<?xml version="1.0"?>
<?xml-stylesheet type="text/xsl" href="cfr.xsl"?>
<CFRGRANULE xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xsi:noNamespaceSchemaLocation="CFRMergedXML.xsd">
  <FDSYS>
    <CFRTITLE>48</CFRTITLE>
    <CFRTITLETEXT>Federal Acquisition Regulations System</CFRTITLETEXT>
    <VOL>6</VOL>
    <DATE>2000-10-01</DATE>
    <ORIGINALDATE>2000-10-01</ORIGINALDATE>
    <COVERONLY>false</COVERONLY>
    <TITLE>CONTRACT MANAGEMENT</TITLE>
    <GRANULENUM>G</GRANULENUM>
    <HEADING>SUBCHAPTER G</HEADING>
    <ANCESTORS>
      <PARENT HEADING="Title 48" SEQ="1">Federal Acquisition Regulations System</PARENT>
    </ANCESTORS>
  </FDSYS>
  <SUBCHAP TYPE="P">
    <PRTPAGE P="555"/>
    <HD SOURCE="HED">SUBCHAPTER G—CONTRACT MANAGEMENT</HD>
    <PART>
      <EAR>Pt. 2143</EAR>
      <HD SOURCE="HED">PART 2143—CONTRACT MODIFICATIONS</HD>
      <CONTENTS>
        <SUBPART>
          <HD SOURCE="HED">Subpart 2143.1—General</HD>
          <SECHD>Sec.</SECHD>
          <SECTNO>2143.101</SECTNO>
          <SUBJECT>Definitions.</SUBJECT>
        </SUBPART>
        <SUBPART>
          <HD SOURCE="HED">Subpart 2143.2—Change Orders</HD>
          <SECTNO>2143.205</SECTNO>
          <SUBJECT>Contract clause.</SUBJECT>
        </SUBPART>
      </CONTENTS>
      <AUTH>
        <HD SOURCE="HED">Authority:</HD>
        <P>5 U.S.C. 8716; 40 U.S.C. 486(c); 48 CFR 1.301.</P>
      </AUTH>
      <SOURCE>
        <HD SOURCE="HED">Source:</HD>
        <P>58 FR 40380, July 28, 1993, unless otherwise noted.</P>
      </SOURCE>
      <SUBPART>
        <HD SOURCE="HED">Subpart 2143.1—General</HD>
        <SECTION>
          <SECTNO>2143.101</SECTNO>
          <SUBJECT>Definitions.</SUBJECT>
          <P>The effective date of a FEGLI contract modification is as defined in FAR 43.101, except to the extent that the definition conflicts with LIFAR 2101.370.</P>
        </SECTION>
      </SUBPART>
      <SUBPART>
        <HD SOURCE="HED">Subpart 2143.2—Change Orders</HD>
        <SECTION>
          <SECTNO>2143.205</SECTNO>
          <SUBJECT>Contract clause.</SUBJECT>
          <P>The clause at 2152.243-70 shall be inserted in all FEGLI Program contracts in lieu of the clauses in FAR 52.243-1 that are prescribed by FAR 43.205(a).</P>
        </SECTION>
      </SUBPART>
    </PART>
    <PART>
      <EAR>Pt. 2144</EAR>
      <HD SOURCE="HED">PART 2144—SUBCONTRACTING POLICIES AND PROCEDURES</HD>
      <CONTENTS>
        <SUBPART>
          <HD SOURCE="HED">Subpart 2144.1—General</HD>
          <SECHD>Sec.</SECHD>
          <SECTNO>2144.102</SECTNO>
          <SUBJECT>Policy.</SUBJECT>
        </SUBPART>
        <SUBPART>
          <HD SOURCE="HED">Subpart 2144.2—Consent to Subcontracts</HD>
          <SECTNO>2144.204</SECTNO>
          <SUBJECT>Contract clause.</SUBJECT>
        </SUBPART>
      </CONTENTS>
      <AUTH>
        <HD SOURCE="HED">Authority:</HD>
        <P>5 U.S.C. 8716; 40 U.S.C. 486(c); 48 CFR 1.301.</P>
      </AUTH>
      <SOURCE>
        <HD SOURCE="HED">Source:</HD>
        <P>58 FR 40380, July 28, 1993, unless otherwise noted.</P>
      </SOURCE>
      <SUBPART>
        <HD SOURCE="HED">Subpart 2144.1—General</HD>
        <SECTION>
          <SECTNO>2144.102</SECTNO>
          <SUBJECT>Policy.</SUBJECT>
          <P>For all FEGLI Program contracts, advance approval shall be required on subcontracts or modifications to subcontracts when the cost of that portion of the subcontract that is charged the FEGLI Program contract exceeds $200,000, but only if more than 25 percent of the subcontract cost is charged to the FEGLI Program contract.</P>
        </SECTION>
      </SUBPART>
      <SUBPART>
        <HD SOURCE="HED">Subpart 2144.2—Consent to Subcontracts</HD>
        <SECTION>
          <SECTNO>2144.204</SECTNO>
          <SUBJECT>Contract clause.</SUBJECT>
          <P>The clause set forth at 2152.244-70 shall be inserted in all FEGLI Program contracts.</P>
        </SECTION>
      </SUBPART>
    </PART>
    <PART>
      <EAR>Pt. 2146</EAR>
      <HD SOURCE="HED">PART 2146—QUALITY ASSURANCE</HD>
      <CONTENTS>
        <SUBPART>
          <HD SOURCE="HED">Subpart 2146.2—Contract Quality Requirements</HD>
          <SECHD>Sec.</SECHD>
          <SECTNO>2146.201</SECTNO>
          <SUBJECT>General.</SUBJECT>
          <SECTNO>2146.270</SECTNO>
          <SUBJECT>FEGLI Program quality assurance requirements.</SUBJECT>
          <SECTNO>2146.270-1</SECTNO>
          <SUBJECT>Contract clause.</SUBJECT>
        </SUBPART>
      </CONTENTS>
      <AUTH>
        <HD SOURCE="HED">Authority:</HD>
        <P>5 U.S.C. 8716; 40 U.S.C. 486(c); 48 CFR 1.301.</P>
      </AUTH>
      <SOURCE>
        <HD SOURCE="HED">Source:</HD>
        <P>58 FR 40380, July 28, 1993, unless otherwise noted.</P>
      </SOURCE>
      <SUBPART>
        <HD SOURCE="HED">Subpart 2146.2—Contract Quality Requirements</HD>
        <SECTION>
          <SECTNO>2146.201</SECTNO>
          <SUBJECT>General.</SUBJECT>
          <P>(a) This part prescribes policies and procedures to ensure that services acquired under the FEGLI Program contract conform to the contract's quality requirements.</P>
          <P>(b) OPM shall evaluate the contractor's system of internal controls under the quality assurance program required by 2146.270 prior to each contract year and will acknowledge in writing whether or not the system is consistent with the requirements set forth in this Subpart. After the initial review, each annual review may be limited to changes in the contractor's internal control guidelines. However, a limited review does not diminish the contractor's obligation to apply the full internal control system.</P>
        </SECTION>
        <SECTION>
          <PRTPAGE P="556"/>
          <SECTNO>2146.270</SECTNO>
          <SUBJECT>FEGLI Program quality assurance requirements.</SUBJECT>
          <P>(a) The contractor shall develop and apply a quality assurance program specifying procedures for assuring contract quality, as directed by the contracting officer. At a minimum, the program should include procedures to address:</P>
          <P>(1) Accuracy of payments and recovery of overpayments;</P>
          <P>(2) Timeliness of payments to beneficiaries;</P>
          <P>(3) Quality of services and responsiveness to beneficiaries;</P>
          <P>(4) Quality of service and responsiveness to OPM; and</P>
          <P>(5) Detection and recovery of fraudulent claims.</P>
          <P>(b) The contractor shall prepare overpayment recovery guidelines to include a system of internal control for approval annually by the contracting officer. The contracting officer may withdraw such approval with 90 days’ notice of prospective withdrawal.</P>
          <P>(c) The contracting officer may order the correction of a deficiency or a modification in the contractor's services and/or quality assurance program. The contractor shall take the necessary action promptly to implement the contracting officer's order. If the contracting officer orders the correction of a deficiency or a modification of the contractor's services and/or quality assurance program pursuant to this paragraph after the contract year has begun, the costs incurred in correcting the deficiency or making the modification will not be considered to the contractor's detriment in the cost control factor of the service charge [if applicable] for the following contract year. However, if there is a deficiency, the deficiency itself may be taken into consideration.</P>
        </SECTION>
        <SECTION>
          <SECTNO>2146.270-1</SECTNO>
          <SUBJECT>Contract clause.</SUBJECT>
          <P>The clause at 2152.246-70 shall be inserted in all FEGLI Program contracts.</P>
        </SECTION>
      </SUBPART>
    </PART>
    <PART>
      <EAR>Pt. 2149</EAR>
      <HD SOURCE="HED">PART 2149—TERMINATION OF CONTRACTS</HD>
      <CONTENTS>
        <SECHD>Sec.</SECHD>
        <SECTNO>2149.002</SECTNO>
        <SUBJECT>Applicability.</SUBJECT>
        <SUBPART>
          <HD SOURCE="HED">Subpart 2149.5—Contract Termination Clauses</HD>
          <SECTNO>2149.505</SECTNO>
          <SUBJECT>Other termination clauses.</SUBJECT>
          <SECTNO>2149.505-70</SECTNO>
          <SUBJECT>FEGLI Program contract termination clause.</SUBJECT>
        </SUBPART>
      </CONTENTS>
      <AUTH>
        <HD SOURCE="HED">Authority:</HD>
        <P>5 U.S.C. 8716; 40 U.S.C. 486(c); 48 CFR 1.301.</P>
      </AUTH>
      <SOURCE>
        <HD SOURCE="HED">Source:</HD>
        <P>58 FR 40380, July 28, 1993, unless otherwise noted.</P>
      </SOURCE>
      <SECTION>
        <SECTNO>2149.002</SECTNO>
        <SUBJECT>Applicability.</SUBJECT>
        <P>(a) <E T="03">Termination.</E> (1) Termination of FEGLI Program contracts is controlled by 5 U.S.C. 8709(c) and this chapter. The procedures for termination of FEGLI Program contracts shall be those contained in FAR part 49. For the purpose of this part, terminate means to “discontinue” as used in 5 U.S.C. 8709(c).</P>
        <P>(2) A life insurance contract entered into by OPM may be terminated by OPM at any time for default by the contractor. A life insurance contract entered into by OPM may be terminated at the end of the 31st day after default for nonpayment by OPM [see 2152.232-70, Payments].</P>
        <P>(3) A life insurance contract entered into by OPM may be terminated for convenience of the Government 60 days after the contractor's receipt of OPM's notice to terminate.</P>
        <P>(4) The contractor may terminate its contract with OPM at the end of any policy year when notice of intent to terminate is given to OPM in writing at least 60 days prior to the end of the policy year (i.e., no later than July 31).</P>
        <P>(b) <E T="03">Continuation of services.</E> The services under this contract are of vital interest to the Government and must be continued without interruption in the event the contract is terminated. Consequently, the contract termination procedures contained in this paragraph must be used in conjunction with 2137.102, 2137.110, and the provisions of the “Continuity of Services” clause at 2152.237-70.</P>
        <P>(c) <E T="03">Settlement.</E> The procedures for settlement of contracts after they are terminated shall be those contained in FAR Part 49.</P>
      </SECTION>
      <SUBPART>
        <PRTPAGE P="557"/>
        <HD SOURCE="HED">Subpart 2149.5—Contract Termination Clauses</HD>
        <SECTION>
          <SECTNO>2149.505</SECTNO>
          <SUBJECT>Other termination clauses.</SUBJECT>
        </SECTION>
        <SECTION>
          <SECTNO>2149.505-70</SECTNO>
          <SUBJECT>FEGLI Program contract termination clause.</SUBJECT>
          <P>The clause in 2152.249-70 shall be inserted in all FEGLI Program contracts.</P>
        </SECTION>
      </SUBPART>
    </PART>
  </SUBCHAP>
</CFRGRANULE>
