement end item or components as to work originally delivered. j the contractor has no obligation or liability under the', 42894:'contract to correct or replace articles not meeting contract requirementsat time of delivery, except asprovided in this clause or as', 42895:'may otherwise be specifiedin the contract. k unlessotherwise provided inthe contract, the contractor’s obligationsto correct or replace governmentfurnished property shall', 42896:'begoverned by the clause pertaining togovernment property. end of clause alternate i apr 1984. if it is contemplated that the', 42897:'contract will be on a nofee basis, substitute paragraphs f and g below for paragraphs f and g of the', 42898:'basic clause. f at any time during contract performance, but not later than 6 months or such other time as', 42899:'may be specified in the contract after acceptance of all of the end items other than designs, drawings, or reports', 42900:'to be delivered under the contract, thegovernment may require the contractor to correct or replace worknot meeting contractrequirements. time devoted', 42901:'to the correction or replacement of such work shall not be included in the computation of the above time period.', 42902:'except as otherwise provided in paragraph g of this clause, the allowability of the cost of any such replacement or', 42903:'correction shall be determined as specified in the allowable cost and payment clause. the contractor shall not tender for acceptance', 42904:'corrected work without disclosing the former requirement for correction, and, when required, shall disclose the corrective action taken. g if', 42905:'the contractor fails to proceed with reasonable promptness to perform required replacement or correction, the government may 1 by contract', 42906:'or otherwise,performthe replacementor correction and charge to the contractor any increased cost; 2 require delivery of any undelivered articles; or', 42907:'3 terminate thecontract for default. failure to agree onthe amountof increased cost to be charged to the contractor shall be', 42908:'a dispute. 52.2469inspectionof research anddevelopmentshort form. as prescribed in 46.309, insert the following clause: inspection of research and development shortform', 42909:'apr 1984 the government has the right to inspect and evaluate the work performed or being performed under the contract,', 42910:'and the premises where the work is being performed, at all reasonable times and in a manner that will not', 42911:'unduly delay the work. if the government performsinspectionor evaluation on the premises of the contractor ora subcontractor, the contractor shall', 42912:'furnish and shall require subcontractors to furnish all reasonable facilities and assistance for the safe and convenient performance of these', 42913:'duties. end of clause 52.24610 [reserved] 52.24611higherlevel contract quality requirement. as prescribed in 46.311 , insert the following clause: higherlevel', 42914:'contract quality requirement dec 2014 a thecontractor shall comply with the higherlevel quality standards listed below. [contracting officer insert the', 42915:'title, number if any, date, and tailoring if any of the higherlevel quality standards.] b the contractor shall include applicable', 42916:'requirements of the higherlevel quality standards listed in paragraph a of this clause and the requirement to flow down such', 42917:'standards, as applicable, to lowertier subcontracts, in52.2 481 52.24612 federal acquisition regulation 1 any subcontract for critical and complex items', 42918:'see 46.203b and c; or 2 when the technical requirements of a subcontract require i control of such things as', 42919:'design, work operations, inprocess control, testing, and inspection; or iiattention to such factors as organization, planning, work instructions, documentationcontrol, and', 42920:'advanced metrology. end of clause 52.24612 inspection of construction. as prescribed in 46.312, insert the following clause: inspection of construction', 42921:'aug 1996 a definition.work includes,but is not limited to, materials, workmanship, and manufacture and fabrication of components. b the contractor', 42922:'shall maintain an adequate inspection system and perform such inspections as will ensure that the work performed under the contract', 42923:'conforms to contract requirements. the contractor shall maintain complete inspection records and make them available to the government. all work', 42924:'shall be conducted under the general direction of the contracting officer and is subject to government inspection andtest at allplaces', 42925:'and at all reasonable times beforeacceptance to ensure strict compliance with the terms of the contract. c government inspections and', 42926:'tests are for the sole benefit of the government and do not 1 relieve the contractor of responsibility for providing', 42927:'adequate quality control measures; 2 relieve the contractor of responsibility for damage to or loss of the material before acceptance;', 42928:'3 constitute or imply acceptance; or 4 affect thecontinuingrights of the government after acceptance of thecompleted work underparagraph i of', 42929:'this section. d the presence or absence of a government inspector does not relieve the contractor from any contract requirement,', 42930:'nor is the inspector authorized tochange any termor condition of the specification without the contractingofficer’s written authorization. e thecontractor shall', 42931:'promptlyfurnish, at no increase in contract price, all facilities, labor, andmaterial reasonably needed for performing such safeandconvenient inspections and tests', 42932:'as may be required by thecontracting officer. the government may chargeto thecontractor anyadditional cost of inspection ortest when work isnot', 42933:'readyat the time specified bythe contractor for inspection or test, orwhen priorrejection makes reinspectionor retest necessary. the government shall perform', 42934:'all inspections and tests in a manner that will not unnecessarily delay the work. special, full size, and performance tests', 42935:'shall be performed as described in the contract. f the contractor shall, without charge, replace orcorrect workfound by the governmentnot', 42936:'to conform to contract requirements, unless in the public interest the government consents to accept the work with an appropriate', 42937:'adjustment in contract price. the contractor shall promptly segregate and remove rejected material from the premises. g if the contractor', 42938:'does not promptly replace or correct rejected work, the government may 1 by contract or otherwise,replaceor correctthe work and charge', 42939:'the cost to the contractor; or 2 terminate for default thecontractor’s right to proceed. h if, before acceptance of the', 42940:'entire work, the government decides to examine already completed work by removing it or tearing it out, the contractor, on', 42941:'request, shall promptlyfurnish all necessary facilities, labor, and material. if the work is found to be defective or nonconforming in', 42942:'any material respect due to the fault of the contractor or its subcontractors, the contractor shall defray the expenses ofthe', 42943:'examination and of satisfactory reconstruction. however, if the work is foundto meetcontract requirements, the contracting officer shall make an equitable', 42944:'adjustment for theadditional services involved in the examination and reconstruction, including, if completion of the work was thereby delayed, an', 42945:'extension of time. i unless otherwise specified in the contract, the government shall accept, as promptly as practicable after completion', 42946:'and inspection, all work required by the contract or thatportion of the work the contracting officer determines can be accepted', 42947:'separately. acceptanceshallbe final and conclusive except for latent defects, fraud,gross mistakes amounting to fraud,or the government’s rights under any warranty', 42948:'or guarantee. end of clause 52.2482 subpart 52.2 text of provisions and clauses 52.24615 52.24613 inspectiondismantling, demolition,or removal of improvements.', 42949:'as prescribed in 46.313, insert the following clause in solicitations and contracts for dismantling, demolition, or removal of improvements: inspectiondismantling,', 42950:'demolition, or removal of improvements aug 1996 a unless otherwise designated by the specifications, all workmanship performed under the contract', 42951:'is subject to government inspection at all times and places where dismantling or demolition work is being performed. the contractor', 42952:'shall furnish promptly,and atno increase in contractprice,all reasonable facilities, labor,and materials necessary for safe and convenient inspection by the government.', 42953:'the government shall perform inspections in a manner that will not unduly delay the work. b the contractor is responsible', 42954:'for damage to property caused by defective workmanship. the contractor shall promptly segregate and remove from the premises any unsatisfactory', 42955:'facilities, materials, and equipment used in contract performance, and promptly replace them with satisfactory items. if the contractor fails to', 42956:'proceed at once in a workmanlike manner with performance of the work or with the correction of defective workmanship, the', 42957:'government may 1 by contract or otherwise,replacethe facilities, materials,and equipment or correct theworkmanship and charge the cost to the contractor;', 42958:'and 2 terminate for default thecontractor’s right to proceed. the contractor and any surety shall be liable, to the extent', 42959:'specified in the contract for any damage or cost of repair or replacement. end of clause 52.24614 inspection of transportation.', 42960:'as prescribed in 46.314, insert the following clause in solicitations and contracts for freight transportation services including local drayage by', 42961:'rail, motor including bus, domestic freightforwarder, and domesticwater carriersincluding inland, coastwise, and intercoastal. the contractingofficer shall not use the clause', 42962:'for theacquisition of transportation services by domestic or international air carriers or by international ocean carriers, or to freight services', 42963:'provided under bills of lading or to those negotiated for reduced rates under 49 u.s.c.10721 or 1 3712 . see', 42964:'part 47,transportation. inspection of transportation apr 1984 the government has the right to inspect and test the contractor’s services, facilities,', 42965:'and equipmentat all reasonable times. the contractor shall furnish government representatives with the free access and reasonable facilities and assistance', 42966:'required to accomplish their inspections and tests. end of clause 52.24615 certificate of conformance. as prescribed in 46.315, insert the', 42967:'following clause in solicitations and contracts for supplies or services when the conditions in 46.504 apply: certificate of conformance apr', 42968:'1984 a when authorized in writing by the cognizant contractadministrationoffice cao, the contractor shall ship with a certificate of conformance', 42969:'any supplies for which the contract would otherwise require inspection at source. in no case shall thegovernment’s right to inspectsupplies', 42970:'under the inspection provisions of thiscontract be prejudiced. shipments of such supplies will not be made under this contract until', 42971:'use of the certificate of conformance has been authorized in writing by the cao, or inspection and acceptance have occurred.', 42972:'b the contractor’s signed certificate shall be attached to orincluded on the top copy of theinspectionor receiving report distributed tothe', 42973:'paymentoffice or attached to the cao copy when contract administrationblock10 ofthe ddform250 is performed by the defense contract administration services.', 42974:'in addition, a copy of the signed certificate shall also be attached to or entered on copies of the inspection', 42975:'or receiving report accompanying the shipment. 52.2483 52.24616 federal acquisition regulation c the government has the right to reject defective', 42976:'supplies or services within a reasonable time after delivery by written notificationto the contractor. the contractor shall in such event', 42977:'promptly replace, correct, or repair the rejected supplies or services at the contractor’s expense. d the certificate shall read as', 42978:'follows: i certify that on [insert date], the [insert contractor’s name] furnished the supplies or services called for by contract', 42979:'no. via [carrier] on [identify the bill of lading or shipping document] in accordance with all applicable requirements. i further', 42980:'certify that the supplies or services are of the quality specified and conform in all respects with the contract requirements,', 42981:'including specifications, drawings, preservation, packaging, packing, marking requirements, and physical item identification part number, and are in the quantity shown', 42982:'on this or on the attached acceptance document. date of execution: signature: title: end of clause 52.24616 responsibility for supplies.', 42983:'as prescribed in 46.316, insert the following clause: responsibility for suppliesapr 1984 a titleto supplies furnished under this contractshallpass to', 42984:'the government uponformal acceptance, regardless of when or where the government takes physical possession, unless the contract specifically provides for', 42985:'earlier passage of title. b unless the contract specifically provides otherwise, risk of loss of or damage to supplies shall', 42986:'remain with the contractor until, and shall pass to the government upon 1 delivery of the supplies to a carrier,', 42987:'if transportation is f.o.b. origin; or 2 acceptance by the government or delivery of the supplies to the government at', 42988:'the destination specified in the contract, whichever is later, if transportation is f.o.b. destination. c paragraph b of this clause', 42989:'shall not apply to supplies that so fail to conform to contract requirements as to give a right of rejection.', 42990:'the risk of loss of or damage to such nonconforming supplies remains with the contractor until cure or acceptance. after', 42991:'cure or acceptance, paragraph b of this clause shall apply. d under paragraph b of this clause, the contractor shall', 42992:'not be liable for loss of or damage to supplies caused by the negligence of officers, agents, or employeesof the', 42993:'government actingwithin thescope of theiremployment. end of clause 52.24617 warranty of suppliesof a noncomplex nature. as prescribed in 46.710a1, insert', 42994:'a clause substantially as follows: warranty of supplies of a noncomplex nature june 2003 a definitions. as used in this', 42995:'clause acceptance means the act of an authorized representative of the government by which the government assumes for itself, or', 42996:'asan agent of another, ownership of existing supplies, orapproves specific servicesas partial or complete performance of the contract. suppliesmeans the', 42997:'end items furnished by the contractor and related services required under this contract. the word does not include data. bcontractor’sobligations.', 42998:'1 notwithstanding inspection and acceptance by the government of supplies furnished under this contract, or any condition of this contract', 42999:'concerning the conclusiveness thereof, the contractor warrants that for [contracting officer shall state specific period of time after delivery, or', 43000:'the specified event whose occurrence will terminate the warranty period; e.g.,the number of miles or hours of use, or combinations', 43001:'of any applicable events or periods of time] i all supplies furnished under this contract will be free from defects', 43002:'in material or workmanship and will conform with all requirements of this contract; and 52.2484 subpart 52.2 text of provisions', 43003:'and clauses 52.24617 iithe preservation, packaging, packing, and marking, and the preparation for, and method of, shipment of such supplies', 43004:'will conform with the requirements of this contract. 2 when return, correction, orreplacement is required, transportation charges and responsibility for', 43005:'the supplies while in transitshallbe borne bythe contractor. however, the contractor’s liability for the transportation charges shall not exceed an', 43006:'amount equal to the cost of transportation by the usual commercial method of shipment between the place of delivery specified', 43007:'in this contract and the contractor’s plant, and return. 3 any supplies or parts thereof, corrected or furnished in replacement', 43008:'under this clause, shall also be subject to the terms of this clause tothe same extent as supplies initiallydelivered. the', 43009:'warranty, with respect to supplies or parts thereof, shall be equal in duration to that in paragraph b1 of this', 43010:'clause and shall run from the date of delivery of the corrected or replaced supplies. 4 all implied warranties of', 43011:'merchantability and fitness for a particular purpose are excluded from any obligation contained in this contract. c remedies available to', 43012:'the government. 1thecontractingofficershallgivewrittennoticetothecontractorofany breach of warranties in paragraph b1 of this clause within [contracting officer shall insert specific period of', 43013:'time; e.g.,45days of the last delivery under this contract, or 45days after discovery of the defect]. 2 within areasonable time', 43014:'after the notice, the contracting officer may either i require, by written notice, the prompt correction or replacement of any', 43015:'supplies or parts thereof including preservation, packaging, packing, and marking that do not conform with the requirements of this contract', 43016:'within the meaning of paragraph b1 of this clause; or ii retain such supplies and reduce the contract price by', 43017:'an amount equitable under the circumstances. 3 i if the contract provides for inspection of supplies by sampling procedures, conformance', 43018:'of supplies or components subject to warranty action shall be determined by the applicable sampling procedures in the contract. the', 43019:'contracting officer amay,forsampling purposes,group any suppliesdelivered underthis contract; b shall require the size of the sample to be that required', 43020:'by sampling procedures specified in the contract for the quantity of supplies on which warranty action is proposed; c may', 43021:'project warranty sampling results over supplies in the same shipment or other supplies contained in other shipments even though all', 43022:'of such supplies are not present at the point of reinspection; provided, that the supplies remaining are reasonably representative of', 43023:'the quantity on which warranty action is proposed; and d need not use the same lot size as on original', 43024:'inspection or reconstitute the original inspection lots. iiwithin a reasonable time after notice of any breach of thewarranties specified in', 43025:'paragraph b1 of this clause, thecontracting officer may exercise one or more of the following options: a require an equitable', 43026:'adjustment in the contract price for any group of supplies. b screen the suppliesgrouped for warranty action under this clauseat', 43027:'the contractor’s expense andreturn all nonconforming supplies to the contractor for correction or replacement. c require the contractor to screen', 43028:'the supplies at locations designated by the government within the contiguous united states and to correct or replace all nonconforming', 43029:'supplies. d return the supplies grouped for warranty action under this clause to the contractor irrespective of the f.o.b. point', 43030:'or the point of acceptance for screening and correction or replacement. 4 ithecontractingofficermay,bycontractorotherwise,correctorreplacethenonconformingsupplieswith similar supplies fromanother source and charge to', 43031:'thecontractor the cost occasioned to thegovernmentthereby if the contractor a fails to make redelivery of the corrected or replaced supplies', 43032:'within the time established for their return; or b fails either to accept return of the nonconforming supplies or fails', 43033:'to make progress after their return to correct or replace them so as to endanger performance of the delivery schedule,', 43034:'and in either of these circumstances does not cure such failure within a periodof 10 daysorsuch longerperiod as the contracting', 43035:'officer mayauthorize inwriting after receipt ofnotice from the contracting officer specifying suchfailure. iiinstead of correction orreplacement by the government,the contracting', 43036:'officermay require an equitable adjustment of the contract price. in addition, if the contractor fails to furnish timely disposition instructions,', 43037:'the contracting officer may disposeof the nonconforming suppliesforthe contractor’saccount in areasonable manner. the government is entitled to reimbursement from the', 43038:'contractor, or from the proceeds of such disposal, for the reasonableexpenses of the care and disposition of the nonconforming supplies,', 43039:'as well as for excess costs incurred or to be incurred. 52.2485 52.24618 federal acquisition regulation 5 the rights and', 43040:'remedies of the government provided in this clause are in addition to and do not limit any rights affordedto thegovernment', 43041:'by any other clauseof this contract. end of clause alternate i [reserved] alternate ii apr 1984. if it is desirable', 43042:'to specify that necessary transportation incident to correction or replacement will beat the government’sexpenseas mightbe the case if, for example,the', 43043:'cost of a warranty would otherwise be prohibitive, substitute a paragraph substantially the same as the following paragraph b2 for', 43044:'paragraph b2 of the basic clause: 2 if correction or replacement is required and transportation of supplies in connection with', 43045:'correction or replacement is necessary, transportation charges and responsibility for thesupplies while intransit shall be borne bythe government. alternate iii', 43046:'apr 1984. if the supplies cannot be obtained from another source, substitute a paragraph substantially the same as the following', 43047:'paragraph c4 for paragraph c4 of the basic clause: 4 if the contractor does not agree as to responsibility to', 43048:'correct or replace the supplies delivered, the contractor shall nevertheless proceed in accordance with the written requestissuedby the contracting officer', 43049:'under paragraph c2 ofthis clause to correct or replace the defective or nonconforming supplies. in the event it is later', 43050:'determined that the supplies were not defective or nonconforming within the terms and conditions of this clause, the contract price', 43051:'will be equitably adjusted. alternate iv apr 1984. if a fixedprice incentive contract is contemplated, add a paragraph substantially the', 43052:'same as the following paragraph c6 to the basic clause: 6 all costs incurred or estimated to be incurred by', 43053:'the contractor in complying with this clause shall be considered when negotiating the total final price under the incentive price', 43054:'revision clause of this contract. after establishment of the total final price, contractor compliance with this clause shall be at', 43055:'no increase in the total final price. any equitable adjustment made under paragraph c2 of this clause shall be governed', 43056:'by the paragraph entitled equitable adjustments under other clauses in the incentive price revision clause of this contract. alternate v', 43057:'apr 1984. if it is anticipated that recovery of the warranted item will involve considerable government expense for disassembly and/orreassembly', 43058:'of largeritems, adda paragraph substantiallythe same as thefollowing paragraph c6 to the basic clause. redesignate the additional paragraph as c7', 43059:'if alternate iv is also being used. 6 the contractor shall beliable for the reasonable costs of disassembly and/or reassembly', 43060:'of larger itemswhen it is necessary to remove the supplies to be inspected and/or returned for correction or replacement. 52.24618', 43061:'warranty of suppliesof a complex nature. as prescribed in 46.710b1, insert a clause substantially as follows: warranty of supplies of', 43062:'a complex nature may 2001 a definitions. as used in this clause acceptance means the act of an authorized representative', 43063:'of the government by which the government assumes for itself, or asan agent of another, ownership of existing and identifiedsupplies,', 43064:'or approves specificservices rendered, aspartial or complete performance of the contract. supplies means the end items furnished by the contractor', 43065:'and related services required under this contract. the word does not include data. b contractor’s obligations. 1 the contractor warrants', 43066:'that for [contracting officer shall state the specific warranty period after delivery, or the specified event whose occurrence will terminate', 43067:'the warranty period; e.g.,the number of miles or hours of use, or combinations of any applicable events or periods of', 43068:'time] all supplies furnished under this contract will be free from defects in material and workmanship and will conform with', 43069:'all requirements of this contract; provided, however, thatwith respect to governmentfurnished property, the contractor’s warranty shall extend only to itsproper', 43070:'installation, unless the contractorperforms somemodification or other work on the property, in which case the contractor’swarranty shall extend to the', 43071:'modification orotherwork. 2 any supplies or parts thereof corrected or furnished in replacement shall be subject to the conditions of', 43072:'this clause to the same extent as supplies initially delivered. this warranty shall be equal in duration to that set', 43073:'forth in paragraph b1 of this clause and shall run from the date of delivery of the corrected or replaced', 43074:'supplies. 3 the contractor shall not be obligated to correct or replace supplies if the facilities, tooling, drawings, or other', 43075:'equipment or supplies necessary to accomplish the correction or replacement have been made unavailable to the contractor 52.2486 subpart 52.2', 43076:'text of provisions and clauses 52.24618 by action of the government. in the event that correction or replacement has been', 43077:'directed, the contractor shall promptly notify the contracting officer, in writing, of the nonavailability. 4 the contractor shall also prepare', 43078:'and furnish to the government data and reports applicable to any correction required including revisionandupdating of all affected data called', 43079:'for underthis contract at no increase in the contract price. 5 when suppliesare returned to the contractor,the contractor shall bear', 43080:'thetransportation costs from the place of delivery specified inthe contract irrespectiveof the f.o.b. point or thepointof acceptance to the contractor’s', 43081:'plant and return. 6 all implied warranties of merchantability and fitness for a particular purpose are excluded from any obligation', 43082:'contained in this contract. c remedies available to the government. 1intheeventofabreachofthecontractor’swarrantyinparagraphb1of this clause, the government may, at no increase in', 43083:'contract price irequire the contractor, atthe place ofdelivery specified in thecontract irrespective of the f.o.b. point orthe point of acceptance', 43084:'or at the contractor’s plant, torepair or replace,at the contractor’s election, defective or nonconforming supplies; or iirequire the contractor to', 43085:'furnish atthe contractor’splant the materials or parts and installationinstructions required to successfully accomplish the correction. 2 if the contracting officer', 43086:'does not require correction or replacement of defective or nonconforming supplies or the contractor is not obligated to correct or', 43087:'replace under paragraph b3 of this clause, the government shall be entitled to an equitable reduction in the contract price.', 43088:'3 the contracting officer shall notifythe contractor inwriting of any breach of thewarranty in paragraph b of this clause within', 43089:'. [contracting officer shall insert specific period of time in which notice shall be given to the contractor; e.g.,45days after', 43090:'delivery of the nonconforming supplies. ; 45days of the last delivery under this contract. ; or 45days after discovery of', 43091:'the defect.] the contractorshallsubmit to the contracting officer a written recommendation within [contracting officer shall insert period of time] as', 43092:'to the corrective action required to remedy the breach. after the notice of breach, but not later than [contracting officer', 43093:'shall insert period within which the warranty remedies should be exercised] after receipt ofthe contractor’srecommendation for corrective action, the contractingofficer', 43094:'may, in writing, direct correction or replacement as in paragraph c1 of this clause, and the contractor shall, notwithstanding any', 43095:'disagreement regardingthe existenceof abreach of warranty, comply with this direction. if it is later determined that the contractor did not', 43096:'breach the warranty in paragraph b1 of this clause, the contract price will be equitably adjusted. 4 if supplies arecorrected', 43097:'or replaced, the period for notification ofa breach of the contractor’s warranty in paragraph c3 of this clause shall be', 43098:'[contracting officer shall insert period within which the contractor must be notified of a breach as to corrected or replaced', 43099:'supplies] from the furnishing or return by the contractor to thegovernment of the corrected or replaced suppliesor parts thereof, or,if', 43100:'correctionor replacement iseffected by the contractor at agovernmentor other activity,for [contracting officer shall insert period within which the contractor must', 43101:'be notified of a breach of warranty as to corrected or replaced supplies] thereafter. 5 the rights and remedies of', 43102:'the government provided in this clause are in addition to and do not limit any rights affordedto thegovernment by any', 43103:'other clauseof the contract. end of clause alternate i [reserved] alternate ii apr 1984. if it is desirable to specify', 43104:'that necessary transportation incident to correction or replacement will beat the government’sexpenseas mightbe the case if, for example,the cost of', 43105:'a warranty would otherwise be prohibitive, substitute a paragraph substantially the same as the following paragraph b5 for paragraph b5', 43106:'of the basic clause: 5 if correction or replacement is required and transportation of supplies in connection with correction or', 43107:'replacement is necessary, transportation charges and responsibility for thesupplies while intransit shall be borne bythe government. alternate iii apr 1984.', 43108:'if a fixedprice incentive contract is contemplated, add a paragraph substantially the same as the following paragraph c6 to the', 43109:'basic clause: 6 all costs incurred or estimated to be incurred by the contractor in complying with this clause shall', 43110:'be considered when negotiating the total final price under the incentive price revision clause of this contract. after establishment of', 43111:'the total final price, contractor compliance with this clause shall be at no increase in the total final price. any', 43112:'equitable adjustments 52.2487 52.24619 federal acquisition regulation made under paragraph c2 of this clause shall be governed by the paragraph', 43113:'entitled equitable adjustments under other clauses in the incentive price revision clause of this contract. alternate iv apr 1984. if', 43114:'it is anticipated that recovery of the warranted item will involve considerable government expense for disassembly and/orreassembly of largeritems, adda', 43115:'paragraph substantiallythe same as thefollowing paragraph c6 to the basic clause. redesignate the additional paragraph as c7 if alternate iii', 43116:'is also used: 6 the contractor shall beliable for the reasonable costs of disassembly and/or reassembly of larger itemswhen it', 43117:'is necessary to remove the supplies to be inspected and/or returned for correction or replacement. 52.24619 warranty of systems and', 43118:'equipment under performance specificationsor design criteria. as prescribed in 46.710c1,thecontractingofficermayinsertaclausesubstantiallyasfollows: warranty of systems and equipment under performance specifications or design', 43119:'criteria may 2001 a definitions. as used in this clause acceptance means the act of an authorized representative of the', 43120:'government by which the government assumes for itself, or asan agent of another, ownership of existing and identifiedsupplies, or approves', 43121:'specificservices rendered, aspartial or complete performance of the contract. defect means any condition or characteristic in any supplies or services', 43122:'furnished by the contractor under the contract that is not in compliance with the requirements of the contract. supplies means', 43123:'the end items furnished by the contractor and related services required under this contract. except when this contract includes the', 43124:'clauseentitled warranty ofdata, supplies also mean data. bcontractor’sobligations. 1thecontractor’swarrantiesunderthisclauseshallapplyonlytothosedefectsdiscovered by either the government or the contractor [contracting officer shall state', 43125:'the warranty period; e.g.,at the time of delivery; within 45 days after delivery, or the specified event whose occurrence will', 43126:'terminate the warranty period; e.g.,the number of miles or hours of use, or combination of any applicable events or periods', 43127:'of time.]. 2 if the contractor becomes aware at any time before acceptance by the government whether before or after', 43128:'tender to the government that a defect exists in any supplies or services, the contractor shall i promptly correct the', 43129:'defect; or iipromptly notify the contractingofficer, in writing, of the defect, using the same procedures prescribedin paragraph b3 of this', 43130:'clause. 3 if the contracting officer determines that a defect exists in any of the supplies or servicesaccepted bythe government', 43131:'under this contract, the contracting officer shall promptlynotify the contractor of the defect, in writing, within [contracting officer shall insert', 43132:'the specific period of time in which notice shall be given to the contractor; e.g.,30days after delivery of the nonconforming', 43133:'supplies; 90days of the last delivery under this contract; or 90days after discovery of the defect.]. upon timely notification of', 43134:'the existence of a defect, or if the contractor independently discovers a defect in accepted supplies or services, the contractor', 43135:'shall submit to the contracting officer, in writing, within [contracting officer shall insert period of time] a recommendation for corrective', 43136:'actions, together with supporting information insufficient detail for the contracting officer to determine what corrective action, if any, shall be', 43137:'undertaken. 4 the contractor shall promptly comply with any timely written directionfrom the contractingofficer to correct or partially correct a', 43138:'defect, at no increase in the contract price. 5 the contractor shall also prepareandfurnish to thecontracting officer data andreportsapplicable to', 43139:'any correction requiredunder this clause including revision and updating of allotheraffected data calledforunder this contract at no increase in the', 43140:'contract price. 6 in the event of timely notice of a decision not to correct or only to partially correct,', 43141:'the contractor shall submit a technical and cost proposal within . [contracting officer shall insert period of time] to amend', 43142:'the contract to permit acceptance of theaffected suppliesor services in accordance with the revised requirement, and an equitable reduction in', 43143:'the contract price shall promptly be negotiated by the parties and be reflected in a supplemental agreement to this contract.', 43144:'7 any supplies or parts thereof corrected or furnished in replacement and any services reperformed shall also be subject to', 43145:'the conditionsof this clauseto the sameextent as suppliesor services initially accepted. the warranty,with respect to these supplies, parts, or services,', 43146:'shall be equal in duration to that set forth in paragraph b1 of this clause, and shall run from the', 43147:'date of delivery of the corrected or replaced supplies. 8 the contractor shall not be responsible under this clause for', 43148:'the correction of defects in governmentfurnished property,exceptfordefects in installation, unless thecontractor performs, or is obligated toperform, anymodifications or 52.2488 subpart', 43149:'52.2 text of provisions and clauses 52.24619 other work on such property. inthat event, thecontractor shall be responsible for correction', 43150:'of defects that result from the modifications or other work. 9 if the government returns supplies to the contractor for', 43151:'correction or replacement under this clause, the contractor shall beliable for transportation charges up to an amount equal to the', 43152:'cost of transportation by the usualcommercial method of shipment from the place of delivery specified in this contract irrespective of', 43153:'the f.o.b. point or the point of acceptance to the contractor’s plant and return to the place of delivery specified', 43154:'in this contract. the contractorshallalsobearthe responsibility for the supplies while in transit. 10 all implied warranties of merchantability and fitness', 43155:'for a particular purpose are excluded from any obligation under this contract. c remedies available to the government. 1 the', 43156:'rights and remedies of the government provided in this clause ishall not be affected in any wayby any termsor conditionsof', 43157:'this contract concerningthe conclusiveness of inspection and acceptance; and iiare in additionto, and do not limit, any rights afforded to', 43158:'the government byanyotherclause ofthiscontract. 2 within [contracting officer shall insert period of time] afterreceipt of the contractor’s recommendations for corrective', 43159:'action andadequate supporting information, thecontracting officer,using sole discretion, shall give the contractor written notice not to correct any defect, or', 43160:'to correct or partially correct any defect within a reasonable time at [contracting officer shall insert locations where corrections may', 43161:'be performed]. 3 in no event shall the government be responsible for any extension or delays in the scheduled deliveries', 43162:'or periods of performance under this contract as a result of the contractor’s obligations tocorrect defects, nor shall there be', 43163:'any adjustment of the delivery schedule or period of performance as a result of the correction of defects unless provided', 43164:'by a supplemental agreement with adequate consideration. 4 this clause shall not be construed as obligating the government to increase', 43165:'the contract price. 5 ithecontractingofficershallgivethecontractorawrittennoticespecifyinganyfailureorrefusalofthe contractor to a present a detailed recommendation for corrective action as required by paragraph b3', 43166:'of this clause; b correct defects as directed under paragraph b4 of this clause; or c prepare and furnish data', 43167:'and reports as required by paragraph b5 of this clause. ii the notice shall specify a period of time following', 43168:'receipt of the notice by the contractor in which the contractor must remedy the failure or refusal specified in the', 43169:'notice. 6 if the contractor does notcomply with the contracting officer’swritten notice in paragraph c5i of this clause, thecontracting officer', 43170:'may by contract orotherwise i obtain detailed recommendations for corrective action and either a correct the supplies or services; or', 43171:'b replace the supplies or services, and if the contractor fails to furnish timely disposition instructions, the contracting officermay dispose', 43172:'of the nonconformingsupplies for the contractor’s account ina reasonable manner, in which case the government is entitled to reimbursement from', 43173:'the contractor, or from theproceeds, for thereasonable expenses of care and disposition, as well as for excess costs incurred or', 43174:'to be incurred; ii obtain applicable data and reports; and iii charge the contractor for the costsincurred by thegovernment. end', 43175:'of clause alternate i apr 1984. if it is desirable to specify that necessary transportation incident to correction or replacement', 43176:'will beat the government’sexpenseas mightbe the case if, for example,the cost of a warranty would otherwise be prohibitive, substitute a', 43177:'paragraph substantially the same as the following paragraph b9 for paragraph b9 of the basic clause: alternate ii apr 1984.', 43178:'if a fixedprice incentive contract is contemplated, add a paragraph substantially the same as the following paragraph c7 to the', 43179:'basic clause: 7 all costs incurred or estimated to be incurred by the contractor in complying with this clause shall', 43180:'be considered when negotiating the total final price under the incentive price revision clause of this contract. after establishment of', 43181:'the total final price, contractor compliance with this clause shall be at no increase in the total final price. any', 43182:'equitable adjustments made under paragraph b6 of this clause shall be governed by the paragraph entitled equitable adjustments under other', 43183:'clauses in the incentive price revision clause of this contract. 52.2489 52.24620 federal acquisition regulation alternate iii apr 1984. if', 43184:'it is anticipated that recovery of the warranted item will involve considerable government expense for disassembly and/orreassembly of largeritems, adda', 43185:'paragraph substantiallythe same as thefollowing paragraph c7 to the basic clause. redesignate the additional paragraph as c8 if alternate ii', 43186:'is also being used: 7 the contractor shall beliable for the reasonable costs of disassembly and/or reassembly of larger itemswhen', 43187:'it is necessary to remove the supplies to be inspected and/or returned for correction or replacement. 52.24620 warranty of services.', 43188:'as prescribed in 46.710d, insert a clause substantially as follows: warranty of services may 2001 a definition.acceptance, as used in', 43189:'this clause, means the act of an authorized representative of the government by which the government assumes for itself, oras', 43190:'an agent ofanother,ownership ofexisting and identified supplies, or approves specific services, as partial or complete performance of the contract. b', 43191:'notwithstanding inspection and acceptance by the government or any provision concerning the conclusiveness thereof, the contractor warrants that all services', 43192:'performed under this contract will, at the time of acceptance, be free from defectsin workmanship andconformto therequirements of this contract.', 43193:'the contracting officer shall give writtennotice of any defect or nonconformance to the contractor [contracting officer shall insert the specific', 43194:'period of time in which notice shall be given to the contractor; e.g.,within 30 days from the date of acceptance', 43195:'by the government,; within 1000 hours of use by the government; or other specified event whose occurrence will terminate the', 43196:'period of notice, or combination of any applicable events or period of time]. this notice shall state either 1 that', 43197:'the contractor shall correct or reperform any defective or nonconforming services; or 2 that the government does not require correction', 43198:'or reperformance. c if the contractor is required to correct or reperform, it shall be at no cost to the', 43199:'government, and any services corrected or reperformed by the contractor shall be subject to this clause to the same extent', 43200:'as work initially performed. if the contractor fails or refuses tocorrect orreperform, the contractingofficer may, by contract or otherwise, correct', 43201:'orreplace with similar services and charge tothe contractor the cost occasioned tothe government thereby, or makean equitable adjustment in the', 43202:'contract price. d if the government doesnot require correctionor reperformance, the contracting officer shall make an equitable adjustment in the', 43203:'contract price. end of clause 52.24621 warranty of construction. as prescribed in 46.710e1,thecontractingofficermayinsertaclausesubstantiallyasfollowsinsolicitationsand contracts when a fixedprice construction contract see', 43204:'46.705c is contemplated, and the use of a warranty clause has been approved under agency procedures: warranty of construction mar', 43205:'1994 a in addition to any other warranties in this contract, the contractor warrants, except as provided in paragraph i', 43206:'of this clause, that work performed under this contract conforms to the contract requirements and is free of any defect', 43207:'in equipment, material, ordesign furnished, or workmanshipperformed by the contractor or any subcontractor or supplier at any tier. b this', 43208:'warranty shall continue for a period of 1 year from the date of final acceptance of the work. if the', 43209:'government takes possession of any part of the work before final acceptance, this warranty shall continue for a period of', 43210:'1 year from the date the government takes possession. c thecontractor shall remedy at the contractor’s expense any failure to', 43211:'conform, oranydefect. in addition, the contractor shall remedy at the contractor’s expense any damage togovernmentownedor controlled realor personal property,when that', 43212:'damage is the result of 1 the contractor’s failure to conform to contract requirements; or 2 any defect of equipment,', 43213:'material, workmanship, or design furnished. d the contractor shall restoreanywork damaged infulfilling the termsand conditions of this clause. thecontractor’s warranty', 43214:'with respect to work repaired or replaced will run for 1 year from the date of repair or replacement. 52.2490', 43215:'subpart 52.2 text of provisions and clauses 52.24623 e thecontracting officer shall notify the contractor, in writing, within a reasonabletime', 43216:'after the discoveryof any failure, defect, or damage. f if the contractor fails to remedy any failure, defect, or damage', 43217:'within a reasonable time after receipt of notice, the government shall have the right to replace, repair,or otherwise remedy the', 43218:'failure, defect, or damage at the contractor’s expense. g with respectto all warranties, express or implied, from subcontractors, manufacturers, or', 43219:'suppliers for work performed and materials furnished under this contract, the contractor shall 1 obtain all warranties that would be', 43220:'given in normal commercial practice; 2 require all warranties to be executed, in writing, for the benefit of the government,', 43221:'if directed by the contracting officer; and 3 enforce all warranties for the benefit ofthe government, ifdirected bythe contracting officer.', 43222:'h in the event the contractor’s warranty under paragraph b of this clause has expired, the government may bringsuit at', 43223:'itsexpenseto enforcea subcontractor’s, manufacturer’s, or supplier’s warranty. iunless a defect is causedby the negligenceof the contractor or subcontractor orsupplier atanytier,', 43224:'the contractor shall not be liable for the repair of any defects of material or design furnished by the government', 43225:'nor for the repair of any damage that results from any defect in governmentfurnished material or design. jthis warranty shall', 43226:'not limit the government’s rights under the inspectionand acceptanceclause ofthis contractwith respect to latent defects, gross mistakes, or fraud. end', 43227:'of clause alternate i apr 1984. if the government specifies in the contract the use of any equipment by brand', 43228:'name and model, thecontracting officer may add a paragraph substantially the same as the following paragraph k to the basic', 43229:'clause: k defects in design or manufacture of equipment specified by the government on a brand name and model basis,', 43230:'shall not be included in this warranty. in thisevent, the contractor shall require any subcontractors, manufacturers,or suppliers thereof to execute', 43231:'their warranties, in writing, directly to the government. 52.24622 [reserved] 52.24623 limitation ofliability. as prescribed in 46.805, insert the following', 43232:'clause: limitation of liability feb 1997 a except as provided in paragraphs b and c of this clause, and except', 43233:'for remedies expressly provided elsewhere in this contract, the contractor shall not be liable for loss of or damage to', 43234:'property of the government excluding the supplies delivered under this contract that 1 occurs after government acceptance of the supplies', 43235:'delivered under this contract; and 2 results from any defects or deficiencies in the supplies. b the limitation of liability', 43236:'under paragraph a of this clause shall not apply when a defect or deficiency in, or the government’s acceptance of,the', 43237:'supplies results from willful misconduct or lack of goodfaith on thepart of any of thecontractor’s managerialpersonnel. the term contractor’s managerialpersonnel,', 43238:'as used in this clause, means the contractor’sdirectors,officers, and any of the contractor’s managers, superintendents, orequivalent representatives who have supervision', 43239:'or direction of 1 all orsubstantially all of the contractor’s business; 2 all orsubstantially all of the contractor’s operations at', 43240:'any one plant, laboratory,or separate location at which the contract is being performed; or 3 a separate and complete major', 43241:'industrial operation connected with the performance of this contract. c if the contractor carries insurance, or has established a reserve', 43242:'for selfinsurance, covering liability for loss or damage suffered by thegovernment through purchase or useof the supplies required to be', 43243:'delivered under this contract, the contractor shall be liable to the government, to the extent of such insurance or reserve,', 43244:'for loss of or damage to property of 52.2491 52.24624 federal acquisition regulation the government occurring after government acceptance of,', 43245:'and resulting from any defects or deficiencies in, the supplies delivered under this contract. end of clause 52.24624 limitation ofliabilityhighvalueitems.', 43246:'as prescribed in 46.805, insert the following clause: limitation of liabilityhighvalue items feb 1997 a except as provided in paragraphs', 43247:'b through e of this clause, and notwithstanding any other provision of this contract, the contractor shall not be liable', 43248:'for loss of or damage to property of the government including the supplies delivered under this contract that 1 occurs', 43249:'after government acceptance of the supplies delivered under this contract; and 2 results from any defects or deficiencies in the', 43250:'supplies. b the limitation of liability under paragraph a of this clause shall not apply when a defect or deficiency', 43251:'in, or the government’s acceptance of,the supplies results from willful misconduct or lack of goodfaith on thepart of any of', 43252:'thecontractor’s managerialpersonnel. the term contractor’s managerialpersonnel, as used in this clause, means the contractor’sdirectors,officers, and any of the contractor’s managers,', 43253:'superintendents, orequivalent representatives who have supervision or direction of 1 all orsubstantially all of the contractor’s business; 2 all orsubstantially', 43254:'all of the contractor’s operations at any one plant, laboratory,or separate location at which the contract is being performed; or', 43255:'3 a separate and complete major industrial operation connected with the performance of this contract. c if the contractor carries', 43256:'insurance, or has established a reserve for selfinsurance, covering liability for loss or damage suffered by thegovernment through purchase or', 43257:'useof the supplies required to be delivered under this contract, the contractor shall be liable to the government, to the', 43258:'extent of such insurance or reserve, for loss of or damage to property of the government occurring after government acceptance', 43259:'of, and resulting from any defects or deficiencies in, the supplies delivered under this contract. d 1thisclausedoesnotdiminishthecontractor’sobligations,totheextentthattheyariseotherwiseunderthis contract, relating to', 43260:'correction, repair, replacement, or other reliefforany defect or deficiency in supplies delivered under this contract. 2 unlessthis is a costreimbursement', 43261:'contract, if lossor damage occursand correction, repair, or replacement is not feasible or desired by the government, the contractor shall,', 43262:'as determined bythe contracting officer ipay the government the amount it would have cost the contractor to make correction, repair,', 43263:'or replacement before the loss or damage occurred; ii provide other equitable relief. e this clause shall not limit or', 43264:'otherwise affectthe government’s rights under clauses, if included in thiscontract, that cover 1 warrantyof technical data; 2 ground and flight', 43265:'risks or aircraft flight risks; or 3 government property. end of clause alternate i apr 1984. if the contract is', 43266:'for both highvalue items and other end items, the contracting officer shall identify the highvalue items by line item and', 43267:'insert the following preamble before paragraph a: this clause shall apply only to those items identified in this contract as', 43268:'being subject to this clause. 52.24625 limitation of liabilityservices. as prescribed in 46.805, insert the following clause: 52.2492 subpart 52.2', 43269:'text of provisions and clauses 52.24626 limitation of liabilityservices feb 1997 a except as provided in paragraphs b and c', 43270:'of this clause, and except to the extent that the contractor is expressly responsible under this contract for deficiencies in', 43271:'the services required to be performed under it including any materials furnished in conjunction with those services, the contractor shall', 43272:'not be liable for loss of or damage to property of the government that 1 occurs after government acceptance of', 43273:'services performed under this contract; and 2 results from any defects or deficiencies in the services performed or materials furnished.', 43274:'b the limitation of liability under paragraph a of this clause shall not apply when a defect or deficiency in,', 43275:'or the government’s acceptance of,services performed or materials furnishedresults from willful misconduct or lackof good faith onthe part ofany of', 43276:'the contractor’s managerial personnel. the term contractor’s managerial personnel, as usedin this clause, means the contractor’s directors, officers,and any of', 43277:'thecontractor’s managers, superintendents, or equivalent representatives who have supervision or direction of 1 all orsubstantially all of the contractor’s business;', 43278:'2 all orsubstantially all of the contractor’s operations at any one plant, laboratory,or separate location at which the contract is', 43279:'being performed; or 3 a separate and complete major industrial operation connected with the performance of this contract. c if', 43280:'the contractor carries insurance, or has established a reserve for selfinsurance, covering liability for loss or damage suffered by the', 43281:'government through thecontractor’s performanceof services or furnishing of materials under this contract, the contractor shall be liable to the government,', 43282:'to the extent of such insurance or reserve, for loss of or damage to property of the government occurring after', 43283:'government acceptance of, and resulting from any defects and deficiencies in, services performed or materials furnished under this contract. end', 43284:'of clause 52.24626 reporting nonconforming items. as prescribed in 46.317, insert the following clause reporting nonconforming items aug 2024 a', 43285:'definitions. as used in this clause— common item means an item that has multiple applications versus a single or peculiar', 43286:'application. counterfeit item means an unlawful or unauthorized reproduction, substitution, or alteration that has been knowingly mismarked, misidentified,or otherwise misrepresented', 43287:'tobe an authentic, unmodified itemfrom the originalmanufacturer, or a source with theexpress written authority of the original manufacturer orcurrent design', 43288:'activity, includingan authorized aftermarket manufacturer. unlawfulor unauthorized substitution includes useditemsrepresented as new, orthe false identificationof grade, serial number, lot number,date', 43289:'code, or performancecharacteristics. critical item means an item, the failure of which is likely to result in hazardous or unsafe', 43290:'conditions for individuals using, maintaining, or depending upon the item; or is likely to prevent performance of a vital agency', 43291:'mission. critical nonconformance means a nonconformance that is likely to result in hazardous or unsafe conditions for individuals using, maintaining,', 43292:'or depending upon the supplies or services; or is likely to prevent performance of a vital agency mission. design activity', 43293:'means an organization,government or contractor, that has responsibility for the design and configuration of an item, includingthe preparation or maintenanceof', 43294:'design documents. design activitycould be the original organization, or an organization to which design responsibility has been transferred. major nonconformance', 43295:'means a nonconformance, other than critical, that is likely to result in failure of the supplies or services, or to', 43296:'materially reduce the usability of the supplies or services for their intended purpose. suspect counterfeit item means an item for', 43297:'which credible evidence including but not limited to, visual inspection or testing provides reasonable doubt that the item is authentic.', 43298:'b the contractor shall— 1 screen governmentindustry data exchange program gidep reports, available at www.gidep.org, as a part of the', 43299:'contractors inspection system or program for the control of quality,to avoid theuse and delivery of counterfeitor suspect counterfeit items or', 43300:'delivery of items that contain a major or critical nonconformance. this requirement does not apply if the 52.2493 52.24626 federal', 43301:'acquisition regulation contractor is a foreign corporation or partnership that does not have an office, place of business, or fiscal', 43302:'paying agent inthe united states; 2 provide writtennotification to the contracting officer within 60 days of becoming aware or havingreason', 43303:'to suspect, such asthroughinspection, testing, record review, ornotification from another source e.g., seller,customer, third party that any enditem, component, subassembly,part,', 43304:'or material contained in supplies purchased bythe contractor for delivery to, or for, the government is counterfeit or suspect counterfeit;', 43305:'3 retain counterfeit or suspect counterfeit items in its possession at the time of discovery until disposition instructions have been', 43306:'provided by the contractingofficer; and 4 except as provided in paragraph c of this clause, submit a report to gidep', 43307:'at www.gidep.org within 60 days of becoming aware or havingreason to suspect, suchas through inspection,testing, recordreview, or notification from another', 43308:'source e.g., seller, customer, third party that an item purchased by the contractor for delivery to, orfor, thegovernmentis– i a', 43309:'counterfeit or suspect counterfeit item; or ii a common item that has a major or critical nonconformance. c the contractor', 43310:'shall not submit a report as required by paragraph b4 of this clause, if— 1 the contractor isa foreigncorporation orpartnership', 43311:'thatdoes not have an office, place ofbusiness, or fiscal paying agent in the united states; 2 the contractor is aware', 43312:'that the counterfeit, suspect counterfeit, or nonconforming item is the subject of an ongoing criminal investigation, unless the report is', 43313:'approved by the cognizant lawenforcement agency; or 3 for nonconforming items other than counterfeit or suspect counterfeit items, it can', 43314:'be confirmed that the organizationwhere the defect was generated e.g., original component manufacturer, original equipment manufacturer, aftermarket manufacturer,or distributorthat alters', 43315:'item propertiesor configuration has not released the itemto more than one customer. d reports submitted in accordance with paragraph b4', 43316:'of this clause shall not include— 1 trade secrets orconfidential commercialor financial informationprotected underthe trade secrets act 18 u.s.c. 1905;', 43317:'or 2 any other information prohibited from disclosure by statute or regulation. e additional guidance on the use of gidep', 43318:'is provided at https://www.gidep.org/login?returnurl=%2fdashboard. f if this is a contract with the department of defense, as provided in paragraph c5', 43319:'of section 818 of the national defense authorization act for fiscalyear 2012 pub. l. 11281, the contractoror subcontractor that provides', 43320:'a written report or notification under this clause that the end item, component, part, or material contained electronic parts i.e.,', 43321:'an integrated circuit, adiscrete electronic component including, but not limited to, a transistor, capacitor, resistor, or diode, or a circuit', 43322:'assembly that are counterfeit electronic parts or suspect counterfeit electronic parts shall not be subject to civil liability onthe basis', 43323:'ofsuch reporting, provided thatthe contractor or any subcontractor made a reasonable effort to determine that the report was factual. g', 43324:'subcontracts. 1 except as provided in paragraph g2 of this clause, the contractor shall insert this clause, including this paragraph', 43325:'g, in subcontracts that are for– i items subject to higherlevel quality standards in accordance with the clause at federal', 43326:'acquisition regulation far 52.24611, higherlevel contract quality requirement; ii items that the contractor determines to be critical items for which', 43327:'use of the clause is appropriate; iii electronic parts or end items, components, parts, or materials containing electronic parts, whether', 43328:'or not covered in paragraph g1i or ii of this clause, if the subcontract exceeds the simplified acquisition threshold, as', 43329:'defined in far 2.101 on the date of subcontractaward,and this contract is by, or for,the department of defense asrequired by', 43330:'paragraph c4 ofsection 818 of the national defense authorization act for fiscalyear 2012 pub. l. 11281; or iv for the', 43331:'acquisition of services, if the subcontractor will furnish, as part of the service, any items that meet the criteria specified', 43332:'in paragraphs g1i through g1iii of this clause. 2 the contractor shall not insert the clause in subcontracts for– i', 43333:'commercial products and commercial services; or ii medical devices that are subject to the food and drug administration reporting requirements', 43334:'at 21 cfr 803. 3 the contractor shall not alter the clause other than to identify the appropriate parties. end', 43335:'of clause 52.2494 subpart 52.2 text of provisions and clauses 52.2473 52.247[reserved] 52.2471commercial bill of lading notations. as prescribed in', 43336:'47.1044, insert the following clause: commercial bill of lading notations feb 2006 when the contracting officer authorizes supplies to be', 43337:'shipped ona commercial billof lading and the contractor will be reimbursed these transportation costs as direct allowable costs, the contractor', 43338:'shall ensure before shipment is made that the commercial shipping documents are annotated with either of the following notations, as', 43339:'appropriate: a if the government is shown as the consignor or the consignee, the annotation shall be: transportation isforthe [name', 43340:'the specific agency] and theactual totaltransportation charges paidto the carriers by theconsignor or consignee are assignable to, and shall be', 43341:'reimbursed by, the government. b if the government is not shown as the consignor or the consignee, the annotation shall', 43342:'be: transportation isforthe [name the specific agency] and theactual totaltransportation charges paidto the carriers by the consignor or consignee shall', 43343:'be reimbursed by the government, pursuant to costreimbursement contract no. . this may be confirmed by contacting [name and address', 43344:'of the contract administration office listed in the contract]. end of clause 52.2472 permits, authorities, or franchises. as prescribed in', 43345:'47.2071a, insert the following clause: permits, authorities, or franchises jan 1997 a theofferor does □, does not □, hold authorization', 43346:'from thefederal highway administration fhwaor other cognizantregulatorybody. if authorization is held, it isas follows: name of regulatory body authorization no.', 43347:'b the offeror shall furnish to the government, if requested, copiesof the authorization before moving the material under any contract', 43348:'awarded. in addition, the offerorshall, at the offeror’s expense, obtain and maintain any permits, franchises, licenses, and other authorities issued', 43349:'by state and local governments. end of clause 52.2473 capability to perform a contract for the relocation of a federal', 43350:'office. as prescribed in 47.2071b, insert the following clause in solicitations and contracts for transportation or for transportationrelated services whena', 43351:'federal office isrelocated, to ensure that offerors are capable to perform interstate or intrastate moving contracts involvingthe relocationof federal offices:', 43352:'capability to perform a contract for the relocation of a federal officefeb 2006 a if the move specified in this', 43353:'contract is to be performed by the contractor as a carrier within the borders of more than one state, including', 43354:'the district of columbia, i.e., an interstate move, the contractor shall have obtained and hold appropriate and current operating authority', 43355:'from the federal motor carrier safety administration. b 1 if the move specified in this contract is to be performed', 43356:'by the contractor as a carrier wholly within the borders of one state or the district of columbia i.e., an', 43357:'intrastate move, the contractor shall, when required by the state, or the district of columbia, in which the move is', 43358:'to take place, have obtained and hold appropriate and current operating authority from that jurisdiction in the form of a', 43359:'certificate, permit, or equivalent license to operate. 2 if no authority to operate is required by the state or the', 43360:'district of columbia, the contractor as carrier shall maintain facilities, equipment, and a business address within the jurisdiction in which', 43361:'the move is to take place. however, if the move is to originate and/or terminate within an area of one', 43362:'state, or the district of columbia, that comprises a part of a recognized 52.2495 52.2474 federal acquisition regulation commercial zone', 43363:'see subpart b of 49 cfr part 372 the boundaries of which encompass portions of more than one state or', 43364:'the district ofcolumbia,itshallbe sufficientif the contractoras carrier maintains facilities, equipment, and a business address within the commercial zone and holds', 43365:'appropriate operating authority, if required, from the jurisdiction within which the contractor maintains the facilities, equipment, and business address. c', 43366:'if the move specified in this contract will not be performed bythe contractor as carrier, it must beperformed for the', 43367:'contractor by a carrier operating undera subcontract with the contractor. inthiscase, the contractor shall not be subject to the requirements', 43368:'of paragraphs a and b of this clause, but shall be responsible for requiring and ensuring that the subcontractor carrier', 43369:'complies with those requirements in every respect. d the contractor shall be in compliance with the applicable requirements of this', 43370:'clause at least 14 days before the date on which performance of the contract shall commence under the terms specified;', 43371:'except that, if the period from the date of award of the contract to the date that performance shall commence', 43372:'is less than 28 days, the contractor shall comply with the applicable requirements of this clause midway between the time', 43373:'of award and the time of commencement of performance. end of clause alternate i apr 1984. if a federal office', 43374:'move is intrastate and the contracting officer determines that it is in the government’s interestnot to apply the requirements for', 43375:'holding or obtaining state authorityto operate withinthe state, and to maintain a facility within the state or commercial zone, delete', 43376:'paragraph b of the basic clause and redesignate the remaining paragraphsb and c. in the 6 th line of the', 43377:'new paragraph b, delete the words paragraphsa and b above and replace them with paragraph a of this clause. 52.2474', 43378:'inspection of shipping and receiving facilities. as prescribed in 47.2071c, insert the following provision in solicitations for transportation or for', 43379:'transportationrelated services when it isdesired for offerors to inspect theshipping, receiving, or othersites to ensure realistic bids: inspection of shipping', 43380:'and receiving facilities apr 1984 a offerors are urged to inspect the shipping and receiving facilities where servicesare tobe performed', 43381:'and to satisfy themselves regarding allgeneral and local conditions that may affect thecostof contractperformance. b site visits have been scheduled', 43382:'as follows: locations dates times c for further information offerors may contact: name telephone end of clause 52.2475 familiarization with', 43383:'conditions. as prescribed in 47.2071d, insert the following clause in solicitations and contracts for transportation or for transportationrelated services to', 43384:'ensure that offerors become familiarwith conditions underwhich and where the services will be performed: familiarization with conditions apr 1984 the', 43385:'offeror shall becomefamiliar withallavailableinformationregarding difficulties that may be encountered and the conditions, including safetyprecautions, underwhich the work must beaccomplished underthe', 43386:'contract. the offerorshall not be relievedfrom assuming all responsibility for properly estimating the difficultiesand the cost of performing the services', 43387:'required in this contract because theofferor failed to investigate the conditionsor to become acquainted with all information concerning the services', 43388:'to be performed. end of clause 52.2496 subpart 52.2 text of provisions and clauses 52.2479 52.2476 financial statement. as prescribed', 43389:'in 47.2071e, insert the following provision in solicitations for transportation or for transportationrelated services toensure that offerors are prepared to', 43390:'furnish financial statements: financial statement apr 1984 the offeror shall, upon request, promptlyfurnish the government with acurrent certified statement of', 43391:'theofferor’s financial condition and such data asthe government may requestwith respect to the offeror’s operations. the government will use this', 43392:'information to determine the offeror’s financial responsibility and abilityto perform under the contract. failure of an offeror to complywith a', 43393:'request for information willsubject theoffer to possible rejection on responsibility grounds. end of clause 52.2477freight excluded. as prescribed in 47.2073d2,', 43394:'insert a clause substantially as follows in solicitations and contracts for transportation or for transportationrelated services when any commodities or', 43395:'types of shipments have been identified for exclusion: freight excluded apr 1984 excluded from the scope of this contract are', 43396:'shipments that can be more advantageously or economically moved via parcel post or small package carrier; shipments of unusual value,', 43397:'explosives and other dangerous articles, household goods, commodities in bulk, commodities injurious or contaminating to other freight; and shipments that', 43398:'the government may elect to move in government vehicles. end of clause 52.2478estimated weights or quantities not guaranteed. as prescribed', 43399:'in 47.2073e2, insert the following clause in solicitations and contracts for transportation or for transportationrelated services when weights or quantities', 43400:'are estimates: estimated weights or quantities not guaranteedapr 1984 the estimated weights or quantities are not a guarantee of actual', 43401:'weights or quantities, as the government does not guarantee anyparticular volume of trafficdescribed in this contract. however, to the extentservicesare', 43402:'required as described in this contractand in accordance with the terms of this contract, orders for these services will be', 43403:'placed with the contractor. end of clause 52.2479agreed weightgeneral freight. as prescribed in 47.2074a1, insert the following clause in solicitations', 43404:'and contracts for transportation or for transportationrelated services when the shipping activity determines the weight of shipments of freight other', 43405:'than household goods or office furniture: agreed weightgeneral freight apr 1984 the shipping activity shall determine the weight of each', 43406:'shipment. the weight shall be shown on the covering shipping document and shall be accepted by the contractor as the', 43407:'agreed weight. end of clause 52.2497 52.24710 federal acquisition regulation 52.24710 net weightgeneralfreight. as prescribed in 47.2074a2, insert the following', 43408:'clause in solicitations and contracts for transportation or for transportationrelated services whenthe weightof shipments offreight other than householdgoodsor office furniture', 43409:'is not known at the time of shipment and the contractor is responsible for determining the net weight of the', 43410:'shipments: net weightgeneral freightapr 1984 a the net weight of the shipment shall be determined by deducting the tare weight', 43411:'of the vehicle determined by having the empty vehicle with a full tank of fuel weighed by a certified weighmaster', 43412:'on a certified scale from the gross weight of the vehicle determined by having the loaded vehicle with a full', 43413:'tank of fuel weighed by a certified weighmaster on a certified scale. b the contractor shall attach the original copies', 43414:'of the empty and loaded weight certificates to the invoice for services. end of clause 52.24711net weighthousehold goodsor office furniture.', 43415:'as prescribed in 47.2074b, insert the following clause in contracts for transportation or for transportationrelated services when movements of government', 43416:'employees’ household goods or relocations ofgovernmentoffices are involved: net weighthousehold goods or office furniture apr 1984 a net weightfull loads.', 43417:'the net weight of the shipment shall be determined by deducting the tare weight of the vehicle determined by having', 43418:'a certified weighmaster weigh on a certified scale the empty vehicle with all blankets, pads, chains, dollies, hand trucks, and', 43419:'all other necessary equipment inside the vehicle from the gross weight of the vehicle determined by having a certified weighmaster', 43420:'weigh on a certified scale the fully loaded vehicle before arrival at destination. b net weightpart loads. the net weight', 43421:'of the first part load shall be determined in the same manner as specified for a full load. the net', 43422:'weight of the second part load shall be determined by using as the tare weight of the vehicle the gross', 43423:'weight of the vehicle containing the first part load and deducting this weight from the new gross weight determined by', 43424:'having the loaded vehicle weighed again, in the same manner as specified for the full load. the same procedure shall', 43425:'apply for each succeeding part load. c weight certificates. the contractor shall attach the original copy of each weight certificate', 43426:'to the invoice for services. end of clause 52.24712 supervision, labor, ormaterials. as prescribed in 47.2075b, insert a clause substantially', 43427:'as follows in solicitations and contracts for transportation or for transportationrelated services whenthe contractor is required tofurnish supervision, labor, or', 43428:'materials: supervision, labor, or materials apr 1984 the contractor shall furnish adequatesupervision, labor, materials, supplies, and equipment necessaryto perform all', 43429:'the services contemplated under this contractin anorderly, timely, and efficient manner. end of clause 52.24713 accessorial servicesmoving contracts. as prescribed', 43430:'in 47.2075c, insert a clause substantially as follows in solicitations and contracts for the transportation of household goods oroffice furniture:', 43431:'accessorial servicesmoving contracts apr 1984 a packing and/or crating and padding. the contractor shall 1 perform all of the packing', 43432:'and/or crating and padding necessary for the protection of the goods to be transported; 52.2498 subpart 52.2 text of provisions', 43433:'and clauses 52.24716 2 furnish packing containers, including, but not limited to, barrels, boxes, wardrobes, and cartons; all crating materials;', 43434:'and all padding materials and equipment; 3 furnishor cause to be furnished, when necessary, padding or other protective material for', 43435:'theinterior of the buildings, including elevators, from and to which the property will be moved under this contract; and 4', 43436:'ensure that all containersand materials are clean and ofqualitysufficient for protectionof the goods. b disassembling and reassembling of property and', 43437:'servicing appliances. the disassembling of property;e.g., beds and sectional bookcases, and the preparing of appliances; e.g., washers, driers, and record', 43438:'players, for shipment shall be performed by the contractor. the contractorshallreassemble the property and service the appliances upon delivery at', 43439:'the new location. c unpacking and/or uncrating and placement of property. the contractor shall unpack and/or uncrate all property that', 43440:'was packed and/or crated for movement under this contract. the contractor shall also place the property in the new location', 43441:'as instructed by the owner of the property or authorized representative, and shall remove all packing and similar or related', 43442:'material from the premises asrequested bytheowner. end of clause 52.24714 contractor responsibility for receipt of shipment. as prescribed in 47.2075d,', 43443:'insert the following clause in solicitations and contracts for transportation or for transportationrelated services: contractor responsibility for receipt of shipment', 43444:'apr 1984 the contractor shall diligently count and examine all goods tendered for shipment, receipt for them, and make appropriate', 43445:'written exception for any goods not in apparent good order. end of clause 52.24715 contractor responsibility for loading and unloading.', 43446:'as prescribed in 47.2075e, insert the following clause in solicitations and contracts for transportation or for transportationrelated services when the', 43447:'contractor is responsible for loading and unloading shipments: contractor responsibility for loading and unloading apr 1984 a 1unlessotherwisespecifiedinthiscontracttocoverstoredoororinsidedelivery,thecontractorshallloadand unload shipments', 43448:'at no additional expense to the government. 2 the government or its agent will place or receive freight atthe tailgate', 43449:'of the contractor’s vehicle. tailgate delivery, for purposes of thiscontract, isdefined as that which enablesa forklift truck or similar equipment,', 43450:'with operator only,to place or remove cargo from the tailgate ofthe contractor’svehicle. b if loading is the responsibility of the', 43451:'contractor, thecontractor shall perform all shoring, blocking, and bracing. the contractor shall provide dunnage at thecontractor’s expense. end of clause', 43452:'52.24716 contractor responsibility for returning undelivered freight. as prescribed in 47.2075f, insert the following clause in solicitations and contracts for', 43453:'transportation or for transportationrelated services when the contractor is responsible for returning undelivered freight: contractor responsibility for returning undelivered freight', 43454:'apr 1984 a when, through no fault ofthe contractor, a shipment cannot be delivered, the contractor shall contact the shipper', 43455:'for disposition instructions. if the shipmentis ordered returned to the origin point, the charges assessed for the return tripshallbe thesame', 43456:'asthe charges assessedforthe outbound trip. the shipper shall maintain a record of the goods that,throughno fault 52.2499 52.24717 federal acquisition', 43457:'regulation of the contractor, could not be delivered and are returned tothe shipper. if, at a future date, the returned', 43458:'goodsare determined to be related to aclaim against the contractor,the claim will be adjustedaccordingly. b when,throughthe fault of the contractor,a', 43459:'shipment cannot bedelivered, the contractor shall return the shipment to theorigin point at no chargeto thegovernment. any charges incurred for', 43460:'redelivery, which are in excess of thecharges that would have been incurred under this contract, shall be for thecontractor’s account', 43461:'in accordance with the default clause of the contract. end of clause 52.24717 charges. as prescribed in 47.2076a2, insert the', 43462:'following clause in solicitations and contracts for transportation or for transportationrelated services: charges apr 1984 in noeventshallcharges under this contractbe', 43463:'inexcess of chargesbased on thecontractor’s lowest rate available to the general public,or be in excess of charges based on rates', 43464:'otherwise tendered to the government bythe contractor for the same type of service. end of clause 52.24718 multiple shipments. as', 43465:'prescribed in 47.2076c5i, insert the following clause in solicitations and contracts for transportation or for transportationrelated services when multiple shipments', 43466:'are tendered at one time to the contractor for transportation from one origin to two or more consignees at the', 43467:'same destination: multiple shipments apr 1984 when multiple shipments are tendered at one time to the contractor for movement from', 43468:'one origin to multiple consignees at the same destination, the rate charged for each shipment shall be the rate applicableto', 43469:'theaggregate weight. end of clause 52.24719 stoppingin transit for partial unloading. as prescribed in 47.2076c5ii, insert the following clause in', 43470:'solicitations and contracts for transportation or for transportationrelated services when multiple shipments are tendered at one time to the contractor', 43471:'for transportation from one origin to two or more consignees along the route between origin and last destination: stopping in', 43472:'transit for partial unloading apr 1984 when multiple shipments are tendered at one time to the contractor for movement from', 43473:'one origin to two or more consignees along theroutebetween the origin and thelast destination, the rate chargedshallbe therate applicable to', 43474:'theaggregate weight, plus acharge of $ for each shipment unloaded at an intermediate point en route to the last destination.', 43475:'end of clause 52.24720 estimated quantities or weights for evaluation of offers. as prescribed in 47.2076c6, insert the following provision', 43476:'in solicitations for transportation or for transportation related services when quantities or weights of shipments between each origin and destination', 43477:'are not known, stating estimated quantity or weight for each origin/destination pair: estimated quantities or weights for evaluation of offersapr', 43478:'1984 52.2500 subpart 52.2 text of provisions and clauses 52.24723 for the purpose of evaluatingoffers, and for no other purpose,the', 43479:'following estimated quantities or weights will be considered as the quantities or weights to be shipped between each origin and', 43480:'destination listed: origin destination estimated quantity or weight end of clause 52.24721 contractor liability for personal injury and/or property damage.', 43481:'as prescribed in 47.2077c, insert the following clause in solicitations and contracts for transportation or for transportationrelated services: contractor liability', 43482:'for personal injury and/or property damage apr 1984 a the contractor assumes responsibility for all damage or injury to persons', 43483:'or property occasioned through the use, maintenance, and operationof the contractor’s vehicles orotherequipment by, or the action of, the contractor', 43484:'or the contractor’semployees andagents. b the contractor, atthe contractor’sexpense, shall maintain adequate public liability andpropertydamage insurance during the continuance of', 43485:'this contract, insuring the contractor against all claims for injury or damage. c thecontractor shall maintain workers’ compensation and other', 43486:'legally required insurance with respectto the contractor’sown employees and agents. d the government shall in no event be liable or', 43487:'responsible for damage or injury to any person or property occasioned through theuse, maintenance, or operation of any vehicle orotherequipment', 43488:'by, or the action of, the contractor or the contractor’semployees andagents inperforming underthis contract, and the government shall be indemnifiedandsaved', 43489:'harmless against claims for damage or injury in such cases. end of clause 52.24722 contractor liability for loss of and/or', 43490:'damage tofreight other than household goods. as prescribed in 47.2077d, insert the following clause in solicitations and contracts for the', 43491:'transportation of freight other than household goods: contractor liability for loss of and/or damage to freight other than household goods', 43492:'apr 1984 except when loss and/or damage arises out of causes beyond the control and without the fault or negligence', 43493:'of the contractor, the contractor shall assume full liability for any and all goods lost and/or damaged in the movement', 43494:'covered by this contract. end of clause 52.24723 contractor liability for loss of and/or damage to household goods. as prescribed', 43495:'in 47.2077e, insert the following clause: contractor liability for loss of and/or damage to household goods jan 1991 a except', 43496:'when loss and/or damage arise out of causes beyond the control and without the fault or negligence of the contractor,', 43497:'the contractor shall be liable to the owner for the loss of and/ordamage to any articlewhile being 1 packed, picked', 43498:'up, loaded, transported, delivered, unloaded, or unpacked; 52.2501 52.24724 federal acquisition regulation 2 stored in transit; or 3 serviced appliances,', 43499:'etc. by a third person hired by the contractor to perform the servicing. b the contractor shall be liable for', 43500:'loss and/or damage discovered by the owner if written notice of such loss and/or damage is dispatched tothe contractor not', 43501:'later than 75 daysfollowing the date of delivery. c the contractor shall indemnify the owner of the goods at a', 43502:'rate of cents per pound per article. end of clause 52.24724 advance notification by the government. as prescribed in 47.2078a1,', 43503:'insert the following clause in solicitations and contracts for transportation or for transportationrelated services when the government is responsible for', 43504:'notifying the contractor of specific service times or unusual shipments: advance notification by the government apr 1984 the government will', 43505:'notify the contractor hours in advance of the number of pieces and weight of all normal shipments and the time', 43506:'the shipment will be available for pickup. on otherthannormal shipments, the government will furnish additional information; e.g., dimension of oversized', 43507:'pieces, as necessary to determine the amount of equipment and/or manpower needed to perform the required services. end of clause', 43508:'52.24725 governmentfurnished equipment withor withoutoperators. as prescribed in 47.2078a2i, insert the following clause in solicitations and contracts for transportation or', 43509:'for transportationrelated services when the government furnishes equipment with or without operators: governmentfurnished equipment with or without operators apr 1984', 43510:'the government will provide [insert equipment; e.g.,forklifts] with or without operators at [strike out with or without, as applicable, and', 43511:'insert origin, destination, or both] to assist in [insert loading, unloading, or both], when required. end of clause 52.24726 government', 43512:'direction and marking. as prescribed in 47.2078a3, insert the following clause in solicitations and contracts for transportation or for transportationrelated', 43513:'services whenoffice relocations are involved: government direction and marking apr 1984 the agency being relocatedshalltag or mark property, showing floor,', 43514:'room number,andlocationwhere property is to beplacedin thenew building. the agency shall providesufficient personnel to directthe contractor’spersonnel in the placement of', 43515:'the property at destination. end of clause 52.24727 contract notaffected by oral agreement. as prescribed in 47.2078b, insert the following', 43516:'clause in solicitations and contracts for transportation or for transportationrelated services: contract not affected by oral agreementapr 1984 52.2502 subpart', 43517:'52.2 text of provisions and clauses 52.24729 no oral statement of any person shall modify orotherwise affect the terms, conditions,', 43518:'or specifications stated inthis contract. all modificationsto thecontract must bemade in writingby the contracting officer or an authorizedrepresentative. end of', 43519:'clause 52.24728 contractor’s invoices. as prescribed in 47.2079c, insert the following clause in solicitations and contracts for drayage or other', 43520:'term con tracts for transportation or for transportationrelated services: contractor’s invoices apr 1984 the contractor shall submit itemized invoices as', 43521:'instructed by the agency ordering services under this contract. the contractor shall annotate each invoice withthe contract number and other', 43522:'ordering officedocument identification. end of clause 52.24729 f.o.b. origin. as prescribed in 47.3031c, insert the following clause: f.o.b. origin feb', 43523:'2006 a the term f.o.b. origin, as used in this clause, means free of expense to the government delivered 1', 43524:'on board the indicated type of conveyance of the carrier or of the government, if specified at a designated point', 43525:'in the city, county, and statefrom whichthe shipment will be made and from which linehaul transportation serviceas distinguished from switching,', 43526:'local drayage, or other terminal service will begin; 2 to,andplacedon,the carrier’s wharf at shipside, withinreachof the ship’sloading tackle, whenthe shipping', 43527:'point is within a port area havingwater transportationservice or thecarrier’s freight station; 3 to a u.s. postal service facility; or', 43528:'4 if stated in the solicitation, to any government designated point located within the same city or commercial zone as', 43529:'the f.o.b. origin point specified in the contract the federal motor carrier safety administration prescribes commercial zones at subpart b', 43530:'of 49 cfr part 372. b the contractor shall 1 i pack and mark the shipment to comply with contract', 43531:'specifications; or ii in the absence of specifications, prepare the shipment in conformance with carrier requirements to protect the goods', 43532:'and to ensure assessmentof the lowestapplicable transportationcharge; 2 i order specified carrier equipment when requested by the government; or ii', 43533:'if not specified, order appropriate carrier equipment not in excess of capacity to accommodate shipment; 3 deliverthe shipment in good', 43534:'order and condition to the carrier, and load, stow, trim, block, and/or brace carload or truckloadshipment when loaded bythe contractor', 43535:'on or in the carrier’s conveyanceas required by carrier rules and regulations; 4 be responsible for any loss of and/or', 43536:'damage to the goods i occurring before delivery to the carrier; ii resulting from improper packing and marking; or iii', 43537:'resulting from improper loading, stowing, trimming, blocking, and/or bracing of the shipment, if loaded by the contractor on or in', 43538:'the carrier’s conveyance; 5 completethe government bill of lading supplied by the ordering agency or, when a government bill of', 43539:'lading is not supplied, prepare a commercial bill of lading or other transportation receipt. the bill of lading shall show', 43540:'iadescription ofthe shipment in terms of the governing freightclassification ortariff or government rate tender under which lowest freight rates are', 43541:'applicable; iithe seals affixedto theconveyance with theirserialnumbers or other identification; iii lengths and capacities of cars or trucks ordered and', 43542:'furnished; iv otherpertinent information required to effect prompt delivery to the consignee, including name,delivery address, postal address and zip code', 43543:'of consignee, routing, etc. ; 52.2503 52.24730 federal acquisition regulation v special instructions or annotations requested by the ordering agency', 43544:'for commercial bills of lading; e.g., this shipment is the property of, and the freight charges paid to the carriers', 43545:'will be reimbursed by, the government;and vi the signature of the carrier’s agent and the date the shipment is received', 43546:'bythe carrier; and 6 distribute the copies of thebill oflading, orothertransportation receipts, as directed by the ordering agency. c these', 43547:'contractor responsibilities are specified for performance at the plant or plants at which the supplies are to be finally inspected', 43548:'and accepted, unless thefacilities for shipment by carrier’sequipment are notavailableat the contractor’s plant, in which case the responsibilities shall be', 43549:'performed f.o.b. the point or points in the same or nearest city where the specified carrier’s facilities areavailable; subject, however,', 43550:'to the following qualifications: 1 if the contractor’s shipping plant is located in the state of alaska orhawaii,the contractor shall', 43551:'deliver the supplies listed for shipment outside alaska orhawaii to the port of loading in alaska orhawaii,respectively, as specified in', 43552:'thecontract, at contractor’sexpense, andto that extent the contract shall be f.o.b. destination. 2 notwithstanding paragraph c1 of thisclause, if the', 43553:'contractor’s shippingplant is located in the state of hawaii, and the contract requires delivery to be made by container service,', 43554:'the contractor shall deliver the supplies, at the contractor’sexpense, to thecontainer yard in the same or nearestcity where seavan container', 43555:'service is available. end of clause 52.24730 f.o.b. origin, contractor’s facility. as prescribed in 47.3032c, insert the following clause in', 43556:'solicitations and contracts when the delivery term is f.o.b. origin, contractor’sfacility: f.o.b. origin, contractor’s facility feb 2006 a theterm f.o.b.', 43557:'origin, contractor’s facility, as used in this clause, means free ofexpenseto the government delivered on board the indicated type ofconveyance', 43558:'ofthe carrier or of the government,if specified at thedesignated facility, onthe named street or highway, in the city, county, andstate', 43559:'from which the shipment willbe made. b the contractor shall 1 i pack and mark the shipment to comply with', 43560:'contract specifications; or ii in the absence of specifications, prepare the shipment in conformance with carrier requirements to protect the', 43561:'goods and to ensure assessmentof the lowestapplicable transportationcharge; 2 i order specified carrier equipment when requested by the government; or', 43562:'ii if not specified, order appropriate carrier equipment not in excess of capacity to accommodate shipment; 3 deliverthe shipment in', 43563:'good order and condition to the carrier, and load, stow, trim, block, and/or brace carload or truckloadshipment when loaded bythe', 43564:'contractor on or in the carrier’s conveyanceas required by carrier rules and regulations; 4 be responsible for any loss of', 43565:'and/or damage to the goods i occurring before delivery to the carrier; ii resulting from improper packing and marking; or', 43566:'iii resulting from improper loading, stowing, trimming, blocking, and/or bracing of the shipment, if loaded by the contractor on or', 43567:'in the carrier’s conveyance; 5 completethe government bill of lading supplied by the ordering agency or, when a government bill', 43568:'of lading is not supplied, prepare a commercial bill of lading or other transportation receipt. the bill of lading shall', 43569:'show iadescription ofthe shipment in terms of the governing freightclassification ortariff or government rate tender under which lowest freight rates', 43570:'are applicable; iithe seals affixedto theconveyance with theirserialnumbers or other identification; iii lengths and capacities of cars or trucks ordered', 43571:'and furnished; iv otherpertinent information required to effect prompt delivery to the consignee, including name,delivery address, postal address and zip', 43572:'code of consignee, routing, etc. ; v special instructions or annotations requested by the ordering agency for bills of lading;', 43573:'e.g.,this shipment is the property of, and the freight charges paid to the carriers will be reimbursed by, the government;', 43574:'and vi the signature of the carrier’s agent and the date the shipment is received bythe carrier; and 52.2504 subpart', 43575:'52.2 text of provisions and clauses 52.24731 6 distribute the copies of thebill oflading, orothertransportation receipts, as directed by the', 43576:'ordering agency. end of clause 52.24731 f.o.b. origin, freight allowed. as prescribed in 47.3033c, insert the following clause: f.o.b. origin,', 43577:'freight allowed feb 2006 a the term f.o.b. origin, freight allowed, as used in this clause, means 1 free of', 43578:'expense to the government delivered i on board the indicated type of conveyance of the carrier or of the government,', 43579:'if specified at a designated point in the city, county, and statefrom whichthe shipmentswill be made and from whichlinehaul transportation', 43580:'service as distinguished from switching, local drayage, or other terminal service will begin; iito, and placed on, thecarrier’s wharf at', 43581:'shipsidewithin reach of the ship’s loading tackle when the shipping point is within a port area havingwater transportationservice or thecarrier’s', 43582:'freight station; iii to a u.s. postal service facility; or iv if stated in the solicitation, to any governmentdesignated point', 43583:'located within the same city or commercial zone as the f.o.b. origin point specified in the contract the federal motor', 43584:'carrier safety administration prescribes commercial zones at subpart b of 49 cfr part 372; and 2 an allowance for freight,based', 43585:'on applicable publishedtariff rates or government rate tenders between the points specified in the contract, is deducted from the contract', 43586:'price. b the contractor shall 1 i pack and mark the shipment to comply with contract specifications; or ii in', 43587:'the absence of specifications, prepare the shipment in conformance with carrier requirements to protect the goods and to ensure assessmentof', 43588:'the lowestapplicable transportationcharge; 2 i order specified carrier equipment when requested by the government; or ii if not specified, order', 43589:'appropriate carrier equipment not in excess of capacity to accommodate shipment; 3 deliverthe shipment in good order and condition to', 43590:'the carrier, and load, stow, trim, block, and/or brace carload or truckloadshipment when loaded bythe contractor on or in the', 43591:'carrier’s conveyanceas required by carrier rules and regulations; 4 be responsible for any loss of and/or damage to the goods', 43592:'i occurring before delivery to the carrier; ii resulting from improper packing and marking; or iii resulting from improper loading,', 43593:'stowing, trimming, blocking, and/or bracing of the shipment, if loaded by the contractor on or in the carrier’s conveyance; 5', 43594:'completethe government bill of lading supplied by the ordering agency, or when a government bill of lading is not supplied,', 43595:'prepare a commercial bill of lading or other transportation receipt. the bill of lading shall show iadescription ofthe shipment in', 43596:'terms of the governing freightclassification ortariff or government rate tender under which lowest freight rates are applicable; iithe seals affixedto', 43597:'theconveyance with theirserialnumbers or other identification; iii lengths and capacities of cars or trucks ordered and furnished; iv otherpertinent information', 43598:'required to effect prompt delivery to the consignee, including name,delivery address, postal address and zip code of consignee, routing, etc.', 43599:'; v special instructions or annotations requested by the ordering agency for commercial bills of lading;e.g., this shipment is the', 43600:'property of, and the freight charges paid to the carriers will be reimbursed by, the government; and vi the signature', 43601:'of the carrier’s agent and the date the shipment is received bythe carrier; and 6 distribute the copies of thebill', 43602:'oflading, orothertransportation receipts, as directed by the ordering agency. c these contractor responsibilities are specified for performance at the plant', 43603:'or plants at which the supplies are to be finally inspected and accepted, unless thefacilities for shipment by carrier’sequipment are', 43604:'notavailableat the contractor’s plant, in which case the responsibilities shall be performed f.o.b. the point or points in the same', 43605:'or nearest city where the specified carrier’s facilities areavailable; subject, however, to the following qualifications: 52.2505 52.24732 federal acquisition regulation', 43606:'1 if the contractor’s shipping plant is located in the state of alaska orhawaii,the contractor shall deliver the supplies listed', 43607:'for shipment outside alaska orhawaii to the port of loading in alaska orhawaii,respectively, as specified in thecontract, at contractor’sexpense, andto', 43608:'that extent the contract shall be f.o.b. destination. 2 notwithstanding paragraph c1 of thisclause, if the contractor’s shippingplant is located', 43609:'in the state of hawaii, and the contract requires delivery to be made by container service, the contractor shall deliver', 43610:'the supplies, at the contractor’sexpense, to thecontainer yard in the same or nearestcity where seavan container service is available. end', 43611:'of clause 52.24732 f.o.b. origin, freight prepaid. as prescribed in 47.3034c, insert the following clause: f.o.b. origin, freight prepaid feb', 43612:'2006 a the term f.o.b. origin, freight prepaid, as used in this clause, means 1 free of expense to the', 43613:'government delivered i on board the indicated type of conveyance of the carrier or of the government, if specified at', 43614:'a designated point in the city, county, and statefrom whichthe shipmentswill be made and from whichlinehaul transportation service as distinguished', 43615:'from switching, local drayage, or other terminal service will begin; iito, and placed on, thecarrier’s wharf at shipside, within reach', 43616:'of the ship’s loadingtackle, when theshipping point is within a port area havingwater transportationservice or thecarrier’s freight station; iii to', 43617:'a u.s. postal service facility; or iv if stated in the solicitation, to any governmentdesignated point located within the same', 43618:'city or commercial zone as the f.o.b. origin point specified in the contract the federal motor carrier safety administration prescribes', 43619:'commercial zones at subpart b of 49 cfr part 372; and 2 the cost oftransportation,ultimately the government’s obligation, isprepaid by', 43620:'the contractor tothe point specified in the contract. b the contractor shall 1 i pack and mark the shipment to', 43621:'comply with contract specifications; or ii in the absence of specifications, prepare the shipment in conformance with carrier requirements to', 43622:'protect the goods and to ensure assessmentof the lowestapplicable transportationcharge; 2 i order specified carrier equipment when requested by the', 43623:'government; or ii if not specified, order appropriate carrier equipment not in excess of capacity to accommodate shipment; 3 deliverthe', 43624:'shipment in good order and condition to the carrier, and load, stow, trim, block, and/or brace carload or truckloadshipment when', 43625:'loaded bythe contractor on or in the carrier’s conveyanceas required by carrier rules and regulations; 4 be responsible for any', 43626:'loss of and/or damage to the goods i occurring before delivery to the carrier; ii resulting from improper packing or', 43627:'marking; or iii resulting from improper loading, stowing, trimming, blocking, and/or bracing of the shipment, if loaded by the contractor', 43628:'on or in the carrier’s conveyance; 5 prepare a bill of lading or other transportation receipt. the bill of lading', 43629:'shall show iadescription ofthe shipment in terms of the governing freightclassification ortariff or government rate tender under which lowest freight', 43630:'rates are applicable; iithe seals affixedto theconveyance with theirserialnumbers or other identification; iii lengths and capacities of cars or trucks', 43631:'ordered and furnished; iv otherpertinent information required to effect prompt delivery to the consignee, including name,delivery address, postal address and', 43632:'zip code of consignee, routing, etc. ; v special instructions or annotations requested by the ordering agency for bills of', 43633:'lading; e.g., this shipment is the property of, and the freight charges paid to the carriers will be reimbursed by,', 43634:'the government; and vi the signature of the carrier’s agent and the date the shipment is received bythe carrier; 6', 43635:'distribute the copies of the bill of lading, or other transportation receipts, as directed by the ordering agency; and 7', 43636:'prepay all freight charges to theextent specified inthe contract. 52.2506 subpart 52.2 text of provisions and clauses 52.24733 c these', 43637:'contractor responsibilities are specified for performance at the plant or plants at which these supplies are to be finally inspected', 43638:'and accepted, unless thefacilities for shipment by carrier’sequipment are notavailableat the contractor’s plant, in which case the responsibilities shall be', 43639:'performed f.o.b. the point or points in the same or nearest city where the specified carrier’s facilities areavailable; subject, however,', 43640:'to the following qualifications: 1 if the contractor’s shipping plant is located in the state of alaska orhawaii,the contractor shall', 43641:'deliver the supplies listed for shipment outside alaska orhawaii to the port of loading in alaska orhawaii,respectively, as specified in', 43642:'thecontract, at contractor’sexpense, andto that extent the contract shall be f.o.b. destination. 2 notwithstanding paragraph c1 of thisclause, if the', 43643:'contractor’s shippingplant is located in the state of hawaii, and the contract requires delivery to be made by container service,', 43644:'the contractor shall deliver the supplies, at the contractor’sexpense, to thecontainer yard in the same or nearestcity where seavan container', 43645:'service is available. end of clause 52.24733 f.o.b. origin, with differentials. as prescribed in 47.3035c, insert the following clause: f.o.b.', 43646:'origin, with differentials feb 2006 a theterm f.o.b. origin, with differentials, as used in this clause, means 1 free of', 43647:'expense to the government delivered i on board the indicated type of conveyance of the carrier or of the government,', 43648:'if specified at a designated point in the city, county, and statefrom whichthe shipmentswill be made and from whichlinehaul transportation', 43649:'service as distinguished from switching, local drayage, or other terminal service will begin; iito, and placed on, thecarrier’s wharf at', 43650:'shipside, within reach of the ship’s loadingtackle, when theshipping point is within a port area havingwater transportationservice or thecarrier’s freight', 43651:'station; iii to a u.s. postal service facility; or iv if stated in the solicitation, to any governmentdesignated point located', 43652:'within the same city or commercial zone as the f.o.b. origin point specified in the contract the federal motor carrier', 43653:'safety administration prescribes commercial zones at subpart b of 49 cfr part 372; and 2 differentials for mode of transportation,', 43654:'type ofvehicle,or place of delivery as indicated incontractor’s offer may be added to the contract price. b the contractor shall', 43655:'1 i pack and mark the shipment to comply with contract specification; or ii in the absence of specifications, prepare', 43656:'the shipment in conformance with carrier requirements to protect the goods and to ensure assessmentof the lowestapplicable transportationcharge; 2 i', 43657:'order specified carrier equipment when requested by the government; or ii if not specified, order appropriate carrier equipment not in', 43658:'excess of capacity to accommodate shipment; 3 deliverthe shipment in good order and condition to the carrier, and load, stow,', 43659:'trim, block, and/or brace carload or truckloadshipment when loaded bythe contractor on or in the carrier’s conveyanceas required by carrier', 43660:'rules and regulations; 4 be responsible for any loss of and/or damage to the goods i occurring before delivery to', 43661:'the carrier; ii resulting from improper packing and marking; or iii resulting from improper loading, stowing, trimming, blocking, and/or bracing', 43662:'of the shipment, if loaded by the contractor on or in the carrier’s conveyance; 5 completethe government bill of lading', 43663:'supplied by the ordering agency or, when a government bill of lading is not supplied, prepare a commercial bill of', 43664:'lading or other transportation receipt. the bill of lading shall show iadescription ofthe shipment in terms of the governing freightclassification', 43665:'ortariff or government rate tender under which lowest freight rates are applicable; iithe seals affixedto theconveyance with theirserialnumbers or other', 43666:'identification; iii lengths and capacities of cars or trucks ordered and furnished; iv otherpertinent information required to effect prompt delivery', 43667:'to the consignee, including name,delivery address, postal address and zip code of consignee, routing, etc. ; 52.2507 52.24734 federal acquisition', 43668:'regulation v special instructions or annotations requested by the ordering agency for bills of lading; e.g., this shipment is the', 43669:'property of, and the freight charges paid to the carrier will be reimbursed by, the government; and vi the signature', 43670:'of the carrier’s agent and the date the shipment is received bythe carrier; and 6 distribute the copies of thebill', 43671:'oflading, orothertransportation receipts, as directed by the ordering agency. c 1itmaybeadvantageoustotheofferortosubmitf.o.b. originpricesthatincludeonlythelowestcosttothe contractor for loadingof shipment at the contractor’s plant', 43672:'or most favorable shipping point. the cost beyond thatplant or point of bringing the supplies to the place of delivery', 43673:'and the cost of loading, blocking, and bracing on the type vehicle specified bythe government at the time of shipment', 43674:'mayexceed the offeror’s lowest cost whenthe offerorships for theofferor’s account. accordingly, the offeror may indicate differentials that maybe addedto the', 43675:'offered price. these differentialsshallbe expressed as a ratein cents for each 100 poundscwt of thesupplies for one or moreof the', 43676:'options under this clause that the government may specify at the time of shipment. 2 these differentialswill be considered in', 43677:'the evaluation ofoffers to determine the lowest overall cost to the government. if, at the time of shipment, the government', 43678:'specifies a mode of transportation, type of vehicle, or place of delivery for which theofferor has set forth a differential,the', 43679:'contractor shall include the total of suchdifferentialcosts the applicable differential multiplied by the actual weight as a separate reimbursable item', 43680:'onthe contractor’sinvoice for the supplies. 3 the government shall have the option of performing or arranging at its own expense', 43681:'any transportation from contractor’sshipping plantor point to carrier’s facility at the time of shipment and, whenever this option is exercised,', 43682:'the government shall make no reimbursementbased on a quoted differential. 4 offeror’s differentials in cents for each 100 pounds for', 43683:'optional mode of transportation, types of vehicle, transportation within a mode, orplace of delivery, specifiedby the government at thetime ofshipmentand', 43684:'not included in thef.o.b. origin price indicated in the schedule by theofferor,are as follows: carload, truckload, lessload, wharf,flatcar, driveaway, etc.', 43685:'end of clause 52.24734 f.o.b. destination. as prescribed in 47.3036c, insert the following clause: f.o.b. destination jan 1991 a the', 43686:'term f.o.b. destination, as used in this clause, means 1 free of expense to the government, on board the carrier’s', 43687:'conveyance, at a specified delivery point where the consignee’s facility plant, warehouse, store, lot, or otherlocationto which shipmentcan be made', 43688:'is located;and 2 supplies shall be delivered to the destination consignee’s wharf if destination is a port city andsupplies are', 43689:'for export, warehouse unloading platform, or receiving dock, atthe expense of the contractor. the government shall notbe liable for any', 43690:'delivery, storage, demurrage,accessorial, orother charges involved before the actual delivery or constructive placement as definedin carrier tariffs of thesupplies to', 43691:'the destination, unless such charges are caused by an actor order of thegovernment acting in its contractual capacity. if rail', 43692:'carrier is used, supplies shall bedelivered to the specified unloading platform of the consignee. if motor carrier including piggyback is', 43693:'used, supplies shall be delivered to truck tailgate at the unloading platform of the consignee, except when the supplies delivered', 43694:'meet the requirements of item568 of the national motor freight classification for heavy or bulky freight. when supplies meeting the', 43695:'requirements of the referenced item568 are delivered, unloading including movement to the tailgate shall be performed by the consignee, with', 43696:'assistance from the truck driver, if requested. if the contractoruses railcarrier or freight forwardedforless than carload shipments, the contractor shall', 43697:'ensure that the carrier willfurnish tailgate delivery, when required, if transfer to truckis required to completedelivery to consignee. b the', 43698:'contractor shall 1 i pack and mark the shipment to comply with contract specifications; or ii in the absence of', 43699:'specifications, prepare the shipment in conformance with carrier requirements; 2 prepare and distribute commercial bills of lading; 3 deliver the', 43700:'shipment in good order and condition to the point of delivery specified in the contract; 52.2508 subpart 52.2 text of', 43701:'provisions and clauses 52.24736 4 be responsible for any loss of and/or damage to the goods occurring before receipt of', 43702:'the shipment by the consignee at the delivery point specified in the contract; 5 furnish a delivery schedule and designate', 43703:'the mode of delivering carrier; and 6 pay and bear all chargesto thespecified point of delivery. end of clause 52.24735', 43704:'f.o.b. destination,within consignee’s premises. as prescribed in 47.3037c, insert the following clause in solicitations and contracts when the delivery term', 43705:'is f.o.b. destination, withinconsignee’s premises: f.o.b. destination, within consignee’s premisesapr 1984 a theterm f.o.b. destination, within consignee’s premises, as used', 43706:'in this clause, means free ofexpenseto the government delivered and laid down within the doors of the consignee’spremises, including delivery', 43707:'tospecific rooms within a building if so specified. b the contractor shall 1 i pack and mark the shipment to', 43708:'comply with contract specifications; or ii in the absence of specifications, prepare the shipment in conformance with carrier requirements; 2', 43709:'prepare and distribute commercial bills of lading; 3 deliver the shipment in good order and condition to the point of', 43710:'delivery specified in the contract; 4 be responsible for any loss of and/or damage to the goods occurring before receipt', 43711:'of the shipment by the consignee at the delivery point specified in the contract; 5 furnish a delivery schedule and', 43712:'designate the mode of delivering carrier; and 6 pay and bear all chargesto thespecified point of delivery. end of clause', 43713:'52.24736 f.a.s. vessel, port of shipment. as prescribed in 47.3038c, insert the following clause in solicitations and contracts when the', 43714:'delivery term is f.a.s. vessel, port of shipment: f.a.s. vessel, port of shipment apr 1984 a the term f.a.s. vessel,', 43715:'port of shipment, as used in this clause, means free of expense to the government delivered alongside the ocean vessel', 43716:'and within reach of its loading tackle at the specified port of shipment. b the contractor shall 1 i pack', 43717:'and mark the shipment to comply with contract specifications; or ii in the absence of specifications, prepare the shipment for', 43718:'ocean transportation in conformance with carrier requirementsto protect thegoods andto ensure assessment of the lowest applicable transportation charge; 2 i', 43719:'deliver the shipment in good order and condition alongside the ocean vessel and within reach of its loading tackle, at', 43720:'the point of delivery and on the date or within the period specified in the contract; and iipay and bearall', 43721:'applicable charges,including transportation costs, wharfage, handling, and heavylift charges, if necessary, up to this point; 3 provide a clean dock', 43722:'or ship’s receipt; 4 be responsible for any loss of and/or damage to the goods occurring before delivery of the', 43723:'shipment to the point specified in the contract; and 5 at the government’s requestand expense,assist obtaining thedocuments required for i', 43724:'exportation; or ii importation at destination. end of clause 52.2509 52.24737 federal acquisition regulation 52.24737 f.o.b. vessel, port of shipment.', 43725:'as prescribed in 47.3039c, insert the following clause in solicitations and contracts when the delivery term is f.o.b. vessel, port', 43726:'of shipment: f.o.b. vessel, port of shipment apr 1984 a the term f.o.b. vessel, port of shipment, as used in', 43727:'this clause, means free of expense to the government loaded, stowed, and trimmed on board the ocean vessel at the', 43728:'specified port of shipment. b the contractor shall 1 i pack and mark the shipment to comply with contract specifications;', 43729:'or ii in the absence of specifications, prepare the shipment for ocean transportation in conformance with carrier requirementsto protect thegoods', 43730:'andto ensure assessment of the lowest applicable transportation charge; 2 i deliver the shipment on board the ocean vessel in', 43731:'good order and condition on the date or within the period fixed; and iipay and bearall charges incurred in placing', 43732:'the shipment actually onboard; 3 provide a clean ship’s receiptor onboard ocean bill of lading; 4 be responsible for any', 43733:'loss of and/or damage to the goods occurring before delivery of the shipment on board the ocean vessel; and 5', 43734:'at the government’s requestand expense,assist in obtainingthe documents required for i exportation; or ii importation at destination. end of clause', 43735:'52.24738 f.o.b. inland carrier, point of exportation. as prescribed in 47.30310c, insert the following clause in solicitations and contracts when', 43736:'the delivery term is f.o.b. inland carrier, point of exportation: f.o.b. inland carrier, point of exportation feb 2006 a theterm', 43737:'f.o.b. inland carrier, point of exportation, as used in this clause, means free ofexpenseto the government, on board the conveyance', 43738:'of the inland carrier, deliveredto the specified point of exportation. b the contractor shall 1 i pack and mark the', 43739:'shipment to comply with contract specifications; or ii in the absence of specifications, prepare the shipment for ocean transportation in', 43740:'conformance with carrier requirementsto protect thegoods andto ensure assessment of the lowest applicable transportation charge; 2 prepare and distribute commercial', 43741:'bills of lading or other transportation receipt; 3 i deliver the shipment in good order and condition in or on', 43742:'the conveyance of the carrier on the date or within the period specified; and iipay and bearall applicable charges,including transportation', 43743:'costs, to the point of delivery specifiedin the contract; 4 be responsible for any loss of and/or damage to the', 43744:'goods occurring before delivery of the shipment to the point of delivery in the contract; and 5 at the government’s', 43745:'requestand expense,assist in obtainingthe documents required for i exportation; or ii importation at destination. end of clause 52.24739 f.o.b. inland', 43746:'point, country of importation. as prescribed in 47.30311c, insert the following clause in solicitations and contracts when the delivery term', 43747:'is f.o.b. inland point, country of importation: 52.2510 subpart 52.2 text of provisions and clauses 52.24741 f.o.b. inland point, country', 43748:'of importation apr 1984 a the term f.o.b. inland point, country of importation, as used in this clause, means free', 43749:'of expense to the government, on board the indicated type ofconveyance ofthe carrier, delivered tothe specified inland point where the', 43750:'consignee’s facility is located. b the contractor shall 1 i pack and mark the shipment to comply with contract specifications;', 43751:'or ii in the absence of specifications, prepare the shipment for ocean transportation in conformance with carrier requirements to protect', 43752:'the goods; 2 ideliver,inorontheinlandcarrier’sconveyance,theshipmentingoodorderandconditiontothespecified inland point where the consignee’s facilityis located; and iipay and bearall applicable charges incurred up to', 43753:'the point ofdelivery,including transportation costs;export, import, or other fees or taxes; costs of landing; wharfage costs; customs duties and costs', 43754:'of certificates of origin; consular invoices; and other documents that may be required for importation; and 3 be responsible for', 43755:'anyloss of and/or damage to thegoods until their arrival on orin the carrier’s conveyance at the specified inland point. end', 43756:'of clause 52.24740 ex dock, pier, or warehouse, port ofimportation. as prescribed in 47.30312c, insert the following clause in solicitations', 43757:'and contracts when the delivery term is ex dock, pier, or warehouse, port of importation: ex dock, pier, or warehouse,', 43758:'port of importation apr 1984 a theterm ex dock, pier, or warehouse, port of importation, as used in this clause,', 43759:'means freeof expense to the government delivered on the designated dock or pier or in the warehouse at the specified', 43760:'port of importation. b the contractor shall 1 i pack and mark the shipment to comply with contract specifications; or', 43761:'ii in the absence of specifications, prepare the shipment for ocean transportation in conformance with carrier requirements to protect the', 43762:'goods; 2 i deliver shipment in good order and condition; and iipay and bearall charges up to the point ofdelivery', 43763:'specified in the contract, including transportation costs; export, import, or other fees or taxes; costs of wharfage and landing, if', 43764:'any; customs duties; and costs of certificates of origin, consular invoices, or other documents that may be required for exportation', 43765:'or importation; and 3 be responsible for any loss of and/or damage to the goods occurring before delivery of the', 43766:'shipment to the point of delivery specified in the contract. end of clause 52.24741 c.& f. destination. as prescribed in', 43767:'47.30313c, insert the following clause in solicitations and contracts when the delivery term is c.& f. destination: c.&f. destination apr', 43768:'1984 a the term c.& f. destination, as used in this clause, means free of expense to the government delivered', 43769:'on board the ocean vessel to the specifiedpointof destination, withthe cost of transportationpaid by the contractor. b the contractor shall', 43770:'1 i pack and mark the shipment to comply with contract specifications; or ii in the absence of specifications, prepare', 43771:'the shipment for ocean transportation in conformance with carrier requirements; 2 i deliver the shipment in good order and condition;', 43772:'and 52.2511 52.24742 federal acquisition regulation iipay and bearall applicable charges to the point of destination specified in thecontract, includingtransportation', 43773:'costs andexport taxes or other fees or charges levied because of exportation; 3 obtain and dispatch promptly to the government', 43774:'clean onboard ocean bills of lading to the specified point of destination; 4 be responsible for any loss of and/or', 43775:'damage to the goods occurring before delivery; and 5 at the government’s requestand expense,provide certificates of origin, consular invoices, oranyotherdocuments', 43776:'issued in the country of origin or of shipment, or both, that may be required for importation into the country', 43777:'of destination. end of clause 52.24742 c.i.f. destination. as prescribed in 47.30314c, insert the following clause in solicitations and contracts', 43778:'when the delivery term is c.i.f. destination: c.i.f. destination apr 1984 a the term c.i.f. destination, as used in this', 43779:'clause, means free of expense to the government delivered on board the ocean vessel to the specifiedpointof destination, withthe cost', 43780:'of transportationandmarineinsurance paidby the contractor. b the contractor shall 1 i pack and mark the shipment to comply with contract', 43781:'specifications; or ii in the absence of specifications, prepare the shipment for ocean transportation in conformance with carrier requirements; 2', 43782:'i deliver the shipment in good order and condition; and iipay and bearall applicable charges to the point of destination', 43783:'specified in thecontract, includingtransportation costs andexport taxes or other fees or charges levied because of exportation; 3 obtain and dispatch', 43784:'promptly to the government clean onboard ocean bills of lading to the specified point of destination; 4 be responsible for', 43785:'any loss of and/or damage to the goods occurring before delivery; 5 at the government’s requestand expense,provide certificates of origin,', 43786:'consular invoices, oranyotherdocuments issued in the country of origin or of shipment, or both, that may be required for importation', 43787:'into the country of destination; and 6 obtain and dispatch to the government an insurance policy or certificate providing the', 43788:'amount and extent of marine insurance coverage specified in thecontract oragreed upon by the governmentcontracting officer. end of clause 52.24743', 43789:'f.o.b. designated air carrier’s terminal, point ofexportation. as prescribed in 47.30315c, insert the following clause in solicitations and contracts when', 43790:'the delivery term is f.o.b. designated aircarrier’s terminal, point of exportation: f.o.b. designated air carrier’s terminal, point of exportation feb', 43791:'2006 a theterm f.o.b. designated air carrier’s terminal, point ofexportation, asused inthis clause, means free of expense to the government', 43792:'loaded aboard the aircraft, or delivered to the custody of the air carrier if only the air carrier performs the', 43793:'loading, at theair carrier’s terminal specified in the contract. b the contractor shall 1 i pack and mark the shipment', 43794:'to comply with contract specifications; or ii in the absence of specifications, prepare the shipment for air transportation in conformance', 43795:'with carrier requirementsto protect thegoods andto ensure assessment of the lowest applicable transportation charge; 2 idelivertheshipmentingoodorderandconditionintotheconveyanceofthecarrier,ortothecustodyofthe carrier if only the', 43796:'carrier performs the loading, at the point of delivery and on the date or within the period specified in the', 43797:'contract; and iipay and bearall applicable charges up tothispoint; 52.2512 subpart 52.2 text of provisions and clauses 52.24746 3 provide', 43798:'a clean bill of lading and/or air waybill; 4 be responsible for any loss of and/or damage to the goods', 43799:'occurring before delivery of the goods to the point specified in the contract; and 5 at the government’s requestand expense,assist', 43800:'in obtainingthe documents required for the purpose of exportation. end of clause 52.24744 f.o.b. designated air carrier’s terminal, point ofimportation.', 43801:'as prescribed in 47.30316c, insert the following clause in solicitations and contracts when the delivery term is f.o.b. designated aircarrier’s', 43802:'terminal, point of importation: f.o.b. designated air carrier’s terminal, point of importation apr 1984 a theterm f.o.b. designated air carrier’s', 43803:'terminal, point ofimportation, as used in this clause,means free of expense to thegovernment delivered to the air carrier’s terminalat the', 43804:'point of importation specifiedin the contract. b the contractor shall 1 i pack and mark the shipment to comply with', 43805:'contract specifications; or ii in the absence of specifications, prepare the shipment for air transportation in conformance with carrier requirements', 43806:'to protect the goods; 2 prepare and distribute bills of lading or air waybills; 3 i deliver the shipment in', 43807:'good order and condition to the point of delivery specified in the contract; and iipay and bearall charges incurred up', 43808:'to thepointof delivery specifiedin the contract, including transportation costs; export, import, or other fees or taxes; cost of landing, if', 43809:'any; customs duties; and costs of certificates of origin, consular invoices, or other documents that may be required for exportation', 43810:'or importation; and 4 be responsible for any loss of and/or damage to the goods until delivery of the goods', 43811:'to the government at the designated aircarrier’s terminal. end of clause 52.24745 f.o.b. origin and/or f.o.b. destination evaluation. as prescribed', 43812:'in 47.3052b,insertthefollowingprovisioninsolicitationswhenoffersaresolicitedonthebasisofboth f.o.b. origin and f.o.b. destination: f.o.b. origin and/or f.o.b. destination evaluation apr 1984 offers areinvitedon the basisof both', 43813:'f.o.b. origin and f.o.b. destination, and the government will awardon the basisthe contracting officerdeterminesto bemost advantageous to the government. an', 43814:'offer on the basis of f.o.b. originonlyor f.o.b. destination only is acceptable, but will be evaluated only on the basis', 43815:'submitted. end of clause 52.24746 shippingpoints usedin evaluation of f.o.b. origin offers. as prescribed in 47.3053b4ii, insert the following provision', 43816:'in f.o.b. origin solicitations when price evaluation for shipments from various shipping points is contemplated: shipping points used in evaluation', 43817:'of f.o.b. origin offers apr 1984 a if morethan one shippingpointor plant is designated by the offerorandthe offeror fails to', 43818:'indicatethe quantity per shipping point or plant before bid opening, thegovernment will evaluate the offeron the basisof delivery of the', 43819:'entire quantity from the point or plant where cost of transportation is most favorable to the government. b if the', 43820:'offeror, beforebid opening or the closing date specified for receiptof offers fails to indicate any shipping point or plant, the', 43821:'government will evaluate the offer on thebasis of delivery fromthe plant at which the contract will be 52.2513 52.24747 federal', 43822:'acquisition regulation performed,as indicatedin the offer. if noplant is indicated inthe offer, the offer will be evaluated on the basis', 43823:'of delivery from the contractor’s business addressindicated in the offer. c if the offeror uses a shippingpointother thanthat whichhas been', 43824:'used by thegovernmentas abasis for the evaluationof offers, any increase of transportation costsshallbe borneby the contractor and any savings shall', 43825:'revert to the government. end of clause 52.24747 evaluationf.o.b. origin. as prescribed in 47.3053f2, insert the following provision. when it', 43826:'is appropriate to use methods other than land transportation in evaluating offers; e.g.,air, pipeline, barge, or ocean tanker,modify theprovision accordingly.', 43827:'evaluationf.o.b. origin june 2003 a the government normally uses land methods of transportation by regulated common carrier for shipment within', 43828:'the contiguous united states. b to evaluate offers, thegovernment will consider only thesemethodsto establish the cost of transportation between offeror’s', 43829:'shipping point and destination tentative orfirm,whichever is applicable inthe contiguous united states. c this transportation cost willbe added to the', 43830:'offer price to determine the government’s overall cost. d when tentative destinations are indicated, the government will use them only', 43831:'for evaluation purposes. the government has the right to use any other means of transportation or any other destination at', 43832:'the time of shipment. end of clause 52.24748 f.o.b. destinationevidence of shipment. as prescribed in 47.3054c, insert the following clause:', 43833:'f.o.b. destinationevidence of shipment feb 1999 a if this contract is awarded on a free on board f.o.b. destination basis,', 43834:'the contractor 1 shall not submit an invoice for payment until the supplies covered by the invoice have been shipped', 43835:'to the destination; and 2 shall retain, and make available to the governmentforreview as necessary, the following evidence of shipment', 43836:'documentation for a period of 3 years after final payment under the contract: iif transportation is accomplished by common carrier,', 43837:'asigned copyof the commercial billof lading for the supplies covered by the contractor’s invoice, indicating the carrier’s intent to ship', 43838:'the suppliesto the destination specified in the contract. ii if transportation is accomplished by parcel post, a copy of the', 43839:'certificate of mailing. iii if transportation is accomplished by other than common carrier or parcel post, a copy of the', 43840:'delivery document showing receipt at the destination specified in the contract. b the contractor is not required to submit evidence', 43841:'of shipment documentation with its invoice. end of clause 52.24749 destination unknown. as prescribed in 47.3055b2, insert the following provision', 43842:'in solicitations when destinations are tentative and only for thepurpose of evaluating offers: destination unknown apr 1984 52.2514 subpart 52.2', 43843:'text of provisions and clauses 52.24751 for the purpose of evaluatingoffers and for no other purpose, the finaldestinationsforthe supplies will', 43844:'be considered to be as follows: end of clause 52.24750 no evaluation of transportation costs. as prescribed in 47.3055c1, insert', 43845:'the following provision in solicitations when exact destinations are not known and it is impractical to establish tentative or general', 43846:'delivery places for the purpose of evaluating transportation costs: no evaluation of transportation costs apr 1984 costs of transporting supplies', 43847:'to be delivered under this contract will not be an evaluation factor for award. end of clause 52.24751 evaluation of', 43848:'export offers. as prescribed in 47.3056e, insert the following provision: evaluation of export offers jan 2001 a port handling and', 43849:'ocean chargesother than dod water terminals. porthandling and ocean charges in tariffs on file with the bureau of domestic regulation,', 43850:'federal maritime commission, or other appropriate regulatory authorities as of the dateof bid opening or the closing date specified for', 43851:'receipt of offers andwhich will beeffective for the date of theexpected initial shipment will be used in the evaluation of', 43852:'offers. bf.o.b. origin,transportationundergovernmentbilloflading. 1offersshallbeevaluatedandawardsmadeonthe basis of the lowest laid down cost to the government at the overseas port of discharge,', 43853:'via methods and ports compatible with required delivery dates and conditionsaffecting transportation knownat the timeof evaluation. included in this evaluation,', 43854:'in addition to the f.o.b. origin price of the item, shall be the inland transportation costs from the point of', 43855:'origin in the united states to the port of loading, port handling charges at theportof loading, and ocean shipping costs', 43856:'from theunited states port of loading see paragraphdof this clause to the overseas port of discharge. thegovernment may designate themode', 43857:'of routing of shipment and may load from other than those ports specified for evaluation purposes. 2 offers shall beevaluated', 43858:'on the basis ofshipmentthroughone of the ports set forth in paragraph d of thisclause to the overseas port of discharge.', 43859:'evaluationshallbe made on the basis of shipment through the port that will result in the lowest cost to the government.', 43860:'3 ports of loading shall be considered as destinations within the meaning of the term f.o.b. destination as that term', 43861:'is used inthe f.o.b. originclause ofthis contract. cf.o.b. portofloadingwithinspectionandacceptanceatorigin. 1offersshallbeevaluatedonthebasisofthelowest laid down costto the government atthe overseasportof discharge via methods', 43862:'compatible with required delivery dates and conditions affecting transportation known at the time of evaluation. includedin this evaluation,in addition to', 43863:'the price to the unitedstates port of loading see paragraphc2 of this clause,shallbe theporthandling charges at the port of loadingand', 43864:'theoceanshipping cost from the port of loading see paragraph d of this clause to the overseas port ofdischarge. 2 unlessoffers', 43865:'areapplicable only to f.o.b. origin deliveryunder government bills ofladingsee paragraph b of this provision, offerors shall designate below atleast one', 43866:'of the ports of loading listed inparagraph d ofthis clause astheir place of delivery. failure to designate at least one', 43867:'ofthe ports asthe point to which deliverywill be made bythe contractor may render the offer nonresponsive. place of delivery: [offerors', 43868:'insert at least one of the ports listed in paragraph d of this clause.] d ports of loading for evaluation', 43869:'of offers. terminals to be used bythe government in evaluating offers are as follows: for the information of the offerors,', 43870:'ocean and port handling charges are set forth if the terminal named is a dod water terminal. ports/terminals of loading', 43871:'combined ocean and port handing unit of measure: i.e.,metric ton, chargestoindicate country measurement ton, cubic foot, etc. 52.2515 52.24751 federal', 43872:'acquisition regulation e ports of loading nominated by offeror. the ports of loading named in paragraph d of this clause', 43873:'are considered by the government to be appropriate for this solicitation due to their compatibility with methods and facilities required', 43874:'to handle thecargo and typesof vessels andto meetthe required overseas delivery dates. notwithstanding theforegoing, offerors may nominate additional ports of', 43875:'loadingthat the offeror considersto bemorefavorable to the government. the government may disregard such nominated ports if,after considering the quantity and', 43876:'nature ofthe supplies concerned,the requisite cargo handling capability, the available sailingson u.s.flag vessels, and other pertinent transportation factors, it determines', 43877:'that use of the nominated ports is not compatible with the required overseas delivery date. united states great lakes ports', 43878:'of loading may be considered in the evaluation ofoffers only for those items scheduledin this provision for delivery duringthe icefree', 43879:'or navigable period as proclaimed by the authorities of the st. lawrence seaway normal period is between april 15 and', 43880:'november 30 annually. all portsnamed, including those nominated by offerors anddetermined to be eligible as provided inthis provision, shall be', 43881:'considered inevaluating all offersreceived in order to establish thelowest laid down cost to the government at theoverseas port of discharge.', 43882:'all determinations shall bebased on availability ofocean services by u.s.flag vessels only. additional u.s. ports of loading nominated by offeror,if', 43883:'any: f price basis. offeror shall indicate whether prices are based on□ paragraph b, f.o.b. origin, transportation by gbl to', 43884:'port listed in paragraph d; □ paragraph c, f.o.b. destination i.e.,a port listed in paragraph d; □ paragraph e, f.o.b.', 43885:'origin, transportation by gbl to port nominated in paragraph e; and/or □ paragraph e, f.o.b. destination i.e.,a port nominated in', 43886:'paragraph e. end of provision alternate i feb 2006. when the conus ports of export are dod water terminals, delete', 43887:'paragraph a from the basic provision and substitute for it the following paragraph a: aport handling and ocean chargesdod water', 43888:'terminals. the port handling and ocean charges are set forth in paragraph d of this provision for the information ofofferorsand', 43889:'are current as of thetime ofissuance ofthe solicitation. for evaluationof offers, the government will use the port handling and ocean', 43890:'charges made available bythe directorate of international traffic, military surface deploymentanddistribution commandsddc rateinformationletters, onfile as of the date ofbid opening', 43891:'or the closing date specified for receiptof offers and whichwill be effectiveforthe dateof the expected initial shipment. alternate ii apr', 43892:'1984. when offers are solicitedon an f.o.b. origin only basis, delete paragraphs c and f from the basic provision, but', 43893:'do not redesignate the ensuing paragraphs. add the following basic paragraph g to the provision: g paragraphs c and f', 43894:'have been deleted but ensuing paragraphs have not been redesignated. alternate iii apr 1984. whenoffers aresolicited on an f.o.b. destination', 43895:'only basis, delete paragraphbfrom the basic provision but do not redesignate the ensuing paragraphs. delete paragraph c2 and paragraph f', 43896:'from the provision and substitute thefollowing paragraph c2 and paragraph f. add paragraph g below. c2offerors shall designate belowat leastone', 43897:'of the ports of loading listed in paragraph d below astheir place of delivery. failure to designateat leastone of the', 43898:'ports as thepointto which delivery will be made by the contractor may renderthe offer nonresponsive. place of delivery: [offerors insert', 43899:'at least one of the ports listed in paragraph dbelow.] f price basis. offerorsshallindicate whether prices are based on□ paragraph', 43900:'c, f.o.b. destination i.e.,a port listed in paragraph d; or □ paragraph e, f.o.b. destination i.e.,a port nominated in paragraph', 43901:'e. g paragraph b has been deleted, but ensuing paragraphs have not been redesignated. 52.2516 subpart 52.2 text of provisions', 43902:'and clauses 52.24752 52.24752 clearanceand documentationrequirementsshipments to dod air orwater terminaltransshipment points. as prescribed in 47.3056f2, insert the following clause', 43903:'in solicitations and contracts when shipments will be consigned to dod air or water terminal transshipment points: clearance and documentation', 43904:'requirementsshipments to dod air or water terminal transshipment pointsfeb 2006 all shipments to water or air ports for transshipment to', 43905:'overseas destinations are subject to the following requirements unless clearance and documentation requirements have been expressly delegated to the contractor:', 43906:'a at least 10 days before shippingcargo to a water port, the contractor shall obtain an export release from the', 43907:'government transportation office for 1 each shipment weighing 10,000 pounds or more; and 2 each shipment weighing less than 10,000', 43908:'pounds;if the cargo either i is classified top secret, secret, or confidential; iiwill requireexclusive useof amotor vehicle; iii will occupy', 43909:'full visiblecapacityof arailway car ormotor vehicle; iv is less than a carload or truckload, but will be tendered as a', 43910:'carload or truckload; or v is to be shipped to an ammunition outloading port for water shipment; or 3 each', 43911:'shipment weighing less than 10,000 poundsif the cargo consists of i narcotics; ii perishable biological material; iii vehiclesto beoffered for', 43912:'driveaway service; iv explosives, ammunition, poisons or other dangerous articles classified as class 1, division 1.1, 1.2, 1.3, 1.4; class', 43913:'2, division 2.3; and class 6, division 6.1; or v radioactive material, as defined in 49 cfr 173.403, class 7.', 43914:'b the contractor is cautioned not to order railway cars or motor vehicles for loading until an export release has', 43915:'been received. c if the contracting officer directs delivery withina shorter period than 10 days,the contractor shall advise the transportation', 43916:'office of thedate on which the cargo will be readyforshipment. d at least 5 days before shipping cargo toeither awater', 43917:'port or an airportregardless of the weight, security classification, or thecommoditydescription, the contractor shall providethe government transportation office the information', 43918:'shown in paragraph e of this clause to permit preparation of a transportation control and movement document tcmd. e when', 43919:'applying for the export release in paragraph a of this clause or when providing information for preparation of the tcmd', 43920:'in accordance with paragraph d of this clause, the contractor shall furnish the 1 proposed date or dates of shipment;', 43921:'2 number and type of containers; 3 gross weight and cube of the shipment; 4 number of cars or trucks', 43922:'that will be involved; 5 transportation control numbers tcn as required for marking under milstd129or federal standard 123; and 6', 43923:'proper shipping name as specified in 46 cfr 146.05 for all items classified as dangerous substances as required for marking', 43924:'under milstd129. f all movement documents government or commercial bills of lading or other delivery documents shall be annotated by', 43925:'the contractor with the 1 transportation control number, consignorcode of activity directing the shipment; i.e., cognizant contract administration office, purchasing', 43926:'office when contract administration has been retained, or a contractor specifically delegated transportation responsibilities under dod4500.9r,defense transportation regulation, responsibilities inthe', 43927:'contract, whichever is appropriate, consignee code,andtransportation priority for each shipment unit; 2 export release number and valid shipping period, if', 43928:'stated if expired, the contractor shall request a renewal; and 3 cubic foot measurement of each shipment unit. 52.2517 52.24753', 43929:'federal acquisition regulation g all annotations on the movement documents shall be made in the description of articles space except,', 43930:'on government bills of lading the export release number and shipping period shall be entered in the space entitled route', 43931:'order/release no. h the contractor shall 1 mail a copy of the bill of lading or other movement document to', 43932:'the transshipment point; and 2 give a copy of the bill of lading or other movement document to the carrier', 43933:'for presentation to the transshipment point with delivery of the shipment. end of clause 52.24753 freight classification description. as prescribed', 43934:'in 47.3059b1, insert the following provision in solicitations when the supplies being acquired are new to the supply system, nonstandard,', 43935:'or modifications of previously shipped items, and different freight classifications may apply: freight classification description apr 1984 offerorsare requested to', 43936:'indicatebelow the full uniformfreight classification rail description, or the national motor freightclassification description applicable to thesupplies, thesame asofferor uses for', 43937:'commercial shipment. this description should include the packing of the commodity box, crate, bundle, loose, setup, knocked down, compressed, unwrapped,', 43938:'etc., the container material fiberboard, wooden, etc., unusual shipping dimensions, and other conditions affecting traffic descriptions. the government will use', 43939:'these descriptions as well asotherinformation availableto determine theclassification description most appropriate and advantageous tothe government. offeror understands that shipments on', 43940:'any f.o.b. origin contract awarded, as a result of this solicitation, will be made in conformity with the shipping classification', 43941:'description specified by the government, which may bedifferentfrom the classificationdescription furnished below. for freight classification purposes, offeror describes this commodity', 43942:'as . end of clause 52.24754 [reserved] 52.24755 f.o.b. point for delivery of governmentfurnished property. as prescribed in 47.30512a2, insert', 43943:'the following clause: f.o.b. point for delivery of governmentfurnished property june 2003 a unless otherwise specified in this solicitation, the', 43944:'government will deliver any governmentfurnished property for use within the contiguousunited statesor canada to apointspecified by the contractor in the', 43945:'offer. if thegovernment makes delivery by railroad, the f.o.b. point willbe private siding, contractor’splant. if thecontractor’s plant isnot served by', 43946:'rail, the f.o.b. point will be railroad cars in the same or nearest city having rail service. the government may', 43947:'choose the mode of transportation and the carriers and will bear the cost of all linehaul transportation to the specified', 43948:'destination. b if the destination of the governmentfurnished property isa contractor’s plant located outside the contiguous united states or canada,', 43949:'the f.o.b. point for government delivery of governmentfurnished property will be a contractorspecified location in the contiguous united states. if', 43950:'the contractor fails to name a point, the government will select as the f.o.b. point the port city in the', 43951:'contiguous united states nearest to the governmentfurnished property that has regular commercial water transportation services to the offshore port nearest', 43952:'the contractor’s plant. c unless otherwise directed by the contracting officer orprovidedin thecontract, the contractorshallreturn all governmentfurnishedequipment,supplies, and property, including', 43953:'all property not returnedin theform ofacceptable end items, to the point at which the government property was originally furnished to', 43954:'the contractor under the contract. notwithstanding thefact thatthe government may have furnished the property at thecontractor’s plant, the contracting officer', 43955:'may direct the contractorto deliver thegovernmentpropertybeing returned to, and load, block, and brace it in, railwaycars in the city inwhich', 43956:'the contractor’s plant islocated, or, if the contractor’s city is not served by rail service, 52.2518 subpart 52.2 text of', 43957:'provisions and clauses 52.24758 in the nearest city having rail service. unless otherwise specified in the contract, all property shall', 43958:'be packed in containers conformingwith the rulesof common carrier publishedtariffs soas to be free of penalty chargesby the carrier designated', 43959:'for shipment by the government. end of clause 52.24756 transitarrangements. as prescribed in 47.30513a3ii, insert the following provision in solicitations', 43960:'when benefits may accrue to the government because transit arrangements may apply: transit arrangements apr 1984 the lowestappropriate common carriertransportation', 43961:'costs, including offeror’sthroughtransit rates and charges when applicable, from offeror’s shipping points, via the transitpoint, to the ultimate destination will', 43962:'beused in evaluating offers. transit points destinations end of clause 52.24757 transportation transit privilege credits. as prescribed in 47.30513b4, insert', 43963:'the following clause in solicitations and contracts when supplies are of such a nature, or when it isthe custom of', 43964:'the trade, that offerors may have potential transit credits availableandthe government may reduce transportation costs through the use of transit', 43965:'credits: transportation transit privilege credits apr 1984 a if the offeror hasestablished with regulatedcommon carriers transit privileges that can be', 43966:'applied to the supplies when shipped from theoriginal source, the offeror is invited to propose to use these credits for', 43967:'shippingthe supplies to thedesignated governmentdestinations. the offeror will shipthese supplies under commercial bills of lading, paying all remaining transportation charges', 43968:'connectedwith the shipment, subject to reimbursement by the government in an amount equal to the remainingcharges but not exceeding the', 43969:'amount quotedby the offeror. b afterloading on the carrier’s equipment and acceptance bythe carrier,these shipments under paidcommercial bills of lading', 43970:'willmove for the accountof and at the risk of the government unless, pursuant tothe changes clause, the office administering the', 43971:'contract directs use of government bills of lading. c theamount quoted below by the offeror representsthe transportation costs in cents', 43972:'per 100 pounds freight rate for fullcarload/truckload shipments ofthe supplies fromofferor’s originalsource,via offeror’s transit plant orpoint, to the government destinations', 43973:'includingthe carrier’stransit privilege charge, less the applicable transit credit i.e., the amount rate initially paid to the carrier for shipment', 43974:'from original sourceto offeror’s transit plantor point. d the rate per cwt quoted willbe used bythe government to evaluate the', 43975:'offered f.o.b. origin price unless a lowerrate is applicable on the date ofbid opening or closing date specified for receipt', 43976:'of offers. to have theoffer evaluated onthis basis, the offeror must insert below the remaining transportation charges that the offeroragrees', 43977:'topay, including anytransit charges,subject to reimbursement by thegovernment, asexplained inthis clause, to destinations listed in thescheduleas follows: rate per cwt', 43978:'in cents: to destination: end of clause 52.24758 loading, blocking, andbracing of freightcar shipments. as prescribed in 47.30515a2, insert the', 43979:'following clause in solicitations and contracts when supplies may be shipped in carload lots by rail: 52.2519 52.24759 federal acquisition', 43980:'regulation loading, blocking, and bracing of freight car shipments apr 1984 a upon receipt of shipping instructions, as provided in', 43981:'this contract, the supplies to be included in any carload shipment by rail shall be loaded, blocked, and braced by', 43982:'the contractor in accordance with the standards published by the association of american railroads and effectiveat the timeof shipment. b', 43983:'shipments, for which the association of american railroads has published no such standards, shall be loaded, blocked, and braced in', 43984:'accordance with standards established by the shipper as evidenced by written acceptance of an authorized representative of thecarrier. c the', 43985:'contractor shall be liable for payment of any damage to any supplies caused by the failure to load, block, and', 43986:'brace in accordance with acceptable standards set forth herein. d a copy of the appropriate pamphlet of the association of', 43987:'american railroads may be obtained from that association. end of clause 52.24759 f.o.b. origincarload and truckload shipments. as prescribed in', 43988:'47.30516a, insert the following clause in solicitations and contracts when it is contemplated that they may result in f.o.b. origin', 43989:'contracts with shipments in carloads or truckloads. this will facilitate realistic freight cost evaluations of offers and ensure that contractors', 43990:'produce economical shipments ofagreed size. f.o.b. origincarload and truckload shipments apr 1984 a the contractor agrees that shipment shall be', 43991:'made in carload or truckload lots when the quantity to be delivered to any one destination in any deliveryperiod pursuant', 43992:'to the contract schedule of deliveries is sufficient to constitute a carload or truckload shipment, except as mayotherwise bepermitted ordirected,', 43993:'in writing, by thecontracting officer. b for evaluation purposes, the agreed weight of a carload or truckload shall be the', 43994:'highest applicable minimum weight that will result in the lowest freight rate or per car charge on fileor published in', 43995:'common carrier tariffs ortenders as of the date of bid opening or the closing date specified for receipt of proposals.', 43996:'c for purposes of actualdelivery, the agreed weight ofa carload or truckloadwill be the highest applicable minimum weightthat will result', 43997:'in the lowest possible freight rate or percar charge on file or publishedas of date of shipment. d if the', 43998:'total weight of any scheduled quantity to a destination is less than the highest carload/truckload minimum weight usedforevaluation of offers,', 43999:'the contractor agreesto ship such scheduled quantity in one shipment. e the contractor shall be liable to the government for', 44000:'any increased costs to the government resulting from failure to comply with the above requirements. end of clause 52.24760 guaranteed', 44001:'shipping characteristics. as prescribed in 47.30516b1, insert the following clause: guaranteed shipping characteristics jan 2017 a theofferor isrequested to complete', 44002:'paragrapha1 of this clause, for each part orcomponent which is packed or packaged separately. this information will be used to', 44003:'determine transportation costsforevaluation purposes. if the offeror doesnot furnish sufficient data in paragraph a1of this clause, to permit determination by', 44004:'the government of the item shipping costs, evaluationwill be basedon the shipping characteristics submitted by theofferor whose offer produces the', 44005:'highest transportation costs or in the absencethereof, by the contractingofficer’s best estimate of theactual transportation costs. if the item shipping', 44006:'costs, based on the actual shipping characteristics, exceed the item shipping costs used for evaluationpurposes, the contractor agrees that the', 44007:'contract price shall be reduced by anamount equal to the difference between the transportation costs actually incurred, and the costs', 44008:'which would have been incurred if the evaluated shipping characteristics had been accurate. 1 to be completedby the offeror: i', 44009:'type of container: wood box □, fiber box □, barrel □, reel □, drum □, other specify ; ii shipping', 44010:'configuration: knockeddown □, setup □, nested □, other specify ; 52.2520 subpart 52.2 text of provisions and clauses 52.24762 iii', 44011:'size of container: length, x width, x height = cubic ft; iv number of items per container each; v gross', 44012:'weight of container and contents lbs; vi palletized/skidded □ yes, □ no; vii number of containers per pallet/skid ; viii', 44013:'weightof empty pallet bottom/skid and sides lbs; ix size of pallet/skid and contents lbs cube ; x number of containers', 44014:'or pallets/skids per railcar a size of railcar b type of railcar xi number of containers or pallets/skids per trailer', 44015:'a size of trailer ft b type of trailer number ofcomplete units lineitem tobe shipped in carrier’s equipment. 2 to', 44016:'be completedby the government afterevaluation but before contract award: i rate used in evaluation ; iitender/tariff ; iii item .', 44017:'b the guaranteed shipping characteristics requested in paragraph a1 of this clause do not establish actual transportation requirements, which are', 44018:'specified elsewhere in this solicitation. the guaranteed shipping characteristics will be used only for the purpose ofevaluating offersand establishing any', 44019:'liability of thesuccessfulofferor for increased transportation costs resulting fromactual shipping characteristics which differ from those used for evaluation in accordance', 44020:'with paragraph a of this clause. end of clause 52.24761 f.o.b. originminimum sizeof shipments. as prescribed in 47.30516c, insert the', 44021:'following clause in solicitations and contracts when volume rates may apply: f.o.b. originminimum size of shipments apr 1984 the contractor', 44022:'agrees that shipment will be made in carload and truckload lots when the quantity to be delivered to any one', 44023:'destination in any deliveryperiod pursuant to the contract schedule of deliveries is sufficient to constitute a carload or truckloadshipment,exceptas may', 44024:'otherwise be permittedor directedin writingby the contracting officer. the agreed weight of a carload or truckload will be the highest', 44025:'applicable minimum weight which will result in the lowest freight rate or per car chargeon file or published in common', 44026:'carrier tariffs or tenders as of dateof shipment. in the eventthe total weight of any scheduled quantity to a destination', 44027:'is less than the highest carload/truckload minimum weight, the contractor agrees to ship such scheduled quantity in one shipment. the', 44028:'contractor shall be liable to the government for any increased costs to the government resulting from failure to comply with', 44029:'the above requirements. this liability shall not attach if supplies are outsized or of such nature that they cannot be', 44030:'loaded at the highest minimum weight bracket. end of clause 52.24762 specific quantities unknown. as prescribed in 47.30516d2, insert the', 44031:'following clause in solicitations and contracts when total requirements and destinations to which shipments will be made are known, but', 44032:'the specific quantity to be shipped to each destination cannot be predetermined. this clause protects the interests of both the', 44033:'government and the contractor during the course of the performance of the contract., insert the following clause in solicitations and', 44034:'contracts when total requirements and destinations to which shipments will be made are known, but the specific quantity to be', 44035:'shipped to each destination cannot be predetermined. this clause protects the interests of both the government and the contractor during', 44036:'the course of the performance of the contract. specific quantities unknown apr 1984 52.2521 52.24763 federal acquisition regulation a for', 44037:'the purpose of evaluating f.o.b. destination offers, the government estimates that the quantity specified will be shipped to the destinations', 44038:'indicated: estimated quantity destinations b if the quantity shipped to each destination varies from the quantity estimated, and if the', 44039:'variation results in a change in the transportation costs, appropriate adjustment shall be made. end of clause 52.24763 preference foru.s.flagaircarriers.', 44040:'as prescribed in 47.405, insert the following clause: preference for u.s.flag air carriers june 2003 a definitions. as used in', 44041:'this clause international air transportation means transportation by air between a place in the united states and a place outside', 44042:'the united states or between two places both of which are outside the united states. united states means the 50', 44043:'states, the district of columbia, and outlying areas. u.s.flag air carrier means an air carrier holdinga certificateunder 49 u.s.c.chapter411. b', 44044:'section5 of the international air transportation fair competitive practices act of1974 49 u.s.c. 40118 fly america act requires that all', 44045:'federal agencies and government contractors and subcontractors use u.s.flag air carriers for u.s. governmentfinancedinternational airtransportation of personneland their personal effectsor', 44046:'property, to the extent that service by those carriers is available. it requires the comptroller general of the united states,', 44047:'in the absence of satisfactory proof of the necessity for foreignflag air transportation, to disallow expenditures from funds, appropriated or', 44048:'otherwise established for the account of the united states, for international air transportation secured aboard a foreignflag air carrier if', 44049:'a u.s.flag air carrier is available to provide such services. c if available,the contractor, in performingworkunder this contract, shall use', 44050:'u.s.flag carriers for internationalair transportation ofpersonnel and their personal effects or property. d in the event that the contractor selects', 44051:'a carrier other than a u.s.flag air carrier for international air transportation, the contractor shall include a statement on vouchers', 44052:'involving such transportation essentially as follows: statement of unavailability of u.s.flag air carriers international air transportation of personsand their personal', 44053:'effectsor property by u.s.flag air carrierwas not available or it was necessary to use foreignflag air carrier service for the', 44054:'following reasons see section 47.403 of the federal acquisition regulation: [state reasons]: end of statement e the contractor shall include', 44055:'the substance of this clause, including this paragraph e, in each subcontract or purchase under this contract that may involve', 44056:'international air transportation. end of clause 52.24764 preference forprivately owned u.s.flag commercial vessels. as prescribed in 47.507a, insert the following', 44057:'clause: preference for privately owned u.s.flag commercial vessels nov 2021 a except as provided in paragraph e of this clause,', 44058:'the cargo preference act of1954 46 u.s.c.app.1241b requires that federal departments and agencies shall transport in privately owned u.s.flag commercial', 44059:'vessels at least 50 percent of the gross tonnage of equipment, materials, or commodities that may be transported in ocean', 44060:'vessels computed separately for 52.2522 subpart 52.2 text of provisions and clauses 52.24764 dry bulk carriers, dry cargo liners, and', 44061:'tankers. such transportation shall be accomplished whenany equipment, materials, or commodities, located within or outside the united states, that may', 44062:'be transported by ocean vessel are 1 acquired for a u.s. government agency account; 2 furnished to, or for the', 44063:'account of, any foreign nation without provision for reimbursement; 3 furnished for the account of a foreign nation in connection', 44064:'with which the united states advances funds or credits, or guarantees the convertibility of foreign currencies; or 4 acquired with', 44065:'advance of funds, loans, or guaranties made by or on behalf of the united states. b the contractor shall use', 44066:'privately owned u.s.flag commercial vessels to ship at least 50 percent of the gross tonnage involved under this contract computed', 44067:'separately for dry bulk carriers, dry cargo liners,and tankers whenever shipping any equipment, materials, or commodities under the conditions set', 44068:'forth in paragraph a of this clause, to the extent that such vessels are available at rates that are fair', 44069:'and reasonable for privately owned u.s.flag commercial vessels. c 1 the contractor shall submit one legible copy of a rated', 44070:'onboard ocean bill of lading for each shipment to both ithe contractingofficer, and ii the: office of cargo preference maritime', 44071:'administration mar590 400 seventh street, sw washington dc20590. subcontractor bills of lading shall be submitted through the prime contractor. 2', 44072:'the contractor shall furnish these bill of lading copies i within 20 working days of the date of loading for', 44073:'shipments originating in the united states, or ii within 30 working days for shipments originating outside the united states. each', 44074:'bill of lading copy shall contain the following information: asponsoring u.s. government agency. b name of vessel. c vesselflag of', 44075:'registry. d date of loading. e port of loading. f port of final discharge. gdescription of commodity. h gross weight', 44076:'in pounds and cubic feet if available. i total ocean freightrevenue in u.s. dollars. d the contractor shall insert the', 44077:'substance of this clause, including this paragraph d, in all subcontracts or purchase orders under this contract, except those described', 44078:'in paragraph e4. e the requirement in paragraph a does not apply to 1 cargoes carried in vessels asrequired or', 44079:'authorized by law ortreaty; 2 ocean transportation between foreign countries of supplies purchased with foreign currencies made available, or derived', 44080:'from funds that are made available, under the foreign assistance act of1961 22 u.s.c. 2353; 3 shipments of classified supplies', 44081:'when the classification prohibits the use of nongovernment vessels; and 4 subcontracts or purchase orders for the acquisition of commercial', 44082:'products or commercial services unless i this contract is a a contract or agreement for ocean transportation services; or b', 44083:'a construction contract; or ii the supplies being transported are aitems the contractor is reselling or distributing to thegovernmentwithout adding', 44084:'value. generally,the contractor does not add value to the items when it subcontracts items for f.o.b. destination shipment; or b', 44085:'shipped in direct support of u.s. military 1 contingency operations; 2 exercises; or 3 forces deployed inconnection withunited nations or', 44086:'north atlantic treaty organization humanitarian or peacekeeping operations. f guidance regarding fair and reasonable rates for privately owned u.s.flag commercial', 44087:'vessels may be obtained from the: office of costs and rates maritime administration 400 seventh street, sw washington dc 20590', 44088:'phone: 202 3664610. end of clause 52.2523 52.24765 federal acquisition regulation alternate i apr 2003. as prescribed in 47.507a2, substitute', 44089:'the following paragraphs a and b for paragraphs a and b of the basic clause: a except as provided in', 44090:'paragraphs b and e of this clause, the contractor shall use privately owned u.s.flag commercial vessels, and no others, in', 44091:'the ocean transportation of any supplies to be furnished under this contract. b if such vessels are not available for', 44092:'timely shipment at rates that are fair and reasonable for privately owned u.s.flag commercial vessels, the contractorshallnotify the contractingofficer and', 44093:'request1authorizationto ship in foreignflag vessels or 2 designation of available u.s.flag vessels. if thecontractor is authorized in writing by the', 44094:'contracting officer to ship the suppliesin foreignflag vessels, the contractprice shall be equitably adjusted toreflect the difference incosts of shipping', 44095:'the supplies in privately owned u.s.flag commercial vessels and in foreignflag vessels. alternate ii nov 2021 . as prescribed in', 44096:'47.507a3, substitute the following paragraph e for paragraph e of the basic clause: e the requirement in paragraph a does', 44097:'not apply to 1 cargoes carried in vessels asrequired or authorized by law ortreaty; 2 ocean transportation between foreign countries', 44098:'of supplies purchased with foreign currencies made available, or derived from funds that are made available, under the foreign assistance', 44099:'act of1961 22 u.s.c. 2353; and 3 shipments of classified supplies when the classification prohibits the use of nongovernment vessels.', 44100:'4 subcontracts or purchase orders under this contract for the acquisition of commercial products or commercial services unless the supplies', 44101:'being transported are iitems the contractoris reselling ordistributing to the governmentwithout adding value. generally, the contractor does not add value', 44102:'to the items when it subcontracts items for f.o.b. destination shipment; or ii shipments in direct support of u.s. military', 44103:'a contingency operations; b exercises; or c forces deployed in connectionwith united nationsor north atlantic treaty organization humanitarian or peacekeeping', 44104:'operations. note: this contract requires shipment of commercial products in direct support of u.s. military contingency operations,exercises, orforces deployed in', 44105:'connectionwith united nationsor north atlantic treaty organization humanitarian or peacekeeping operations. 52.24765 f.o.b. origin, prepaid freightsmall package shipments. as prescribed', 44106:'in 47.30317f, insert the following clause: f.o.b. origin, prepaid freightsmall package shipments jan 1991 a when authorized by the contracting', 44107:'officer, f.o.b. origin freight shipments whichdo not have a security classification shall move on prepaid commercial bills of lading or', 44108:'other shipping documents to domestic destinations, including air and water terminals. weight ofindividual shipments shall be governedby carrier restrictions butshallnot', 44109:'exceed 150pounds by any form of commercial air or 1,000 pounds by other commercial carriers. the government will reimburse the', 44110:'contractor for reasonable freightcharges. b the contractor shall annotate the commercial bill of lading as required by the clause of', 44111:'this contract entitled commercial bill of lading notations. c the contractor shall consolidate prepaid shipments in accordance with procedures established', 44112:'by the cognizant transportation office. the contractor is authorized to combine government prepaid shipments with the contractor’s commercial shipments for', 44113:'delivery to one or more consignees and the government will reimburse its pro rata share of the total freight costs.', 44114:'the contractor shall provide a copy of the commercial bill of lading promptly to each consignee. quantities shall not be', 44115:'divided into mailable lots for the purpose of avoiding movement by other modes of transportation. d transportation charges will be', 44116:'billed as a separate item on the invoice for eachshipmentmade. acopy ofthe pertinent bill of lading, shipment receipt, or freight', 44117:'bill shall accompany the invoice unless otherwise specified in the contract. e loss and damage claims will be processed by', 44118:'the government. end of clause 52.24766 returnable cylinders. as prescribed in 47.30517, insert the following clause: 52.2524 subpart 52.2 text', 44119:'of provisions and clauses 52.24768 returnable cylinders may 1994 a cylinder, referred to in thisclause, is a pressurevessel designedforpressures higher', 44120:'than 40 psia and having acircular cross section excluding aportable tank, multitank car tank, cargo tankor tank car. b returnable', 44121:'cylinders shall remain thecontractor’s property but shall be loaned without charge to the government for a period of days [contracting', 44122:'officer shall insert number of days] hereafter referred to as loan period following the day of delivery to the f.o.b.', 44123:'point specified in the contract. any cylinder not returned within the loan period shall be charged a daily rental beginning', 44124:'with the firstdayafter the loanperiod expires, to and including the day the cylinders are delivered to the contractor if the', 44125:'original delivery was f.o.b. origin or are delivered or made available for delivery to the contractor’sdesignated carrier if the original', 44126:'deliverywas f.o.b. destination. the government shall pay the contractor a rental of $ [contracting officer shall insert dollar amount for', 44127:'rental, after evaluation of offers] per cylinder, perday, computed separately for cylinders bytype,size,andcapacityand for each point of delivery namedin thecontract.', 44128:'no rental shall accrue to the contractor in excess of replacement value per cylinder specified in paragraph c of this', 44129:'clause. c for each cylinder lost or damaged beyondrepair while in the government’s possession, the governmentshallpayto the contractor the replacement', 44130:'value, less the allocable rental paid for that cylinder as follows: [contracting officer shall insert the cylinder types, sizes, capacities,', 44131:'and associated replacement values.] these cylinders shall become government property. d if any lost cylinder is located within [contracting officer', 44132:'shall insert number of days] calendar days after payment by the government, it may be returned to the contractor by', 44133:'the government, and the contractor shall pay to the government an amount equal to the replacement value, less rental computed', 44134:'in accordance with paragraph b of this clause, beginning at the expiration of the loan period specified in paragraph b', 44135:'of this clause, and continuing to the date on which the cylinderwas delivered to the contractor. end of clause 52.24767', 44136:'submission of transportation documents for audit. as prescribed in 47.1032, insert the following clause: submission of transportation documents for audit', 44137:'feb 2006 a thecontractor shall submit tothe addressidentified below, for prepayment audit, transportation documents on which theunited stateswill assume freightcharges', 44138:'that were paid 1 by the contractor under a costreimbursement contract; and 2 by a firsttier subcontractor under acostreimbursementsubcontract thereunder.', 44139:'b costreimbursement contractors shall only submit for auditthose bills ofladingwith freight shipment charges exceeding $100. bills under $100 shall be', 44140:'retained onsite by the contractor and made available for onsite audits. this exception only applies to freight shipment bills and', 44141:'is not intended to apply to bills and invoices for any other transportation services. c contractors shall submit the above', 44142:'referenced transportation documents to[ to be filled in by contracting officer] end of clause 52.24768 report of shipment repship. as', 44143:'prescribed in 47.2082, insert the following clause: report of shipment repship feb 2006 a definition. domestic destination, as used in', 44144:'this clause, means52.2 525 52.24768 federal acquisition regulation 1 a destination within the contiguous united states; or 2 if shipmentoriginatesin', 44145:'alaska or hawaii, a destination in alaska or hawaii, respectively. b unlessotherwise directed by thecontracting officer,the contractor shall 1 senda', 44146:'prepaid notice of shipment to the consignee transportation officer i for all shipments of a classified material, protected sensitive, and', 44147:'protected controlled material; b explosives and poisons, class 1, division 1.1, 1.2 and 1.3; class 2, division 2.3 and class', 44148:'6, division 6.1; c radioactive materials requiring the use of a iii bar label; or ii when a truckload/carload shipment', 44149:'of supplies weighing 20,000 pounds or more, or a shipment of less weight that occupies the full visible capacity of', 44150:'a railway car or motor vehicle, is given to any carrier common, contract, or private for transportation to a domestic', 44151:'destination other than a port for export; 2 transmits the noticeby rapid means to be received by theconsignee transportationofficer atleast', 44152:'24 hours before the arrival of the shipment; and 3 send, to the receiving transportation officer, the bill of lading', 44153:'orletter or other documentcontaining the following information and prominently identified as a report of shipmentor repship fort.o. repship for t.o.', 44154:'81jun 01 transportation officer defense depot, memphis,tn. shipped your depot 1981 jun 1 540 ctns mens cotton trousers, 30,240 lb,', 44155:'1782 cube,viaxxyy in car no. xx 123456blc98000031 contractdlaetajune 5 jones &co., jersey city, n.j. name ofrail carrier, trucker, or other', 44156:'carrier. vehicle identification. bill of lading. if not shipped by bl, identify lading document and statewhetherpaid by contractor. estimated time', 44157:'of arrival. end of clause 52.2526 subpart 52.2 text of provisions and clauses 52.2481 52.248[reserved] 52.2481value engineering. as prescribed in', 44158:'48.201, insert the following clause: value engineering jun 2020 a general. the contractor is encouraged to develop, prepare, and submitvalueengineering', 44159:'change proposals vecp’s voluntarily. the contractor shall share in any netacquisitionsavings realized from accepted vecp’s, inaccordance withthe incentive sharing rates', 44160:'in paragraph f of this clause. b definitions. acquisition savings, as used in this clause, means savings resulting from the', 44161:'application of a vecp to contracts awarded by the samecontracting office orits successor for essentially the same unit. acquisition savings', 44162:'include 1 instant contract savings, which are the net cost reductions on this, the instant contract, and which are equal', 44163:'to the instant unit cost reduction multiplied by the number of instant contract units affected by the vecp, less the', 44164:'contractor’s allowable development and implementation costs; 2 concurrent contract savings, which are net reductions in the prices of other contracts', 44165:'that are definitized and ongoing at the time the vecp is accepted; and 3 future contract savings, which are the', 44166:'product of the future unit cost reduction multiplied by the number of future contract units in the sharing base. on', 44167:'an instant contract, future contract savings include savings on increases in quantities after vecp acceptance that are due to contract', 44168:'modifications, exercise of options, additional orders, and funding of subsequent year requirements on a multiyear contract. collateral savings,as used in', 44169:'this clause,means thosemeasurable net reductionsresulting froma vecp inthe agency’s overall projected collateral costs, exclusive of acquisition savings, whether or not', 44170:'the acquisition cost changes. contracting office includes any contractingoffice thatthe acquisition is transferred to, such as another branch of the', 44171:'agency or another agency’soffice thatis performing a jointacquisition action. contractor’s development and implementation costs, as used in this clause, means', 44172:'those costs the contractor incurs on a vecp specifically in developing, testing, preparing, and submitting the vecp,as well as thosecosts', 44173:'the contractor incursto make the contractual changes required bygovernment acceptance ofa vecp. future unit cost reduction, asused inthis clause, means', 44174:'the instant unit cost reductionadjusted as the contracting officer considers necessary for projected learning or changes in quantity during the', 44175:'sharing period. it is calculated at the time the vecp is accepted and applies either 1 throughout the sharing period,', 44176:'unless the contractingofficer decidesthat recalculation is necessary because conditions are significantly different from those previously anticipated; or 2 to the', 44177:'calculation of a lumpsumpayment, which cannot laterbe revised. government costs, as used in this clause, means those agency costs that', 44178:'result directly from developing and implementing thevecp, such asany net increases inthe cost of testing, operations, maintenance,andlogistics support. the term', 44179:'doesnot include the normal administrative costs ofprocessingthe vecp or any increasein this contract’scostor price resulting from negative instant contract savings.', 44180:'instant contract, as used in this clause, means this contract, under which the vecp is submitted. it does not include', 44181:'increases in quantities after acceptance of the vecp that are due to contract modifications, exercise of options, or additional orders.', 44182:'if this is a multiyear contract, the term does not include quantities funded after vecp acceptance. if this contract is', 44183:'a fixedprice contract with prospective price redetermination, the term refers to the period for which firm prices have been established.', 44184:'instant unit cost reduction means the amount of the decrease in unit cost of performance without deducting any contractor’sdevelopment or', 44185:'implementation costs resulting from using the vecp onthis, the instant contract. if this is a service contract, the instant unit', 44186:'cost reduction is normally equal to the number of hours per lineitem task saved by using the vecp on this', 44187:'contract, multiplied by the appropriate contract labor rate. negative instant contract savings means the increase in the cost or price', 44188:'of this contract when the acceptance of a vecp results in an excess ofthe contractor’sallowable development and implementation costs over', 44189:'the product of the instant unit cost reduction multiplied by the number of instant contract units affected. net acquisition savings', 44190:'means total acquisition savings, including instant, concurrent, and future contract savings, less government costs. 52.2527 52.2481 federal acquisition regulation sharing', 44191:'base, as used in this clause, meansthe number ofaffected end items on contracts ofthe contracting office accepting the vecp. sharing', 44192:'period, as used in this clause, means the period beginning with acceptance of the first unit incorporating the vecp and', 44193:'ending at a calendardate or event determinedby the contractingofficer for each vecp. unit, as used in this clause, means the', 44194:'item ortaskto which the contracting officer andthe contractor agree the vecp applies. value engineering change proposal vecp means a proposal', 44195:'that 1 requires a change to this, the instant contract, to implement; and 2 results in reducing the overall projected', 44196:'cost to the agency without impairing essential functions or characteristics;provided, that it does not involve a change i in deliverable', 44197:'end item quantities only; ii in research and development r&d end items or r&d test quantities that is due solely', 44198:'to results of previous testing under this contract; or iii to the contracttype only. c vecp preparation. as a minimum,', 44199:'the contractor shall include in each vecp the information described in paragraphs c1through8of this clause. if the proposedchange is affected', 44200:'by contractually required configuration management or similar procedures, the instructions in those procedures relating to format, identification, and priority assignment', 44201:'shall govern vecp preparation. the vecp shall include the following: 1 a description of thedifference between the existing contract requirement', 44202:'and the proposed requirement, the comparative advantages and disadvantages of each, a justification whenan item’s functionor characteristics are being altered,', 44203:'theeffect ofthe changeon the end item’sperformance, and any pertinent objectivetest data. 2 a list and analysis of the contract requirements', 44204:'that must be changed if the vecp is accepted, including any suggested specification revisions. 3 identification of the unit to', 44205:'which the vecp applies. 4 a separate, detailedcost estimate for i the affectedportions of the existingcontract requirement andii the vecp.', 44206:'the costreduction associated withthe vecp shall take into account thecontractor’s allowable development and implementation costs, including any amount attributable to', 44207:'subcontracts under the subcontracts paragraph of this clause. 5 a description and estimate of coststhe government may incur in implementing', 44208:'the vecp, such as test and evaluation and operating and support costs. 6 a prediction of any effects the proposedchange', 44209:'would have on collateral costs tothe agency. 7 a statement of the time by which a contract modification accepting the', 44210:'vecp must be issued in order to achieve the maximumcost reduction,noting any effect on thecontract completion time or delivery schedule.', 44211:'8 identification ofanyprevious submissions ofthe vecp, including the dates submitted, theagencies and contract numbers involved, and previous government actions, if', 44212:'known. d submission. thecontractor shall submit vecp’s to the contracting officer, unless this contract states otherwise. if thiscontract is administered', 44213:'byotherthan the contracting office, the contractor shall submita copy of the vecp simultaneously tothe contracting officerand to the administrative contracting', 44214:'officer. e government action. 1 the contractingofficer will notify the contractorof the status of the vecp within 45 calendar daysafter', 44215:'the contractingoffice receives it. ifadditional time is required, the contracting officer willnotify the contractor within the 45day period and provide', 44216:'the reason for the delay and the expected date of the decision. the government will process vecp’s expeditiously; however,itwill not', 44217:'be liable for any delay in acting upon a vecp. 2 if the vecpis not accepted, the contracting officer will', 44218:'notify the contractor in writing, explaining the reasons for rejection. the contractor may withdraw anyvecp, in whole or inpart, atanytime', 44219:'before it is accepted by thegovernment. the contracting officer may requirethat the contractorprovide written notification before undertaking significant expenditures for', 44220:'vecp effort. 3 any vecp may be accepted, in whole orin part, by the contracting officer’s award ofa modification to', 44221:'this contract citing this clause and made either before or within a reasonable time after contract performance is completed. until', 44222:'such a contract modification applies a vecp to this contract, the contractor shall perform in accordance with the existing contract.', 44223:'the decision to accept or reject all or part of any vecp is a unilateral decision made solely at the', 44224:'discretion of the contracting officer. f sharing rates. if a vecp is accepted, the contractor shall share in net acquisition', 44225:'savings according to the percentages shownin thetable below. the percentage paidthe contractor depends upon 1 this contract’s typefixedprice, incentive, or', 44226:'costreimbursement; 52.2528 subpart 52.2 text of provisions and clauses 52.2481 2 the sharing arrangement specified in paragraph a of this', 44227:'clause incentive, program requirement, or a combination as delineated in the schedule; and 3 the source of the savings the', 44228:'instant contract, or concurrent and future contracts, as follows: contractor’s shareof net acquisition savings figure inpercent contract type incentive voluntary', 44229:'program requirement mandatory instant contract rate concurrent and future contract rate instant contract rate concurrent and future contract rate fixedprice', 44230:'includes fixedpriceaward fee; excludes other fixedprice incentive contracts incentive fixedprice or cost other than award fee costreimbursement includes costplus awardfee;', 44231:'excludes other costtype incentive contracts 50 25 50 50 25 25 15 25 25 15 the contracting office may increase', 44232:'the contractor’s sharing rate to as high as 75 percent for each vecp. same sharing arrangement as the contract’s profit', 44233:'or fee adjustment formula. the contracting office may increase the contractor’s sharing rateto as high as 50percent foreach vecp. g', 44234:'calculating net acquisition savings. 1 acquisition savings are realized when i the cost or price is reduced on the instant', 44235:'contract, ii reductions are negotiated in concurrent contracts, iii future contracts are awarded, or iv agreement is reached on a', 44236:'lumpsum payment for future contract savings see paragraph i4 of this clause. net acquisition savings are first realized, and the', 44237:'contractor shall be paid a share, when government costs and any negative instant contract savings have been fully offset against', 44238:'acquisition savings. 2 except in incentive contracts, government costs and any price or cost increases resulting from negative instant contract', 44239:'savingsshallbe offset againstacquisitionsavings eachtime such savings are realized until they are fully offset. then, the contractor’s share is calculated by', 44240:'multiplying net acquisition savings bythe appropriate contractor’spercentage sharing rate see paragraph f of this clause. additional contractor shares of net', 44241:'acquisition savings shall be paid to the contractor at the time realized. 3 if thisis an incentive contract, recovery of', 44242:'government costson the instant contract shall be deferred and offset against concurrent and future contract savings. the contractor shall share', 44243:'through the contract incentive structure in savings on the instantcontract items affected. any negativeinstant contract savings shall be added tothe', 44244:'target cost or tothe target price and ceilingprice,and the amount shall be offset against concurrentandfuture contract savings. 4 if the', 44245:'government doesnot receive and accept all items on whichitpaid the contractor’s share, thecontractor shall reimburse the government for the proportionate', 44246:'share of these payments. h contract adjustment. the modification accepting the vecp or a subsequent modification issued as soon as', 44247:'possible after any negotiations are completed shall 1 reduce the contract price or estimated cost by the amount of instant', 44248:'contract savings, unless this is an incentive contract; 2 when the amount of instant contract savings is negative, increase the', 44249:'contract price, target price and ceiling price, target cost,or estimatedcost bythat amount; 3 specify the contractor’s dollar share per unit', 44250:'on future contracts, or provide the lumpsum payment; 4 specify the amount ofany government costs or negative instant contract savings', 44251:'to be offset in determining net acquisition savings realized from concurrent or future contract savings; and 5 provide thecontractor’s shareof', 44252:'any net acquisition savings underthe instant contract in accordance with the following: i fixedprice contractsadd to contract price. 52.2529 52.2481', 44253:'federal acquisition regulation ii costreimbursement contractsadd to contract fee. i concurrent and future contract savings. 1 paymentsof the contractor’s share', 44254:'ofconcurrent andfuture contract savings shall be made by a modification to the instant contract in accordance with paragraph h5 of', 44255:'this clause. for incentive contracts, shares shall be added as a separate firmfixedprice line item on the instant contract. the', 44256:'contractor shall maintain records adequate to identify the first delivered unit for 3 years after final payment under this contract.', 44257:'2 the contracting officer shall calculate the contractor’s share of concurrent contractsavings by i subtracting from the reduction in price', 44258:'negotiated on the concurrent contract any government costs or negative instant contract savings notyet offset; and iimultiplying the resultby the', 44259:'contractor’s sharing rate. 3 the contracting officer shall calculate the contractor’s share of futurecontract savings by i multiplying the future', 44260:'unit cost reduction by the number of future contract units scheduled for delivery during the sharing period; iisubtracting any government', 44261:'costs or negative instantcontract savings not yet offset; and iii multiplying the resultby the contractor’s sharing rate. 4 when the', 44262:'government wishes and the contractor agrees,the contractor’sshare of future contract savings may be paid in a single lump sum rather', 44263:'than in a series of payments over time as future contracts are awarded. under this alternate procedure, the future contract', 44264:'savings may be calculated when the vecp is accepted, on the basis of the contracting officer’s forecast of the number', 44265:'of units that willbe delivered during the sharing period. the contractor’s share shall be included in a modification to this', 44266:'contract see paragraph h3 of this clause and shall not be subject to subsequent adjustment. 5 alternate nocost settlement method.', 44267:'when, in accordance with section 48.1044 of the federal acquisition regulation far, the government and the contractor mutually agree touse', 44268:'the nocost settlementmethod, thefollowing applies: ithe contractorwill keep all the savings on theinstant contract and on its concurrent contracts only.', 44269:'ii the government will keep all the savings resulting from concurrent contracts placed on other sources, savings from all future', 44270:'contracts, and all collateral savings. j collateral savings. if a vecp is accepted, the contracting officer will increase the instant', 44271:'contractamount, as specified in paragraph h5 of this clause, by a rate from 20 to 100percent, as determinedby the contracting', 44272:'officer, of any projected collateral savings determined to be realized in a typical year of use after subtracting any government', 44273:'costs not previouslyoffset. however, the contractor’s share ofcollateral savingswill not exceed the contract’s firmfixedprice, target price, target cost,or estimatedcost, at', 44274:'thetime the vecp is accepted, or $100,000, whichever is greater. the contracting officer will be the sole determiner of the', 44275:'amountof collateral savings. k relationship to other incentives. only those benefits of an accepted vecp not rewardable under performance, design', 44276:'tocost production unit cost, operating and support costs, reliability and maintainability, or similar incentives shall be rewarded under this clause.', 44277:'however, the targets of such incentives affected bythe vecp shall not be adjustedbecause of vecp acceptance. ifthis contractspecifiestargets but providesno', 44278:'incentiveto surpass them, the value engineering sharing shall apply only to the amountof achievement better thantarget. l subcontracts. the contractor', 44279:'shall include an appropriate value engineering clause in any subcontractvalued at or above the simplifiedacquisition threshold, as defined infar 2.101', 44280:'on the date of subcontract award, and may include one in subcontracts of lesser value. in calculating any adjustment in', 44281:'this contract’sprice for instant contract savings or negative instant contract savings, the contractor’s allowable development and implementation costs shall includeanysubcontractor’s', 44282:'allowable development and implementationcosts, and any value engineering incentivepaymentsto a subcontractor, clearly resulting from a vecp accepted by the government', 44283:'under this contract. the contractor may choose any arrangement for subcontractor value engineering incentive payments, provided, that the payments shall', 44284:'not reduce thegovernment’s share of concurrent or future contract savings or collateral savings. m data. the contractormay restrictthe government’s right', 44285:'to use any partof avecp or the supporting databy marking the followinglegend onthe affected parts: these data, furnished under the', 44286:'value engineeringclause ofcontract , shall not be disclosed outside the government or duplicated, used, or disclosed, in whole or in', 44287:'part, for any purpose other than to evaluate a value engineering change proposal submitted under the clause. this restrictiondoes not', 44288:'limit the government’s rightto use information contained in these data if it has been obtained or is otherwise available from', 44289:'the contractor or from another source without limitations. if a vecp is accepted, the contractor hereby grants the government unlimited', 44290:'rights in the vecp and supporting data, except that, with respect to data qualifying and submitted as limited rights technical', 44291:'data, the government shall have the 52.2530 subpart 52.2 text of provisions and clauses 52.2482 rights specified in the contract', 44292:'modification implementing the vecp and shall appropriately mark the data. the terms unlimited rights and limited rights are defined in', 44293:'part 27 of the federal acquisition regulation. end of clause alternate i apr 1984. if the contracting officerselects a mandatory', 44294:'value engineering program requirement,substitute the following paragraph a for paragraph a of the basic clause: a general. the contractor shall', 44295:'1 engage in a value engineering program, and submit value engineering progress reports, as specified in thescheduleand2submit to the contracting', 44296:'officer any resulting value engineering change proposals vecp’s. in addition to being paid as the schedule specifies for this mandatory', 44297:'program, the contractor shall sharein any net acquisition savingsrealizedfrom accepted vecp’s, in accordance with the program requirement sharing rates in', 44298:'paragraph f of this clause. alternate ii jan 2015. ifthe contracting officer selects both a value engineeringincentive andmandatory value engineering', 44299:'program requirement, substitute the following paragraph a for paragraph a of the basic clause: a general. for those line items', 44300:'designated in the schedule as subject to the value engineering program requirement, the contractor shall 1 engage in a value', 44301:'engineering program, and submit value engineering progress reports, as specified in the schedule and 2 submit to the contractingofficer any', 44302:'resultingvecp’s. in additionto being paid as the schedule specifies for this mandatory program, the contractor shall share in any net', 44303:'acquisition savings realized fromvecp’s acceptedunder the program, in accordance with the program requirement sharing rates in paragraph f of this', 44304:'clause. for remaining areas of thecontract, the contractoris encouragedto develop, prepare,and submit vecp’s voluntarily; for vecp’s accepted under these remaining', 44305:'areas, the incentive sharing rates apply. the decision on which rate appliesis aunilateraldecision made solely at the discretion of the', 44306:'government. alternate iii apr 1984. when the head of the contracting activity determines that the cost of calculating and tracking', 44307:'collateral savings will exceed the benefits to be derived in a contract calling for a value engineering incentive, delete paragraph', 44308:'j from thebasic clause and redesignate theremaining paragraphs accordingly. 52.2482value engineeringarchitectengineer. as prescribed in 48.201f, insert the following clause: value', 44309:'engineeringarchitectengineer mar 1990 a general. the contractor shall 1 perform value engineering ve services and submit progress reports as specified', 44310:'in theschedule; and 2 submit to the contracting officer any resulting value engineering proposals vep’s. valueengineering activities shall be performed', 44311:'concurrently with, and without delay to, the schedule set forth in the contract. the services shall include ve evaluation and', 44312:'review and study of design documents immediately following completion of the 35 percent design stateor at such stages asthe contracting', 44313:'officermay direct. each separately priced lineitem for ve services shall define specifically the scope of work to be accomplished and', 44314:'may include ve studies of items other than design documents. the contractor shall bepaid as the contract specifies for this', 44315:'effort, but shall not share in savings which may result from acceptance and use of vep’s by the government. b', 44316:'definitions. life cycle cost, as used in this clause, is the sum of all costs over the useful life of', 44317:'a building, system or product. it includes thecostof design, construction, acquisition, operation, maintenance, and salvage resale value, if any. value', 44318:'engineering, as used inthisclause, means an organized effort toanalyze the functions of systems, equipment, facilities, services, and supplies for the', 44319:'purpose of achieving the essential functions at the lowest life cycle cost consistent with required performance,reliability, quality, and safety. value', 44320:'engineering proposal, as used in this clause, means, in connection with an ae contract, a change proposal developed by employees', 44321:'of the federal government or contractor value engineering personnel under contract to an agency to provide value engineering services for', 44322:'the contract or program. c submissions. after award of an architectengineering contract the contractor shall 1 provide thegovernmentwith a feebreakdownscheduleforthe', 44323:'ve services such as criteriareview, task team review, and bid package review included in the contract schedule; 2 submit, for', 44324:'approvalby the contracting officer, a list of team members and theirrespective resumes representing theengineering disciplines requiredto complete the study effort,', 44325:'and evidenceof the team leader’squalifications and 52.2531 52.2483 federal acquisition regulation engineering discipline. subsequent changes or substitutions to the approved', 44326:'ve team shall be submitted in writing to the contracting officerforapproval; and 3 the team leader shall be responsible for', 44327:'prestudy work assembly and shall edit, reproduce, and sign the final report and each vep. all vep’s, even if submitted', 44328:'earlier as an individual submission,shallbe contained in thefinal report. d vep preparation. as a minimum, the contractor shall include the', 44329:'following information in each vep: 1 a description of thedifference between the existing and proposed design, the comparative advantages and', 44330:'disadvantages of each, a justification whenan item’s functionis being altered, the effect of the change on systemor facility performance, and', 44331:'any pertinent objective test data. 2 a list and analysis of design criteria or specifications that must be changed if', 44332:'the vep is accepted. 3 a separatedetailed estimate of the impact on project cost of each vep, if acceptedandimplemented by', 44333:'the government. 4 a description and estimate of coststhe government may incur in implementing the vep, such as design change', 44334:'cost and test and evaluation cost. 5 a prediction of any effects the proposedchange may have onlife cyclecost. 6 the', 44335:'effect thevep will have on design orconstruction schedules. e vep acceptance. approved vep’s shall be implemented by bilateral modification to', 44336:'thiscontract. end of clause 52.2483value engineeringconstruction. as prescribed in 48.202, insert the following clause: value engineeringconstruction oct 2020 a general.', 44337:'the contractor is encouraged to develop, prepare, and submitvalueengineering change proposals vecp’s voluntarily. the contractor shall share in any instant', 44338:'contractsavings realized from accepted vecp’s, inaccordance with paragraph f of this clause. b definitions. collateral costs, as used in this', 44339:'clause, means agency costs of operation, maintenance, logistic support, or governmentfurnished property. collateral savings,as used in this clause,means thosemeasurable net', 44340:'reductionsresulting froma vecp inthe agency’s overall projected collateral costs, exclusive of acquisition savings, whether or not the acquisition cost changes.', 44341:'contractor’s development and implementation costs, as used in this clause, means those costs the contractor incurs on a vecp specifically', 44342:'in developing, testing, preparing, and submitting the vecp,as well as thosecosts the contractor incursto make the contractual changes required bygovernment', 44343:'acceptance ofa vecp. government costs, as used in this clause, means those agency costs that result directly from developing and', 44344:'implementing thevecp, such asany net increases inthe cost of testing, operations, maintenance,andlogistic support. the termdoes not include the normal administrative', 44345:'costs ofprocessingthe vecp. instant contract savings, as used in this clause, means the estimated reduction in contractor cost of performance', 44346:'resulting from acceptance of the vecp, minus allowablecontractor’s development and implementation costs, including subcontractors’ development and implementation costs see paragraph', 44347:'h of this clause. value engineering change proposal vecp means a proposal that 1 requires a change to this, the', 44348:'instant contract, to implement; and 2 results in reducing the contract price or estimated cost without impairing essential functions or', 44349:'characteristics; provided, that it does not involve a change i in deliverable end item quantities only; or iito the contracttype', 44350:'only. c vecp preparation. as a minimum, the contractor shall include in each vecp the information described in paragraphs c1through7of', 44351:'this clause. if the proposedchange is affected by contractually required configuration management or similar procedures, the instructions in those procedures', 44352:'relating to format, identification, and priority assignment shall govern vecp preparation. the vecp shall include the following: 1 a description', 44353:'of thedifference between the existing contract requirement and that proposed, the comparative advantages and disadvantages of each, a justification when', 44354:'an item’s function orcharacteristics are beingaltered,andthe effect of thechange on the end item’s performance. 52.2532 subpart 52.2 text of provisions', 44355:'and clauses 52.2483 2 a list and analysis of the contract requirements that must be changed if the vecp is', 44356:'accepted, including any suggested specification revisions. 3 a separate, detailedcost estimate for i the affectedportions of the existingcontract requirement andii', 44357:'the vecp. the costreduction associated withthe vecp shall take into account thecontractor’s allowable development and implementation costs, including any amount', 44358:'attributable to subcontracts under paragraph h of this clause. 4 a description and estimate of coststhe government may incur in', 44359:'implementing the vecp, such as test and evaluation and operating and support costs. 5 a prediction of any effects the', 44360:'proposedchange would have on collateral costs tothe agency. 6 a statement of the time by which a contract modification accepting', 44361:'the vecp must be issued in order to achieve the maximumcost reduction,noting any effect on thecontract completion time or delivery', 44362:'schedule. 7 identification ofanyprevious submissions ofthe vecp, including the dates submitted, theagencies and contract numbers involved, and previous government actions,', 44363:'if known. d submission. thecontractor shall submit vecp’s to the resident engineerat the worksite, with a copy to the contracting', 44364:'officer. e government action. 1thecontractingofficerwillnotifythecontractorofthestatusofthevecpwithin45 calendar days afterthe contracting office receives it. if additional timeis required, thecontracting officer will notify', 44365:'the contractor within the 45day period and provide the reason for the delay and the expected date of the decision.', 44366:'the government will process vecp’s expeditiously; however, it will not be liable for any delayin acting upon avecp. 2 if', 44367:'the vecpis not accepted, the contracting officer will notify the contractor in writing, explaining the reasons for rejection. the contractor', 44368:'may withdraw anyvecp, in whole or inpart, atanytime before it is accepted by thegovernment. the contracting officer may requirethat the', 44369:'contractorprovide written notification before undertaking significant expenditures for vecp effort. 3 any vecp may be accepted, in whole orin part,', 44370:'by the contracting officer’s award ofa modification to this contract citing this clause. the contracting officer may accept thevecp, even', 44371:'though anagreement on price reduction has not been reached, by issuing the contractor a notice to proceed with the change.', 44372:'until a notice to proceed is issued or a contract modification applies a vecp to this contract, the contractor shall', 44373:'perform in accordance with the existing contract. the decision to accept or reject all or part of any vecp is', 44374:'a unilateral decision made solely at the discretion of the contracting officer. f sharing 1 rates. the government’s share of', 44375:'savings is determined bysubtracting government costs from instant contract savings and multiplying the result by i 45 percent for fixedprice', 44376:'contracts; or ii 75 percent for costreimbursement contracts. 2 payment. payment of any share due the contractor for use of', 44377:'a vecp on this contract shall be authorized by a modification to this contract to i accept the vecp; ii', 44378:'reduce the contract price or estimated cost by the amount of instant contract savings; and iii providethe contractor’sshare of savings', 44379:'by adding the amount calculated to the contract price or fee. g collateral savings.if a vecp is accepted, the contracting', 44380:'officer willincrease theinstant contract amount by 20 percent of any projected collateral savings determined to be realized in a typical', 44381:'year of use after subtracting any government costs not previously offset. however, the contractor’s share of collateral savings will notexceed', 44382:'the contract’s firmfixedprice orestimated cost, at the time the vecp is accepted, or $100,000,whichever is greater. the contractingofficer isthe sole', 44383:'determiner of the amount of collateral savings. h subcontracts. the contractor shall include an appropriate value engineering clause in any', 44384:'subcontract of $75,000 or more and mayinclude one in subcontracts of lesservalue. in computing any adjustment inthiscontract’s price underparagraph f', 44385:'of this clause, the contractor’s allowable developmentandimplementation costs shall include any subcontractor’s allowable development and implementation costsclearly resulting froma vecp', 44386:'accepted by thegovernment underthis contract, butshallexclude any value engineering incentive payments toa subcontractor. the contractor may choose any arrangement for', 44387:'subcontractor value engineering incentive payments; provided, that these payments shall not reduce the government’s share of the savings resulting from', 44388:'the vecp. i data. the contractor may restrict the government’s right to useanypart of a vecpor the supporting data by', 44389:'marking thefollowing legend on the affected parts: these data, furnished under the value engineeringconstruction clause of contract , shall not', 44390:'be disclosed outside the government or duplicated, used, or disclosed, in whole or in part, for any purpose other than', 44391:'to evaluate a value 52.2533 52.2483 federal acquisition regulation engineering changeproposal submitted under the clause. this restriction doesnot limit the', 44392:'government’s right touse information contained in these data if it has been obtained or is otherwise available from the contractor', 44393:'or from another source without limitations. if a vecp is accepted, the contractor hereby grants the government unlimited rights in', 44394:'the vecp and supporting data, except that, with respect to data qualifying and submitted as limited rights technical data, the', 44395:'government shall have the rights specified in the contract modification implementing the vecp and shall appropriately mark the data. the', 44396:'terms unlimited rights and limited rights are defined in part 27 of the federal acquisition regulation. end of clause alternate', 44397:'i apr 1984. when the head of the contracting activity determines that the cost of calculating and tracking collateral savings', 44398:'will exceed the benefits to be derived in a construction contract, delete paragraph g from the basic clause and redesignate', 44399:'theremaining paragraphs accordingly. 52.2534 subpart 52.2 text of provisions and clauses 52.2492 52.249[reserved] 52.2491termination forconvenience of the government fixedprice short', 44400:'form. as prescribed in 49.502a1, insert the following clause: termination for convenience of the government fixedprice short form apr 1984', 44401:'the contracting officer, bywritten notice, may terminate this contract, inwhole or in part, when it is in thegovernment’s interest. if', 44402:'this contract is terminated, the rights, duties, and obligations of the parties, including compensation to the contractor,shallbeinaccordancewith part 49ofthefederalacquisitionregulationineffectonthedateofthiscontract. end', 44403:'of clause alternate i apr 1984. if the contract is for dismantling, demolition, or removal of improvements, designate the basic', 44404:'clause as paragraph a and add the following paragraph b: b upon receipt of the termination notice, if title to', 44405:'property is vested in the contractor under this contract, it shall revest in the government regardless of any other clause', 44406:'of the contract, except for property that the contractor a disposed of by bona fide sale or b removed from', 44407:'the site. 52.2492termination forconvenience of the government fixedprice. as prescribed in 49.502b1i, insert the following clause: termination for convenience of', 44408:'the government fixedprice apr 2012 a thegovernment may terminate performance ofwork under this contract in whole or, fromtime to time,', 44409:'in part if the contracting officerdeterminesthat a termination is in the government’sinterest. the contracting officer shall terminate by delivering to', 44410:'thecontractor a notice of terminationspecifying the extent of terminationand the effectivedate. b afterreceipt of a notice of termination, and except', 44411:'as directed by the contractingofficer, the contractor shall immediately proceed with the following obligations, regardless of any delay in determining', 44412:'or adjusting any amounts due under this clause: 1 stop work as specified in the notice. 2 place no further', 44413:'subcontracts or orders referred to as subcontracts in this clause for materials, services, or facilities, except as necessary to complete', 44414:'the continued portion of the contract. 3 terminate all subcontracts tothe extent they relate tothe work terminated. 4 assign to', 44415:'the government, asdirected bythe contracting officer, all right, title, and interestof the contractor under the subcontracts terminated, in which case', 44416:'the government shall have the right to settle or to pay any termination settlement proposal arising out of those terminations.', 44417:'5 with approval or ratification to the extentrequired by the contracting officer, settle all outstanding liabilities and termination settlement proposals', 44418:'arising from the termination of subcontracts; the approval or ratification will be final for purposes of this clause. 6 asdirected', 44419:'bythe contracting officer, transfer title and deliver to the government i the fabricated or unfabricated parts, work in process, completed', 44420:'work, supplies, and other material produced or acquired for the work terminated; and ii the completed or partially completed plans,', 44421:'drawings, information, and other property that, if the contract had been completed, would be required to be furnished to the', 44422:'government. 7 complete performance of the work not terminated. 8 takeanyaction that maybe necessary, or that the contracting officer may', 44423:'direct, for the protection and preservation of the property related to this contract that is in the possession of the', 44424:'contractor and in which the government has or may acquire an interest. 9 use its best efforts to sell, as', 44425:'directed or authorizedby the contracting officer, any property ofthe types referred to in paragraph b6 of this clause; provided, however,', 44426:'that thecontractor iis notrequired to extend credit to any purchaser and ii may acquirethe property underthe conditions prescribed by, and', 44427:'at pricesapproved by, thecontracting officer. the 52.2535 52.2492 federal acquisition regulation proceeds of any transfer or disposition will be applied', 44428:'to reduce any payments to be made by the government under this contract, creditedto the price or cost of the', 44429:'work, or paid in any other manner directed by the contractingofficer. c thecontractor shall submit complete termination inventory schedules no', 44430:'laterthan 120days from the effectivedate of termination, unless extended in writing by the contracting officer upon written request of the', 44431:'contractor within this 120day period. d after expiration of the plant clearance period as defined in subpart 49.001 of the', 44432:'federal acquisition regulation, thecontractor maysubmit to the contracting officer a list, certified as toquantity and quality, of terminationinventorynot previouslydisposed of,', 44433:'excluding items authorized for disposition by the contracting officer. the contractor may request thegovernment to remove those items or enter', 44434:'into anagreement for their storage. within 15 days,the government will accept title to thoseitems and remove themor enter into a', 44435:'storage agreement. the contractingofficer may verify thelist uponremoval of the items, or if stored, within45 days from submissionof the list,', 44436:'and shall correctthe list, asnecessary, before final settlement. e after termination, the contractorshallsubmit a final terminationsettlement proposal tothe contracting officerin', 44437:'the form and with the certification prescribedby the contracting officer. the contractor shall submitthe proposal promptly, but nolater than 1', 44438:'year fromthe effective date of termination, unless extended in writing by the contracting officer upon written request of the contractorwithin', 44439:'this 1year period. however, if the contracting officer determines that the facts justify it, a termination settlement proposal may be', 44440:'received and acted on after 1 year or any extension. if the contractor fails to submit the proposal within the', 44441:'time allowed, the contractingofficer may determine, on thebasis of information available, theamount, if any, due the contractor because of the', 44442:'termination and shall pay the amount determined. f subject to paragraph e ofthisclause, the contractorandthe contracting officermay agree upon the', 44443:'whole or any part of the amount to be paid or remaining to be paid because of the termination. the', 44444:'amount may include a reasonable allowance for profit on work done. however,the agreed amount, whether underthis paragraph for paragraphgof this', 44445:'clause, exclusive of costs shown in paragraph g3 of this clause, may not exceed the total contract price as reduced', 44446:'by 1 the amount of payments previously made and 2 the contract price of work not terminated. the contract shall', 44447:'be modified, and the contractorpaid the agreed amount. paragraph g of this clause shall not limit, restrict, or affect the', 44448:'amount that may be agreed upon to be paid under this paragraph. g if the contractor and the contracting officer', 44449:'failto agree on the whole amount to be paid because of the termination of work, the contractingofficer shall pay the', 44450:'contractor the amounts determined bythe contracting officeras follows, but without duplication of any amounts agreed on under paragraph f of', 44451:'this clause: 1 the contract price for completed supplies or services accepted by the government or sold or acquired under', 44452:'paragraph b9 of this clause not previouslypaid for, adjusted for anysaving of freight and other charges. 2 the total of', 44453:'i the costs incurred in the performance of the work terminated, including initial costs and preparatory expense allocable thereto, but', 44454:'excluding any costs attributable to supplies or services paid or to be paid under paragraph g1 of this clause; ii', 44455:'the cost of settling and paying termination settlement proposals under terminated subcontracts that are properly chargeable to the terminatedportion of', 44456:'the contractif notincluded insubdivisiong2i ofthisclause; and iii a sum, as profit on subdivision g2i of this clause, determined by the', 44457:'contracting officer under 49.202 of thefederal acquisition regulation, in effecton the dateof this contract,to befair and reasonable; however, ifitappears that', 44458:'thecontractor wouldhavesustained a loss onthe entire contract had it been completed,the contracting officershallallow no profit under this subdivision g2iii and', 44459:'shall reduce the settlement to reflect the indicated rate of loss. 3 the reasonable costs of settlement of the work', 44460:'terminated, including i accounting, legal, clerical, and other expenses reasonably necessary for the preparation of termination settlement proposals and supporting', 44461:'data; ii the termination and settlement of subcontracts excluding the amounts of such settlements; and iii storage, transportation, and other', 44462:'costs incurred, reasonably necessary for the preservation, protection, or disposition of the termination inventory. h except for normal spoilage, and', 44463:'except to the extent that the government expressly assumed the risk of loss, the contracting officershallexclude from theamountspayable to the', 44464:'contractor underparagraph g ofthis clause, the fair value as determinedby the contracting officer, for the loss of the government property.', 44465:'i the cost principles and procedures of part 31ofthefederalacquisitionregulation,ineffectonthedateofthis contract, shall govern all costs claimed, agreed to, or determined under', 44466:'this clause. 52.2536 subpart 52.2 text of provisions and clauses 52.2492 j the contractor shall have the right of appeal,', 44467:'under the disputes clause, from any determination made by the contracting officerunder paragraph e, g, or l of this clause,', 44468:'except that ifthe contractor failed to submit the termination settlement proposalor request for equitable adjustment withinthe time providedin paragraph e', 44469:'or l, respectively, and failed to request a time extension, there is no right of appeal. k in arriving at', 44470:'the amount due the contractor under this clause, there shall be deducted 1 all unliquidated advance or other payments to', 44471:'the contractor under the terminated portion of this contract; 2 any claim which the government has against the contractor under', 44472:'this contract; and 3 the agreed price for, or the proceeds of saleof, materials, supplies, or other things acquired by', 44473:'thecontractor or sold under the provisions of this clause and not recovered by or credited to the government. lif the', 44474:'termination is partial, the contractor may filea proposal with the contracting officer for an equitable adjustment of the prices of', 44475:'the continued portion ofthe contract. the contracting officer shall makeanyequitable adjustmentagreed upon. any proposal by the contractor for an equitable', 44476:'adjustment under this clause shall be requested within 90 days from theeffective date oftermination unless extended in writing bythe contracting', 44477:'officer. m 1thegovernmentmay,underthetermsandconditionsitprescribes,makepartialpaymentsandpaymentsagainst costs incurred by the contractor for the terminated portion of thecontract, if the contracting officer believes the', 44478:'totalof these payments will not exceed the amount to which the contractor will be entitled. 2 if the total payments', 44479:'exceed the amount finally determined to be due, the contractor shall repay the excess to thegovernment upon demand, together with', 44480:'interestcomputed atthe rateestablished by the secretary of the treasury under 50 u.s.c. app.1215b2. interest shall be computed for the period', 44481:'from the date the excess payment is received by the contractorto the date theexcess is repaid. interest shall not be', 44482:'chargedon any excess payment dueto a reduction in the contractor’s termination settlement proposalbecause of retention or other disposition oftermination inventory', 44483:'until 10 days after thedate of the retention ordisposition, or a later date determined by the contractingofficer because of the', 44484:'circumstances. n unless otherwise provided in this contract or by statute, the contractor shall maintain all records and documents relating', 44485:'to the terminated portion of this contract for 3 years after final settlement. this includes all books and other evidence', 44486:'bearingon the contractor’s costs and expensesunder this contract. the contractor shall make these records and documents available to the government,', 44487:'at thecontractor’s office, at all reasonable times, without any direct charge. ifapproved bythe contracting officer, photographs,microphotographs, orother authentic reproductions may', 44488:'bemaintained instead of original records and documents. end of clause alternate i sept 1996. if the contract is for construction,', 44489:'substitute the following paragraph g for paragraph g of the basic clause: g if the contractor and contracting officer fail', 44490:'toagreeon the wholeamount to be paid the contractor because of thetermination of work, the contractingofficer shall pay the contractor the', 44491:'amounts determined asfollows, but without duplication of any amounts agreed upon under paragraph f of this clause: 1 for contractworkperformed', 44492:'before the effectivedate of termination,the total without duplication of any items of i the cost of this work; ii the', 44493:'cost of settling and paying termination settlement proposals under terminated subcontracts that are properly chargeable to the terminatedportion of the', 44494:'contractif notincluded insubdivisiong1i ofthisclause; and iii a sum, as profit on subdivision g1i of this clause, determined by the contracting', 44495:'officer under 49.202 of thefederal acquisition regulation, in effecton the dateof this contract,to befair and reasonable; however, ifitappears that thecontractor', 44496:'wouldhavesustained a loss onthe entire contract had it been completed,the contracting officershallallow no profit under this subdivision g1iii and shall', 44497:'reduce the settlement to reflect the indicated rate of loss. 2 the reasonable costs of settlement of the work terminated,', 44498:'including i accounting, legal, clerical, and other expenses reasonably necessary for the preparation of termination settlement proposals and supporting data;', 44499:'ii the termination and settlement of subcontracts excluding the amounts of such settlements; and iii storage, transportation, and other costs', 44500:'incurred, reasonably necessary for the preservation, protection, or disposition of the termination inventory. 52.2537 52.2493 federal acquisition regulation alternate ii', 44501:'sept 1996. if the contract is with an agency of the u.s. government or with state, local, or foreign governments', 44502:'or their agencies, and ifthe contracting officerdeterminesthat the requirement to pay interest on excess partial payments is inappropriate, delete paragraph', 44503:'m2 of the basic clause. alternate iii sept 1996. if the contract is for construction and with an agency of', 44504:'the u.s. government or with state, local, or foreign governments or their agencies, substitute the following paragraph g for paragraph', 44505:'g of the basic clause. paragraphm2 may be deleted from the basicclause if the contracting officer determines thatthe requirement topay', 44506:'interest on excess partial payments is inappropriate. g if the contractor and contracting officer fail toagreeon the wholeamount to be', 44507:'paid the contractor because of thetermination of work, the contractingofficer shall pay the contractor the amounts determined asfollows, but without', 44508:'duplication of any amounts agreed upon under paragraph f of this clause: 1 for contractworkperformed before the effectivedate of termination,the', 44509:'total without duplication of any items of i the cost of this work; ii the cost of settling and paying', 44510:'termination settlement proposals under terminated subcontracts that are properly chargeable to the terminatedportion of the contractif notincluded insubdivisiong1i ofthisclause; and', 44511:'iii a sum, as profit on subdivision g1i of this clause, determined by the contracting officer under 49.202 of thefederal', 44512:'acquisition regulation, in effecton the dateof this contract,to befair and reasonable; however, ifitappears that thecontractor wouldhavesustained a loss onthe entire', 44513:'contract had it been completed,the contracting officershallallow no profit under this subdivisioniii and shall reduce the settlement to reflect the', 44514:'indicated rate of loss. 2 the reasonable costs of settlement of the work terminated, including i accounting, legal, clerical, and', 44515:'other expenses reasonably necessary for the preparation of termination settlement proposals and supporting data; ii the termination and settlement of', 44516:'subcontracts excluding the amounts of such settlements; and iii storage, transportation, and other costs incurred, reasonably necessary for the preservation,', 44517:'protection, or disposition of the termination inventory. 52.2493termination forconvenience of the government dismantling, demolition,or removal ofimprovements. as prescribed in 49.502b2,', 44518:'insert the following clause: termination for convenience of the government dismantling, demolition, or removal of improvements apr 2012 a thegovernment', 44519:'may terminate performance ofwork under this contract, inwhole or,from time totime, in part ifthe contracting officerdeterminesthat a termination is in', 44520:'the government’sinterest. the contracting officer shall terminate by delivering to thecontractor a notice of terminationspecifying the extent of terminationand the', 44521:'effectivedate. upon receipt of the notice, if title to property is vested in the contractor under this contract, it shall', 44522:'revest in the government regardless of any other clause of this contract, except for property that the contractor disposed of', 44523:'by bona fide sale or removed from the site. b afterreceipt of a notice of termination, and except as directed', 44524:'by the contractingofficer, the contractor shall immediately proceed with the following obligations, regardless of delay in determining or adjusting any', 44525:'amounts due under this clause: 1 stop work as specified in the notice. 2 place no further subcontracts or orders', 44526:'referred to as subcontracts in this clause for materials, services, or facilities, except as necessary to complete the continued portion', 44527:'of the contract. 3 terminate all subcontracts tothe extent they relate tothe work terminated. 4 assign to the government, asdirected', 44528:'bythe contracting officer, all right, title, and interestof the contractor under the subcontracts terminated, in which case the government shall', 44529:'have the right to settle or to pay any termination settlement proposal arising out of those terminations. 5 with approval', 44530:'or ratification to the extentrequired by the contracting officer, settle all outstanding liabilities and termination settlement proposals arising from the', 44531:'termination of subcontracts; the approval or ratification will be final for purposes of this clause. 6 asdirected bythe contracting officer,', 44532:'transfer title and deliver to the government i the fabricated or unfabricated parts, work in process, completed work, supplies, and', 44533:'other material produced or acquired for the work terminated; and 52.2538 subpart 52.2 text of provisions and clauses 52.2493 ii', 44534:'the completed or partially completed plans, drawings, information, and other property that, if the contract has been completed, would be', 44535:'required to be furnished to the government. 7 complete performance of the work not terminated. 8 takeanyaction that maybe necessary,', 44536:'or that the contracting officer may direct, for the protection and preservation of the property related to this contract that', 44537:'is in the possession of the contractor and in which the government has or may acquire an interest. 9 use', 44538:'its best efforts to sell, as directed or authorizedby the contracting officer, any property ofthe types referred to in paragraph', 44539:'b6of this clause; provided,however,that the contractoriis not required toextend creditto any purchaser and ii may acquirethe property underthe conditions prescribed', 44540:'by, and at pricesapproved by, thecontracting officer. the proceeds of any transfer or disposition will be applied to reduce any', 44541:'payments to be made by the government under this contract, creditedto the price or cost of the work, or paid', 44542:'in any other manner directed by the contractingofficer. c thecontractor shall submit complete termination inventory schedules no laterthan 120days from', 44543:'the effectivedate of termination, unless extended in writing by the contracting officer upon written request of the contractor within this', 44544:'120day period. d after expiration of the plant clearance period as defined in subpart 49.001 of the federal acquisition regulation,', 44545:'thecontractor maysubmit to the contracting officer a list, certified as toquantity and quality, of terminationinventorynot previouslydisposed of, excluding items authorized', 44546:'for disposition by the contracting officer. the contractor may request thegovernment to remove those items or enter into anagreement for', 44547:'their storage. within 15 days,the government will accept title to thoseitems and remove themor enter into a storage agreement. the', 44548:'contractingofficer may verify thelist uponremoval of the items, or if stored, within45 days from submissionof the list, and shall correctthe', 44549:'list, asnecessary, before final settlement. e after termination, the contractorshallsubmit a final terminationsettlement proposal tothe contracting officerin the form and', 44550:'with the certification prescribedby the contracting officer. the contractor shall submitthe proposal promptly, but nolater than 1 year fromthe effective', 44551:'date of termination, unless extended in writing by the contracting officer upon written request of the contractorwithin this 1year period.', 44552:'however, if the contracting officer determines that the facts justify it, a termination settlement proposal may be received and acted', 44553:'on after 1 year or any extension. if the contractor fails to submit the proposal within the time allowed, the', 44554:'contractingofficer may determine, on thebasis of information available, theamount, if any, due the contractor because of the termination and shall', 44555:'pay the amount determined. f subject to paragraph e ofthisclause, the contractorandthe contracting officermay agree upon the whole or any', 44556:'part of the amount to be paid because of the termination. the amount may include a reasonable allowance for profit', 44557:'on work done. however, the agreed amount, whether under this paragraph f orparagraph g ofthisclause, exclusive ofsettlement costs, may not', 44558:'exceed the total contract price as reduced by 1 the amount of payments previously made and 2 the contract price', 44559:'of work not terminated. the contract shall be amended and the contractor paid the agreed amount. paragraph g of this', 44560:'clause shall not limit, restrict,or affect the amountthat may be agreed upon to be paid underthisparagraph. g if the contractor', 44561:'and the contracting officer failto agree on the whole amount to be paid because of the termination of work, the', 44562:'contractingofficer shall pay the contractor the amounts determined bythe contracting officeras follows, but without duplication of any amounts agreed on', 44563:'under paragraph f of this clause: 1 for contractworkperformed before the effectivedate of termination,the total without duplication of any items', 44564:'of i the cost of this work; ii the cost of settling and paying termination settlement proposals under terminated subcontracts', 44565:'that are properly chargeable to the terminatedportion of the contract, if not included in subdivision g1i of this clause; and', 44566:'iii a sum, as profit on subdivision g1i of this clause, determined by the contracting officer under section 49.202 of', 44567:'the federal acquisitionregulation,in effect on the date of this contract, to be fair and reasonable; however, if it appears that', 44568:'the contractor would have sustained aloss on the entire contract had it been completed, the contractingofficer shall allow no profit', 44569:'under this subdivisioniii and shall reduce the amount of the settlement to reflect the indicated rate of loss. 2 the', 44570:'reasonable costs of settlement of the work terminated, including i accounting, legal, clerical, and other expenses reasonably necessary for the', 44571:'preparation of termination settlement proposals and supporting data; ii the termination and settlement of subcontracts excluding the amounts of such', 44572:'settlements; and iii preservation and protection of property under paragraph b8 of this clause. 52.2539 52.2494 federal acquisition regulation h', 44573:'except for normal spoilage, and except to the extent that the government expressly assumed the risk of loss, the contracting', 44574:'officershallexclude from theamountspayable to the contractor underparagraph g ofthis clause, the fair value, as determined bythe contracting officer, for theloss', 44575:'of the government property. i the cost principles and procedures of part 31ofthefederalacquisitionregulation,ineffectonthedateofthis contract, shall govern all costs claimed, agreed', 44576:'to, or determined under this clause. j the contractor shall have the right of appeal, under the disputes clause, from', 44577:'any determination made by the contracting officerunder paragraph e, g, or l of this clause, except that ifthe contractor failed', 44578:'to submit the termination settlement proposal within the time provided in paragraph e or l and failed to request a', 44579:'time extension, there is no right of appeal. if the contractingofficer has made a determination of the amount due under', 44580:'paragraph e, g,or l ofthisclause, the government shall pay the contractor 1 the amount determined by the contracting officer, ifthere', 44581:'is no right ofappealor if notimely appeal has been taken; or 2 the amount finally determined on an appeal. k', 44582:'in arriving at the amount due the contractor under this clause, there shall be deducted 1 all unliquidated advance or', 44583:'other payments to the contractor under the terminated portion of this contract; 2 any claim which the government has against', 44584:'the contractor under this contract; and 3 the agreed price for, or the proceeds of saleof, materials, supplies, or other', 44585:'things acquired by thecontractor or sold under the provisions of this clause and not recovered by or credited to the', 44586:'government. lif the termination is partial, the contractor may filea proposal with the contracting officer for an equitable adjustment of', 44587:'the prices of the continued portion ofthe contract. the contracting officer shall makeanyequitable adjustmentagreed upon. any proposal by the contractor', 44588:'for an equitable adjustment under this clause shall be requested within 90 days from theeffective date oftermination unless extended in', 44589:'writing bythe contracting officer. m 1thegovernmentmay,underthetermsandconditionsitprescribes,makepartialpaymentsandpaymentsagainst cost incurred by the contractor for the terminated portion ofthe contract, if the contracting', 44590:'officer believes the total of these payments will not exceed the amount to which the contractor will be entitled. 2', 44591:'if the total payments exceed the amount finally determined to be due, the contractor shall repay the excess to thegovernment', 44592:'upon demand, together with interestcomputed atthe rateestablished by the secretary of the treasury under 50 u.s.c.app 1215b2. interest shall be', 44593:'computed for the period from the date the excess payment is received by thecontractor to thedate the excessis repaid. interest', 44594:'shall not becharged onany excess payment due to a reduction in thecontractor’s terminationsettlement proposal because ofretention or other disposition of', 44595:'termination inventory until 10 days after thedate of the retention ordisposition, or a later date determined by the contractingofficer because', 44596:'of the circumstances. n unless otherwise provided in this contract or by statute, the contractor shall maintain all records and', 44597:'documents relating to the terminated portion of this contract for 3 years after final settlement. this includes all books and', 44598:'other evidence bearingon the contractor’s costs and expensesunder this contract. the contractor shall make these records and documents available to', 44599:'the government, at thecontractor’s office, at all reasonable times, without any direct charge. ifapproved bythe contracting officer, photographs,microphotographs, orother authentic', 44600:'reproductions may bemaintained instead of original records and documents. end of clause alternate i sept1996. if the contract is with', 44601:'an agency of the u.s. government or with state, local, or foreign governments or their agencies, and ifthe contracting officerdeterminesthat', 44602:'therequirementto pay interest on excess partial payments is inappropriate, delete paragraph m2 from the basic clause. 52.2494termination forconvenience of the', 44603:'government services short form. as prescribed in 49.502c, insert the following clause in solicitations and contracts for services, regardless of', 44604:'value, when a fixedprice contract is contemplated andthe contracting officerdeterminesthat because ofthe kind of services required, the successful offeror willnot', 44605:'incur substantialcharges in preparationforand in carryingout the contract, and would, if terminated for the convenience of the government, limit termination', 44606:'settlementcharges to servicesrendered before the date of termination: termination for convenience of the government services short form apr 1984 52.2540', 44607:'subpart 52.2 text of provisions and clauses 52.2495 the contracting officer, bywritten notice, may terminate this contract, inwhole or in', 44608:'part, when it is in thegovernment’s interest. if this contract is terminated, the government shall be liable only for payment', 44609:'under the payment provisions of this contract for services rendered before the effective date of termination. end of clause 52.2495termination', 44610:'forconvenience of the government educational and other nonprofit institutions. as prescribed in 49.502d, insert the following clause: termination for convenience', 44611:'of the government educational and other nonprofit institutions aug 2016 a thegovernment may terminate performance ofwork under this contract in', 44612:'whole or, fromtime to time, in part if the contracting officerdeterminesthat a termination is in the government’sinterest. the contracting officer', 44613:'shall terminate by delivering to thecontractor a notice of terminationspecifying the extent of terminationand the effectivedate. b afterreceipt of a', 44614:'notice of termination and except as directed by the contracting officer, the contractor shall immediately proceed with the following obligations:', 44615:'1 stop work as specified in the notice. 2 place no further subcontracts or orders referred to as subcontracts in', 44616:'this clause, except as necessary to complete the continued portion of the contract. 3 terminate all applicable subcontracts and cancel', 44617:'or divert applicable commitments covering personal services that extend beyond the effective date of termination. 4 assign to the government,', 44618:'asdirected bythe contracting officer, all right, title, and interestof the contractor under the subcontracts terminated, in which case the government', 44619:'shall have the right to settle or pay any termination settlement proposal arising out of those terminations. 5 with approval', 44620:'or ratification to the extentrequired by the contracting officer, settle all outstanding liabilities and termination settlement proposals arising from the', 44621:'termination of subcontracts; approval or ratification will be final for purposes of this clause. 6 transfer title ifnot alreadytransferred and,as', 44622:'directedby the contracting officer, deliver to the government any information and items that, if the contract had been completed, would', 44623:'have been required to be furnished, including i materials or equipment produced, in process, or acquired for the work terminated;', 44624:'and ii completed or partially completed plans, drawings, and information. 7 complete performance of the work not terminated. 8 takeanyaction', 44625:'that maybe necessary, or that the contracting officer may direct, for the protection and preservation of the property related to', 44626:'this contract that is in the possession of the contractor and in which the government has or may acquire an', 44627:'interest. 9 use its best efforts to sell, as directed or authorizedby the contracting officer, termination inventory other than that', 44628:'retained by the government under paragraph b6 of this clause; provided, however, that the contractor iis not required to extend', 44629:'credit to any purchaser and ii may acquire the property under the conditions prescribedby, and at prices approved by, the', 44630:'contracting officer. the proceeds of any transfer or disposition will be appliedto reduce any payments to be made by the', 44631:'government under this contract, credited to the price or cost of the work, or paid in any other manner directed', 44632:'by the contracting officer. c thecontractor shall submit complete termination inventory schedules no laterthan 120days from the effectivedate of termination,', 44633:'unless extended in writing by the contracting officer upon written request of the contractor within this 120day period. d aftertermination,', 44634:'the contractor shall submit afinal termination settlement proposal to the contracting officer in the form and with the certification prescribedby', 44635:'the contracting officer. the contractor shall submitthe proposal promptly but no later than 1yearfrom the effective dateof termination unless extended', 44636:'in writingby the contracting officer upon written request of the contractor within this 1year period. if the contractor fails to', 44637:'submit the termination settlement proposal within thetime allowed, the contracting officer maydetermine, on the basis of information available, theamount, if', 44638:'any, due the contractor because of the termination and shall pay the amount determined. e subject to paragraph d of', 44639:'thisclause, thecontractor andthe contracting officermay agree upon the whole or any part ofthe amount to be paid because of the', 44640:'termination. this amountmay includereasonable cancellation charges incurred 52.2541 52.2496 federal acquisition regulation by the contractor and any reasonable loss on', 44641:'outstanding commitments for personal services that the contractor is unable to cancel; provided, that the contractor exercised reasonable diligence in', 44642:'diverting such commitments to other operations. the contract shall be amended and the contractor paid the agreed amount. f the', 44643:'cost principles and procedures in subpart 31.3ofthefederalacquisitionregulationfar,contractswith educational institutions defined as institutions of higher education in the omb uniform guidance', 44644:'in 2 cfr part 200, subpart a, and 20 u.s.c. 1001,as in effect on the date of the contract,shallgovern allcosts', 44645:'claimed, agreedto, or determined under this clause; however, ifthe contractor is not an educational institution and is a nonprofit organization', 44646:'as defined in the omb uniform guidance at 2 cfr part 200, the cost principles and procedures in subpart 31.7', 44647:'of the far,contracts with nonprofitorganizations, shall apply; unless the contractor is a nonprofit institution listed in theomb uniform guidance at', 44648:'2 cfr part 200, appendix viii, as exempted from the cost principles in subpart e, in which case the cost', 44649:'principles at far 31.2 for commercial organizations shall applyto suchcontractor. g the government may, underthe terms and conditions it prescribes,', 44650:'make partial payments against costs incurred by thecontractor for the terminatedportion of this contract, if the contracting officer believes the', 44651:'total ofthese payments will not exceed the amount to which the contractor will be entitled. h the contractor has the', 44652:'right of appeal as provided under the disputes clause, except that if the contractor failed to submit the termination settlement', 44653:'proposal within the time provided in paragraph d of this clause and failed to request a time extension, there is', 44654:'no right of appeal. end of clause 52.2496termination costreimbursement. as prescribed in 49.503a1, insert the following clause: termination costreimbursement may', 44655:'2004 a thegovernment may terminate performance ofwork under this contract in whole or, fromtime to time, in part, if 1', 44656:'the contracting officer determines that a termination is inthe government’s interest;or 2 the contractor defaults in performing this contract and', 44657:'fails to cure the default within 10 days unless extended by the contractingofficer after receiving anotice specifying the default. default', 44658:'includes failure to make progress inthe work so as to endanger performance. b the contracting officer shall terminate by delivering', 44659:'to the contractor a notice of termination specifying whether terminationis for default of thecontractor or for convenienceof the government, the', 44660:'extent of termination, andthe effective date. if,after termination for default, it is determinedthat the contractorwas not in defaultor that the', 44661:'contractor’s failure to perform or to make progress in performance is due to causes beyond the control and without the', 44662:'fault or negligence of the contractor as set forth in the excusable delays clause, the rights and obligations of the', 44663:'parties will be the same as if the termination was for the convenience of the government. c after receipt of', 44664:'a notice of termination, and except asdirected bythe contracting officer, thecontractor shall immediately proceed with the following obligations, regardless of', 44665:'any delay in determining or adjusting any amounts due under this clause: 1 stop work as specified in the notice.', 44666:'2 place no further subcontracts or orders referred to as subcontracts in this clause, except as necessary to complete the', 44667:'continued portion of the contract. 3 terminate all subcontracts tothe extent they relate tothe work terminated. 4 assign to the', 44668:'government, asdirected bythe contracting officer, all right, title, and interestof the contractor under the subcontracts terminated, in which case the', 44669:'government shall have the right to settle or to pay any termination settlement proposal arising out of those terminations. 5', 44670:'with approval or ratification to the extentrequired by the contracting officer, settle all outstanding liabilities and termination settlement proposals arising', 44671:'from the termination of subcontracts, the cost of which would be reimbursable in whole or in part, under this contract;', 44672:'approval or ratification will be final for purposes of this clause. 6 transfer title ifnot alreadytransferred and,as directedby the contracting', 44673:'officer, deliver to the government i the fabricated or unfabricated parts, work in process, completed work, supplies, and other material', 44674:'produced or acquired for the work terminated; 52.2542 subpart 52.2 text of provisions and clauses 52.2496 ii the completed or', 44675:'partially completed plans, drawings, information, and other property that, if the contract had been completed, would be required to be', 44676:'furnished to the government; and iii the jigs, dies, fixtures, and other special tools and tooling acquired or manufactured for', 44677:'this contract, the cost of which the contractor has been or will be reimbursed under this contract. 7 complete performance', 44678:'of the work not terminated. 8 takeanyaction that maybe necessary, or that the contracting officer may direct, for the protection', 44679:'and preservation of the property related to this contract that is in the possession of the contractor and in which', 44680:'the government has or may acquire an interest. 9 use its best efforts to sell, as directed or authorizedby the', 44681:'contracting officer, any property ofthe types referred to in paragraph c6 of this clause; provided, however, that the contractor iis', 44682:'not required to extend credit to any purchaser and ii may acquirethe property underthe conditions prescribed by, and at pricesapproved', 44683:'by, thecontracting officer. the proceeds of any transfer or disposition will be applied to reduce any payments to be made', 44684:'by the government under this contract, creditedto the price or cost of the work, or paid in any other manner', 44685:'directed by the contractingofficer. d the contractor shall submit completetermination inventory schedulesno later than 120 days fromthe effective date of', 44686:'termination, unless extended in writing by the contracting officer upon written request of the contractor within this 120day period. e', 44687:'after expiration of the plant clearance period as defined in subpart 49.001 of the federal acquisition regulation, thecontractor maysubmit to', 44688:'the contracting officer a list, certified as toquantity and quality, of terminationinventorynot previouslydisposed of, excluding items authorized for disposition by', 44689:'the contracting officer. the contractor may requestthe government to remove those items or enter into an agreementfortheir storage. within15 days,', 44690:'thegovernment will accept theitems and remove themor enter into a storage agreement. the contractingofficer may verify thelist uponremoval of the', 44691:'items, or if stored, within 45 days from submission of thelist, and shall correct the list,as necessary, before finalsettlement. f', 44692:'after termination, thecontractor shall submit afinal termination settlement proposal to the contracting officer in the form and with the certification', 44693:'prescribedby the contracting officer. the contractor shall submitthe proposal promptly, but nolater than 1 year fromthe effective date of termination,', 44694:'unless extended in writing by the contracting officer upon written request of the contractorwithin this 1year period. however, if the', 44695:'contracting officer determines that the facts justify it, a termination settlement proposal may be received and acted on after 1', 44696:'year or any extension. if the contractor fails to submit the proposal within the time allowed, the contractingofficer may determine,', 44697:'on thebasis of information available, theamount, if any, due the contractor because of the termination and shall pay the amount', 44698:'determined. g subjectto paragraph f of this clause, the contractor and the contracting officer mayagreeon the wholeor any part of', 44699:'the amount to be paid including an allowance for fee because of the termination. the contract shall be amended, and', 44700:'the contractor paid the agreed amount. h if the contractor and the contracting officer failto agree in whole or in', 44701:'part on the amount ofcosts and/orfee tobe paid becauseof the termination of work, the contracting officer shall determine, onthe basis', 44702:'ofinformationavailable, the amount,if any, due the contractor, and shall pay that amount, which shall include thefollowing: 1 all costs reimbursable', 44703:'under this contract, not previously paid, for the performance of this contract before the effective date of thetermination, and thosecosts', 44704:'thatmay continue for a reasonable time with the approval of or asdirected by the contractingofficer; however, the contractor shall discontinue', 44705:'those costs asrapidly as practicable. 2 the cost of settling and paying termination settlement proposals under terminated subcontracts that are', 44706:'properly chargeable to the terminatedportion of the contractif notincluded inparagraph h1of this clause. 3 the reasonable costs of settlement of', 44707:'the work terminated, including i accounting, legal, clerical, and other expenses reasonably necessary for the preparation of termination settlement proposals', 44708:'and supporting data; ii the termination and settlement of subcontracts excluding the amounts of such settlements; and iii storage, transportation,', 44709:'and other costs incurred, reasonably necessary for the preservation, protection, or disposition of the termination inventory. ifthe terminationis for default,no', 44710:'amounts for the preparation of the contractor’s termination settlement proposal may be included. 4 a portion of the fee payable', 44711:'under the contract, determined as follows: i if the contract is terminated for the convenience of the government, the settlement', 44712:'shall include a percentage of the fee equal to the percentage of completion ofworkcontemplated under the contract, but excluding subcontract', 44713:'effort included in subcontractors’ termination proposals, less previous payments for fee. 52.2543 52.2496 federal acquisition regulation ii if the contract', 44714:'is terminated for default, the total fee payable shall be such proportionate part of the fee as the total number', 44715:'of articles or amount of services delivered to and accepted by the government is to the total number of articles', 44716:'or amount of services of a like kind required by the contract. 5 if the settlement includes only fee, it', 44717:'will be determined under paragraph h4 of this clause. i the cost principles and procedures in part 31ofthefederalacquisitionregulation,ineffectonthedateofthis contract, shall', 44718:'govern all costs claimed, agreed to, or determined under this clause. j the contractor shall have the right of appeal,', 44719:'under the disputes clause, from any determination made by the contracting officerunder paragraph f, h,or l ofthisclause, except that if', 44720:'the contractor failed tosubmit thetermination settlement proposal within the time provided in paragraph f and failed to request a time', 44721:'extension, there is no right of appeal. if the contractingofficer has made a determination of the amount due under paragraph', 44722:'f,hor l ofthisclause, the government shall pay the contractor 1 the amount determined by the contracting officer if there isno', 44723:'right of appeal or if no timelyappealhas been taken; or 2 the amount finally determined on an appeal. k in', 44724:'arriving at the amount due the contractor under this clause, there shall be deducted 1 all unliquidated advance or other', 44725:'payments to the contractor, under the terminated portion ofthis contract; 2 any claim which the government has against the contractor', 44726:'under this contract; and 3 the agreed price for, or the proceeds of saleof materials, supplies, or other thingsacquired by', 44727:'the contractoror sold under this clause and not recovered by or credited to the government. lthe contractorand contractingofficer must agree', 44728:'toanyequitable adjustmentin feeforthe continued portionof the contract when there is a partial termination. the contracting officer shall amendthe contract toreflect', 44729:'the agreement. m 1thegovernmentmay,underthetermsandconditionsitprescribes,makepartialpaymentsandpaymentsagainst costs incurred by the contractor for the terminated portion of thecontract, if the contracting officer believes', 44730:'the totalof these payments will not exceed the amount to which the contractor will be entitled. 2 if the total', 44731:'payments exceed the amount finally determined to be due, the contractor shall repay the excess to thegovernment upon demand, together', 44732:'with interestcomputed atthe rateestablished by the secretary of the treasury under 50 u.s.c. app.1215b2. interest shall be computed for the', 44733:'period from the date the excess payment is received by the contractorto the date theexcess is repaid. interest shall not', 44734:'be chargedon any excess payment dueto a reduction in the contractor’s termination settlement proposalbecause of retention or other disposition oftermination', 44735:'inventory until 10 days after thedate of the retention ordisposition, or a later date determined by the contractingofficer because of', 44736:'the circumstances. n the provisions of this clause relating to fee are inapplicable if this contract does not include a', 44737:'fee. end of clause alternate i sept1996. if the contract is for construction, substitute the following paragraph h4 for paragraph', 44738:'h4 of the basic clause: 4 a portion of the fee payable under the contract determined as follows: i if', 44739:'the contract is terminated for the convenience of the government, the settlement shall include a percentage of the fee equal', 44740:'to the percentage of completion ofworkcontemplated under the contract, but excluding subcontract effort included in subcontractors’ termination settlement proposals, less', 44741:'previous payments for fee. ii if the contract is terminated for default, the total fee payable shall be such proportionate', 44742:'part of the fee as the actual work in place is to the total work in place required by the', 44743:'contract. alternate ii sept1996. if the contract is with an agency of the u.s. government or with state, local, or', 44744:'foreign governments or their agencies, and ifthe contracting officerdeterminesthat therequirementto pay interest on excess partial payments is inappropriate, delete paragraph', 44745:'m2 from the basic clause. alternate iii sept1996. if the contract is for construction with an agency of the u.s.', 44746:'government or with state, local, or foreign governments or their agencies, the following paragraph h4 shall be substituted for paragraph', 44747:'h4 of the basic clause. paragraph m2 maybe deleted from the basic clause ifthe contracting officer determines that therequirementto pay', 44748:'interest on excess partial payments is inappropriate. 4 a portion of the fee payable under the contract determined as follows:', 44749:'52.2544 subpart 52.2 text of provisions and clauses 52.2496 i if the contract is terminated for the convenience of the', 44750:'government, the settlement shall include a percentage of the fee equal to the percentage of completion ofworkcontemplated under the contract,', 44751:'but excluding subcontract effort included in subcontractors’ termination settlement proposals, less previous payments for fee. ii if the contract is', 44752:'terminated for default, the total fee payable shall be such proportionate part of the fee as the actual work in', 44753:'place is to the total work in place required by the contract. alternate iv sept1996. if the contract is a', 44754:'timeandmaterial or laborhour contract, substitute the following paragraphs h and l for paragraphs h and l of the basic clause:', 44755:'h if the contractor and the contracting officer failto agree in whole or in part on the amount to be', 44756:'paidbecause of the terminationof work, the contracting officer shall determine, on the basis of information available, the amount, if any,', 44757:'due the contractor and shall pay the amount determined as follows: 1 if the termination is for the convenience of', 44758:'the government, include i an amount for direct labor hours as defined in the schedule of the contract determined by', 44759:'multiplying the number ofdirect labor hours expended before the effective date of termination by the hourly ratesin the schedule,less any', 44760:'hourly rate payments already made to the contractor; ii an amount computed under the provisions for payment of materials for', 44761:'material expenses incurred before the effective date of termination, not previously paid to the contractor; iii an amount for labor', 44762:'and material expenses computed as if the expenseswere incurred before the effective date of termination, if theyare reasonably incurred after', 44763:'the effective date, with the approvalof or as directed by the contracting officer; however, the contractor shall discontinue these expenses', 44764:'as rapidly as practicable; iv if not included in subdivision h1i, ii, or iii of this clause, the cost of', 44765:'settling and paying termination settlement proposals under terminated subcontracts that are properly chargeable to the terminatedportion of the contract; and', 44766:'v the reasonable costs of settlement of the work terminated, including a accounting, legal, clerical, and other expenses reasonably necessary', 44767:'for the preparation of termination settlement proposals and supporting data; b the termination and settlement of subcontracts excluding the amounts', 44768:'of such settlements; and c storage, transportation, and other costs incurred, reasonably necessary for the protection or disposition of the', 44769:'terminationinventory. 2 if the termination is for default of the contractor, includethe amounts computed under paragraphh1 of this clause but', 44770:'omit iany amount for preparation ofthe contractor’stermination settlement proposal;and ii the portion of the hourly rate allocable to profit for', 44771:'any direct labor hours expended in furnishing materials and services not delivered to and accepted by the government. lif the', 44772:'termination is partial, the contractor may filewith the contracting officer a proposal for an equitable adjustment of prices for the', 44773:'continued portionof the contract. the contracting officer shall make any equitable adjustment agreed upon. any proposal by the contractor for', 44774:'an equitable adjustment under this clause shall be requested within 90 days from theeffective date oftermination, unless extended in writing', 44775:'by the contracting officer. alternate v sept1996. if the contract is a timeandmaterial or laborhour contract with an agency of', 44776:'the u.s. government or with state, local or foreign governments or their agencies, substitute the following paragraphs h and l', 44777:'for paragraphs h and l of thebasic clause. paragraph m2may be deleted from thebasic clause if the contractingofficer determines that', 44778:'the requirement to pay interest on excess partial payments is inappropriate. h if the contractor and the contracting officer failto', 44779:'agree in whole or in part on the amount to be paidbecause of the terminationof work, the contracting officer shall', 44780:'determine, on the basis of information available, the amount, if any, due the contractor and shall pay the amount determined', 44781:'as follows: 1 if the termination is for the convenience of the government, include i an amount for direct labor', 44782:'hours as defined in the schedule of the contract determined by multiplying the number ofdirect labor hours expended before the', 44783:'effective date of termination by the hourly ratesin the schedule,less any hourly rate payments already made to the contractor; ii', 44784:'an amount computed under the provisions for payment of materials for material expenses incurred before the effective date of termination,', 44785:'not previously paid to the contractor; iii an amount for labor and material expenses computed as if the expenseswere incurred', 44786:'before the effective date of termination ifthey are reasonablyincurred after theeffective date, with theapproval of or as directed by the', 44787:'contracting officer; however, the contractor shall discontinue these expenses as rapidly as practicable; 52.2545 52.2497 federal acquisition regulation iv if', 44788:'not included in subdivision h1i, ii, or iii of this clause, the cost of settling and paying termination settlement proposals', 44789:'under terminated subcontracts that are properly chargeable to the terminatedportion of the contract; and v the reasonable costs of settlement', 44790:'of the work terminated, including a accounting, legal, clerical, and other expenses reasonably necessary for the preparation of termination settlement', 44791:'proposals and supporting data; b the termination and settlement of subcontracts excluding the amounts of such settlements; and c storage,', 44792:'transportation, and other costs incurred, reasonably necessary for the protection or disposition of the terminationinventory. 2 if the termination is', 44793:'for default of the contractor, includethe amounts computed under paragraphh1 of this clause but omit iany amount for preparation ofthe', 44794:'contractor’stermination settlement proposal;and ii the portion of the hourly rate allocable to profit for any direct labor hours expended in', 44795:'furnishing materials and services not delivered to and accepted by the government. lif the termination is partial, the contractor may', 44796:'filewith the contracting officer a proposal for an equitable adjustment of the prices for the continuedportion of the contract. the', 44797:'contractingofficer shall make any equitable adjustment agreed upon. any proposal by the contractor for an equitable adjustment under this clause', 44798:'shall be requested within 90 days from theeffective date oftermination, unless extended in writing by the contracting officer. 52.2497termination fixedprice', 44799:'architectengineer. as prescribed in 49.503b, insert the following clause in solicitations and contracts for architectengineer services when a fixedprice contract', 44800:'is contemplated: termination fixedprice architectengineer apr 1984 a thegovernment may terminate this contract in whole or, from time to time,', 44801:'inpart,forthe government’s convenience or becauseof the failure ofthe contractor tofulfill the contract obligations. the contracting officershallterminateby delivering to thecontractor a', 44802:'notice of terminationspecifying the nature, extent, and effective date of the termination. upon receipt of the notice, the contractor shall', 44803:'1 immediatelydiscontinue all services affected unless thenotice directs otherwise; and 2 deliverto thecontracting officer all data, drawings, specifications,reports, estimates, summaries,', 44804:'and other information and materials accumulated in performing this contract, whether completed or in process. b if the termination is', 44805:'for the convenience of the government, the contracting officer shall make an equitable adjustment in the contract price but shall', 44806:'allow no anticipated profit on unperformed services. c if the termination is for failure of the contractor to fulfill the', 44807:'contract obligations, the government may complete the work by contract or otherwise and the contractor shall be liable for any', 44808:'additional cost incurred by the government. d if, after termination for failure to fulfill contract obligations, it is determined that', 44809:'the contractor had not failed, the rights and obligations of the parties shall be the same as if the termination', 44810:'had been issued for the convenience of the government. e the rights and remedies of the government provided in this', 44811:'clause are in addition to any other rights and remedies provided by law or under this contract. end of clause', 44812:'52.2498 default fixedprice supply and service. as prescribed in 49.504a1, insert the following clause: default fixedprice supply and service apr', 44813:'1984 a 1thegovernmentmay,subjecttoparagraphscanddofthisclause,bywrittennoticeofdefaulttothe contractor, terminate thiscontract in whole orin part if thecontractor fails to i deliver the supplies or to', 44814:'perform the services within the time specified in this contract or any extension; ii make progress, so as to endanger', 44815:'performance of this contract but see paragraph a2 of this clause; or iii perform any of the other provisions of', 44816:'this contract but see paragraph a2 of this clause. 52.2546 subpart 52.2 text of provisions and clauses 52.2498 2 the', 44817:'government’s right to terminate this contractunder subdivisions a1iiand1iii ofthis clause, may be exercised if the contractor does not cure such', 44818:'failure within 10 days or more if authorized in writing by the contracting officerafter receipt of the notice fromthe contracting', 44819:'officerspecifying the failure. b if the government terminates this contract in whole or in part, it may acquire, under the', 44820:'terms and in the manner the contracting officerconsiders appropriate, supplies or servicessimilarto those terminated, and the contractorwill be liable to', 44821:'the government for any excess costs for those supplies or services. however, the contractor shall continuethe work not terminated. c', 44822:'except for defaultsof subcontractors at any tier, the contractor shall not be liable for any excess costs if thefailureto perform', 44823:'the contractarises fromcauses beyond the control and without the fault or negligence of the contractor. examplesof suchcauses include1acts of god', 44824:'orof the public enemy, 2 actsof the government in either its sovereign orcontractual capacity,3fires, 4 floods, 5 epidemics, 6 quarantine', 44825:'restrictions, 7 strikes, 8 freightembargoes, and9unusually severeweather. in eachinstance thefailureto perform must be beyond the controland without the fault or', 44826:'negligence ofthe contractor. d if the failure toperformis caused by the default of a subcontractor at any tier, and if', 44827:'the cause of thedefaultis beyond thecontrol ofboth the contractor and subcontractor, and without the faultor negligence of either, thecontractor shall', 44828:'not be liable for any excess costs for failure to perform, unless the subcontracted supplies or services were obtainable from', 44829:'other sources in sufficient timeforthe contractor tomeet therequired delivery schedule. e if this contract is terminated for default, the government', 44830:'may require the contractor to transfer title and deliver to thegovernment,as directedby the contracting officer, any 1 completed supplies, and', 44831:'2 partiallycompleted supplies and materials, parts, tools, dies, jigs, fixtures, plans, drawings, information, and contract rights collectively referred to as', 44832:'manufacturing materials in this clause that the contractor has specifically produced or acquired for the terminated portion of this contract.', 44833:'upon direction of thecontracting officer,the contractor shall also protect and preservepropertyin its possession in which the government has an interest.', 44834:'f the government shall pay contract price for completed supplies delivered and accepted. the contractor and contracting officershallagreeon the amount', 44835:'of paymentformanufacturing materials delivered and accepted and for the protection andpreservation of theproperty. failure to agree willbe a dispute underthe', 44836:'disputes clause. the government may withhold from these amounts any sumthe contracting officerdeterminesto benecessary toprotect the government against loss because', 44837:'of outstanding liens or claims of former lien holders. g if, after termination, it is determined that the contractor was', 44838:'not in default, or that the default was excusable, the rights and obligations of the parties shall be the same', 44839:'as if the termination had been issued for the convenience of the government. h the rights and remedies of the', 44840:'government in this clause are in addition to any other rights and remedies provided by law or under this contract.', 44841:'end of clause alternate i apr 1984. if the contract is for transportation or transportationrelated services, delete paragraph f of', 44842:'thebasic clause, redesignate the remaining paragraphs accordingly, and substitute the following paragraphsa and e for paragraphs a and e of', 44843:'the basic clause: a1the government may,subject to paragraphs c and d of thisclause, by written notice of default to the', 44844:'contractor, terminate this contract in whole or in part if the contractor fails to i pick up the commodities or', 44845:'to perform the services, including delivery services, within the time specified in this contract or any extension; ii make progress,', 44846:'so as to endanger performance of this contract but see paragraph a2 of this clause; or iii perform any of', 44847:'the other provisions of this contract but see paragraph a2 of this clause. 2 the government’s right to terminate this', 44848:'contractunder subdivisions a1iiandiii of thisclause, may be exercised if the contractor does not cure such failure within 10 days or', 44849:'more if authorized in writing by the contracting officerafter receipt of the notice fromthe contracting officerspecifying the failure. e if', 44850:'this contract is terminated while the contractor has possession of government goods, the contractor shall, upon direction of thecontracting officer,protect', 44851:'andpreserve the goods until surrendered to the government orits agent. the contractor and contracting officershallagreeon payment for the preservation and', 44852:'protection of goods. failure toagreeon an amount will be a dispute under the disputes clause. 52.2547 52.2499 federal acquisition regulation', 44853:'52.2499default fixedprice research anddevelopment. as prescribed in 49.504b, insert the following clause: default fixedprice research and development apr 1984 a', 44854:'1thegovernmentmay,subjecttoparagraphscanddofthisclause,bywrittennoticeofdefaulttothe contractor, terminate thiscontract in whole orin part if thecontractor fails to i perform the work under the contract within', 44855:'the time specified in this contract or any extension; ii prosecute the work so as to endanger performance of this', 44856:'contract but see paragraph a2 of this clause; or iii perform any of the other provisions of this contract but', 44857:'see paragraph a2 of this clause. 2 the government’s right to terminate this contractunder subdivisions a1iiandiii of thisclause may be', 44858:'exercised if the contractor does not cure such failure within 10 days or more, if authorized in writing by the', 44859:'contracting officerafter receipt of the notice fromthe contracting officerspecifying the failure. b if the government terminates this contract in whole', 44860:'or in part, it may acquire, under the terms and in the manner thecontracting officer considers appropriate, work similar to', 44861:'the work terminated, and the contractor willbe liableto the government for any excess costs for the similar work. however,the contractor', 44862:'shall continue the work not terminated. c except for defaultsof subcontractors at any tier, the contractor shall not be liable', 44863:'for any excess costs if thefailureto perform the contractarises fromcauses beyond the control and without the fault or negligence of', 44864:'the contractor. examplesof suchcauses include1acts of god orof the public enemy, 2 actsof the government in either its sovereign orcontractual', 44865:'capacity,3fires, 4 floods, 5 epidemics, 6 quarantine restrictions, 7 strikes, 8 freightembargoes, and9unusually severeweather. in eachinstance thefailureto perform must be', 44866:'beyond the controland without the fault or negligence ofthe contractor. d if the failure toperformis caused by the default of', 44867:'a subcontractor at any tier, and if the cause of thedefaultis beyond thecontrol ofboth the contractor and subcontractor, and without', 44868:'the faultor negligence of either, thecontractor shall not be liable for any excess costs for failure to perform, unless the', 44869:'subcontracted supplies or services were obtainable from other sources in sufficient timeforthe contractor tomeet therequired delivery schedule or otherperformance requirements.', 44870:'e if this contract is terminated for default, the government may require the contractor to transfer title and deliver to', 44871:'the government, as directed by the contractingofficer, any 1 completed orpartiallycompleted work not previously delivered to,andaccepted by, thegovernment and 2', 44872:'other property, includingcontract rights, specifically produced or acquired for theterminated portion of this contract. upon direction ofthe contracting officer, thecontractor', 44873:'shall also protect and preserve property in its possession in which the government has an interest. f the government shall', 44874:'pay the contract price, if separately stated, for completed work it has accepted and the amount agreed upon by the', 44875:'contractor and the contracting officer for 1 completed work for which no separate priceis stated,2 partially completed work, 3 other', 44876:'property described above that it accepts, and 4 the protection and preservation of the property. failure to agree will be', 44877:'a disputeunder thedisputes clause. thegovernment may withhold fromthese amounts any sum the contracting officer determines to be necessary to protect', 44878:'the government against loss from outstandingliensor claims of former lien holders. g if, after termination, it is determined that the', 44879:'contractor was not in default, or that the default was excusable, the rights and obligations of the parties shall be', 44880:'the same as if the termination had been issued for the convenience of the government. h the rights and remedies', 44881:'of the government in this clause are in addition to any other rights and remedies provided by law or under', 44882:'this contract. end of clause 52.24910 default fixedprice construction. as prescribed in 49.504c1, insert the following clause: default fixedprice construction', 44883:'apr 1984 a if the contractor refuses or fails to prosecute the work or any separable part, with the diligence', 44884:'that will insure its completion within the time specified in this contract including any extension, or fails to complete the', 44885:'work within this time, thegovernment may, bywritten notice to the contractor, terminate the right to proceed with theworkorthe separable part', 44886:'of the work that has been delayed. in this event, the government may take over the work and complete it', 44887:'by contract or 52.2548 subpart 52.2 text of provisions and clauses 52.24910 otherwise, and may take possession of and use', 44888:'any materials, appliances, and plant on the work site necessary for completing thework. the contractorand its sureties shall beliable for', 44889:'any damage tothe government resulting from thecontractor’s refusal or failure to complete thework within the specified time,whetheror not thecontractor’s right', 44890:'to proceed with the work is terminated. this liability includes any increased costs incurred by the government in completing the', 44891:'work. b the contractor’s right toproceed shall not beterminated nor thecontractor charged with damages under this clause, if 1 the', 44892:'delay in completing the work arises from unforeseeable causes beyond the control and without the fault or negligence of the', 44893:'contractor. examples ofsuch causes include iacts of godor of thepublic enemy, iiacts of the government in either its sovereign or', 44894:'contractual capacity, iii acts of another contractor in the performance of a contract with the government, iv fires, v floods,', 44895:'vi epidemics, vii quarantine restrictions, viii strikes, ix freightembargoes, x unusually severe weather, or xi delays of subcontractors or suppliers', 44896:'at any tier arising from unforeseeable causes beyond the control and without the fault or negligence of both the contractor', 44897:'and the subcontractors or suppliers; and 2 the contractor, within 10 days from the beginning of any delayunless extendedby the', 44898:'contracting officer, notifiesthe contracting officerin writingof the causes ofdelay. the contracting officer shall ascertain the facts and theextent of delay.', 44899:'if, in the judgment of the contracting officer, the findings offact warrant suchaction,the time for completing the work shall be', 44900:'extended. the findings of the contracting officer shall be final and conclusiveon the parties, but subject to appeal under the', 44901:'disputes clause. c if,after termination ofthe contractor’srightto proceed, it is determined thatthe contractor was not in default, or that the', 44902:'delay was excusable, the rights and obligations of the parties will be the same as if the termination had been', 44903:'issued for the convenience of the government. d the rights and remedies of the government in this clause are in', 44904:'addition to any other rights and remedies provided by law or under this contract. end of clause alternate i apr', 44905:'1984. if the contract is for dismantling, demolition, or removal of improvements, substitute the following paragraph a for paragraph a', 44906:'of the basic clause: a1 if the contractor refuses or fails to prosecute the work, or any separable part, with', 44907:'the diligence that will insure its completion within the time specified in this contract, including any extension, or fails to', 44908:'complete the work within this time, thegovernment may, bywritten notice to the contractor, terminate the right to proceed with theworkor', 44909:'the partof the work that has been delayed. in this event, the government may take over the work and complete', 44910:'it by contract or otherwise, and may take possession of and use any materials, appliances, and plant on the work', 44911:'site necessary for completing the work. 2 if title to property is vested in the contractor under this contract, it', 44912:'shall revest in the government regardless of any other clause of this contract, except for property that the contractor has', 44913:'disposed of by bona fide sale or removed from the site. 3 the contractor and its sureties shall be liable', 44914:'for any damageto thegovernment resulting fromthe contractor’s refusal or failure to complete thework within the specified time,whetheror not thecontractor’s right', 44915:'to proceed with the work is terminated. this liability includes any increased costs incurred by the government in completing the', 44916:'work. alternate ii apr 1984. if the contract is to be awarded during a periodof national emergency, paragraphb1 below may', 44917:'be substituted for paragraph b1 of the basic clause: 1 the delay in completing the work arises from causes other', 44918:'than normal weather beyond the control and without the fault or negligence of the contractor. examples of such causes include', 44919:'iacts of godor of thepublic enemy, iiacts of the government in either its sovereign or contractual capacity, iii acts of', 44920:'another contractor in the performance of a contract with the government, 52.2549 52.24911 federal acquisition regulation iv fires, v floods,', 44921:'vi epidemics, vii quarantine restrictions, viii strikes, ix freightembargoes, x unusually severe weather, or xi delays of subcontractors or suppliers', 44922:'at any tier arising from causes other than normal weather beyond the control and without the fault or negligence of', 44923:'both the contractor and the subcontractors or suppliers; and alternate iii apr 1984. if the contract is for dismantling, demolition,', 44924:'or removal of improvements and is to be awarded during a period of national emergency, substitute the following paragraph a', 44925:'for paragraph a of the basicclause. the following paragraph b1 may be substituted for paragraph b1 of the basic clause:', 44926:'a1 if the contractor refuses or fails to prosecute the work, or any separable part, with the diligence that will', 44927:'insure its completion within the time specified in this contract, including any extension, or fails to complete the work within', 44928:'this time, thegovernment may, bywritten notice to the contractor, terminate the right to proceed with theworkor the partof the work', 44929:'that has been delayed. in this event, the government may take over the work and complete it by contract or', 44930:'otherwise, and may take possession of and use any materials, appliances, and plant on the work site necessary for completing', 44931:'the work. 2 if title to property is vested in the contractor under this contract, it shall revest in the', 44932:'government regardless of any other clause of this contract, except for property that the contractor has disposed of by bona', 44933:'fide sale or removed from the site. 3 the contractor and its sureties shall be liable for any damageto thegovernment', 44934:'resulting fromthe contractor’s refusal or failure to complete thework within the specified time,whetheror not thecontractor’s right to proceed with the', 44935:'work is terminated. this liability includes any increased costs incurred by the government in completing the work. b the contractor’s', 44936:'right toproceed shall not beterminated nor thecontractor charged with damages under this clause, if 1 the delay in completing the', 44937:'work arises from causes other than normal weather beyond the control and without the fault or negligence of the contractor.', 44938:'examples of such causes include iacts of godor of thepublic enemy, iiacts of the government in either its sovereign or', 44939:'contractual capacity, iii acts of another contractor in the performance of a contract with the government, iv fires, v floods,', 44940:'vi epidemics, vii quarantine restrictions, viii strikes, ix freightembargoes, x unusually severe weather, or xi delays of subcontractors or suppliers', 44941:'at any tier arising from causes other than normal weather beyond the control and without the fault or negligence of', 44942:'both the contractor and the subcontractors or suppliers; and 52.24911 [reserved] 52.24912 termination personalservices. as prescribed in 49.505a, insert the', 44943:'following clause in solicitations and contracts for personal services see part 37: termination personal services apr 1984 the government mayterminatethis', 44944:'contractat any time uponat least 15 days’ written notice by thecontracting officer to thecontractor. the contractor, with thewritten consent ofthe', 44945:'contracting officer, may terminate this contract upon atleast 15 days’ written notice to the contracting officer. end of clause 52.2550', 44946:'subpart 52.2 text of provisions and clauses 52.24914 52.24913 [reserved] 52.24914 excusable delays. as prescribed in 49.505b, insert the following', 44947:'clause in solicitations and contracts for supplies, services, construction, and research and development on a fee basis whenever a costreimbursement', 44948:'contract is contemplated. also insert the clause in timeandmaterial contracts, and laborhour contracts. when used in construction contracts, substitute the', 44949:'words completion time for delivery schedule in the last sentence of the clause. excusable delays apr 1984 a except for', 44950:'defaultsof subcontractors at any tier, the contractor shall not be in default because of any failure to perform this contract', 44951:'under its terms if the failure arises from causes beyond the control and without the fault or negligence of the', 44952:'contractor. examples ofthese causes are 1 acts of godor of thepublicenemy, 2 acts of the government in eitherits sovereign or', 44953:'contractual capacity, 3 fires,4floods, 5 epidemics,6quarantine restrictions, 7 strikes, 8 freight embargoes, and 9 unusually severe weather. in each instance,', 44954:'the failure toperformmust be beyond the control and without the fault or negligence of thecontractor. default includes failure to make', 44955:'progress inthe work so as to endanger performance. b if the failure to perform is caused by the failure of', 44956:'a subcontractor at any tier to perform or make progress, and if the cause of thefailurewas beyond the control of', 44957:'both the contractorand subcontractor, and withoutthe fault ornegligence of either, the contractor shall not be deemedto bein default,unless 1 the', 44958:'subcontracted supplies or services were obtainable from other sources; 2 the contracting officer ordered thecontractor in writing to purchasethese supplies', 44959:'or services from theother source; and 3 the contractor failed to complyreasonably with this order. c upon requestof the contractor,', 44960:'the contracting officer shall ascertain the factsand extent of thefailure. if the contracting officerdeterminesthat any failure to perform results from', 44961:'one or more of the causes above, the delivery schedule shall be revised, subject to the rights of the government', 44962:'under the termination clause of this contract. end of clause 52.2551 this page intentionally left blank. 52.2552 subpart 52.2 text', 44963:'of provisions and clauses 52.2501 52.250[reserved] 52.2501 indemnification under public law85804. as prescribed in 50.1044, insert the following clause: indemnification', 44964:'under public law 85804 apr 1984 a contractor’s principalofficials, asused inthis clause, means directors, officers, managers, superintendents, or other representatives', 44965:'supervising or directing 1 all orsubstantially all of the contractor’s business; 2 all orsubstantially all of the contractor’s operations at', 44966:'any one plant or separate location in which this contractis being performed; or 3 a separate and complete major industrial', 44967:'operation in connection with the performance of this contract. b under public law85804 50 u.s.c. 14311435 and executive order10789, as', 44968:'amended, and regardless of any other provisions of this contract, the government shall, subject to the limitations contained in the', 44969:'other paragraphs of this clause, indemnify the contractor against 1 claims including reasonable expenses of litigation or settlement by third', 44970:'persons including employees of the contractor for death; personal injury; or loss of, damage to, or loss of use of', 44971:'property; 2 loss of, damage to, or loss of use of contractor property, excluding loss ofprofit;and 3 loss of, damage', 44972:'to, or loss of use of governmentproperty, excluding lossof profit. c this indemnification applies only to the extent that the', 44973:'claim, loss, or damage 1 arises out of or results from a risk defined in this contract as unusually hazardous', 44974:'or nuclear and 2is not compensated for by insurance or otherwise. any such claim,loss, or damage,to theextent that it is', 44975:'within the deductible amounts ofthe contractor’sinsurance, isnot covered underthis clause. ifinsurance coverage or other financial protection in effect onthe date', 44976:'the approvingofficial authorizes use of this clause isreduced, the government’s liability under this clause shall not increase asa result. d', 44977:'when the claim, loss, or damage is caused by willful misconduct or lack of good faith on the part of', 44978:'any of the contractor’sprincipal officials, thecontractor shall not be indemnified for 1 government claims against the contractor other than those', 44979:'arising through subrogation; or 2 loss ordamage affecting the contractor’s property. e with the contractingofficer’s prior written approval, the contractormay,', 44980:'in any subcontractunder this contract, indemnify the subcontractor against any risk definedin this contract as unusually hazardous ornuclear. this indemnification', 44981:'shall provide, between the contractor and the subcontractor, the same rightsand duties, and the sameprovisionsfornotice, furnishing of evidence or proof,', 44982:'and government settlement or defense of claims as this clause provides. the contracting officer may also approve indemnification of subcontractors', 44983:'at any lower tier, under the same termsandconditions. the government shall indemnify the contractor against liability to subcontractors incurred under', 44984:'subcontract provisions approved by the contractingofficer. f the rights and obligations of theparties under this clauseshallsurvivethis contract’s termination, expiration,or completion.', 44985:'the government shall make no payment under this clause unless the agency head determines that the amount is just and', 44986:'reasonable. the government may pay the contractor or subcontractors, or may directly pay parties to whom the contractor or subcontractors', 44987:'may be liable. g the contractor shall 1 promptly notify the contracting officer of any claimor action against, or any', 44988:'loss by, the contractor or any subcontractors that may be reasonably be expected to involve indemnification under this clause; 2', 44989:'immediately furnish to the government copies of all pertinent papers the contractor receives; 3 furnish evidence or proof of any', 44990:'claim, loss, or damage covered by this clause in the manner and form the government requires; and 4 comply with', 44991:'thegovernment’s directions and execute any authorizations required in connection withsettlement or defense of claims or actions. h the government may', 44992:'direct, control, or assist in settling or defending any claim or action that may involve indemnification under this clause. end', 44993:'of clause 52.2553 52.2502 federal acquisition regulation alternate i apr 1984. in costreimbursement contracts, add the following paragraph i to', 44994:'the basic clause: i the cost of insurance including selfinsurance programs covering a risk defined in this contract as unusually', 44995:'hazardousor nuclearshallnot be reimbursedexceptto the extent that the contracting officer has requiredor approvedthis insurance. the government’s obligationsunder this clause are', 44996:'1 exceptedfrom the releaserequired under this contract’s clauserelatingto allowablecost;and 2 not affected by this contract’s limitation of costor limitation of', 44997:'funds clause. 52.2502 safety act coverage not applicable. as prescribed in 50.206a, insert the following provision: safety act coverage not', 44998:'applicable feb 2009 the government has determined that for purposes of this solicitation the products or services being acquired by', 44999:'this action are neither presumptively nor actually entitled to a predetermination that the products or services are qualified anti terrorism', 45000:'technologies as that term is definedby the support antiterrorism by fostering effectivetechnologies act of 2002 safety act, 6 u.s.c. 441444.', 45001:'this determination does not prevent sellers of technologies from applying for safety act protections in other contexts. proposals in which', 45002:'either acceptance or pricing is made contingent upon safety act designation as a qualified antiterrorism technology or safety act certification', 45003:'as an approved product for homeland security of the proposed product or service will not be considered for award. see', 45004:'federal acquisition regulation subpart 50.2. end of provision 52.2503 safety act block designation/certification. as prescribed in 50.206b1, insert the following', 45005:'provision: safety act block designation/certification feb 2009 a definitions. as used in this provision act of terrorism means any act', 45006:'determined to have met the following requirements or such other requirements as defined and specified by the secretary of homeland', 45007:'security: 1 is unlawful. 2 causes harm,including financial harm,to a person,property, or entity, in the united states, or in the', 45008:'case of a domestic united states air carrier or a united statesflag vessel or a vessel based principally in the', 45009:'united states on which united states income tax is paid and whose insurance coverage is subject to regulation in the', 45010:'united states, in or outside the united states. 3 uses or attempts to use instrumentalities, weapons or other methods designed', 45011:'or intended to cause mass destruction, injury or other loss to citizens or institutions of the united states. block certification', 45012:'means safety act certification of a technology class that the department of homeland security dhs has determined to be anapproved', 45013:'class of approved productsforhomeland security. block designation means safety act designation of a technology class that the dhs has determined', 45014:'to be a qualified antiterrorism technology qatt. qualified antiterrorism technology qatt means any technology designed, developed, modified, procured, or sold', 45015:'for the purpose of preventing, detecting, identifying, or deterring acts of terrorism or limiting the harm such acts might otherwise', 45016:'cause,forwhich a safety act designation has been issued. for purposes of defining a qatt, technologymeans any product, equipment, service including', 45017:'support services, device, or technology including information technology or any combination of the foregoing. design services, consulting services, engineering services,', 45018:'software development services, software integration services, threat assessments, vulnerability studies, and other analyses relevant to homeland security may bedeemed a', 45019:'technology. safety act certification means a determination by dhs pursuant to 6 u.s.c. 442d, as further delineated in 6 cfr', 45020:'25.9, that a qatt for which a safety act designation has been issued isan approved product for homeland security, i.e.,', 45021:'it will perform as intended, conforms to the seller’s specifications, and issafe for use as intended. 52.2554 subpart 52.2 text', 45022:'of provisions and clauses 52.2503 safety act designation means a determination by dhs pursuant to 6 u.s.c. 441b and 6', 45023:'u.s.c. 443a, as further delineated in 6 cfr 25.4,that a particularantiterrorism technology constitutes a qatt under the safety act. b', 45024:'the support antiterrorism by fostering effectivetechnologies act of 2002 safety act, 6 u.s.c. 441444, creates certain liabilitylimitations for claims arising', 45025:'out of, relating to,or resulting from an act of terrorism where qatts have been deployed. it also confers other important', 45026:'benefits. safety act designation and safety act certification are designed tosupport effectivetechnologies aimed at preventing, detecting,identifying,or deterring acts ofterrorism, or', 45027:'limiting the harm that such acts might otherwise cause, and which also meet other prescribed criteria. for some classes of', 45028:'technologies, dhs may issue a block designation/certification in order to lessen the burdens for filing for safety act designation or', 45029:'safety act certifications by not requiring applicants to provide certain information otherwise required and in order to offer expeditedreview of', 45030:'any application submitted pursuantto a block designation/certification. block designations/certifications will be issued only for technologies that rely on established performance', 45031:'standards or defined technical characteristics. c 1 dhs has issued a block designation or block certification for the technology to', 45032:'be acquired under this solicitation. 2 this block designation or block certification is attached to this solicitation and contains essential', 45033:'information, including i a detailed description of and specification for the technology covered by the block designation or block certification;', 45034:'ii a listing of those portions of the safety act application kit that must be completed and submitted by applicants;', 45035:'iii the date of its expiration; and iv any other terms and conditions. 3 offerorsshouldread this blockdesignation orblock certification carefully', 45036:'to make sure they comply withits terms if they plan to take advantage of safety act coverage for their technologyies.', 45037:'d all determinations by dhs are based on factors set forth in the safety act and its implementing regulations. a', 45038:'determination by dhs to issue a safety act designation, or not to issue a safety act designation for a particular', 45039:'technology as a qattis not a determination thatthe technology meets,or fails tomeet, the requirements of any solicitation issued by any', 45040:'federal, state, local or tribal governments. determinations by dhs with respect to whether to issue a safety act designation for', 45041:'technologies submitted for dhs review are based on the factors identified in 6 cfr 25.4b. e neither safety act designation', 45042:'nor certification is in any way a requirement of this action. whether to seek thebenefits of the safety act for', 45043:'a proposed product or service isentirelyup to the offeror. additionalinformation about the safety act and this block designation/certification may be', 45044:'found at the safety act website at http:// www.safetyact.gov or requests may be mailed to: directorate of science and technology', 45045:'safety act/room 4320department ofhomeland securitywashington, dc 20528 f proposals inwhich pricingor any other termsor conditionsare offered contingent upon safety act', 45046:'designationor safety act certification of the proposed products or services will not be considered for award. end of provision alternate', 45047:'i feb 2009. as prescribed in 50.206b2, substitute the following paragraph f: f1 offerors are authorized to submitproposalsmade contingent upon', 45048:'safety act designationorsafety act certification, if a block certification exists before award. when anoffer is made contingent upon safety act', 45049:'designation or certification, the offeror also may submitan alternate offer withoutthe contingency. 2 if an offer is submittedcontingent upon receipt', 45050:'of safety act designation or safety act certification, ifa block certification exists prior to contract award, then the government may', 45051:'not award a contract based on such offerunlessthe offeror demonstrates priorto award that dhs has issued a safetyactdesignation or safety', 45052:'act certification, if a block certification exists for theofferor’s technology. 3 the government reserves therightto award the contract based on', 45053:'a noncontingent offer, prior to dhs resolution of the offeror’s application for safety act designation or safetyactcertification, if ablock certification', 45054:'exists. alternate ii feb 2009. as prescribed in 50.206b3, substitute the following paragraph f: f1 offerors are authorized to submitoffers', 45055:'presumingthat safetyactdesignation or safety act certification, if a block certification exists will be obtained before or after award. 2 an', 45056:'offeror is eligible for award only if the offeror52.2 555 52.2504 federal acquisition regulation i files a safety act designation', 45057:'or safety act certification application, limited to the scope of the applicable block designation or block certification, within 15 days', 45058:'after submission of the proposal; ii pursues its safety act designation or safety act certification application in good faith; and', 45059:'iii agrees to obtain the amount of insurance dhsrequiresforissuing the offeror’s safetyactdesignation or safety act certification. 3 if dhs has', 45060:'not issued a safety act designation or safety act certification tothe successful offerorbefore contract award, thecontracting officer will include theclause', 45061:'at 52.2505 in the resulting contract. 52.2504safety actprequalification designation notice. as prescribed in 50.206c1, insert the following provision: safety act', 45062:'prequalification designation notice feb 2009 a definitions. as used in this provision act of terrorism means any act determined to', 45063:'have met the following requirements or such other requirements as defined and specified by the secretary of homeland security: 1', 45064:'is unlawful. 2 causes harm,including financial harm,to a person,property, or entity, in the united states, or in the case of', 45065:'a domestic united states air carrier or a united statesflag vessel or a vessel based principally in the united states', 45066:'on which united states income tax is paid and whose insurance coverage is subject to regulation in the united states,', 45067:'in or outside the united states. 3 uses or attempts to use instrumentalities, weapons or other methods designed or intended', 45068:'to cause mass destruction, injury or other loss to citizens or institutions of the united states. block certification means safety', 45069:'act certification of a technology class that the department of homeland security dhs has determined to be anapproved class of', 45070:'approved productsforhomeland security. block designation means safety act designation of a technology class that the dhs has determined to be', 45071:'a qualified antiterrorism technology qatt. prequalification designation notice means a notice in a procurement solicitation or other publication by the', 45072:'government stating that the technology to be procuredeither affirmativelyor presumptively satisfies the technicalcriteria necessary to be deemed aqualified antiterrorism technology.', 45073:'a prequalificationdesignation notice authorizes offerors to submit streamlined safety act applications for safety act designation and receive expedited processing of', 45074:'those applications. qualified antiterrorism technology qatt means any technology designed, developed, modified, procured, or sold for the purpose of preventing,', 45075:'detecting, identifying, or deterring acts of terrorism or limiting the harm such acts might otherwise cause,forwhich a safety act designation', 45076:'has been issued. for purposes of defining a qatt, technologymeans any product, equipment, service including support services, device, or technology', 45077:'including information technology or any combination of the foregoing. design services, consulting services, engineering services, software development services, software integration', 45078:'services, threat assessments, vulnerability studies, and other analyses relevant to homeland security may bedeemed a technology. safety act certification means', 45079:'a determination by dhs pursuant to 6 u.s.c. 442d, as further delineated in 6 cfr 25.9, that a qatt for', 45080:'which a safety act designation has been issued isan approved product for homeland security,i.e., it will perform as intended, conforms', 45081:'to the seller’s specifications, and issafe for use as intended. safety act designation means a determination by dhs pursuant to', 45082:'6 u.s.c. 441b and 6 u.s.c. 443a, as further delineated in 6 cfr 25.4,that a particularantiterrorism technology constitutes a qatt', 45083:'under the safety act. b the support antiterrorism by fostering effectivetechnologies act of 2002 safety act, 6 u.s.c. 441444, creates', 45084:'certain liabilitylimitations for claims arising out of, relating to,or resulting from an act of terrorism where qatts have been deployed.', 45085:'it also confers other important benefits. safety act designation and safety act certification are designed tosupport effectivetechnologies aimed at preventing,', 45086:'detecting,identifying,or deterring acts ofterrorism, or limiting the harm that such acts might otherwise cause, and which also meet other prescribed', 45087:'criteria. c 1 dhs has issued a safety act prequalification designation notice for the technology to be acquired under this', 45088:'solicitation. 2 this notice is attached to this solicitation and contains essential information, including i a detailed description of and', 45089:'specification for the technology covered by the notice; 52.2556 subpart 52.2 text of provisions and clauses 52.2505 ii a statement', 45090:'that the technology described and specified in the notice satisfies the technical criteria to be deemed a qattandthe offeror’s proposedtechnology', 45091:'either may presumptively or willqualify for the issuanceof adesignation provided theofferor complies with terms and conditions in the notice and', 45092:'itsapplication isapproved; iii the period of time within which dhs will take action upon submission of a safety act application', 45093:'submitted pursuant to the notice; iv a listing of those portions of the application that must be completed and submitted', 45094:'by selected awardees and the time periods for such submissions; v the date of expiration of the notice; and vi', 45095:'any other terms and conditions concerning the notice. 3 offerorsshouldread this notice carefullyto make sure they complywith the termsof the', 45096:'noticeif they planon taking advantage of safety act coverage for their technologies. d all determinations by dhs are based on', 45097:'factors set forth in the safety act and its implementing regulations. a determination by dhs to issue a safety act', 45098:'designation, or not to issue a safety act designation for a particular technology as a qattis not a determination thatthe', 45099:'technology meets,or fails tomeet, the requirements of any solicitation issued by any federal, state, local or tribal governments. determinations by', 45100:'dhs with respect to whether to issue a safety act designation for technologies submittedfordhs review are based on the factors', 45101:'identified in6 cfr 25.4b. e neither safety act designation nor certification is in any way a requirement of this action.', 45102:'whether to seek the benefits of the safety act for a proposed product or service is entirely up to the', 45103:'offeror. additional information about the safety act may be found at the safety act website at http://www.safetyact.gov. f proposals inwhich', 45104:'pricingor any other termsor conditionsare offered contingent upon safety act designationor certification of the proposed products or services will not', 45105:'be considered for award. end of provision alternate i feb 2009. as prescribed in 50.206c2, substitute the following paragraph f:', 45106:'f1 offerors are authorized to submitproposalsmade contingent upon safety act designationbefore award. when anoffer is made contingent upon safety act', 45107:'designation, the offeror also may submitan alternate offer withoutthe contingency. 2 if an offer is submittedcontingent upon receipt of safety', 45108:'act designation priorto contract award, then the government may notaward acontract based on suchoffer unless the offeror demonstrates priorto award', 45109:'that dhshas issued a safety act designation for theofferor’s technology. 3 the government reserves therightto award the contract based on', 45110:'a noncontingent offer, prior to dhs resolution of theofferor’s application for safety act designation. alternate ii feb 2009. as prescribed', 45111:'in 50.206c3, substitute the following paragraph f: f1 offerors are authorized to submitproposalspresuming safetyactdesignation before or after award. 2 an', 45112:'offeror is eligible for award only if the offeror i files a safety act designation application, limited to the scope', 45113:'of the applicable prequalification designation notice, within 15 days after submission of the proposal; ii pursues its safety act designation', 45114:'application in good faith; and iii agrees to obtain the amount of insurance dhsrequiresforissuing the offeror’s safetyactdesignation. 3 if dhs', 45115:'has not issued a safety act designation tothe successful offerorbefore contract award, thecontracting officer willinclude the clauseat 52.2505 in the', 45116:'resulting contract. 52.2505 safety actequitable adjustment. as prescribed in 50.206d, insert the following clause: safety actequitable adjustment feb 2009 a', 45117:'definitions. as used in this clause act of terrorism means any act determined to have met the following requirements or', 45118:'such other requirements as defined and specified by the secretary of homeland security: 1 is unlawful. 52.2557 52.2505 federal acquisition', 45119:'regulation 2 causes harm,including financial harm,to a person,property, or entity, in the united states, or in the case of a', 45120:'domestic united states air carrier or a united statesflag vessel or a vessel based principally in the united states on', 45121:'which united states income tax is paid and whose insurance coverage is subject to regulation in the united states, in', 45122:'or outside the united states. 3 uses or attempts to use instrumentalities, weapons or other methods designed or intended to', 45123:'cause mass destruction, injury or other loss to citizens or institutions of the united states. block certification means safety act', 45124:'certification of a technology class that the department of homeland security dhs has determined to be anapproved class of approved', 45125:'productsforhomeland security. block designation means safety act designation of a technology class that the dhs has determined to be a', 45126:'qualified antiterrorism technology qatt. qualified antiterrorism technology qatt means any technology designed, developed, modified, procured, or sold for the purpose', 45127:'of preventing, detecting, identifying, or deterring acts of terrorism or limiting the harm such acts might otherwise cause,forwhich a safety', 45128:'act designation has been issued. for purposes of defining a qatt, technologymeans any product, equipment, service including support services, device,', 45129:'or technology including information technology or any combination of the foregoing. design services, consulting services, engineering services, software development services,', 45130:'software integration services, threat assessments, vulnerability studies, and other analyses relevant to homeland security may bedeemed a technology. safety act', 45131:'certification means a determination by dhs pursuant to 6 u.s.c. 442d, as further delineated in 6 cfr 25.9, that a', 45132:'qatt for which a safety act designation has been issued isan approved product for homeland security, i.e., it will perform', 45133:'as intended, conforms to the sellers specifications, and is safe for use as intended. safety act designation means a determination', 45134:'by dhs pursuant to 6 u.s.c. 441b and 6 u.s.c. 443a, as further delineated in 6 cfr 25.4,that a particularantiterrorism', 45135:'technology constitutes a qatt under the safety act. b prices for the items covered by the prequalification designation notice, block', 45136:'designation, or block certification in the contract were established presuming dhs will issue a safety act designation or safety act', 45137:'certification for those items. c in order to qualify for an equitable adjustment in accordance with paragraph d of this', 45138:'clause the contractor shall in good faith pursue obtaining 1 safety act designation or safety act certification; and 2 the', 45139:'amount of insurance dhs requires for issuing any safety act designation or safety act certification. d 1 if dhs denies', 45140:'the contractor’s safety act designation or certification application, the contractor may submit a request for anequitable adjustment within 30 days', 45141:'of dhs’s notificationof denial. 2 the contracting officer shall either i make an equitable adjustment to the contract price based', 45142:'on evidence of the resulting increase or decrease in the contractor’scosts and/oran equitable adjustment to other terms and conditions based', 45143:'onlack of safety act designation or certification; or ii at the sole option of the government, terminate this contract for', 45144:'the convenience of the government in place of an equitable adjustment. 3 a failure of the parties to agree on', 45145:'the equitable adjustment will be considered to be a dispute in accordance with the disputes clause of this contract. 4', 45146:'unless first terminated, the contractor shall continue contract performance during establishment of any equitable adjustment. end of clause 52.2558 subpart', 45147:'52.2 text of provisions and clauses 52.2512 52.251[reserved] 52.2511government supply sources. as prescribed in 51.107, insert the following clause: government', 45148:'supply sources apr 2012 the contracting officer may issue the contractor an authorization to usegovernmentsupplysources in the performance of this', 45149:'contract. title toallpropertyacquired by thecontractor under such an authorization shall vest in the government unless otherwisespecified in the contract. the', 45150:'provisions of theclause at far 52.2451, government property, apply to all property acquired under such authorization end of clause 52.2512interagency', 45151:'fleet management systemvehicles and relatedservices. as prescribed in 51.205, insert the following clause: interagency fleet management system vehicles and related', 45152:'services jan 1991 the contracting officer may issue the contractor an authorization to obtaininteragency fleet management system ifms vehicles and', 45153:'related services for use in the performance of this contract. the use, service, and maintenance of interagency fleet management system', 45154:'vehicles and the use of related services by the contractor shall be in accordance with 41 cfr 10139 and 41', 45155:'cfr 10138.3011. end of clause 52.2559 this page intentionally left blank. 52.2560 subpart 52.2 text of provisions and clauses 52.2524', 45156:'52.252[reserved] 52.2521solicitation provisions incorporated by reference. as prescribed in 52.107a, insert the following provision: solicitation provisions incorporated by reference feb', 45157:'1998 this solicitationincorporates one or more solicitation provisionsby reference, with the same force and effect as ifthey were givenin fulltext.', 45158:'upon request, thecontracting officer will make their full text available. the offeror is cautioned that the listed provisions may include', 45159:'blocks that must be completed by the offeror and submitted with its quotation or offer. in lieu of submitting the', 45160:'full text of thoseprovisions, the offeror mayidentify the provision by paragraph identifier and provide the appropriate information withits quotation oroffer.', 45161:'also, the full text of a solicitation provisionmay be accessed electronically at this/these addresses: [insert one or more internet addresses]', 45162:'end of provision 52.2522clauses incorporated by reference. as prescribed in 52.107b, insert the following clause: clauses incorporated by reference feb', 45163:'1998 this contract incorporates one or more clausesby reference, with the same force and effectas if theywere given infull text.', 45164:'uponrequest,the contracting officerwill make their full text available. also, the full text of a clause maybe accessed electronically at this/these', 45165:'addresses: [insert one or more internet addresses] end of clause 52.2523 alterations in solicitation. as prescribed in 52.107c,insertthefollowingprovisioninsolicitationsinordertoreviseorsupplement,asnecessary, other parts', 45166:'of the solicitation thatapply to thesolicitation phaseonly, except for any provisionauthorized for usewith a deviation. include clear identification of what', 45167:'is being altered. alterations in solicitation apr 1984 portions of this solicitation are altered as follows: end of clause 52.2524', 45168:'alterations in contract. as prescribed in 52.107d, insert the following clause in solicitations and contracts in order to revise or', 45169:'supplement, as necessary, other parts of thecontract, or parts of the solicitation that apply after contract award, except for any', 45170:'clause authorized for use with a deviation. include clear identification of what is being altered. alterations in contract apr 1984', 45171:'portions of this contract are altered as follows: 52.2561 52.2525 federal acquisition regulation end of clause 52.2525authorized deviations inprovisions. as', 45172:'prescribed in 52.107e,insertthefollowingprovisioninsolicitationsthatincludeanyfarorsupplemental provisionwith an authorized deviation. whenever any far or supplemental provisionis used with anauthorized deviation, thecontracting officer shall', 45173:'identify it by the same number, title, and date assigned tothe provisionwhen it is used without deviation, includeregulation name for', 45174:'any supplemental provision, except that the contracting officershallinsert deviation afterthe date of the provision. authorized deviations in provisions nov 2020', 45175:'a the use in this solicitation of any federal acquisition regulation 48 cfr chapter 1 provision with an authorized deviation', 45176:'is indicated by theaddition of deviation after the date of theprovision. b the use in this solicitation of any [insert', 45177:'regulation name]48 cfr chapter provision with anauthorized deviation isindicated bythe addition of deviation after the name of the regulation. end', 45178:'of provision 52.2526 authorized deviations in clauses. as prescribed in 52.107f,insertthefollowingclauseinsolicitationsandcontractsthatincludeanyfaror supplemental clausewith an authorized deviation. whenever any far or', 45179:'supplemental clause is usedwith an authorized deviation,the contracting officer shall identify it by the same number, title, and date assigned', 45180:'to theclause whenitis used without deviation, includeregulation name for any supplemental clause, except that the contracting officer shall insert deviation', 45181:'afterthe date of the clause. authorized deviations in clauses nov 2020 a the use in this solicitation or contract of', 45182:'any federal acquisition regulation 48 cfr chapter 1 clause with an authorized deviation is indicated by the addition of deviation', 45183:'after thedate of the clause. b the use in this solicitation or contract of any [insert regulation name] 48 cfr', 45184:'clause with an authorized deviation is indicated by the addition of deviation after thenameof the regulation. end of clause 52.2562', 45185:'subpart 52.2 text of provisions and clauses 52.2531 52.253[reserved] 52.2531 computer generated forms. asprescribed in far 53.111 , insert the', 45186:'following clause: computer generated forms jan 1991 a any data required to be submitted on a standard or optional form', 45187:'prescribed by the federal acquisition regulation far may be submitted on a computer generatedversionof the form, provided there is no', 45188:'change to the name, content, or sequence of the data elements on the form, and provided the form carries the', 45189:'standard or optional form number and edition date. b unless prohibited by agency regulations, any data required to be submitted', 45190:'on an agency unique form prescribed by an agency supplement to the far may be submitted on a computer generated', 45191:'version ofthe form provided there is no change to the name, content, or sequence of the data elements on the', 45192:'form and provided the form carries the agency form number and edition date. c if the contractor submits a computer', 45193:'generated version ofa form thatis different than therequired form, thenthe rights and obligations of the parties will be determined based', 45194:'on the content of the required form. end of clause 52.2563 this page intentionally left blank. 52.2564 part 53 forms', 45195:'sec. 53.000 scope of part. 53.001 definitions. subpart 53.1 general 53.100 scope of subpart. 53.101 requirements for use of forms.', 45196:'53.102 current editions. 53.103 exceptions. 53.104 overprinting. 53.105 computer generation. 53.106 special construction and printing. 53.107 obtaining forms. 53.108 recommendations', 45197:'concerning forms. 53.109 forms prescribed by other regulations. 53.110 continuation sheets. 53.111 contract clause. subpart 53.2 prescription of forms 53.200', 45198:'scope of subpart. 53.201 federal acquisition system. 53.2011 contracting authority and responsibilities sf 1402. 53.202 [reserved] 53.203 [reserved] 53.204 administrative', 45199:'matters. 53.2041 safeguarding classified information within industry ddform254, ddform441. 53.2042 [reserved] 53.205 publicizing contract actions. 53.2051 paid advertisements. 53.206 [reserved]', 45200:'53.207 [reserved] 53.208 [reserved] 53.209 contractor qualifications. 53.2091 responsible prospective contractors. 53.210 [reserved] 53.211 [reserved] 53.212 acquisition of commercial products', 45201:'and commercial services. 53.213 simplifiedacquisitionproceduressf’s18, 30, 44, 1165, 1449, and of’s 336, 347, and 348. 53.214 sealed bidding. 53.215 contracting', 45202:'by negotiation. 53.2151 solicitation and receipt of proposals. 53.216 types of contracts. 53.2161 delivery orders and orders under basic ordering', 45203:'agreements of 347. 53.217 [reserved] 53.218 [reserved] 53.219 small business programs. 53.220 [reserved] 53.221 [reserved] 53.222 application of labor laws', 45204:'to government acquisitionssf’s 308, 1413, 1444, 1445, 1446, wh347. 53.223 [reserved] 53.224 [reserved] 53.225 [reserved] 53.226 [reserved] 53.227 [reserved] 53.228', 45205:'bonds and insurance. 53.229 taxes sf’s 1094, 1094a. 53.230 [reserved] 53.231 [reserved] 53.232 contract financing sf 1443. 53.233 [reserved] 53.234', 45206:'[reserved] 53.235 research and development contracting sf 298. 53.236 construction and architectengineer contracts. 53.2361 construction. 53.2362 architectengineerservicessf’s252and 330. 53.237 [reserved]', 45207:'53.238 [reserved] 53.239 [reserved] 53.240 [reserved] 53.241 [reserved] 53.242 contract administration. 53.2421 novation and changeofname agreements sf 30. 53.243 contract', 45208:'modifications sf 30. 53.244 [reserved] 53.245 government property. 53.246 [reserved] 53.247 transportation u.s. commercial bill of lading. 53.248 [reserved] 53.249', 45209:'terminationofcontracts. 53.250 [reserved] 53.251 contractor use of government supply sources of 347. subpart 53.3 forms used in acquisitions 53.300 listing', 45210:'of standard, optional, and agency forms. this page intentionally left blank. subpart 53.1 general 53.106 53.000scope of part. this part—', 45211:'a prescribes standard forms sf’s and references optionalforms of’s and agencyprescribed forms for use in acquisition; and b contains requirements', 45212:'and information generally applicable to the forms. 53.001definitions. exception, as used in this part, means an approved departure from the', 45213:'established design, content, printing specifications, or conditions for use of any standard form. subpart 53.1 general 53.100scope of subpart. this', 45214:'subpart contains requirements and information generally applicable to the forms prescribed in this regulation. 53.101 requirements for useof forms. the', 45215:'requirements for use of the forms prescribed or referenced in this part are contained in parts 1through 52, where the', 45216:'subject matter applicable to each form is addressed. the specific location of each requirement is identified in subpart 53.2 .', 45217:'53.102 current editions. the form prescriptions in subpart 53.2andthefarformslocatedat https://www.gsa.gov/forms contain current edition dates. contractingofficers shall use thecurrent editionsunlessotherwise authorized', 45218:'under this regulation. 53.103exceptions. agencies shall not a alter a standard form prescribed by this regulation; or b use for', 45219:'the same purpose any form other than the standard form prescribed by this regulation without receiving in advance an exception', 45220:'to the form. 53.104overprinting. standard and optional forms obtained as required by 53.107 may be overprinted with names, addresses, and', 45221:'other uniform entries thatare consistent withthe purposeof the form and that do not alter the form inany way. exception approval', 45222:'for overprinting is not needed. 53.105computer generation. a the forms prescribed by this part may be computer generated without exception', 45223:'approval see 53.103, provided 1 there is no change to the name, content, or sequence of the data elements, and', 45224:'the form carries the standard or optional form number and edition date see 53.111; or 2 the form is in', 45225:'an electronic format covered by the american national standards institute ansi x12 standards published by the accredited standards committee x12', 45226:'on electronic data interchange or a format that can be translated into one of those standards. b the standards listed', 45227:'in paragraph a2 of this section may also be used for submission of data set forth in other parts for', 45228:'which specific forms have not been prescribed. 53.106special construction and printing. contracting offices may request exceptions see 53.103 to standard', 45229:'forms for special construction and printing. examples of common exceptions are as follows: standard forms special construction and printing a', 45230:'sf 181 with vertical lines omitted for listing of supplies and services, unit, etc. ; federal acquisition regulation 2 as', 45231:'reproducible masters; and/or 3 in carbon interleaved pads or sets. b sf’s 26, 30, 33, 1447as diecut stencils or reproducible', 45232:'masters. c sf 44 1 with serial numbers and contracting office name and address; and/ or 2 on special weight', 45233:'of paper and with the type of construction, number of sets per book, 2 and number of parts per set', 45234:'as specified by the contracting officer. executive agencies may supplement the administrative instructions on the inside front cover of the', 45235:'book. d sf 1442 1 as diecut stencils or reproducible masters; and/or 2 with additional wording as required by the', 45236:'executive agency. however, the sequence and wording of the items appearing on the prescribed form should not be altered. 53.107obtaining', 45237:'forms. executive agencies shall obtain standard and optional forms from the general services administration gsa forms library at https://www.gsa.gov/forms .agencyformsareavailablefromtheprescribingagency.', 45238:'53.108recommendations concerning forms. users of this regulation may recommend new forms or the revision, elimination, or consolidation of the forms', 45239:'prescribed or referenced in this regulation. recommendations from within an executive agency shall be submitted to the cognizant council in', 45240:'accordance with agency procedures. recommendations from other than executive agencies should be submitted directly to the far secretariat. 53.109 forms', 45241:'prescribedby other regulations. certain forms referred to in subpart 53.2areprescribedinotherregulationsandarespecifiedbythefarforusein acquisition. for each of these forms, the prescribing agency is', 45242:'identified by means of a parenthetical notation after the form number. forexample, sf1165 ,whichisprescribedbythegovernmentaccountabilityofficegao,isidentifiedas sf1165 gao. 53.110continuation sheets. except as', 45243:'may be otherwise indicated in the far, allstandardforms prescribed by the farmay be continued ona plain paper of similar specification,', 45244:'or b specially constructed continuation sheets e.g., of336 . continuation sheets shall be annotated in the upper righthand corner with', 45245:'the reference number of the document being continued and the serial page number. 53.111contract clause. contractingofficersshallinserttheclauseat 52.2531, computer generated forms,', 45246:'in solicitations and contracts that require the contractor to submit data on standard or optional forms prescribed by this regulation;', 45247:'and, unless prohibited by agency regulations, forms prescribed by agency supplements. subpart 53.2 prescription of forms 53.2051 subpart 53.2 prescription', 45248:'of forms 53.200scope of subpart. this subpart prescribes standard forms and references optional forms and agencyprescribed forms for use in', 45249:'acquisition. consistent with the approach used in subpart 52.2,thissubpartisarrangedbysubjectmatter,inthesameorderas,andkeyed to,the parts of the far in which theform usage requirements areaddressed.', 45250:'for example, forms addressed infar part 14, sealed bidding, are treated in this subpart in section 53.214,sealedbidding;formsaddressedinfar part 43, contract', 45251:'modifications, are treated in this subpart in section 53.243, contract modifications. the following example illustrates how the subjects are keyed', 45252:'to the parts in which they are addressed: 53.201federal acquisition system. 53.2011contractingauthorityand responsibilities sf 1402. sf 1402 10/83, certificate of', 45253:'appointment. sf 1402 isprescribedforuseinappointingcontractingofficers,asspecified in 1.6033 . 53.202[reserved] 53.203[reserved] 53.204administrative matters. 53.2041 safeguarding classified information within industry ddform254, ddform441. the', 45254:'following forms, which are prescribed by the department of defense, shall be used by dod components and those nondefense agencies', 45255:'with which dod has agreements to provide industrial security services for the national industrial security program if contractor access to', 45256:'classified information is required, as specified in subpart 4.4 and the clause at 52.2042: a dd form 254department of defense', 45257:'dod, contract security classification specification. see 4.403c1. b dd form 441dod, security agreement. see paragraph b of the clause at', 45258:'52.2042. 53.2042 [reserved] 53.205publicizing contract actions. 53.2051 paid advertisements. sf 1449, prescribed in 53.212, shall be used to place orders', 45259:'for paid advertisements as specified in 5.503. federal acquisition regulation 53.206[reserved] 53.207[reserved] 53.208[reserved] 53.209contractor qualifications. 53.2091responsible prospective contractors. the following', 45260:'forms are prescribed for use in conducting preaward surveys of prospective contractors, as specified in 9.1061 , 9.1062 , and', 45261:'9.1064 . these forms are authorized for local reproduction and can be found at the gsa forms library at https://www.gsa.gov/forms', 45262:'. a sf 1403 rev. 01/2014, preaward survey of prospective contractor general. b sf 1404 rev. 01/2014, preaward survey of', 45263:'prospective contractortechnical. c sf 1405 rev. 01/2014, preaward survey of prospective contractorproduction. d sf 1406 rev. 01/2014, preaward survey of', 45264:'prospective contractorquality assurance. e sf 1407 rev. 01/2014, preaward survey of prospective contractorfinancial capability. f sf 1408 rev. 01/2014, preaward', 45265:'survey of prospective contractoraccounting system. 53.210[reserved] 53.211[reserved] 53.212 acquisition of commercial products and commercial services. sf 1449 rev. nov 2021,', 45266:'solicitation/contract/order for commercial products and commercial services . sf 1449 is prescribed for use in solicitations and contracts for commercial', 45267:'products and commercial services. agencies may prescribe additional detailed instructions for use of the form. 53.213 simplified acquisition procedures sf’s', 45268:'18, 30, 44, 1165, 1449, and of’s 336,347, and 348. the following forms are prescribed as stated in this section', 45269:'for use in simplified acquisition procedures, orders under existing contracts or agreements, and orders from required sources of supplies and', 45270:'services: a sf 18 rev.6/95, request for quotations, or sf 1449 rev. nov 2021, solicitation/contract/order for commercial products and commercial', 45271:'services. sf 18 is prescribed for use in obtaining price, cost,delivery,and related information from suppliers as specified in 13.307b. sf', 45272:'1449, as prescribed in 53.212, or other agency forms/automated formats, may also be used toobtain price, cost, delivery, and relatedinformation', 45273:'from suppliers as specified in 13.307b. b sf 30 rev.11/2016, amendment of solicitation/ modification of contract. sf 30, prescribed in', 45274:'53.243, may be used for modifying purchase orders, as specified in 13.307c3. c sf 44 rev.10/83, purchase order invoice voucher.', 45275:'sf 44 is prescribed for use in simplified acquisition procedures, as specified in 13.306. d sf 1165 6/83ed., receipt for', 45276:'cashsubvoucher. sf1165 gao may be used for imprest fund purchases, as specified in 13.307e. e of 336 4/86ed., continuation sheet.', 45277:'of 336, prescribed in 53.214h, may be used as a continuation sheet in solicitations, as specified in 13.307c1. f sf', 45278:'1449 rev. nov 2021 solicitation/contract/order for commercial products and commercial services prescribed in 53.212, of 347 rev.2/2012, order for suppliesor', 45279:'services,and of 348 rev.4/06,order for supplies orservices schedule continuation. sf 1449, of’s 347 and 348 or approved agency forms/automated formats', 45280:'may be used as follows: 1 to accomplishacquisitions undersimplified acquisition procedures, as specified in 13.307. 2 to establish blanketpurchase agreements', 45281:'bpa’s, as specifiedin 13.3032, andto make purchases under bpa’s, as specified in 13.3035. 3 to issue orders underbasic ordering agreements,', 45282:'as specified in 16.703d2i. 4 as otherwise specified in this chapter e.g., see 5.503a2, 8.4061, 36.701b, and 51.102e3ii. subpart 53.2', 45283:'prescription of forms 53.2161 53.214sealed bidding. the following forms are prescribed for use in contracting by sealed bidding except for', 45284:'construction and architectengineer services: a sf 26 rev. 12/2022, award/contract. sf 26 is prescribed for use in awarding sealed bid', 45285:'contracts for supplies or services in which bids were obtained on sf 33, solicitation, offer and award, as specifiedin 14.4081d1.', 45286:'block 18 may only be used for sealedbid procurements. b sf 30, amendment of solicitation/modification of contract. sf 30, prescribed', 45287:'in 53.243, shall be used in amending invitations for bids, as specified in 14.208a. c sf 33 rev. 12/2022, solicitation,', 45288:'offer and award. sf 33 is prescribed for use in soliciting bids for supplies or services and for awarding the', 45289:'contracts that result from the bids, as specified in 14.2012a1, unless award is accomplished by sf 26. d sf 1447', 45290:'rev. 12/2022, solicitation/contract. sf 1447 is prescribed for use in soliciting supplies or services and for awarding contracts that result', 45291:'from the bids. it shall be used when the simplified contract format is used see 14.2019 and may be used', 45292:'in place of the sf 26 or sf 33 with other solicitations and awards. agencies may prescribe additional detailed instructions', 45293:'for use of the form. e [reserved] f sf 1409 rev. 9/88, abstract of offers, and sf 1410 9/88, abstract', 45294:'of offerscontinuation. sf 1409 and sf 1410 are prescribed for use in recording bids, as specified in 14.403a. g of', 45295:'17 rev. 12/93, offer label. of 17 may be furnished with each invitation for bids to facilitate identification and handling', 45296:'of bids, as specified in 14.2023b. h of 336 rev.3/86, continuation sheet. of 336 may be used as a continuation', 45297:'sheet in solicitations, as specified in 14.2012b. 53.215contracting by negotiation. 53.2151solicitation and receipt of proposals. the following forms are prescribed,', 45298:'as stated in the following paragraphs, for use in contracting by negotiation except for construction, architectengineer services, or acquisitions made', 45299:'using simplified acquisition procedures: a sf 26 rev.3/2013, award/contract. sf 26, prescribed in 53.214a, may be used in entering into', 45300:'negotiated contracts in which the signature of both parties on a single document is appropriate, as specified in 15.509. block', 45301:'18 may not be used for negotiated procurements. b sf 30 rev.11/2016, amendment of solicitation/modification of contract. sf 30, prescribed', 45302:'in 53.243, may be used for amending requests for proposals and for amending requests for information, as specified in 15.210b.', 45303:'c sf 33 rev.9/97, solicitation, offer and award. sf 33, prescribed in 53.214c, may be used in connection with the', 45304:'solicitation and award of negotiated contracts. award of suchcontracts may be made byeither of 307, sf 33, or sf 26,', 45305:'as specified in 53.214c and 15.509. d of 17 rev.12/93, offer label. of 17 may be furnished with each request', 45306:'for proposals to facilitate identification and handling of proposals, as specified in 15.210c. e of 307 rev.8/2016, contract award. of', 45307:'307 may be used to award negotiated contracts as specified in 15.509. f of 308 rev.9/97, solicitation and offernegotiated acquisition.', 45308:'of 308 may be used to support solicitation of negotiated contracts as specified in 15.210a. award of such contracts may', 45309:'bemade by of 307, as specified in 15.509. g of 309 rev.9/97, amendment of solicitation. of 309 may be used', 45310:'to amend solicitations of negotiated contracts, as specified in 15.210b. 53.216 typesof contracts. 53.2161delivery orders and orders underbasic orderingagreements of', 45311:'347. of 347, order for supplies or services. of 347, prescribed in 53.213f or an approved agency form, may be', 45312:'used to place orders under indefinite delivery contracts and basic ordering agreements, as specified in 16.703d2i. federal acquisition regulation 53.217[reserved]', 45313:'53.218[reserved] 53.219 smallbusinessprograms. the following standard form is prescribed for use in reporting small business including alaska native corporations and', 45314:'indian tribes, veteranowned small business, servicedisabled veteranowned small business, hubzone small business, small disadvantaged business including alaska native corporations and', 45315:'indian tribes and womenowned small business subcontracting data, as specified in part 19: sf 294,rev. nov2021subcontractingreportforindividualcontracts. sf 294 is authorized', 45316:'for local reproduction. 53.220[reserved] 53.221[reserved] 53.222 application oflabor laws togovernment acquisitions sf’s 308, 1413, 1444, 1445, 1446, wh347. the following', 45317:'forms areprescribed as stated below, for use inconnectionwith the applicationof labor laws: a [reserved] b [reserved] c sf 308 dolrev.', 45318:'2/2013, request for wagedetermination and response to request. see 22.4043a and b. d [reserved] e sf 1413 rev.4/2013, statement and', 45319:'acknowledgment. sf 1413 is prescribed for use in obtaining contractor acknowledgment of inclusion of required clauses in subcontracts, as specified', 45320:'in 22.4065. f form sf 1444 rev.4/2013, request for authorization of additional classification and rate. see 22.4063a and 22.1019. g', 45321:'sf 1445 rev.12/96, labor standards interview. see 22.4067b. h sf 1446 rev.4/2013., labor standards investigation summary sheet. see 22.4068d. i', 45322:'form wh347 dol, payroll for contractors optional use. see 22.4066a. 53.223[reserved] 53.224[reserved] 53.225[reserved] 53.226[reserved] 53.227[reserved] 53.228bonds and insurance. the following', 45323:'standard forms are prescribed for use for bond and insurance requirements, as specified in part 28. these forms can be', 45324:'found at the gsa forms library at http://www.gsa.gov/forms . all the following forms are authorized for local reproduction, except for', 45325:'sf 25 b. a sf 24 rev. 8/2016 bid bond. see 28.1061. b sf 25 rev. 8/2016 performance bond. see', 45326:'28.1061b. c sf 25a rev. 8/2016 payment bond. see 28.1061c. d sf 25b for standard forms 24, 25, and 25a.', 45327:'rev.10/1983,continuationsheetforms 24, 25, and 25a see 28.1061c. e sf 28 rev. feb 2021 affidavit of individual surety. see 28.1061e and', 45328:'28.2031b3. f sf 34 rev. 8/2016, annual bid bond. see 28.1061f. g sf 35 rev. 8/2016, annual performance bond. see', 45329:'28.1061. h sf 273 rev. 4/2013 reinsurance agreement for a bond statute performance bond. see 28.1061h and 28.202a 4. subpart', 45330:'53.2 prescription of forms 53.2362 i sf 274 rev. 4/2013 reinsurance agreement for a bond statute payment bond. see 28.1061i', 45331:'and 28.202a4. j sf 275 rev. 10/98 reinsurance agreement in favor of the united states. see 28.1061j and 28.202a4. k', 45332:'sf 1414 rev. 10/93, consent of surety. l sf 1415 rev. 7/93, consent of surety and increase of penalty. see', 45333:'28.1061l. m sf 1416 rev. 10/98 payment bond for other than construction contracts. see 28.1061m. n sf 1418 rev. 2/99', 45334:'performance bond for other than construction contracts. see 28.1061n. o of 91 1/90ed., release of personal property from escrow. see', 45335:'28.1061o and 28.2033a. 53.229 taxessf’s 1094, 1094a. sf 1094 rev.12/96, u.s. tax exemption form, and sf 1094a rev.12/96, tax exemption', 45336:'forms accountability record. sf’s 1094and 1094aare prescribed for use in establishing exemption from state or local taxes, as specified in', 45337:'29.302b. 53.230[reserved] 53.231[reserved] 53.232contract financing sf 1443. sf 1443 nov 2021, contractor’s request for progress payment. sf 1443 is prescribed', 45338:'for use in obtaining contractors’ requests for progress payments. 53.233[reserved] 53.234[reserved] 53.235 research and development contracting sf298. sf 2982/89, report', 45339:'documentation page. sf 298 is prescribed for use in submitting scientific and technical reports to contracting officers and totechnical informationlibraries,', 45340:'as specified in 35.010 and ansi standard z39.18. 53.236 construction and architectengineer contracts. 53.2361 construction. the following forms areprescribed, as', 45341:'stated below, for use in contractingforconstruction, alteration, or repair, or dismantling, demolition, or removal of improvements. a [reserved] b [reserved]', 45342:'c [reserved] d sf 1442 rev. 12/2022., solicitation, offer and award construction, alteration, or repair. sf 1442 is prescribed for', 45343:'use insoliciting offers and awarding contracts expected to exceed the simplifiedacquisitionthreshold for 1 construction, alteration, or repair; or 2 dismantling,', 45344:'demolition, or removal of improvements and may be used for contracts within the simplified acquisition threshold, as specified in 36.701a.', 45345:'e of 347 rev.2/2012, order for supplies or services. of 347, prescribed in 53.213f or an approved agency form, may', 45346:'be used for contracts under the simplified acquisition threshold for 1 construction, alteration, or repair; or 2 dismantling, demolition, or', 45347:'removal of improvements, as specified in 36.701b. f of 141911/88ed., abstract of offersconstruction, and of 1419a 11/88ed., abstract of offersconstruction,', 45348:'continuation sheet. of’s 1419 and 1419a are prescribed for use in recording bids and may be used for recording proposal', 45349:'information, as specified in 36.701c. 53.2362architectengineer servicessf’s 252 and 330. the following forms are prescribed for use in contracting for', 45350:'architectengineer and related services: a sf 252 rev.10/23, architectengineer contract. sf 252 is prescribed for use in awarding fixedprice contracts', 45351:'for architectengineer services, as specified in 36.702a. federal acquisition regulation b sf 330 rev. jul 2021, architectengineer qualifications . sf', 45352:'330 is prescribed for use in obtaining information from architectengineer firms regarding their professional qualifications, as specified in 36.702b1 and', 45353:'b2. 53.237[reserved] 53.238[reserved] 53.239[reserved] 53.240[reserved] 53.241[reserved] 53.242contract administration. 53.2421novation andchangeofname agreements sf 30. sf 30, amendment of solicitation/modification of contract.', 45354:'sf 30 , prescribed in 53.243 , shall be used in connection with novation and change of name agreements, as', 45355:'specified in 42.1203 h. 53.243contract modifications sf 30. sf 30 rev.11/2016, amendment of solicitation/ modification of contract. sf 30 is', 45356:'prescribed for use in amending invitation for bids, as specified in 14.208; modifying purchase and delivery orders, as specified in', 45357:'13.3023; and modifying contracts, as specified in 42.1203h, 43.301, 49.6025, and elsewhere in this regulation. the form may also be', 45358:'used to amend solicitations for negotiated contracts, as specified in 15.210b. pending the publication of a new edition of the', 45359:'form, instruction b,item 3 effective date, is revised inparagraphs 3 and 5 as follows: b item3 effective date. 3 for', 45360:'a modificationissuedas aconfirming noticeof termination for the convenienceof the government, the effective date of the confirming notice shall be the', 45361:'sameas the effectivedate of the initialnotice. 5 for a modificationconfirming the termination contracting officer’sprevious letter determination of the amount due', 45362:'in settlement of a contract termination for convenience, the effective date shall bethe same as theeffective date ofthe previous letter', 45363:'determination. 53.244[reserved] 53.245 governmentproperty. the following forms are prescribed, as specified in this section, for use in reporting, reutilization, and', 45364:'disposal of government property and in accounting for this property: a sf 120 gsa, report of excess personal property, and', 45365:'sf 120a gsa, continuation sheet report of excess personal property. see 45.6023 and 41 cfr 10236.215. b sf 126 gsa,', 45366:'report of personal property for sale, and sf 126a gsa, report of personal property for sale continuation sheet. see fpmr', 45367:'10145.303 41 cfr10145.303. c sf 1423 rev.5/04, inventory verification survey. see 45.6021b1. d sf 1424 rev.5/2004, inventory disposal report see', 45368:'45.605. sf 1424 is authorized for local reproduction. e sf 1428 rev.6/2007, inventory disposal schedule, and sf 1429 rev.5/2004, inventory', 45369:'disposal schedule continuation sheet. see 45.6021, 49.3032, 52.2451, and 53.249b. sf’s 1428 and 1429 are authorized for local reproduction. 53.246[reserved]', 45370:'53.247 transportation u.s. commercial bill of lading. thecommercialbillofladingisthepreferreddocumentforthetransportationofproperty,asspecifiedin 47.101. subpart 53.2 prescription of forms 53.251 53.248[reserved] 53.249 termination of contracts.', 45371:'a the following forms are prescribed for use in connection with the termination of contracts, as specified in subpart 49.6.', 45372:'these forms are available at the gsa forms library at https://www.gsa.gov/forms. these forms are authorized for local reproduction except for', 45373:'sf 1034. 1 sf 1034 gao, public voucher for purchases and services other than personal. see 49.302a. 2 sf 1435', 45374:'rev. 03/2016, settlement proposal inventory basis. see 49.6021a. 3 sf 1436 rev. 5/2004, settlement proposal total cost basis. see 49.6021b.', 45375:'4 sf 1437 rev. 9/1997, settlement proposal for costreimbursement type contracts. see 49.6021c and 49.302. 5 sf 1438 rev. 5/2004,', 45376:'settlement proposal short form. see 49.6021d. 6 sf 1439 rev. 7/1989, schedule of accounting information. see 49.6023. 7 sf 1440', 45377:'rev. 01/1995, application for partial payment. see 49.6024. b sf 1428 rev. 6/2007, inventory disposal schedule, and standard form 1429', 45378:'rev. 1/2016, inventory disposal schedulecontinuation sheet, shall be used to support termination settlement proposals listed in paragraph a of this', 45379:'section, as specified in 49.6022. these forms are available at the gsa forms library at https://www.gsa.gov/forms. 53.250[reserved] 53.251 contractor use', 45380:'of government supply sources of 347. of 347, order for supplies or services. of 347, prescribed in 53.213f, may be', 45381:'used by contractors when requisitioning from the va, as specified in 51.102 e3ii. this page intentionally left blank. 53.28 subpart', 45382:'53.3 forms used in acquisitions 53.300 subpart 53.3 forms used in acquisitions 53.300listing of standard, optional, and agency forms. this', 45383:'subpart identifies, in numerical sequence, standard forms sf, optional forms of and agency forms that are specified bythe far for', 45384:'usein acquisitions. a you can access theforms in table 531 at the gsa forms library at https://www.gsa.gov/forms. form number sf', 45385:'18 sf 24 sf 25 sf 25a sf 25b sf 26 sf 28 sf 30 sf 33 sf 34 sf', 45386:'35 sf 120 sf 120a sf 126 sf 126a sf 252 sf 273 sf 274 sf 275 sf 294 sf', 45387:'298 sf 308 sf 330 sf 1034 sf 1035 sf 1094 sf 1094a sf 1165 forms in the gsa forms', 45388:'library title request for quotation bid bond performance bond payment bond continuation sheet for 24, 25, and 25a award/contract affidavitof', 45389:'individual surety amendment of solicitation/modification of contract solicitation, offer and award annual bid bond annual performance bond report of excess', 45390:'personal property continuation sheet report of excess personal property report of personal property for sale report of personal property for', 45391:'sale continuation sheet. architectengineer contract reinsurance agreement for a bonds statute performance bond reinsurance agreement for a bonds statute payment', 45392:'bond reinsurance agreement in favor of the united states subcontracting report for individual contracts report documentation page request for wage', 45393:'determinationandresponseto request architectengineer qualifications public voucherforpurchases andservices other than personal public voucherforpurchases andservices other than personal u.s. taxexemption form u.s.', 45394:'taxexemption form continuation sheet receipt for cashsubvoucher federal acquisition regulation form number sf 1402 sf 1403 sf 1404 sf 1405', 45395:'sf 1406 sf 1407 sf 1408 sf 1409 sf 1410 sf 1413 sf 1414 sf 1415 sf 1416 sf 1418', 45396:'sf 1423 sf 1424 sf 1427 sf 1428 sf 1429 sf 1435 sf 1436 sf 1437 sf 1438 sf 1439', 45397:'sf 1440 sf 1442 sf 1443 sf 1444 sf 1445 sf 1446 sf 1447 sf 1449 of 17 title certificate', 45398:'of appointment preaward survey of prospective contractor preaward survey of prospective contractortechnical preaward survey of prospective contractor production preaward survey', 45399:'of prospective contractor quality assurance preaward survey of prospective contractor financial capability preaward survey of prospective contractor accounting system abstract', 45400:'of offers abstract of offers continuation statement and acknowledgment consent of surety consent of surety and increase of penalty payment', 45401:'bond for other than construction contracts performance bond for other than construction contracts inventory verificationsheet inventory disposal report inventory schedule', 45402:'a–continuation sheet inventory disposal schedule inventory disposal schedule–continuation sheet settlement proposal inventory basis settlement proposal totalcost basis settlement proposal for', 45403:'costreimbursementtype contracts settlement proposal short form schedule of accounting information application for partial payment solicitation, offer,and award contractor’srequestfor progress payment', 45404:'request for authorization of additional classification and rate labor standards interview labor standards investigation summary sheet solicitation/contract solicitation/contract/order for commercial', 45405:'products and commercial services. notice to offeror subpart 53.3 forms used in acquisitions 53.300 form title number of 91 release', 45406:'of personal property from escrow of 307 contract award. of 308 solicitation and offernegotiated acquisition of 309 amendment of solicitation', 45407:'negotiated procurements. of 336 continuation sheet of 347 order for supplies or services of 348 order for supplies or services', 45408:'continuation of 1419 abstract of offers construction of 1419a abstract of offersconstruction continuation sheet b you can access the forms', 45409:'in table532 at the websites listed inthe table. other forms form number title url form dd 254 form dd 441', 45410:'department of defense contract security classification specification department of defense security agreement https://www.esd.whs.mil/portals/54/ documents/dd/forms/dd/dd0254.pdf https://www.esd.whs.mil/portals/54/ documents/dd/forms/dd/dd04412020.pdf form payroll–u.s. department of', 45411:'labor https://www.dol.gov/whd/forms/wh347.pdf wh347 this page intentionally left blank. 53.34 farcorrections please complete this form to notify the regulatory secretariat of', 45412:'errors, omissions, or inconsistencies in the textof the far or facs and submit via mail or facsimile to: general services', 45413:'administration regulatory secretariat division mvcb 1800 f street, nw washington,dc 20405 telephone:202 5014755 facsimile: 202 5014067 far part,subpart, orsection: page', 45414:'number: nature of errors: name: telephone: email address: address: 2',