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  <FDSYS>
    <CFRTITLE>48</CFRTITLE>
    <CFRTITLETEXT>Federal Acquisition Regulations System</CFRTITLETEXT>
    <VOL>1</VOL>
    <DATE>1999-10-01</DATE>
    <ORIGINALDATE>1999-10-01</ORIGINALDATE>
    <COVERONLY>false</COVERONLY>
    <TITLE>Clause for construction contracts.</TITLE>
    <GRANULENUM>48.202</GRANULENUM>
    <HEADING>Section 48.202</HEADING>
    <ANCESTORS>
      <PARENT HEADING="Title 48" SEQ="4">Federal Acquisition Regulations System</PARENT>
      <PARENT HEADING="" SEQ="3"/>
      <PARENT HEADING="SUBCHAPTER G" SEQ="2">CONTRACT MANAGEMENT</PARENT>
      <PARENT HEADING="PART 48" SEQ="1">VALUE ENGINEERING</PARENT>
      <PARENT HEADING="Subpart 48.2" SEQ="0">Contract Clauses</PARENT>
    </ANCESTORS>
  </FDSYS>
  <SECTION>
    <SECTNO>48.202</SECTNO>
    <SUBJECT>Clause for construction contracts.</SUBJECT>
    <P>The contracting officer shall insert the clause at 52.248-3, Value Engineering—Construction, in construction solicitations and contracts when the contract amount is estimated to be $100,000 or more, unless an incentive contract is contemplated. The contracting officer may include the clause in contracts of lesser value if the contracting officer sees a potential for significant savings. The contracting officer shall not include the clause in incentive-type construction contracts. If the head of the contracting activity determines that the cost of computing and tracking collateral savings for a contract will exceed the benefits to be derived, the contracting officer shall use the clause with its Alternate I.</P>
  </SECTION>
</CFRGRANULE>
