FR Doc E9-22206

[Federal Register: October 13, 2009 (Volume 74, Number 196)]
[Proposed Rules]
[Page 52541-52610]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13oc09-16]

[[Page 52541]]

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Part II

Department of Commerce

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48 CFR Ch. 13

Commerce Acquisition Regulation (CAR): Plain Language Rewrite; Proposed
Rule

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DEPARTMENT OF COMMERCE

48 CFR Chapter 13

[Document Number: 080730954-8955-01]
RIN 0605-AA26

Commerce Acquisition Regulation (CAR): Plain Language Rewrite;
Proposed Rule

AGENCY: Department of Commerce.

ACTION: Proposed rule.

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SUMMARY: The Commerce Acquisition Regulation (CAR) was originally
codified March 30, 1984, and amended by subsequent regulations
published in the Federal Register. The Department of Commerce (DOC)
proposes to update the entire CAR through FAC-2005-21. This proposed
rule will bring the CAR in alignment with the FAR through FAC 2005-21
and streamline DOC internal policy and guidance.

DATES: Comments on the proposed rule should be submitted on or before
December 14, 2009 to be considered in the formulation of the final
rule.

ADDRESSES: Comments may be submitted through any of the following:
Federal Rulemaking Portal: http://www.Regulations.gov.
Please follow the instructions for submitting a comment.
Mail: Virna Evans, U.S. Department of Commerce, Room 1854,
1401 Constitution Avenue, NW., Washington, DC 20230.
All comments should indicate that they are submitted in response to
RIN 0605-AA26.

FOR FURTHER INFORMATION CONTACT: Virna Evans, 202-482-3483.

SUPPLEMENTARY INFORMATION:

Drafting Information

The Department of Commerce used the FAR version dated November 7,
2007, updated through FAC 2005-21 and located on the http://
farsite.hill.af.mil/ Web site as the reference FAR during development.

Background

The CAR is the Department of Commerce acquisition regulation that
implements or supplements the FAR.. The CAR was originally codified
March 30, 1984 and last updated by Federal Register Notice on September
12, 1995. The update will bring the CAR in alignment with the FAR
through FAC 2005-21 and streamline Department of Commerce policies and
procedures.
The following is a discussion of common changes made throughout the
CAR. Various sections of the CAR have been renumbered and/or renamed to
align with the FAR. Significant information has been added to address
those instances where the FAR indicates that agency procedures are
required or instructs the agency to act in accordance with agency
procedures. Many references to chapters of the Department's internal
guidance document called Commerce Acquisition Manual, or CAM, have been
added to provide a relationship between the FAR, the CAR, and DOC
internal guidance. Information was also added to clarify roles and
responsibilities across the agency and within the Department of
Commerce's 5 Operating Units authorized to operate contracting offices
(National Institute of Standards and Technology (NIST), National
Oceanic and Atmospheric Administration (NOAA), Office of the Secretary,
U.S. Census Bureau, and Patent and Trademark Office (PTO)), usually in
the form of a reference to the CAM outlining delegations of authority.
In addition, numerous new clauses have been added that correspond to
new requirements added to the CAR. Finally, the authority citations for
the CAR have been revised to correspond to current authority. A summary
of the changes by CAR Part follows.

Part 1301: Department of Commerce Acquisition Regulations System

We propose to renumber various sections of Part 1301 to align with
the FAR. We propose to add sections 1301.3 and 1301.4 to clarify the
location and format of agency policy and guidance, the role of bureaus
in issuing directives, and the designees authorized to approve
deviations. We propose to expand section 1301.6 to highlight
significant agency policy and guidance related to contracting
authority; ratification practices; and selection, appointment, and
termination of appointment of Contracting Officers. The first
references are made to internal guidance documents CAM 1301.70 and CAM
1301.6. We propose to add the following clauses:

1352.201-70 Contracting Officer's Authority
1352.201-71 Ratification Release
1352.201-72 Contracting Officer's Representative (COR)

Part 1302: Definitions of Words and Terms

We propose to add Part 1302 in order to clarify significant and/or
frequently used terms and acronyms within the agency and foster common
understanding and proper usage across the agency.

Part 1303: Improper Business Practices and Personal Conflicts of
Interest

We propose to renumber and rename various sections of Part 1303 to
align with the FAR. We propose to add multiple new sections to the Part
in order to clarify roles and responsibilities, agency process, and
legal requirements.

Part 1304: Administrative Matters

We propose to add Part 1304 in order to describe procedures related
to accountable personal property and to provide a reference to CAM
chapters describing Federal Procurement Data System reporting
procedures and contract closeout, storage, handling, and disposal
procedures.

Part 1305: Publicizing Contract Actions

We propose to add Part 1305 in order to clarify various roles and
responsibilities related to publicizing contract actions.

Part 1306: Competition Requirements

We propose to add Part 1306 in order to clarify various roles and
responsibilities related to competition, and to highlight internal
processes and legal requirements involving sole source acquisitions.

Part 1307: Acquisition Planning

We propose to add Part 1307 in order to clarify agency head
responsibilities in relation to FAR 7.103, describe agency policy
related to inherently governmental functions, and to provide a
reference to internal Web sites and/or CAM chapters covering
acquisition planning and competitive sourcing policy and procedures.

Part 1308: Required Sources of Supplies and Services

We propose to add Part 1308 in order to clarify the designee
authorized as the Department's central printing authority. We propose
to add the following clause related to the new provision:

1352.208-70 Restrictions on Printing and Duplicating

Part 1309: Contractor Qualifications

We propose to redesignate current section 1309.106-70 Preaward
surveys for ship construction, ship alteration, and ship repair to Part
1371 of the CAR, which addresses specialty procurements. We propose to
add multiple references to CAM 1301.70 that define responsibilities and
delegations of authority related to qualification requirements,
debarment, suspension and ineligibility, and organizational and
consultant conflicts of interest. We propose to remove 1309.470-4,

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Procedures on Debarment and 1309.470-7, Procedures on Suspension, and
update this information in redesignated Sections 1309.406, Debarment,
and 1309.407, Suspension. We propose to add Subpart 1309.5,
Organizational and Consultant Conflicts of Interest to address waivers,
procedures and the process for addressing organizational conflicts of
interest (OCI). We also propose to add the following provisions and
clauses:

1352.209-70 Potential Organizational Conflict of Interest
1352.209-71 Limitation of Future Contracting
1352.209-72 Restrictions Against Disclosure
1352.209-73 Compliance with the Laws
1352.209-74 Organizational Conflict of Interest
1352.209-75 Title 13 and Non-Disclosure Requirements

Part 1311: Describing Agency Needs

We propose to add Part 1311 in order to clarify roles and
responsibilities related to market acceptance and liquidated damages.

Part 1312: Acquisition of Commercial Items

We propose to add Part 1312 in order to define the individual with
the authority to approve requests to tailor provisions, clauses or
terms and conditions that are inconsistent with customary commercial
practice.

Part 1313: Simplified Acquisition Procedures

We propose to update Part 1313 to align the CAR with the FAR and
current agency practices. Such updates include updating the title of
the part; adding references to the CAM chapters that define the
authority for delegating micro-purchase authority and the training
required by DOC employees prior to being delegated micro-purchase
authority; adding references to the CAM chapter covering departmental
procedures for the use and control of the Governmentwide commercial
purchase card; and outlining agency policy related to contractor
acceptance of purchase order modifications, purchases under BPAs,
third-party drafts, and imprest funds.
The following clauses were added to this part:

1352.213-70 Evaluation Utilizing Simplified Acquisition Procedures
1352.213-71 Instructions for Submitting Quotations Under the
Simplified Acquisition Threshold--Non- Commercial

Part 1314: Sealed Bidding

We propose to add Part 1314 to define roles and responsibilities
and legal requirements for rejection of bids, mistakes in bids, and
information to bidders.

Part 1315: Contracting by Negotiation

We propose to revise Part 1315 to align with the FAR and current
agency practices. Revisions include defining roles and responsibilities
related to granting exceptions from the uniform contract format,
waiving examination of records requirement, define responsibilities,
permissions, and other requirements related to source selection;
redesignating section 1315.5, originally amended Sept. 12, 1995, as
subpart 1315.6 Unsolicited Proposals to describe procedures for
unsolicited proposals, and deleting subpart 1315.504 Advance Guidance.
We also propose to add the following provisions and clauses:

1352.215-70 Proposal Preparation
1352.215-71 Instructions for Oral Presentations
1352.215-72 Inquiries
1352.215-73 Evaluation Quantities--Indefinite Quantity Contract
1352.215-74 Best Value Evaluation
1352.215-75 Evaluation Criteria
1352.215-76 Cost or Pricing Data

Part 1316: Types of Contracts

We propose to revise Part 1316 by redesignating section 1316.404-2
as 1316.405-2 and adding associated clause 1352.216-72 Determination of
Award Fee; define roles and responsibilities for use of economic price
adjustment clause, use of fixed-ceiling-price contracts with
retroactive price redetermination, designation of task order ombudsman,
approval of time-and-materials contracts, and approval of letter
contracts; and addressing FAR requirements of agencies related to
contract type.
We also propose to add the following provisions and clauses:

1352.216-70 Estimated and Allowable Costs
1352.216-71 Level of Effort (Cost-Plus-Fixed Fee, Term Contract)
1352.216-72 Determination of Award Fee
1352.216-73 Distribution of Award Fee
1352.216-74 Task Orders
1352.216-75 Minimum and Maximum Contract Amounts
1352.216-76 Placement of Orders
1352.216-77 Ceiling Price

Part 1317: Special Contracting Methods

We propose to revise Part 1317 to include references to CAM 1301.70
that define responsibilities and delegations of authority. We propose
housing all specialty procurements in new Part 1370, Universal
Solicitation Provisions and Contract Clauses. Subpart 1317.70,
Contracts for Ship Construction, Ship Alteration, and Ship Repair has
been redesignated as Part 1371, Acquisitions Involving Ship
Construction and Ship Repair.

Part 1318: Emergency Acquisitions

We propose to add Part 1318 in order to clarify agency procedures
and expectations related to emergency acquisitions. We propose to add
references to CAM 1301.70 that define responsibilities and delegations
of authority.

Part 1319: Small Business Programs

We propose to update Part 1319 to align with the FAR and current
agency practices. Such updates include clarifying agency policy,
procedures and expectations related to setting aside acquisitions for
small businesses; providing the procedure for determining lack of
competency; providing the procedure for reviewing subcontracting plans;
and providing the procedure for contracting with the Small Business
Administration 8(a) Program.
We also propose to add the following and clauses:

1352.219-70 Section 8(a) Direct Award (Deviation)
1352.219-71 Notification To Delay Performance (Deviation)
1352.219-72 Notification of Competition Limited to Eligible 8(a)
Concerns, Alternative III (Deviation)

Part 1322: Application of Labor Laws to Government Acquisitions

We propose to add Part 1322 in order to define roles and
responsibilities and approval chains for notification of potential
labor disputes, approval of requests for overtime, determination of
liquidated damages, modifications of wage determinations, processing
labor standards investigations, and requesting exemptions or waivers of
labor standards. We also set forth the proposing instructions detailing
when and from whom contracting officers should seek legal advice and
assistance for potential or actual labor disputes, and removal of items
affected by work stoppage.

Part 1323: Environment, Energy and Water Efficiency, Renewable Energy
Technologies, Occupational Safety, and Drug-Free Workplace

We propose to add Part 1323 in order to clarify roles and
responsibilities, and to reference the CAM chapters that describe the
agency's affirmative procurement program and the procedures for
granting exceptions to

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procurement of an Energy Star or Federal Energy Management Program
designated product or exceptions to Electronic Product Environmental
Assessment Tool requirements indicated under FAR Part 23.705(c).

Part 1324: Protection of Privacy and Freedom of Information

We propose to add Part 1324 in order to provide a cross-reference
to the CFR title describing the agency's implementation of the Freedom
of Information Act.

Part 1325: Foreign Acquisition

We propose to add Part 1325 in order to define roles and
responsibilities for various actions and to define procedures related
to exceptions to the Buy American Act for supplies.

Part 1326: Other Socioeconomic Programs

We propose to add Part 1326 in order to define the designee
authorized to determine that transitioning response, relief, and/or
reconstruction activity to local firms is not feasible or practicable.

Part 1327: Patents, Data, and Copyrights

We propose to add Part 1327 in order to define roles and
responsibilities for various actions and to permit contracting officers
to place limitations or restrictions on the contractor's exercise of
its rights in data first produced in the performance of a contract. We
also propose to add the following clause:

1352.227-70 Rights in Data, Assignment of Copyright

Part 1328: Bonds and Insurance

We propose to add Part 1328 in order to define multiple roles and
responsibilities related to various actions and to define the legal
entity from which to obtain opinion when determining acceptability of
individual surety. We also propose to add the following provisions and
clauses:

1352.228-70 Insurance Coverage
1352.228-71 Deductibles Under Required Insurance Coverage--Cost
Reimbursement
1352.228-72 Deductibles Under Required Insurance Coverage--Fixed
Price
1352.228-73 Loss of or Damage to Leased Aircraft
1352.228-74 Fair Market Value of Aircraft
1352.228-75 Risk and Indemnities
1352.228-76 Approval of Group Insurance Plans

Part 1329: Taxes

We propose to add Part 1329 in order to define the process for DOC
and its contractors for purchases of spirits tax-free for non-beverage
Government use. We also propose to define the group to whom contracting
officers should refer legal questions relating to tax issues. We also
propose to identify responsibility for review of proposed designation
of a contractor as an agent of the Government.

Part 1330: Cost Accounting Standards Administration

We propose to add Part 1330 in order to clarify roles and
responsibilities related to Cost Accounting Standards program
requirements.

Part 1331: Contract Cost Principles and Procedures

We propose to add Part 1331 in order to clarify roles and
responsibilities for approval of individual deviations concerning cost
principles, and waiver of cost allowability limitations. We also
propose adding the following clauses:

1352.231-70 Precontract Costs
1352.231-71 Duplication of Effort

Part 1332: Contract Financing

We propose to revise Part 1332 to clarify roles and
responsibilities across multiple actions. We propose to permit, under
1332.003, contract financing for purchases made under the authority of
FAR Part 13. Under 1332.702, we propose to clarify the contract funding
process and the individual who represents the responsible fiscal
authority. We also propose to reference the various agency policies and
procedures that need to be followed when using the Governmentwide
commercial purchase card.

Part 1333: Protests, Disputes, and Appeals

We propose to revise all of Part 1333 to make the Part current to
agency policy and procedures. Revisions include defining roles and
responsibilities for protest decisions and determinations related to
disputes and appeals, and defining legal review and handoff procedures.
We also propose to add the following clauses:

1352.233-70 Agency Protests
1352.233-71 GAO and Court of Federal Claims Protests

Part 1334: Major System Acquisition

We propose to add Part 1334 in order to identify the designated
authority and procedures for acquiring major systems. We propose to
clarify policy and dollar thresholds regarding the FAR regulation
requiring Earned Value Management Systems.

Part 1335: Research and Development Contracting

We propose to add Part 1335 in order to define terms for research
and development contracting and identify procedures. We also propose to
add the following provisions and clauses:

1352.235-70 Protection of Human Subjects
1352.235-71 Protection of Human Subjects--Exemption
1352.235-72 Protection of Human Subjects--Institutional Approval
1352.235-73 Research Involving Human Subjects--After Initial
Contract Award

Part 1336: Construction and Architect-Engineer Contracts

We propose to define the acceptable composition of permanent and ad
hoc architect-engineer evaluation boards, the appropriate means for
selecting firms for contracts not expected to exceed the simplified
acquisition threshold, and the appropriate means for designating the
selection authority.
We propose to define the designee authorized to make the
determination described at FAR 36.609-1(c).

Part 1337: Service Contracting

We propose to refer to the CAM chapter outlining agency procedures
for personnel security processing for contractors performing services
on or within a Department of Commerce facility or through and
information technology (IT) system. We propose to refer to the CAM
chapter that indicates the designee authorized to make the
determinations described under FAR 37.204.
We propose to add the following clauses:

1352.237-70 Security Processing Requirements--High or Moderate Risk
Contracts
1352.237-71 Security Processing Requirements--Low Risk Contracts
1352.237-72 Security Processing Requirements--National Security
Contracts
1352.237-73 Foreign National Visitor and Guest Access to
Departmental Resources
1352.237-74 Progress Reports
1352.237-75 Key Personnel

Part 1339: Acquisition of Information Technology

We propose to describe agency procedures and provision/clause
options for processing contractors that are competing for and winning
information technology service acquisitions over the micro-purchase
threshold, and/or will require electronic access to Department of
Commerce information technology systems. We also propose to add the
following provisions and clauses:

1352.239-70 Software License Addendum

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1352.239-71 Electronic and Information Technology
1352.239-72 Security Requirements for Information Technology
Resources.

Part 1341: Acquisition of Utility Services

We propose to add Part 1341 to clarify the roles and
responsibilities for entering into contracts with utility providers and
making determinations related to contracts and agreements of utility
services.

Part 1342: Contract Administration

We propose to revise Part 1342 to define roles and responsibilities
related to contract administration and certification of indirect cost
rates. We propose to add the following provision:

1352.242-70 Postaward Conference

Part 1344: Subcontracting Policies and Procedures

We propose to add Part 1334 to identify the designee authorized to
lower or raise the $25 million sales threshold for performing a review
to determine if a Contractors Purchasing Systems Review is needed.

Part 1345: Government Property

We propose to add Part 1345 in order to address when government
property is to be furnished to the contractor. We propose to add the
following clause:

1352.245-70 Government Furnished Property

Part 1346: Quality Assurance

We propose requiring DOC operating units to develop instructions
and procedures related to material inspection and receiving reports. We
also propose to authorize contracting officers to approve the use of
warranties. We propose adding the following clause:

1352.246-70 Place of Acceptance

Part 1348: Value Engineering

We propose to add Part 1348 in order to clarify the policy for
processing Value Engineering Change Proposals (VECPs). We also propose
to define the roles and responsibilities related to VECP processing and
to granting exemptions from the requirements of FAR Part 48 for a
contract or class of contracts.

Part 1349: Termination of Contracts

We propose to revise Part 1349 to reflect current agency procedures
for dealing with default terminations and terminations involving fraud
or other criminal conduct.

Part 1350: Extraordinary Contractual Actions

We propose to add Part 50 in order to define roles and
responsibilities for various actions.

Part 1352: Solicitation Provisions and Clauses

We propose to revise Part 1352 in order to reflect currently
approved provisions and clauses. The clauses we propose to add for each
CAR Part are identified in the discussion of each CAR Part summary. An
agency-specific matrix, similar in format and intent to the FAR Part 52
matrix (See CAR Part 1352.3), is added to assist users identify the
location of the provision and clause for each prescription in the CAR.
The changes made to existing CAR provisions and clauses are summarized
in the table below.

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Existing CAR provision or clause number
and title Action taken
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1352.217-90, Inspection and Manner of Revised and moved to CAR Part
Doing Work. 1371.
1352.217-91, Delivery of Vessel to the Revised, renamed Delivery and
Contractor. Shifting of the Vessel, and
moved to CAR Part 1371.
1352.217-92, Performance............... Revised and moved to CAR Part
1371.
1352.217-93, Delays.................... Revised and moved to CAR Part
1371.
1352.217-94, Minimization of Delay Due Revised and moved to CAR Part
to Government Furnished Property. 1371.
1352.217-95, Additional Provisions Removed.
Relating to Government Property.
1352.217-96, Liability and Insurance... Revised and moved to CAR Part
1371.
1352.217-97, Title..................... Revised and moved to CAR Part
1371.
1352.217-98, Discharge of Liens........ Revised and moved to CAR Part
1371.
1352.217-99, Department of Labor Revised and moved to CAR Part
Occupational Safety and Health 1371.
Standards for Ship Repairing.
1352.217-100, Regulations Governing Removed.
Asbestos Work.
1352.217-101, Complete and Final Removed.
Equitable Adjustments.
1352.217-102, Government Review, Revised and moved to CAR Part
Comment, Acceptance, and Approval. 1371.
1352.217-103, Access to the Vessel(s).. Revised and moved to CAR Part
1371.
1352.217-104, Documentation of Requests Revised and moved to CAR Part
for Equitable Adjustment. 1371.
1352.217-105, Change Proposals......... Removed.
1352.217-106, Lay Days................. Revised and moved to CAR Part
1371.
1352.217-107, Changes--Ship Repair..... Revised and moved to CAR Part
1371.
1352.217-108, Default--Ship Repair..... Removed.
1352.217-109, Insurance Requirements... Revised and moved to CAR Part
1371.
1352.217-110, Guarantees............... Revised and moved to CAR Part
1371.
1352.217-111, Temporary Services....... Revised and moved to CAR Part
1371.
1352.217-112, Self-Insurance Removed.
Information.
1352.233.2, Service of Protest......... Revised and renumbered 1352.233-
70.
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Part 1353: Forms

We propose to revise Part 1353 in order to align the part with
current agency procedures and acquisition-related forms.

Part 1370: Universal Solicitation Provisions and Contract Clauses

We propose to add Part 1370 in order to group the provisions and
contract clauses that have prescriptions applicable to more than one
FAR Part. We propose to insert the following provisions and clauses:

1352.270-70 Period of Performance
1352.270-71 Pre-Bid/Pre-Proposal Conference and Site Visit

Part 1371: Acquisitions Involving Ship Construction and Ship Repair

We propose to add Part 1371 in order to group the unique provisions
and contract clauses that pertain to ship

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construction and ship repair. We propose to insert the following
provisions and clauses:

1352.271-70 Inspection and Manner of Doing Work
1352.271-71 Method of Payment and Invoicing Instructions for Ship
Repair
1352.271-72 Additional Item Requirements (AIR)--Growth Work
1352.271-73 Schedule of Work
1352.271-74 Foreseeable Cost Factors Pertaining to Different
Shipyard Locations
1352.271-75 Delivery and Shifting of the Vessel
1352.271-76 Performance
1352.271-77 Delays
1352.271-78 Minimization of Delay Due to Government Furnished
Property
1352.271-79 Liability and Insurance
1352.271-80 Title
1352.271-81 Discharge of Liens
1352.271-82 Department of Labor Occupational Safety and Health
Standards for Ship Repair
1352.271-83 Government Review, Comment, Acceptance and Approval
1352.271-84 Access to the Vessel
1352.271-85 Documentation of Requests for Equitable Adjustment
1352.271-86 Lay Days
1352.271-87 Changes--Ship Repair
1352.271-88 Guarantees
1352.271-89 Temporary Services
1352.271-90 Insurance Requirements

Classification

This proposed rule has been determined to be not significant for
purposes of Executive Order 12866, Regulatory Planning and Review.
Under the Regulatory Flexibility Act (5 U.S.C. 601 et seq., as
amended by the Small Business Regulatory Enforcement Fairness Act of
1996), whenever an agency is required to publish a notice of rulemaking
for any proposed or final rule, it must prepare and make available for
public comment a regulatory flexibility analysis that describes the
effect of the rule on small entities (i.e., small businesses, small
organizations, and small government jurisdictions), unless the agency
certifies that the rule will not have a significant economic impact on
a substantial number of small entities. The Regulatory Flexibility Act
requires Federal agencies to provide a statement of the factual basis
for certifying that a rule will not have a significant economic impact
on a substantial number of small entities.
Pursuant to the Regulatory Flexibility Act, the Chief Counsel for
Regulation certified to the Chief Counsel for Advocacy of the Small
Business Administration that this proposed rule will not have a
significant economic impact on a substantial number of small entities.
The rule would update the Commerce Acquisition Regulations; it does not
directly regulate any small entities. As a result, an initial
regulatory flexibility analysis is not required and none has been
prepared.
This rule does not impose any new information collections subject
to review and approval by OMB under the Paperwork Reduction Act.
Notwithstanding any other provision of the law, no person is required
to respond to, nor shall any person be subject to a penalty for failure
to comply with, a collection of information subject to the requirements
of PRA, unless that collection of information displays a currently
valid OMB control number.

List of Subjects

48 CFR Part 1301

Acquisition regulations, Federal acquisition regulations,
Government procurement, Government contracts, Procurement, Reporting
and recordkeeping requirements.

48 CFR Part 1302

Definitions, Government procurement, Terms.

48 CFR Part 1303

Antitrust, Conflict of interests, Ethical conduct, Government
procurement, Reporting and recordkeeping requirements.

48 CFR Part 1304

Classified information, Computer technology, Government
procurement, Reporting and recordkeeping requirements.

48 CFR Part 1305

Government procurement, Reporting and recordkeeping requirements.

48 CFR Part 1306

Government procurement, Justifications, Sole source acquisitions.

48 CFR Part 1307

Acquisition planning, Government procurement, Inherently
governmental functions, Reporting and recordkeeping requirement.

48 CFR Part 1308

Government procurement, Printing.

48 CFR Part 1309

Debarment, Government procurement, Suspension, Reporting and
recordkeeping requirement.

48 CFR Part 1311

Government procurement, Liquidated damages, Market acceptance.

48 CFR Part 1312

Government procurement, Tailoring clauses, Tailoring provisions,
Tailoring terms and conditions.

48 CFR Part 1313

BPA, Blanket purchase agreement, Government procurement, Imprest
funds, Micro-purchase authority, Purchase order modifications, Small
business, Third-party drafts, Training.

48 CFR Part 1314

Equipment inspection, Government procurement, Pre-bid conference,
Pre-proposal conference, Reporting and recordkeeping requirements, Site
visit.

48 CFR Part 1315

Evaluation, Indefinite quantity, Inquiries, Government procurement,
Oral presentations, Proposal preparation, Reporting and recordkeeping
requirements, Should-cost review, Source selection, Unsolicited
proposals.

48 CFR Part 1316

Government procurement, Ombudsman.

48 CFR Part 1317

Multi-year contract, Congressional notification, Interagency
agreement.

48 CFR Part 1318

Emergency procurement, Reporting and recordkeeping requirements,
Contingency operation, Warrants.

48 CFR Part 1319

Partnership agreement, Set aside, Small business, SBA.

48 CFR Part 1322

Aged, Child labor, Civil rights, Equal employment opportunity,
Government procurement, Individuals with disabilities, Labor, Labor
disputes, Prisoners, Reporting and recordkeeping requirements,
Veterans, Wages, Work stoppages.

48 CFR Part 1323

Affirmative procurement program, Air pollution control, Drug abuse,
Drug-free workplace, Energy conservation, Environmental, Government
procurement, Hazardous substances, Recycling, Renewable energy, Water
pollution control.

48 CFR Part 1324

Freedom of Information, Government procurement, privacy.

48 CFR Part 1325

Buy American Act, Customs duties and inspection, Foreign
currencies, Foreign trade, Government procurement.

48 CFR Part 1326

Disaster assistance, Government procurement.

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48 CFR Part 1327

48 CFR Part 1328

Government procurement, Insurance, Reporting and recordkeeping
requirements, Surety bonds.

48 CFR Part 1329

Government procurement, Reporting and recordkeeping requirements,
Taxes, Tax exemptions.

48 CFR Part 1330

Accounting, Government procurement, Reporting and recordkeeping
requirements.

48 CFR Part 1331

Accounting, Government procurement, Reporting and recordkeeping
requirements.

48 CFR Part 1332

Electronic funds transfer, Government procurement, Reporting and
recordkeeping requirements.

48 CFR Part 1333

Administrative practice and procedure, Claims, Government
procurement.

48 CFR Part 1334

Earned value management, EVM, EVMS, Major system acquisition.

48 CFR Part 1335

FFRDC, Human subject.

48 CFR Part 1336

Evaluation boards, Government procurement, Reporting and
recordkeeping requirements, Selection.

48 CFR Part 1337

Contractor processing, Government Procurement, Information
Technology, Security, Service contracting, Standards.

48 CFR Part 1339

Contractor processing, Government procurement, Information
Technology, Security, Service contracting.

48 CFR Part 1341

Government procurement, Reporting and recordkeeping requirements,
Utilities.

48 CFR Part 1342

Accounting, Government procurement, Indirect cost rates, Postaward
conference, Reporting and recordkeeping requirements.

48 CFR Part 1344

Government procurement, Reporting and recordkeeping requirements.

48 CFR Part 1345

Government procurement, Government property, Reporting and
recordkeeping requirements.

48 CFR Part 1346

Government procurement, Inspection, Reporting and recordkeeping
requirements, Warranties.

48 CFR Part 1347

Freight, Government procurement, Marking, Reporting and
recordkeeping requirements, Transportation.

48 CFR Part 1348

Government procurement, Reporting and recordkeeping requirements,
Value Engineering Change Proposals (VECP).

48 CFR Part 1349

Criminal conduct, Default, Fraud, Government procurement, Reporting
and recordkeeping requirements.

48 CFR Part 1350

Government procurement, Hazardous risk, National defense, Nuclear
risk, Reporting and recordkeeping requirements.

48 CFR Part 1352

Government procurement, Matrix, Reporting and recordkeeping
requirements.

48 CFR Part 1353

Government procurement, Reporting and recordkeeping requirements.

48 CFR Part 1370

Period of performance, Pre-bid conference, Pre-proposal conference,
Site visit.

48 CFR Part 1371

Inspection, Guarantees, Liability, Liens, Ship construction, Ship
repair, Vessel, Insurance.

Dated: September 4, 2009.
John F. Charles,
Deputy Assistant Secretary for Administration.
For the reasons stated in the preamble, the Department of Commerce
proposes to revise 48 CFR Chapter 13 to read as follows:

CHAPTER 13--DEPARTMENT OF COMMERCE

SUBCHAPTER A--GENERAL

Part

1301 Department of Commerce Acquisition Regulations System.
1302 Definitions of words and terms.
1303 Improper business practices and personal conflicts of interest.
1304 Administration matters.

SUBCHAPTER B--COMPETITION AND ACQUISITION PLANNING

1305 Publicizing contact actions.
1306 Competition requirements.
1307 Acquisition planning.
1308 Required sources of supplies and services.
1309 Contractor qualifications.
1311 Describing agency needs.
1312 Acquisition of commercial items.

SUBCHAPTER C--CONTRACTING METHODS AND CONTRACT TYPES

1313 Simplified acquisition procedures.
1314 Sealed bidding.
1315 Contracting by negotiation.
1316 Types of contracts.
1317 Special contracting methods.
1318 Emergency acquisitions.

SUBCHAPTER D--SOCIOECONOMIC PROGRAMS

1319 Small business programs.
1322 Application of labor laws to government acquisitions.
1323 Environment, energy and water efficiency, renewable energy
technologies, occupational safety, and drug-free workplace.
1324 Protection of privacy and freedom of information.
1325 Foreign acquisition.
1326 Other socioeconomic programs.

SUBCHAPTER E--GENERAL CONTRACTING REQUIREMENTS

1327 Patents, data, and copyrights.
1328 Bonds and insurance.
1329 Taxes.
1330 Cost accounting standards administration.
1331 Contract cost principles and procedures.
1332 Contract financing.
1333 Protests, disputes, and appeals.

SUBCHAPTER F--SPECIAL CATEGORIES OF CONTRACTING

1334 Major system acquisition.
1335 Research and development contracting.
1336 Construction and architect-engineer contracts.
1337 Service contracting.
1339 Acquisition of information technology.
1341 Acquisition of utility services.

SUBCHAPTER G--CONTRACT MANAGEMENT

1342 Contract administration.
1344 Subcontracting policies and procedures.
1345 Government property.
1346 Quality assurance.
1348 Value engineering.
1349 Termination of contracts.
1350 Extraordinary contractual actions.

SUBCHAPTER H--CLAUSES AND FORMS

1352 Solicitation provisions and contract clauses.
1353 Forms.

[[Page 52548]]

SUBCHAPTER I--DEPARTMENT SUPPLEMENTAL REGULATIONS

1370 Universal solicitation provisions and contract clauses.
1371 Acquisitions involving ship construction and ship repair.

Subchapter A--General

PART 1301--DEPARTMENT OF COMMERCE ACQUISITION REGULATIONS SYSTEM

Sec.

1301.000 Scope of part.

Subpart 1301.1--Purpose, Authority, Issuance

1301.101 Purpose.
1301.103 Authority.
1301.104 Applicability.
1301.105 Issuance.
1301.105-1 Publication and code arrangement.
1301.105-2 Arrangement of regulations.
1301.105-3 Copies.

Subpart 1301.3--Agency Acquisition Regulations

1301.301 Policy.
1301.303 Publication and codification.
1301.304 Agency control and compliance procedures.

Subpart 1301.4--Deviations From the FAR

1301.403 Individual deviations.
1301.404 Class deviations.

Subpart 1301.6--Career Development, Contracting Authority, and
Responsibilities

1301.601 General.
1301.602 Contracting officers.
1301.602-1 Authority.
1301.602-170 Provisions and clauses.
1301.602-3 Ratification of unauthorized commitments.
1301.602-370 Ratification approval by Procurement Counsel.
1301.603 Selection, appointment, and termination of appointment.
1301.603-1 General.
1301.603-2 Selection.
1301.603-3 Appointment.
1301.603-4 Termination.
1301.670 Appointment of contracting officer's representative (COR).
1301.670-70 Provisions and clauses.
1301.671 Assignment of program and project managers.

Subpart 1301.7--Determinations and Findings

1301.707 Signatory authority.

Authority: 41 U.S.C. 414; 48 CFR 1.301-1.304.

1301.000 Scope of part.

This part sets out general Department of Commerce Acquisition
Regulation (CAR) policies, including information regarding the
maintenance and administration of the CAR, acquisition policies and
practices, and procedures for deviation from the CAR and the Federal
Acquisition Regulation (FAR) This part describes the Commerce
Acquisition Regulation in terms of establishment, relationship to the
Federal Acquisition Regulation, arrangement, applicability, and
deviation procedures.

Subpart 1301.1--Purpose, Authority, Issuance

1301.101 Purpose.

The CAR establishes uniform acquisition policies and procedures
that implement and supplement the FAR. If there is a discrepancy
between the CAR and FAR, the FAR will take precedence.

1301.103 Authority.

The CAR is issued under the authority of section 22 of the Office
of Federal Procurement Policy Act, as amended (41 U.S.C. 418b), and FAR
Subpart 1.3 by the Department Procurement Executive pursuant to a
delegation initiating from the Secretary of Commerce.

1301.104 Applicability.

The CAR applies to all Department of Commerce (DOC) acquisitions as
defined in Part 2 of the FAR, except where expressly excluded.

1301.105 Issuance.

1301.105-1 Publication and Code Arrangement.

(a) The CAR is published in the Federal Register, in cumulative
form in the Code of Federal Regulations (CFR), and is available online
at the U.S. Department of Commerce, Office of Acquisition Management
Web site.
(b) The CAR is issued as Chapter 13 of Title 48 of the CFR.

1301.105-2 Arrangement of regulations.

(a) General. The CAR is divided into the same parts, subparts,
sections, and subsections as the FAR.
(b) Numbering. If the DOC does not have supplemental regulations
there will be no corresponding coverage in the CAR, and there will be
gaps in the CAR numbering system.

1301.105-3 Copies.

(a) Copies of the CAR in Federal Register or CFR form may be
purchased from the Superintendent of Documents, Government Printing
Office, Washington, DC 20402.
(b) The CAR is available online at the U.S. Department of Commerce,
Office of Acquisition Management Web site.

Subpart 1301.3--Agency Acquisition Regulations

1301.301 Policy.

(a) The designee authorized to prescribe the CAR is set forth in
the Commerce Acquisition Manual (CAM) 1301.70.
(b) The DOC internal operating guidance and procedures are
contained in the CAM and other policy guidance documents issued by the
Procurement Executive relating to acquisitions. The DOC Contracting
Offices may issue additional guidance and procedures.

1301.303 Publication and codification.

(a) The CAR parallels the FAR in format, arrangement and numbering
system. Coverage within the CAR is identified by the prefix ``13'' or
``130'' followed by the complete FAR citation to the subsection level
(e.g., CAR coverage of FAR 1.602-1 is cited as 1301.602-1).
(b) Supplementary material without a FAR counterpart will be
codified using 70 and up as appropriate for the part, subpart, section,
or subsection number (e.g., Part 1370, subpart 1301.70, section
1301.370 or subsection 1301.301-70).

1301.304 Agency control and compliance procedures.

Operating unit counsel shall limit issuance of directives that
restrain the flexibilities found in the FAR.

Subpart 1301.4--Deviations From the FAR

1301.403 Individual deviations.

The designee authorized to approve individual deviations from the
FAR is set forth in CAM 1301.70.

1301.404 Class deviations.

The designee authorized to approve class deviations from the FAR is
set forth in CAM 1301.70.

Subpart 1301.6--Career Development, Contracting Authority, and
Responsibilities

1301.601 General.

The agency head for procurement matters is the Chief Financial
Officer/Assistant Secretary for Administration (CFO/ASA), unless
prohibited by statute. The authority for agency head for procurement
matters is delegated to the Procurement Executive as the authority to
establish lines of contracting authority within DOC and to implement
policies and procedures related to the acquisition process. Specific
contracting authorities are set forth in CAM 1301.70.

[[Page 52549]]

1301.602 Contracting officers.

1301.602-1 Authority.

In accordance with CAM 1301.70, only individuals who have been
certified as contracting officers through issuance of a Certificate of
Appointment by the Senior Bureau Procurement Official may exercise the
authority of DOC contracting officers. In addition to the authority to
enter into, administer, and terminate contracts, contracting officers
have been delegated certain functions as set out in Appendix A to CAM
1301.70.

1301.602-170 Provisions and clauses.

Insert clause 1352.201-70, Contracting Officer's Authority, in all
solicitations and contracts.

1301.602-3 Ratification of unauthorized commitments.

(a) Insert clause 1352.201-71, Ratification Release, in a contract
document under which payment is made for unauthorized commitments after
a ratification has been processed.
(b)(1) Unauthorized commitments occur when the Department accepts
goods or services in the absence of an enforceable contract entered
into by an authorized official. It is the policy of DOC that all
acquisitions are to be made only by Government officials having
authority to make such acquisitions. Acquisitions made by other than
authorized personnel are contrary to Departmental policy and the
Department is not bound by any formal or informal type of agreement or
contractual commitment which is made by persons who are not delegated
contracting authority. Payment for goods or services accepted in the
absence of an authorized commitment may be made only through the
ratification process. Unauthorized commitments may be considered
matters of serious misconduct and may subject the responsible employees
to appropriate disciplinary actions.
(2) The delegation of the ratification authority is set forth in
CAM 1301.70. All requests for ratification must fully explain the
circumstances that gave rise to the unauthorized commitment and detail,
if appropriate, any disciplinary action taken with respect to any
responsible employee. Ratifications may be approved only if all
criteria in FAR 1.602-3 have been met.

1301-602-370 Ratification approval by Procurement Counsel.

Ratifications may not be approved unless the concurrence of
Procurement Counsel is obtained.

1301.603 Selection, appointment, and termination of appointment.

1301.603-1 General.

The Department's procurement career management program and system
for the selection, appointment, and termination of appointment of
contracting officers are described in CAM 1301.6.

1301.603-2 Selection.

In addition to the criteria set forth in FAR 1.603-2, selection of
contracting officers shall be based upon Section 4 of CAM 1301.6.

1301.603-3 Appointment.

In addition to the criteria set forth in FAR 1.603-3, appointment
of contracting officers shall be based upon Section 4 of CAM 1301.6.

1301.603-4 Termination.

In addition to the criteria set forth in FAR 1.603-4, termination
of contracting officers shall be based upon Section 4 of CAM 1301.6.

1301.670 Appointment of contracting officer's representative (COR).

The Department's Contracting Officer's Representative certification
program for the nomination, appointment and cancellation of CORs is
described in CAM 1301.670.

1301.670-70 Provisions and clauses.

Insert clause 1352.201-72, Contracting Officer's Representative
(COR), in all solicitations and contracts where a COR will be
appointed.

1301.671 Assignment of program and project managers.

The Department's Program and Project Manager certification program
for the assignment and certification of Program and Project Managers is
described in CAM 1301.671.

Subpart 1301.7--Determinations and Findings

1301.707 Signatory authority.

Signatory authority for determinations and findings (D&Fs) is
specified in the FAR for the associated subject matter unless otherwise
noted in CAM 1301.70.

PART 1302--DEFINTIONS OF WORDS AND TERMS

Subpart 1302.1--Definitions
Sec.
1302.101 Definitions.
1302.170 Abbreviations.

Authority: 41 U.S.C. 414; 48 CFR 1.301--1.304.

Subpart 1302.1--Definitions

1302.101 Definitions.

Accountable Personal Property means all personal property for which
responsibility for control is formally assigned to an individual, and
official property records are maintained as set forth in DOC PPMM
Chapter 4.
Agency Head (or Head of Agency) (HA) means the Secretary of
Commerce, except, pursuant to Department Organization Order (DOO) 10-5,
Chief Financial Officer and Assistant Secretary for Administration, the
head of the agency for procurement matters shall be the Chief Financial
Officer and Assistant Secretary for Administration (CFO/ASA), unless a
statute provides that the authority of the Secretary is non-delegable.
Chief Acquisition Officer (CAO) means the Department's executive-
level non-career employee designated pursuant to the Services
Acquisition Reform Act to advise and assist the head of the agency and
other agency officials to ensure the mission of the agency is achieved
through the management of the agency's acquisition activities. The CFO/
ASA has been designated by the Head of the Agency as the Chief
Acquisition Officer for the Department of Commerce.
Civilian Agency Acquisition Council (CAAC) means the council that
assists the Administrator of General Services in developing and
maintaining the Federal Acquisition Regulation (FAR) System by
developing or reviewing all proposed changes to the FAR. The Council is
comprised of a representative designated by each of several Federal
departments and agencies, including the DOC. The CAAC coordinates its
activities with the Defense Acquisition Regulations Council (DARC). The
CAAC is authorized under 48 CFR 1.2.
Commerce Acquisition Manual (CAM) means non-regulatory uniform
policies and procedures for internal operations associated with
acquiring supplies and services within the Department that implements
and supplements the FAR and CAR.
Commerce Acquisition Regulation (CAR) means uniform acquisition
policies and procedures, which implement and supplement the FAR.
Contracting Activity means the operating units identified under the
definition of ``Operating Units'' below. Contracting activities may or
may not have authority to operate contracting offices (see definition
for Contracting Office).
Contracting Office means an office that awards or executes
contracts for supplies or services and performs post-

[[Page 52550]]

award functions. The operating units authorized to operate contracting
offices are identified in DAO 208-2.
Contracting Officer means an individual designated authority by the
Senior Bureau Procurement Official (BPO) to enter into, administer,
and/or terminate contracts and make related determinations and
findings. Only those individuals who have been certified as contracting
officers, through the issuance of a Certificate of Appointment
(Contracting Officer Warrant (SF 1402)), by the BPO in accordance with
the requirements and procedures of the CAR and the CAM may exercise the
authorities of contracting officers. However, by virtue of their
positions, the Head of the Agency, the Procurement Executive, and the
Heads of Operating Units are also designated as contracting officers.
Department or Departmental or DOC means the Department of Commerce.
Head of Agency (HA)--see definition for ``Agency Head.''
Head of Contracting Office (HCO) means those individuals designated
by the BPO to head the contracting offices within each operating unit
that has designated contracting authority to award and administer
contracts. In performing their duties, HCOs are empowered to the full
limits of the Department's contracting authority. The HCO must be a
procurement professional in the GS-1102 occupational series (or
equivalent OPM occupational designation). BPOs will issue each HCO a
Contracting Officer Warrant that delegates the authority to enter into,
administer, and/or terminate contracts and to make related
determinations and findings.
Head of the Contracting Activity (HCA) means, for purposes of
delegation of contracting authority, officials who are designated as
Heads of Operating Units (those who are assigned by the President or by
the Secretary to manage the primary or constituent operating units of
the DOC) in orders establishing the respective operating units, with
the exception of the Office of the Secretary. Such officials are
designated as the HCA for procurements initiated in support of the
procurement activities of that operating unit. The Chief Financial
Officer and Assistant Secretary for Administration has been designated
as the HCA for procurements initiated in support of the programs and
activities of the Office of the Secretary and all other Secretarial
Offices and Departmental Offices.
Office of Small and Disadvantaged Business Utilization (OSDBU), The
means the advocacy and advisory office responsible for promoting the
use of small, small disadvantaged, 8(a), women-owned, veteran-owned,
service-disabled veteran-owned, and HUBZone small businesses within the
Department acquisition process.
Office of the Assistant General Counsel for Administration,
Employment & Labor Law Division means the Department Legal Office that
provides advice and guidance to management regarding employment and
labor law issues, including the legal standards for taking adverse and
performance-based actions.
Office of the Assistant General Counsel for Administration, Ethics
Law and Program Division means the Department Legal Office that
provides advice and guidance regarding conflict of interest statutes,
ethics regulations, and related laws.
Operating Units are organizational entities outside the Office of
the Secretary charged with carrying out specified substantive functions
(i.e., programs) of the Department and are identified in DAO 208-2.
Procurement Counsel means, except for the Patent and Trademark
Office (PTO), the Office of the Assistant General Counsel for Finance &
Litigation, Contract Law Division, the office responsible for providing
legal review of applicable contract actions and procurement legal
advice to all operating units, and handling procurement-related
litigation. ``Procurement Counsel'' for all PTO procurement-related
actions means Office of General Law.
Procurement Executive (or Senior Procurement Executive (PE)) means
the official appointed pursuant to Executive Order 12931 and the
Services Acquisition Reform Act of 2003 to carry out the
responsibilities identified in both the Executive Order and the Act.
The Director for Acquisition Management is the Procurement Executive
for the Department of Commerce.
Senior Bureau Procurement Official (BPO) means the senior career
procurement official, within each operating unit that has been
delegated contracting authority, who is designated as the Senior Bureau
Procurement Official. The BPO must be a procurement professional who
has both experience and training in the area of Federal procurement and
contracting. HCAs may designate one BPO within their organization to
carry out the day-to-day functions of managing the contracting
activity. BPOs may also serve as the Head of Contracting Office. The
Procurement Executive will issue each BPO a Contracting Officer Warrant
which delegates the authority to enter into, administer, and/or
terminate contracts and to make related determinations and findings.

1302.170 Abbreviations.

AIR Additional Item Requirements
BPO Senior Bureau Procurement Official
CAAC Civilian Agency Acquisition Council
CAM Commerce Acquisition Manual
CAO Chief Acquisition Officer
CAR Commerce Acquisition Regulation
CFO/ASA Chief Financial Officer/Assistant Secretary for Administration
CFR Code of Federal Regulations
CO Contracting Officer
COR Contracting Officer's Representative
DAO Departmental Administrative Order
DOC Department of Commerce
DOO Departmental Organizational Order
D&F Determination and Findings
EVMS Earned Value Management System
FAR Federal Acquisition Regulation
HCA Head of Contracting Activity
HCO Head of Contracting Office
IRB Institutional Review Board
JOFOC Justification for Other than Full and Open Competition
NIST National Institute of Standards and Technology
NOAA National Oceanic and Atmospheric Administration
OCI Organizational Conflict of Interest
OCIO Office of the Chief Information Officer
OFPP Office of Federal Procurement Policy
OIG Office of Inspector General
OMB Office of Management and Budget
OS Office of the Secretary
OSDBU Office of Small and Disadvantaged Business Utilization
PE Procurement Executive
PTO Patent and Trademark Office
RFP Request for Proposals
SBA Small Business Administration
OU Operating Unit

PART 1303--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF
INTEREST

Subpart 1303.1--Safeguards
Sec.
1303.101 Standards of conduct.
1303.101-2 Solicitation and acceptance of gratuities by government
personnel.
1303.101-3 Agency regulations.
1303.104 Procurement integrity.
1303.104-4 Disclosure, protection and marking of contractor bid or
proposal information and source selection information.

[[Page 52551]]

1303.104-7 Violations or possible violations.
Subpart 1303.2--Contractor Gratuities to Government Personnel
1303.203 Reporting suspected violations of the gratuities clause.
1303.204 Treatment of violations.
Subpart 1303.3--Reports of Suspected Antitrust Violations.
1303.303 Reporting suspected antitrust violations.
Subpart 1303.4--Contingent Fees.
1303.405 Misrepresentations or violations of the covenant against
contingent fees.
Subpart 1303.5--Other Improper Business Practices.
1303.502 Subcontractor kickbacks.
1303.502-2 Subcontractor kickbacks.
Subpart 1303.6--Contracts With Government Employees or Organizations
Owned or Controlled by Them.
1303.602 Exceptions.
Subpart 1303.7--Voiding and Rescinding Contracts.
1303.704 Policy.
1303.705 Procedures.
Subpart 1303.8--Limitation on the Payment of Funds To Influence Federal
Transactions.
1303.804 Policy.
1303.806 Processing suspected violations.
Subpart 1303.9--Whistleblower Protections for Contractor Employees.
1303.905 Procedures for investigating complaints.
1303.906 Remedies.

Authority: 41 U.S.C. 414; 48 CFR 1.301--1.304.

Subpart 1303.1--Safeguards

1303.101 Standards of conduct.

1303.101-2 Solicitation and acceptance of gratuities by government
personnel.

(a) Suspected violations of the prohibition on soliciting and
accepting gratuities shall be reported to the Office of the Inspector
General in accordance with DAO 207-10, Inspector General
Investigations.
(b) To obtain legal advice regarding the solicitation and
acceptance of gratuities, contact the Office of the Assistant General
Counsel for Administration, Ethics Law and Program Division.

1303.101-3 Agency regulations.

The Department has issued rules implementing Executive Order 11222
prescribing employee standards of conduct (see DOC Office of General
Counsel Web site).

1303.104 Procurement integrity.

1303.104-4 Disclosure, protection and marking of contractor bid or
proposal information and source selection information.

Contractor bid or proposal information and source selection
information must be protected from unauthorized disclosure in
accordance with FAR Parts 3, 14 and 15, and CAM 1315.3.

1303.104-7 Violations or possible violations.

Suspected violations of the Procurement Integrity Act shall be
reported to the individuals designated in CAM 1301.70.

Subpart 1303.2--Contractor Gratuities to Government Personnel

1303.203 Reporting suspected violations of the gratuities clause.

Suspected violations of the Gratuities clause shall be reported to
the HCA in writing detailing the circumstances. The report must
identify the contractor and personnel involved, provide a summary of
the pertinent evidence and circumstances that indicate a violation, and
include any other available supporting documentation. The HCA will
evaluate the report, and, if the allegations appear to support a
violation, the matter will be referred to the Head of Contracting
Office with copies provided to the Senior Procurement Executive and the
DOC Office of Inspector General. See DAO 207-10 for procedures.

1303.204 Treatment of violations.

(a) The designee authorized to determine violations of the
Gratuities clause is set forth in CAM 1301.70.
(b) Upon receipt of an allegation or evidence of a violation of the
Gratuities clause, the designee shall conduct a fact-finding. If there
is a basis for further action, a signed notice shall be prepared and
sent to the contractor by certified mail, return receipt requested, or
any other method that provides signed evidence of receipt. If a reply
is not received from the contractor within 45 calendar days of sending
the notice, a decision shall be made on the appropriate action to be
taken. If a reply is received from the contractor within 45 calendar
days of sending the notice, the information in the reply must be
considered before making a decision on the appropriate action to be
taken. Upon request of the contractor, the contractor shall be provided
an opportunity to appear in person to present information concerning
the matter. A report shall be prepared following the presentation and
the information must be considered when making a decision. A decision
shall be made on the basis of all information available, including
findings of fact and oral or written information submitted by the
contractor. All mitigating factors shall be considered prior to making
a final decision concerning what action will be taken.

Subpart 1303.3--Reports of Suspected Antitrust Violations

1303.303 Reporting suspected antitrust violations.

Suspected anti-competitive practices and antitrust law violations,
as described in FAR 3.301 and FAR 3.303, shall be reported to the
Contract Law Division, by the HCO. A copy of the report shall be sent
to the Procurement Executive concurrently with the submission to the
Office of the Assistant General Counsel for Administration, Ethics Law
and Program Division. The Office of the Assistant General Counsel will
submit any required reports to the Attorney General.

Subpart 1303.4--Contingent Fees

1303.405 Misrepresentations or violations of the covenant against
contingent fees.

If the contracting officer has specific evidence or other
reasonable basis to believe that a violation of the Covenant Against
Contingent Fees has occurred, the matter shall be referred to the HCO,
who shall, in appropriate circumstances, take one or more of the
actions described in FAR 3.405(b). The HCO shall also refer the matter
to the DOC Office of the Inspector General as well as the Office of the
Assistant General Counsel for Administration, Ethics Law and Program
Division. The Office of the Assistant General Counsel for
Administration, Ethics Law and Program Division shall refer the matter
to the Department of Justice, as appropriate.

Subpart 1303.5--Other Improper Business Practices

1303.502 Subcontractor kickbacks.

1303.502-2 Subcontractor kickbacks.

Suspected violations of the Anti-Kickback Act of 1986 shall be
reported to the DOC Office of Inspector General.

[[Page 52552]]

Subpart 1303.6--Contracts with Government Employees or
Organizations Owned or Controlled by Them

1303.602 Exceptions.

The designee authorized to make an exception to the policy in FAR
3.601 is set forth in CAM 1301.70.

Subpart 1303.7--Voiding and Rescinding Contracts

1303.704 Policy.

The designee authorized to declare void and rescind contracts, in
cases in which there has been a final conviction for any violation of
18 U.S.C. 201-224, is set forth in CAM 1301.70.

1303.705 Procedures.

The designee authorized to declare a contract void and rescinded is
set forth in CAM 1301.70. The DOC will follow the procedures set forth
in FAR 3.705.

Subpart 1303.8--Limitation on the Payment of Funds To Influence
Federal Transactions

1303.804 Policy.

The original OMB Form LLL, Disclosure of Lobbying Activities, shall
be retained in the contract file and a copy shall be submitted to the
Office of the Assistant General Counsel for Administration, Ethics Law
and Program Division.

1303.806 Processing suspected violations.

Suspected violations of 31 U.S.C. 1352 shall be referred to the DOC
Office of Inspector General and the Senior Procurement Executive.

Subpart 1303.9--Whistleblower Protections for Contractor Employees

1303.905 Procedures for investigating complaints.

The designee authorized to take specified actions related to
Inspector General findings regarding whistleblower complaints of
contractor employees is set forth in CAM 1301.70.

1303.906 Remedies.

The designee authorized to determine whether a contractor has
subjected an employee to reprisal and to determine the appropriate
remedy is set forth in CAM 1301.70.

PART 1304--ADMINISTRATIVE MATTERS

Subpart 1304.2--Contract Distribution
Sec.
1304.201 Procedures.
1304.201-70 Accountable personal property.
Subpart 1304.6--Contract Reporting
1304.602 General.
1304.602-70 Federal Procurement Data System.
Subpart 1304.8--Government Contract Files
1304.804 Closeout of contract files.
1304.804-70 Contract closeout procedures.
1304.805 Storage, handling, and disposal of contract files.
1304.805-70 Storage, handling, and disposal of contract files.
Subpart 1304.13--Personal Identity Verification
1304.1301 Policy.

Authority: 41 U.S.C. 414; 48 CFR 1.301--1.304.

Subpart 1304.2--Contract Distribution

1301.201 Procedures.

1304.201-70 Accountable personal property.

Provide one copy of all contracts and purchase orders for
accountable personal property to the appropriate Departmental property
management office(s) for inclusion in the Department's personal
property system in accordance with the DOC Personal Property Management
Manual. Accountable personal property purchased with a Governmentwide
commercial purchase card is also to be reported to the property
management office.

Subpart 1304.6--Contract Reporting

1304.602 General.

1304.602-70 Federal Procurement Data System.

Departmental Federal Procurement Data System reporting procedures
are set forth in CAM 1304.602.

Subpart 1304.8--Government Contract Files

1304.804 Closeout of contract files.

1304.804-70 Contract closeout procedures.

CAM 1304.804 supplements FAR 4.804 with the Department's contract
closeout procedures.

1304.805 Storage handling and disposal of contract files.

1304.805-70 Storage, handling, and disposal of contract files.

CAM 1304.804 supplements FAR 4.805 with the Department's procedures
for storage, handling, and disposal of contract files.

Subpart 1304.13--Personal Identity Verification

1304.1301 Policy.

(a) Implementation of Federal Information Processing Standards
Publication (FIPS PUB) 201 and OMB guidance M-05-24 is set forth in DOC
Personal Identify Verification (PIV) Implementation Guidance, which is
available on the Office of Security Web site.
(b) The DOC official responsible for verifying contractor employee
personal identity is set forth in the DOC Personal Identify
Verification (PIV) Implementation Guidance.

Subchapter B--Competition and Acquisition Planning

PART 1305--PUBLICIZING CONTRACT ACTIONS

Subpart 1305.2--Synopses of Proposed Contract Actions.
Sec.
1305.202 Exceptions.
Subpart 1305.4--Release of Information
1305.403 Requests from Members of Congress.
1305.404 Release of long range acquisition estimates.
1305.404-1 Release procedures.
Subpart 1305.5--Paid Advertisements
1305.502 Authority.

Authority: 41 U.S.C. 414; 48 CFR 1.301--1.304.

Subpart 1305.2--Synopses of Proposed Contract Actions

1305.202 Exceptions.

The designee authorized to decide, in writing, that advance notice
through the GPE (Governmentwide Point of Entry) is not appropriate or
reasonable is set forth in CAM 1301.70.

Subpart 1305.4--Release of Information

1305.403 Requests from Members of Congress.

Requests from Members of Congress shall be handled in accordance
with the policies and procedures outlined in DAO 218-2.

1305.404 Release of long-range acquisition estimates.

1305.404-1 Release procedures.

The designee authorized to release long-range acquisition estimates
is set forth in CAM 1301.70.

[[Page 52553]]

Subpart 1305.5--Paid Advertisements

1305.502 Authority.

The designee authorized to provide authorization for publication of
paid advertisements in newspapers is set forth in CAM 1301.70. The
contracting officer shall obtain written authorization from the
designee.

PART 1306--COMPETITION REQUIREMENTS

Subpart 1306.2--Full and Open Competition After Exclusion of Sources
Sec.
1306.202 Establishing or maintaining alternative sources.
Subpart 1306.3--Other Than Full and Open Competition
1306.302 Circumstances permitting other than full and open
competition.
1306.302-5 Authorized or required by statute.
1306.303 Justification.
1306.303-70 Documentation and legal review of justifications.
1306.304 Approval of the justification.
Subpart 1306.5--Competition Advocates
1306.501 Requirement.

Authority: 41 U.S.C. 414; 48 CFR 1.301--1.304.

Subpart 1306.2--Full and Open Competition After Exclusion of
Sources

1306.202 Establishing or maintaining alternative sources.

The authority to exclude a source from a contract action in order
to establish or maintain an alternate source is set forth in CAM
1301.70

Subpart 1306.3--Other Than Full and Open Competition

1306.302 Circumstances permitting other than full and open
competition.

1306.302-5 Authorized or required by statute.

In accordance with Executive Order 13457, a sole source acquisition
may not be justified on the basis of any earmark included in any non-
statutory source, except when otherwise required by law or when an
earmark meets the criteria for funding set out in Executive Order
13457.

1306.303 Justifications.

1306.303-70 Documentation and legal review of justifications.

The justification for providing for other than full and open
competition in accordance with FAR 6.303-2 shall be provided on Form
CD-492, Justification for Other than Full and Open Competition. If the
estimated value of the procurement is over legal review thresholds,
concurrence by the Procurement Counsel is required.

1306.304 Approval of the justification.

The designee authorized to approve justifications for other than
full and open competition at the dollar thresholds in FAR 6.304 is set
forth in CAM 1301.70.

Subpart 1306.5--Competition Advocates

1306.501 Requirement.

The designee authorized to designate a Competition Advocate for the
Department and each procuring activity is set forth in CAM 1301.70.

PART 1307--ACQUISITION PLANNING

Subpart 1307.1--Acquisition Plans
Sec.
1307.102 Policy.
1307.103 Agency head responsibilities.
1307.105 Contents of written acquisition plans.
Subpart 1307.3--Contractor versus Government Performance
1307.302 Policy.
Subpart 1307.5--Inherently Governmental Functions
1307.503 Policy.

Authority: 41 U.S.C. 414; 48 CFR 1.301-1.304.

Subpart 1307.1--Acquisition Plans

1307.102 Policy.

In accordance with FAR 7.102, it is the Department's policy to
perform acquisition planning and conduct market research in order to
promote the acquisition of commercial items and provide for full and
open competition.

1307.103 Agency-head responsibilities.

The designee authorized as responsible for compliance with FAR
7.103 is set forth in CAM 1301.70.

1307.105 Contents of written acquisition plans.

Information on the contents of Acquisition Plans is set forth in
CAM 1307.1.

Subpart 1307.3--Contractor versus Government Performance

1307.302 Policy.

The Department's competitive sourcing policy and procedures are set
forth in CAM 1307.370.

Subpart 1307.5--Inherently Governmental Functions

1307.503 Policy.

All procurement request packages submitted by program offices to
initiate a procurement action for services shall contain a written
determination by the designated requirements official that affirms that
none of the functions to be performed in the statement of work are
inherently governmental. This policy applies to all services other than
personal services issued under statutory authority. If the contracting
officer determines that there are substantial questions whether the
work statement involves performance of inherently governmental
functions, the contracting officer shall submit the matter for review
by Procurement Counsel. Disagreements regarding the determination shall
be resolved by the Head of Contracting Office (HCO) after consultation
with counsel.

PART 1308--REQUIRED SOURCES OF SUPPLIES AND SERVICES

Subpart 1308.8--Acquisition of Printing and Related Supplies
Sec.
1308.802 Policy.
1308.802-70 Printing.

Authority: 41 U.S.C. 414; 48 CFR 1.301-1.304.

Subpart 1308.8 -Acquisition of Printing and Related Supplies

1308.802 Policy.

The designee authorized as the Department's central printing
authority is set forth in CAM 1301.70.

1308.802-70 Printing.

Insert clause 1352.208-70, Restrictions on Printing and
Duplicating, in all solicitations and contracts when printing documents
may be required in the performance of the contract.

PART 1309--CONTRACTOR QUALIFICATIONS

Subpart 1309.2--Qualifications Requirements
Sec.
1309.202 Policy.
1309.206 Acquisitions subject to qualification requirements.
1309.206-1 General.
Subpart 1309.4--Debarment, Suspension, and Ineligibility
1309.403 Definitions.
1309.405 Effect of listing.
1309.405-1 Continuation of current contracts.
1309.405-2 Restrictions on subcontracting.
1309.406 Debarment.

[[Page 52554]]

1309.406-1 General.
1309.406-3 Procedures.
1309.407 Suspension.
1309.407-1 General.
1309.407-3 Procedures.
Subpart 1309.5--Organizational and Consultant Conflicts of Interest
1309.503 Waiver.
1309.503-70 Waiver.
1309.506 Procedures.
1309.507 Solicitation provisions and contract clauses.
1309.507-1 Solicitation provisions.
1309.507-2 Contract clauses.

Authority: 41 U.S.C. 414; 48 CFR 1.301--1.304.

Subpart 1309.2--Qualifications Requirements

1309.202 Policy.

(a) The designee authorized to establish qualification requirements
is set forth in CAM 1301.70.
(b) The designee authorized to waive the requirements of 9.202
(a)(1)(ii) through (4) for up to 2 years with respect to the item
subject to the qualification requirement is set forth in CAM 1301.70.
This waiver authority does not apply to the qualification requirements
contained in a qualified product list, qualified manufacturer list, or
qualification bidders list.
(c) The designee authorized to approve proceeding with a
procurement, rather than delay the award in order to provide a
potential offeror an opportunity to demonstrate its ability to meet the
standards specified in the qualifications, is set forth in CAM 1301.70.

1309.206 Acquisitions subject to qualification requirements.

1309.206-1 General.

When the designee authorized in CAM 1301.70 determines that an
emergency exists, or elects before or after award not to enforce a
qualification requirement it had established, the qualification
requirement may not be thereafter enforced unless the agency complies
with FAR 9.202(a).

Subpart 1309.4--Debarment, Suspension, and Ineligibility

1309.403 Definitions.

The designees authorized as the Debarring and Suspending Officials
are set forth in CAM 1301.70.

1309.405 Effect of listing.

(a) Contracting officers shall review the Excluded Parties List
System (EPLS) listing for contractors after the opening of bids or
receipt of proposals and, again, immediately prior to award.
(b) The designee authorized to determine that a compelling reason
exists to do business with a debarred/suspended contractor is set forth
in CAM 1301.70. This designation does not apply to FAR 23.506(e).

1309.405-1 Continuation of current contracts.

(a) The designee authorized to direct the discontinuance of a
contract or subcontract because of a debarment, suspension or proposed
debarment is set forth in CAM 1301.70.
(b) A written determination must be issued by the designee
authorized in CAM 1301.70 before the following actions can be taken
with a contractor that is debarred, suspended or proposed for
debarment:
(1) Place any orders exceeding the maximum on an indefinite
delivery contract;
(2) Place orders under Federal supply schedule contracts, blanket
purchase orders or basic ordering agreements; or
(3) Add new work or exercise options that extend the duration of a
current contract or order.

1309.405-2 Restrictions on subcontracting.

The designee authorized to provide, in writing, compelling reasons
for allowing Government consent to subcontracts with a contractor who
is debarred, suspended or proposed for debarment is set forth in CAM
1301.70.

1309.406 Debarment.

1309.406-1 General.

Debarments and proposed debarments shall be effective throughout
the Executive branch of the Government unless the designee authorized
in CAM 1301.70 states in writing compelling reasons justifying DOC
doing business with the contractor.

1309.406-3 Procedures.

(a) Investigation and referral. DOC employees shall immediately
refer any cause that might serve as the basis for debarment through the
contracting officer to the debarring official.
(b) Decision-making process. (1) Procedures shall afford the
contractor, and any named affiliates, an opportunity to submit
information and argument in opposition to the proposed debarment. This
may be done in person, in writing or through a representative.
(2) In actions not based upon a conviction or civil judgment, where
the contractor's submission raises a genuine dispute over facts
material to the proposed debarment, the following procedures will be
followed:
(i) Provide the contractor an opportunity to appear with counsel,
submit documentary evidence, present witnesses and confront any person
the agency presents;
(ii) A transcribed record of the proceeding will be made, unless
the agency and contractor mutually agree to waive the requirement for a
transcript. This transcribed record is available to the contractor at
cost.
(c) Notice of proposal to debar. A notice of proposed debarment
shall be issued by the debarring official in accordance with FAR 9.406-
3(c)(1) through (7).
(d) Debarring official's decision. (1) For actions based upon a
conviction or civil judgment, or when there is no authentic dispute
over material facts, the debarring official's decision shall be based
on all of the information in the administrative record plus any
contractor-submitted data. If there is no suspension in effect, the
decision shall be rendered within 30 working days after receipt of any
information and argument submitted by the contractor. The debarring
official can extend this timeframe for good cause.
(2)(i) When necessary, written findings of fact shall be prepared
as to disputed material facts. The debarring official will utilize the
information in the written findings of fact, the data submitted by the
contractor plus any other information in the administrative record to
develop the decision.
(ii) While the debarring official may refer matters involving
disputed material facts to another official for findings of fact, the
debarring official can disregard any such findings in whole or in part
upon a determination that they are clearly erroneous.
(iii) After the conclusion of proceedings with respect to disputed
facts, the debarring official will make a decision.
(3) When the proposed debarment is not based upon a conviction or
civil judgment, the reason for debarment must be based on a
preponderance of the evidence.
(e) Notice of debarring official's decision. FAR 9.406-3(e)(1)
establishes the notification procedures when a debarment has been
imposed, while FAR 9.406-3(e)(2) establishes the procedure when a
debarment is not imposed.
(f) Procurement counsel shall assist and advise the debarring
official at each stage of the decision-making process.

1309.407 Suspension.

1309.407-1 General.

Suspensions shall be effective throughout the executive branch of
the Government, unless the designee set

[[Page 52555]]

forth in CAM 1301.70 states in writing compelling reasons for
continuing to do business with a suspended contractor.

1309.407-3 Procedures.

(a) Investigation and referral. DOC employees shall immediately
refer any cause that might serve as the basis for suspension through
the contracting officer to the suspending official.
(b) Decision-making process. (1) Procedures shall afford the
contractor, and any named affiliates, an opportunity to submit
information and argument in opposition to the proposed suspension. This
may be done in person, in writing or through a representative.
(2) In actions not based upon an indictment, where the contractor's
submission raises a genuine dispute over facts material to the proposed
suspension and if no determination has been made, on the basis of
Department of Justice advice, that substantial interests of the
Government in pending or contemplated legal proceedings based on the
same facts as the suspension would be prejudiced, the following
procedures will be followed:
(i) Provide the contractor an opportunity to appear with counsel,
submit documentary evidence, present witnesses and confront any person
the agency presents;
(ii) A transcribed record of the proceeding will be made, unless
the agency and contractor mutually agree to waive the requirement for a
transcript. This transcribed record is available to the contractor at
cost.
(c) Notice of suspension. A notice of suspension shall be issued by
the suspending official in accordance with FAR 9.407-3(c)(1) through
(6).
(d) Suspending official's decision. (1) For actions based upon an
indictment, when there is no authentic dispute over material facts, in
which additional proceedings to determine disputed material facts have
been denied on the basis of Department of Justice advice, the
suspending official's decision shall be based on all of the information
in the administrative record plus any contractor-submitted data.
(2)(i) When necessary, written findings of fact shall be prepared
as to the disputed material facts. The suspending official will utilize
the information in the written findings of fact, the data submitted by
the contractor plus any other information in the administrative record
to develop the decision.
(ii) While the suspending official may refer matters involving
disputed material facts to another official for findings of fact, the
suspending official can disregard any such findings in whole or in part
upon a determination that they are clearly erroneous.
(iii) After the conclusion of proceedings with respect to disputed
facts, the suspending official will make a decision.
(3) The suspension may be modified or terminated by the suspending
official. However such a decision shall be without prejudice to the
subsequent imposition of:
(i) Suspension by any other agency; or
(ii) Debarment by any agency.
(4) The suspending official's decision shall be sent to the
contractor and any affiliates involved, in writing, by certified mail,
return receipt requested.
(e) Procurement counsel shall assist and advise the suspending
official at each stage of the decision-making process.

Subpart 1309.5--Organizational and Consultant Conflicts of Interest

1309.503 Waiver.

1309.503-70 Waiver.

(a) The need for a waiver of an organizational conflict of interest
(OCI) may be identified by the contracting officer or by a written
request submitted by an offeror or contractor. The contracting officer
shall review all of the relevant facts and shall refer the matter to
the Senior Bureau Procurement Official, who shall make a written
recommendation to the Head of Contracting Activity whether a waiver
should be granted to allow for a contract award or for continuation of
an existing contract.
(b) Criteria for Waiver of OCIs. Issuance of a waiver shall be
limited to those situations in which:
(1) The work to be performed under contract is vital to the agency;
(2) There is no party other than the conflicted party that can
perform the contract at issue; and
(3) Contractual and/or technical review and supervision methods
cannot be employed to mitigate the conflict.

1309.506 Procedures.

The contracting officer shall resolve an actual or potential OCI in
a manner consistent with the approval or direction of the designee
authorized in CAM 1301.70. If the responsible contracting officer is
also the authorized designee in CAM 1301.70, the contracting officer
must obtain approval from the Senior Bureau Procurement Official.

1309.507 Solicitation provisions and contract clauses.

1309.507-1 Solicitation provisions.

(a) Insert provision 1352.209-70, Potential Organizational Conflict
of Interest, substantially as written, in solicitations when the
contracting officer determines there is a potential organizational
conflict of interest.
(b) Insert the clause with its Alternate I when the contracting
officer determines the basic clause should not be modified.

1309.507-2 Contract clauses.

(a) In accordance with FAR 9.507-2, insert clause 1352.209-71,
Limitation of Future Contracting, substantially as written, when the
contractor's eligibility for future prime contract or subcontract
awards shall be restricted because of services being provided as stated
in FAR 9.505-1 through 9.505-4.
(1) Insert the basic clause when the contractor will be providing
systems engineering and/or technical direction. (See FAR 9.505-1)
(2) Insert the clause with its Alternate I when the contractor will
be preparing specifications or work statements. (See FAR 9.505-2)
(3) Insert the clause with its Alternate II when the contractor
will be providing technical evaluation or advisory and assistance
services. (See FAR 9.505-3)
(4) Insert the clause with its Alternate III when the contractor
will be obtaining access to proprietary information. (See FAR 9.505-4)
(5) Insert the clause with its Alternate IV when the contract is a
task order contract. The contracting officer may modify Alternate IV to
include a list of systems for which task orders may be issued and
indicate which organizational conflict of interest provision in
paragraph (a)(2) of this clause shall apply.
(6) Insert the clause with its Alternate V when the contract
provides for delivery orders. The contracting officer shall indicate in
each delivery order which organizational conflict of interest provision
in paragraph (a)(2) of this clause shall apply.
(7) Insert the language in Alternate VI when it is necessary to
have the restrictions of this clause included in all or some
subcontracts, teaming arrangements, and other agreements calling for
performance of work related to the contract.
(b) Insert clause 1352.209-72, Restrictions against Disclosure, in
service contracts, including architect-engineer contracts, and supply
and construction contracts requiring a restriction on the release of
information

[[Page 52556]]

developed or obtained in connection with performance of the contract.
(c) Insert the clause 1352.209-73, Compliance with the Laws, in all
solicitations and contracts.
(d) Insert the clause 1352.209-74, Organizational Conflict of
Interest, in all solicitations and contracts.
(e) Insert clause 1352.209-75, Title 13 and Non-Disclosure
Requirements, in all solicitations and contracts for services where the
contractor will have access to Title 13 data.

PART 1311--DESCRIBING AGENCY NEEDS

Subpart 1311.1--Selecting and Developing Requirements Documents
Sec.
1311.103 Market acceptance.
Subpart 1311.5--Liquidated Damages.
1311.501 Policy.

Authority: 41 U.S.C. 414; 48 CFR 1.301-1.304.

Subpart 1311.1--Selecting and Developing Requirements Documents

1311.103 Market acceptance.

The designee authorized as the head of the agency is set forth in
CAM 1301.70.

Subpart 1311.5--Liquidated Damages

1311.501 Policy.

The designee authorized as the head of the agency is set forth in
CAM 1301.70.

PART 1312--ACQUISITION OF COMMERCIAL ITEMS

Subpart 1312.3--Solicitation Provisions and Contract Clauses for the
Acquisition of Commercial Items
Sec.
1312.302 Tailoring of provisions and clauses for the acquisition of
commercial items.

Authority: 41 U.S.C. 414; 48 CFR 1.301-1.304.

Subpart 1312.3--Solicitation Provisions and Contract Clauses for
the Acquisition of Commercial Items

1312.302 Tailoring of provisions and clauses for the acquisition of
commercial items.

The authority for approving a request for waiver to tailor a
clause, or otherwise include any additional terms or conditions in a
solicitation or contract in a manner that is inconsistent with
customary commercial practice, is set forth in CAM 1301.70.

Subchapter C--Contracting Methods and Contract Types

PART 1313--SIMPLIFIED ACQUISITION PROCEDURES

Subpart 1313.1--Procedures
Sec.
1313.106 Soliciting competition, evaluation of quotations or offers,
award and documentation.
1313.106-2-70 Evaluation of solicitations.
Subpart 1313.2--Actions At or Below the Micro Purchase Threshold
1313.201 General.
Subpart 1313.3--Simplified Acquisitions Methods
1313.301 Governmentwide commercial purchase card.
1313.302 Purchase orders.
1313.302-1-70 Non-commercial purchase orders.
1313.302-3 Obtaining contractor acceptance and modifying purchase
orders.
1313.303 Blanket purchase agreements (BPAs).
1313.303-5 Purchases under BPAs.
1313.305 Imprest funds and third party drafts.
1313.305-1 General.

Authority: 41 U.S.C. 414; 48 CFR 1.301-1.304.

Subpart 1313.1--Procedures

1313.106 Soliciting competition, evaluation of quotations or offers,
award and documentation.

1313.106-2-70 Evaluation of solicitations.

All solicitations using simplified acquisition procedures in FAR
Part 13 must include provision 1352.213-70, Evaluation Utilizing
Simplified Acquisition Procedures, or similar language setting out
evaluation criteria.

Subpart 1313.2--Actions At or Below the Micro Purchase Threshold

1313.201 General.

DOC employees, other than warranted contracting officers, must be
delegated micro-purchase authority by the designee set forth in CAM
1301.70 according to FAR 1.603-3(b), and must be trained pursuant to
CAM 1313.301.

Subpart 1313.3--Simplified Acquisitions Methods

1313.301 Governmentwide commercial purchase card.

The Department's procedures for the use and control of the
Governmentwide commercial purchase card are set forth in CAM 1313.301.

1313.302 Purchase orders.

1313.302-1-70 Non-commercial purchase orders.

Insert provision 1352.213-71, Instructions for Submitting
Quotations under the Simplified Acquisition Threshold--Non-Commercial,
or similar language in all solicitations for non-commercial purchase
orders under the simplified acquisition threshold. The contracting
officer shall indicate whether electronic submissions of quotations
will be accepted. Paragraph (b)(4) of provision 1352.213-71 may be
tailored based on the evaluation factors.

1313.302-3 Obtaining contractor acceptance and modifying purchase
orders.

A contractor's written acceptance of a purchase order modification
is required, unless the contracting officer determines otherwise.

1313.303 Blanket Purchase Agreements (BPAs).

1313.303-5 Purchases under BPAs.

(a) Individual purchases shall not exceed the simplified
acquisition threshold, subject to the following:
(1) The limitations for individual purchases against BPAs
established against Federal Supply Schedule contracts shall be those
set forth in the terms and conditions of the schedule contract.
(2) The limitations for individual purchases for commercial item
acquisitions against BPAs established under FAR Subpart 13.5 ``Test
Program for Certain Commercial Items'' is the simplified acquisition
threshold set forth in FAR Subpart 13.5.

1313.305 Imprest funds and third party drafts.

1313.305-1 General.

(a) Third-Party Drafts. Third-party drafts are not authorized for
use by Department of Commerce agencies.
(b) Imprest Funds. The Imprest Fund Policy Directive, issued
November 9, 1999, by the Department of Treasury, required that all
Federal agencies eliminate agency use of imprest funds by October 1,
2001, except where provided under the Imprest Fund Policy Directive.
Requests for exceptions to the requirements of the Imprest Fund Policy
Directive should be addressed to DOC's Director of Financial
Management. In the case of an approved exception, DOC's procedures for
using imprest funds can be found in the Cash Management Policies and
Procedures Handbook, available at the Department of Commerce, Office of
Financial Management Web site. A copy of all approved exceptions shall
be submitted

[[Page 52557]]

to the Senior Bureau Procurement Official.

PART 1314--SEALED BIDDING

Subpart 1314.2--Solicitation of Bids
Sec.
1314.201 Preparation of invitation for bids.
1314.201-7 Contract clauses.
Subpart 1314.4--Opening of Bids and Awards of Contracts.
1314.404 Rejection of bids.
1314.404-1 Cancellation of invitations after opening.
1314.407 Mistakes in bids.
1314.407-3 Other mistakes disclosed before award.
1314.409 Information to bidders.

1314.409-1 Award of unclassified contracts.

Authority: 41 U.S.C. 414; 48 CFR 1.301-1.304.

Subpart 1314.2--Solicitation of Bids

1314.201 Preparation of invitation for bids.

1314.201-7 Contract clauses.

The designee authorized to waive the requirement for inclusion of
FAR clause 52.214-27 ``Price Reduction for Defective Cost and Pricing
Data--Modifications--Sealed Bidding'' in a contract with a foreign
government or agency of that government is set forth in CAM 1301.70.

Subpart 1314.4--Opening of Bids and Awards of Contracts

1314.404 Rejection of bids.

1314.404-1 Cancellation of invitations after opening.

The designee authorized to make the determinations prescribed in
FAR 14.401-1(c) and (f) are set forth in CAM 1301.70.

1314.407 Mistakes in bids.

1314.407-3 Other mistakes disclosed before award.

The designee authorized to make the determinations prescribed in
FAR 14.407-3(a), (b), (c) and (d) is set forth in CAM 1301.70.
Concurrence of Procurement Counsel shall be obtained before issuance of
any determination under this section.

1314.409 Information to bidders.

1314.409-1 Award of unclassified contracts.
Requests for records shall be governed by the procedures outlined
in DAO 205-14 and 15 CFR Part 4.

PART 1315--CONTRACTING BY NEGOTIATION

Subpart 1315.2--Solicitation and Receipt of Proposals and Information.
Sec.
1315.204 Contract format.
1315.204-570 Part IV representations and instructions.
1315.209 Solicitation provisions and contract clauses.
Subpart 1315.3--Source Selection.
1315.303 Responsibilities.
1315.305 Proposal evaluation.
Subpart 1315.4--Contract Pricing.
1315.407 Special cost or pricing areas.
1315.407-4 Should-cost review.
Subpart 1315.6--Unsolicited Proposals.
1315.602 Policy.
1315.603 General.
1315.604 Agency points of contact.
1315.606 Agency procedures.
1615.606-2 Evaluation.

Authority: 41 U.S.C. 414; 48 CFR 1.301-1.304.

Subpart 1315.2--Solicitation and Receipt of Proposals and
Information

1315.204 Contract format.

The designee authorized to grant exemptions from the uniform
contract format is set forth in CAM 1301.70.

1315.204-570 Part IV representations and instructions.

(a) Section L, Instructions, conditions, and notices to offerors or
respondents. (1) The contracting officer shall insert the provision
1352.215-70, Proposal Preparation, in all solicitations. Contracting
officers should tailor the provision to best meet the Government's
needs. Information requested from offerors in Volume II-Technical
Proposal, must correspond to the evaluation factors. Contracting
officers should not request information that will not be evaluated in
accord with the stated technical evaluation factors. Should electronic
submission be allowed by the CO, specific instructions must be added.
(2) Insert a provision similar to 1352.215-71, Instructions for
Oral Presentations, in solicitations when oral presentations will be
used. Contracting officers shall tailor the provision to suit their
acquisition.
(3) The contracting officer shall insert the provision 1352.215-72,
Inquiries, in solicitations as determined by the CO. This provision may
be modified to satisfy the needs of specific procurements.
(b) Section M, Evaluation factors for award. (1) The contracting
officer shall insert provision 1352.215-73, Evaluation Quantities--
Indefinite Quantity Contract, in solicitations for indefinite quantity
and requirements contracts, as appropriate. This provision may be
modified to satisfy the needs of specific procurements.
(2) The contracting officer shall insert the provision similar to
1352.215-74, Best Value Evaluation, for competitive, best value
procurements, tailoring the language as appropriate. If clause
1352.215-74, Best Value Evaluation, is used, then clause 1352.215-75
Evaluation Criteria, must be used.
(3) The contracting officer shall insert a provision in all
solicitations similar to 1352.215-75, Evaluation Criteria, to specify
evaluation criteria, tailoring the language as appropriate. If the
basis for award is lowest price technically acceptable, this must be
stated.
(4) The contracting officer shall insert provision 1352.215-76,
Cost or Pricing Data, in all solicitations when cost or pricing data is
required under FAR subpart 15.4.

1315.209 Solicitation provisions and contract clauses.

The designee authorized to waive the examination of records by the
Comptroller General is set forth in CAM 1301.70.

Subpart 1315.3--Source Selection

1315.303 Responsibilities.

The contracting officer is designated as the source selection
authority for competitive negotiated acquisitions of less than
$10,000,000. The source selection authority for large dollar
competitive negotiated acquisitions of $10,000,000 or more is the head
of the operating unit. The head of the operating unit may re-delegate
the authority to a Department manager who is at an organizational level
above the contracting officer and who has sufficient rank and
professional experience to effectively carry out the functions of a
source selection authority.

1315.305 Proposal evaluation.

At the discretion of the contracting officer, cost information may
be provided to members of the technical evaluation team.

Subpart 1315.4--Contract Pricing

1315.407 Special cost or pricing areas.

1315.407-4 Should-cost review.

The should-cost review report shall include all elements listed in
FAR 15.407-4(a)(1) and be provided to the contracting officer for use
in negotiations.

[[Page 52558]]

Subpart 1315.6--Unsolicited Proposals

1315.602 Policy.

In accord with FAR 16.602, the DOC encourages the submission of new
and innovative ideas which support the DOC mission.

1315.603 General.

DOC will accept for review and consideration unsolicited proposals
from any entity. DOC will not pay any costs associated with the
preparation of unsolicited proposals. Proposals which do not meet the
definition and applicable content and marking requirements of FAR 15.6
will not be considered under any circumstances and will be returned to
the submitter. Unsolicited proposals may not be submitted
electronically.

1315.604 Agency points of contact.

(a) Unsolicited proposals are to be submitted to the appropriate
DOC contracting office. Any person or entity considering the submission
of an unsolicited proposal should first determine, based on the subject
matter of the proposal, to which DOC operating unit the proposal
applies. Proposers should contact the applicable operating unit
contracting office to determine procedures for submission and to whom
to send the proposal.
(b) Program offices must immediately transmit any unsolicited
proposals sent to them to their contracting office. If there is a
question concerning which operating unit should evaluate an unsolicited
proposal, the contracting office shall identify the proper office, in
coordination with the Office of Acquisition Management, if necessary,
and transmit the proposal to the applicable contracting office.

1315.606 Agency procedures.

(a) The operating unit contracting office is designated as the
point of contact for receipt of unsolicited proposals. Persons within
DOC (e.g. technical personnel) who receive unsolicited proposals shall
forward all documents to their cognizant contracting office.
(b) Within ten working days after receipt by the contracting office
of an unsolicited proposal, the contracting office shall review the
proposal and determine whether the proposal meets the content and
marking requirements of FAR 15.6. If the proposal does not meet these
requirements, it shall be returned to the submitter, giving the reasons
for noncompliance.

1315.606-2 Evaluation.

(a) If the contracting officer determines, upon initial review,
that the unsolicited proposal meets all criteria in FAR 15.606-1, the
contracting officer will acknowledge receipt of the proposal,
coordinate evaluation with the program office, and provide to the
submitter an estimated date that evaluation of the proposal is expected
to be completed. The contracting officer shall transmit the proposal to
the program office for evaluation, marking it in accord with FAR
15.609(d). If the estimated date for completion of the evaluation
cannot be met, the submitter should be informed in a timely manner and
provided with a revised evaluation completion date.
(b) The evaluating office shall not reproduce or disseminate the
proposal to other offices without the consent of the contracting
officer. If the evaluating office requires additional information from
the proposer, the evaluator shall request the information through the
contracting officer, who will contact the proposer. The evaluator shall
not communicate directly with the proposer.
(c) Evaluators shall notify the contracting officer of their
recommendations when the evaluation is complete. Following evaluation,
the contracting officer shall proceed in accord with FAR 15.607.

PART 1316--TYPES OF CONTRACTS

Subpart 1316.1--Selecting Contract Types
Sec.
1316.103 Negotiating contract type.
1316.103-70 Identifying contract type.
Subpart 1316.2--Fixed Price Contracts
1316.203 Fixed price contracts with economic price adjustment.
1316.203-4 Contract clauses.
1316.206 Fixed-ceiling-price contracts with retroactive price
redetermination.
1316.206-3 Limitations.
Subpart 1316.3--Cost-Reimbursement Contracts
1316.307 Contract clauses.
Subpart 1316.4--Incentive Contracts
1316.405 Cost-reimbursement incentive contracts.
1316.405-2 Cost-plus-award-fee contracts.
1316.406 Contract clauses.
Subpart 1316.5--Indefinite Delivery Contracts
1316.501-2-70 Task orders.
1316.505 Ordering.
1316.506 Solicitation provisions and contract clauses.
Subpart 1316.6--Time-and-Materials, Labor-Hour, and Letter Contracts
1316.601 Time-and-materials contracts.
1316.601-70 Contract clauses.
1316.602 Labor-hour contracts.
1316.602-70 Contract clauses.
1316.603 Letter contracts.
1316.603-2 Application.
1316.603-3 Limitations.

Authority: 41 U.S.C. 414; 48 CFR 1.301-1.304.

Subpart 1316.1--Selecting Contract Types

1316.103 Negotiating contract type.

1316.103-70 Identifying contract type.

The type of contract shall be stated in each contract awarded.

Subpart 1316.2--Fixed-Price Contracts

1316.203 Fixed-price contracts with economic price adjustment.

1316.203-4 Contract clauses.

Contracting officers shall use an economic price adjustment clause
based on cost indexes of labor or material after obtaining approval for
use of the clause from the head of the contracting office.

1316.206 Fixed-ceiling-price contract with retroactive price
redetermination.

1316.206-3 Limitations.

The designee authorized to approve use of fixed-ceiling-price
contracts with retroactive price redetermination is set forth in CAM
1301.70.

Subpart 1316.3--Cost-Reimbursement Contracts

1316.307 Contract clauses.

(a) Insert a clause that is substantially the same as 1352.216-70,
Estimated and Allowable Costs, in all cost-reimbursement contracts.
(b) Insert a clause similar to 1352.216-71, Level of Effort (Cost-
Plus-Fixed-Fee, Term Contract), in Cost-Plus-Fixed-Fee, Level of Effort
contracts.

Subpart 1316.4--Incentive Contracts

1316.405 Cost-reimbursement incentive contracts.

1316.405-2 Cost-plus-award-fee contracts.

Insert clause 1352.216-72, Determination of Award Fee, in all cost-
plus-award-fee contracts.

1316.406 Contract clauses.

Insert a clause substantially the same as 1352.216-73, Distribution
of Award Fee, in all cost-plus-award-fee solicitations and contracts,
as determined by the contracting officer.

Subpart 1316.5--Indefinite-Delivery Contracts

1316.501-2-70 Task orders.

Insert clause 1352.216-74, Task Orders, or a substantially similar
clause in task order solicitations and contracts, making changes, as
appropriate.

[[Page 52559]]

Contracting officers are encouraged to make appropriate modifications
to the time requirements and procedures to meet the Government's needs.

1316.505 Ordering.

The department's Task and Delivery Order Ombudsman is designated in
CAM 1301.70.

1316.506 Solicitation provisions and contract clauses.

(a) Insert clause 1352.216-75, Minimum and Maximum Contract
Amounts, in all indefinite quantity contracts, including requirements
contracts, if feasible.
(b) Insert a clause similar to 1352.216-76, Placement of Orders, in
indefinite-delivery solicitations and contracts.

Subpart 1316.6--Time-and-Materials, Labor-Hour, and Letter
Contracts

1316.601 Time-and-materials contracts.

The designee authorized to approve a time-and-materials contract
prior to the execution of the base period when the base period plus any
option periods exceeds three years is set forth in CAM 1301.70.

1316.601-70 Contract clauses.

Insert clause 1352.216-77, Ceiling Price, in all time-and-materials
contracts.

1316.602 Labor-hour contracts.

1316.602-70 Contract clauses.

Insert clause 1352.216-77, Ceiling Price, in all labor-hour
contracts, including, if feasible, requirements contracts.

1316.603 Letter contracts.

1316.603-2 Application.

(a) With the written approval from the authorized designee in CAM
1301.70, in extreme cases, the contracting officer may authorize an
additional period for contract definitization.
(b) If, after exhausting all reasonable efforts, the contracting
officer and the contractor cannot negotiate a definitive contract
because of failure to reach agreement as to price or fee, the
contracting officer may determine a reasonable price or fee with
approval from the authority designated in CAM 1301.70.

1316.603-3 Limitations.

The designee authorized to determine that a letter contract is
suitable so that work can begin immediately is set forth in CAM
1301.70.

PART 1317--SPECIAL CONTRACTING METHODS

Subpart 1317.1--Multi-Year Contracting
Sec.
1317.104 General.
1317.105 Policy.
1317.105-1 Uses.
1317.108 Congressional notification.
Subpart 1317.2--Options
1317.203 Solicitations.
Subpart 1317.5--Interagency Acquisitions under the Economy Act
1317.502 General.
1317.502-70 Policy.

Authority: 41 U.S.C. 414; 48 CFR 1.301-1.304.

Subpart 1317.1--Multi-Year Contracting

1317.104 General.

The designee authorized to modify requirements of FAR Subpart 17.1
and FAR 52.217-2 is set forth in CAM 1301.70.

1317.105 Policy.

1317.105-1 Uses.

The designee authorized to make the determination to enter into a
multi-year contract is set forth in CAM 1301.70.

1317.108 Congressional notification.

Written notification to Congress shall be handled in accordance
with the policies and procedures outlined in DAO 218-2.

Subpart 1317.2--Options

1317.203 Solicitations.

The designee authorized to limit option quantities for additional
supplies greater than 50 percent of the initial quantity of the same
contract line item is set forth in CAM 1301.70.

Subpart 1317.5--Interagency Acquisitions under the Economy Act

1317.502 General.

1317.502-70 Policy.

All Interagency Acquisitions shall adhere to the policy set forth
in CAM 1317.570.

PART 1318--EMERGENCY ACQUISITIONS

Subpart 318.2--Emergency Acquisitions Flexibilities
Sec.
1318.201 Contingency operation.
1318.202 Defense or recovery from certain attacks.
1318.270 Emergency acquisition flexibilities.

Authority: 41 U.S.C. 414; 48 CFR 1.301-1.304.

Subpart 1318.2--Emergency Acquisition Flexibilities

1318.201 Contingency operation.

The designee authorized to serve as the Head of the Agency under
FAR 18.201(b) and (c) is set forth in CAM 1301.70.

1318.202 Defense or recovery from certain attacks.

The designee authorized to serve as the Head of the Agency under
FAR 18.202(a), (b) and (c) is set forth in CAM 1301.70.

1318.270 Emergency acquisition flexibilities.

(a) Authorizing Emergency Acquisition Flexibilities. The process
for authorizing the use of emergency procurement flexibilities within
the Department of Commerce may vary depending on the nature and type of
the emergency situation. However, generally, if a Senior Bureau
Procurement Official (BPO) determines that emergency acquisition
flexibilities are required to meet contracting needs during an
emergency situation, the BPO must obtain the Senior Procurement
Executive's concurrence. In the event that increased warrant authority
is needed, the BPO should contact the Senior Procurement Executive.
(b) Continuity of Operations Plan. Each Contracting Activity shall
have an updated Continuity of Operations Plan, in place designating
emergency personnel with warrant levels.
(c) Management Controls. Senior BPOs must take affirmative steps to
ensure that emergency flexibilities are used solely for requirements
that have a clear and direct relationship to the emergency situation,
and that appropriate management controls are established and maintained
to support the use of the increased thresholds. The Office of
Acquisition Management will conduct periodic reviews of transactions
made pursuant to the expanded authorities to evaluate whether the
transactions:
(1) Were in support of the emergency situation;
(2) Were made by an authorized individual;
(3) Were appropriately documented; and
(4) Provided the maximum practicable opportunity for small business
participation.

[[Page 52560]]

Subchapter D--Socioeconomic Programs

PART 1319--SMALL BUSINESS PROGRAMS

Subpart 1319.2--Policies
Sec.
1319.201 General policy.
1319.202 Specific policies.
1319.202-70 Small business set-aside review form.
Subpart 1319.5--Set-Asides For Small Business
1319.502 Setting aside acquisitions.
1319.502-3 Partial set-asides.
1319.505 Rejecting Small Business Administration recommendations.
Subpart 1319.6--Certificates of Competency and Determination of
Responsibility
1319.602 Procedures.
1319.602-1 Referral.
Subpart 1319.7--The Small Business Subcontracting Program
1319.705 Responsibilities of the contracting officer under the
subcontracting assistance program.
1319.705-4 Reviewing the subcontracting plan.
Subpart 1319.8--Contracting with the Small Business Administration (the
8(a) Program)
1319.800 General.
1319.811 Preparing the contracts.
1319.811-3 Contract clauses.
1319.812 Contract administration.

Authority: 41 U.S.C. 414; 48 CFR 1.301-1.304.

Subpart 1319.2-Policies

1319.201 General policy.

(a) The DOC Office of Small and Disadvantaged Business Utilization
(OSDBU) is headed by a Director who shall report and be responsible to
the Deputy Secretary on matters of policy and legislative requirements.
(b) Each Contracting Office shall appoint Small Business
Specialists to assist the HCA in effectively implementing the small
business programs, including achieving program goals.

1319.202 Specific policies.

Procurement actions valued above $100,000 will be reviewed by the
Director, OSDBU, or designee for the purpose of making recommendations
for solicitation/award under FAR Part 19.

1319.202-70 Small business set-aside review form.

Form CD 570, Small Business Set-Aside Review, shall be submitted
for approval to the Operating Unit Counsel Small Business Specialist,
and forwarded to the OSDBU for approval. If applicable, the Form CD 570
will be submitted to the SBA Procurement Center Representative (PCR)
for review. The Form CD 570 is required for:
(a) Procurement actions valued above $100,000;
(b) Modifications to existing contracts that add new work valued
over $550,000 or that increase the total contract cost to over
$550,000;
(c) Consolidation of two or more procurement requirements for goods
and services.

Subpart 1319.5--Set-Asides for Small Business

1319.502 Setting aside acquisitions.

1319.502-3 Partial set-asides.

A partial set-aside shall not be made if there is a reasonable
expectation that only two capable concerns (one large and one small)
will respond with offers unless the set-aside is authorized by the
designee set forth in CAM 1301.70.

1319.505 Rejecting Small Business Administration recommendations.

(a) The designee authorized to render a decision on the Small
Business Administration's appeal of the contracting officer's decision
is set forth in CAM 1301.70.
(b) In response to SBA's appeal to the agency head, the designee
authorized in CAM 1301.70 shall forward justification for their
decision to the agency head.
(c) The designee authorized in CAM 1301.70 shall reply to the SBA
within 30 working days after receiving the appeal. The decision of the
designee shall be final.

Subpart 1319.6--Certificates of Competency and Determination of
Responsibility

1319.602 Procedures.

1319.602-1 Referral.

When the contracting officer determines that the successful small
business offeror lacks certain elements of responsibility, the
contracting officer will withhold award and refer the matter to the
cognizant Small Business Administration Government Contracting Area
Office. A copy of the referral shall be provided to the Director of the
OSDBU.

Subpart 1319.7--The Small Business Subcontracting Program

1319.705 Responsibilities of the contracting officer under the
subcontracting assistance program.

1319.705-4 Reviewing the subcontracting plan.

The prime contractor's proposed subcontracting plan shall be
reviewed by the contracting officer for adequacy, ensuring that the
required information, goals, and assurances are included. The
contracting officer may obtain advice and recommendations from the SBA
procurement center representative, the contracting activity's small
business specialist and the DOC OSDBU. The CO shall give the reviewers
sufficient time and information to review the plan and ask questions.

Subpart 1319.8--Contracting with the Small Business Administration
(the 8(a) Program)

1319.800 General.

(a) By Partnership Agreement between the Small Business
Administration (SBA) and the Department of Commerce, the SBA delegated
authority to the Senior Procurement Executive to enter into 8(a) prime
contracts and purchase orders. To implement this authority, the Senior
Procurement Executive has authorized a class FAR deviation to
applicable portions of FAR Subpart 19.8 and FAR Part 52. Under the
class deviation, the authority to enter into 8(a) prime contracts and
purchase orders is re-delegated to contracting officers.
(b) When awarding 8(a) contracts and purchase orders, contracting
officers shall operate in accordance with the terms of the Partnership
Agreement and take full advantage of the streamlined procedures in the
agreement. Contracting officers shall review the responsibilities and
procedures for 8(a) awards as outlined in the Partnership Agreement and
work closely with their respective Small Business Specialists and the
OSDBU.
(c) The Partnership Agreement contains the procedures for
submitting an offer letter to the appropriate SBA office. Contracting
officers shall provide a copy of all offering letters to the OSDBU when
they are transmitted to SBA.

1319.811 Preparing the contracts.

1319.811-3 Contract clauses.

(a) The contracting officer shall insert the clause 1352.219-70,
Section 8(a) Direct Award (Deviation), in direct contracts and purchase
orders processed under the Partnership Agreement. The clauses at FAR
52.219-11, Special 8(a) Contract Conditions, 52.219-12, Special 8(a)
Subcontract Conditions, and 52.219-17, Section 8(a) Award, shall not be
used.
(b) The contracting officer shall insert the clause 1352.219-71,
Notification to Delay Performance (Deviation), in solicitations and
purchase orders issued under the Partnership Agreement.

[[Page 52561]]

(c) The contracting officer shall insert the clause 1352.219-72,
Notification of Competition Limited to Eligible 8(a) Concerns,
Alternate III (Deviation), when the acquisition is processed under the
Partnership Agreement.

1319.812 Contract administration.

Awards under the Partnership Agreement are subject to 15 U.S.C.
637(a)(21). These contracts shall contain the clause 1352.219-70,
Section 8(a) Direct Award (Deviation), which requires the contractor to
notify the SBA and the contracting officer when ownership of the firm
is being transferred.

PART 1322--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

Subpart 1322.1--Basic Labor Policies
Sec.
1322.101 Labor relations.
1322.101-1 General.
1322.101-3 Reporting labor disputes.
1322.101-4 Removal of items from contractor's facilities affected by
work stoppages.
1322.103 Overtime.
1322.103-4 Approvals.
Subpart 1322.3--Contract Work Hours and Safety Standards Act
1322.302 Liquidated damages and overtime pay.
Subpart 1322.4--Labor Standards for Contracts Involving Construction
1322.404 Davis-Bacon Act wage determination.
1322.404-6 Modification of wage determination.
1322.406 Administration and enforcement.
1322.406-8 Investigations.
Subpart 1322.6--Walsh-Healey Public Contracts Act
1322.604 Exemptions.
1322.604-2 Regulatory exemptions.
Subpart 1322.8--Equal Employment Opportunity
1322.805 Procedures.
1322.807 Exemptions.
Subpart 1322.10--Service Contract Act of 1965, as amended
1322.1001 Definitions.
Subpart 1322.13--Special Disabled Veterans of the Vietnam Era, and
Other Eligible Veterans
1322.1305 Waivers.
Subpart 1322.14--Employment of Workers with Disabilities
1322.1403 Waivers.

Authority: 41 U.S.C. 414; 48 CFR 1.301-1.304.

Subpart 1322.1--Basic Labor Policies

1322.101 Labor relations.

1322.101-1 General.

The designee authorized to designate programs or requirements for
contractors notifying the Government of actual or potential labor
disputes is set forth in CAM 1301.70.

1322.101-3 Reporting labor disputes.

(a) The designee authorized to report any potential or actual labor
disputes that may interfere with performing any contracts under its
cognizance is designated in CAM 1301.70
(b) The contracting officer shall seek legal advice and assistance
from Procurement Counsel when a potential or actual labor dispute that
may interfere with the contract performance occurs.

1322.101-4 Removal of items from contractors' facilities affected by
work stoppages.

The contracting officer shall obtain approval from the head of the
contracting office and seek legal advice before initiating any action
in accordance with FAR 22.101-4.

1322.103 Overtime.

1322.103-4 Approvals.

Approval of use of overtime may be granted by the approving
official as set forth in CAM 1301.70.

Subpart 1322.3--Contract Work Hours and Safety Standards Act

1322.302 Liquidated damages and overtime pay.

The designee authorized to find that the administratively
determined liquidated damages due under FAR 22.302(a) are incorrect or
that the contractor or subcontractor inadvertently violated the
Contract Work Hours and Safety Standards Act is set forth in CAM
1301.70.

Subpart 1322.4--Labor Standards for Contracts Involving
Construction

1322.404 Davis-Bacon Act wage determination.

1322.404-6 Modification of wage determination.

The designee authorized to request an extension beyond 90 days
after bid opening from the Department of Labor Administrator, Wage and
Hour Division is set forth in CAM 1301.70.

1322.406 Administration and enforcement.

1322.406-8 Investigations.

The designee authorized to process a contracting officer's report
on labor standards investigations is set forth in CAM 1301.70.

Subpart 1322.6--Walsh-Healey Public Contracts Act

1322.604 Exemptions.

1322.604-2 Regulatory exemptions.

The designee authorized to request that the Secretary of Labor
exempt a contract or class of contracts from Walsh-Healey Act
stipulations is set forth in CAM 1301.70.

Subpart 1322.8--Equal Employment Opportunity

1322.805 Procedures.

The designee authorized to approve award without pre-award
clearance is set forth in CAM 1301.70.

1322.807 Exemptions.

The designee authorized to exempt a contract from all or part of
Executive Order 11246 for national security purposes is set forth in
CAM 1301.70.

Subpart 1322.10--Service Contract Act of 1965, as Amended

1322.1001 Definitions.

The DOC labor advisor is the Assistant General Counsel for
Administration/Employment & Labor Law Division.

Subpart 1322.13--Special Disabled Veterans, Veterans of the Vietnam
Era, and Other Eligible Veterans

1322.1305 Waivers.

(a) The designee authorized to waive any requirement in FAR 22.13
if it is determined that the contract is essential to national security
is set forth in CAM 1301.70.
(b) The contracting officer must submit requests for waivers to the
designee authorized under 1322.1305 (a). The request shall include a
justification for the waiver and be available in electronic format.

Subpart 1322.14--Employment of Workers with Disabilities

1322.1403 Waivers.

(a) The designee authorized to waive any or all terms of the clause
at FAR 52.222-36 is set forth in CAM 1301.70.
(b) The designee authorized, with the concurrence of the Deputy
Assistant Secretary of Labor, to waive any requirement of FAR Subpart
22.14 when it is determined that the contract is essential to the
national security, is set forth in CAM 1301.70.
(c) The contracting officer must submit requests for waivers to the

[[Page 52562]]

designee authorized under 48 CFR 1322.1403 (a) and (b). The request
shall include a justification for the waiver and be available in
electronic format.

PART 1323--ENVIRONMENT, ENERGY AND WATER EFFICIENCY, RENEWABLE
ENERGY TECHNOLOGIES, OCCUPATIONAL SAFETY, AND DRUG-FREE WORKPLACE

Subpart 1323.2--Energy and Water Efficiency and Renewable Energy
Sec.
1323.204 Procurement exemptions.
Subpart 1323.4--Use of Recovered Materials
1323.404 Agency affirmative procurement programs.
1323.404-70 DOC affirmative procurement program.
Subpart 1323.5--Drug-Free Workplace
1323.506 Suspension of payments, termination of contract and
debarment and suspension actions.
Subpart 1323.7--Contracting for Environmentally Preferable and Energy
Efficient Products and Services
1323.705 Electronic products environmental assessment tool.

Authority: 41 U.S.C. 414; 48 CFR 1.301-1.304.

Subpart 1323.2--Energy and Water Efficiency and Renewable Energy

1323.204 Procurement exemptions.

The designee authorized to exempt the procurement of an ENERGY STAR
or Federal Energy Management Program (FEMP)-designated product as
described in FAR 23.203 is set forth in CAM 1301.70.

Subpart 1323.4--Use of Recovered Materials

1323.404 Agency affirmative procurement programs.

1323.404-70 DOC affirmative procurement program.

The Department of Commerce's affirmative procurement program is
described in CAM 1323.70.

Subpart 1323.5--Drug-Free Workplace

1323.506 Suspension of payments, termination of contract and debarment
and suspension actions.

The designee authorized to waive a determination to suspend
contract payments, terminate a contract for default, or debar or
suspend a contractor for Drug-Free Workplace violations, is set forth
in CAM 1301.70. This authority may not be delegated.

Subpart 1323.7--Contracting for Environmentally Preferable and
Energy-Efficient Products and Services

1323.705 Electronic products environmental assessment tool.

The procedures for granting exceptions to the requirement in FAR
23.705 are set forth in CAM 1323.70

PART 1324--PROTECTION OF PRIVACY AND FREEDOM OF INFORMATION

Subpart 1324.1--Protection of Individual Privacy
Sec.
1324.103 Procedures.
Subpart 1324.2--Freedom of Information Act
1324.203 Policy.

Authority: 41 U.S.C. 414; 48 CFR 1.301-1.304.

Subpart 1324.1--Protection of Individual Privacy

1324.103 Procedures.

DOC rules implementing the Privacy Act of 1974 are described in 15
CFR Part 4.

Subpart 1324.2--Freedom of Information Act

1324.203 Policy.

DOC's implementation of the Freedom of Information Act is described
in 15 CFR Part 4 and DAO 205-14.

PART 1325--FOREIGN ACQUISITION

Subpart 1325.1--Buy American Act--Supplies
Sec.
1325.103 Exceptions.
1325.105 Determining reasonableness of cost.
Subpart 1325.2--Buy American Act--Construction Materials
1325.204 Evaluating offers of foreign construction material.
Subpart 1325.10--Additional Foreign Acquisition Regulations
1325.1001 Waiver of right to examination of records.

Authority: 41 U.S.C. 414; 48 CFR 1.301-1.304.

Subpart 1325.1--Buy American Act--Supplies

1325.103 Exceptions.

(a) The designee authorized to make a determination that domestic
preference would be inconsistent with the public interest in a case
where the DOC has an agreement with a foreign government providing a
blanket exception to the Buy America Act is set forth in CAM 1301.70.
(b)(1) The contracting officer shall submit documentation
supporting a nonavailability determination to the DOC's representative
to the Civilian Agency Acquisition Council (CAAC). The DOC
representative shall forward the documentation to the CAAC for possible
removal of the product from the product nonavailablity list at FAR
25.104.
(2) The contracting officer shall submit documentation supporting a
determination that nonavailabilty of an article is likely to affect
future acquisitions to the DOC's representative to the CAAC for
possible addition to the product nonavailability list at FAR 25.104.

1325.105 Determining reasonableness of cost.

The designee authorized to make a written determination that the
use of higher evaluation factors than those in FAR 25.105(b) is
appropriate is set forth in CAM 1301.70.

Subpart 1325.2--Buy American Act--Construction Materials

1325.204 Evaluating offers of foreign construction material.

The designee authorized to specify a percentage higher than the 6
percent that the contracting officer must add to the cost of any
foreign construction material proposed for exception from the
requirements of the Buy America Act is set forth in CAM 1301.70.

Subpart 1325.10--Additional Foreign Acquisition Regulations

1325.1001 Waiver of right to examination of records.

The designee authorized to execute a determination and findings in
accordance with FAR 25.1001(a)(2)(iii) set forth in CAM 1301.70.

PART 1326--OTHER SOCIOECONOMIC PROGRAMS

Subpart 1326.2--Disaster or Emergency Assistance Activities
Sec.
1326.203 Transition of work.

Authority: 41 U.S.C. 414; 48 CFR 1.301-1.304.

Subpart 1326.2--Disaster or Emergency Assistance Activities

1326.203 Transition of work.

The designee authorized to determine that transitioning response,
relief, and/or reconstruction activity to a local firm, or firms, is
not feasible or practicable is set forth in CAM 1301.70.

[[Page 52563]]

Subchapter E--General Contracting Requirements

PART 1327--PATENTS, DATA, AND COPYRIGHTS

Subpart 1327.2--Patents and Copyrights
Sec.
1327.201 Patent and copyright infringement liability.
1327.201-2 Contract clauses.
Subpart 1327.3--Patent Rights under Government Contracts
1327.303 Contract clauses.
1327.304 Procedures.
1327.304-4 Appeals.
1327.305 Administration of patent rights clauses.
1327.305-2 Administration by the Government.
Subpart 1327.4--Rights in Data and Copyrights
1327.404 Basic rights in data clause.
1327.404-4 Contractor's release, publication, and use of data.
1327.404-5 Unauthorized, omitted, or incorrect markings.

Authority: 41 U.S.C. 414; 48 CFR 1.301-1.304.

Subpart 1327.2--Patents and Copyrights.

1327.201 Patent and copyright infringement liability.

1327.201-2 Contract clauses.

The designee authorized to approve the insertion of clause 52.227-
5, Waiver of Indemnity, in solicitations and contracts is set forth in
CAM 1301.70.

Subpart 1327.3--Patent Rights under Government Contracts

1327.303 Contract clauses.

(a) The designee authorized to determine, at contract award, that
it would be in the national interest to sublicense foreign governments
or international organizations pursuant to any existing or future
treaty or agreement is set forth in CAM 1301.70.
(b) The designee authorized to determine that restriction or
elimination of the right to retain title to any subject invention will
better promote the policy and objectives of chapter 18 of title 35 of
the United States Code is set forth in CAM 1301.70.
(c) The designee authorized to determine, at contract award, that
it would be in the national interest to sublicense foreign governments
or international organizations pursuant to any existing or future
treaty or agreement is set forth in CAM 1301.70.

1327.304 Procedures.

1327.304-4 Appeals.

The designee authorized to provide the contractor with a written
statement of the basis for taking the actions described in FAR 27.304-
5(a) is set forth in CAM 1301.70.

1327.305 Administration of patent rights clauses.

1327.305-2 Administration by the Government.

The contracting officer shall promptly furnish all invention
disclosures, reports, confirmatory instruments, notices, requests, and
other documents and information relating to patent rights clauses to
the DOC Patent Attorney.

Subpart 1327.4--Rights in Data and Copyrights

1327.404 Basic rights in data clause.

1327.404-4 Contractor's release, publication, and use of data.

(a) Insert clause 1352.227-70, Rights in Data, Assignment of
Copyright, in all solicitations and contracts if FAR Clause 52.227-17
has been used in the solicitation or contract and the contracting
officer wants the contractor to assign copyright to the Government.
(b) In appropriate cases, the contracting officer may place
limitations or restrictions on the contractor's exercise of its rights
in data first produced in the performance of the contract, including a
requirement to assign copyright to the Government or another party

1327.404-5 Unauthorized, omitted, or incorrect markings.

The designee authorized to concur with the contracting officer's
determination that markings are not authorized is set forth in CAM
1301.70.

PART 1328--BONDS AND INSURANCE

Subpart 1328.1--Bonds and Other Financial Protections
Sec.
1328.101 Bid guarantees.
1328.101-1 Policy on use.
1328.105 Other types of bonds.
1328.106 Administration.
1328.106-2 Substitution of surety bonds.
1328.106-6 Furnishing information.
Subpart 1328.2--Sureties and Other Security for Bonds.
1328.203 Acceptability of individual sureties.
1328.203-7 Exclusion of individual sureties.
Subpart 1328.3--Insurance
1328.305 Overseas workers' compensation and war-hazard insurance.
1328.310 Contract clause for work on a Government installation.
1328.310-70 Solicitation provisions and contract clauses.

Authority: 41 U.S.C. 414; 48 CFR 1.301--1.304.

Subpart 1328.1--Bonds and Other Financial Protections

1328.101 Bid guarantees.

1328.101-1 Policy on use.

The designee authorized to make a class waiver for the requirement
to obtain a bid guarantee when a performance bond or a performance and
payment bond is required is set forth in CAM 1301.70.

1328.105 Other types of bonds.

The designee authorized to approve using other types of bonds in
connection with acquiring particular supplies or services is set forth
in CAM 1301.70.

1328.106 Administration.

1328.106-2 Substitution of surety bonds.

The designee authorized to approve substituting a new surety bond
for the previously approved original bond is set forth in CAM 1301.70.

1328.106-6 Furnishing information.

When a payment bond has been provided for a contract, the designee
authorized to furnish a certified copy of the bond and the contract to
any person who makes a proper request is set forth in CAM 1301.70.

Subpart 1328.2--Sureties and Other Security for Bonds

1328.203 Acceptability of individual sureties.

(a) Contracting officers shall obtain the opinion of the
Procurement Counsel as to the adequacy of the documents pledging the
assets of an individual surety prior to accepting bid guarantee and
payment and performance bonds.
(b) Evidence of possible criminal or fraudulent activities by an
individual surety shall be referred to the DOC Office of Inspector
General. Policies and procedures for the initiation and conduct of
investigations by the Office of Inspector General are prescribed in DAO
207-10, Inspector General Investigations.

1328.203-7 Exclusion of individual sureties.

The designee authorized to exclude an individual from acting as a
surety on bonds submitted by offerors on procurements by the executive
branch of the Federal Government is set forth in CAM 1301.70.

[[Page 52564]]

Subpart 1328.3--Insurance

1328.305 Overseas workers' compensation and war-hazard insurance.

The designee authorized to recommend a waiver to the Secretary of
Labor is set forth in CAM 1301.70.

1328.310 Contract clause for work on a Government installation.

1328.310-70 Solicitation provisions and contract clauses.

(a) Insert clause 1352.228-70, Insurance Coverage, in all contracts
when:
(1) Government property is involved;
(2) The contract amount is expected to be over the simplified
acquisition threshold, and
(3) The contract will require work on a Government installation.
(b)(1) The clause is not required in fixed-price solicitations and
contracts if:
(i) Only a small amount of work is required on the Government
installation (e.g., a few brief visits per month); or
(ii) All the work on the Government installation is to be performed
outside the United States, its possessions and Puerto Rico.
(2) The contracting officer may increase the dollar limits
established in the clause when it is determined to be in the best
interest of the Government. Prior to increasing the dollar limits the
contracting officer shall seek the advice of Procurement Counsel.
(c) Insert clause 1352.228-71, Deductibles Under Required Insurance
Coverage--Cost-Reimbursement, in all cost-reimbursement contracts when
the clause at 1352.228-70, Insurance Coverage, is used.
(d) Insert clause 1352.228-72, Deductibles Under Required Insurance
Coverage--Fixed Price, in all fixed-price contracts when the clause at
1352.228-70, Insurance Coverage, is used.
(e) Insert clauses 1352.228-73 through 1352.228-75, unless
otherwise indicated by the specific instructions for their use below,
in any contract for the lease of aircraft.
(f) Insert clause 1252.228-73, Loss of or Damage to Leased
Aircraft, in any contract for the lease of aircraft, except in the
following circumstances:
(1) When the hourly rental rate does not exceed $250 and the total
rental cost for any single transaction is not in excess of $2,500:
(2) When the cost of hull insurance does not exceed 10 percent of
the contract rate; or
(3) When the lessor's insurer does not grant a credit for uninsured
hours, thereby preventing the lessor from granting the same to the
Government.
(g) Insert clause 1352.228-74, Fair Market Value of Aircraft, in
all aircraft lease/rentals.
(h) The contracting officer shall insert the clause at 1352.228-75,
Risk and Indemnities, in any contract for the lease of aircraft when
the Government will have exclusive use of the aircraft for a period of
less than thirty days.
(i) Insert clause 1352.228-76, Approval of Group Insurance Plans,
in all cost reimbursable contracts.
(j) The contractor shall submit the plan to the CO for approval
under cost-reimbursement contracts, before buying insurance under a
group insurance plan. Any change in benefits provided under an approved
plan that can reasonably be expected to increase significantly the cost
to the Government shall require similar approval.

PART 1329--TAXES

Subpart 1329.1--General
Sec.
1329.101 Resolving tax problems.
Subpart 1329.2--Federal Excise Taxes.
1329.203 Other Federal tax exemptions.
1329.203-70 DOC Federal tax exemption.
Subpart 1329.3--State and Local Taxes
1329.303 Application of State and local taxes to government
contractors and subcontractors.

Authority: 41 U.S.C. 414; 48 CFR 1.301--1.304.

Subpart 1329.1--General

1329.101 Resolving tax problems.

Legal questions relating to tax issues should be referred to the
Procurement Counsel.

Subpart 1329.2--Federal Excise Taxes

1329.203 Other Federal tax exemptions.

1329.203-70 DOC Federal tax exemption.

(a) The Office of Acquisition Management has obtained a permit from
the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives enabling
DOC and its contractors to purchase spirits (e.g., specially denatured
spirits) tax-free for non-beverage Government use.
(b) When purchasing spirits for non-beverage use by DOC personnel,
the contracting officer shall attach a copy of the permit to the
contract. Upon receipt of the spirits, the contractor shall return the
permit to the contracting officer unless future orders are anticipated

Subpart 1329.3--State and Local Taxes

1329.303 Application of State and local taxes to government
contractors and subcontractors.

The designee authorized to review a proposed designation of a
contractor as an agent of the Government is set forth in CAM 1301.70.

PART 1330--COST ACCOUNTING STANDARDS ADMINISTRATION

Subpart 1330.2--CAS Program Requirements
Sec.
1330.201 Contract requirements.
1330.201-5 Waiver.
1330.202 Disclosure requirements.
1330.202-2 Impracticality of submission.

Authority: 41 U.S.C. 414; 48 CFR 1.301--1.304.

Subpart 1330.2--CAS Program Requirements

1330.201 Contract requirements.

1330.201-5 Waiver.

The designee authorized to waive the applicability of Cost
Accounting Standards for a particular contract or subcontract is set
forth in CAM 1301.70.

1330.202 Disclosure requirements.

1330.202-2 Impracticality of submission.

The DOC Head of Agency for Procurement is authorized to determine
that it is impractical to secure a Disclosure Statement, although
submission is required, and to authorize contract award without
obtaining the Statement.

PART 1331--CONTRACT COST PRINCIPLES AND PROCEDURES

Subpart 1331.1--Applicability
Sec.
1331.101 Objectives.
Subpart 1331.2--Contracts with Commercial Organizations
1331.205 Selected costs.
1331.205-6 Compensation for personal services.
1331.205-32 Precontract costs.
1331.205-70 Duplication of effort.

Authority: 41 U.S.C. 414; 48 CFR 1.301--1.304.

Subpart 1331.1--Applicability

1331.101 Objectives.

The designee authorized to approve individual deviations concerning
cost principles is set forth in CAM 1301.70.

[[Page 52565]]

Subpart 1331.2--Contracts with Commercial Organizations

1331.205 Selected costs.

1331.205-6 Compensation for personal services.

The designee authorized to waive cost allowability limitations
under certain circumstances regarding compensation of foreign nationals
is set forth in CAM 1301.70.

1331.205-32 Precontract costs.

If precontract costs are anticipated, pursuant to negotiations and
in anticipation of contract award, insert clause 1352.231-70
Precontract Costs, in the contract.

1331.205-70 Duplication of effort.

The Department will not pay any costs for work that is duplicative
of costs charged against any other contract, subcontract or Government
source. Insert clause 1352.231-71, Duplication of Effort, in all cost-
reimbursement, time and materials, and labor hour solicitations and
contracts when applicable.

PART 1332--CONTRACT FINANCING

Sec.
1332.003 Simplified acquisition procedures financing.
1332.006 Reduction or suspension of contract payments upon finding
of fraud.
1332.006-1 General.
1332.006-3 Responsibilities.
1332.006-4 Procedures.
1332.006-5 Reporting.
Subpart 1332.1--Non-Commercial Item Purchase Financing
1332.114 Unusual contract financing.
Subpart 1332.2--Commercial Item Purchase Financing
1332.201 Statutory authority.
1332.202 General.
1332.202-1 Policy.
Subpart 1332.4--Advance Payments for Non-Commercial Items
1332.402 General.
1332.404 Exclusions.
1332.407 Interest.
Subpart 1332.5--Progress Payments Based on Costs
1332.501 General.
1332.501-2 Unusual progress payments.
Subpart 1332.7--Contract Funding
1332.702 Policy.
1332.702-70 Forms.
Subpart 1332.8--Assignment of Claims
1332.802 Conditions.
Subpart 1332.9--Prompt Payment
1332.903 Responsibilities.
1332.906 Making payments.
Subpart 1332.11--Electronic Funds Transfer
1332.1108 Payment by Governmentwide commercial purchase card.

Authority: 41 U.S.C. 414; 48 CFR 1.301-1.304.

1332.003 Simplified acquisition procedures financing.

Contract financing may be provided for purchases made under the
authority of FAR Part 13. Contract financing shall be made in
accordance with FAR Part 32.

1332.006 Reduction or suspension of contract payments under finding of
fraud.

1332.006-1 General.

The designee authorized to exercise the responsibility to reduce or
suspend contract payments is set forth in CAM 1301.70.

1332.006-3 Responsibilities.

DOC personnel shall immediately report to the Office of Inspector
General any apparent or suspected instances where a contractor's
request for advance, partial or progress payments is based on fraud in
accordance with DAO 207-10, Inspector General Investigations.

1332.006-4 Procedures.

(a) The Agency Head as described under 1332.006-4 is set forth in
CAM 1301.70.
(b) The Office of Inspector General shall perform the function of
the Remedy Coordination Official.

1332.006-5 Reporting.

In accordance with 41 U.S.C. 255, the head of an agency shall
prepare a report for each fiscal year in which a recommendation has
been received pursuant to FAR 32.006-4(a).

Subpart 1332.1--Non-Commercial Item Purchase Financing

1332.114 Unusual contract financing.

The designee authorized to approve unusual contract financing
arrangements is set forth in CAM 1301.70.

Subpart 1332.2--Commercial Item Purchase Financing

1332.201 Statutory authority.

Payment for commercial items may be made under such terms and
conditions as the designee authorized in CAM 1301.70 determines are
appropriate or customary in the commercial marketplace and are in the
best interest of the United States.

1332.202 General.

1332.202-1 Policy.

The designee authorized to approve unusual contract financing is
set forth in CAM 1301.70.

Subpart 1332.4--Advance Payments for Non-Commercial Items

1332.402 General.

(a) Advanced payment may be authorized for contracts, other than
those at FAR 32.403(a) and (b), only if other types of financing are
not reasonably available to the contractor in adequate amounts.
(b) The designee authorized to determine when advance payment is in
the public interest or facilitates national defense is set forth in CAM
1301.70.

1332.404 Exclusions.

Advance payments may be authorized for items listed in FAR
32.404(a).

1332.407 Interest.

The designee authorized to approve advance payment without interest
is as set forth in CAM 1301.70.

Subpart 1332.5--Progress Payments Based on Costs

1332.501 General.

1332.501-2 Unusual progress payments.

The designee authorized to approve a contractor's request for
unusual progress payments is set forth in CAM 1301.70.

Subpart 1332.7--Contract Funding

1332.702 Policy.

Contracting officers shall obtain assurances of available funds
only from properly authorized designated certifying officers in
accordance with Part 4, Section 1110 of the Treasury Financial Manual.

1332.702-70 Forms.

Contracting officers must obtain an electronic or hardcopy
procurement request form on which the availability of adequate funds
have been certified by a designated certifying officer. This form must
have the name of the certifying official and the certified available
funds, as well as the technical and other specifications of the
request, administrative approvals, clearances, and information for
processing payment.

Subpart 1332.8--Assignment of Claims

1332.802 Conditions.

The designee authorized to receive the written notice of assignment
is set forth in CAM 1301.70.

[[Page 52566]]

Subpart 1332.9--Prompt Payment

1332.903 Responsibilities.

The designee authorized to establish Prompt Payment policies and
procedures is set forth in CAM 1301.70.

1332.906 Making payments.

The designee authorized to allow invoice payments earlier than 7
days prior to the due date as specified in the contract is set forth in
CAM 1301.70.

Subpart 1332.11--Electronic Funds Transfer

1332.1108 Payment by Governmentwide commercial purchase card.

Use of the Governmentwide commercial purchase card is subject to
the requirements of the FAR, other internal Departmental policies, as
well as operating unit policies and procedures related to the purchase
card. All purchases made with the purchase card must comply with all
procedures and documentation requirements that apply to the procurement
action.

PART 1333--PROTESTS, DISPUTES, AND APPEALS

Subpart 1333.1--Protests
Sec.
1333.101 Definitions.
1333.102 General.
1333.103 Protests to the agency.
1333.104 Protests to GAO.
1333.104-70 Protests to GAO and Court of Federal Claims.
Subpart 1333.2--Disputes and Appeals
1333.203 Applicability.
1333.206 Initiation of a claim.
1333.211 Contracting officer's decision.
1333.212 Contracting officer's duties upon appeals.
1333.215 Contract clauses.

Authority: 41 U.S.C. 414; 48 CFR 1.301--1.304.

Subpart 1333.1--Protests

1333.101 Definitions.

Protest Decision Authority means agency officials above the level
of the contracting officer who have been designated by the Procurement
Executive to issue agency protest decisions under Executive Order
12979.

1333.102 General.

(a) Contracting officers shall promptly notify the Procurement
Counsel, and seek legal advice upon receiving notice that a protest has
been filed in any forum.
(b) The designee authorized to determine that a solicitation,
proposed award, or award under protest does not comply with the
requirements of law or regulation, and to take the actions specified at
FAR 33.102(b) is set forth in CAM 1301.70. Corrective action shall only
be taken after consultation with Procurement Counsel.

1333.103 Protests to the agency.

(a) Insert provision 1352.233-70, Agency Protests, in all DOC
solicitations, except these issued by the U.S. Patent and Trademark
Office.
(b) All agency protest decisions shall be reviewed by Procurement
Counsel before submission to the protester.

1333.104 Protests to GAO.

1333.104-70 Protests to GAO and Court of Federal Claims.

(a) Insert clause 1352.233-71, GAO and Court of Federal Claims
Protests, in all DOC solicitations, except those for the U.S. Patent
and Trademark Office.
(b) Only Procurement Counsel shall communicate with the Government
Accountability Office (GAO), the Court of Federal Claims and the
Department of Justice regarding applicable protests. Procurement
Counsel shall be responsible for preparation and submission of the
agency report to the GAO and litigation reports to the Department of
Justice.
(c) The designee authorized to authorize, on a nondelegable basis,
the award of a contract when the agency has received notice from the
GAO of a preaward protest filed directly with the GAO is set forth in
CAM 1301.70.
(d) The designee authorized to authorize, on a nondelegable basis,
contract performance notwithstanding protest after award is set forth
in CAM 1301.70.
(e) The designee authorized to report and explain the reasons why
the agency has not fully implement GAO recommendations with respect to
a protest is set forth in CAM 1301.70.

Subpart 1333.2--Disputes and Appeals

1333.203 Applicability.

The designee authorized to determine that the application of the
Contract Disputes Act of 1978 to a contract with an international
organization or a subsidiary body of that organization would not be in
the public interest is set forth in CAM 1301.70.

1333.206 Initiation of a claim.

Contracting officers shall promptly notify Procurement Counsel and
seek legal advice upon receiving a contractor claim.

1333.211 Contracting officer's decision.

All contracting officer decisions on claims shall be reviewed by
Procurement Counsel before submission to the contractor.

1333.212 Contracting officer's duties upon appeals.

Only Procurement Counsel will communicate with the Civilian Board
of Contract Appeals or the Department of Justice regarding appeals of
contracting officer decisions. Procurement Counsel shall be responsible
for preparation and submission of all filings with the Board.

1333.215 Contract clauses.

Alternate I of FAR 52.233-1, Disputes, may be used at the
discretion of the contracting officer.

Subchapter F--Special Categories of Contracting

PART 1334--MAJOR SYSTEM ACQUISITION

Subpart 1334.0--General
Sec.
1334.003 Responsibilities.
1334.005 General requirements.
1334.005-6 Full production.
Subpart 1334.2--Earned Value Management System
1334.201 Policy.
1334.201-70 Policy.
1334.202 Integrated baseline reviews.

Authority: 41 U.S.C. 414; 48 CFR 1.301-1.304.

Subpart 1334.0--General

1334.003 Responsibilities.

(a) The designee authorized to carry out the responsibilities
described under FAR 34.003 is set forth in CAM 1301.70.
(b) Agency procedures related to major system acquisitions are set
forth in DAO 208-3.

1334.005 General requirements.

1334.005-6 Full production.

The designee authorized to reaffirm mission need and program
objectives and grant approval to proceed with the award of a contract
for full production of a successfully tested major system is set forth
in CAM 1301.70.

Subpart 1334.2--Earned Value Management System

1334.201 Policy.

1334.201-70 Policy.

(a) In accordance with the Department's Information Technology
Investment Performance Measurement and Performance Reporting Policy,
the use of an Earned Value Management System (EVMS) is required for
major acquisitions for information technology development in which the
development/modernization/enhancement costs are anticipated to equal or
exceed $25 million over the life of the acquisition. The Chief

[[Page 52567]]

Information Officer may require EVMS on other acquisitions if the
project merits special attention due to sensitivity, mission
criticality, or risk potential.
(b) If a project manager considers the use of an EVMS to be
necessary for a major acquisition that does not meet the $25 million
threshold, the project manager should conduct a cost/benefit analysis
and consult with the OCIO on the advisability of requiring an EVMS.
(c) Project managers, contracting officers, and contracting officer
representatives responsible for major acquisitions requiring an EVMS
must successfully complete an Earned Value Management course that meets
the requirements of the OCIO.
(d) The use of firm-fixed-price type contracts, subcontracts and
other agreements are generally not suited to developmental efforts and
the use of an EVMS is of limited utility under such arrangements. In
the rare cases where a fixed-price type contract is contemplated for a
developmental effort, the project manager and contracting officer must
consult with the OCIO for guidance to determine whether an EVMS will be
required.
(e) The use of an EVMS is generally discouraged for contracts,
subcontracts, and other agreements where the period of performance is
less than 12 months in duration. Additionally, application of an EVMS
to work efforts that are not discrete in nature should be considered on
a case-by-case basis.
(f) In cases where the nature of the work does not lend itself to
the meaningful use of an EVMS, the OCIO may waive the EVMS requirement
if appropriate.

1334.202 Integrated baseline reviews.

An Integrated Baseline Review shall be conducted when an Earned
Value Management System is required.

PART 1335--RESEARCH AND DEVELOPMENT CONTRACTING

Sec.
1335.001 Definitions.
1335.006 Contracting methods and contract type.
1335.014 Government property and title.
1335.016 Broad agency announcement.
1335.016-70 DOC procedures for the use of broad agency announcement.
1335.017 Federally funded research and development centers.
1335.017-2 Establishing or changing an FFRDC.
1335.017-4 Reviewing FFRDCs.

Authority: 41 U.S.C. 414; 48 CFR 1.301-1.304.

1335.001 Definitions.

Human Subject means a living individual about whom an investigator
(whether professional or student) conducting research obtains:
(1) Data through intervention or interaction with the individual,
or
(2) Identifiable private information.
Intervention includes both physical procedures by which data are
gathered (for example, venipuncture) and manipulations of the subject
or the subject's environment that are performed for research purposes.
Interaction includes communication or interpersonal contact between
investigator and subject. ``Private information'' includes information
about behavior that occurs in a context in which an individual can
reasonably expect that no observation or recording is taking place, and
information which has been provided for specific purposes by an
individual and which the individual can reasonably expect will not be
made public (for example, a medical record). Private information must
be individually identifiable (i.e., the identity of the subject is or
may readily be ascertained by the investigator or associated with the
information) in order for obtaining the information to constitute
research involving human subjects.
Research means a systematic investigation, including research,
development, testing and evaluation, designed to develop or contribute
to generalizable knowledge. Activities which meet this definition
constitute research for purposes of this policy, whether or not they
are conducted or supported under a program which is considered research
for other purposes. For example, some demonstration and service
programs may include research activities.

1335.006 Contracting methods and contract type.

(a) Insert provision 1352.235-70, Protection of Human Subjects, in
all solicitations where research services under the contract might
involve the use of human subjects. The provision is mandatory where
human subjects may be used in performance of the award and may not be
modified without consultation with Program Counsel.
(b) Insert clause 1352.235-71, Protection of Human Subjects--
Exemption, in all contracts where the agency has determined based on
documentation submitted by the offeror in response to provision
1352.235-70, Protection of Human Subjects, that the research involving
human subjects is exempt from the requirements of 15 CFR Part 27 and
does not require Institutional Review Board (IRB) review. The provision
is mandatory where an appropriate agency official has determined that
the research involving human subjects to be carried out in performance
of the award is exempt from 15 CFR Part 27, and may not be modified
without consultation with Program Counsel.
(c) Insert clause 1352.235-72, Protection of Human Subjects--
Institutional Approval, in all contracts where the agency has
determined based on documentation submitted by the offeror in response
to provision 1352.235-70, Protection of Human Subjects, that the
research involving human subjects is not exempt from the requirements
of 15 CFR Part 27 and requires review by a cognizant Institutional
Review Board (IRB). The provision is mandatory where an appropriate
Agency official has determined that the research involving human
subjects to be carried out in performance of the award is not exempt
from 15 CFR Part 27 and requires review by a cognizant IRB, and may not
be modified without consultation with Program Counsel.
(d) Insert clause 1352.235-73, Protection of Human Subjects--After
Initial Contract Award, in all contracts where at the time of award no
research involving human subjects is anticipated, but where decisions
made in the course of the research may necessitate the addition of
research involving human subjects to the work performed. The provision
is mandatory where it is possible that the use of human subjects may be
required in performance of the award but is not anticipated at the time
of award, and may not be modified without consultation with Program
Counsel.

1335.014 Government property and title.

The designee authorized to determine that the policies in FAR
35.014(b)(1)-(4) will not apply regarding title to equipment purchased
by nonprofit institutions of higher learning and nonprofit
organizations whose primary purpose is the conduct of scientific
research is set forth in CAM 1301.70.

1335.016 Broad agency announcement.

1335.016-70 DOC procedures for the use of broad agency announcements.

Procedures for the use of broad agency announcements within the
Department of Commerce are set forth in CAM 1335.016.

[[Page 52568]]

1335.017 Federal funded research and development centers.

1335.017-2 Establishing or changing an FFRDC.

The designee authorized to approve the establishment of an FFRDC,
or change its basic purpose and mission, is set forth in CAM 1301.70.

1335.017-4 Reviewing FFRDCs.

The designee authorized to approve the continuation or termination
of the sponsorship of an FFRDC is set forth in CAM 1301.70.

PART 1336--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

Subpart 1336.2--Special Aspects of Contract for Construction
Sec.
1336.203 Government estimate of construction costs.
1336.270 Special requirements for ship construction.
Subpart 1336.6--Architect-Engineer Services
1336.602 Selection of firms for architect-engineer contracts.
1336.602-2 Evaluation boards.
1336.602-4 Selection authority.
1336.602-5 Short selection process for contracts not to exceed the
simplified acquisition threshold.
1336.605 Government cost estimate for architect-engineer work.
1336.609 Contract clauses.
1336.609-1 Design within funding limitations.

Authority: 41 U.S.C. 414; 48 CFR 1.301-1.304.

Subpart 1336.2--Special Aspects of Contracting for Construction

1336.203 Government estimate of construction costs.

After award, the independent Government estimated price can be
released, upon request, to those firms or individuals who submitted
proposals.

1336.270 Special requirements for ship construction.

See 48 CFR 1371 for special requirements for acquisition involving
ship construction and ship repair.

Subpart 1336.6--Architect-Engineer Services

1336.602 Selection of firms for architect-engineer contracts.

1336.602-2 Evaluation boards.

Permanent and ad hoc architect-engineer evaluation boards may
include preselection boards. When necessary, members of permanent, ad
hoc, and preselection boards may be appointed from private
practitioners of architecture, engineering, or related professions.
Private practitioners may be appointed as deemed necessary by the BPO
or higher agency official. The permanent and ad hoc evaluation boards
should be comprised of at least a majority of government personnel.

1336.602-4 Selection authority.

Each contracting office shall designate the selection authority
based on the complexity of each procurement.

1336.602-5 Short selection process for contracts not to exceed the
simplified acquisition threshold.

(a) In contracts not expected to exceed the simplified acquisition
threshold, either or both of the short selection processes set out at
FAR 36.602-5 may be used.
(b) Each contracting office shall designate the selection authority
based on the complexity of each procurement. The selection authority
shall review the selection report and approve it or return it to the
chairperson for appropriate revision.

1336.605 Government cost estimate for architect-engineer work.

After award, the independent Government estimated price can be
released, upon request, to those firms or individuals who submitted
proposals.

1336.609 Contract clauses.

1336.609-1 Design within funding limitations.

The designee authorized to make the determination described at FAR
36.609-1(c)(1) to enable exclusion of the clause at FAR 52.236-22 from
the contract is set forth in CAM 1301.70.

PART 1337--SERVICE CONTRACTING

Subpart 1337.1--Service Contracts--General
Sec.
1337.110 Solicitation provisions and contract clauses.
1337.110-70 Personnel security processing requirements.
1337.110-71 Additional DOC clauses related to service contracting.
Subpart 1337.2--Advisory and Assistance Services
1337.204 Guidelines for determining availability of personnel.

Authority: 41 U.S.C. 414; 48 CFR 1.301-1.304.

Subpart 1337.1--Service Contracts--General

1337.110 Solicitation provisions and contract clauses.

1337.110-70 Personnel security processing requirements.

(a) CAM 1337.70 establishes procedures for personnel security
processing for contractors performing services on or within a
Department of Commerce facility or through an information technology
(IT) system, as required by the Department of Commerce Security Manual
and Department of Commerce Security Program Policy and Minimum
Implementation Standards.
(b) Insert clause 1352.237-70, Security Processing Requirements--
High or Moderate Risk Contracts, in all service contracts designated as
High or Moderate risk that will be performed on a DOC facility or when
the contractor will access a DOC IT system.
(c) Insert clause 1352.237-71, Security Processing Requirements--
Low Risk Contracts, in all service contracts designated as Low Risk
that will be performed on or within a Department of Commerce facility
or when the contractor will access a DOC IT system.
(d) Insert clause 1352.237-72, Security Processing Requirements--
National Security Contracts, in all service contracts designated as
National Security Contracts that will be performed on or within a
Department of Commerce facility or when the contractor will access a
DOC IT system.
(e) Insert clause 1352.237-73, Foreign National Visitor and Guest
Access to Departmental Resources, in all DOC solicitations and
contracts for services where foreign national access to any DOC
facility or DOC IT system is required. The language of the clause may
only be modified by adding more restrictive agency or operating unit
counsel-specific guidance.

1337.110-71 Additional DOC clauses related to service contracting.

(a) Insert a clause substantially similar to 1352.237-74, Progress
Reports, where progress reports are required in order to make periodic
payments based upon contract progress made, or if the contracting
officer otherwise determines that progress reports are needed.
(b) Insert a clause substantially similar to 1352.237-75, Key
Personnel, when contract performance requires identification of
contractor key personnel.

[[Page 52569]]

Subpart 1337.2--Advisory and Assistance Services

1337.204 Guidelines for determining availability of personnel.

The designee authorized to make the determinations described under
FAR 37.204 is set forth in CAM 1301.70.

PART 1339--ACQUISITION OF INFORMATION TECHNOLOGY

Subpart 1339.1--General
Sec.
1339.107 Contract clauses.
1339.107-70 Information security.
Subpart 1339.2--Electronic and Information Technology
1339.270 Solicitation provisions and contract clauses.

Authority: 41 U.S.C. 414; 48 CFR 1.301-1.304.

Subpart 1339.1--General

1339.107 Contract clauses.

Insert clause 1352.239-70, Software License Addendum, in all
contracts when the primary purpose is to purchase new software licenses
or renew existing licenses.

1339.107-70 Information security.

(a) For all service acquisitions over the micro-purchase threshold,
contracting professionals shall coordinate with the designated
Contracting Officer Representative (COR) to complete the Information
Security in Acquisition Checklist.
(b) When the Information Security in Acquisition Checklist
indicates that Clause 1352.239-73, Security Requirements for
Information Technology Resources, is needed, contracting officers shall
insert the clause in the solicitation and contracts. If the checklist
indicates that the Certification and Accreditation requirement in
Clause 1352.239-73 is not required, the contracting officer shall
include the statement ``The Certification and Accreditation (C&A)
requirements of Clause 1352.239-73 do not apply, and a Security
Accreditation Package is not required'' in the statement of work.
(c) Contracting professionals shall insert the appropriate risk
designation clause from CAM 1337.70 into DOC solicitations and
contracts for services depending upon the level of contractor access
privileges to DOC IT systems. In addition, contracting professionals
shall document the official contract file to include the rationale for
the designated risk level.

Subpart 1339.2--Electronic and Information Technology

1339.270 Solicitation provisions and contract clauses.

(a) Insert provision substantially similar to 1352.239-71,
Electronic and Information Technology, in solicitations for Electronic
and Information (ET) to which it applies.
(b) Insert clause 1352.239-72, Security Requirements for
Information Technology Resources, in all DOC solicitations and
contracts for Information Technology services. The clause language may
only be modified by adding more restrictive agency- or operating unit
counsel-specific guidance.

PART 1341--ACQUISITION OF UTILITY SERVICES

Subpart 1341.2--Acquiring Utility Services
Sec.
1341.201 Policy.
1341.202 Procedures.
1341.204 GSA area wide contracts.

Authority: 41 U.S.C. 414; 48 CFR 1.301-1.304.

Subpart 1341.2--Acquiring Utility Services

1341.201 Policy.

The designee authorized to enter into a contract pursuant to 42
U.S.C. 8287 (regarding shared energy savings, including cogeneration)
is set forth in CAM 1301.70.

1341.202 Procedures.

The designee authorized to approve a determination that a written
contract cannot be obtained from a utility supplier refusing to execute
a tendered contract, and that the issuance of a purchase order is not
feasible, is set forth in CAM 1301.70.

1341.204 GSA Area wide Contracts.

The designee authorized to determine that the use of an area wide
contract is not advantageous to the Government is set forth in CAM
1301.70.

Subchapter G--Contract Management

PART 1342--CONTRACT ADMINISTRATION

Subpart 1342.1--Contract Audit Services
Sec.
1342.102 Assignment of contract audit services.
1342.102-70 Interagency contract administration and audit services.
Subpart 1342.2--Contract Administration Services
1342.202 Assignment of contract administration.
Subpart 1342.5--Post award Orientation
1342.503 Postaward conferences.
1342.503-70 Notice of postaward conference.
Subpart 1342.6--Corporate Administrative Contracting Officer
1342.602 Assignment and location.
Subpart 1342.7--Indirect Cost Rates
1342.703 General.
1342.703-2 Certificate of indirect costs.

Authority: 41 U.S.C. 414; 48 CFR 1.301-1.304.

Subpart 1342.1--Contract Audit Services

1342.102 Assignment of contract audit services.

1342.102-70 Interagency contract administration and audit services.

(a) Generally, the final invoice shall not be approved until a
close-out audit has been performed and all outstanding issues have been
negotiated or resolved on the following types of contracts valued at
$500,000 and above:
(1) Cost-reimbursement type contracts;
(2) The cost-reimbursement portion of fixed-price contracts;
(3) Letter contracts which provide for reimbursement of costs;
(4) Time-and-materials contracts; and
(5) Labor-hour contracts.
(b) If a close-out audit is not required, an audit may be requested
regardless of the contract value when the contracting officer
determines that an audit is justified under one of the following
circumstances:
(1) There is some evidence of fraud or waste;
(2) The contractor's performance under the contract has been
questionable;
(3) The contractor had a high incidence of unallowable costs under
a previous contract;
(4) The contract is with a newly-established firm, or a firm that
has just begun dealing with the Government.

Subpart 1342.2--Contract Administration Services

1342.202 Assignment of contract administration.

The designee authorized to approve delegations of CAO functions not
listed in FAR 42.302 is set forth in CAM 1301.70.

[[Page 52570]]

Subpart 1342.5--Postaward Orientation

1342.503 Postaward conferences.

1342.503-70 Notice of postaward conference.

Insert a provision similar to 1352.242-70, Postaward Conference, in
solicitations when the contracting officer determines that a postaward
conference is needed.

Subpart 1342.6--Corporate Administrative Contracting Officer

1342.602 Assignment and location.

The designee authorized to approve the need for a corporate
administrative contracting officer is set forth in CAM 1301.70.

Subpart 1342.7--Indirect Cost Rates

1342.703 General.

1342.703-2 Certificate of indirect costs.

The designee authorized to waive the requirement for contractor
certification of proposed final indirect cost rates is set forth in CAM
1301.70.

PART 1344--SUBCONTRACTING POLICIES AND PROCEDURES

Subpart 1344.3--Contractors' Purchasing Systems Reviews
Sec.
1344.302 Requirements.

Authority: 41 U.S.C. 414; 48 CFR 1.301-1.304.

Subpart 1344.3--Contractors' Purchasing Systems Reviews

1344.302 Requirements.

The designee authorized to lower or raise the $25 million sales
threshold for performing a review to determine if a contractor
purchasing system review is needed is set forth in CAM 1301.70.

PART 1345--GOVERNMENT PROPERTY

Subpart 1345.1--General
Sec.
1345.107 Contract clauses.
1345.107-70 Government furnished property.
Subpart 1345.6--Reporting, Reutilization, and Disposal
1345.604 Disposal of surplus property.

Authority: 41 U.S.C. 414; 48 CFR 1.301-1.304.

Subpart 1345.1--General

1345.107 Contract clauses.

1345.107-70 Government furnished property.

Insert clause 1352.245-70, Government Furnished Property, when
Government property is to be furnished to the contractor and the
contractor will be accountable for, and have stewardship of, the
property.

Subpart 1345.6--Reporting, Reutilization, and Disposal

1345.604 Disposal of surplus property.

Surplus property shall be disposed of in accordance with procedures
outlined in the DOC Personal Property Management Manual.

PART 1346--QUALITY ASSURANCE

Subpart 1346.4--Government Contract Quality Assurance
Sec.
1346.401 General.
Subpart 1346.5--Acceptance
1346.503 Place of acceptance.
Subpart 1346.6--Material Inspection and Receiving Reports
1346.601 General.
Subpart 1346.7--Warranties
1346.704 Authority for use of warranties.
1346.705 Limitations.
1346.710 Contract clauses.

Authority: 41 U.S.C. 414; 48 CFR 1.301-1.304.

Subpart 1346.4--Government Contract Quality Assurance

1346.401 General.

Agency procedures for documenting government inspection are set
forth under Subpart 1346.6.

Subpart 1346.5--Acceptance

1346.503 Place of acceptance.

Insert a clause substantially similar to 1352.246-70, Place of
Acceptance, in contracts and solicitations to indicate where the
acceptance of supplies and/or services will take place.

Subpart 1346.6--Material Inspection and Receiving Reports

1346.601 General.

Each DOC operating unit shall develop instructions and procedures
regarding material inspection and receiving reports as appropriate.

Subpart 1346.7--Warranties

1346.704 Authority for use of warranties.

Contracting officers are authorized to approve the use of
warranties.

1346.705 Limitations.

Warranties in cost reimbursement contracts are authorized.

1346.710 Contract clauses.

The warranty clauses and alternates under FAR Subpart 46.710 may be
used in solicitations and contracts.

PART 1348--VALUE ENGINEERING

Subpart 1348.1--Policies and Procedures
Sec.
1348.102 Policies.
Subpart 1348.2--Contract Clauses
1348.201 Clauses for supply or service contracts.

Authority: 41 U.S.C. 414; 48 CFR 1.301-1.304.

Subpart 1348.1--Policies and Procedures

1348.102 Policies.

(a) Contracting activities shall send contractor-submitted Value
Engineering Change Proposals (VECPs) to the appropriate technical
personnel for review.
(b) Technical personnel shall conduct a comprehensive review of
VECPs for technical feasibility, usefulness, and adequacy of the
contractor's estimate of cost savings; make a written report; and
recommend acceptance or rejection to the contracting officer.
(c) The designee authorized to grant exemptions from value
engineering provisions in appropriate supply, service, architect-
engineer and construction contracts is set forth in CAM 1301.70.

Subpart 1348.2--Contract Clauses

1348.201 Clauses for supply or service contracts.

The designee authorized to grant exemptions from the requirements
of FAR Part 48 for a contract or class of contracts is set forth in CAM
1301.70.

PART 1349--TERMINATION OF CONTRACTS

Subpart 1349.1--General Principles
Sec.
1349.106 Fraud or other criminal conduct.
Subpart 1349.4--Termination for Default
1349.402 Termination of fixed-price contracts for default.
1349.402-3 Procedure for default.

Authority: 41 U.S.C. 414; 48 CFR 1.301-1.304.

[[Page 52571]]

Subpart 1349.1--General Principles

1349.106 Fraud or other criminal conduct.

If the terminating contracting officer (TCO) suspects fraud or
other criminal conduct related to the settlement of a terminated
contract, the TCO shall immediately discontinue negotiations and
prepare a written report concerning the matter. The report shall be
submitted to the Bureau Procurement Official, the Office of Inspector
General, and the DOC suspension and debarring official. An
informational copy shall be provided to Procurement Counsel.

Subpart 1349.4--Termination for Default

1349.402 Termination of fixed-price contracts for default.

1349.402-3 Procedure for default.

No action relating to a default termination, including issuance of
a show cause letter, cure notice, or notice of default, shall be taken
unless notice has been provided to Procurement Counsel and the
Procurement Executive, and the action has been reviewed for legal
sufficiency.

PART 1350--EXTRAORDINARY CONTRACTUAL ACTIONS

Subpart 1350.1--Extraordinary Contractual Actions
Sec.
1350.102 Delegation of and limitation on exercise of authority.
1350.102-1 Delegation of authority.

Authority: 41 U.S.C. 414; 48 CFR 1.301-1.304.

Subpart 1350.1--Extraordinary Contractual Actions

1350.102 Delegation of and limitation on exercise of authority.

1350.102-1 Delegation of authority.

(a) The designee authorized to approve requests to obligate the
government in excess of $55,000 under the extraordinary emergency
authority set forth in CAM 1301.70. Such authority may not be delegated
below the secretarial level for requests to obligate the Government in
excess of $55,000.
(b) The designee authorized to approve any amendment without
consideration that increases the contract price or unit price is set
forth in CAM 1301.70.
(c) The designee authorized to indemnify against unusually
hazardous or nuclear risks, including extension of such indemnification
to subcontracts, is set forth in CAM 1301.70.

Subchapter H--Clauses and Forms

PART 1352--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

Sec.
1352.000 Scope of part.
Subpart 1352.1--Instructions for Using Provisions and Clauses
1352.102 Incorporating provisions and clauses.
Subpart 1352.2--Text of Provisions and Clauses
1352.200 Scope of subpart.
1352.201-70 Contracting officer's authority.
1352.201-71 Ratification release.
1352.201-72 Contracting officer's representative (COR).
1352.208-70 Restrictions on printing and duplicating.
1352.209-70 Potential organizational conflict of interest.
1352.209-71 Limitation on future contracting.
1352.209-72 Restrictions against disclosure.
1352.209-73 Compliance with the laws.
1352.209-74 Organizational conflict of interest.
1352.209-75 Title 13 and non-disclosure requirements.
1352.213-70 Evaluation utilizing simplified acquisition procedures.
1352.213-71 Instructions for submitting quotations under the
simplified acquisition threshold--non-commercial.
1352.215-70 Proposal preparation.
1352.215-71 Instructions for oral presentations.
1352.215-72 Inquiries.
1352.215-73 Evaluation quantities--indefinite quantity contract.
1352.215-74 Best value evaluation.
1352.215-75 Evaluation criteria.
1352.215-76 Cost or pricing data.
1352.216-70 Estimated and allowable costs.
1352.216-71 Level of effort (cost-plus-fixed-fee, term contract).
1352.216-72 Determination of award fee.
1352.216-73 Distribution of award fee.
1352.216-74 Task orders.
1352.216-75 Minimum and maximum contract amounts.
1352.216-76 Placement of orders.
1352.216-77 Ceiling price.
1352.219-70 Section 8(a) direct award (Deviation).
1352.219-71 Notification to delay performance (Deviation).
1352.219-72 Notification of competition limited to eligible 8(a)
concerns, Alternate III (Deviation).
1352.227-70 Rights in data, assignment of copyright.
1352.228-70 Insurance coverage.
1352.228-71 Deductibles under required insurance coverage--cost
reimbursement.
1352.228-72 Deductibles under required insurance coverage--fixed
price.
1352.228-73 Loss of or damage to leased aircraft.
1352.228-74 Fair market value of aircraft.
1352.228-75 Risk and indemnities.
1352.228-76 Approval of group insurance plans.
1352.231-70 Precontract costs.
1352.231-71 Duplication of effort.
1352.233-70 Agency protests.
1352.233-71 GAO and Court of Federal Claims protests.
1352.235-70 Protection of human subjects.
1352.235-71 Protection of human subjects--exemption.
1352.235-72 Protection of human subjects--institutional approval.
1352.235-73 Research involving human subjects--after initial
contract award.
1352.237-70 Security processing requirements--high or moderate risk
contracts.
1352.237-71 Security processing requirements--low risk contracts.
1352.237-72 Security processing requirements--national security
contracts.
1352.237-73 Foreign national visitor and guest access to
departmental resources.
1352.237-74 Progress reports.
1352.237-75 Key personnel.
1352.239-70 Software license addendum.
1352.239-71 Electronic and information technology.
1352.239-72 Security requirements for information technology
resources.
1352.242-70 Postaward conference.
1352.245-70 Government furnished property.
1352.246-70 Place of acceptance.
1352.270-70 Period of performance.
1352.270-71 Pre-bid/pre-proposal conference and site visit.
1352.271-70 Inspection and manner of doing work.
1352.271-71 Method of payment and invoicing instructions for ship
repair.
1352.271-72 Additional item requirements (AIR)--growth work.
1352.271-73 Schedule of work.
1352.271-74 Foreseeable cost factors pertaining to different
shipyard locations.
1352.271-75 Delivery and shifting of the vessel.
1352.271-76 Performance.
1352.271-77 Delays.
1352.271-78 Minimization of delay due to Government furnished
property.
1352.271-79 Liability and insurance.
1352.271-80 Title.
1352.271-81 Discharge of liens.
1352.271-82 Department of Labor occupational safety and health
standards for ship repair.
1352.271-83 Government review, comment, acceptance and approval.
1352.271-84 Access to the vessel.
1352.271-85 Documentation of requests for equitable adjustment.
1352.271-86 Lay days.
1352.271-87 Changes--ship repair.
1352.271-88 Guarantees.
1352.271-89 Temporary services.
1352.271-90 Insurance requirements.
Subpart 1352.3--Provisions and Clauses Matrix
1352.301 Solicitation provisions and contract clauses (Matrix).

[[Page 52572]]

Authority: 41 U.S.C. 414; 48 CFR 1.301--1.304.

1352.000 Scope of part.

This part sets forth solicitation provisions and contract clauses,
in addition to those prescribed in FAR Part 52, for use in DOC
acquisitions.

Subpart 1352.1--Instructions for Using Provisions and Clauses.

1352.102 Incorporating provisions and clauses.

As stated in the FAR, provisions and clauses should be incorporated
by reference in solicitations and contracts to the maximum practical
extent, rather than being incorporated in full text. Incorporation by
reference is the listing only by title, regulatory citation, and date
of the provision or clause. The full text of the referenced
solicitation provision or contract clause is contained in the Code of
Federal Regulations (CFR). FAR provision and clauses are located at 48
CFR Chapter 1 and CAM provisions and clauses are located at 48 CFR
Chapter 13.

Subpart 1352.2--Text of Provisions and Clauses

1352.200 Scope of subpart.

This subpart sets forth the text of all CAR provisions and clauses
and provides a cross-reference to the location in the CAR that
prescribes their use.

1352.201-70 Contracting officer's authority.

As prescribed in 48 CFR 1301.602-170, insert the following clause:

Contracting Officer's Authority

The Contracting Officer is the only person authorized to make or
approve any changes in any of the requirements of this contract, and,
notwithstanding any provisions contained elsewhere in this contract,
the said authority remains solely in the Contracting Officer. In the
event the contractor makes any changes at the direction of any person
other than the Contracting Officer, the change will be considered to
have been made without authority and no adjustment will be made in the
contract terms and conditions, including price.

(End of clause)

1352.201-71 Ratification release.

As prescribed in 48 CFR 1301.602-3, insert the following clause:

Ratification Release (DATE)

(a) The Government agrees to pay the contractor $-------- for the
following items/services:

-----------------------------------------------------------------------
-----------------------------------------------------------------------

(b) In consideration for the sum stated above, which is to be paid
to the Contractor, or its assignees, the Contractor, upon payment of
the said sum by the UNITED STATES OF AMERICA (hereinafter called the
Government), does remise, release, and discharge the Government, its
officers, agents, and employees of and from all liabilities,
obligations, claims, and demands whatsoever under or arising from the
said contract, except:
(1) Specified claims in stated amounts or in estimated amounts
where the amounts are not susceptible of exact statement by the
Contractor, as follows: (or state ``None'').
(2) Claims, together with reasonable expenses incidental thereto,
based upon the liabilities of the Contractor to third parties arising
out of the performance of this contract, which are not known to the
Contractor on the date of the execution of this release and of which
the Contractor gives notice in writing to the Contracting Officer
within the period specified in said contract.
(3) Claims for reimbursement of costs (other than expenses of the
Contractor by reason of his indemnification of the Government against
patent liability) including reasonable expenses incidental thereto,
incurred by the Contractor under any provisions of the said contract
relating to patents.
(c) The Contractor agrees, in connection with patent maters and
with claims which are not released as set forth above, that it will
comply with provisions of the said contract, including without
limitation, those provisions relating to nofitication to the
Contracting Officer and relating to the defense or prosecution of
litigation.
Contractor's Signature:------------------------------------------------

Date:------------------------------------------------------------------

(End of clause)

1352.201-72 Contracting Officer's Representative (COR).

As prescribed in 48 CFR 1301.670-70, insert the following clause:

Contracting Officer's Representative (COR) (DATE)

(a) ------------ is hereby designated as the Contracting Officer's
Representative (COR). The COR may be changed at any time by the
Government without prior notice to the contractor by a unilateral
modification to the contract. The COR is located at:

-----------------------------------------------------------------------

Phone Number:----------------------------------------------------------

E-mail:----------------------------------------------------------------

-----------------------------------------------------------------------

(b) The responsibilities and limitations of the COR are as follows:
(1) The COR is responsible for the technical aspects of the
contract and serves as technical liaison with the contractor. The COR
is also responsible for the final inspection and acceptance of all
deliverables and such other responsibilities as may be specified in the
contract.
(2) The COR is not authorized to make any commitments or otherwise
obligate the Government or authorize any changes which affect the
contract price, terms or conditions. Any contractor request for changes
shall be referred to the Contracting Officer directly or through the
COR. No such changes shall be made without the express written prior
authorization of the Contracting Officer. The Contracting Officer may
designate assistant or alternate COR(s) to act for the COR by naming
such assistant/alternate(s) in writing and transmitting a copy of such
designation to the contractor.

(End of clause)

1352.208-70 Restrictions on printing and duplicating.

As prescribed in 48 CFR 1308.802-70, insert the following clause:

Restrictions on Printing and Duplicating (DATE)

(a) The contractor is authorized to duplicate or copy production
units provided the requirement does not exceed 5,000 production units
of any one page or 25,000 production units in the aggregate of multiple
pages. Such pages may not exceed a maximum image size of 10\3/4\ by
14\1/4\ inches. A ``production unit'' is one sheet, size 8\1/2\ x 11
inches (215 x 280 mm), one side only, and one color ink. Production
unit requirements are outlined in the Government Printing and Binding
Regulations.
(b) This clause does not preclude writing, editing, preparation of
manuscript copy, or preparation of related illustrative material as a
part of this contract, or administrative duplicating/copying (for
example, necessary forms and instructional materials used by the
contractor to respond to the terms of the contract).
(c) Costs associated with printing, duplicating, or copying in
excess of the limits in paragraph (a) of this clause are unallowable
without prior written approval of the Contracting Officer. If the
contractor has reason to believe that any activity required in
fulfillment of the contract will necessitate any

[[Page 52573]]

printing or substantial duplicating or copying, it shall immediately
provide written notice to the Contracting Officer and request approval
prior to proceeding with the activity. Requests will be processed by
the Contracting Officer in accordance with FAR 8.802.
(d) The contractor shall include in each subcontract which may
involve a requirement for any printing, duplicating, and copying in
excess of the limits specified in paragraph (a) of this clause, a
provision substantially the same as this clause, including this
paragraph (d).

(End of clause)

1352.209-70 Potential organizational conflict of interest.

As prescribed in 48 CFR 1309.507-1(a), insert the following
provision, modified appropriately:

Potential Organizational Conflict of Interest (DATE)

(a) There is a potential organizational conflict of interest (see
FAR Subpart 9.5, Organizational and Consultant Conflicts of Interest)
due to [state the nature of the potential conflict]. Accordingly:
(1) Restrictions are needed to ensure that (state the nature of the
proposed restraint and the applicable time period).
(2) As a part of the proposal, the offeror shall provide the
Contracting Officer with complete information regarding previous or
ongoing work that is in any way associated with the contemplated
acquisition.
(b) If award is made to the offeror, the resulting contract may
include an organizational conflict of interest limitation applicable to
subsequent Government work, at either a prime contract level, at any
subcontract tier, or both. During evaluation of proposals, the
Government may, after discussions with the offeror and consideration of
ways to avoid the conflict of interest, insert a provision in the
resulting contract that shall disqualify the offeror from further
consideration for award of specified future contracts.
(c) The organizational conflict of interest clause included in this
solicitation may be modified or deleted during negotiations.
Alternate I (DATE). At the discretion of the Contracting Officer,
substitute the following paragraph (b) for paragraphs (b) and (c) in
the basic provision:
(b) The organizational conflict of interest clause in this
solicitation may not be modified or deleted.

(End of clause)

1352.209-71 Limitation of future contracting.

As prescribed in 48 CFR 1309.507-2(a), insert the following clause:

Limitation of Future Contracting (DATE)

(a) The following restrictions and definitions apply to prevent
conflicting roles, which may bias the contractor's judgment or
objectivity, or to preclude the contractor from obtaining an unfair
competitive advantage in concurrent or future acquisitions.
(1) Descriptions or definitions:
(i) ``Contractor'' means the business entity receiving the award of
this contract, its parents, affiliates, divisions and subsidiaries, and
successors in interest.
(ii) ``Development'' means all efforts towards solution of broadly
defined problems. This may encompass research, evaluating technical
feasibility, proof of design and test, or engineering of programs not
yet approved for acquisition or operation.
(iii) ``Proprietary Information'' means all information designated
as proprietary in accordance with law and regulation, and held in
confidence or disclosed under restriction to prevent uncontrolled
distribution. Examples include limited or restricted data, trade
secrets, sensitive financial information, and computer software; and
may appear in cost and pricing data or involve classified information.
(iv) ``System'' means the system that is the subject of this
contract.
(v) ``System Life'' means all phases of the system's development,
production, or support.
(vi) ``Systems Engineering'' means preparing specifications,
identifying and resolving interface problems, developing test
requirements, evaluating test data, and supervising design.
(vii) ``Technical Direction'' means developing work statements,
determining parameters, directing other contractors' operations, or
resolving technical controversies.
(2) Restrictions: The contractor shall perform systems engineering
and/or technical direction, but will not have overall contractual
responsibility for the system's development, integration, assembly and
checkout, or production. The parties recognize that the contractor
shall occupy a highly influential and responsible position in
determining the system's basic concepts and supervising their execution
by other contractors. The contractor's judgment and recommendations
must be objective, impartial, and independent. To avoid the prospect of
the contractor's judgment or recommendations being influenced by its
own products or capabilities, it is agreed that the contractor is
precluded for the life of the system from award of a DOC contract to
supply the system or any of its major components, and from acting as a
subcontractor or consultant to a DOC supplier for the system or any of
its major components.
Alternate I (DATE). As prescribed in CFR 1309.507-2(a)(2), either
substitute paragraph (a)(2) of the basic clause with one or both of the
following paragraphs, or use one or both in addition to the basic
paragraph (a)(2).
(a)(2)(i) The contractor shall prepare and submit complete
specifications for nondevelopmental items to be used in a competitive
acquisition. The contractor shall not furnish these items to DOC,
either as a prime contractor or subcontractor, for the duration of the
initial production contract plus [insert a specific period of time or
an expiration date].
(ii) The contractor shall either prepare or assist in preparing a
work statement for use in competitively acquiring the [identify the
system or services], or provide material leading directly, predictably,
and without delay to such a work statement. The contractor may not
supply [identify the services, the system, or the major components of
the system] for a period [state the duration of the constraint,
however, the duration of the initial production contract shall be the
minimum], as either the prime or subcontractor unless it becomes the
sole source, has participated in the design or development work, or
more than one contractor has participated in preparing the work
statement.
Alternate II (DATE). As prescribed in 48 CFR 1309.507-2(a)(3),
either substitute paragraph (a)(2) of the basic clause with the
following paragraph, or add the following in addition to the basic
restriction. Redesignate the paragraphs as needed if more than one
restriction applies.
(a)(2) The contractor shall participate in the technical evaluation
of other contractors' proposals or products. To ensure objectivity, the
contractor is precluded from award of any supply or service contract or
subcontract for the system or its major components. This restriction
shall be effective for (insert a definite period of time).
Alternate III (DATE). As prescribed in 48 CFR 1309.507-2(a)(4), add
the following paragraph (b) to the basic clause:
(b) The contractor may gain access to proprietary information of
other companies during contract performance. The contractor agrees to
enter into company-to-company agreements to

[[Page 52574]]

protect another company's information from unauthorized use or
disclosure for as long as it is considered proprietary by the other
company, and to refrain from using the information for any purpose
other than that for which it was furnished. For information purposes,
the contractor shall furnish copies of these agreements to the
Contracting Officer. These agreements are not intended to protect
information which is available to the Government or to the contractor
from other sources and information furnished voluntarily without
restriction.
Alternate IV (DATE). As prescribed in 48 CFR 1309.507-2(a)(5), add
the following paragraph (b) to the basic clause substantially as
written. If Alternate III is also used, designate this paragraph (c).
(b) The contractor agrees to accept and to complete all issued task
orders, and to not contract with Government prime contractors or first-
tier subcontractors in such a way as to create an organizational
conflict of interest
Alternate V (DATE). As prescribed in 48 CRF 1309.507-2(a)(6), add
the following paragraph (b) to the basic clause. If more than one
Alternate is used, redesignate this paragraph accordingly.
(b) The contractor agrees to accept and to complete issued delivery
orders, provided that no new organizational conflicts of interest are
created by the acceptance of such orders. The Contracting Officer shall
identify any and all organizational conflicts of interest in each
order. The contractor shall not contract with Government prime
contractors or first-tier subcontractors in such a way as to create an
organizational conflict of interest.
Alternative VI (DATE). As prescribed in 48 CFR 1309.507-2(a)(7),
add the following paragraph (b) to the basic clause. If either
Alternate III or IV or both are used, redesignate this paragraph
accordingly.
(b) The above restrictions shall be included in all subcontracts,
teaming arrangements, and other agreements calling for performance of
work which is subject to the organizational conflict of interest
restrictions identified in this clause, unless excused in writing by
the Contracting Officer.

(End of clause)

1352.209-72 Restrictions against disclosure.

As prescribed in 48 CFR 1309.507-2(b), insert the following clause:

Restrictions Against Disclosure (DATE)

(a) The contractor agrees, in the performance of this contract, to
keep the information furnished by the Government or acquired/developed
by the contractor in performance of the contract and designated by the
Contracting Officer or Contracting Officer's Representative, in the
strictest confidence. The contractor also agrees not to publish or
otherwise divulge such information, in whole or in part, in any manner
or form, nor to authorize or permit others to do so, taking such
reasonable measures as are necessary to restrict access to such
information while in the contractor's possession, to those employees
needing such information to perform the work described herein, i.e., on
a ``need to know'' basis. The contractor agrees to immediately notify
the Contracting Officer in writing in the event that the contractor
determines or has reason to suspect a breach of this requirement has
occurred.
(b) The contractor agrees that it will not disclose any information
described in subsection (a) to any person unless prior written approval
is obtained from the Contracting Officer. The contractor agrees to
insert the substance of this clause in any consultant agreement or
subcontract hereunder.

(End of clause)

1352.209-73 Compliance with the laws.

As prescribed in 48 CFR 1309.507-2(c), insert the following clause:

Compliance With the Laws (DATE)

The contractor shall comply with all applicable laws, rules and
regulations which deal with or relate to performance in accord with the
terms of the contract.

(End of clause)

1352.209-74 Organizational conflict of interest.

As prescribed in 48 CFR 1309.507-2(d), insert the following clause:

Organizational Conflict of Interest (DATE)

(a) Purpose. The purpose of this clause is to ensure that the
contractor and its subcontractors:
(1) Are not biased because of their financial, contractual,
organizational, or other interests which relate to the work under this
contract, and
(2) Do not obtain any unfair competitive advantage over other
parties by virtue of their performance of this contract.
(b) Scope. The restrictions described herein shall apply to
performance or participation by the contractor, its parents,
affiliates, divisions and subsidiaries, and successors in interest
(hereinafter collectively referred to as ``contractor'') in the
activities covered by this clause as a prime contractor, subcontractor,
co-sponsor, joint venturer, consultant, or in any similar capacity. For
the purpose of this clause, affiliation occurs when a business concern
is controlled by or has the power to control another or when a third
party has the power to control both.
(c) Warrant and Disclosure. The warrant and disclosure requirements
of this paragraph apply with full force to both the contractor and all
subcontractors. The contractor warrants that, to the best of the
contractor's knowledge and belief, there are no relevant facts or
circumstances which would give rise to an organizational conflict of
interest, as defined in FAR Subpart 9.5, and that the contractor has
disclosed all relevant information regarding any actual or potential
conflict. The contractor agrees it shall make an immediate and full
disclosure, in writing, to the Contracting Officer of any potential or
actual organizational conflict of interest or the existence of any
facts that may cause a reasonably prudent person to question the
contractor's impartiality because of the appearance or existence of
bias or an unfair competitive advantage. Such disclosure shall include
a description of the actions the contractor has taken or proposes to
take in order to avoid, neutralize, or mitigate any resulting conflict
of interest.
(d) Remedies. The Contracting Officer may terminate this contract
for convenience, in whole or in part, if the Contracting Officer deems
such termination necessary to avoid, neutralize or mitigate an actual
or apparent organizational conflict of interest. If the contractor
fails to disclose facts pertaining to the existence of a potential or
actual organizational conflict of interest or misrepresents relevant
information to the Contracting Officer, the Government may terminate
the contract for default, suspend or debar the contractor from
Government contracting, or pursue such other remedies as may be
permitted by law or this contract.
(e) Subcontracts. The contractor shall include a clause
substantially similar to this clause, including paragraphs (f) and (g),
in any subcontract or consultant agreement at any tier expected to
exceed the simplified acquisition threshold. The terms ``contract,''
``contractor,'' and ``Contracting Officer'' shall be appropriately
modified to preserve the Government's rights.

[[Page 52575]]

(f) Prime Contractor Responsibilities. The contractor shall obtain
from its subcontractors or consultants the disclosure required in FAR
Part 9.507-1, and shall determine in writing whether the interests
disclosed present an actual, or significant potential for, an
organizational conflict of interest. The contractor shall identify and
avoid, neutralize, or mitigate any subcontractor organizational
conflict prior to award of the contract to the satisfaction of the
Contracting Officer. If the subcontractor's organizational conflict
cannot be avoided, neutralized, or mitigated, the contractor must
obtain the written approval of the Contracting Officer prior to
entering into the subcontract. If the contractor becomes aware of a
subcontractor's potential or actual organizational conflict of interest
after contract award, the contractor agrees that the Contractor may be
required to eliminate the subcontractor from its team, at the
contractor's own risk.
(g) Waiver. The parties recognize that this clause has potential
effects which will survive the performance of this contract and that it
is impossible to foresee each circumstance to which it might be applied
in the future. Accordingly, the contractor may at any time seek a
waiver from the Head of the Contracting Activity by submitting such
waiver request to the Contracting Officer, including a full written
description of the requested waiver and the reasons in support thereof.

(End of clause)

1352.209-75 Title 13 and non-disclosure requirements.

As prescribed in 48 CFR 1309.507-2(e), insert the following clause:

Title 13 and Non-Disclosure Requirements (DATE)

The Census Bureau's data are protected by Title 13 of the United
States Code. The contractor may not use Title 13 data for any purpose
other than the intended purpose for which it is supplied or obtained.
All contractor personnel who will have access to Title 13 data must
take an oath and complete the Census Bureau Form BC-1759 (Special Sworn
Status) that requires nondisclosure of Title 13 data. An authorized
Census employee or a Notary Public must administer the oath of
nondisclosure.

(End of clause)

1352.213-70 Evaluation utilizing simplified acquisition procedures.

As prescribed in 48 CFR 1313.106-2-70, insert the following
provision:

Evaluation Utilizing Simplified Acquisition Procedures (DATE)

The Government will issue an order resulting from this request for
quotation to the responsible offeror whose quotation results in the
best value to the Government, considering both price and non-price
factors. The following factors will be used to evaluate quotations:
[This section is to be tailored to conform to individual
procurements. Text is provided as an example only. Stating relative
importance of the evaluation factors is not required.]
(1) Personnel Qualifications. The experience, education, and
qualifications of personnel proposed to work on the contract will be
evaluated to determine their ability to perform their proposed duties.
(2) Technical Approach and Capability. The offeror's approach to
performing contract requirements and its capability to successfully
perform the contract will be evaluated.
(3) Past Performance. The offeror's past performance on related
contracts will be evaluated to determine, as appropriate, successful
performance of contract requirements, quality and timeliness of
delivery of goods and services, cost management, communications between
contracting parties, proactive management and customer satisfaction.
(4) Price.

(End of clause)

1352.213-71 Instructions for submitting quotations under the
simplified acquisition threshold--non-commercial.

As prescribed in 48 CFR 1313.302-1-70, insert the following
provision:

Instructions for Submitting Quotations Under the Simplified Acquisition
Threshold--Non-Commercial (DATE)

(a) North American Industry Classification System (NAICS) code and
small business size standard. The NAICS code and small business size
standard for this acquisition is ------------.
(b) Submission of quotations. Submit quotations to the office
specified in this solicitation at or before the exact time specified in
this solicitation. At a minimum, quotations must show--
(1) The solicitation number;
(2) The name, address, and telephone number of the offeror;
(3) Acknowledgment of solicitation amendments;
(4) A technical description showing that the offeror can supply the
requirements in the specifications or statement of work in sufficient
detail to allow the Government to evaluate the quotation in accordance
with the evaluation factors stated in the solicitation;
(5) Past performance information, when included as an evaluation
factor, to include recent and relevant contracts for the same or
similar items and reference information (including contract numbers,
points of contact with telephone numbers and other relevant
information); and
(6) Price and any supporting details for the price, as requested in
the solicitation.
(c) Offerors are responsible for submitting quotations, and any
modifications thereto, so as to reach the Government office designated
in the solicitation by the time specified. The offeror's initial
quotation should contain the offeror's best terms from a price and
technical standpoint. The Government may reject any or all quotations
if such action is in the public interest; accept other than the lowest
quotation; and waive informalities and minor irregularities in
quotations received.

(End of clause)

1352.215-70 Proposal preparation.

As prescribed in 48 CFR 1315.204-570(a)(1), insert the following
provision, tailored as applicable:

Proposal Preparation (DATE)

(a) General Instructions. Proposals are expected to conform to
solicitation provisions and be prepared in accordance with this
section. To aid in evaluation, the proposal shall be clearly and
concisely written, neatly presented, indexed (cross-indexed as
appropriate), and logically assembled. All pages of each part shall be
appropriately numbered and identified with the name of the offeror, the
date of the offer, and the solicitation number. Each volume shall be
clearly marked by volume number and title.
(b) Overall Arrangement of Proposal.
(1) VOLUME I--BUSINESS PROPOSAL
(i) Volume I, Business Proposal, consists of the actual offer to
enter into a contract to perform the desired work. It also includes
required representations, certifications, and acknowledgments, if
applicable; justifications for noncompetitive proposed subcontracts;
identification of technical data to be withheld; and any other required
administrative information.
(ii) Format and Content. Volume I, Business Proposal, shall include
the following documents (in the order listed):
(A) Proposal Form:

[[Page 52576]]

(1) Use of the Form--The Proposal Form (Standard Form 33 or 1449),
is to be executed fully and used as the cover sheet (or first page) of
Volume I. Include three (3) original signed copies of the form in the
original Volume I.
(2) Acceptance Period--The acceptance period entered on the
Proposal Form by the offeror shall not be less than that prescribed in
the solicitation, which shall apply if no other period is offered.
(3) Signature Authority--The person signing the Proposal Form must
have the authority to commit the offeror to all of the provisions of
the proposal, fully recognizing that the Government has the right, by
terms of the Solicitation, to make an award without discussion if it so
elects.
(B) Other documentation identified in Section (A) above. The
offeror shall submit one original of Volume I, marked as such.
(2) VOLUME II--TECHNICAL PROPOSAL
(i) General. (A) Volume II, technical proposal, consists of the
offeror's proposal delineating its capabilities and how it intends to
perform contract requirements. The Technical proposal will be evaluated
in accord with the criteria contained in Section M.
(B) In order that the technical proposal may be evaluated strictly
on the merit of the material submitted, no contractual price
information is to be included in Volume II. However, the type and
quantity of labor and materials is to be included in the Technical
Proposal, without any associated cost information.
(C) The technical proposal must be typed, double-spaced, with one
inch margins, using elite font, 12 pitch type (or equivalent) and
printed, unreduced in size, on 8\1/2\'' by 11'' paper, not exceeding --
-- pages, single-sided, exclusive of resumes and related corporate
experience documentation. Any pages in excess of ---- will be
disregarded, and will not be included in the proposal evaluation.
Failure of the offeror to comply with the page limitations, resulting
in the excess pages not being evaluated, shall not constitute grounds
for a protest.
(ii) Format and Content. Volume II, Technical Proposal, shall
include the following contents:
(A) Table of Contents
(B) List of Tables and Figures
(C) Summary of Technical Proposal
(D) Technical Proposal
(E) Exceptions and Deviations
These major headings may be subdivided or supplemented by the
offeror as appropriate.
(1) Summary. This section shall provide a summary that addresses
each of the technical evaluation factors set out in Section M.
(2) Technical Proposal. The offeror shall clearly address each of
the technical evaluation criteria in Section M, and, at a minimum,
cover each subfactor.
(3) Exceptions and Deviations. This section shall identify and
explain any exceptions or deviations taken to any part of the
solicitation or conditional assumptions made with respect to the
technical requirements of the solicitation. Offerors should note that
taking exceptions to the Government's requirements may indicate an
unwillingness or inability to perform the contract, and the proposal
may be evaluated as such.
(iii) Specific areas to be addressed:
[This section is to be tailored to conform to the technical
evaluation factors. Text is provided as an example. Provide
instructions concerning what information is required in order to
evaluate proposals in accord with the evaluation factors. Do not
request information that is not covered in an evaluation factor.]
Evaluation Factor 1--Technical Approach. Provide information on how
the project is to be organized, staffed, and managed that demonstrates
the offeror's understanding and effective management of important
events or tasks. If applicable, the offeror shall (i) describe the
facilities and equipment which will be used in the performance of the
contract, and (ii) how the management and coordination of consultant
and subcontractor efforts will be accomplished. Fully discuss how the
contract requirements will be met and the means used to accomplish
them. Merely repeating the contract requirements and stating that they
will be accomplished, without discussing how the offeror will
accomplish them, is not acceptable.
Evaluation Factor 2--Experience. In a general fashion, describe the
offeror's experience and qualifications to perform the contract
requirements. Explain how the experience provides confidence that the
offeror can perform all contract requirements.
Evaluation Factor 3--Key Personnel. Provide the names, titles, and
a description of the duties of those individuals proposed as key
personnel to be assigned to the contract. For each key person, submit a
resume that provides information concerning their education,
background, recent work experience, and accomplishments. Specify the
approximate percentage of time each individual will be available for
this project, and, if necessary, explain why the key person possesses
the qualifications to perform the proposed position.
Evaluation Factor 4--Past Performance. Complete the Past
Performance Questionnaire (Attachment X) for all contracts containing
requirements similar in scope to those in the Statement of Work
performed in whole or part over the last ---- years. References can
include both Government and commercial contracts and subcontracts.
The offeror shall submit one original of Volume II, marked as such,
and -------- copies.
(3) VOLUME III--PRICE/COST PROPOSAL
(i) Price/Cost proposals must generally adhere to the pricing
structure established in Section B, Schedule of Prices. The offeror
shall submit one original of Volume III, marked as such, and --------
copies.
[INSERT FOR COST TYPE CONTRACTS:]
(ii) The offeror must also submit the following detailed
information to support its proposed costs, as applicable:
(A) Direct Labor: Breakdown of direct labor cost by named person or
labor category including number of labor-hours and current actual
average hourly rates based on a work year of 2,080 hours. Indicate
whether current rates or escalated rates are used. If escalation is
included, state the degree (percent) and methodology. Direct labor or
levels of effort are to be identified as labor-hours and not as a
percentage of an individual's time. Indicate fringe benefit rate, if
separate from indirect cost rate.
(B) Other Direct Costs: Specify the amount proposed for
duplication/reproduction, meetings and conferences, postage,
communication and any other applicable items. Travel, subsistence and
local transportation shall be supported with a breakdown, which shall
include: number of trips anticipated, number of person days, cost-per-
trip-per person, destination(s) proposed, number of person(s) scheduled
for travel, mode of transportation, and mileage allowances, if
privately-owned vehicles will be used.
(C) Materials: Cost breakdown of materials or equipment must be
supported with the methodology used and vendor quotations supplied as
applicable.
(D) Consultants: If consultants are proposed, state the total
estimated price of the services to be required and the consultant's
quoted daily or hourly rate. Include Consulting Agreements entered

[[Page 52577]]

into between consultant(s) and the offeror, or invoices submitted by
consultant(s) for similar services previously provided to the offeror.
(E) Subcontracts: If proposed, cost information for each
subcontractor shall be furnished in the same format and level of detail
as prescribed for the prime offeror. Additionally, in relation to such
subcontracts, the offeror shall submit the following information:
(1) A description of the items to be furnished by the
subcontractor;
(2) Identification of the proposed subcontractor and an explanation
of why and how the proposed subcontractor was selected, including the
extent of competition;
(3) The proposed subcontract price and cost detail and performance/
delivery schedule; and
(4) Identification of the type of subcontract to be used.
(F) Indirect Rates: Offerors lacking Government-approved indirect
cost rates must provide detailed background data indicating the cost
elements included in the applicable pool and a statement that such
treatment is in accordance with the company's established accounting
practice. Offerors with established rate agreements with cognizant
Federal agencies shall submit one copy of such agreements.
(G) Profit: Specify the profit proposed and the rationale
justifying the amount of profit.
[INSERT FOR FIXED-PRICE TYPE CONTRACTS:]
(iii) Each offeror's price proposal must be based on the offeror's
own technical proposal, the Government's specifications, and other
contractual requirements. If the prices to be used are based on a
published price list or catalog, the offeror shall so state, and
provide a copy of the document with its price proposal. If the prices
are to be based on established market prices, not otherwise published,
or are prices applicable only to the proposed contract, the offeror
shall so state.
(iv) The Government expects that this contract will be awarded
based upon adequate price competition. However, in order to determine
that offered prices are fair and reasonable, the Government reserves
the right to request that the offeror provide cost breakdowns to
support proposed prices. Information to support unit prices should
include, but not be limited to, the following:
(A) Salary/wage information with associated payroll expenses, for
personnel to be used in performance of the contract;
(B) Cost for equipment, supplies, and consumable materials;
(C) A breakout of related support costs, such as equipment
maintenance, rental, transportation, etc.;
(D) Overhead costs;
(E) General Administrative expenses; and
(F) Profit

(End of clause)

1352.215-71 Instructions for oral presentations.

As prescribed in 48 CFR 1315.204-570(a)(2), insert the following
provision:

Instructions for Oral Presentations (DATE)

The Government intends to conduct oral presentations with the
offerors in the competitive range as part of the evaluation process.
Oral presentations will be conducted at the following location:
[INSERT LOCATION]
The Contracting Officer will determine the order of oral
presentations and the schedule. The Contracting Officer will contact
each offeror to schedule the date and time for oral presentations and
provide detailed instructions. Once a presentation date and time are
confirmed, rescheduling is at the discretion of the Contracting
Officer.

(End of clause)

1352.215-72 Inquiries.

As prescribed in 48 CFR 1315.204-570(a)(3), insert the following
provision:

Inquiries (DATE)

Offerors must submit all questions concerning this solicitation in
writing to --------. Questions should be received no later than ----
calendar days after the issuance date of this solicitation. Any
responses to questions will be made in writing, without identification
of the questioner, and will be included in an amendment to the
solicitation. Even if provided in other form, only the question
responses included in the amendment to the solicitation will govern
performance of the contract.

(End of clause)

1352.215-73 Evaluation quantities-indefinite quantity contract.

As prescribed in 48 CFR 1315.204-570(b)(1), insert the following
provision:

Evaluation Quantities-Indefinite Quantity Contract (DATE)

To evaluate offers for award purposes, the Government will apply
the offeror's proposed fixed-prices/rates to the estimated quantities
included in the solicitation (and add to this amount other direct
costs, if applicable).

(End of clause)

1352.215-74 Best value evaluation.

As prescribed in 48 CFR 1315.204-570(b)(2), insert the following
provision:

Best Value Evaluation (DATE)

(a) Award will be made to the offeror: whose offer conforms to the
solicitation requirements; who is determined responsible in accordance
with FAR Subpart 9.1 by possessing the financial and other capabilities
to fulfill the requirements of the contract; and whose proposal is
judged, by an integrated assessment of price/cost and non-price
evaluation factors, to provide the best value to the Government in
accordance with CAR 1352.215-75, Evaluation Criteria.
(b) The Government intends to award [specify ``a single contract''
or ``multiple contracts''] in response to the solicitation. The
Government reserves the right not to award a contract depending on the
quality of the proposals submitted and the availability of funds.
(c) Evaluation of Proposals
(1) Initial Evaluation of Proposals. All offers received will be
evaluated in accordance with the stated evaluation factors. The
Government reserves the right to make an award without discussions
based solely upon initial proposals. Therefore, offerors should ensure
that their initial proposal constitutes their best offer in terms of
both price and the technical solution being proposed.
If award is not made upon initial proposals, then the Contracting
Officer will establish a competitive range comprised of the most highly
rated proposals. If the Contracting Officer determines that the number
of proposals that would otherwise be in the competitive range exceeds
the number at which an efficient competition can be conducted, the
Contracting Officer may limit the number of proposals in the
competitive range to the greatest number that will permit an efficient
competition among the most highly- rated proposals. Only those offerors
in the competitive range will be offered an opportunity to participate
further in the procurement.
(2) Discussions/Final Proposal Revisions. The Contracting Officer
will engage in discussions with all offerors in the competitive range
in accordance with FAR 15.306. At the conclusion of discussions, a
final common cut-off date for submission of final proposal revisions
will be established. Those offerors remaining in the competitive range
will be notified to submit Final Proposal Revisions.

[[Page 52578]]

(3) Final Evaluation of Offers. A final proposal evaluation will be
performed after receipt of Final Proposal Revisions.

(End of clause)

1352.215-75 Evaluation criteria.

As prescribed in 48 CFR 1315.204-570(b)(2) and (3), insert the
following provision:

Evaluation Criteria (DATE)

[This section is to be tailored to conform to individual
procurements. Text is provided as an example only.]
In determining which proposal provides the best value to the
Government, non-price (technical) evaluation factors are [significantly
more important/somewhat more important/approximately equal in
importance/somewhat less important/significantly less important] than
evaluated price.
[Insert relative importance among the technical evaluation
factors.]
Based upon the results of the integrated assessment of the
technical and cost/price proposals, the Government may make an award to
other than the lowest-priced offeror or the offeror with the highest
technical score if the source selection official determines that to do
so would result in the best value to the Government.
(a) Technical Evaluation Factors
Factor 1--Technical Approach. The proposal will be evaluated on how
the offeror intends to organize, staff and manage the contract and the
means that will be used to accomplish the contract requirements. The
degree to which the proposal demonstrates an understanding of the
requirements will be evaluated, as well as the offeror's planned
management of consultants and subcontractors, if applicable.
Factor 2--Experience. The offeror's background, experience, and
qualifications will be assessed to determine the likelihood that that
offeror can successfully perform the contract requirements and the
degree of the risk of non-performance.
Factor 3--Key Personnel. The education, experience, and
accomplishments of key personnel will be evaluated to determine the
degree to which they possess the qualifications to perform their
proposed duties under the contract.
Factor 4--Past Performance. The offeror's past performance on
related contracts will be evaluated to determine, as appropriate,
successful performance of contract requirements, quality and timeliness
of delivery of goods and services, effective management of
subcontractors, cost management, level of communication between the
contracting parties, proactive management and customer satisfaction.
The Government reserves the right to assess the past performance of
proposed subcontractors.
The Government will use its discretion to determine the sources of
past performance information used in the evaluation, and the
information may be obtained from references provided by the offeror,
the agency's knowledge of contractor performance, other government
agencies or commercial entities, or past performance databases.
If an offeror does not have a history of relevant contract
experience, or if past performance information is not available, the
offeror will receive a neutral past performance rating; however, an
offeror without a history of relevant experience may receive a lowered
rating for the experience evaluation factor.
(b) Cost/Price Evaluation
(1) The proposed prices/costs will be evaluated but not scored. The
cost evaluation will determine whether the proposed costs are
realistic, complete, and reasonable in relation to the solicitation
requirements. Proposed costs must be entirely compatible with the
technical proposal.
(2) The Government may use the results of cost/price realism
analysis to adjust the offeror's proposal to a most probable cost to
the Government. The analysis may include information from a government
auditing agency, Government technical personnel, and other sources.

(End of clause)

1352.215-76 Cost or pricing data.

As prescribed in 48 CFR 1315.204-570(b)(4), insert the following
provision:

Cost or Pricing Data

Additional Instructions for Preparation of Cost/Price Proposals
(a) General. In addition to the information required by CAR
1352.215-70, the cost/price proposal must contain an explanation of the
offeror's and proposed subcontractors' fully burdened rates, including
direct salary rates, overhead rates, and profit; and information
regarding other direct costs.
(b) Specific Requirements. (1) Direct Salary Rates: The offeror
shall list the categories of professional or technical personnel
required to perform the Statement of Work. A brief definition of the
education and experience requirements which qualify an employee for
inclusion in a listed category should be provided. Further, if some
proposed labor categories are classified by multiple grades within a
given discipline (e.g., Architect I and II, or Senior and Junior
Engineer), a brief explanation as to how they are differentiated shall
be provided.
(2) The offeror, and major subcontractors, should provide
individual rates for key personnel. Designation of an individual as a
key person is subject to agreement of the parties. Where no key
personnel are listed, category average rates are appropriate. Rates
should be provided by year for the life of the contract. If rates are
escalated, the degree (percent) and methodology must be shown.
Escalation increases should reflect recent experience or established
personnel policy. Types of salary increases given--merit, cost of
living, etc.--should be discussed.
(3) Overhead Costs. Generally, the offeror's accounting system and
estimating practices will determine the method used to allocate
overhead costs. The offeror's established practices, if in accordance
with generally accepted accounting principles, will be accepted.
Proposed overhead rates should represent the offeror's best estimate of
the rates to be experienced during the contract period as projected by
company budgets or by recent experience adjusted for factors which will
influence trends. A narrative statement outlining the offeror's
policies and practices for accumulating overhead costs and the method
used to compute the proposed rate or rates is required. In the case of
multi-branch firms, joint ventures or affiliates, it is expected that
overhead costs applicable to the specific location(s) where work is to
be performed will be proposed. Company-wide, joint venture, or
affiliate rate averages may not be appropriate. The rates should be
tailored to the work location(s).
(4) Profit. (i) A fair and reasonable provision for profit cannot
be made by simply applying a certain predetermined percentage to the
total estimated cost. Rather, profit should be established as a
percentage/dollar amount after considering such factors as:
(A) Degree of risk;
(B) Nature of the work to be performed;
(C) Joint venture responsibilities;
(D) Extent of offeror's investment;
(E) Subcontracting of work; and
(F) Other criteria discussed in FAR 15.404-4.
(ii) Separate percentage rates for profit are also required for
major subcontractors.
(5) Markup. The offeror may request a markup on subcontract labor.
If it does

[[Page 52579]]

so, it should state the percentage and provide a justification for that
figure.
(6) Other Direct Costs. The offeror shall briefly describe the
following:
(i) Travel/Subsistence costs;
(ii) Subcontractor costs; and
(iii) How subcontracting costs were analyzed.
(c) Audit Reports. If the offeror or any subcontractor has been
audited by a Government agency within the last two years, or has
approved indirect cost rates, provide a copy of the audit report, or,
if not available, the name, address, and telephone number of the audit
office. Similarly, information on any Government-approved indirect cost
rates should be provided.
(End of clause)

1352.216-70 Estimated and allowable costs.

As prescribed in 48 CFR 1316.307(a), insert the following clause:

Estimated and Allowable Costs (DATE)

(a) Estimated Costs. The estimated cost of this contract is $------
-- [insert total cost of contract], which consists of $-------- [insert
amount of cost that is reimbursable] for reimbursable costs and $------
-- [insert amount of fixed fee] for fixed/incentive fee. These costs
shall be subject to the provisions of FAR clause 52.232-20,
``Limitation of Cost,'' FAR clause 52.216-7, ``Allowable Cost and
Payments,'' and FAR clause 52.216-8, ``Fixed Fee.''
(b) Subject to Availability of Funds [Insert paragraph (b) when the
contract is issued subject to the availability of funds].
``The amount of funding for this contract is $-------- [insert
amount being funded], which consists of $-------- [insert amount of
reimbursable costs funded] for reimbursable costs and $-------- [insert
amount of fixed fee funded] for Fixed/Incentive Fee. These costs shall
be subject to the provisions of FAR 52.232-22, `Limitations of Funds.'
''
(c) Allowable Costs.
(1) Final annual indirect cost rate(s) and the appropriate base(s)
shall be established in accordance with FAR Subpart 42.7, in effect for
the period covered by the indirect cost rate proposal.
(2) Until final annual indirect cost rates are established for any
period, the Government shall reimburse the contractor at billing rates
established by the Contracting Officer (or cognizant Federal agency
official) or auditor in accordance with FAR 42.704, subject to
adjustment when the final rates are established. The established
billing rates are currently as follows:

------------------------ [Insert billing rate]
(End of clause)

1352.216-71 Level of effort (cost-plus-fixed-fee, term contract).

As prescribed in 48 CFR 1316.307(b), insert the following clause:

Level of Effort (Cost-Plus-Fixed-Fee, Term Contract) (DATE)

(a) In performance of the effort directed in this contract, the
contractor shall provide the total of Direct Productive Labor Hours
(DPLH) as specified in Part I, Section B during the term specified in
Section ----. DPLH is defined as actual work hours exclusive of
vacation, holidays, sick leave, and other absences.
(b) Only the DPLH categories indicated below shall be charged
directly to the contract. It is estimated that the DPLH will be
expended approximately as follows:

----------------------------------------------------------------------------------------------------------------
Option Period Option Period
Labor Category Base Period Option Period I II III
----------------------------------------------------------------------------------------------------------------
xxxxxxxxxx.................................. xxxx xxxx xxxx xxxx
xxxxxxxxxx.................................. xxxx xxxx xxxx xxxx
-------------------------------------------------------------------
Total Direct Labor...................... xxxx xxxx xxxx xxxx
----------------------------------------------------------------------------------------------------------------

(c) The hours specified above are provided as estimates only. If
the actual amount of hours incurred falls within 90% to 110% of this
estimate, the fee shall not be adjusted.
(d) In the event that the contractor shall be required to provide
less than 90% of the estimated DPLH, the fixed fee of the contract
shall be equitably adjusted by unilateral modification to the contract.
The fixed fee adjustment shall be based solely upon the difference
between the DPLH actually provided and 90% of the estimated DPLH,
calculated as follows:

Adjusted Fixed Fee = (Actual DPLH/(.9 x Estimated DPLH)) x Specified
Fixed Fee

(e) In the event that the contractor shall be required to provide
more than 110% of the estimated DPLH, the fixed fee of the Contract
shall be equitably adjusted by unilateral modification to the Contract.
The fixed fee adjustment shall be based solely upon the difference
between the DPLH actually provided and 110% of the estimated DPLH,
calculated as follows:

Adjusted Fixed Fee = (Actual DPLH/(1.1 x Estimated DPLH)) x Specified
Fixed Fee

(f) These terms and conditions do not supersede the requirements of
either FAR clause 52.232-20 ``Limitation of Cost'' or FAR clause
52.232-22 ``Limitation of Funds.''

(End of clause)

1352.216-72 Determination of award fee.

As prescribed in 48 CFR 1316.405-2, insert the following clause:

Determination of Award Fee (DATE)

Based upon the quality of its performance and the results of the
Government's performance evaluation, the contractor may earn an award
fee.
(a) The total amount of award fee available under this contract is
assigned according to the following:
[insert appropriate information]
(b) A Performance Evaluation Plan shall be unilaterally established
by the Government as part of the contract and used for the
determination of award fees. This plan shall include the criteria that
will be used to evaluate the contractor's performance and to determine
the percentage of award fee (if any) available for each performance
period.
(c) The criteria contained within the Performance Evaluation Plan
may relate to:
(1) Quality of performance of the contract requirements;
(2) Effective management of the contract; and
(3) Cost controls.
(d) The Performance Evaluation Plan may be revised unilaterally by
the Government at any time during the period of performance, however
unless mutually-agreed to a revision shall not affect the current
evaluation period. Notification of such changes shall be provided to
the contractor [insert number] calendar days prior to the start of the
evaluation period to which the change will apply.
(e) At the conclusion of each evaluation period, and in accordance

[[Page 52580]]

with the performance evaluation plan, a determination of the amount of
the award fee earned shall be made in writing to the contractor by the
Government Fee Determination Official (FDO). The FDO's unilateral
determination of the amount of award fee earned in any evaluation
period or a determination that no fee was earned shall be conclusive.
(f) The contractor may submit a self-evaluation of its performance
in an evaluation period. The FDO shall consider the self-evaluation, as
the FDO deems appropriate.
(g) The contractor shall submit a voucher for payment of any earned
award fee.
(End of clause)

1352.216-73 Distribution of award fee.

As prescribed in 48 CFR 1316.406, insert the following clause:

Distribution of Award Fee (DATE)

(a) The total amount of award fee available under this contract is
assigned according to the following:
[insert appropriate information]
(b) Payment of the base fee and award fee shall be made, provided
that after payment of 85 percent of the base fee and potential award
fee, the Government may withhold further payment of the base fee and
award fee until a reserve is set aside in an amount that the Government
considers necessary to protect its interest. This reserve shall not
exceed 15 percent of the total base fee and potential award fee.
(c) In the event of contract termination for convenience, either in
whole or in part, the amount of award fee available shall represent a
prorated distribution associated with evaluation period activities or
events as determined by the Government.
(d) The Government will promptly make payment of any award fee upon
submission by the contractor to the Contracting Officer's authorized
representative of a public voucher or invoice in the amount of the
total fee earned for the period evaluated. Payment may be made without
executing a contract modification.
(End of clause)

1352.216-74 Task orders.

As prescribed in 48 CFR 1316.501-2-70, insert the following clause:

Task Orders (DATE)

(a) In task order contracts, all work shall be initiated only by
issuance of fully executed task orders issued by the Contracting
Officer. The work to be performed under these orders must be within the
scope of the contract. The Government is only liable for labor hours
and costs expended under the terms and conditions of this contract to
the extent that a fully executed task order has been issued and covers
the required work and costs. Charges for any work not authorized shall
be disallowed.
(b) For each task order under the contract, the Contracting Office
shall send a request for proposal to the contractor(s). The request
will contain a detailed description of the tasks to be achieved, a
schedule for completion of the task order, and deliverables to be
provided by the contractor.
(c) The contractor shall submit a proposal defining the technical
approach to be taken to complete the task order, work schedule and
proposed cost/price.
(d) After any necessary negotiations, the contractor shall submit a
final proposal.
(e) Task orders will be considered fully executed upon signature of
the Contracting Officer. The contractor shall begin work on the task
order in accordance with the effective date of the order.
(f) The contractor shall notify the Contracting Officer of any
instructions or guidance given that may impact the cost, schedule or
deliverables of the task order. A formal modification to the task order
must be issued by the Contracting Officer before any changes can be
made.
(g) Task orders may be placed during the period of performance of
the contract. Labor rates applicable to hours expended in performance
of an order will be the contract rates that are in effect at the time
the task order is issued.
(h) If multiple awards are made by the Government, the CO shall
provide each awardee a fair opportunity to be considered for each task
order over the micro-purchase threshold unless one of the exceptions at
FAR 16.505(b) applies.
(End of Clause)

1352.216-75 Minimum and maximum contract amounts.

As prescribed in 48 CFR 1316.506(a), insert the following clause:

Minimum and Maximum Contract Amounts (DATE)

During the term of the contract, the Government shall place orders
totaling a minimum of ------------. The amount of all orders shall not
exceed ------------.
(End of clause)

1352.216-76 Placement of orders.

As prescribed in 48 CFR 1316.506(b), insert the following clause:

Placement of Orders (DATE)

(a) The contractor shall provide goods and/or services under this
contract only as directed in orders issued by authorized individuals.
In accordance with FAR 16.505, each order will include:
(1) Date of order;
(2) Contract number and order number;
(3) Item number and description, quantity, and unit price or
estimated cost or fee;
(4) Delivery or performance date;
(5) Place of delivery or performance (including consignee);
(6) Packaging, packing, and shipping instructions, if any;
(7) Accounting and appropriation data;
(8) Method of payment and payment office, if not specified in the
contract;
(9) Any other pertinent information.
(b) In accordance with FAR 52.216-18, Ordering, the following
individuals (or activities) are authorized to place orders against this
contract:
-----------------------------------------------------------------------

-----------------------------------------------------------------------

(c) If multiple awards have been made, the contact information for
the DOC task and delivery order ombudsman is ------------.
(End of clause)

1352.216-77 Ceiling price.

As prescribed in 48 CFR 1316.601-70 and 1316.602-70, insert the
following clause:

Ceiling Price (DATE)

The ceiling price of this contract is $--------. The contractor
shall not make expenditures nor incur obligations in the performance of
this contract which exceed the ceiling price specified herein, except
at the contractor's own risk.
(End of clause)

1352.219-70 Section 8(a) direct award (Deviation).

As prescribed in 48 CFR 1319.811-3(a), insert the following clause:

Section 8(a) Direct Award (Deviation) (DATE)

(a) This contract is issued as a direct award between the
contracting activity and the 8(a) contractor pursuant to a Partnership
Agreement between the Small Business Administration (SBA) and the
Department of Commerce (DOC). Accordingly, the SBA, even if not
identified in Section A of this contract, is the prime contractor and
retains responsibility for 8(a) certification, 8(a) eligibility

[[Page 52581]]

determinations and related issues, and providing counseling and
assistance to the 8(a) contractor under the 8(a) program. The cognizant
SBA district office is:

-----------------------------------------------------------------------

[To be completed by the Contracting Officer at time of award]
(b) The contracting activity is responsible for administering the
contract and taking any action on behalf of the Government under the
terms and conditions of the contract. However, the contracting activity
shall give advance notice to the SBA before it issues a final notice
terminating performance, either in whole or in part, under the
contract. The contracting activity shall also coordinate with SBA prior
to processing any novation agreement. The contracting activity may
assign contract administration functions to a contract administration
office.
(c) The 8(a) contractor agrees:
(1) To notify the Contracting Officer, simultaneously with its
notification to SBA (as required by SBA's 8(a) regulations), when the
owner or owners upon whom 8(a) eligibility is based plan to relinquish
ownership or control of the concern. Consistent with 15 U.S.C
637(a)(21), transfer of ownership or control shall result in
termination of the contract for convenience, unless SBA waives the
requirement prior to the actual relinquishing of ownership or control;
and
(2) To adhere to the requirements of FAR 52.219-14, Limitations on
Subcontracting.
(End of Clause)

1352.219-71 Notification to delay performance (Deviation).

As prescribed in 48 CFR 1319.811-3(b), insert the following clause:

Notification To Delay Performance (Deviation) (DATE)

The contractor shall not begin performance under this purchase
order until 2 working days have passed from the date of its receipt.
Unless the contractor receives notification from the Small Business
Administration that it is ineligible for this 8(a) award, or otherwise
receives instructions from the Contracting Officer, performance under
this purchase order may begin on the third working day following
receipt of the purchase order. If a determination of ineligibility is
issued within the 2-day period, the purchase order shall be considered
cancelled.
(End of clause)

1352.219-72 Notification of competition limited to eligible 8(a)
concerns, Alternate III (Deviation).

As prescribed in 48 CFR 1319.811-3 (c), insert the following
clause:

Notification of Competition Limited to Eligible 8(a) Concerns,
Alternate III (Deviation) (DATE)

(a) Offers are solicited only from small business concerns
expressly certified by the Small Business Administration (SBA) for
participation in the SBA's 8(a) Program and which meet the following
criteria at the time of submission of offers--
(1) The Offeror is in conformance with the 8(a) support limitation
set forth in its approved business plan; and
(2) The Offeror is in conformance with the Business Activity
Targets set forth in its approved business plan or any remedial action
directed by the SBA.
(b) By submission of its offer, the Offeror represents that it
meets all of the criteria set forth in paragraph (a) of this clause.
(c) Any award resulting from this solicitation shall be made
directly by the Contracting Officer to the successful 8(a) offeror
selected through the evaluation criteria set forth in this
solicitation.
(d)(1) Agreement. A small business concern submitting an offer in
its own name shall furnish, in performing the contract, only end items
manufactured or produced by small business concerns in the United
States or its outlying areas. If this procurement is processed under
simplified acquisition procedures and the total amount of this contract
does not exceed $25,000, a small business concern may furnish the
product of any domestic firm. This paragraph does not apply to
construction or service contracts.
(2) ------------ [insert name of contractor] will notify the ------
------ [insert name of contracting agency] Contracting Officer in
writing immediately upon entering an agreement (either oral or written)
to transfer all or part of its stock or other ownership interest to any
other party.
(End of clause)

1352.227-70 Rights in data, assignment of copyright.

As prescribed in 48 CFR 1327.404-4(a), insert the following clause:

Rights in Data, Assignment of Copyright (DATE)

In accordance with 48 CFR 52.227-17, Rights in Data--Special Works,
the contractor agrees to assign copyright to data, including reports
and other copyrightable materials, first produced in performance of
this contract to the United States Government, as represented by the
Secretary of Commerce.
(End of clause)

1352.228-70 Insurance coverage.

As prescribed in 48 CFR 1328.310-70(a), insert the following
clause:

Insurance Coverage (DATE)

(a) Workers Compensation and Employer's Liability. The contractor
is required to comply with applicable Federal and State workers'
compensation and occupational disease statutes. If occupational
diseases are not compensable under those statutes, they shall be
covered under the employer's liability section of the insurance policy,
except when contract operations are so commingled with a contractor's
commercial operations that it would not be practical to require this
coverage. Employer's liability coverage of at least $100,000 shall be
required, except in States with exclusive or monopolistic funds that do
not permit workers' compensation to be written by private carriers.
(b) General liability. (1) The contractor shall have bodily injury
liability insurance coverage written on the comprehensive form of
policy of at least $500,000 per occurrence.
(2) When special circumstances apply in accordance with FAR 28.307-
2(b), Property Damage Liability Insurance shall be required in the
amount of $-------- [insert zero unless special circumstances apply, if
applicable, insert dollar amount.].
(c) Automobile liability. The contractor shall have automobile
liability insurance written on the comprehensive form of policy. The
policy shall provide for bodily injury and property damage liability
covering the operation of all automobiles used in connection with
performing the contract. Policies covering automobiles operated in the
United States shall provide coverage of at least $200,000 per person
and $500,000 per occurrence for bodily injury and $20,000 per
occurrence for property damage.
(d) Aircraft public and passenger liability. When aircraft are used
in connection with performing the contract, the contractor shall have
aircraft public and passenger liability insurance. Coverage shall be at
least $200,000 per person and $500,000 per occurrence for bodily
injury, other than passenger liability, and $200,000 per occurrence for
property damage. Coverage for passenger liability bodily injury shall
be at least $200,000

[[Page 52582]]

multiplied by the number of seats or passengers, whichever is greater.
(e) Vessel liability. When contract performance involves use of
vessels, the Contractor shall provide, vessel collision liability and
protection and indemnity liability insurance as determined by the
Government.
(End of clause)

1352.228-71 Deductibles under required insurance coverage--cost
reimbursement.

As prescribed in 48 CFR 1328.310-70(c), insert the following
clause:

Deductibles Under Required Insurance Coverage--Cost Reimbursement
(DATE)

(a) The contractor is required to present evidence of the amount of
any deductibles in its insurance coverage.
(b) For any insurance required pursuant to 1352.228-70, Insurance
Coverage, the contractor's deductible is not allowable as a direct or
indirect cost under this contract. The Government is not liable, and
cannot be invoiced, for any losses up to the minimum amounts of
coverage required in paragraphs (a) through (d) of clause 1352.228-70.
If the contractor obtains an insurance policy with deductibles, the
contractor, and not the Government, is responsible for any deductible
amount up to the minimum amounts of coverage stated.
(c) If the contractor fails to follow all procedures stated in this
subsection and in FAR 52.228-7(g), any amounts above the amount of the
obtained insurance coverage which are not covered by insurance will not
be reimbursable under the contract.
(End of clause)

1352.228-72 Deductibles under required insurance coverage--fixed
price.

As prescribed in 48 CFR 1328.310-70(d), insert the following
clause:

Deductibles under Required Insurance Coverage-Fixed Price (DATE)

When the Government is injured, wholly or partially as a result of
the contractor's actions and such actions are covered by the insurance
required by 1352.228-70, Insurance Coverage, the Government is entitled
to recover from the contractor the full amount of any such injury
attributable to the contractor regardless of a deductible. The
Contracting Officer may offset the amount of recovery against any
payment due to the contractor.
(End of clause)

1352.228-73 Loss of or damage to leased aircraft.

As prescribed in 48 CFR 1328.310-70(e) and 1328.310-70(f), insert
the following clause:

Loss of or Damage To Leased Aircraft (DATE)

(a) The Government assumes all risk of loss of, or damage (except
normal wear and tear) to, the leased aircraft during the term of this
lease while the aircraft is in the possession of the Government.
(b) In the event of damage to the aircraft, the Government, at its
option, shall make the necessary repairs with its own facilities or by
contract, or pay the contractor the reasonable cost of repair of the
aircraft.
(c) In the event the aircraft is lost or damaged beyond repair, the
Government shall pay the contractor a sum equal to the fair market
value of the aircraft at the time of such loss or damage, which value
may be specifically agreed to in clause 1252.228-74, Fair Market Value
of Aircraft, less the salvage value of the aircraft. However, the
Government may retain the damaged aircraft or dispose of it as it
wishes. In that event, the contractor will be paid the fair market
value of the aircraft as stated in the clause.
(d) The contractor agrees that the contract price does not include
any cost attributable to hull insurance or to any reserve fund it has
established to protect its interest in the aircraft. If, in the event
of loss or damage to the leased aircraft, the contractor receives
compensation for such loss or damage in any form from any source, the
amount of such compensation shall be:
(1) Credited to the Government in determining the amount of the
Government's liability; or
(2) For an increment of value of the aircraft beyond the value for
which the Government is responsible.
(e) In the event of loss of or damage to the aircraft, the
Government shall be subrogated to all rights of recovery by the
contractor against third parties for such loss or damage and the
contractor shall promptly assign such rights in writing to the
Government.
(End of clause)

1352.228-74 Fair market value of aircraft.

As prescribed in 48 CFR 1328.310-70(e) and 48 CFR 1328.310-70(g)
insert the following in all applicable contracts for leased aircraft:

Fair Market Value of Aircraft (DATE)

For purposes of the clause entitled ``Loss of or Damage to Leased
Aircraft,'' it is agreed that the fair market value of the aircraft to
be used in the performance of this contract shall be the lesser of the
two values set out in paragraphs (a) and (b) below:
(a) $ --------; or
(b) If the contractor has insured the same aircraft against loss or
destruction in connection with other operations, the amount of such
insurance coverage on the date of the loss or damage is the maximum
amount for which the Government may be responsible under this contract.
(End of clause)

1352.228-75 Risk and indemnities.

As prescribed in 48 CFR 1328.310-70(e) and 48 CFR 1328.310-70(h),
insert the following in all applicable contracts for leased aircraft:

Risk and Indemnities (DATE)

The contractor hereby agrees to indemnify and hold harmless the
Government, its officers and employees from and against all claims,
demands, damages, liabilities, losses, suits and judgments (including
all costs and expenses incident thereto) which may be suffered by,
accrue against, be charged to or recoverable from the Government, its
officers and employees by reason of injury to or death of any person
other than officers, agents, or employees of the Government or by
reason of damage to property of others of whatsoever kind (other than
the property of the Government, its officers, agents or employees)
arising out of the operation of the aircraft. In the event the
contractor holds or obtains insurance in support of this covenant,
evidence of insurance shall be delivered to the Contracting Officer.

1352.228-76 Approval of group insurance plans.

As prescribed in 48 CFR 1328.310-70(i), insert the following
clause:

Approval of Group Insurance Plans (DATE)

Under cost-reimbursement contracts, before buying insurance under a
group insurance plan, the contractor shall submit the plan for approval
to the Contracting Officer. Any change in benefits provided under an
approved plan that can reasonably be expected to increase significantly
the cost to the Government shall require similar approval.
(End of clause)

1352.231-70 Precontract costs.

As prescribed in 48 CFR 1331.205-32, insert the following clause:

Precontract Costs (DATE)

The contractor is entitled to reimbursement for allowable,
allocable, and reasonable costs incurred during the period of ---- to
the award date of this contract in an amount not to exceed $ --------.

[[Page 52583]]

(End of clause)

1352.231-71 Duplication of effort.

As prescribed in 48 CFR 1331.205-70, insert the following clause:

Duplication of Effort (DATE)

The contractor hereby certifies that costs for work to be performed
under this contract and any subcontract hereunder are not duplicative
of any costs charged against any other Government contract,
subcontract, or other Government source. The contractor agrees to
advise the Contracting Officer, in writing, of any other Government
contract or subcontract it has performed or is performing which
involves work directly related to the purpose of this contract. The
contractor also certifies and agrees that any and all work performed
under this contract shall be directly and exclusively for the use and
benefit of the Government, and not incidental to any other work,
pursuit, research, or purpose of the contractor, whose responsibility
it will be to account for it accordingly.
(End of clause)

1352.233-70 Agency protests.

As prescribed in 48 CFR 1333.103(a), insert the following
provision:

Agency Protests (DATE)

(a) An agency protest may be filed with either: (1) The contracting
officer, or (2) at a level above the contracting officer, with the
appropriate agency Protest Decision Authority. See 64 FR 16,651 (April
6, 1999)
(b) Agency protests filed with the Contracting Officer shall be
sent to the following address: [Insert Contracting Officer name and
Address]
(c) Agency protests filed with the agency Protest Decision
Authority shall be sent to the following address: Insert appropriate
Protest Decision Authority name and Address]
(d) A complete copy of all agency protests, including all
attachments, shall be served upon the Contract Law Division of the
Office of the General Counsel within one day of filing a protest with
either the Contracting Officer or the Protest Decision Authority.
(e) Service upon the Contract Law Division shall be made as
follows: U.S. Department of Commerce, Office of the General Counsel,
Chief, Contract Law Division, Room 5893, Herbert C. Hoover Building,
14th Street and Constitution Avenue, NW., Washington, DC 20230. FAX:
(202) 482-5858.
(End of clause)

1352.233-71 GAO and Court of Federal Claims protests.

As prescribed in 48 CFR 1333.104-70(a), insert the following
provision:

GAO and Court of Federal Claims Protests (DATE)

(a) A protest may be filed with either the Government
Accountability Office (GAO) or the Court of Federal Claims unless an
agency protest has been filed.
(b) A complete copy of all GAO or Court of Federal Claims protests,
including all attachments, shall be served upon (i) the Contracting
Officer, and (ii) the Contract Law Division of the Office of the
General Counsel, within one day of filing a protest with either GAO or
the Court of Federal Claims.
(c) Service upon the Contract Law Division shall be made as
follows: U.S. Department of Commerce, Office of the General Counsel,
Chief, Contract Law Division, Room 5893, Herbert C. Hoover Building,
14th Street and Constitution Avenue, NW., Washington, DC 20230. FAX:
(202) 482-5858.
(End of clause)

1352.235-70 Protection of human subjects.

As prescribed in 48 CFR 1335.006(a), insert the following
provision:

Protection of Human Subjects (DATE)

(a) Research involving human subjects is not permitted under this
award unless expressly authorized in writing by the Contracting
Officer. Such authorization will specify the details of the approved
research involving human subjects and will be incorporated by reference
into this contract.
(b) The Federal Policy for the Protection of Human Subjects (the
``Common Rule''), adopted by the Department of Commerce at 15 CFR Part
27, requires contractors to maintain appropriate policies and
procedures for the protection of human subjects in research. The Common
Rule defines a ``human subject'' as a living individual about whom an
investigator conducting research obtains data through intervention or
interaction with the individual, or identifiable private information.
The term ``research'' means a systematic investigation, including
research development, testing and evaluation, designed to develop or
contribute to generalizable knowledge. The Common Rule also sets forth
categories of research that may be considered exempt from 15 CFR Part
27. These categories may be found at 15 CFR 27.101(b).
(c) In the event the human subjects research involves pregnant
women, prisoners, or children, the contractor is also required to
follow the guidelines set forth at 45 CFR Part 46 Subpart B, C and D,
as appropriate, for the protection of members of a protected class.
(d) Should research involving human subjects be included in the
proposal, prior to issuance of an award, the contractor shall submit
the following documentation to the Contracting Officer:
(1) Documentation to verify that contractor has established a
relationship with an appropriate Institutional Review Board
(``cognizant IRB''). An appropriate IRB is one that is located within
the United States and within the community in which the human subjects
research will be conducted;
(2) Documentation to verify that the cognizant IRB possesses a
valid registration with the United States Department of Health and
Human Services' Office for Human Research Protections (``OHRP'');
(3) Documentation to verify that contractor has a valid Federal-
wide Assurance (FWA) issued by OHRP.
(e) Prior to starting any research involving human subjects, the
contractor shall submit appropriate documentation to the Contracting
Officer for institutional review and approval. This documentation may
include:
(1) Copies of the human subjects research protocol, all
questionnaires, surveys, advertisements, and informed consent forms
approved by the cognizant IRB;
(2) Documentation of approval for the human subjects research
protocol, questionnaires, surveys, advertisements, and informed consent
forms by the cognizant IRB;
(3) Documentation of continuing IRB approval by the cognizant IRB
at appropriate intervals as designated by the IRB, but not less than
annually; and/or
(4) Documentation to support an exemption for the project from the
Common Rule [NOTE: this option is not available for activities that
fall under 45 CFR Part 46 Subpart C].
(f) In addition, if the contractor modifies a human subjects
research protocol, questionnaire, survey, advertisement, or informed
consent form approved by the cognizant IRB, the contractor shall submit
a copy of all modified material along with documentation of approval
for said modification by the cognizant IRB to the Contracting Officer
for institutional review and approval. The contractor shall not
implement any IRB approved-modification without written approval by the
Contracting Officer.

[[Page 52584]]

(g) No work involving human subjects may be undertaken, conducted,
or costs incurred and/or charged to the project, until the Contracting
Officer approves the required appropriate documentation in writing.
[End of provision]

1352.235-71 Protection of human subjects--exemption.

As prescribed in 48 CFR 1335.006(b), insert the following clause:

Protection of Human Subjects (DATE)

(a) Contractor has satisfied the requirements set forth in
solicitation ------------, related to the Protection of Human
Subjects in research. The Government has determined that the research
involving human subjects to be conducted under this contract is exempt
from the requirements of the Common Rule for the Protection of Human
Subjects. The exemption memorandum executed by the Government and the
attachments are hereby incorporated by reference into this contract. If
contractor uses an informed consent form for the exempt research,
contractor must use the informed consent form contained in the
attachments in its conduct of research involving human subjects under
this contract.
(b) If the conditions upon which the exemption is based should
change in any way, contractor shall immediately notify the Contracting
Officer in writing of the specified change. The Government will review
the change and make a determination as to whether the change requires a
change to the exemption approval. Contractor shall not proceed until
notified in writing of the Contracting Officer's approval. Contractor
shall obtain prior written approval from the Contracting Officer for
any change to the existing human subjects protocol or informed consent
form before proceeding.
(c) No other research involving human subjects is permitted under
this award unless expressly authorized in writing by the Contracting
Officer. Such writing will specify the details of the approved research
involving human subjects and will be incorporated by reference into
this contract.
(d) The Federal Policy for the Protection of Human Subjects (the
``Common Rule''), adopted by the Department of Commerce at 15 CFR Part
27, requires contractors to maintain appropriate policies and
procedures for the protection of human subjects in research. The Common
Rule defines a ``human subject'' as a living individual about whom an
investigator conducting research obtains data through intervention or
interaction with the individual, or identifiable private information.
The term ``research'' means a systematic investigation, including
research development, testing and evaluation, designed to develop or
contribute to generalizable knowledge.
(e) The Common Rule also sets forth categories of research that may
be considered exempt from this policy. These categories may be found at
15 CFR 27.101(b).
(f) In the event the human subjects research involves pregnant
women, prisoners, or children, contractor is also required to follow
the guidelines set forth at 45 CFR Part 46 Subpart B, C and D, as
appropriate, for the protection of members of a protected class.
(g) Should additional research involving human subjects be required
under the contract, prior to beginning such research, contractor shall
submit the following documentation to the Contracting Officer:
(1) Documentation to verify that contractor has established a
relationship with an appropriate Institutional Review Board
(``cognizant IRB''). An appropriate IRB is one that is located within
the United States and within the community in which the human subjects
research will be conducted;
(2) Documentation to verify that the cognizant IRB is registered
with the United States Department of Health and Human Services' Office
for Human Research Protections (``OHRP'') and is designated as
contractor's cognizant IRB;
(3) Documentation to verify that contractor has a valid Federal-
wide Assurance (FWA) issued by OHRP; or
(4) Documentation necessary to support a determination that the
research is exempt from the requirements of the Common Rule for the
Protection of Human Subjects.
(h) Prior to starting any additional research involving human
subjects, the contractor shall submit appropriate documentation to the
Contracting Officer for institutional review and approval or exemption
determination. This documentation may include:
(1) Copies of the human subjects research protocol, all
questionnaires, surveys, advertisements, and informed consent forms
approved by the cognizant IRB;
(2) Documentation of approval for the human subjects research
protocol, questionnaires, surveys, advertisements, and informed consent
forms by the cognizant IRB;
(3) Documentation of continuing IRB approval by the cognizant IRB
at appropriate intervals as designated by the IRB, but not less than
annually; and/or
(4) Documentation to support an exemption for the project from the
Common Rule [NOTE: this option is not available for activities that
fall under 45 CFR Part 46 Subpart C].
(i) In addition, if the contractor modifies a human subjects
research protocol, questionnaire, survey, advertisement, or informed
consent form approved by the cognizant IRB, the contractor shall submit
a copy of all modified material along with documentation of approval
for said modification by the cognizant IRB to the Contracting Officer
for institutional review and approval. The contractor may not implement
any IRB approved modification without written approval by the
Contracting Officer. No work involving human subjects may be
undertaken, conducted, or costs incurred and/or charged to the project,
until the Contracting Officer approves the required appropriate
documentation in writing.
(End of clause)

1352.235-72 Protection of human subjects--institutional approval.

As prescribed in 48 CFR 1335.006(c), insert the following clause:

Protection of Human Subjects--Institutional Approval (DATE)

(a) This contract/order includes non-exempt human subjects research
that must be conducted pursuant to the requirements of the Federal
Policy for the Protection of Human Subjects (the ``Common Rule''),
adopted by the Department of Commerce at 15 CFR Part 27. Contractor has
submitted documentation establishing review and approval of the human
subjects research protocol, including all informed consent forms,
advertisements, and other recruitment materials, by a qualified
Institutional Review Board (IRB) that has a current Federal-wide
Assurance (FWA) issued by the Department of Health and Human Services
(DHHS).
(b) By accepting this contract/order, the contractor certifies the
accuracy of the documentation provided to its cognizant IRB and to the
Government in support of the human subjects research specified therein.
Based upon the contractor's documentation, and following the Government
institutional review thereof, the following specific involvement of
human subjects in research is hereby approved by the Contracting
Officer:

Name of IRB: -------- (IRB ----)

Title of IRB Protocol: ------------------------------------------------

Recruiting Letter Approval Date (if appropriate): ---------------------

Consent Form Approval Date: -------------------------------------------

[[Page 52585]]

-----------------------------------------------------------------------
Assurance of Compliance Number: ---------------------------------------

(c) Unless incorporated by written contract modification approved
by the Contracting Officer, no other involvement of human subjects in
research under this contract may be undertaken or conducted, or costs
incurred and/or charged to the project, except as specified in the
study plan reviewed and approved by the cognizant IRB and Government.
Therefore, if the contractor modifies a human subjects research
protocol, advertisement, or informed consent form approved by the
cognizant IRB, contractor shall submit a copy of all modified material,
along with documentation of approval for said modification by the
cognizant IRB, to the Contracting Officer for agency institutional
review and approval. Contractor may not implement any IRB-approved
modification without written approval by the Contracting Officer.
Documentation of continuing IRB approval is required each year by the
renewal date assigned by the cognizant IRB. Documentation of continuing
IRB approval must be submitted to the Government for review and
approval as soon as it occurs. Continuing approval of the human
subjects research must be obtained from the cognizant IRB and provided
to the Government until the research is completed or terminated. The
contractor may proceed with previously approved human subjects
research, if any, under this contract while the Government is
conducting continuing review and approval of the human subjects
research protocol. In the event that the Government determines, during
the course of its review, that the human subjects research in this
contract is not in compliance with the regulations set forth at 15 CFR
Part 27, or this contract, the Contracting Officer may take the
appropriate enforcement action, including disallowing costs, suspending
or terminating the human subjects protocol or the contract, by
notifying the contractor in writing.
(d) It is incumbent upon contractor to ensure that continuing IRB
review approval occurs in accordance with 15 CFR Part 27. In the event
that continuing review approval does not occur as set forth by 15 CFR
Part 27, contractor is to notify the Contracting Officer immediately.
(e) Contractor must report all adverse events to the cognizant IRB
and to the Contracting Officer. In the event that adverse events are
reported to the cognizant IRB and the Contracting Officer, the
Government may suspend this contract pending a full review of the
adverse event by the cognizant IRB.
(f) If the conditions upon which IRB approval is based should
change in any way, contractor shall immediately notify the Contracting
Officer, in writing, of the specified change.
(g) Failure to comply with this contract clause will be considered
material noncompliance with the contract, and the Contracting Officer
may take appropriate enforcement action, including disallowing costs,
suspension or termination of the contract.
(End of clause)

1352.235-73 Research involving human subjects--after initial contract
award.

As prescribed in 48 CFR 1335.006(d), insert the following clause:

Research Involving Human Subjects--After Initial Contract Award (DATE)

(a) No research involving human subjects is currently included in
this contract/task order, and no research involving human subjects is
permitted under this contract/task order unless expressly authorized,
in writing, by the Contracting Officer.
(b) The Federal Policy for the Protection of Human Subjects (the
``Common Rule''), adopted by the Department of Commerce at 15 CFR Part
27, requires that contractors maintain appropriate policies and
procedures for the protection of human subjects in research. The Common
Rule defines a ``human subject'' as a living individual about whom an
investigator conducting research obtains data through intervention or
interaction with the individual, or identifiable private information.
The term ``research'' means a systematic investigation, including
research, development, testing and evaluation, designed to develop or
contribute to generalizable knowledge.
(c) The Common Rule also sets forth categories of research that may
be considered exempt from this policy. These categories are specified
at 15 CFR 27.101(b).
(d) In the event that human subjects research involves pregnant
women, prisoners, or children, the contractor is also required to
follow the guidelines set forth at 45 CFR Part 46 Subparts B, C and D,
as appropriate, for the protection of members of a protected class.
(e) Should research involving human subjects become necessary for
carrying out this contract/task order, prior to undertaking or
conducting such human subjects research, contractor shall submit the
following documentation to the Contracting Officer:
(1) Documentation to verify that contractor has established a
relationship with an appropriate Institutional Review Board
(``cognizant IRB''). An appropriate IRB is one that is located within
the United States and within the community in which the human subjects
research will be conducted;
(2) Documentation to verify that the cognizant IRB is registered
with the United States Department of Health and Human Services' Office
for Human Research Protections (``OHRP'');
(3) Documentation to verify that contractor has a valid Federal-
wide Assurance (FWA) issued by the OHRP.
(f) Prior to starting any research involving human subjects,
contractor shall submit appropriate documentation to the Contracting
Officer for Government institutional review and approval. This
documentation may include:
(1) Copies of the human subjects research protocol, advertisements,
recruitment material, and informed consent forms approved by the
cognizant IRB;
(2) Documentation of approval for the human subjects research
protocol, advertisements, recruitment material, and informed consent
forms by the cognizant IRB;
(3) Documentation of continuing IRB approval by the cognizant IRB
at appropriate intervals as designated by the IRB, but not less than
annually; and/or
(4) Documentation to support an exemption for the project from the
Common Rule [NOTE: this option is not available for activities that
fall under 45 CFR Part 46 Subpart C].
(g) In addition, if contractor modifies a human subjects research
protocol, advertisement, recruitment material, or informed consent form
approved by the cognizant IRB, contractor shall submit a copy of all
modified material, along with documentation of approval for said
modification by the cognizant IRB, to the Contracting Officer for
Agency institutional review and approval. Contractor may not implement
any IRB-approved modification without written approval by the
Contracting Officer.
(h) No work involving human subjects may be undertaken, conducted,
or costs incurred and/or charged to the project, until the Contracting
Officer approves the required appropriate documentation in writing.
(End of clause)

1352.237-70 Security processing requirements--high or moderate risk
contracts.

As prescribed in 48 CFR 1337.110-70 (b), insert the following
clause:

[[Page 52586]]

Security Processing Requirements--High or Moderate Risk Contracts
(DATE)

(a) Investigative Requirements for High and Moderate Risk
Contracts. All contractor (and subcontractor) personnel proposed to be
employed under a High or Moderate Risk contract shall undergo security
processing by the Department's Office of Security before being eligible
to work on the premises of any Department of Commerce owned, leased, or
controlled facility in the United States or overseas, or to obtain
access to a Department of Commerce IT system. All Department of
Commerce security processing pertinent to this contract will be
conducted at no cost to the contractor. The level of contract risk will
determine the type and scope of such processing, as noted below.
(1) Investigative requirements for Non-IT Service Contracts are:
(i) High Risk--Background Investigation (BI).
(ii) Moderate Risk--Moderate Background Investigation (MBI).
(2) Investigative requirements for IT Service Contracts are:
(i) High Risk IT--Background Investigation (BI).
(ii) Moderate Risk IT--Background Investigation (BI).
(b) In addition to the investigations noted above, non-U.S.
citizens must have a pre-appointment check that includes an Immigration
and Customs Enforcement agency check.
(c) Additional Requirements for Foreign Nationals (Non-U.S.
Citizens). To be employed under this contract within the United States,
non-U.S. citizens must have:
(1) Official legal status in the United States;
(2) Continuously resided in the United States for the last two
years; and
(3) Obtained advance approval from the servicing Security Officer
of the contracting operating unit in consultation with the DOC Office
of Security (OSY) headquarters. (OSY routinely consults with
appropriate agencies regarding the use of non-U.S. citizens on
contracts and can provide up-to-date information concerning this
matter.)
(d) Security Processing Requirement. Processing requirements for
High and Moderate Risk Contracts are as follows:
(1) The contractor must complete and submit the following forms to
the Contracting Officer's Representative (COR):
(i) Standard Form 85P (SF-85P), Questionnaire for Public Trust
Positions;
(ii) FD-258, Fingerprint Chart with OPM's designation in the ORI
Block; and
(iii) Credit Release Authorization.
(2) The Sponsor will ensure that these forms have been properly
completed, initiate the CD-254, Contract Security Classification
Specification, and forward the documents to the cognizant Security
Officer.
(3) Upon completion of security processing, the Office of Security,
through the servicing Security Officer and the Sponsor, will notify the
contractor in writing of an individual's eligibility to be provided
access to a Department of Commerce facility or Department of Commerce
IT system.
(4) Security processing shall consist of limited personal
background inquiries pertaining to verification of name, physical
description, marital status, present and former residences, education,
employment history, criminal record, personal references, medical
fitness, fingerprint classification, and other pertinent information.
For non-U.S. citizens, the Sponsor must request an Immigration and
Customs Enforcement agency check. It is the option of the Office of
Security to repeat the security processing on any contract employee at
its discretion.
(e) Notification of Disqualifying Information. If the Office of
Security receives disqualifying information on a contract employee, the
COR will be notified. The Sponsor, in coordination with the Contracting
Officer, will immediately remove the contract employee from duties
requiring access to Departmental facilities or IT systems. Contract
employees may be barred from working on the premises of a facility for
any of the following:
(1) Conviction of a felony crime of violence or of a misdemeanor
involving moral turpitude;
(2) Falsification of information entered on security screening
forms or on other documents submitted to the Department;
(3) Improper conduct once performing on the contract, including
criminal, infamous, dishonest, immoral, or notoriously disgraceful
conduct or other conduct prejudicial to the Government, regardless of
whether the conduct was directly related to the contract;
(4) Any behavior judged to pose a potential threat to Departmental
information systems, personnel, property, or other assets.
(f) Failure to comply with security processing requirements may
result in termination of the contract or removal of contract employees
from Department of Commerce facilities or denial of access to IT
systems.
(g) Access to National Security Information. Compliance with these
requirements shall not be construed as providing a contract employee
clearance to have access to national security information.
(h) The contractor shall include the substance of this clause,
including this paragraph, in all subcontracts.
(End of clause)

1352.237-71 Security processing requirements--low risk contracts.

As prescribed in 48 CFR 1337.110-70 (c), insert the following
clause:

Security Processing Requirements--Low Risk Contracts (DATE)

(a) Investigative Requirements for Low Risk Contracts. All
contractor (and subcontractor) personnel proposed to be employed under
a Low Risk contract shall undergo security processing by the
Department's Office of Security before being eligible to work on the
premises of any Department of Commerce owned, leased, or controlled
facility in the United States or overseas, or to obtain access to a
Department of Commerce IT system. All Department of Commerce security
processing pertinent to this contract will be conducted at no cost to
the contractor.
(b) Investigative requirements for Non-IT Service Contracts are:
(1) Contracts more than 180 days--National Agency Check and
Inquiries (NACI).
(2) Contracts less than 180 days--Special Agency Check (SAC).
(c) Investigative requirements for IT Service Contracts are:
(1) Contracts more than 180 days--National Agency Check and
Inquiries (NACI).
(2) Contracts less than 180 days--National Agency Check and
Inquiries (NACI).
(d) In addition to the investigations noted above, non-U.S.
citizens must have a background check that includes an Immigration and
Customs Enforcement agency check.
(e) Additional Requirements for Foreign Nationals (Non-U.S.
Citizens). Non-U.S. citizens (lawful permanent residents) to be
employed under this contract within the United States must have:
(1) Official legal status in the United States;
(2) Continuously resided in the United States for the last two
years; and
(3) Obtained advance approval from the servicing Security Officer
in consultation with the Office of Security headquarters.

[[Page 52587]]

(f) DOC Security Processing Requirements for Low Risk Non-IT
Service Contracts. Processing requirements for Low Risk non-IT Service
Contracts are as follows:
(1) Processing of a NACI is required for all contract employees
employed in Low Risk non-IT service contracts for more than 180 days.
The Contracting Officer's Representative (COR) will invite the
prospective contractor into e-QIP to complete the SF-85. The contract
employee must also complete fingerprinting.
(2) Contract employees employed in Low Risk non-IT service
contracts for less than 180 days require processing of Form OFI-86C
Special Agreement Check (SAC), to be processed. The Sponsor will
forward a completed Form OFI-86C, FD-258, Fingerprint Chart, and Credit
Release Authorization to the servicing Security Officer, who will send
the investigative packet to the Office of Personnel Management for
processing.
(3) Any contract employee with a favorable SAC who remains on the
contract over 180 days will be required to have a NACI conducted to
continue working on the job site.
(4) For Low Risk non-IT service contracts, the scope of the SAC
will include checks of the Security/Suitability Investigations Index
(SII), other agency files (INVA), Defense Clearance Investigations
Index (DCII), FBI Fingerprint (FBIF), and the FBI Information
Management Division (FBIN).
(5) In addition, for those individuals who are not U.S. citizens
(lawful permanent residents), the Sponsor may request a Customs
Enforcement SAC on Form OFI-86C, by checking Block 7, Item I.
In Block 13, the Sponsor should enter the employee's Alien Registration
Receipt Card number to aid in verification.
(6) Copies of the appropriate forms can be obtained from the
Sponsor or the Office of Security. Upon receipt of the required forms,
the Sponsor will forward the forms to the servicing Security Officer.
The Security Officer will process the forms and advise the Sponsor and
the Contracting Officer whether the contract employee can commence work
prior to completion of the suitability determination based on the type
of work and risk to the facility (i.e., adequate controls and
restrictions are in place). The Sponsor will notify the contractor of
favorable or unfavorable findings of the suitability determinations.
The Contracting Officer will notify the contractor of an approved
contract start date.
(g) Security Processing Requirements for Low Risk IT Service
Contracts. Processing of a NACI is required for all contract employees
employed under Low Risk IT service contracts.
(1) Contract employees employed in all Low Risk IT service
contracts will require a National Agency Check and Inquiries (NACI) to
be processed. The Contracting Officer's Representative (COR) will
invite the prospective contractor into e-QIP to complete the SF-85.
Fingerprints and a Credit Release Authorization must be completed
within three working days from start of work, and provided to the
Servicing Security Officer, who will forward the investigative package
to OPM.
(2) For Low Risk IT service contracts, individuals who are not U.S.
citizens (lawful permanent residents) must undergo a NACI that includes
an agency check conducted by the Immigration and Customs Enforcement
Service. The Sponsor must request the ICE check as a part of the NAC.
(h) Notification of Disqualifying Information. If the Office of
Security receives disqualifying information on a contract employee, the
Sponsor and Contracting Officer will be notified. The Sponsor shall
coordinate with the Contracting Officer for the immediate removal of
the employee from duty requiring access to Departmental facilities or
IT systems. Contract employees may be barred from working on the
premises of a facility for any of the following reasons:
(1) Conviction of a felony crime of violence or of a misdemeanor
involving moral turpitude.
(2) Falsification of information entered on security screening
forms or of other documents submitted to the Department.
(3) Improper conduct once performing on the contract, including
criminal, infamous, dishonest, immoral, or notoriously disgraceful
conduct or other conduct prejudicial to the Government regardless of
whether the conduct was directly related to the contract.
(4) Any behavior judged to pose a potential threat to Departmental
information systems, personnel, property, or other assets.
(i) Failure to comply with security processing requirements may
result in termination of the contract or removal of contract employees
from Department of Commerce facilities or denial of access to IT
systems.
(j) Access to National Security Information. Compliance with these
requirements shall not be construed as providing a contract employee
clearance to have access to national security information.
(k) The contractor shall include the substance of this clause,
including this paragraph, in all subcontracts.
(End of clause)

1352.237-72 Security processing requirements-national security
contracts.

As prescribed in 48 CFR 1337.110-70(d), use the following clause:

Security Processing Requirements--National Security Contracts (DATE)

(a) Security Investigative Requirements for National Security
Contracts. National Security Contracts require contractor employees to
gain access to national security information in the performance of
their work. Regardless of the contractor employees' location,
appropriate security access and fulfillment of cleared facility
requirements, as determined by the National Industrial Security Program
(NISP) Operation Manual must be met. All contractors are subject to the
appropriate investigations indicated below and may be granted
appropriate security access by the Office of Security based on
favorable results. No national security material or documents shall be
removed from a Department of Commerce facility. The circumstances of
the work performance must allow the Department of Commerce to retain
control over national security information and keep the number of
contract personnel with access to the information to a minimum.
(b) All employees working on Special or Critical Sensitive
contracts require an updated personnel security background
investigation every five (5) years. Employees on Non-Critical Sensitive
contracts will require an updated personnel security background
investigation every ten (10) years.
(c) Security Procedures. Position sensitivity/risk assessments must
be conducted on all functions that are performed under the contract.
Risk assessments for contractor employees are determined in the same
manner as assessment of those functions performed by government
employees. The Contracting Officer and Contracting Officer's
Representative should determine the level of sensitivity or risk with
the assistance of the servicing Security Officer.
(1) Contractor employees working on National Security Contracts
must have a completed investigation and be granted an appropriate
security level clearance by the Office of Security before start of
work.
(2) The Contracting Officer's Representative must send the contract

[[Page 52588]]

employee's existing security clearance information, if applicable, or
appropriate investigative request package, to the servicing Security
Officer, who will review and forward it to the Office of Security.
(3) The Office of Security must confirm that contract employees
have the appropriate security clearance before starting any work under
a National Security Contract.
(d) Security Forms Required. For Critical-Sensitive positions with
Top Secret access, Critical-Sensitive positions with Secret access, and
Non-Critical Sensitive positions with Secret or Confidential access,
the following forms are required:
(1) Form SF-86, Questionnaire for National Security Positions,
marked ``CON'' in Block 1, Position Title, to distinguish it as a
contractor case;
(2) Form FD-258, Fingerprint Chart, with OPM's designation in the
ORI Block; and
(3) Credit Release Authorization Form.
(e) Contracting Officer's Representative Responsibilities are:
(1) Coordinate submission of a proper investigative request package
with the servicing Security Officer, the Contracting Officer, and the
contractor.
(2) Review the request package for completeness, ensuring that the
subject of each package is identified as a contract employee, the name
of the contractor is identified, and that each package clearly
indicates the contract sensitivity designation.
(3) Send the request package to the servicing Security Officer for
investigative processing.
(f) Servicing Security Officer Responsibilities are:
(1) Review the package for completeness.
(2) Ensure that the forms are complete and contain all the
pertinent information necessary to request the background
investigation.
(3) Forward the request for investigation to the Defense
Investigative Service Coordinating Office (DISCO).
(4) Maintain records of contractor personnel in their units subject
to the NISP.
(5) Ensure that all contractor personnel have been briefed on the
appropriate procedures for handling and safeguarding national security
information.
(g) The contractor shall include the substance of this clause,
including this paragraph, in all subcontracts.
(End of clause)

1352.237-73 Foreign national visitor and guest access to departmental
resources.

As prescribed in 48 CFR 1337.110-70 (e), insert the following
clause:

Foreign National Visitor and Guest Access to Departmental Resources
(DATE)

(a) The contractor shall comply with the provisions of Department
Administrative Order 207-12, Foreign National Visitor and Guest Access
Program; Bureau of Industry and Security Export Administrative
Regulations Part 734, and [insert operating unit counsel specific
procedures]. The contractor shall provide the Government with notice of
foreign nationals requiring access to any Department of Commerce
facility or through a Department of Commerce IT system.
(b) The contractor shall identify each foreign national who
requires access to any Departmental resources, and shall provide all
requested information in writing to the Contracting Officer's
Representative.
(c) The contractor shall include the substance of this clause,
including this paragraph, in all subcontracts.
(End of clause)

1352.237-74 Progress reports.

As prescribed in 48 CFR 1337.110-71(a), insert the following
clause:

Progress Reports (DATE)

The contractor shall submit, to the Government, a progress report
every ------------ [insert time period] month(s) after the effective
date of the contract, and every ------------------ [insert time period]
thereafter during the period of performance. The contractor shall
deliver progress reports that summarize the work completed during the
performance period, the work forecast for the following period, and
state the names, titles and number of hours expended for each of the
contractor's professional personnel assigned to the contract, including
officials of the contractor. The report shall also include any
additional information--including findings and recommendations--that
may assist the Government in evaluating progress under this contract.
The first report shall include a detailed work outline of the project
and the contractor's planned phasing of work by reporting period.
(End of clause)

1352.237-75 Key personnel.

As prescribed in 48 CFR 1337.110-71(b), insert the following
clause:

Key Personnel (DATE)

(a) The contractor shall assign to this contract the following key
personnel:
(Name) (Position Title)
(Name) (Position Title)
(b) The contractor shall obtain the consent of the Contracting
Officer prior to making key personnel substitutions. Replacements for
key personnel must possess qualifications equal to or exceeding the
qualifications of the personnel being replaced, unless an exception is
approved by the Contracting Officer.
(c) Requests for changes in key personnel shall be submitted to the
Contracting Officer at least 15 working days prior to making any
permanent substitutions. The request should contain a detailed
explanation of the circumstances necessitating the proposed
substitutions, complete resumes for the proposed substitutes, and any
additional information requested by the Contracting Officer. The
Contracting Officer will notify the contractor within 10 working days
after receipt of all required information of the decision on
substitutions. The contract will be modified to reflect any approved
changes.
(End of clause)

1352.239-70 Software license addendum.

As prescribed in 48 CFR 1339.107, insert the following clause:

Software License Addendum (DATE)

(a) This Addendum incorporates certain terms and conditions
relating to Federal procurement actions. The terms and conditions of
this Addendum take precedence over the terms and conditions contained
in any license agreement or other contract documents entered into
between the parties.
(b) Governing Law: Federal procurement law and regulations,
including the Contract Disputes Act, 41 U.S.C. Section 601 et. seq.,
and the Federal Acquisition Regulation (FAR), govern the agreement
between the parties. Litigation arising out of this contract may be
filed only in those fora that have jurisdiction over Federal
procurement matters.
(c) Attorney's Fees: Attorney's fees are payable by the Federal
government in any action arising under this contract only pursuant to
the Equal Access in Justice Act, 5 U.S.C. Section 504.
(d) No Indemnification: The Federal government will not be liable
for any claim for indemnification; such payments may violate the Anti-
Deficiency Act, 31 U.S.C. Section 1341(a).
(e) Assignment: Payments may only be assigned in accordance with
the

[[Page 52589]]

Assignment of Claims Act, 31 U.S.C. Section 3727, and FAR Subpart 32.8,
``Assignment of Claims.''
(f) Invoices: Invoices will be handled in accordance with the
Prompt Payment Act (31 U.S.C. Section 3903) and Office of Management
and Budget (OMB) Circular A-125, Prompt Payment.
(g) Patent and Copyright Infringement: Patent or copyright
infringement suits brought against the United States as a party may
only be defended by the U.S. Department of Justice (28 U.S.C. Section
516).
(h) Renewal of Support after Expiration of this Award: Service will
not automatically renew after expiration of the initial term of this
agreement.
(i) Renewal may only occur in accord with (1) the mutual agreement
of the parties; or (2) an option renewal clause allowing the Government
to unilaterally exercise one or more options to extend the term of the
agreement.
(End of clause)

1352.239-71 Electronic and information technology.

As prescribed in 48 CFR 1339.270(a), insert the following
provision:

Electronic and Information Technology (DATE)

(a) To be considered eligible for award, offerors must propose
electronic and information technology (EIT) that meet the applicable
Access Board accessibility standards at 36 CFR 1194 designated below:
---- 1194.21 Software applications and operating systems
---- 1194.22 Web-based intranet and Internet information and
applications
---- 1194.23 Telecommunications products
---- 1194.24 Video and multimedia products
---- 1194.25 Self-contained, closed products
---- 1194.26 Desktop and portable computers
---- 1194.31 Functional performance criteria
---- 1194.41 Information, documentation and support
(b) The standards do not require the installation of specific
accessibility-related software or the attachment of an assistive
technology device, but merely require that the EIT be compatible with
such software and devices so that it can be made accessible if so
required by the agency in the future.
(c) Alternatively, offerors may propose products and services that
provide equivalent facilitation. Such offers will be considered to have
met the provisions of the Access Board standards for the feature or
components providing equivalent facilitation. If none of the offers
that meet all applicable provisions of the standards could be accepted
without imposing an undue burden on the agency or component, or if none
of the offerors propose products or services that fully meet all of the
applicable Access Board's provisions, those offerors whose products or
services meet some of the applicable provisions will be considered
eligible for award. Awards will not be made to an offeror meeting all
or some of the applicable Access Board provisions if award would impose
an undue burden upon the agency.
(d) Offerors must submit representation information concerning
their products by completing the VPAT template at http://
www.Section508.gov.
(End of clause)

1352.239-72 Security requirements for information technology
resources.

As prescribed in 48 CFR 1339.270(b), insert the following clause:

Security Requirements for Information Technology Resources (DATE)

(a) Applicability. This clause is applicable to all contracts that
require contractor electronic access to Department of Commerce
sensitive non-national security or national security information
contained in systems, or administrative control of systems by a
contractor that process or store information that directly supports the
mission of the Agency.
(b) Definitions. For purposes of this clause, the term
``Sensitive'' is defined by the guidance set forth in the Computer
Security Act of 1987 (Pub. L. 100-235), including the following
definition of the term:
(1) Sensitive information is ``* * * any information, the loss,
misuse, or unauthorized access to, or modification of which could
adversely affect the national interest or the, conduct of Federal
programs, or the privacy to which individuals are entitled under
section 552a of title 5, United States Code (The Privacy Act), but
which has not been specifically authorized under criteria established
by an Executive Order or an Act of Congress to be kept secret in the
interest of national defense or foreign policy.''
(2) For purposes of this clause, the term ``National Security'' is
defined by the guidance set forth in:
(i) The DOC IT Security Program Policy and Minimum Implementation
Standards, Section 4.3.
(ii) The DOC Security Manual, Chapter 18.
(iii) Executive Order 12958, as amended, Classified National
Security Information. Classified or national security information is
information that has been specifically authorized to be protected from
unauthorized disclosure in the interest of national defense or foreign
policy under an Executive Order or Act of Congress.
(3) Information technology resources include, but are not limited
to, hardware, application software, system software, and information
(data). Information technology services include, but are not limited
to, the management, operation (including input, processing,
transmission, and output), maintenance, programming, and system
administration of computer systems, networks, and telecommunications
systems.
(c) The contractor shall be responsible for implementing sufficient
Information Technology security, to reasonably prevent the compromise
of DOC IT resources for all of the contractor's systems that are
interconnected with a DOC network or DOC systems that are operated by
the contractor.
(d) All contractor personnel performing under this contract and
contractor equipment used to process or store DOC data, or to connect
to DOC networks, must comply with the requirements contained in the DOC
Information Technology Management Handbook (see DOC, Office of the
Chief Information Officer Web site), or equivalent/more specific agency
or operating unit counsel guidance as specified immediately hereafter
[insert agency or operating unit counsel specific guidance, if
applicable].
(e) Contractor personnel requiring a user account for access to
systems operated by the contractor for DOC or interconnected to a DOC
network to perform contract services shall be screened at an
appropriate level in accordance with Commerce Acquisition Manual
1337.70, Security Processing Requirements for Service Contracts.
(f) Within 5 days after contract award, the contractor shall
certify in writing to the COR that its employees, in performance of the
contract, have completed initial IT security orientation training in
DOC IT Security policies, procedures, computer ethics, and best
practices, in accordance with DOC IT Security Program Policy, chapter
15, section 15.3. The COR will inform the contractor of any other
available DOC training resources. Annually thereafter the contractor
shall certify in writing to the COR that its employees, in performance
of the contract, have completed annual refresher training as

[[Page 52590]]

required by section 15.4 of the DOC IT Security Program Policy.
(g) Within 5 days of contract award, the contractor shall provide
the COR with signed acknowledgement of the provisions as contained in
Commerce Acquisition Regulation (CAR), 1352.209-72, Restrictions
Against Disclosures.
(h) The contractor shall afford DOC, including the Office of
Inspector General, access to the contractor's and subcontractor's
facilities, installations, operations, documentation, databases, and
personnel used in performance of the contract. Access shall be provided
to the extent required to carry out a program of IT inspection,
investigation, and audit to safeguard against threats and hazards to
the integrity, availability, and confidentiality of DOC data or to the
function of computer systems operated on behalf of DOC, and to preserve
evidence of computer crime.
(i) For all contractor-owned systems for which performance of the
contract requires interconnection with a DOC network on which DOC data
will be stored or processed, the contractor shall provide, implement,
and maintain a System Accreditation Package in accordance with the DOC
IT Security Program Policy. Specifically, the contractor shall:
(1) Within 14 days after contract award, submit for DOC approval a
System Certification Work Plan, including project management
information (at a minimum the tasks, resources, and milestones) for the
certification effort, in accordance with DOC IT Security Program Policy
and [Insert agency or operating unit counsel specific guidance, if
applicable]. The Certification Work Plan, approved by the COR, in
consultation with the DOC IT Security Officer, or Agency/operating unit
counsel IT Security Manager/Officer, shall be incorporated as part of
the contract and used by the COR to monitor performance of
certification activities by the contractor of the system that will
process DOC data or connect to DOC networks. Failure to submit and
receive approval of the Certification Work Plan may result in
termination of the contract.
(2) Upon approval, follow the work plan schedule to complete system
certification activities in accordance with DOC IT Security Program
Policy Section 6.2, and provide the COR with the completed System
Security Plan and Certification Documentation Package portions of the
System Accreditation Package for approval and system accreditation by
an appointed DOC official.
(3) Upon receipt of the Security Assessment Report and Authorizing
Official's written accreditation decision from the COR, maintain the
approved level of system security as documented in the Security
Accreditation Package, and assist the COR in annual assessments of
control effectiveness in accordance with DOC IT Security Program
Policy, Section 6.3.1.1.
(j) The contractor shall incorporate this clause in all
subcontracts that meet the conditions in paragraph (a) of this clause.
(End of clause)

1352.242-70 Postaward conference.

As prescribed in 48 CFR 1342.503-70, insert the following
provision:

Postaward Conference (DATE)

A postaward conference with the successful offeror may be required.
If required, the Contracting Officer will contact the contractor within
10 days of contract award to arrange the conference.
(End of clause)

1352.245-70 Government furnished property.

As prescribed in 48 CFR 1345.107-70, insert the following clause:

Government Furnished Property (DATE)

The Government will provide the following item(s) of Government
property to the contractor . The contractor shall be accountable for,
and have stewardship of, the property in the performance of this
contract. This property shall be used and maintained by the contractor
in accordance with provisions of the ``Government Property'' clause
included in this contract.

----------------------------------------------------------------------------------------------------------------
Property/ Tag Number
Item No. Description Quantity Delivery Date (if applicable)
----------------------------------------------------------------------------------------------------------------
.................. .................. ................. .....................
----------------------------------------------------------------------------------------------------------------

(End of clause)

1352.246-70 Place of acceptance.

As prescribed in 1346.503, insert the following clause:

Place of Acceptance (DATE)

(a) The Contracting Officer or the duly authorized representative
will accept supplies and services to be provided under this contract.
(b) The place of acceptance will be:

-----------------------------------------------------------------------
-----------------------------------------------------------------------
-----------------------------------------------------------------------

(End of clause)

1352.270-70 Period of performance.

As prescribed in 48 CFR 1370.101, insert the following clause:

Period of Performance (DATE)

(a) The base period of performance of this contract is from ------
-- through --------. If an option is exercised, the period of
performance shall be extended through the end of that option period.
(b) The option periods that may be exercised are as follows:

------------------------------------------------------------------------
Period Start Date End Date
------------------------------------------------------------------------
Option I....................... ................... ..................
Option II...................... ................... ..................
Option III..................... ................... ..................
Option IV...................... ................... ..................
------------------------------------------------------------------------

1352.270-71 Pre-bid/pre-proposal conference and site visit.

As prescribed in 48 CFR 1370.102, insert the following provision:

Pre-Bid/Pre-Proposal Conference and Site Visit (DATE)

(a) The Government is planning a pre-proposal conference, during
which potential contractors may obtain a better understanding of the
work required.
(b) Offerors are encouraged to submit all questions in writing at
least [----] days prior to the conference. Questions will be considered
at any time prior to, or during, the conference; however, offerors will
be asked to confirm verbal questions in writing. Subsequent to the
conference, an amendment to the solicitation containing an abstract of
the questions and the Government's

[[Page 52591]]

answers, and a list of attendees, will be made publicly available.
(c) In order to facilitate conference preparations, contact the
person identified in [Block ----] on Standard Form [----] of this
solicitation to make arrangements for security processing for entry of
attendees into the Government facility.
(d) In no event shall failure to attend the pre-proposal conference
constitute grounds supporting a protest or contract claim.
(e) Offerors are cautioned that, notwithstanding any remarks,
clarifications, or responses provided at the conference, all terms and
conditions of the solicitation remain unchanged unless they are changed
by written amendment. It is the responsibility of each offeror, prior
to submitting a proposal, to seek clarification of any perceived
ambiguity in the solicitation or created by an amendment of the
solicitation.
(f) The pre-proposal conference will be held:
Date:------------------------------------------------------------------

Time:------------------------------------------------------------------

Location:--------------------------------------------------------------

[Instructions: If the conference also includes a site or equipment
inspection visit, insert the following paragraph]:
(g) During the conference, an opportunity to visit the site of the
work, and, if applicable, inspect equipment on which maintenance or
repairs are to be performed will be offered to attendees.
(h) Offerors are expected to satisfy themselves regarding all
conditions that may affect the work required or the cost of contract
performance. In no event shall failure to inspect the site and/or
equipment constitute grounds for any protest or contract claim.
(End of clause)

1352.271-70 Inspection and manner of doing work.

As prescribed in 48 CFR 1371.101, insert the following clause:

Inspection and Manner Of Doing Work (DATE)

(a) All work and material shall be subject to the approval of the
Contracting Officer or duly authorized representative. Work shall be
performed in accordance with the plans and specifications of this
contract as modified by any contract modification.
(b) Unless otherwise specifically provided for in the contract, all
operational practices of the contractor and all workmanship and
material, equipment and articles used in the performance of work shall
be in accordance with American Bureau of Shipping ``Rules for Building
and Classing Steel Vessels'', U.S. Coast Guard Marine Engineering
Regulations and Material Specifications (46 CFR Subchapter F), U.S.
Coast Guard Electrical Engineering Regulations (46 CFR Subchapter J),
and U.S. Public Health Service ``Handbook on Sanitation of Vessel
Construction'', in effect at the time of the contract award; and the
best commercial maritime practices, except where military
specifications are specified, in which case such standards of material
and workmanship shall be followed.
(c) All material and workmanship shall be subject to inspection and
test at all times during the contractor's performance of the work to
determine their quality and suitability for the purpose intended and
compliance with the contract. In case any material or workmanship
furnished by the contractor is found to be defective prior to
redelivery of the vessel, or not in accordance with the requirements of
the contract, the Government shall have the right prior to redelivery
of the vessel to reject such material or workmanship, and to require
its correction or replacement by the contractor at the contractor's
cost and expense. This Government right is in addition to its rights
under any Guarantee clause in this contract. If the contractor fails to
proceed promptly with the replacement or correction of such material or
workmanship, as required by the Contracting Officer, the Government
may, by contract or otherwise, replace or correct such material or
workmanship and charge to the contractor the excess cost to the
Government. The contractor shall provide and maintain an inspection
system acceptable to the Government covering the work specified in the
contract. Records of all inspection work by the contractor shall be
kept complete and available to the Government during the performance of
the contract and for a period of two (2) years after delivery of the
vessel to the Government.
(d) No welding, including tack welding and brazing, shall be
permitted in connection with repairs, completions, alterations, or
addition to hulls, machinery or components of vessels unless the welder
is, at the time, qualified to the standards established by the U.S.
Coast Guard, the American Bureau of Shipping, or the Department of the
Navy. The welder's qualifications shall be appropriate for the
particular service application, filler material type, position of
welding, and welding process involved in the work being undertaken. A
welder may be required to re-qualify if the Contracting Officer
believes there is a reasonable doubt concerning the welder's ability.
Welders' qualifications for this purpose shall be governed by the U.S.
Coast Guard Marine Engineering Regulations and Material Specifications
(46 CFR Subchapter F). When a welding process other than manual
shielded arc is proposed or required, the contractor or fabricator
shall submit procedure qualification tests for approval prior to
production welding. Procedure qualification tests shall be conducted in
accordance with the United States Coast Guard Marine Engineering
Regulations and Material Specifications (46 CFR Subchapter F).
(e) The contractor shall exercise reasonable care to protect the
vessel from fire, and the contractor shall maintain a reasonable system
of inspection over the activities of welders, burners, riveters,
painters, plumbers and similar workers, particularly where such
activities are undertaken in the vicinity of the vessel's fuel oil
tanks, magazines or storerooms containing flammable material. A
reasonable number of hose lines shall be maintained by the contractor
ready for immediate use on the vessel at all times while the vessel is
berthed alongside the contractor's pier or in dry dock or on a marine
railway. All tanks or bilge areas under alteration or repair shall be
cleaned, washed, and steamed out or otherwise made safe by the
contractor if and to the extent necessary as required by good marine
practice or by current Occupational Safety and Health Administration
regulations. The Contracting Officer's Representative (COR) shall be
furnished with a ``gas free'' or ``safe for hot work'' or ``safe for
workers'' certificate before any hot work or entry is done. Unless
otherwise provided in this contract, the contractor shall at all times
maintain a reasonable fire watch about the vessel, including a fire
watch on the vessel while work is being performed thereon.
(f) The contractor shall place proper safeguards and/or effect such
safety precautions as necessary, including suitable and sufficient
lighting, for the prevention of accidents or injury to persons or
property during the prosecution of work under this contract and/or from
time of receipt of the vessel until acceptance by the Government of the
work performed.
(g) Except as otherwise provided in this contract, when the vessel
is in the custody of the contractor or in dry dock or on a marine
railway and the temperature becomes as low as 35 degrees Fahrenheit,
the contractor shall keep all pipelines, fixtures, traps, tanks, and
other receptacles on the vessel

[[Page 52592]]

drained to avoid damage from freezing, or if this is not practicable,
the vessel shall be kept heated to prevent such damage. The vessel's
stern tube and propeller hubs shall be protected from frost damage by
applied heat through the use of a salamander or other proper means, as
approved by the COR.
(h) Whenever practicable, the work shall be performed in a manner
which does not interfere with the berthing and messing of personnel
attached to the vessel. The contractor shall ensure that assigned
personnel have access to the vessel at all times. It is understood that
such personnel will not interfere with the work or the contractor's
workers.
(i) The Government does not guarantee the correctness of the
dimensions, sizes, and shapes shown in any sketches, drawings, plans or
specifications prepared or furnished by the Government. Prior to
submitting an offer, it is the responsibility of the bidder/offeror to
verify the dimensions, sizes, and shapes in materials provided by the
Government. Where practical, the Government will make the vessel
available for inspection prior to bid opening or the date for receipt
of proposals. If the contractor, as a result of inspection or
otherwise, discovers any error in the sketches, drawings, plans or
specifications, it shall immediately inform the Contracting Officer of
the error and proceed in accord with instructions received from the
Contracting Officer. The Government is not liable for any claims or
charges resulting from additional work performed by the contractor as a
result of a patent ambiguity in the sketches, drawings, plans or
specifications that was not brought to the attention of the Contracting
Officer. The contractor shall be responsible for the correctness of the
shape, sizes and dimensions of parts furnished by the contractor under
the contract.
(j) The contractor shall at all times keep the site of the work on
the vessel free from accumulation of waste material or rubbish caused
by contractor employees or the work, and at the completion of the work
shall remove all rubbish from and about the site of the work and shall
leave the work and its immediate vicinity ``broom-clean'' unless more
exactly specified in this contract.
(k) While in drydock or on a marine railway, the contractor shall
be responsible for the closing, before the end of working hours, of all
valves and openings upon which work is being done by its workers when
such closing is practicable. The contractor shall establish a list and
keep the COR cognizant of the closure status of all valves and openings
upon which the contractor's workers have been working.
(l) Without additional expense to the Government, the contractor
shall employ specialty subcontractors where required by the
specifications or when necessary for satisfactory performance of the
work.
(m)(1) Unless otherwise stated in the contract, the contractor
shall notify the COR at least 72 hours in advance:
(i) Prior to starting inspections or tests; and
(ii) When supplies will be ready for Government inspection.
(2) Such notification shall be provided either verbally or in
writing at the discretion of the COR.
(End of clause)

1352.271-71 Method of payment and invoicing instructions for ship
repair.

As prescribed in 48 CFR 1371.102, insert the following clause:

Method of Payment and Invoicing Instructions for Ship Repair (DATE)

(a) The Government will make payment under this contract based on a
percentage of completion. The contractor may invoice for the percentage
completed for each work item as work progresses. The amount invoiced
shall be calculated based on prices stated in the Schedule, as follows:
A work item may not be invoiced until the percentage complete reaches
25 percent. Future invoices for that work item have no limitation as to
the percentage of completion required before invoicing, but in no event
may invoices be submitted more frequently than every 2 weeks, or for
amounts less than $10,000, unless it is the final payment. The minimum
percentage of completion (25%) to be reached prior to billing each work
item may be waived by the Contracting Officer for large dollar work
items on a case-by-case basis.
(b) Invoices submitted by the contractor which are deemed not
proper, in accordance with FAR 52.232-25, will be returned. Invoices
shall include:
(1) Name and Address of the contractor;
(2) DUNS Number;
(3) Invoice Date;
(4) Contract Number/Modification Number;
(5) CLIN/Work Item Number, to include: Description, Quantity, Unit
of Measure, Unit Price and Extended Price;
(6) Shipping and Payment Terms; and,
(7) Contractor Point of Contact, including: Name, Title, Phone
Number, and Mailing Address;
(8) The percentage of completion for each CLIN/work item
identified;
(9) Name of the Contracting Officer;
(10) Ship name;
(11) The overall percentage and dollar amount previously billed,
currently billed and unbilled.
(c) When invoicing for changed work, the contractor shall identify
it as a contract change and shall identify the modification authorizing
the change, and the CLIN/Work Item associated with the change.
(d) All items of work invoiced under this contract will be verified
and confirmed by the Contracting Officer's Representative as accurate
and complete and approved by the designated billing office before
payment will be made.
(e) Mail the original invoice to:
[insert]
(f) The contractor's final invoice submitted under the contract
must be marked as follows: ``THIS INVOICE CONSTITUTES THE FINAL
INVOICE--UPON PAYMENT OF THIS INVOICE NO OTHER MONIES ARE DUE UNDER
CONTRACT NUMBER ------------.''
(To be assigned at contract award)
(End of clause)

1352.271-72 Additional Item Requirements (AIR)--growth work.

As prescribed in 48 CFR 1371.103, insert the following clause:

Additional Item Requirements (AIR)--Growth Work (DATE)

(a) This clause applies to Additional Item Requirements (AIR), also
known as growth and emergent work ordered by the Contracting Officer
pursuant to the Changes--Ship Repair clause or mutually agreed upon by
the parties. The contractor shall perform AIR at the labor billing
rates designated in the Schedule, as described in paragraph (c) of this
clause. The AIR handling fee designated in the Schedule shall be the
sole fee used for direct material purchases and subcontractor handling.
The estimated quantity of labor hours and handling fees represent the
Government's best estimate for growth that may be required throughout
the contract performance period. All growth work shall be paid at the
prices stated in the Schedule.
(b) The contractor shall take into account the potential for
ordering all estimated AIR quantities in developing the Production
Schedule. The ordering of any portion of the AIR quantities does not in
itself warrant an extension to the original contract completion date;
however, for planning purposes, the Government anticipates ordering AIR
in accordance with the following schedule:

[[Page 52593]]

(1) No more than 75% of the hours during the first half of the
contract period of performance.
(2) No more than 50% of the hours during the third quarter of the
contract period of performance.
(3) No more than 30% of the hours during the fourth quarter of the
contract period of performance.
(c) The AIR labor rate shall be a flat, hourly rate to cover the
entire effort and shall be burdened to include:
(1) Direct production labor hour functions only. Direct production
labor hours are hours of skilled labor at the journeyman level expended
in direct production. Direct production is defined as work performed by
a qualified craftsman that is directly related to the alteration,
modification, or repair of the item or system identified as needing
alteration, modification, or repair. The following functions are
identified as direct production: Abrasive Cleaning/Water Blasting, Tank
Cleaning, Welding, Burning, Brazing, Blacksmithing, Machining (inside
and outside), Carpentry, Electrical/Electronic Work, Crane Operation,
Shipfitting, Lagging/Insulating, Painting, Boilermaking, Pipe Fitting,
Engineering (Production), Sheetmetal Work, Staging/Scaffolding, and
Rigging.
(2) Non-production labor hours (whether charged directly or
indirectly by contractor's accounting system) shall be for labor in
support of production functions. For purposes of this clause, support
functions are defined as functions that do not directly contribute to
the alteration, modification, or repair of the item or system
identified as needing alteration, modification, or repair. Necessary
support functions should be priced into the burdened rate for
production labor hours. Examples of support functions include: Testing,
Quality Assurance (inspection), Engineering (support), Planning
(including involvement of craft foreman/journeyman in planning a task),
Estimating (including determination of necessary materials and
equipment needed to perform a task), Material Handling, Set-up (moving
tools and equipment from shop to ship to perform a task), Fire Watch,
General Labor (including general support of journeyman tasks), Cleaning
(including debris pickup and removal), Surveying, Security,
Transportation, Supervision, and Lofting (sail/pattern making).
(d) Additional Item Requirements do not include replacement work
performed pursuant to the Inspection and Manner of Doing Work or
Guarantees clauses.
(e) It is the Government's intention to award any growth work
identified during the repair to the contractor, if a fair and
reasonable price can be negotiated for such work, based upon Schedule
rates. If a fair and reasonable price cannot be negotiated, the
Government may, at its discretion, obtain services outside of the
contract. Such services may be performed while the ship is undergoing
repair in the contractor's facility pursuant to the Access to Vessels
clause.
(f) The contractor shall submit to the Contracting Officer the
following information in all AIR proposals:
(1) Number of labor hours estimated; broken down by specific direct
production labor category.
(2) Material estimates, individually broken out and priced. When
requested by the Contracting Officer, material quotes shall be
provided.
(3) Subcontractor estimates, individually broken out and priced
along with the actual subcontractor quotes. The requirement to submit
subcontractor quotes may be waived if deemed appropriate by the
Contracting Officer.
(4) Material/subcontractor handling fee and the basis for the fee.
(g) The contractor shall not be entitled to payment for any hours
ordered pursuant to this clause until such time as a written contract
modification is executed.
(End of clause)

1352.271-73 Schedule of work.

As prescribed in 48 CFR 1371.104, insert the following clause.

Schedule of Work (DATE)

(a) Notwithstanding other requirements specified in this contract,
the contractor shall provide to the Contracting Officer and COR the
following documents within five (5) working days of the vessel's
arrival at the contractor's facility:
(1) Production Schedule.
(2) Work Package Network.
(3) Total Manpower Loading Curve.
(4) Trade Manning Curves.
(5) Subcontracting List.
(b) The Production Schedule shall list the earliest, latest, and
scheduled start and completion date for each work item awarded and
shall identify the critical path. The Work Package Network shall show
the work items, milestones, key events, and activities and shall
clearly identify the critical path. The Total Manpower Loading Curve
shall show the required manning for the duration of the contract. The
Trade Manning Curves shall show the required manning for each trade for
the duration of the contract. The Subcontracting List shall show work
items, milestones, key events, and activities to be accomplished by
subcontractors.
(c) Additional Item Requirements ordered and agreed upon, whether
or not yet formalized via a change order (contract modification), shall
be added to the Production Schedule, Trade Manning Curves, and
Subcontracting List and submitted to the Contracting Officer and COR at
each weekly Progress Meeting. Any anticipated or unanticipated
deviation (greater than five (5) calendar days) from the Production
Schedule shall be immediately brought to the attention of the
Contracting Officer and COR.
(d) Any unauthorized deviation in the Production Schedule which
results in a delay in the completion of work on a vessel past the
established performance period completion date may entitle the
Government to remedies for late performance, including, but not limited
to, liquidated damages.
(End of clause)

1352.271-74 Foreseeable cost factors pertaining to different shipyard
locations.

As prescribed in 48 CFR 1371.105, insert the following provision:

Foreseeable Cost Factors Pertaining to Different Shipyard Locations
(DATE)

(a) The Contracting Officer will evaluate certain foreseeable costs
that will vary with the location of the commercial shipyard to be used
by bidders/offerors under this solicitation. Costs will be calculated
based on the bidder's/offeror's shipyard location and these costs will
be added, for the purposes of evaluation only, to the bidder's/
offeror's overall price.
(b) These elements of foreseeable costs consist of the following:
(1) Vessel Transit: (i) Vessel delivery costs will be based on one
round trip from the vessel's homeport of ------------ to the
contractor's facility at a cruising speed of ---- knots. Distances will
be based on the NOAA publication, ``Distance Between U.S. Ports''.
(ii) Daily vessel operational cost to navigate the vessel between
its homeport and the contractor's offered place of performance is $----
---- per day. The number of days to transit to the contractor's offered
place of performance from the vessel's homeport will be multiplied by
the per-day operational cost.
(iii) No operational costs will be applied if the ship can be
delivered to the contractor's facility from its homeport within eight
(8) hours port-to-port. If the delivery time exceeds eight (8) hours,
but is less than 24 hours, it

[[Page 52594]]

will be considered one full day. Any fraction of subsequent day(s) will
be considered as a full day.
(2) Shore Leave Costs: If the contractor's facility is outside of a
50-mile radius of the vessel's homeport--
(i) An assessment of $-------- for each 15-day period or portion
thereof, beginning with the vessel's departure from the homeport and
concluding with the vessel's return to homeport.
(ii) There will be an additional transportation cost for ----
vessel crew members for one (1) round trip(s) between the contractor's
offered place of performance and the vessel's homeport at the cost of
coach-type airfare.
(3) Travel and Per Diem Costs: If the contractor's facility is
outside of a 50-mile radius of the vessel's homeport--
(i) There will be a transportation cost for one (1) Contracting
Officer's Representative (COR) for ---- round trip(s) between the
contractor's offered place of performance and the COR's official duty
station at the cost of coach-type airfare.
(ii) There will be a per diem expense for ---- calendar days to
support one (1) COR while in the city of the place of contract
performance, to be determined in accordance with the Joint Federal
Travel Regulations (JFTR). The cost of car rental for the estimated
performance period will also be included.
(iii) There will be a transportation cost for one (1) Contracting
Officer for ---- round trip(s) between the Contracting Officer's
official duty station and the contractor's offered place of performance
at the cost of coach-type airfare, plus per diem expenses and a rental
car.
(End of clause)

1352.271-75 Delivery and shifting of the vessel.

As prescribed in 48 CFR 1371.106, insert the following clause:

Delivery and Shifting of the Vessel (DATE)

(a) The Government shall deliver the vessel to the contractor, at
the location specified in the contract.
(b) Whether the specified location of performance is the
contractor's own facility or any other authorized facility, it shall be
understood to mean the fairway of the facility. The contractor shall
provide necessary tugs and pilot services to move the vessel from the
fairway to the pier or dock, and, upon completion of all work, from the
pier or dock to the fairway of the facility.
(c) While the vessel is in the possession of the contractor, any
necessary movement of the vessel incidental to the work specified in
the contract shall be furnished by the contractor without additional
charge to the Government.
(End of clause)

1352.271-76 Performance.

As prescribed in 48 CFR 1371.107, insert the following clause:

Performance (DATE)

(a) The contractor shall not commence work until a notice to
proceed has been issued by the Contracting Officer.
(b) The Government shall deliver the vessel described in the
contract at such time and location as may be specified in the contract.
Upon completion of the work, the Government shall accept delivery of
the vessel at such time and location as may be specified in the
contract.
(c) Without additional charge to the Government, and without
specific requirement in the contract, the contractor shall:
(1) Make available, at the facility, to personnel of the vessel
while in drydock or on a marine railway, sanitary facilities adequate
for the number of personnel using them and acceptable to the
Contracting Officer;
(2) Supply and maintain, in such condition as the Contracting
Officer may reasonably require, suitable brows and gangways from the
pier, drydock or marine railway to the vessel;
(3) Perform, or pay the cost of, any repair, reconditioning or
replacement made necessary as the result of the use by the contractor
of any of the vessel's machinery, equipment or fittings, including, but
not limited to, winches, pumps, riggings, or pipe lines; and
(4) Furnish suitable offices, office equipment and telephones at or
near the site of the work as the Contracting Officer reasonably
requires for personnel designated by the Government.
(d) Except as otherwise provided in the contract, the contractor
shall furnish all necessary material, labor, supervision, services,
equipment, tools, supplies, power, accessories, facilities, and other
things and services necessary for accomplishing the work.
(e) The contractor shall conduct dock and sea trials of the vessel
as required by the contract. Unless otherwise expressly provided in the
contract, during the conduct of these trials the vessel shall be under
the control of the vessel's commander and crew with representatives of
the contractor and the Government on board to determine whether the
work provided by the contractor has been satisfactorily performed. Dock
and sea trials not specified which the contractor requires for its own
benefit shall not be undertaken by the contractor without prior notice
to and approval of the Contracting Officer; any such dock or sea trial
shall be conducted at the risk and expense of the contractor. The
contractor shall provide and install all fittings and appliances which
may be necessary for the dock and sea trials to enable the
representatives of the Government to determine whether the requirements
of the contract plans and specifications have been met. The contractor
shall also be responsible for the care, installation and removal of any
instruments and apparatus furnished by the Government for such trials.
(End of clause)

1352.271-77 Delays.

As prescribed in 48 CFR 1371.108, insert the following clause:

Delays (DATE)

When, during the performance of this contract, the contractor is
required to delay the work on a vessel temporarily, due to orders or
actions of the Government respecting stoppage of work to permit
shifting the vessel, stoppage of hot work to permit bunkering, fueling,
embarking or debarking of passengers or loading or discharging of
cargo, and the contractor is not given sufficient advance notice or is
otherwise unable to avoid incurring additional costs on account
thereof, an equitable adjustment may be made in the contract. Any such
request for equitable adjustment shall be asserted in writing as soon
as practicable after the delay or disruption, but not later than the
day of final payment under the contract.
(End of clause)

1352.271-78 Minimization of delay due to Government furnished
property.

As prescribed in 48 CFR 1371.109, insert the following clause:

Minimization of Delay Due to Government Furnished Property (DATE)

(a) In order to ensure timely performance under this contract, it
is imperative that delay in the contract's performance period resulting
from late, damaged, or unsuitable Government furnished property be held
to an absolute minimum. In order to achieve minimization of delay, it
is agreed that:
(1) Subject to adjustment as provided in paragraph (b) of this
clause, the Government shall deliver each item of Government furnished
property to the contractor on or before the date specified in the
contract or, if later, in sufficient time for the contractor to meet
the contract performance period.

[[Page 52595]]

(2) The Government may forego furnishing any item of Government
property to the contractor. In that event, the contractor shall prepare
the vessel in terms of piping, wiring, structure, foundation,
ventilation, and any other pre-installation requirements of the item,
so that the work on the vessel may continue without delay and
disruption resulting from the absence of the item. If the Government
does not furnish an item designated as Government furnished property,
the contract price may be adjusted accordingly.
(b) The delivery or performance dates for the supplies or services
to be furnished by the contractor under this contract are based upon
the expectation that Government furnished property suitable for use
(except for such property furnished ``as is'') will be delivered to the
contractor at the time stated in the specification or, if not so
stated, in sufficient time to enable the contractor to meet such
delivery or performance dates. If the Government furnished property is
not furnished in the time stated in the contract, or, if a date is not
specified, and the late delivery does not give the contractor
sufficient time to enable the contractor to meet required contract
delivery or performance dates, the contractor shall notify the
Government in writing of the late delivery. Notification shall include
cost and schedule impacts, including delays and disruptions to
schedules. This notification shall be submitted as soon as practical or
known.
(c) The provisions in subsection (b) of this clause and in FAR
52.245-1, if applicable, provide the exclusive remedies to the
contractor resulting from delay in delivery of Government furnished
property or delivery of such property in a condition not suitable for
its intended use.
(End of clause)

1352.271-79 Liability and insurance.

As prescribed in 48 CFR 1371.110, insert the following clause:

Liability and Insurance (DATE)

(a) The contractor shall exercise reasonable care and use its best
efforts to prevent accidents, injury or damage to all employees,
persons and property, in and about the work, and to the vessel or part
thereof upon which work is done.
(b) The contractor shall be responsible for and make good at its
own cost and expense any and all loss of or damage of whatsoever nature
to the vessel (or part thereof), its equipment, movable stores and
cargo, and Government-owned material and equipment for the repair,
completion, alteration of or addition to the vessel in the possession
of the contractor, whether at the plant or elsewhere, arising or
growing out of the performance of the work, except where the contractor
can affirmatively show that such loss or damage was due to causes
beyond the contractor's control, was proximately caused by the fault or
negligence of agents or employees of the Government, or which loss or
damage the contractor by exercise of reasonable care was unable to
prevent. However, the contractor shall not be responsible for any such
loss or damage discovered after redelivery of the vessel unless the
loss or damage is discovered within 90 days after redelivery of the
vessel and loss or damage is affirmatively shown to be the result of
the fault or negligence of the contractor. To induce the contractor to
perform the work for the compensation provided, it is specifically
agreed that the contractor's aggregate liability on account of loss of
or damage to the vessel (or part thereof), its equipment, movable
stores and cargo and Government-owned materials and equipment, shall in
no event exceed the sum of $1,000,000.00. As to the contractor, the
Government assumes the risk of loss or damage to the Government-owned
vessel (or part thereof), its equipment, movable stores and cargo and
said Government-owned materials and equipment in excess of
$1,000,000.00. This assumption of risk includes but is not limited to
loss or damage from negligence of whatsoever degree of the contractor's
servants, employees, agents or subcontractors, but specifically
excludes loss or damage from willful misconduct or lack of good faith
on the part of contractor's personnel, who have supervision or
direction of all or substantially all of the contractor's business, or
all or substantially all of the contractor's operation at any one
plant. However, as to such risk assumed and borne by the Government,
the Government shall be subrogated to any claim, demand or cause of
action against third persons which exists in favor of the contractor,
and the contractor shall, if required, execute a formal assignment or
transfer of claims, demands or causes of action. Nothing contained in
this paragraph shall create or give rise to any right, privilege or
power in any person except the contractor, nor shall any person (except
the contractor) be or become entitled thereby to proceed directly
against the Government, or join the Government as a co-defendant in any
action against the contractor brought to determine the contractor's
liability, or for any other purpose.
(c) The contractor indemnifies and holds harmless the Government,
its agencies and instrumentalities, and the vessel against all suits,
actions, claims, costs or demands (including without limitation, suits,
actions, claims, costs or demands resulting from death, personal injury
and property damage) to which the Government, its agencies and
instrumentalities, or the vessel may be subject or put by reason of
damage or injury (including death) to the property or person of anyone
other than the Government, its agencies, instrumentalities and
personnel, or the vessel, arising or resulting in whole or in part from
the fault, negligence, wrongful act or wrongful omission of the
contractor, or any subcontractor, its or their servants, agents or
employees; provided that the contractor's obligation to indemnify under
this paragraph (c) shall not exceed the sum of $1,000,000.00 on account
of any one accident or occurrence in respect of any one vessel. Such
indemnity shall include, without limitation, suits, actions, claims,
costs or demands of any kind whatsoever, resulting from death, personal
injury or property damage occurring during the period of performance of
work on the vessel or within 90 days after redelivery of the vessel.
Any new equipment warranties that extend beyond the 90 days after
redelivery of the vessel shall be assigned to the Government upon
redelivery of the vessel. With respect to any such suits, actions,
claims, costs or demands resulting from death, personal injury or
property damage occurring after the expiration of such period, the
rights and liabilities of the Government and the contractor shall be as
determined by other provisions of this contract and by law; provided
that such indemnity shall apply to death occurring after such period
which results from any personal injury received during the period
covered by the contractor's indemnity as provided herein.
(d) The contractor shall, at its own expense, procure, and
thereafter maintain such casualty, accident and liability insurance, in
such forms and amounts as may be approved by the Contracting Officer,
insuring the performance of its obligations under paragraph (c) of this
clause. In addition, the contractor shall at its own expense procure
and thereafter maintain such ship repairer's legal liability insurance
as may be necessary to insure the contractor against its liability as
ship repairer in the amount of $1,000,000.00, or the value of the
vessel as determined by the Contracting Officer, whichever is the
lesser, with respect to each vessel on

[[Page 52596]]

which work is performed. The contractor shall cause the Government to
be named as an additional insured under any and all liability insurance
policies, However, at the discretion of the Contracting Officer, such
insurance need not be procured whenever the job order requires work on
parts of a vessel only and the work is to be performed at a plant other
than the site of the vessel. Further, the contractor shall procure and
maintain in force Worker's Compensation Insurance (or its equivalent)
covering its employees engaged in the work and shall ensure the
procurement and maintenance of such insurance by all subcontractors
engaged in the work. The contractor shall provide evidence of insurance
as required by the Government.
(e) The contractor shall receive no allowance in the contract price
for inclusion of any premium expense or charge for any reserve made on
account of self-insurance for coverage against any risk assumed by the
Government under this clause.
(f) As soon as practicable after the occurrence of any loss or
damage, the risk of which the Government has assumed, written notice of
the damage shall be given by the contractor to the Contracting Officer.
The notice shall contain full particulars of the loss or damage. If
claim is made or suit is brought thereafter against the contractor as
the result or because of such event, the contractor shall immediately
deliver to the Government every demand, notice, summons or other
process received by it or its representatives. The contractor shall
cooperate with the Government, and, upon the Government's request,
shall assist in effecting settlements, securing and giving evidence;
obtaining the attendance of witnesses, and other assistance required in
the conduct of suits. The Government shall pay to the contractor the
expense, other than the cost of maintaining the contractor's usual
organization, incurred in this assistance. Except at its own cost, the
contractor shall not voluntarily make any payment, assume any
obligation or incur any expense not imperative for the protection of
the vessel or vessels at the time of the event.
(End of clause)

1352.271-80 Title.

As prescribed in 48 CFR 1371.111, insert the following clause:

Title (DATE)

(a) Title to all materials and equipment acquired, produced for, or
allocated to the performance of this contract and incorporated in or
placed on the vessel or any part thereof, shall vest in the Government.
(b) The contractor shall assume, without limitation, the risk of
loss for any contractor-furnished materials and equipment until final
acceptance by the Government of work performed under the contract.
(End of clause)

1352.271-81 Discharge of liens.

As prescribed in 48 CFR 1371.112, insert the following clause:

Discharge of Liens (DATE)

The contractor shall immediately discharge or cause to be
discharged any lien or right in rem of any kind, other than in favor of
the Government, which at any time exists or arises in connection with
work done or materials furnished under the contract. If any such lien
or right in rem is not immediately discharged, the Government may
discharge or cause to be discharged such lien or right at the expense
of the contractor.

(End of clause)

1352.271-82 Department of Labor occupational safety and health
standards for ship repair.

As prescribed in 48 CFR 1371.113, insert the following clause:

Department of Labor Occupational Safety and Health Standards for Ship
Repair (DATE)

The contractor, in performance of all work under the contract,
shall comply with the requirements of 29 CFR 1910.15. Nothing contained
in this contract shall be construed as relieving the contractor from
any obligations which it may have for compliance with the aforesaid
regulations.

(End of clause)

1352.271-83 Government review, comment, acceptance and approval.

As prescribed in 48 CFR 1371.114, insert the following clause:

Government Review, Comment, Acceptance and Approval (DATE)

(a) Documentation, including drawings and other engineering
products and reports, required by the contract to be submitted for
review, comment, acceptance or approval will be acted upon by the
Government within 30 calendar days after receipt by the Government,
unless another period of time is specified.
(b) The Government shall respond to Condition Reports, as defined
in the Specifications, within five (5) working days, unless the
Government notifies the contractor that a longer period of time will be
required. If the contractor requests a response in less than five (5)
working days, the Government will attempt to accommodate the request,
but does not guarantee a response in less than the time limits stated
above.
(c) Review, comment, acceptance or approval by the Government as
required under this contract and applicable specifications shall not
relieve the contractor of its obligation to comply with the
specifications and with all other requirements of the contract, nor
shall it impose upon the Government any liability it would not have had
in the absence of such review, comment and acceptance or approval.

(End of clause)

1352.271-84 Access to the vessel.

As prescribed in 48 CFR 1371.115, insert the following clause:

Access to the Vessel (DATE)

(a) As authorized by the Contracting Officer, a reasonable number
of officers, employees and personnel designated by the Government, or
representatives of other contractors and their subcontractors shall
have admission to the facility and access to the vessel at all
reasonable times to perform and fulfill their respective obligations to
the Government on a noninterference basis. The contractor shall make
reasonable arrangements to provide access for these personnel to office
space, work areas, storage or shop areas, and other facilities and
services reasonable and necessary to perform their duties. All such
personnel shall comply with contractor rules and regulations governing
personnel at its shipyard, including those regarding safety and
security.
(b) The contractor further agrees to allow a reasonable number of
officers, employees, and designated personnel of offerors on other
contemplated work, the same privileges of admission to the contractor's
facility and access to the vessel(s) on a noninterference basis,
subject to contractor rules and regulations governing personnel in its
shipyard, including those regarding safety and security.

(End of clause)

1352.271-85 Documentation of requests for equitable adjustment.

As prescribed in 48 CFR 1371.116, insert the following clause:

Documentation of Requests for Equitable Adjustment (DATE)

(a) For the purpose of this clause, the term ``change'' includes
not only a change made pursuant to a written order designated as a
``change order'', but also

[[Page 52597]]

any act or omission to act on the part of the Government where a
request is made for equitable adjustment.
(b) Whenever the contractor requests or proposes an equitable
adjustment to the contract price for a change or an act or omission on
the part of the Government, the request shall include a breakdown of
the price adjustment in such form and supported by such reasonable
detail as the Contracting Officer may request. As a minimum, the
contractor shall provide a breakdown of direct labor hours, labor
dollars, overhead, material, subcontracts, contingencies and profit for
each change and a justification for any extension of the delivery date.
(c) Whenever the contractor requests or proposes an equitable
adjustment of $100,000 or greater gross (aggregate increases and/or
decreases) for a change made pursuant to a written order designated as
a ``change order'', or whenever the contractor requests an equitable
adjustment in any amount for any other act or omission to act on the
part of the Government, the proposal supporting such request shall
contain the following information for each individual item or element
of the request:
(1) A description of the unperformed work required by the contract
before the change which has been deleted by the change and the work
deleted by the change that already has been completed in whole or in
part. The description shall include a list of components, equipment,
and other identifiable property involved. Also, the status of
manufacture, procurement, or installation of such property shall be
indicated. A separate description shall be furnished for design and
production work. Items of raw material, purchased parts, components,
and other identifiable hardware which are made excess by the change,
and which are not to be retained by the contractor, are to be listed
for later disposition;
(2) A description of the work necessary to undo work already
completed which has been deleted by the change;
(3) A description of the work substituted or added by the change
that was not required by the terms of the contract before the change. A
list of components and equipment (not bulk material or items) involved
should be included. A separate description shall be furnished for
design work and production work;
(4) A description of any interference or inefficiency encountered
in performing the change;
(5) A description of disruption attributable solely to the change,
which shall include the following information:
(i) A specific description of each element of disruption which
states how the work has been, or will be, disrupted;
(ii) The calendar time period when disruption occurred, or will
occur, illustrated via critical path analysis;
(iii) The area(s) aboard ship where disruption occurred, or will
occur;
(iv) The trade(s) disrupted, with a breakdown of man-hours for each
trade;
(v) The scheduling of trades before, during, and after the period
of disruption;
(vi) A description of measures taken to lessen the disruptive
effect of the change.
(6) The delay in delivery attributable solely to the change;
(7) A description of other work attributed to the change;
(8) A narrative statement of the direct causal relationship between
any alleged Government act or omission and the claimed result, cross-
referenced to the detailed information required above; and
(9) A statement setting forth a comparative enumeration of the
amounts ``budgeted'' for the cost elements, including the materials
cost, labor hours, and indirect costs pertinent to the change estimated
by the contractor in preparing its proposal(s) for this contract, and
the amounts claimed to have been incurred, or projected to be incurred,
corresponding to each such ``budgeted cost'' element.
(10) At the time of agreement upon the price of the equitable
adjustment, the contractor shall submit a signed Certificate of Current
Cost or Pricing Data.
(d) Pending execution of a bilateral agreement or the direction of
the Contracting Officer pursuant to the Changes clause, the contractor
shall proceed diligently with contract performance without regard to
the effect of any such proposed change.

(End of clause)

1352.271-86 Lay days.

As prescribed in 48 CFR 1371.117, insert the following clause:

Lay Days (DATE)

(a) A lay day is defined as an additional day on dry dock or marine
railway caused by a Government-issued change. Reimbursement for lay
days shall be paid at the rate stated in the Schedule.
(b) No amount for lay day time shall be paid until all contract
line items (including optional items) that require drydocking of the
vessel have been completed. Lay days for work ordered pursuant to the
Additional Item Requirements Clause shall not be compensable unless all
dry dock work included in the contract line items is complete.
(c) Days of hauling out and floating, whatever the hour, shall not
be paid as lay day time, and days when no work is performed by the
contractor shall not be paid as lay day time. Days in which work is
performed that are considered normal ``non-work'' days (weekends or
holidays) shall not be paid as lay day time if the ship would have
otherwise been in dry dock.
(d) Payment of lay day time shall constitute complete compensation
for all costs associated with lay days except for costs directly
related to the changed work.

(End of clause)

1352.271-87 Changes--ship repair.

As prescribed in 48 CFR 1371.118, insert the following clause:

Changes--Ship Repair (DATE)

(a) The Contracting Officer may, at any time, by written order, and
without notice to the sureties, if any, make changes within the general
scope of this contract, in any one or more of the following:
(1) Drawings, designs, or specifications, when the supplies to be
furnished are to be specially manufactured for the Government in
accordance with the drawings, designs, or specifications;
(2) Method of shipment or packing;
(3) Place of performance of the work;
(4) Time of commencement or completion of the work; and
(5) Other requirements within the general scope of the contract.
(b) If any such change causes an increase or decrease in the cost
of, or the time required for, performance of any part of the work under
this contract, whether changed or not changed by the order, the
Contracting Officer shall make an equitable adjustment in the contract
price, the delivery schedule, or both, and shall modify the contract
accordingly.
(c) The contractor must submit any proposal for adjustment under
this clause within 5 days from the date of receipt of the written
order. At the Contracting Officer's discretion, the 5 day period may be
shortened. However, if the Contracting Officer decides that the facts
justify it, the Contracting Officer may receive and act upon a proposal
submitted before final payment of the contract.
(d) If the contractor's proposal includes the cost of property
rendered

[[Page 52598]]

obsolete or excess by the change, the Contracting Officer shall have
the right to prescribe the manner of the disposition of the property.
(e) Failure to agree to any adjustment shall be a dispute under the
Disputes clause. However, nothing in this clause shall excuse the
contractor from proceeding with the contract as changed.

(End of clause)

1352.271-88 Guarantees.

As prescribed in 48 CFR 1371.119, insert the following clause:

Guarantees (DATE)

(a) In the event any work performed or materials furnished by the
contractor under this contract prove defective or deficient within ----
days from the date of redelivery of the vessel, the contractor, as
directed by the Contracting Officer and at its own expense, shall
correct and repair the deficiency to the satisfaction of the
Contracting Officer.
(b) The Government shall be entitled to rely upon any guarantee
secured by the contractor or any sub-contractor covering work done or
materials furnished which exceeds the -----day period until its
expiration.
(c) With respect to any individual work item identified and listed
as incomplete at the redelivery of the vessel, the guarantee period
shall run from the date of completion of such item.
(d) If and when practicable, the Government shall afford the
contractor an opportunity to effect such corrections and repairs.
(1) If the Contracting Officer determines it is impracticable or is
otherwise not advisable to return the vessel to the contractor, or the
contractor fails to proceed promptly with any such repairs as directed
by the Contracting Officer, the Contracting Officer may direct that the
repairs be performed elsewhere, at the contractor's expense.
(2) Where corrections and repairs are to be made by other than the
contractor due to nonreturn of the vessel to the contractor, the
contractor's liability may be discharged by an equitable deduction in
the price of the contract.
(e) The contractor's liability shall only extend for an additional
-----day guarantee period on those defects or deficiencies which it
corrected. However, this clause does not limit the responsibility or
relieve the liability of the contractor under the Liability and
Insurance clause.
(f) At the Contracting Officer's option, defects and deficiencies
may be left in their uncorrected condition. In that event, the
contractor and the Contracting Officer shall agree on an equitable
deduction in the contract price. Failure to agree upon an equitable
reduction shall constitute a dispute under the Disputes clause of this
contract.
(g) The rights and remedies of the Government provided in this
clause are in addition to and do not limit any rights afforded to the
Government by any other clause of the contract. If a defect or
deficiency that exists at the time of redelivery of the vessel was not
discovered by a reasonable inspection and is discovered after the
expiration of the time frame stated in this clause, it is not subject
to the time limitations stated in this clause.

(End of clause)

1352.271-89 Temporary services.

As prescribed in 48 CFR 1371.120, insert the following clause:

Temporary Services (DATE)

(a) Temporary services are services incidental to the performance
of work which are required in the schedule or specifications to be
provided by the contractor. Temporary services may include the
furnishing of water, electricity, telephone service, toilet facilities,
garbage removal, office space, parking places or similar facilities.
(b) If performance time is extended due to Government-caused delay,
the contractor may request an equitable adjustment for providing
temporary services at the rate stated in the Schedule.

(End of clause)

1352.271-90 Insurance requirements.

As prescribed in 48 CFR 1371.121, insert the following clause:

Insurance Requirements (DATE)

(a) The contractor shall procure and thereafter maintain the
following insurance:
(1) Ship contractor's legal liability insurance to insure the risks
described in paragraph (b) of clause 1352.271-79. This insurance shall
be for $1,000,000.00.
(2) Comprehensive general liability insurance and automobile
insurance to insure the risks described in paragraph (c) of clause
1352.271-79. This insurance shall be for $1,000,000.00 on account of
any one accident or occurrence with respect to each vessel, boat, and/
or barge upon which work is performed. The contractor shall cause the
Government to be named as an additional insured under any and all
liability insurance policies.
(3) Full coverage in accordance with the State Worker's
Compensation law; and
(4) Full coverage in accordance with the United States
Longshoremen's and Harbor Worker's Act.
(b) As evidence that it has obtained the insurance specified in
paragraph (a) of this clause, the contractor shall furnish the
Contracting Officer with a certificate or certificates executed by an
agent of the insurer authorized to execute such certificates. Such
certificates shall be furnished prior to commencement of the work. Each
certificate shall state that (name of insurer) has insured (name of
contractor) awarded contract number -------- for repair/alteration of
(name of vessel) in accordance with the Liability and Insurance clause
and the Insurance Requirements clause contained herein. Each
certificate shall set forth that each policy of insurance represented
thereby will expire on (date) and that each such policy contains the
following clause:
``It is agreed that in the event of cancellation or any material
change in the policy adversely affecting the interest of the Government
in this insurance, 30 days prior written notice will be given to the
Contracting Officer.''

(End of clause)

Subpart 1352.3--Provisions and Clauses Matrix

1352.301 Solicitation provisions and contract clauses (Matrix).

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BILLING CODE 3510-03-C

PART 1353--FORMS

Subpart 1353.1--General
Sec.
1353.100 Scope of subpart.
1353.107 Obtaining forms.
Subpart 1353.2--Prescription of Forms
1353.200 Scope of subpart.
1353.206 Competition requirements.
Subpart 1353.3--Illustration of Forms
353.300 Scope of subpart.

Authority: 41 U.S.C. 414; 48 CFR 1.301--1.304.

Subpart 1353.1--General

1353.100 Scope of subpart.

This subpart prescribes DOC forms that are supplemental to those
provided in FAR Part 53.

1353.107 Obtaining forms.

The DOC forms may be obtained from any DOC contracting office.

Subpart 1353.2--Prescription of Forms

1353.200 Scope of subpart.

This subpart prescribes or references DOC forms for use in
acquisitions. Consistent with FAR 53.200, this subpart is arranged by
subject matter, in the same order as and keyed to the parts of the CAR
in which the form usage requirements are addressed.

1353.206 Competition requirements.

As prescribed in 48 CFR 1306.303-70, use Form CD-492, Justification
for Other Than Full and Open Competition, to support the requirements
under FAR Subpart 6.3 (see Appendix A: Forms).

1353.219 Small business programs.

Use Form CD-570, Small Business Set-Aside Review, to fulfill and
document the requirements under FAR 19.5 (see Appendix A: Forms).

Subpart 1353.3--Illustration of Forms

1353.300 Scope of subpart.

DOC Forms will not be illustrated in this CAR. Persons wishing to
obtain copies of DOC forms prescribed in the CAR may do so in
accordance with 1353.107.

Subchapter I--Department Supplemental Regulations

PART 1370--UNIVERSAL SOLICITATION PROVISIONS AND CONTRACT CLAUSES

Subpart 1370.1--Provisions and Clauses
Sec.
1370.101 Period of performance.
1370.102 Pre-bid/pre-proposal conference and site visit.

Authority: 41 U.S.C. 414; 48 CFR 1.301-1.304.

Subpart 1370.1--Provisions and Clauses

1370.101 Period of performance.

Insert the clause 1352.270-70, Period of Performance, in all
solicitations and contracts where a period of performance will be
specified.

1370.102 Pre-bid/pre-proposal conference and site visit.

Insert provision 1352.270-71, Pre-Bid/Pre-Proposal Conference and
Site Visit, in solicitations where a pre-proposal conference will be
held. The provision is optional for construction and may be modified as
necessary. The contracting officer shall include or delete the
paragraph regarding site visits.

PART 1371--ACQUISITIONS INVOLVING SHIP CONSTRUCTION AND SHIP REPAIR

Subpart 1371.1--Provisions and Clauses
Sec.
1371.101 Inspection and manner of doing work.
1371.102 Method of payment and invoicing instructions for ship
repair.
1371.103 Additional item requirements (AIR)--growth work.
1371.104 Schedule of work.
1371.105 Foreseeable cost factors pertaining to different shipyard
locations.
1371.106 Delivery and shifting of the vessel.
1371.107 Performance.
1371.108 Delays.
1371.109 Minimization of delay due to government furnished property.
1371.110 Liability and insurance.
1371.111 Title.
1371.112 Discharge of liens.
1371.113 Department of Labor occupational safety and health
standards for ship repairing.
1371.114 Government review, comment, acceptance, and approval.
1371.115 Access to the vessel.
1371.116 Documentation of requests for equitable adjustment.
1371.117 Lay days.
1371.118 Changes--ship repair.
1371.119 Guarantees.
1371.120 Temporary services.

Authority: 41 U.S.C. 414; 48 CFR 1.301--1.304.

Subpart 1371.1--Provisions and Clauses

1371.101 Inspection and manner of doing work.

Insert clause 1352.271-70, Inspection and Manner of Doing Work, in
all solicitations and contracts for ship construction and ship repair.

1371.102 Method of payment and invoicing instructions for ship
repair.

Insert clause 1352.271-71, Method of Payment and Invoicing
Instructions for Ship Repair, in all solicitations and contracts for
ship repair.

1371.103 Additional item requirements (AIR)--growth work.

Insert clause 1352.271-72, Additional Item Requirements (AIR)--
Growth Work, in all solicitations and contracts for ship repair.

1371.104 Schedule of work.

Insert clause 1352.271-73, Schedule of Work, in all solicitations
and contracts for ship repair.

1371.105 Foreseeable cost factors pertaining to different shipyard
locations.

Insert provision 1352.271-74, Foreseeable Cost Factors Pertaining
to Different Shipyard Locations, in all solicitations for ship repair.

1371.106 Delivery and shifting of the vessel.

Insert clause 1352.271-75, Delivery and Shifting of the Vessel, in
all solicitations and contracts for ship repair to be performed at the
contractor's facility.

1371.107 Performance.

Insert clause 1352.271-76, Performance, in all solicitations and
contracts for ship construction and ship repair.

1371.108 Delays.

Insert clause 1352.271-77, Delays, in all solicitations and
contracts for ship repair.

1371.109 Minimization of delay due to Government furnished property.

Insert clause 1352.271-78, Minimization of Delay Due to Government
Furnished Property, in all solicitations and contracts for ship
construction and ship repair.

1371.110 Liability and insurance.

Insert clause 1352.271-79, Liability and Insurance, in all
solicitations and contracts for ship repair.

1371.111 Title.

Insert clause 1352.271-80, Title, in all solicitations and
contracts for ship repair.

1371.112 Discharge of liens.

Insert clause 1352.271-81, Discharge of Liens, in all solicitations
and contracts for ship construction and ship repair.

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1371.113 Department of Labor occupational safety and health standards
for ship repair.

Insert clause 1352.271-82, Department of Labor Occupational Safety
and Health Standards for Ship Repair, in all solicitations and
contracts for ship repair.

1371.114 Government review, comment, acceptance, and approval.

Insert clause 1352.271-83, Government Review, Comment, Acceptance
and Approval, in all solicitations and contracts for ship construction
and ship repair.

1371.115 Access to the vessel.

Insert clause 1352.271-84, Access to the Vessel, in all
solicitations and contracts for ship construction and ship repair.

1371.116 Documentation of requests for equitable adjustment.

Insert clause 1352.271-85, Documentation of Requests for Equitable
Adjustment, in all solicitations and contracts for ship construction
and ship repair.

1371.117 Lay days.

Insert clause 1352.271-86, Lay Days, in all solicitations and
contracts for ship repair.

1371.118 Changes--Ship repair.

Insert clause 1352.271-87, Changes--Ship Repair, in all
solicitations and contracts for ship repair.

1371.119 Guarantees.

Insert clause 1352.271-88, Guarantees, in all solicitations and
contracts for ship construction and ship repair.

1371.120 Temporary services.

Insert clause 1352.271-89, Temporary Services, in all solicitations
and contracts for ship repair.

1371.121 Insurance requirements.

Insert clause 1352.271-90, Insurance Requirements, in all
solicitations and contracts for ship construction and ship repair.

[FR Doc. E9-22206 Filed 10-9-09; 8:45 am]

BILLING CODE 3510-03-P